þ
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2010. | ||
or
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
California
|
95-4300881 | |
(State or other jurisdiction
of
incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of Each Class | Name of Each Exchange on Which Registered | |||
Common Stock, $0.01 par value per share | New York Stock Exchange | |||
Depositary Shares Each Representing 1/1,000 of
a Share of 7.000% Cumulative Preferred Stock, Series H, $0.01 par value per share |
New York Stock Exchange | |||
Depositary Shares Each Representing 1/1,000 of
a Share of 6.875% Cumulative Preferred Stock, Series I, $0.01 par value per share |
New York Stock Exchange | |||
Depositary Shares Each Representing 1/1,000 of
a Share of 7.200% Cumulative Preferred Stock, Series M, $0.01 par value per share |
New York Stock Exchange | |||
Depositary Shares Each Representing 1/1,000 of
a Share of 7.375% Cumulative Preferred Stock, Series O, $0.01 par value per share |
New York Stock Exchange | |||
Depositary Shares Each Representing 1/1,000 of
a Share of 6.700% Cumulative Preferred Stock, Series P, $0.01 par value per share |
New York Stock Exchange | |||
Depositary Shares Each Representing 1/1,000 of
a Share of 6.875% Cumulative Preferred Stock, Series R, $0.01 par value per share |
New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
ITEM 1. | BUSINESS |
Square
|
Occupancy at
|
|||||||||||||||||||
Property
|
Date Acquired | Location | Purchase Price | Feet | December 31, 2010 | |||||||||||||||
Westpark Business Campus
|
December, 2010 | Tysons Corner, Virginia | $ | 140,000 | 735 | 61.9 | % | |||||||||||||
Tysons Corporate Center
|
July, 2010 | Tysons Corner, Virginia | $ | 35,400 | 270 | 48.0 | % | |||||||||||||
Parklawn Business Park
|
June, 2010 | Rockville, Maryland | $ | 23,430 | 232 | 81.2 | % | |||||||||||||
Austin Flex Portfolio
|
April, 2010 | Austin, Texas | $ | 42,900 | 704 | 88.0 | % | |||||||||||||
Shady Grove Executive Center
|
March, 2010 | Rockville, Maryland | $ | 60,000 | 350 | 76.2 | % |
2
3
4
5
6
7
8
ITEM 1A. | RISK FACTORS |
9
10
| the national, state and local economic climate and real estate conditions, such as oversupply of or reduced demand for space and changes in market rental rates; | |
| how prospective tenants perceive the attractiveness, convenience and safety of our properties; | |
| difficulties in consummating and financing acquisitions and developments on advantageous terms and the failure of acquisitions and developments to perform as expected; | |
| our ability to provide adequate management, maintenance and insurance; | |
| our ability to collect rent from tenants on a timely basis; | |
| the expense of periodically renovating, repairing and reletting spaces; | |
| environmental issues; | |
| compliance with the Americans with Disabilities Act and other federal, state, and local laws and regulations; | |
| increasing operating costs, including real estate taxes, insurance and utilities, if these increased costs cannot be passed through to tenants; | |
| changes in tax, real estate and zoning laws; | |
| increase in new commercial properties in our market; | |
| tenant defaults and bankruptcies; | |
| tenants right to sublease space; and | |
| concentration of properties leased to non-rated private companies. |
11
12
13
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
14
16
ITEM 2.
PROPERTIES
Number of
Weighted
Business
Rentable Square Footage
Average
Parks
Flex
Industrial
Office
Total
Occupancy Rate
1
78
78
97.0
%
1
310
310
79.6
%
2
291
291
91.4
%
4
679
679
86.7
%
1
407
407
99.5
%
1
12
12
96.5
%
2
367
367
86.4
%
3
457
457
92.1
%
1
52
52
91.6
%
2
429
429
80.3
%
2
94
94
90.8
%
12
980
407
431
1,818
89.7
%
1
317
317
99.2
%
1
77
77
94.1
%
2
395
31
426
96.6
%
1
149
149
87.6
%
1
160
160
91.7
%
2
614
614
93.0
%
1
297
297
93.3
%
1
199
199
88.5
%
1
108
108
87.4
%
3
768
768
94.2
%
1
437
437
83.6
%
1
267
267
93.3
%
1
22
22
97.9
%
1
147
147
91.8
%
18
2,540
712
736
3,988
92.5
%
1
309
309
82.1
%
1
29
29
91.0
%
3
295
1,187
1,482
88.1
%
1
366
166
532
93.5
%
6
970
1,382
2,352
88.6
%
2
1,024
188
1,212
82.8
%
1
102
102
93.7
%
3
1,126
188
1,314
83.7
%
15
Number of
Weighted
Business
Rentable Square Footage
Average
Parks
Flex
Industrial
Office
Total
Occupancy Rate
2
237
237
84.5
%
1
112
112
75.3
%
1
36
36
84.2
%
2
715
231
946
95.9
%
1
57
57
92.9
%
1
184
184
90.8
%
1
117
117
92.8
%
9
1,458
231
1,689
91.8
%
9
1,491
1,491
88.0
%
1
177
177
81.1
%
1
66
66
79.5
%
11
1,734
1,734
86.9
%
1
135
135
87.8
%
1
631
2,631
12
3,274
95.9
%
1
262
262
88.8
%
3
1,028
2,631
12
3,671
95.1
%
2
155
54
209
95.4
%
4
563
38
601
79.8
%
1
292
292
96.7
%
1
244
244
88.3
%
1
246
246
99.6
%
1
735
735
61.9
%
1
303
355
658
95.3
%
2
270
90
360
98.7
%
2
296
296
98.4
%
1
270
270
48.3
%
1
114
114
92.5
%
17
1,947
2,078
4,025
90.8
%
1
465
28
493
90.3
%
1
28
28
92.5
%
2
493
28
521
90.4
%
85
12,955
3,981
4,855
21,791
90.8
%
(1)
Five commercial properties, one in San Diego, California,
one in Silver Spring, Maryland, one in Boca Raton, Florida, and
two in Wellington, Florida, serve as collateral to mortgage
notes payable. Subsequent to December 31, 2010, the Company
repaid one of the two mortgage notes payable in full for the
property located in Wellington, Florida. For more information,
see Note 6 to the consolidated financial statements.
(2)
The Company owns two properties that are subject to ground
leases in Las Colinas, Texas, expiring in 2019 and 2020, each
with one 10 year extension option.
For The Year Ended December 31, 2010
For The Year Ended December 31, 2009
For The Year Ended December 31, 2008
Flex
Office
Industrial
Total
Flex
Office
Industrial
Total
Flex
Office
Industrial
Total
$
38,881
$
14,234
$
5,323
$
58,438
$
41,566
$
14,767
$
5,554
$
61,887
$
43,894
$
15,619
$
5,804
$
65,317
10,720
6,327
2,773
19,820
11,103
6,733
2,859
20,695
13,859
7,190
2,890
23,939
14,640
14,640
9,899
9,899
10,228
10,228
15,399
1,265
16,664
15,331
1,245
16,576
15,686
1,278
16,964
10,228
216
20,076
30,520
11,292
212
19,912
31,416
12,336
214
20,005
32,555
33,464
25,665
59,129
34,265
24,575
58,840
34,508
24,684
59,192
17,218
29,762
46,980
16,670
22,442
39,112
16,288
21,689
37,977
15,094
3,049
18,143
14,269
2,941
17,210
14,985
3,481
18,466
5,793
5,793
6,393
6,393
7,006
7,006
7,738
552
8,290
8,291
638
8,929
8,850
621
9,471
169,175
79,805
29,437
278,417
169,079
72,308
29,570
270,957
177,640
73,498
29,977
281,115
10,942
5,641
1,079
17,662
10,872
5,647
1,097
17,616
10,951
5,873
1,042
17,866
3,790
2,374
666
6,830
3,771
2,336
681
6,788
3,816
2,322
724
6,862
6,054
6,054
4,124
4,124
4,235
4,235
5,385
335
5,720
5,441
336
5,777
5,712
299
6,011
3,752
134
6,041
9,927
3,985
130
5,952
10,067
4,118
104
6,094
10,316
8,381
8,665
17,046
8,890
8,635
17,525
8,692
8,558
17,250
5,160
10,036
15,196
4,820
7,293
12,113
4,680
7,312
11,992
5,326
1,393
6,719
5,403
1,352
6,755
5,610
1,409
7,019
2,749
2,749
2,735
2,735
3,013
3,013
2,438
193
2,631
2,205
207
2,412
2,410
208
2,618
53,977
28,436
8,121
90,534
52,246
25,600
8,066
85,912
53,237
25,786
8,159
87,182
27,939
8,593
4,244
40,776
30,694
9,120
4,457
44,271
32,943
9,746
4,762
47,451
6,930
3,953
2,107
12,990
7,332
4,397
2,178
13,907
10,043
4,868
2,166
17,077
8,586
8,586
5,775
5,775
5,993
5,993
10,014
930
10,944
9,890
909
10,799
9,974
979
10,953
6,476
82
14,035
20,593
7,307
82
13,960
21,349
8,218
110
13,911
22,239
25,083
17,000
42,083
25,375
15,940
41,315
25,816
16,126
41,942
12,058
19,726
31,784
11,850
15,149
26,999
11,608
14,377
25,985
9,768
1,656
11,424
8,866
1,589
10,455
9,375
2,072
11,447
3,044
3,044
3,658
3,658
3,993
3,993
5,300
359
5,659
6,086
431
6,517
6,440
413
6,853
$
115,198
$
51,369
$
21,316
$
187,883
$
116,833
$
46,708
$
21,504
$
185,045
$
124,403
$
47,712
$
21,818
$
193,933
17
For The Years Ended December 31,
2010
2009
2008
$
187,883
$
185,045
$
193,933
672
698
728
333
536
1,457
(78,868
)
(84,504
)
(99,317
)
(9,651
)
(6,202
)
(8,099
)
(3,534
)
(3,552
)
(3,952
)
$
96,835
$
92,021
$
84,750
2010
2009
2008
2007
2006
90.8
%
90.5
%
93.5
%
93.4
%
93.4
%
$
14.96
$
15.45
$
15.50
$
14.97
$
14.36
Percent of
Rentable Square
Annualized Rental
Annualized Rental
Footage Subject to
Income Under
Income Represented
Expiring Leases
Expiring Leases
by Expiring Leases
4,292
$
62,288
20.5
%
4,887
74,195
24.4
%
4,235
64,217
21.1
%
2,420
36,170
11.9
%
1,504
23,487
7.7
%
1,295
23,684
7.8
%
191
4,825
1.5
%
316
7,286
2.4
%
79
2,109
0.7
%
183
4,536
1.5
%
42
1,405
0.5
%
19,444
$
304,202
100.0
%
18
Percent of
Annualized
Rentable Square
Annualized Rental
Rental Income
Footage Subject to
Income Under
Represented by
Expiring Leases
Expiring Leases
Expiring Leases
2,440
$
36,683
12.1
%
2,257
35,834
11.8
%
1,255
22,015
7.2
%
652
12,306
4.0
%
465
8,559
2.8
%
177
3,893
1.3
%
55
1,325
0.4
%
7
213
0.1
%
17
393
0.1
%
4
58
0.0
%
12
307
0.1
%
7,341
$
121,586
39.9
%
Percent of
Annualized
Rentable Square
Annualized Rental
Rental Income
Footage Subject to
Income Under
Represented by
Expiring Leases
Expiring Leases
Expiring Leases
1,852
$
25,605
8.4
%
2,630
38,361
12.6
%
2,980
42,202
13.9
%
1,768
23,864
7.9
%
1,039
14,928
4.9
%
1,118
19,791
6.5
%
136
3,500
1.1
%
309
7,073
2.3
%
62
1,716
0.6
%
179
4,478
1.5
%
30
1,098
0.4
%
12,103
$
182,616
60.1
%
19
2010
2009
2008
2007
2006
95.9
%
95.4
%
96.9
%
98.2
%
96.4
%
$
8.38
$
8.69
$
8.76
$
8.24
$
7.88
Percent of
Rentable Square
Annualized Rental
Annualized Rental
Number of
Footage Subject to
Income Under
Income Represented
Leases Expiring
Expiring Leases
Expiring Leases
by Expiring Leases
72
579
$
5,078
18.8
%
95
776
7,017
26.0
%
83
862
7,262
26.9
%
47
415
3,468
12.8
%
14
189
1,656
6.1
%
10
237
1,829
6.8
%
2
92
708
2.6
%
323
3,150
$
27,018
100.0
%
Rate of
Life in
Accumulated
Tax Basis
Depreciation
Method
Years
Depreciation
$
45,732
1.7
%
MACRS, 150
%
15
$
24,243
24,582
0.0
%
VARIOUS
5
24,439
92,509
2.1
%
MACRS, SL
VAR
14,889
$
162,823
$
63,571
ITEM 3.
LEGAL
PROCEEDINGS
ITEM 4.
(Removed
and Reserved)
20
23
69
72
75
76
77
78
79
ITEM 5.
MARKET
FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES
Range
High
Low
$
46.37
$
28.29
$
49.24
$
35.57
$
56.44
$
42.36
$
53.56
$
46.03
$
55.26
$
44.34
$
61.88
$
50.69
$
61.15
$
52.14
$
61.54
$
51.31
21
ITEM 6.
SELECTED
FINANCIAL DATA
For the Years Ended December 31,
2010
2009
2008
2007
2006
(In thousands, except per share data)
$
278,417
$
270,957
$
281,115
$
268,574
$
240,013
672
698
728
724
625
279,089
271,655
281,843
269,298
240,638
90,534
85,912
87,182
83,245
73,652
78,868
84,504
99,317
97,998
85,735
9,651
6,202
8,099
7,917
7,046
179,053
176,618
194,598
189,160
166,433
333
536
1,457
5,104
6,874
(3,534
)
(3,552
)
(3,952
)
(4,130
)
(2,575
)
(3,201
)
(3,016
)
(2,495
)
974
4,299
96,835
92,021
84,750
81,112
78,504
34
830
597
563
576
5,153
1,488
2,328
5,187
2,318
597
563
2,904
$
102,022
$
94,339
$
85,347
$
81,675
$
81,408
$
11,594
$
19,730
$
8,296
$
6,155
$
5,673
5,103
(2,569
)
7,007
6,854
11,155
16,697
17,161
15,303
13,009
16,828
38,959
59,413
23,179
17,537
16,513
46,214
17,440
46,630
50,937
47,933
152
325
235
192
134
85,325
77,178
70,044
68,666
64,580
$
102,022
$
94,339
$
85,347
$
81,675
$
81,408
22
For The Years Ended December 31,
2010
2009
2008
2007
2006
(In thousands, except per share data)
$
1.76
$
1.76
$
1.76
$
1.61
$
1.16
$
1.59
$
2.70
$
1.13
$
0.82
$
0.77
$
1.58
$
2.68
$
1.12
$
0.81
$
0.77
24,546
21,998
20,443
21,313
21,335
24,687
22,128
20,618
21,573
21,584
$
1,621,057
$
1,564,822
$
1,469,323
$
1,516,583
$
1,463,599
$
144,511
$
52,887
$
59,308
$
60,725
$
67,048
$
$
$
$
$
50,000
$
598,546
$
626,046
$
706,250
$
716,250
$
572,500
$
594,982
$
589,633
$
414,564
$
439,330
$
482,703
$
53,418
$
73,418
$
94,750
$
94,750
$
82,750
$
176,179
$
176,540
$
148,023
$
154,470
$
165,469
$
177,941
$
179,625
$
189,337
$
184,094
$
166,134
$
(327,448
)
$
(26,956
)
$
(35,192
)
$
(180,188
)
$
(169,986
)
$
(53,656
)
$
545
$
(134,171
)
$
(35,882
)
$
(129,694
)
$
124,420
$
163,074
$
131,558
$
122,405
$
106,235
21,791
19,556
19,556
19,556
18,687
(1)
Funds from operations (FFO) is computed in
accordance with the White Paper on FFO approved by the Board of
Governors of NAREIT. The White Paper defines FFO as net income,
computed in accordance with GAAP, before depreciation,
amortization, gains or losses on asset dispositions, net income
allocable to noncontrolling interests common units,
net income allocable to restricted stock unit holders and
nonrecurring items. FFO should be analyzed in conjunction with
net income. However, FFO should not be viewed as a substitute
for net income as a measure of operating performance or
liquidity as it does not reflect depreciation and amortization
costs or the level of capital expenditure and leasing costs
necessary to maintain the operating performance of the
Companys properties, which are significant economic costs
and could materially impact the Companys results of
operations. Other REITs may use different methods for
calculating FFO and, accordingly, the Companys FFO may not
be comparable to that of other real estate companies. See
Item 7, Managements Discussion and Analysis of
Financial Condition and Results of Operations
Liquidity and Capital Resources Funds from
Operations, for a reconciliation of FFO and net income
allocable to common shareholders and for information on why the
Company presents FFO.
ITEM 7.
MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
24
25
For the Years Ended December 31,
2010
2009
2008
$
1,464
$
988
$
602
0.5
%
0.4
%
0.2
%
566
824
549
$
2,779
$
2,653
$
26
27
28
Square
Occupancy at
Date Acquired
Location
Purchase Price
Feet
December 31, 2010
December, 2010
Tysons Corner, Virginia
$
140,000
735
61.9
%
July, 2010
Tysons Corner, Virginia
$
35,400
270
48.0
%
June, 2010
Rockville, Maryland
$
23,430
232
81.2
%
April, 2010
Austin, Texas
$
42,900
704
88.0
%
March, 2010
Rockville, Maryland
$
60,000
350
76.2
%
29
Weighted
Square
Percent of
Rental
Percent of
Cost of
Percent of
Percent of
Footage
Total
Income
Total
Operations
Total
NOI
Total
3,986
19.5
%
$
58,438
21.0
%
$
17,662
19.5
%
$
40,776
21.7
%
1,818
8.9
%
19,820
7.1
%
6,830
7.5
%
12,990
6.9
%
1,522
7.4
%
14,640
5.3
%
6,054
6.7
%
8,586
4.6
%
1,690
8.2
%
16,664
6.0
%
5,720
6.3
%
10,944
5.8
%
3,632
17.7
%
30,520
10.9
%
9,927
11.0
%
20,593
11.0
%
3,168
15.5
%
59,129
21.2
%
17,046
18.8
%
42,083
22.4
%
2,173
10.6
%
46,980
16.9
%
15,196
16.8
%
31,784
16.9
%
1,314
6.4
%
18,143
6.5
%
6,719
7.4
%
11,424
6.1
%
679
3.3
%
5,793
2.1
%
2,749
3.1
%
3,044
1.6
%
521
2.5
%
8,290
3.0
%
2,631
2.9
%
5,659
3.0
%
20,503
100.0
%
$
278,417
100.0
%
$
90,534
100.0
%
$
187,883
100.0
%
Reconciliation of NOI to income
$
187,883
672
333
(3,534
)
(78,868
)
(9,651
)
$
96,835
30
Percent of
Annualized
Rental Income
15.5
%
11.2
%
11.0
%
10.7
%
7.3
%
6.8
%
6.0
%
5.9
%
4.9
%
3.7
%
3.3
%
3.0
%
2.6
%
8.1
%
100.0
%
Percent of
Annualized
Annualized
Square Footage
Rental Income (1)
Rental Income
769
$
19,209
6.7
%
176
4,773
1.7
%
200
4,030
1.4
%
149
2,112
0.7
%
101
1,766
0.6
%
102
1,733
0.6
%
59
1,721
0.6
%
103
1,598
0.6
%
80
1,578
0.5
%
46
1,494
0.5
%
1,785
$
40,014
13.9
%
(1)
For leases expiring prior to December 31, 2011, annualized
rental income represents income to be received under existing
leases from December 31, 2010 through the date of
expiration.
31
For The Years Ended December 31,
2010
2009
Change
$
262,963
$
270,957
(3.0
)%
15,454
100.0
%
278,417
270,957
2.8
%
84,762
85,912
(1.3
)%
5,772
100.0
%
90,534
85,912
5.4
%
178,201
185,045
(3.7
)%
9,682
100.0
%
187,883
185,045
1.5
%
672
698
(3.7
)%
333
536
(37.9
)%
(3,534
)
(3,552
)
(0.5
)%
(78,868
)
(84,504
)
(6.7
)%
(9,651
)
(6,202
)
55.6
%
$
96,835
$
92,021
5.2
%
67.8
%
68.3
%
(0.7
)%
91.5
%
90.4
%
1.2
%
$
14.79
$
15.43
(4.1
%)
(1)
See above for a definition of Same Park.
(2)
See above for a definition of Non-Same Park.
(3)
Net operating income (NOI) is an important
measurement in the commercial real estate industry for
determining the value of the real estate generating the NOI. See
Concentration of Portfolio by Region above for more
information on NOI. The Companys calculation of NOI may
not be comparable to those of other companies and should not be
used as an alternative to measures of performance in accordance
with GAAP.
(4)
Same Park gross margin is computed by dividing Same Park NOI by
Same Park rental income.
(5)
Same Park realized rent per square foot represents the Same Park
rental income earned per occupied square foot.
32
Cost of
Cost of
Rental Income
Rental Income
Operations
Operations
NOI
NOI
December 31,
December 31,
Increase
December 31,
December 31,
Increase
December 31,
December 31,
Increase
2010
2009
(Decrease)
2010
2009
(Decrease)
2010
2009
(Decrease)
$
58,438
$
61,887
(5.6
%)
$
17,662
$
17,616
0.3
%
$
40,776
$
44,271
(7.9
%)
19,820
20,695
(4.2
%)
6,830
6,788
0.6
%
12,990
13,907
(6.6
%)
9,643
9,899
(2.6
%)
4,172
4,124
1.2
%
5,471
5,775
(5.3
%)
16,664
16,576
0.5
%
5,720
5,777
(1.0
%)
10,944
10,799
1.3
%
30,397
31,416
(3.2
%)
9,864
10,067
(2.0
%)
20,533
21,349
(3.8
%)
56,932
58,840
(3.2
%)
16,079
17,525
(8.3
%)
40,853
41,315
(1.1
%)
38,843
39,112
(0.7
%)
12,336
12,113
1.8
%
26,507
26,999
(1.8
%)
18,143
17,210
5.4
%
6,719
6,755
(0.5
%)
11,424
10,455
9.3
%
5,793
6,393
(9.4
%)
2,749
2,735
0.5
%
3,044
3,658
(16.8
%)
8,290
8,929
(7.2
%)
2,631
2,412
9.1
%
5,659
6,517
(13.2
%)
262,963
270,957
(3.0
%)
84,762
85,912
(1.3
%)
178,201
185,045
(3.7
%)
15,454
100.0
%
5,772
100.0
%
9,682
100.0
%
$
278,417
$
270,957
2.8
%
$
90,534
$
85,912
5.4
%
$
187,883
$
185,045
1.5
%
Reconciliation of NOI to income
$
187,883
$
185,045
1.5
%
672
698
(3.7
%)
333
536
(37.9
%)
(3,534
)
(3,552
)
(0.5
%)
(78,868
)
(84,504
)
(6.7
%)
(9,651
)
(6,202
)
55.6
%
$
96,835
$
92,021
5.2
%
33
34
For the Years Ended December 31,
2009
2008
Change
$
270,957
$
281,115
(3.6
%)
85,912
87,182
(1.5
%)
185,045
193,933
(4.6
%)
698
728
(4.1
%)
536
1,457
(63.2
%)
(3,552
)
(3,952
)
(10.1
%)
(84,504
)
(99,317
)
(14.9
%)
(6,202
)
(8,099
)
(23.4
%)
$
92,021
$
84,750
8.6
%
68.3
%
69.0
%
(1.0
%)
90.4
%
93.4
%
(3.2
%)
$
15.43
$
15.49
(0.4
%)
(1)
See above for a definition of Same Park.
(2)
Net operating income (NOI) is an important
measurement in the commercial real estate industry for
determining the value of the real estate generating the NOI. See
Concentration of Portfolio by Region above for more
information on NOI. The Companys calculation of NOI may
not be comparable to those of other companies and should not be
used as an alternative to measures of performance in accordance
with GAAP.
(3)
Same Park gross margin is computed by dividing Same Park NOI by
Same Park rental income.
(4)
Same Park realized rent per square foot represents the Same Park
rental income earned per occupied square foot.
35
Cost of
Cost of
Rental Income
Rental Income
Operations
Operations
NOI
NOI
December 31,
December 31,
Increase
December 31,
December 31,
Increase
December 31,
December 31,
Increase
2009
2008
(Decrease)
2009
2008
(Decrease)
2009
2008
(Decrease)
$
61,887
$
65,317
(5.3
%)
$
17,616
$
17,866
(1.4
%)
$
44,271
$
47,451
(6.7
%)
20,695
23,939
(13.6
%)
6,788
6,862
(1.1
%)
13,907
17,077
(18.6
%)
9,899
10,228
(3.2
%)
4,124
4,235
(2.6
%)
5,775
5,993
(3.6
%)
16,576
16,964
(2.3
%)
5,777
6,011
(3.9
%)
10,799
10,953
(1.4
%)
31,416
32,555
(3.5
%)
10,067
10,316
(2.4
%)
21,349
22,239
(4.0
%)
58,840
59,192
(0.6
%)
17,525
17,250
1.6
%
41,315
41,942
(1.5
%)
39,112
37,977
3.0
%
12,113
11,992
1.0
%
26,999
25,985
3.9
%
17,210
18,466
(6.8
%)
6,755
7,019
(3.8
%)
10,455
11,447
(8.7
%)
6,393
7,006
(8.7
%)
2,735
3,013
(9.2
%)
3,658
3,993
(8.4
%)
8,929
9,471
(5.7
%)
2,412
2,618
(7.9
%)
6,517
6,853
(4.9
%)
$
270,957
$
281,115
(3.6
%)
$
85,912
$
87,182
(1.5
%)
$
185,045
$
193,933
(4.6
%)
Reconciliation of NOI to income
$
185,045
$
193,933
(4.6
%)
698
728
(4.1
%)
536
1,457
(63.2
%)
(3,552
)
(3,952
)
(10.1
%)
(84,504
)
(99,317
)
(14.9
%)
(6,202
)
(8,099
)
(23.4
%)
$
92,021
$
84,750
8.6
%
36
37
38
For The Years Ended December 31,
2010
2009
2008
2007
2006
$
38,959
$
59,413
$
23,179
$
17,537
$
16,513
(5,153
)
(1,488
)
(2,328
)
78,868
85,094
99,848
98,521
86,243
11,594
19,730
8,296
6,155
5,673
152
325
235
192
134
124,420
163,074
131,558
122,405
106,235
(28,450
)
(40,472
)
(34,443
)
(31,094
)
(26,974
)
(374
)
(726
)
(730
)
(598
)
(486
)
$
95,596
$
121,876
$
96,385
$
90,713
$
78,775
(1)
Includes depreciation from discontinued operations.
For The Years Ended December 31,
2010
2009
2008
$
29,494
$
28,345
$
33,262
10,884
1,168
1,930
$
40,378
$
29,513
$
35,192
39
40
Payments Due by Period
Total
Less than 1 year
1 - 3 years
3 - 5 years
More than 5 years
$
71,455
$
6,776
$
37,314
$
2,875
$
24,490
93,000
93,000
$
164,455
$
6,776
$
130,314
$
2,875
$
24,490
41
ITEM 7A.
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 8.
FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA
ITEM 9.
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
ITEM 9A.
CONTROLS
AND PROCEDURES
42
43
PS Business Parks, Inc.
44
ITEM 9B.
OTHER
INFORMATION
ITEM 10.
DIRECTORS,
EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
45
ITEM 11.
EXECUTIVE
COMPENSATION
46
ITEM 12.
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS
(a)
(b)
(c)
Number of Securities
Weighted
Number of Securities
to be Issued Upon
Average
Remaining Available for
Exercise of
Exercise Price of
Future Issuance under
Outstanding
Outstanding
Equity Compensation
Options,
Options,
Plans (Excluding
Warrants, and
Warrants, and
Securities Reflected in
Rights
Rights
Column (a))
663,490
$
49.55
882,162
$
663,490
*
$
49.55
*
882,162
*
*
Amounts include restricted stock units
ITEM 13.
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
ITEM 14.
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
ITEM 15.
EXHIBITS AND
FINANCIAL STATEMENT SCHEDULES
47
Page
49
50
51
52
53
55
71
48
49
50
For The Years Ended December 31,
2010
2009
2008
(In thousands, except per share data)
$
278,417
$
270,957
$
281,115
672
698
728
279,089
271,655
281,843
90,534
85,912
87,182
78,868
84,504
99,317
9,651
6,202
8,099
179,053
176,618
194,598
333
536
1,457
(3,534
)
(3,552
)
(3,952
)
(3,201
)
(3,016
)
(2,495
)
96,835
92,021
84,750
34
830
597
5,153
1,488
5,187
2,318
597
$
102,022
$
94,339
$
85,347
$
11,594
$
19,730
$
8,296
5,103
(2,569
)
7,007
16,697
17,161
15,303
38,959
59,413
23,179
46,214
17,440
46,630
152
325
235
85,325
77,178
70,044
$
102,022
$
94,339
$
85,347
$
1.42
$
2.62
$
1.11
$
0.16
$
0.08
$
0.02
$
1.59
$
2.70
$
1.13
$
1.42
$
2.61
$
1.10
$
0.16
$
0.08
$
0.02
$
1.58
$
2.68
$
1.12
24,546
21,998
20,443
24,687
22,128
20,618
51
Total PS
Business Parks, Inc.s
Preferred Stock
Common Stock
Paid-in
Cumulative
Cumulative
Shareholders
Noncontrolling
Total
Shares
Amount
Shares
Amount
Capital
Net Income
Distributions
Equity
Interests
Equity
(In thousands, except share data)
28,650
$
716,250
20,777,219
$
207
$
371,267
$
552,069
$
(484,213
)
$
1,155,580
$
249,220
$
1,404,800
(400
)
(10,000
)
4,810
(291
)
(5,481
)
(5,481
)
(370,042
)
(3
)
(18,321
)
(18,324
)
(18,324
)
30,234
792
792
792
22,505
3,152
3,152
3,152
70,044
70,044
15,303
85,347
(50,858
)
(50,858
)
(50,858
)
(35,978
)
(35,978
)
(35,978
)
(19,863
)
(19,863
)
1,887
1,887
(1,887
)
28,250
706,250
20,459,916
204
363,587
622,113
(571,340
)
1,120,814
242,773
1,363,587
3,833,333
38
171,194
171,232
171,232
(3,208
)
(80,204
)
32,788
(2,783
)
(50,199
)
(50,199
)
9,577
9,577
(21,912
)
(12,335
)
(230
)
(230
)
(230
)
35,100
1,177
1,177
1,177
71,160
1
1,015
1,016
1,016
(75
)
(75
)
(75
)
77,178
77,178
17,161
94,339
(44,662
)
(44,662
)
(44,662
)
(39,509
)
(39,509
)
(39,509
)
(18,704
)
(18,704
)
(30,640
)
(30,640
)
30,640
25,042
626,046
24,399,509
243
548,393
699,291
(658,294
)
1,215,679
249,958
1,465,637
3,000
75,000
(2,487
)
72,513
72,513
(4,100
)
(102,500
)
3,484
(3,484
)
(102,500
)
(102,500
)
582
582
(20,582
)
(20,000
)
243,936
3
7,780
7,783
7,783
27,732
1,031
1,031
1,031
85,325
85,325
16,697
102,022
(42,730
)
(42,730
)
(42,730
)
(43,254
)
(43,254
)
(43,254
)
(17,377
)
(17,377
)
(901
)
(901
)
901
23,942
$
598,546
24,671,177
$
246
$
557,882
$
784,616
$
(747,762
)
$
1,193,528
$
229,597
$
1,423,125
52
For The Years Ended December 31,
2010
2009
2008
(In thousands)
$
102,022
$
94,339
$
85,347
78,868
85,094
99,848
571
(252
)
(194
)
(603
)
(326
)
(379
)
(285
)
(271
)
(260
)
(5,153
)
(1,488
)
2,116
2,900
4,061
(2,809
)
262
1,759
3,214
(633
)
(845
)
75,919
85,286
103,990
177,941
179,625
189,337
(40,378
)
(29,513
)
(35,192
)
(296,251
)
9,181
2,557
(327,448
)
(26,956
)
(35,192
)
93,000
(1,091
)
(1,022
)
(1,157
)
(5,128
)
72,513
171,232
7,783
1,177
792
(75
)
(102,500
)
(12,335
)
(20,000
)
(50,199
)
(5,481
)
(230
)
(21,626
)
(43,254
)
(39,509
)
(35,978
)
(42,730
)
(44,662
)
(50,858
)
(12,856
)
(12,856
)
(12,856
)
(4,521
)
(5,848
)
(7,007
)
(53,656
)
545
(134,171
)
(203,163
)
153,214
19,974
208,229
55,015
35,041
$
5,066
$
208,229
$
55,015
$
3,547
$
3,523
$
4,050
53
For The Years Ended December 31,
2010
2009
2008
(In thousands)
$
901
$
30,640
$
(1,887
)
$
(901
)
$
(30,640
)
$
1,887
$
$
(30,005
)
$
(4,519
)
$
$
(8,997
)
$
$
$
39,002
$
4,519
$
(3,484
)
$
(2,783
)
$
(291
)
$
(582
)
$
(580
)
$
$
4,066
$
3,363
$
291
54
1.
Organization
and description of business
2.
Summary
of significant accounting policies
55
56
57
58
2010
2009
2008
$
10,408
$
19,155
$
8,139
1,186
575
157
11,594
19,730
8,296
4,521
5,848
7,007
582
(8,417
)
5,103
(2,569
)
7,007
16,697
17,161
15,303
34,974
57,680
22,742
3,985
1,733
437
38,959
59,413
23,179
42,730
44,662
50,858
3,484
(27,222
)
(4,228
)
46,214
17,440
46,630
136
315
232
16
10
3
152
325
235
85,325
77,178
70,044
$
102,022
$
94,339
$
85,347
59
2010
2009
2008
$
38,959
$
59,413
$
23,179
24,546
21,998
20,443
141
130
175
24,687
22,128
20,618
$
1.59
$
2.70
$
1.13
$
1.58
$
2.68
$
1.12
3.
Real
estate facilities
Buildings and
Accumulated
Land
Equipment
Depreciation
Total
$
493,709
$
1,476,763
$
(536,412
)
$
1,434,060
35,192
35,192
(1,757
)
1,757
(99,848
)
(99,848
)
(185
)
531
346
493,709
1,510,013
(633,972
)
1,369,750
29,513
29,513
(11,267
)
11,267
(85,094
)
(85,094
)
(215
)
590
375
493,709
1,528,044
(707,209
)
1,314,544
71,142
223,428
294,570
40,378
40,378
(9,237
)
9,237
(78,868
)
(78,868
)
$
564,851
$
1,782,613
$
(776,840
)
$
1,570,624
60
2010
$
71,142
223,428
6,304
(2,348
)
298,526
(2,275
)
$
296,251
61
For The Years Ended December 31,
2010
2009
2008
$
91
$
2,515
$
2,388
(57
)
(1,095
)
(1,260
)
(590
)
(531
)
$
34
$
830
$
597
4.
Leasing
activity
$
212,721
165,728
113,928
72,452
45,802
73,231
$
683,862
5.
Bank
loans
62
6.
Mortgage
notes payable
December 31,
December 31,
2010
2009
$
13,729
$
14,006
15,950
16,446
9,572
9,819
9,594
9,836
2,666
2,780
$
51,511
$
52,887
(1)
The mortgage note has a stated principal balance of
$15.7 million and a stated interest rate of 7.20%. Based on
the fair market value at the time of assumption, a mortgage
premium was computed based on an effective interest rate of
6.15%. The unamortized premiums were $209,000 and $427,000 as of
December 31, 2010 and 2009, respectively. This mortgage is
repayable without penalty beginning November, 2011.
(2)
The mortgage note has a stated principal balance of
$2.7 million and a stated interest rate of 7.61%. Based on
the fair market value at the time of assumption, a mortgage
premium was computed based on an effective interest rate of
5.61%. The unamortized premiums were $6,000 and $73,000 as of
December 31, 2010 and 2009, respectively. Subsequent to
December 31, 2010, the Company repaid the outstanding
balance of $2.7 million in full.
$
3,984
1,174
31,573
371
399
14,010
$
51,511
63
7.
Noncontrolling
interests
December 31, 2010
December 31, 2009
Earliest Potential
Dividend
Units
Amount
Units
Amount
Issuance Date
Redemption Date
Rate
Outstanding
(In thousands)
Outstanding
(In thousands)
May & June, 2004
May, 2009
7.500%
1,710,000
$
42,750
1,710,000
$
42,750
December, 2005
December, 2010
7.125%
223,300
5,583
223,300
5,583
March, 2007
March, 2012
6.550%
203,400
5,085
203,400
5,085
October, 2002
October, 2007
7.950%
800,000
20,000
2,136,700
$
53,418
2,936,700
$
73,418
64
8.
Related
party transactions
65
9.
Shareholders
equity
December 31, 2010
December 31, 2009
Earliest Potential
Dividend
Shares
Amount
Shares
Amount
Issuance Date
Redemption Date
Rate
Outstanding
(In thousands)
Outstanding
(In thousands)
January & October, 2004
January, 2009
7.000%
6,340,776
$
158,520
6,340,776
$
158,520
April, 2004
April, 2009
6.875%
2,745,050
68,626
2,745,050
68,626
May, 2005
May, 2010
7.200%
3,182,000
79,550
3,182,000
79,550
June & August, 2006
June, 2011
7.375%
3,384,000
84,600
3,384,000
84,600
January, 2007
January, 2012
6.700%
5,290,000
132,250
5,290,000
132,250
October, 2010
October, 2015
6.875%
3,000,000
75,000
June, 2004
June, 2009
7.950%
2,165,000
54,125
August, 2004
August, 2009
7.600%
1,935,000
48,375
23,941,826
$
598,546
25,041,826
$
626,046
66
10.
Stock
compensation
67
Weighted
Aggregate
Weighted
Average
Intrinsic
Number of
Average
Remaining
Value
Options:
Options
Exercise Price
Contract Life
(in thousands)
572,587
$
37.86
14,000
$
57.79
(30,234
)
$
26.19
$
556,353
$
39.00
26,000
$
40.50
(35,100
)
$
33.53
(4,501
)
$
38.16
542,752
$
39.43
291,000
$
52.79
(243,936
)
$
31.90
(12,000
)
$
58.19
577,816
$
48.95
6.50 Years
$
4,500
252,816
$
44.08
3.63 Years
$
3,258
68
Weighted
Number of
Average Grant
Restricted Stock Units:
Units
Date Fair Value
228,227
$
53.91
40,700
$
52.66
(35,499
)
$
46.57
(3,740
)
$
54.14
229,688
$
54.81
11,700
$
35.00
(114,797
)
$
53.94
(7,500
)
$
55.96
119,091
$
53.64
13,900
$
54.44
(44,857
)
$
53.84
(2,460
)
$
55.90
85,674
$
53.60
11.
Supplementary
quarterly financial data (unaudited)
Three Months Ended
March 31,
June 30,
September 30,
December 31,
2010
2010
2010
2010
(In thousands, except per share data)
$
67,132
$
69,878
$
70,187
$
71,220
$
22,966
$
21,720
$
22,947
$
22,901
$
11,740
$
9,229
$
9,608
$
8,375
$
0.48
$
0.38
$
0.39
$
0.34
$
0.48
$
0.37
$
0.39
$
0.34
Three Months Ended
March 31,
June 30,
September 30,
December 31,
2009
2009
2009
2009
(In thousands, except per share data)
$
69,132
$
67,375
$
66,885
$
67,565
$
22,436
$
21,251
$
21,320
$
20,905
$
32,588
$
8,152
$
8,327
$
9,855
$
1.59
$
0.40
$
0.37
$
0.40
$
1.59
$
0.39
$
0.37
$
0.40
12.
Commitments
and contingencies
13.
401(K)
Plan
70
DECEMBER 31, 2010
(DOLLARS IN THOUSANDS)
Cost
Capitalized
Subsequent to
Gross Amount at Which Carried at
Initial Cost to Company
Acquisition
December 31, 2010
Buildings
Buildings
Buildings
Depreciable
and
and
and
Accumulated
Lives
Location
Encumbrances
Land
Improvements
Improvements
Land
Improvements
Total
Depreciation
Year(s) Acquired
(Years)
Mesa, AZ
$
$
675
$
1,692
$
2,859
$
675
$
4,551
$
5,226
$
2,741
1997
5-30
Phoenix, AZ
5,130
17,514
2,294
5,130
19,808
24,938
9,172
1999/2003
5-30
Tempe, AZ
195
522
621
195
1,143
1,338
686
1997
5-30
Tempe, AZ
2,805
7,107
5,938
2,805
13,045
15,850
8,029
1997
5-30
Hayward, CA
4,398
10,433
3,845
4,398
14,278
18,676
7,006
1997
5-30
Monterey, CA
288
706
272
288
978
1,266
543
1997
5-30
Sacramento, CA
3,031
13,826
5,437
3,031
19,263
22,294
10,786
1999
5-30
Sacramento, CA
1,710
4,567
3,012
1,710
7,579
9,289
4,342
1997
5-30
San Jose, CA
4,379
12,889
5,581
4,379
18,470
22,849
10,752
1998
5-30
San Jose, CA
3,458
8,765
2,631
3,458
11,396
14,854
5,835
1997
5-30
San Jose, CA
3,540
4,896
363
3,540
5,259
8,799
1,560
2006
5-30
San Ramon, CA
1,486
3,642
1,157
1,486
4,799
6,285
2,350
1997
5-30
Santa Clara, CA
17,218
21,914
3,528
17,218
25,442
42,660
12,200
2007
5-30
Santa Clara, CA
7,673
15,645
1,944
7,673
17,589
25,262
7,926
2000
5-30
So. San Francisco, CA
899
2,387
613
899
3,000
3,899
1,447
1997
5-30
So. San Francisco, CA
776
1,886
381
776
2,267
3,043
1,079
1997
5-30
Buena Park, CA
3,245
7,703
1,882
3,245
9,585
12,830
4,727
1997
5-30
Carson, CA
990
2,496
1,223
990
3,719
4,709
2,015
1997
5-30
Cerritos, CA
4,218
10,273
3,175
4,218
13,448
17,666
7,019
1997
5-30
Cerritos, CA
450
1,217
1,017
450
2,234
2,684
1,094
1997
5-30
Culver City, CA
3,252
8,157
4,715
3,252
12,872
16,124
7,173
1997
5-30
Irvine, CA
6,876
18,519
5,664
6,876
24,183
31,059
12,286
2000
5-30
Laguna Hills, CA
16,261
39,559
4,096
16,261
43,655
59,916
20,161
1997
5-30
Laguna Hills, CA
2,037
5,051
3,507
2,037
8,558
10,595
4,994
1997
5-30
Lake Forest, CA
5,508
13,785
4,431
5,508
18,216
23,724
9,176
1997
5-30
Monterey Park, CA
3,078
7,862
1,243
3,078
9,105
12,183
4,517
1997
5-30
Orange County, CA
9,405
35,746
16,345
9,405
52,091
61,496
35,088
2003
5-30
Orange County, CA
2,637
12,291
3,070
2,637
15,361
17,998
6,479
2003
5-30
San Diego, CA
2,894
7,089
2,424
2,894
9,513
12,407
4,763
1997
5-30
San Diego, CA
5,711
14,049
4,937
5,711
18,986
24,697
9,768
1997
5-30
San Diego, CA
13,729
15,129
20,054
1,429
15,129
21,483
36,612
8,142
2005
5-30
Signal Hill, CA
6,693
12,699
2,058
6,693
14,757
21,450
5,994
1997/2006
5-30
Studio City, CA
621
1,530
343
621
1,873
2,494
956
1997
5-30
Torrance, CA
2,318
6,069
2,312
2,318
8,381
10,699
4,317
1997
5-30
Boca Raton, FL
9,572
7,795
9,258
884
7,795
10,142
17,937
2,496
2006
5-30
Miami, FL
88,134
103,240
31,710
88,134
134,950
223,084
59,647
2003
5-30
Wellington, FL
12,260
10,845
18,560
1,148
10,845
19,708
30,553
4,524
2006
5-30
Beltsville, MD
4,278
18,380
7,859
4,278
26,239
30,517
15,896
1998
5-30
Gaithersburg, MD
475
1,203
504
475
1,707
2,182
907
1997
5-30
Rockville, MD
33,995
94,463
27,619
33,995
122,082
156,077
61,167
2001
5-30
Rockville, MD
3,387
19,628
749
3,387
20,377
23,764
813
2010
5-30
Rockville, MD
5,372
50,727
2,861
5,372
53,588
58,960
2,164
2010
5-30
Silver Spring, MD
15,950
25,261
74,572
7,755
25,261
82,327
107,588
29,886
2006
5-30
71
Cost
Capitalized
Subsequent to
Gross Amount at Which Carried at
Initial Cost to Company
Acquisition
December 31, 2010
Buildings
Buildings
Buildings
Depreciable
and
and
and
Accumulated
Lives
Location
Encumbrances
Land
Improvements
Improvements
Land
Improvements
Total
Depreciation
Year(s) Acquired
(Years)
Beaverton, OR
20,616
63,235
12,697
20,616
75,932
96,548
37,511
2001
5-30
Beaverton, OR
15,007
47,125
18,518
15,007
65,643
80,650
37,508
1998/2000
5-30
Milwaukie, OR
1,125
2,857
1,452
1,125
4,309
5,434
2,223
1997
5-30
Dallas, TX
304
1,545
769
304
2,314
2,618
1,324
1998
5-30
Dallas, TX
1,274
5,505
2,704
1,274
8,209
9,483
4,476
1998
5-30
Farmers Branch, TX
941
6,884
1,408
941
8,292
9,233
3,408
2003
5-30
Garland, TX
480
1,203
483
480
1,686
2,166
913
1997
5-30
Irving, TX
1,517
6,499
1,787
1,517
8,286
9,803
4,859
1998
5-30
Irving, TX
13,707
51,560
18,410
13,707
69,970
83,677
36,284
1998/1999/2000
5-30
Mesquite, TX
495
1,235
528
495
1,763
2,258
972
1997
5-30
Plano, TX
1,536
6,654
3,548
1,536
10,202
11,738
5,803
1998
5-30
Richardson, TX
799
3,568
2,100
799
5,668
6,467
3,369
1998
5-30
Austin, TX
1,550
7,015
991
1,550
8,006
9,556
4,165
1998
5-30
Austin, TX
2,528
6,596
3,839
2,528
10,435
12,963
7,120
1997
5-30
Austin, TX
1,411
6,384
1,810
1,411
8,194
9,605
4,540
1998
5-30
Austin, TX
437
2,013
1,055
437
3,068
3,505
1,941
1999
5-30
Austin, TX
2,022
9,397
3,278
2,022
12,675
14,697
5,756
1998/1999
5-30
Austin, TX
2,108
9,649
3,027
2,108
12,676
14,784
6,661
1999
5-30
Houston, TX
2,173
7,338
1,593
2,173
8,931
11,104
4,433
1999
5-30
Missouri City, TX
360
918
759
360
1,677
2,037
958
1997
5-30
Austin, TX
1,874
13,990
92
1,874
14,082
15,956
809
2010
5-30
Austin, TX
1,205
8,933
11
1,205
8,944
10,149
512
2010
5-30
Austin, TX
719
3,579
74
719
3,653
4,372
194
2010
5-30
Austin, TX
1,266
9,882
169
1,266
10,051
11,317
583
2010
5-30
Alexandria, VA
2,197
5,380
3,210
2,197
8,590
10,787
4,637
1997
5-30
Alexandria, VA
1,440
3,635
2,181
1,440
5,816
7,256
3,403
1997
5-30
Chantilly, VA
4,736
11,051
1,772
4,736
12,823
17,559
4,834
2006
5-30
Chantilly, VA
1,373
6,810
1,974
1,373
8,784
10,157
4,492
1999
5-30
Chantilly, VA
1,680
13,398
3,814
1,680
17,212
18,892
9,387
1999/2000
5-30
Chantilly, VA
3,851
18,029
6,221
3,851
24,250
28,101
11,567
1999
5-30
Fairfax, VA
13,598
36,232
4,386
13,598
40,618
54,216
16,269
2004/2007
5-30
Fairfax, VA
23,147
67,575
18,745
23,147
86,320
109,467
41,896
2001
5-30
Herndon, VA
6,737
18,911
8,163
6,737
27,074
33,811
15,076
1997/1999
5-30
Lorton, VA
4,146
17,872
3,498
4,146
21,370
25,516
11,417
1998
5-30
McLean, VA
47,434
91,386
40
47,434
91,426
138,860
488
2010
5-30
Springfield, VA
1,935
4,736
4,126
1,935
8,862
10,797
5,250
1997
5-30
Springfield, VA
3,535
15,672
9,687
3,535
25,359
28,894
16,146
2000
5-30
Sterling, VA
2,767
8,778
3,760
2,767
12,538
15,305
7,686
1997/1998
5-30
Sterling, VA
2,969
10,008
3,756
2,969
13,764
16,733
8,426
1998
5-30
Vienna, VA
9,885
25,302
231
9,885
25,533
35,418
784
2010
5-30
Woodbridge, VA
1,350
3,398
1,495
1,350
4,893
6,243
2,638
1997
5-30
Redmond, WA
27,761
49,353
3,972
27,761
53,325
81,086
22,756
2007
5-30
Renton, WA
330
889
494
330
1,383
1,713
743
1997
5-30
$
51,511
$
564,851
$
1,434,550
$
348,063
$
564,851
$
1,782,613
$
2,347,464
$
776,840
(1)
The Company owns two properties
that are subject to ground leases in Las Colinas, Texas,
expiring in 2019 and 2020, each with one 10 year extension
option.
By:
Chairman of the Board
February 25, 2011
President, Director and Chief
Executive Officer (principal
executive officer)
February 25, 2011
Chief Financial Officer (principal
financial officer and principal
accounting officer)
February 25, 2011
Director
February 25, 2011
Director
February 25, 2011
Director
February 25, 2011
Director
February 25, 2011
Director
February 25, 2011
Director
February 25, 2011
73
3
.1
Restated Articles of Incorporation. Filed with Registrants
Registration Statement on Form S-3 (No. 333-78627) and
incorporated herein by reference.
3
.2
Restated Bylaws, as amended. Filed with Registrants
Quarterly Report on Form 10-Q for the quarter ended March 31,
2009 and incorporated herein by reference.
3
.3
Certificate of Determination of Preferences of 8.75% Series C
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Quarterly Report on Form 10-Q for
the quarter ended September 30, 1999 (SEC File No. 001-10709)
and incorporated herein by reference.
3
.4
Certificate of Determination of Preferences of 8.875% Series X
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Quarterly Report on Form 10-Q for
the quarter ended September 30, 1999 (SEC File No. 001-10709)
and incorporated herein by reference.
3
.5
Amendment to Certificate of Determination of Preferences of
8.875% Series X Cumulative Redeemable Preferred Stock of PS
Business Parks, Inc. Filed with Registrants Quarterly
Report on Form 10-Q for the quarter ended September 30, 1999
(SEC File No. 001-10709) and incorporated herein by reference.
3
.6
Certificate of Determination of Preferences of 8.875% Series Y
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Quarterly Report on Form 10-Q for
the quarter ended June 30, 2000 (SEC File No. 001-10709) and
incorporated herein by reference.
3
.7
Certificate of Determination of Preferences of 9.50% Series D
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Current Report on Form 8-K dated
May 7, 2001 (SEC File No. 001-10709) and incorporated herein by
reference.
3
.8
Amendment to Certificate of Determination of Preferences of
9.50% Series D Cumulative Redeemable Preferred Stock of PS
Business Parks, Inc. Filed with Registrants Quarterly
Report on Form 10-Q for the quarter ended September 30, 2001
(SEC File No. 001-10709) and incorporated herein by reference.
3
.9
Certificate of Determination of Preferences of
9
1
/
4
%
Series E Cumulative Redeemable Preferred Stock of PS Business
Parks, Inc. Filed with Registrants Quarterly Report on
Form 10-Q for the quarter ended September 30, 2001 (SEC File No.
001-10709) and incorporated herein by reference.
3
.10
Certificate of Determination of Preferences of 8.75% Series F
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Current Report on Form 8-K dated
January 18, 2002 (SEC File No. 001-10709) and incorporated
herein by reference.
3
.11
Certificate of Determination of Preferences of 7.95% Series G
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Annual Report on Form 10-K for the
year ended December 31, 2003 and incorporated herein by
reference.
3
.12
Certificate of Determination of Preferences of 7.00% Series H
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
filed with Registrants Current Report on Form 8-K dated
January 16, 2004 and incorporated herein by reference.
3
.13
Certificate of Determination of Preferences of 6.875% Series I
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Current Report on Form 8-K dated
March 31, 2004 and incorporated herein by reference.
3
.14
Certificate of Determination of Preferences of 7.50% Series J
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Quarterly Report on Form 10-Q for
the quarter ended June 30, 2004 and incorporated herein by
reference.
3
.15
Certificate of Determination of Preferences of 7.950% Series K
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Current Report on Form 8-K dated
June 24, 2004 and incorporated herein by reference.
3
.16
Certificate of Determination of Preferences of 7.60% Series L
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Current Report on Form 8-K dated
August 23, 2004 and incorporated herein by reference.
3
.17
Certificate of Correction of Certificate of Determination of
Preferences for the 7.00% Cumulative Preferred Stock, Series H
of PS Business Parks, Inc. Filed with Registrants Current
Report on Form 8-K dated October 18, 2004 and incorporated
herein by reference.
74
3
.18
Amendment to Certificate of Determination of Preferences for the
7.00% Cumulative Preferred Stock, Series H of PS Business Parks,
Inc. Filed with Registrants Current Report on Form 8-K
dated October 18, 2004 and incorporated herein by reference.
3
.19
Certificate of Determination of Preferences of 7.20% Cumulative
Preferred Stock, Series M of PS Business Parks, Inc. Filed with
Registrants Current Report on Form 8-K dated April 29,
2005 and incorporated herein by reference.
3
.20
Certificate of Determination of Preferences of
7
1
/
8
%
Series N Cumulative Redeemable Preferred Stock of PS Business
Parks, Inc. Filed with Registrants Current Report on Form
8-K dated December 16, 2005 and incorporated herein by reference.
3
.21
Certificate of Determination of Preferences of 7.375% Series O
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Current Report on Form 8-K dated
May 18, 2006 and incorporated herein by reference.
3
.22
Certificate of Correction of Certificate of Determination of
Preferences of 7.375% Cumulative Preferred Stock, Series O of PS
Business Parks, Inc. Filed with Registrants Current Report
on Form 8-K dated August 10, 2006 and incorporated herein by
reference.
3
.23
Amendment to Certificate of Determination of Preferences of
7.375% Series O Cumulative Redeemable Preferred Stock of PS
Business Parks, Inc. Filed with Registrants Current Report
on Form 8-K dated August 10, 2006 and incorporated herein by
reference.
3
.24
Certificate of Determination of Preferences of 6.70% Series P
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Current Report on Form 8-K dated
January 9, 2007 and incorporated herein by reference.
3
.25
Certificate of Determination of Preferences of 6.55% Series Q
Cumulative Redeemable Preferred Stock of PS Business Parks, Inc.
Filed with Registrants Current Report on Form 8-K dated
March 16, 2007 and incorporated herein by reference.
3
.26
Certificate of Determination of Preferences of 6.875% Cumulative
Preferred Stock, Series R of PS Business Parks, Inc. Filed with
Registrants Current Report on Form 8-K dated October 7,
2010 and incorporated herein by reference.
4
.1
Deposit Agreement Relating to 7.00% Cumulative Preferred Stock,
Series H of PS Business Parks, Inc., dated as of January 15,
2004. Filed with Registrants Current Report on Form 8-K
dated January 15, 2004 and incorporated herein by reference.
4
.2
Deposit Agreement Relating to 6.875% Cumulative Preferred Stock,
Series I of PS Business Parks, Inc., dated as of March 31, 2004.
Filed with Registrants Current Report on Form 8-K dated
March 31, 2004 and incorporated herein by reference.
4
.3
Deposit Agreement Relating to 7.20% Cumulative Preferred Stock,
Series M of PS Business Parks, Inc., dated as of April 27, 2005.
Filed with Registrants Current Report on Form 8-K dated
April 27, 2005 and incorporated herein by reference.
4
.4
Deposit Agreement Relating to 7.375% Cumulative Preferred Stock,
Series O of PS Business Parks, Inc., dated as of May 18, 2006.
Filed with Registrants Current Report on Form 8-K dated
May 18, 2006 and incorporated herein by reference.
4
.5
Deposit Agreement Relating to 6.70% Cumulative Preferred Stock,
Series P of PS Business Parks, Inc., dated as of January 9,
2007. Filed with Registrants Current Report on Form 8-K
dated January 9, 2007 and incorporated herein by reference.
4
.6
Deposit Agreement Relating to 6.875% Cumulative Preferred Stock,
Series R of PS Business Parks, Inc., dated as of October 7,
2010. Filed with Registrants Current Report on Form 8-K
dated October 7, 2010 and incorporated herein by reference.
10
.1
Amended Management Agreement between Storage Equities, Inc. and
Public Storage Commercial Properties Group, Inc. dated as of
February 21, 1995. Filed with PSs Annual Report on Form
10-K for the year ended December 31, 1994 (SEC File No.
001-08389) and incorporated herein by reference.
10
.2
Agreement of Limited Partnership of PS Business Parks, L.P.
Filed with Registrants Quarterly Report on Form 10-Q for
the quarter ended June 30, 1998 (SEC File No. 001-10709) and
incorporated herein by reference.
10
.3*
Offer Letter/ Employment Agreement between Registrant and Joseph
D. Russell, Jr., dated as of September 6, 2002. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended March 31, 2003 and incorporated herein by reference.
10
.4
Form of Indemnity Agreement. Filed with Registrants
Quarterly Report on Form 10-Q for the quarter ended March 31,
1998 (SEC File No. 001-10709) and incorporated herein by
reference.
10
.5*
Form of Indemnification Agreement for Executive Officers. Filed
with Registrants Annual Report on Form 10-K for the year
ended December 31, 2004 and incorporated herein by reference.
10
.6
Cost Sharing and Administrative Services Agreement dated as of
November 16, 1995 by and among PSCC, Inc. and the owners listed
therein. Filed with Registrants Quarterly Report on Form
10-Q for the quarter ended March 31, 1998 (SEC File No.
001-10709) and incorporated herein by reference.
10
.7
Amendment to Cost Sharing and Administrative Services Agreement
dated as of January 2, 1997 by and among PSCC, Inc. and the
owners listed therein. Filed with Registrants Quarterly
Report on Form 10-Q for the quarter ended March 31, 1998 (SEC
File No. 001-10709) and incorporated herein by reference.
10
.8
Accounts Payable and Payroll Disbursement Services Agreement
dated as of January 2, 1997 by and between PSCC, Inc. and AOPP
LP. Filed with Registrants Quarterly Report on Form 10-Q
for the quarter ended March 31, 1998 (SEC File No. 001-10709)
and incorporated herein by reference.
10
.9
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 8.875% Series B Cumulative Redeemable
Preferred Units, dated as of April 23, 1999. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended March 31, 1999 (SEC File No. 001-10709) and incorporated
herein by reference.
10
.10
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 9.25% Series A Cumulative Redeemable
Preferred Units, dated as of April 30, 1999. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended March 31, 1999 (SEC File No. 001-10709) and incorporated
herein by reference.
10
.11
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 8.75% Series C Cumulative Redeemable
Preferred Units, dated as of September 3, 1999. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended September 30, 1999 (SEC File No. 001-10709) and
incorporated herein by reference.
10
.12
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 8.875% Series X Cumulative Redeemable
Preferred Units, dated as of September 7, 1999. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended September 30, 1999 (SEC File No. 001-10709) and
incorporated herein by reference.
10
.13
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to Additional 8.875% Series X Cumulative
Redeemable Preferred Units, dated as of September 23, 1999.
Filed with Registrants Quarterly Report on Form 10-Q for
the quarter ended September 30, 1999 (SEC File No. 001-10709)
and incorporated herein by reference.
10
.14
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 8.875% Series Y Cumulative Redeemable
Preferred Units, dated as of July 12, 2000. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended June 30, 2000 (SEC File No. 001-10709) and incorporated
herein by reference.
10
.15
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 9.50% Series D Cumulative Redeemable
Preferred Units, dated as of May 10, 2001. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended March 31, 2001 (SEC File No. 001-10709) and incorporated
herein by reference.
10
.16
Amendment No. 1 to Amendment to Agreement of Limited Partnership
of PS Business Parks, L.P. Relating to 9.50% Series D Cumulative
Redeemable Preferred Units, dated as of June 18, 2001. Filed
with Registrants Quarterly Report on Form 10-Q for the
quarter ended September 30, 2001 (SEC File No. 001-10709) and
incorporated herein by reference.
10
.17
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to
9
1
/
4
%
Series E Cumulative Redeemable Preferred Units, dated as of
September 21, 2001. Filed with Registrants Quarterly
Report on Form 10-Q for the quarter ended September 30, 2001
(SEC File No. 001-10709) and incorporated herein by reference.
10
.18
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 8.75% Series F Cumulative Redeemable
Preferred Units, dated as of January 18, 2002. Filed with
Registrants Annual Report on Form 10-K for the year ended
December 31, 2001 (SEC File No. 001-10709) and incorporated
herein by reference.
10
.19
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 7.95% Series G Cumulative Redeemable
Preferred Units, dated as of October 30, 2002. Filed with
Registrants Annual Report on Form 10-K for the year ended
December 31, 2003 and incorporated herein by reference.
10
.20
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 7.00% Series H Cumulative Redeemable
Preferred Units, dated as of January 16, 2004. Filed with
Registrants Annual Report on Form 10-K for the year ended
December 31, 2003 and incorporated herein by reference.
10
.21
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 6.875% Series I Cumulative Redeemable
Preferred Units, dated as of April 21, 2004. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended September 30, 2004 and incorporated herein by reference.
10
.22
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 7.50% Series J Cumulative Redeemable
Preferred Units, dated as of May 27, 2004. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended June 30, 2004 and incorporated herein by reference.
10
.23
Amendment No. 1 to Amendment to Agreement of Limited Partnership
of PS Business Parks, L.P. Relating to 7.50% Series J Cumulative
Redeemable Preferred Units, dated as of June 17, 2004. Filed
with Registrants Quarterly Report on Form 10-Q for the
quarter ended June 30, 2004 and incorporated herein by reference.
10
.24
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 7.95% Series K Cumulative Redeemable
Preferred Units, dated as of June 30, 2004, filed with
Registrants Annual Report on Form 10-K for the year ended
December 31, 2004 and incorporated herein by reference.
10
.25
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 7.60% Series L Cumulative Redeemable
Preferred Units, dated as of August 31, 2004. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended September 30, 2004 and incorporated herein by reference.
10
.26
Amendment No. 1 to Amendment to Agreement of Limited Partnership
of PS Business Parks, L.P. Relating to 7.00% Series H Cumulative
Redeemable Preferred Units, dated as of October 25, 2004. Filed
with Registrants Quarterly Report on Form 10-Q for the
quarter ended September 30, 2004 and incorporated herein by
reference.
10
.27
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 7.20% Series M Cumulative Redeemable
Preferred Units, dated as of May 2, 2005. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended March 31, 2005 and incorporated herein by reference.
10
.28
Amendment No. 1 to Amendment to Agreement of Limited Partnership
Relating to 7.20% Series M Cumulative Redeemable Preferred
Units, dated as of May 9, 2005. Filed with Registrants
Quarterly Report on Form 10-Q for the quarter ended June 30,
2005 and incorporated herein by reference.
10
.29
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to
7
1
/
8
%
Series N Cumulative Redeemable Preferred Units, dated as of
December 12, 2005. Filed with Registrants Current Report
on Form 8-K dated December 16, 2005 and incorporated herein by
reference.
10
.30
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 7.375% Series O Cumulative Redeemable
Preferred Units, dated as of June 16, 2006. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended June 30, 2006 and incorporated herein by reference.
10
.31
Amendment No. 1 to Amendment to Agreement of Limited Partnership
of PS Business Parks, L.P. Relating to 7.375% Series O
Cumulative Redeemable Preferred Units, dated as of August 16,
2006. Filed with Registrants Annual Report on Form 10-K
for the year ended December 31, 2006 and incorporated herein by
reference.
10
.32
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 6.70% Series P Cumulative Redeemable
Preferred Units, dated as of January 9, 2007. Filed with
Registrants Annual Report on Form 10-K for the year ended
December 31, 2006 and incorporated herein by reference.
10
.33
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 6.55% Series Q Cumulative Redeemable
Preferred Units, dated as of March 12, 2007. Filed with
Registrants Current Report on Form 8-K dated March 16,
2007 and incorporated herein by reference.
10
.34
Amendment to Agreement of Limited Partnership of PS Business
Parks, L.P. Relating to 6.875% Series R Cumulative Redeemable
Preferred Units, dated as of October 15, 2010. Filed herewith.
10
.35
Registration Rights Agreement by and between PS Business Parks,
Inc. and GSEP 2005 Realty Corp., dated as of December 12, 2005,
relating to 7.125% Series N Cumlative Redeemable Preferred
Units. Filed with Registrants Current Report on Form 8-K
dated December 16, 2005 and incorporated herein by reference.
10
.36
Amended and Restated Revolving Credit Agreement dated as of
October 29, 2002 among PS Business Parks, L.P., Wells Fargo
Bank, National Association, as Agent, and the Lenders named
therein. Filed with Registrants Annual Report on Form 10-K
for the year ended December 31, 2002 (SEC File No. 001-10709)
and incorporated herein by reference.
10
.37
Modification Agreement, dated as of December 29, 2003. Filed
with the Registrants Annual Report on Form 10-K for the
year ended December 31, 2003 and incorporated herein by
reference. This exhibit modifies the Amended and Restated
Revolving Credit Agreement dated as of October 29, 2002 and
filed with the Registrants Annual Report on Form 10-K for
the year ended December 31, 2002 (SEC File No. 001-10709) and
incorporated herein by reference.
10
.38
Modification Agreement, dated as of January 23, 2004. Filed with
the Registrants Annual Report on Form 10-K for the year
ended December 31, 2003 and incorporated herein by reference.
This exhibit modifies the Modification Agreement dated as of
December 29, 2003 and filed with the Registrants Annual
Report on Form 10-K for the year ended December 31, 2003 and
incorporated herein by reference.
10
.39
Third Modification Agreement, dated as of August 5, 2005. Filed
with the Registrants Current Report on Form 8-K dated
August 5, 2005 and incorporated herein by reference. This
exhibit modifies the Modification Agreement dated as of January
23, 2004 and filed with the Registrants Annual Report on
Form 10-K for the year ended December 31, 2003 and incorporated
herein by reference.
10
.40
Fourth Modification Agreement dated as of July 30, 2008 to
Amended and Restated Revolving Credit Agreement dated October
29, 2002. Filed with Registrants Current Report of Form
8-K dated August 5, 2008 and incorporated herein by reference.
10
.41
Fifth Modification Agreement dated as of July 28, 2010 to
Amended and Restated Revolving Credit Agreement dated October
29, 2002. Filed with Registrants Current Report on Form
8-K dated August 2, 2010 and incorporated herein by reference.
10
.42
Promissory Note dated February 9, 2011. Filed with the
Registrants Current Report on Form 8-K dated February 14,
2011 and incorporated herein by reference.
10
.43*
Registrants 1997 Stock Option and Incentive Plan. Filed
with Registrants Registration Statement on Form S-8 (No.
333-48313) and incorporated herein by reference.
10
.44*
Registrants 2003 Stock Option and Incentive Plan. Filed
with Registrants Registration Statement on Form S-8 (No.
333-104604) and incorporated herein by reference.
10
.45*
Retirement Plan for Non-Employee Directors. Filed with
Registrants Registration Statement on Form S-8 (No.
333-129463) and incorporated herein by reference.
10
.46*
Form of PS Business Parks, Inc. Restricted Stock Unit Agreement.
Filed with Registrants Quarterly Report on Form 10-Q for
the quarter ended September 30, 2004 and incorporated herein by
reference.
10
.47*
Form of PS Business Parks, Inc. 2003 Stock Option and Incentive
Plan Non-Qualified Stock Option Agreement. Filed with
Registrants Quarterly Report on Form 10-Q for the quarter
ended September 30, 2004 and incorporated herein by reference.
10
.48*
Form of PS Business Parks, Inc. 2003 Stock Option and Incentive
Plan Stock Option Agreement. Filed with Registrants
Quarterly Report on Form 10-Q for the quarter ended September
30, 2004 and incorporated herein by reference.
10
.49*
Amendment to Form of Director Stock Option Agreement. Filed
herewith.
10
.50*
Revised Form of Director Stock Option Agreement. Filed herewith.
12
Statement re: Computation of Ratio of Earnings to Fixed Charges.
Filed herewith.
21
List of Subsidiaries. Filed herewith.
23
Consent of Independent Registered Public Accounting Firm. Filed
herewith.
31
.1
Certification of Chief Executive Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 2002. Filed herewith.
31
.2
Certification of Chief Financial Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 2002. Filed herewith.
32
.1
Certification of Chief Executive Officer and Chief Financial
Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002. Filed herewith.
101
The following materials from PS Business Parks, Inc.s
Annual Report on Form 10-K for the year ended December 31, 2010
formatted in XBRL (eXtensible Business Reporting Language): (i)
the Consolidated Balance Sheets, (ii) the Consolidated
Statements of Income, (iii) the Consolidated Statement of
Equity, (iv) the Consolidated Statements of Cash Flows, and (v)
related notes to these consolidated financial statements, tagged
as blocks of text. Furnished herewith.
*
Management contract or compensatory plan or arrangement
-2-
-3-
-4-
-5-
-6-
PS BUSINESS PARKS, INC.
|
||||
By: | /s/ Joseph D. Russell, Jr. | |||
Name: | Joseph D. Russell, Jr. | |||
Title: | President and Chief Executive Officer |
-7-
-2-
RETIRING
PARTNER:
|
||||
By: | ||||
Name: | ||||
Title: | ||||
PARTNERSHIP:
PS Business Parks, L.P. |
||||
By: | PS Business Parks, Inc., its | |||
General Partner |
By: | ||||
Name: | ||||
Title: |
-3-
GENERAL PARTNER
PS Business Parks, Inc. |
||||
By: | ||||
Name: | ||||
Title: | ||||
WITHDRAWING
LIMITED PARTNER
|
||||
By: | ||||
Name: | ||||
Title: |
-2-
-3-
PS BUSINESS PARKS, INC.
|
|||||||
By: | |||||||
Its: | |||||||
OPTIONEE
|
|||||||
2
3
4
5
6
7
PS BUSINESS PARKS, INC.
|
||||
By: | ||||
David Goldberg | ||||
Vice President | ||||
|
OPTIONEE: | |
|
||
|
||
|
|
|
|
||
|
ADDRESS FOR NOTICE TO OPTIONEE: | |
|
||
|
||
|
| |
|
Number Street | |
|
||
|
| |
|
City State Zip Code |
8
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Income from continuing operations
|
$ | 96,835 | $ | 92,021 | $ | 84,750 | $ | 81,112 | $ | 78,504 | ||||||||||
Interest expense
|
3,534 | 3,552 | 3,952 | 4,130 | 2,575 | |||||||||||||||
Earnings from continuing operations available to cover fixed
charges
|
$ | 100,369 | $ | 95,573 | $ | 88,702 | $ | 85,242 | $ | 81,079 | ||||||||||
Fixed charges(1)
|
$ | 3,534 | $ | 3,552 | $ | 3,952 | $ | 4,130 | $ | 2,575 | ||||||||||
Preferred stock dividends
|
46,214 | 17,440 | 46,630 | 50,937 | 47,933 | |||||||||||||||
Preferred partnership distributions
|
5,103 | (2,569 | ) | 7,007 | 6,854 | 11,155 | ||||||||||||||
Combined fixed charges and preferred distributions
|
$ | 54,851 | $ | 18,423 | $ | 57,589 | $ | 61,921 | $ | 61,663 | ||||||||||
Ratio of earnings from continuing operations to fixed charges
|
28.4 | 26.9 | 22.4 | 20.6 | 31.5 | |||||||||||||||
Ratio of earnings from continuing operations to combined fixed
charges and preferred distributions
|
1.8 | 5.2 | 1.5 | 1.4 | 1.3 | |||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
FFO
|
$ | 124,420 | $ | 163,074 | $ | 131,558 | $ | 122,405 | $ | 106,235 | ||||||||||
Interest expense
|
3,534 | 3,552 | 3,952 | 4,130 | 2,575 | |||||||||||||||
Net income allocable to noncontrolling interests
preferred units
|
5,103 | (2,569 | ) | 7,007 | 6,854 | 11,155 | ||||||||||||||
Preferred stock dividends
|
46,214 | 17,440 | 46,630 | 50,937 | 47,933 | |||||||||||||||
FFO available to cover fixed charges
|
$ | 179,271 | $ | 181,497 | $ | 189,147 | $ | 184,326 | $ | 167,898 | ||||||||||
Fixed charges(1)
|
$ | 3,534 | $ | 3,552 | $ | 3,952 | $ | 4,130 | $ | 2,575 | ||||||||||
Preferred stock dividends(2)
|
42,730 | 44,662 | 50,858 | 50,937 | 44,553 | |||||||||||||||
Preferred partnership distributions(2)
|
4,521 | 5,848 | 7,007 | 6,854 | 9,789 | |||||||||||||||
Combined fixed charges and preferred distributions paid
|
$ | 50,785 | $ | 54,062 | $ | 61,817 | $ | 61,921 | $ | 56,917 | ||||||||||
Ratio of adjusted FFO to fixed charges
|
50.7 | 51.1 | 47.9 | 44.6 | 65.2 | |||||||||||||||
Ratio of adjusted FFO to combined fixed charges and preferred
distributions paid
|
3.5 | 3.4 | 3.1 | 3.0 | 2.9 | |||||||||||||||
(1) | Fixed charges include interest expense. | |
(2) | Excludes the non-cash distributions related to the redemption/repurchase of preferred equity and the gain on the repurchase of preferred equity. |
Name
|
State | |
American Office Park Properties, TPGP, Inc.
|
California | |
PSBP QRS, Inc.
|
California | |
Hernmore, Inc.
|
Maryland | |
AOPP Acquisition Corp. Two
|
California | |
Tenant Advantage, Inc.
|
California | |
PS Business Parks, L.P.
|
California | |
PSBP Northpointe D, L.L.C.
|
Virginia | |
Monroe Parkway, L.L.C.
|
Virginia | |
2767 Prosperity Way, L.L.C
|
California | |
Metro Park I, L.L.C.
|
Delaware | |
Metro Park II, L.L.C.
|
Delaware | |
Metro Park III, L.L.C.
|
Delaware | |
Metro Park IV, L.L.C.
|
Delaware | |
Metro Park V, L.L.C.
|
Delaware | |
PS Metro Park, L.L.C.
|
Delaware | |
PSBP Westwood GP, L.L.C.
|
Delaware | |
PSBP Industrial, L.L.C.
|
Delaware | |
Miami International Commerce Center
|
Florida | |
REVX-098, L.L.C.
|
Delaware | |
PS Rose Canyon, L.L.C.
|
Delaware | |
GB, L.L.C.
|
Maryland | |
PSBP Meadows L.L.C.
|
Delaware | |
PSB Boca Commerce Park, L.L.C.
|
Delaware | |
PSB Wellington Commerce Park I, L.L.C.
|
Delaware | |
PSB Wellington Commerce Park II, L.L.C.
|
Delaware | |
PSB Wellington Commerce Park III, L.L.C.
|
Delaware |