ITEM NO.    6a_Supp
DATE OF
MEETING March 1, 2011

2010 Financial Performance
Port of Seattle
March 1, 2011

Background
Zero Based Budgeting for 2010 Budget:
Reduced and eliminated some programs and functions
Implemented Voluntary Separation Program (VSP)
Introduced premium sharing for Port sponsored
medical plan
Eliminated 110 positions (6.2% of the total workforce)
2010 budget was very lean.

2

Operating Income Summary
2009    2010    2010 2010 Act vs. Bud
$ in 000's                            Actual     Actual    Budget    Var $   Var %
Aeronautical Revenues       182,534  198,329  210,367  (12,038)  -5.7%
Other Operating Revenues    266,901  272,161  266,416   5,745  2.2%
Total Operating Revenues     449,435  470,490  476,784   (6,293)      -1.3%
Total Operating Expenses     245,767  253,195  262,696   9,501  3.6%
Income before Depreciation    203,668   217,295  214,088    3,208  1.5%
Depreciation             157,068   160,775  158,575   (2,199)      -1.4%
Income after Depreciation      46,600   56,521   55,512    1,008   1.8%

3

2010 Major Revenue Variances
Major Revenues ($ in 000's)      Bud Var.
Aeronautical Revenues        (12,038)
Public Parking               (2,396) 
Rental Cars                 (705) 
Concessions              3,177
Container                  4,838
Cruise                   1,359
Grain                     502
Dock & Industrial Properties       1,183
Seaport Security Grants          (744) 
Seaport Environmental Grants     (1,600) 
Commercial Properties          (405) 
Real Estate Third Party Mgmt       358
Other                    178
Total Non-Aero Revenues      5,745
TOTAL              (6,293) 
4

2010 Major Expense Variances
Actual/Budget
Operating Expenses ($ in 000's)       Var. $ Var. %
Salaries & Benefits              6,399   7.3%
Wages & Benefits             (860)  -1.1%
Payroll to Capital Projects          6,566  29.0%
Equipment Expense           (1,230) -23.6%
Supplies & Stock               (915) -15.8%
Outside Services              5,686  12.1%
Utilities                              927    4.6%
Travel & Other Employee Exps       806  18.9%
Promotional Expenses           389  25.8%
Other                     (485)  3.6%
Charges to Capital Projects        (7,782)  21.5%
Total                       9,501   3.6%
5

Net Operating Income Comparison



6

Comprehensive Summary
($ in 000s)                                     2009         2010         2010      Actual/Budget
Revenues                     Actual     Actual    Budget    Var. $   Var. %
Aeronautical Revenues               182,534    198,329          210,367         (12,038)         -5.7%
Other Operating Revenues             266,901    272,161          266,416          5,745    2.2%
Tax Levy                         75,587          73,125     73,500      (375)   -0.5%
PFCs                          59,689         59,744     58,535     1,209    2.1%
CFCs                         21,866         23,243     22,475     768    3.4%
Non-Capital Contributions                7,153     12,087      2,209     9,878   447.2%
Capital Contributions                   76,781           30,518      50,152    (19,634)         -39.1%
Interest Income                     17,251          13,096     24,489    (11,393)         -46.5%
Total                           707,763     682,304          708,143          (25,839)         -3.6%
Expenses
O&M Expense                  245,767    253,195         262,696         9,501    3.6%
Depreciation                      157,068    160,775          158,575          (2,200)   -1.4%
Revenue Bond Interest Expense          121,148    135,277          150,070          14,793    9.9%
GO Bond Interest Expense              15,785          17,463     14,432     (3,031)   -21.0%
PFC Bond Interest Expense              10,956          10,187     10,497      310    3.0%
Non-Op Environmental Expense          14,676          22,828     20,000    (2,828)   -14.1%
Public Expense                      20,370          25,085     39,464    14,379    36.4%
Misc. Non-Op Rev/Expense             10,004          8,988      2,217    (6,771)  -305.3%
Total                           595,773     633,798          657,951          24,153     3.7%
Change In Net Assets                 111,989     48,506     50,192     (1,686)    -3.4%
7

Capital Spending by Division
2009   2010   2010  Budget Plan of
Division    Actual  Actual Budget Variance Finance
($ in millions)
Aviation         191.5   183.6   247.6    64.0   275.8
Seaport        44.7   11.2   30.9    19.7    30.6
Real Estate      74.0    4.0   11.8     7.8    12.1
Corporate        7.7    3.8   16.7    12.8    10.5
Total        317.9   202.6   306.9   104.3   329.1

8

2010 Performance Report
Aviation Division

9

Aviation Business Highlights
Airline activity:
Enplanements up 1.06% from 2009, with positive YOY
enplanements since June
Operating budget:
Total O&M expenses are 2.2% below budget due to savings of
benefits and Corporate allocations
Non-airline NOI:
$2.6 million over budget; primarily due to cost savings
Revenues favorable $290K  strong Concessions offset negative
variances in public parking and rental cars
Airline cost per enplanement (CPE) of 11.63 vs. budget of
$12.69
Capital spending at 74.2% of 2010 annual budget
10

Strategic Initiatives
Customer Service:
New service to Osaka started in June
Initiated terminal realignment with airline agreement
Non-Aeronautical Business:
New concession agreements with taxis and limousine service
Environmental Leadership:
Completed design and initiated construction on PC Air project
Secured grants for electric ground service equipment project
Supportive Community:
Executed voluntary runway use plan with FAA
Employee Development:
Completed internal internship program with eight interns
Asset Management  South Satellite as prototype
11

Activity

2009      2010    %       2009    2010   %
Figures in 000s         Q4         Q4  Variance     Actual    Actual  Variance
Enplanements        3,686         3,842     4.2%   15,610        15,773         1.0%
Landed Weight      4,792         4,874     1.7%   20,388       19,786        -3.0%
Enplanements growth of 1.0% over 2009 actual, up from forecast of 0.5%.
Landed weight in 2009 (March & April) included 267 wide-body cargo
diversions from Anchorage due to volcanic activity.
Q4 landed weight showed positive growth  airlines adding capacity
12

Division Summary
2008     2009     2010     2010     Actual/Budget
$ in 000's    Actual     Actual     Actual     Budget     Var $   Var %
Operating Revenues
Aeronautical                     204,361         182,534          198,329         210,367          (12,038)   -5.7%
Non-Aeronautical                 150,528         137,348         135,418         135,128            290      0.2%
Other                          3,440         8,359         8,426         8,803          (377)   -4.3%
Operating Revenues               358,329         328,241         342,173         354,299         (12,126)   -3.4%
Operating Expenses                192,641         175,482         177,871         182,075           4,203       2.3%
Environmental Remediation Liability         2,542          1,991          3,271          2,971           (300)  -10.1%
VSP, HR10 & Unemployment             - 1,196 - - -       n/a
OPEB Reversal                     - (4,016) - - -       n/a
Total Operating Expenses             195,183         174,654          181,142         185,045           3,903       2.1%
Net Operating Income               163,146         153,587         161,031         169,254          (8,223)   -4.9%
Capital Expenditures                  209,813    191,479     183,578          247,567           63,989        25.8%
Traffic
Enplanements                    16,085    15,610     15,773         15,361           412      2.7%
Landed Weight                  21,516    20,388     19,786         20,364          (578)  -2.8%
Key Measures
Non-Aero NOI ($ in 000s)              86,474     81,159     78,203          75,688           2,515        3.3%
Passenger Airline CPE                 11.89     10.92      11.63          12.69           1.06       8.3%
Total Operating Cost / Enpl              12.13      11.19      11.48          12.05           0.56       4.7%
Debt Service Coverage                 1.40      1.41       1.39         1.35          0.04       2.6%
Exceeded budget for all key performance measures

13

Operating Expense
2008     2009     2010     2010      Actual/Budget
$ in 000's     Actual     Actual     Actual     Budget      Var $    Var %
Total Operating Revenues               358,329    328,241    342,173    354,299      (12,126)     -3.4%
Operating Expenses
Salaries & Benefits                       89,458      80,804      76,036      78,103       2,067          2.6%
Outside Services                       31,928     21,509     22,519     24,848       2,329          9.4%
Utilities                                    12,636       13,209       11,381       12,762         1,381           10.8%
VSP, HR10 & Unemployment Savings           -        1,196       -         - - n/a
OPEB Reversal                       -       (4,016)           -         - - n/a
Environmental Remediation Liability            2,542      1,991      3,271      2,971        (300)    -10.1%
Other Expenses                       6,135      8,183     13,275      9,063      (4,212)    -46.5%
Baseline Airport Expenses              142,699    122,877    126,481     127,745       1,264         1.0%
Corporate Expenses                   34,940     31,181     32,558     34,776       2,217         6.4%
Police Expenses                      15,287     14,461     14,317     15,170        853        5.6%
Capital Development/Other Expenses         2,257      6,135      7,785      7,354       (431)     -5.9%
Total Operating Expenses                195,183    174,654    181,142     185,045       3,903         2.1%
Net Operating Income                 163,146    153,587    161,031    169,254      (8,223)    -4.9%
Operating expense is $3.9 million favorable.
Savings are from payroll benefits $2.0M, utilities commodities $1.4M, International
Lounge expenses $390K, deferral of South Access Study $450K, FTE vacancies
$218K and Corporate and Police allocations $3.0M.
Budget deficits are from back-up power generators not budgeted for Fall season
$1.6M, litigated injury and damages claims $1M, janitorial contract cost of living
increase $255K, unemployment benefits $400K, and B&O taxes $530K.

14

Aeronautical Business
2008     2009     2010     2010      Actual/Budget
$ in 000's     Actual      Actual      Actual      Budget     Var $    Var %
Revenues requirement:
Capital Costs                       81,535      72,013      82,083      92,610     10,527     11.4%
Operating Costs net Non-Aero          131,024     118,456     122,985     125,605     2,620     2.1%
Total Costs                      212,559     190,469     205,067     218,215     13,147     6.0%
FIS Offset                          (5,250)      (5,250)      (7,000)      (7,000)      - 0.0%
Other Offsets                      (15,686)     (16,441)     (14,825)     (15,062)      (237)        -1.6%
Net Revenue Requirement             191,623     168,778     183,243     196,153     12,911     6.6%
Other Aero Revenues                12,738      13,757      15,087      14,215      (871)       -6.1%
Total Aero Revenues              204,361     182,534     198,329     210,369     12,039     5.7%
Less: Non-passenger Airline Costs         13,039      12,074      14,885      15,485      (599)        -3.9%
Net Passenger Airline Costs             191,323      170,460      183,444      194,884     12,639     6.5%
Airline revenues based on cost recovery.
Landing Fee revenues were less than budget due to savings from not utilizing
commercial paper financing $2M, operating costs $900K, and ramp tower $1M.
Terminal Rental revenues lower than budget due to savings from lower interest rate
of variable rate bonds.
Operating costs lower due to cost savings from payroll benefits and Corporate allocations.

15

Aeronautical Key Indicators
2008     2009     2010     2010      Actual/Budget
Actual      Actual      Actual     Budget     Var $   Var %
Cost Per Enplanement:
Capital Costs / Enpl                   5.22        4.61        5.20        6.03       0.83     13.7%
Operating Costs / Enpl                 8.39        7.59        7.80        8.18      0.38     4.6%
Offsets                           (1.30)       (1.39)       (1.38)       (1.44)      (0.05)         3.7%
Other Aero Revenues                0.79       0.88       0.96       0.93     (0.03)        -3.4%
Non-passenger Airline Costs            (0.84)       (0.77)       (0.94)       (1.01)     (0.06)         6.4%
Passenger Airline CPE              11.89      10.92      11.63      12.69      1.06    8.3%

Actual passenger airline cost per enplanement (CPE) came in
at $11.66, forecasted at $11.99.
If enplanements equal to budget, CPE would be $11.98.

16

Non Aeronautical Business
2008     2009     2010      2010      Actual/Budget
$ in 000's     Actual      Actual      Actual       Budget       Var $     Var %
Revenues:
Public Parking                       59,111           49,688           49,416       51,812      (2,396)     -4.6%
Rental Cars                         35,592           33,321           30,309       31,014       (705)    -2.3%
Concessions                     33,181         33,482         33,765      29,953      3,812        12.7%
Other                          22,644          20,858          21,929      22,350      (421)    -1.9%
Total Revenues                  150,528          137,348          135,418           135,128       290        0.2%
Operating Expense                  61,279     55,916     54,743      56,732      1,988         3.5%
Share of terminal O&M                16,396     17,011     16,935       17,174       238        1.4%
Less utility internal billing                 (13,515)            (16,738)            (14,464)             (14,466)          2        0.0%
Net Operating & Maint                64,160     56,189     57,215       59,440      2,225         3.7%
Net Operating Income                86,367     81,159     78,203      75,688      2,515         3.3%

Public Parking actual variance of $2.4M is better than forecasted of $5M below budget. Growth
in 1-4 day transactions.
Rental Car revenues were budgeted using higher industry gross sales.
Concessions revenues were better than expected due to space rental income $1.1M, advertising
$500K, food & beverages $1.1M, retail/duty free $1M, Google Wi-Fi deal.
Other Non-airline revenues shortfall due to delay in South Access Planning study ($450K) and
Club International ($700K) offset by increase in ground transportation revenues from Yellow
Cab contract which began November 1.
Operating expense under spent due to outside services not utilized for the Club International
Lounge $512K.

Non Aeronautical Key Indicators
2008     2009     2010      2010      Actual/Budget
Actual     Actual     Actual     Budget      Var $    Var %
Revenues Per Enplanement
Parking                           3.67       3.18       3.13        3.37      (0.24)    -7.1%
Rental Car                           2.21       2.13       1.92        2.02       (0.10)    -4.8%
Concessions                      2.06      2.14      2.14       1.95      0.19     9.8%
Other                           1.41       1.34       1.39        1.45      (0.06)    -4.4%
Total Revenues                    9.36       8.80       8.59        8.80      (0.21)    -2.4%
Primary Concessions Sales / Enpl          10.29       9.66       9.99        9.78       0.21     2.1%
Concessions sales per enplanement was 10.32 for Q4.


18

Non Aeronautical Activity
2008      2009     2010     2010    2010 Var  2010 vs 2009 Yr to Yr   Garage Parking
Actual     Actual    Actual    Budget   to Budget    Actual   % Var    Transactions: Number of
Garage Parking                                                                vehicles paying to park in
Transactions: 0-3 Hours     1,676,276   1,581,271   1,413,600          1,516,420    (102,820)    (167,671)  -10.6%   the General & Direct
Transactions: 3-24 Hours     195,224          164,924          168,604    171,501           (2,897)      3,680    2.2%   garage parking.
Transactions: 1-4 Days       419,077          351,011          357,594    368,104          (10,510)      6,583    1.9%   Revenue to Port:
Transactions: +4 Days       130,758          105,862          105,670    113,468          (7,798)      (192)   -0.2%   Revenue from airport
2,421,335   2,203,068   2,045,468          2,169,493    (124,025)    (157,600)   -7.2%   garage parking (net of all
Revenue to Port ($000) $ 53,548      $ 44,797      $ 45,060       $ 46,911      $ (1,851)      $ 263      0.6%   taxes).
Rental Cars                                                                    Rental Cars
Transactions Cars         1,210,954   1,019,534   1,075,568          1,064,000     11,568     56,034    5.5%   Revenue to Port: 10% of
Transactions Days        5,199,183   4,388,906   4,695,879         4,495,000    200,879          306,973         7.0%   gross sales generated by
Revenue to Port ($000) $ 28,474      $ 26,140      $ 23,129       $ 23,834      $ (705)     $ (3,011)      -11.5%   rental cars (does not
Ground Transportation                                                            include space rent).
Trips                  2,145,898   1,919,508   1,790,374          1,949,389    (159,015)    (129,134)   -6.7%
Revenue to Port ($000) $ 4,691      $ 4,629      $ 4,814      $ 4,432      $ 383    $ 185      4.0%
Primary Concessions
Primary Concessions                                                             Sales: Total sales
Sales               165,391,237  150,682,463          157,551,180  150,123,000         7,428,180.00  6,868,717.00    4.6%   generated by the Primary
SPE              10.29    9.66     9.99    9.78    0.21     0.33   3.4%  Concessionaires
Revenue to Port ($000) $ 22,594      $ 20,593      $ 21,617       $ 19,516      $ 2,101      $ 1,024       5.0%   (Food/Beverage and
Retail/Duty Free.)


19

Net Cash Flow: NOI After Debt Service & Interest Income
2008     2009     2010     2010     Actual/Budget
$ in 000's     Actual      Actual      Actual     Budget      Var $     Var %
Aeronautical
Net Operating Income (NOI)                  72,583          65,985          74,402          84,763         (10,360)        -12.2%
Debt Service                            78,526          68,767          73,080          83,607          10,527   12.6%
NOI After Debt Service                  (5,943)     (2,781)     1,323     1,156      167   14.5%
Non-Aeronautical
Net Operating Income (NOI)                  86,474          81,159          78,203          75,688          2,515        3.3%
Debt Service                            41,762          39,241          41,752          40,921           (830)   -2.0%
NOI After Debt Service                 44,712         41,917         36,451         34,767         1,684       4.8%
Fuel Hydrant Revenue                      3,440      8,359      8,426      8,803      (377)   -4.3%
Total Aviation
NOI                       162,496   155,503   161,031   169,254    (8,223)  -4.9%
Debt Service                            120,288     108,008     114,831     124,528      9,697        7.8%
NOI After Debt Service                 42,208         47,495         46,200         44,726         1,474       3.3%
Add ADF Interest Income                   11,462          8,853      6,297      7,065      (768)  -10.9%
Less Non-Cash Fuel Hydrant Revenue            (2,926)     (7,845)     (7,912)     (7,845)      (67)      0.8%
Net Cash Flow after D/S & Interest Inc.        50,745          48,503          44,585          43,946           639    1.5%
In spite of negative variance for NOI, NOI after debt service and net cash flow show
positive variances.
Savings in aeronautical debt service reduce NOI due to cost recovery nature of revenue
formulas.
20

Capital Spending
2010
2010    2010     Actual/Budget    Plan of
$ in 000's    Actual    Budget    Var $     Var %    Finance
Rental Car Facility                   143,076    174,699     31,623     18.1%   157,818
All Other                         40,502    72,868    32,366     44.4%   118,014
183,578   247,567    63,989     25.8%   275,832

Rental Car Facility:
$10M in savings due to favorable bids on the Off-site Roadway
Improvement (ORI), Bus Maintenance Facility (BMF) and Bus Purchases.
Turner's construction expenditures have lagged behind the cash flows
they provided because ORI, BMF and Main Terminal Improvements
projects have experienced schedule delays.

21

2010 Performance Report
Seaport Division

Seaport Business Goals
Provide Compelling Value and Asset Utilization
TEU volume was a record 2,140K TEU's, up 35.0% from
2009 and surpassing previous high volume set in 2005.
Grain volume at 5.5 million metric tons or 10% over 2010
budget.
Cruise passengers and sailings also set a new record
931,698 passengers and 223 sailings.
Inaugural year for use of Smith Cove Cruise Terminal as
an event site.
Executed new lease with PCC Logistics at Terminal 104.
Louis Dreyfus exercised option for 5 year lease extension
at Terminal 86.
23

Seaport Organizational Goals
Environmental Stewardship
Continuing implementation of Northwest Ports Clean Air
Strategy.
72% of frequent calls meeting Northwest Ports Clean
Air Standards target
Drayage truck registry launched in Q3: More than
6,000 trucks registered. 270 pre 1994 trucks scrapped
since program inception
Clean Air Truck program successfully implemented at
terminal gates on January 1, 2011
AAPA award for Environmental Compliance Assessment
Program
24

Seaport Organizational Goals
Regional Transportation
Authorization of $3.4 million investment in the Spokane
Street Widening project.
Closely monitored south harbor road construction projects
and detour routes.


25

Seaport 2010 Operating Results
$ in 000's                    2009     2010     2010      2010 Bud Var
Actual   Actual  Budget    $ %
Operating Revenue           89,844   96,060   90,134    5,925    7%
Security Grants                847    1,791    2,535     (744)  -29%
Total Revenue              90,691   97,850   92,669    5,181    6%
Direct Expenses             25,108   20,780   22,698    1,918    8%
Security Grant Expense          860    1,983    2,689         706   26%
Envir Remediation Liability            24     1,170     1,500      330    22%
Allocations                  14,553   15,387   16,437    1,050    6%
Total Expense              40,545   39,321   43,324    4,004    9%
Net Operating Income (NOI)    50,145   58,530   49,345    9,185   19%


26

Seaport Division Key Variances
Revenue Detail ($ in 000's)
2010 Business Unit Results      Variance to Budget
Better (Worse)
Containers                          $4,843
Support Properties                       ($362)
Cruise                             $1,359
Grain                              $502
Docks/Industrial Properties                  $1,183
Security                              ($744)
Environmental Grant                   ($1,600)
Total                               $5,181
27

Seaport Division Key Variances
Expense Detail ($ in 000's)
2010 Expenses            Variance to Budget
Better (Worse)
Outside Services                       $1,104
Corporate                          $1,225
Security Grant Expense                    $706
Salaries and Benefits (Seaport)                $415
Envir Remediation Liability                    $330
CDD                    ($280)
All Other                                $504
Total Expense                      $4,004
28

Seaport Business Groups
NOI Before Depreciation ($'s in Millions)
2010     Variance to Budget
Actual NOI     Better (Worse)
Containers               $44.5          $6.8
Container Support Props       $ .6          ($ .4)
Cruise                   $7.0           $1.9
Grain                   $4.9           $ .6
Docks/Indust Props           $4.1          $ 1.4
Security                  ($1.4)           $ .1
Envir Remediation Liability      ($1.2)           ($1.2)
Total Seaport             $58.5          $9.2
29

Seaport Capital 2010
$'s in Millions
Approved Variance Actual as  Plan of
Actual   Budget     to    % of App.  Finance
Budget   Bud

$11.2   $30.8  $19.6   36%   $30.6


30

2010 Performance Report
Real Estate Division

Real Estate 2010 Key Events
Exceeded 2010 Net Operating Income Budget by $1.5
million:
Revenue $22K favorable to budget
Expenses $1,457K favorable to budget
Vessel liability insurance requirement in effect at
Fishermen's Terminal & all recreational facilities.
Monitoring/tracking procedure in place for 2,000+
customers. 100% compliance at year-end.
Executed new lease with Arctic Storm Management
group at Pier 69.

32

Real Estate 2010 Key Events
Changed Portside Caf from 3rd party management
agreement to leased property.
2010 event activity for BHICC, MEC and SCCT, as
measured by number of attendees/guests, was 26%
over budget and 23% over 2009.
Eastside Rail Corridor
100% complete with first round of billings
Closed sales on portions to City of Redmond and Puget Sound
Energy
Over $1.2 million in projects completed on Deferred
Maintenance Correction Program.
33

Real Estate 2010 Key Events
Electrical consumption at Pier 69 headquarters was the
lowest recorded in the history of the building. 50%
reduction in consumption compared to 2000.
Reached settlement with the City of Des Moines
regarding South Correctional Entity (SCORE) jail facility.


34

Real Estate Business Goals
Provide Compelling Value and Asset Utilization
Occupancy Rates: Commercial property at 88%
occupancy, below target of 90% and above 2010 Q4
local market average of 84%.
FT/Marina Occupancy: Recreational Marinas
average occupancy was at target of 94%. Fishing and
Commercial was at 87%, above target of 78%.


35

Real Estate Division 2010 Operating Results
2009    2010    2010    2010 Bud Var
$ in 000's                   Actual   Actual   Budget     $ %
Operating Revenue          30,132   29,820   29,798     22    0%
Total Revenue              30,132   29,820   29,798     22    0%
Direct Expenses             27,525   29,502   30,949    1,447    5%
Divisional Allocations            (3,200)   (3,485)   (3,802)    (317)    -8%
Corporate Allocations           5,244    5,481    5,808     327    6%
Total Expense              29,569   31,499   32,956    1,457    4%
Net Operating Income (NOI)     563   (1,678)   (3,158)   1,479   47%


36

Real Estate Division 2010 Key Variances
Revenue Detail ($ in 000's)
2010 Business Unit             Variance to Budget
Better (Worse)
Recreational Boating                         $28
Fishing & Commercial                      $260
Commercial Properties                     ($405)
Third Party Management                    $358
RE Development & Planning                   $6
Eastside Rail                              ($41)
Facilities/Maintenance                       ($184)
Total                                   $22
37

Real Estate Division 2010 Key Variances
Expense Detail ($ in 000's)
2010 Expense               Variance to Budget
Better (Worse)
Third Party Management                        $635
Salaries and Benefits (Real Estate)                    $541
Outside Services                              $457
Corporate                                 $437
Maintenance Expense                        $419
Litigated Damages                           ($470)
Utilities                                              ($255)
All Other                                      ($307)
Total Expense                            $1,457
38

Real Estate Business Groups
NOI Before Depreciation ($ in 000's)
2010      Variance to Budget
Actual NOI      Better (Worse)
Recreational Boating           $1,878           $642
Fishing & Commercial          ($2,543)          $571
Commercial & Third Party         $212           $648
RE Development & Planning      ($591)          ($105)
Eastside Rail                 ($637)           ($279)
Envir Remediation Liability          $2              $2
Total Real Estate            ($1,678)          $1,479

39

Real Estate Capital 2010
$ in Millions
Actual   Approved  Variance  Actual as   Plan of
Budget    to   % of App.  Finance
Budget   Bud

$4.0   $11.8   $7.8   34%   $12.1


40

2010 Performance Report
Capital Development Division

Capital Development Division
2010 Business Events
RCF, PC Air, 16C, Escalators, Parking Revenue, eGSE,
Backup Power
AVPMG reorganization
CPO Training, P-Card, Public Users' Forum, Auction
Engineering position refresh, Water Tower upgrade
PCS Generators, Demolitions, Move from Kilroy to AOB
T115, Mooring Dolphins, EMWGS, T86, T91, T5, T18
Revisions to Overhead and Capitalization
42

Capital Development Division
Key Indicators continued
CDD Construction Soft Costs %
100%
90%     19%       19%       21%       20%       20%
80%
70%
60%
50%
Total Soft Costs
40%     81%       81%       79%       80%       80%      Total Construction Costs
30%
20%
10%
0%
Q2 2009 - Q1 2010 Q3 2009 - Q2 2010 Q4 2009 - Q3 2010 Q1 2010 - Q4 2010 Q1 2008 - Q4 2010
(36 month average)


43

Capital Development Division
Key Indicators
Completed Projects           Completed Projects
Q4 2010                Summary
10%                                20%
8%                             15%
6%
7.0%                   10%        6.2%
4%                                                  4.7%
2%                              5%
7.7%
0%            1.3%                                   5.75%
0%
2010 Airport Improvement Projects - Contract 1                    2009               2010
(23 Projects)           (11 Projects)
Mandatory Change       Discretionary Change              Mandatory Change     Discretionary Change
Cost Growth During Construction

44

Capital Development Division
Key Indicators continued
Completed Projects         Completed Projects
Q4 2010               Summary
15%                              100%
10%                               80%
5%
60%
0%
-5%                                  40%
-14.2%                             62.2%             69.4%
-10%                                   20%
-15%                                    0%
2010 Airport Improvement Projects - Contract 1                  2009               2010
(23 Projects)          (11 Projects)
$2,876,365.00
Project                                                            Cumulative
Value                                                        Value       $365,794,281             $65,227,922
Project Schedule Growth
Original    Non-Discretionary  Discretionary Initial Commission   Planned       Actual      Schedule
Project           Construction      Change       Change   Authorized Start of  Substantial    Substantial     Growth
Contract Amount                          Design     Completion of  Completion of
Construction  Construction
4thQuarter 2010
2010 Airport Improvement Projects - Contract 1     $2,876,365.00           1.3%             7.0%            1-Jun-09          31-Dec-10         10-Oct-10          -14%

45

2010 Cost and Schedule Growth
Original   Non-Discretionary Discretionary     Initial       Planned      Actual      Schedule
Construction     Change      Change    Commission   Substantial   Substantial    Growth
Project           Contract Amount                        Authorized Start Completion of Completion of
of Design    Construction  Construction
1st Quarter 2010
Trash Handling and Recycling          $269,101.00      11.3%        -0.8%       22-Apr-08     30-May-09    26-Feb-10      67%
Duwamish Trail Link                $263,865.85       -3.9%        -5.5%       25-Jul-00     31-Dec-01    15-May-09      514%
T-91 Cruise Terminal Bird Control        $189,000.00       0.0%         0.0%       14-Apr-09     12-Dec-09    26-Dec-09       6%
2nd Quarter 2010
North/South Satellite Food Court
$918,000.00      20.4%       40.0%       1-Jul-07     30-Jun-08    15-Mar-10     171%
Flooring*
Main Terminal Fire Piping Upgrades*      $237,233.00       -4.2%        0.0%       1-Sep-08      31-Mar-10    22-Apr-10       4%
2nd Floor HVAC Project             $790,000.00      14.5%        0.0%       1-Apr-08     28-Feb-10     9-Apr-10       6%
AV Warehouse                $4,660,754.00     9.3%       7.2%      1-Apr-08     28-Feb-10   23-Mar-10      3%
4th Floor Walkway Project             $571,900.00       18.2%        0.0%       1-Feb-06      31-Jul-09     9-Feb-10       15%
3rd Quarter 2010
Pedestrian Bridge                 $2,851,000.00      1.6%         3.8%       26-May-06     17-Dec-09     4-Mar-10       6%
2009 16L/34R Reconstruction         $51,600,702.90     -5.2%        0.3%       26-Feb-08     31-Dec-09    1-Oct-09      -14%
4th Quarter 2010
2010 Airfield Improvement Projects -
$2,876,365.00      1.3%        7.0%       1-Jun-09     31-Dec-10    10-Oct-10      -14%
Contract 1
2010 Total/Averages             $65,227,921.75     5.75%       4.73%                                      69.45%

* % of Non-Discretionary and Discretionary Change has been corrected from the values reported previously.

46

Capital Development Division
Key Indicators continued
Small Business Participation
Major Public Works      Small Works      Goods & Services
14%       Small                    Small          14%      Small
Business        17.0%            Business                      Business
$10,869                         $3,768                       $7,553
Large                          Large                       Large
83.0%
86%          Business                   Business      86%         Business
$64,425                         $770                        $48,064





47

Capital Development Division
Key Indicators continued
Customer Score Card     Environmental
Total Projects       19      Total Applicable Projects: 19
Scorecards Received  15     Total Environmental
Total Points       370      incorporated or pending:  16
Total Score     321.16     Average:        84.2%
Average Score (%) 86.8%


48

Capital Development Division
Key Indicators continued
Safety      2010      2009
Total Points     2,595.0      1910.0
Total Score     2,395.8      1724.5
Average Score (%) 92.5%      90.2%
Contract TRIR     5.4        1.8
Contract LTIR       0        0.4

49

Capital Development Division
Key Indicators continued
2010 Procurement Schedule:
Total Time RFS to Execution (Avg # Days)
Good & Services           81 days
Major Public Works          62 days
Small Works             56 days
Service Agreements         256 days

50

Capital Development Division
Gross Operating Results
2009 YTD    2010 YTD     2010 Bud Var.
$ in 000's                                  Notes      Actual     Actual   Budget     $ %
Total Revenues                                -      36   - 36      0.0%
EXPENSES BEFORE CHARGES TO CAPITAL PROJECTS
Capital Development Administration                          340     380     387      7      1.8%
Engineering                                        9,984    9,963       13,574    3,611        26.6%
Port Construction Services                                7,354    7,886        8,552         666     7.8%
Central Procurement Office                              3,224    3,287        4,171         884    21.2%
Aviation Project Management                            5,554    5,134        6,150       1,016       16.5%
Seaport Project Management                            2,735    2,693        2,672        (21)      -0.8%
Total Before Charges to Capital Projects                29,192   29,343   35,505   6,163   17.4%



51

Capital Development Division
Key Variances to Net Budget
2010 Expenses        Variance to Budget   YTD Var. F/(UNF)
$ in 000's              Better (Worse)            %
Salaries and Benefits                        5,819       20.2%
Outside Services                        (1,199)       (53.4)%
Travel and Other                           123       34.9%
Telecommunications                        82       42.0%
Property Rentals                           199       41.8%
General Expenses                       1,322       73.0%
All Other                                 (184)       (11.4) %
Charges to Capital Projects                   (6,600)       24.8%
Total                                  (437)       (4.9)%

52

2010 Performance Report
Corporate

Corporate 2010 Key Events
Completed and unfolded the Port's Centennial Website with map,
timeline and stories of the Port.
Implemented Workplace Responsibility Program.
Finalized the medical and dental third party administration contracts for
the Port's self funded benefit program.
Selected a vendor for redesigning the Port's internet website.
Received "Certificate of Achievement for Excellence in Financial
Reporting" from GFOA.
Filed the 2011 statutory budget with King County.
Completed bonds refunding for $29.7 million present value savings.

54

Corporate 2010 Key Metrics
Wellness Reward participation rate was 98%.
530 employees participated in 19 onsite Spirit and Wellness classes.
Port website received 9.8 million visits.
97% completed Health Assessment.
Responded to 281 public disclosure requests.
95% of ICT projects completed on budget.
Negotiated 4 labor contracts, 9 MOU's and 1 PLA.
Presented 16 internal audit reports to the Audit Committee.
Handled 28 litigation and claims.
1,162 small businesses registered on the roster.
Received 58,741 calls for Police services.

55

2010 Corporate Operating Results
2009    2010    2010    2010 Bud Var.
$ in 000's                                Actual     Actual   Budget     $ %
Total Revenues                  $ 374    $ 610    $ 18   $ 592     3289.4%
Executive                          1,551        1,356    1,536     181    11.8%
Commission                       750    831    868     37    4.3%
Legal                           2,702       3,475    3,613    137    3.8%
Risk Services                         2,526        2,618    2,859     241     8.4%
Health & Safety Services                   913    1,001    1,095      94     8.6%
External Affairs                         4,918        5,553    6,002     449     7.5%
Economic & Trade Development           1,441         -  - - 0.0%
Human Resources & Development          3,913       4,107   4,988    881   17.7%
Labor Relations                        542     675     784     109    14.0%
Information & Communications Technology    17,505   18,765       19,033     268    1.4%
Finance & Budget                    1,635       1,455    1,529     74    4.8%
Accounting & Financial Reporting Services      5,836        5,939    6,716     777    11.6%
Internal Audit                           978      990    1,109     119    10.8%
Office of Social Responsibility               1,431        1,280    1,458     178    12.2%
Police                             18,409   19,273        20,314    1,040        5.1%
Contingency                        420     21     55       33    60.8%
Total Expenses                   $ 65,481      $ 67,391      $ 71,958      $ 4,567        6.3%
56

Corporate Major Expense Variances
Actual/Budget
Operating Expenses ($ in 000's)         Var. $  Var. %
Salaries & Benefits                   921    2.7%
Wages & Benefits                 973   5.4%
Payroll to Capital Projects              1,072       31.7%
Equipment Expense               (378)  -30.5%
Outside Services                  1,864       15.7%
Travel & Other Employee Exps          182   8.4%
General Expenses                 400  14.5%
Other                         231  11.2%
Charges to Capital Projects             (698)  -19.3%
Total                            4,567        6.3%

57

2010 Financial Performance

Port of Seattle

March 1, 2011