<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 25, 1999 (Date of earliest event reported)
CORNERSTONE PROPERTIES INC.
(Exact name of registrant as specified in its charter)
Nevada 1-12861 74-2170858
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
Cornerstone Properties Inc.
126 East 56th Street
New York, NY 10022
(Address of principal executive offices)
(212) 605-7100
(Registrant's telephone number,
including area code)
<PAGE>
Item 5. Other Events
(c) Exhibits
Exhibit 99- Supplemental information package distributed in conjunction
with the Fourth Quarter 1998 Earning Release of Cornerstone Properties Inc.
<PAGE>
SIGNATIURES
-----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CORNERSTONE PROPERTIES INC.
(Registrant)
By:/s/Kevin P. Mahoney
-----------------------------------------
Kevin P. Mahoney, Chief Financial Officer
Date: March 24, 1999
<PAGE>
Exhibit 99
Cornerstone Properties Inc.
Supplemental Information to Quarterly Earnings Release
1) Fourth Quarter 1998
o Balance Sheet
o Income Statement
2) Foruth Quarter Press Release
3) Quarterly Fact Sheet
4) FFO Calculation
5) Table of Properties
6) Top Ten Tenants Schedule
7) Historical Occupancy Schedule
8) Net Rent and Net Effective Rent Schedule
9) Lease Expiration Schedule
10) Tenant Retention Schedule
11) Leasing Costs and Capital Expenditures
12) Debt Schedule
13) Equity Schedule
14) Minority Sharing in Cash Flows and Residual Proceeds
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Balance Sheet
o Income Statement
<PAGE>
CORNERSTONE PROPERTIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
1998 1997
---------- ---------
(Unaudited)
ASSETS
Investments, at cost:
<S> <C> <C>
Land $ 729,323 $ 260,542
Buildings, leasehold interests and improvements 3,466,288 1,559,085
Investment in real estate joint venture 31,500 240,253
Deferred lease costs 144,838 127,645
---------- ----------
4,371,949 2,187,525
Less: Accumulated depreciation and amortization 288,448 229,652
---------- ----------
Total investments 4,083,501 1,957,873
Cash and cash equivalents 61,869 24,730
Restricted cash 9,114 1,903
Other deferred costs, net of accumulated amortization
of $762 and $1,998 6,153 5,728
Deferred tenant receivables 53,802 38,531
Tenant and other receivables, net 10,557 7,584
Notes receivable 134 1,652
Other assets 56,854 13,480
----------- -----------
Total Assets $ 4,281,984 $ 2,051,481
=========== ===========
LIABILITIES
Long-term debt, inclusive of $25,031 and $11,209 of
unamortized premium $ 1,532,474 $ 706,178
Credit facility 465,000 187,000
Accrued interest payable 10,933 4,134
Accrued real estate taxes payable 16,395 13,401
Accounts payable and accrued expenses 51,454 18,363
Common Stockholders' distributions payable 38,163 -
Unearned revenue and other liabilities 23,890 10,986
----------- -----------
Total Liabilities 2,138,309 940,062
=========== ===========
MINORITY INTEREST
Minority Interest in operating partnership 283,388 -
Minority Interest in real estate joint ventures 23,420 15,420
----------- -----------
Total Minority Interest 306,808 15,420
Commitments and Contingencies
Redeemable Preferred Stock; 344,828 shares authorized;
0 shares issued and outstanding - -
STOCKHOLDERS' INVESTMENT
7% Cumulative Convertible Preferred Stock, $16.50
stated value; 65,000,000 shares authorized; 50,000 50,000
3,030,303 shares issued and outstanding
Common stock, no par value; 250,000,000 shares
authorized;(1998-128,210,784; 1997-83,191,819)
shares issued and outstanding
Paid-in capital 1,788,567 1,048,187
Deferred compensation (1,700) (2,188)
----------- -----------
Total Stockholders' Investment 1,836,867 1,095,999
----------- -----------
Total Liabilities and Stockholders' Investment $ 4,281,984 $ 2,051,481
=========== ===========
</TABLE>
<PAGE>
CORNERSTONE PROPERTIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 1998 AND 1997
(Dollar amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
(Unaudited) (Unaudited) (Unaudited)
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S>
Revenues
<S> <C> <C> <C> <C>
Office and parking rentals $ 98,748 $ 56,591 $ 338,515 $ 159,828
Earnings in real estate joint venture 1,270 - 11,420 -
Interest and other income 2,384 5,651 9,551 14,083
------------ ------------ ------------ ------------
Total Revenues 102,402 62,242 359,486 173,911
------------ ------------ ------------ ------------
Expenses
Building operating expenses 22,716 13,269 75,663 35,962
Real estate taxes 11,860 8,007 46,760 25,560
Interest expense 19,809 11,582 67,533 33,977
Depreciation and amortization 16,717 10,113 59,278 30,978
General and administrative 4,226 2,430 12,939 7,564
------------ ------------ ------------ ------------
Total Expenses 75,328 45,401 262,173 134,041
------------ ------------ ------------ ------------
27,074 16,841 97,313 39,870
------------ ------------ ------------ ------------
Other income (expenses)
Loss on sale of real estate assets 248 - (2,076) -
Minority interest (2,787) (960) (7,469) (2,368)
Net gain on interest rate swaps - - - 99
------------ ------------ ------------ ------------
Income before extraordinary item 24,535 15,881 87,768 37,601
Extraordinary loss (2,034) - (4,303) (54)
------------ ------------ ------------ ------------
Net income $ 22,501 $ 15,881 $ 83,465 $ 37,547
============ ============ ============ ============
Income applicable to preferred stock $ (875) $ (875) $ (3,500) $ (10,160)
============ ============ ============ ============
Income applicable to common stock $ 21,626 $ 15,006 $ 79,965 $ 27,387
============ ============ ============ ============
Income before extraordinary item per common share $ 0.22 $ 0.20 $ 0.84 $ 0.63
============ ============ ============ ============
Extraordinary loss per common share $ (0.02) $ - $ (0.04) $ -
============ ============ ============ ============
Basic income per common share $ 0.20 $ 0.20 $ 0.80 $ 0.63
============ ============ ============ ============
Diluted income per common share $ 0.20 $ 0.20 $ 0.80 $ 0.63
============ ============ ============ ============
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Press Release
<PAGE>
FOR IMMEDIATE RELEASE
- ---------------------
February 25, 1999
FOR ADDITIONAL INFORMATION, CONTACT:
Kevin P. Mahoney Thomas P. Loftus
Chief Financial Officer Investor Relations
(212) 605-7142 (212) 605-7131
CORNERSTONE PROPERTIES INC.
ANNOUNCES FOURTH QUARTER 1998 RESULTS
Fourth Quarter 1998 Highlights
o Closed merger with William Wilson and Associates valued at over $1.8
billion.
o Fourth Quarter Funds from Operations per share increased 8.8% as compared
to the same period in 1997.
o Total 1998 Funds From Operations per share increased 13.3% as compared to
1997.
o Same store net operating income up 3.0% for the year ending December 31,
1998.
o Increased line of credit to $550 million with a one year extension.
New York, NEW YORK (February 25, 1999) -- Cornerstone Properties Inc. (NYSE:
CPP), a real estate investment trust, announced today results for its fourth
quarter ended December 31, 1998. Funds from operations (FFO) allocated to
share/unit holders amounted to $43,285,000, or $0.37 per share/unit calculated
on 117,272,000 average diluted total shares/units outstanding, compared to
$26,163,000, or $0.34 per share/unit on 77,676,000 average diluted total
shares/units outstanding for the three months ended December 31, 1997. The
increase in FFO per share/unit was due to the accretive impact of the Companys
acquisitions over the past twelve months and internal growth. As defined by
NAREIT, funds from operations is net income excluding expenses from debt
restructuring, gains (or losses) on sale of property, plus depreciation and
amortization.
Year-to-date net operating income before depreciation from Cornerstone
Properties real estate assets increased 136% to $231,553,000 for the 12 months
ended December 31, 1998, from $98,306,000 for the comparable period in 1997.
Net income for the fourth quarter of 1998 grew to $22,501,000 compared to
$15,881,000 in the fourth quarter of 1997. Year-to-date net income increased to
$83,465,000 compared to $37,547,000 for 1997.
<PAGE>
Quarterly Dividend Declared
The Company declared a quarterly dividend of $0.30 per share based on two record
dates. A distribution of $0.15 was declared for all shareholders of record as of
December 15, 1998 to be paid on February 26, 1999. A second distribution of
$0.15 was declared for all shareholders of record as of January 29, 1999 and
will also be paid on February 26, 1999. The two separate payments are being made
pursuant to the merger between Cornerstone Properties Inc. and William Wilson &
Associates.
Same Store Revenue Growth Continues
The Company achieved year-to-date same store
net operating income growth of
3.0% over 1997 at the seven properties owned over the same period; this compares
favorably to the 0.93% achieved during the same period in 1997. This increase is
due to a 2.19% increase in revenues while expenses increased only 0.88% and
reflects the strengthening of fundamentals in the Companys core markets.
Leasing Update: Tenant Retention Rate 76% and Overall Occupancy Rate 95%
Tenant retention for 1998 was a very strong 76%. The portfolios overall
occupancy rate currently stands at 95%.
Closure of $1.8 Billion Merger with William Wilson and Associates
On December 16, 1998 the Company announced the closure of the merger of William
Wilson and Associates with Cornerstone Properties. As part of the transaction,
the Board of Directors has been increased from 11 to 14 directors. William
Wilson III, formerly President and Founder of William Wilson & Associates, was
appointed Chairman of Cornerstone Properties. John S. Moody, former Chairman and
Chief Executive Officer, was elected President and Chief Executive Officer. In
addition to serving as Chairman of the Board of Directors, Mr. Wilson will serve
as President of Wilson Cornerstone Properties, the western operating division of
Cornerstone. Following the closing, Cornerstone owns a national portfolio of
Class A real estate totaling approximately 21 million square feet and ranks
among the top four office REITs in the United States.
Awarded development rights to the historic Ferry Building
Cornerstone announced on November 19, 1998 that the Cornerstone development team
was chosen by the Port Commission of San Francisco for the historic Ferry
Building rehabilitation project. Cornerstone will rehabilitate the Ferry
Building's exterior and create significant public space within the building. The
ground floor of the building will be developed as a high quality market hall
featuring the best of San Francisco's restaurants, food producers and purveyors.
The upper floors will comprise the Port Commission offices and premium-quality
general office space.
Corporate Line of Credit Increased to $550 million
On November 3, 1998, Cornerstones corporate line of credit was increased from
$350 million to $550 million and the term was extended through November 3, 2001.
The line of credit is with a syndicate of banks led by Bankers Trust, The Chase
Manhattan Bank, and Bank of America. The interest rate on the line is a variable
rate over LIBOR with a spread of between 110 and 140 basis points depending on
the current leverage level of the Company.
Cornerstone Properties Inc. is a self-administered equity real estate investment
trust (REIT) investing in Class A office properties in prime locations in major
suburban markets and prime central business districts. The Company, through its
subsidiaries, currently owns 92 Class A office properties throughout the United
States totaling approximately 21 million square feet. Headquartered in New York
City, Cornerstones stock is traded on the New York Stock Exchange under the
ticker symbol CPP.
This press release contains forward-looking statements within the meaning of the
Federal securities laws. Forward-looking statements are inherently subject to
risks and uncertainties, many of which cannot be predicted with accuracy, that
could cause the actual results, performance or achievements of Cornerstone to
differ materially from those reflected in such forward-looking statements.
Information contained in this press release regarding current and future market
conditions is based on Cornerstones assessment of real estate markets as of this
date and is subject to the uncertainties inherent in such an assessment. In
particular, but not exclusively, national and regional economic conditions, the
rate of new construction, and demand and supply in a given market will affect
leasing activity, projected rents and the cost of lease renewals.
[Tables to Follow]
# # #
For more information on Cornerstone Properties visit Cornerstone Properties Web
site at http://www.cstoneprop.com
<PAGE>
Cornerstone Properties Inc.
Funds From Operations
December 31, 1998
<TABLE>
<CAPTION>
------------------------------------------------------------------
3 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended
12/31/98 12/31/97 12/31/98 12/31/97
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Rental Income (1) $ 101,393 $ 56,591 $ 361,385 $ 159,828
Building Operating Expenses (1) 35,464 21,276 129,832 61,522
------------------------------------------------------------------
Building Net Operating Income 65,929 35,315 231,553 98,306
------------------------------------------------------------------
Corporate General and Administrative (1) (2) (4,011) (2,430) (12,724) (7,564)
Interest and Other Income 2,712 5,651 9,879 14,083
------------------------------------------------------------------
EBITDA 64,630 38,536 228,708 104,825
------------------------------------------------------------------
Interest Expense (1) (19,861) (11,582) (67,585) (33,977)
Minority Adjustments (2,068) (1,467) (6,739) (3,919)
Rent Notes 398 476 1,531 1,379
------------------------------------------------------------------
Funds From Operations 43,099 25,963 155,915 68,308
Interest on Convertible Debt 186 200 790 792
------------------------------------------------------------------
Funds From Operations (Adjusted for convertible debt) $ 43,285 $ 26,163 $ 156,705 $ 69,100
------------------------------------------------------------------
Weighted Average Diluted Shares/Units 117,272 77,676 108,052 54,192
FFO Per Share/Unit (Diluted) $ 0.37 $ 0.34 $ 1.45 $ 1.28
Less: Capital Expenditures Per Share/Unit 0.02 0.02 0.08 0.09
------------------------------------------------------------------
AFFO Per Share/Unit $ 0.35 $ 0.32 $ 1.37 $ 1.19
------------------------------------------------------------------
Funds From Operations $ 43,099 $ 25,963 $ 155,915 $ 68,308
Less: Preferred Dividends (875) (875) (3,500) (10,160)
Less: Recurring Lease Costs and
Capital Expenditures (3) (2,811) (1,740) (8,501) (4,739)
Less: Straight Line Rents Adjusted For
Minority Interest (4,151) (1,951) (14,543) (2,697)
------------------------------------------------------------------
Funds Available for Distribution $ 35,262 $ 21,397 $ 129,371 $ 50,712
------------------------------------------------------------------
Weighted Average Common Shares and Units
Outstanding 113,236 73,478 103,882 43,572
Funds Available for Distribution Per Share/Unit $ 0.31 $ 0.29 $ 1.25 $ 1.16
Distribution Per Share/Unit $ 0.30 $ 0.30 $ 1.20 $ 1.20
</TABLE>
(1) For the twelve months ended December 31, 1998 rental income has been
increased by $22,870,000, building operating expenses have been increased by
$7,409,000, corporate general and administrative expense has been increased by
$263,000, interest and other income has been increased by $328,000 and interest
expense has been increased by $52,000 in order to show Cornerstone's equity
investments had they been consolidated. For the three months ended December 31,
1998 rental income has been increased by $2,645,000, building expenses have been
increased by $888,000, interest and other income has been increased $64,000,
corporate general and administrative expenses has been increased by $263,000 and
interest expense has been increased by $52,000 in order to show Cornerstone's
equity investments had they been consolidated.
(2) Non-recurring merger severance costs of $478,000 have been deducted from
general and administrative.
(3) Based on a five year 1994-1998 average of recurring (non revenue generating)
tenant leasing costs of $8.32 per square foot leased times the five year
(1999-2003) average quarterly lease expiration (adjusted for minority interest
and the 15 day hold period for the Wilson assets) of 304,500 square feet
($2,533,440) leased times the five year (1999-2003) average quarterly lease
expiration (adjusted for minority interest and the 15 day hold period for the
Wilson assets), plus a capital expenditure reserve (adjusted for minority
interest) of $.10 per square foot ($277,145).
Year to date the Company has incurred $15,876,813 in recurring tenant costs in
leasing 1,768,939 square feet or a cost of $8.98 per square foot.
Year to date the Company has incurred $1,671,684 in recurring capital costs or
$0.15 per square foot on an annualized basis.
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Fact Sheet
<PAGE>
Cornerstone Properties Inc.
Quarterly Fact Sheet
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
1999 Common Dividends Record Date Payment Date
<S> <C> <C> <C> <C>
1st Quarter 1999 1/29/1999 2/26/1999
2nd Quarter 1999 4/30/1999 5/31/1999
3rd Quarter 1999 7/30/1999 8/31/1999
4th Quarter 1999 10/29/1999 11/30/1999
- -------------------------------------------------------------------------------------------------
Earnings Release/Quarterly Conference Call
1st Quarter 1999 5/4/1999
2nd Quarter 1999 8/3/1999
3rd Quarter 1999 11/2/1999
4th Quarter 1999 2/24/2000
- ------------------------------------------------------------------------------------------------------------------------------------
Quarter to Date Year to Date
4th Quarter Results 1998 1997 1998 1997
FFO Per Share $ 0.37 $ 0.34 $ 1.45 $ 1.28
AFFO Per Share $ 0.35 $ 0.32 $ 1.37 $ 1.19
FAD Per Share $ 0.31 $ 0.29 $ 1.25 $ 1.16
FFO Payout Ratio 81% 88% 83% 94%
AFFO Payout Ratio 86% 94% 88% 101%
FAD Payout Ratio 97% 103% 96% 103%
Same Store NOI Growth NA NA 3.00% 0.93%
EBITDA Interest Coverage 3.27 3.24 3.36 3.02
Fixed Charge Coverage 2.60 3.02 3.03 2.32
- ------------------------------------------------------------------------------------------------------------------------------------
Recurring Leasing Costs Per Square Foot Leased(1) $ 7.98 $ 10.08 $ 8.98 $ 7.43
Non-Recurring Leasing Costs Per Square Foot Leased(1) $ 19.98 $ 5.48 $ 22.48 $ 8.25
Recurring Capital Expenditures Per Square Foot(1)(2) $ 0.15 $ 0.12 $ 0.15 $ 0.09
Non-Recurring Capital Expenditures Per Square Foot(1)(2) $ 0.31 $ 0.03 $ 0.13 $ 0.07
- ------------------------------------------------------------------------------------------------------------------------------------
Parking Revenues (included in Office and Parking) $ 5,463,000 $ 3,544,246 $ 20,657,491 $ 8,123,621
Parking Expense (included in Building Operating Expense) $ 752,898 $ 472,221 $ 2,851,608 $ 1,021,262
Net Parking Income $ 4,710,102 $ 3,072,025 $ 17,805,883 $ 7,102,359
- ------------------------------------------------------------------------------------------------------------------------------------
Straight Line Rents $ 4,151,000 $ 1,950,779 $ 14,543,000 $ 2,697,207
- ------------------------------------------------------------------------------------------------------------------------------------
Expiring Rents $ 27.57 NA $ 27.95 NA
Rents on New leases $ 35.72 NA $ 32.24 NA
Percentage Increase 30% NA 15% NA
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Leasing and capital expenditures for 1997 have been restated to reflect the
sale of The Frick Building in April of 1998
(2) Capital expenditures per square foot are reported on an annualized basis
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o FFO Calculation
<PAGE>
Cornerstone Properties Inc.
Funds From Operations
December 31, 1998 and 1997
<TABLE>
<CAPTION>
-------------------------------------------------------------------
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1998 1997 1998 1997
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Income $ 22,501 $ 15,881 $ 83,465 $ 37,547
NAREIT Adjustments:
Depreciation and Amortization 16,717 10,113 59,278 30,978
Minority Adjustments (705) (507) (2,120) (1,551)
Unconsolidated Depreciation 500 - 4,054 -
Unrealized Gain - - - (99)
(Gain) Loss on Sale of Assets (248) - 2,076 -
Extraordinary Losses 2,034 - 4,303 54
Other Adjustments:
Amortization on Rent Notes 398 476 1,531 1,379
Severance Payments 478 - 478 -
Minority Interest Allocated to Unitholders 1,424 - 2,850 -
---------------------------------------------------------------
Funds From Operations $ 43,099 $ 25,963 $ 155,915 $ 68,308
Interest Expense On Convertible Note 186 200 790 792
---------------------------------------------------------------
Funds From Operations $ 43,285 $ 26,163 $ 156,705 $ 69,100
===============================================================
Weighted Average Diluted Shares/Units Outstanding 117,272 77,676 108,052 54,192
FFO Per Share/Unit $ 0.37 $ 0.34 $ 1.45 $ 1.28
===============================================================
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Table of Properties
<PAGE>
Cornerstone Properties Inc.
Table of Properties
As of December 31, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Remaining
Region Property Total Rentable Cornerstone Year Current Total Avg Term
Name Name Square Feet Interest (1) Constructed Occupancy Leases (in Years)
- ------------------------------------------------------------------------------------------------------------------------------------
Boston, Massachusetts
<S> <C> <C> <C> <C> <C> <C> <C>
(2)Sixty State Street 823,014 100.0% 1979 99% 35 8.5
500 Boylston Street 714,636 91.5% 1988 100% 13 6.2
222 Berkeley Street 531,184 91.5% 1991 100% 27 6.3
125 Summer Street 463,691 100.0% 1989 97% 23 3.9
(3)One Memorial Drive 352,764 100.0% 1985 100% 12 5.9
--------- --------------------------
Region Total 2,885,289 99% 110 6.5
San Mateo County, California
(4)Bayhill (4 buildings) 513,910 100.0% 1982 - 1987 88% 39 4.3
(4)Peninsula Office Park (7 buildings) 493,214 100.0% 1971 - 1998 98% 39 5.9
(4)Seaport Centre 463,142 100.0% 1988 65% 9 6.7
(4)Bay Park Plaza (2 buildings) 257,058 100.0% 1985 - 1998 97% 19 5.7
(4)One Bay Plaza 176,533 100.0% 1979 93% 33 2.5
(4)Belmont Shores 141,643 100.0% 1983 97% 15 3.9
(4)1300 South El Camino 84,441 100.0% 1986 100% 12 3.9
(4)66 Bovet 43,968 100.0% 1968 87% 14 2.5
--------- --------------------------
Region Total 2,173,909 88% 180 5.1
East Bay, California
(4)Corporate Centre (2 buildings) 329,604 100.0% 1985 - 1987 97% 58 3.6
(4)ADP Plaza (2 buildings) 299,591 100.0% 1987 - 1989 93% 29 3.3
(4)PeopleSoft Plaza 279,931 100.0% 1984 99% 6 8.1
(4)Norris Tech Center (3 buildings) 260,513 100.0% 1984 - 1998 96% 6 5.9
(4)Golden Bear Center 160,587 100.0% 1986 96% 18 4.7
(4)2700 Ygnacio Valley Road 103,214 100.0% 1984 96% 24 3.0
(4)Park Plaza 87,040 100.0% 1986 86% 8 1.8
(4)1600 South Main 83,277 100.0% 1983 95% 19 2.2
(4)Foothill Corporate Center 70,355 100.0% 1982 98% 22 1.8
--------- --------------------------
Region Total 1,674,112 96% 190 4.5
Atlanta, Georgia
(5)191 Peachtree Street 1,215,288 80.0% 1991 98% 34 7.4
200 Galleria 432,698 100.0% 1985 95% 56 3.2
--------- --------------------------
Region Total 1,647,986 97% 90 6.4
Seattle, Washington
(6)Washington Mutual Tower 1,154,560 50.0% 1988 99% 96 5.8
(4)110 Atrium Place 213,854 100.0% 1981 97% 26 2.7
(4)Island Corporate Center 100,075 100.0% 1987 96% 20 2.9
--------- --------------------------
Region Total 1,468,489 99% 142 5.2
Santa Clara County, California
(4)(7)Pruneyard Office (3 buildings) 354,005 100.0% 1971 - 1999 99% 71 4.9
(4)10 Almaden 293,685 100.0% 1989 100% 25 6.5
(4)Pruneyard Shopping Center 252,210 100.0% 1970s 95% 51 7.3
(4)Embarcadero Place (4 buildings) 192,108 100.0% 1984 100% 14 4.0
(4)(8)Pruneyard Inn 90,000 100.0% 1989
(4)First American Plaza 82,596 100.0% 1971 98% 18 3.6
(4)490 California 24,539 100.0% 1985 100% 3 5.2
--------- --------------------------
Region Total 1,289,143 99% 182 5.6
Denver, Colorado
One Norwest Center 1,187,752 100.0% 1983 97% 47 7.7
--------- --------------------------
Region Total 1,187,752 97% 47 7.7
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Table of Properties
As of December 31, 1998
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
Remaining
Region Property Total Rentable Cornerstone Year Current Total Avg Term
Name Name Square Feet Interest (1) Constructed Occupancy Leases (in Years)
-----------------------------------------------------------------------------------------------------------------------------
San Francisco, California
<S> <C> <C> <C> <C> <C> <C> <C>
(4)120 Montgomery 410,902 66.7% 1955 95% 99 3.3
(4)One Post 389,660 50.0% 1969 99% 48 6.1
(9)201 California 240,230 100.0% 1980 100% 13 2.4
(4)188 Embarcadero 85,209 100.0% 1985 99% 13 4.1
--------- --------------------------
Region Total 1,126,001 98% 173 4.1
Minneapolis, Minnesota
(10)Norwest Center 1,118,062 50.0% 1988 100% 30 10.9
--------- --------------------------
Region Total 1,118,062 100% 30 10.9
Washington, D.C./Alexandria, Virginia
(11)Market Square (2 buildings) 688,709 70.0% 1990 96% 48 7.8
99 Canal Center 137,945 100.0% 1986 98% 18 3.4
TransPotomac Plaza 5 92,980 100.0% 1983 96% 10 5.7
11 Canal Center 70,365 100.0% 1986 95% 7 7.4
--------- --------------------------
Region Total 989,999 96% 83 6.9
Suburban Chicago, Illinois
(12)Corporate 500 Centre (4 buildings) 678,885 100.0% 1986/1990 97% 41 5.5
One Lincoln Centre 297,067 100.0% 1986 90% 39 2.2
--------- --------------------------
Region Total 975,952 95% 80 4.5
Santa Monica/West Los Angeles, California
(4)West Wilshire (2 buildings) 235,781 100.0% 1960 - 1976 90% 50 4.0
(9)Wilshire Palisades 186,714 100.0% 1981 99% 14 3.8
(4)(13)Janss Court 125,556 100.0% 1989 97% 20 4.2
(4)Searise Office Tower 122,292 100.0% 1975 94% 30 5.0
(4)Commerce Park 94,252 100.0% 1977 79% 12 5.1
(4)429 Santa Monica 81,414 100.0% 1982 81% 29 2.1
--------- --------------------------
Region Total 846,009 92% 155 4.1
Orange County, California
(4)Bixby Ranch 277,289 100.0% 1987 98% 46 3.3
(4)18301 Von Karman 219,537 100.0% 1991 64% 29 3.1
(4)2677 North Main 212,542 100.0% 1987 81% 19 2.9
--------- --------------------------
Region Total 709,368 82% 94 3.2
Charlotte, North Carolina
Charlotte Plaza 612,728 100.0% 1982 99% 42 6.0
--------- --------------------------
Region Total 612,728 99% 42 6.0
Arizona
(4)Gateway (2 buildings) 212,222 100.0% 1984 - 1985 92% 33 2.6
(4)Scottsdale Centre 164,469 100.0% 1985 94% 46 3.0
(4)Biltmore Lakes 207,489 100.0% 1982 96% 45 3.0
--------- --------------------------
Region Total 584,180 94% 124 2.9
San Diego, California
(4)Centerside II 286,941 100.0% 1987 94% 45 3.5
(4)Crossroads 133,950 100.0% 1983 99% 11 4.5
--------- --------------------------
Region Total 420,891 95% 56 3.8
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Table of Properties
As of December 31, 1998
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
Remaining
Region Property Total Rentable Cornerstone Year Current Total Avg Term
Name Name Square Feet Interest (1) Constructed Occupancy Leases (in Years)
- ------------------------------------------------------------------------------------------------------------------------------------
Los Angeles, California
<S> <C> <C> <C> <C> <C> <C> <C>
(4)700 North Brand 202,785 100.0% 1981 94% 18 4.8
(4)Tri-Center Plaza 141,946 100.0% 1990 96% 13 4.3
(4)Warner Park Center 58,798 100.0% 1986 98% 9 2.0
--------- --------------------------
Region Total 403,529 95% 40 4.2
New York City, New York
527 Madison Avenue 215,332 100.0% 1986 94% 18 4.9
Tower 56 163,633 100.0% 1983 99% 43 2.9
--------- --------------------------
Region Total 378,965 96% 61 4.0
Conejo Valley (Ventura), California
(4)Westlake Spectrum (2 buildings) 118,990 100.0% 1990 100% 14 2.7
(4)Agoura Hills 115,265 100.0% 1987 88% 9 2.8
--------- --------------------------
Region Total 234,255 94% 23 2.7
Other Regions
(4)U.S. West (Murray, Utah) 136,608 100.0% 1985 86% 11 2.9
(4)Exposition Centre (Sacramento, CA) 72,547 100.0% 1984 65% 9 3.3
--------- --------------------------
Region Total 209,155 79% 20 3.0
---------- --------------------------
Total Portfolio 20,935,774 96% 1,922 5.4
(14)Minority Interest Adjustment (684,784)
---------- ---------
Cornerstone Portfolio 20,250,990 95%
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Table of Properties
Footnotes
_______________________
(1) Unless noted below, cash flow and residual proceeds will be distributed to
Cornerstone according to its percentage interest.
(2) On December 31, 1997, the Company purchased the second mortgage on Sixty
State Street. The mortgage is a cash flow mortgage through which all the
economic benefits/risks (subject to the first mortgage) will inure to the
Company. The Company controls all major decisions regarding management and
leasing. The total purchase price for the second mortgage was $131.5
million.
(3) The Property was acquired by the Company in April 1998.
(4) Property acquired as a result of the Wilson acquisition in December 1998.
(5) While the Companys stated interest in the partnership that owns 191
Peachtree Street is 80%, its economic interest is significantly larger
since it has acquired the first mortgage note on the Property in the amount
of $145 million, which earns interest at 9.375%, and will receive a
priority distribution on its acquired capital base. In 1998, the partner in
the transaction, CH Associates, Ltd., received an annual incentive
distribution of $250,000 which the Company expects it will continue to
receive under the partnership agreement through February 28, 2000, with the
Company receiving the remainder of the cash flow of the property.
(6) While the Companys stated interest in the partnership which owns Washington
Mutual Tower is 50%, its economic interest in the Property is significantly
larger because of priority distributions it receives on its invested
capital base. For the year ended December 31, 1998 the Company received
100% of the cash distributions from the partnership that owns Washington
Mutual Tower.
(7) Pruneyard Place is under construction with an expected completion date of
mid 1999. The building is entirely pre-leased.
(8) The Pruneyard Inn is a 118-room three-story hotel. The property is
currently undergoing a 25,000 square foot expansion, which will accommodate
54 new rooms.
(9) The Property was acquired by the Company in June 1998.
(10) While the Companys stated interest in the partnership which owns Norwest
Center is 50%, its economic interest in the Property is significantly
larger because of priority distributions it receives on its invested
capital base. For the year ended December 31, 1998, the Companys share of
earnings and cash distributions from the partnership that owns Norwest
Center was 77.9%.
(11) During 1998, through a series of transactions, the Company acquired
partnership interests with a stated interest of approximately 70% in the
partnerships that own Market Square. The Companys economic interest is
significantly larger since it has acquired the first mortgage note on the
Property in the amount of $181 million which earns interest at 9.75%, and
will receive a priority distribution on its acquired capital base. In
addition, the Company acquired a buffer loan, with accrued principal and
interest of $49.0 million at purchase, which accrues interest at a rate of
11% per annum and is payable from cash flow, refinancing or sales proceeds
from Market Square in excess of the first mortgage. During the year ended
December 31, 1998, the Company received 100% of the cash flow from the
Property.
(12) The Property was acquired by the Company in January 1998.
(13) Janss Court is a seven-story, 125,000 square foot class A mixed use
building. Along with 92,000 square feet of retail and office space, Janss
Court offers 32 apartments for a total of 33,000 rentable square feet of
residential space.
(14) Rentable square feet include an adjustment for the interest of a joint
venture or minority partner. Calculations are based on the partners
percentage interest in the cash flows of the property.
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Top Ten Tenants Schedule
<PAGE>
Cornerstone Properties Inc.
Top Ten Tenants Schedule
As of December 31, 1998
- --------------------------------------------------------------------------------
The Company's tenants include local, regional, and international companies
engaged in a wide variety of businesses. The following table sets forth, as of
December 31, 1998, information concerning the ten largest tenants (ranked by
Full Service Straight-Line Rent, adjusted for the interest of a joint venture or
minority partner, as of that date) occupying the Properties. "Full Service
Straight-Line Rent" is Straight-Line Rent plus annual operating expense
recoveries. "Straight-Line Rent" means the annual average of all actual rent
required to be paid through the term of the lease, calculated in accordance with
GAAP. Full Service Straight-Line Rent does not reflect the cost of any leasing
commissions or tenant improvements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Straight-Line Expense Full Service Percent Scheduled Rentable
Tenant Rent Recoveries Straight-Line Rent of Total Expiration Square Feet
--------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(1)(3)(4)Norwest Corporation [Wells Fargo] $ 19,006,195 $ 9,742,586 $ 28,748,781 5% Mar-99 14,659
Aug-01 7,200
Oct-01 1,796
Mar-02 12,898
Feb-03 13,191
Jul-03 143,103
Aug-04 29,810
Oct-04 5,007
Jul-13 401,735
Aug-18 351,391
-----------
980,790
(1)(4)Massachusetts Financial Services 9,015,212 4,195,090 13,210,302 2% Feb-03 328,540
(1)Wachovia Bank 9,061,416 3,333,240 12,394,656 2% Sep-03 7,730
Dec-08 380,442
-----------
388,172
(1)Hale & Dorr 7,957,404 3,992,607 11,950,011 2% Jun-13 296,028
(1)King & Spalding 8,168,292 2,760,336 10,928,628 2% Mar-06 305,267
(1)Deloitte & Touche 7,643,072 1,730,572 9,373,644 2% Feb-99 15,064
Oct-99 129,614
Jun-08 84,947
-----------
229,625
(1)(4)The New England Life 4,730,957 2,547,352 7,278,309 1% Sep-08 199,055
(2)Perkins Coie 6,378,103 503,193 6,881,296 1% Dec-99 10,436
Jul-03 6,811
Jul-04 23,775
Dec-11 199,110
-----------
240,132
(2)First Union 6,188,976 71,808 6,260,784 1% Mar-99 23,190
Jun-00 27,210
Aug-00 22,884
Mar-01 22,520
Aug-01 46,097
Feb-02 23,421
Sep-02 22,366
Aug-08 46,072
Mar-09 23,105
Mar-10 46,768
Mar-11 47,542
Apr-14 3,905
-----------
355,080
(1)(4)Houghton Mifflin 3,162,483 2,916,682 6,079,165 1% Feb-07 225,883
--------------------------------------------------------- -----------
Total Top 10 Tenants $ 81,312,110 $ 31,793,466 $ 113,105,576 20% 3,548,572
========================================================= ===========
------------------------------------------------- -----------
(4)Total Portfolio $ 455,603,405 $ 103,878,253 $ 559,481,658 19,233,939
================================================= ===========
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Top Ten Tenants Schedule
Footnotes
____________________________
(1) Net Lease.
(2) Gross Lease.
(3) Norwest Corporation [Wells Fargo] includes all space associated with
Norwest Corporation, Norwest Bank Denver N.A. and Wells Fargo Bank.
(4) Straight-Line Rent and rentable square feet include an adjustment for the
interest of a joint venture or minority partner. Calculations are based on
the partners 1998 percentage participation in the cash flows of the
property. Note: Prior supplemental packages did not include an adjustment
for minority interest in the schedule of Top Ten Tenants.
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Historical Occupancy Schedule
<PAGE>
Cornerstone Properties Inc.
Historical Occupancy Schedule
As of December 31, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Region Total Rentable
Name Square Feet 1994 1995 1996 1997 1998
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Boston, Massachusetts 2,885,289 -- 94% 100% 99% 99%
San Mateo County, California 2,173,909 -- -- -- -- 88%
East Bay, California 1,674,112 -- -- -- -- 96%
Atlanta, Georgia 1,647,986 -- -- -- 94% 97%
Seattle, Washington 1,468,489 97% 97% 97% 97% 99%
(1)Santa Clara County, California 1,199,143 -- -- -- -- 99%
Denver, Colorado 1,187,752 96% 98% 99% 99% 97%
San Francisco, California 1,126,001 -- -- -- -- 98%
Minneapolis, Minnesota 1,118,062 100% 100% 100% 98% 100%
Washington, D.C./Alexandria, Virginia 989,999 -- -- -- 95% 96%
Suburban Chicago, Illinois 975,952 -- -- 91% 96% 95%
Santa Monica/West Los Angeles, California 846,009 -- -- -- -- 92%
Orange County, California 709,368 -- -- -- -- 82%
Charlotte, North Carolina 612,728 -- -- -- 94% 99%
Arizona 584,180 -- -- -- -- 94%
San Diego, California 420,891 -- -- -- -- 95%
Los Angeles, California 403,529 -- -- -- -- 95%
New York City, New York 378,965 -- 91% 96% 99% 96%
Conejo Valley (Ventura), California 234,255 -- -- -- -- 94%
(2)Other Regions 209,155 -- -- -- -- 79%
----------- ------------------------------------------------------------
(3)TOTAL PORTFOLIO 20,845,774 98% 98% 98% 97% 96%
</TABLE>
(1)The rentable area associated with the Pruneyard Inn (90,000sf) is not
included in the occupancy calculation.
(2)Other Regions include the U.S. West building in Murray, Utah and the
Exposition Centre in Sacramento, CA.
(3)1996 and 1997 occupancy has been restated to reflect the 1998 sale of the
Frick Building.
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Net Rent and Net Effective Rent Schedule
<PAGE>
Cornerstone Properties Inc.
Net Rent and Net Effective Rent Schedule
As of December 31, 1998
- --------------------------------------------------------------------------------
The following tables show the average annual Net Rent and the average annual Net
Effective Rent (each as defined below) per square foot occupied for each of the
Properties for the periods presented during which such Property was owned by the
Company. "Net Rent" as used herein means actual billed rent less Recoveries.
"Net Effective Rent" as used herein means (i) rent determined for each year on a
straight-line basis through the term of the lease, less (ii) Recoveries and the
amortization of deferred leasing costs (tenant improvements, leasing
commissions, and other tenant inducements). Recoveries includes base stops in
gross leases. Amounts do not include the properties acquired as a result of the
Wilson acquisition on 12/16/98 and held for 16 days during the period.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Total Rentable
Property Name Square Feet 1998 1997 1996 1995 1994
---------------------------------------------------------------------- ---------------------------------------------------
Average Annual Net Rent (per square foot occupied)
--------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
One Norwest Center 1,187,752 $ 12.54 $ 12.46 $ 12.08 $ 11.78 $ 11.61
Norwest Center 1,118,062 $ 18.91 $ 18.29 $ 17.94 $ 17.82 $ 17.25
Washington Mutual Tower 1,154,560 $ 15.83 $ 15.77 $ 15.98 $ 16.17 $ 15.27
125 Summer Street 463,691 $ 22.15 $ 21.27 $ 23.24 $ 22.48 --
Tower 56 163,633 $ 22.29 $ 22.76 $ 20.45 -- --
One Lincoln Centre 297,067 $ 20.71 $ 19.60 $ 18.56 -- --
527 Madison Avenue 215,332 $ 31.98 $ 36.55 $ 35.47 -- --
191 Peachtree Street 1,215,288 $ 20.76 $ 21.07 -- -- --
Market Square 688,709 $ 26.27 -- -- -- --
500 Boylston Street 714,636 $ 26.05 $ 25.89 -- -- --
222 Berkeley Street 531,184 $ 17.19 $ 16.68 -- -- --
Charlotte Plaza 612,728 $ 9.66 $ 9.35 -- -- --
200 Galleria 432,698 $ 14.70 $ 12.92 -- -- --
11 Canal Center 70,365 $ 14.83 $ 14.11 -- -- --
99 Canal Center 137,945 $ 15.23 $ 14.49 -- -- --
TransPotomac Plaza 5 92,980 $ 12.19 $ 12.55 -- -- --
Sixty State Street 823,014 $ 19.15 -- -- -- --
Corporate 500 Centre 678,885 $ 20.90 -- -- -- --
One Memorial Drive 352,764 $ 21.07 -- -- -- --
201 California Street 240,230 $ 11.57 -- -- -- --
Wilshire Palisades 186,714 $ 24.36 -- -- -- --
----------- ----------------------------------------------------
(1)Weighted Average 11,378,237 $ 18.77 $ 17.74 $ 17.42 $ 16.06 $ 14.65
=========== ====================================================
Average Annual Net Effective Rents (per square foot occupied) 1998 1997 1996 1995 1994
------------------------------------------------------------- ----------------------------------------------------
One Norwest Center 1,187,752 $ 11.96 $ 11.66 $ 10.80 $ 10.56 $ 10.25
Norwest Center 1,118,062 $ 17.73 $ 17.23 $ 17.43 $ 17.31 $ 17.00
Washington Mutual Tower 1,154,560 $ 15.10 $ 12.02 $ 11.80 $ 11.83 $ 11.03
125 Summer Street 463,691 $ 19.66 $ 20.00 $ 22.27 $ 23.33 --
Tower 56 163,633 $ 22.15 $ 21.56 $ 21.17 -- --
One Lincoln Centre 297,067 $ 20.02 $ 19.76 $ 19.70 -- --
527 Madison Avenue 215,332 $ 33.23 $ 36.89 $ 30.99 -- --
191 Peachtree Street 1,215,288 $ 23.86 $ 24.26 -- -- --
Market Square 688,709 $ 28.48 -- -- -- --
500 Boylston Street 714,636 $ 26.27 $ 26.08 -- -- --
222 Berkeley Street 531,184 $ 18.72 $ 18.08 -- -- --
Charlotte Plaza 612,728 $ 10.00 $ 9.76 -- -- --
200 Galleria 432,698 $ 14.93 $ 13.52 -- -- --
11 Canal Center 70,365 $ 15.74 $ 14.72 -- -- --
99 Canal Center 137,945 $ 15.87 $ 15.00 -- -- --
TransPotomac Plaza 5 92,980 $ 13.37 $ 14.29 -- -- --
Sixty State Street 823,014 $ 23.14 -- -- -- --
Corporate 500 Centre 678,885 $ 22.37 -- -- -- --
One Memorial Drive 352,764 $ 23.32 -- -- -- --
201 California Street 240,230 $ 11.73 -- -- -- --
Wilshire Palisades 186,714 $ 26.04 -- -- -- --
---------- ----------------------------------------------------
(1)Weighted Average 11,378,237 $ 19.50 $ 17.55 $ 15.71 $ 14.37 $ 12.69
========== ====================================================
</TABLE>
(1)1996 and 1997 rent has been restated to reflect the 1998 sale of the Frick
Building.
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Lease Expiration Schedule
<PAGE>
Cornerstone Properties Inc.
Lease Expiration Schedule
The following table sets forth certain categories of information relating to
lease expirations for all of the Properties owned as of December 31, 1998.
<TABLE>
<CAPTION>
REGION NAME CATEGORY 1999 2000 2001 2002
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Portfolio - All Properties Total (7) Square feet expiring (1) 1,814,970 sf 1,774,550 sf 1,928,531 sf 2,751,615 sf
Full service St-Line rent (2) $ 46,086,712 $ 43,611,395 $ 56,969,565 $ 72,182,531
Minority Interest Adjustment (3) Square feet expiring (1) 53,851 sf 50,166 sf 27,798 sf 60,148 sf
Full service St-Line rent (2) $ 1,441,303 $ 1,375,946 $ 801,132 $ 1,571,496
Cornerstone Portfolio Square feet expiring (1) (3) 1,761,119 sf 1,724,384 sf 1,900,733 sf 2,691,467 sf
Full service St-Line rent (2) (3) $ 44,645,410 $ 42,235,449 $ 56,168,433 $ 70,611,035
Full service St-Line rent per sq. ft. $ 25.35 $ 24.49 $ 29.55 $ 26.24
% Full service St-Lined rent 7.98% 7.55% 10.04% 12.62%
No. of tenant leases expiring (4) 343 317 303 299
Asking market rent per sq. ft. (5) $34.70
Operating Expenses per sq. ft. (6) $10.24
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Boston, Massachusetts Square feet expiring (1) 181,850 sf 56,235 sf 158,881 sf 477,883 sf
Full service St-Line rent (2) $ 7,445,173 $ 2,018,320 $ 6,027,230 $ 15,215,282
Minority Interest Adjustment (3) Square feet expiring (1) 1,142 sf 249 sf 8,415 sf 7,975 sf
Full service St-Line rent (2) $ 34,345 $ 16,018 $ 330,730 $ 256,718
Cornerstone Portfolio Square feet expiring (1) (3) 180,708 sf 55,986 sf 150,466 sf 469,908 sf
Full service St-Line rent (2) (3) $ 7,410,827 $ 2,002,303 $ 5,696,500 $ 14,958,564
Full service St-Line rent per sq. ft. $ 41.01 $ 35.76 $ 37.86 $ 31.83
% Full service St-Lined rent 7.44% 2.01% 5.72% 15.02%
No. of tenant leases expiring (4) 11 8 15 19
Asking market rent per sq. ft. (5) $ 50.68
Operating Expenses per sq. ft. (6) $ 13.74
- ------------------------------------------------------------------------------------------------------------------------------------
San Mateo County, California Square feet expiring (1) 222,305 sf 190,252 sf 108,954 sf 233,724 sf
Full service St-Line rent (2) $ 5,216,508 $ 5,014,104 $ 3,377,208 $ 8,107,776
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 222,305 sf 190,252 sf 108,954 sf 233,724 sf
Full service St-Line rent (2) (3) $ 5,216,508 $ 5,014,104 $ 3,377,208 $ 8,107,776
Full service St-Line rent per sq. ft. $ 23.47 $ 26.36 $ 31.00 $ 34.69
% Full service St-Lined rent 8.03% 7.72% 5.20% 12.49%
No. of tenant leases expiring (4) 25 31 21 33
Asking market rent per sq. ft. (5) $ 36.65
Operating Expenses per sq. ft. (6) $ 8.75
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY 2003 2004 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Portfolio - All Properties Total (7) Square feet expiring (1) 3,169,786 sf 1,450,354 sf 669,892 sf 1,113,593 sf
Full service St-Line rent (2) $ 94,702,701 $ 40,798,457 $ 23,182,656 $ 37,645,521
Minority Interest Adjustment (3) Square feet expiring (1) 150,589 sf 49,256 sf 6,288 sf 638 sf
Full service St-Line rent (2) $ 4,869,422 $ 1,585,446 $ 210,635 $ 14,580
Cornerstone Portfolio Square feet expiring (1) (3) 3,019,197 sf 1,401,098 sf 663,604 sf 1,112,955 sf
Full service St-Line rent (2) (3) $ 89,833,279 $ 39,213,010 $ 22,972,021 $ 37,630,941
Full service St-Line rent per sq. ft. $ 29.75 $ 27.99 $ 34.62 $ 33.81
% Full service St-Lined rent 16.06% 7.01% 4.11% 6.73%
No. of tenant leases expiring (4) 321 117 53 31
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Boston, Massachusetts Square feet expiring (1) 588,434 sf 248,693 sf 9,503 sf 35,537 sf
Full service St-Line rent (2) $ 22,496,817 $ 8,478,803 $ 291,079 $ 1,142,730
Minority Interest Adjustment (3) Square feet expiring (1) 39,100 sf 1,367 sf sf sf
Full service St-Line rent (2) $ 1,557,384 $ 43,368 $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 549,334 sf 247,326 sf 9,503 sf 35,537 sf
Full service St-Line rent (2) (3) $ 20,939,433 $ 8,435,435 $ 291,079 $ 1,142,730
Full service St-Line rent per sq. ft. $ 38.12 $ 34.11 $ 30.63 $ 32.16
% Full service St-Lined rent 21.02% 8.47% 0.29% 1.15%
No. of tenant leases expiring (4) 13 16 1 2
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
San Mateo County, California Square feet expiring (1) 312,761 sf 105,841 sf 179,683 sf 224,379 sf
Full service St-Line rent (2) $ 11,984,664 $ 3,706,014 $ 6,824,892 $ 8,363,604
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 312,761 sf 105,841 sf 179,683 sf 224,379 sf
Full service St-Line rent (2) (3) $ 11,984,664 $ 3,706,014 $ 6,824,892 $ 8,363,604
Full service St-Line rent per sq. ft. $ 38.32 $ 35.01 $ 37.98 $ 37.27
% Full service St-Lined rent 18.46% 5.71% 10.51% 12.88%
No. of tenant leases expiring (4) 29 11 10 5
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2009 and
REGION NAME CATEGORY 2007 2008 Beyond Total
- ------------------------------------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Portfolio - All Properties Total (7) Square feet expiring (1) 1,159,709 sf 1,466,471 sf 2,609,658 sf 19,909,129 sf
Full service St-Line rent (2) $ 32,924,199 $ 47,801,926 $ 85,116,419 $581,022,082
Minority Interest Adjustment (3) Square feet expiring (1) 126,249 sf 27,291 sf 122,916 sf 675,190 sf
Full service St-Line rent (2) $ 3,569,374 $ 1,008,960 $ 5,092,130 $ 21,540,424
Cornerstone Portfolio Square feet expiring (1) (3) 1,033,460 sf 1,439,180 sf 2,486,742 sf 19,233,939 sf
Full service St-Line rent (2) (3) $ 29,354,826 $ 46,792,966 $ 80,024,288 $559,481,658
Full service St-Line rent per sq. ft. $ 28.40 $ 32.51 $ 32.18 $ 29.09
% Full service St-Lined rent 5.25% 8.36% 14.30% 100.00%
No. of tenant leases expiring (4) 47 45 46 1,922
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
- ------------------------------------------------------------------------------------------------------------------------- ---------
Boston, Massachusetts Square feet expiring (1) 360,960 sf 242,983 sf 501,580 sf 2,862,539 sf
Full service St-Line rent (2) $ 11,049,070 $ 9,173,982 $ 20,117,346 $103,455,832
Minority Interest Adjustment (3) Square feet expiring (1) 24,363 sf 20,654 sf 2,505 sf 105,770 sf
Full service St-Line rent (2) $ 705,574 $ 779,788 $ 116,201 3,840,126 sf
Cornerstone Portfolio Square feet expiring (1) (3) 336,597 sf 222,329 sf 499,075 sf 2,756,769 sf
Full service St-Line rent (2) (3) $ 10,343,496 $ 8,394,193 $ 20,001,145 $ 99,615,705
Full service St-Line rent per sq. ft. $ 30.73 $ 37.76 $ 40.08 $ 36.13
% Full service St-Lined rent 10.38% 8.43% 20.08% 100.00%
No. of tenant leases expiring (4) 14 4 7 110
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
San Mateo County, California Square feet expiring (1) 6,456 sf 209,411 sf 114,128 sf 1,907,894 sf
Full service St-Line rent (2) $ 272,352 $ 8,078,424 $ 3,977,820 $ 64,923,366
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 6,456 sf 209,411 sf 114,128 sf 1,907,894 sf
Full service St-Line rent (2) (3) $ 272,352 $ 8,078,424 $ 3,977,820 $ 64,923,366
Full service St-Line rent per sq. ft. $ 42.19 $ 38.58 $ 34.85 $ 34.03
% Full service St-Lined rent 0.42% 12.44% 6.13% 100.00%
No. of tenant leases expiring (4) 1 11 3 180
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY NRA
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Portfolio - All Properties Total (7) Square feet expiring (1) 20,845,774 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) 684,784 sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 20,160,990 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
Boston, Massachusetts Square feet expiring (1) 2,885,289 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) 105,770 sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 2,779,519 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
San Mateo County, California Square feet expiring (1) 2,173,909 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 2,173,909 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Lease Expiration Schedule
REGION NAME CATEGORY 1999 2000 2001 2002
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
East Bay, California Square feet expiring (1) 146,533 sf 274,981 sf 173,410 sf 309,083 sf
Full service St-Line rent (2) $ 3,018,762 $ 5,561,304 $ 3,662,352 $ 7,082,484
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 146,533 sf 274,981 sf 173,410 sf 309,083 sf
Full service St-Line rent (2) (3) $ 3,018,762 $ 5,561,304 $ 3,662,352 $ 7,082,484
Full service St-Line rent per sq. ft. $ 20.60 $ 20.22 $ 21.12 $ 22.91
% Full service St-Lined rent 8.46% 15.59% 10.26% 19.85%
No. of tenant leases expiring (4) 40 41 38 30
Asking market rent per sq. ft. (5) $ 26.46
Operating Expenses per sq. ft. (6) $ 8.42
- ------------------------------------------------------------------------------------------------------------------------------------
Atlanta, Georgia Square feet expiring (1) 29,836 sf 76,466 sf 201,435 sf 182,245 sf
Full service St-Line rent (2) $ 574,566 $ 1,606,284 $ 5,267,292 $ 4,064,808
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 29,836 sf 76,466 sf 201,435 sf 182,245 sf
Full service St-Line rent (2) (3) $ 574,566 $ 1,606,284 $ 5,267,292 $ 4,064,808
Full service St-Line rent per sq. ft. $ 19.26 $ 21.01 $ 26.15 $ 22.30
% Full service St-Lined rent 1.22% 3.40% 11.17% 8.62%
No. of tenant leases expiring (4) 6 20 19 12
Asking market rent per sq. ft. (5) $ 28.30
Operating Expenses per sq. ft. (6) $ 8.15
- ------------------------------------------------------------------------------------------------------------------------------------
Seattle, Washington Square feet expiring (1) 229,957 sf 81,853 sf 54,848 sf 236,630 sf
Full service St-Line rent (2) $ 4,666,652 $ 1,526,855 $ 1,285,502 $ 5,225,499
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 229,957 sf 81,853 sf 54,848 sf 236,630 sf
Full service St-Line rent (2) (3) $ 4,666,652 $ 1,526,855 $ 1,285,502 $ 5,225,499
Full service St-Line rent per sq. ft. $ 20.29 $ 18.65 $ 23.44 $ 22.08
% Full service St-Lined rent 14.05% 4.60% 3.87% 15.73%
No. of tenant leases expiring (4) 44 24 15 18
Asking market rent per sq. ft. (5) $ 35.54
Operating Expenses per sq. ft. (6) $ 8.19
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY 2003 2004 2005 2006
<S> <C> <C> <C> <C> <C>
East Bay, California Square feet expiring (1) 148,012 sf 83,877 sf 65,497 sf 110,770 sf
Full service St-Line rent (2) $ 3,449,964 $ 1,965,874 $ 1,682,208 $ 1,732,476
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 148,012 sf 83,877 sf 65,497 sf 110,770 sf
Full service St-Line rent (2) (3) $ 3,449,964 $ 1,965,874 $ 1,682,208 $ 1,732,476
Full service St-Line rent per sq. ft. $ 23.31 $ 23.44 $ 25.68 $ 15.64
% Full service St-Lined rent 9.67% 5.51% 4.71% 4.86%
No. of tenant leases expiring (4) 23 7 2 2
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Atlanta, Georgia Square feet expiring (1) 92,359 sf 42,334 sf 21,508 sf 442,913 sf
Full service St-Line rent (2) $ 2,325,252 $ 1,166,112 $ 549,192 $ 15,711,444
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 92,359 sf 42,334 sf 21,508 sf 442,913 sf
Full service St-Line rent (2) (3) $ 2,325,252 $ 1,166,112 $ 549,192 $ 15,711,444
Full service St-Line rent per sq. ft. $ 25.18 $ 27.55 $ 25.53 $ 35.47
% Full service St-Lined rent 4.93% 2.47% 1.16% 33.30%
No. of tenant leases expiring (4) 15 5 5 4
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Seattle, Washington Square feet expiring (1) 349,029 sf 127,535 sf 22,983 sf 4,070 sf
Full service St-Line rent (2) $ 8,161,517 $ 2,914,488 $ 303,119 $ 111,925
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 349,029 sf 127,535 sf 22,983 sf 4,070 sf
Full service St-Line rent (2) (3) $ 8,161,517 $ 2,914,488 $ 303,119 $ 111,925
Full service St-Line rent per sq. ft. $ 23.38 $ 22.85 $ 13.19 $ 27.50
% Full service St-Lined rent 24.57% 8.77% 0.91% 0.34%
No. of tenant leases expiring (4) 27 7 3 1
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2009 and
REGION NAME CATEGORY 2007 2008 Beyond Total
- ------------------------------------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C>
East Bay, California Square feet expiring (1) 71,109 sf 211,000 sf 9,819 sf 1,604,091 sf
Full service St-Line rent (2) $ 1,476,948 $ 5,999,328 $ 47,172 $ 35,678,872
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 71,109 sf 211,000 sf 9,819 sf 1,604,091 sf
Full service St-Line rent (2) (3) $ 1,476,948 $ 5,999,328 $ 47,172 $ 35,678,872
Full service St-Line rent per sq. ft. $ 20.77 $ 28.43 $ 4.80 $ 22.24
% Full service St-Lined rent 4.14% 16.81% 0.13% 100.00%
No. of tenant leases expiring (4) 3 3 1 190
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Atlanta, Georgia Square feet expiring (1) sf 495,739 sf 15,041 sf 1,599,876 sf
Full service St-Line rent (2) $ - $ 15,911,856 $ - $ 47,176,806
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) sf 495,739 sf 15,041 sf 1,599,876 sf
Full service St-Line rent (2) (3) $ - $ 15,911,856 $ - $ 47,176,806
Full service St-Line rent per sq. ft. $ - $ 32.10 $ - $ 29.49
% Full service St-Lined rent 0.00% 33.73% 0.00% 100.00%
No. of tenant leases expiring (4) 0 4 0 90
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Seattle, Washington Square feet expiring (1) 137,888 sf 366 sf 203,983 sf 1,449,142 sf
Full service St-Line rent (2) $ 2,928,682 $ 9,406 $ 6,087,479 $ 33,221,122
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 137,888 sf 366 sf 203,983 sf 1,449,142 sf
Full service St-Line rent (2) (3) $ 2,928,682 $ 9,406 $ 6,087,479 $ 33,221,122
Full service St-Line rent per sq. ft. $ 21.24 $ 25.70 $ 29.84 $ 22.92
% Full service St-Lined rent 8.82% 0.03% 18.32% 100.00%
No. of tenant leases expiring (4) 1 1 1 142
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY NRA
- ----------------------------------------------------------------------------------------
<S> <C> <C>
East Bay, California Square feet expiring (1) 1,674,112 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 1,674,112 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Atlanta, Georgia Square feet expiring (1) 1,647,986 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 1,647,986 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Seattle, Washington Square feet expiring (1) 1,468,489 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 1,468,489 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Lease Expiration Schedule
REGION NAME CATEGORY 1999 2000 2001 2002
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Santa Clara County, California (7) Square feet expiring (1) 168,507 sf 95,075 sf 164,364 sf 54,474 sf
Full service St-Line rent (2) $ 5,025,399 $ 2,614,207 $ 4,609,629 $ 1,509,735
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 168,507 sf 95,075 sf 164,364 sf 54,474 sf
Full service St-Line rent (2) (3) $ 5,025,399 $ 2,614,207 $ 4,609,629 $ 1,509,735
Full service St-Line rent per sq. ft. $ 29.82 $ 27.50 $ 28.05 $ 27.71
% Full service St-Lined rent 14.03% 7.30% 12.87% 4.21%
No. of tenant leases expiring (4) 36 35 34 17
Asking market rent per sq. ft. (5) $ 36.11
Operating Expenses per sq. ft. (6) $ 8.98
- ------------------------------------------------------------------------------------------------------------------------------------
Denver, Colorado Square feet expiring (1) 38,598 sf 124,001 sf 60,785 sf 138,233 sf
Full service St-Line rent (2) $ 640,633 $ 1,870,247 $ 1,044,093 $ 2,159,716
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 38,598 sf 124,001 sf 60,785 sf 138,233 sf
Full service St-Line rent (2) (3) $ 640,633 $ 1,870,247 $ 1,044,093 $ 2,159,716
Full service St-Line rent per sq. ft. $ 16.60 $ 15.08 $ 17.18 $ 15.62
% Full service St-Lined rent 2.87% 8.38% 4.68% 9.68%
No. of tenant leases expiring (4) 4 7 7 14
Asking market rent per sq. ft. (5) $ 26.25
Operating Expenses per sq. ft. (6) $ 6.50
- ------------------------------------------------------------------------------------------------------------------------------------
San Francisco, California Square feet expiring (1) 236,588 sf 80,314 sf 91,631 sf 124,944 sf
Full service St-Line rent (2) $ 6,129,613 $ 1,928,172 $ 2,103,576 $ 3,381,036
Minority Interest Adjustment (3) Square feet expiring (1) 45,963 sf 25,847 sf 18,328 sf 40,373 sf
Full service St-Line rent (2) $ 1,222,182 $ 612,334 $ 436,268 $ 1,041,070
Cornerstone Portfolio Square feet expiring (1) (3) 190,625 sf 54,468 sf 73,304 sf 84,571 sf
Full service St-Line rent (2) (3) $ 4,907,431 $ 1,315,838 $ 1,667,308 $ 2,339,966
Full service St-Line rent per sq. ft. $ 25.74 $ 24.16 $ 22.75 $ 27.67
% Full service St-Lined rent 22.87% 6.13% 7.77% 10.90%
No. of tenant leases expiring (4) 38 20 18 29
Asking market rent per sq. ft. (5) $ 40.99
Operating Expenses per sq. ft. (6) $ 12.34
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY 2003 2004 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Santa Clara County, California (7) Square feet expiring (1) 182,856 sf 75,889 sf 17,346 sf 52,249 sf
Full service St-Line rent (2) $ 6,716,779 $ 1,965,491 $ 625,994 $ 1,645,590
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 182,856 sf 75,889 sf 17,346 sf 52,249 sf
Full service St-Line rent (2) (3) $ 6,716,779 $ 1,965,491 $ 625,994 $ 1,645,590
Full service St-Line rent per sq. ft. $ 36.73 $ 25.90 $ 36.09 $ 31.50
% Full service St-Lined rent 18.75% 5.49% 1.75% 4.59%
No. of tenant leases expiring (4) 28 7 4 5
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Denver, Colorado Square feet expiring (1) 182,284 sf 129,147 sf sf sf
Full service St-Line rent (2) $ 3,562,596 $ 2,433,836 $ - $ -
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 182,284 sf 129,147 sf sf sf
Full service St-Line rent (2) (3) $ 3,562,596 $ 2,433,836 $ - $ -
Full service St-Line rent per sq. ft. $ 19.54 $ 18.85 $ - $ -
% Full service St-Lined rent 15.96% 10.90% 0.00% 0.00%
No. of tenant leases expiring (4) 7 4 0 0
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
San Francisco, California Square feet expiring (1) 293,383 sf 21,170 sf 23,689 sf 1,915 sf
Full service St-Line rent (2) $ 8,747,868 $ 591,792 $ 896,016 $ 43,740
Minority Interest Adjustment (3) Square feet expiring (1) 70,745 sf 9,115 sf 2,116 sf 638 sf
Full service St-Line rent (2) $ 2,053,270 $ 254,370 $ 65,928 $ 14,580
Cornerstone Portfolio Square feet expiring (1) (3) 222,638 sf 12,055 sf 21,574 sf 1,277 sf
Full service St-Line rent (2) (3) $ 6,694,598 $ 337,422 $ 830,088 $ 29,160
Full service St-Line rent per sq. ft. $ 30.07 $ 27.99 $ 38.48 $ 22.84
% Full service St-Lined rent 31.19% 1.57% 3.87% 0.14%
No. of tenant leases expiring (4) 52 5 4 1
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2009 and
REGION NAME CATEGORY 2007 2008 Beyond Total
- ------------------------------------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Santa Clara County, California (7) Square feet expiring (1) 4,867 sf 34,985 sf 331,375 sf 1,181,987 sf
Full service St-Line rent (2) $ 154,862 $ 872,599 $ 10,086,079 $ 35,826,363
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 4,867 sf 34,985 sf 331,375 sf 1,181,987 sf
Full service St-Line rent (2) (3) $ 154,862 $ 872,599 $ 10,086,079 $ 35,826,363
Full service St-Line rent per sq. ft. $ 31.82 $ 24.94 $ 30.44 $ 30.31
% Full service St-Lined rent 0.43% 2.44% 28.15% 100.00%
No. of tenant leases expiring (4) 2 5 9 182
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Denver, Colorado Square feet expiring (1) 76,470 sf sf 407,151 sf 1,156,669 sf
Full service St-Line rent (2) $ 1,597,948 $ - $ 9,009,763 $ 22,318,832
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 76,470 sf sf 407,151 sf 1,156,669 sf
Full service St-Line rent (2) (3) $ 1,597,948 $ - $ 9,009,763 $ 22,318,832
Full service St-Line rent per sq. ft. $ 20.90 $ - $ 22.13 $ 19.30
% Full service St-Lined rent 7.16% 0.00% 40.37% 100.00%
No. of tenant leases expiring (4) 2 0 2 47
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
San Francisco, California Square feet expiring (1) 203,772 sf 19,911 sf 3,431 sf 1,100,748 sf
Full service St-Line rent (2) $ 5,727,600 $ 687,516 $ 33,768 $ 30,270,697
Minority Interest Adjustment (3) Square feet expiring (1) 101,886 sf 6,637 sf 1,386 sf 323,033 sf
Full service St-Line rent (2) $ 2,863,800 $ 229,172 $ 16,884 8,809,858 sf
Cornerstone Portfolio Square feet expiring (1) (3) 101,886 sf 13,274 sf 2,045 sf 777,715 sf
Full service St-Line rent (2) (3) $ 2,863,800 $ 458,344 $ 16,884 $ 21,460,839
Full service St-Line rent per sq. ft. $ 28.11 $ 34.53 $ 8.26 $ 27.59
% Full service St-Lined rent 13.34% 2.14% 0.08% 100.00%
No. of tenant leases expiring (4) 4 1 1 173
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY NRA
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Santa Clara County, California (7) Square feet expiring (1) 1,199,143 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 1,199,143 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Denver, Colorado Square feet expiring (1) 1,187,752 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 1,187,752 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- --------------------------------------------------------------------------------
San Francisco, California Square feet expiring (1) 1,126,001 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) 323,033 sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 802,968 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Lease Expiration Schedule
REGION NAME CATEGORY 1999 2000 2001 2002
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Minneapolis, Minnesota Square feet expiring (1) 30,525 sf 108,918 sf 4,774 sf 53,390 sf
Full service St-Line rent (2) $ 836,087 $ 3,382,778 $ 154,452 $ 1,238,499
Minority Interest Adjustment (3) Square feet expiring (1) 6,746 sf 24,071 sf 1,055 sf 11,799 sf
Full service St-Line rent (2) $ 184,775 $ 747,594 $ 34,134 $ 273,708
Cornerstone Portfolio Square feet expiring (1) (3) 23,779 sf 84,847 sf 3,719 sf 41,591 sf
Full service St-Line rent (2) (3) $ 651,311 $ 2,635,184 $ 120,318 $ 964,790
Full service St-Line rent per sq. ft. $ 27.39 $ 31.06 $ 32.35 $ 23.20
% Full service St-Lined rent 2.08% 8.41% 0.38% 3.08%
No. of tenant leases expiring (4) 4 4 2 3
Asking market rent per sq. ft. (5) $ 36.75
Operating Expenses per sq. ft. (6) $ 15.70
- ------------------------------------------------------------------------------------------------------------------------------------
Washington, D.C./Alexandria, Square feet expiring (1) 16,262 sf 60,323 sf 119,598 sf 59,327 sf
Virginia Full service St-Line rent (2) $ 369,420 $ 1,966,412 $ 4,007,644 $ 1,438,457
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 16,262 sf 60,323 sf 119,598 sf 59,327 sf
Full service St-Line rent (2) (3) $ 369,420 $ 1,966,412 $ 4,007,644 $ 1,438,457
Full service St-Line rent per sq. ft. $ 22.72 $ 32.60 $ 33.51 $ 24.25
% Full service St-Lined rent 1.04% 5.54% 11.30% 4.05%
No. of tenant leases expiring (4) 6 10 14 8
Asking market rent per sq. ft. (5) $ 38.74
Operating Expenses per sq. ft. (6) $ 12.38
- ------------------------------------------------------------------------------------------------------------------------------------
Suburban Chicago, Illinois Square feet expiring (1) 96,513 sf 112,180 sf 54,593 sf 135,769 sf
Full service St-Line rent (2) $ 2,587,181 $ 3,159,676 $ 1,810,716 $ 4,120,980
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 96,513 sf 112,180 sf 54,593 sf 135,769 sf
Full service St-Line rent (2) (3) $ 2,587,181 $ 3,159,676 $ 1,810,716 $ 4,120,980
Full service St-Line rent per sq. ft. $ 26.81 $ 28.17 $ 33.17 $ 30.35
% Full service St-Lined rent 9.54% 11.66% 6.68% 15.20%
No. of tenant leases expiring (4) 17 15 9 14
Asking market rent per sq. ft. (5) $ 29.08
Operating Expenses per sq. ft. (6) $ 9.14
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY 2003 2004 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Minneapolis, Minnesota Square feet expiring (1) 184,361 sf 175,447 sf 18,881 sf sf
Full service St-Line rent (2) $ 5,695,782 $ 5,826,733 $ 654,785 $ -
Minority Interest Adjustment (3) Square feet expiring (1) 40,744 sf 38,774 sf 4,173 sf sf
Full service St-Line rent (2) $ 1,258,768 $ 1,287,708 $ 144,707 $ -
Cornerstone Portfolio Square feet expiring (1) (3) 143,617 sf 136,673 sf 14,708 sf sf
Full service St-Line rent (2) (3) $ 4,437,014 $ 4,539,025 $ 510,077 $ -
Full service St-Line rent per sq. ft. $ 30.89 $ 33.21 $ 34.68 $ -
% Full service St-Lined rent 14.16% 14.48% 1.63% 0.00%
No. of tenant leases expiring (4) 4 10 1 0
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Washington, D.C./Alexandria, Square feet expiring (1) 63,312 sf 40,537 sf 187,445 sf 57,781 sf
Virginia Full service St-Line rent (2) $ 1,845,458 $ 1,547,504 $ 8,062,332 $ 2,838,998
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 63,312 sf 40,537 sf 187,445 sf 57,781 sf
Full service St-Line rent (2) (3) $ 1,845,458 $ 1,547,504 $ 8,062,332 $ 2,838,998
Full service St-Line rent per sq. ft. $ 29.15 $ 38.18 $ 43.01 $ 49.13
% Full service St-Lined rent 5.20% 4.36% 22.72% 8.00%
No. of tenant leases expiring (4) 10 6 6 2
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Suburban Chicago, Illinois Square feet expiring (1) 198,635 sf 13,852 sf sf 135,590 sf
Full service St-Line rent (2) $ 5,840,159 $ 402,108 $ - $ 4,330,416
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 198,635 sf 13,852 sf sf 135,590 sf
Full service St-Line rent (2) (3) $ 5,840,159 $ 402,108 $ - $ 4,330,416
Full service St-Line rent per sq. ft. $ 29.40 $ 29.03 $ - $ 31.94
% Full service St-Lined rent 21.54% 1.48% 0.00% 15.97%
No. of tenant leases expiring (4) 19 1 0 1
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2009 and
REGION NAME CATEGORY 2007 2008 Beyond Total
- ------------------------------------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C>
Minneapolis, Minnesota Square feet expiring (1) sf sf 538,573 sf 1,114,869 sf
Full service St-Line rent (2) $ - $ - $ 22,439,118 $ 40,228,233
Minority Interest Adjustment (3) Square feet expiring (1) sf sf 119,025 sf 246,386 sf
Full service St-Line rent (2) $ - $ - $ 4,959,045 8,890,440 sf
Cornerstone Portfolio Square feet expiring (1) (3) sf sf 419,548 sf 868,483 sf
Full service St-Line rent (2) (3) $ - $ - $ 17,480,073 $ 31,337,794
Full service St-Line rent per sq. ft. $ - $ - $ 41.66 $ 36.08
% Full service St-Lined rent 0.00% 0.00% 55.78% 100.00%
No. of tenant leases expiring (4) 0 0 2 30
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Washington, D.C./Alexandria, Square feet expiring (1) 69,661 sf 36,561 sf 243,747 sf 954,554 sf
Virginia Full service St-Line rent (2) $ 1,855,735 $ 1,171,776 $ 10,376,853 $ 35,480,590
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 69,661 sf 36,561 sf 243,747 sf 954,554 sf
Full service St-Line rent (2) (3) $ 1,855,735 $ 1,171,776 $ 10,376,853 $ 35,480,590
Full service St-Line rent per sq. ft. $ 26.64 $ 32.05 $ 42.57 $ 37.17
% Full service St-Lined rent 5.23% 3.30% 29.25% 100.00%
No. of tenant leases expiring (4) 6 6 9 83
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Suburban Chicago, Illinois Square feet expiring (1) 43,140 sf 110,201 sf 24,000 sf 924,473 sf
Full service St-Line rent (2) $ 1,250,280 $ 3,606,456 $ - $ 27,107,971
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 43,140 sf 110,201 sf 24,000 sf 924,473 sf
Full service St-Line rent (2) (3) $ 1,250,280 $ 3,606,456 $ - $ 27,107,971
Full service St-Line rent per sq. ft. $ 28.98 $ 32.73 $ - $ 29.32
% Full service St-Lined rent 4.61% 13.30% 0.00% 100.00%
No. of tenant leases expiring (4) 2 2 0 80
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY NRA
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Minneapolis, Minnesota Square feet expiring (1) 1,118,062 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) 246,386 sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 871,676 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Washington, D.C./Alexandria, Square feet expiring (1) 989,999 sf
Virginia Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 989,999 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Suburban Chicago, Illinois Square feet expiring (1) 975,952 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 975,952 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Lease Expiration Schedule
REGION NAME CATEGORY 1999 2000 2001 2002
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Santa Monica/West Los Angeles, Square feet expiring (1) 74,823 sf 79,583 sf 114,940 sf 178,476 sf
California Full service St-Line rent (2) $ 2,074,980 $ 2,363,010 $ 5,765,403 $ 5,269,396
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 74,823 sf 79,583 sf 114,940 sf 178,476 sf
Full service St-Line rent (2) (3) $ 2,074,980 $ 2,363,010 $ 5,765,403 $ 5,269,396
Full service St-Line rent per sq. ft. $ 27.73 $ 29.69 $ 50.16 $ 29.52
% Full service St-Lined rent 8.28% 9.43% 23.00% 21.02%
No. of tenant leases expiring (4) 30 26 25 19
Asking market rent per sq. ft. (5) $ 33.33
Operating Expenses per sq. ft. (6) $ 11.78
- ------------------------------------------------------------------------------------------------------------------------------------
Orange County, California Square feet expiring (1) 78,215 sf 98,426 sf 97,282 sf 188,839 sf
Full service St-Line rent (2) $ 1,790,592 $ 2,548,272 $ 2,138,100 $ 4,280,496
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 78,215 sf 98,426 sf 97,282 sf 188,839 sf
Full service St-Line rent (2) (3) $ 1,790,592 $ 2,548,272 $ 2,138,100 $ 4,280,496
Full service St-Line rent per sq. ft. $ 22.89 $ 25.89 $ 21.98 $ 22.67
% Full service St-Lined rent 13.28% 18.89% 15.85% 31.74%
No. of tenant leases expiring (4) 20 17 15 22
Asking market rent per sq. ft. (5) $ 26.06
Operating Expenses per sq. ft. (6) $ 8.38
- ------------------------------------------------------------------------------------------------------------------------------------
Charlotte, North Carolina Square feet expiring (1) 30,070 sf 53,325 sf 70,116 sf 76,201 sf
Full service St-Line rent (2) $ 582,480 $ 983,004 $ 1,257,312 $ 1,419,456
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 30,070 sf 53,325 sf 70,116 sf 76,201 sf
Full service St-Line rent (2) (3) $ 582,480 $ 983,004 $ 1,257,312 $ 1,419,456
Full service St-Line rent per sq. ft. $ 19.37 $ 18.43 $ 17.93 $ 18.63
% Full service St-Lined rent 5.45% 9.20% 11.77% 13.28%
No. of tenant leases expiring (4) 5 3 1 11
Asking market rent per sq. ft. (5) $ 24.15
Operating Expenses per sq. ft. (6) $ 6.90
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY 2003 2004 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Santa Monica/West Los Angeles, Square feet expiring (1) 70,944 sf 48,098 sf 63,614 sf 1,209 sf
California Full service St-Line rent (2) $ 1,991,556 $ 1,582,063 $ 1,860,456 $ 36,216
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 70,944 sf 48,098 sf 63,614 sf 1,209 sf
Full service St-Line rent (2) (3) $ 1,991,556 $ 1,582,063 $ 1,860,456 $ 36,216
Full service St-Line rent per sq. ft. $ 28.07 $ 32.89 $ 29.25 $ 29.96
% Full service St-Lined rent 7.95% 6.31% 7.42% 0.14%
No. of tenant leases expiring (4) 21 9 11 1
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Orange County, California Square feet expiring (1) 72,694 sf 7,057 sf 14,749 sf sf
Full service St-Line rent (2) $ 1,758,552 $ 189,468 $ 362,196 $ -
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 72,694 sf 7,057 sf 14,749 sf sf
Full service St-Line rent (2) (3) $ 1,758,552 $ 189,468 $ 362,196 $ -
Full service St-Line rent per sq. ft. $ 24.19 $ 26.85 $ 24.56 $ -
% Full service St-Lined rent 13.04% 1.40% 2.69% 0.00%
No. of tenant leases expiring (4) 15 1 1 0
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Charlotte, North Carolina Square feet expiring (1) 38,762 sf 113,627 sf 17,787 sf 1,222 sf
Full service St-Line rent (2) $ 744,072 $ 1,849,188 $ 318,456 $ 23,652
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 38,762 sf 113,627 sf 17,787 sf 1,222 sf
Full service St-Line rent (2) (3) $ 744,072 $ 1,849,188 $ 318,456 $ 23,652
Full service St-Line rent per sq. ft. $ 19.20 $ 16.27 $ 17.90 $ 19.36
% Full service St-Lined rent 6.96% 17.30% 2.98% 0.22%
No. of tenant leases expiring (4) 7 4 2 1
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2009 and
REGION NAME CATEGORY 2007 2008 Beyond Total
- ------------------------------------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C>
Santa Monica/West Los Angeles, Square feet expiring (1) 62,309 sf 22,721 sf 59,287 sf 776,004 sf
California Full service St-Line rent (2) $ 2,612,734 $ 729,108 $ 779,136 $ 25,064,057
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 62,309 sf 22,721 sf 59,287 sf 776,004 sf
Full service St-Line rent (2) (3) $ 2,612,734 $ 729,108 $ 779,136 $ 25,064,057
Full service St-Line rent per sq. ft. $ 41.93 $ 32.09 $ 13.14 $ 32.30
% Full service St-Lined rent 10.42% 2.91% 3.11% 100.00%
No. of tenant leases expiring (4) 6 4 3 155
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Orange County, California Square feet expiring (1) sf 11,000 sf 14,374 sf 582,636 sf
Full service St-Line rent (2) $ - $ 230,040 $ 188,844 $ 13,486,560
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) sf 11,000 sf 14,374 sf 582,636 sf
Full service St-Line rent (2) (3) $ - $ 230,040 $ 188,844 $ 13,486,560
Full service St-Line rent per sq. ft. $ - $ 20.91 $ 13.14 $ 23.15
% Full service St-Lined rent 0.00% 1.71% 1.40% 100.00%
No. of tenant leases expiring (4) 0 1 2 94
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Charlotte, North Carolina Square feet expiring (1) 9,889 sf 71,593 sf 126,052 sf 608,644 sf
Full service St-Line rent (2) $ 217,560 $ 1,331,436 $ 1,960,104 $ 10,686,720
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 9,889 sf 71,593 sf 126,052 sf 608,644 sf
Full service St-Line rent (2) (3) $ 217,560 $ 1,331,436 $ 1,960,104 $ 10,686,720
Full service St-Line rent per sq. ft. $ 22.00 $ 18.60 $ 15.55 $ 17.56
% Full service St-Lined rent 2.04% 12.46% 18.34% 100.00%
No. of tenant leases expiring (4) 1 3 4 42
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY NRA
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Santa Monica/West Los Angeles, Square feet expiring (1) 846,009 sf
California Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 846,009 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Orange County, California Square feet expiring (1) 709,368 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 709,368 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Charlotte, North Carolina Square feet expiring (1) 612,728 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 612,728 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Lease Expiration Schedule
REGION NAME CATEGORY 1999 2000 2001 2002
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Arizona Square feet expiring (1) 94,391 sf 74,723 sf 146,085 sf 97,180 sf
Full service St-Line rent (2) $ 1,843,332 $ 1,459,884 $ 3,174,444 $ 2,020,212
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 94,391 sf 74,723 sf 146,085 sf 97,180 sf
Full service St-Line rent (2) (3) $ 1,843,332 $ 1,459,884 $ 3,174,444 $ 2,020,212
Full service St-Line rent per sq. ft. $ 19.53 $ 19.54 $ 21.73 $ 20.79
% Full service St-Lined rent 16.32% 12.92% 28.10% 17.88%
No. of tenant leases expiring (4) 19 27 33 23
Asking market rent per sq. ft. (5) $ 23.77
Operating Expenses per sq. ft. (6) $ 8.44
- ------------------------------------------------------------------------------------------------------------------------------------
San Diego, California Square feet expiring (1) 44,850 sf 42,166 sf 9,275 sf 44,536 sf
Full service St-Line rent (2) $ 845,448 $ 742,788 $ 185,028 $ 860,532
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 44,850 sf 42,166 sf 9,275 sf 44,536 sf
Full service St-Line rent (2) (3) $ 845,448 $ 742,788 $ 185,028 $ 860,532
Full service St-Line rent per sq. ft. $ 18.85 $ 17.62 $ 19.95 $ 19.32
% Full service St-Lined rent 10.77% 9.46% 2.36% 10.96%
No. of tenant leases expiring (4) 16 4 6 7
Asking market rent per sq. ft. (5) $ 22.05
Operating Expenses per sq. ft. (6) $ 7.68
- ------------------------------------------------------------------------------------------------------------------------------------
Los Angeles, California Square feet expiring (1) 17,769 sf 64,867 sf 78,716 sf 42,729 sf
Full service St-Line rent (2) $ 406,908 $ 1,865,040 $ 2,037,672 $ 984,348
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 17,769 sf 64,867 sf 78,716 sf 42,729 sf
Full service St-Line rent (2) (3) $ 406,908 $ 1,865,040 $ 2,037,672 $ 984,348
Full service St-Line rent per sq. ft. $ 22.90 $ 28.75 $ 25.89 $ 23.04
% Full service St-Lined rent 4.07% 18.66% 20.39% 9.85%
No. of tenant leases expiring (4) 5 7 9 5
Asking market rent per sq. ft. (5) $ 25.44
Operating Expenses per sq. ft. (6) $ 9.65
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY 2003 2004 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Arizona Square feet expiring (1) 96,829 sf 16,446 sf 9,258 sf 7,050 sf
Full service St-Line rent (2) $ 2,039,100 $ 385,884 $ 197,772 $ 163,884
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 96,829 sf 16,446 sf 9,258 sf 7,050 sf
Full service St-Line rent (2) (3) $ 2,039,100 $ 385,884 $ 197,772 $ 163,884
Full service St-Line rent per sq. ft. $ 21.06 $ 23.46 $ 21.36 $ 23.25
% Full service St-Lined rent 18.05% 3.42% 1.75% 1.45%
No. of tenant leases expiring (4) 16 3 1 1
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
San Diego, California Square feet expiring (1) 154,526 sf 104,285 sf sf sf
Full service St-Line rent (2) $ 3,119,604 $ 2,097,864 $ - $ -
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 154,526 sf 104,285 sf sf sf
Full service St-Line rent (2) (3) $ 3,119,604 $ 2,097,864 $ - $ -
Full service St-Line rent per sq. ft. $ 20.19 $ 20.12 $ - $ -
% Full service St-Lined rent 39.73% 26.72% 0.00% 0.00%
No. of tenant leases expiring (4) 13 10 0 0
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Los Angeles, California Square feet expiring (1) 26,000 sf 70,123 sf sf 11,834 sf
Full service St-Line rent (2) $ 633,048 $ 1,758,720 $ - $ 379,368
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 26,000 sf 70,123 sf sf 11,834 sf
Full service St-Line rent (2) (3) $ 633,048 $ 1,758,720 $ - $ 379,368
Full service St-Line rent per sq. ft. $ 24.35 $ 25.08 $ - $ 32.06
% Full service St-Lined rent 6.33% 17.60% 0.00% 3.80%
No. of tenant leases expiring (4) 5 6 0 1
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2009 and
REGION NAME CATEGORY 2007 2008 Beyond Total
- ------------------------------------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C>
Arizona Square feet expiring (1) sf sf 7,694 sf 549,656 sf
Full service St-Line rent (2) $ - $ - $ 12,936 $ 11,297,448
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) sf sf 7,694 sf 549,656 sf
Full service St-Line rent (2) (3) $ - $ - $ 12,936 $ 11,297,448
Full service St-Line rent per sq. ft. $ - $ - $ 1.68 $ 20.55
% Full service St-Lined rent 0.00% 0.00% 0.11% 100.00%
No. of tenant leases expiring (4) 0 0 1 124
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
San Diego, California Square feet expiring (1) sf sf 2,293 sf 401,931 sf
Full service St-Line rent (2) $ - $ - $ - $ 7,851,264
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) sf sf 2,293 sf 401,931 sf
Full service St-Line rent (2) (3) $ - $ - $ - $ 7,851,264
Full service St-Line rent per sq. ft. $ - $ - $ - $ 19.53
% Full service St-Lined rent 0.00% 0.00% 0.00% 100.00%
No. of tenant leases expiring (4) 0 0 0 56
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Los Angeles, California Square feet expiring (1) 68,758 sf sf 2,687 sf 383,483 sf
Full service St-Line rent (2) $ 1,928,820 $ - $ - $ 9,993,924
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 68,758 sf sf 2,687 sf 383,483 sf
Full service St-Line rent (2) (3) $ 1,928,820 $ - $ - $ 9,993,924
Full service St-Line rent per sq. ft. $ 28.05 $ - $ - $ 26.06
% Full service St-Lined rent 19.30% 0.00% 0.00% 100.00%
No. of tenant leases expiring (4) 2 0 0 40
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY NRA
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Arizona Square feet expiring (1) 584,180 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 584,180 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
San Diego, California Square feet expiring (1) 420,891 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 420,891 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Los Angeles, California Square feet expiring (1) 403,529 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 403,529 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Lease Expiration Schedule
REGION NAME CATEGORY 1999 2000 2001 2002
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New York City, New York Square feet expiring (1) 20,892 sf 31,516 sf 127,306 sf 41,358 sf
Full service St-Line rent (2) $ 948,444 $ 1,380,545 $ 7,130,597 $ 2,074,668
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 20,892 sf 31,516 sf 127,306 sf 41,358 sf
Full service St-Line rent (2) (3) $ 948,444 $ 1,380,545 $ 7,130,597 $ 2,074,668
Full service St-Line rent per sq. ft. $ 45.40 $ 43.80 $ 56.01 $ 50.16
% Full service St-Lined rent 5.09% 7.41% 38.25% 11.13%
No. of tenant leases expiring (4) 7 10 13 10
Asking market rent per sq. ft. (5) $ 56.00
Operating Expenses per sq. ft. (6) $ 22.20
- ------------------------------------------------------------------------------------------------------------------------------------
Conejo Valley (Ventura), California Square feet expiring (1) 12,559 sf 65,372 sf 28,099 sf 70,226 sf
Full service St-Line rent (2) $ 262,944 $ 1,542,612 $ 634,452 $ 1,584,204
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 12,559 sf 65,372 sf 28,099 sf 70,226 sf
Full service St-Line rent (2) (3) $ 262,944 $ 1,542,612 $ 634,452 $ 1,584,204
Full service St-Line rent per sq. ft. $ 20.94 $ 23.60 $ 22.58 $ 22.56
% Full service St-Lined rent 5.19% 30.46% 12.53% 31.28%
No. of tenant leases expiring (4) 6 6 3 3
Asking market rent per sq. ft. (5) $ 23.69
Operating Expenses per sq. ft. (6) $ 8.03
- ------------------------------------------------------------------------------------------------------------------------------------
Other Regions Square feet expiring (1) 43,927 sf 3,974 sf 63,439 sf 6,368 sf
Full service St-Line rent (2) $ 821,592 $ 77,880 $ 1,296,864 $ 144,948
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 43,927 sf 3,974 sf 63,439 sf 6,368 sf
Full service St-Line rent (2) (3) $ 821,592 $ 77,880 $ 1,296,864 $ 144,948
Full service St-Line rent per sq. ft. $ 18.70 $ 19.60 $ 20.44 $ 22.76
% Full service St-Lined rent 25.31% 2.40% 39.95% 4.47%
No. of tenant leases expiring (4) 4 2 6 2
Asking market rent per sq. ft. (5) $ 19.70
Operating Expenses per sq. ft. (6) $ 7.52
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY 2003 2004 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New York City, New York Square feet expiring (1) 50,590 sf 26,396 sf 5,823 sf 27,074 sf
Full service St-Line rent (2) $ 2,154,149 $ 1,936,516 $ 276,732 $ 1,121,478
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 50,590 sf 26,396 sf 5,823 sf 27,074 sf
Full service St-Line rent (2) (3) $ 2,154,149 $ 1,936,516 $ 276,732 $ 1,121,478
Full service St-Line rent per sq. ft. $ 42.58 $ 73.36 $ 47.52 $ 41.42
% Full service St-Lined rent 11.56% 10.39% 1.48% 6.02%
No. of tenant leases expiring (4) 8 5 1 4
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Conejo Valley (Ventura), California Square feet expiring (1) 32,260 sf sf 12,126 sf sf
Full service St-Line rent (2) $ 763,572 $ - $ 277,428 $ -
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 32,260 sf sf 12,126 sf sf
Full service St-Line rent (2) (3) $ 763,572 $ - $ 277,428 $ -
Full service St-Line rent per sq. ft. $ 23.67 $ - $ 22.88 $ -
% Full service St-Lined rent 15.07% 0.00% 5.48% 0.00%
No. of tenant leases expiring (4) 4 0 1 0
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Other Regions Square feet expiring (1) 31,755 sf sf sf sf
Full service St-Line rent (2) $ 672,192 $ - $ - $ -
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 31,755 sf sf sf sf
Full service St-Line rent (2) (3) $ 672,192 $ - $ - $ -
Full service St-Line rent per sq. ft. $ 21.17 $ - $ - $ -
% Full service St-Lined rent 20.71% 0.00% 0.00% 0.00%
No. of tenant leases expiring (4) 5 0 0 0
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2009 and
REGION NAME CATEGORY 2007 2008 Beyond Total
- ------------------------------------------------------------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
New York City, New York Square feet expiring (1) 32,929 sf sf 207 sf 364,091 sf
Full service St-Line rent (2) $ 1,619,037 $ - $ - $ 18,642,166
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 32,929 sf sf 207 sf 364,091 sf
Full service St-Line rent (2) (3) $ 1,619,037 $ - $ - $ 18,642,166
Full service St-Line rent per sq. ft. $ 49.17 $ - $ - $ 51.20
% Full service St-Lined rent 8.68% 0.00% 0.00% 100.00%
No. of tenant leases expiring (4) 2 0 1 61
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Conejo Valley (Ventura), California Square feet expiring (1) sf sf 245 sf 220,887 sf
Full service St-Line rent (2) $ - $ - $ - $ 5,065,212
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) sf sf 245 sf 220,887 sf
Full service St-Line rent (2) (3) $ - $ - $ - $ 5,065,212
Full service St-Line rent per sq. ft. $ - $ - $ - $ 22.93
% Full service St-Lined rent 0.00% 0.00% 0.00% 100.00%
No. of tenant leases expiring (4) 0 0 0 23
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------- ---------
Other Regions Square feet expiring (1) 11,501 sf sf 3,991 sf 164,955 sf
Full service St-Line rent (2) $ 232,572 $ - $ - $ 3,246,048
Minority Interest Adjustment (3) Square feet expiring (1) sf sf sf sf
Full service St-Line rent (2) $ - $ - $ - $ -
Cornerstone Portfolio Square feet expiring (1) (3) 11,501 sf sf 3,991 sf 164,955 sf
Full service St-Line rent (2) (3) $ 232,572 $ - $ - $ 3,246,048
Full service St-Line rent per sq. ft. $ 20.22 $ - $ - $ 19.68
% Full service St-Lined rent 7.16% 0.00% 0.00% 100.00%
No. of tenant leases expiring (4) 1 0 0 20
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
REGION NAME CATEGORY NRA
- ----------------------------------------------------------------------------------------
<S> <C> <C>
New York City, New York Square feet expiring (1) 378,965 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 378,965 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Conejo Valley (Ventura), California Square feet expiring (1) 234,255 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 234,255 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
- ----------------------------------------------------------------------------------------
Other Regions Square feet expiring (1) 209,155 sf
Full service St-Line rent (2)
Minority Interest Adjustment (3) Square feet expiring (1) sf
Full service St-Line rent (2)
Cornerstone Portfolio Square feet expiring (1) (3) 209,155 sf
Full service St-Line rent (2) (3)
Full service St-Line rent per sq. ft.
% Full service St-Lined rent
No. of tenant leases expiring (4)
Asking market rent per sq. ft. (5)
Operating Expenses per sq. ft. (6)
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Lease Expiration Schedule
Footnotes
____________________________
(1) The total square footage expiring in any particular year.
(2) Full Service Straight-line rent is the annual average of all lease payments
required to be made through the term of the lease as required under
Generally Accepted Accounting Principles plus the annualized recovery of
operating expenses.
(3) Full Service Straight-line rent and square feet expiring include an
adjustment for the interest of a joint venture or minority partner.
Calculations are based on the partners 1998 percentage participation in the
cash flows of the property.
(4) The number of tenant leases expiring in each year.
(5) Asking market rent is the average initially quoted rent to prospective
tenants in each building. All market rents shown are on full service basis.
(6) Operating Expenses are the projected recoverable expenses quoted to
prospective tenants in each building.
(7) The rentable area associated with the Pruneyard Inn (90,000 sf) is not
included in the portfolio NRA.
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Tenant Retention Schedule
<PAGE>
- --------------------------------------------------------------------------------
Cornerstone Properties Inc.
Tenant Retention Schedule
As of December 31, 1998
- --------------------------------------------------------------------------------
The attached table sets forth the Company's tenant retention on expiring leases
since January 1, 1994. The analysis is based upon the percentage of expiring
leases in the applicable building with a tenant or subtenant being retained in
the expiring space, or an existing tenant expanding into the expiring space. A
tenant's lease is added to the retention schedule at the time a lease extension
is signed with the tenant, or the tenant notifies the Company of an option being
exercised.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1994 1995 1996
---------------------------- --------------------------- --------------------------
sq ft sq ft sq ft sq ft sq ft sq ft
Region retained expired ret % retained expired ret % retained expired ret %
-------------------------------- ---------------------------- --------------------------- --------------------------
<S> <C> <C> <C>
Boston, Massachusetts - - -- - - -- 95,816 96,658 99%
San Mateo County, California - - -- - - -- - - --
East Bay, California - - -- - - -- - - --
Atlanta, Georgia - - -- - - -- - - --
Seattle, Washington 127,334 153,645 83% 29,547 44,742 66% 86,956 106,250 82%
Santa Clara County, California - - -- - - -- - - --
Denver, Colorado 93,962 94,981 99% 64,627 71,364 91% 43,601 72,903 60%
San Francisco, California - - -- - - -- - - --
Minneapolis, Minnesota 16,293 26,317 62% 22,762 23,792 96% 4,336 9,777 44%
Washington, D.C./Alexandria, Virginia - - -- - - -- - - --
Suburban Chicago, Illinois - - -- - - -- - - --
Santa Monica/West Los Angeles, CA - - -- - - -- - - --
Orange County, California - - -- - - -- - - --
Charlotte, North Carolina - - -- - - -- - - --
Arizona - - -- - - -- - - --
San Diego, California - - -- - - -- - - --
Los Angeles, California - - -- - - -- - - --
New York City, New York - - -- - - -- 46,003 53,762 86%
Conejo Valley (Ventura), California - - -- - - -- - - --
Other Regions - - -- - - -- - - --
---------------------------- --------------------------- --------------------------
(1)TOTAL PORTFOLIO 237,589 274,943 86% 116,936 139,898 84% 276,712 339,350 82%
</TABLE>
(1)1996 and 1997 retention has been restated to reflect the 1998 sale
of the Frick Building.
<TABLE>
<CAPTION>
1997 1998 TOTAL
---------------------------- --------------------------- --------------------------
sq ft sq ft sq ft sq ft sq ft sq ft
Region retained expired ret % retained expired ret % retained expired ret %
---------------------------- --------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Boston, Massachusetts 41,252 65,223 63% 482,864 523,936 92% 619,932 685,817 90%
San Mateo County, California - - -- 1,730 9,757 18% 1,730 9,757 18%
East Bay, California - - -- - 17,601 0% - 17,601 0%
Atlanta, Georgia 10,672 21,725 49% 65,397 177,393 37% 76,069 199,118 38%
Seattle, Washington 182,194 207,738 88% 394,746 417,094 95% 820,777 929,469 88%
Santa Clara County, California - - -- - - -- - - --
Denver, Colorado 266,021 313,612 85% 78,144 106,249 74% 546,355 659,109 83%
San Francisco, California - - -- - 311 0% - 311 0%
Minneapolis, Minnesota 205,749 234,260 88% 101,382 114,447 89% 350,522 408,593 86%
Washington, D.C./Alexandria, Virginia - 8,889 0% 128,611 169,699 76% 128,611 178,588 72%
Suburban Chicago, Illinois 35,320 42,099 84% 75,006 178,898 42% 110,326 220,997 50%
Santa Monica/West Los Angeles, CA - - -- 15,975 18,897 85% 15,975 18,897 85%
Orange County, California - - -- 1,149 12,801 9% 1,149 12,801 9%
Charlotte, North Carolina 2,974 6,390 47% 35,239 59,158 60% 38,213 65,548 58%
Arizona - - -- 991 991 100% 991 991 100%
San Diego, California - - -- - - -- - - --
Los Angeles, California - - -- - - -- - - --
New York City, New York 43,007 71,266 60% 37,448 52,025 72% 126,458 177,053 71%
Conejo Valley (Ventura), California - - -- - - -- - - --
Other Regions - - -- 12,343 25,870 48% 12,343 25,870 48%
---------------------------- --------------------------- --------------------------
(1)TOTAL PORTFOLIO 787,189 971,202 81% 1,431,025 1,885,127 76% 2,849,451 3,610,520 79%
</TABLE>
(1)1996 and 1997 retention has been restated to reflect the 1998 sale of the
Frick Building.
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Leasing Costs and Capital Expenditures
<PAGE>
Cornerstone Properties Inc.
Non-Revenue Generating Capital
(Recurring Capital)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
------------------------------------------------ ------------------------------------------------------------
(1)Portfolio Total
<S> <C> <C> <C> <C>
Weighted Average Square Footage Owned 11,085,545 sf 5,121,760 sf 3,832,635 sf 3,290,776 sf
Total Square Feet Leased 1,768,939 sf 958,815 sf 376,197 sf 154,819 sf
Total Tenant Lease Costs $ 15,876,813 $ 7,127,582 $ 4,344,926 $ 576,381
Total Per Square Foot $ 8.98 $ 7.43 $ 11.55 $ 3.72
Capital Expenditures $ 1,671,684 $ 487,956 $ 518,632 $ -
Minority Interest Adjustment $ - $ 2,195 $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 1,671,684 $ 485,761 $ 518,632 $ -
Total Per Square Foot $ 0.15 $ 0.09 $ 0.14 $ -
</TABLE>
(1)1996 and 1997 leasing and capital costs have been restated to reflect
the 1998 sale of the Frick Building.
---------------------------------------------------------------------------
The following table shows Historical Non-Incremental Revenue Generating
Leasing Costs, which are the leasing costs (tenant improvements and leasing
commissions), in total and on a per square foot basis, to re-lease expiring
leases or renew or extend existing leases. The Company believes that its
ability to renew and extend existing tenants at a high percentage has
substantially reduced its overall leasing costs on a per square foot basis.
Additionally, the table shows Historical Non-Incremental Revenue Generating
Capital Expenditures, which are Capital Expenditures expended to maintain a
property in a Class A manner and do not give rise to additional earnings
capacity, but rather allow the property to maintain its competitive
position within its market. The Company believes that its focus on
continuing high level of maintenance of its assets has greatly reduced the
amount of Capital Expenditures required at its buildings.
----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Boston, Massachusetts
<S> <C> <C> <C> <C>
Weighted Average Square Footage Owned 2,666,317 sf 672,069 sf 463,691 sf 77,494 sf
Total Square Feet Leased 506,584 sf 68,110 sf 117,794 sf sf
Total Tenant Lease Costs $ 6,935,065 $ 1,349,047 $ 2,158,339 $ -
Total Per Square Foot $ 13.69 $ 19.81 $ 18.32 $ -
Capital Expenditures $ 476,741 $ 53,185 $ 518,632 $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 476,741 $ 53,185 $ 518,632 $ -
Total Per Square Foot $ 0.18 $ 0.08 $ 1.12 $ -
San Mateo County, California
Weighted Average Square Footage Owned 95,295 sf sf sf sf
Total Square Feet Leased 1,730 sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ 81,080 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 81,080 $ - $ - $ -
Total Per Square Foot $ 0.85 $ - $ - $ -
East Bay, California
Weighted Average Square Footage Owned 73,386 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ 13,500 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 13,500 $ - $ - $ -
Total Per Square Foot $ 0.18 $ - $ - $ -
Atlanta, Georgia
Weighted Average Square Footage Owned 1,647,986 sf 297,992 sf sf sf
Total Square Feet Leased 170,672 sf 13,269 sf sf sf
Total Tenant Lease Costs $ 1,280,053 $ 269,265 $ - $ -
Total Per Square Foot $ 7.50 $ 20.29 $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Region 1994 Total/Average
-------------------------------------------- -----------------------------
(1)Portfolio Total
<S> <C> <C>
Weighted Average Square Footage Owned 3,213,282 sf 5,308,800 sf
Total Square Feet Leased 295,956 sf 3,554,726 sf
Total Tenant Lease Costs $ 1,636,599 $ 29,562,301
Total Per Square Foot $ 5.53 $ 8.32
Capital Expenditures $ 50,801 $ 545,815
Minority Interest Adjustment $ - $ 439
-----------------------------
Total Cornerstone Share $ 50,801 $ 545,376
Total Per Square Foot $ 0.02 $ 0.10
Boston, Massachusetts
Weighted Average Square Footage Owned sf 775,914 sf
Total Square Feet Leased sf 692,488 sf
Total Tenant Lease Costs $ - $ 10,442,451
Total Per Square Foot $ - $ 15.08
Capital Expenditures $ - $ 209,712
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 209,712
Total Per Square Foot $ - $ 0.27
San Mateo County, California
Weighted Average Square Footage Owned sf 19,059 sf
Total Square Feet Leased sf 1,730 sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ 16,216
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 16,216
Total Per Square Foot $ - $ 0.85
East Bay, California
Weighted Average Square Footage Owned sf 14,677 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ 2,700
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 2,700
Total Per Square Foot $ - $ 0.18
Atlanta, Georgia
Weighted Average Square Footage Owned sf 389,196 sf
Total Square Feet Leased sf 183,941 sf
Total Tenant Lease Costs $ - $ 1,549,318
Total Per Square Foot $ - $ 8.42
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Non-Revenue Generating Capital
(Recurring Capital)
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
-------------------------------------------- ------------------------------------------------------------
Seattle, Washington
<S> <C> <C> <C> <C>
Weighted Average Square Footage Owned 1,168,321 sf 1,154,560 sf 1,154,560 sf 1,154,560 sf
Total Square Feet Leased 432,547 sf 208,875 sf 124,474 sf 53,894 sf
Total Tenant Lease Costs $ 2,177,172 $ 1,204,606 $ 793,361 $ 290,971
Total Per Square Foot $ 5.03 $ 5.77 $ 6.37 $ 5.40
Capital Expenditures $ 59,337 $ 21,922 $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 59,337 $ 21,922 $ - $ -
Total Per Square Foot $ 0.05 $ 0.02 $ - $ -
Santa Clara County, California
Weighted Average Square Footage Owned 56,510 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ 36,389 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 36,389 $ - $ - $ -
Total Per Square Foot $ 0.64 $ - $ - $ -
Denver, Colorado
Weighted Average Square Footage Owned 1,187,752 sf 1,187,752 sf 1,187,752 sf 1,187,752 sf
Total Square Feet Leased 85,110 sf 308,697 sf 81,445 sf 75,939 sf
Total Tenant Lease Costs $ 201,233 $ 1,823,664 $ 1,009,006 $ 141,135
Total Per Square Foot $ 2.36 $ 5.91 $ 12.39 $ 1.86
Capital Expenditures $ - $ 102,000 $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ 102,000 $ - $ -
Total Per Square Foot $ - $ 0.09 $ - $ -
San Francisco, California
Weighted Average Square Footage Owned 163,815 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ 12,773 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 12,773 $ - $ - $ -
Total Per Square Foot $ 0.08 $ - $ - $ -
Minneapolis, Minnesota
Weighted Average Square Footage Owned 870,970 sf 870,970 sf 870,970 sf 870,970 sf
Total Square Feet Leased 125,966 sf 212,795 sf 6,629 sf 24,986 sf
Total Tenant Lease Costs $ 513,054 $ 569,103 $ 42,237 $ 144,275
Total Per Square Foot $ 4.07 $ 2.67 $ 6.37 $ 5.77
Capital Expenditures $ - $ 10,974 $ - $ -
Minority Interest Adjustment $ - $ 2,195 $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ 8,779 $ - $ -
Total Per Square Foot $ - $ 0.01 $ - $ -
<CAPTION>
Region 1994 Total/Average
- -----------------------------------------------------------------------------------------------------
Seattle, Washington
<S> <C> <C>
Weighted Average Square Footage Owned 1,154,560 sf 1,157,312 sf
Total Square Feet Leased 151,051 sf 970,841 sf
Total Tenant Lease Costs $ 1,065,962 $ 5,532,072
Total Per Square Foot $ 7.06 $ 5.70
Capital Expenditures $ 50,801 $ 26,412
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ 50,801 $ 26,412
Total Per Square Foot $ 0.04 $ 0.02
Santa Clara County, California
Weighted Average Square Footage Owned sf 11,302 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ 7,278
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 7,278
Total Per Square Foot $ - $ 0.64
Denver, Colorado
Weighted Average Square Footage Owned 1,187,752 sf 1,187,752 sf
Total Square Feet Leased 117,966 sf 669,157 sf
Total Tenant Lease Costs $ 540,444 $ 3,715,482
Total Per Square Foot $ 4.58 $ 5.55
Capital Expenditures $ - $ 20,400
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 20,400
Total Per Square Foot $ - $ 0.02
San Francisco, California
Weighted Average Square Footage Owned sf 32,763 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ 2,555
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 2,555
Total Per Square Foot $ - $ 0.08
Minneapolis, Minnesota
Weighted Average Square Footage Owned 870,970 sf 870,970 sf
Total Square Feet Leased 26,939 sf 397,315 sf
Total Tenant Lease Costs $ 30,193 $ 1,298,862
Total Per Square Foot $ 1.12 $ 3.27
Capital Expenditures $ - $ 2,195
Minority Interest Adjustment $ - $ 439
-----------------------------
Total Cornerstone Share $ - $ 1,756
Total Per Square Foot $ - $ 0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Non-Revenue Generating Capital
(Recurring Capital)
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
- ---------------------------------------------------- ------------------------------------------------------------
Washington, D.C./Alexandria, Virginia
<S> <C> <C>
Weighted Average Square Footage Owned 989,999 sf 177,548 sf sf sf
Total Square Feet Leased 151,775 sf sf sf sf
Total Tenant Lease Costs $ 3,291,744 $ - $ - $ -
Total Per Square Foot $ 21.69 $ - $ - $ -
Capital Expenditures $ 75,218 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 75,218 $ - $ - $ -
Total Per Square Foot $ 0.08 $ - $ - $ -
Suburban Chicago, Illinois
Weighted Average Square Footage Owned 923,873 sf 297,067 sf 43,136 sf sf
Total Square Feet Leased 149,705 sf 42,826 sf 3,652 sf sf
Total Tenant Lease Costs $ 447,825 $ 287,758 $ 2,859 $ -
Total Per Square Foot $ 2.99 $ 6.72 $ 0.78 $ -
Capital Expenditures $ (61,733) $ 154,646 $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ (61,733) $ 154,646 $ - $ -
Total Per Square Foot $ (0.07) $ 0.52 $ - $ -
Santa Monica/West Los Angeles, California
Weighted Average Square Footage Owned 137,348 sf sf sf sf
Total Square Feet Leased 19,106 sf sf sf sf
Total Tenant Lease Costs $ 111,078 $ - $ - $ -
Total Per Square Foot $ 5.81 $ - $ - $ -
Capital Expenditures $ 293,641 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 293,641 $ - $ - $ -
Total Per Square Foot $ 2.14 $ - $ - $ -
Orange County, California
Weighted Average Square Footage Owned 31,096 sf sf sf sf
Total Square Feet Leased 1,149 sf sf sf sf
Total Tenant Lease Costs $ 9,192 $ - $ - $ -
Total Per Square Foot $ 8.00 $ - $ - $ -
Capital Expenditures $ 897 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 897 $ - $ - $ -
Total Per Square Foot $ 0.03 $ - $ - $ -
Charlotte, North Carolina
Weighted Average Square Footage Owned 612,728 sf 110,795 sf sf sf
Total Square Feet Leased 59,318 sf 9,139 sf sf sf
Total Tenant Lease Costs $ 519,787 $ 154,044 $ - $ -
Total Per Square Foot $ 8.76 $ 16.86 $ - $ -
Capital Expenditures $ 5,086 $ 15,039 $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 5,086 $ 15,039 $ - $ -
Total Per Square Foot $ 0.01 $ 0.14 $ - $ -
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Region 1994 Total/Average
- ---------------------------------------------------- -----------------------------
Washington, D.C. / Alexandria, Virginia
<S> <C>
Weighted Average Square Footage Owned sf 233,509 sf
Total Square Feet Leased sf 151,775 sf
Total Tenant Lease Costs $ - $ 3,291,744
Total Per Square Foot $ - $ 21.69
Capital Expenditures $ - $ 15,044
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 15,044
Total Per Square Foot $ - $ 0.06
Suburban Chicago, Illinois
Weighted Average Square Footage Owned sf 252,815 sf
Total Square Feet Leased sf 196,183 sf
Total Tenant Lease Costs $ - $ 738,442
Total Per Square Foot $ - $ 3.76
Capital Expenditures $ - $ 18,583
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 18,583
Total Per Square Foot $ - $ 0.07
Santa Monica/West Los Angeles, California
Weighted Average Square Footage Owned sf 27,470 sf
Total Square Feet Leased sf 19,106 sf
Total Tenant Lease Costs $ - $ 111,078
Total Per Square Foot $ - $ 5.81
Capital Expenditures $ - $ 58,728
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 58,728
Total Per Square Foot $ - $ 2.14
Orange County, California
Weighted Average Square Footage Owned sf 6,219 sf
Total Square Feet Leased sf 1,149 sf
Total Tenant Lease Costs $ - $ 9,192
Total Per Square Foot $ - $ 8.00
Capital Expenditures $ - $ 179
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 179
Total Per Square Foot $ - $ 0.03
Charlotte, North Carolina
Weighted Average Square Footage Owned sf 144,705 sf
Total Square Feet Leased sf 68,457 sf
Total Tenant Lease Costs $ - $ 673,831
Total Per Square Foot $ - $ 9.84
Capital Expenditures $ - $ 4,025
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 4,025
Total Per Square Foot $ - $ 0.03
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Non-Revenue Generating Capital
(Recurring Capital)
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
------------------------------------------------ ------------------------------------------------------------
Arizona
<S> <C>
Weighted Average Square Footage Owned 25,608 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
San Diego, California
Weighted Average Square Footage Owned 18,450 sf sf sf sf
Total Square Feet Leased 991 sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ 20,145 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 20,145 $ - $ - $ -
Total Per Square Foot $ 1.09 $ - $ - $ -
Los Angeles, California
Weighted Average Square Footage Owned 17,689 sf sf sf sf
Total Square Feet Leased 2,917 sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
New York City, New York
Weighted Average Square Footage Owned 378,965 sf 353,007 sf 112,526 sf sf
Total Square Feet Leased 49,026 sf 95,104 sf 42,203 sf sf
Total Tenant Lease Costs $ 390,610 $ 1,470,095 $ 339,124 $ -
Total Per Square Foot $ 7.97 $ 15.46 $ 8.04 $ -
Capital Expenditures $ 658,610 $ 130,190 $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 658,610 $ 130,190 $ - $ -
Total Per Square Foot $ 1.74 $ 0.37 $ - $ -
Conejo Valley (Ventura), California
Weighted Average Square Footage Owned 10,269 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1994 Total/Average
------------------------------------------------- -----------------------------
Arizona
<S> <C>
Weighted Average Square Footage Owned sf 5,122 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
San Diego, California
Weighted Average Square Footage Owned sf 3,690 sf
Total Square Feet Leased sf 991 sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ 4,029
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 4,029
Total Per Square Foot $ - $ 1.09
Los Angeles, California
Weighted Average Square Footage Owned sf 3,538 sf
Total Square Feet Leased sf 2,917 sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
New York City, New York
Weighted Average Square Footage Owned sf 168,900 sf
Total Square Feet Leased sf 186,333 sf
Total Tenant Lease Costs $ - $ 2,199,829
Total Per Square Foot $ - $ 11.81
Capital Expenditures $ - $ 157,760
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 157,760
Total Per Square Foot $ - $ 0.93
Conejo Valley (Ventura), California
Weighted Average Square Footage Owned sf 2,054 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Non-Revenue Generating Capital
(Recurring Capital)
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
- ----------------------------------------------------- ------------------------------------------------------------
Other Regions
<S> <C>
Weighted Average Square Footage Owned 9,168 sf sf sf sf
Total Square Feet Leased 12,343 sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
1994 Total / Average
-----------------------------
Other Regions
Weighted Average Square Footage Owned sf 1,834 sf
Total Square Feet Leased sf 12,343 sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Revenue Generating Capital
(Non-Recurring Capital)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
------------------------------------------------- ------------------------------------------------------------
(1)Portfolio Total
<S> <C> <C> <C> <C>
Weighted Average Square Footage Owned 11,085,545 sf 5,121,760 sf 3,832,635 sf 3,290,776 sf
Total Square Feet Leased 198,025 sf 83,682 sf 188,709 sf sf
Total Tenant Lease Costs $ 4,452,292 $ 690,658 $ 1,196,934 $ -
Total Per Square Foot $ 22.48 $ 8.25 $ 6.34 $ -
Capital Expenditures $ 1,483,545 $ 367,262 $ 25,500 $ 135,194
Minority Interest Adjustment $ 8,490 $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 1,475,055 $ 367,262 $ 25,500 $ 135,194
Total Per Square Foot $ 0.13 $ 0.07 $ 0.01 $ 0.04
</TABLE>
(1)1996 and 1997 leasing and capital costs have been restated to reflect
the 1998 sale of the Frick Building.
The following table shows Historical Incremental Revenue Generating Leasing
Costs, which are the leasing costs (tenant improvements and leasing
commissions) required to lease (i) first generation space on development
properties and (ii) space which was vacant at the time of the acquisition
of a property which will increase the overall return on the property.
Additionally, the table shows Historical Incremental Revenue Generating
Capital Expenditures, which are Capital Expenditures expended to increase
the profitability of the building either through the generation of higher
earnings capability, or by improving building system efficiency, thus
producing lower operating expenses prospectively.
<TABLE>
<CAPTION>
Boston, Massachusetts
<S> <C> <C> <C> <C>
Weighted Average Square Footage Owned 2,666,317 sf 672,069 sf 463,691 sf 77,494 sf
Total Square Feet Leased sf sf 33,136 sf sf
Total Tenant Lease Costs $ - $ - $ 369,727 $ -
Total Per Square Foot $ - $ - $ 11.16 $ -
Capital Expenditures $ 4,238 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 4,238 $ - $ - $ -
Total Per Square Foot $ 0.00 $ - $ - $ -
San Mateo County, California
Weighted Average Square Footage Owned 95,295 sf sf sf sf
Total Square Feet Leased 3,752 sf sf sf sf
Total Tenant Lease Costs $ 29,116 $ - $ - $ -
Total Per Square Foot $ 7.76 $ - $ - $ -
Capital Expenditures $ 4,053 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 4,053 $ - $ - $ -
Total Per Square Foot $ 0.04 $ - $ - $ -
East Bay, California
Weighted Average Square Footage Owned 73,386 sf sf sf sf
Total Square Feet Leased 1,333 sf sf sf sf
Total Tenant Lease Costs $ 13,330 $ - $ - $ -
Total Per Square Foot $ 10.00 $ - $ - $ -
Capital Expenditures $ 31,633 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 31,633 $ - $ - $ -
Total Per Square Foot $ 0.43 $ - $ - $ -
Atlanta, Georgia
Weighted Average Square Footage Owned 1,647,986 sf 297,992 sf sf sf
Total Square Feet Leased 60,834 sf 2,139 sf sf sf
Total Tenant Lease Costs $ 1,919,820 $ 24,132 $ - $ -
Total Per Square Foot $ 31.56 $ 11.28 $ - $ -
Capital Expenditures $ 586,718 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 586,718 $ - $ - $ -
Total Per Square Foot $ 0.36 $ - $ - $ -
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Region 1994 Total/Average
------------------------------------------------- -----------------------------
(1)Portfolio Total
<S> <C> <C>
Weighted Average Square Footage Owned 3,213,282 sf 5,308,800 sf
Total Square Feet Leased sf 470,416 sf
Total Tenant Lease Costs $ - $ 6,339,884
Total Per Square Foot $ - $ 13.48
Capital Expenditures $ 102,567 $ 422,814
Minority Interest Adjustment $ - $ 1,698
-----------------------------
Total Cornerstone Share $ 102,567 $ 421,116
Total Per Square Foot $ 0.03 $ 0.08
Boston, Massachusetts
Weighted Average Square Footage Owned sf 775,914 sf
Total Square Feet Leased sf 33,136 sf
Total Tenant Lease Costs $ - $ 369,727
Total Per Square Foot $ - $ 11.16
Capital Expenditures $ - $ 848
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 848
Total Per Square Foot $ - $ 0.00
San Mateo County, California
Weighted Average Square Footage Owned sf 19,059 sf
Total Square Feet Leased sf 3,752 sf
Total Tenant Lease Costs $ - $ 29,116
Total Per Square Foot $ - $ 7.76
Capital Expenditures $ - $ 811
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 811
Total Per Square Foot $ - $ 0.04
East Bay, California
Weighted Average Square Footage Owned sf 14,677 sf
Total Square Feet Leased sf 1,333 sf
Total Tenant Lease Costs $ - $ 13,330
Total Per Square Foot $ - $ 10.00
Capital Expenditures $ - $ 6,327
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 6,327
Total Per Square Foot $ - $ 0.43
Atlanta, Georgia
Weighted Average Square Footage Owned sf 389,196 sf
Total Square Feet Leased sf 62,973 sf
Total Tenant Lease Costs $ - $ 1,943,952
Total Per Square Foot $ - $ 30.87
Capital Expenditures $ - $ 117,344
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 117,344
Total Per Square Foot $ - $ 0.30
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Revenue Generating Capital
(Non-Recurring Capital)
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
------------------------------------------------- ------------------------------------------------------------
Seattle, Washington
<S> <C> <C> <C> <C>
Weighted Average Square Footage Owned 1,168,321 sf 1,154,560 sf 1,154,560 sf 1,154,560 sf
Total Square Feet Leased sf 69,727 sf 146,517 sf sf
Total Tenant Lease Costs $ - $ 404,988 $ 643,235 $ -
Total Per Square Foot $ - $ 5.81 $ 4.39 $ -
Capital Expenditures $ 212,549 $ 88,401 $ 25,500 $ 135,194
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 212,549 $ 88,401 $ 25,500 $ 135,194
Total Per Square Foot $ 0.18 $ 0.08 $ 0.02 $ 0.12
Santa Clara County, California
Weighted Average Square Footage Owned 56,510 sf sf sf sf
Total Square Feet Leased 6,614 sf sf sf sf
Total Tenant Lease Costs $ 66,140 $ - $ - $ -
Total Per Square Foot $ 10.00 $ - $ - $ -
Capital Expenditures $ 86,662 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 86,662 $ - $ - $ -
Total Per Square Foot $ 1.53 $ - $ - $ -
Denver, Colorado
Weighted Average Square Footage Owned 1,187,752 sf 1,187,752 sf 1,187,752 sf 1,187,752 sf
Total Square Feet Leased 1,497 sf sf sf sf
Total Tenant Lease Costs $ 24,169 $ - $ - $ -
Total Per Square Foot $ 16.14 $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
San Francisco, California
Weighted Average Square Footage Owned 163,815 sf sf sf sf
Total Square Feet Leased 20,678 sf sf sf sf
Total Tenant Lease Costs $ 501,187 $ - $ - $ -
Total Per Square Foot $ 24.24 $ - $ - $ -
Capital Expenditures $ 21,786 $ - $ - $ -
Minority Interest Adjustment $ 8,490 $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 13,296 $ - $ - $ -
Total Per Square Foot $ 0.08 $ - $ - $ -
Minneapolis, Minnesota
Weighted Average Square Footage Owned 870,970 sf 870,970 sf 870,970 sf 870,970 sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Region 1994 Total/Average
------------------------------------------------- -----------------------------
Seattle, Washington
<S> <C> <C>
Weighted Average Square Footage Owned 1,154,560 sf 1,157,312 sf
Total Square Feet Leased sf 216,244 sf
Total Tenant Lease Costs $ - $ 1,048,223
Total Per Square Foot $ - $ 4.85
Capital Expenditures $ 102,567 $ 112,842
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ 102,567 $ 112,842
Total Per Square Foot $ 0.09 $ 0.10
Santa Clara County, California
Weighted Average Square Footage Owned sf 11,302 sf
Total Square Feet Leased sf 6,614 sf
Total Tenant Lease Costs $ - $ 66,140
Total Per Square Foot $ - $ 10.00
Capital Expenditures $ - $ 17,332
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 17,332
Total Per Square Foot $ - $ 1.53
Denver, Colorado
Weighted Average Square Footage Owned 1,187,752 sf 1,187,752 sf
Total Square Feet Leased sf 1,497 sf
Total Tenant Lease Costs $ - $ 24,169
Total Per Square Foot $ - $ 16.14
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
San Francisco, California
Weighted Average Square Footage Owned sf 32,763 sf
Total Square Feet Leased sf 20,678 sf
Total Tenant Lease Costs $ - $ 501,187
Total Per Square Foot $ - $ 24.24
Capital Expenditures $ - $ 4,357
Minority Interest Adjustment $ - $ 1,698
-----------------------------
Total Cornerstone Share $ - $ 2,659
Total Per Square Foot $ - $ 0.08
Minneapolis, Minnesota
Weighted Average Square Footage Owned 870,970 sf 870,970 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Revenue Generating Capital
(Non-Recurring Capital)
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
------------------------------------------------- ------------------------------------------------------------
Washington, D.C./Alexandria, Virginia
<S> <C> <C>
Weighted Average Square Footage Owned 989,999 sf 177,548 sf sf sf
Total Square Feet Leased 32,227 sf sf sf sf
Total Tenant Lease Costs $ 1,146,914 $ - $ - $ -
Total Per Square Foot $ 35.59 $ - $ - $ -
Capital Expenditures $ 139,501 $ 216,984 $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 139,501 $ 216,984 $ - $ -
Total Per Square Foot $ 0.14 $ 1.22 $ - $ -
Suburban Chicago, Illinois
Weighted Average Square Footage Owned 923,873 sf 297,067 sf 43,136 sf sf
Total Square Feet Leased 34,637 sf 11,816 sf 1,941 sf sf
Total Tenant Lease Costs $ 495,310 $ 261,538 $ 9,706 $ -
Total Per Square Foot $ 14.30 $ 22.13 $ 5.00 $ -
Capital Expenditures $ - $ 61,877 $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ 61,877 $ - $ -
Total Per Square Foot $ - $ 0.21 $ - $ -
Santa Monica/West Los Angeles, California
Weighted Average Square Footage Owned 137,348 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ 12,980 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 12,980 $ - $ - $ -
Total Per Square Foot $ 0.09 $ - $ - $ -
Orange County, California
Weighted Average Square Footage Owned 31,096 sf sf sf sf
Total Square Feet Leased 1,311 sf sf sf sf
Total Tenant Lease Costs $ 6,555 $ - $ - $ -
Total Per Square Foot $ 5.00 $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Charlotte, North Carolina
Weighted Average Square Footage Owned 612,728 sf 110,795 sf sf sf
Total Square Feet Leased 28,587 sf sf sf sf
Total Tenant Lease Costs $ 163,143 $ - $ - $ -
Total Per Square Foot $ 5.71 $ - $ - $ -
Capital Expenditures $ 375,043 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 375,043 $ - $ - $ -
Total Per Square Foot $ 0.61 $ - $ - $ -
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Region 1994 Total/Average
- ----------------------------------------------------- -----------------------------
Washington, D.C. / Alexandria, Virginia
<S> <C>
Weighted Average Square Footage Owned sf 233,509 sf
Total Square Feet Leased sf 32,227 sf
Total Tenant Lease Costs $ - $ 1,146,914
Total Per Square Foot $ - $ 35.59
Capital Expenditures $ - $ 71,297
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 71,297
Total Per Square Foot $ - $ 0.31
Suburban Chicago, Illinois
Weighted Average Square Footage Owned sf 252,815 sf
Total Square Feet Leased sf 48,394 sf
Total Tenant Lease Costs $ - $ 766,554
Total Per Square Foot $ - $ 15.84
Capital Expenditures $ - $ 12,375
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 12,375
Total Per Square Foot $ - $ 0.05
Santa Monica/West Los Angeles, California
Weighted Average Square Footage Owned sf 27,470 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ 2,596
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 2,596
Total Per Square Foot $ - $ 0.09
Orange County, California
Weighted Average Square Footage Owned sf 6,219 sf
Total Square Feet Leased sf 1,311 sf
Total Tenant Lease Costs $ - $ 6,555
Total Per Square Foot $ - $ 5.00
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
Charlotte, North Carolina
Weighted Average Square Footage Owned sf 144,705 sf
Total Square Feet Leased sf 28,587 sf
Total Tenant Lease Costs $ - $ 163,143
Total Per Square Foot $ - $ 5.71
Capital Expenditures $ - $ 75,009
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 75,009
Total Per Square Foot $ - $ 0.52
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Revenue Generating Capital
(Non-Recurring Capital)
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona
<S> <C>
Weighted Average Square Footage Owned 25,608 sf sf sf sf
Total Square Feet Leased 1,124 sf sf sf sf
Total Tenant Lease Costs $ 1,124 $ - $ - $ -
Total Per Square Foot $ 1.00 $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
San Diego, California
Weighted Average Square Footage Owned 18,450 sf sf sf sf
Total Square Feet Leased 5,431 sf sf sf sf
Total Tenant Lease Costs $ 85,484 $ - $ - $ -
Total Per Square Foot $ 15.74 $ - $ - $ -
Capital Expenditures $ 422 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 422 $ - $ - $ -
Total Per Square Foot $ 0.02 $ - $ - $ -
Los Angeles, California
Weighted Average Square Footage Owned 17,689 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ 7,960 $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ 7,960 $ - $ - $ -
Total Per Square Foot $ 0.45 $ - $ - $ -
New York City, New York
Weighted Average Square Footage Owned 378,965 sf 353,007 sf 112,526 sf sf
Total Square Feet Leased sf sf 7,115 sf sf
Total Tenant Lease Costs $ - $ - $ 174,266 $ -
Total Per Square Foot $ - $ - $ 24.49 $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Conejo Valley (Ventura), California
Weighted Average Square Footage Owned 10,269 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Region 1994 Total/Average
- ----------------------------------------------------- -----------------------------
Arizona
<S> <C>
Weighted Average Square Footage Owned sf 5,122 sf
Total Square Feet Leased sf 1,124 sf
Total Tenant Lease Costs $ - $ 1,124
Total Per Square Foot $ - $ 1.00
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
San Diego, California
Weighted Average Square Footage Owned sf 3,690 sf
Total Square Feet Leased sf 5,431 sf
Total Tenant Lease Costs $ - $ 85,484
Total Per Square Foot $ - $ 15.74
Capital Expenditures $ - $ 84
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 84
Total Per Square Foot $ - $ 0.02
Los Angeles, California
Weighted Average Square Footage Owned sf 3,538 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ 1,592
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ 1,592
Total Per Square Foot $ - $ 0.45
New York City, New York
Weighted Average Square Footage Owned sf 168,900 sf
Total Square Feet Leased sf 7,115 sf
Total Tenant Lease Costs $ - $ 174,266
Total Per Square Foot $ - $ 24.49
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
Conejo Valley (Ventura), California
Weighted Average Square Footage Owned sf 2,054 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
-----------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone Properties Inc.
Revenue Generating Capital
(Non-Recurring Capital)
- ------------------------------------------------------------------------------------------------------------------------------------
Region 1998 1997 1996 1995
- ----------------------------------------------------- ------------------------------------------------------------
Other Regions
<S> <C>
Weighted Average Square Footage Owned 9,168 sf sf sf sf
Total Square Feet Leased sf sf sf sf
Total Tenant Lease Costs $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
Capital Expenditures $ - $ - $ - $ -
Minority Interest Adjustment $ - $ - $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ - $ - $ -
Total Per Square Foot $ - $ - $ - $ -
1994 Total/Average
-----------------------------
Other Regions
Weighted Average Square Footage Owned sf 1,834 sf
Total Square Feet Leased sf sf
Total Tenant Lease Costs $ - $ -
Total Per Square Foot $ - $ -
Capital Expenditures $ - $ -
Minority Interest Adjustment $ - $ -
------------------------------------------------------------
Total Cornerstone Share $ - $ -
Total Per Square Foot $ - $ -
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Debt Schedule
<PAGE>
Cornerstone Properties Inc.
Debt Schedule
December 31, 1998
The following table sets forth certain information regarding the
consolidated debt obligations of the Company as of December 31, 1998,
including mortgage obligations relating to the Properties. All of this
debt, with the exception of the Convertible Promissory Note due 2001, is
nonrecourse to the Company. However, notwithstanding the nonrecourse
indebtedness, the lender may have the right to recover deficiencies from
the Company in certain circumstances, including fraud, misappropriation of
funds and environmental liabilities.
<TABLE>
<CAPTION>
Maturity
Property Amortization Interest Rate (A) Date 12/31/98 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
188 Embarcadero 25 year 6.90% Jun-99 $ 9,135,000 $ -
One and Two Gateway 25 year 6.90% Dec-99 8,679,000 -
Seaport Centre Interest only LIBOR plus 1.50% Dec-99 58,000,000 -
The Pruneyard 24 year LIBOR plus 2.00% Mar-00 49,384,000 -
18301 Von Karman 25 year 6.90% Apr-00 10,647,000 -
Centerside II 25 year 6.90% Jun-00 13,818,000 -
Scottsdale Centre 25 year 6.90% Jul-00 7,745,000 -
TransPotomac Plaza and
Charlotte Plaza (B) Interest only 7.28% Oct-00 65,000,000 65,000,000
1600 South Main 25 year 6.90% Dec-00 5,038,000 -
Convertible Promissory
Note due 2001 (C) Interest only 8.11%max (D) Jan-01 12,926,000 12,926,000
Biltmore Lakes 25 year 6.90% Apr-01 11,468,000 -
Belmont Shores 25 year 6.90% Apr-01 9,839,000 -
700 North Brand 25 year 6.90% May-01 18,108,000 -
2677 North Main 25 year 6.90% May-01 10,774,000 -
2700 Ygnacio Valley Road 25 year 6.90% Aug-01 5,035,000 -
Westlake Spectrum 25 year 6.90% Aug-01 3,993,000 -
Park Plaza 25 year 6.90% Oct-01 4,940,000 -
Warner Park Center 25 year 6.90% Dec-01 5,213,000 -
West Wilshire Office and Medical 25 year 6.90% Jan-02 17,301,000 -
Searise Office Tower 25 year 6.90% Jan-02 11,864,000 -
Golden Bear Center 25 year 6.90% Mar-02 15,753,000 -
Exposition Centre 25 year 6.90% May-02 5,200,000 -
Bixby Ranch 25 year 6.90% May-02 20,243,000 -
Wilshire Palisades 22 year 6.70% Jul-02 29,902,000 -
120 Montgomery 24 year LIBOR plus 1.40% Nov-02 46,930,000 -
1300 South El Camino 23 year 6.90% Dec-02 4,007,000 -
125 Summer Street Interest only (E) 7.20% Jan-03 50,000,000 50,000,000
429 Santa Monica 25 year 6.90% Mar-03 10,176,000 -
Crossroads 25 year 6.90% Mar-03 7,339,000 -
Westlake Spectrum II 25 year 6.90% Mar-03 5,284,000 -
Tower 56 30 year 7.67% May-03 17,548,000 17,742,000
Two ADP Plaza Interest only 6.90% Dec-03 13,400,000 -
Two Corporate Centre Interest only 6.90% Dec-03 18,600,000 -
Norris Tech 25 year LIBOR plus 1.65% Dec-03 16,392,000 -
Peninsula Office Park 4 25 year 6.90% Feb-04 5,436,000 -
Peninsula Office Park 1,3,5,6,8 & 9 25 year 6.90% Feb-04 54,806,000 -
110 Atrium Place 30 year 6.90% Mar-04 21,838,000 -
10 Almaden 25 year 6.90% Apr-04 33,885,000 -
Embarcadero Place 20 year 6.90% Apr-04 26,061,000 -
527 Madison Avenue and
One Lincoln Centre (B) Interest only 7.47% Oct-04 65,000,000 65,000,000
Sixty State Street 30 year 6.84% Jan-05 87,627,000 89,630,000
201 California Street 30 year 6.70% Mar-05 33,071,000 -
Island Corporate Center 30 year 6.90% Apr-05 13,294,000 -
Washington Mutual Tower Interest only 7.53% Nov-05 79,100,000 79,100,000
Norwest Center Interest only 8.74% Dec-05 110,000,000 110,000,000
Agoura Hills 25 year 6.90% Dec-05 12,328,000 -
Janss Court 30 year 6.90% Dec-05 18,723,000 -
Bayhill 4,5,6 & 7 25 year 6.90% Dec-06 59,071,000 -
66 Bovet 22 year 6.90% Apr-07 3,939,000 -
Market Square (F) and
200 Galleria (B) Interest only 7.54% Oct-07 120,000,000 120,000,000
One Norwest Center (G) 30 year 6.90% Oct-08 98,252,000 96,780,000
Corporate 500 Centre (H) 25 year 6.66% Nov-08 89,765,000 -
Other loans Various Various Various 597,000 -
--------------- ---------- --------------- -------------
Total Cornerstone Debt before adjustments 7.20% (I) 6.7yrs (I) $ 1,532,474,000 $ 706,178,000
Adjustments:
One Post 25 year 6.90% Dec-02 17,250,000 -
120 Montgomery 24 year LIBOR plus 1.40% Nov-02 (15,646,000) -
Norwest Center Interest only 8.74% Dec-05 (24,310,000) (24,310,000)
--------------- ---------- --------------- -------------
Total Cornerstone Share of Debt 7.17% (I) 6.6yrs (I) $ 1,509,768,000 $ 681,868,000
=============== ========== =============== =============
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Debt Schedule
December 31, 1998
(A) The interest rate is the stated interest rate (for Cornerstone-originated
debt) or the prevailing market rate at the time of acquisition (for debt
assumed as part of a property acquisition).
(B) The three notes arising from the acquisition of several properties from
DIHC are cross-collateralized, having the effect of forming a collateral
pool for the underlying notes.
(C) The lender, Hines, has the right to convert the note into common stock at a
conversion price of $14.30 per share. At maturity, the Company is entitled
to repay the principal of the note with common stock priced at the lesser
of $14.30 per share or the then existing share price.
(D) Lesser of 30-day LIBOR plus 0.5% or 8.11%.
(E) Interest only payments through January 1, 2001, with a 25-year amortization
schedule thereafter.
(F) The collateral for this loan is a pledge of the $181.0 million first
mortgage loan on Market Square that the Company purchased from PGGM.
(G) On September 25, 1998, the Company completed the refinancing of the $96.1
million mortgage on One Norwest Center with CIGNA and Mass Mutual. As a
result of the refinancing, the principal balance was increased to $98.5
million, the term of the loan was extended from three years to ten years
and the interest rate was reduced from 7.50% to 6.90%.
(H) On October 9, 1998, the Company completed the refinancing of the $80.0
million mortgage on Corporate 500 Centre with Teachers Insurance and
Annuity Association. As a result of the refinancing, the principal balance
was increased to $90.0 million, the term of the loan was extended from 4.5
years to ten years and the interest rate was increased by three basis
points to 6.66%.
(I) Weighted-average interest rate and maturity of the Companys long-term debt.
The combined aggregate amount of maturities for all long-term borrowings for
1999 through 2003 are $75,814,000, $151,632,000, $82,296,000, $151,200,000 and
$138,739,000, respectively.
Credit Line
- -----------
The Company has a $550 million Revolving Credit Facility with Bankers Trust
Company and The Chase Manhattan Bank for acquisitions and general working
capital purposes as well as the issuance of letters of credit. The interest rate
on the line of credit depends on the Company's leverage ratio at the time of
borrowing and will be at a spread of 1.10% to 1.40% over LIBOR or the Prime Rate
at the borrowers option. The letters of credit will be priced at the applicable
Eurodollar credit spread. The line of credit expires on November 3, 2001. As of
December 31, 1998, $465.0 million of the credit line was outstanding at a rate
of approximately 6.9%. In addition, at December 31, 1998 there was a $5.0
million letter of credit outstanding at a rate of 1.40%. The line of credit
contains certain restrictive covenants including: (i) a limitation on the
Company's dividend to 90% of funds from operations and 110% of funds available
for distribution; (ii) total liabilities to total property asset value cannot
exceed 55%; (iii) adjusted EBITDA to interest expense may not be less than 2.00
to 1.00 through July 1, 1999 and 2.25 to 1.00 thereafter; (iv) fixed charge
coverage may not be less than 1.75 to 1.00; and (v) total property asset value
to secured indebtedness may not be less than 2.50 to 1.00.
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Equity Schedule
<PAGE>
Cornerstone Properties Inc.
Equity Activity Schedule
As of December 31, 1998
The following table shows the equity activity that has occurred since
January 1, 1998 and the calculation of diluted Common shares and Units
outstanding:
<TABLE>
<CAPTION>
Item Date Description Number of Shares/Units
- ------------------------------------------------------------------------------------------------------------------------------------
Common Stock
------------
<S> <C> <C> <C>
01/01/98 Beginning balance 83,191,819
01/05/98 Tower 56 residual value acquisition 307,692
02/02/98 Public secondary equity offering 14,375,000
02/17/98 Management stock grants 12,500
02/27/98 Dividend reinvestment 109,007
03/02/98 Management stock grants 19,178
04/28/98 One Memorial Drive acquisition 3,428,571
05/29/98 Dividend reinvestment 98,487
08/31/98 Dividend reinvestment 94,610
11/30/98 Dividend reinvestment 95,300
12/16/98 PGGM investment 11,594,203
12/16/98 Wilson Acquisition 14,884,417
-----------
128,210,784
-----------
Outside Upreit Units
-------------------- 01/01/98 Beginning balance -
01/29/98 Corporate 500 Centre acquisition 822,794
04/28/98 One Memorial Drive acquisition 1,657,426
06/03/98 201 California Street and Wilshire Palisades acquisition 1,665,663
12/16/98 Wilson Acquisition 16,187,724
-----------
20,333,607
-----------
Dilutive Issues
--------------- Convertible Preferred Stock 3,030,303
Convertible Promissory Note 903,914
Dilutive effect of "in the money" options 236,101
-----------
4,170,318
-----------
-----------
12/31/98 Total diluted common shares and units outstanding 152,714,709
===========
Year to date weighted average diluted common
shares and units outstanding 108,052,000
===========
Quarter to date weighted average diluted common
shares and units outstanding 117,272,225
===========
</TABLE>
<PAGE>
Cornerstone Properties Inc.
Supplemental Information to
Quarterly Earnings Release
o Minority Sharing in Cash Flows and
Residual Proceeds
<PAGE>
Minority Sharing in Cash Flows and Residual Proceeds
Seven of the Company's properties are held in partnerships which allow the
Company's partners to participate in the cash flows of their respective
properties. The following discussion provides the details of partner's
participation in the cash flow of each of the respective properties.
Norwest Center
Under the partnership agreement, cash flow is used first to pay operating
and capital expenditures, then debt service on the mortgage note. The remaining
cash flow is paid first to Cornerstone, as a 7% cumulative preference return on
its capital base of $92.3 million ($6,461,000), and then any remaining cash flow
is split 50% to Cornerstone and 50% to their partner, Sixth & Marquette Limited
Partnership ("S&M"). Should cash flow be insufficient to pay the preference
return ("Preference Deficit"), it will accumulate and earn interest at 7%. Any
Preference Deficit will be paid as the first priority payment after debt
service. Cash flow and earnings for the twelve months of 1998 were split 77.9%
to Cornerstone and 22.1% to S&M. Sales proceeds from Norwest Center will be
split as follows as of December 31, 1998:
1) To Debt $110.0 million
2) To Cornerstone 92.3 million
3) To Cornerstone 9.3 million
4) To Cornerstone 1.0 million
5) To S&M 19.5 million
6) The remaining proceeds will be split 50/50 among the two partners.
Washington Mutual Tower
Under the partnership agreement, cash flow is used first to pay operating
and capital expenditures, then debt service on the mortgage note. The remaining
cash flow is paid first to Cornerstone as a 9.53% preference return on its
capital base of $47.0 million ($4,479,000); next to pay the Preference Deficit
on the second preference return (currently $9.0 million); then to Cornerstone as
an 8% second preference return on its capital base of $100.0 million
($8,000,000). Any remaining cash flow is split 50% to Cornerstone and 50% to
1212. The cumulative Preference Deficit earns interest at a rate of 8% until it
is repaid. Cornerstone's partner, 1212 Partnership, does not currently share in
the cash flow from Washington Mutual Tower. With regard to the sale of the
building, the Company will receive the first $156.0 million of proceeds after
repayment of the $79.1 million mortgage ($235.1 million in total proceeds). Any
proceeds above this amount will be split 50/50 with Cornerstone's partners.
<PAGE>
Minority Sharing in Cash Flows and Residual Proceeds (continued)
191 Peachtree Street
Under the partnership agreement, cash flow is used first to pay operating
and capital expenditures, then debt service on the mortgage note. In addition,
the partner in the transaction, CH Associates, Ltd., will receive an annual
incentive distribution of $250,000 which Cornerstone expects it will receive
under the partnership agreement through February 28, 2000. Cornerstone receives
the remaining cash flow until such time as its cumulative undistributed
preferred return ($162.9 million as of 12/31/98) has been reimbursed. Excess
cash flow will be split 80% to Cornerstone and 20% to CH Associates, Ltd. Sales
proceeds from 191 Peachtree Street will be split as follows as of December 31,
1998:
1) To Debt $ 1.8 million
2) To Cornerstone (as partial holder of the debt) $159.0 million
3) To Cornerstone for its undistributed preferred return $ 17.9 million
4) To Cornerstone for its priority capital contribution $145.0 million
500 Boylston and 222 Berkeley Street
Distributions of cash flows and sales proceeds are shared in proportion to
Cornerstones 91.5% partnership interest and Hines 8.5% partnership interest.
One Post Street, San Francisco
Distributions of cash flows and sales proceeds are shared in proportion to
Cornerstones 50.0% interest and McKesson Corporations 50.0% interest.
120 Montgomery Street, San Francisco
Distributions of cash flows and sales proceeds are shared in proportion to
Cornerstones 66.7% partnership interest and Sansome Partners III, L.P.s 33.3%
partnership interest.
