2022 Earnings and FFO Guidance
Based on current plans and assumptions and subject to the risks and uncertainties more fully described in our Securities and Exchange Commission filings, we are continuing our 2022 earnings per share guidance of $0.13 – $0.17 per diluted share and our 2022 FFO guidance of $1.36 – $1.40 per diluted share. This guidance is provided for informational purposes and is subject to change. The following is a reconciliation of the calculation of 2022 FFO guidance and earnings per diluted share guidance:
| Guidance for 2022 | Range | ||
| Earnings per diluted share allocated to common shareholders |
$0.13 | to | $0.17 |
| Plus: real estate depreciation, amortization | 1.28 | 1.28 | |
| Less: net gains on disposition of real estate | (0.05) | (0.05) | |
| FFO per diluted share |
$1.36 | to | $1.40 |
Our 2022 FFO key assumptions include:
- Speculative Revenue Target: $34.0 – $36.0 million, as of October 14, 2022, $35.0 million achieved from a leasing plan of 1.8 million square feet, 1.7 million square feet achieved;
- Year-end Core Occupancy Range: 91-93%;
- Year-end Core Leased Range: 92-94%;
- Tenant Retention Rate Range: 58-60%;
- Rental Rate Growth (accrual): 16-18%;
- Rental Rate Growth (cash): 8-10%;
- Same Store (accrual) NOI Range: 0-2%;
- Same Store (cash) NOI Range: 0-2%;
- Timing of occupancy and free rent on 200,000 square feet in Philadelphia CBD would equate to an increase in our range by approximately 3.0%;
- Acquisition Activity: None;
- Sales Activity: None, however we classified one asset as held-for-sale and another potential sale has a firm buyer commitment; both sales are subject to closing conditions.
- Joint Venture Activity: Acquired a 20% common equity interest in 2970 Market Street, Philadelphia, PA and closed our 50% joint venture representing a 4.7 acre development project at One Uptown in Austin, Texas.
- Development/Redevelopment Starts: Three starts. We have commenced 2340 Dulles Corner, 3151 Market Street, and 155 King of Prussia Rd (Radnor, PA).
- Financing Activity: Completed the refinance of our $600 million unsecured line of credit and our $250 million unsecured term loan;
- Share Buyback Activity: Our current projections do not include any share buyback activity.
- Annual earnings and FFO per diluted share based on 173.0 million fully diluted weighted average common shares.
