An Easy Edge:
10-K Item 2. Properties

T

enant reps rejoice!
At Rudolph Data, we are trying to cut through the noise for CRE professionals and give them impactful data they can trust. This month, we've launched our 10-K Item 2. Properties search feature.
For thousands of publicly traded US companies, customers can now search real estate disclosures without having to navigate through cumbersome investor relations pages or the SEC website. We have found this tool to be a huge time saver when trying to research companies' real estate portfolios. It's also the first time we've had a way to read CRE info from 10-K's on a phone that is a nice experience.
Being able to click through multiple years of disclosures makes it simple to see how a company's real estate footprint is evolving. If you are trying to research CRE data for many companies, this will literally save you hours of time.

W

hat kind
of information do you get in these disclosures? The gallery below gives a good cross section of what you'll encounter. Customers can now search any company via the '10-K Search' link in the top toolbar when they are logged in. Or just CLICK HERE to be taken there now.

Item 2. Properties
Example Gallery

Amazon discloses its total CRE presence along three vectors: leased vs owned, North America vs International, and property type. In 2015 they began breaking out property size by business segment, excluding corporate properties. This makes it easy to track growth along all these vectors.
Chipotle discloses their retail locations by state and by store category, making it relatively easy to see and track their expansion. They also disclose some averages across their properties. This is a common pattern for retail companies.
Alliance Data Systems has the kind of disclosures a tenant rep would have to kick themselves for missing were they to go pitch their account. They disclose for every major lease, its size, its expiration, and its segment use. This illustrates how it can even be wise for tenant rep brokers to check 10-K data if they recognize a public company as a tenant you might be negotiating a deal for. Knowing when their other tenant's leases expire could provide a little more leverage.
DaVita is another example of a company that gives incredibly detailed characteristics of its properties, but they do so without getting into much property level specifics. Instead a clear and thoughtful picture emerges of how they think about their real estate and why it looks the way it does.
Aetna is an example of why many tenant rep brokers don't go look at 10-Ks. Outside the size and location of their principal corporate offices, there isn't much there. Every once in a while, a company discloses hardly anything at all about their properties.
Sinclair Broadcasting is an example a lot like some of the others we've seen, but they let you know there is a lot more location specific information elsewhere in the filing that is not in the Item 2. The good news is we supply the link to visit the filing directly. We also provide a link to the company's SEC page so you can see all their filings.
CRE Disclosure:
10-K Item 2 Properties
Fiscal Year Ending: 12/31/17 |
Date Filed: 02/02/18
Item 2.
Properties
As of December 31, 2017, we operated the following facilities (in thousands):
 
Description of Use
 
Leased Square
Footage (1)
 
Owned Square Footage
 
Location
Office space
 
12,712

 
3,674

 
North America
Office space
 
7,466

 

 
International
Physical stores (2)
 
20,349

 
735

 
North America
Physical stores (2)
 
202

 

 
International
Fulfillment, data centers, and other
 
131,419

 
4,406

 
North America
Fulfillment, data centers, and other
 
67,832

 
5,190

 
International
Total
 
239,980

 
14,005

 
 
 ___________________
(1)
For leased properties, represents the total leased space excluding sub-leased space.
(2)
This includes 465 North America and 7 International open Whole Foods Market stores as of December 31, 2017.
Segment
 
Leased Square
Footage (1)
 
Owned Square Footage (1)
North America
 
147,277

 
2,140

International
 
66,328

 
4,167

AWS
 
6,197

 
4,024

Total
 
219,802

 
10,331

 ___________________
(1)
Segment amounts exclude corporate facilities. Shared facilities are allocated among the segments based on usage and primarily relate to facilities that hold our technology infrastructure. See Item 8 of Part II, “Financial Statements and Supplementary Data—Note 11—Segment Information.”
We own and lease our corporate headquarters in Seattle, Washington. Additionally, we own and lease corporate office, fulfillment, sortation, delivery, warehouse operations, data center, customer service, physical stores, and other facilities, principally in North America, Europe, and Asia.

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