What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2022-03-16 compared with 2021-03-16 · 37 added, 43 removed, 81 unchanged (50% of the section changed)

As of December 31, 2021, our real estate portfolio consisted of 14 assets, all of which were fee-simple properties.

As of December 31, 2020, our nine office properties, totaling approximately 1.3 million rentable square feet, were 79.3% occupied, our one development site being used as a parking lot and our one hotel with an ancillary parking garage, which has a total of 503 rooms, had RevPAR of $46.60 for the year ended December 31, 2020.

Office Portfolio Detail by Property, Market, and Submarket as of December 31, 2020

Location Rentable Square Feet % Occupied % Leased (1)

As of December 31, 2021, our 11 office properties, totaling approximately 1.3 million rentable square feet, were 77.7% occupied, our one development site being used as a parking lot and our one hotel with an ancillary parking garage, which has a total of 503 rooms, had RevPAR of $73.23 for the year ended December 31, 2021.

Office Portfolio Detail by Classification, Address, Market, and Submarket as of December 31, 2021

Classification / Market / Address Sub-Market Rentable Square Feet % Occupied % Leased (1)

Annualized Rent (in thousands) Annualized Rent Per Occupied Square Foot

Northern California

1 Kaiser Plaza 537,811 89.1 % 89.1 % $ 21,840 $ 45.59

2 Kaiser Plaza Parking Lot (2)

N/A N/A N/A N/A N/A

Total Lake Merritt 537,811 89.1 % 89.1 % 21,840 45.59

Total Oakland, CA 537,811 89.1 % 89.1 % 21,840 45.59

Stabilized Portfolio

1 Kaiser Plaza Lake Merritt 537,811 86.5 % 86.5 % $ 22,210 $ 47.75

San Francisco, CA

South of Market

1130 Howard Street 21,194 100.0 % 100.0 % 1,711 80.73

Total San Francisco, CA 21,194 100.0 % 100.0 % 1,711 80.73

Total Northern California 559,005 89.5 % 89.5 % $ 23,551 $ 47.07

Southern California

1130 Howard Street South of Market 21,194 100.0 % 100.0 % 1,819 85.83

Los Angeles, CA

11620 Wilshire Boulevard West Los Angeles 196,227 80.3 % 80.3 % 7,813 49.61

11600 Wilshire Boulevard West Los Angeles 57,737 86.3 % 88.2 % 2,741 55.02

8944 Lindblade Street (3)

West Los Angeles 7,980 100.0 % 100.0 % 525 65.79

11620 Wilshire Boulevard 196,229 87.7 % 87.7 % $ 8,055 $ 46.82

11600 Wilshire Boulevard 56,880 88.5 % 88.5 % 2,673 53.11

Lindblade Media Center (3)

32,428 100.0 % 100.0 % 1,870 57.67

Total West Los Angeles 285,537 89.3 % 89.3 % 12,598 49.41

4750 Wilshire Boulevard 140,332 21.6 % 21.6 % 1,456 48.00

Beverly Hills

9460 Wilshire Boulevard 97,035 73.5 % 73.5 % 7,491 105.03

Total Los Angeles, CA 522,904 68.2 % 68.2 % 21,545 60.41

Total Southern California 522,904 68.2 % 68.2 % $ 21,545 $ 60.41

8960 & 8966 Washington Boulevard (3)

West Los Angeles 24,448 100.0 % 100.0 % 1,405 57.47

1037 N Sycamore Avenue Hollywood 4,900 — % — % — —

3601 S Congress Avenue (4)

228,056 78.5 % 85.7 % $ 7,688 $ 42.92

1021 E 7th Street 11,180 100.0 % 100.0 % 552 49.37

Total Austin, TX 239,236 79.5 % 86.4 % 8,240 43.32

Total Southwest 239,236 79.5 % 86.4 % $ 8,240 $ 43.32

Total Office 1,321,145 79.3 % 80.5 % $ 53,336 $ 50.94

South 227,853 86.9 % 96.6 % 8,735 44.13

1021 E 7th Street East 11,180 100.0 % 100.0 % 563 50.36

Total Stabilized Portfolio 1,089,330 85.9 % 88.0 % 45,811 48.98

Value Add Properties

Los Angeles, CA

4750 Wilshire Boulevard Mid-Wilshire 140,332 21.6 % 21.6 % 1,500 49.45

9460 Wilshire Boulevard Beverly Hills 97,745 67.2 % 72.6 % 6,900 105.06

Total Value Add Properties 238,077 40.3 % 42.5 % 8,400 87.55

Development Pipeline Properties

2 Kaiser Plaza (2)

Lake Merritt N/A N/A N/A N/A N/A

Total Development Pipeline Properties N/A N/A N/A N/A N/A

Total Office Portfolio 1,327,407 77.7 % 79.9 % $ 54,211 $ 52.57

(1) Based on leases signed as of December 31, 2021.

(2) 2 Kaiser Plaza Parking Lot is a 44,642 square foot parcel of land currently being used as a surface parking lot.

We are entitled to develop a building, which we are in the process of designing, having between 425,000 and 800,000 rentable square feet.

(3) Lindblade Media Center consists of three buildings.

We are entitled to develop an office building with a maximum of 800,000 rentable square feet.

Alternatively, we are also evaluating a multifamily development, which can be constructed by right.

(3) The three buildings making up 8960 & 8966 Washington Boulevard and 8944 Lindblade Street were formerly known as Lindblade Media Center.

(4) 3601 S Congress Avenue consists of twelve buildings.

During the year ended December 31, 2020, we fully leased the approximately 44,000 square foot office building that was completed in 2020 on a former surface parking lot at 3601 S Congress Avenue.

Hotel Portfolio Summary as of December 31, 2021

9 unchanged sentences

(in thousands)

Sheraton Grand Hotel Parking Garage & Retail (4)

Sacramento, CA 9,453 100.0 % 100.0 % $ 2,981

Total Ancillary Hotel (1 Property) 9,453 100.0 % 100.0 % $ 2,981

Sheraton Grand Hotel Parking Garage & Retail Sacramento, CA 9,453 100.0 % 100.0 % $ 625

Total Ancillary Property (1 Property) 9,453 100.0 % 100.0 % $ 625

(1) Represents trailing 12-month occupancy as of December 31, 2021, calculated as the number of occupied rooms divided by the number of available rooms.

1 unchanged sentence

(3) Based on leases commenced as of December 31, 2021.

(4) During the year ended December 31, 2020, we began renovations of the guest rooms, food and beverage amenities, public areas, meeting rooms and other amenities at the Sheraton Grand Hotel Parking Garage & Retail.

However, the vast majority of such renovations have been temporarily suspended since March 2020 due to COVID-19.

Office Portfolio—Top 5 Tenants by Annualized Rental Revenue as of December 31, 2021

4 unchanged sentences

1 Kaiser Plaza AA- / - / AA- 2025 - 2027 (1)

$ 16,729 30.9 % 366,777 27.6 %

MUFG Union Bank, N.A.

1 unchanged sentence

F45 Training Holdings, Inc.

3601 S Congres Avenue - / - / - 2029 2,279 4.3 % 44,171 3.3 %

3601 S Congress Avenue - / - / - 2030 2,279 4.2 % 44,171 3.3 %

3 Arts Entertainment, Inc.

6 unchanged sentences

Total Office Portfolio $ 54,211 100.0 % 1,327,407 100.0 %

(1) Prior to February 28, 2023, the tenant may terminate up to 140,000 square feet of space in the aggregate (of which no more than 100,000 rentable square feet may be terminated with respect to the rentable square feet expiring in 2027), effective as of any date specified by the tenant in a written notice given to us at least 12 months prior to the termination, in exchange for a termination penalty.

(1) From and after February 28, 2023 with respect to the rentable square feet expiring in 2025, and February 28, 2025 with respect to rentable square feet expiring in 2027, the tenant has the right to terminate all or any portions of its lease with us, effective as of any date specified by the tenant in a written notice given to us at least 15 months prior to the termination, in each case in exchange for a termination penalty.

The amount of such termination penalties is dependent on a variety of factors, including but not limited to the date of the termination notice, the amount of the square feet to be terminated and the location within the building of the space to be terminated.

The amount of such termination penalties is dependent on a variety of factors, including but not limited

to the date of the termination notice, the amount of the square feet to be terminated and the location within the building of the space to be terminated.

Office Portfolio—Diversification by Industry as of December 31, 2021

4 unchanged sentences

Professional, Scientific, and Technical Services 9,566 17.6 % 173,462 13.1 %

Finance and Insurance 5,423 10.2 % 52,838 4.0 %

Arts, Entertainment, and Recreation 5,430 10.0 % 89,902 6.8 %

Finance and Insurance 4,720 8.7 % 45,974 3.5 %

Real Estate and Rental and Leasing 4,386 8.1 % 90,312 6.8 %

Retail Trade 1,617 3.0 % 36,943 2.8 %

Public Administration 1,355 2.5 % 28,689 2.2 %

Manufacturing 1,145 2.1 % 32,771 2.5 %

Information 936 1.7 % 13,589 1.0 %

Retail Trade 786 1.5 % 21,109 1.6 %

Manufacturing 801 1.5 % 24,849 1.9 %

Administrative and Support and Waste Management and Remediation Services 616 1.1 % 10,927 0.8 %

29 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