What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2023-02-10 compared with 2022-02-11 · 23 added, 28 removed, 217 unchanged (19% of the section changed)

18 unchanged sentences

One Beach Street San Francisco, CA 1924/1972/1987/1992 1 100,270 — — —

First & Main (7)

Portland, OR 2010 1 360,314 94.3 10,838,438 31.90

First & Main Portland, OR 2010 1 360,314 95.0 10,984,368 32.09

Lloyd Portfolio Portland, OR 1940-2015 3 547,864 89.5 16,684,740 34.03

2 unchanged sentences

Corporate Campus East III Bellevue, WA 1986 4 159,578 85.0 5,818,665 42.90

Bel-Spring 520 Bellevue, WA 1983 2 93,295 69.4 2,571,405 39.71

Subtotal / Weighted Average Office Portfolio (3)

57 unchanged sentences

The annualized base rent for Corporate Campus East III has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases, by adding the contractual annualized triple net base rent of $4,286,679 to our estimate of annual triple net operating expenses of $1,531,986 for an estimated annualized base rent on a modified gross lease basis of $5,818,665 for Corporate Campus East III.

The annualized base rent for Bel-Spring 520 has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases, by adding the contractual annualized triple net base rent of $1,970,275 to our estimate of annual triple net operating expenses of $601,131 for an estimated annualized base rent on a modified gross lease basis of $2,571,406 for Bel-Spring 520.

(2) This property contains 422,426 net rentable square feet consisting of The Landmark at One Market (378,206 net rentable square feet) as well as a separate long-term leasehold interest in approximately 44,220 net rentable square feet of space located in an adjacent six-story leasehold known as the Annex.

7 unchanged sentences

Total Retail and Office Portfolio $ 131,772 $ 6,075,356 $ 46.11 $ 41.67

(a) Office portfolio leases signed but not commenced of 1,511, 19,529 and 32,348 square feet are expected to commence during the first quarter of 2022, third quarter of 2022 and the fourth quarter of 2023, respectively.

Retail portfolio leases signed but not commenced of 59,686, 8,438 and 11,300 square feet are expected to commence during the second and third quarters of 2022, and the second quarter of 2023, respectively.

(a) Office portfolio leases signed but not commenced of 27,753, 39,266 and 17,418 square feet are expected to commence during the first, second and third quarters of 2023, respectively.

Retail portfolio leases signed but not commenced of 4,264, 11,300, 11,350, 19,433 and 988 square feet are expected to commence during the first, second, third and fourth quarters of 2023 and the fourth quarter of 2024, respectively.

(b) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for signed but not commenced leases as of December 31, 2022 by 12.

8 unchanged sentences

Alamo Quarry Market 3 20,694 $ 410,151

(a) For the ground leases above, 13,680 square feet have lease expirations during the third quarter of 2022, with one or more five year extension options which have not been exercised as of December 31, 2021.

(a) 2,912 square feet of the ground leases at Carmel Mountain Plaza expire during the third quarter of 2023, with no extension options as of December 31, 2022

(5) The Hassalo on Eighth property is comprised of three multifamily buildings, each with a ground floor retail component:

2 unchanged sentences

The number of units at the Santa Fe Park RV Resort includes 120 RV spaces and four apartments.

(7) Including swing-space currently leased by an existing tenant on a rolling 30-day basis, First & Main is 99.4% leased

In the tables above:

38 unchanged sentences

4/30/2029 123,041 1.7 6,830,332 2.5

VMware, Inc City Center Bellevue 11/30/2022

9/30/2027 109,985 1.6 5,584,938 2.1

Illumina, Inc.

La Jolla Commons 10/31/2027 73,176 1.0 4,609,212 1.7

VMware, Inc City Center Bellevue 3/31/2028 75,000 1.0 4,447,886 1.6

Lowe's Waikele Center 5/31/2028 155,000 2.1 3,720,000 1.4

Clearesult Operating, LLC First & Main 4/30/2025 101,848 1.4 3,382,042 1.2

Industrious City Center Bellevue 4/30/2033

3/31/2034 55,256 0.8 3,111,931 1.1

State of Oregon:

Department of Environmental Quality Lloyd District Portfolio 10/31/2031 87,787 1.2 2,935,024 1.1

Genentech, Inc.

Lloyd District Portfolio 10/31/2026 66,852 0.9 2,269,545 0.9

Top technology tenant (2) La Jolla Commons 8/31/2030 47,826 0.7 2,737,440 1.0

Genentech, Inc Lloyd District Portfolio 10/31/2026 66,852 0.9 2,337,632 0.9

MEI Pharma, Inc.

Torrey Reserve Campus 11/30/2029 45,088 0.6 2,266,536 0.8

Internal Revenue Service First & Main 8/31/2030 63,648 0.9 2,189,700 0.8

Nordstrom Rack (3) Alamo Quarry Market,

Carmel Mountain Plaza 10/31/2027

9/30/2027 69,047 1.0 2,189,648 0.8

Sprouts Farmers Market Solana Beach Towne Centre,

2 unchanged sentences

9/30/2032 71,431 1.0 2,121,187 0.8

Veterans Benefits Administration First & Main 8/31/2030 74,885 1.1 1,997,006 0.8

California Bank & Trust Torrey Reserve Campus 2/28/2024 34,731 0.5 2,034,559 0.7

WeWork Lloyd District Portfolio 1/31/2032 55,395 0.8 1,998,131 0.7

Industrious City Center Bellevue 3/31/2034 37,166 0.5 1,888,472 0.7

Veterans Benefits Administration First & Main 8/31/2030 74,885 1.0 1,997,006 0.7

Perkins Coie, LLP Torrey Reserve Campus 12/31/2028 36,980 0.5 1,915,389 0.7

Nordstrom Rack Carmel Mountain Plaza,

Alamo Quarry Market 9/30/2027

10/31/2027 69,047 1.0 1,804,269 0.7

Troutman Sanders, LLP Torrey Reserve Campus

4 unchanged sentences

1/31/2029 68,055 0.9 1,728,228 0.6

MEI Pharma, Inc.

Torrey Reserve Campus 3/31/2028 32,775 0.5 1,519,121 0.6

Vons Lomas Santa Fe Plaza 12/31/2022 25,689 0.4 1,384,693 0.5

At Home Stores Carmel Mountain Plaza 7/31/2029 107,870 1.5 1,384,552 0.5

Banner Corporation Corporate Campus East III 10/31/2027 46,572 0.6 1,583,448 0.6

Pillsbury Winthrop Shaw Pittman, LLP Torrey Reserve Campus 11/30/2033 26,152 0.4 1,474,973 0.5

Cisco Systems, Inc.

City Center Bellevue 2/28/2023 25,689 0.4 1,426,234 0.5

Ruth's Chris Steak House Waikele Beach Walk,

Torrey Reserve Campus 2/29/2025

1/31/2030 14,833 0.2 1,332,035 0.5

TOTAL 2,250,085 31.1 % $ 116,372,527 42.5 %

(1) Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents before abatements) for the month ended December 31, 2022 for the applicable lease(s) by (ii) 12.

(2) The earliest option termination date under this lease is August 31, 2028.

(3) For Nordstrom Rack, (a) on January 20, 2022, we entered into an extension for 30,000 of leased square footage which is now set to expire on October 31, 2027 (Alamo Quarry Market);

(b) 39,047 of leased square feet is set to expire on September 30, 2027 (Carmel Mountain Plaza)

(2) Name withheld at tenant's request.

Geographic Diversification

Our properties are located in Southern California, Northern California, Oregon, Washington, Texas and Hawaii.

Our properties are located in Southern California, Northern California, Washington, Oregon, Texas and Hawaii.

The following table shows the number of properties, the net rentable square feet and the percentage of total portfolio net rentable square footage in each region as of December 31, 2022.

4 unchanged sentences

Northern California 4 1,231,010 17.0

Oregon 3 920,478 13.0

Washington 4 1,030,434 14.2

Oregon 3 952,414 13.2

Texas 1 588,148 8.1

13 unchanged sentences

The following table sets forth a summary schedule of the lease expirations for leases in place as of December 31, 2022, plus available space, for each of the ten calendar years beginning January 1, 2023 at the properties in our retail portfolio, office portfolio and the retail portion of our mixed-use portfolio.

The square footage of available space includes the space from 3 leases that terminated on December 31, 2021.

The square footage of available space excludes the space from 13 leases that terminated on December 31, 2022.

In 2023, we expect a similar level of leasing activity for new and expiring leases compared to prior years with overall positive increases in rental income.

24 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties