9a. Presentation - Q1 2021 Financial Performance Commission
Item No. 9a_supp Meeting Date: May 25, 2021 Port of Seattle Q1 2021 Financial Performance Report Commission Meeting Key Highlights The pandemic continues to cause major disruption across Port business lines Prudent budgeting and careful cost management has positioned the Port well for 2021 Substantial federal relief funds have improved the financial outlook for the Aviation division Significant uncertainty remains regarding the 2021 Cruise season; however, revenues were budgeted very conservatively Currently projecting to be closely on track with budget on a full-year basis, but staff continues to closely monitor very dynamic business conditions Continuing to support investments aimed at regional economic recovery 2 Aviation Division 2021 Q1 Financial Performance Report Passenger Growth Rebounding by Month for 2021 vs 2019 Passengers (millions) 2019 Actual 51.7 2020 Actual 20.1 2021 Budget 36.4 2021 Forecast 36.9 29% compared Forecast Improving vs. 2019: to 2019 2021 Budget: -30% December FCST: -34% Current FCST: -29% 84% growth vs. 2020 4 Enplaned Passengers Comparison Recovering within 10% of 2019 by September 29% compared to 2019 5 Key to Financial Results: Increased Federal Relief Business Highlights Forecast Budget Figures in $000s YE 2021 YE 2021 Variance Revenues Higher than expected passenger levels, Aeronautical 314,476 386,668 (72,192) new forecast is 29% lower than 2019 Non-Aeronautical 171,312 189,548 (18,236) Increased federal relief improves bottom Total Revenues 485,788 576,215 (90,428) line, helps customers: O&M expense 342,282 339,908 (2,374) NOI 143,506 236,308 (92,802) $37 million for CRRSAA Federal Relief 161,601 37,899 123,702 $154 million for ARPA Federal Relief (Concessions) 26,755 $27 million for tenant concessions NOI (After Federal Relief) 331,862 274,207 57,655 relief (CRRSAA and ARPA) Key Measures Non-Aero NOI (in $000s) 90,892 82,742 8,150 Current plan: reserve $75 million for CPE ($) 15.26 19.62 4.35 2022 Debt Service Coverage 2.35 1.36 0.99 Planning for mid-year airline rate Other Information adjustment effective July 1 ADF Balance 340.5M 340.5M - Capital Spending (in $000s) 468,094 491,202 23,108 6 Operating Expenses Summary (YTD) $3.2M or 3.9% Favorable Major Drivers: Underspend in Outside Services of $2M across multiple business areas - Commercial Management (208k), F&I and Capital Program (716k), PMG (629k), and Maintenance (933k). Utilities over-run YTD is due to a large ILA Surface Water Utility payment (637k) associated with the Interlocal Agreement with City of SeaTac paid in March, but the budget was spread evenly through the year instead. 7 Operating Expenses Summary (Forecast) $2.4M or <1% Unfavorable Major Drivers: Increase in Outside Services of $3.8M driven partially by the Snow Removal ($2.2M) in Airfield/Maintenance and emergency watermain repair ($570K) in Q1, and projection for increased expenses in PMG Consultant Support for ADR and Tenants ($634K). Increase above is projected to be partially offset by savings from Other Divisions of $1.4M 8 Aeronautical Revenue Budget $387M 19% Forecast $314M Applied $119.7M of Federal Relief grants to offset revenue requirements (aka costs to recover from Airlines) 9 Aero Rate Base Revenue Requirements Forecasting Relief of $119.7M (CARES, CRRSAA & ARPA) Forecasted Relief $101.2M to lower Debt Service Forecasted Relief $18.4M to lower O&M * Airfield Commercial is excluded from Aero Rate Base 10 Non-Aero Revenue Concessions Grant Impact Forecasted Concessionaire Relief Grants of $26.8M CRRSAA Relief = $ 5.3M ARPA Relief = $21.5M Federal concessionaire relief grants will be recognized as Non-operating Revenue (means lower operating revenue, but cash neutral) 11 Non-Aeronautical Revenues (before Relief Grants) Most Non-Aero activity closely aligned with PAX volume recovery Forecast $198M 4.5% Budget $189.5M 2019 2020 2021 2021 % change Actuals Actuals Forecast Budget vs BUDGET Enplanements 25,874 10,044 18,451 18,216 1.3% O&D% 70.2% 64.0% 70.0% 68.0% O&D Enplanements 18,163 6,428 12,916 12,387 4.3% 12 Non-Aero Tenant Rent Deferred Status Status as of 4/22/2021: Total Non-Aero Rent Deferred = $18.9M Total Outstanding = $5.6M or 30% 13 Strategic use of Federal Relief Grants to Achieve Debt Service Coverage Target in $000's 2020 Actual 2021 Budget 2021 Forecast Variance Reflects preliminary grant use plan Revenues Majority of federal relief used to Aero 297,909 386,668 314,476 (72,192) Non-aero 116,473 189,548 171,312 (18,236) pay debt service Total Revenues 414,382 576,216 485,788 (90,428) Costs paid by grants excluded from O&M 329,680 339,908 342,282 (2,374) airline rate base, thus reducing NOI 84,702 236,308 143,506 (92,802) Federal Relief Grants Non-op 43,257 3,500 18,492 14,992 Aero revenues Concession Rent Relief Grants - - 26,755 26,755 Concessions rent relief grant is cash Other net non-operating 5,604 2,542 2,543 1 Available for debt service 133,562 242,350 191,296 (51,054) flow neutral (lower operating Debt Service revenues, higher grant revenues). Gross debt service (net of cap i) 249,555 279,880 276,807 3,073 CFC offset (13,601) (19,159) (13,604) (5,556) Debt service does not reflect 2021 PFC offset (36,390) (47,549) (38,614) (8,935) bond issue and refunding. Federal Relief Grants DS offset (103,891) (34,399) (143,342) 108,943 Net Debt Service 95,673 178,772 81,247 (97,525) Debt Service Coverage 1.40 1.36 2.35 1.00 14 Federal COVID Relief: CARES, CRRSAA & ARPA $250 CARES = $192 ARPA = $154 Total = $410 Concessions Grants $200 $188.2 American Rescue Plan Act $26.8 (ARPPA) $147.1 ($ in millions) $150 Coronavirus Response & Relief $79.0 Supplemental Appropriation Act (CRRSAA) $100 $75.0 TBD Coronavirus Aid, Relief & $147.1 Economic Security Act (CARES) $37.4 $50 Expected lost revenues for 2020- $45.0 22 ~ $650 million. Grants do not $0 fully replace lost revenues. 2020 2021 2022 15 2021 Capital Spending: 95% of Budget $600 $491.2 $500 $468.0 NSAT, $96.4 NSAT, $90.8 $400 ($ in millions) IAF, $86.5 IAF, $82.4 $300 Checked Bag, $86.1 Checked Bag, $86.3 AFLD Pvmnt 2021- $200 AFLD Pvmnt 2021- 2025, $29.6 2025, $25.0 $100 Others, $192.6 Others, $183.5 $0 2021 Budget 2021 Q1 Update 16 2021 Airport Development Fund Balance $400 Target: $340 $340 Will use grants to $350 achieve target of 12 $300 $2 81 PFC & CFC months O&M Offsets $250 balance $ in millions $52M Grant use plan $200 ARPA impacts ADF Deposits $150 $79M balance: Concessions Aero vs. Non- $100 CARES Relief & ARPA ADF Ending Deposit Deposit $27M aero cost $50 $45M Balance centers $- Target 2021 vs. 2022 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual Forecast 17 Seaport Q1 2021 Financial Performance Report Seaport Performance Summary Fav (UnFav) Incr (Decr) Fav (UnFav) 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 2021 2021 Fcst vs. Budget Variance Variance $ in 000's Actual Actual B udg e t $ % $ % Forecast B udg e t $ % Revenues Maritime 9,340 9,539 10,370 (831) -8% 199 2% 45,355 45,280 75 0% Economic Development Division 3,277 2,002 2,436 (434) -18% (1,275) -39% 12,648 13,348 (700) -5% Joint Venture 10,599 10,988 10,206 781 8% 388 4% 40,824 40,824 0 0% Total Revenue 23,217 22,529 23,012 (484) -2% (688) -3% 98,827 99,452 (625) -1% Expenses Maritime 11,661 10,937 13,080 2,143 16% (724) -6% 49,716 50,243 527 1% Economic Development Division 5,236 4,049 4,277 228 5% (1,187) -23% 20,966 21,413 447 2% Joint Venture 692 693 836 143 17% 1 0% 1,377 1,377 0 0% Total Expense 17,589 15,679 18,192 2,514 14% (1,910) -11% 72,059 73,033 974 1% NOI Before Stormwater Utility 5,628 6,850 4,820 2,030 42% 1,222 22% 26,768 26,419 349 1% Stormwater Utility Revenues 1,643 1,545 1,616 (71) -4% (98) -6% 6,464 6,464 0 0% Stormwater Utility Expenses 1,064 1,123 1,457 334 23% 58 5% 5,211 5,211 0 0% Stormwater Utility NOI 578 422 159 263 165% (156) -27% 1,253 1,253 0 0% Total Non-Aviation Business NOI 6,207 7,272 4,979 2,293 46% 1,066 17% 28,021 27,672 349 1% YTD Budget Variance Forecast Budget Variance Timing of Cruise NCL Lease Payment ($1M), lower Lower Conference & Parking Revenue, Higher Grain Conference Revenue. Revenue. Lower Maintenance and Conference expenses. Lower Conference and External Affairs expenses. So Far Tracking to Budge t 19 Maritime Division Q1 2021 Financial Performance Report Maritime Division Financial Summary Business Highlights Figure in $000s Forecast Budget Variance Fishing, Commercial and Recreational Marinas Revenues Fishing, Commercial, & remain stable. Potential upside with Recreational Marinas 21,559 21,559 0 Recreational Boating demand. Cruise 8,558 8,558 0 Timing & guidelines for Cruise season Maritime Portfolio Mgmt. 10,034 10,259 (225) Grain / Other 5,203 4,903 300 commencement to impact ~$4.5M of variable Total 45,355 45,280 75 revenue. O&M Expense Grain Volumes up 52% Y/Y. Direct 20,904 20,904 0 Support Services 14,828 15,028 200 Completed all in-water work construction Central Services and Other 13,984 14,311 327 activities for T117 Restoration and Public Total 49,716 50,243 527 Access. NOI (4,361) (4,963) 602 Capital Spending 21,279 26,195 4,916 Fav orable to budget pending Cruise Seas on resumption 21 Maritime Q1 Financials Performing Better Than Expected Maritime YTD Net Operating Income is $1.3M favorable to budget and $923K above 2020 Revenue is $831K below budget. Would be ~$200K favorable if not for timing of NCL payment. Grain Volumes favorable to budget. Increased grain revenue (+64%) over 2020 driving Y/Y growth, offset by shorter Ballard locks closure. Expenses $2.1M (16%) favorable to budget driven by tenant improvements timing, utilities, and maintenance. Expenses down $724K Y/Y from lower utilities and maintenance. YTD Q1 Capital Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 spending was Variance $2.1M with $ in 000's Actual Actual Actual B udg e t $ % $ % Total Revenues 9,442 9,340 9,539 10,370 (831)0 -8% 199 2% forecasted spending Total Operating Expenses 10,286 11,661 10,937 13,080 2,143 16% (724) -6% at $21.3M (81% of Net Operating Income (844) (2,321) (1,398) (2,710) 1,312 48% 923 40% budget). Depreciation 4,509 4,395 4,464 4,043 (421) -10% 69 2% Net Income (5,353) (6,715) (5,862) (6,753) 891 13% 853 13% Q1 2021 performing bett er than expected 22 Stormwater Utility Tracking to Budget Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Revised Change from 2020 YTD Approve d Budget Variance $ in 000's Actual Actual Actual Budge t $ % $ % Re ve nue NWSA 304 373 431 426 5 1% 58 16% Tenants Revenue 800 825 751 827 (76) -9% (74) -9% Port Non-tenants Revenue 335 445 363 363 0 0% (82) -18% Total Revenues 1,440 1,643 1,545 1,616 (71) -4% (98) -6% Expe ns e s SWU Direct 195 259 291 335 44 13% 32 12% Maintenance Expenses 619 596 638 892 254 28% 41 7% Seaport Project Management 4 193 1 4 3 74% (192) -99% Environmental & Sustainability 73 12 13 14 1 8% 1 6% Other Central Services 194 4 180 212 32 15% 177 4998% Total Expenses 1,084 1,064 1,123 1,457 334 23% 58 5% NOI Before Depreciation 355 578 422 159 263 165% (156) -27% Depreciation 294 309 317 297 (20) -7% 8 3% NOI After Depreciation 62 270 105 (138) 243 -176% (164) -61% Revenue under due to changes in tenant footprints. Expenses are under due to changes in maintenance allocation and COVID-19 impacts. Moving improvement s forward 23 Northwest Seaport Alliance Summary NWSA TEU Data NWSA Operating Income Fav (UnFav) Incr (Decr) Before GASB 87 Adjustment 2020 YTD 2021 Year-to-Date Budget Variance Change from 2020 There was a total of 43 void sailings in Q1 2021. Robust volumes led to congestion in North $ in 000's Actual Actual B udg e t $ % $ % American ports as shippers replenished inventories depleted by strong consumer demand. Operating Revenue 45,660 43,848 46,047 (2,199) -5% (1,812) -4% Operating Expense 20,249 17,809 22,428 4,619 21% (2,440) -12% Due to COVID-19 restrictions, consumers continue to spend money on goods instead of Operating Income 25,411 26,039 23,619 2,420 10% 628 2% services. Carriers voided port calls to improve schedule reliability and returned to Asia for more cargo, which led to a container shortage for exports. Shippers continue to diversify Cargo TEUs 788,882 881,794 92,912 12% manufacturing and sourcing activities to SE Asia and other markets. NWSA total Cargo Volume (Metric Tons) 6,609,007 6,971,027 362,020 5% international TEUs are up 13.2% for Q1 2021 and total TEUs are up 11.8%. Note: GASB 87 Accounting impact and Non-Operating Totals available on NWSA Site Exports (YTD Feb 2021 vs. YTD Feb 2020): Japan, China, South Korea, Taiwan, and Vietnam were our top trading Revenue Q1 YTD $2.2M below budget and lower than partners. 2020 due to restructuring of the APL agreement. Absent Japan, China, South Korea, Taiwan, and Vietnam declined 23.5%, 7.9%, the restructuring revenue would be higher than 2020 36.7%, 0.1%, and 15.5%, respectively. Total exports are down 20.5%. due to higher volumes. Imports (YTD Feb 2021 vs. YTD Feb 2020): Operating Expenses Q1 YTD $4.6M favorable to budget. China, Vietnam, Japan, South Korea, and Taiwan were our top trading Timing of rail incentives, project spending, and other partners. outside services. China, Vietnam and South Korea grew 35.7%, 25.1% and 28.8%, Lower administrative costs from revision of service respectively, while Japan and Taiwan declined 26.4% and 3.2% agreements. respectively. *Exports and imports data source PIERS, full international YTD Q1 volumes exc eeding 2020 24 Joint Venture Q1 Financials Fav (UnFav) Incr (Decr) Total Year Home Port Activities 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Revised Change from 2020 Budge t Budget Variance $ in 000's Actual Actual Actual Budge t $ % $ % Revenues: Re ve nue Joint Venture Revenue 12,986 10,730 11,343 10,568 775 7% 613 6% 42,273 Joint Venture favorable to budget Contra Joint Venture Revenue - (478) (488) (488) 0 0% (10) 2% (1,952) due to lower expenses at NWSA . Subtotal Distributable Revenue from NWSA 12,986 10,252 10,855 10,080 775 8% 40,321 Other Service Revenue Tenant Reimbursements - 165 66 126 (60) -48% (99) -60% 503 Other Service Revenue below budget Port Revenue from NWSA Facilities - 183 67 - 67 NA (116) -64% - due to timing of tenant reimbursable Maintenance work. Total Revenues 12,986 10,599 10,988 10,206 781 8% 388 4% 40,824 Expe ns e s JV Direct (7) 46 127 45 (82) -182% 80 173% 180 Port Revenue from NWSA Facilities Maintenance Expenses 77 385 143 143 0 0% (242) -63% 587 temporary moorage on the Seaport Project Management 12 1 2 3 0 9% 2 313% 10 Environmental & Sustainability 12 2 50 83 33 40% 47 2192% 333 northwest face of T46. Other Central Services 31 19 60 63 3 4% 41 216% 267 - Expenses Total Expenses 124 453 382 337 (45) -13% (72) -16% 1,377 NOI Before Depreciation 12,862 10,146 10,606 9,870 736 7% 460 5% 39,447 JV Direct Unplanned small works Legacy Depreciation for NWSA Facilities 4,119 3,779 3,771 3,716 (55) -1% (8) 0% 15,162 at Terminal 30. NOI After Depreciation 8,744 6,367 6,835 6,154 681 -11% 468 7% (24,284) 25 Economic Development Division Q1 2021 Financial Performance Report Economic Development Division Financial Summary Business Highlights Additional BHICC cancellations resulting in Figure in $000s Fore cas t Budge t Variance forecast reductions of $600K in revenue and Revenues 12,648 13,348 (700) $500K in expense. O&M Expense Lease revenue on target, parking revenue EDD & Maritime 9,891 10,591 700 slightly below. Maintenance 3,027 2,537 (490) Diversity in Contracting 142 142 0 Rent Deferrals: Tourism 2,481 2,481 0 o 51 Applications EDD Grants 1,060 1,060 0 o 37 Executed agreements Central Services and Other 4,366 4,603 237 o 19 Paid Off as of 3/31/21 Total 20,966 21,413 447 o 18 Currently in program NOI (8,318) (8,065) (253) Port hit 2020 WMBE Utilization (non - Capital Spending 4,604 5,647 1,043 construction) goal: 16.6% actual vs. 14.4% goal. Conference and Event Center Volum es Driving the P&L 27 Economic Development Financial Highlights 2021 Q1 YTD Net Operating Income $207K unfavorable to budget and $88K lower than 2020 Revenue unfavorable to budget by $407K and $1.2M lower than 2020 driven primarily by COVID-19 cancellations at the Conference and Event Centers. Expenses favorable to budget by $228K driven by less conferences, timing of EDD Grant & Tourism Programs, offset by impact of Maintenance allocation change. Expenses are lower by $1.2M Y/Y due to variable cost associated with lower Conference & Event Center volumes and reduced Central Service allocation expenses, offset by higher Maintenance costs. Fav (UnFav) Incr (Decr) EDD spent 6% of Capital 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 Variance budget through Q1. The $ in 000's Actual Actual Actual B udg e t $ % $ % 2021 forecasted spending Total Revenues 4,674 3,277 2,002 2,436 (434) -18% (1,275) -39% is $4.5M (82% of budget). Total Operating Expenses 5,862 5,236 4,049 4,277 228 5% (1,187) -23% Net Operating Income (1,187) (1,959) (2,047) (1,840) (207) -11% (88) -4% Depreciation 918 909 958 758 (200) -26% 49 5% Net Income (2,105) (2,867) (3,005) (2,598) (407) -16% (137) -5% Revenue unfavorable, Expenses fav orable to budget 28 Central Services Q1 2021 Financial Performance Report Central Services Financial Summary Business Highlights Awarded 14 South King County Fund 2021 2021 Fcst vs Bud Figures in $000s Forecast Budget Variance Environmental Grants to the six Highline cities. Revenues 1,129 181 948 Obtained the Commission approval for Job and Economic Resource Center as part of the Core Central Support Services 83,982 85,678 1,696 Duwamish Valley Community Equity Program. Police 27,968 28,317 349 Engineering/PCS 9,680 9,199 (481) The Port, City of Seattle, and Sound Transit O&M Expenses 121,629 123,194 1,565 agreed to jointly fund $1.7M to support construction worker training, placement and Capital Spending 8,714 9,658 944 other services. 30 Central Services Financial Highlights Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 Variance $ in 000's Actual Actual Actual Budge t $ % $ % Total Operating Revenues 182 907 956 45 910 2013.0% 49 5.4% Core Central Support Services 17,445 19,359 18,743 20,382 1,639 8.0% (616) -3.2% P olic e 6,506 7,908 6,748 7,547 799 10.6% (1,160) -14.7% Engineering/PCS 2,083 2,158 1,965 2,175 210 9.7% (193) -9.0% Total Operating Expenses 26,034 29,425 27,455 30,104 2,649 8.8% (1,970) -6.7% 2021 YTD Total Operating Expenses are $2.6M favorable to the budget due to: Delay in contract spending and delays in hiring vacant positions, partially offset by lower charges to Capital Projects. 2021 YTD Total Operating expenses are $2.0M lower compared to 2020 due to: Lower payroll costs due to delays in hiring. Decrease in Outside Services costs YTD due to project delays in 2021. Lower Equipment spending due to slow start to PC Refresh. 31 Port Wide Q1 2021 Financial Performance Report Port Wide Financial Summary Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 Variance $ in 000's Actual Actual Actual Budge t $ % $ % Aeronautical Revenues 83,674 86,284 61,313 80,938 (19,625) -24.2% (24,971) -28.9% Airport Non-Aero Revenues 55,996 49,956 26,930 35,085 (8,154) -23.2% (23,025) -46.1% Non-Airport Revenues 28,382 25,313 24,658 24,311 348 1.4% (655) -2.6% Total Operating Revenues 168,052 161,553 112,901 140,333 (27,432) -19.5% (48,652) -30.1% Total Operating Expenses 96,729 103,591 94,866 101,431 6,566 6.5% (8,726) -8.4% NOI before Depreciation 71,323 57,962 18,036 38,901 (20,866) -53.6% (39,926) -68.9% Depreciation 41,038 43,728 44,829 40,209 (4,621) -11.5% 1,101 2.5% NOI after Depreciation 30,286 14,233 (26,794) (1,307) (25,486) 1949.7% (41,027) -288.2% o Total Operating Revenues: $27.4M unfavorable to the budget and $48.7M lower than 2020. o Total Operating Expenses: $6.6M favorable to the budget and $8.7M lower than 2020. o NOI before Depreciation: $20.9M unfavorable to the budget and $39.9M lower than 2020. 33 Port Wide Financial Summary Fav (UnFav) Incr (Decr) 2019 2020 2021 2021 Fcst vs. Budget Change from 2020 Variance $ in 000's Actual Actual Fore cas t Budge t $ % $ % Aeronautical Revenues 357,598 297,909 314,476 386,668 (72,192) -18.7% 16,567 5.6% Airport Non-Aero Revenues 269,037 116,473 171,312 189,548 (18,236) -9.6% 54,839 47.1% Non-Airport Revenues 137,538 96,446 104,968 104,645 323 0.3% 8,523 8.8% Total Operating Revenues 764,174 510,828 590,756 680,861 (90,104) -13.2% 79,928 15.6% Total Operating Expenses 441,700 408,681 425,177 423,412 (1,765) -0.4% 16,496 4.0% NOI before Depreciation 322,474 102,147 165,579 257,448 (91,869) -35.7% 63,432 62.1% Depreciation 174,903 180,086 176,509 176,509 - 0.0% (3,577) -2.0% NOI after Depreciation 147,571 (77,939) (10,930) 80,939 (91,869) -113.5% 67,009 -86.0% 1) 2021 Airport Non-Aero Revenues Forecast does not include the projected Federal Relief for Concessions of $26.8M. o Operating Revenues: $90.1M unfavorable to the budget and $79.9M higher than 2020. It's important to note that the federal relief helps offset $119M of the Aeronautical revenues for 2021. o Operating Expenses: $1.8M unfavorable to the budget and $16.5M higher than 2020 (It would have been $700K lower than 2020 after adjusting a $17.2M state pension credit in 2020). o NOI before Depreciation: $91.9M unfavorable to the budget and $67.0M higher than 2020. 34 Port Wide Capital Spending Total capital spending was $98.8M in Q1. For the full year, total capital spending is expected to be $506.9M, 94.5% of the budget. 35 Aviation Division Appendix Q1 2021 Financial Performance Report Airport Activity Passenger Activity % YTD Change Change 2021 Market YTD 2019 YTD 2020 YTD 2021 from 2020 Airline 2020 v. 2021 Share Total Passengers (000's) Domestic 9,658 8,205 4,662 -43.2% Alaska 43.5% 66.1% International 1,207 1,004 205 -79.5% Delta -10.3% 18.3% Total 10,865 9,209 4,868 -47.1% American 32.7% 4.7% Southwest 10.9% 3.8% Operations 100,740 99,983 75,878 -24.1% United -11.4% 3.3% Landed Weight (In Millions of lbs.) Cargo 565 606 709 17.0% 2021 YTD Passenger volume: All other 6,300 6,283 4,557 -27.5% YTD passenger volume is Total 6,865 6,889 5,266 -23.6% 55.3% lower than Q1 2019 Cargo - Metric Tons Domestic freight 69,054 75,866 84,502 11.4% pre-pandemic levels, and International & Mail freight 29,423 25,795 25,223 -2.2% 47.1% lower than Q1 2020. Total 98,477 101,661 109,725 7.9% Enplanement recovering is building, and volumes are expected to be 29% lower than 2019 for full year 2020. 37 Aviation Financial Summary Fav(UnFav) Fcst. vs. Budget Incr/(Decr) Financial Summary 2019 2020 2021 2021 Variance Change from 2020 ($ in 000's) Actual Actual Forecast Budget $ % $ % Operating Revenue Aeronautical Revenues 357,598 297,909 314,476 386,668 (72,192) -18.7% 16,567 5.6% Non-Aeronautical Revenues 269,037 116,473 171,312 189,548 (18,236) -9.6% 54,839 47.1% Total Operating Revenues 626,636 414,382 485,788 576,215 (90,428) -15.7% 71,406 17.2% Total Operating Expenses 355,245 329,680 342,282 339,908 (2,374) -0.7% 12,602 3.8% Net Operating Income 271,390 84,702 143,506 236,308 (92,802) -39.3% 58,804 69.4% Federal Relief 147,148 161,601 37,899 123,702 326.4% 14,453 9.8% Federal Relief (Concessions) 26,755 26,755 26,755 NOI (After Federal Relief) 271,390 231,850 331,862 274,207 57,655 21.0% 100,012 43.1% CPE 12.86 26.50 15.26 19.62 4.35 0.22 (11.24) -42.4% Non-Aero NOI ($ in 000s) 6,671 4,426 90,892 82,742 8,150 9.9% 86,466 1953.6% Enplaned passengers (in 000s) 25,874 10,044 18,451 18,216 236 1.3% 8,408 83.7% - Capital Expenditures (in 000s) 573,598 573,598 468,094 491,202 23,108 4.7% (105,504) -18.4% 38 Key Performance Measures Fav(UnFav) 2019 2020 2021 2021 Fcst. vs. Budget Incr/(Decr) Variance Change from 2020 Approved Actual Actual Forecast Budget $ % $ % Key Performance Metrics Cost per Enplanement (CPE) 12.86 26.50 15.26 19.62 4.35 22.2% (11.24) -42.4% Non-Aeronautical NOI (in 000's) 143,917 6,671 90,892 82,742 8,150 9.9% 84,221 1262.6% Other Performance Metrics O&M Cost per Enplanement 6.86 16.41 9.28 9.33 0.05 0.6% (7.14) -43.5% Non-Aero Revenue per Enplanement 5.20 5.80 5.37 5.20 0.16 3.2% (0.43) -7.4% Debt per Enplanement (in $) 66 163 84 85 1 1.3% (79) -48.4% Debt Service Coverage 1.68 1.40 2.35 1.36 0.99 73.4% 0.95 67.9% Days cash on hand (10 months = 304 days) 314 327 363 369 -6 -1.6% 36 11.2% Aeronautical Revenue Sharing ($ in 000's) (17,146) 1 - - - 0.0% (1) 100.0% Activity (in 000's) Enplanements 25,874 10,044 18,451 18,216 236 1.3% 8,408 83.7% Total Passengers 51,748 20,087 36,903 36,432 471 1.3% 16,815 83.7% 39 Aviation Expense YTD Summary Fav(UnFav) Actual vs. Budget Incr/(Decr) Total Airport Expense Summary 2019 YTD 2020 YTD 2021 YTD 2021 YTD Variance Change from 2020 ($ in 000's) Actual Actual Actual Budget $ % $ % Operating Expenses Payroll 35,372 39,071 37,305 37,513 208 0.6% (1,766) -4.5% Outside Services 12,737 14,011 13,477 15,498 2,022 13.0% (534) -3.8% Utilities 4,656 4,884 5,060 4,312 (748) -17.3% 175 3.6% Other Expenses 5,406 3,061 24 74 51 68.2% (3,037) -99.2% Total Airport Direct Charges 58,171 61,027 55,865 57,397 1,532 2.7% (5,162) -8.5% Environmental Remediation Liability - - - - - - Capital to Expense 72 - 75 - (75) 75 Total Exceptions 72 - 75 - (75) 75 Total Airport Expenses 58,243 61,027 55,940 57,397 1,457 2.5% (5,087) -8.3% Corporate 15,030 16,791 15,891 16,625 734 4.4% (900) -5.4% Police 5,182 6,509 5,537 6,389 852 13.3% (972) -14.9% Maritime/Economic Development/Other 761 838 720 865 146 16.8% (119) -14.2% Total Charges from Other Divisions 20,973 24,139 22,148 23,880 1,731 7.3% (1,991) -8.2% Total Operating Expenses 79,216 85,166 78,088 81,277 3,189 3.9% (7,078) -8.3% 40 Aviation Expense YE Summary Fav(UnFav) Fcst. vs. Budget Incr/(Decr) Total Airport Expense Summary 2019 2020 2021 2021 Variance Change from 2020 ($ in 000's) Actual Actual Forecast Budget $ % $ % Operating Expenses Payroll 144,051 152,895 153,293 153,293 - 0.0% 398 0.3% Outside Services 68,162 63,922 69,015 65,174 (3,841) -5.9% 5,093 8.0% Utilities 18,180 15,695 20,244 20,244 - 0.0% 4,549 29.0% Other Expenses 14,721 3,341 814 1,359 545 40.1% (2,527) -75.6% Total Airport Direct Charges 245,114 235,854 243,366 240,071 (3,295) -1.4% 7,512 3.2% Environmental Remediation Liability 15,900 (2,361) 2,162 2,001 (161) -8.0% 4,523 -191.6% Capital to Expense 2,089 2,588 283 - (283) (2,305) -89.1% Total Exceptions 17,989 227 2,445 2,001 (444) -22.2% 2,218 978.2% Total Airport Expenses 263,104 236,081 245,811 242,072 (3,739) -1.5% 9,730 4.1% Corporate 65,729 68,316 68,402 69,767 1,365 2.0% 87 0.1% Police 22,290 22,150 23,964 23,964 - 0.0% 1,814 8.2% Maritime/Economic Development/Other 4,123 3,134 4,105 4,105 - 0.0% 971 31.0% Total Charges from Other Divisions 92,141 93,599 96,471 97,836 1,365 1.4% 2,872 3.1% - Total Operating Expenses 355,245 329,680 342,282 339,908 (2,374) -0.7% 12,602 3.8% 41 Aviation Total Vacant FTEs as of 4/23/2021 Managing vacancies key to managing costs. Payroll cost is largest expense category. 58 vacant and funded positions as of 4/23/21 in various stages of hiring. 102 FROZEN positions not funded in the 2021 Budget. 42 Aeronautical Business YTD Fav(UnFav) Actual vs. Budget Incr/(Decr) Aeronautical NOI 2019 YTD 2020 YTD 2021 YTD 2021 YTD Variance Change from 2020 ($ in 000's) Actual Actual Actual Budget $ % $ % Rate Base Revenues Airfield Movement Area 28,300 25,223 15,396 20,399 (5,003) -24.5% (9,827) -39.0% Airfield Apron Area 4,706 5,360 4,302 4,225 77 1.8% (1,057) -19.7% Terminal Rents 48,570 47,756 35,605 48,679 (13,074) -26.9% (12,151) -25.4% Federal Inspection Services (FIS) 3,267 4,019 1,869 3,769 (1,901) -50.4% (2,150) -53.5% Total Rate Base Revenues 84,843 82,357 57,172 77,073 (19,901) -25.8% (25,185) -30.6% - Airfield Commercial Area 2,793 3,927 4,139 3,865 274 7.1% 212 5.4% Subtotal before Revenue Sharing 87,635 86,284 61,311 80,938 (19,627) -24.2% (24,973) -28.9% Revenue Sharing (3,961) - - - - - Total Aeronautical Revenues 83,674 86,284 61,311 80,938 (19,627) -24.2% (24,973) -28.9% - Total Aeronautical Expenses 53,251 50,268 54,141 56,473 2,332 4.1% 3,873 7.7% Aeronautical NOI 30,423 36,016 7,169 24,464 (17,295) -70.7% (28,846) -80.1% 43 Aeronautical Business YE Fav(UnFav) Fcst. vs. Budget Incr/(Decr) Aeronautical NOI 2019 2020 2021 2021 Variance Change from 2020 ($ in 000's) Actual Actual Forecast Budget $ % $ % Rate Base Revenues Airfield Movement Area 123,436 84,906 87,718 115,037 (27,319) -23.7% 2,812 3.3% Airfield Apron Area 22,016 15,146 14,974 21,418 (6,444) -30.1% (172) -1.1% Terminal Rents 205,283 171,607 177,661 213,147 (35,485) -16.6% 6,054 3.5% Federal Inspection Services (FIS) 12,321 8,616 17,679 21,454 (3,775) -17.6% 9,063 105.2% Total Rate Base Revenues 363,057 280,275 298,032 371,056 (73,023) -19.7% 17,757 6.3% Airfield Commercial Area 11,687 17,633 16,444 15,612 832 5.3% (1,189) -6.7% Subtotal before Revenue Sharing 374,744 297,908 314,476 386,668 (72,192) -18.7% 16,568 5.6% Revenue Sharing (17,146) 1 - - - (1) -100.0% Total Aeronautical Revenues 357,598 297,909 314,476 386,668 (72,192) -18.7% 16,567 5.6% Total Aeronautical Expenses 236,959 219,878 235,107 233,102 (2,005) -0.9% 15,230 6.9% Aeronautical NOI 120,639 78,031 79,369 153,566 (74,197) -48.3% 1,338 1.7% Debt Service (110,945) (62,607) (57,903) (125,747) 67,844 -54.0% 4,704 -7.5% Net Cash Flow 9,694 15,424 21,466 27,819 (6,353) -22.8% 6,042 39.2% 44 Aero Cost Drivers 2021 Forecast to 2021 Budget O&M $2.0M higher mostly in Apron, FIS, Impact on Aero and Queue Management: Revenues Apron Large Snow Expenses FIS Increased Interpretation 2020 2021 2021 Budget vs Forecast Services, Increased VIP Hospitality, $ in 000's Actual Budget Forecast $ % Furniture Capital to Expense, O&M (1) 213,775 227,420 229,450 2,029 0.9% Contingencies [IAF Oversize Federal Relief Grants O&M (22,507) (3,500) (18,492) (14,992) 428.3% Baggage Relocate, IAF Wall Net O&M 191,268 223,920 210,958 (12,962) -5.8% Protections] Debt Service Before Offsets 166,848 193,302 195,975 2,672 1.4% Queue Management VIP Debt Service PFC Offset (36,390) (47,549) (38,614) 8,935 -18.8% Divesting Federal Relief Grants Debt Service (71,763) (29,399) (101,211) (71,812) 244.3% Debt Service before Offsets: Forecast is Net Debt Service 58,694 116,354 56,149 (60,204) -51.7% $2.6M higher primarily because the Budget Amortization 32,359 32,681 32,681 - 0.0% assumed a reduction of $5.8M of Debt Service exclusion for assets not in use which Space Vacancy (1,083) (1,141) (998) 143 -12.5% were partially offset by an increase in Capital TSA Operating Grant and Other (960) (758) (758) - 0.0% Interest. Rate Base Revenues 280,279 371,056 298,032 (73,023) -20% PFC Offset $8.9M lower due to lower Commercial area 17,633 15,612 16,444 832 5% anticipated collections Total Aero Revenues 297,912 386,668 314,476 (72,192) -19% Federal Relief Grants Aero Portion: Payroll Impact (O&M) Removing $18.5M from Rate Base Debt Service Impact - Removing $101.2M from Rate Base Aero ra te base revenues based o n cost recovery formulas 45 Non-Aeronautical Business YTD Passenger Volume down 47.3% compared to prior year 2021 YTD Actuals to 2020 YTD Actuals O&D Passenger Volume down 42.4% compared to prior year Non-Aero Revenue: All Non-Aero lines of business Fav(UnFav) impacted by COVID-19. Q1 2021 Actual vs. Budget Incr/(Decr) results reflect a full quarter of the Non-Aeronautical NOI 2019 YTD 2020 YTD 2021 YTD 2021 YTD Variance Change from 2020 pandemic environment, compared ($ in 000's) to less than a month impact in prior Actual Actual Actual Budget $ % $ % y e a r. Non-Aeronautical Revenues GT steeper decline reflects Public Parking 19,956 16,720 9,330 10,595 (1,264) -11.9% (7,390) -44.2% continued shift in passenger Rental Cars 7,229 6,928 3,484 4,577 (1,092) -23.9% (3,444) -49.7% preference away from shared ride Ground Transportation 4,523 3,931 1,459 2,441 (982) -40.2% (2,471) -62.9% options. Airport Dining & Retail 12,815 10,680 4,865 7,896 (3,031) -38.4% (5,815) -54.4% Parking, Rental Car, and ADR more Other 11,474 11,697 7,791 9,576 (1,784) -18.6% (3,906) -33.4% closely aligned with change in Total Non-Aeronautical Revenues 55,996 49,956 26,930 35,085 (8,154) -23.2% (23,025) -46.1% passenger volumes. Total Non-Aeronautical Expenses 17,206 34,898 23,947 24,804 857 3.5% (10,951) -31.4% Non-Aero space rental lease revenue not directly impacted by Non-Aeronautical NOI 38,790 15,058 2,984 10,281 (7,297) -71.0% (12,074) -80.2% decline in passenger volume Less: CFC Surplus - - - - - - Non-Aero Expenses: Adjusted Non-Aeronautical NOI 38,790 15,058 2,984 10,281 (7,297) -71.0% (12,074) -80.2% Lower spending reflects cost cutting Debt Service - - - - - - measures implemented to mitigate Net Cash Flow 38,790 15,058 2,984 10,281 (7,297) -71.0% (12,074) -80.2% pandemic impacts. 46 Non-Aeronautical Business YE Passenger Forecast up 83.7% compared to prior year 2021 Forecast to 2020 Actuals O&D Passenger Forecast up 100.9% compared to prior year Non - Aero Revenue: All Non -Aero lines of business impacted by COVID -19. Fav(UnFav) Parking strong passenger Fcst. vs. Budget Incr/(Decr) preference in 2020, reduces the Non-Aeronautical NOI 2019 2020 2021 2021 Variance Change from 2020 recovery percentage in 2021. ($ in 000's) Actual Actual Forecast Budget $ % $ % Continued preference for close in self-parking. Non-Aeronautical Revenues Public Parking 82,125 34,502 64,699 59,597 5,102 8.6% 30,197 87.5% Rental Car recovering consistent Rental Cars 52,567 16,637 33,160 26,880 6,280 23.4% 16,523 99.3% with passenger recovery. Ground Transportation 20,765 6,557 14,321 13,628 693 5.1% 7,764 118.4% GT recovery includes new TNC Airport Dining & Retail 61,615 25,418 44,567 45,936 (1,369) -3.0% 19,149 75.3% revenue from drop - off trips. Other 51,966 33,359 41,319 43,506 (2,187) -5.0% 7,961 23.9% ADR recovering consistent with Total Non-Aeronautical Revenues 269,037 116,473 198,067 189,548 8,519 4.5% 81,594 70.1% passenger recovery. Total Non-Aeronautical Expenses 118,286 109,802 107,175 106,806 (369) -0.3% (2,627) -2.4% Non-Aero space rent real estate lease revenue not directly impacted Non-Aeronautical NOI 150,752 6,671 90,892 82,742 8,150 9.9% 84,221 1262.6% by decline in passenger volume Less: CFC Surplus (6,834) - - - - - Adjusted Non-Aeronautical NOI 143,917 6,671 90,892 82,742 8,150 9.9% 84,221 1262.6% Non - Aero Expenses: Lower forecasted spending reflects Debt Service (49,299) (33,065) (23,358) (53,025) 29,666 -55.9% 9,707 -29.4% cost cutting measures implemented Net Cash Flow 94,619 (26,394) 67,533 29,717 37,816 127.3% 93,928 -355.9% to mitigate pandemic impacts. 47 Non-Aero Revenue By Business Unit Non-Aero Revenue overview: 2021 Non-Aero revenue from concession fees or transaction volume (Parking, Rental Car, GT, ADR, Clubs & Lounges, In-flight Kitchens) are closely aligned with the decline in passenger volume Commercial Properties and other Non-Aero line of business with revenue from space rent for real estate leases were relatively unaffected by the COVID-19 decline in enplanements 48 YTD Public Parking Passenger Volume down 47.3% compared to prior year O&D Passenger Volume down 42.4% compared to prior year 2021 YTD Actuals vs. 2020 YTD Actuals Public Parking - Revenue Detail Fav (UnFav) Incr (Decr) 2019 2020 2021 YTD 2021 YTD Budget Variance Change from 2020 Q1 2021 results reflect a full quarter of $ in 000's Actual Actual Actuals Budget $ % $ % the pandemic environment, compared Parking Garage Revenue to Port to less than a month impact in the prior General Parking/Terminal Direct 17,931 13,943 6,364 8,500 (2,136) -25.1% (7,578) -54.4% y e a r. Prebooking - 487 2,126 981 1,145 116.7% 1,639 336.7% Premier Corporate Parking 348 672 - 149 (149) -100.0% (672) -100.0% General Garage Parking (includes pre - Revenue to Port - General Parking 18,280 15,101 8,490 9,630 (1,140) -11.8% (6,611) -43.8% booking program) Garage parking Other Garage Revenue closely aligned with change in Passport Parking Program 860 954 576 491 85 17.4% (378) -39.6% passenger volume, with continued Total Parking Garage Revenue 19,140 16,056 9,067 10,121 (1,054) -10.4% (6,989) -43.5% passenger preference for close in self - Other Parking Revenue Concession Rent - Doug Fox off-site parking 802 661 259 474 (214) -45.3% (401) -60.8% parking. All Other Parking Revenue 14 3 5 - 5 N/A 1 40.0% Passport program this monthly Total Parking Revenue 19,956 16,720 9,330 10,595 (1,264) -11.9% (7,389) -44.2% parking program is not as closely aligned with the change in passenger O&D Enplanements 3,808 2,947 1,699 2,176 (477) -21.9% (1,249) -42.4% volume. Doug Fox revenue decline deeper Q1 2021 results reflect a full quarter of the pandemic than decline in O&D passenger volume environment, compared to less than a month impact in prior shows customer preference away from ye a r. parking with shared ride shuttles. 49 YTD Public Parking metrics reflect preference for close in self-parking Public Parking - Revenue Metrics Fav / (UnFav) Incr / (Decr) 2019 2020 2021 YTD 2021 YTD Budget Variance Change from 2020 in 000's Actual Actual Actual Budget # % # % Total Enplanements 5,424 4,605 2,427 3,200 (773) -24.2% (2,178) -47.3% O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4% O&D Enplanements 3,808 2,947 1,699 2,176 (477) -21.9% (1,249) -42.4% Revenue per O&D Enplanement Metrics General Parking/Pre-Book/Premier Corporate $ 4.80 $ 5.12 $ 5.00 $ 4.43 $ 0.57 12.9% $ (0.13) -2.5% Passport Parking Program $ 0.23 $ 0.32 $ 0.34 $ 0.23 $ 0.11 50.4% $ 0.02 4.8% Total Garage Revenue per O&D Enplanement $ 5.03 $ 5.45 $ 5.34 $ 4.65 $ 0.69 14.7% $ (0.11) -2.0% Concession Rent - Doug Fox off-site parking $ 0.21 $ 0.22 $ 0.15 $ 0.22 $ (0.07) -29.9% $ (0.07) -31.9% All Other Parking Revenue $ 0.00 $ 0.00 $ 0.00 $ - $ 0.00 N/A $ 0.00 142.9% Total Parking per O&D Enplanement $ 5.24 $ 5.67 $ 5.49 $ 4.87 $ 0.62 12.8% $ (0.18) -3.2% Public Parking Key Metrics 2021 YTD Actuals vs. 2020 YTD Actuals: General Garage Parking (includes pre - booking) revenue per enplanement retained much of increase during pandemic O&D passenger decline, which indicates passenger preference for close in self - parking Passport parking programs metric increased due to continued demand from airport tenant employees who continued to utilize during COVID impacts due to preference for close in self - parking Doug Fox off -site parking YTD metric decrease may be temporary, will continue to monitor. 50 Public Parking forecast recovers with O&D passenger increase Passenger Forecast up 83.7% compared to prior year O&D Passenger Forecast up 100.9% compared to prior year Public Parking - Revenue Detail Fav (UnFav) Incr (Decr) 2021 Forecast vs. 2020 Actuals 2019 2020 2021 2021 Fcst to Bud Var Change from 2020 $ in 000's Actual Actual Fo recast Budget $ % $ % General Garage Parking (includes Parking Garage Revenue to Port pre - booking program) Garage General Parking/Terminal Direct 73,562 27,157 46,746 48,332 (1,586) -3.3% 19,589 72.1% parking activity is closely aligned Prebooking 217 2,935 13,343 5,570 7,773 139.5% 10,408 354.6% with the return of O&D passenger Premier Corporate Parking 1,415 449 - 850 (850) -100.0% (449) -100.0% volume. Revenue to Port - General Parking 75,194 30,540 60,088 54,752 5,336 9.7% 29,548 96.8% Passport program demand is Other Garage Revenue relatively stable, not closely aligned Passport Parking Program 3,582 2,738 2,556 2,790 (234) -8.4% (181) -6.6% with passenger volumes. Significant Total Parking Garage Revenue 78,776 33,278 62,645 57,542 5,103 8.9% 29,366 88.2% portion of usage is from airport Other Parking Revenue tenant employees. Concession Rent - Doug Fox off-site parking 3,292 1,186 2,032 2,037 (5) -0.3% 846 71.3% All Other Parking Revenue 56 37 23 18 5 27.2% (14) -38.3% Doug Fox revenue recovering Total Parking Revenue 82,125 34,501 64,699 59,597 5,102 8.6% 30,198 87.5% slower than the return in O&D passenger volume, possibly due to continued customer preference away from parking with shared ride shuttles. 51 YE Public Parking metrics expected to reflect continued preference for close in self-parking Parking Revenue Metrics Fav / (UnFav) Incr / (Decr) 2019 2020 2021 2021 Fcst to Bud Var Change from 2020 in 000's Actual Actual Fo recast Budget # % # % Total Enplanements 25,874 10,044 18,451 18,216 236 1.3% 8,408 83.7% O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4% O&D Enplanements 18,163 6,428 12,916 12,387 529 4.3% 6,488 100.9% Revenue per O&D Enplanement Metrics General Parking/Pre-Book/Premier Corporate $ 4.14 $ 4.75 $ 4.65 $ 4.42 $ 0.23 5.2% $ (0.10) -2.1% Passport Parking Program $ 0.20 $ 0.43 $ 0.20 $ 0.23 $ (0.03) -12.1% $ (0.23) -53.5% Total Garage Revenue per O&D Enplanement $ 4.34 $ 5.18 $ 4.85 $ 4.65 $ 0.20 4.4% $ (0.33) -6.3% Concession Rent - Doug Fox off-site parking $ 0.18 $ 0.18 $ 0.16 $ 0.16 $ (0.01) -4.3% $ (0.03) -14.7% All Other Parking Revenue $ 0.00 $ 0.01 $ 0.00 $ 0.00 $ 0.00 22.0% $ (0.00) -69.3% Total Parking per O&D Enplanement $ 4.52 $ 5.37 $ 5.01 $ 4.81 $ 0.20 4.1% $ (0.36) -6.7% Public Parking Key Metrics 2021 Forecast vs. 2020 Actuals: General Garage Parking (includes pre - booking) revenue per enplanement retained much of increase during pandemic O&D passenger decline, based on continued passenger preference for close in self - parking. Passport parking programs metric expected to return to pre - pandemic demand level. Significant portion of usage is from airport tenant employees. Doug Fox off - site parking metric forecasted to continue to slightly lag the recovery in O&D enplanements, will continue to monitor. 52 Rental Cars YTD Rental Car - Revenue Detail Fav / (UnFav) Incr / (Decr) 2021 YTD Actuals vs. 2020 YTD 2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020 Actuals $ in 000's Actual Actual Actual Budget $ % $ % Total Enplanements 5,424 4,605 2,427 3,200 (773) -24.2% (2,178) -47.3% Rental Car Concession Revenue in O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4% 2020 the decline was less than the O&D Enplanements 3,808 2,947 1,699 2,176 (477) -21.9% (1,249) -42.4% O&D passenger decline. Similar to Gross Sales by Operators 52,311 44,945 25,982 36,110 (10,128) -28.0% (18,963) -42.2% Total Transactions 277 223 108 157 (49) -31.4% (115) -51.6% the prior year, car rental appears to Average Ticket $188.62 $201.73 $241.11 $230.00 $11.11 4.8% $39.38 19.5% continue to be the 2nd preferred Average Length of Stay 4.12 4.26 4.82 4.60 0.22 4.8% 0.56 13.2% transportation option, following Transactions/O&D Enplanements 7.18% 7.56% 6.34% 7.21% -0.87% -12.1% -1.22% -16.1% the primary preference for close in CFC Revenue Summary self-parking in the Public Parking Total Transaction Days 1,143 949 519 722 (203) -28.1% N/A -45.3% CFC Rate per Transaction Day $6.00 $6.00 $6.50 $6.50 $0.00 0.0% $0.50 8.3% Garage. CFC Revenue Earned 6,860 5,693 3,376 4,694 (1,319) -28.1% N/A -40.7% CFC Operating Revenue - CFC Other CFC Collections 4 - - - - N/A N/A N/A collections declined in 2020 to a Total CFC Revenue 6,865 5,693 3,376 4,694 (1,319) -28.1% (2,317) -40.7% level below current year debt Debt Service Reserve Requirement (5,870) (4,822) (6,068) (6,038) (30) 0.5% (1,246) 25.9% Residual - CFC Operating Revenue 994 - - - - N/A - N/A service, and YTD 2021 CFC Rental Car - Revenue Summary Fav / (UnFav) Incr / (Decr) Operating Revenue is still lower 2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020 than debt service. CFC Operating $ in 000's Actual Actual Actual Budget $ % $ % Revenue is a residual (only after RCF Concession Revenue to Port 5,271 5,935 2,470 3,611 (1,141) -31.6% (3,466) -58.4% covering current year debt service), Residual - CFC Operating Revenue: 994 - - - - N/A - N/A so YTD 2020 CFC operating revenue Land Rent/Space Rent/Other 964 993 1,015 966 49 5.1% 22 2.2% Total Rental Cars Operating Revenue 7,229 6,928 3,484 4,577 (1,092) -23.9% (3,444) -49.7% is still zero. Broad and severe impact to Landside re venue from COVID-19 53 Rental Cars YE Rental Car - Revenue Detail Fav / (UnFav) Incr / (Decr) 2021 Forecast vs 2020 Actuals 2019 2020 2021 2021 Fcst vs Bud Var Change from 2020 $ in 000's Actual Actual Fo recast Budget $ % $ % Rental Car Concession Revenue Total Enplanements 25,874 10,044 18,451 18,216 236 1.3% 8,408 83.7% in 2020 the decline was less than O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4% the O&D passenger decline. In O&D Enplanements 18,396 6,428 12,916 12,387 529 4.3% 6,488 100.9% Gross Sales by Operators 328,156 122,372 231,721 122,372 109,349 89.4% 109,349 89.4% 2021, demand is expected to Total Transactions 1,414 519 986 892 94 10.5% 467 89.8% return on pace with returning Average Ticket $232.06 $235.57 $ 235.00 $ 230.00 $5.00 2.2% ($0.57) -0.2% O&D enplanements. Similar to Average Length of Stay 4.49 4.93 4.71 4.60 0.11 2.5% (0.22) -4.4% the prior year, car rental appears Transactions/O&D Enplanements 7.69% 8.08% 7.63% 7.20% 0.43% 6.0% -0.45% -5.5% to continue to be the 2nd CFC Revenue Summary Total Transaction Days 6,356 2,560 4,647 4,103 544 13.3% 2,087 81.5% preferred transportation option, CFC Rate per Transaction Day $6.00 $6.00 $6.50 $6.50 $0.00 0.0% $0.50 8.3% following the primary preference CFC Revenue Earned 38,137 15,362 30,207 26,670 3,537 13.3% 14,845 96.6% for close in self-parking in the Other CFC Collections (9) - - - - N/A - N/A Public Parking Garage. Total CFC Revenue 38,128 15,362 30,207 26,670 3,537 13.3% 14,845 96.6% Debt Service Reserve Requirement (23,655) (24,019) (24,274) (24,153) (121) 0.5% (255) 1.1% CFC Operating Revenue - CFC Reserve Fund Release (bond maturation) 1,300 - - - - N/A - N/A collections are increasing in 2021 Net Debt Service (22,355) (23,914) (24,274) (24,153) (121) 0.5% (360) 1.5% and are expected to exceed Residual - CFC Operating Revenue 15,773 - 5,933 2,501 3,432 137.2% 5,933 N/A current year debt service, so CFC Fav / (UnFav) Incr / (Decr) Rental Car - Revenue Summary 2019 2020 2021 2021 Fcst vs Bud Var Change from 2020 Operating Revenue will be $ in 000's Actual Actual Fo recast Budget $ % $ % recognized again in 2021. CFC RCF Concession Revenue to Port 32,870 12,531 23,172 20,516 2,656 12.9% 10,641 84.9% Operating Revenue is a residual Residual - CFC Operating Revenue: 15,773 - 5,933 2,501 3,432 137.2% 5,933 N/A (only recognized after covering Land Rent/Space Rent/Other 3,924 4,106 4,056 3,863 193 5.0% (50) -1.2% current year debt service). Total Rental Cars Operating Revenue 52,567 16,637 33,161 26,880 6,280 23.4% 16,524 99.3% Broad and severe impact to Landside re venue from COVID-19 54 Ground Transportation Revenue YTD Passenger Volume down 47.3% compared to prior year O&D Passenger Volume down 42.4% compared to prior year 2021 YTD Actuals vs. 2020 YTD Actuals GT Revenue: Revenue to Port Fav (UnFav) Incr (Decr) Ground Transportation revenues and GT 2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020 operators severely impacted by $ in 000's Actual Actual Actual Budget $ % $ % compounding pandemic factors: Ground Transportation Revenues COVID-19 declines in O&D Transportation Network Companies 2,678 2,523 915 1,529 (613) -40.1% (1,608) -63.7% passenger volumes On Demand Taxis 859 580 133 325 (192) -59.2% (447) -77.1% Customer preference away from On Demand Limos 221 222 - - - N/A (222) -100.0% shared ride transportation options Belled In Taxis (Annual Permit) 21 12 6 19 (14) -70.6% (6) -53.0% during this pandemic. Pre-Arranged Limos (Annual Permit) 127 91 56 104 (48) -46.0% (35) -38.1% Courtesy Cars (cost recovery) 467 400 323 380 (57) -15.0% (77) -19.2% TNC revenue decline of 64% was deeper All other Operators (cost recovery) 88 44 2 23 (22) -93.5% (43) -96.5% than the decline in O&D passengers Other Misc Revenues 62 59 10 25 (15) -58.3% (49) -82.5% (42%) Total GT Revenue 4,523 3,931 1,459 2,441 (982) -40.2% (2,471) -62.9% Taxi revenue declined (77%) even more O&D Enplanements 3,862 2,947 1,699 2,048 (349) -17.0% (1,249) -42.4% deeply than TNCs. On-demand Limos (STILA) made the decision to cease operations at SEA. All other GT operators impacted to varying degrees. 55 Ground Transportation Trips YTD Passenger Forecast up 83.7% compared to prior year O&D Passenger Forecast up 100.9% compared to prior year Ground Transportation Trip Activity Fav / (UnFav) Incr / (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020 in 000's Actual Actual Actual Budget # % # % Ground Transportation Trips Transportation Network Companies 446 421 236 255 (19) -7.5% (185) -44.0% On Demand Taxis 145 100 23 54 (31) -56.7% (77) -76.5% On Demand Limos 16 12 - - - N/A (12) -100.0% Belled In Taxis (Annual Permit) 4 1 0 1 (0) -53.4% (1) -59.0% Pre-Arranged Limos (Annual Permit) 16 58 14 34 (19) -57.6% (44) -75.4% Courtesy Cars (cost recovery) 290 247 135 158 (23) -14.4% (112) -45.2% All other Operators (cost recovery) 23 10 3 5 (1) -31.9% (7) -68.1% Total GT Trip Activity 940 849 412 506 (94) -18.6% (437) -51.4% Total Enplanements 5,424 4,605 2,427 3,200 (773) -24.2% (2,178) -47.3% O&D % 70.2% 64.0% 70.0% 64.0% 6.0% 9.4% 6.0% 9.4% O&D Enplanements 3,862 2,947 1,699 2,048 (349) -17.0% (1,249) -42.4% Revenue per O&D Enplanement Metrics TNC 11.6% 14.3% 13.9% 12.4% 1.4% 11.5% -0.4% -2.9% T axi 3.8% 3.4% 1.4% 2.6% -1.3% -47.8% -2.0% -59.3% All other 24.3% 28.8% 24.3% 24.7% -0.5% -1.8% -4.5% -15.7% Total GT Trips per O&D Enplanement 24.3% 28.8% 24.3% 24.7% -0.5% -1.8% -4.5% -15.7% 56 Ground Transportation Revenue YE Passenger Forecast up 83.7% compared to prior year 2021 Forecast vs. 2020 Actuals GT Revenue O&D Passenger Forecast up 100.9% compared to prior year Ground Transportation recovery remains slower than the recovery Revenue Detail Fav (UnFav) Incr (Decr) in O&D enplanements as customer 2019 2020 2021 2021 Fcst vs Bud Var Change from 2020 preference away from shared ride $ in 000's Actual Actual Forecast Budget $ % $ % transportation options continues Ground Transportation Revenues during this pandemic recovery Transportation Network Companies 12,982 4,032 10,406 8,700 1,706 19.6% 6,373 158.1% stage. On Demand Taxis 3,578 857 1,020 1,851 (831) -44.9% 162 18.9% TNC revenue stronger increase On Demand Limos 837 371 - - - N/A (371) -100.0% reflects new TNC agreement Belled In Taxis (Annual Permit) 27 12 6 19 (14) -70.6% (6) -53.0% effective 1/1/2021 with new fee Pre-Arranged Limos (Annual Permit) 611 209 407 516 (109) -21.0% 199 95.4% for TNC drop-off trips. Courtesy Cars (cost recovery) 2,019 877 2,207 2,160 47 2.2% 1,330 151.6% On-demand Taxi revenue & trip All other Operators (cost recovery) 418 86 86 188 (102) -54.3% - 0.0% recovery is much slower than Other Misc Revenues 293 113 165 194 (29) -14.7% 53 47.0% recovery in O&D enplanements. Total GT Revenue 20,765 6,557 14,321 13,628 693 5.1% 7,764 118.4% On-demand Limos (STILA) made the decision to cease operations at O&D Enplanements 18,422 6,428 12,916 12,387 529 4.3% 6,488 100.9% SEA in late-2020. Other GT operators impacted to varying degrees. 57 Ground Transportation Trips YE Trip Activity Fav / (UnFav) Incr / (Decr) 2019 2020 2021 2021 Fcst vs Bud Var Change from 2020 in 000's Actual Actual Fo recast Budget # % # % Ground Transportation Trips Transportation Network Companies 2,172 672 2,225 1,450 775 53.4% 1,553 231.1% On Demand Taxis 616 150 171 309 (137) -44.5% 22 14.4% On Demand Limos 65 12 - - - N/A (12) -100.0% Belled In Taxis (Annual Permit) 13 2 1 5 (4) -70.6% (1) -26.7% Pre-Arranged Limos (Annual Permit) 65 87 152 192 (40) -21.0% 65 74.9% Courtesy Cars (cost recovery) 1,236 557 904 900 4 0.5% 347 62.2% All other Operators (cost recovery) 74 16 14 27 (13) -48.8% (2) -13.7% Total GT Trip Activity 4,240 1,496 3,467 2,882 585 20.3% 1,971 131.8% Total Enplanements 25,874 10,044 18,451 18,216 236 1.3% 8,408 83.7% O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4% O&D Enplanements 18,422 6,428 12,916 12,387 529 4.3% 6,488 100.9% Trips per O&D Enplanement TNC 11.8% 10.5% 17.2% 11.7% 5.5% 47.2% 6.8% 64.8% T axi 3.3% 2.3% 1.3% 2.5% -1.2% -46.7% -1.0% -43.1% All other 7.9% 10.5% 8.3% 9.1% -0.8% -8.6% -2.2% -20.9% Total Trips per O&D Enplanement 23.0% 23.3% 26.8% 23.3% 3.6% 15.4% 3.6% 15.4% 58 Airport Dining & Retail YTD Results Fav/(UnFav) Budget Inc/(Dec) from Prior 2019 YTD 2020 YTD 2021 YTD 2021 YTD Revenue Summary (in $000s) Variance Year Actuals Org(s): 3650-Airport Dining and Retail, Class: Top Level Actual Actual Actual Budget $ Var % Var $ Change % Change Operating Revenue Duty Free 1,614 1,106 389 408 (18) -4.5% (717) -64.8% Food & Beverage 4,950 4,287 1,926 3,236 (1,310) -40.5% (2,361) -55.1% Retail 3,260 2,644 1,298 2,347 (1,050) -44.7% (1,347) -50.9% Services 962 757 468 634 (166) -26.1% (289) -38.2% Advertising 1,591 1,496 529 905 (377) -41.6% (967) -64.7% All Other 437 390 255 367 (111) -30.3% (134) -34.5% Total ADR Revenue 12,815 10,680 4,865 7,896 (3,031) -38.4% (5,815) -54.4% Enplanements 5,424 4,605 2,427 3,200 (773) -24.2% (2,178) -47.3% 2021 YTD Actuals vs. 2020 YTD Actuals Detailed analysis of YTD ADR revenue variances is hampered by the fact that ADR revenue has not been billed since 12/31/2020. YTD revenue recognition is based on manual accruals of the best available revenue estimates. The delay in ADR billing is related to the need for sequential, complex legal reviews related to MAG calculations. Cumulative YTD 2021 ADR billing is expected to be completed by early May. 59 Airport Dining & Retail YE Forecast Fav/(UnFav) Budget Inc/(Dec) from Prior Year 2019 2020 2021 2021 Revenue Summary (in $000s) Variance Actuals 2021 Forecast vs. 2020 Actuals Org(s): O3500-AV Commercial Management, Class: Top Level Actual Actual Fo recast Budget $ Var % Var $ Change % Change COVID-19 impacts to Airport Operating Revenue Dining & Retail revenue has Duty Free 6,189 1,842 1,917 3,599 (1,683) -46.7% 1,758 95.4% Food & Beverage 26,314 9,709 19,218 18,456 762 4.1% 8,747 90.1% been severe, and compounded Retail 16,313 6,328 12,806 13,360 (555) -4.2% 7,033 111.1% by passenger volume decline, Services 3,847 1,728 2,912 3,900 (988) -25.3% 2,173 125.7% significant unit closures during Advertising 7,326 4,285 6,228 5,153 1,075 20.9% 868 20.3% All Other 1,625 1,527 1,486 1,466 19 1.3% (60) -4.0% 2020, restrictions on in-unit Total ADR Revenue 61,614 25,418 44,567 45,936 (1,369) -3.0% 20,518 80.7% dining, and a prohibition on Enplanements 25,874 10,044 18,451 18,216 236 1.3% 8,408 83.7% alcohol sales near the end of 2020. Sales per Enplanements Fav/(UnFav) Budget Inc/(Dec) from Prior Year 2019 2020 2021 2021 Summary Variance Actuals Org(s): 3650-Airport Dining and Sales per Enplanement (SPE) Retail, Class: Top Level Actual Actual Fo recast Budget $ Var % Var $ Change % Change on Food & Beverage and Retail Duty Free 0.77 0.47 0.35 0.65 (0.30) -46.3% (0.12) -25.6% are shrinking slightly as Food & Beverage 7.56 7.83 7.28 8.18 (0.90) -11.0% (0.55) -7.0% Retail 3.99 4.14 4.12 4.79 (0.67) -14.0% (0.03) -0.6% enplanements are returning Services 0.80 0.49 0.44 0.56 (0.12) -21.1% (0.05) -10.0% and food offerings are coming SPE - Total ADR 13.12 12.94 12.19 14.18 (1.99) -14.0% (0.75) -5.8% back on flights as airlines have Revenue per Enplanements Fav/(UnFav) Budget Inc/(Dec) from Prior Year adjusted to changed operating 2019 2020 2021 2021 Summary Variance Actuals conditions. Org(s): 3650-Airport Dining and Retail, Class: Top Level Actual Actual Fo recast Budget $ Var % Var $ Change % Change Revenue per Enplanement Duty Free 0.24 0.18 0.10 0.20 (0.09) -47.4% (0.08) -43.3% Food & Beverage 1.02 0.97 1.04 1.01 0.03 2.8% 0.07 7.7% (RPE) is increasing as tiered Retail 0.63 0.63 0.69 0.73 (0.04) -5.4% 0.06 10.2% rent reach higher tiers in 2021. Services 0.15 0.17 0.16 0.21 (0.06) -26.3% (0.01) -8.3% RPE - Total ADR 2.04 1.95 2.00 2.16 (0.16) -7.5% 0.05 2.3% 60 Non-Aero Commercial Properties Land Rent stable, but In-Flight Kitchen revenue negatively impacted by COVID-19 Fav/(UnFav) Budget Inc/(Dec) from Prior 2019 YTD 2020 YTD 2021 YTD 2021 YTD 2021 Forecast vs. 2020 Actuals Revenue Summary (in $000s) Variance Year Actuals Org(s): 3630-Non-Aero COVID-19 impacts to Non-Aero Commercial Properties, Class: Top Commercial Properties Level Actual Actual Actual Budget $ Var % Var $ Change % Change revenue is primarily limited to In-Flight Kitchen concession Operating Revenue revenue. Land/Space Rental 1,137 1,581 1,501 1,519 (18) -1.2% (80) -5.1% In-Flight Kitchen Revenue 1,948 1,922 907 1,243 (336) -27.0% (1,015) -52.8% In-Flight Kitchen Revenue Other Service Revenues 127 137 149 149 (0) 0.0% 11 8.3% decline is closely aligned with Total Operating Revenues 3,212 3,641 2,557 2,911 (354) -12.2% (1,083) -29.8% the decline in passenger volumes Fav/(UnFav) Budget Inc/(Dec) from Prior Year 2019 2020 2021 2021 Land/Space Rent revenues are Revenue Summary (in $000s) Variance Actuals primarily fixed rates per sq.ft., Org(s): 3630-Non-Aero Commercial Properties, Class: Top and were therefore relatively Level Actual Actual Fo recast Budget $ Var % Var $ Change % Change unaffected by COVID-19 impacts Operating Revenue Land/Space Rental 5,122 6,209 6,001 6,022 (21) -0.3% (208) -3.4% In-Flight Kitchen Revenue 10,053 3,990 7,395 7,078 317 4.5% 3,405 85.3% Other Service Revenues 597 566 613 613 0 0.0% 47 8.3% Total Operating Revenues 15,773 10,765 14,009 13,713 296 2.2% 3,244 30.1% Enplanements 25,874 10,044 18,451 18,216 236 1.3% 8,408 83.7% 61 Clubs & Lounges Impacted by lounge closures and passenger volume decline 2021 Forecast vs. 2020 Actuals COVID-19 impacts to Port-owned Fav/(UnFav) Budget Inc/(Dec) from Prior common use Clubs & Lounges 2019 YTD 2020 YTD 2021 YTD 2021 YTD Revenue Summary (in $000s) Variance Year Actuals reflects overall decline in Org(s): 3690-Club International passenger volume. As a result, Lounge, Class: Top Level Actual Actual Actual Budget $ Var % Var $ Change % Change both the South Satellite lounge and the Concourse A lounges Operating Revenue were closed in mid-March 2020 Space Rental 1,902 1,714 175 936 (762) -81.3% (1,540) -89.8% Total Operating Revenues 1,902 1,714 175 936 (762) -81.3% (1,540) -89.8% due to the decline in passengers and in response to social distancing requirements. South Satellite Lounge was able Fav/(UnFav) Budget Inc/(Dec) from Prior Year 2019 2020 2021 2021 to reopen on July 1st, 2020 with Revenue Summary (in $000s) Variance Actuals new safety protocols and is Org(s): 3690-Club International Lounge, Class: Top Level Actual Actual Fo recast Budget $ Var % Var $ Change % Change experiencing a steady increase in passenger activity. Operating Revenue Space Rental 10,274 2,043 4,148 6,221 (2,073) -33.3% 2,105 103.0% A Concourse Lounge Total Operating Revenues 10,274 2,043 4,148 6,221 (2,073) -33.3% 2,105 103.0% unfortunately remained closed through year-end 2020 and isn't Enplanements 25,874 10,044 18,451 18,216 236 1.3% 8,408 83.7% expected to reopen until June 2021 due to low passenger volumes. 62 2021 Capital Expenditures 2021 2021 2021 Budget Variance (1) $1M less Overhead; $1.5M less Construction (contract/OFCI & sales tax); $1.3M under Permit YTD Year-End Budget $ % costs that are delayed; PM/CM/AD/ART invoice slip & underrun $ in 000's Actual Forecast NS NSAT Renov NSTS Lobbies (1) 32,459 90,814 96,408 5,594 5.8% (2) Bid result lower than Engineer's Estimate by $4.7M 2021-25 AFLD Pvmnt& Spprt Infr (2) 718 25,047 29,560 4,513 15.3% (3) 2021 baseline was set previous to Notebook approval (03/05/21), whereas the project budget went Concourse A Expansion (3) 31 9,613 5,215 (4,398) -84.3% from $60M to 71.4M International Arrivals Facility (4) 22,947 82,447 86,500 4,053 4.7% (4) The pedestrian walkway continues to slide to the right and is likely going to complete late August NEPL Improvements (5) 18 3,616 496 (3,121) -629.6% 2021. Additionally, issues with control systems and smoke control have caused delays to the IAF Concourse C New Power Center (6) 1,181 5,253 2,961 (2,292) -77.4% building. Potential COVID impact payment settlement Terminal Security Enhancements (7) 63 1,721 3,479 1,758 50.5% (5) Increased scope via approved DCD's A12A Jet Bridge (8) - 509 2,227 1,718 77.2% (6) Construction accelerated by 6 months SAMP Near Term Planning (9) 171 3,672 5,025 1,354 26.9% (7) Previous procurement cancelled, cashflow per anticipated DB schedule C1 Building Floor Expansion (10) 108 7,487 8,763 1,277 14.6% (8) Still in Planning Mode have not drilled on the Schedule Checkpoint 1 Relocation (11) 63 3,111 1,954 (1,158) -59.3% N. Terminals Utilities Upgrade (12) 4,200 7,273 8,399 1,126 13.4% (9) Continued scoping and analysis extended to gain better information deferring spending Parking Garage Elevators Moder (13) 870 2,932 3,942 1,011 25.6% (10) Commission Authorization delays, due to re-evaluating financial impacts with COVID-19. Checked Bag Recap/Optimization 15,089 86,289 86,100 (189) -0.2% (11) 2020 'Plan' based on a 'Hot' project, but then requested to be 'slowed', due to COVID-19. All Other 14,411 176,475 192,151 15,676 8.2% Subtotal 92,329 506,258 533,180 26,922 5.0% (12) Phase 1 is coming in under budget; Savings will be used to fund Phase 2 CIP Cashflow Mgmt Reserve - (38,164) (41,978) (3,814) 9.1% Total Spending 92,329 468,094 491,202 23,108 4.7% (13) A protracted delay in AE contract negotiations resulted in slower than anticipated design costs. Forecast spen ding variances primarily due to COVID-19 impact 63 Maritime Division Appendix Q1 2021 Financial Performance Report Q1 2021 Maritime Achievements Recreational Boating Conducted satisfaction survey in response to COVID-19 business disruptions with 26% of the customers responding. Team received overwhelmingly favorable results. Customers noted the challenges and appreciation for quick transitions & excellent customer service. Elliott Bay Fishing and Commercial Operations - Coordinated with Discovery Health MD to ensure COVID testing and administering of vaccinations could take place at Terminal 91 for Maritime Professionals. Ship Canal Fishing & Operations Fishermen's Terminal, Salmon Bay Marina and Maritime Industrial Center earned Clean Marina Certification from Puget Soundkeeper. Maritime Portfolio Management Entered into negotiations for new tenant at Maritime Industrial Center. Stormwater Utility The strategic plan draft was reviewed by stakeholders and is close to being finalized. M oving programs forward, adapting to COVID-19 65 Maritime Environmental & Sustainability Achievements Adopted the NW Ports Clean Air Strategy and made progress on the Maritime Climate and Air Action Plan. Completed 2019 emissions inventory. Completed report on Maritime and EDD solar installations and next steps. Developed scope and contract with NREL for power studies at T91. Completed T5 pile net tie off and the Centennial Park net pen project. Significant progress on the T117 construction. Proposed Mitigation Bank public comment process complete. Completed sustainable evaluation framework reviews on capital projects. Supported T5 redevelopment priorities. S trong Q1 results in Environmental & S ustainability programs 66 Maritime 2021 Financial Forecast Summary Fav (UnFav) Incr (Decr) 2019 2020 2021 2021 Fcst vs. Budget Change from 2020 Revenue Variance from Budget Variance Grain terminal experiencing higher $ in 000's Actual Actual Forecast B udg e t $ % $ % Ship Canal Fishing & Operations 3,929 4,704 4,135 4,135 0 0% (569) -12% volumes than expected. Elliott Bay Fishing & Commercial Operations 6,095 5,752 4,509 4,509 0 0% (1,243) -22% Maritime Portfolio Management Recreational Boating 12,484 12,611 12,915 12,915 0 0% 304 2% Cruis e 22,410 3,824 8,558 8,558 0 0% 4,734 124% vacancies at Maritime Industrial Gra in 4,266 5,142 5,203 4,903 300 6% 61 1% Center and Fishermen's Terminal Maritime Portfolio Management 10,108 10,074 10,034 10,259 (225) -2% (40) 0% Other (3) 4 0 0 0 NA (4) -100% planned for first half of 2021. Total Revenue 59,289 42,111 45,355 45,280 75 0% 3,244 8% Expenses Expense Variance from Budget Maritime (Excl. Maint) 13,789 16,256 15,539 15,539 0 0% (717) -4% Economic Development 4,987 4,511 5,365 5,365 0 0% 854 19% Support services - Change is Total Direct 18,776 20,767 20,904 20,904 0 0% 137 1% Maintenance allocation methodology Maintenance Expenses 12,186 12,029 11,295 11,595 300 3% (734) -6% partially offset by expedited Project Envir Services & Planning 2,250 2,739 2,140 2,140 0 0% (598) -22% Seaport Finance & Cost Recovery 835 937 977 977 0 0% 40 4% Management hires. Seaport Project Management 175 1,061 416 316 (100) -32% (644) -61% Central services deeper reductions in Total Support Services 15,446 16,765 14,828 15,028 200 1% (1,937) -12% External Relations and Police. IT 2,685 2,719 2,838 2,853 15 1% 120 4% Police Expenses 4,086 2,865 3,079 3,118 39 1% 213 7% External Relations 1,564 1,200 1,050 1,347 297 22% (150) -13% Other Central Services 5,810 5,596 6,773 6,749 (24) 0% 1,177 21% Aviation Division / Other 278 315 243 243 0 0% (72) -23% Total Central Services / Other 14,423 12,695 13,984 14,311 327 2% 1,288 10% Total Expense 48,644 50,228 49,716 50,243 527 1% (512) -1% NOI Before Depreciation 10,644 (8,117) (4,361) (4,963) 602 12% 3,755 46% Depreciation 17,627 17,624 16,899 16,899 0 0% (725) -4% NOI After Depreciation (6,982) (25,741) (21,260) (21,862) 602 3% 4,480 17% 67 Maritime 2021 YTD Financial Summary Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 Variance $ in 000's Actual Actual Actual B udg e t $ % $ % Ship Canal Fishing & Operations 1,014 1,082 1,067 1,056 11 1% (15) -1% Elliott Bay Fishing & Commercial Operations 1,277 1,418 1,136 1,131 5 0% (283) -20% Recreational Boating 3,119 3,134 3,125 3,152 (27) -1% (9) 0% Cruis e 43 114 48 1,092 (1,044) -96% (66) -58% Gra in 1,434 1,048 1,719 1,421 298 21% 671 64% Maritime Portfolio Management 2,550 2,541 2,443 2,518 (75) -3% (98) -4% Other 5 3 1 0 1 NA (2) -67% Total Revenue 9,442 9,340 9,539 10,370 (831) -8% 199 2% Expenses Maritime (Excl. Maint) 3,304 3,724 3,576 3,837 261 7% (148) -4% Economic Development 1,215 1,314 1,059 1,769 709 40% (254) -19% Total Direct 4,520 5,038 4,635 5,606 970 17% (403) -8% Maintenance Expenses 2,229 2,671 2,357 3,091 734 24% (314) -12% Envir Services & Planning 402 447 359 533 175 33% (89) -20% Seaport Finance & Cost Recovery 267 227 237 238 1 0% 11 5% Seaport Project Management 69 43 76 81 4 6% 34 79% Total Support Services 2,967 3,387 3,029 3,943 914 23% (358) -11% IT 652 689 651 700 50 7% (39) -6% Police Expenses 881 842 722 831 110 13% (120) -14% External Relations 353 305 281 335 54 16% (24) -8% Other Central Services 849 1,340 1,549 1,609 60 4% 209 16% Aviation Division / Other 64 59 71 56 (15) -26% 11 19% Total Central Services / Other 2,799 3,236 3,273 3,532 259 7% 37 1% Total Expense 10,286 11,661 10,937 13,080 2,143 16% (724) -6% NOI Before Depreciation (844) (2,321) (1,398) (2,710) 1,312 48% 923 40% Depreciation 4,509 4,395 4,464 4,043 (421) -10% 69 2% NOI After Depreciation (5,353) (6,715) (5,862) (6,753) 891 13% 853 13% 68 Cruise Q1 Financials Fav (UnFav) Incr (Decr) Variance from Budget 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020 Revenue $1M lower due to 2021 NCL $ in 000's Actual Actual Approved Budget $ % $ % T-91 & Bell St Cruise Operations 114 7 1,083 (1,075) -99% (107) -94% lease payment timing Bell Street Vessel Operations 0 41 10 31 331% 41 10866% Outside services, promotional hosting, Total Revenue 114 48 1,092 (1,044) -96% (66) -58% equipment and allocations less than Expe nse s budget in Q1 Maritime (Excl. Maint) 1,055 1,056 1,182 125 11% 1 0% Economic Development 97 67 93 26 28% (30) -31% Total Direct 1,152 1,124 1,275 151 12% (29) -2% Variance from 2020 Revenue $100K lower at T91 due to no Maintenance Expenses 724 487 518 31 6% (237) -33% events in 2021 Envir Services & Planning 90 48 84 35 42% (42) -46% Less direct environmental & Seaport Finance & Cost Recovery 66 56 56 Seaport Project Management 12 29 24 (6) -24% 17 137% maintenance expenses in Q1 2021 Total Support Services 893 621 682 61 9% (272) -31% COVID-19 Impact to 2021 IT 170 146 157 12 7% (25) -15% Revenue to be impacted due to Police Expenses 259 180 208 27 13% (79) -30% uncertain cruise season External Relations 95 70 85 15 18% (24) -26% Other Central Services 413 402 401 (1) 0% (11) -3% Reduction in travel expenses and Port Aviation Division / Other 22 23 20 (3) -14% 1 6% Valet to mitigate revenue impacts Total Central Services / Other 958 821 871 50 6% (137) -14% Total Expense 3,004 2,565 2,828 263 9% (438) -15% NOI Before Depreciation (2,889) (2,517) (1,736) (782) -45% 372 13% Depreciation 1,531 1,497 1,428 (68) -5% (34) -2% NOI After Depreciation (4,420) (4,014) (3,164) (850) -27% 406 9% 69 Recreational Boating Q1 Financials Fav (UnFav) Inc (Dec) 2020 2021 Year-to-Date Variance from Revised Budget Budget Variance Change from 2020 $ in 000's Actual Actual B udg e t $ % $ % Revenue $26K lower due to lower guest moorage Berthage and Moorage & Concession Services 2,839 2,813 2,867 (54) -2% (26) -1% occupancy as we expected at SBM and BHM Utility Sales Revenue 174 179 137 42 30% 5 3% partially related to COVID-19 business disruptions Other Service Revenue 100 107 108 (1) -1% 8 8% Operation expenses ~$346K favorable to budget Other 22 26 39 (13) -34% 4 20% Total Revenue 3,134 3,125 3,151 (26) -1% (9) 0% YTD from $300K favorable in Maintenance Expenses expenses and $71K favorable in Central Services Maritime (excl Maint) 1,137 1,259 1,219 (40) -3% 122 11% allocations, offset by $40K unfavorable in Economic Development 55 51 72 21 29% (4) -6% Maritime direct charges which relate to salaries & Total Direct 1,192 1,310 1,291 (19) -1% 118 10% benefits and supplies. Maintenance Expenses 538 543 844 300 36% 5 1% Envir Services & Planning 107 77 77 0 0% (30) -28% Seaport Finance & Cost Recovery 47 55 55 0 0% 8 16% Seaport Project Management 9 24 17 (7) -40% 15 166% Total Suport Service 702 700 993 293 30% (2) 0% Variance from 2020 IT 181 177 189 12 6% (4) -2% Revenue $9K lower due to slightly lower Police Expenses 185 178 205 27 13% (8) -4% External Relations 67 69 82 13 16% 2 3% occupancy Other Central Services 293 372 395 22 6% 79 27% Operation expenses ~$188K increase in 2021 due Aviation Division/Other 12 15 13 (3) -22% 3 25% to by $129K increase in Maritime (excluding Total Central Services/Other 739 811 883 71 8% 72 10% Maintenance) expenses, $72K increase in Central Total Expense 2,633 2,821 3,167 346 11% 188 7% Services; and offset by $10K decrease in support NOI Before Depreciation 501 304 (15) (319) 2080% (197) -39% Depreciation 690 815 620 (195) -31% 124 18% services NOI After Depreciation (189) (511) (635) 124 -20% (321) 170% Includes Shilshole Bay Marina, Bell Harbor Marina, and Harbor Island Marina. 70 Ship Canal Fishing & Ops Q1 Financials Fav (UnFav) Inc (Dec) 2020 2021 Year-to-Date Variance from Budget Budget Variance Change from 2020 $ in 000's Actual Actual B udg e t $ % $ % Revenue $11K favorable to the budget mainly related to Berthage and Moorage & Concession Services 944 928 947 (19) -2% (16) -2% favorable Utility Sales revenue Space Rental 59 43 48 (5) -11% (16) -28% Operation expenses ~$212K favorable to the budgeted Utility Sales Revenue 49 64 27 37 140% 15 30% YTD contributed by $87K favorable in Maritime direct Other 29 32 35 (2) -7% 3 12% Total Revenue 1,082 1,067 1,056 11 1% (15) -1% charges, $80K favorable in Maintenance, $40K Expenses favorable in Central Services due to lower allocation Maritime (excl Maint) 702 576 663 87 13% (126) -18% Economic Development 13 13 18 5 29% (0) -1% Total Direct 714 588 680 92 14% (126) -18% Maintenance Expenses 404 389 470 80 17% (14) -4% Envir Services & Planning 46 58 55 (3) -6% 12 26% Variance from 2020 Seaport Finance & Cost Recovery 19 25 25 0 0% 6 31% Revenue $15K or 1% lower contributed to shorter Seaport Project Management 4 6 9 3 34% 1 26% Total Suport Service 473 478 558 80 14% 5 1% Ballard Lock closures period in 2021 compared it to IT 83 90 103 13 13% 7 9% 2020 Police Expenses 73 79 92 12 13% 7 9% Operation expenses ~$42K decrease in 2021 related to External Relations 26 31 37 6 16% 4 17% $120K decrease in Maritime direct charges related to Other Central Services 108 166 178 12 7% 58 54% Aviation Division/Other 4 7 4 (2) -51% 3 69% Bad Debt expenses adjustment and Equipment Total Central Services/Other 294 373 413 40 10% 79 27% expense, offset by $79K increase in Central Services Total Expense 1,481 1,439 1,652 212 13% (42) -3% allocation NOI Before Depreciation (400) (372) (596) 224 -38% 28 -7% Depreciation 571 591 566 (25) -4% 20 3% NOI After Depreciation (971) (963) (1,161) 198 -17% 8 -1% Includes Fishermen's Terminal, Maritime Industrial Center, and Salmon Bay Marina. 71 Elliott Bay Fishing & Commercial Ops Q1 Financials Fav (UnFav) Inc (Dec) 2020 2021 Year-to-Date Budget Variance Change from 2020 Variance from Budget $ in 000's Actual Actual B udg e t $ % $ % Revenue $5K favorable Berthage and Moorage & Dockage 788 624 582 42 7% (165) -21% Operation expenses ~$246K favorable to the budgeted Space Rental 382 366 381 (14) -4% (15) -4% YTD. Utility expenses contributed $187K of the Utility Sales Revenue 121 96 130 (34) -26% (25) -21% favorable Other 127 49 38 12 31% (78) -61% Total Revenue 1,418 1,136 1,131 5 0% (283) -20% Expenses Maritime (excl Maint) 706 546 721 176 24% (160) -23% Economic Development 35 85 77 (7) -9% 49 139% Total Direct 741 630 799 168 21% (111) -15% Maintenance Expenses 323 287 317 30 9% (36) -11% Variance from 2020 Envir Services & Planning 63 37 49 11 23% (25) -41% Revenue $283K or 20% lower primarily due to shorter Seaport Finance & Cost Recovery 30 33 33 (1) -2% 4 12% Ballard Lock closure in 2021 Seaport Project Management 5 5 10 5 47% 0 9% Total Suport Service 420 363 408 46 11% (57) -14% Operation expenses ~$157K decrease in 2021 IT 90 85 93 9 9% (5) -6% contributed by $156K decrease in Maritime direct Police Expenses 102 87 100 13 13% (15) -14% charges related to $134K decrease in Utilities and $33K External Relations 37 35 41 6 16% (2) -6% decrease in Bad Debt expenses and $61K lower Other Central Services 159 190 196 6 3% 32 20% Aviation Division/Other 5 7 5 (2) -39% 1 24% expenses in Support service Total Central Services/Other 392 403 436 33 7% 11 3% Total Expense 1,554 1,397 1,643 246 15% (157) -10% NOI Before Depreciation (135) (261) (512) 251 -49% (125) 93% Depreciation 835 825 776 (49) -6% (10) -1% NOI After Depreciation (971) (1,086) (1,288) 202 -16% (115) 12% Includes Terminal 91 (waterside non-Cruise), Terminal 46 Docks, Kellogg Island, Terminal 25, Terminal 18 Dolphins, Pier 69 Vessels, Pier 28 Docks, Pier 34 Dolphins, Pier 2 Docks, and Terminal 108 Moorage. 72 Maritime Portfolio Management Q1 Financials Fav(UnFav) Budget Incr/(Decr) Variance from Budget 2020 YTD 2021 Year-to-Date Variance Change from 2020 Revenue $75K unfavorable to budget due $ in 000's Actual Actual Budge t $ % $ % Marina Office & Retail 925 795 986 (192) -19% (131) -14% to lower than anticipated space rental Maritime Industrial 1,033 1,059 1,019 40 4% 26 3% revenue from MIC mainly Bristol Wave. Utilities 583 590 513 77 15% 7 1% Expenses $877K lower than budget due to Total Revenue 2,541 2,443 2,518 (75) -3% (98) -4% favorable utilities, outside services, and PM Direct 943 717 1,380 663 93% (226) -24% maintenance expenses. EDD PM Direct 74 74 73 (0) 0% (1) -1% EDD Other 86 42 44 1 3% (43) -51% MD Direct 98 109 86 (23) -21% 11 11% Variance from 2020 Total Direct 1,202 942 1,583 641 68% (260) -22% Revenue down $98K due to lower than Maintenance Expenses 602 589 746 158 27% (13) -2% prior year space rental revenue from MIC Enviromental & Sustainability 59 46 63 17 38% (13) -23% mainly Kirby. Seaport Finance & Cost Recovery 52 57 58 1 2% 4 8% Seaport Project Management 8 9 16 7 71% 1 14% Expenses down $254K or 10% due to Total Support Services 722 701 884 183 26% (21) -3% lower than prior year utilities and Police Expenses 174 160 184 24 15% (14) -8% maintenance expense. Other Corp Expenses 512 553 581 28 5% 41 8% Total Central Services/Other 686 713 765 53 7% 27 4% COVID-19 Impact to 2021 Total Expense 2,610 2,355 3,232 877 37% (254) -10% NOI Before Depreciation (69) 88 (714) 802 112% 157 228% Expense projects either delayed or Depreciation 629 641 577 (63) -10% 11 2% cancelled. NOI After Depreciation (698) (553) (1,291) 738 57% 145 21% Includes uplands of Shilshole Bay Marina, Terminal 91 (Industrial), Fishermen's Terminal, Maritime Industrial Center, Salmon Bay Marina, T-115, T-108, and T-106. 73 Grain Terminal Q1 Financials Fav (UnFav) Incr (Decr) Variance from Budget 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 Variance Revenue on tracking ahead of budget $ in 000's Actual Actual B udg e t $ % $ % with large corn volumes in March Lease Revnue 1,048 1,719 1,421 298 21% 671 64% Expenses tracking lower than budget Total Revenue 1,048 1,719 1,421 298 21% 671 64% Expenses due to change in maintenance Maritime (Excl. Maint) 43 48 38 (10) -26% 4 10% allocation policy. Economic Development 12 11 12 1 7% (1) -12% Total Direct 56 59 49 (9) -19% 3 5% Variance from 2020 Maintenance Expenses 49 54 185 131 71% 5 9% Revenue and volumes up from 2020 YTD Envir Services & Planning 16 10 14 4 29% (6) -35% with 9 additional vessel calls and 147K Seaport Finance & Cost Recovery 12 12 12 0 0% (1) -6% Seaport Project Management 2 2 3 0 17% (0) -2% increase in metric tons. Total Support Services 80 78 214 136 64% (2) -2% IT 25 21 20 (1) -5% (4) -17% Police Expenses 49 37 43 6 13% (11) -23% External Relations 18 14 17 3 15% (3) -17% Other Central Services 76 77 82 5 7% 1 1% Aviation Division / Other 2 2 2 (0) -3% (0) -11% Total Central Services / Other 169 151 164 12 8% (18) -11% Total Expense 304 288 427 139 33% (17) -5% NOI Before Depreciation 744 1,431 994 437 44% 688 92% Depreciation 134 93 72 (20) -28% (41) -31% NOI After Depreciation 610 1,338 922 417 45% 729 120% 74 Maritime Capital 2021 2021 YTD 2021 2021 Budget Variance T91 Northwest Fender Construction bid well under $ in 000's Actual Fore cas t Budge t $ % T117 Restoration 729 8,359 8,809 450 5% Engineer's Estimate. Have reduced forecast accordingly. T91 Northwest Fender 51 6,131 7,761 1,630 21% MD Small Projects 295 3,816 5,548 1,732 31% FT Maritime Innovation Center Total project cost updated MD Fleet 0 260 1,036 776 75% on 2/1 based on 60% Construction. FT Maritime Innovation Center 90 768 1,475 707 48% T91 Berth 6&8 Redev 131 839 1,025 186 18% P91 Pass Term Upgrade COV 1 230 1,000 770 77% MD Fleet Delays in micro processors and raw materials are P66 Shore Power 74 714 765 51 7% causing worldwide delays in producing new fleet assets. This SBM Restrms/Service Bldgs Rep 178 378 665 287 43% FT Gateway Building 175 446 600 154 26% trend is expected to continue into 2022 as production of vital All Other Projects 370 (662) (2,489) (1,827) 73% components catches up. Total Maritime 2,094 21,279 26,195 4,916 19% MD Small Projects P66 Cruise Wall Protection was deferred out to 2022. T91 Upland Lighting Improvements and HIM Operational Facility Cameras have a larger amount of spending pushed out to 2022. T91 Cruise Wayfinding Signage was moved out of the small CIP and into Cruise Upgrades COVID19. 75 Economic Development Division Appendix Q1 2021 Financial Performance Report Q1 2021 EDD Program Advancements Portfolio Management maintained 95% occupancy across real estate portfolio despite ongoing COVID - 19 pandemic challenges. Real Estate Development finished a new strategic plan to guide Port development projects and initiatives. Staff is also advancing development work on the Maritime Innovation Center, and T91 Uplands light industrial facilities. Diversity in Contracting - The Northwest Mountain Minority Supplier Development Council named the Port of Seattle as its Public Agency of the Year. Tourism Awarded 23 Tourism Marketing grants. Working with WA Tourism Alliance to implement statewide tourism recovery initiative. Economic Development and Innovation Staff is working to execute 25 contracts with City's participating in the Port's economic development grant program. Staff is also supporting Greater Seattle Partners' Economic Recovery plan development and WA Maritime Blue's 2 nd Maritime innovation accelerator. 77 EDD 2021 Yr.-End Financial Forecast Fav (UnFav) Incr (Decr) Revenue Variance from Budget 2019 2020 2021 2021 Fcst vs. Budget Change from 2020 Variance Lower Parking Revenues at $ in 000's Actual Actual Forecast B udg e t $ % $ % Bell Street Garage Revenue 8,912 7,808 8,213 8,313 (100) -1% 405 5% Updated Conference and Event Conf & Event Centers 12,239 1,662 4,435 5,035 (600) -12% 2,773 167% Total Revenue 21,151 9,470 12,648 13,348 (700) -5% 3,178 34% volumes, lower than originally Expenses expected. Portfolio Management 3,732 3,073 3,401 3,401 0 0% 327 11% Conf & Event Centers 10,218 4,440 4,420 4,920 500 10% (19) 0% P69 Facilities Expenses 215 232 222 222 0 0% (11) -5% Expense Variance Budget RE Dev & Planning 136 209 154 154 0 0% (55) -26% Reduction in Conference and EconDev Expenses Other 930 938 635 835 200 24% (303) -32% Maintenance Expenses 3,145 3,042 3,027 2,537 (490) -19% (15) 0% Event center volumes driving Maritime Expenses (Excl Maint) 1,070 1,035 1,060 1,060 0 0% 24 2% reduced variable expenses. Total EDD & Maritime Expenses 19,448 12,969 12,918 13,128 210 2% (52) 0% Change in the Maintenance Diversity in Contracting 152 103 142 142 0 0% 39 38% Tourism 1,337 954 2,481 2,481 0 0% 1,527 160% allocation methodology EDD Grants 785 778 1,060 1,060 0 0% 282 36% Total EDD Initiatives 2,274 1,834 3,683 3,683 0 0% 1,848 101% Environmental & Sustainability 24 44 27 31 4 13% (17) -39% Police Expenses 61 64 206 209 3 1% 143 225% Other Central Services 5,234 5,539 4,012 4,242 230 5% (1,527) -28% Aviation Division 114 161 120 120 0 0% (41) -25% Total Central Services & Aviation 5,433 5,808 4,366 4,603 237 5% (1,442) -25% Envir Remed Liability 0 0 0 0 0 NA 0 NA Total Expense 27,155 20,611 20,966 21,413 447 2% 355 2% NOI Before Depreciation (6,004) (11,141) (8,318) (8,065) (253) -3% 2,823 25% Depreciation 3,647 3,611 3,216 3,216 0 0% (395) -11% NOI After Depreciation (9,651) (14,753) (11,534) (11,281) (253) -2% 3,219 22% 78 EDD 2021 YTD Financial Detail Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 Variance $ in 000's Actual Actual Actual B udg e t $ % $ % Revenue 2,155 2,163 1,875 1,969 (94) -5% (288) -13% Conf & Event Centers 2,519 1,115 127 468 (341) -73% (988) -89% Total Revenue 4,674 3,277 2,002 2,436 (434) -18% (1,275) -39% Expenses Portfolio Management 932 899 839 779 (60) -8% (60) -7% Conf & Event Centers 2,276 1,557 545 850 305 36% (1,012) -65% P69 Facilities Expenses 51 55 47 57 10 18% (9) -15% RE Dev & Planning 25 41 48 38 (10) -27% 7 18% EconDev Expenses Other 157 291 187 258 71 28% (104) -36% Maintenance Expenses 716 635 847 600 (247) -41% 213 33% Maritime Expenses (Excl Maint) 276 244 235 264 29 11% (9) -4% Total EDD & Maritime Expenses 4,434 3,722 2,748 2,847 99 3% (974) -26% Diversity in Contracting 47 25 26 30 4 13% 1 4% Tourism 194 207 167 235 68 29% (40) -19% EDD Grants (54) (57) (21) 38 58 156% 36 -63% Total EDD Initiatives 187 175 172 302 130 43% (3) -2% Environmental & Sustainability 10 8 5 6 2 27% (3) -41% Police Expenses 45 58 48 56 7 13% (9) -16% Other Central Services 1,160 1,244 1,041 1,034 (7) -1% (203) -16% Aviation Division 27 29 35 30 (5) -16% 5 18% Total Central Services & Aviation 1,241 1,339 1,129 1,127 (2) 0% (210) -16% Envir Remed Liability 0 0 0 0 0 NA 0 NA Total Expense 5,862 5,236 4,049 4,277 228 5% (1,187) -23% NOI Before Depreciation (1,187) (1,959) (2,047) (1,840) (207) -11% (88) -4% Depreciation 918 909 958 758 (200) -26% 49 5% NOI After Depreciation (2,105) (2,867) (3,005) (2,598) (407) -16% (137) -5% 79 Portfolio Management Q1 Financials Fav(UnFav) Budget Incr/(Decr) Variance from Budget 2020 YTD 2021 Year-to-Date Variance Change from 2020 $ in 000's Actual Actual Budge t $ % $ % Revenue unfavorable to budget due to Conference & Central Harbor 1,705 1,509 1,582 (73) -5% (195) -13% Events Centers' revenue decline as a result of the on- T-91 Uplands 453 361 382 (21) -6% (92) -26% going COVID-19 restrictions on meetings and events. Conference & Events Centers 1,115 127 468 (341) -73% (988) -778% Expenses lower than budget due to lower BHICC Foreign Trade Zone 5 5 5 0 0% 0 0% Total Revenue 3,277 2,002 2,436 (434) -18% (1,275) -64% volumes. PM Outside Services 109 238 107 (131) -122% 129 54% PM Direct 2,349 1,146 1,522 377 25% (1,203) -105% Variance from 2020 EDD Other 414 308 410 102 25% (106) -35% Conference & Events Centers (BHICC & WTCS) MD Direct 72 78 77 (1) -1% 6 8% Total Direct 2,943 1,769 2,117 347 16% (1,174) -66% revenue significantly declined due to the on-going Maintenance Expenses 635 847 600 (248) -41% 213 25% COVID-19 restrictions on meetings and events. Enviromental & Sustainability 43 36 66 31 47% (7) -21% Washington State re-opening phases are moving Seaport Finance & Cost Recovery 115 104 104 (1) -1% (11) -10% slower than anticipated. Seaport Project Management 14 17 17 (1) -3% 3 17% Total Support Services 807 1,005 787 (218) -28% 198 20% Expenses down from BHICC volumes. Police Expenses 58 48 56 7 13% (9) -19% Other Corp Expenses 1,151 1,056 1,064 9 1% (95) -9% COVID-19 Impact to 2021 Total Central Services/Other 1,209 1,104 1,120 16 1% (105) -9% Total Expense 4,959 3,878 4,023 146 4% (1,081) -28% Loss of revenues from BHICC & WTCS due to the on- NOI Before Depreciation (1,681) (1,876) (1,587) (289) -18% (194) -10% going COVID-19 restrictions on meetings and events. Depreciation 908 957 758 (199) -26% 49 5% Expense projects either delayed or cancelled. NOI After Depreciation (2,589) (2,833) (2,345) (488) -21% (244) -9% Includes non-alliance & upland real-estate at Tsubota, T-91 (General), T-86, P-69, Bell Street Garage, Smith Cove Conference Center, Bell Harbor International Conference Center, World Trade Center, Foreign Trade Zone, Pier 2, T-34, and T-102. 80 EDD Capital 2021 BHICC Modernization Project has encountered 2021 YTD 2021 2021 Budget Variance Actual Fore cas t Budge t unforeseen site conditions, additional effort $ % $ in 000's required to execute change orders. BHICC Interior Modernization 104 1,139 1,990 851 43% P69 Underdock Utility Rpl 54 414 1,028 614 60% P69 Under Dock Utility Replacement Design CW Bridge Elev Modernization 29 943 943 0 0% WTC HVAC Replacement 23 848 848 0 0% delayed due to the need for a two steps design T91 Uplands Dev Phase 1 69 658 800 142 18% and construction authorization approvals rather P66 Roof Upgrades 35 544 544 0 0% than the one step construction authorization EDD Small Projects 9 554 522 (32) -6% that was previously assumed. Tenant Improvements -Capital 0 58 289 231 80% EDD Technology Projects 0 250 250 0 0% P66 HVAC Systems Upgrade 0 170 185 15 8% T-91 Upland Development Decrease in All Other Projects 2 (974) (1,752) (778)0 44%N projected spending for 2021 due to the need to Total Economic Development 325 4,604 5,647 1,043 18% procure new Service Agreement for Professional Design Services, after terminating contract with former design consultant . Design can resume after the new contract is executed, in Q4 2021. 81 Central Services Appendix Q1 2021 Financial Performance Report Central Services Business Events Awarded fourteen South King County Fund Environmental Grants to the six Highline cities. Obtained the Commission approval for Job and Economic Resource Center as part of the Duwamish Valley Community Equity Program. The Port, City of Seattle, and Sound Transit agreed to jointly fund $1.7M to support construction worker training, placement and other services for residents of economically distressed communities, people of color and women. Hosted a 4-part caucusing series and its first town hall that featured updates about the Port's Racial Bias & Equity Motion, Port-wide Change Team, and OEDI's plans for 2021. Hosted an Engineering Career Workshop for Highline School District high school students in March. Maritime Core Plus Curriculum and Framework is now available for adoption by school districts state-wide. (The Port invested the initial funding for the Manufacturing Industrial Council to create the curriculum in 2016). Conducted a Cyber Disruption Summit focusing on employee awareness on the emerging threats. 83 Central Services Expense by Category Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Act/Bud Change from 2020 $ in 000's Actual Actual Actual Budge t $ % $ % Salaries & Benefits 31,973 35,987 35,317 35,790 474 1.3% (670) -1.9% Wages & Benefits 31,457 34,133 31,551 32,623 1,072 3.3% (2,582) -7.6% Payroll to Capital Projects 5,673 6,497 6,398 7,949 1,551 19.5% (99) -1.5% Outside Services 17,698 20,420 19,135 23,660 4,525 19.1% (1,285) -6.3% Utilitie s 6,555 6,871 6,658 6,559 (99) -1.5% (213) -3.1% Equipment Expense 2,014 2,160 1,248 1,713 465 27.2% (913) -42.2% Supplies & Stock 2,898 2,503 2,127 2,368 241 10.2% (376) -15.0% Travel & Other Employee Expenses 905 1,101 445 744 299 40.1% (656) -59.6% Third Party Mgmt Op Exp 3,042 2,445 886 1,386 500 36.1% (1,559) -63.8% B&O Taxes 1,068 1,086 764 854 90 10.5% (322) -29.7% Other Expenses 4,666 3,989 2,270 2,605 335 12.9% (1,719) -43.1% Charges to Capital Projects/Overhead Alloc (11,221) (13,602) (11,933) (14,819) (2,886) 19.5% 1,669 -12.3% TOTAL 96,729 103,591 94,866 101,431 6,566 6.5% (8,726) -8.4% Payroll savings due to staff vacancies. Wages favorable due to lower overtime for Police due to cancellation of cruise season and Police vacancies. Outside Services favorable to budget due to spending delays. Charges to Capital unfavorable to budget due to delay of some capital projects. 84 Central Service Year End Financial Forecast Fav (UnFav) Incr (Decr) 2019 2020 2021 2021 Actual vs. Budget Change from 2020 Variance $ in 000's Actual Actual Fore cas t Budge t $ % $ % Total Operating Revenues 1,282 2,512 1,129 181 948 524.1% (1,383) -55.1% Core Central Support Services 76,059 80,841 83,982 85,678 1,696 2.0% 3,140 3.9% P olic e 27,793 27,538 27,968 28,317 349 1.2% 430 1.6% Engineering/PCS 10,038 9,096 9,680 9,199 (481) -5.2% 584 6.4% Total Operating Expenses 113,891 117,476 121,629 123,194 1,565 1.3% 4,154 3.5% 85 Central Services Capital Spending 2021 2021 2021 Budget Variance YTD Year-End Budget $ % $ in 000's Actual Fore cas t Infrastructure - Small Cap 272 1,911 1,911 0 0.0% Services Tech - Small Cap 173 1,166 1,226 60 4.9% Radio System Upgrade 1,844 2,455 2,955 500 16.9% Office Wi-Fi Refresh 0 1,350 1,350 0 0.0% Phone System Upgrade 21 840 840 0 0.0% Environmental MIS projects 0 600 600 0 0.0% CDD Fleet Replacement 170 803 1,123 320 28.5% Corporate Fleet Replacement 0 685 685 0 0.0% Other (note 1) 185 1,904 1,968 64 3.3% Subtotal 2,665 11,714 12,658 944 7.5% CIP Cashflow Adjustment 0 (3,000) (3,000) 0 0.0% TOTAL 2,665 8,714 9,658 944 9.8% Note: (1) "Other" includes remaining ICT projects and small capital projects/acquisitions. 86 Portwide Appendix Q1 2021 Financial Performance Report Non-Airport Financial Summary Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 Variance $ in 000's Actual Actual Actual Budge t $ % $ % NWSA Distributable Revenue 12,986 10,730 11,343 10,568 775 7.3% 613 5.7% Maritime Revenues 9,442 9,340 9,539 10,370 (831) -8.0% 199 2.1% EDD Revenues 4,674 3,277 2,002 2,436 (434) -17.8% (1,275) -38.9% SWU & Other 1,280 1,966 1,774 936 838 89.5% (192) -9.7% Total Operating Revenues 28,382 25,313 24,658 24,311 348 1.4% (655) -2.6% Total Operating Expenses 17,513 18,425 16,778 20,155 3,377 16.8% (1,648) -8.9% NOI before Depreciation 10,869 6,888 7,881 4,156 3,725 89.6% 993 14.4% Depreciation 9,852 9,423 9,510 8,814 (696) -7.9% 87 0.9% NOI after Depreciation 1,017 (2,535) (1,630) (4,658) 3,029 -65.0% 906 -35.7% Non-Airport Operating Revenue higher than budget by $348K due to Grain, NWSA Distributable Revenues, and unbudgeted Police Revenues offset by less revenues from Cruise and Conference & Event Centers. Expenses are $3.4M lower than budget due cost savings measures which include hiring freeze, delay in implementing program initiatives, and travel and other employee expenses. 88 Port Wide Operating Revenues Summary 89 Port Wide Operating Expense Summary Fav (UnFav) Incr (Decr) 2019 YTD 2020 YTD 2021 YTD 2021 YTD Act/Bud Change from 2020 $ in 000's Actual Actual Actual Budge t $ % $ % Salaries & Benefits 31,973 35,987 35,317 35,790 474 1.3% (670) -1.9% Wages & Benefits 31,457 34,133 31,551 32,623 1,072 3.3% (2,582) -7.6% Payroll to Capital Projects 5,673 6,497 6,398 7,949 1,551 19.5% (99) -1.5% Outside Services 17,698 20,420 19,135 23,660 4,525 19.1% (1,285) -6.3% Utilitie s 6,555 6,871 6,658 6,559 (99) -1.5% (213) -3.1% Equipment Expense 2,014 2,160 1,248 1,713 465 27.2% (913) -42.2% Supplies & Stock 2,898 2,503 2,127 2,368 241 10.2% (376) -15.0% Travel & Other Employee Expenses 905 1,101 445 744 299 40.1% (656) -59.6% Third Party Mgmt Op Exp 3,042 2,445 886 1,386 500 36.1% (1,559) -63.8% B&O Taxes 1,068 1,086 764 854 90 10.5% (322) -29.7% Other Expenses 4,666 3,989 2,270 2,605 335 12.9% (1,719) -43.1% Charges to Capital Projects/Overhead Alloc (11,221) (13,602) (11,933) (14,819) (2,886) 19.5% 1,669 -12.3% TOTAL 96,729 103,591 94,866 101,431 6,566 6.5% (8,726) -8.4% Payroll expenses were $3.1M below budget primarily due to vacant positions. Outside Services were $4.5M favorable to budget due to project delays. Travel & Other Employee Expenses were $299K lower than budget due to cutting/eliminating non-essential business travel and training. Charges to Capital Projects were lower by ($2.9M) due to delays in Capital Projects 90 Port Wide Net Operating Income Performance Operating Revenues are expected to be $90.1M unfavorable to the budget due to reduced operations and lower airline activity. Total Operating expenses are expected to be $1.8M below budget due to: o Payroll due to vacancies o Outside Services o General Expenses 91 Port Wide Capital Spending Summary 2021 2021 2021 Budget Variance $ in 000's YTD Actual Forecast Budget $ % Aviation 92,329 468,094 491,202 23,108 4.7% Maritime 2,094 21,279 26,195 4,916 18.8% Economic Development 325 4,604 5,647 1,043 18.5% Central Services & Other (note 1) 4,047 12,892 13,605 713 5.2% TOTAL 98,795 506,869 536,649 29,781 5.5% Note: (1) "Other" includes 100% Port legacy projects in the North Harbor and Storm Water Utility Small Capital projects. 92
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