SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 30, 1998
GLENBOROUGH REALTY TRUST INCORPORATED
(Exact name of registrant as specified in its charter)
Maryland 33-83506 94-3211970
(State or other (Commission (IRS Employer
Jurisdiction of File Number) I.D. Number)
Incorporation)
400 South El Camino Real, Suite 1100, San Mateo, California 94402
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(Address of principal executive offices)
Registrant's Telephone number, including area code: (650) 343-9300
N/A
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(Former name, or former address, if changes since last report)
This form 8-K contains a total of 30 pages
No Exhibits Required
<PAGE>
GLENBOROUGH REALTY TRUST INCORPORATED
SUPPLEMENTAL INFORMATION
September 30, 1998
Item 5. Other Events
On October 27, 1998, the Registrant made available additional ownership and
operating information concerning the Registrant, Glenborough Realty Trust
Incorporated, and the properties owned or managed by it as of
September 30, 1998, in the form of a Supplemental Information package, a copy
of which is included as an exhibit to this filing.
Item 7. Financial Statements and Exhibits
Financial Statements:
None
Exhibits:
Page Number in
Exhibit No. Description This Filing
99 Supplemental Information as of September 30, 1998 4
<PAGE>
GLENBOROUGH REALTY TRUST INCORPORATED
SUPPLEMENTAL INFORMATION
September 30, 1998
SIGNATURES
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.
GLENBOROUGH REALTY TRUST INCORPORATED
Date: October 27, 1998 By: /s/ Stephen R. Saul
Stephen R. Saul
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
<PAGE>
GLENBOROUGH REALTY TRUST INCORPORATED
SUPPLEMENTAL INFORMATION
September 30, 1998
Table of Contents
PAGE
Real Estate Portfolio..........................................................5
Additions and Deletions to Portfolios During Period...........................10
Debt Summary..................................................................12
Corporate Operating Summary...................................................14
Office Portfolio..............................................................16
Office/Flex Portfolio.........................................................18
Industrial Portfolio..........................................................20
Retail Portfolio..............................................................22
Multi-Family Portfolio........................................................24
Reconciliation of Property Income.............................................25
Lease Expiration Schedule.....................................................26
Glossary of Terms.............................................................28
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<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
REAL ESTATE PORTFOLIO
SEPTEMBER 30, 1998
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PROPERTY CITY ST SQ. FEET % OCC.
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<S> <C> <C> <C> <C>
OFFICE PORTFOLIO
Tradewinds Financial Phoenix AZ 17,768 83%
Vintage Pointe Phoenix AZ 56,112 95%
Warner Village Medical Fountain Valley CA 32,272 84%
Hillcrest Office Plaza Fullerton CA 34,623 93%
Centerstone Plaza Irvine CA 157,579 97%
University Tech Center Pomona CA 100,516 97%
Academy Professional Center Rolling Hills CA 29,960 68%
Dallidet Professional Center San Luis Obispo CA 23,511 90%
400 South El Camino Real San Mateo CA 139,109 93%
One Gateway Center Denver CO 80,049 66%
Park Place Clearwater FL 164,435 98%
Buschwood III Tampa FL 76,930 92%
Temple Terrace Business Center Temple Terrace FL 79,393 100%
Ashford Perimeter Atlanta GA 288,584 98%
Powers Ferry Landing East Atlanta GA 393,672 99%
Capitol Center I, II & III Des Moines IA 161,468 100%
Oak Brook International Oak Brook IL 98,443 97%
Oakbrook Terrace Corporate Center III Oakbrook Terrace IL 253,069 100%
Columbia Centre II Rosemont IL 150,133 97%
Embassy Plaza Schaumburg IL 141,419 17%
Meridian Park Carmel IN 86,332 99%
Crosspoint Four Fishers IN 41,121 100%
The Osram Building Westfield IN 45,265 100%
Leawood Office Building Leawood KS 93,667 99%
Blue Ridge Office Building Braintree MA 74,795 90%
The Hartwood Building Lexington MA 52,721 100%
Bronx Park I Malborough MA 86,935 100%
Marlborough Corporate Place Malborough MA 569,027 94%
Westford Corporate Center Westford MA 163,247 100%
Montgomery Executive Center Gaithersburg MD 116,348 95%
Rockwall I & II Rockville MD 340,252 91%
Bond Street Building Farmington Hills MI 40,623 100%
Riverview Office Tower Bloomington MN 227,129 99%
University Club Tower St. Louis MO 272,443 93%
Woodlands Plaza St. Louis MO 72,276 93%
Edinburgh Center Cary NC 115,314 89%
One Pacific Place Omaha NE 125,492 94%
One Professional Square Omaha NE 34,836 86%
Regency Westpointe Omaha NE 35,937 97%
Morristown Medical Offices Bedminster NJ 14,255 100%
Bridgewater Exec. Quarters Bridgewater NJ 65,000 100%
Frontier Executive Quarters I Bridgewater NJ 224,314 100%
Frontier Executive Quarters II Bridgewater NJ 40,565 100%
Executive Place Franklin Township NJ 85,765 100%
Vreeland Business Ctr Florham Park NJ 133,090 100%
Gatehall Parsippany NJ 113,604 87%
25 Independence Boulevard Warren NJ 106,879 100%
Citibank Park Las Vegas NV 147,916 86%
Thousand Oaks Memphis TN 418,458 90%
Post Oak Place Houston TX 57,411 83%
4500 Plaza Salt Lake City UT 70,001 100%
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
REAL ESTATE PORTFOLIO
SEPTEMBER 30, 1998
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PROPERTY CITY ST SQ. FEET % OCC.
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<S> <C> <C> <C> <C>
OFFICE PORTFOLIO (continued)
700 South Washington Alexandria VA 56,348 100%
Cameron Run Alexandria VA 143,707 100%
2000 Corporate Ridge McLean VA 255,980 100%
Globe Building Mercer Island WA 24,779 100%
================= ==================
Total Square Footage/Average % Occupied 7,030,877 94%
================= ==================
Total Number of Properties: 55
OFFICE/FLEX PORTFOLIO
Hoover Industrial Mesa AZ 57,441 93%
Magnolia Industrial Phoenix AZ 35,385 100%
Baseline Business Park Tempe AZ 100,204 96%
Kraemer Industrial Park Anaheim CA 55,246 88%
Dominguez Industrial Carson CA 85,120 96%
Chatsworth Industrial Park Chatsworth CA 29,764 100%
Glassell Industrial Center Orange CA 46,912 74%
Dunn Way Industrial Placentia CA 59,832 97%
Monroe Industrial Placentia CA 38,655 57%
Rancho Bernardo Rancho Bernardo CA 52,865 88%
Scripps Terrace San Diego CA 56,796 84%
Tierrasanta Research Park San Diego CA 104,234 100%
Upland Industrial Upland CA 27,414 85%
Gateway One Denver CO 72,000 100%
Gateway Four Denver CO 100,000 100%
Gateway Six Denver CO 107,200 85%
Gateway Eight Denver CO 79,112 100%
Northglenn Business Center Denver CO 65,000 100%
Valley Business Park Denver CO 202,540 87%
Grand Regency Business Center Brandon FL 48,551 100%
Newport Business Center Deerfield Beach FL 61,495 82%
Cypress Creek Business Center Ft. Lauderdale FL 66,371 78%
Lake Point Business Park Orlando FL 135,032 84%
Fingerhut Business Center Tampa FL 48,840 100%
PrimeCo Business Center Tampa FL 48,090 100%
Oakbrook Corners Norcross GA 124,776 91%
The Business Park Norcross GA 157,153 97%
Covance Business Center Indianapolis IN 263,610 100%
Park 100 - Building 42 Indianapolis IN 37,200 79%
Canton Business Center Canton MA 79,565 100%
Fisher-Pierce Weymouth MA 79,825 100%
Columbia Warehouse Columbia MD 38,840 88%
Germantown Business Center I & II Germantown MD 60,000 100%
Winnetka Industrial Center Crystal MN 188,260 94%
Bryant Lake Business Center Eden Prairie MN 171,789 96%
Riverview Industrial Park St. Paul MN 113,700 95%
Woodlands Tech Center St. Louis MO 98,037 100%
Fox Hollow Business Quarters Branchburg NJ 42,173 100%
Fairfield Business Quarters Fairfield NJ 42,792 100%
Palms Business Center III Las Vegas NV 136,160 84%
Palms Business Center IV Las Vegas NV 37,414 74%
Palms Business Center North Las Vegas NV 92,087 81%
</TABLE>
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
REAL ESTATE PORTFOLIO
SEPTEMBER 30, 1998
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PROPERTY CITY ST SQ. FEET % OCC.
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<S> <C> <C> <C> <C>
OFFICE/FLEX PORTFOLIO (continued)
Palms Business Center South Las Vegas NV 132,387 65%
Post Palms Business Center Las Vegas NV 139,906 76%
Lehigh Valley Executive Campus Allentown PA 161,421 95%
Clark Avenue King of Prussia PA 40,000 92%
Valley Forge Corporate Center Norristown PA 300,894 96%
Walnut Creek Business Center Austin TX 100,000 100%
Kent Business Park Kent WA 138,157 100%
================= ==================
Total Square Footage/Average % Occupied 4,560,245 92%
================= ==================
Total Number of Properties: 49
INDUSTRIAL
Fifth Street Industrial Phoenix AZ 109,699 100%
Fairmont Commerce Center Tempe AZ 83,200 100%
Coronado Industrial Anaheim CA 95,732 100%
East Anaheim Industrial Anaheim CA 106,232 100%
Benicia Industrial Park Benicia CA 156,800 100%
Springdale Commerce Center Santa Fe Springs CA 144,000 88%
Burnham Industrial Warehouse Boca Raton FL 71,168 100%
Gateway Two Denver CO 135,792 100%
Gateway Three Denver CO 121,189 100%
Gateway Seven Denver CO 156,720 89%
Gateway Nine Denver CO 147,723 100%
Gateway Ten Denver CO 129,000 100%
Airport Perimeter Business Park College Park GA 120,986 77%
Atlantic Industrial Norcross GA 102,295 75%
Bonnie Lane Business Center Elk Grove Village IL 119,590 100%
Navistar International Transportation Corp. W. Chicago IL 474,426 100%
Glenn Avenue Business Center Wheeling IL 82,000 100%
Wood Dale Business Center Wood Dale IL 89,718 59%
Park 100 - Building 46 Indianapolis IN 102,400 100%
J.I. Case Equipment Corp. Kansas City KS 199,750 100%
Forest Street Business Center Malborough MA 32,500 100%
Southworth-Milton Milford MA 146,125 100%
Flanders Industrial Park Westborough MA 105,500 100%
Navistar International Transportation Corp. Baltimore MD 274,000 100%
Eatontown Industrial Eatontown NJ 36,800 100%
Cottontaile Distr Ctr Franklin Township NJ 229,352 100%
Jencraft Industrial Totowa NJ 120,943 100%
J.I. Case Equipment Corp. Memphis TN 205,594 100%
Pinewood Industrial Arlington TX 46,060 0%
Mercantile I Dallas TX 236,092 100%
Quaker Industrial Dallas TX 42,083 100%
Sea Tac II Seattle WA 41,657 100%
================= ==================
Total Square Footage/Average % Occupied 4,265,126 96%
================= ==================
Total Number of Properties: 32
RETAIL
Park Center Santa Ana CA 73,500 98%
Sonora Plaza Sonora CA 162,126 85%
Piedmont Plaza Apopka FL 151,000 97%
</TABLE>
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
REAL ESTATE PORTFOLIO
SEPTEMBER 30, 1998
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PROPERTY CITY ST SQ. FEET % OCC.
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<S> <C> <C> <C> <C>
RETAIL (continued)
River Run Shopping Center Miramar FL 92,787 94%
Westwood Plaza Tampa FL 99,304 96%
Shannon Crossing Atlanta GA 74,549 92%
Westbrook Commons Westchester IL 132,190 97%
Broad Ripple Retail Centre Indianapolis IN 37,540 96%
Cross Creek Retail Centre Indianapolis IN 76,908 91%
Geist Retail Centre Indianapolis IN 72,348 93%
Woodfield Centre Indianapolis IN 58,171 93%
Goshen Plaza Gaithersburg MD 45,546 88%
Auburn North Shopping Center Auburn WA 158,596 94%
================= ==================
Total Square Footage/Average % Occupied 1,234,565 93%
================= ==================
Total Number of Properties: 13
MULTIFAMILY PORTFOLIO # OF UNITS % OCC.
Overlook Apartments Scottsdale AZ 224 92%
Aspen Ridge Colorado Springs CO 196 93%
Stone Ridge at Vinings Atlanta GA 440 83%
Woodmere Trace Duluth GA 220 100%
Cross Creek Apartments Indianapolis IN 208 97%
Harcourt Club Apartments Indianapolis IN 148 96%
Island Club Apartments Indianapolis IN 314 91%
Arrowood Crossing I & II Charlotte NC 200 97%
Sharonridge I & II Charlotte NC 75 91%
The Chase (Commonwealth) Charlotte NC 132 86%
The Courtyard Charlotte NC 55 85%
The Landing on Farmhurst Charlotte NC 125 97%
Wendover Glen Charlotte NC 96 94%
The Chase (Monroe) Monroe NC 120 99%
Willow Glen Monroe NC 120 96%
Sabal Point I, II & III Pineville NC 374 95%
The Oaks Raleigh NC 88 92%
Sahara Gardens Las Vegas NV 312 95%
Villas de Mission Las Vegas NV 226 97%
Players Club of Brentwood Nashville TN 258 94%
Hunter's Chase Austin TX 424 96%
Hunterwood Austin TX 160 99%
Longspur Austin TX 252 94%
Silver Vale Crossing Austin TX 336 96%
Walnut Creek Crossing Apartments Austin TX 280 94%
Wind River Crossing Austin TX 352 97%
Bear Creek Crossing Houston TX 200 98%
Cypress Creek Apartments Houston TX 256 97%
North Park Crossing Houston TX 336 96%
Willow Brook Crossing Houston TX 208 100%
Park at Woodlake Houston TX 564 90%
Jefferson Creek Irving TX 300 94%
Jefferson Place Irving TX 424 93%
La Costa Plano TX 462 94%
Bandera Crossing San Antonio TX 204 98%
</TABLE>
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
REAL ESTATE PORTFOLIO
SEPTEMBER 30, 1998
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PROPERTY CITY ST # OF UNITS % OCC.
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<S> <C> <C> <C> <C>
MULTIFAMILY PORTFOLIO (continued)
The Hollows San Antonio TX 432 91%
Vista Crossing San Antonio TX 232 91%
----------------- ------------------
Total Units/Average % Occupied 9,353 94%
================= ==================
Total Number of Properties: 37
</TABLE>
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
ADDITIONS AND DELETIONS TO PORFOLIOS DURING PERIOD
September 30, 1998
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PROPERTY CITY ST SQ. FEET DATE
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<S> <C> <C> <C> <C>
ADDITIONS:
OFFICE PORTFOLIO
One Gateway Center Aurora CO 80,049 7/7/98
Executive Place Franklin NJ 85,765 8/13/98
-----------------
TOTALS 165,814
Total Number of Properties: 2
OFFICE/FLEX PORTFOLIO
Gateway One Aurora CO 72,000 7/7/98
Gateway Four Aurora CO 100,000 7/7/98
Gateway Six Aurora CO 107,200 7/7/98
Gateway Eight Aurora CO 79,112 7/7/98
-----------------
TOTALS 358,312
Total Number of Properties: 4
INDUSTRIAL PORTFOLIO
Gateway Two Aurora CO 135,792 7/7/98
Gateway Three Aurora CO 121,189 7/7/98
Gateway Seven Aurora CO 156,720 7/7/98
Gateway Nine Aurora CO 147,723 7/7/98
Gateway Ten Aurora CO 129,000 7/7/98
-----------------
TOTALS 690,424
Total Number of Properties: 5
DELETIONS:
OFFICE/FLEX
Atlantic Industrial (1) Norcross GA 85,548 8/21/98
(1) One building totaling 85,548 square feet at Atlantic Industrial was sold.
The remaining 102,295 square feet is included in the real estate portfolio.
</TABLE>
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
QUARTERLY RECAP OF ACQUISITIONS AND DISPOSITIONS
September 30, 1998
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ACQUISITION NUMBER OF
PORTFOLIO/PROPERTY COST PROPERTIES SQ. FEET DATE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gateway Park $ 54,900,000 10 1,128,785 7/7/98
Executive Place 12,400,000 1 85,765 8/13/98
------------------------ ----------------------- -------------------
$ 67,300,000 11 1,214,550
</TABLE>
<TABLE>
<CAPTION>
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SALES NUMBER OF
PORTFOLIO/PROPERTY PRICE PROPERTIES SQ. FEET DATE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Atlantic Industrial $ 1,700,000 (1) 85,548 8/21/98
(1) One building at Atlantic Industrial was sold on 8/21/98. The remaining 102,295 square feet is included in the real estate
portfolio.
</TABLE>
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
DEBT SUMMARY
SEPTEMBER 30, 1998
Maturity
From
Debt Interest Interest Maturity 9/30/98
Loan Type Balance Rate Type Date (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
UNSECURED DEBT
Bridge Loan 147,710,269 6.930% LIBOR +1.30% 12/31/98 0.25
Line of Credit 145,139,407 6.840% LIBOR +1.25% 12/22/00 2.23
Senior Unsecured Notes 150,000,000 7.625% Fixed 3/15/05 6.46
SECURED DEBT
Cross Collateralized Loans
Secured by Fifteen Properties 115,285,829 6.750% Variable 12/20/99 1.22
Secured by Three Properties 53,676,258 6.750% Fixed 9/1/00 1.92
Secured by Nine properties 19,203,413 7.570% Fixed 1/1/06 7.25
Secured by Ten Properties 59,127,554 7.500% Fixed 10/1/22 24.00
Secured by Two Properties 6,456,779 7.250% Fixed 11/1/27 29.09
Secured by Four Properties 14,363,798 7.570% Fixed 5/10/07 8.61
Secured by Three Properties 15,750,530 6.950% Fixed 7/1/08 9.75
Individually Secured Mortgages
Office 2,071,985 8.180% Variable 10/1/00 2.00
Office 3,027,532 8.560% Fixed 10/1/01 3.00
Office 4,316,738 7.875% Fixed 11/1/02 4.09
Office 10,244,875 8.140% Fixed 10/1/03 5.00
Office 19,522,521 7.590% Fixed 12/31/03 5.25
Office 18,979,212 7.500% Fixed 1/1/04 5.25
Office 2,566,883 7.600% Fixed 10/1/04 6.00
Office 21,510,360 7.250% Fixed 1/31/05 6.33
Office 4,448,450 8.870% Fixed 9/1/05 6.92
Office 817,967 8.000% Fixed 9/1/05 6.92
Office 21,117,277 7.520% Fixed 12/1/05 7.17
Office 2,000,000 8.500% Variable 6/24/99 0.73
Office/Flex 1,442,000 7.500% Fixed 12/31/98 0.25
Office/Flex 1,278,000 7.500% Fixed 12/31/98 0.25
Office/Flex 1,383,508 9.250% Fixed 12/1/00 2.17
Office/Flex 3,324,842 9.250% Fixed 7/1/01 2.75
Office/Flex 2,822,029 8.125% Fixed 6/1/07 8.67
Office/Flex 805,096 8.375% Fixed 10/1/10 12.00
Office/Flex 718,147 7.411% Variable 5/1/17 18.59
Office/Flex 2,425,990 7.750% Fixed 8/1/06 7.84
Industrial 10,214,665 8.050% Fixed 4/10/04 5.53
Industrial 3,904,447 8.250% Fixed 11/1/06 8.09
Industrial 4,788,021 6.950% Fixed 7/1/08 9.75
Retail 4,916,466 8.480% Fixed 11/30/05 7.17
Retail 5,033,475 8.470% Fixed 1/1/07 8.25
Retail 4,381,699 8.820% Fixed 2/1/07 8.34
Hotel 4,307,039 8.000% Fixed 1/1/06 7.25
Multifamily 3,810,032 7.835% Fixed 9/1/05 6.92
Multifamily 12,129,898 7.835% Fixed 9/1/05 6.92
Multifamily 6,303,862 7.835% Fixed 10/1/05 7.00
Multifamily 7,131,570 7.500% Fixed 3/1/21 22.42
Multifamily 3,173,221 7.600% Fixed 12/1/30 32.17
Multifamily 3,114,767 7.600% Fixed 12/1/30 32.17
Multifamily 2,484,249 7.600% Fixed 12/1/30 32.17
Multifamily 2,382,223 7.500% Fixed 5/1/21 22.59
Multifamily 2,297,376 7.600% Fixed 12/1/30 32.17
Multifamily 1,586,610 7.600% Fixed 12/1/30 32.17
Multifamily 1,015,757 7.850% Fixed 12/1/30 32.17
Multifamily 731,356 7.850% Fixed 12/1/30 32.17
---------------- -------------- ----------------
Total Debt/Weighted Interest Rate & Maturity $935,243,982 7.250% 5.79
</TABLE>
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
DEBT SUMMARY
SEPTEMBER 30, 1998
Relative Weighted
Total Percentage Average
Debt Type Amount Of All Debt Rate
- ---------------------------------------------- ------------------------ ---------------------------- -----------------------
<S> <C> <C> <C>
All Debt $ 935,243,982 100.00% 7.25%
Debt Summarized by Rate:
All Floating Rate Debt 412,925,637 44.15% 6.86%
Floating Rate Debt Capped 116,003,976 12.40% 6.75%
Floating Rate Debt Not Capped 296,921,661 31.76% 6.91%
All Fixed Rate Debt 522,318,345 55.85% 7.56%
Debt Summarized by Loan Type:
Total Unsecured Debt 442,849,676 47.35% 7.14%
Total Secured Debt 492,394,306 52.65% 7.35%
</TABLE>
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
CORPORATE SUMMARY
September 30, 1998
For the Period: 1997
-----------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- --------------------------------------------------------------------------------------------------------------
OPERATING RESULTS
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<S> <C> <C> <C> <C> <C>
Net Income before Minority Interests $ 2,594,000$ 4,639,000 $ 4,958,000$ 9,139,000 $ 21,330,000
Plus:
Depreciation and amortization 1,537,000 2,507,000 4,823,000 6,006,000 14,873,000
Adjustment to reflect FFO of 623,000 248,000 (776,000) 1,205,000 1,300,000
Associated Companies
Prepayment penalty on mortgage loan - - 75,000 - 75,000
payoff
Net loss on sale of marketable - - - - -
securities
Less:
(Net gain) reduction in prior period - (570,000) 15,000 (284,000) (839,000)
gain on sales of rental properties
Gain on collection of note receivable (154,000) (498,000) - - (652,000)
Preferred stock dividend
Funds from operations (FFO) (1) 4,600,000 6,326,000 9,095,000 16,066,000 36,087,000
Plus:
Amortization of deferred financing 64,000 64,000 46,000 47,000 221,000
fees
Less:
Capital reserve in excess of 110,000 220,000 204,000 748,000 1,282,000
expenditures
Capital expenditures (incl. T.I.'s & 421,000 541,000 853,000 876,000 2,691,000
comm.)
Cash available for distribution (CAD)(1)$ 4,133,000$ 5,629,000 $ 8,084,000$ 14,489,000 $ 32,335,000
Cash flows from
Operating Activities 724,000 7,849,000 8,739,000 6,766,000 24,078,000
Investing Activities (990,000) (12,309,000) (248,921,000) (196,241,000) (569,242,000)
Financing Activities 41,514,000 75,990,000 239,600,000 191,775,000 548,879,000
Ratio of earnings to fixed charges (1) 2.64 3.08 2.89 3.81 3.21
Ratio of earnings to fixed charges & 2.64 3.08 2.89 3.81 3.21
preferred dividends (1)
Cumulative capital reserves in excess 56,000 276,000 480,000 1,228,000 1,228,000
of expenditures
- --------------------------------------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------------------------------------
EBIDA (including G & A expenses)
Combined total $ 5,550,000$ 8,304,000 $ 12,413,000$ 18,114,000 $ 44,381,000
Compounded growth from same period 86.7% 181.0% 274.1% 260.3% 210.9%
prior year
Net Operating Income (NOI)-Property
Level (2)
Same property $ 4,564,728$ 3,632,098$ 7,174,550$ 7,624,409 $ 22,995,785
Growth from same period prior year 7.0% 5.4% 3.1% 9.0% 6.2%
Tenant retention % (commercial 80.2% 38.8% 55.6% 50.7% 52.9%
portfolio)
Net Income excluding extraordinary 2,363,000 4,241,000 4,898,000 8,709,000 20,211,000
items
Net Income including extraordinary 2,363,000 4,241,000 4,898,000 7,866,000 19,368,000
items
- -------------------------------------------------------------------------------------------------------------
(1) Please see the Glossary of Terms for a definition and other related disclosure.
(2) Reflects the performance of 53 of the 186 properties in the current portfolio and excludes hotels from
the same store
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
CORPORATE SUMMARY
September 30, 1998
For the Period: 1998
--------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- -------------------------------------------------------------------------------------------------------------
OPERATING RESULTS
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Income before Minority Interests $ 12,891,000 $ 14,517,000 $ 11,145,000 $ 38,553,000
Plus:
Depreciation and amortization 10,009,000 10,934,000 14,309,000 35,252,000
Adjustment to reflect FFO of 210,000 173,000 1,163,000 1,546,000
Associated Companies
Prepayment penalty on mortgage loan - - - -
payoff
Net loss on sale of marketable - - 12,000 12,000
securities
Less:
(Net gain) reduction in prior period (1,446,000) (693,000) 238,000 (1,901,000)
gain on sales of rental properties
Gain on collection of note receivable -
Preferred stock dividend (3,910,000) (5,570,000) (5,570,000) (15,050,000)
Funds from operations (FFO) (1) 17,754,000 19,361,000 21,297,000 58,412,000
Plus:
Amortization of deferred financing 418,000 174,000 406,000 998,000
fees
Less:
Capital reserve in excess of 1,088,000 330,000 69,000 1,487,000
expenditures
Capital expenditures (incl. T.I.'s 1,122,000 2,870,000 3,789,000 7,781,000
& comm.)
Cash available for distribution (CAD)(1)$ 15,962,000 $ 16,335,000 $ 17,845,000 $ 50,142,000
Cash flows from
Operating Activities 15,327,000 17,327,000 34,023,000 66,677,000
Investing Activities (383,526,000) (185,908,000) (64,432,000) (633,866,000)
Financing Activities 369,795,000 195,000,000 4,705,000 569,500,000
Ratio of earnings to fixed charges (1) 2.41 2.46 1.60 2.03
Ratio of earnings to fixed charges & 1.69 1.57 1.21 1.44
preferred dividends (1)
Cumulative capital reserves in excess 2,316,000 2,646,000 2,715,000 2,715,000
of expenditures
- -------------------------------------------------------------------------------------------------------------
OTHER INFORMATION
- -------------------------------------------------------------------------------------------------------------
EBIDA (including G & A expenses)
Combined total $ 30,599,000 $ 34,465,000 $ 42,617,000 $ 107,681,000
Compounded growth from same period 451.3% 315.0% 243.3% 309.9%
prior year
Net Operating Income (NOI)-Property
Level (2)
Same property $ 4,779,000 $ 3,933,000 $ 7,571,000 $ 16,283,000
Growth from same period prior year 4.7% 8.3% 5.5% 6.2%
Tenant retention % (commercial 64.1% 63.6% 45.5% 58.7%
portfolio)
Net Income excluding extraordinary 12,213,000 13,921,000 10,510,000 36,644,000
items
Net Income including extraordinary 12,213,000 13,921,000 10,510,000 36,644,000
items
- ------------------------------------------------------------------------------------------------------------
(1) Please see the Glossary of Terms for a definition and other related disclosure.
(2) Reflects the performance of 53 of the 186 properties in the current portfolio and excludes hotels from
the same store calculation.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
CORPORATE SUMMARY
September 30, 1998
For the Period: 1997
-----------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- --------------------------------------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Basic weighted average shares 10,089,331 13,188,504 19,395,779 29,033,945 17,982,817
outstanding for EPS
Diluted wtd avg shares outstanding 10,256,129 13,432,442 21,132,947 31,450,823 19,517,543
for EPS
Diluted wtd avg shares for 10,935,951 14,466,852 21,194,507 31,512,511 19,688,489
calculation of FFO and CAD
Diluted CAD per share $ 0.38 $ 0.39 $ 0.38 $ 0.46 $ 1.64
Basic net income per share before $ 0.23 $ 0.32 $ 0.25 $ 0.30 $ 1.12
extraordinary items available to
common shareholders (1)
Diluted net income per share before $ 0.23 $ 0.32 $ 0.24 $ 0.29 $ 1.09
extraordinary items available to
common shareholders(1)
FFO multiplier (Price/FFO) 11.90 14.35 16.10 14.52 16.19
Debt coverage ratio 3.27 3.43 4.40 4.78 4.14
Interest coverage ratio 3.68 3.84 4.83 5.65 4.70
Total dividends (common shares & OP $ 4,541,123 $ 6,862,723 $ 10,690,156 $ 14,243,319 $ 36,337,321
units)
Dividend per share $ 0.32 $ 0.32 $ 0.32 $ 0.42 $ 1.38
Dividend payout ratio (CAD) 84.2% 82.1% 84.2% 91.3% 84.1%
Total Preferred Dividends
Preferred Dividends per share
Total notes and mortgages payable 59,007,256 152,681,076 257,444,753 228,298,813 228,298,813
Preferred Stock at Par Value
Total market capitalization (2) 335,120,716 511,004,053 869,525,089 1,232,961,514 1,232,961,514
Percent increase from same period 175% 319% 491% 379% 379%
prior year
Debt/Total market capitalization 17.6% 29.9% 29.6% 18.5% 18.5%
Preferred shares outstanding (at end - - - - -
of period)
Price per share on last trading day - - - - -
Common shares outstanding (at end of 13,161,553 13,194,692 20,174,692 31,547,256 31,547,256
period)
Common shares and OP Units 13,805,673 14,191,009 22,106,739 33,912,665 33,912,665
outstanding (at end of period)
Fully converted common shares and OP 13,805,673 14,191,009 22,106,739 33,912,665 33,912,665
units (at end of period) (3)
Price per share on last trading day $ 20.00 $ 25.25 $ 27.69 $ 29.63 $ 29.63
- --------------------------------------------------------------------------------------------------------------
(1) Net income per share is computed independently for each quarter and the full year based on the respective weighted
average number of common shares outstanding; therefore; the sum of the quarterly income per share data may not equal
the net income per share for the year.
(2) Includes minority interest in UPREIT Partnership.
(3) Includes outstanding Preferred shares converted to 8,757,234 shares of common stock.
(4) Prorated for the portion of the quarter the Preferred Stock was outstanding.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
CORPORATE SUMMARY
September 30, 1998
For the Period: 1998
----------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- --------------------------------------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Basic weighted average shares 31,548,706 31,648,041 31,703,963 31,634,138
outstanding for EPS
Diluted wtd avg shares outstanding 34,372,364 34,868,905 36,261,228 35,114,838
for EPS
Diluted wtd avg shares for 34,372,364 34,868,905 36,261,228 35,114,838
calculation of FFO and CAD
Diluted CAD per share $ 0.46 $ 0.47 $ 0.49 $ 1.43
Basic net income per share before $ 0.26 $ 0.26 $ 0.16 $ 0.68
extraordinary items available to
common shareholders (1)
Diluted net income per share before $ 0.26 $ 0.26 $ 0.15 $ 0.67
extraordinary items available to
common shareholders(1)
FFO multiplier (Price/FFO) 14.00 11.77 9.00 9.00
Debt coverage ratio 3.24 3.26 2.28 2.78
Interest coverage ratio 3.51 3.62 2.56 3.08
Total dividends (common shares & OP $ 14,245,996 $ 14,587,375 $ 15,107,831 $ 43,941,202
units)
Dividend per share $ 0.42 $ 0.42 $ 0.42 $ 1.26
Dividend payout ratio (CAD) 91.3% 89.4% 85.7% 88.1%
Total Preferred Dividends $ 3,910,000 $ 5,570,000 $ 5,570,000 $ 15,050,000
Preferred Dividends per share 0.34(4) 0.48 0.48 1.30
Total notes and mortgages payable 442,415,005 868,406,026 935,243,982 935,243,982
Preferred Stock at Par Value 287,500,000 287,500,000 287,500,000 287,500,000
Total market capitalization (2) 1,717,807,016 2,092,990,733 1,987,128,263 1,987,128,263
Percent increase from same period 413% 310% 129% 129%
prior year
Debt/Total market capitalization 25.8% 41.5% 47.1% 47.1%
Preferred shares outstanding (at end 11,500,000 11,500,000 11,500,000 11,500,000
of period)
Price per share on last trading day $ 26.13 $ 24.38 $ 20.38 $ 20.38
Common shares outstanding (at end of 31,549,756 31,685,322 31,737,286 31,737,286
period)
Common shares and OP Units 33,919,039 35,529,278 35,971,025 35,971,025
outstanding (at end of period)
Fully converted common shares and OP 42,676,273 44,286,512 44,728,259 44,728,259
units (at end of period) (3)
Price per share on last trading day $ 29.13 $ 26.38 $ 21.25 $ 21.25
- --------------------------------------------------------------------------------------------------------------
(1) Net income per share is computed independently for each quarter and the full year based on the respective weighted
average number of common shares outstanding; therefore, the sum of the quarterly income per share data may not equal
the net income per share for the year.
(2) Includes minority interest in UPREIT Partnership.
(3) Includes outstanding Preferred shares converted to 8,757,234 shares of common stock.
(4) Prorated for the portion of the quarter the Preferred Stock was outstanding.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
OFFICE PORTFOLIO
September 30, 1998
For the Period: 1997
----------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- -------------------------------------------------------------------------------------------------------------
OPERATING RESULTS (1)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same-Property (2)
Revenue $ 2,342,654 $ 2,371,488 $ 5,960,948 $ 6,109,519 $ 16,784,609
Operating expenses 1,082,311 1,111,476 2,600,440 2,588,842 7,383,069
NOI 1,260,343 1,260,012 3,360,508 3,520,678 9,401,541
Growth from same period prior year 9.0% -4.3% 7.2% 9.4% 7.0%
Combined Total
Revenue $ 2,342,654 $ 4,268,632 $ 7,597,307 $10,862,358 $ 25,070,951
Operating expenses 1,082,311 1,939,135 2,960,056 4,004,799 9,986,301
NOI 1,260,343 2,329,497 4,637,251 6,857,559 15,084,650
Growth from same period prior year(3) 548.9% 948.1% 646.8% 485.6% 583.1%
Capital expenditures (excludes TI & $ 19,663 $ 51,787 $ 188,196 $ 51,995 $ 311,641
CLC)
Weighted average leaseable sq ft 642,323 1,088,395 1,754,151 2,495,818 1,495,172
Capital expenditures per leaseable 0.03 0.05 0.11 0.02 0.21
sq ft
- -------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS (AT END OF PERIOD): (1)
- -------------------------------------------------------------------------------------------------------------
Same-Property (2)
Physical occupancy 93.4% 92.0% 95.1% 94.8% 94.8%
Economic occupancy 90.0% 89.5% 90.3% 93.0% 93.0%
Average effective rent per occupied 13.68 14.28 14.92 14.71 14.71
sq ft
Increase from same period prior year 3.9% 7.9% 4.8% 9.6% 9.6%
Revenue per occupied sq ft 15.61 16.05 17.32 17.77 17.77
Increase from same period prior year 3.1% 6.3% 2.4% 9.9% 9.9%
Combined Total
Physical occupancy 93.4% 93.4% 95.2% 93.1% 93.1%
Economic occupancy 90.0% 92.8% 91.7% 92.9% 92.9%
Average effective rent per occupied 13.68 13.75 15.88 15.81 15.81
sq ft
Increase from same period prior year 4.6% 6.2% 20.5% 16.1% 16.1%
Revenue per occupied sq ft 15.61 16.67 18.47 18.15 18.15
Increase from same period prior year 13.5% 22.5% 21.8% 18.0% 18.0%
- -------------------------------------------------------------------------------------------------------------
(1) Numbers exclude corporate headquarter building.
(2) Reflects performance of 18 of the 55 properties in the current portfolio.
(3) Reflects acquisition activity.
(4) Average effective rent has trended downward as a result of recent acquisitions.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
OFFICE PORTFOLIO
September 30, 1998
For the Period: 1997
-------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- -------------------------------------------------------------------------------------------------------------
OPERATING RESULTS (1)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same-Property (2)
Revenue $ 2,584,425 $ 2,541,816 $ 6,521,473 $ 11,647,714
Operating expenses 1,130,202 1,154,046 2,926,755 5,211,003
NOI 1,454,223 1,387,770 3,594,718 6,436,711
Growth from same period prior year 15.4% 10.1% 7.0% 10.8%
Combined Total
Revenue $ 25,818,923 $ 29,635,839 $30,712,868 $ 86,167,630
Operating expenses 9,482,761 10,889,688 12,122,361 32,494,810
NOI 16,336,162 18,746,151 18,590,507 53,672,820
Growth from same period prior year(3) 1196.2% 704.7% 300.9% 552.4%
Capital expenditures (excludes TI & $ 198,608 $ 259,273 $ 583,973 $ 1,041,854
CLC)
Weighted average leaseable sq ft 5,686,523 6,482,993 6,880,581 6,350,033
Capital expenditures per leaseable 0.03 0.04 0.08 0.16
sq ft
- -------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS (AT END OF PERIOD): (1)
- -------------------------------------------------------------------------------------------------------------
Same-Property (2)
Physical occupancy 93.1% 93.4% 95.4% 95.4%
Economic occupancy 89.9% 89.5% 92.2% 92.2%
Average effective rent per occupied 14.60 14.56 14.94 14.94
sq ft
Increase from same period prior year 6.8% 2.0% 0.1% 0.1%
Revenue per occupied sq ft 17.28 16.93 18.86 18.86
Increase from same period prior year 10.7% 5.5% 8.9% 8.9%
Combined Total
Physical occupancy 95.7% 94.9% 93.8% 93.8%
Economic occupancy 93.3% 93.5% 93.4% 93.4%
Average effective rent per occupied 14.77 15.68 15.68 15.68
sq ft
Increase from same period prior year 8.0% 14.0% -1.2%(4) -1.2%
Revenue per occupied sq ft 18.69 19.27 19.03 19.03
Increase from same period prior year 19.7% 15.6% 3.0% 3.0%
- ------------------------------------------------------------------------------------------------------------
(1) Numbers exclude corporate headquarter building.
(2) Reflects performance of 18 of the 55 properties in the current portfolio.
(3) Reflects acquisition activity.
(4) Average effective rent has trended downward as a result of recent acquisitions.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
OFFICE PORTFOLIO
September 30, 1998
For the Period: 1997
--------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- --------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: NEW (1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Square footage leased 8,505 12,272 14,786 22,684 58,247
Rental dollars $ 181,092 $ 226,705 $ 254,294 $ 412,845 $ 1,074,936
Average base rent per sq ft 21.29 18.47 17.20 18.20 18.45
Concessions (2) 10,086 - 6,982 8,128 25,196
Concessions per sq ft leased 1.19 - 0.47 0.36 0.43
Tenant improvements (TI) committed 53,680 75,700 94,316 119,422 343,118
TI committed per sq ft leased 6.31 6.17 6.38 5.26 5.89
TI spent 57,688 77,223 47,430 152,172 334,513
Capitalized leasing commissions (CLC) 18,499 20,475 48,819 77,204 164,997
committed
CLC committed per sq ft leased 2.18 1.67 3.30 3.40 2.83
CLC spent 37,133 26,029 34,423 84,013 181,599
CLC and TI committed per sq ft leased 8.49 7.84 9.68 8.67 8.72
- --------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: RENEWAL/EXPANSION (1)
- --------------------------------------------------------------------------------------------------------------
Tenant Retention 71% 36% 78% 65% 65%
Square footage leased 22,570 15,144 32,603 45,790 116,107
Rental dollars $ 350,087 $ 229,914 $ 547,472 $ 864,156 $ 1,991,629
Average base rent 15.51 15.18 16.79 18.87 17.15
Increase in effective rents from 36.2% 12.8% 5.9% 16.5% 17.9%
renewals
Concessions (2) - 650 - 9,295 9,945
Concessions per sq ft leased - 0.04 - 0.20 0.09
Tenant improvements (TI) committed 64,036 35,168 126,192 159,169 384,565
TI committed per sq ft leased 2.84 2.32 3.87 3.48 3.31
TI spent 40,125 18,759 147,769 105,999 312,652
Capitalized leasing commissions (CLC) 9,357 6,661 6,987 58,061 81,066
committed
CLC committed per sq ft leased 0.41 0.44 0.21 1.27 0.70
CLC spent 9,230 8,214 6,730 (3,400)(3) 20,774
CLC and TI committed per sq ft leased 3.25 2.76 4.08 4.74 4.01
- --------------------------------------------------------------------------------------------------------------
(1) Numbers exclude Corporate headquarter building.
(2) Quarterly concessions restated to reflect consistent methodology.
(3) Reflects reversal of prior quarter leasing commission.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
OFFICE PORTFOLIO
September 30, 1998
For the Period: 1998
-----------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- -----------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: NEW (1)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Square footage leased 31,839 34,380 61,126 127,345
Rental dollars $ 605,370 $ 649,340 $ 1,182,910 $ 2,437,620
Average base rent per sq ft 19.01 18.89 19.35 19.14
Concessions (2) - 17,195 - 17,195
Concessions per sq ft leased - 0.50 - 0.14
Tenant improvements (TI) committed 283,512 219,172 487,621 990,305
TI committed per sq ft leased 8.90 6.37 7.98 7.78
TI spent 169,226 708,606 225,229 1,103,061
Capitalized leasing commissions (CLC) 108,223 94,647 264,844 467,714
committed
CLC committed per sq ft leased 3.40 2.75 4.33 3.67
CLC spent 73,867 192,606 119,100 385,573
CLC and TI committed per sq ft leased 12.30 9.13 12.31 11.45
- -----------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: RENEWAL/EXPANSION (1
- -----------------------------------------------------------------------------------------------------------
Tenant Retention 67% 80% 57% 69.7%
Square footage leased 47,942 141,359 84,451 273,752
Rental dollars $ 828,478 $ 2,458,601 $ 1,590,742 $ 4,877,821
Average base rent 17.28 17.39 18.84 17.82
Increase in effective rents from 9.7% 24.3% 33.3% 22.4%
renewals
Concessions (2) 4,686 - 5,394 10,080
Concessions per sq ft leased 0.10 - 0.06 0.04
Tenant improvements (TI) committed 123,290 617,865 302,318 1,043,473
TI committed per sq ft leased 2.57 4.37 3.58 3.81
TI spent 90,454 349,372 198,206 638,032
Capitalized leasing commissions (CLC) 35,179 230,093 61,732 327,004
committed
CLC committed per sq ft leased 0.73 1.63 0.73 1.19
CLC spent 18,659 144,300 74,289 237,248
CLC and TI committed per sq ft leased 3.30 6.00 4.31 5.00
- -----------------------------------------------------------------------------------------------------------
(1) Numbers exclude Corporate headquarter building.
(2) Quarterly concessions restated to reflect consistent methodology.
(3) Reflects reversal of prior quarter leasing commission.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
OFFICE/FLEX PORTFOLIO
September 30, 1998
For the Period: 1997
--------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- --------------------------------------------------------------------------------------------------------------
OPERATING RESULTS
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same-Property (1)
Revenue 385,324 381,422 1,586,001 1,700,914 4,053,661
$ $ $ $ $
Operating expenses 104,172 107,620 532,083 551,653 1,295,528
NOI 281,152 273,802 1,053,918 1,149,261 2,758,133
Growth from same period prior year 32.4% 32.6% -41.3% -35.8% -5.5%
Combined Total
Revenue 385,324 1,429,963 2,417,606 6,121,363 10,354,256
$ $ $ $ $
Operating expenses 104,172 398,932 765,416 1,793,850 3,062,370
NOI 281,152 1,031,031 1,652,190 4,327,513 7,291,886
Growth from same period prior year (2) 137.6% 1204.2% 4454.0% 1600.0% 1393.5%
Capital expenditure (excludes TI & $ - $ 498 $ 16,804 $ 21,713 $ 39,015
CLC)
Weighted average leaseable sq ft 247,506 904,914 1,424,566 3,133,998 1,427,746
Capital expenditures per leaseable 0.00 0.00 0.01 0.01 0.03
sq ft
- --------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS (AT END OF PERIOD):
- --------------------------------------------------------------------------------------------------------------
Same-Property (1)
Physical occupancy 95.7% 93.5% 94.2% 93.6% 93.6%
Economic occupancy 95.7% 93.5% 92.4% 92.6% 92.6%
Average effective rent per occupied 5.58 5.63 6.70 6.73 6.73
sq ft
Increase from same period prior year 9.3% 12.0% -12.0% 9.7% 9.7%
Revenue per occupied sq ft 6.51 6.59 7.17 7.74 7.74
Increase from same period prior year 4.9% 45.8% -17.1% 5.7% 5.7%
Combined Total
Physical occupancy 95.7% 86.5% 95.0% 91.3% 91.3%
Economic occupancy 95.7% 94.9% 92.4% 92.3% 92.3%
Average effective rent per occupied 5.58 6.82 6.30 7.17 7.17
sq ft
Increase from same period prior year -13.7% 21.8% 6.7% 30.5% 30.5%
Revenue per occupied sq ft 6.51 7.47 7.43 8.69 8.69
Increase from same period prior year -4.4% 33.5% 21.2% 31.5% 31.5%
- --------------------------------------------------------------------------------------------------------------
(1) Reflects performance of 15 of the 49 properties.
(2) Reflects acquisition activity.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
OFFICE/FLEX PORTFOLIO
September 30, 1998
For the Period: 1998
-----------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- ------------------------------------------------------------------------------------------------------------
OPERATING RESULTS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same-Property (1)
Revenue $ 391,142 $ 394,584 $ 1,593,043 $ 2,378,769
Operating expenses 121,748 130,429 588,988 841,165
NOI 269,394 264,155 1,004,055 1,537,604
Growth from same period prior year -4.2% -3.5% -4.7% -4.1%
Combined Total
Revenue $ 8,578,557 $ 9,015,232 $ 9,469,146 $27,062,935
Operating expenses 2,569,126 2,681,086 2,915,212 8,165,424
NOI 6,009,431 6,334,146 6,553,934 18,897,511
Growth from same period prior year(2) 2037.4% 514.4% 296.7% 537.5%
Capital expenditure (excludes TI & $ 39,005 $ 118,497 $ 344,245 $ 501,747
CLC)
Weighted average leaseable sq ft 3,962,346 3,978,774 4,536,877 4,159,332
Capital expenditures per leaseable 0.01 0.03 0.08 0.12
sq ft
- ------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS (AT END OF PERIOD):
- ------------------------------------------------------------------------------------------------------------
Same-Property (1)
Physical occupancy 91.8% 84.5% 90.9% 90.9%
Economic occupancy 92.2% 81.6% 87.2% 87.2%
Average effective rent per occupied 6.20 5.96 6.81 6.81
sq ft
Increase from same period prior year 11.0% 5.7% 1.5% 1.5%
Revenue per occupied sq ft 6.88 7.55 7.47 7.47
Increase from same period prior year 5.8% 14.5% 4.1% 4.1%
Combined Total
Physical occupancy 93.2% 91.9% 92.0% 92.0%
Economic occupancy 91.1% 89.6% 90.4% 90.4%
Average effective rent per occupied 7.43 7.48 7.40 7.40
sq ft
Increase from same period prior year 33.2% 9.7% 17.5% 17.5%
Revenue per occupied sq ft 9.37 9.70 9.06 9.06
Increase from same period prior year 43.9% 29.8% 22.0% 22.0%
- ------------------------------------------------------------------------------------------------------------
(1) Reflects performance of 15 of the 49 properties.
(2) Reflects acquisition activity.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
OFFICE/FLEX PORTFOLIO
September 30, 1998
For the Period: 1997
--------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- --------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: NEW
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Square footage leased - 2,634 5,178 24,551 32,363
Rental dollars $ - $ 25,666 $ 29,152 $ 200,570 $ 255,388
Average base rent per sq ft - 9.74 5.63 8.17 7.89
Concessions (1) - - 2,382 4,027 6,409
Concessions per sq ft leased - -
0.46 0.16 0.20
Tenant improvements (TI) committed - 52,000 2,076 39,310 93,386
TI committed per sq ft leased - 19.74 0.40 1.60 2.89
TI spent - 58,829 95,755 171,051 325,635
Capitalized leasing commissions (CLC) - 6,358 2,076 26,005 34,439
committed
CLC committed per sq ft leased - 2.41 0.40 1.06 1.06
CLC spent 1,515 7,440 11,539 17,401 37,895
CLC and TI committed per sq ft leased - 22.16 0.80 2.66 3.95
- --------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: RENEWAL/EXPANSION
- --------------------------------------------------------------------------------------------------------------
Tenant Retention - 73% 42% 45% 49%
Square footage leased - 18,000 8,257 80,038 106,295
Rental dollars $ - $ 119,578 $ 57,403 $ 551,681 $ 728,662
Average base rent - 6.64 6.95 6.89 6.86
Increase in effective rents from - 52.2% 23.6% 15.6% 22.9%
renewals
Concessions (1) - - - 11,677 11,677
Concessions per sq ft leased - - - 0.09 0.07
Tenant improvements (TI) committed - 8,000 43,004 91,055 142,059
TI committed per sq ft leased - 0.44 5.21 1.14 1.34
TI spent - - 1,029 35,352 36,381
Capitalized leasing commissions (CLC) - 5,359 9,174 14,151 28,684
committed
CLC committed per sq ft leased - 0.30 1.11 0.18 0.27
CLC spent - - 4,549 13,491 18,040
CLC and TI committed per sq ft leased - 0.74 6.32 1.31 1.61
- --------------------------------------------------------------------------------------------------------------
(1) Quarterly concessions restated to reflect consistent methodology.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
OFFICE/FLEX PORTFOLIO
September 30, 1998
For the Period: 1998
-----------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- -----------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: NEW
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Square footage leased 33,216 115,635 65,275 214,126
Rental dollars $ 320,823 $ 1,175,744 $ 841,254 $ 2,337,821
Average base rent per sq ft 9.66 10.17 12.89 10.92
Concessions (1) 15,618 4,432 18,217 38,267
Concessions per sq ft leased 0.47 0.04 0.28 0.18
Tenant improvements (TI) committed 140,072 869,942 250,319 1,260,333
TI committed per sq ft leased 4.22 7.52 3.83 5.89
TI spent 61,216 289,840 922,362 1,273,418
Capitalized leasing commissions (CLC) 70,168 292,089 125,560 487,817
committed
CLC committed per sq ft leased 2.11 2.53 1.92 2.28
CLC spent 46,414 236,114 171,611 454,139
CLC and TI committed per sq ft leased 6.33 10.05 5.75 8.17
- -----------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: RENEWAL/EXPANSION
- -----------------------------------------------------------------------------------------------------------
Tenant Retention 58% 60% 38% 53%
Square footage leased 120,102 228,825 80,316 429,243
Rental dollars $ 773,215 $ 1,674,685 $ 733,186 $ 3,181,086
Average base rent 6.44 7.32 9.13 7.41
Increase in effective rents from 47.1% 21.1% 21.5% 29.9%
renewals
Concessions (1) 1,047 23,784 - 24,831
Concessions per sq ft leased 0.01 0.10 - 0.06
Tenant improvements (TI) committed 38,171 494,154 80,010 612,335
TI committed per sq ft leased 0.32 2.16 1.00 1.43
TI spent 57,687 115,201 48,294 221,182
Capitalized leasing commissions (CLC) 31,559 145,150 37,699 214,408
committed
CLC committed per sq ft leased 0.26 0.63 0.47 0.50
CLC spent 25,036 143,707 18,933 187,676
CLC and TI committed per sq ft leased 0.58 2.79 1.47 1.93
- -----------------------------------------------------------------------------------------------------------
(1) Quarterly concessions restated to reflect consistent methodology.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
INDUSTRIAL PORTFOLIO
September 30, 1998
For the Period: 1997
--------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- --------------------------------------------------------------------------------------------------------------
OPERATING RESULTS
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same-Property (1)
Revenue $ 1,050,168 $ 1,077,035 $ 1,406,933 $ 1,563,660 $ 5,097,796
Operating expenses 175,205 174,781 273,704 299,294 922,984
NOI 874,963 902,254 1,133,229 1,264,366 4,174,812
Growth from same period prior year 10.7% 0.6% -1.4% -2.2% 1.7%
Combined Total
Revenue $ 1,050,168 $ 1,390,927 $ 1,797,234 $ 3,082,351 $ 7,320,680
Operating expenses 175,205 249,393 358,614 676,169 1,459,381
NOI 874,963 1,141,534 1,438,620 2,406,182 5,861,299
Growth from same period prior year(2) 28.8% 54.2% 96.5% 176.4% 93.9%
Capital expenditure (excludes TI & $ 54,415 $ 11,334 $ 440 $ 111,761 $ 177,951
CLC)
Weighted average leaseable sq ft 1,778,862 1,950,911 2,329,463 3,269,372 2,332,152
Capital expenditures per leaseable 0.03 0.01 0.01 0.03 0.08
sq ft
- --------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS (AT END OF PERIOD):
- --------------------------------------------------------------------------------------------------------------
Same-Property (1)
Physical occupancy 99.3% 99.3% 99.4% 99.4% 99.4%
Economic occupancy 98.4% 96.5% 96.6% 98.7% 98.7%
Average effective rent per occupied 2.32 2.34 2.69 2.74 2.74
sq ft
Increase from same period prior year 8.0% 1.2% -0.8% -0.1% -0.1%
Revenue per occupied sq ft 2.38 2.44 2.78 3.09 3.09
Increase from same period prior year 7.7% 3.2% -3.5% -0.6% -0.6%
Combined Total (2)
Physical occupancy 99.3% 99.4% 98.9% 97.4% 97.4%
Economic occupancy 98.4% 97.2% 96.9% 97.6% 97.6%
Average effective rent per occupied 2.32 2.74 3.29 3.36 3.36
sq ft
Increase from same period prior year 9.5% 19.9% 44.5% 39.5% 39.5%
Revenue per occupied sq ft 2.38 2.98 3.70 3.89 3.89
Increase from same period prior year 9.3% 31.5% 57.8% 62.0% 62.0%
- --------------------------------------------------------------------------------------------------------------
(1) Reflects the performance of 11 of the 32 industrial properties in the current portfolio.
(2) Reflects acquisition activity.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
INDUSTRIAL PORTFOLIO
September 30, 1998
For the Period: 1998
-----------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- -----------------------------------------------------------------------------------------------------------
OPERATING RESULTS
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same-Property (1)
Revenue $ 1,088,532 $ 1,134,429 $ 1,523,990 $ 3,746,951
Operating expenses 174,295 203,122 328,467 705,884
NOI 914,237 931,307 1,195,523 3,041,067
Growth from same period prior year 4.5% 3.2% 5.5% 4.4%
Combined Total
Revenue $ 3,293,416 $ 3,478,946 $ 4,665,760 $11,438,122
Operating expenses 799,898 850,802 1,119,123 2,769,823
NOI 2,493,518 2,628,144 3,546,637 8,668,299
Growth from same period prior year(2) 185.0% 130.2% 146.5% 150.9%
Capital expenditure (excludes TI & $ 10,239 $ 34,349 $ 60,006 $ 104,594
CLC)
Weighted average leaseable sq ft 3,315,654 3,430,898 4,265,126 3,670,559
Capital expenditures per leaseable 0.00 0.01 0.01 0.03
sq ft
- -----------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS (AT END OF PERIOD):
- -----------------------------------------------------------------------------------------------------------
Same-Property (1)
Physical occupancy 96.7% 100.0% 97.7% 97.7%
Economic occupancy 97.5% 97.5% 98.5% 98.5%
Average effective rent per occupied 2.44 2.43 2.87 2.87
sq ft
Increase from same period prior year 5.4% 4.0% 6.5% 6.5%
Revenue per occupied sq ft 2.53 2.55 3.07 3.07
Increase from same period prior year 6.5% 4.6% 10.2% 10.2%
Combined Total (2)
Physical occupancy 96.1% 97.0% 96.0% 96.0%
Economic occupancy 96.3% 95.5% 95.6% 95.6%
Average effective rent per occupied 3.35 3.46 3.92 3.92
sq ft
Increase from same period prior year 44.7% 26.3% 19.0% 19.0%
Revenue per occupied sq ft 4.08 4.14 4.56 4.56
Increase from same period prior year 71.5% 38.9% 23.2% 23.2%
- -----------------------------------------------------------------------------------------------------------
(1) Reflects the performance of 11 of the 32 industrial properties in the current portfolio.
(2) Reflects acquisition activity.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
INDUSTRIAL PORTFOLIO
September 30, 1998
For the Period: 1997
--------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- --------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: NEW
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Square footage leased - 55,248 - 12,758 68,006
Rental dollars $ - $ 168,511 $ - $ 39,550 $ 208,061
Average base rent per sq ft - 3.05 - 3.10 3.06
Concessions (1) - 15,429 - - 15,429
Concessions per sq ft leased - 0.28 - - 0.23
Tenant improvements (TI) committed - 30,551 - 7,818 38,369
TI committed per sq ft leased - 0.55 - 0.61 0.56
TI spent 1,534 3,210 31,749 3,799 40,292
Capitalized leasing commissions (CLC) - 50,518 - 11,864 62,382
committed
CLC committed per sq ft leased - 0.91 - 0.93 0.92
CLC spent 8,469 26,298 24,813 6,657 66,237
CLC and TI committed per sq ft leased - 1.47 - 1.54 3.01
- --------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: RENEWAL/EXPANSION
- --------------------------------------------------------------------------------------------------------------
Tenant Retention 100% 31% 39% 48% 48%
Square footage leased 41,372 36,999 14,832 36,846 130,049
Rental dollars $ 142,971 $ 108,576 $ 45,979 $ 179,560 $ 477,086
Average base rent 3.46 2.93 3.10 4.87 3.67
Increase in effective rents from 14.8% 36.4% 45.5% 14.7% 27.9%
renewals
Concessions (1) - - - - -
Concessions per sq ft leased - - - - -
Tenant improvements (TI) committed 79,216 3,239 6,680 600 89,735
TI committed per sq ft leased 1.91 0.09 0.45 0.02 0.69
TI spent - 81,874 - 6,394 88,268
Capitalized leasing commissions (CLC) 21,923 14,947 5,518 2,189 44,577
committed
CLC committed per sq ft leased 0.53 0.40 0.37 0.06 0.34
CLC spent 2,019 33,368 - 5,001 40,388
CLC and TI committed per sq ft leased 2.44 0.49 0.82 0.08 1.03
- --------------------------------------------------------------------------------------------------------------
(1) Quarterly concessions restated to reflect consistent methodology.
(2) Tenant improvements were unusually high due to the creation of a new tenant suite at one of the properties.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
INDUSTRIAL PORTFOLIO
September 30, 1998
For the Period: 1998
-----------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- ------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: NEW
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Square footage leased 11,205 48,000 - 59,205
Rental dollars $ 39,218 $ 184,320 $ - $ 223,538
Average base rent per sq ft 3.50 3.84 - 3.78
Concessions (1) - - - -
Concessions per sq ft leased - - - -
Tenant improvements (TI) committed 41,648 - - 41,648
TI committed per sq ft leased 3.72(2) - - 0.70
TI spent 13,204 36,971 4,193 54,368
Capitalized leasing commissions (CLC) 4,706 47,635 - 52,341
committed
CLC committed per sq ft leased 0.42 0.99 - 0.88
CLC spent 9,466 25,220 22,867 57,553
CLC and TI committed per sq ft leased 4.14 0.99 - 1.58
- ------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: RENEWAL/EXPANSION
- ------------------------------------------------------------------------------------------------------------
Tenant Retention 100% 66% 67% 74%
Square footage leased 30,084 55,510 9,075 94,669
Rental dollars $ 105,232 $ 260,202 $ 38,115 $ 403,549
Average base rent 3.50 4.69 4.20 4.26
Increase in effective rents from 9.9% 10.9% 13.5% 10.4%
renewals
Concessions (1) - - - -
Concessions per sq ft leased - - - -
Tenant improvements (TI) committed - 12,163 - 12,163
TI committed per sq ft leased - 0.22 - 0.13
TI spent - 1,417 - 1,417
Capitalized leasing commissions (CLC) 2,361 - - 2,361
committed
CLC committed per sq ft leased 0.08 - - 0.02
CLC spent 1,180 - - 1,180
CLC and TI committed per sq ft leased 0.08 0.22 - 0.15
- ------------------------------------------------------------------------------------------------------------
(1) Quarterly concessions restated to reflect consistent methodology.
(2) Tenant improvements were unusually high due to the creation of a new tenant suite at one of the properties.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
RETAIL PORTFOLIO
September 30, 1998
For the Period: 1997
--------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- ---------------------------------------------------------------------------------------------------------------
OPERATING RESULTS:
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same Property (1)
Revenue $ 1,042,561 $ 967,040 $ 1,335,021 $ 1,441,140 $ 4,785,762
Operating expenses 322,459 321,223 428,813 466,011 1,538,506
NOI 720,103 645,817 906,208 975,129 3,247,257
Growth from same period prior year 7.6% -4.5% 24.7% 69.5% 18.0%
Combined Total
Revenue $ 1,466,612 $ 1,579,107 $ 1,637,556 $ 2,541,057 $ 7,224,332
Operating expenses 373,556 411,934 538,084 859,223 2,182,797
NOI 1,093,056 1,167,173 1,099,472 1,681,834 5,041,535
Growth from same period prior year(3) 82.7% 81.1% 74.1% 90.7% 82.9%
Capital expenditures (excludes TI $ 86,970 $ 907 $ 5,139 $ 16,455 $ 109,471
and CLC)
Weighted average leaseable sq ft 630,700 734,722 753,804 979,088 774,578
Capital expenditures per leaseable 0.14 0.00 0.01 0.02 0.14
sq ft
- ---------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS (AT END OF PERIOD):
- ---------------------------------------------------------------------------------------------------------------
Same Property
Physical occupancy 97.0% 90.1% 91.8% 97.4% 97.4%
Economic occupancy 94.0% 91.4% 92.1% 95.2% 95.2%
Average effective rent per occupied 6.35 6.75 7.02 6.80 6.80
sq ft
Increase from same period prior -0.4% 3.0% 20.2% 20.4% 20.4%
year
Revenue per occupied sq ft 7.97 7.89 8.37 8.36 8.36
Increase from same period prior year 1.8% -1.7% 16.6% 26.1% 26.1%
Combined Total
Physical occupancy 96.6% 92.2% 92.8% 96.4% 96.4%
Economic occupancy 94.8% 94.0% 93.1% 94.1% 94.1%
Average effective rent per occupied 8.04 8.10 8.49 7.98 7.98
sq ft
Increase from same period prior year -26.1% -27.6% -17.8% 0.7% 0.7%
Revenue per occupied sq ft 9.63 9.25 12.13 10.77 10.77
Increase from same period prior year -23.4% -26.9% 3.4% 15.5% 15.5%
- ---------------------------------------------------------------------------------------------------------------
(1) Reflects the performance of 6 of the 13 retail properties in the current portfolio.
(2) Decrease attributable to sale of QuickTrip properties which had higher rents.
(3) Reflects acquisition activity.
(4) Revenue per occupied foot is lower than prior quarter due to the timing of recovery billings.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
RETAIL PORTFOLIO
September 30, 1998
For the Period: 1998
-----------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- ------------------------------------------------------------------------------------------------------------
OPERATING RESULTS:
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same Property (1)
Revenue $ 1,072,191 $ 1,089,454 $ 1,425,895 $ 3,587,540
Operating expenses 335,829 313,662 447,236 1,096,727
NOI 736,362 775,792 978,659 2,490,813
Growth from same period prior year 2.3% 20.1% 8.0% 10.1%
Combined Total
Revenue $ 2,387,998 $ 3,042,567 $ 3,207,799 $ 8,638,364
Operating expenses 864,791 1,071,850 948,223 2,884,864
NOI 1,523,207 1,970,717 2,259,576 5,753,500
Growth from same period prior year(3) 39.4% 68.8% 105.5% 71.3%
Capital expenditures (excludes TI $ 16,945 $ 49,482 $ 112,989 $ 179,416
and CLC)
Weighted average leaseable sq ft 979,088 1,167,524 1,234,565 1,127,059
Capital expenditures per leaseable 0.02 0.04 0.09 0.16
sq ft
- ------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS (AT END OF PERIOD):
- ------------------------------------------------------------------------------------------------------------
Same Property
Physical occupancy 97.4% 93.1% 93.1% 93.1%
Economic occupancy 94.9% 93.3% 91.7% 91.7%
Average effective rent per occupied 6.65 6.85 6.82 6.82
sq ft
Increase from same period prior 4.6% 1.5% -2.9% -2.9%
year
Revenue per occupied sq ft 7.90 8.39 8.52 8.52
Increase from same period prior year -0.9% 6.3% 1.7% 1.7%
Combined Total
Physical occupancy 96.5% 93.6% 93.3% 93.3%
Economic occupancy 94.1% 92.3% 92.3% 92.3%
Average effective rent per occupied 7.80 7.59 (2) 8.60 8.60
sq ft
Increase from same period prior year -3.0% -6.4% 1.3% 1.3%
Revenue per occupied sq ft 10.11 10.18 11.14 11.14
Increase from same period prior year 5.0% 10.0% -8.2% (4) -8.2%
- ------------------------------------------------------------------------------------------------------------
(1) Reflects the performance of 6 of the 13 retail properties in the current portfolio.
(2) Decrease attributable to sale of QuickTrip properties which had higher rents.
(3) Reflects acquisition activity.
(4) Revenue per occupied foot is lower than prior quarter due to the timing of recovery billings.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
RETAIL PORTFOLIO
September 30, 1998
For the Period: 1997
--------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- ---------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: NEW
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Square footage leased 3,381 - 2,000 - 5,381
Rental dollars $ 32,558 $ - $ 25,184 $ - $ 57,742
Average base rent per sq ft 9.63 - 12.59 - 10.73
Concessions (1) 789 - 5,533 - 6,322
Concessions per sq ft leased 0.23 - 2.77 - 1.17
Tenant improvements (TI) committed 4,110 - 21,999 - 26,109
TI committed per sq ft leased 1.22 - 11.00 - 4.85
TI spent 2,322 3,852 10,670 12,499 29,343
Capitalized leasing commissions (CLC) 8,568 - 4,604 - 13,172
committed
CLC committed per sq ft leased 2.53 - 2.30 - 2.45
CLC spent 2,808 5,760 2,252 2,252 13,072
CLC and TI committed per sq ft leased 3.75 - 13.30 - 7.30
- ---------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: RENEWAL/EXPANSION
- ---------------------------------------------------------------------------------------------------------------
Tenant Retention 36% 54% 100% 100% 52%
Square footage leased 2,850 1,100 1,549 1,200 6,699
Rental dollars $ 28,781 $ 12,100 $ 16,265 $ 17,568 $ 74,714
Average base rent per sq ft 10.10 11.00 10.50 14.64 11.15
Percent increase in effective rents 2.4% 14.1% 0% 6.1% 5.7%
from renewals
Concessions (1) 2,800 - - - 2,800
Concessions per sq ft leased 0.98 - - - 0.42
Tenant improvements (TI) committed 6,000 - - - 6,000
TI committed per sq ft leased 2.11 - - - 0.90
TI spent - - - - -
Capitalized leasing commissions (CLC) - - - - -
committed
CLC committed per sq ft leased - - - - -
CLC spent - - - - -
CLC and TI committed per sq ft leased 2.11 - - - 0.90
- ---------------------------------------------------------------------------------------------------------------
(1) Quarterly concessions restated to reflect consistent methodology.
(2) Retention reflects store closing due to business merger and consolidation.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
RETAIL PORTFOLIO
September 30, 1998
For the Period: 1998
-----------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- ------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: NEW
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Square footage leased 2,400 2,500 6,010 10,910
Rental dollars $ 32,964 $ 33,494 $ 85,769 $ 152,227
Average base rent per sq ft 13.74 13.40 14.27 13.95
Concessions (1) 5,280 5,400 - 10,680
Concessions per sq ft leased 2.20 2.16 - 0.98
Tenant improvements (TI) committed - 810 - 810
TI committed per sq ft leased - 0.32 - 0.07
TI spent 71,627 41,515 35,813 148,955
Capitalized leasing commissions (CLC) - 7,038 13,715 20,753
committed
CLC committed per sq ft leased - 2.82 2.28 1.90
CLC spent 9,519 4,035 14,905 28,459
CLC and TI committed per sq ft leased - 3.14 2.28 1.98
- ------------------------------------------------------------------------------------------------------------
LEASING PRODUCTION: RENEWAL/EXPANSION
- ------------------------------------------------------------------------------------------------------------
Tenant Retention 46% 5% (2) 42% 20%
Square footage leased 2,450 1,400 5,125 8,975
Rental dollars $ 30,660 $ 25,438 $ 83,311 $ 139,409
Average base rent per sq ft 12.51 18.17 16.26 15.53
Percent increase in effective rents 21.2% 5.6% 10.7% 12.5%
from renewals
Concessions (1) - - - -
Concessions per sq ft leased - - - -
Tenant improvements (TI) committed - - 1,100 1,100
TI committed per sq ft leased - - 0.21 0.12
TI spent - - - -
Capitalized leasing commissions (CLC) - 7,632 - 7,632
committed
CLC committed per sq ft leased - 5.45 - 0.85
CLC spent - - 7,632 7,632
CLC and TI committed per sq ft leased - 5.45 0.21 0.97
- ------------------------------------------------------------------------------------------------------------
(1) Quarterly concessions restated to reflect consistent methodology.
(2) Retention reflects store closing due to business merger and consolidation.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
MULTIFAMILY PORTFOLIO
September 30, 1998
For the Period: 1997
----------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- ---------------------------------------------------------------------------------------------------------------
OPERATING RESULTS:
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same Property (1)
Revenue $ 929,310 $ 930,126 $ 1,267,712 $ 1,281,249 $ 4,408,397
Operating expenses 358,568 379,913 547,025 566,274 1,851,780
NOI 570,742 550,213 720,687 714,975 2,556,617
Growth from same period prior year 9.0% 19.5% -6.0% 3.0% 5.2%
Combined Total
Revenue $ 1,129,909 $ 1,412,508 $ 1,477,798 $ 1,515,704 $ 5,535,919
Operating expenses 447,290 562,250 639,501 659,708 2,308,749
NOI 682,619 850,258 838,297 855,996 3,227,170
Growth from same period prior year(2) 565.3% 838.8% 569.8% 42.7% 251.5%
Capital expenditures $ 49,279 $ 45,491 $ 65,907 $ 48,700 $ 209,377
Weighted average apartment units 642 796 866 866 793
owned
Capital expenditures per apartment 77 57 76 56 264
unit
- ---------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS:
- ---------------------------------------------------------------------------------------------------------------
Same Property (1)
Physical occupancy (at end of 94.8% 95.0% 93.2% 94.5% 94.5%
period)
Economic occupancy (at end of 95.1% 95.5% 90.0% 91.3% 91.3%
period)
Average effective base rent per 585 587 600 610 610
occupied unit
Increase from same period prior year 2.9% 4.7% 3.9% 3.3% 3.3%
Apartment annualized turnover rate 51.3% 48.3% 73.5% 57.7% 61.3%
Combined Total
Physical occupancy (at end of 94.7% 94.2% 93.9% 94.7% 94.7%
period)
Economic occupancy (at end of 94.4% 94.4% 90.1% 91.8% 91.8%
period)
Average effective base rent per 599 609 610 619 619
occupied unit
Increase from prior year -8.4% -7.1% -7.5% 7.4% 7.4%
Apartment annualized turnover rate 49.2% 46.7% 69.3% 54.0% 55.7%
- ---------------------------------------------------------------------------------------------------------------
(1) Reflects performance of 3 of the 37 properties in the current portfolio.
(2) Reflects acquisition activity
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
MULTIFAMILY PORTFOLIO
September 30, 1998
For the Period: 1998
-------------------------------------------------------------------
Year
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr To Date
- ------------------------------------------------------------------------------------------------------------
OPERATING RESULTS:
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Same Property (1)
Revenue $ 920,804 $ 935,609 $ 1,351,498 $ 3,207,911
Operating expenses 386,173 362,105 553,516 1,301,794
NOI 534,631 573,504 797,982 1,906,117
Growth from same period prior year -6.3% 4.2% 10.7% 2.9%
Combined Total
Revenue $ 3,762,174 $ 4,676,157 $16,257,073 $ 24,695,404
Operating expenses 1,466,031 1,836,409 7,003,386 10,305,826
NOI 2,296,143 2,839,748 9,253,687 14,389,578
Growth from same period prior year(2) 236.4% 234.0% 1003.9%(2) 506.9%
Capital expenditures $ 120,362 $ 145,384 $ 851,826 $ 1,117,572
Weighted average apartment units 2,147 2,662 9,353 4,721
owned
Capital expenditures per apartment 56 55 91 237
unit
- ------------------------------------------------------------------------------------------------------------
OCCUPANCY STATUS:
- ------------------------------------------------------------------------------------------------------------
Same Property (1)
Physical occupancy (at end of 93.7% 95.9% 94.6% 94.6%
period)
Economic occupancy (at end of 92.0% 93.2% 93.9% 93.9%
period)
Average effective base rent per 603 600 614 614
occupied unit
Increase from same period prior year 3.1% 2.3% 2.4% 2.4%
Apartment annualized turnover rate 37.2% 37.2% 61.9% 47.4%
Combined Total
Physical occupancy (at end of 95.6% 92.4% 94.1% 94.1%
period)
Economic occupancy (at end of 95.4% 90.7% 90.9% 90.9%
period)
Average effective base rent per 602 623 614 614
occupied unit
Increase from prior year 0.5% 2.2% 0.7% 0.7%
Apartment annualized turnover rate 43.2% 44.7% 78.0% 73.9%
- -----------------------------------------------------------------------------------------------------------
(1) Reflects performance of 3 of the 37 properties in the current portfolio.
(2) Reflects acquisition activity
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
RECONCILIATION OF PROPERTY INCOME
September 30, 1998
Office Office/Flex Industrial Retail Hotel
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Revenue $30,712,868 $9,469,146 $4,665,760 $3,207,799 $423,249
Operating Expenses 12,122,361 2,915,212 1,119,123 948,223 133,324
--------------- --------------- --------------- --------------- ---------------
NOI $18,590,507 $6,553,934 $2,628,144 $2,259,576 $289,925
(1) Consolidating entries represent internal market level property management fees included in operating expenses to
provide market comparison to industry performance, and operating revenue and expenses from the corporate headquarters
which are not included in the combined property total.
CONTRIBUTION TO REVENUE (2)
(GRAPHIC OMITTED)
(Graphic of pie chart by property type showing percentage contributed to revenue)
CONTRIBUTION TO NOI (2)
(GRAPHIC OMITTED)
(Graphic of pie chart by property type showing percentage contributed to NOI)
(2) Excludes Hotel portfolio which is under contract.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
RECONCILIATION OF PROPERTY INCOME
September 30, 1998
Property Consolidating Total
Multifamily Total Entries (1) Reported
--------------- --------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Revenue $16,257,073 $64,735,895 $584,599 $65,320,494
Operating Expenses 7,003,386 24,241,629 (1,796,061) 22,445,568
--------------- --------------- ------------------- ------------------
NOI $9,253,687 $40,494,266 $2,380,660 $42,874,926
(1) Consolidating entries represent internal market level property management fees included in operating expenses to
provide market comparison to industry performance, and operating revenue and expenses from the corporate headquarters
which are not included in the combined property total.
CONTRIBUTION TO REVENUE (2)
(GRAPHIC OMITTED)
(Graphic of pie chart by property type showing percentage contributed to revenue)
CONTRIBUTION TO NOI (2)
(GRAPHIC OMITTED)
(Graphic of pie chart by property type showing percentage contributed to NOI)
(2) Excludes Hotel portfolio which is under contract.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
LEASE EXPIRATION SCHEDULE
SEPTEMBER 30, 1998
- ---------------------------------------------------------------------------------------------------------------
1998 1999 2000 2001 2002
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OFFICE PORTFOLIO
Annual base rent expiring 5,358,211 14,220,961 17,990,664 16,312,708 17,928,922
Percent of total annual rent 5.0% 13.2% 16.7% 15.1% 16.6%
Square footage expiring 337,167 1,015,646 1,045,350 955,046 982,395
Percentage of square footage 5.3% 15.9% 16.4% 14.9% 15.4%
Number of leases 151 172 148 161 97
Percentage of number of leases 16.6% 19.0% 16.3% 17.8% 10.7%
- ---------------------------------------------------------------------------------------------------------------
OFFICE/FLEX PORTFOLIO
Annual base rent expiring 4,243,392 5,449,051 4,695,109 4,169,058 3,446,966
Percent of total annual rent 12.7% 16.3% 14.1% 12.5% 10.3%
Square footage expiring 501,095 784,964 645,288 594,208 417,160
Percentage of square footage 12.0% 18.8% 15.4% 14.2% 10.0%
Number of leases 106 147 106 82 32
Percentage of number of leases 19.7% 27.4% 19.7% 15.3% 6.0%
- ---------------------------------------------------------------------------------------------------------------
INDUSTRIAL PORTFOLIO
Annual base rent expiring 733,841 1,906,042 1,689,556 1,679,689 2,368,809
Percent of total annual rent 4.3% 11.2% 9.9% 9.8% 13.9%
Square footage expiring 178,796 437,668 362,011 391,564 555,261
Percentage of square footage 4.4% 10.8% 8.9% 9.6% 13.6%
Number of leases 13 30 21 19 17
Percentage of number of leases 11.2% 25.9% 18.1% 16.4% 14.7%
- ---------------------------------------------------------------------------------------------------------------
RETAIL PORTFOLIO
Annual base rent expiring 809,414 1,378,393 924,071 1,759,902 324,156
Percent of total annual rent 7.7% 13.0% 8.7% 16.6% 3.1%
Square footage expiring 60,707 122,720 72,869 163,829 23,901
Percentage of square footage 5.4% 10.9% 6.5% 14.6% 2.1%
Number of leases 31 57 38 61 13
Percentage of number of leases 11.9% 21.8% 14.6% 23.4% 5.0%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
LEASE EXPIRATION SCHEDULE
SEPTEMBER 30, 1998
- -----------------------------------------------------------------------------------------------------------
2007 and
2003 2004 2005 2006 thereafter
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OFFICE PORTFOLIO
Annual base rent expiring 7,254,206 4,696,436 11,465,528 3,521,723 9,010,221
Percent of total annual rent 6.7% 4.4% 10.6% 3.3% 8.4%
Square footage expiring 383,443 258,749 632,597 218,039 560,142
Percentage of square footage 6.0% 4.1% 9.9% 3.4% 8.8%
Number of leases 70 17 17 8 66
Percentage of number of leases 7.7% 1.9% 1.9% 0.9% 7.3%
- -----------------------------------------------------------------------------------------------------------
OFFICE/FLEX PORTFOLIO
Annual base rent expiring 3,774,705 1,332,095 455,211 2,041,478 3,800,858
Percent of total annual rent 11.3% 4.0% 1.4% 6.1% 11.4%
Square footage expiring 410,402 155,719 30,000 209,231 433,943
Percentage of square footage 9.8% 3.7% 0.7% 5.0% 10.4%
Number of leases 37 9 1 7 10
Percentage of number of leases 6.9% 1.7% 0.2% 1.3% 1.9%
- -----------------------------------------------------------------------------------------------------------
INDUSTRIAL PORTFOLIO
Annual base rent expiring 1,005,227 6,036,576 - 227,500 1,411,676
Percent of total annual rent 5.9% 35.4% 0.0% 1.3% 8.3%
Square footage expiring 214,275 1,631,647 - 32,500 265,603
Percentage of square footage 5.3% 40.1% 0.0% 0.8% 6.5%
Number of leases 5 7 0 1 3
Percentage of number of leases 4.3% 6.0% 0.0% 0.9% 2.6%
- -----------------------------------------------------------------------------------------------------------
RETAIL PORTFOLIO
Annual base rent expiring 840,775 1,164,085 665,626 155,604 2,552,006
Percent of total annual rent 8.0% 11.0% 6.3% 1.5% 24.1%
Square footage expiring 101,795 175,151 51,605 10,950 339,932
Percentage of square footage 9.1% 15.6% 4.6% 1.0% 30.3%
Number of leases 18 13 8 4 18
Percentage of number of leases 6.9% 5.0% 3.1% 1.5% 6.9%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
LEASE EXPIRATION SCHEDULE
SEPTEMBER 30, 1998
- --------------------------------------------------------------------------------------------------------------
1998 1999 2000 2001 2002
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TOTAL PORTFOLIO (1)
Annual base rent expiring 11,144,858 22,954,447 25,299,400 23,921,357 24,068,853
Percent of total annual rent 6.6% 13.6% 15.0% 14.2% 14.3%
Square footage expiring 1,077,765 2,360,998 2,125,518 2,104,647 1,978,717
Percentage of square footage 6.8% 15.0% 13.5% 13.4% 12.6%
Number of leases 301 406 313 323 159
Percentage of number of leases 16.5% 22.3% 17.2% 17.7% 8.7%
- --------------------------------------------------------------------------------------------------------------
(1) Numbers exclude the Corporate headquarters building and properties purchased after June 29, 1998.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
LEASE EXPIRATION SCHEDULE
SEPTEMBER 30, 1998
- -----------------------------------------------------------------------------------------------------------
2007 and
2003 2004 2005 2006 thereafter
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TOTAL PORTFOLIO (1)
Annual base rent expiring 12,874,913 13,229,192 12,586,365 5,946,305 16,774,761
Percent of total annual rent 7.6% 7.8% 7.5% 3.5% 9.9%
Square footage expiring 1,109,915 2,221,266 714,202 470,720 1,599,620
Percentage of square footage 7.0% 14.1% 4.5% 3.0% 10.1%
Number of leases 130 46 26 20 97
Percentage of number of leases 7.1% 2.5% 1.4% 1.1% 5.3%
- -----------------------------------------------------------------------------------------------------------
(1) Numbers exclude the Corporate headquarters building and properties purchased after June 29, 1998.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
GLOSSARY OF TERMS
TERM DEFINITION
- ------------------------------------ -----------------------------------------------------------------------------------------
<S> <C>
Annualized Turnover Rate The percentage of multi-family units that became available for rent during the period
reported on an annualized basis.
Associated Companies The REIT owns 100% of the non-voting preferred stock of two real
estate companies: Glenborough Corporation and Glenborough Hotel Group.
Average Base Rent Base rent charged to tenants.
Capital Expenditures Recurring, non-revenue producing purchases of building improvements
and equipment, including tenant improvements and leasing
commissions unless otherwise noted. This caption does not include purchases of land,
buildings, and equipment that will produce revenue for the Company, such as property
acquisitions and construction of rentable structures.
Capitalized Leasing Commissions incurred for obtaining a lease which have been capitalized and are to be
Commissions (CLC) amortized over the lease term.
Cash Available For Distribution Cash available for distribution ("CAD") represents income (loss) before minority
(CAD) interests and extraordinary items, adjusted for depreciation and amortization
including amortization of deferred financing costs and gains (losses) from the
disposal of properties, less lease commissions and recurring capital expenditures.
CAD should not be considered an alternative to net income (computed in accordance
with GAAP) as a measure of the Company's financial performance or as an alternative
to cash flow from operating activities (computed in accordance with GAAP) as a
measure of the Company's liquidity, nor is it necessarily indicative of sufficient
cash flow to fund all of the Company's cash needs.
CLC Committed Capitalized leasing commissions which have been committed as a part of entering into
a lease agreement.
CLC Spent The portion of committed, capitalized leasing commissions which have been spent by
the Company.
Combined Total All properties owned in the current year.
Concessions Relief or reduction of rent charges for a specified period, negotiated and committed
to as a part of entering into a lease agreement.
Controlled Partnerships A group of partnerships for which one of the Associated Companies provides some or
all of the following services: asset management, property management, general
partner services, and development services.
Debt Coverage Ratio EBITDA divided by the difference between debt service and amortization of deferred
financing fees.
Debt Service Interest expense plus principal reductions of debt, excluding repayments on lines of
credit.
Dividend Payout Ratio The percentage of FFO or CAD that will be paid in dividends to the shareholders of
Glenborough Realty Trust Incorporated.
Dividend Per Share The dividends paid for each share of Glenborough Realty Trust Incorporated.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
GLOSSARY OF TERMS
TERM DEFINITION
- ------------------------------------ -----------------------------------------------------------------------------------------
<S> <C>
EBITDA EBITDA is computed as income (loss) before minority interests and extraordinary items
plus interest expense, income taxes, depreciation and amortization and gains (losses)
on disposal of properties. The Company believes that in addition to net income and
cash flows, EBITDA is a useful measure of the financial performance of an equity REIT
because, together with net income and cash flows, EBITDA provides investors with an
additional basis to evaluate the ability of a REIT to incur and service debt and to
fund acquisitions, developments and other capital expenditures. To evaluate EBITDA
and the trends it depicts, the components of EBITDA, such as rental revenues, rental
expenses, real estate taxes and general and administrative expenses, should be
considered. See "Management's Discussion and Analysis of Financial Condition and
Results of Operations." Excluded from EBITDA are financing costs such as interest as
well as depreciation and amortization, each of which can significantly affect a
REIT's results of operations and liquidity and should be considered in evaluating a
REIT's operating performance. Further, EBITDA does not represent net income or cash
flows from operating, financing and investing activities as defined by generally
accepted accounting principles and does not necessarily indicate that cash flows will
be sufficient to fund all of the Company's cash needs. It should not be considered
as an alternative to net income as an indicator of the Company's operating
performance or as an alternative to cash flows as a measure of liquidity.
Economic Occupancy Base rental revenue collected divided by gross potential rent.
Effective Rents Annualized rents net of concessions.
FFO Multiplier Stock price per share divided by annualized FFO per share.
FFO Per Share FFO divided by the fully diluted weighted average shares outstanding during the
period.
Funds From Operations (FFO) Funds from Operations, as defined by NAREIT, represents income (loss) before minority
interests and extraordinary items, adjusted for real estate related depreciation and
amortization and gains (losses) from the disposal of properties. In 1996,
consolidation and litigation costs were also added back to net income to determine
FFO. The Company believes that FFO is an important and widely used measure of the
financial performance of equity REITs which provides a relevant basis for comparison
among other REITs. Together with net income and cash flows, FFO provides investors
with an additional basis to evaluate the ability of a REIT to incur and service debt
and to fund acquisitions, developments and other capital expenditures. FFO does not
represent net income or cash flows from operations as defined by GAAP, and should not
be considered as an alternative to net income (determined in accordance with GAAP) as
an indicator of the Company's operating performance or as an alternative to cash
flows from operating, investing and financing activities (determined in accordance
with GAAP) as a measure of liquidity. FFO does not necessarily indicate that cash
flows will be sufficient to fund all of the Company's cash needs including principal
amortization, capital improvements and distributions to stockholders. Further, FFO as
disclosed by other REITs may not be comparable to the Company's calculation of FFO.
The Company calculates FFO in accordance with the White Paper on FFO approved by the
Board of Governors of NAREIT in March 1995.
Interest Coverage Ratio EBITDA divided by the difference between interest on debt and amortization of
deferred financing fees.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
GLOSSARY OF TERMS
TERM DEFINITION
- ------------------------------------ -----------------------------------------------------------------------------------------
<S> <C>
Leasing Production Information related to lease agreements entered into during the period including
square footage leased, rental dollars (specifically defined below), concessions,
tenant improvements, and capitalized leasing commissions.
Net Operating Income (NOI) Revenue less Operating Expenses.
Percent Debt to Total Market Total notes and mortgages payable divided by the sum of total notes and mortgages
Capitalization payable plus the total market value of all shares and units outstanding at the date
of calculation.
Percent Increase in Effective Percentage change in effective base rents from renewal as compared to effective base
Rents From Renewal rents as of the prior lease terms.
Physical Occupancy Total square feet (units) rented divided by net rentable square feet (units) as of
the end of the quarter.
Ratio of Earnings to Fixed Charges Computed as income (loss) from operations, before minority interest and extraordinary
items, plus fixed charges (excluding capitalized interest) divided by fixed charges.
Fixed charges consist of interest costs including amortization of deferred financing
costs.
Ratio of Earnings to Fixed Charges Computed as income (loss) from operations, before minority interest and extraordinary
and Preferred Dividends items, plus fixed charges (excluding capitalized interest) divided by fixed charges
plus preferred dividends. Fixed charges consist of interest costs including
amortization of deferred financing costs.
Renewal Leases that have been renewed by current tenants.
Rental Dollars Total annualized revenues to be earned per year during the term of the lease before
(Leasing Production) concessions, TI's and leasing commissions.
Same Property Properties owned in the current year which were also owned during the same period of
the prior year. If a property is sold during the quarter, data for prior periods and
the current quarter are deleted for comparability.
Tenant Improvements (TI) A capital expense used to improve the physical space occupied by an existing or new
tenant. Tenant improvements are amortized over the term of the lease.
TI Committed Tenant improvements which have been committed as a part of entering into a lease
agreement.
TI Spent The portion of committed tenant improvements which have been spent by the Company.
Total Market Capitalization As of the date calculated, the sum of (a) the product obtained by multiplying the
total number of shares and units outstanding by the price per share; plus (b) the
Company's debt as set forth on the most recent financial statements.
</TABLE>
