Mission West's average monthly rental revenue per sf during the third quarter was $1.25, up $0.01 from the second quarter. The average monthly rental revenue per sf has dropped 15% since the third quarter of 2007, when it was $1.47. The figure is obtained by taking the cash base rent for the period divided by the number of months in the period, and then divided by the average occupied square feet in the period.
The company's Funds From Operations for the third quarter was approximately $14.2 million, or $0.13 per diluted common share. In the same 2007 period, FFO was $61 million, or $0.58 per share, a period that included $46.3 million ($0.44 per share) of lease termination fee income.
Mission West operates 111 properties totaling approximately 8 million rentable sf. The number includes approximately 854,000 sf (16 buildings) that it says are in the process of being rezoned for residential development.
Earlier this month, the company closed on a secured mortgage loan totaling $115 million from Hartford Life Insurance Co., Hartford Life and Accident Insurance Co. and Hartford Life and Annuity Insurance Co. Secured by 20 properties totaling 1.6 million sf, the loan bears a fixed interest rate of 6.21%, with a 20 year amortization, and matures October 1, 2018. The proceeds were used primarily to repay the remaining balance of an existing mortgage loan with Prudential Mortgage Capital Co. and other short-term debt.
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