San Diego Community Update

To our Friends, Customers and Partners:

This is an exciting time in San Diego, as the City Council unanimously adopted the University Community Plan Update in late July. The plan supports the UC San Diego region’s status as one of the nation’s leading hubs for technology and biotech jobs.

We own and operate a number of Class A properties in this growing and economically vibrant area. Guided by the city’s vision and our experience creating world-class mixed-use districts, we are beginning our master planning to create quality housing connected to office campuses, retail, transit and open spaces.

As you may have read, we are also conducting a long-term strategic review that we anticipate will include the sale of certain downtown San Diego office properties and reinvestment in others.

As a Company, we are proud to be 40-plus-year members of the San Diego community, with a real estate portfolio that includes more than 70 office buildings (five downtown) and 15 apartment communities, totaling over 10 million square feet. Over the past five years, we have reinvested more than $200 million in these properties, and our commitment to San Diego remains stronger than ever.

We look forward to continued collaboration with the city, businesses and other stakeholders as we create a bright future for San Diego.