Exhibit 99.1
KEYSTONE PROPERTY TRUST
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FOURTH QUARTER 2001 EARNINGS CONFERENCE CALL
SUPPLEMENTAL INFORMATION PACKAGE
Page
------
Financial Highlights 1
Condensed Consolidated Statements of Operations 2
Condensed Consolidated Statements of FFO and FAD 3
Condensed Consolidated Balance Sheets 4
Market Operating Statistics 5
Portfolio Overview 6
Quarterly Same Store Analysis 7
Year-to-Date Same Store Analysis 8
Lease Expirations 9
Top 25 Tenants 10
Acquisitions, Dispositions, and Development Placed in Service in 2001 11
Equity Method Investments- Balance Sheets 12
Equity Method Investments-Statements of Income and FFO 13
Summary of Land Under Development and Control 14
Debt Detail 15
COMPARATIVE HISTORICAL DATA:
Portfolio Analysis 16
Physical Occupancy Analysis 17
Preferred Equity Analysis 18
Equity Analysis 19
Debt Analysis 20
Valuation Analysis 21
Dividend Analysis 22
Research Coverage, Anticipated 2002 Earnings Release and Dividend Calendar 23
THIS SUPPLEMENTAL INFORMATION PACKAGE MAY CONTAIN STATEMENTS WHICH CONSTITUTE FORWARD
LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995, INCLUDING STATEMENTS REGARDING THE INTENT, BELIEF OR CURRENT EXPECTATIONS OF THE
COMPANY, ITS TRUSTEES, OR ITS OFFICERS WITH RESPECT TO THE FUTURE OPERATING PERFORMANCE OF
THE COMPANY. INVESTORS ARE CAUTIONED THAT ANY SUCH FORWARD LOOKING STATEMENTS ARE NOT
GUARANTEES OF FUTURE PERFORMANCE AND INVOLVE RISKS AND UNCERTAINTIES, AND THAT ACTUAL
RESULTS MAY DIFFER MATERIALLY FROM THOSE IN THE FORWARD LOOKING STATEMENTS AS A RESULT OF
VARIOUS FACTORS. IMPORTANT FACTORS THAT COULD CAUSE SUCH DIFFERENCES ARE DESCRIBED IN THE
COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE
COMPANY'S FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q.
KEYSTONE PROPERTY TRUST
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FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended December 31, Year Ended December 31,
2001 % Change 2000 2001 % Change 2000
----------- ----------- ------------ ----------- ------------ ------------
INCOME ITEMS:
Revenue $ 24,924 (22.9%) $ 32,330 $ 109,784 (10.8%) $ 123,101
Earnings Before Interest, Taxes, and
Depreciation (EBITDA) 19,610 (19.2%) 24,276 84,107 (10.2%) 93,700
Net Income Allocated to Common Shares 2,353 47.4% 1,596 14,334 1499.8% 896
Funds from Operations 13,376 9.0% 12,269 50,821 7.4% 47,304
Funds from Operations - Per Share-(Diluted) 0.43 (10.4%) 0.48 1.74 (6.5%) 1.86
Dividends Paid Per Share- Common Shares 0.32 3.2% 0.31 1.26 4.1% 1.21
Diluted Earnings Per Share 0.13 (23.5%) 0.17 0.93 933.3% 0.09
Weighted Average Common Shares and Units- FFO 30,977,628 20.4% 25,722,549 29,261,054 14.8% 25,495,601
Weighted Average Common Shares and Units- EPS 24,756,734 45.6% 17,001,655 21,410,023 26.7% 16,898,872
RATIOS:
Interest Coverage Ratio 2.8x 2.0x 2.4x 2.0x
Fixed Charge Coverage Ratio 2.1x 1.5x 1.8x 1.6x
Dividend Payout Ratio-FFO 74.4% 64.6% 72.4% 65.1%
As of December 31,
------------------------------------------
2001 2000 1999
-------- -------- --------
ASSETS:
Investments in Real Estate at Cost $818,130 $957,598 $860,336
-------- -------- --------
Total Assets 827,513 962,687 875,076
-------- -------- --------
LIABILITIES AND EQUITY:
Total Debt $435,136 $616,569 $522,112
Other Liabilities 20,455 22,184 21,303
Convertible Preferred Equity, at Liquidation Preference 100,392 140,392 134,621
Common Equity and Minority Interest 271,530 183,542 197,040
-------- -------- --------
Total Liabilities and Equity 827,513 962,687 875,076
-------- -------- --------
RATIOS:
Debt to Undepreciated Assets 49.7% 61.5% 58.2%
Total Liabilities to Undepreciated Assets 52.1% 63.7% 61.8%
Page 1 of 23
KEYSTONE PROPERTY TRUST
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended December 31, Year Ended December 31,
2001 2000 2001 2000
--------- --------- --------- ---------
REVENUE:
Rents $ 21,431 $ 27,722 $ 95,077 $ 107,763
Reimbursement Revenue and Other 3,493 4,608 14,707 15,338
--------- --------- --------- ---------
Total Revenue 24,924 32,330 109,784 123,101
--------- --------- --------- ---------
OPERATING EXPENSES:
Property Operating Expenses 2,149 2,744 8,923 10,696
Real Estate Taxes 2,402 3,338 9,894 11,109
General and Administrative 1,431 1,483 7,983 7,523
Depreciation and Amortization 5,122 5,673 24,520 21,128
Interest Expense 6,490 12,050 34,187 46,566
Provision for Asset Revaluation -- -- -- 11,300
--------- --------- --------- ---------
Total Operating Expense 17,594 25,288 85,507 108,322
--------- --------- --------- ---------
Income before Equity in Income from Equity Method 7,330 7,042 24,277 14,779
Investments, and Gains on Sales of Assets
Equity in Income from Equity Method Investments 668 (489) 1,123 (73)
Gains (Losses) on Sales of Assets (1,219) (285) 9,142 87
--------- --------- --------- ---------
Income before Distributions to Preferred Unitholders, 6,779 6,268 34,542 14,793
Minority Interest of Unitholders in Operating Partnership,
Extraordinary items, and Income Allocated to Preferred
Shareholders
Distributions to Preferred Unitholders (1,447) (1,932) (7,057) (6,875)
--------- --------- --------- ---------
Income before Minority Interest of Unitholders in Operating 5,332 4,336 27,485 7,918
Partnership, Extraordinary items, and Income Allocated to
Preferred Shareholders
Minority Interest of Unitholders in Operating Partnership (844) (1,313) (5,650) (649)
Extraordinary Items - Early Retirement of Debt (1,197) -- (2,466) --
--------- --------- --------- ---------
Income before Income Allocated to Preferred Shareholders 3,291 3,023 19,369 7,269
Income Allocated to Preferred Shareholders (938) (1,427) (5,035) (6,373)
--------- --------- --------- ---------
Net Income Allocated to Common Shareholders $ 2,353 $ 1,596 $ 14,334 $ 896
========= ========= ========= =========
Page 2 of 23
KEYSTONE PROPERTY TRUST
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CONDENSED CONSOLIDATED STATEMENTS OF FFO AND FAD (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended December 31, Year Ended December 31,
2001 2000 2001 2000
------------ ------------ ------------ ------------
FUNDS FROM OPERATIONS:
Income before Minority Interest of Unitholders in Operating $ 6,779 $ 6,268 $ 34,542 $ 14,793
Partnership, Extraordinary Items, and Income Allocated
to Preferred Shareholders
Provision for Asset Valuation -- -- -- 11,300
(Gains)/Losses on Sales of Assets 1,219 285 (9,142) (87)
Depreciation and Amortization Related to Real Estate 5,122 5,673 24,520 21,128
Depreciation and Amortization Related to Joint Ventures 256 43 901 170
and Equity Method Investments
------------ ------------ ------------ ------------
Funds from Operations $ 13,376 $ 12,269 $ 50,821 $ 47,304
============ ============ ============ ============
Funds from Operations-Basic $ 0.44 $ 0.52 $ 1.78 $ 2.02
============ ============ ============ ============
Funds from Operations-per Diluted Share $ 0.43 $ 0.48 $ 1.74 $ 1.86
============ ============ ============ ============
FUNDS AVAILABLE FOR DISTRIBUTION:
Funds from Operations $ 13,376 $ 12,269 $ 50,821 $ 47,304
Building Improvements (875) (320) (1,670) (981)
Tenant Improvements (428) (786) (2,037) (2,888)
Leasing Commissions (778) (261) (2,289) (3,127)
Amortization of Deferred Financing Costs 405 434 1,789 1,798
Amortization of Restricted Stock Awards -- 57 -- 261
Rental Income from Straight Line Rents (865) (982) (2,960) (3,828)
------------ ------------ ------------ ------------
Funds Available for Distribution $ 10,835 $ 10,411 $ 43,654 $ 38,539
============ ============ ============ ============
Funds Available for Distribution-per Diluted Share $ 0.35 $ 0.40 $ 1.49 $ 1.51
============ ============ ============ ============
Weighted Average Shares and Units - Diluted 30,977,628 25,722,549 29,261,054 25,495,601
============ ============ ============ ============
Dividend Paid per Common Share $ 0.32 $ 0.31 $ 1.26 $ 1.21
============ ============ ============ ============
Dividend Payout Ratio-FFO 74.4% 64.6% 72.4% 65.1%
Dividend Payout Ratio-FAD 91.4% 77.5% 84.6% 80.1%
Page 3 of 23
KEYSTONE PROPERTY TRUST
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CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS)
December 31, 2001 December 31, 2000
----------------- -----------------
ASSETS:
Investments in Real Estate, Including Development and Construction
in Progress of $62,490 and $28,366 for 2001 and 2000, respectively $ 818,130 $ 957,598
Less: Accumulated Depreciation (47,192) (40,558)
--------- ---------
Investments in Real Estate, Net 770,938 917,040
--------- ---------
Cash, Cash Equivalents, and Escrows 6,842 10,787
Notes and Accounts Receivable, Net 11,439 9,446
Deferred Financing and Leasing Costs, Net 11,263 13,201
Equity Method Investments 21,863 6,686
Other Assets 5,168 5,527
--------- ---------
Total Assets $ 827,513 $ 962,687
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Mortgage Notes and Other Debt $ 435,136 $ 616,569
Accrued Liabilities and Other 20,455 22,184
--------- ---------
Total Liabilities 455,591 638,753
--------- ---------
Minority Interest:
Limited Partners in Operating Partnership 48,698 76,710
Convertible Preferred Units in Operating Partnership 60,392 80,295
--------- ---------
Total Minority Interest 109,090 157,005
--------- ---------
Shareholders' Equity:
Preferred Stock, $.001 par value 2 3
Common Stock, $.001 par value 18 9
Additional Paid-in Capital 276,376 178,034
Cumulative Net Income 35,850 21,516
Cumulative Dividends (49,414) (32,633)
--------- ---------
Total Shareholders' Equity 262,832 166,929
--------- ---------
Total Liabilities and Shareholders' Equity $ 827,513 $ 962,687
========= =========
Page 4 of 23
KEYSTONE PROPERTY TRUST
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MARKET OPERATING STATISTICS (AS OF DECEMBER 31, 2001)
TOTAL CORE
NEW JERSEY PENNSYLVANIA INDIANA INDUSTRIAL
----------------- ------------------ ----------------- ---------------
Square Feet Owned at December 31, 2001 5,748,284 6,400,879 2,194,848 14,344,011
Economic Occupancy - Year-to-date 98.9% 95.7% 100.0% 98.0%
Physical Occupancy at December 31, 2001 99.2% 95.2% 100.0% 97.5%
Annualized Base Rent (in 000's) $ 26,315 $ 23,028 $ 7,928 $ 57,271
Annualized Base Rent Per Leased SF $ 4.61 $ 3.78 $ 3.61 $ 4.09
Lease Expirations as a Percentage of ABR:
2002 1.9% 25.6% 3.7% 11.7%
2003 9.6% 13.5% 0.0% 9.8%
2004 20.8% 12.0% 0.0% 14.4%
Wtd Avg Lease Term Remaining (in years) 4.6 3.4 10.7 4.9
Square Feet of Leasing Activity in Quarter -- 457,347 -- 457,347
Year-to-date 1,172,523 851,814 1,397,248 3,421,585
Tenant Retention during period N/A 93.2% N/A 93.2%
Year-to-date 76.6% 71.3% 100.0% 79.6%
Rent Change on Renewals and Rollovers during period: N/A 6.3% N/A 6.3%
Year-to-date 21.6% 7.5% 0.0% 13.5%
Same Store NOI Growth during period (cash basis): (1.1%) (1.2%) (0.8%) (1.1%)
Year-to-date 7.4% (1.9%) (0.1%) 2.4%
Square Feet Owned in Same Store Pool 4,871,260 4,313,736 1,396,752 10,581,748
OTHER TOTAL GRAND
INDUSTRIAL INDUSTRIAL OFFICE TOTAL
---------------- --------------- -------------- --------------
Square Feet Owned at December 31, 2001 5,830,286 20,174,297 1,628,633 21,802,930
Economic Occupancy - Year-to-date 85.0% 94.7% 94.8% 94.7%
Physical Occupancy at December 31, 2001 84.9% 93.9% 93.7% 93.9%
Annualized Base Rent (in 000's) $ 16,093 $ 73,364 $ 22,010 $ 95,374
Annualized Base Rent Per Leased SF $ 3.25 $ 3.87 $ 14.42 $ 4.66
Lease Expirations as a Percentage of ABR:
2002 23.4% 14.2% 10.1% 13.3%
2003 24.7% 13.1% 15.1% 13.6%
2004 13.6% 14.2% 14.3% 14.2%
Wtd Avg Lease Term Remaining (in years) 3.7 4.7 3.7 4.5
Square Feet of Leasing Activity in Quarter 1,368,373 1,825,720 85,391 1,911,111
Year-to-date 2,651,715 6,073,300 161,106 6,234,406
Tenant Retention during period 92.1% 92.4% 37.9% 89.5%
Year-to-date 68.6% 74.1% 52.1% 73.4%
Rent Change on Renewals and Rollovers during period: (4.2%) (1.2%) 0.6% (0.8%)
Year-to-date (1.7%) 6.5% 1.3% 5.8%
Same Store NOI Growth during period (cash basis): (14.3%) (5.4%) 0.2% (3.9%)
Year-to-date (11.6%) (2.0%) (2.3%) (2.0%)
Square Feet Owned in Same Store Pool 5,830,286 16,412,034 1,514,633 17,926,667
Page 5 of 23
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PORTFOLIO OVERVIEW (DOLLARS IN THOUSANDS, AS OF DECEMBER 31, 2001)
TOTAL CORE OTHER
NEW JERSEY PENNSYLVANIA INDIANA INDUSTRIAL INDUSTRIAL
------------- ------------- ------------- -------------- -------------
Number of Buildings 17 30 6 53 49
Square Feet Owned at December 31, 2001 5,748,284 6,400,879 2,194,848 14,344,011 5,830,286
% of Total Rentable SF 26.4% 29.4% 10.1% 65.8% 26.7%
Percentage Leased 99.2% 95.2% 100.0% 97.5% 84.9%
Annualized Base Rent $ 26,315 $ 23,028 $ 7,928 $ 57,271 $ 16,093
% of Total Annualized Base Rent 27.6% 24.1% 8.3% 60.0% 16.9%
Number of Leases 24 54 6 84 55
Base Rent Per Leased SF $ 4.61 $ 3.78 $ 3.61 $ 4.09 $ 3.25
TOTAL
INDUSTRIAL OFFICE GRAND TOTAL
-------------- ------------- --------------
Number of Buildings 102 23 125
Square Feet Owned at December 31, 2001 20,174,297 1,628,633 21,802,930
% of Total Rentable SF 92.5% 7.5% 100.0%
Percentage Leased 93.9% 93.7% 93.9%
Annualized Base Rent $ 73,364 $ 22,010 $ 95,374
% of Total Annualized Base Rent 76.9% 23.1% 100.0%
Number of Leases 139 123 262
Base Rent Per Leased SF $ 3.87 $ 14.42 $ 4.66
Page 6 of 23
KEYSTONE PROPERTY TRUST
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QUARTERLY SAME STORE ANALYSIS (DOLLARS IN THOUSANDS)
CORE SAME STORE PORTFOLIO NON-CORE SAME STORE PORTFOLIO
Quarter Ended December 31, Quarter Ended December 31,
------------------------------------------------ ---------------------------------------------
2001 2000 Change % Change 2001 2000 Change % Change
------------------------------------------------ ---------------------------------------------
REVENUE
Gross Potential Rent $ 9,292 $ 9,260 $ 32 0.3% $ 10,496 $ 10,626 $ (130) (1.2%)
Vacancy Loss (199) (18) (181) 1005.6% (1,171) (801) (370) 46.2%
------------------------------------------------ ---------------------------------------------
Rental Revenue 9,093 9,242 (149) (1.6%) 9,325 9,825 (500) (5.1%)
OPERATING EXPENSES
Property Operating Expenses 242 224 18 8.0% 1,820 1,815 5 0.3%
Real Estate Taxes 1,144 1,020 124 12.2% 1,274 1,176 98 8.3%
Tenant Reimbursement (1,373) (1,181) (192) 16.3% (1,661) (1,640) (21) 1.3%
------------------------------------------------ ---------------------------------------------
Net Operating Expenses 13 63 (50) (79.4%) 1,433 1,351 82 6.1%
------------------------------------------------ ---------------------------------------------
NET OPERATING INCOME $ 9,080 $ 9,179 $ (99) (1.1%) $ 7,892 $ 8,474 $ (582) (6.9%)
================================================ =============================================
PHYSICAL OCCUPANCY (EOP) 97.1% 98.0% (0.8%) 85.9% 90.8% (4.9%)
ECONOMIC OCCUPANCY 97.9% 99.8% (1.9%) 88.8% 92.5% (3.7%)
PERCENTAGE OF TOTAL NOI: 44.6% 38.7%
COMPONENTS OF NOI CHANGES:
Rental Increases/(Decreases) $ 32 0.3% $ (130) (1.5%)
Occupancy Increases/(Decreases) (181) (2.0%) (370) (4.4%)
Reduction/(Increase) in expenses,
net of reimbursements 50 0.5% (82) (1.0%)
---------------------- -------------------
Total $ (99) (1.1%) $ (582) (6.9%)
====================== ===================
TOTAL SAME STORE PORTFOLIO
Quarter Ended December 31,
----------------------------------------------
2001 2000 Change % Change
----------------------------------------------
REVENUE
Gross Potential Rent $ 19,788 $ 19,886 $ (98) (0.5%)
Vacancy Loss (1,370) (819) (551) 67.3%
----------------------------------------------
Rental Revenue 18,418 19,067 (649) (3.4%)
OPERATING EXPENSES
Property Operating Expenses 2,062 2,039 23 1.1%
Real Estate Taxes 2,418 2,196 222 10.1%
Tenant Reimbursement (3,034) (2,821) (213) 7.6%
----------------------------------------------
Net Operating Expenses 1,446 1,414 32 2.3%
----------------------------------------------
NET OPERATING INCOME $ 16,972 $ 17,653 $ (681) (3.9%)
==============================================
PHYSICAL OCCUPANCY (EOP) 93.1% 95.0% (1.9%)
ECONOMIC OCCUPANCY 93.1% 95.9% (2.8%)
PERCENTAGE OF TOTAL NOI: 83.3%
COMPONENTS OF NOI CHANGES:
Rental Increases/(Decreases) $ (98) (0.6%)
Occupancy Increases/(Decreases) (551) (3.1%)
Reduction/(Increase) in expenses,
net of reimbursements (32) (0.2%)
--------------------
Total $ (681) (3.9%)
====================
Page 7 of 23
KEYSTONE PROPERTY TRUST
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YEAR TO DATE SAME STORE ANALYSIS (DOLLARS IN THOUSANDS)
CORE SAME STORE PORTFOLIO NON-CORE SAME STORE PORTFOLIO
Year Ended December 31, Year Ended December 31,
-------------------------------------------- -----------------------------------------------
2001 2000 Change % Change 2001 2000 Change % Change
-------------------------------------------- -----------------------------------------------
REVENUE
Gross Potential Rent $ 39,322 $ 37,776 $ 1,546 4.1% $ 47,359 $ 47,316 $ 43 0.1%
Vacancy Loss (771) (176) (595) 338.1% (4,273) (2,366) (1,907) 80.6%
-------------------------------------------- -----------------------------------------------
Rental Revenue 38,551 37,600 951 2.5% 43,086 44,950 (1,864) (4.1%)
OPERATING EXPENSES
Property Operating Expenses 1,254 1,135 119 10.5% 7,520 7,156 364 5.1%
Real Estate Taxes 4,112 3,923 189 4.8% 5,100 4,847 253 5.2%
Tenant Reimbursement (5,230) (4,959) (271) 5.5% (6,647) (6,634) (13) 0.2%
-------------------------------------------- -----------------------------------------------
Net Operating Expenses 136 99 37 37.4% 5,973 5,369 604 11.2%
-------------------------------------------- -----------------------------------------------
NET OPERATING INCOME $ 38,415 $ 37,501 $ 914 2.4% $ 37,113 $ 39,581 $ (2,468) (6.2%)
============================================ ===============================================
PHYSICAL OCCUPANCY (EOP) 97.1% 98.0% (0.8%) 85.9% 90.8% (4.9%)
ECONOMIC OCCUPANCY 98.1% 99.6% (1.5%) 91.0% 95.0% (4.0%)
PERCENTAGE OF TOTAL NOI: 42.2% 40.8%
COMPONENTS OF NOI CHANGES:
Rental Increases/(Decreases) $ 1,546 4.1% $ 43 0.1%
Occupancy Increases/(Decreases) (595) (1.6%) (1,907) (4.8%)
Reduction/(Increase) in expenses,
net of reimbursements (37) (0.1%) (604) (1.5%)
----------------- -------------------
Total $ 914 2.4% $ (2,468) (6.2%)
================= ===================
TOTAL SAME STORE PORTFOLIO
Year Ended December 31,
-----------------------------------------
2001 2000 Change % Change
-----------------------------------------
REVENUE
Gross Potential Rent $ 86,681 $ 85,092 $ 1,589 1.9%
Vacancy Loss (5,044) (2,542) (2,502) 98.4%
-----------------------------------------
Rental Revenue 81,637 82,550 (913) (1.1%)
OPERATING EXPENSES
Property Operating Expenses 8,774 8,291 483 5.8%
Real Estate Taxes 9,212 8,770 442 5.0%
Tenant Reimbursement (11,877) (11,593) (284) 2.4%
-----------------------------------------
Net Operating Expenses 6,109 5,468 641 11.7%
-----------------------------------------
NET OPERATING INCOME $ 75,528 $ 77,082 $ (1,554) (2.0%)
=========================================
PHYSICAL OCCUPANCY (EOP) 93.1% 95.0% (1.9%)
ECONOMIC OCCUPANCY 94.2% 97.0% (2.8%)
PERCENTAGE OF TOTAL NOI: 83.0%
COMPONENTS OF NOI CHANGES:
Rental Increases/(Decreases) $ 1,589 2.1%
Occupancy Increases/(Decreases) (2,502) (3.2%)
Reduction/(Increase) in expenses,
net of reimbursements (641) (0.8%)
------------------
Total $(1,554) (2.0%)
==================
Page 8 of 23
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LEASE EXPIRATIONS (DOLLARS IN THOUSANDS, AS OF DECEMBER 31, 2001)
INDUSTRIAL PROPERTIES OFFICE PROPERTIES TOTAL
-------------------------------------- ---------------------------------- -----------------------------------
Square Annualized Square Annualized Square Annualized
Feet Base Rent % ABR Feet Base Rent % ABR Feet Base Rent % ABR
------------ ------------- -------- -------- ---------- -------- ----------- ---------- -------
2002 2,969,326 $ 10,449 14.2% 147,798 $ 2,221 10.1% 3,117,124 $ 12,670 13.3%
2003 2,680,084 9,604 13.1% 220,360 3,319 15.1% 2,900,444 12,923 13.6%
2004 2,644,509 10,428 14.2% 273,150 3,153 14.3% 2,917,659 13,581 14.2%
2005 1,513,081 6,793 9.3% 411,256 5,925 26.9% 1,924,337 12,718 13.3%
2006 2,033,841 7,817 10.7% 194,216 3,007 13.7% 2,228,057 10,824 11.3%
2007 1,870,997 7,749 10.6% 46,148 772 3.5% 1,917,145 8,521 8.9%
2008 1,487,593 5,975 8.1% 122,580 1,804 8.2% 1,610,173 7,779 8.2%
2009 1,155,595 4,676 6.4% 1,896 28 0.1% 1,157,491 4,704 4.9%
2010 239,718 1,070 1.5% 41,594 665 3.0% 281,312 1,735 1.8%
2011 1,301,173 3,959 5.4% 39,392 747 3.4% 1,340,565 4,706 4.9%
2012 and beyond 1,048,687 4,844 6.6% 27,778 367 1.7% 1,076,465 5,211 5.5%
------------ ---------- ---------- ----------- ---------- -------- ----------- ----------- -------
Total 18,944,604 $ 73,364 100.0% 1,526,168 $ 22,010 100.0% 20,470,772 $ 95,374 100.0%
============ ========== ========== =========== ========== ======== =========== =========== =======
CORE PROPERTIES NON-CORE PROPERTIES TOTAL
------------------------------------- ----------------------------------- -----------------------------------
Square Annualized Square Annualized Square Annualized
Feet Base Rent % ABR Feet Base Rent % ABR Feet Base Rent % ABR
------------ ---------- ---------- ----------- ---------- -------- ----------- ----------- -------
2002 1,781,132 $ 6,680 11.7% 1,335,992 $ 5,990 15.7% 3,117,124 $ 12,670 13.3%
2003 1,487,150 5,634 9.8% 1,413,294 7,289 19.1% 2,900,444 12,923 13.6%
2004 1,980,354 8,240 14.4% 937,305 5,340 14.0% 2,917,659 13,581 14.2%
2005 1,225,581 6,086 10.6% 698,756 6,632 17.4% 1,924,337 12,718 13.3%
2006 1,721,066 7,000 12.2% 506,991 3,824 10.0% 2,228,057 10,824 11.3%
2007 1,477,049 5,991 10.5% 440,096 2,530 6.6% 1,917,145 8,521 8.9%
2008 1,372,458 5,384 9.4% 237,715 2,395 6.3% 1,610,173 7,779 8.2%
2009 881,923 3,881 6.8% 275,568 824 2.2% 1,157,491 4,704 4.9%
2010 239,718 1,070 1.9% 41,594 665 1.7% 281,312 1,735 1.8%
2011 1,119,823 3,460 6.0% 220,742 1,246 3.3% 1,340,565 4,706 4.9%
2012 and beyond 706,270 3,843 6.7% 370,195 1,367 3.6% 1,076,465 5,211 5.5%
------------ ---------- ---------- ----------- ---------- -------- ----------- ----------- -------
Total 13,992,524 $ 57,271 100.0% 6,478,248 $ 38,103 100.0% 20,470,772 $ 95,374 100.0%
============ ========== ========== =========== ========== ======== =========== =========== =======
Page 9 of 23
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TOP 25 TENANTS (DOLLARS IN THOUSANDS, AS OF DECEMBER 31, 2001)
Term Remaining Number of Rentable Percentage Annualized Annualized
Tenant Name (in months) Leases Square Feet Leased Feet Base Rent Base Rent
--------------------------------------------------- -------------- --------- ----------- ----------- ----------- ----------
The Home Depot, Inc. (1) 28 1 812,739 3.7% $ 3,251 3.4%
Brightpoint, Inc. 54-219 2 658,348 3.0% 2,811 2.9%
Exel Logistics, Inc. 1-51 4 855,368 3.9% 2,733 2.9%
Franklin Storage, Inc. 13-19 2 690,400 3.2% 2,715 2.8%
Reckitt Benckiser 27 1 155,700 0.7% 2,618 2.7%
APL Logistics, Inc. (Formerly GATX Logistics, Inc.) 52 1 585,510 2.7% 2,576 2.7%
▇▇▇▇▇▇ Distribution 17 1 610,949 2.8% 2,291 2.4%
Belkin Electronics, Inc. 114 1 798,096 3.7% 2,291 2.4%
Cosmetic Essence, Inc. 87 1 483,507 2.2% 1,987 2.1%
Coca-Cola Bottling Company of New York, Inc. (1) 40 1 243,751 1.1% 1,950 2.0%
International Paper, Inc. 15-68 2 461,707 2.1% 1,924 2.0%
Poly-Foam International, Inc. 86-151 6 669,871 3.1% 1,861 2.0%
Cumberland Distribution 12 3 489,213 2.2% 1,660 1.7%
Hartford Fire Insurance 76 1 107,794 0.5% 1,613 1.7%
Engine Controls Distribution/▇▇▇▇ 89 1 407,100 1.9% 1,567 1.6%
BMG Music 14-22 2 445,591 2.0% 1,551 1.6%
Group Athletica (a division of Reebok) 80 1 599,152 2.7% 1,528 1.6%
SETCO, Inc. 60-64 2 327,636 1.5% 1,452 1.5%
AT & T Communications 51 1 86,602 0.4% 1,451 1.5%
Staples, Inc. 32 1 351,000 1.6% 1,422 1.5%
Direct Fulfillment LP 99 1 265,000 1.2% 1,365 1.4%
Royal Indemnity Co. 28-58 2 80,000 0.4% 1,328 1.4%
Parcel Direct (1) 63 1 241,110 1.1% 1,326 1.4%
Vestcom, Inc. 152 1 210,530 1.0% 1,324 1.4%
BMW 7 3 431,198 2.0% 1,236 1.3%
----------- --------- ------------ -------- ----------- --------
Total/Wtd Avg 63 43 11,067,872 50.8% $ 47,831 50.2%
=========== ========= ============ ======== =========== ========
(1) Tenant occupies a property that is 20% owned as part of a Joint Venture
with CalEast Industrial Investors LLC.
Page 10 of 23
KEYSTONE PROPERTY TRUST
------------------------------------------------------------------------------------------------------------------------------------
ACQUISITIONS, DISPOSITIONS, AND DEVELOPMENT PLACED IN SERVICE IN 2001 (DOLLARS IN THOUSANDS, AS OF DECEMBER 31, 2001 )
Square Current Purchase /
Property City State Market Closing Date Feet Leased % Sales Price
----------------------------------- --------------- ----- ----------------------- ------------ -------- -------- -----------
DEVELOPMENT
558 Airtech Park (1) Indianapolis IN Indianapolis 4/1/2001 798,096 100.0% $ 20,100
--------- ---------
DEVELOPMENT PLACED IN SERVICE TOTAL 798,096 $ 20,100
========= =========
ACQUISITIONS
INDUSTRIAL
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇ Harrisburg/Chambersburg 1/5/2001 504,321 100.0% $ 12,125
▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇ Harrisburg/Chambersburg 2/8/2001 132,548 100.0% 4,200
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇ Harrisburg/Chambersburg 3/23/2001 145,640 100.0% 3,475
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ (2) Cranbury NJ Central & Northern NJ 4/3/2001 812,739 100.0% 32,300
558 Airtech Park (1) Indianapolis IN Indianapolis 11/20/2001 798,096 100.0% 20,100
Goldstar Land South Brunswick NJ Central & Northern NJ 9/28/2001 - - 6,659
Westpark Portfolio (6) Allentown PA Allentown 12/20/2001 1,304,634 92.9% 55,530 (5)
--------- ---------
ACQUISITIONS TOTAL 3,697,978 $ 134,389
========= =========
DISPOSITIONS
INDUSTRIAL
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇ Harrisburg/Chambersburg 3/22/2001 597,100 $ 27,000
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (3) Carlstadt NJ Central & Northern NJ 3/21/2001 243,751 18,800 (4)
200-250 ▇▇▇▇▇▇▇ Drive (3) Sayreville NJ Central & Northern NJ 3/21/2001 164,267 7,275 (4)
300-350 ▇▇▇▇▇▇▇ Drive (3) Sayreville NJ Central & Northern NJ 3/21/2001 161,987 7,025 (4)
309 ▇▇▇▇▇▇▇ Drive (3) Sayreville NJ Central & Northern NJ 3/21/2001 202,000 9,700 (4)
409 ▇▇▇▇▇▇▇ Drive (3) Sayreville NJ Central & Northern NJ 3/21/2001 225,831 10,575 (4)
One ▇▇▇▇▇ ▇▇▇▇ (3) Edison NJ Central & Northern NJ 3/21/2001 192,829 8,325 (4)
100-400 ▇▇▇▇▇ ▇▇▇▇ (3) Edison NJ Central & Northern NJ 3/21/2001 851,907 42,100 (4)
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Teterboro NJ Central & Northern NJ 9/27/2001 332,352 38,700
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇ Central & Northern NJ 9/27/2001 39,785 2,900
▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ 11/2/2001 151,874 9,552 (4)
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ 11/2/2001 105,367 5,885 (4)
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ 11/2/2001 151,700 5,675 (4)
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ Greenville SC Greenville/Spartanburg 12/27/2001 60,000 1,800
--------- ---------
INDUSTRIAL TOTAL 3,480,750 $ 195,312
OFFICE
▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇ 1/26/2001 143,870 $ 15,000 (4)
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇ 1/26/2001 80,000 9,750 (4)
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇ Harrisburg/Chambersburg 1/26/2001 67,463 6,000 (4)
▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇ Reading 1/26/2001 52,841 5,000 (4)
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ 11/2/2001 41,450 1,040 (4)
22-08 Rt 208 Fair Lawn NJ Bergen County 11/2/2001 75,857 2,960 (4)
1500 ▇▇▇▇▇▇▇ Drive Fair Lawn NJ Bergen County 11/2/2001 18,614 1,423 (4)
1900 ▇▇▇▇▇▇▇ Drive Fair Lawn NJ Bergen County 11/2/2001 77,262 7,797 (4)
40 Potash Road Oakland NJ Bergen County 11/2/2001 60,994 10,420 (4)
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ 11/2/2001 155,700 25,410 (4)
1600 Rt 208 Fair Lawn NJ Bergen County 11/2/2001 52,531 5,500 (4)
95 ▇▇▇▇▇ Drive Oakland NJ Bergen County 11/2/2001 6,792 844 (4)
99 ▇▇▇▇▇ Drive Oakland NJ Bergen County 11/2/2001 20,449 1,544 (4)
--------- ---------
OFFICE TOTAL 853,823 $ 92,688
--------- ---------
DISPOSITIONS TOTAL 4,334,573 $ 288,000
========= =========
(1) This property was placed in service on April 1, 2001 and was, at that time,
50% owned as part of a joint venture with ▇▇▇▇▇▇▇▇ Investments. On 11/20/01
▇▇▇▇▇▇▇▇'▇ 50% investment was acquired by the Company for $3.8 million.
(2) This property was acquired by a joint venture with CalEast Industrial
Investors LLC, in which the Company has a 20% ownership interest.
(3) These properties were contributed/sold to a joint venture with CalEast
Industrial Investors LLC, in which the Company retained a 20% ownership
interest.
(4) These properties were sold as part of a portfolio sale.
(5) These properties were acquired as part of a portfolio purchase.
(6) The Westpark Portfolio includes 15.3 acres of land which is zoned for a
266,000 sf industrial building.
Page 11 of 23
KEYSTONE PROPERTY TRUST
------------------------------------------------------------------------------------------------------------------------------------
EQUITY METHOD INVESTMENTS - PRO-RATA CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 2001 (DOLLARS IN THOUSANDS)
Pro rata
Pro rata Pro,rata Keystone
KTR Keystone NJ Airtech Realty Other Proforma
Historical Associates, LLC (1) Park (2) Services, Inc. (3) Adjustments (4) Total
----------- ------------------- ---------- ------------------ --------------- ---------
ASSETS
Gross Real Estate Assets $ 818,130 $ 27,562 $ 7,290 $ -- $ -- $ 852,982
Accumulated Depreciation (47,192) (502) -- -- -- (47,694)
Other Assets 56,575 715 -- 6,972 (19,157) 45,105
--------- --------- --------- --------- --------- ---------
Total Assets $ 827,513 $ 27,775 $ 7,290 $ 6,972 $ (19,157) $ 850,393
========= ========= ========= ========= ========= =========
LIABILITIES & EQUITY
Debt $ 435,136 $ 15,374 $ 6,198 $ -- $ -- $ 456,708
Other Liabilities 20,455 541 -- 767 -- 21,763
--------- --------- --------- --------- --------- ---------
Total Liabilities 455,591 15,915 6,198 767 -- 478,471
========= ========= ========= ========= ========= =========
Equity, Including Minority Interest 371,922 11,860 1,092 6,205 (19,157) 371,922
--------- --------- --------- --------- --------- ---------
Total Liabilities and Equity $ 827,513 $ 27,775 $ 7,290 $ 6,972 $ (19,157) $ 850,393
========= ========= ========= ========= ========= =========
(1) In 2001, the Company formed a joint venture known as Keystone New Jersey
Associates, LLC with CalEast Industrial Investors, LLC ("CalEast"). CalEast is a
real estate operating company whose members are LaSalle Investment Management,
Inc. (a division of ▇▇▇▇▇ ▇▇▇▇ LaSalle ("JLL")) and the California Public
Employees Retirement System ("CalPERS"). The Company owns 20% of this joint
venture.
(2) In June 2001, the Company formed a joint venture with ▇▇▇▇▇▇▇▇ Investments,
Inc. ("▇▇▇▇▇▇▇▇") known as 4 Points Associates, to develop and construct a
796,000 square foot distribution facility in Indiana. The Company owns 50% of
this venture. This facility is currently under construction.
(3) The Company accounts for its investment in 100% of the non-voting preferred
stock in Keystone Realty Services, Inc. ( the "Management Company"), which
represents 95% of the total equity, in accordance with the equity method of
accounting. The Company is entitled to receive 95% of the amounts paid as
dividends by the Management Company.
(4) Consists of elimination adjustments for presentation purposes.
Page 12 of 23
KEYSTONE PROPERTY TRUST
------------------------------------------------------------------------------------------------------------------------------------
EQUITY METHOD INVESTMENTS - PRO-RATA CONSOLIDATING STATEMENTS OF INCOME & FFO FOR THE QUARTER ENDED DECEMBER 31, 2001
(DOLLARS IN THOUSANDS)
Pro rata
Keystone NJ Pro rata Keystone
KTR Associates, Airtech Realty Servics, Other Proforma
Historical LLC (1) Park (2) Inc. (3) Adjustments (4) Total
---------- ----------- --------- --------------- --------------- ---------
REVENUE:
Rents $ 21,431 $ 683 $ 480 $ -- $ -- $ 22,594
Reimbursement Revenue and Other 3,493 140 30 917 -- 4,580
-------- -------- -------- -------- -------- --------
Total revenue $ 24,924 $ 823 $ 510 $ 917 $ -- $ 27,174
======== ======== ======== ======== ======== ========
OPERATING EXPENSES:
Property Operating Expenses $ 2,149 $ 51 $ 30 $ -- $ -- $ 2,230
Real Estate Taxes 2,402 106 -- -- -- 2,508
-------- -------- -------- -------- -------- --------
Property NOI 20,373 666 480 917 -- 22,436
-------- -------- -------- -------- -------- --------
General and Administrative 1,431 2 2 670 -- 2,105
-------- -------- -------- -------- -------- --------
EBITDA 18,942 664 478 247 -- 20,331
Depreciation and Amortization 5,122 165 48 128 -- 5,463
Interest Expense 6,490 276 92 12 -- 6,870
-------- -------- -------- -------- -------- --------
Income before other items 7,330 223 338 107 -- 7,998
Equity in Income from Equity Method Investments 668 -- -- -- (668) --
Losses on Sales of Assets (1,219) -- -- -- -- (1,219)
Extraordinary Items (1,197) -- -- -- -- (1,197)
Preferred Dividends, Preferred Distributions,
and Minority Interest (3,229) -- -- -- -- (3,229)
-------- -------- -------- -------- -------- --------
Net (Loss) Income Allocated to Common Shareholders $ 2,353 $ 223 $ 338 $ 107 $ (668) $ 2,353
======== ======== ======== ======== ======== ========
FFO
Income before Minority Interest of Unitholders in
Operating Partnership, Extraordinary Item, and
Income Allocated to Preferred Shareholders $ 6,779 $ 223 $ 338 $ 107 $ (668) $ 6,779
Gains on Sales of Assets 1,219 -- -- -- -- 1,219
Depreciation and Amortization- Real Estate Assets 5,378 165 48 43 (256) 5,378
-------- -------- -------- -------- -------- --------
Funds from Operations $ 13,376 $ 388 $ 386 $ 150 $ (924) $ 13,376
======== ======== ======== ======== ======== ========
(1) In 2001, the Company formed a joint venture known as Keystone New Jersey
Associates, LLC with CalEast Industrial Investors, LLC ("CalEast"). CalEast is a
real estate operating company whose members are LaSalle Investment Management,
Inc. (a division of ▇▇▇▇▇ ▇▇▇▇ LaSalle ("JLL")) and the California Public
Employees Retirement System ("CalPERS"). The Company owns 20% of this joint
venture.
(2) In 2000, the Company formed a joint venture with ▇▇▇▇▇▇▇▇ Investments, Inc
("▇▇▇▇▇▇▇▇"), known as 3 Points Associates to develop and construct an 800,000
square foot distribution facility in Indiana. In January 2001, the joint venture
signed a ten-year lease with tenant for the entire facility. In November 2001,
the Company acquired the remaining 50% interest in this property. In June 2001,
the Company formed a joint venture with ▇▇▇▇▇▇▇▇ known as 4 Points Associates,
to develop and construct a 796,000 square foot distribution facility in Indiana.
The Company owns 50% of this venture and the facility is currently under
construction.
(3) The Company accounts for its investment in 100% of the non-voting preferred
stock in Keystone Realty Services, Inc. ( the "Management Company"), which
represents 95% of the total equity, in accordance with the equity method of
accounting. The Company is entitled to receive 95% of the amounts paid as
dividends by the Management Company.
(4) Consists of elimination adjustments for presentation purposes.
Page 13 of 23
KEYSTONE PROPERTY TRUST
------------------------------------------------------------------------------------------------------------------------------------
SUMMARY OF LAND UNDER DEVELOPMENT AND CONTROL
% Ownership
Project Interest / Partner Market/Submarket Acres
------------------------------------------------- ------------------ -------------------------------- -----
PROJECTS UNDER CONSTRUCTION
Keystone Cranbury West Phase II 100% New Jersey / Exit 8A 31
Keystone Cranbury East Phase I 100% New Jersey / Exit 8A 37
21 Roadway Expansion 100% Pennsylvania / Harrisburg 10
Airtech Park (4 Points Associates) 50% / ▇▇▇▇▇▇▇▇ Indiana / Indianapolis Airport 43
Behr Expansion/ Westpark 500 Building 100% Pennsylvania/Allentown 4
----
SUBTOTAL - PROJECTS IN DEVELOPMENT 125
====
DEVELOPMENT PIPELINE (NEXT 36 MOS)
Northern New Jersey (1) 100% New Jersey / North 26
Keystone Cranbury East Phase II 100% New Jersey / Exit 8A 37
Central PA (1) 100% Pennsylvania / Harrisburg 115
Airtech Park (1) 50% / ▇▇▇▇▇▇▇▇ Indiana / Indianapolis Airport 90
Westpark Land 100% Pennsylvania / Allentown 15
Goldstar Site 100% New Jersey / Exit 8A 50
Station Road (1) 100% New Jersey / Exit 8A 50
66 Station Road 20% / CalEast New Jersey / Exit 8A 62
----
SUBTOTAL - PIPELINE 445
====
ADDITIONAL DEVELOPMENT POTENTIAL
▇▇▇▇▇▇ Road 100% New Jersey / Exit 8A 6
Northeast PA (1) 100% Pennsylvania / Northeast PA 61
Central PA (1) 100% Pennsylvania / Harrisburg 100
▇▇▇▇▇▇ Road and Other Expansions 100% Pennsylvania / Reading, other 15
Airtech Park (1) 50% / ▇▇▇▇▇▇▇▇ Indiana / Indianapolis Airport 235
----
SUBTOTAL - ADDITIONAL DEVELOPMENT POTENTIAL 417
====
TOTAL DEVELOPMENT POTENTIAL - PIPELINE ADDITIONAL 862
====
GRAND TOTAL 987
====
Estimated
Estimated Cost Construction Estimated
Estimated Project Incurred Start Date Stabilization
Project Buildable SF Cost To Date (Qtr/Year) Date (Qtr/Year)
------------------------------------------------- ------------- --------- -------- ------------- ---------------
PROJECTS UNDER CONSTRUCTION
Keystone Cranbury West Phase II 473,000 $ 23 $ 21 3/00 3/02
Keystone Cranbury East Phase I 510,000 24 19 3/00 4/02
21 Roadway Expansion 150,000 5 5 3/00 2/02
Airtech Park (4 Points Associates) 796,000 20 15 2/01 4/02
Behr Expansion/ Westpark 500 Building 70,000 2 1 3/01 1/02
----------- ----- ----
SUBTOTAL - PROJECTS IN DEVELOPMENT 1,999,000 $ 74 $ 61
----------- ----- ----
DEVELOPMENT PIPELINE (NEXT 36 MOS)
Northern New Jersey (1) 530,000 $ 33 $ - 3/02
Keystone Cranbury East Phase II 500,000 24 5 4/02
Central PA (1) 1,200,000 36 - 1/03
Airtech Park (1) 1,482,000 37 - 1/03
Westpark Land 266,000 9 2 3/03
Goldstar Site 788,000 36 7 3/03
Station Road (1) 655,000 29 - 1/▇▇
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ 667,000 31 4 3/04
----------- ----- ----
SUBTOTAL - PIPELINE 6,088,000 $ 235 $ 18
=========== ===== ====
ADDITIONAL DEVELOPMENT POTENTIAL
▇▇▇▇▇▇ Road 130,000
Northeast PA (1) 910,000
Central PA (1) 1,200,000
▇▇▇▇▇▇ Road and Other Expansions 221,000
Airtech Park (1) 3,518,000
-----------
SUBTOTAL - ADDITIONAL DEVELOPMENT POTENTIAL 5,979,000
===========
TOTAL DEVELOPMENT POTENTIAL - PIPELINE ADDITIONAL 12,067,000
===========
GRAND TOTAL 14,066,000
===========
(1) Under contract or option.
Page 14 of 23
KEYSTONE PROPERTY TRUST
------------------------------------------------------------------------------------------------------------------------------------
DEBT DETAIL (DOLLARS IN THOUSANDS, AS OF DECEMBER 31, 2001)
Fixed Rate Mortgages Variable Rate Debt
---------------------- ------------------------- Total
Year of Monthly Due on Construction Credit Scheduled Wtd Avg
Maturity Amortization Maturity Loans Facilities Payments Fixed Rate Maturities
------------------- ------------ -------- ------------ ---------- -------- ---------------------
2002 $ 4,290 $ 8,798 $ 11,932 $ -- $ 25,020 9.5%
2003 4,741 -- -- 6,466 11,207 0.0%
2004 5,042 39,722 -- 93,000 137,764 7.2%
2005 5,052 22,791 -- -- 27,843 8.1%
2006 4,892 22,018 -- -- 26,910 7.7%
2007 3,309 86,741 -- -- 90,050 7.9%
2008 3,369 90,545 -- -- 93,914 7.5%
2009 1,903 -- -- -- 1,903 0.0%
2010 696 16,129 -- -- 16,825 8.3%
2011 and thereafter 1,710 -- -- -- 1,710 0.0%
-------- -------- -------- -------- -------- -----
Total $ 35,004 $286,745 $ 11,932 $ 99,466 $433,147 7.8%
======== ======== ======== ======== ======== =====
Debt Premium, Net of
1,989
--------
TOTAL DEBT OUTSTANDING $435,136
========
Page 15 of 23
KEYSTONE PROPERTY TRUST
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PORTFOLIO ANALYSIS
December 31, September 30, June 30, March 31, December 31,
Portfolio Characteristics 2001 2001 2001 2001 2000
------------ ------------- ----------- ----------- ----------
Number of Properties-In Service 125 127 129 128 129
Number of Properties-Under Construction 3 4 4 3 4
---------- ---------- ---------- ---------- ----------
Total Number of Properties 128 131 133 131 133
========== ========== ========== ========== ==========
Rentable Square Feet -In Service 21,802,930 21,477,343 21,849,480 21,036,741 20,397,410
Rentable Square Feet-Under Construction 1,999,000 2,429,000 2,429,000 1,633,000 2,433,000
---------- ---------- ---------- ---------- ----------
Total Rentable Square Feet 23,801,930 23,906,343 24,278,480 22,669,741 22,830,410
========== ========== ========== ========== ==========
Occupied (Square Feet) 20,470,772 20,189,131 20,431,148 19,974,275 19,471,278
Vacant (Square Feet) 1,332,158 1,288,212 1,418,332 1,062,466 926,132
Number of Leases 262 286 283 280 301
Average Tenant Size per Occupied Square Foot-Industrial 136,292 146,241 149,513 154,442 152,433
Average Tenant Size per Occupied Square Foot-Office 12,408 12,687 12,779 12,519 12,664
Occupancy Rates -Based on In Service RSF 93.9% 94.0% 93.5% 95.0% 95.5%
NUMBER OF IN SERVICE PROPERTIES BY MARKET:
New Jersey 17 20 22 21 21
Pennsylvania 30 19 19 19 17
Indiana 6 6 6 6 5
---------- ---------- ---------- ---------- ----------
INDUSTRIAL CORE MARKET SUBTOTAL 53 45 47 46 43
========== ========== ========== ========== ==========
Ohio 11 11 11 11 11
New York 11 11 11 11 11
South Carolina 27 28 28 28 28
---------- ---------- ---------- ---------- ----------
INDUSTRIAL NON-CORE MARKET SUBTOTAL 49 50 50 50 50
========== ========== ========== ========== ==========
New Jersey 1 10 10 10 10
Pennsylvania 2 2 2 2 6
New York 20 20 20 20 20
---------- ---------- ---------- ---------- ----------
OFFICE NON-CORE MARKET SUBTOTAL 23 32 32 32 36
========== ========== ========== ========== ==========
Total In Service Properties 125 127 129 128 129
========== ========== ========== ========== ==========
Page 16 of 23
KEYSTONE PROPERTY TRUST
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PHYSICAL OCCUPANCY ANALYSIS
Physical Occupancy by Sub-Market: December 31, September 30, June 30, March 31, December 31,
2001 2001 2001 2001 2000
------------ ------------- -------- --------- ------------
INDUSTRIAL
Allentown, PA 92.6% -- -- -- --
Central and Northern NJ 99.3% 99.2% 100.0% 95.8% 100.0%
▇▇▇▇▇▇▇ County, PA 100.0% 100.0% 100.0% 100.0% 100.0%
Harrisburg/Chambersburg, PA 94.6% 95.5% 94.6% 98.4% 97.8%
Reading, PA 100.0% 100.0% 100.0% 100.0% 100.0%
Scranton/▇▇▇▇▇▇-▇▇▇▇▇, PA 100.0% 100.0% 100.0% 100.0% 100.0%
Indianapolis, IN 100.0% 100.0% 100.0% 100.0% 100.0%
------- ------- ------- ------- -------
Total Core Portfolio 97.5% 98.4% 98.3% 97.7% 99.6%
======= ======= ======= ======= =======
Central Ohio 100.0% 94.5% 96.2% 96.2% 92.3%
Albany, NY 100.0% 100.0% 100.0% 100.0% 100.0%
Rochester, NY 92.1% 98.0% 92.7% 92.7% 89.5%
Syracuse, NY 16.0% 16.0% 16.0% 100.0% 100.0%
Greenville/Spartanburg, SC 88.7% 88.3% 83.0% 79.1% 78.8%
------- ------- ------- ------- -------
Total Non-Core Industrial 84.9% 83.3% 81.1% 88.6% 87.2%
======= ======= ======= ======= =======
Total Industrial Portfolio 93.9% 93.8% 93.3% 94.8% 95.3%
======= ======= ======= ======= =======
OFFICE
Central and Northern NJ 100.0% 97.7% 98.9% 98.9% 98.7%
Albany, NY 96.3% 95.9% 96.0% 97.2% 98.1%
Rochester, NY 100.0% 100.0% 100.0% 100.0% 100.0%
Syracuse, NY 91.8% 96.2% 91.9% 95.6% 97.2%
Allentown, PA -- -- -- -- 91.9%
Harrisburg/Chambersburg, PA 100.0% 92.8% 71.2% 71.2% 89.5%
Reading, PA 83.5% 81.6% 81.6% 84.3% 89.5%
------- ------- ------- ------- -------
Total Office Portfolio 93.7% 96.1% 95.6% 96.0% 96.4%
======= ======= ======= ======= =======
Page 17 of 23
KEYSTONE PROPERTY TRUST
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PREFERRED EQUITY ANALYSIS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
December 31, September 30, June 30, March 31, December 31,
2001 2001 2001 2001 2000
------------ ------------ ------------- ------------- --------------
CONVERTIBLE PREFERRED STOCK
Series A
Shares Outstanding 800,000 800,000 800,000 800,000 800,000
Aggregate Liquidation Value $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
Liquidation Value Per Share $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00
Common Share Conversion Price $ 16.50 $ 16.50 $ 16.50 $ 16.50 $ 16.50
Yield 9.00% 9.00% 9.00% 9.00% 9.00%
Series B (1)
Shares Outstanding -- -- 803,871 803,871 803,871
Aggregate Liquidation Value $ -- $ -- $ 20,097 $ 20,097 $ 20,097
Liquidation Value Per Share $ -- $ -- $ 25.00 $ 25.00 $ 25.00
Common Share Conversion Price $ -- $ -- $ 16.00 $ 16.00 $ 16.00
Yield -- -- 9.75% 9.75% 9.75%
Series C
Shares Outstanding 800,000 800,000 800,000 800,000 800,000
Aggregate Liquidation Value $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
Liquidation Value Per Share $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00
Common Share Conversion Price $ 15.75 $ 15.75 $ 15.75 $ 15.75 $ 15.75
Yield 9.75% 9.75% 9.75% 9.75% 9.75%
CONVERTIBLE PREFERRED OPERATING PARTNERSHIP UNITS
Series B
Units Outstanding 300,000 300,000 300,000 300,000 300,000
Aggregate Liquidation Value $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500
Liquidation Value Per Share $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00
Common Share Conversion Price $ 16.50 $ 16.50 $ 16.50 $ 16.50 $ 16.50
Yield 9.50% 9.50% 9.50% 9.50% 9.50%
Series C (2)
Units Outstanding 1,664,965 1,664,965 2,461,094 2,461,094 2,461,094
Aggregate Liquidation Value $ 41,624 $ 41,624 $ 61,527 $ 61,527 $ 61,527
Liquidation Value Per Share $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00
Common Share Conversion Price $ 16.00 $ 16.00 $ 16.00 $ 16.00 $ 16.00
Yield 9.75% 9.75% 9.75% 9.75% 9.75%
Series D
Units Outstanding 450,700 450,700 450,700 450,700 450,700
Aggregate Liquidation Value $ 11,268 $ 11,268 $ 11,268 $ 11,268 $ 11,268
Liquidation Value Per Share $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00
Common Share Conversion Price $ 16.50 $ 16.50 $ 16.50 $ 16.50 $ 16.50
Yield 9.00% 9.00% 9.00% 9.00% 9.00%
Total Liquidation/Book Value of Preferred Stock $ 100,392 $ 100,392 $ 140,392 $ 140,392 $ 140,392
============ =========== ============= ============= ============
(1) These Convertible Preferred Shares were re-purchased by the company on
August 27, 2001 (2) 796,129 Convertible Preferred OP Units were re-purchased by
the company on August 27, 2001
Page 18 of 23
KEYSTONE PROPERTY TRUST
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EQUITY ANALYSIS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
December 31, September 30, June 30, March 31, December 31,
2001 2001 2001 2001 2000
----------- ------------- ----------- ----------- -----------
Total Outstanding in Common Share Equivalents:
Common Shares 18,397,625 18,396,540 15,521,540 9,346,669 9,321,296
Operating Partnership Units 6,356,885 6,356,885 6,731,885 7,667,649 7,675,649
Preferred Stock 2,481,962 2,481,962 3,738,010 3,738,010 3,738,010
Preferred Operating Partnership Units 3,738,932 3,738,932 4,982,884 4,982,884 4,982,884
----------- ----------- ----------- ----------- -----------
Total 30,975,404 30,974,319 30,974,319 25,735,212 25,717,839
Weighted Average outstanding:
Common Shares 18,396,587 16,570,452 13,640,254 9,342,775 9,322,657
Operating Partnership Units 6,356,885 6,634,059 6,913,164 7,668,627 7,675,649
Preferred Shares (at Common Share Equivalents) 2,481,962 3,260,166 3,738,010 3,738,010 3,738,010
Preferred Operating Partnership Units
(at Common Share Equivalents) 3,738,932 4,509,641 4,982,884 4,982,884 4,982,884
Common Stock Options 3,262 22,932 3,160 5,150 3,349
----------- ----------- ----------- ----------- -----------
Total 30,977,628 30,997,250 29,277,472 25,737,446 25,722,549
Common Share Price Range:
Quarterly High $ 13.35 $ 14.38 $ 13.18 $ 14.12 $ 13.06
Quarterly Low 11.40 10.68 11.43 12.75 12.31
Quarterly Average 12.59 13.17 12.21 13.36 12.71
End of Quarter 13.09 12.70 13.39 12.85 12.75
Common Stock Options Outstanding 1,342,187 1,342,187 1,322,187 592,050 612,383
Weighted Average Option Exercise Price $ 13.85 $ 13.85 $ 13.81 $ 15.05 $ 15.05
Capitalization:
Liquidation/Book Value of Preferred Stock & Units $ 100,392 $ 100,392 $ 140,392 $ 140,392 $ 140,392
Market Value of Common Equity 324,037 314,368 297,973 218,634 216,711
----------- ----------- ----------- ----------- -----------
Market Capitalization 424,429 414,760 438,365 359,026 357,103
Total Debt 435,136 441,405 454,069 499,781 616,569
----------- ----------- ----------- ----------- -----------
Total Market Capitalization $ 859,565 $ 856,165 $ 892,434 $ 858,807 $ 973,672
=========== =========== =========== =========== ===========
(Market Capitalization + Total Debt)
Page 19 of 23
KEYSTONE PROPERTY TRUST
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DEBT ANALYSIS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
December 31, September 30, June 30, March 31, December 31,
2001 2001 2001 2001 2000
------------ ------------- --------- --------- ----------
Debt Outstanding
Mortgage Loans $ 321,749 $ 354,668 $ 374,150 $ 378,482 $ 475,193
Construction Loans 11,932 11,793 11,614 12,870 13,594
Revolving Credit Facilities 99,466 72,747 65,771 105,731 124,928
Debt Premium, Net of Amortization 1,989 2,197 2,534 2,699 2,853
--------- --------- --------- --------- ----------
Total Debt Outstanding $ 435,136 $ 441,405 $ 454,069 $ 499,781 $ 616,569
========= ========= ========= ========= ==========
Interest Rate Structure
Fixed $ 321,749 $ 354,668 $ 374,150 $ 366,172 $ 460,395
Variable 111,398 84,540 77,385 130,910 153,321
--------- --------- --------- --------- ----------
Total $ 433,147 $ 439,207 $ 451,535 $ 497,082 $ 613,716
========= ========= ========= ========= ==========
% of Fixed Rate Loans 74.3% 80.8% 82.9% 73.7% 75.0%
% of Variable Rate Loans 25.7% 19.2% 17.1% 26.3% 25.0%
Average Interest Rates
Mortgage Loans 7.8% 7.8% 7.8% 7.8% 7.8%
Construction Loans 4.4% 5.8% 6.4% 7.7% 8.7%
Revolving Credit Facilities 3.6% 4.6% 5.5% 7.5% 9.1%
--------- --------- --------- --------- ----------
Total Weighted Average 6.7% 7.2% 7.4% 7.7% 8.0%
========= ========= ========= ========= ==========
Debt Ratios
Debt to Total Market Capitalization 50.6% 51.6% 50.9% 58.2% 63.3%
Debt to Undepreciated Assets 49.7% 49.6% 50.8% 56.8% 61.5%
Coverage Ratios
Interest Coverage-Property NOI 2.9x 2.9x 2.7x 2.2x 2.1x
(NOI / Interest)
Interest Coverage-EBITDA 2.8x 2.6x 2.4x 2.0x 2.0x
(EBITDA / Interest)
Interest Coverage-EBITDA-YTD 2.4x 2.3x 2.2x 2.0x 2.0x
(EBITDA / Interest - Year-to-date)
Debt Service Coverage -Property NOI 2.4x 2.5x 2.3x 2.0x 1.9x
(NOI / (Interest + Principal Amortization))
Debt Service Coverage - EBITDA 2.4x 2.3x 2.1x 1.8x 1.8x
(EBITDA / (Interest + Principal Amortization))
Fixed Charge Coverage -Property NOI 2.2x 2.1x 1.9x 1.7x 1.7x
(NOI / (Interest + Preferred Distributions))
Fixed Charge Coverage - EBITDA 2.1x 1.9x 1.7x 1.5x 1.5x
(EBITDA / (Interest + Preferred Distributions))
Page 20 of 23
KEYSTONE PROPERTY TRUST
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QUARTERLY VALUATION ANALYSIS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA AND RATIOS)
December 31, September 30, June 30, March 31, December 31,
2001 2001 2001 2001 2000
----------- ------------- -------- --------- ------------
PRICING MULTIPLES
NOI Multiple
((Market Value of Common Equity + Preferred
Share/Units + Total Debt)/▇▇▇. NOI) 11.2x 10.5x 10.9x 9.4x 9.8x
EBITDA Multiple
((Market Value of Common Equity + Preferred
Share/Units + Total Debt)/▇▇▇. EBITDA) 12.1x 11.8x 12.2x 10.3x 10.5x
FFO Multiple
(Quarter End Common Share Price / ▇▇▇. FFO - per share) 7.6x 7.2x 7.8x 7.1x 6.6x
FAD Multiple
(Quarter End Common Share Price / ▇▇▇. FAD - per share) 9.4x 8.1x 8.6x 8.9x 8.0x
NOI Yield
(▇▇▇. NOI before Interest and Depreciation Expense /
(Market Value of Common Equity + Preferred Share/Units Debt)) 9.0% 9.5% 9.1% 10.7% 10.2%
▇▇▇▇▇▇ ▇▇▇▇▇
(▇▇▇. EBITDA / (Market Value of Common Equity + Preferred
Share/Units + Debt)) 8.3% 8.5% 8.2% 9.7% 9.6%
FFO Yield
(▇▇▇. FFO - per share / Quarter End Common Share Price) 13.1% 13.9% 12.8% 14.0% 15.1%
▇▇▇ ▇▇▇▇▇
(▇▇▇. FAD - per share / Quarter End Common Share Price) 10.7% 12.3% 11.7% 11.2% 12.5%
RETURNS
Yield on Real Estate Owned - NOI
(▇▇▇. NOI before Interest and Depreciation Expense / Average Gross
Operating Real Estate Investments) 9.4% 10.1% 9.9% 10.3% 10.3%
Yield on Real Estate Owned - EBITDA
(▇▇▇. EBITDA / Average Gross Operating Real Estate Investments) 8.7% 9.0% 8.8% 9.3% 9.7%
Return on Book Value of Average Equity & Minority Interest
(▇▇▇. EBITDA / Avg. Equity & Minority Interest) 19.0% 19.7% 21.2% 25.9% 28.7%
FFO Return on Book Value of Average Equity & Minority Interest
(▇▇▇. FFO / Avg. Equity & Minority Interest) 14.3% 14.4% 14.4% 14.3% 15.1%
Page 21 of 23
KEYSTONE PROPERTY TRUST
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DIVIDEND ANALYSIS
December 31, September 30, June 30, March 31, December 31,
2001 2001 2001 2001 2000
------------ ------------- -------- --------- ------------
COMMON STOCK DIVIDENDS:
Dividends per Share/Unit $ 0.32 $ 0.32 $ 0.31 $ 0.31 $ 0.31
Declaration Date 10/5/2001 7/5/2001 4/12/2001 1/8/2001 10/3/2000
Common Shareholders' Record Date 10/16/2001 7/16/2001 4/20/2001 1/18/2001 10/16/2000
Common Dividends Payment Date 10/31/2001 7/31/2001 4/30/2001 1/31/2001 10/30/2000
COMMON DIVIDEND PAYOUT RATIOS:
Payout - FFO
(Dividends/FFO) 74.4% 72.7% 72.1% 68.9% 64.6%
Payout - FAD
(Dividends/FAD) 91.4% 82.1% 79.5% 86.1% 77.5%
Dividend Coverage - FFO
(FFO/Dividends) 1.3x 1.4x 1.4x 1.5x 1.5x
Dividend Coverage - FAD
(FAD/Dividends) 1.1x 1.2x 1.3x 1.2x 1.3x
COMMON DIVIDEND YIELDS:
Dividend Yield (Yield based on annualized current dividend per share) 9.8% 10.1% 9.3% 9.6% 9.7%
Spread Over 5 Year U.S. Treasury at quarter end 4.2% 5.7% 4.6% 5.1% 4.7%
Spread Over 10 Year U.S. Treasury at quarter end 5.0% 4.9% 4.1% 4.7% 4.6%
Page 22 of 23
KEYSTONE PROPERTY TRUST
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RESEARCH COVERAGE, ANTICIPATED 2002 EARNINGS RELEASE AND DIVIDEND CALENDAR
RESEARCH COVERAGE
Firm Analyst Phone
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ANTICIPATED 2002 EARNINGS RELEASE AND DIVIDEND CALENDAR
FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER
------------- -------------- ------------- --------------
Dividend Declaration Date First week in April First week in July First week in October First week in Jan 2003
Dividend Record Date 4/17/2002 7/17/2002 10/16/02 1/17/2003
Dividend Payment Date 4/30/2002 7/31/2002 10/31/02 1/31/2003
Anticipated Earnings
Release/Earnings Call 4/30/2002 7/30/2002 10/29/02 2/4/2003
Annual Shareholders Meeting 6/6/2002
Page 23 of 23
