HispanicBusiness

Real Estate Investment Activity

Acquisitions

The company has a comprehensive asset strategy, which provides for increasing investment in industrial and medical office assets while reducing suburban office exposure. In alignment with this strategy, the company acquired over $448 million of industrial and medical office assets totaling over 2.9 million square feet in the fourth quarter of 2012, bringing the total acquisitions to $800 million for the year.

The fourth quarter included the following strategic acquisitions:

•A portfolio of fourteen medical office buildings geographically diversified that were 89.2 percent leased and totaled 1.2 million square feet. The acquisition included the assumption of $58 million of secured debt;

•A bulk industrial facility totaling 726,000 square feet in Modesto, CA, that was 100 percent leased;

•A bulk industrial facility totaling 552,000 square feet in Manteca, CA, that was 100 percent leased;

•A bulk industrial facility totaling 288,000 square feet in Chicago, IL, that was 66 percent leased;

•A bulk industrial facility totaling 135,000 square feet in Houston, TX, that was 100 percent leased;

•A 60,000 square foot medical office facility in Cincinnati, OH, that was 100 percent leased.


Development

Wholly Owned Properties

•During the fourth quarter, the company started development of one bulk industrial facility, totaling 1.02 million square feet in greater Seattle, WA, that is 100 percent pre-leased, and three medical office buildings totaling 126,000 square feet, that were also 100 percent pre-leased.

•The company's wholly owned development projects under construction at December 31, 2012 consisted of six industrial projects totaling 2.5 million square feet, nine medical office projects totaling 610,000 square feet and two suburban office buildings totaling 502,000 square feet. These projects were 83.8 percent pre-leased in the aggregate and have total expected costs upon completion of $469 million.

•During the quarter, one industrial building totaling 1.02 million square feet, which was 100 percent leased, was placed into service.


Joint Venture Properties

•The company had two joint venture development projects under construction at December 31, 2012, a 274,000 square foot medical office project which was 100 percent pre-leased, and a 600,000 square foot speculative bulk industrial facility.

•During the quarter, one industrial building totaling 376,000 square feet was placed into service.


Dispositions

Proceeds from fourth quarter building dispositions totaled $24.3 million. Total dispositions for the year 2012, including land sales, were $152.8 million.

For the quarter, $4.6 million of proceeds was from a non-core suburban office building (100 percent occupied) and $19.7 million of proceeds was from a portfolio of non-core industrial assets (82 percent occupied). The office and industrial dispositions comprised approximately 26,000 and 446,500 square feet, respectively, with a weighted average age of over 25 years.

January 2013 Common Equity Offering

In January 2013, the company executed a common equity offering issuing 41.4 million shares raising net proceeds of $572 million. The net proceeds from this offering were used to repay outstanding indebtedness under our revolving credit facility, which had an outstanding balance of $285 million as of December 31, 2012, with the remaining proceeds to be used to redeem all of the outstanding shares of our 8.375 percent Series O Cumulative Redeemable Preferred Shares, which are redeemable as of February 22, 2013, and for general corporate purposes.