Attachment 7b report for Special Meeting held May 13, 2014 1:00PM at Pier 69

7b report

ITEM NO: __7b_Attach_1____
DATE OF
MEETING: May 13, 2014

PORT OF SEATTLE

2014 FINANCIAL & PERFORMANCE REPORT

AS OF MARCH 31, 2014

TABLE OF CONTENTS
Page
I. Portwide Performance Report 3-5

II. Aviation Division Report 6-12

III. Seaport Division Report 13-19

IV. Real Estate Division Report 20-24

V. Capital Development Division Report 25-27

VI. Corporate Division Report 28-30

I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/14

EXECUTIVE SUMMARY
Financial Summary
The Port's total operating revenues for the first three months of 2014 were $120.7 million, $1.4 million below
budget. Excluding Aeronautical revenues, which are based on cost recovery, other operating revenues were
$65.8 million, $278 thousand higher than budget primarily due to higher revenues from Public Parking, Ground
Transportation, and Grain; partially offset by lower revenues from Rental Cars, Container, and Conference &
Event Centers. Total operating expenses were $67.4 million, $7.0 million below budget mainly due to delayed
hiring and vacant positions, delays and savings of outside contracted services, and other actual budget savings.
Operating income before depreciation was $53.3 million, $5.5 million above budget. Operating income after
depreciation was $11.1 million, $5.4 million higher than budget. The Port-wide capital spending is forecasted to
be $263.8 million for the year, $35.4 million below the budgeted $299.2 million.
Operating Summary
At the Airport, enplanements for the first quarter were 3.3% higher and landed weight was 5.7% higher than the
same period in 2013. International enplaned passengers attained greater growth (5.4%) than domestic
enplanements (3.1%). International cargo metric tons are up 36% over Q1 2013, boosted by increased belly
cargo as well as the new Asiana cargo service. For the Seaport division, TEU volume was down 13.8% from
March year-to-date 2013 and Grain volume was at 1.0 million metric tons, 92% above budget. For the Real
Estate division, occupancy levels at Commercial Properties were at 90%, below the target of 92% but higher than
Seattle market average of 88%. Fishermen's Terminal and Maritime Industrial Center were at 85% occupancy,
above target of 82%. Recreational Marinas was at 95% occupancy, on target.
Key Business Events
We expanded the Live Music program at the Airport and began recruitment of the 13th class of veteran fellows.
Pacific International Line (PIL) began calling the Port of Seattle in March. The Federal Maritime Commission
approved the discussion agreement filed by the Ports of Seattle and Tacoma. We also collaborated with the Port
of Tacoma for the Economic Impact Study contract. Des Moines City Council approved a revised second
development agreement in February for the Des Moines Creek Business Park project. Commission authorized
the sale of approximately 12 mile section of the corridor to Snohomish County. Sale is scheduled to close in
2014. Port is in discussions to sell last remaining, approximately 3 mile section, to the City of Woodinville.
Finally, the Port received a clean, unqualified independent Certified Public Accountant (CPA) audit opinion on
the Port's 2013 financial statements from the CPA firm, Moss Adams.
Major Capital Projects
Key active projects in the first quarter included NorthSTAR, International Arrival Facility, Checked Baggage
Recap/Optimization, Aircraft RON Parking USPS Site, EGSE Charging Stations, Gate S16 Passenger Loading
Bridge, Noise Remedy Program, Terminal 46 Development, and Fishermen's Terminal Net Shed Renovation.
The Terminal 5 Maintenance Dredging Project was substantially completed and Beneficial Occupancy was
issued for the Pier 69 Corrosion Control Project. We also completed several ICT capital projects in the first
quarter, including Access Control Network Upgrade, Learning Management System (LMS), and Asbestos
Information Management System (AIMS). Additionally, we made progress on the ID Badge System
Replacement, Radio System Upgrade, and Network Switch Replacement projects. Finally, we gained Agency
Approval for General Contractor/Construction Manager (GC/CM) and Design-Build (DB) valid for 3 years.

I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/14
INCOME STATEMENT

Report: Income Statement
As of Date: 2014-03-31
Fav (UnFav) Incr (Decr)
2013 YTD 2014 Year-to-Date Bud Variance Change from 2013
$ in 000's Actual Actual Budget $ % $ %
Revenues:
Aviation 82,839 91,574 92,763 (1,189) -1.3% 8,734 10.5%
Seaport 21,196 21,727 21,883 (156) -0.7% 531 2.5%
Real Estate 7,650 7,330 7,480 (150) -2.0% (320) -4.2%
Capital Development 5 12 - 12 0.0% 7 151.9%
Corporate 68 83 39 44 114.8% 15 22.2%
Total Revenues 111,757 120,725 122,164 (1,439) -1.2% 8,968 8.0%
Operating & Maintenance:
Aviation 33,900 35,884 37,355 1,472 3.9% 1,984 5.9%
Seaport 3,738 2,615 5,125 2,510 49.0% (1,124) -30.1%
Real Estate 8,082 8,027 8,742 715 8.2% (55) -0.7%
Capital Development 3,034 3,217 3,439 222 6.5% 183 6.0%
Corporate 16,583 17,695 19,731 2,035 10.3% 1,112 6.7%
Total O&M Costs 65,337 67,437 74,392 6,955 9.3% 2,100 3.2%
Operating Income Before Depreciation 46,420 53,288 47,772 5,515 11.5% 6,867 14.8%
Depreciation 42,654 42,159 42,007 (151) -0.4% (496) -1.2%
Operating Income after Depreciation 3,766 11,129 5,765 5,364 93.0% 7,363 195.5%

IMPORTANT NOTE:
All the numbers in the table above are on an Org basis while the actual numbers for the operating divisions are
on a Subclass basis.

I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 03/31/14
KEY PERFORMANCE METRICS
2013 YTD 2014 YTD 2013 2014 2014 Fav (UnFav) Incr (Decr)
Forecast/Budget Change from 2013
Actual Actual Actual Forecast Budget Chg. % Chg. %
Enplanements (in 000's) 3,735 3,859 17,376 17,813 17,813 - 0.0% 437 2.5%
Landed Weight (lbs. in 000's) 4,480 4,736 20,949 20,802 20,802 - 0.0% (147) -0.7%
Passenger CPE (in $) n/a n/a 11.88 12.57 12.68 0.11 0.9% 0.7 5.8%
Container Volume (TEU's in 000's) 389 335 1,593 1,440 1,600 (160) -10.0% (153) -9.6%
Grain Volume (metric tons in 000's) 258 1,000 1,351 2,700 2,200 500 22.7% 1,349 99.8%
Cruise Passenger (in 000's) 1 n/a 871 805 805 - 0.0% (66) -7.6%
Commercial Property Occupancy 91% 90% 91% 92% 92% 0% 0.0% 1.0% 1.1%
Shilshole Bay Marina Occupancy 94.9% 95.0% 96.5% 96.4% 96.4% 0.0% 0.0% -0.1% -0.1%
Fishermen's Terminal Occupancy 80.4% 86.7% 79.1% 79.1% 78.1% 1.1% 1.3% 0.0% 0.0%

CAPITAL SPENDING RESULTS
2014 YTD 2014 2014 Budget Variance
$ in 000's Actual Forecast Budget $ %
Aviation 26,309 208,392 237,320 28,928 12.2%
Seaport 1,652 22,521 27,858 5,337 19.2%
Real Estate 1,308 17,581 18,101 520 2.9%
Corporate & CDD 1,458 15,321 15,955 634 4.0%
TOTAL 30,727 263,815 299,234 35,419 11.8%

PORTWIDE INVESTMENT PORTFOLIO
The investment portfolio for first quarter of 2014 earned 0.99% against our benchmark (The Bank of America
Merrill Lynch 3-year Treasury/Agency Index) of 0.45%. For the past twelve months the portfolio has earned
0.74% against the benchmark of 0.40%. Since the Port became its own Treasurer in 2002, the Port's portfolio
life-to-date has earned 2.93% against our benchmark of 2.05%.

II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
FINANCIAL SUMMARY
Fav (UnFav) Incr (Decr)
2013 2014 2014 Budget Variance Change from 2013
$ in 000's Actual Forecast Budget $ % $ %
Operating Revenues:
Aeronautical Revenues 238,633 239,381 241,443 (2,063) -0.9% 748 0.3%
SLOA III Incentive Straight Line Adj (1) 14,304 (3,576) (3,576) - (17,880) -125.0%
Non-Aeronautical Revenues 161,075 168,153 166,453 1,700 1.0% 7,078 4.4%
Total Operating Revenues 414,011 403,957 404,320 (363) -0.1% (10,054) -2.4%
Total Operating Expense 225,920 237,859 238,983 1,124 0.5% 11,939 5.3%
Net Operating Income 188,092 166,098 165,337 761 0.5% (21,994) -11.7%
Net Non-Operating items paid from ADF (2) (3,663) (2,862) (2,292) (570) 24.9% 802 -21.9%
SLOA III Incentive Straight Line Adj (1) (14,304) 3,576 3,576 - 0.0% 17,880 -125.0%
Debt Service (127,831) (127,728) (128,738) 1,010 -0.8% 103 -0.1%
Net Cash Flow 42,294 39,084 37,883 1,201 3.2% (3,210) -7.6%
(0)
Notes:
(1) For Accounting purposes, the 2013 reduction in the airline revenue requirement of $17.9 million was treated as a lease incentive and is being amortized over five years.
(2) Per SLOA III definition of Net Revenues
A. BUSINESS EVENTS
Airport is benefitting from a strengthening economy and robust airline competition.
Delta's seat capacity in Q1 2014 is up 21% over Q1 2013, much of it domestic to feed its growing
international service. Delta is adding new international service to London, Seoul and Hong Kong in 2014.
Alaska has also added seat capacity, growing 2.7% over Q1 2013. Alaska accounted for 55.7% of total
passengers in Q1 2014.
Unplanned costs to complete the airlines realignment project are continuing in 2014.
International cargo metric tons are up 36% over Q1 2013, boosted by increased belly cargo as well as the
new Asiana cargo service.
B. KEY PERFORMANCE METRICS
YTD 2013 YTD 2014 % Change
Enplaned Passengers (000's)
Domestic 3,348,542 3,451,734 3.1%
International 386,510 407,242 5.4%
Total 3,735,052 3,858,976 3.3%
Operations 69,393 72,832 5.0%
Landed Weight (million lbs.)
Cargo 293,505 375,394 27.9%
All other 4,186,349 4,360,735 4.2%
Total 4,479,854 4,736,129 5.7%
Cargo - metric tons
Domestic freight 37,688 35,497 -5.8%
International freight 16,375 22,287 36.1%
Mail 11,598 12,241 5.5%
Total 65,661 70,025 6.6%

II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
Key Performance Measures
Fav (UnFav) Incr (Decr)
2013 2014 2014 Budget Variance Change from 2013
$ in 000's Actual Forecast Budget $ % $ %
Key Measures
Enplaned Passengers (in 000's) 17,376 17,813 17,813 0 0.0% 437 2.5%
CPE after Revenue Sharing ($) 11.88 12.57 12.68 0.11 0.9% 0.69 5.8%
Debt Service Coverage (before Revenue Sharing) 1.40 1.36 1.35 0.02 1.2% (0.04) -3.1%
Debt Service Coverage (after Revenue Sharing) 1.33 1.31 1.30 0.01 0.6% (0.02) -1.6%
Days cash on hand (10 months = 304 days) 437 379 309 70 22.5% (58) -13.3%
Debt per enplaned passenger 141 142 142 0 0.0% 1 0.8%
C. OPERATING RESULTS
Division Summary
Fav (UnFav) Fav (UnFav)
2013 YTD 2014 Year-to-Date Budget Variance Year-End Projection Budget Variance
$ in 000's Actual Actual Budget $ % Budget Forecast $ %
Operating Revenues:
Aeronautical Revenues 50,173 54,920 57,531 (2,611) -4.5% 241,443 239,381 (2,063) -0.9%
SLOA III Incentive Straight Line Adj (3) - - (894) 894 (3,576) (3,576) - 0.0%
Non-Aeronautical Revenues 32,666 36,658 36,126 532 1.5% 166,453 168,153 1,700 1.0%
Total Operating Revenues 82,839 91,578 92,763 (1,185) -1.3% 404,320 403,957 (363) -0.1%
Operating Expenses:
Payroll 22,020 22,903 24,733 1,830 7.4% 100,399 98,341 2,058 2.0%
Outside Services 5,109 5,651 5,696 45 0.8% 31,603 32,643 (1,040) -3.3%
Utilities 3,495 4,332 3,797 (535) -14.1% 13,650 13,406 243 1.8%
Other Airport Expenses 2,203 2,892 3,058 166 5.4% 15,838 16,376 (538) -3.4%
Baseline Airport Expenses (2) 32,827 35,778 37,284 1,506 4.0% 161,490 160,766 724 0.4%
Airline Realignment (1) 1,306 225 49 (176) -355.8% - 750 (750) n/a
Environmental Remediation Liability - - - - n/a 2,356 2,356 - 0.0%
Total Airport Expenses (1) 34,133 36,003 37,334 1,330 3.6% 163,846 163,872 (26) 0.0%
Corporate (2) 7,649 9,246 10,503 1,256 12.0% 43,140 42,761 379 0.9%
Police Costs 3,751 3,999 4,094 95 2.3% 16,982 16,982 - 0.0%
Capital Development/Other Expenses (2) 2,170 2,655 2,878 223 7.7% 15,015 14,244 771 5.1%
Total Operating Expense 47,702 51,903 54,808 2,905 5.3% 238,983 237,859 1,124 0.5%
Net Operating Income 35,137 39,675 37,955 1,719 4.5% 165,337 166,098 761 0.5%
Net Non-Operating items paid from ADF (4) (2,292) (2,862) (570) -24.9%
SLOA III Incentive Straight Line Adj 3,576 3,576 - 0.0%
Debt Service (5) (128,738) (127,728) 1,010 0.8%
Net Cash Flow 37,883 39,084 1,201 3.2%

Notes:
(1) Includes Airline Realignment costs incurred by other Divisions
(2) Reduced by Airline Realignment costs shown separately
(3) For Accounting purposes, the 2013 reduction in the airline revenue requirement of $17.9 million was treated as a lease incentive and is being amortized over five years.
(4) Per SLOA III definition of Net Revenues
(5) Lower debt service due to bond refunding in late 2013

II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
Operating Revenues Budget Variance YTD:
Aeronautical revenue is $2.6M lower than budget primarily due to timing assumptions in the 2014 Budget,
which were based on historical trend information that predated SLOA III.
Non-Aero revenue is $532K higher than budget primarily due to increased public parking ($950K),
partially offset by lower than anticipated rental car revenue ($502K).
Operating Revenues Year Over Year Changes YTD:
Aeronautical revenue is $4.7M higher than prior year due to SLOA III billings in current year that are not
directly comparable to SLOA II carry-over billing in Q1 2013.
Non-Aero revenue is $4.0M higher than Q1 2013 primarily due to higher revenue from rental car activity
($1.3M), public parking ($1.1M), and concessions ($1.0M).
Operating Expenses
YTD Operating expenses are lower than budget by $2.9 million due to the following:
Positive Variance of $3.6M Negative Variance of $0.7M
Payroll vacancies $2.0M Utilities $0.5M
Outside Services $0.3M Airline Realignment $0.2M
Travel & other employee expenses $0.2M
Corp/CDD/Police allocated expenses $1.0M
Other Aviation Divisional savings $0.1M

Annual Forecasted Operating expenses are lower than budget by $1.1 million due to the following:
Positive Variance of $3.2M Negative Variance of $2.1M
Payroll vacancies $2,058K Janitorial contract $530K
P-69 carpet replacement (capitalized) $771K Airline Realignment $750K
Corportate division expected savings $379K Centralized mgmt of FIS operations $154K
Other Aviation Divisional planned spending $650K

II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
Aeronautical Business Unit Summary
Fav (UnFav) Incr (Decr)
2013 2014 2014 Budget Variance Change from 2013
$ in 000's Actual Forecast Budget $ % $ %
Revenues:
Movement Area 73,903 74,317 74,590 (273) -0.4% 414 0.6%
Apron Area 7,554 10,203 10,214 (11) -0.1% 2,649 35.1%
Terminal Rents 151,167 143,767 144,641 (874) -0.6% (7,400) -4.9%
Federal Inspection Services (FIS) 7,422 8,728 8,617 111 1.3% 1,306 17.6%
Total Rate Base Revenues 240,047 237,016 238,063 (1,047) -0.4% (3,031) -1.3%
Commercial Area 8,487 9,517 9,517 - 0.0% 1,030 12.1%
Subtotal before Revenue Sharing 248,534 246,533 247,580 (1,047) -0.4% (2,001) -0.8%
SLOA II Other
Revenue Sharing (9,901) (7,152) (6,136) (1,016) -16.6% 2,749 27.8%
Total Airline Revenues 238,633 239,381 241,443 (2,063) -0.9% 748 0.3%
Operating Expense 151,435 151,382 152,055 673 0.4% 53 0.0%
Net Operating Income 87,198 87,999 89,389 (1,390) -1.6% 801 0.9%
Debt Service 79,197 79,101 80,002 901 1.1% 96 0.1%
Net Cash Flow 8,001 8,898 9,386 (488) -5.2% 897 11.2%
Aeronautical Budget Variance Annual Forecast
Aeronautical revenues are forecasted to be $2.1M lower than budget due to lower debt service from bond
refunding in late 2013, lower aeronautical operating expenses, and higher revenue sharing due to the increase
in non-aero revenue.
Aeronautical operating expenses are forecasted to be $0.7M lower than budget due to savings from payroll,
capitalization of the P-69 carpet replacement costs, and other savings identified by Corporate departments;
partially offset by higher than anticipated janitorial contract costs, FIS operations management costs, and
airline realignment costs continuing into 2014.

II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
Non-Aero Business Unit Summary

Fav (UnFav) Fav (UnFav)
2013 YTD 2014 Year-to-Date Budget Variance Year-End Projection Budget Variance
$ in 000's Actual Actual Budget $ % Budget Forecast $ %
Non-Aero Revenues
Rental Car 5,044 6,307 6,809 (502) -7.4% 41,167 41,167 - 0.0%
Public Parking 12,407 13,470 12,520 950 7.6% 52,138 53,338 1,200 2.3%
Ground Transportation 1,954 2,257 1,960 297 15.2% 7,881 7,881 - 0.0%
Concessions 8,672 9,645 9,729 (84) -0.9% 43,714 43,714 - 0.0%
Other 4,589 4,980 5,109 (129) -2.5% 21,553 22,053 500 2.3%
Total Non-Aero Revenues 32,666 36,658 36,126 532 1.5% 166,453 168,153 1,700 1.0%
- - - -
Non-Aero Expenses
RCF Operating Expense 1,353 1,624 1,910 286 15.0% 7,899 7,329 570 7.2%
Operating Expense 14,765 16,814 17,264 450 2.6% 74,717 74,606 111 0.1%
Share of terminal O&M 4,434 4,927 5,214 287 5.5% 22,619 22,849 (231) -1.0%
Less utility internal billing (4,324) (4,577) (4,577) 0 0.0% (18,307) (18,307) - 0.0%
Operating Expense 16,228 18,788 19,811 1,023 5.2% 86,928 86,478 451 0.5%
Net Operating Income 16,438 17,870 16,315 1,555 9.5% 79,524 81,675 2,151 2.7%
Less: CFC Surplus 808 1,352 2,073 721 34.8% (4,623) (5,193) (570) -12.3%
Adjusted Non-Aero NOI 17,245 19,222 18,389 833 4.5% 74,902 76,482 1,581 2.1%
Debt Service (1) 48,736 48,627 109 0.2%
Net Cash Flow 26,166 27,855 1,689 6.5%
Key Measures
Total Revenues / Enpl 9.34 9.44 0.10 1.0%
Primary Concessions Sales / Enpl (1) 11.52 11.52 - 0.0%
Note:
(1) Debt service and primary concession sales are forecasted/budgeted on an annual basis only. Thus, quarterly data is not available.
Non-Aero Budget Variance - YTD
Non-Aeronautical revenues $532K higher than YTD budget due to increased activity in garage parking
(2.4% higher than 2012), higher CFC operating revenue, and higher activity levels for on-call limo's;
partially offset by lower rental car concessions revenue recognition despite a higher number of transactions
days (pending review with Accounting).
Non-Aeronautical operating expenses are $1.1M lower than YTD budget due to savings in salaries, lower
division allocations, and a share of YTD savings in Terminal Building expense; partially offset by higher
than anticipated utility expense.
Non-Aero Year Over Year Changes - YTD
Non-Aero revenue is $4.0M higher than Q1 2013 primarily due to higher revenue from rental car activity
($1.3M), public parking ($1.1M), and concessions ($1.0M).
Non-Aeronautical operating expenses are $2.6M higher than Q1 2013 due to higher payroll costs, higher
utility costs, and the difference in treatment of Terminal Building costs under SLOA III which was not in
effect until year-end 2013.
Non-Aero Budget Variance - Annual Forecast
Non-Aeronautical revenues are forecasted to be $1.7M higher than budget due to increased activity in garage
parking, and increased activity in clubs/lounges.
Non-Aeronautical operating expenses are forecasted to be $0.5M lower than budget due to savings from
payroll, capitalization of the P-69 carpet replacement costs, and other savings identified by Corporate
departments; partially offset by higher than anticipated janitorial contract costs.

II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
D. CAPITAL RESULTS
Capital Variance
$ in 000's 2014 YTD 2014 2014 Budget Variance
Description Actual Forecast Budget $ %
International Arrivals Fac-IAF1 153 5,385 16,000 10,615 66.3%
Parking Garage Lights (CA)2 3 138 4,000 3,862 96.6%
GSE Electrical Chrg Stations3 910 8,410 12,000 3,590 29.9%
Scty Exit Lane Breach Ctrl-Phase II4 1,963 2,563 5,200 2,637 50.7%
Checked Bag Recap/Optimization5 470 4,720 7,000 2,280 32.6%
NS NSAT Renov NSTS Lobbies 845 7,226 8,127 901 11.1%
Highline School Insulation - 11,166 11,360 194 1.7%
Cargo 2 West Cargo Hardstand 59 7,259 7,300 41 0.6%
Aircraft RON Parking USPS Site 209 33,059 33,000 (59) -0.2%
All Other 21,697 128,466 133,333 4,867 3.7%
Total Spending 26,309 208,392 237,320 28,928 12%
Notes:
1. Estimate was based off of early projections, as the project team had just been established. Additional
planning, scheduling, and preliminary scoping have provided a better forecast this quarter.
2. Cash flows pushed out due to changes in project delivery methods (i.e. ESCO vs. design/bid/build).
3. The Port was planning on purchasing the chargers this year, but decided to include that in the contractor's
scope, which will occur in 2015.
4. Port terminated construction contract and budget cash flows were moved to 2015 in anticipation of potential
rebid and construction.
5. The overall design has been slowed due to technology review and overall integration with airport planning
and other major projects.
2014-2018 Capital and Funding Plan
Future
2014-2018 Revenue
$ in 000's Total Bonds
Budget 1,531,260 1,054,298
Forecast 1,605,456 1,128,494
Increase 74,196 74,196
2014 Annual Budget Changes
2014
$ in 000's Spending
SSAT Interior Renovations 1,150
Purch/Repl PLBs at B6 ,B8, B14 1,000
CMP#1 Chillers Purchase 599
All Others 325
Total 3,074

II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
Future 2014 Authorization Requests:
Parking Garage Lights (CA)
SSAT Interior Renovations
Purch/Repl PLBs at B6 ,B8, B14
S1 Ramp
Service Tunnel Renewal/Replace
Fuel Pits at B4 and B6
Wireless Coverage - Ramps
2014-2015 Roof Replacement
Refurbish Bag Claim Device 8
CCTV Camera/Data Improvements
So. 160th St. GT Lot Expansion
12th SSAT/FIS Widebody Gate (C
Mech Energy Conservation (CA)
Wi-Fi Cov at Chkpnts and Tktng
Wi-Fi Cov in GML and Bag Claim
NS Main Terminal Improvements
Concessions Infrastructure (CA
Enhanced WI-FI Coverage in Cen
MT Center & North LV Sys Upgrd
Utility ER Backup/Standby Pwr
Air Cargo Rd Safety Imp D/C
Airfield Ramp Pavement Program
Water Right Supply Development
Passenger Boarding Bridge Rene
IWS Segregation Meters (CA)
Domestic Water Piping

III. SEAPORT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
FINANCIAL SUMMARY
Fav (UnFav) Incr (Decr)
2013 2014 2014 Budget Variance Change from 2013
$ in 000's Actual Forecast Budget $ % $ %
Revenues:
Operating Revenue 99,628 101,421 101,553 (132) 0% 1,793 2%
Security Grants 0 0 0 0 NA 0 NA
Total Revenues 99,628 101,421 101,553 (132) 0% 1,793 2%
Total Operating Expenses 44,379 42,394 43,926 1,532 3% (1,985) -4%
Net Operating Income 55,249 59,026 57,626 1,400 2% 3,778 7%
Capital Expenditures 5,673 22,521 27,858 5,337 19% 16,848 297%
Total Seaport Division Revenues were ($78K) unfavorable primarily due to below budget Container revenue
as a result of unfavorable Crane Rental revenue. Amounts were largely offset by favorable Grain revenues
due to volume coming in 92% favorable to budget. For the full year, Seaport is forecasting revenue to be
below budget by $132K.
Total Operating Expenses were $2,880K favorable mainly due to lower spending by Seaport and Corporate
groups. For the full year, Seaport is forecasting expenses to be $1,532K favorable to budget due to lower
than anticipated spending on the Terminal 5 Maintenance Dredge project and a delay in the Terminal
91Maintenance Dredge project.
Net Operating Income year-to-date for 2014 was $2,802K favorable to budget and $2,953K above 2013
Actual. For the full year, Seaport is forecasting Net Operating Income to come in $1,400K favorable to
budget.
At the end of the first quarter, capital spending for 2014 is currently estimated to be $22.5 million or 81% of
the Approved Annual Budget amount of $27.9 million.
A. BUSINESS EVENTS
TEU volumes for the Seattle Harbor were down 13.8% 1st Quarter 2014, compared to 1st Quarter 2013 levels.
Year-to-date volume through March 2014 is 335,047 TEUs. Full inbound TEUs are down 25.0%, full
outbound TEUs are down 5.8%, empty inbound TEUs are down 2.4%, and empty outbound TEUs are down
20.2%.
Consolidated West Coast Port results for through the 1st Quarter of 2014 show an overall TEU volume
increase of 0.8% compared volumes through 1st Quarter of 2013. On a regional basis, LA/Long Beach was
up 3.1%, Seattle/Tacoma was down (5.2%) and Metro Vancouver/Prince Rupert was down (1.5%).
TEU Volume (in 000's) YTD March 2014 YTD March 2013 TEU Change % Change
Long Beach 1,523 1,554 (31) -2.0%
Los Angeles 1,921 1,787 133 7.5%
Oakland 568 565 3 0.5%
Portland 42 48 (6) -13.0%
Prince Rupert 128 135 (7) -4.9%
Seattle 335 389 (54) -13.8%
Tacoma 476 467 9 2.0%
Vancouver 638 643 (5) -0.7%
West Coast - Totals: 5,632 5,588 44 0.8%
Pacific International Line (PIL) began calling the Port of Seattle in March. They call Terminal 30 in
partnership with CSCL and UASC's existing ANW1 service. PIL will contribute one 4250 TEU vessel to
the service.
The Federal Maritime Commission approved the discussion agreement filed by the Ports of Seattle and
Tacoma.
13

III. SEAPORT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
Grain vessels shipped 1 million metric tons of grain through Terminal 86 for March year-to-date 2014.
Amount was three times more than 2013 year-to-date volumes and 92% favorable to 2014 Budget volume
Cruise:
Worked with Environmental and Commercial Strategy in planning and program management to
successful update the ABC Fuels Program for 2014. Awarded four of our cruise line partners with
Green Gateway Awards.
Moved ahead with procurement of three additional camel barges for Terminal 91 bringing the total fleet
to 10. Delivery is expected in late May.
Environmental Services and Planning:
Terminal 91 and Terminal 117 clean-ups are underway.
Preparations for Seaport Truck Scrappage and Replacements for Air in Puget Sound (ScRAPS) 2 project
are underway for launch in the 2nd quarter.
Washington Ports/tenants "all known available and reasonable treatment" (AKART) study for
stormwater management at marine terminals in progress.
Completed condition assessments, Habitat Equivalency Analysis (HEA) assessment, and economic
evaluation for 11 past project habitat restoration portfolio sites.

III. SEAPORT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
B. KEY INDICATORS
Container Volume TEU's in 000's
2,000
1,500
2013 Actuals
1,000
2014 Budget
500 2014 Actuals
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Grain Volume Metric Tons in 000's
2,500
2,000
1,500 2013 Actuals
1,000 2014 Budget
2014 Actuals
500
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cruise Passengers in 000's
1,000
800 2013 Actuals
600 2014 Budget
400 2014 Actuals
200
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Net Operating Income before Depreciation by Business
Fav (UnFav) Incr (Decr)
2013 YTD 2014 YTD 2014 YTD 2014 Bud Var Change from 2013
$ in 000's Actual Actual Budget $ % $ %
Containers 11,191 12,702 11,148 1,554 14% 1,511 14%
Grain (0) 842 393 449 114% 842 NM
Seaport Industrial Props 2,210 2,754 2,535 219 9% 543 25%
Cruise (1,255) (1,269) (1,836) 567 31% (15) 1%
Maritime Operations (220) (233) (207) (26) -13% (13) -6%
Security (217) (138) (178) 39 22% 79 36%
Env Grants/Remed Liab/Oth (6) (0) 0 (0) NA 6 100%
Total Seaport 11,703 14,656 11,854 2,802 24% 2,953 25%

III. SEAPORT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
C. OPERATING RESULTS
Fav (UnFav) Fav (UnFav)
2013 YTD 2014 Year-to-Date Budget Variance Year End Projections
$ in 000's Actual Actual Budget $ % Budget Forecast Bud Var
Operating Revenue 21,331 21,885 21,963 (78) 0% 101,553 101,421 (132)
Security Grants 0 0 0 0 NA 0 0 0
Total Revenues 21,331 21,885 21,963 (78) 0% 101,553 101,421 (132)
Seaport Expenses (excl env srvs) 3,174 2,048 4,459 2,411 54% 17,812 16,699 1,113
Environmental Services 332 354 422 69 16% 2,581 2,581 0
Maintenance Expenses 1,562 1,372 1,425 53 4% 6,637 6,308 329
P69 Facilities Expenses 115 101 105 4 4% 414 414 0
Other RE Expenses 66 75 96 21 22% 386 386 0
CDD Expenses 824 519 513 (5) -1% 2,190 2,190 0
Police Expenses 947 1,008 1,033 26 2% 4,286 4,286 0
Corporate Expenses 2,604 1,752 2,055 302 15% 8,440 8,350 90
Security Grant Expense 4 0 0 0 NA 0 0 0
Envir Remed Liability 0 0 0 0 NA 1,180 1,180 0
Total Expenses 9,628 7,229 10,109 2,880 28% 43,926 42,394 1,532
NOI Before Depreciation 11,703 14,656 11,854 2,802 24% 57,626 59,026 1,400
Depreciation 8,764 8,345 8,222 (123) -1% 32,816 32,816 0
NOI After Depreciation 2,939 6,311 3,632 2,679 74% 24,810 26,210 1,400
Seaport Division Revenues were ($78K) unfavorable to budget. Key variances are as follows:
Seaport Lease & Asset Management - favorable $13K
Containers were ($445K) unfavorable. Crane Rent Revenue ($540K) unfavorable due to lower usage of
tariff cranes at Terminal 5 ($259K) and due to no usage of Port MHI cranes at Terminal 18 ($281K).
Concession Rent unfavorable ($48K) due to Terminal 5 intermodal usage lower than anticipated in the
Budget. Unfavorable variances are partially offset by favorable Space Rental of $128K due to additional
rent owed by the tenant at Terminal 5 as a result of eliminating the first port of call service in 2013. Under
the 8th amendment to the lease, executed in 1999, the Port deepened the berth at Terminal 5 largely in
consideration for the tenant maintaining a weekly first port of call service. Provisions in the lease provided
for additional rent due should that first port of call service be discontinued.
Grain was $433K favorable due to volume coming in 92% favorable to budget.
Seaport Industrial Properties were $25K favorable due to $42K favorable utility sales revenue, primarily
sewer and water, at Terminal 91 and favorable Dockage & Wharfage revenue $22K at Terminal 18 Bulk
terminals due to higher than budgeted volume. Space Rental was ($30K) unfavorable due to delays in
resolving market rate adjustments to leases for Trident, CityIce and Seafreeze partially offset by unbudgeted
extension of license fee at Terminal 104.
Cruise and Maritime Operations - unfavorable ($92K)
Cruise was ($13K) unfavorable largely due to reversal of a 2013 revenue accrual ($10K) which should have
been reaccrued. The revenue was received in April 2014.
Maritime Operations were ($79K) unfavorable primarily due to unfavorable Dockage & Wharfage revenue
($75K) partially because of lower occupancy at Terminal 91 and due to no accrual of revenue earned in
March.

III. SEAPORT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
Total Seaport Division Expenses were $2,880K favorable to budget. Key variances are as follows:
Seaport Expenses (excluding Environmental Services) were $2,411K favorable to budget. Major variances
were as follows:
Salaries & Benefits were $77K favorable due to timing of merit increase, open position in Seaport
Finance, and transfer of Director of Seaport Security to a new position in the Aviation Division.
Equipment Expenses were $35K favorable due to timing of spending of CTA Lease Allowance.
Utilities were $28K favorable primarily due to lower expense than budgeted for electricity and water at
Terminal 91 Industrial and Cruise.
Outside Services were $1,803K favorable due primarily to Terminal 5 Maintenance Dredging $1,237K
and Terminal 91 Maintenance Dredging $530K projects. The Terminal 5 project was completed in the
1st quarter, but no invoices were paid and there was an over accrual of an expense for work done in 2013
resulting in a net credit amount of ($83K). The Terminal 91 project has been delayed and construction
will take place in 2015. An additional favorable variance is due to timing for amounts budgeted in
Seaport Division Admin $25K.
Travel & Other Employee Expenses were $118K favorable due to timing of travel and payment for
memberships and subscriptions.
Promotional Expenses were $20K favorable due to timing of sponsorship related costs.
General Expenses were $327K favorable primarily due to $276K budgeted as a contingency but not
yet used, $24K of advertising expenses not yet used, and due to a net decrease ($18K) in litigation
related expenses resulting from a reversal of a prior year reserve.
Environmental Services were favorable $69K mainly due to reversal of 2013 year-end accruals which were
not matched by a payment. Amounts will be reconciled in April 2014.
Maintenance costs, direct and allocated, were favorable $53K primarily due to delay in start of work for
railroad track repairs at Terminal 91 because of time required for the contracting process to hire a company
that specializes in track work plus delay in start of budgeted preventative maintenance.
CDD costs were unfavorable ($5K) due to offsetting variances, none of which are material or are for projects
that were not anticipated in the Budget.
Police costs, direct and allocated were favorable $26K due to overall below budget spending by the Police.
Corporate costs, direct and allocated, were favorable $302K due to lower than anticipated direct charges
and allocations from virtually all Corporate groups including Public Affairs $43K, Accounting and Financial
Reporting $36K, Commission Office $36K, Office of Social Responsibility $35K, Finance & Budget $32K,
Risk Management $29K, Legal $26K, Executive $19K, Human Resources $18K, and ICT $12K.
All other variances net to favorable $24K.
NOI before Depreciation was $2,802K favorable to budget.
Depreciation was ($123K) unfavorable for a variance of less than 1.5%.
NOI after Depreciation was $2,679K favorable to budget.

III. SEAPORT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
2014 Full Year Forecast
As of the end of the 1st Quarter 2014, Seaport anticipates ending the year $1.4 million favorable to budget for Net
Operating Income (NOI) Before Depreciation. The variance reflects below budget revenue of ($132K) more
than offset by favorable expense variances of $1,532K.
The unfavorable revenue variance is the result of a correction of a prior year CPI adjustment on a lease and an
unplanned vacancy at another industrial property site. While Containers is forecasted to have a full year
favorable space rent variance due to additional rent of $514K owed by the tenant at Terminal 5 due to
eliminating the first port of call service in 2013, that favorable variance is expected to be offset by unfavorable
crane rent variances resulting from lower volume.
The favorable expense variance of $1,532K is primarily due to the Terminal 5 and Terminal 91 Maintenance
Dredge projects $1,113K. The Terminal 5 project cost less than what was forecast at the time the budget was
developed and the Terminal 91 project has been delayed and construction will take place in 2014. In addition,
Maintenance costs are forecast to be favorable due to the Pier 69 Facilities Carpet Replacement project that was
budgeted as an expense, but qualified for capitalization $329K. Also, lower spending by Corporate groups is
currently expected to create a full year $90K favorable variance.
Change from 2013 YTD Actual
Net Operating Income (NOI) before Depreciation for 2014 increased by $2,953K from 2013 due to higher
revenue and lower expenses.
Revenue increased $555K from the prior year due to higher Grain revenue $750K resulting from higher volumes
in 2014. Seaport Industrial Properties revenue increased by $263K because of higher space rental $194K due to
higher occupancies and year-over-year rate increases as well as due to increased utility sales revenue at Terminal
91 $68K. Revenue increases was partially offset by the lower Container revenue ($305K) and Maritime
Operations revenue ($134K). The lower Container revenue was due to the lower crane revenue ($514K)
resulting from lower usage of tariff cranes at Terminal 5 ($423K) and at Terminal 18 ($91K). This amount was
partially offset by increase in space rental due to the increase in the Minimum Annual Guarantee per acre rate.
The Maritime Operations revenue decreased primarily because of the lower activity at Terminal 91.
Expenses, both direct and allocated, decreased by a net of ($2,399K) as a result of a decrease in Seaport
originated expenses ($1,126K), Corporate expenses ($851K), CDD expenses ($306K), and Maintenance
expenses ($190K). The decreased Seaport expenses were primarily due to lower outside services costs
associated with the Terminal 5 Maintenance dredge program, no payment for tribal mitigation thus far in 2014,
significant reduction in bad debt which was a temporary situation in 2013 related to a fishing vessel, and due to
CPI training and payment for services to the Burke Museum in 2013. Corporate expenses are down primarily
due to lower allocation percentages to the Seaport Division effective with the 2014 Budget. CDD expenses were
down due to the T115 Waterline and repair project in 2013 and due to lower allocation percentages to Seaport
effective with the 2014 Budget.

III. SEAPORT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
D. CAPITAL SPENDING RESULTS
Budget Variance
2014 YTD 2014 2014
Actual Forecast Budget $ %
$ in 000's
Terminal 46 595 5,685 9,850 4,165 100%
Contingency Renewal & Replacement 0 5,000 5,000 0 0%
P90 C175 Roof Replacement 58 2,313 2,313 0 0%
Cruise 350 2,055 2,145 90 12%
N Argo Express - Private Road 66 1,366 1,610 244 15%
T5 Upgrade 600' Exist. Dock 95 1,045 1,000 (45) -5%
T91 Lighting 18 956 956 0 0%
T18 Dock Rehabilitation 73 223 800 577 72%
Small Projects 29 759 747 (12) 38%
Security 134 627 684 57 30%
All Other 234 2,492 2,753 261 9%
Total Seaport 1,652 22,521 27,858 5,337 19%
Comments on Key Projects:
For the 1st Quarter 2014, the Seaport Division spent 6% of the annual approved Capital Budget. Full year
is estimated to be 81% of the approved Capital Budget.
Projects with significant changes in spending were:
Terminal 46
T46 Development - Construction bid is lower than the engineer estimates. Business Manager further re-
evaluated project timing. Funds were moved to the future year.
T46 Public Access Mitigation at T117 - delay due to coordination with the city cleanup project.
T18 Dock Rehabilitation-Pile cap work to be delayed for 5 years. Potential pile repair and toe wall repair in
2015.

IV. REAL ESTATE DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
FINANCIAL SUMMARY
Fav (UnFav) Incr (Decr)
2013 2014 2014 Budget Variance Change from 2013
$ in 000's Actual Forecast Budget $ % $ %
Revenues:
Operating Revenue 30,862 31,492 31,376 116 0% 629 2%
Total Revenues 30,862 31,492 31,376 116 0% 629 2%
Total Operating Expenses 35,262 39,186 39,320 134 0% 3,924 11%
Net Operating Income (4,399) (7,694) (7,944) 250 -3% (3,294) 75%
Capital Expenditures 6,060 17,581 18,101 520 3% 11,521 190%
Total Real Estate Division Revenues were ($222K) or about 3% unfavorable to budget for the year-to-date
due to below budget activity at the Conference and Event Centers. For the full year, Real Estate is
forecasting Revenue to be $116K favorable to budget due to new leases put in place just after completion of
the budget.
Total Operating Expenses were $1,015K or 11% favorable to budget due to below budget activity at the
Conference and Event Centers and timing of other expenses. For the full year, Real Estate is forecasting
Operating Expenses to be $134K favorable to budget.
Net Operating Income year-to-date for 2014 was $793K favorable to budget and ($617K) below 2013
Actual. For the full year, Real Estate is forecasting Net Operating Income to come in $250K favorable to
budget.
At the end of the first quarter, capital spending for 2014 is forecasted to be $17.6 million or 97% of the
Approved Annual Budget amount of $18.1 million.
A. BUSINESS EVENTS
Occupancy levels at Commercial Properties were at 90% at the end of Q1 2014, which was slightly below
the 92% target for the 2014 Budget, but above comparable statistics for the local market of 88%.
Conference and Event Center activity was below budget for the year-to-date due to significant new
competitive challenges and perceived negative impact of waterfront transportation projects. Efforts to
mitigate these challenges continue.
Recreational marinas averaged 95% moorage occupancy Q1 2014 which was on target and consistent with
Q1 2013 results.
Fishermen's Terminal and Maritime Industrial Center averaged 85% moorage occupancy for Q1 2014 which
was above target of 82% and above Q1 2013 result of 79% occupancy. The increase in moorage is the result
of 11 additional monthly commercial fishing boats and 20 additional recreational boats at Fishermen's
Terminal.
Real Estate Development and Planning
Closed on easement agreements with the City of Burien for the Northeast Redevelopment Area storm
water project in January.
Des Moines City Council approved a revised second development agreement in February for the Des
Moines Creek Business Park project.
Tsubota Steel site request for offers issued. Submitted offers are under review.
Eastside Rail Corridor
Commission authorized the sale of approximately 12 mile section of the corridor to Snohomish County.
Sale is scheduled to close in 2014.
Port is in discussions to sell last remaining, approximately 3 mile section, to the City of Woodinville.
Washington State Supreme Court affirmed trial court's dismissal of all substantive claims in Lane's case.
Marine Maintenance is continuing work to get the industrial stormwater permit for the Marine Maintenance
North Office.
20

IV. REAL ESTATE DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
B. KEY INDICATORS
Shilshole Bay Marina Moorage Occupancy
120.0%

100.0%
2013 Actual
Occupied 80.0% 2014 Budget
Percent Linear Footage 60.0% 2014 Actual
40.0%

20.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Fishermen's Terminal Moorage Occupancy
120.0%

100.0%
2013 Actual
80.0% 2014 Budget
Percent Linear Footage Occupied 60.0% 2014 Actual
40.0%

20.0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Commercial Buildings
100%
90% 91% 92% 92% 92%
90% 91% 92% 91% 92%
80% 2013 Actual
Percent 2014 Target
70%
2014 Actual
60%
Qtr 1 Qtr 2 Qtr 3 Qtr 4
Net Operating Income before Depreciation by Business
Fav (UnFav) Incr (Decr)
2013 YTD 2014 YTD 2014 YTD 2014 Bud Var Change from 2013
$ in 000's Actual Actual Budget $ % $ %
Recreational Boating 418 281 127 154 121% (136) -33%
Fishing & Commercial (536) (682) (851) 169 20% (146) -27%
Commercial Properties (252) (361) (856) 494 58% (109) -43%
Conference & Event Centers 267 1 154 (153) -99% (266) -100%
Eastside Rail (64) (88) (81) (7) -9% (24) -38%
RE Development & Plan (65) 1 (135) 136 100% 66 101%
Envir Grants/Remed Liab/Oth 0 0 0 0 NA 0 NA
Total Real Estate (232) (848) (1,641) 793 48% (617) -266%

IV. REAL ESTATE DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
C. OPERATING RESULTS
Fav (UnFav) Fav (UnFav)
2013 YTD 2014 Year-to-Date Budget Variance Year End Projections
$ in 000's Actual Actual Budget $ % Budget Forecast Bud Var
Revenue 5,415 5,621 5,534 87 2% 23,244 23,360 116
Conf & Event Ctr Revenue 2,109 1,556 1,865 (309) -17% 8,132 8,132 0
Total Revenue 7,524 7,177 7,399 (222) -3% 31,376 31,492 116
Real Estate Exp (excl Conf,Maint,P69) 2,374 2,495 2,752 257 9% 11,553 11,553 0
Conf & Event Ctr Expense 1,751 1,422 1,582 160 10% 6,858 6,858 0
Eastside Rail Corridor 20 15 30 15 50% 170 170 0
Maintenance Expenses 1,735 1,904 2,196 292 13% 9,311 9,211 100
P69 Facilities Expenses 39 31 32 1 3% 126 126 0
Seaport Expenses 222 207 244 37 15% 1,310 1,310 0
CDD Expenses 210 481 551 70 13% 2,582 2,582 0
Police Expenses 313 328 335 8 2% 1,391 1,391 0
Corporate Expenses 1,091 1,143 1,319 176 13% 5,417 5,383 34
Envir Remed Liability 0 0 0 0 NA 600 600 0
Total Expense 7,756 8,026 9,041 1,015 11% 39,320 39,186 134
NOI Before Depreciation (232) (848) (1,641) 793 48% (7,944) (7,694) 250
Depreciation 2,457 2,391 2,376 (15) -1% 9,585 9,585 0
NOI After Depreciation (2,688) (3,239) (4,017) 778 19% (17,529) (17,279) 250
Total Real Estate Division Revenues were ($222K) unfavorable to budget. Key variances are as follows:
Harbor Services: favorable $24K
Recreational Boating were ($23K) unfavorable mainly due to slightly below budget monthly moorage
revenue at Shilshole Bay Marina due to mix of vessels.
Fishing and Commercial were $47K favorable primarily due to favorable moorage and related utility sales at
Fishermen's Terminal as well as favorable revenue from Net Shed Lockers as major expense work did not
displace as many customers as expected.
Portfolio Management: unfavorable ($274K)
Commercial Properties were favorable $35K primarily due to favorable space rental revenue from Bell Street
garage $33K due to higher usage as well as receipt of payment relating to a prior period.
Conference & Event Centers were unfavorable ($309K) mainly due to below budget activity at Bell Harbor
International Conference Center ($282K) and World Trade Center Seattle ($38K). It is partially offset by
favorable membership and other miscellaneous revenue.
Eastside Rail Corridor: unfavorable ($6K)
Eastside Rail Corridor revenue was unfavorable due to reversal of $5K revenue accrual made at year-end
2013. The revenue payment was subsequently received in April 2014.
RE Development and Planning: favorable $33K
Terminal 91 General Industrial was favorable $33K due to unbudgeted lease revenue related to relocation of
American Seafoods from West Yard including 3 months of retroactive rent relating to 2013.
Total Real Estate Division Expenses were $1,015K favorable to budget. Key variances:
Real Estate Expenses (excluding Maintenance, P69 Facilities, and Conference & Event Centers Expense)
were favorable $257K. Major account variances were as follows:
Outside Services were favorable $282K primarily due to delayed Terminal 34 Pacific Maritime
Institute tenant improvement costs and broker fees and delayed World Trade Center West Suite 200
Broker Fees as well as other timing associated variances with budgeted use of outside services.
General Expenses were favorable $61K mainly due to the reversal of a prior year reserve set up for
litigation $43K, and favorable third party management expense of $19K.
22

IV. REAL ESTATE DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
Utility Expenses were unfavorable ($127K) due to the unfavorable water and sewer expenses at
Terminal 102 ($59K) caused by a large water leak and unfavorable water expenses at Shilshole Bay
Marina ($41K) due to waterleak and partial miscoding.
Real Estate Conference & Event Centers were favorable $160K primarily due to lower activity resulting in
lower operating expenses and management fees for Bell Harbor International Conference Center $100K and
World Trade Center Seattle $20K. In addition, there has been slower than budgeted use of the
capital/expense reserve account resulting in a $42K favorable variance in Furniture and Equipment
Acquisition Expense.
Eastside Rail Corridor expenses were $15K favorable due to timing of use of outside consulting services.
Maintenance expenses were $292K favorable primarily due to later start than expected on planned
maintenance work at Fishermen's Terminal, Shilshole Bay Marina and Harbor Marina Corporate Center.
Seaport originated expenses were $37K favorable mainly due to lower direct charges from Environmental
Services than budgeted.
CDD costs, direct and allocated, were favorable $70K primarily due to slightly slower spending on
Fishermen's Terminal Net Shed Compliance project.
Police costs, direct and allocated were favorable $8K due to overall lower spending by Police than budgeted.
Corporate costs, direct and allocated, were favorable $176K primarily due to lower than anticipated direct
charges and allocations from Corporate groups including Accounting & Financial Reporting $49K, Risk
Management $45K, Office of Social Responsibility $27K, and Human Resources $17K.
All other variances net to a favorable variance of $1K.
NOI before Depreciation was $793K favorable to budget.
Depreciation was ($15K) or less than 1% unfavorable to budget.
NOI after Depreciation was $778K favorable to budget.
2014 Full Year Forecast
Real Estate anticipates ending the year $250K favorable to Budget for Net Operating Income Before
Depreciation due to favorable revenue variances and favorable expense variances.
Revenue is forecasted to be $116K favorable due to new leases put in place just after completion of the budget.
Expenses are forecasted to be $134K favorable to budget due to Carpet Replacement project that was budgeted
as an expense, but qualified for capitalization and due to lower spending by Corporate groups.
Change from 2013 YTD Actual
Net Operating Income before Depreciation decreased by ($617K) between 2014 and 2013 as a result of lower
revenue ($347K) and higher expenses $270K.
Revenues decreased by ($347K) due to impact of less activity at Bell Harbor International Conference Center
and World Trade Center Seattle ($553K) resulting from significant competitive challenges in the market and
perceived impact of the waterfront transportation projects. This decrease was partially offset by higher revenue
from Commercial Properties $102K driven by new rents at Fishermen's Terminal Office & Retail as a result of
the Downie Building reverting to Port ownership in August 2013 and new tenants at Pier 2 Uplands.
Expenses increased by $270K primarily due to higher CDD expenses $271K largely driven by Fishermen's
Terminal Net Shed Code Compliance Improvement project $193K and work on the Shilshole Bay Marina Site
Plan project. Real Estate Expenses (excluding Conf & Event, Maintenance, and Facilities) increased by $121K
due to scheduled increases in Salaries & Benefits as well as an addition of a .5 new FTE within Harbor Services
and due to higher Utility Expenses primarily water and sewer. Maintenance expenses increased $169K due to
more work on Commercial Properties and Harbor Services and Corporate expenses increased $51K due to higher
allocations from Accounting partial offset by lower allocations from other Corporate groups. Increases were
partially offset by lower Conference and Event Center expenses resulting from lower activity ($329K).
23

IV. REAL ESTATE DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
D. CAPITAL SPENDING RESULTS
Budget Variance
2014 YTD 2014 2014
Actual Forecast Budget $ %
$ in 000's
FT C15 HVAC Improvements 139 4,147 4,147 0 0%
P69 Built-Up Roof Replacement 50 2,650 2,680 30 1%
FT C2 (Norby) Roof & HVAC 76 1,902 1,874 (28) -1%
Small Projects 257 2,080 1,872 (208) -11%
P69 Carpet Replacement 2 1,197 1,200 3 0%
P69 N Apron Corrosion Control 73 93 639 546 85%
All Other 711 5,512 5,689 177 3%
Total Real Estate 1,308 17,581 18,101 520 3%

Comments on Key Projects:
Through the first quarter, the Real Estate Division spent 7% of the Approved Capital Budget. Full year spending
is estimated to be 97% of the Approved Capital Budget.
Projects with significant changes in spending were:
Small Projects There were two projects which were originally included in the 2014 expense budget,
Downie Building Siding ($140K) and C15 Bldg Window Replacement ($90K), that were re-scoped and
determined to qualify for capitalization.
P69 N Apron Corrosion Control - Bids came in at a much lower than estimated. No change orders
during construction and contingency money was not used.

V. CAPITAL DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
A. BUSINESS EVENTS
NorthSTAR design charette completion for North Satellite (NSAT), construction contract award for C
concourse vertical circulation.
Gained Agency Approval for General Contractor/Construction Manager (GC/CM) and Design-Build (DB)
valid for 3 years (1/23/14).
Hosted a Northwest Construction Consumer Council (NWCCC) construction management student
competition.
PCS had seventy active projects during the first quarter. Key projects included, relocation of EGSE charging
stations, federal inspection station renovations (FIS), gate S16 passenger loading bridge, noise remedy
program, automated passport controls, cell phone lot, fishermen's terminal net shed renovation and north
satellite baggage installation.
Substantial completion on the Terminal 5 Maintenance Dredging Project.
Beneficial Occupancy issued for the Pier 69 Corrosion Control Project.

V. CAPITAL DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
B. KEY PERFORMANCE METRICS
Key Performance Metrics 2014 2013/Notes
A. Implement Century Agenda Strategies Goals
1. Small Business Participation Annual / Small Works
(Annual only) 75.0% 60%
2. Small Business Participation Annual / Major
Construction (Annual only) 35.9% 8%
3. Small Business Participation Annual / Goods &
Services (Annual only) 10.6% 10%
4. Small Business Participation Annual / Service
Agreements (Annual only) 27.6% 5%
B. Consistently Live by Our Values Through Our Actions and Priorities
1. Safety Annual (Annual only) 93% 90%
2. Environment Annual (Annual only) 95% 100%
3. PREP Timeliness (0-30 days of anniversary date) 71% 76% 98%
C. Manage Our Finances Responsibly
1. Construction Soft Costs Total Soft Costs (36-mo avg) Max. 25%
26% 25% capital costs
2. Construction Soft Costs Total Construction Costs (36- Min. 75%
mo avg) 74% 75% capital
D. Exceed Customer Expectations
1. Customer Score Card Annual (Annual only) 94.2% Avg. 85%
2. Procurement Schedule Major Public Works 67 78 Avg # days
3. Procurement Schedule Small Works 37 56 Avg # days
4. Procurement Schedule Goods & Services 22 55 Avg # days
5. Procurement Schedule Service Agreements 189 169 Avg # days
E. Support Port Mission with Implementation of Port Divisions' Business Plan
Max. 5%
construction
contract
1. Construction Cost Growth Discretionary Change 0% 1.9% award
Max. 5%
construction
contract
2. Construction Cost Growth Mandatory Change 7.4% 6.5% award
Max. 10% of
originally
allotted
3. Project Schedule Growth Design 98% 13.4% duration
Max. 10% of
originally
allotted
4. Project Schedule Growth Construction 7% 24.8% duration
5. Project Status On Schedule / On Budget 48.5%
6. Project Status Either Schedule or Budget Off Not yet available 49.5%
7. Project Status Both Schedule and Budget Off 2%

V. CAPITAL DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 03/31/14
C. OPERATING RESULTS
Fav (UnFav) Fav (UnFav)
2013 YTD 2014 Year-to-Date Budget Variance Year-End Projections
$ in 000's Notes Actual Actual Budget $ % Budget Forecast Bud Var
Total Revenues 5 12 - 12 0.0% - - -
Expenses Before Charges To Cap/Govt/Envrs Propects
Capital Development Administration 90 94 99 5 4.7% 404 404 -
Engineering 3,026 3,359 3,802 443 11.7% 15,878 15,714 164
Port Construction Services 1,498 2,120 1,895 (225) -11.9% 7,556 7,556 -
Central Procurement Office 1,177 1,073 1,312 239 18.2% 5,332 5,297 35
Aviation Project Management 1,846 2,014 2,748 734 26.7% 13,260 13,260 -
Seaport Project Management 573 743 680 (63) -9.3% 3,236 3,236 -
Total Before Charges to Capital Projects 8,210 9,404 10,536 1,132 10.7% 45,666 45,466 200
Charges To Capital/Govt/Envrs Projects
Capital Development Administration - - - - 0.0% - - -
Engineering (1,854) (2,210) (2,671) (461) 17.3% (10,857) (10,512) (344)
Port Construction Services (934) (1,379) (1,062) 318 -29.9% (4,247) (4,247) -
Central Procurement Office (468) (434) (431) 3 -0.6% (1,724) (1,724) -
Aviation Project Management (1,589) (1,711) (2,549) (838) 32.9% (10,659) (10,659) -
Seaport Project Management (331) (453) (385) 69 -17.9% (1,648) (1,648) -
Total Charges to Capital/Govt/Envrs Projects (5,176) (6,187) (7,097) (910) 12.8% (29,134) (28,790) (344)
Operating & Maintenance Expense
Capital Development Administration 90 94 99 5 4.7% 404 404 -
Engineering 1,172 1,149 1,131 (18) -1.6% 5,021 5,201 (180)
Port Construction Services 564 741 833 92 11.1% 3,310 3,310 -
Central Procurement Office 709 639 881 242 27.4% 3,609 3,573 35
Aviation Project Management 258 303 199 (104) -52.3% 2,601 2,601 -
Seaport Project Management 242 290 295 5 1.9% 1,587 1,587 -
Total Expenses 3,034 3,217 3,439 222 6.5% 16,532 16,676 (145)
Variance Summary and other notes:
Vacancies: 20.8 FTEs = $495K Salaries & Benefit savings from unfilled positions.
Over Absorption OH Clearing ($229K) represents costs allocated as overhead above the total actual
overhead costs. Actual capital, expensed and net operating costs will decrease to account for the over
absorption value. YTD budget variance will increase by the Absorption value.
CDD Admin $5K. Favorable variance due to timing of Travel and Salary expense.
ENG ($18K). Favorable variances of $609K in Salaries & Benefits, Equipment, Supplies, Utilities, Outside
Services and Travel due to delay in filling vacant positions, and shifting other budgeted expenses to later
2014. Offset by unfavorable variances of ($150K) in unexpected Legal accrual expenses, reduced overhead
allocations and Charges to Capital due to delayed of capital projects ($480K). Variances in salaries and
benefits (lower costs) are balanced by variance of reduced charges to capital and overhead allocations.
PCS $92K. Favorable variances in Equipment, Utilities, Outside Services (less payments to Small Works
contracts than anticipated), Telecommunications, Travel (more in-house training), Workers Comp (less
exposure than anticipated), Outside Services and General Expenses offset by unfavorable balances in Salary
& Benefits, Supplies & Stock Maintenance Materials for Expense Projects: Net Shed, Aviation expense
projects, 2013 accrual adjustments), and Charges to Capital (less capital work than originally budgeted).
CPO $242K. Favorable variances primarily due to Salaries & Benefits and Outside Services.
AVPMG ($104K). Favorable variances in Salaries & Benefits, Equipment, Outside Services, and Travel
offset by Charges to Capital less than budgeted.
SPM $5K. Favorable variances in Salary & Benefits, Outside Services (timing of consultant contracts),
Travel (training not taken) and Charges to Capital offset by unfavorable variance in General Expenses
(accounting process will be adjusted).

VI. CORPORATE FINANCIAL & PERFORMANCE REPORT 03/31/14
A. BUSINESS EVENTS
Engaged the community in the Centennial Kick off, Open House for customers and tenants and annual
Blessing of the Fleet at Fishermen's Terminal.
Expanded the live music program at the airport as it continues to generate numerous stories that highlight the
Port's position as a national leader in supporting a pleasant customer experience and the success of local
artists.
Released several new short videos in support of news events, to highlight innovations by the business units
and to support internal communications: new overpass at 1st and Atlantic; automated passport controls;
Foreign Trade Zone; success with CPI Lean.
Organized participation of U.S. Rep. Adam Smith to join the airport, Alaska Airlines and Puget Sound Clean
Air Agency in celebrating the electric ground service equipment ground breaking.
Executed a search for a new Chief Executive Officer by an executive search firm.
The Port received a clean, unqualified independent Certified Public Accountant (CPA) audit opinion on the
Port's 2013 financial statements from the Certified Public Accounting (CPA) firm, Moss Adams.
Continued to support the Ballard Maritime Academy by participating in their Steering Committee, and by
providing input to Seattle Public Schools' Skills Center on the development of a new Maritime Skills Center
program.
Launched the Cigna Wellness reward and Group Health Wellness programs and achieved approximately
65% health assessment completion rate to date.
Completed and rolled out the new training tool for Pier 69 vehicle use and accountability and updated the
P69 motor pool dispatch form and check out process.
Implemented the new risk and claims management software tool, Origami, and work progresses on
transforming the older CSC Risk Master data into the new format.
Provided consultation on administration of collective bargaining agreements to Port divisions and oversight
committees.
Provided consultation to work groups following up on results of employee involvement survey.
Continued to provide intensive organizational development services to clients across the port.
Began recruitment for the 13th class of veteran fellows.
Kicked-off 2014 internal internship program.
Purchased a new Applicant Tracking Software System, Kenexa, which provides an easier and less
burdensome hire process and a more efficient recruiting process.
Launched a cloud platform Learning Management System successfully.
Upgraded the Avaya/Nortel phone environment at SeaTac, Fisher Plaza and 9 remote sites.
Replaced the Asbestos Information Management System with an application that leverages SharePoint's
document management capabilities and GIS system's detailed maps and floor plans.
Upgraded the Access Control Network System, which reduces maintenance costs and ensures network
infrastructure availability for critical Aviation applications such as the Access Control, Breach Notification,
and Alarm systems.
Continued good progress toward improving the Port's accounting policies and ensuring their continued
alignment with evolving prescribed Generally Accepted Accounting Principles (GAAP).
Collaborated with the Port of Tacoma for the Economic Impact Study procurement/contract.
Completed the Banking Services RFP. Selection was announced in early March 2014 and currently working
on the bank implementation process.
In the process of completing the Feasibility Consultant services and Disclosure Counsel procurement
process.
Continued to reach out to the community to educate small businesses on contracting opportunities and the
Small Contractors and Suppliers Program (SCS).
Began the Citizen's Academy, which is a program for non-law enforcement personnel and community
members to attend a classroom style program that educates the community on police practices.

VI. CORPORATE FINANCIAL & PERFORMANCE REPORT 03/31/14
B. KEY PERFORMANCE METRICS
Key Performance Indicators/Measures YTD 2014 YTD 2013/Notes
A. Implement Century Agenda Strategies
1. Percentage of eligible dollars spent with small businesses 37.9% 47.9%, decreased
by 10%
2. Small businesses registered on the Procurement Roster 50 78, decreased by
Management System (PRMS) 28
3. Percentage of craft hours worked by apprentices on projects over 15.4% 11%, increased by
$1 million (or PLA) 4.4%
4. Community members gaining employment through Airport Jobs 197 219, decreased by
Center (2014 goal is contract minimum with service provider) 22
5. Apprenticeship Opportunity Project Placements 23 31, decreased by 8
6. Small business and Workforce development outreach events 9 6, increased by 6
and workshops
B. Consistently Live by Our Values Through Our Actions and Priorities
3 classes, 13 0 class
1. MIS and Clarity Training
attendees
39 78, decreased by
2. Employee Development Class Attendees/Structured Learning
39
75% 87%, decreased by
3. Required Safety Training
12%
4. Request of information and guidelines for integrity & business 53 86
conduct
5.48 4.77, increased by
5. Occupational Injury Rate
0.71
120 185, decreased by
6. Total Lost work days
65 days
C. Manage Our Finances Responsibly
1. Corporate costs as a % of Total Operating Expenses 26.2% 25.4%
2. Clean independent CPA audits involving AFR yes yes
3. Timely process disbursement payment requests 4 days 3 days
4. Keep receivables collections 85% current (within 30 days) 84% 44%
5. Investment Portfolio Yield 0.99% 0.79%
6. Litigation and Claim Reserves (in $ thousand) 932 1,182
D. Exceed Customer Expectations
1. Respond to Public Disclosure Requests 83 77, increased by 6
2. Information and Communication Technology System Availability 99.00% 99.80%
3. IT Network Availability 99.98% 99.98%
4. Service Desk % of first call resolution 58% 66%
5. Customer Survey for Police Service 80% 88%
E. Support Port Mission with Implementation of Port Divisions' Business Plan
1. Oversee Implementation and Administration of CBAs agreements 13 n/a
2. Oversee Implementation and Administration of PLAs 84 n/a
3. Number of Jobs Openings 98 69
4. Percent of annual audit work plan completed each year 8% 10%

VI. CORPORATE FINANCIAL & PERFORMANCE REPORT 03/31/14
C. OPERATING RESULTS
Fav (UnFav) Fav (UnFav)
2013 YTD 2014 Year-to-Date Budget Variance Year-End Projections
$ in 000's Notes Actual Actual Budget $ % Budget Forecast Bud Var
Total Revenues 68 83 39 44 114.8% 155 155 -
Executive 442 441 510 68 13.4% 1,818 1,818 -
Commission 209 237 436 200 45.8% 1,645 1,645 -
Legal 698 700 861 162 18.8% 3,264 3,215 50
Risk Services 672 720 793 73 9.2% 3,173 3,143 30
Health & Safety Services 259 246 302 56 18.4% 1,190 1,186 4
Public Affairs 1,199 1,215 1,663 448 26.9% 6,069 5,967 102
Human Resources & Development 1,173 1,225 1,318 93 7.1% 5,655 5,636 19
Labor Relations 311 295 336 41 12.3% 1,319 1,281 38
Information & Communications Technology 4,257 4,651 4,721 70 1.5% 20,850 20,850 -
Finance & Budget 353 436 609 173 28.4% 1,856 1,827 30
Accounting & Financial Reporting Services 1,376 1,412 1,691 279 16.5% 7,081 6,974 106
Internal Audit 291 300 314 14 4.5% 1,422 1,501 (79)
Office of Social Responsibility 215 444 664 220 33.1% 2,187 2,230 (43)
Police 5,069 5,374 5,463 88 1.6% 22,658 22,613 45
Contingency 60 - 50 50 100.0% 450 250 200
Total Expenses 16,583 17,695 19,731 2,035 10.3% 80,637 80,135 501
Corporate revenues were $44K favorable compared to budget due to higher operating grants.
Corporate expenses for the first three months of 2014 were $17.7 million, $2.0 million or 10.3% favorable
compared to the approved budget and $1.1M or 6.7% higher than the same period a year ago. The $2.0 million
favorable variance is due primarily to vacant positions, delay hiring, timing of spending, and actual savings.
All corporate departments have a favorable variance.
Year-end spending is projected to be $501K under budget due primarily to:
Legal - projecting lower cost on Outside Services and Travel.
Public Affairs - vacant positions and savings in Promotional Expenses.
Human Resources and Development - vacant positions and savings in Outside Services.
Labor Relations - savings in Payroll and unbudgeted charges to capital.
Finance & Budget - lower cost for the Economic Impact Study.
Accounting and Financial Reporting Services - vacant positions and savings in Travel.
Internal Audit and Office of Social Responsibility - unbudgeted Outside Services; CPO Performance
Audit, Training and Assistance for the Port's Clean Air Program.
Police - vacant positions, savings in equipment purchases, Outside Services, Travel and Supplies &
Stock.
Not anticipating to use all funds in Contingency.
D. CAPITAL SPENDING RESULTS
2014 YTD 2014 2014 Budget Variance
$ in 000's Actual Forecast Budget $ %
Radio System Upgrade 79 3,242 3,742 500 13.4%
ID Badge System Replacement 625 1,965 1,965 0 0.0%
Infrastructure - Small Cap 224 1,847 1,847 0 0.0%
Network Switch Replacement 2 1,400 1,300 (100) -7.7%
Service Tech - Small Cap 124 1,440 1,440 0 0.0%
All Other 404 5,427 5,661 234 4.1%
TOTAL 1,458 15,321 15,955 634 4.0%

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