Item 1B. Unresolved Staff Comments
Item 1B. Unresolved Staff Comments
None.
28
Item 2. Pr operties
As of December 31, 2020, we wholly owned 79 operating properties, including 77 operating properties with approximately 7.1 million leased square feet that were leased primarily to U.S. Government tenants and two operating properties with approximately 0.2 million leased square feet that were entirely leased to private tenants. In addition, we wholly owned one property under development that we expect to encompass approximately 0.2 million leased square feet upon completion. As of December 31, 2020, our operating properties were 99% leased with a weighted average annualized lease income per leased square foot of $33.65 and a weighted average age of approximately 13.3 years based on the date the property was built or renovated-to-suit, where applicable. For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. We calculate annualized lease income as annualized contractual base rent for the last month in a specified period, plus the annualized straight line rent adjustments for the last month in such period and the annualized net expense reimbursements earned by us for the last month in such period.
Information about our operating properties as of December 31, 2020 is set forth in the table below:
Property Name
Location
Property
Type (1)
Tenant Lease
Expiration
Year (2)
Leased
Square
Feet
Annualized
Lease
Income
Percentage
of Total
Annualized
Lease
Income
Annualized
Lease
Income per
Leased
Square
Foot
U.S. Government Leased
VA - Loma Linda
Loma Linda, CA
OC
2036
327,614
$
16,388,079
6.7
%
$
50.02
Various GSA - Buffalo (3)
Buffalo, NY
O
2020 - 2025
267,768
8,507,053
3.5
%
31.77
JSC - Suffolk
Suffolk, VA
O
2028
403,737
8,104,091
3.3
%
20.07
FBI - Salt Lake
Salt Lake City, UT
O
2032
169,542
6,796,457
2.8
%
40.09
IRS - Fresno
Fresno, CA
O
2033
180,481
6,650,903
2.7
%
36.85
Various GSA - Chicago (5)
Des Plaines, IL
O
2022 / 2023
204,020
6,519,508
2.7
%
31.96
Various GSA - Portland (4)
Portland, OR
O
2022 - 2028
212,845
6,465,482
2.6
%
30.38
PTO - Arlington
Arlington, VA
O
2035
190,546
6,170,884
2.5
%
32.39
VA - San Jose
San Jose, CA
OC
2038
90,085
5,852,184
2.4
%
64.96
EPA - Lenexa
Lenexa, KS
O
2027
169,585
5,541,749
2.3
%
32.68
FBI - San Antonio
San Antonio, TX
O
2021
148,584
5,187,090
2.1
%
34.91
FEMA - Tracy
Tracy, CA
W
2038
210,373
4,614,143
1.9
%
21.93
FDA - Alameda
Alameda, CA
L
2039
69,624
4,561,039
1.9
%
65.51
FBI - Omaha
Omaha, NE
O
2024
112,196
4,426,771
1.8
%
39.46
TREAS - Parkersburg
Parkersburg, WV
O
2021
182,500
4,418,656
1.8
%
24.21
EPA - Kansas City
Kansas City, KS
L
2023
71,979
4,210,244
1.7
%
58.49
FBI / DEA - El Paso
El Paso, TX
O/W
2028
203,269
4,047,753
1.7
%
19.91
VA - South Bend
Mishawaka, IN
OC
2032
86,363
4,011,573
1.6
%
46.45
FDA - Lenexa
Lenexa, KS
L
2040
59,690
3,889,133
1.6
%
65.16
ICE - Charleston (6)
North Charleston, SC
O
2021 / 2027
86,733
3,874,571
1.6
%
44.67
USCIS - Lincoln
Lincoln, NE
O
2025
137,671
3,791,205
1.5
%
27.54
VA - Mobile
Mobile, AL
OC
2033
79,212
3,778,352
1.5
%
47.70
DOI - Billings
Billings, MT
O/W
2033
149,110
3,725,623
1.5
%
24.99
FBI - New Orleans
New Orleans, LA
O
2029
137,679
3,689,091
1.5
%
26.79
FBI - Birmingham
Birmingham, AL
O
2022
96,278
3,683,969
1.5
%
38.26
FBI - Pittsburgh
Pittsburgh, PA
O
2027
100,054
3,622,548
1.5
%
36.21
DOT - Lakewood
Lakewood, CO
O
2024
122,225
3,489,124
1.4
%
28.55
VA - Chico
Chico, CA
OC
2034
51,647
3,172,357
1.3
%
61.42
USFS II - Albuquerque
Albuquerque, NM
O
2026
98,720
3,063,160
1.3
%
31.03
FDA - College Park
College Park, MD
L
2029
80,677
3,017,567
1.2
%
37.40
OSHA - Sandy
Sandy, UT
L
2024
75,000
3,008,391
1.2
%
40.11
USCIS - Tustin
Tustin, CA
O
2034
66,818
3,006,961
1.2
%
45.00
USFS I - Albuquerque
Albuquerque, NM
O
2021
92,455
2,924,234
1.2
%
31.63
DEA - Vista
Vista, CA
L
2020
54,119
2,811,893
1.1
%
51.96
FBI - Richmond
Richmond, VA
O
2041
96,607
2,776,811
1.1
%
28.74
ICE - Albuquerque
Albuquerque, NM
O
2027
71,100
2,745,454
1.1
%
38.61
JUD - Del Rio
Del Rio, TX
C/O
2024
89,880
2,705,056
1.1
%
30.10
VA - Orange (7)
Orange, CT
OC
2034
56,330
2,685,326
1.1
%
47.67
DEA - Pleasanton
Pleasanton, CA
L
2035
42,480
2,683,459
1.1
%
63.17
JUD - El Centro
El Centro, CA
C/O
2034
43,345
2,663,767
1.1
%
61.46
FBI - Mobile
Mobile, AL
O
2029
76,112
2,616,413
1.1
%
34.38
SSA - Charleston
Charleston, WV
O
2024
110,000
2,596,982
1.1
%
23.61
DEA - Sterling
Sterling, VA
L
2022
49,692
2,574,759
1.1
%
51.81
TREAS - Birmingham
Birmingham, AL
O
2029
83,676
2,442,804
1.0
%
29.19
FBI - Albany
Albany, NY
O
2035
98,184
2,434,918
1.0
%
24.80
DEA - Dallas Lab
Dallas, TX
L
2021
49,723
2,408,771
1.0
%
48.44
29
Property Name
Location
Property
Type (1)
Tenant Lease
Expiration
Year (2)
Leased
Square
Feet
Annualized
Lease
Income
Percentage
of Total
Annualized
Lease
Income
Annualized
Lease
Income per
Leased
Square
Foot
U.S. Government Leased (Cont.)
JUD - Charleston
Charleston, SC
C/O
2040
50,888
2,333,282
1.0
%
45.85
DHA - Aurora
Aurora, CO
O
2034
101,285
2,307,796
0.9
%
22.79
DEA - Upper Marlboro
Upper Marlboro, MD
L
2022
50,978
2,294,520
0.9
%
45.01
FBI - Little Rock
Little Rock, AR
O
2021
101,977
2,271,725
0.9
%
22.28
MEPCOM - Jacksonville
Jacksonville, FL
O
2025
30,000
2,204,537
0.9
%
73.48
CBP - Savannah
Savannah, GA
L
2033
35,000
2,158,730
0.9
%
61.68
DOE - Lakewood
Lakewood, CO
O
2029
115,650
2,093,584
0.9
%
18.10
JUD - Jackson
Jackson, TN
C/O
2023
73,397
2,052,341
0.8
%
27.96
DEA - Santa Ana
Santa Ana, CA
O
2024
39,905
1,878,451
0.8
%
47.07
ICE - Otay
San Diego, CA
O
2022 / 2026
49,457
1,771,268
0.7
%
35.81
NPS - Omaha
Omaha, NE
O
2024
62,772
1,767,157
0.7
%
28.15
VA - Golden
Golden, CO
O/W
2026
56,753
1,753,834
0.7
%
30.90
DEA - Dallas
Dallas, TX
O
2040
71,827
1,726,977
0.7
%
24.04
CBP - Sunburst
Sunburst, MT
O
2028
33,000
1,616,901
0.7
%
49.00
USCG - Martinsburg
Martinsburg, WV
O
2027
59,547
1,605,912
0.7
%
26.97
DEA - Birmingham (8)
Birmingham, AL
O
2020
35,616
1,535,155
0.6
%
43.10
JUD - Aberdeen
Aberdeen, MS
C/O
2025
46,979
1,488,184
0.6
%
31.68
GSA - Clarksburg
Clarksburg, WV
O
2024
63,750
1,468,544
0.6
%
23.04
DEA - North Highlands
Sacramento, CA
O
2033
37,975
1,446,712
0.6
%
38.10
VA - Charleston
North Charleston, SC
W
2040
97,718
1,383,687
0.6
%
14.16
DEA - Albany
Albany, NY
O
2025
31,976
1,350,924
0.6
%
42.25
DEA - Riverside
Riverside, CA
O
2032
34,354
1,249,772
0.5
%
36.38
SSA - Dallas
Dallas, TX
O
2035
27,200
977,296
0.4
%
35.93
HRSA - Baton Rouge
Baton Rouge, LA
O
2040
27,569
838,276
0.3
%
30.41
ICE - Pittsburgh (9)
Pittsburgh, PA
O
2022 / 2023
25,245
800,087
0.3
%
31.69
VA - Baton Rouge
Baton Rouge, LA
OC
2024
30,000
793,356
0.3
%
26.45
JUD - South Bend
South Bend, IN
C/O
2027
30,119
763,813
0.3
%
25.36
DEA - San Diego
San Diego, CA
W
2032
16,100
537,952
0.2
%
33.41
SSA - Mission Viejo
Mission Viejo, CA
O
2022
11,590
474,045
0.2
%
40.90
DEA - Bakersfield
Bakersfield, CA
O
2021
9,800
370,497
0.2
%
37.81
SSA - San Diego
San Diego, CA
O
2032
10,059
340,912
0.1
%
33.89
Subtotal
7,124,814
$
244,012,585
99.6
%
$
34.25
Privately Leased
5998 Osceola Court -
United Technologies
Midland, GA
W/M
2023
105,641
543,818
0.2
%
5.15
501 East Hunter Street -
Lummus Corporation
Lubbock, TX
W/D
2028
70,078
410,157
0.2
%
5.85
Subtotal
175,719
$
953,975
0.4
%
$
5.43
Total / Weighted Average
7,300,533
$
244,966,560
100.0
%
$
33.55
(1)
OC=Outpatient Clinic; O=Office; C=Courthouse; L=Laboratory; W=Warehouse; D=Distribution; M=Manufacturing.
(2)
The year of lease expiration does not include renewal options.
(3)
Private tenants occupy 15,374 leased square feet.
(4)
Private tenants occupy 42,025 leased square feet.
( 5 )
Private tenants occupy 1,835 leased square feet.
( 6 )
A private tenant occupies 21,609 leased square feet.
( 7 )
Previously named VA – Northeast.
( 8 )
The ATF occupies 8,680 leased square feet.
( 9 )
A private tenant occupies 3,854 leased square feet.
30
Our assets are located throughout the United States . The following table sets forth the geographic diversification of our operating properties, by market, based on the GSA’s definition of regions, as of December 31, 2020 :
Location
Market
Number of Properties
Number of Leases
Leased Square Feet
Percentage of Total Leased Square Feet
Percent Leased
Annualized
Lease
Income
Percentage
of Total
Annualized
Lease Income
State
California
Pacific Rim
18
20
1,345,826
18.5
%
100
%
$
60,474,394
24.8
%
Virginia
National Capital
4
4
740,582
10.2
%
100
%
19,626,545
8.0
%
Texas
Greater Southwest
7
9
660,561
9.0
%
100
%
17,463,100
7.1
%
Alabama
Southeast Sunbelt
5
5
370,894
5.1
%
100
%
14,056,693
5.7
%
Kansas
The Heartland
3
3
301,254
4.1
%
100
%
13,641,126
5.6
%
New York
Northeast & Caribbean
3
10
397,928
5.5
%
100
%
12,292,895
5.0
%
West Virginia
Mid-Atlantic
4
4
415,797
5.7
%
100
%
10,090,094
4.1
%
Nebraska
The Heartland
3
3
312,639
4.3
%
100
%
9,985,133
4.1
%
Utah
Rocky Mountain
2
2
244,542
3.3
%
100
%
9,804,848
4.0
%
Colorado
Rocky Mountain
4
4
395,913
5.4
%
100
%
9,644,338
3.9
%
New Mexico
Greater Southwest
3
3
262,275
3.6
%
100
%
8,732,848
3.6
%
South Carolina
Southeast Sunbelt
3
4
235,339
3.2
%
100
%
7,591,540
3.1
%
Illinois
Great Lakes
1
4
204,020
2.8
%
88
%
6,519,508
2.7
%
Oregon
Northwest Arctic
1
16
212,845
2.9
%
95
%
6,465,482
2.6
%
Montana
Rocky Mountain
2
2
182,110
2.5
%
100
%
5,342,524
2.2
%
Louisiana
Greater Southwest
3
3
195,248
2.7
%
100
%
5,320,723
2.2
%
Maryland
National Capital
2
2
131,655
1.8
%
100
%
5,312,087
2.2
%
Indiana
Great Lakes
2
2
116,482
1.6
%
100
%
4,775,386
1.9
%
Pennsylvania
Mid-Atlantic
2
3
125,299
1.7
%
94
%
4,422,635
1.8
%
Georgia
Southeast Sunbelt
2
2
140,641
1.9
%
100
%
2,702,548
1.1
%
Connecticut
New England
1
1
56,330
0.8
%
100
%
2,685,326
1.1
%
Arkansas
Greater Southwest
1
1
101,977
1.4
%
100
%
2,271,725
0.9
%
Florida
Southeast Sunbelt
1
1
30,000
0.4
%
100
%
2,204,537
0.9
%
Tennessee
Southeast Sunbelt
1
1
73,397
1.0
%
100
%
2,052,341
0.8
%
Mississippi
Southeast Sunbelt
1
1
46,979
0.6
%
100
%
1,488,184
0.6
%
Total / Weighted Average
79
110
7,300,533
100.0
%
99
%
$
244,966,560
100.0
%
Market
Pacific Rim
18
20
1,345,826
18.4
%
100
%
$
60,474,394
24.8
%
Greater Southwest (1)
14
16
1,220,061
16.7
%
100
%
33,788,396
13.8
%
Southeast Sunbelt (1)
13
14
897,250
12.3
%
100
%
30,095,843
12.3
%
National Capital
6
6
872,237
11.9
%
100
%
24,938,632
10.2
%
Rocky Mountain
8
8
822,565
11.3
%
100
%
24,791,710
10.1
%
The Heartland
6
6
613,893
8.4
%
100
%
23,626,259
9.6
%
Mid-Atlantic
6
7
541,096
7.4
%
98
%
14,512,729
5.9
%
Northeast & Caribbean
3
10
397,928
5.5
%
100
%
12,292,895
5.0
%
Great Lakes
3
6
320,502
4.4
%
92
%
11,294,894
4.6
%
Northwest Arctic
1
16
212,845
2.9
%
95
%
6,465,482
2.6
%
New England
1
1
56,330
0.8
%
100
%
2,685,326
1.1
%
Total / Weighted Average
79
110
7,300,533
100.0
%
99
%
$
244,966,560
100.0
%
(1)
Two properties entirely leased to private tenants are located in the Southeast Sunbelt and Greater Southwest regions.
31
Our portfolio of operating properties has a stable tenant base that is diversified among U.S. Government agencies. Our U.S. Government tenant agencies include a number of the U.S. Government’s largest and most essential agencie s. As of December 31, 2020 our operating properties were 99 % leased by 44 tenants. The following table provides information about the tenants that leased our properties as of December 31, 2020 :
Tenant (1)
Weighted
Average
Remaining
Lease
Term (2)
Leased
Square
Feet
Percentage
of Leased
Square
Feet
Annualized
Lease
Income
Percentage
of Total
Annualized
Lease
Income
U.S. Government
Department of Veteran Affairs ("VA")
12.7
979,979
13.3
%
$
43,172,668
17.7
%
Federal Bureau of Investigation ("FBI")
7.5
1,292,484
17.6
%
40,771,826
16.7
%
Drug Enforcement Administration ("DEA")
7.0
603,323
8.2
%
24,531,817
10.1
%
Judiciary of the U.S. ("JUD")
7.4
334,608
4.6
%
12,006,443
4.9
%
Food and Drug Administration ("FDA")
15.1
209,991
2.9
%
11,467,739
4.7
%
Environmental Protection Agency ("EPA")
5.5
241,564
3.3
%
9,751,993
4.0
%
Internal Revenue Service ("IRS")
10.1
236,233
3.2
%
8,480,235
3.5
%
U.S. Joint Staff Command ("JSC")
7.4
403,737
5.5
%
8,104,091
3.3
%
Immigration and Customs Enforcement ("ICE")
4.6
187,848
2.6
%
7,700,050
3.1
%
Bureau of the Fiscal Service ("BFS")
3.0
266,176
3.6
%
6,861,460
2.8
%
U.S. Citizenship and Immigration Services ("USCIS")
7.6
204,489
2.8
%
6,798,166
2.8
%
Federal Aviation Administration ("FAA")
2.8
194,540
2.7
%
6,258,839
2.6
%
Patent and Trademark Office ("PTO")
14.0
190,546
2.6
%
6,170,884
2.5
%
U.S. Forest Service ("USFS")
3.0
191,175
2.6
%
5,987,394
2.4
%
Social Security Administration ("SSA")
5.5
200,866
2.8
%
5,357,141
2.2
%
Federal Emergency Management Agency ("FEMA")
17.8
210,373
2.9
%
4,614,143
1.9
%
Customs and Border Protection ("CBP")
10.3
68,000
0.9
%
3,775,631
1.5
%
Department of Transportation ("DOT")
3.3
129,659
1.8
%
3,737,418
1.5
%
Occupational Safety and Health Administration ("OSHA")
3.1
75,000
1.0
%
3,008,391
1.2
%
Defense Health Agency ("DHA")
13.3
101,285
1.4
%
2,307,796
0.9
%
Department of Energy ("DOE")
8.6
120,496
1.7
%
2,213,404
0.9
%
Military Entrance Processing Command ("MEPCOM")
4.7
30,000
0.4
%
2,204,537
0.9
%
U.S. Department of Agriculture ("USDA")
6.6
69,440
1.0
%
2,115,505
0.9
%
Bureau of Indian Affairs ("BIA")
11.5
78,184
1.1
%
2,010,629
0.8
%
National Park Service ("NPS")
3.5
62,772
0.9
%
1,767,157
0.7
%
Bureau of Reclamation ("BOR")
12.3
69,518
1.0
%
1,736,958
0.7
%
General Services Administration - Other
4.7
54,803
0.8
%
1,679,075
0.7
%
U.S. Coast Guard ("USCG")
7.0
59,547
0.8
%
1,605,912
0.7
%
Small Business Administration ("SBA")
1.2
42,835
0.6
%
1,335,628
0.5
%
U.S. Army Corps of Engineers ("ACOE")
4.1
39,320
0.5
%
1,081,097
0.4
%
Health Resources and Services Administration ("HRSA")
19.6
27,569
0.4
%
838,276
0.3
%
National Oceanic and Atmospheric Administration ("NOAA")
2.1
25,612
0.4
%
799,198
0.3
%
Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF")
4.2
21,342
0.3
%
779,810
0.3
%
U.S. Attorney Office ("USAO")
3.1
6,408
0.1
%
147,604
0.1
%
Office of the Field Solicitor ("OFC")
12.3
4,526
0.1
%
113,085
0.0
%
Office of the Special Trustee for American Indians ("OST")
12.3
3,359
0.0
%
83,927
0.0
%
U.S. Marshals Service ("USMS")
6.1
1,054
0.0
%
48,361
0.0
%
Department of Labor ("DOL")
3.1
1,004
0.0
%
23,125
0.0
%
U.S. Probation Office ("USPO")
3.1
452
0.0
%
10,419
0.0
%
Subtotal
8.3
7,040,117
96.4
%
$
241,457,832
98.5
%
Private Tenants
Other Private Tenants
2.1
41,445
0.6
%
1,199,149
0.5
%
Providence Health & Services
4.7
21,643
0.3
%
725,079
0.3
%
We Are Sharing Hope SC
0.7
21,609
0.3
%
630,525
0.3
%
United Technologies (Pratt & Whitney)
3.0
105,641
1.4
%
543,818
0.2
%
Lummus Corporation
7.6
70,078
1.0
%
410,157
0.2
%
Subtotal
4.0
260,416
3.6
%
$
3,508,728
1.5
%
Total / Weighted Average
8.2
7,300,533
100.0
%
$
244,966,560
100.0
%
(1)
If a property is leased to multiple tenants the weighted average remaining lease term, leased square feet, annualized lease income and percentage of total annualized lease income have been allocated to the respective tenant agency.
(2)
Weighted based on leased square feet.
32
Certain of our leases are currently in the “soft-term” period of the lease, meaning that the U.S. Government tenant agency has the right to terminate the lease prior to its stated lease end date. We believe that, from the U.S. Government ’s perspective, leases with such provisions are helpful for budgetary purposes. While some of our leases are contractually subject to early termination, we do not believe that our tenant agencies are likely to terminate these leases early given the build-to-suit features at the properties subject to the leases, the average age of these properties based on the date the property was built or renovated -to-suit , where applicable (approximately 15.6 years), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties. The following table sets forth a schedule of lease expirations for leases in place as of December 31, 2020 .
Year of Lease Expiration (1)
Number of
Leases
Expiring
Square
Footage
Expiring
Percentage of
Portfolio Square
Footage Expiring
Annualized
Lease Income Expiring
Percentage
of Total
Annualized
Lease Income Expiring
Annualized Lease
Income per
Leased Square
Foot Expiring
2020
3
90,835
1.2
%
$
4,376,151
1.8
%
$
48.18
2021
12
818,513
11.2
%
25,010,373
10.2
%
30.56
2022
10
282,083
3.9
%
11,524,521
4.7
%
40.86
2023
12
502,538
6.9
%
14,823,900
6.1
%
29.50
2024
10
727,374
10.0
%
22,767,700
9.3
%
31.30
2025
12
371,827
5.1
%
12,655,165
5.2
%
34.04
2026
3
157,011
2.2
%
4,873,639
2.0
%
31.04
2027
6
495,529
6.8
%
17,523,522
7.2
%
35.36
2028
8
783,003
10.7
%
16,388,769
6.7
%
20.93
2029
5
493,794
6.8
%
13,859,459
5.7
%
28.07
2030
0
—
0.0
%
—
0.0
%
—
Thereafter
29
2,578,026
35.2
%
101,163,361
41.1
%
39.24
Total / Weighted Average
110
7,300,533
100.0
%
$
244,966,560
100.0
%
$
33.55
(1)
The year of lease expirations is pursuant to current contract terms. Some tenants have the right to vacate their space during a specified period, or “soft term,” before the stated terms of their leases expire. As of December 31, 2020, 17 leases occupying approximately 4.3% of our leased square feet and contributing approximately 4.0% of our annualized lease income have exercisable rights to terminate their leases before the stated term of their lease expires.
Information about our development property as of December 31, 2020 is set forth in the table below:
Property Name
Location
Tenant
Property
Type (1)
Lease Term
Estimated Leased
Square
Feet
FDA - Atlanta
Atlanta, GA
Food and Drug Administration
L
20-year
162,000
Total
162,000
(1)
L=Laboratory.
Item 3. Legal Proceedings
We are not currently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us.
Item 4. Mine Safety Disclosure
Not applicable.
33
PART II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.