11a. Presentation - Q2 2021 Financial Performance Briefing
Item No. 11a_supp
Meeting Date: August 10, 2021
Port of Seattle
Q2 2021 Financial Performance Report
Commission Meeting
Key Highlights
Prudent budgeting and careful cost management has positioned the Port well for
2021 despite the major disruption caused by the pandemic
Higher passenger projection than the budget and substantial federal relief funds
have improved the financial outlook for the Aviation division
The first revenue cruise departed at Smith Cove Cruise Terminal in mid-July.
Expecting a total of the 83 cruise sailings this season
Currently projecting operating expenses to be closely on track with budget on a
full-year basis
Still facing uncertainty due to COVID variants; staff continues to closely monitor
very dynamic business conditions
Continuing to support investments aimed at regional economic recovery
2
Aviation Division
2021 Q2 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 38.3
26%
compared
Forecast Improving vs. 2019: to 2019
2021 Budget: -30%
December FCST: -34%
Current FCST: -26%
90% growth
vs. 2020
4
Keys to Financial Results: Increased Federal Relief
Business Highlights
Forecast Budget
Figures in $000s YE 2021 YE 2021 Variance Higher than expected passenger levels,
Revenues new forecast is 26% lower than 2019
Aeronautical 300,332 386,668 (86,336)
Non-Aeronautical 166,133 189,548 (23,414) Increased federal relief improves bottom
Total Revenues 466,465 576,215 (109,750) line, helps customers:
O&M expense 341,260 339,908 (1,353) $37 million for CRRSAA
NOI 125,205 236,308 (111,103)
Federal Relief 161,601 37,899 123,702 $154 million for ARPA
Federal Relief (Concessions) 26,774 26,774 $26.7 million for tenant concessions
NOI (After Federal Relief) 313,579 274,207 39,373 relief (CRRSAA and ARPA)
Key Measures Current plan: reserve $75 million for
Non-Aero NOI (in $000s) 86,046 82,742 3,304 2022
CPE ($) 13.97 19.62 5.65
Debt Service Coverage 2.70 1.36 1.34 Mid-year airline rate adjustment made
effective July 1
Other Information
ADF Balance 391M 340M 51M Implemented virtual queuing pilot
Capital Spending (in $000s) 456,620 491,202 34,582 program ("Spot Saver") for security
checkpoints
6
Operating Expenses Summary (YTD)
$8.2M or 4.9% Favorable
Underspend in Outside Services of $4.8M across multiple business areas - Charges from Other Divisions
$2M, Other Expenses $900k, and Utilities $700k.
7
Operating Expenses Summary (YE Forecast)
$1.4M or <0.40% Unfavorable
Major Drivers:
Net Increase in O&M is driven by primarily by the Snow Removal Costs in Q1 ($2.2M)
Increase above is partially offset by savings from Other Divisions of $256K
Forecast includes approx. $5.8M in approved Contingency Requests
Not in Forecast Potential Additional Unfreezing of FTEs this year to start 10/1/2021
8
Aero Rate Base Revenue Requirements
Forecasting Relief of $107.8M
(CARES, CRRSAA & ARPA)
Forecasted Relief
$86.7M
to lower Debt
Service
Forecasted Relief
$21.1M
to lower O&M
* Airfield Commercial is excluded from Aero Rate Base
9
Aeronautical Revenue
Budget
$387M
22%
Forecast
$300M
Applied $107.8M of Federal Relief grants to offset
revenue requirements (aka costs to recover from Airlines)
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
$193M
1.8%
Budget
$189.5M
Actuals Actuals Forecast Budget % change
in 000's 2019 2020 2021 2021 vs Budget
Enplanements 25,874 10,044 19,132 18,216 5.0%
O&D % 70.2% 64.0% 70.0% 68.0%
O&D Enplanements 18,163 6,428 13,392 12,387 8.1%
12
Strategic use of Federal Relief Grants to Achieve Debt Service
Coverage Target
in $000's 2020 Actual 2021 Budget 2021 Forecast Variance
Revenues Aero revenues 2021 forecast is
Aero 297,909 386,668 300,011 (86,657) lower due to additional CRRSAA
Non-aero 116,473 189,548 166,152 (23,396) and ARPA grants not in the budget.
Total Revenues 414,382 576,216 466,163 (110,053)
O&M 329,680 339,908 341,260 (1,352) Non-aero revenues is net after the
concession rent relief.
NOI 84,702 236,308 124,903 (111,405)
Federal Relief Grants Non-op 43,257 3,500 18,492 14,992 Gross debt service forecast lower
Concession Rent Relief Grants - - 26,774 26,774 due to refunding savings.
Other net non-operating 5,604 2,542 2,543 1
Available for debt service 133,562 242,350 172,712 (69,638) Higher PFC offset available from
Debt Service the PFC backed bond refunding to
Gross debt service (net of cap i) 249,555 279,880 266,463 13,417 revenue bonds.
CFC offset (13,601) (19,159) (13,589) (5,571)
PFC offset (36,390) (47,549) (59,265) 11,716 Lower CFC offset due to the use of
Federal Relief Grants DS offset (103,891) (34,399) (129,545) 95,145 Federal Relief grants to offset RCF
Net Debt Service 95,673 178,772 64,064 (114,708) debt service.
Debt Service Coverage 1.40 1.36 2.70 1.34
13
2021 Capital Spending: 93% of Budget
$600
$491.2
$500 $456.6
NSAT, $96.4
$400 NSAT, $85
($ in millions) IAF, $86.5
IAF, $68
$300
Checked Bag, $86.1 Checked Bag, $106
AFLD Pvmnt 2021-
$200 AFLD Pvmnt 2021-
2025, $29.6
2025, $28
$100 Others, $192.6 Others, $170
$0
2021 Budget 2021 Q2 Update
14
Federal Relief Bolstering Key Financial Metrics
$ in millions 2020 2021 2022 2021 COVID Relief Grants by Cost Center
($ in millions)
CARES
$- $10.0 $20.0 $30.0 $40.0
Debt Service $103.9 $45.0 Airfield Movement Area $3 7.5
Airfield Commercial Area $1.3
O&M 43.3
Airfield Apron Area $9.2
CRRSAA Terminal Building $20.6
Federal Inspection Station $29.7
Debt Service 37.4 Baggage System $7. 4
PLB
Concessions 5.4 $1.4
Gate $4.1
ARPA EGSE $0.6
Non-Airline $36 .8
Debt Service 47.5 75.0
Car Rental Facility $12.8
O&M 31.9 Concessions $2 6.8
Concessions 21.4 Debt O&M
Total $147.2 $188.5 $75.0
15
2021 Airport Development Fund Balance
$450
$400 Target: $340 $391 ADF year end
forecast fund
$350
PFC & CFC balance includes
$300 $2 81 Offsets $20M
$ in millions $67M
$250 CARES Commercial
Deposit
$45M ARPA Paper paydown
$200 Deposits
$100M and savings from
$150 bond refunding
$100 CRRSAA Relief ADF Ending new debt service
Deposit $43M
Balance on 2021 bonds.
$50
Target of $340M
$- Target (12 months of
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
O&M) in 2021.
Actual Forecast
16
2021 Bond Issue
2021 Revenue & Refunding Bonds closed on June 30th
Included new money for airport capital projects and refunding of existing Port debt
$524.0M of new money (par)
$270.5M of refunding (par)
Included refunding of 2010 PFC bonds and 2010B&C Intermediate Lien
Bonds - airport related
Included refunding of 2011B First Lien bonds - non-airport related
Refunding generated total net present value savings of $71.8M
21.5% savings on total refunded par
$65.2 million of savings related to Airport
Strong investor demand and participation; Port credit remained resilient in the face
of pandemic-induced challenges to core businesses
17
Seaport
Q2 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 18,338 19,507 22,875 (3,368) -15% 1,169 6% 46,656 45,280 1,377 3%
Economic Development Division 5,359 4,089 5,371 (1,282) -24% (1,270) -24% 12,048 13,348 (1,300) -10%
Joint Venture 20,706 21,548 20,412 1,135 6% 841 4% 40,824 40,824 0 0%
Total Revenue 44,403 45,144 48,658 (3,515) -7% 741 2% 99,528 99,452 77 0%
Expenses
Maritime 22,311 22,581 25,714 3,134 12% 270 1% 49,023 50,243 1,220 2%
Economic Development Division 9,493 8,493 9,394 902 10% (1,000) -11% 20,605 21,413 808 4%
Joint Venture 486 1,383 682 (701) -103% 897 185% 1,377 1,377 0 0%
Total Expense 32,290 32,456 35,791 3,335 9% 166 1% 71,005 73,033 2,028 3%
NOI Before Stormwater Utility 12,113 12,687 12,867 (180) -1% 574 5% 28,523 26,419 2,105 8%
Stormwater Utility Revenues 3,171 3,093 3,232 (139) -4% (79) -2% 6,464 6,464 0 0%
Stormwater Utility Expenses 2,068 2,061 2,922 862 29% (8) 0% 5,958 5,958 0 0%
Stormwater Utility NOI 1,103 1,032 310 722 233% (71) -6% 506 506 0 0%
Total Non-Aviation Business NOI 13,216 13,719 13,177 542 4% 503 4% 29,029 26,925 2,105 8%
YTD Budget Variance Forecast Budget Variance
Timing of Cruise Sailings and NCL Lease Revenue Lower Conference & Parking Revenue, Higher Grain
Recognition ($4.4M), lower Conference Revenue ($.9M), and Cruise Revenue.
offset by Grain($.9M), and NWSA Payment . Lower Conference, Payroll, and Utility expenses.
Lower Maintenance and Conference expenses.
Tracking favorable to B udget 19
Maritime Division
Q2 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 21,843 21,559 284 Recreational Boating demand.
Cruise 9,000 8,558 442
Maritime Portfolio Mgmt. 10,034 10,259 (225) Commencement of the Cruise season with 83
Grain / Other 5,779 4,903 876 calls scheduled.
Total 46,656 45,280 1,377
Grain Volumes up 55% Y/Y.
O&M Expense
Direct 20,554 20,904 350 Completed:
Support Services 14,428 15,028 600 SEPA (State Environmental Policy Act) review process for
Central Services and Other 14,041 14,311 270 P66 Shore Power.
Total 49,023 50,243 1,220
T46 Stormwater Treatment and Dock Rehab.
NOI (2,367) (4,963) 2,597 Construction for the T30 Bulkhead Stabilization.
Capital Spending 21,701 26,195 4,494 T117 plantings irrigation, observation platform, and crib
wall.
Revenue, Expenses favorable and Capital on target. 21
Cruise
Assumptions
2021 call numbers and estimated passengers based on 6/16 cruise schedule, which is subject to change.
2021 passenger estimate assumes 50% occupancy on all calls. Actual occupancy still uncertain.
2019 average occupancy on debark/embark homeport calls is ~101%.
Calls ramping up, occupanc y still uncertain. 22
Maritime Q2 Financials
Performing Better Than Expected
Maritime YTD Net Operating Income is $235K unfavorable to budget and $899K above 2020
Revenue is $3.4M below budget driven by timing of Cruise NCL Revenue Recognition and phasing of
sailings. Revenue increase from 2020 driven by $1.5M annual increase at the Grain Terminal.
Expenses $3.1M (16%) favorable to budget driven by payroll savings, tenant improvements timing,
utilities, and maintenance. Expenses up $270K Y/Y.
Fav (UnFav) Incr (Decr)
YTD Q2 Capital 2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020
Variance
spending was $ in 000's Actual Actual Actual B udg e t $ % $ %
$5.1M with Total Revenues 27,368 18,338 19,507 22,875 (3,368)0 -15% 1,169 6%
forecasted spending Total Operating Expenses 22,310 22,311 22,581 25,714 3,134 12% 270 1%
Net Operating Income 5,058 (3,973) (3,074) (2,839) (235) -8% 899 23%
at $21.7M (83% of Depreciation 8,911 8,781 8,881 8,088 (793) -10% 100 1%
budget). Net Income (3,853) (12,754) (11,955) (10,928) (1,027) -9% 799 6%
Favo rable results excluding the Timing of Cruise revenue recognition 23
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 519 656 859 851 8 1% 204 31%
Tenants Revenue 1,709 1,625 1,506 1,655 (148) -9% (119) -7%
Port Non-tenants Revenue 670 890 727 726 1 0% (164) -18%
Total Revenues 2,897 3,171 3,093 3,232 (139) -4% (79) -2%
Expe ns e s
SWU Direct 336 611 348 671 324 48% (263) -43%
Maintenance Expenses 1,527 1,029 1,305 1,783 478 27% 276 27%
Seaport Project Management 19 9 3 9 6 68% (6) -68%
Environmental & Sustainability 180 26 26 28 2 8% 0 0%
Other Central Services 406 394 380 432 52 12% (15) -4%
Total Expenses 2,468 2,068 2,061 2,922 862 29% (8) 0%
NOI Before Depreciation 429 1,103 1,032 310 722 233% (71) -6%
Depreciation 294 309 317 297 (20) -7% 8 3%
NOI After Depreciation 135 794 715 13 702 5551% (80) -10%
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 24
Northwest Seaport Alliance Summary
NWSA Operating Income Fav (UnFav) Incr (Decr)
Before GASB 87 Adjustment 2020 YTD 2021 Year-to-Date Budget Variance Change from 2020
$ in 000's Actual Actual B udg e t $ % $ %
Operating Revenue 89,755 90,756 91,963 (1,207) -1% 1,001 1%
Operating Expense* 40,502 40,749 46,376 5,627 12% 247 1%
Operating Income* 49,253 50,007 45,587 4,420 10% 754 2%
Cargo TEUs 1,564,263 1,860,174 295,911 19%
Cargo Volume (Metric Tons) 13,036,960 14,135,522 1,098,562 8%
*Excludes Depreciation
Revenue Q2 YTD $1.2M below budget and lower Operating Expenses Q2 YTD $5.6M
than 2020 due to restructuring of the APL favorable to budget from favorable
agreement, offset higher TEU volumes and maintenance costs and timing of spend in
increased intermodal revenue. the North Harbor.
YTD Q2 volumes exc eeding 2020 25
Joint Venture Q2 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 Revenues:
$ in 000's Actual Actual Actual Budge t $ % $ %
Re ve nue Joint Venture favorable to budget
Joint Venture Revenue 24,941 21,218 22,284 21,137 1,147 5% 1,066 5% 42,273 due to lower expenses at NWSA.
Contra Joint Venture Revenue - (957) (976) (976) (0) 0% (19) 2% (1,952)
Subtotal Distributable Revenue from NWSA 24,941 20,261 21,308 20,161 1,147 6% 40,321 Other Service Revenue below budget
Other Service Revenue Tenant Reimbursements 2,396 217 172 251 (80) -32% (45) -21% 503 due to timing of tenant reimbursable
Port Revenue from NWSA Facilities - 229 68 - 68 NA (161) -70% - Maintenance work.
Total Revenues 27,337 20,706 21,548 20,412 1,135 6% 841 4% 40,824 Port Revenue from NWSA Facilities
Expe ns e s temporary moorage on the
JV Direct 2,188 166 833 90 (743) -827% 667 403% 180
Maintenance Expenses 331 246 288 287 (1) 0% 42 17% 587 northwest face of T46.
Seaport Project Management 30 11 14 5 (9) -168% 2 20% 10 Expenses
Environmental & Sustainability 30 20 115 167 52 31% 95 485% 333
Other Central Services 71 43 134 134 0 0% 90 209% 267 JV Direct $620K Environmental
-
Total Expenses 2,652 486 1,383 682 (701) -103% 897 185% 1,377 reserve booked for June tied to
NOI Before Depreciation 24,685 20,220 20,165 19,730 435 2% (56) 0% 39,447 contamination discovered during the
Legacy Depreciation for NWSA Facilities 8,255 7,609 7,514 7,433 (81) -1% (96) -1% 15,162 crane rail work.
NOI After Depreciation 16,430 12,611 12,651 12,297 354 -3% 40 0% (24,284)
Increased distributable income offset by T5 environmental reserve. 26
Economic Development Division
Q2 2021 Financial Performance Report
Economic Development Division
Financial Summary Business Highlights
Figure in $000s Fore cas t Budge t Variance First concession revenue at Bell St Garage
Revenues 12,048 13,348 (1,300) since pandemic began.
O&M Expense Executed ground lease at T-106.
EDD & Maritime 9,806 10,591 785 Rent Deferrals:
Maintenance 3,037 2,537 (500)
Diversity in Contracting 122 142 20 o 51 Applications
Tourism 2,181 2,481 300 o 37 Executed agreements
EDD Grants 1,060 1,060 0
o 24 Paid Off as of 6/30/21
Central Services and Other 4,400 4,603 203
Total 20,605 21,413 808 o 13 Currently in program
NOI (8,557) (8,065) (492) Increased grew proportion of total spend by
10% in Q1 2021 over Q4 2020 for both Small
Capital Spending 4,000 5,647 1,647
Businesses and WMBEs.
Beginning to rebound from th e pandemic. 28
Economic Development Financial Highlights
2021 Q2 YTD Net Operating Income $380K unfavorable to budget and $269K lower than 2020
Revenue unfavorable to budget by $1.3M and $1.3M lower than 2020 driven primarily by COVID-19
cancellations at the Conference and Event Centers in Q1 and no variable concession revenue at Bell St
Garage until June.
Expenses favorable to budget by $902K driven by less conferences and Tourism Programs, offset by
impact of Maintenance allocation change. Expenses are lower by $1M 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)
2019 YTD 2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020
EDD spent 17% of Capital Variance
budget through Q2. The $ in 000's Actual Actual Actual B udg e t $ % $ %
Total Revenues 10,384 5,359 4,089 5,371 (1,282) -24% (1,270) -24%
2021 forecasted spending
Total Operating Expenses 12,684 9,493 8,493 9,394 902 10% (1,000) -11%
is $4.0M (71% of budget).
Net Operating Income (2,300) (4,134) (4,403) (4,023) (380) 9% (269) -7%
Depreciation 1,833 1,774 1,919 1,517 (402) -26% 145 8%
Net Income (4,133) (5,908) (6,322) (5,540) (782) 14% (414) -7%
Revenue unfavorable, Expenses fav orable to budget 29
Central Services
Q2 2021 Financial Performance Report
Central Services
Financial Summary Business Highlights
The Port Commission approved another $2.0M
Figures in $000s Fore cas t Budge t Variance to the Opportunity Youth Initiative.
Revenues 2,117 181 1,936
Port leaders joined Washington State leaders in
Core Central Support Serv 87,093 85,678 (1,415) the Climate Bill Signing which includes the
P olic e 27,793 28,317 524 Clean Fuel Standard.
Engineering/PCS 9,519 9,199 (321) The Port participated in the construction trades
O&M Expenses 124,405 123,194 (1,211) outreach event to encourage increased
Capital Spending 8,649 9,658 1,009 participation of women and people of color in
construction pre-apprenticeship programs.
31
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 331 1,629 1,982 90 1,892 2091.5% 353 21.7%
Core Central Support Services 36,723 39,102 39,964 41,863 1,899 4.5% 863 2.2%
P olic e 13,997 14,819 13,769 14,959 1,190 8.0% (1,050) -7.1%
Engineering/PCS 5,164 4,773 4,575 4,551 (24) -0.5% (198) -4.2%
Total Operating Expenses 55,884 58,694 58,309 61,373 3,064 5.0% (385) -0.7%
2021 YTD Total Operating Expenses are $3.1M favorable to the budget due to:
Delay in contract spending and delays in hiring vacant positions, offset by some unbudgeted outside legal services
and lower charges to Capital Projects.
2021 YTD Total Operating expenses are $385K lower compared to 2020 due to:
Lower payroll costs due to delay hiring.
Lower Outside Services costs YTD due to project delays in 2021.
Lower Equipment spending due to slow start to PC Refresh.
Lower Travel and Other Employee Expenses.
Lower 2021 YTD spending is partially offset by higher Insurance Expense and less charges to Capital Projects.
32
Port Wide
Q2 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 175,927 163,722 143,188 178,518 (35,330) -19.8% (20,534) -12.5%
Airport Non-Aero Revenues 124,604 64,225 73,219 82,351 (9,131) -11.1% 8,995 14.0%
Non-Airport Revenues 67,632 48,298 49,475 51,255 (1,779) -3.5% 1,178 2.4%
Total Operating Revenues 368,164 276,244 265,883 312,124 (46,241) -14.8% (10,361) -3.8%
Total Operating Expenses 215,765 197,820 195,776 209,132 13,356 6.4% (2,044) -1.0%
NOI before Depreciation 152,399 78,424 70,107 102,992 (32,885) -31.9% (8,317) -10.6%
Depreciation 82,447 87,855 91,246 82,470 (8,776) -10.6% 3,391 3.9%
NOI after Depreciation 69,952 (9,431) (21,139) 20,523 (41,662) -203.0% (11,708) 124.1%
o Total Operating Revenues: $46.2M unfavorable to the budget and $10.4M lower than 2020.
o Total Operating Expenses: $13.4M favorable to the budget and $2.0M lower than 2020.
o NOI before Depreciation: $32.9M unfavorable to the budget and $8.3M lower than 2020.
34
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 357,598 297,909 300,332 386,668 (86,336) -22.3% 2,423 0.8%
Airport Non-Aero Revenues 269,037 116,473 166,133 189,548 (23,414) -12.4% 49,660 42.6%
Non-Airport Revenues 137,538 96,446 106,658 104,645 2,013 1.9% 10,212 10.6%
Total Operating Revenues 764,174 510,828 573,123 680,861 (107,737) -15.8% 62,296 12.2%
Total Operating Expenses 441,700 408,681 425,322 423,412 (1,910) -0.5% 16,641 4.1%
NOI before Depreciation 322,474 102,147 147,801 257,448 (109,647) -42.6% 45,655 44.7%
Depreciation 174,903 180,086 176,509 176,509 - 0.0% (3,577) -2.0%
NOI after Depreciation 147,571 (77,939) (28,708) 80,939 (109,647) -135.5% 49,231 -63.2%
o Operating Revenues: $107.7M unfavorable to the budget but $62.3M higher than 2020. It's important to
note that the federal relief helps offset $107.8M of the Aeronautical revenues for 2021.
o Operating Expenses: $1.9M unfavorable to the budget and $16.6M higher than 2020 (It would have
been $559K lower than 2020 after adjusting a $17.2M state pension credit in 2020).
o NOI before Depreciation: $109.7M unfavorable to the budget but $49.2M higher than 2020.
35
Port Wide Capital Spending
Total Q2 YTD capital
spending was $212M.
For the full year, total
capital spending is
expected to be $495M,
92.2% of the budget.
36
Aviation Division
Appendix
Q2 2021 Financial Performance Report
Airport Activity
% YTD Change 2021 YTD Passenger volume:
YTD 2019 YTD 2020 YTD 2021 from 2020
Total Passengers (000's) YTD passenger volume is 41% lower than Q2
Domestic 21,616 10,074 13,770 36.7% 2019 pre-pandemic levels, and 28.5% higher
International 2,689 1,054 528 -49.9%
Total 24,304 11,128 14,298 28.5% than Q2 2020. Enplanement recovering is
building, and volumes are expected to be
Operations 214,749 142,657 171,873 20.5% 26% lower than 2019 for full year 2020.
Landed Weight (In Millions of lbs.)
Cargo 1,165 1,254 1,409 12.4%
All other 13,738 8,537 10,584 24.0%
Total 14,903 9,791 11,993 22.5%
Cargo - Metric Tons
Domestic freight 145,262 161,957 174,449 7.7%
International & Mail freight 64,841 47,466 60,738 28.0%
Total 210,103 209,423 235,187 12.3%
38
Aviation Financial Summary
Fav(UnFav)
Fcst. vs. Budget Incr/(Decr)
Financial Summary 2019 2020 2021 2021 Variance Change from 2020
($ in 000's)
Actual Actual Forecast Budget $ % $ %
Operating Revenue
Aeronautical Revenues 357,598 297,909 300,332 386,668 (86,336) -22.3% 2,423 0.8%
Non-Aeronautical Revenues 269,037 116,473 166,133 189,548 (23,414) -12.4% 49,660 42.6%
Total Operating Revenues 626,636 414,382 466,465 576,215 (109,750) -19.0% 52,083 12.6%
Total Operating Expenses 355,245 329,680 341,260 339,908 (1,353) -0.4% 11,581 3.5%
Net Operating Income 271,390 84,702 125,205 236,308 (111,103) -47.0% 40,503 47.8%
Federal Relief 147,148 161,601 37,899 123,702 326.4% 14,453 9.8%
Federal Relief (Concessions) 26,774 26,774 26,774
NOI (After Federal Relief) 271,390 231,850 313,579 274,207 39,373 14.4% 81,729 35.3%
CPE 12.86 26.50 13.97 19.62 5.65 0.29 (12.53) -47.3%
Non-Aero NOI ($ in 000s) 6,671 9,750 86,046 82,742 3,304 4.0% 76,296 782.5%
Enplaned passengers (in 000s) 25,874 10,044 19,132 18,216 916 5.0% 9,088 90.5%
-
Capital Expenditures (in 000s) 573,598 573,598 456,620 491,202 34,582 7.0% (116,978) -20.4%
39
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 13.97 19.62 5.65 28.8% (12.53) -47.3%
Non-Aeronautical NOI (in 000's)1 143,917 6,671 86,046 82,742 3,304 4.0% 79,375 1189.9%
Other Performance Metrics
O&M Cost per Enplanement 13.73 32.82 17.84 18.66 0.82 4.4% (14.99) -45.7%
Non-Aero Revenue per Enplanement 10.40 11.60 10.08 10.41 (0.32) -3.1% (1.51) -13.1%
Debt per Enplanement (in $) 133 326 187 171 (17) -9.7% (139) -42.7%
Debt Service Coverage 1.68 1.40 2.70 1.36 1.34 99.2% 1.30 92.9%
Days cash on hand (10 months = 304 days) 314 327 418 369 49 13.4% 92 28.1%
Aeronautical Revenue Sharing ($ in 000's) (17,146) 1 - - - 0.0% (1) 100.0%
Activity (in 000's)
Enplanements 25,874 10,044 19,132 18,216 916 5.0% 9,088 90.5%
Total Passengers 51,748 20,087 38,264 36,432 1,832 5.0% 18,177 90.5%
40
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 71,218 77,615 76,202 75,468 (734) -1.0% (1,414) -1.8%
Outside Services 28,619 29,634 26,770 31,583 4,813 15.2% (2,863) -9.7%
Utilities 9,328 8,757 9,750 10,458 708 6.8% 993 11.3%
Other Expenses 8,487 2,092 (461) 476 937 196.8% (2,553) -122.0%
Total Airport Direct Charges 117,652 118,099 112,261 117,985 5,723 4.9% (5,837) -4.9%
Environmental Remediation Liability 12,543 (2,776) 801 1,569 768 48.9% 3,577 -128.9%
Capital to Expense 83 - 288 - (288) 288
Total Exceptions 12,627 (2,776) 1,090 1,569 479 30.6% 3,865 -139.3%
Total Airport Expenses 130,279 115,323 113,351 119,554 6,203 5.2% (1,972) -1.7%
Corporate 32,175 34,298 34,011 34,199 188 0.6% (287) -0.8%
Police 11,117 12,162 11,336 12,662 1,326 10.5% (827) -6.8%
Maritime/Economic Development/Other 1,672 1,596 1,420 1,943 523 26.9% (176) -11.0%
Total Charges from Other Divisions 44,964 48,057 46,767 48,804 2,037 4.2% (1,290) -2.7%
Total Operating Expenses 175,243 163,380 160,118 168,358 8,240 4.9% (3,262) -2.0%
41
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 144,051 152,895 153,183 153,293 111 0.1% 287 0.2%
Outside Services 68,162 63,922 66,406 65,174 (1,232) -1.9% 2,483 3.9%
Utilities 18,180 15,695 19,619 20,244 625 3.1% 3,924 25.0%
Other Expenses 14,721 3,341 2,059 1,359 (700) -51.5% (1,282) -38.4%
Total Airport Direct Charges 245,114 235,854 241,267 240,071 (1,196) -0.5% 5,413 2.3%
Environmental Remediation Liability 15,900 (2,361) 2,196 2,001 (195) -9.8% 4,557 -193.0%
Capital to Expense 2,089 2,588 218 - (218) (2,370) -91.6%
Total Exceptions 17,989 227 2,414 2,001 (413) -20.6% 2,187 964.4%
Total Airport Expenses 263,104 236,081 243,680 242,072 (1,609) -0.7% 7,600 3.2%
Corporate 65,729 68,316 70,076 69,767 (308) -0.4% 1,760 2.6%
Police 22,290 22,150 23,513 23,964 450 1.9% 1,364 6.2%
Maritime/Economic Development/Other 4,123 3,134 3,991 4,105 114 2.8% 857 27.4%
Total Charges from Other Divisions 92,141 93,599 97,580 97,836 256 0.3% 3,981 4.3%
-
Total Operating Expenses 355,245 329,680 341,260 339,908 (1,353) -0.4% 11,581 3.5%
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 61,289 54,693 37,192 49,789 (12,597) -25.3% (17,502) -32.0%
Airfield Apron Area 9,883 9,575 10,932 9,557 1,375 14.4% 1,357 14.2%
Terminal Rents 100,229 77,111 83,321 102,193 (18,872) -18.5% 6,210 8.1%
Federal Inspection Services (FIS) 7,271 14,621 3,560 9,225 (5,665) -61.4% (11,061) -75.6%
Total Rate Base Revenues 178,672 156,000 135,005 170,763 (35,758) -20.9% (20,995) -13.5%
-
Airfield Commercial Area 5,569 7,720 8,177 7,755 422 5.4% 456 5.9%
Subtotal before Revenue Sharing 184,241 163,720 143,182 178,518 (35,336) -19.8% (20,538) -12.5%
Revenue Sharing (8,314) 1 - - - (1) -100.0%
Total Aeronautical Revenues 175,927 163,722 143,182 178,518 (35,336) -19.8% (20,540) -12.5%
-
Total Aeronautical Expenses 117,918 108,286 111,036 115,710 4,673 4.0% 2,751 2.5%
Aeronautical NOI 58,009 55,436 32,146 62,809 (30,663) -48.8% (23,290) -42.0%
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 87,899 115,037 (27,138) -23.6% 2,993 3.5%
Airfield Apron Area 22,016 15,146 15,184 21,418 (6,234) -29.1% 38 0.2%
Terminal Rents 205,283 171,607 166,593 213,147 (46,554) -21.8% (5,014) -2.9%
Federal Inspection Services (FIS) 12,321 8,616 14,373 21,454 (7,081) -33.0% 5,757 66.8%
Total Rate Base Revenues 363,057 280,275 284,048 371,056 (87,007) -23.4% 3,773 1.3%
Airfield Commercial Area 11,687 17,633 16,284 15,612 672 4.3% (1,349) -7.7%
Subtotal before Revenue Sharing 374,744 297,908 300,332 386,668 (86,336) -22.3% 2,424 0.8%
Revenue Sharing (17,146) 1 - - - (1) -100.0%
Total Aeronautical Revenues 357,598 297,909 300,332 386,668 (86,336) -22.3% 2,423 0.8%
Total Aeronautical Expenses 236,959 219,878 234,400 233,102 (1,298) -0.6% 14,522 6.6%
Aeronautical NOI 120,639 78,031 65,932 153,566 (87,634) -57.1% (12,099) -15.5%
Debt Service (110,945) (62,607) (48,130) (125,747) 77,617 -61.7% 14,477 -23.1%
Net Cash Flow 9,694 15,424 17,802 27,819 (10,016) -36.0% 2,378 15.4%
44
Aero Cost Drivers
2021 Forecast to 2021 Budget
O&M $1.4M higher mostly in Apron and
Impact on Aero FIS:
Revenues Apron Large Snow Expenses
2020 2021 2021 Budget vs Forecast FIS Increased Interpretation
$ in 000's Actual Budget Forecast $ % Services, Increased VIP Hospitality,
Furniture Capital to Expense,
O&M (1) 213,775 227,420 228,844 1,424 0.6% Contingencies [IAF Oversize
Federal Relief Grants O&M (22,507) (3,500) (21,100) (17,600) 502.9% Baggage Relocate, IAF Wall
Net O&M 191,268 223,920 207,744 (16,176) -7.2% Protections]
Debt Service Before Offsets 166,848 193,302 190,120 (3,183) -1.6% Debt Service before Offsets: 3rd runway PFC
Debt Service PFC Offset (36,390) (47,549) (57,839) (10,290) 21.6% debt was refunded with revenue bond which
Federal Relief Grants Debt Service (71,763) (29,399) (86,778) (57,378) 195.2% increased debt service and offset with
Net Debt Service 58,694 116,354 45,503 (70,851) -60.9% refunding savings.
PFC Offset $10.3M higher due to refunding
Amortization 32,359 32,681 32,624 (58) -0.2%
of PFC debt with revenue bond which allows
Space Vacancy (1,083) (1,141) (1,063) 78 -6.9% more capacity to use PFC collections for debt
TSA Operating Grant and Other (960) (758) (759) (1) 0.1% service offset.
Rate Base Revenues 280,279 371,056 284,048 (87,007) -23% Federal Relief Grants Aero Portion:
Commercial area 17,633 15,612 16,284 672 4% Payroll Impact (O&M) Reducing
Total Aero Revenues 297,912 386,668 300,332 (86,336) -22% $21.1M from Rate Base
Debt Service Impact - Reducing
$86.8M from Rate Base
Aero ra te base revenues based o n cost recovery formulas 45
Non-Aeronautical Business YTD
YTD Passenger Volume are up 28.2% compared to prior year 2021 YTD Actuals to 2020 YTD Actuals
YTD O&D Passenger Volume up 40.2% compared to prior year Non-Aero Revenue:
All Non-Aero lines of business were
Fav(UnFav) impacted by COVID-19. As shown in
Actual vs. Budget Incr/(Decr)
Non-Aeronautical NOI 2019 YTD 2020 YTD 2021 YTD 2021 YTD Variance Change from 2020 Q2 2021 results, Non-Aero
businesses are experiencing
($ in 000's)
Actual Actual Actual Budget $ % $ % different rates of recovery in the
Non-Aeronautical Revenues pandemic environment.
Public Parking 40,401 20,002 25,537 25,729 (192) -0.7% 5,536 27.7% Parking revenue recovery is more
Rental Cars 20,064 7,591 11,497 10,740 757 7.0% 3,906 51.5% closely aligned with change in
Ground Transportation 9,979 4,374 4,208 5,961 (1,753) -29.4% (166) -3.8% passenger volumes.
Airport Dining & Retail 29,581 13,856 14,871 19,470 (4,599) -23.6% 1,015 7.3% Rental Car strong revenue reflects
Other 24,578 18,402 17,106 20,451 (3,345) -16.4% (1,296) -7.0% shortage of fleet size, and
Total Non-Aeronautical Revenues 124,604 64,225 73,219 82,351 (9,131) -11.1% 8,995 14.0% corresponding increase in rental
rates.
Total Non-Aeronautical Expenses 38,294 55,094 49,082 52,648 3,567 6.8% (6,012) -10.9%
GT slower recovery reflects delay
Non-Aeronautical NOI 86,310 9,131 24,138 29,703 (5,565) -18.7% 15,007 164.4% in passenger returning to shared
Less: CFC Surplus - - - - - - ride options.
Adjusted Non-Aeronautical NOI 86,310 9,131 24,138 29,703 (5,565) -18.7% 15,007 164.4%
ADR revenue recover reflects
shortage of labor, limiting
concessionaire in meeting growing
passenger volume.
46
Non-Aeronautical Business YE
(Before Federal Concessionaire Relief)
Passenger Volume forecasted to be up 90.5% compared to prior year 2021 Forecast to 2020 Actuals
O&D Passenger Volume forecasted to be up 108.3% compared to prior year Non-Aero Revenue:
All Non-Aero lines of business were
Fav(UnFav) impacted by COVID-19, with Non-
Fcst. vs. Budget Incr/(Decr) Aero businesses experiencing
Non-Aeronautical NOI 2019 2020 2021 2021 Variance Change from 2020 different rates of recovery in the
($ in 000's)
Actual Actual Forecast Budget $ % $ % pandemic environment.
Parking revenue recovery is more
Non-Aeronautical Revenues
Public Parking 82,125 34,502 65,301 59,597 5,704 9.6% 30,799 89.3% closely aligned with change in
Rental Cars 52,567 16,637 33,690 26,880 6,810 25.3% 17,053 102.5% passenger volumes.
Ground Transportation 20,765 6,557 11,238 13,628 (2,391) -17.5% 4,680 71.4% Rental Car revenue recovery
Airport Dining & Retail 61,615 25,418 43,317 45,936 (2,619) -5.7% 17,899 70.4% expected to more closely reflects
Other 51,966 33,359 39,361 43,506 (4,145) -9.5% 6,003 18.0% passenger volume recovery once
Total Non-Aeronautical Revenues 269,037 116,473 192,907 189,548 3,359 1.8% 76,434 65.6% fleet size stabilized.
Total Non-Aeronautical Expenses 118,286 109,802 106,861 106,806 (55) -0.1% (2,941) -2.7% GT slower recovery reflects delay
in passenger returning to shared ride
Non-Aeronautical NOI1 150,752 6,671 86,046 82,742 3,304 4.0% 79,375 1189.9% options.
Less: CFC Surplus (6,834) - - - - - ADR revenue recover reflects
Adjusted Non-Aeronautical NOI 143,917 6,671 86,046 82,742 3,304 4.0% 79,375 1189.9% shortage of labor, limiting
concessionaire in meeting growing
passenger volume.
47
Non-Aero Revenue By Business Unit
Total Non-Aero Revenues Non-Aero Revenues per Enplanement
300,000,000 4.00
3.50
250,000,000
3.00
200,000,000
2.50
150,000,000 2.00
100,000,000 1.50
1.00
50,000,000
0.50
-
-
2019 Actuals 2020 Actuals 2021 Fcst 2021 Budget 2019 Actuals 2020 Actuals 2021 Fcst 2021 Budget
Public Parking Rental Cars Ground Transportation Public Parking Rental Cars Ground Transportation
Airport Dining & Retail Commercial Properties Other Non-Aero Airport Dining & Retail Commercial Properties Other Non-Aero
Non-Aero Revenue overview:
2021 Non-Aero revenue forecast from concession fees or transaction volume (Parking, Rental Car, GT, ADR, Clubs & Lounges, In-flight Kitchens)
reflects the unequal business recovery being experienced by Non-Aeronautical businesses during pandemic recovery cycle.
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
YTD Passenger Volume are up 28.2% compared to prior year
YTD O&D Passenger Volume up 40.2% compared to prior year
Public Parking - 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 Actuals Budget $ % $ %
Parking Garage Revenue to Port General Garage Parking (includes
General Parking/Terminal Direct 36,200 16,522 17,955 20,830 (2,875) -13.8% 1,433 8.7% pre - booking program) Garage
Prebooking - 823 5,415 2,401 3,014 125.5% 4,592 557.9% parking closely aligned with change
Premier Corporate Parking 697 363 - 365 (365) -100.0% (363) -100.0%
Revenue to Port - General Parking 36,897 17,708 23,370 23,596 (226) -1.0% 5,662 32.0% in passenger volume, with continued
Other Garage Revenue passenger preference for close in
Passport Parking Program 1,751 1,594 1,193 1,203 (10) -0.8% (401) -25.1% self - parking.
Total Parking Garage Revenue 38,648 19,302 24,563 24,799 (236) -1.0% 5,261 27.3%
Other Parking Revenue Passport program this monthly
Concession Rent - Doug Fox off-site parking 1,723 679 960 921 39 4.2% 281 41.4% parking program is not as closely
All Other Parking Revenue 31 21 15 9 6 61.5% (6) -30.6% aligned with the change in passenger
Total Parking Revenue 40,401 20,001 25,537 25,729 (192) -0.7% 5,536 27.7% volume.
O&D Enplanements 12,079 5,557 7,122 7,833 (477) -21.9% (1,249) -42.4%
Doug Fox revenue recovery shows
increased demand for close in
parking.
49
YTD Public Parking metrics reflect preference
for close in self-parking
Public Parking - Revenue Metrics Fav / (UnFav) Incr / (Decr)
2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020
in 000's Actual Actual Actual Budget # % # %
Total Enplanements 12,079 5,557 7,122 7,833 (711) -9.1% 1,565 28.2%
O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4%
O&D Enplanements 8,480 3,557 4,985 5,326 (341) -6.4% 1,429 40.2%
Revenue per O&D Enplanement Metrics
General Parking/Pre-Book/Premier Corporate $ 4.35 $ 4.98 $ 4.69 $ 4.43 $ 0.26 5.8% $ (0.29) -5.8%
Passport Parking Program $ 0.21 $ 0.45 $ 0.24 $ 0.23 $ 0.01 6.0% $ (0.21) -46.6%
Total Garage Revenue per O&D Enplanement $ 4.56 $ 5.43 $ 4.93 $ 4.66 $ 0.27 5.8% $ (0.50) -9.2%
Concession Rent - Doug Fox off-site parking $ 0.20 $ 0.19 $ 0.19 $ 0.17 $ 0.02 11.3% $ 0.00 0.9%
All Other Parking Revenue $ 0.00 $ 0.01 $ 0.00 $ 0.00 $ 0.00 72.5% $ (0.00) -50.5%
Total Parking per O&D Enplanement $ 4.76 $ 5.62 $ 5.12 $ 4.83 $ 0.29 6.0% $ (0.50) -8.9%
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 increase compared to 2021 budget and compared to pre - pandemic 2019 activity reflects 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 holding relatively steady, will continue to monitor.
50
Public Parking forecast recovers with O&D passenger increase
Passenger Volume forecasted to be up 90.5% compared to prior year
O&D Passenger Volume forecasted to be up 108.3% 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 48,221 48,332 (111) -0.2% 21,064 77.6% parking activity is closely aligned
Prebooking 217 2,935 12,015 5,570 6,445 115.7% 9,080 309.4% 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 60,236 54,752 5,484 10.0% 29,695 97.2% Passport program demand is
Other Garage Revenue relatively stable, not closely aligned
Passport Parking Program 3,582 2,738 2,483 2,790 (307) -11.0% (255) -9.3%
with passenger volumes. Significant
Total Parking Garage Revenue 78,776 33,278 62,719 57,542 5,177 9.0% 29,441 88.5%
portion of usage is from airport
Other Parking Revenue
Concession Rent - Doug Fox off-site parking 3,292 1,186 2,559 2,037 522 25.6% 1,373 115.8% tenant employees.
All Other Parking Revenue 56 37 23 18 5 29.9% (14) -37.0% Doug Fox revenue recovering
Total Parking Revenue 82,125 34,501 65,301 59,597 5,704 9.6% 30,800 89.3% stronger than O&D passenger
O&D Enplanements 18,163 6,428 13,392 12,387 529 4.3% 6,488 100.9% volume, possibly due steeper
declines in prior year due to
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 19,132 18,216 916 5.0% 9,088 90.5%
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 13,392 12,387 1,006 8.1% 6,964 108.3%
Revenue per O&D Enplanement Metrics
General Parking/Pre-Book/Premier Corporate $ 4.14 $ 4.75 $ 4.50 $ 4.42 $ 0.08 1.8% $ (0.25) -5.3%
Passport Parking Program $ 0.20 $ 0.43 $ 0.19 $ 0.23 $ (0.04) -17.7% $ (0.24) -56.5%
Total Garage Revenue per O&D Enplanement $ 4.34 $ 5.18 $ 4.68 $ 4.65 $ 0.04 0.8% $ (0.49) -9.5%
Concession Rent - Doug Fox off-site parking $ 0.18 $ 0.18 $ 0.19 $ 0.16 $ 0.03 16.2% $ 0.01 3.6%
All Other Parking Revenue $ 0.00 $ 0.01 $ 0.00 $ 0.00 $ 0.00 20.1% $ (0.00) -69.7%
Total Parking per O&D Enplanement $ 4.52 $ 5.37 $ 4.88 $ 4.81 $ 0.06 1.3% $ (0.49) -9.2%
Public Parking Key Metrics 2021 Forecast vs. 2020 Actuals:
General Garage Parking (includes pre - booking) revenue per enplanement retained much of increase experienced during pandemic O&D
passenger decline, based on continued passenger preference for close in self - parking.
Passport parking programs metric tracking closer to pre - pandemic levels. Significant portion of usage is from airport tenant employees.
Doug Fox off -site parking metric forecasted slightly higher than pre- pandemic levels, due to increasing demand for close in parking.
52
Rental Cars YTD
Rental Car - Revenue Detail Fav / (UnFav) Incr / (Decr) 2021 Actuals vs. 2020 Actuals
2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020
$ in 000's Actual Actual Actual Budget $ % $ % Rental Car Concession Revenue
Total Enplanements 12,079 5,557 7,122 7,833 (711) -9.1% 1,565 28.2% Strong recovery reflects
O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4% shortage of vehicles in rental car
O&D Enplanements 8,480 3,557 4,985 5,326 (341) -6.4% 1,429 40.2% fleets, due to vehicle
Gross Sales by Operators 134,334 56,462 100,110 88,090 12,020 13.6% 43,648 77.3% divestitures during the
Total Transactions 647 272 312 383 (71) -18.5% 40 14.8%
Average Ticket $207.53 $207.76 $320.74 $230.00 $90.74 39.5% $112.98 54.4% pandemic. Strong passenger
Average Length of Stay 4.27 4.55 4.87 4.60 0.27 5.9% 0.32 7.0% demand for rental cars has
Transactions/O&D Enplanements 7.63% 7.64% 6.26% 7.19% -0.93% -12.9% -1.38% -18.1% driven up the rental rate, while
CFC Revenue Summary the level of transactions remains
Total Transaction Days 2,761 1,237 1,521 1,762 (241) -13.7% N/A 22.9% low.
CFC Rate per Transaction Day $6.00 $6.00 $6.50 $6.50 $0.00 0.0% $0.50 8.3%
CFC Revenue Earned 16,567 7,424 9,884 11,452 (1,568) -13.7% N/A 33.1% CFC Operating Revenue - CFC
Other CFC Collections (373) (174) - - - N/A N/A -100.0% collections are lower than
Total CFC Revenue 16,194 7,250 9,884 11,452 (1,568) -13.7% 2,634 36.3% expected in the budget due to
Debt Service Reserve Requirement (11,689) (12,009) (12,137) (6,038) (6,099) 101.0% (128) 1.1% the shortage of rental car
Residual - CFC Operating Revenue 4,505 - - - - N/A - N/A vehicles, despite recovering
Rental Car - Revenue Summary Fav / (UnFav) Incr / (Decr) passenger volumes. CFC
2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020
$ in 000's Actual Actual Actual Budget $ % $ % Operating Revenue is a residual
RCF Concession Revenue to Port 13,632 5,606 9,468 8,809 659 7.5% 3,862 68.9% (only after covering current year
Residual - CFC Operating Revenue: 4,505 - - - - N/A - N/A debt service), so YTD 2021 CFC
Land Rent/Space Rent/Other 1,927 1,986 2,029 1,931 98 5.1% 44 2.2% operating revenue is still zero.
Total Rental Cars Operating Revenue 20,064 7,591 11,497 10,740 757 7.0% 3,906 51.5%
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
Total Enplanements 25,874 10,044 19,132 18,216 916 5.0% 9,088 90.5% Revenue Strong recovery
O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4% reflects shortage of vehicles in
O&D Enplanements 18,396 6,428 13,392 12,387 1,006 8.1% 6,964 108.3% rental car fleets, due to vehicle
Gross Sales by Operators 328,156 122,372 274,705 122,372 152,333 124.5% 152,333 124.5%
divestitures during the
Total Transactions 1,414 519 836 892 (56) -6.3% 317 61.0%
Average Ticket $232.06 $235.57 $ 328.55 $ 230.00 $98.55 42.8% $92.98 39.5% pandemic. Strong passenger
Average Length of Stay 4.49 4.93 4.86 4.60 0.26 5.8% (0.06) -1.3% demand for rental cars has
Transactions/O&D Enplanements 7.69% 8.08% 6.24% 7.20% -0.96% -13.3% -1.84% -22.7% driven up the rental rate, while
CFC Revenue Summary the level of transactions
Total Transaction Days 6,356 2,560 4,068 4,103 (35) -0.9% 1,507 58.9% remains low.
CFC Rate per Transaction Day $6.00 $6.00 $6.50 $6.50 $0.00 0.0% $0.50 8.3%
CFC Revenue Earned 38,137 15,362 26,439 26,670 (231) -0.9% 11,077 72.1% CFC Operating Revenue - CFC
Other CFC Collections (9) - - - - N/A - N/A collections are expected to
Total CFC Revenue 38,128 15,362 26,439 26,670 (231) -0.9% 11,077 72.1% exceed the debt service
Debt Service Reserve Requirement (23,655) (24,019) (24,274) (24,153) (121) 0.5% (255) 1.1% requirement by year-end, but
Reserve Fund Release (bond maturation) 1,300 - - - - N/A - N/A
Net Debt Service (22,355) (23,914) (24,274) (24,153) (121) 0.5% (360) 1.5% are expected to be lower than
Residual - CFC Operating Revenue 15,773 - 2,165 2,501 (336) -13.4% 2,165 N/A the 2021 Budget due to the
Fav / (UnFav) Incr / (Decr) shortage of rentable vehicles
Rental Car - Revenue Summary 2019 2020 2021 2021 Fcst vs Bud Var Change from 2020 this year which results in lower
$ in 000's Actual Actual Fo recast Budget $ % $ % transaction activity.
RCF Concession Revenue to Port 32,870 12,531 27,470 20,516 6,954 33.9% 14,940 119.2%
Residual - CFC Operating Revenue: 15,773 - 2,165 2,501 (336) -13.4% 2,165 N/A
Land Rent/Space Rent/Other 3,924 4,106 4,056 3,863 193 5.0% (50) -1.2%
Total Rental Cars Operating Revenue 52,567 16,637 33,691 26,880 6,811 25.3% 17,054 102.5%
Broad and severe impact to Landside re venue from COVID-19 54
Ground Transportation Revenue YTD
YTD Passenger Volume are up 28.2% compared to prior year
YTD O&D Passenger Volume up 40.2% compared to prior year
Ground Transportation - Revenue to Port 2021 Actuals vs. 2020 Actuals
Fav (UnFav) Incr (Decr)
2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020 Ground Transportation revenues and
$ in 000's Actual Actual Actual Budget $ % $ % GT operators severely impacted by
Ground Transportation Revenues
TNC Drop-offs - - 747 - 747 N/A 747 N/A compounding pandemic factors:
TNC Pick-ups 5,997 2,765 1,960 3,741 (1,781) -47.6% (805) -29.1% COVID-19 declines in O&D
TNC Total 5,997 2,765 2,707 3,741 (1,034) -27.6% (58) -2.1% passenger volumes
On Demand Taxis 1,856 632 476 796 (320) -40.2% (156) -24.7% Customer preference away from
On Demand Limos 403 259 - - - N/A (259) -100.0% shared ride transportation
Belled In Taxis (Annual Permit) 27 12 9 19 (10) -51.3% (3) -22.0% options during this pandemic.
Pre-Arranged Limos (Annual Permit) 350 95 142 295 (153) -51.9% 47 48.9%
Courtesy Cars (cost recovery) TNC & Taxi recovery slower than
986 493 802 929 (127) -13.6% 310 62.9%
All other Operators (cost recovery) 208 46 37 84 (47) -55.6% (9) -19.5% recovery in O&D passengers, reflects
Other Misc Revenues 153 71 34 97 (63) -64.9% (37) -52.4% slower return of passengers to shared
Total GT Revenue 9,979 4,374 4,208 5,961 (1,753) -29.4% (166) -3.8% ride transportation options.
O&D Enplanements 12,079 5,557 7,122 7,833 (711) -9.1% 1,565 28.2% 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
YTD Passenger Volume are up 28.2% compared to prior year 2021 Actuals vs. 2020 Actuals
YTD O&D Passenger Volume up 40.2% compared to prior year Ground Transportation revenues
and GT operators severely impacted
Ground Transportation - Trip Activity Fav / (UnFav) Incr / (Decr) by compounding pandemic factors:
2019 YTD 2020 YTD 2021 YTD 2021 YTD Budget Variance Change from 2020
in 000's Actual Actual Actual Budget # % # % COVID-19 declines in O&D
Ground Transportation Trips passenger volumes
TNC Drop-offs 1,266 532 382 - 382 N/A (150) -28.2% Customer preference away
TNC Pick-ups 977 428 328 624 (296) -47.5% (101) -23.5% from shared ride
TNC Total 2,243 960 710 624 86 13.8% (251) -26.1%
On Demand Taxis 309 106 82 133 (51) -38.6% (24) -23.0% transportation options during
On Demand Limos 34 12 - - - N/A (12) -100.0% this pandemic.
Belled In Taxis (Annual Permit) 8 1 1 2 (1) -46.1% (0) -8.6%
Pre-Arranged Limos (Annual Permit) 34 63 39 83 (44) -53.3% (24) -38.4% TNC & Taxi recovery slower than
Courtesy Cars (cost recovery) 594 305 342 387 (45) -11.6% 37 12.2% recovery in O&D passengers,
All other Operators (cost recovery) 55 10 11 8 2 29.6% 0 4.2% reflects slower return of passengers
Total GT Trip Activity 3,278 1,458 1,184 1,237 (53) -4.3% (273) -18.8% to shared ride transportation
Total Enplanements 12,079 5,557 7,122 7,833 (711) -9.1% 1,565 28.2% options.
O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4%
O&D Enplanements 8,480 3,557 4,985 5,326 (341) -6.4% 1,429 40.2% On-demand Limos (STILA) made the
Revenue per O&D Enplanement Metrics decision to cease operations at SEA.
TNC Dropoffs 14.9% 15.0% 7.7% 0.0% 7.7% N/A -7.3% -48.8%
TNC Pickups 11.5% 12.0% 6.6% 11.7% N/A -43.9% -5.5% -45.4% All other GT operators impacted to
TNC Total 26.5% 27.0% 14.2% 11.7% N/A 21.6% -12.8% -47.3% varying degrees.
T axi 3.8% 3.0% 1.6% 2.5% -0.9% -34.4% -1.3% -45.0%
All other 24.3% 41.0% 23.8% 23.2% 0.5% 2.3% -17.2% -42.0%
Total GT Trips per O&D Enplanement 38.7% 41.0% 23.8% 23.2% 0.5% 2.3% -17.2% -42.0%
56
Ground Transportation Revenue YE
Passenger Volume forecasted to be up 90.5% compared to prior year 2021 Forecast vs. 2020 Actuals
O&D Passenger Volume forecasted to be up 108.3% compared to prior year GT Revenue
Ground Transportation recovery
Revenue Detail Fav (UnFav) Incr (Decr) remains slower than the recovery
2019 2020 2021 2021 Fcst vs Bud Var Change from 2020 in O&D enplanements as customer
$ in 000's Actual Actual Fo recast Budget $ % $ % preference away from shared ride
Ground Transportation Revenues transportation options continues
TNC Drop-offs - - 2,089 - 2,089 N/A 2,089 N/A during this pandemic recovery
TNC Pick-ups 12,982 4,032 5,417 8,700 (3,283) -37.7% 1,384 34.3% period.
TNC Total 12,982 4,032 7,506 8,700 (1,194) -13.7% 3,473 86.1%
TNC revenue continues to
On Demand Taxis 3,578 857 1,336 1,851 (515) -27.8% 478 55.8%
recover at a slower rate than the
On Demand Limos 837 371 - - - N/A (371) -100.0%
recovery in O&D enplanements.
Belled In Taxis (Annual Permit) 27 12 9 19 (10) -51.3% (3) -22.0%
Pre-Arranged Limos (Annual Permit) 611 209 402 516 (114) -22.1% 193 92.8% On-demand Taxi trip recovery is
Courtesy Cars (cost recovery) 2,019 877 1,811 2,160 (349) -16.2% 934 106.5% much slower than recovery in O&D
All other Operators (cost recovery) 418 86 86 188 (102) -54.3% - 0.0% enplanements.
Other Misc Revenues 293 113 64 194 (130) -67.2% (49) -43.4% On-demand Limos (STILA) made
Total GT Revenue 20,765 6,557 11,245 13,628 (2,383) -17.5% 4,688 71.5% the decision to cease operations at
O&D Enplanements 18,422 6,428 13,392 12,387 1,006 8.1% 6,964 108.3% SEA in late-2020.
Other GT operators impacted to
varying degrees.
57
Ground Transportation Trips YE
Trip Activity 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 # % # % GT Trip Activity
Ground Transportation Trips Ground Transportation revenues
TNC Drop-offs 2,704 787 1,067 - 1,067 N/A 280 35.5% and GT operators severely impacted
TNC Pick-ups 2,103 640 898 1,450 (552) -38.0% 258 40.3%
TNC Total 4,808 1,427 1,965 1,450 515 35.5% 537 37.7% by compounding pandemic factors:
On Demand Taxis 616 150 213 309 (96) -31.0% 63 42.0% COVID-19 declines in O&D
On Demand Limos 65 12 - - - N/A (12) -100.0% passenger volumes
Belled In Taxis (Annual Permit) 13 2 2 5 (3) -51.3% 0 21.6% Customer preference away
Pre-Arranged Limos (Annual Permit) 65 87 150 192 (42) -22.1% 63 72.6% from shared ride transportation
Courtesy Cars (cost recovery) 1,236 557 769 900 (131) -14.5% 212 38.1% options during this pandemic.
All other Operators (cost recovery) 74 16 16 27 (10) -38.9% 0 3.0%
Total GT Trip Activity 6,876 2,251 3,115 2,882 233 8.1% 864 38.4% TNC trip volume includes drop-off
Total Enplanements 25,874 10,044 19,132 18,216 916 5.0% 9,088 90.5% trips starting in 2021. Overall TNC
O&D % 70.2% 64.0% 70.0% 68.0% 2.0% 2.9% 6.0% 9.4% trip activity continues to recover at
O&D Enplanements 18,422 6,428 13,392 12,387 1,006 8.1% 6,964 108.3% a slower rate than the recovery in
Trips per O&D Enplanement O&D enplanements.
TNC Drop-offs 14.7% 12.2% 8.0% N/A 0.0% N/A -4.3% -35.0%
TNC Pick-ups 11.4% 10.0% 6.7% 11.7% -5.0% -42.7% -3.3% -32.7% On-demand Taxi trip recovery is
TNC Total 26.1% 22.2% 14.7% 11.7% 3.0% 25.3% -7.5% -33.9% much slower than recovery in O&D
T axi 3.3% 2.3% 1.6% 2.5% -0.9% -36.2% -0.7% -31.8% enplanements.
All other 7.9% 10.5% 7.0% 9.1% -2.1% -22.8% -3.5% -33.2% On-demand Limos (STILA) made the
Total Trips per O&D Enplanement 37.3% 35.0% 23.3% 23.3% 0.0% 0.0% -11.8% -33.6% decision to cease operations at SEA
in late-2020.
Other GT operators impacted to
varying degrees.
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 3,263 1,263 1,072 1,287 (215) -16.7% (191) -15.1%
Food & Beverage 12,266 5,047 6,402 7,926 (1,524) -19.2% 1,355 26.9%
Retail 7,717 3,090 4,498 5,745 (1,247) -21.7% 1,408 45.6%
Services 1,982 992 1,138 1,563 (425) -27.2% 146 14.8%
Advertising 3,502 2,691 1,166 2,216 (1,050) -47.4% (1,525) -56.7%
All Other 853 772 594 733 (139) -19.0% (178) -23.1%
Total ADR Revenue 29,581 13,856 14,871 19,470 (4,599) -23.6% 1,015 7.3%
Enplanements 12,079 5,557 7,833 7,122 711 10.0% 2,276 40.9%
2021 YTD Actuals vs. 2020 YTD Actuals
Duty Free: Reflects the slower recovery in international enplanements and lower MAG/percentage rent structure of the new lease.
Food & Beverage: Driven by the impact of higher SPE, and partially offset by slightly lower take rates.
Retail: Driven by a higher SPE, partially offset by slightly lower percentage rent in 2021.
Services: Driven by higher percentage rent, partially offset by a slightly lower SPE.
Advertising: This line is less reactive to changing passenger volumes and has seen a decline in demand.
59
Airport Dining & Retail YE Forecast
2021 Forecast vs. 2020 Actuals
COVID-19 impacts to ADR
revenue has been severe, and
compounded by passenger
volume decline, significant unit
closures during 2020,
restrictions on in-unit dining,
and a prohibition on alcohol
sales near the end of 2020.
Sales per Enplanement (SPE) on
Food & Beverage and Retail are
improving as enplanements are
returning and demand is
increasing.
Revenue per Enplanement (RPE)
is increasing as tiered rent reach
higher tiers in 2021.
Duty Free lease has been
renegotiated with a lower MAG
/ Percentage Rent Structure.
60
Non-Aero Commercial Properties
Land Rent stable, but In-Flight Kitchen revenue negatively impacted by COVID-19
2021 Forecast vs. 2020 Actuals
COVID-19 impacts to Non-Aero
Commercial Properties
revenue is primarily limited to
In-Flight Kitchen concession
revenue.
Despite domestic
enplanements returning, In-
Flight Kitchen revenue
continues to lag. We now
believe this revenue is more
closely aligned to international
flying than previously
understood.
Land/Space Rent revenues are
primarily fixed rates per sq.ft.,
and were therefore relatively
unaffected by COVID-19
impacts.
61
Clubs & Lounges
Impacted by lounge closures and passenger volume decline
2021 Forecast vs. 2020 Actuals
COVID-19 impacts to Port-owned
common use Clubs & Lounges
reflects overall decline in
passenger volume. As a result,
both the South Satellite lounge
and the Concourse A lounges
were closed in mid-March 2020
due to the decline in passengers
and in response to social
distancing requirements.
South Satellite Lounge was able
to reopen on July 1st, 2020 with
new safety protocols and is
experiencing a steady increase in
passenger activity.
A Concourse Lounge
unfortunately remained closed
through year-end 2020 and
reopened in early June 2021 due
to low passenger volumes.
62
2021 Capital Expenditures
2021 2021 2021 Budget Variance
(1) Accelerated schedule for Temp Maint Shop
YTD Year-End Budget
$ %
$ in 000's Actual Forecast (2) The ped walkway continues to slide to the right and is likely going to complete late 2021, possibly
Checked Baggage (1) 42,510 105,610 86,100 (19,510) -22.7% 2022. Additionally, in the IAF building, issues with systems, smoke control and commisssioning have
International Arrivals Facility (2) 40,439 68,439 86,500 18,061 20.9% caused delays to the IAF building
(3) Variance due to $4.0M less Construction (Contract/OFCI/Sales Tax); $1M less Permit costs
NSAT Renovation (3) 55,058 84,602 96,408 11,806 12.2%
(delayed); and $1M slipped payment for seating
Concourse A Duty Free (4) 2 34 2,461 2,427 98.6% (4) 2021 baseline was set prior to IC increase from $25,180,000 to $33,366,000
Concourse A Expansion (5) 69 7,639 5,215 (2,424) -46.5%
(5) 2021 baseline was set previous to Notebook approval (03/05/21), whereas the project budget went
SAMP Near Term Planning (6) 322 2,692 5,025 2,333 46.4%
from $60M to 71.4M
Terminal Security Enhancements (7) 175 1,276 3,479 2,203 63.3% (6) Continued scoping and analysis extended to gain better information deferring spending
RCF Security Improvements (8) 196 2,802 4,934 2,131 43.2% (7) Cash flow based upon previous procurement that was cancelled, revised cash flow per anticipated
2021-25 AFLD Pvmnt (9) 6,990 27,542 29,560 2,017 6.8% DB schedule
(8) Construction bid came lower than estimates
Concourse C New Power Center (10) 3,668 4,919 2,961 (1,958) -66.1%
Air Cargo Rd Safety (11) 448 2,080 3,972 1,892 47.6% (9) Bid result for 2021 Pavement porject came lower than Engineer's Estimate
SSAT HVAC (12) 4,830 9,725 11,505 1,780 15.5% (10) Construction accelerated by 6 months
All Other 45,431 165,437 195,060 29,624 15.2%
(11) Cash flow reflects returned bid savings and extended construction schedule
Subtotal 200,138 482,797 533,180 50,383 9.4%
CIP Cashflow Mgmt Reserve - (26,177) (41,978) (15,801) 37.6% (12) Returned $5M savings in Q1 and design delays have caused underspending
Total Spending 200,138 456,620 491,202 34,582 7.0%
Forecast spen ding variances primarily due to COVID-19 impact 63
Maritime Division
Appendix
Q2 2021 Financial Performance Report
Q2 2021 Maritime Achievements
Cruise Completed terminal upgrades inclusive of touchless restroom facilities, COVID signage, health
barriers, water bottle filling stations, and air filtration improvements.
Recreational Boating Bell Harbor Marina hosted the return of Classic Weekend, an annual public event
sponsored by the Classic Yacht Association with a full marina buyout. In addition, agreements were
completed with Parasail Seattle and Seattle's Tall Ship tour operations at the marina.
Elliott Bay Fishing and Commercial Operations - Maximized pier utilization while helping coordinate
the transition of the cruise berths to CTA for cruise ship lay berth use.
Stormwater Utility Terminal 25 oil/water separator was installed in the truck parking area.
Moving programs forward, adap ting to COVID-19 65
Maritime Environmental & Sustainability
Achievements
Completed 2020 emissions inventory.
Captured over $2.9M in grant funding to support P66 shore power.
Began data collection on maritime energy use as part of the Waterfront Clean Energy Strategy.
LDWG signed the LDW Order Amendment 5 for the design on the middle section and consultant
procurement has begun (City is the lead for consultant procurement).
S trong Q2 results in Environmental & S ustainability programs 66
Maritime 2021 Financial Forecast Summary
Fav (UnFav) Incr (Decr) Revenue Variance from Budget
2019 2020 2021 2021 Fcst vs. Budget Change from 2020
Variance Grain terminal experiencing higher volumes
$ in 000's Actual Actual Forecast B udg e t $ % $ % than expected.
Ship Canal Fishing & Operations 3,929 4,704 4,123 4,135 (12) 0% (581) -12%
Elliott Bay Fishing & Commercial Operations 6,095 5,752 4,882 4,509 373 8% (870) -15% Maritime Portfolio Management vacancies at
Recreational Boating 12,484 12,611 12,838 12,915 (77) -1% 227 2% Maritime Industrial Center and Fishermen's
Cruis e 22,410 3,824 9,000 8,558 442 5% 5,176 135%
Gra in 4,266 5,142 5,779 4,903 876 18% 637 12% 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%
Total Revenue 59,289 42,111 46,656 45,280 1,377 3% 4,545 11% Expense Variance from Budget
Expenses Direct Open FTEs and lower tenant
Maritime (Excl. Maint) 13,789 16,256 15,439 15,539 100 1% (817) -5% improvements.
Economic Development 4,987 4,511 5,115 5,365 250 5% 604 13%
Total Direct 18,776 20,767 20,554 20,904 350 2% (213) -1% Support services - Change is Maintenance
Maintenance Expenses 12,186 12,029 11,095 11,595 500 4% (934) -8% allocation methodology and open
Envir Services & Planning 2,250 2,739 1,940 2,140 200 9% (798) -29% Environmental FTEs partially offset by
Seaport Finance & Cost Recovery 835 937 977 977 0 0% 40 4%
Seaport Project Management 175 1,061 416 316 (100) -32% (644) -61% expedited Project Management hires.
Total Support Services 15,446 16,765 14,428 15,028 600 4% (2,337) -14% Central services - deeper reductions in
IT 2,685 2,719 2,838 2,853 15 1% 120 4% External Relations, partially offset by
Police Expenses 4,086 2,865 3,059 3,118 59 2% 193 7% increased legal fees.
External Relations 1,564 1,200 1,013 1,347 334 25% (187) -16%
Other Central Services 5,810 5,596 6,887 6,749 (138) -2% 1,291 23%
Aviation Division / Other 278 315 243 243 0 0% (72) -23%
Total Central Services / Other 14,423 12,695 14,041 14,311 270 2% 1,345 11%
Total Expense 48,644 50,228 49,023 50,243 1,220 2% (1,205) -2%
NOI Before Depreciation 10,644 (8,117) (2,367) (4,963) 2,597 52% 5,750 71%
Depreciation 17,627 17,624 16,899 16,899 0 0% (725) -4%
NOI After Depreciation (6,982) (25,741) (19,266) (21,862) 2,597 12% 6,475 25%
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 from Budget
Variance
$ in 000's Actual Actual Actual B udg e t $ % $ % Revenue $3.4M favorable:
Ship Canal Fishing & Operations 2,004 2,182 2,134 2,146 (12) -1% (49) -2% Ship Canal Ballard Lock
Elliott Bay Fishing & Commercial Operations 3,067 2,908 2,635 2,262 373 16% (274) -9%
Recreational Boating 6,228 6,211 6,330 6,406 (77) -1% 119 2% closure
Cruis e 8,473 133 61 4,466 (4,405) -99% (72) -54% Cruise Timing of NCL
Gra in 2,567 2,005 3,433 2,556 876 34% 1,427 71% revenue recognition and
Maritime Portfolio Management 5,019 4,884 4,914 5,039 (125) -2% 30 1%
Other 10 15 1 0 1 NA (13) -91% phasing of calls.
Total Revenue 27,368 18,338 19,507 22,875 (3,368) -15% 1,169 6% Grain 55% increase in
Expenses
Maritime (Excl. Maint) 5,745 6,869 7,031 7,801 770 10% 162 2% volume
Economic Development 2,369 2,325 2,135 3,015 880 29% (190) -8% Portfolio Management
Total Direct 8,114 9,194 9,166 10,816 1,649 15% (28) 0% Vacancy at MIC
Maintenance Expenses 5,521 4,879 5,093 6,006 913 15% 215 4%
Envir Services & Planning 1,055 1,226 785 1,070 285 27% (442) -36%
Seaport Finance & Cost Recovery 509 457 513 490 (23) -5% 56 12% Operating exp. $3.1M favorable:
Seaport Project Management 130 188 193 160 (33) -21% 5 2% Direct Payroll, Utilities,
Total Support Services 7,214 6,751 6,584 7,725 1,141 15% (167) -2%
Tenant Improvements
IT 1,320 1,393 1,335 1,410 75 5% (58) -4%
Police Expenses 1,988 1,569 1,477 1,647 170 10% (92) -6% Support Services Open
External Relations 751 615 571 683 113 16% (44) -7% FTEs, Maintenance
Other Central Services 2,789 2,652 3,277 3,311 34 1% 625 24%
Aviation Division / Other 135 137 170 121 (49) -40% 33 24% Allocation change
Total Central Services / Other 6,982 6,367 6,830 7,173 343 5% 464 7% Central Services Timing of
Total Expense 22,310 22,311 22,581 25,714 3,134 12% 270 1% Police, Lower External
NOI Before Depreciation 5,058 (3,973) (3,074) (2,839) (235) -8% 899 23% Relations, Legal
Depreciation 8,911 8,781 8,881 8,088 (793) -10% 100 1%
NOI After Depreciation (3,853) (12,754) (11,955) (10,928) (1,027) -9% 799 6%
68
Cruise Q2 Financials
Variance from Budget
Revenue less due to 2021 NCL lease
payment timing & no cruises in May or
June
Outside services, promotional hosting,
equipment, utilities, and allocation
expenses less than budget in Q2
Variance from 2020
Revenue lower due to no T91 events in
2021
Less outside services and allocations in
2021 Q2
COVID-19 Impact to 2021
Revenue to be impacted due to
partial cruise season. On track with
budget by end of year.
Reduction in travel expenses and Port
Valet to mitigate revenue impacts
69
Recreational Boating Q2 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 $76K lower due to lower monthly
Berthage and Moorage & Concession Services 5,700 5,787 5,864 (77) -1% 88 2% moorage occupancy as we expected at SBM and
Utility Sales Revenue 285 279 257 23 9% (5) -2% BHM partially related to COVID-19 business
Other Service Revenue 196 218 221 (3) -1% 22 11% disruptions
Other 30 45 64 (19) -30% 15 49% Operation expenses ~$339K favorable to budget
Total Revenue 6,211 6,330 6,406 (76) -1% 119 2% YTD from $426K favorable in Maintenance
Expenses expenses and $111K favorable in Central Services
Maritime (excl Maint) 2,176 2,449 2,334 (115) -5% 273 13%
Economic Development 116 162 146 (15) -10% 45 39% allocations, offset by ($115K) unfavorable in
Total Direct 2,293 2,611 2,481 (130) -5% 318 14% Maritime direct charges which relate to salaries &
Maintenance Expenses 1,028 1,102 1,528 426 28% 74 7% benefits and supplies.
Envir Services & Planning 191 185 155 (30) -19% (6) -3%
Seaport Finance & Cost Recovery 96 117 114 (3) -3% 21 22%
Seaport Project Management 59 69 34 (35) -102% 10 17%
Total Suport Service 1,375 1,473 1,831 358 20% 98 7% Variance from 2020
IT 369 361 380 19 5% (8) -2% Revenue $119K higher relate to increasing
Police Expenses 346 364 406 42 10% 18 5% boating interest at SBM
External Relations 135 140 166 26 16% 5 4% Operation expenses ~$655K increase in 2021 due
Other Central Services 572 786 821 35 4% 214 37%
Aviation Division/Other 28 38 27 (10) -38% 10 35% to $273K increase in Maritime (excluding
Total Central Services/Other 1,449 1,688 1,799 111 6% 239 16% Maintenance) expenses, $239K increase in
Total Expense 5,117 5,772 6,111 339 6% 655 13% Central Services; and $98K increase in support
NOI Before Depreciation 1,094 558 295 (263) -89% (536) -49% services
Depreciation 1,375 1,622 1,240 (382) -31% 247 18%
NOI After Depreciation Includes Shilshole Bay Marina, Bell Harbor Marina, and Harbor Island Marina.(281) (1,064) (945) (119) 13% (783) 279%
70
Ship Canal Fishing & Ops Q2 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 ($12K) unfavorable to the budget mainly
Berthage and Moorage & Concession Services 1,935 1,840 1,932 (92) -5% (95) -5% related to shorter Ballard lock closures period in 2021
Space Rental 120 104 97 7 7% (16) -13% by the US Army Corps Engineers
Utility Sales Revenue 56 107 46 62 135% 51 91% Operation expenses ~$171K favorable to the budgeted
Other 72 83 71 12 17% 11 15%
Total Revenue 2,182 2,134 2,146 (12) -1% (49) -2% YTD contributed by $61K favorable in Maritime direct
Expenses charges, $44K favorable in Maintenance, $51K
Maritime (excl Maint) 1,111 1,218 1,279 61 5% 107 10% favorable in Central Services due to lower allocation
Economic Development 27 25 35 10 27% (2) -6%
Total Direct 1,139 1,244 1,315 71 5% 105 9%
Maintenance Expenses 812 878 921 44 5% 66 8%
Envir Services & Planning 98 97 111 13 12% (1) -1%
Seaport Finance & Cost Recovery 38 52 51 (1) -3% 14 37% Variance from 2020
Seaport Project Management 23 23 17 (6) -37% 1 3%
Total Suport Service 970 1,050 1,100 50 5% 80 8% Revenue $49K or 2% lower contributed to shorter
IT 169 184 207 23 11% 15 9% Ballard Lock closures period in 2021 compared it to
Police Expenses 135 163 181 19 10% 27 20% 2020
External Relations 53 62 74 11 15% 9 18% Operation expenses ~$383K increase in 2021 related to
Other Central Services 220 361 364 3 1% 141 64%
Aviation Division/Other 9 15 10 (5) -52% 6 59% $107K increase in Maritime direct charges related to
Total Central Services/Other 587 785 836 51 6% 198 34% payroll expenses, $198K increase in Central Services
Total Expense 2,696 3,079 3,250 171 5% 383 14% allocation, $80K increase in Support Service
NOI Before Depreciation (513) (945) (1,105) 160 -14% (432) 84%
Depreciation 1,154 1,182 1,132 (50) -4% 29 2%
NOI After Depreciation (1,667) (2,127) (2,236) 109 -5% (460) 28%
Includes Fishermen's Terminal, Maritime Industrial Center, and Salmon Bay Marina.
71
Elliott Bay Fishing & Commercial Ops Q2 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 $373K favorable related to Ballard Lock closure
Berthage and Moorage & Dockage 1,651 1,512 1,164 348 30% (138) -8% Operation expenses ~$337K favorable to the budgeted
Space Rental 792 741 761 (21) -3% (51) -6% YTD. Utility expenses contributed $307K of the
Utility Sales Revenue 277 281 261 20 8% 4 1% favorable
Other 188 101 75 25 34% (88) -47%
Total Revenue 2,908 2,635 2,262 373 16% (274) -9%
Expenses
Maritime (excl Maint) 1,233 1,088 1,400 312 22% (145) -12%
Economic Development 74 167 156 (11) -7% 93 126%
Total Direct 1,308 1,256 1,557 301 19% (52) -4%
Maintenance Expenses 599 628 600 (27) -5% 29 5% Variance from 2020
Envir Services & Planning 414 87 98 10 10% (327) -79% Revenue ($274K) or 9% lower primarily due to shorter
Seaport Finance & Cost Recovery 60 71 67 (4) -6% 11 19% Ballard Lock closure in 2021
Seaport Project Management 24 13 20 7 36% (11) -46%
Total Suport Service 1,097 799 785 (14) -2% (298) -27% Operation expenses ~$298K decrease in 2021
IT 182 174 188 13 7% (8) -4% contributed by $145K decrease in Maritime direct
Police Expenses 190 179 199 21 10% (12) -6% charges related to $135K decrease in Utilities and $15K
External Relations 74 70 83 13 15% (4) -5% decrease in Bad Debt expenses and $66K lower
Other Central Services 312 399 407 8 2% 87 28%
Aviation Division/Other 13 15 11 (4) -40% 2 16% expenses in Support service
Total Central Services/Other 770 837 887 51 6% 66 9%
Total Expense 3,175 2,891 3,229 337 10% (283) -9%
NOI Before Depreciation (266) (257) (967) 710 -73% 10 -4%
Depreciation 1,666 1,649 1,552 (97) -6% (17) -1%
NOI After Depreciation (1,932) (1,906) (2,519) 614 -24% 26 -1%
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 Q2 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 $125K unfavorable to budget
Maritime Portfolio Management due to lower than anticipated space
Marina Office & Retail 1,838 1,615 1,992 (377) -19% (223) -12% rental revenue from MIC mainly Bristol
Maritime Industrial 2,055 2,122 2,038 84 4% 67 3% Wave.
Utilities 991 1,177 1,008 168 17% 186 19% Expenses $1,194K lower than budget due
Total Revenue 4,884 4,914 5,039 (125) -2% 30 1%
PM Direct 1,541 1,386 2,222 836 60% (154) -10% to favorable utilities and maintenance
EDD PM Direct 152 151 151 (0) 0% (1) 0% expenses contributed by a 3-year average
EDD Other 190 83 87 4 5% (107) -56% to estimate the overhead costs for 2021
MD Direct 245 210 169 (42) -20% (35) -14% actual.
Total Direct 2,128 1,831 2,629 798 44% (296) -14%
Maintenance Expenses 1,094 1,214 1,528 314 26% 119 11%
Enviromental & Sustainability 122 110 127 17 15% (11) -9% Variance from 2020
Seaport Finance & Cost Recovery 103 127 119 (8) -6% 24 23% Revenue relatively flat.
Seaport Project Management 29 25 32 8 31% (5) -17% Expenses down $27K due to lower than
Total Support Services 1,348 1,475 1,806 331 22% 127 9%
Police Expenses 324 327 364 38 12% 2 1% prior year utilities.
Other Corp Expenses 1,018 1,158 1,185 28 2% 140 14%
Total Central Services/Other 1,342 1,484 1,550 65 4% 143 11% COVID-19 Impact to 2021
Total Expense 4,817 4,791 5,984 1,194 25% (27) -1% Expense projects either delayed or
NOI Before Depreciation 66 123 (945) 1,068 113% 57 85%
Depreciation 1,258 1,260 1,155 (105) -8% 2 0% cancelled.
NOI After Depreciation (1,191) (1,137) (2,100) 964 46% 54 5%
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 Q2 Financials
Fav (UnFav) Incr (Decr)
2020 YTD 2021 YTD 2021 YTD Actual vs. Budget Change from 2020 Variance from Budget
Variance Revenue on tracking ahead of budget
$ in 000's Actual Actual B udg e t $ % $ % with large corn volumes.
Lease Revnue 2,005 3,433 2,556 876 34% 1,427 71% Expenses tracking lower than budget
Total Revenue 2,005 3,433 2,556 876 34% 1,427 71%
Expenses due to change in maintenance
Maritime (Excl. Maint) 87 99 89 (10) -11% 12 14% allocation policy.
Economic Development 27 21 23 2 8% (5) -20%
Total Direct 114 121 112 (8) -7% 7 6% Variance from 2020
Maintenance Expenses 150 140 371 231 62% (10) -7% Revenue and volumes up from 2020 YTD
Envir Services & Planning 33 27 29 2 8% (6) -18% with a 55% increase in metric tons.
Seaport Finance & Cost Recovery 25 27 24 (3) -11% 1 6%
Seaport Project Management 6 5 5 0 7% (1) -16%
Total Support Services 214 198 429 232 54% (16) -7%
IT 50 43 40 (3) -8% (7) -14%
Police Expenses 91 77 86 9 10% (14) -16%
External Relations 35 29 35 5 15% (6) -17%
Other Central Services 149 163 168 5 3% 14 10%
Aviation Division / Other 6 5 4 (0) -6% (1) -20%
Total Central Services / Other 330 316 331 15 5% (14) -4%
Total Expense 657 635 873 239 27% (23) -3%
NOI Before Depreciation 1,348 2,798 1,683 1,115 66% 1,450 108%
Depreciation 266 167 145 (22) -16% (99) -37%
NOI After Depreciation 1,082 2,631 1,538 1,092 71% 1,549 143%
74
Maritime Capital 2021
T91 Northwest Fender Construction bid well
under Engineer's Estimate. Have reduced forecast
2021 YTD 2021 2021 Budget Variance
$ in 000's Actual Fore cas t Budge t $ % accordingly.
T117 Restoration 2,050 8,180 8,809 629 7%
T91 Northwest Fender 384 6,160 7,761 1,601 21% FT Maritime Innovation Center Budget increase
MD Small Projects 415 1,711 3,383 1,672 49%
MD Fleet 199 3,342 3,201 (141) -4% due to unexpected increased Design costs, and new
FT Maritime Innovation Center 135 604 1,475 871 59% scope (risk mitigation measures), but also due to
T91 Berth 6&8 Redev 361 1,134 1,025 (109) -11% the escalation adjustment triggered by wage
P91 Pass Term Upgrade COV 7 230 1,000 770 77% inflation projected for 2022 and expected skilled
P66 Shore Power 149 443 765 322 42%
SBM Restrms/Service Bldgs Rep 316 367 665 298 45% labor shortages announced in late March 2021.
FT Gateway Building 176 438 600 162 27% Design progress towards 90% delayed due to need
All Other Projects 867 (908) (2,489) (1,581) 64% for Commission authorization to amend NTE
Total Maritime 5,059 21,701 26,195 4,494 17% amount on Service Agreement and additional
funding to complete design and permitting phase.
MD Small Projects Several projects deferred to
2022 per the sponsor's Request.
75
Economic Development Division
Appendix
Q2 2021 Financial Performance Report
Q2 2021 EDD Program Advancements
Portfolio Management maintained 95% occupancy across real estate portfolio despite ongoing COVID -
19 pandemic challenges.
Real Estate Development Executed ground lease at T - 106.
Diversity in Contracting - Selected twelve new participants for new PortGen accelerator program.
Partnered with Sound Transit and WSDOT to provide disadvantaged business enterprises with technical
training.
Tourism Earned media resulting from international office activities YTD: $525K. Created webinars in
collaboration with U.S. Commercial Service, Visit USA Committees, CLIA, tour operators and travel trade
publications to broadcast Washington tourism opportunities.
Economic Development and Innovation Staff is administering 25 Economic Development Partnership
grants with participating cities. Supporting second Maritime Blue 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 Bell
$ in 000's Actual Actual Forecast B udg e t $ % $ % Street Garage
Revenue 8,912 7,808 7,913 8,313 (400) -5% 105 1% Updated Conference and Event
Conf & Event Centers 12,239 1,662 4,135 5,035 (900) -18% 2,473 149%
Total Revenue 21,151 9,470 12,048 13,348 (1,300) -10% 2,578 27% volumes, lower than originally
Expenses expected.
Portfolio Management 3,732 3,073 3,301 3,401 100 3% 227 7%
Conf & Event Centers 10,218 4,440 4,420 4,920 500 10% (19) 0%
P69 Facilities Expenses 215 232 177 222 45 20% (56) -24% Expense Variance Budget
RE Dev & Planning 136 209 154 154 0 0% (55) -26% Reduction in Conference and
EconDev Expenses Other 930 938 695 835 140 17% (243) -26% Event center volumes driving
Maintenance Expenses 3,145 3,042 3,037 2,537 (500) -20% (5) 0%
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 12,843 13,128 285 2% (127) -1% Change in the Maintenance
Diversity in Contracting 152 103 122 142 20 14% 19 19%
Tourism 1,337 954 2,181 2,481 300 12% 1,227 129% allocation methodology.
EDD Grants 785 778 1,060 1,060 0 0% 282 36% Moving $300K of Washington
Total EDD Initiatives 2,274 1,834 3,363 3,683 320 9% 1,528 83% Tourism Alliance costs to 2022.
Environmental & Sustainability 24 44 23 31 8 26% (21) -48%
Police Expenses 61 64 205 209 4 2% 142 223% Lower External Relations
Other Central Services 5,234 5,539 4,051 4,242 191 5% (1,488) -27% expenses.
Aviation Division 114 161 120 120 0 0% (41) -25%
Total Central Services & Aviation 5,433 5,808 4,400 4,603 203 4% (1,408) -24%
Envir Remed Liability 0 0 0 0 0 NA 0 NA
Total Expense 27,155 20,611 20,605 21,413 808 4% (6) 0%
NOI Before Depreciation (6,004) (11,141) (8,557) (8,065) (492) -6% 2,584 23%
Depreciation 3,647 3,611 3,216 3,216 0 0% (395) -11%
NOI After Depreciation (9,651) (14,753) (11,773) (11,281) (492) -4% 2,980 20%
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 4,421 4,119 3,669 4,042 (373) -9% (450) -11%
Conf & Event Centers 5,963 1,240 420 1,329 (909) -68% (819) -66%
Total Revenue 10,384 5,359 4,089 5,371 (1,282) -24% (1,270) -24%
Expenses
Portfolio Management 1,922 1,583 1,643 1,687 44 3% 60 4%
Conf & Event Centers 4,833 2,378 1,271 1,890 618 33% (1,107) -47%
P69 Facilities Expenses 92 119 90 114 24 21% (29) -24%
RE Dev & Planning 48 91 94 76 (17) -23% 3 3%
EconDev Expenses Other 352 488 298 398 100 25% (190) -39%
Maintenance Expenses 1,563 1,170 1,792 1,282 (509) -40% 621 53%
Maritime Expenses (Excl Maint) 106 229 490 528 38 7% 261 114%
Total EDD & Maritime Expenses 8,916 6,058 5,678 5,976 298 5% (381) -6%
Diversity in Contracting 99 50 48 70 23 32% (2) -5%
Tourism 526 374 380 982 602 61% 6 1%
EDD Grants (4) (27) 87 75 (12) -17% 115 -420%
Total EDD Initiatives 621 397 515 1,127 612 54% 118 30%
Environmental & Sustainability 173 101 13 15 3 17% (88) -87%
Police Expenses 101 108 99 111 12 10% (9) -8%
Other Central Services 2,819 2,760 2,093 2,100 8 0% (667) -24%
Aviation Division 53 69 95 64 (31) -48% 26 38%
Total Central Services & Aviation 3,147 3,037 2,300 2,291 (9) 0% (738) -24%
Envir Remed Liability 0 0 0 0 0 NA 0 NA
Total Expense 12,684 9,493 8,493 9,394 902 10% (1,000) -11%
NOI Before Depreciation (2,300) (4,134) (4,403) (4,023) (380) -9% (269) -7%
Depreciation 1,833 1,774 1,919 1,517 (402) -26% 145 8%
NOI After Depreciation (4,133) (5,908) (6,322) (5,540) (782) -14% (414) -7%
79
Portfolio Management Q2 Financials
Fav(UnFav) Budget Incr/(Decr) Variance from Budget
2020 YTD 2021 Year-to-Date Variance Change from 2020
$ in 000's Actual Actual B udg e t $ % $ % Revenue unfavorable to budget due to Conference &
Portfolio Management Events Centers' revenue decline as a result of the on-
Central Harbor 3,264 2,970 3,272 (302) -9% (294) -10% going COVID-19 restrictions on meetings and events.
T-91 Uplands 840 684 755 (71) -9% (156) -23%
Conference & Events Centers 1,240 420 1,329 (909) -68% (819) -195% Expenses lower than budget due to lower BHICC
Foreign Trade Zone 15 15 15 0 0% 0 0% volumes.
Total Revenue 5,359 4,089 5,371 (1,282) -24% (1,270) -31%
PM Outside Services 193 304 281 (22) -8% 111 36%
PM Direct 3,769 2,609 3,296 686 21% (1,160) -44% Variance from 2020
EDD Other 750 530 703 173 25% (221) -42% Conference & Events Centers (BHICC & WTCS)
MD Direct 171 147 153 6 4% (24) -16% revenue significantly declined due to the on-going
Total Direct 4,883 3,589 4,433 843 19% (1,294) -36%
Maintenance Expenses 1,170 1,792 1,281 (511) -40% 621 35% COVID-19 restrictions on meetings and events.
Enviromental & Sustainability 85 74 133 59 44% (11) -15% Washington State re-opening process has been slow
Seaport Finance & Cost Recovery 230 214 208 (6) -3% (16) -7% moving due to waves of COVID-19.
Seaport Project Management 58 55 33 (21) -64% (3) -6%
Total Support Services 1,543 2,134 1,656 (479) -29% 591 28% Expenses down from BHICC volumes.
Police Expenses 108 99 111 12 10% (9) -9%
Other Corp Expenses 2,309 2,201 2,167 (34) -2% (108) -5% COVID-19 Impact to 2021
Total Central Services/Other 2,417 2,300 2,277 (23) -1% (117) -5%
Total Expense 8,843 8,024 8,366 342 4% (820) -10% Loss of revenues from BHICC & WTCS due to the on-
NOI Before Depreciation (3,484) (3,934) (2,995) (939) -31% (450) -11% going COVID-19 restrictions on meetings and events.
Depreciation 1,772 1,917 1,517 (400) -26% 145 8% Expense projects either delayed or cancelled.
NOI After Depreciation (5,256) (5,851) (4,512) (1,339) -30% (595) -10%
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
2021 YTD 2021 2021 BHICC Modernization Approved annual
Budget Variance
Actual Fore cas t Budge t 2021 budget is erroneously showing
$ in 000's $ % expense portion and is showing it twice.
BHICC Interior Modernization 276 854 1,990 1,136 57%
P69 Underdock Utility Rpl 105 153 1,028 875 85% P69 Under Dock Utility Replacement City
CW Bridge Elev Modernization 48 893 943 50 5% of Seattle permitting approval process is
WTC HVAC Replacement 59 984 848 (136) -16%
taking a lot longer and the Corps permit is
T91 Uplands Dev Phase 1 311 493 800 307 38%
P66 Roof Upgrades 90 544 544 0 0% expected to take longer.
EDD Small Projects 34 390 522 132 25%
Tenant Improvements -Capital 0 58 289 231 80% T-91 Upland Development Decrease in
EDD Technology Projects 0 250 250 0 0% projected spending for 2021 due to the
P66 HVAC Systems Upgrade 0 0 185 185 100% need to procure new Service Agreement for
All Other Projects 50 (619) (1,752) (1,133) 65% Professional Design Services, after
Total Economic Development 973 4,000 5,647 1,647 29% terminating contract with former design
consultant . Design can resume after the
new contract is executed, in Q4 2021.
81
Central Services
Appendix
Q2 2021 Financial Performance Report
Central Services Business Events
The Port conducted economic recovery listening sessions to gather feedback on how the
Port can contribute to an equitable recovery.
Port leaders joined Governor Jay Inslee and other Washington State leaders for the Climate
Bill Signing which includes the Clean Fuel Standard.
The Port's vaccine clinic at SEA concluded in May and administered over 7,800 doses of the
COVID vaccine during its operations.
The Port held a community engagement on the redevelopment of Fishermen's Terminal and
several Terminal 5 outreach presentations .
The Port hosted a webinar to inform hospitality/tourism partners on 2021 operations, health
and safety protocols, and environmental stewardship.
Police Department, with Seattle Police Department and other stakeholders, responded to a
protest at Terminal 18 to prevent a ship from unloading its cargo.
83
Central Services Expense by Category
Fav (UnFav) Incr (Decr)
2019 YTD 2020 YTD 2021 YTD 2021 YTD Act/Rvsd Bud Var Change from 2020
$ in 000's Actual Actual Actual Budget $ % $ %
Salaries & Benefits 32,291 34,375 35,205 35,297 92 0.3% 830 2.4%
Wages & Benefits 13,316 14,371 13,695 14,061 366 2.6% (676) -4.7%
Payroll to Capital Projects 8,094 8,715 8,222 9,509 1,287 13.5% (493) -5.7%
Equipment Expense 949 965 571 974 402 41.3% (394) -40.8%
Supplies & Stock 451 407 229 523 294 56.2% (178) -43.7%
Outside Services 10,541 12,983 11,601 13,513 1,912 14.1% (1,382) -10.6%
Travel & Other Employee Expenses 1,069 766 417 745 328 44.1% (349) -45.6%
Insurance Expense 1,117 1,085 1,507 1,511 4 0.3% 422 38.9%
Litigated Injuries & Damages - - - - - 0.0% - 0.0%
Other Expenses 1,726 1,311 1,050 1,515 464 30.7% (261) -19.9%
Charges to Capital Projects/Overhead Alloc (13,669) (16,284) (14,188) (16,275) (2,087) 12.8% 2,096 -12.9%
TOTAL 55,884 58,694 58,309 61,373 3,064 5.0% (385) -0.7%
Payroll savings due to staff vacancies.
Wages favorable due to lower overtime for Police due to delay 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 2,117 181 1,936 1070.3% (395) -15.7%
Core Central Support Services 76,059 80,841 87,093 85,678 (1,415) -1.7% 6,252 7.7%
P olic e 27,793 27,538 27,793 28,317 524 1.9% 255 0.9%
Engineering/PCS 10,038 9,096 9,519 9,199 (321) -3.5% 423 4.7%
Total Operating Expenses 113,891 117,476 124,405 123,194 (1,211) -1.0% 6,929 5.9%
85
Central Services Capital Spending
2021 2021 2021 Budget Variance
YTD Year-End
Budget $ %
$ in 000's Actual Fore cas t
Infrastructure - Small Cap 413 1,866 1,911 45 2.4%
Services Tech - Small Cap 543 1,226 1,226 0 0.0%
Radio System Upgrade 2,062 2,455 2,955 500 16.9%
Office Wi-Fi Refresh 4 1,351 1,350 (1) -0.1%
Phone System Upgrade 112 840 840 0 0.0%
Environmental MIS projects 2 599 600 1 0.2%
CDD Fleet Replacement 170 803 1,123 320 28.5%
Corporate Fleet Replacement 0 685 685 0 0.0%
Other (note 1) 235 1,824 1,968 144 7.3%
Subtotal 3,541 11,649 12,658 1,009 8.0%
CIP Cashflow Adjustment 0 (3,000) (3,000) 0 0.0%
TOTAL 3,541 8,649 9,658 1,009 10.4%
Note:
(1) "Other" includes remaining ICT projects and small capital projects/acquisitions.
86
Portwide
Appendix
Q2 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 24,941 21,218 22,166 21,137 1,030 4.9% 949 4.5%
Maritime Revenues 27,368 18,338 19,507 22,875 (3,368) -14.7% 1,169 6.4%
EDD Revenues 10,384 5,359 4,089 5,371 (1,282) -23.9% (1,270) -23.7%
SWU & Other 4,939 3,383 3,713 1,872 1,841 98.4% 330 9.8%
Total Operating Revenues 67,632 48,298 49,475 51,255 (1,779) -3.5% 1,178 2.4%
Total Operating Expenses 40,522 34,441 35,658 40,774 5,116 12.5% 1,218 3.5%
NOI before Depreciation 27,110 13,857 13,817 10,481 3,337 31.8% (40) -0.3%
Depreciation 19,623 18,794 18,949 17,632 (1,317) -7.5% 155 0.8%
NOI after Depreciation 7,487 (4,936) (5,132) (7,152) 2,020 -28.2% (195) 4.0%
Non-Airport Operating Revenue is $1.8M unfavorable due to lower revenues from Cruise and Conference & Event Center;
partially offset by higher revenues from Grain, NWSA Distributable Revenues, and unbudgeted Police Revenues.
Expenses are $5.1M 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
Fav (UnFav) Incr (Decr)
2019 YTD 2020 YTD 2021 YTD 2021 YTD Act/Rvsd Bud Var Change from 2020
$ in 000's Actual Actual Actual Budge t $ % $ %
Aeronautical Revenues 175,927 163,722 143,188 178,518 (35,330) -19.8% (20,534) -12.5%
- - - -
Public Parking 40,401 20,002 25,537 25,729 (192) -0.7% 5,536 27.7%
Rental Cars - Operations 15,560 7,591 11,497 10,740 757 7.0% 3,906 51.5%
Rental Cars - Operating CFC 4,505 - - - - 0.0% - 0.0%
ADR & Terminal Leased Space 32,689 16,918 17,764 22,012 (4,248) -19.3% 845 5.0%
Ground Transportation 9,979 4,374 4,208 5,961 (1,753) -29.4% (166) -3.8%
Employee Parking 5,193 4,678 4,457 4,844 (386) -8.0% (221) -4.7%
Airport Commercial Properties 7,072 5,777 5,541 6,367 (827) -13.0% (236) -4.1%
Airport Utilities 3,665 2,758 3,010 3,784 (774) -20.4% 252 9.1%
Clubs and Lounges 4,456 1,714 709 2,453 (1,744) -71.1% (1,005) -58.6%
Cruise 8,473 133 61 4,466 (4,405) -98.6% (72) -54.3%
Recreational Boating 6,228 6,211 6,330 6,406 (77) -1.2% 119 1.9%
Fishing & Operations 5,071 5,091 4,768 4,407 361 8.2% (322) -6.3%
Gra in 2,567 2,005 3,433 2,556 876 34.3% 1,427 71.2%
Maritime Portfolio Management 5,019 4,884 4,914 5,039 (125) -2.5% 30 0.6%
Central Harbor Management 4,406 4,104 3,654 4,027 (373) -9.3% (450) -11.0%
Conference & Event Centers 5,963 1,240 420 1,329 (909) -68.4% (819) -66.1%
NWSA Distributable Revenue 24,941 21,218 22,166 21,137 1,030 4.9% 949 4.5%
Other 6,049 3,824 4,225 2,347 1,877 80.0% 400 10.5%
Total Operating Revenues (w/o Aero) 192,237 112,523 122,695 133,606 (10,911) -8.2% 10,172 9.0%
TOTAL 368,164 276,244 265,883 312,124 (46,241) -14.8% (10,361) -3.8%
89
Port Wide Operating Expense Summary
Fav (UnFav) Incr (Decr)
2019 YTD 2020 YTD 2021 YTD 2021 YTD Act/Rvsd Bud Change from 2020
$ in 000's Actual Actual Actual Budge t $ % $ %
Salaries & Benefits 65,172 71,427 71,476 72,315 839 1.2% 50 0.1%
Wages & Benefits 64,028 67,147 64,484 65,276 792 1.2% (2,663) -4.0%
Payroll to Capital Projects 12,648 14,460 14,733 16,280 1,547 9.5% 273 1.9%
Outside Services 43,613 45,545 40,724 49,861 9,136 18.3% (4,821) -10.6%
Utilitie s 13,103 12,104 12,860 14,620 1,760 12.0% 756 6.2%
Equipment Expense 4,478 4,211 2,960 3,426 466 13.6% (1,250) -29.7%
Supplies & Stock 5,286 4,653 4,030 4,519 489 10.8% (623) -13.4%
Travel & Other Employee Expenses 2,476 1,603 864 1,375 511 37.2% (740) -46.1%
Third Party Mgmt Op Exp 6,494 3,228 2,010 3,141 1,131 36.0% (1,218) -37.7%
B&O Taxes 2,226 1,716 1,682 1,983 301 15.2% (34) -2.0%
Other Expenses 20,272 2,188 6,392 7,031 639 9.1% 4,204 192.2%
Charges to Capital Projects/Overhead Alloc (24,033) (30,462) (26,440) (30,694) (4,254) 13.9% 4,022 -13.2%
TOTAL 215,765 197,820 195,776 209,132 13,356 6.4% (2,044) -1.0%
Payroll expenses were $3.2M below budget primarily due to vacant positions.
Outside Services were $9.1M favorable to budget due to project delays.
Travel & Other Employee Expenses were $511K lower than budget due to cutting/eliminating non-essential business
travel and training.
Charges to Capital Projects were lower by ($4.3M) due to delays in Capital Projects
90
Port Wide Net Operating Income Performance
Operating Revenues are
expected to be $107.7M
unfavorable to the
budget due to reduced
operations and lower
airline activity.
Total Operating expenses
are expected to be $1.9M
above budget mainly due
to lower charges to
Capital Projects.
Net Operating Income is
forecasted to be $109.7M
below.
91
Port Wide Capital Spending Summary
2021 2021 2021 Budget Variance
$ in 000's YTD Actual Forecast Budget $ %
Aviation 200,138 456,620 491,202 34,582 7.0%
Maritime 5,059 21,701 26,195 4,494 17.2%
Economic Development 973 4,001 5,647 1,646 29.1%
Central Services & Other (note 1) 5,804 12,704 13,605 901 6.6%
TOTAL 211,974 495,026 536,649 41,623 7.8%
Note:
(1) "Other" includes 100% Port legacy projects in the North Harbor and Storm Water Utility Small Capital projects.
92
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