NTRS » Topics » III) Operating Expense and Real Estate Tax Adjustments

These excerpts taken from the NTRS 10-K filed Feb 28, 2008.

III) Operating Expense and Real Estate Tax Adjustments

The following are our findings by category. (Please see the Attachment for specific dates and amounts.)

III) Operating Expense and
Real Estate Tax Adjustments

The following are our findings by category. (Please see the Attachment for specific dates and amounts.)

STYLE="margin-top:6px;margin-bottom:0px">1) Capital Improvements

Pursuant to Section 4.A.(iii) of the
Lease, “... Operating Expenses shall not include, however, the following: (c) Costs of capital improvements, except that Operating Expenses shall include (1) the cost of any capital improvements completed after the Commencement Date
of the Existing Lease (other than in connection with the original construction of the Building) which are initially projected by Landlord to reduce Operating Expenses...”.

FACE="Times New Roman" SIZE="2">RTG noticed certain invoices, the cost of which, were included in Operating Expenses, but should have been classified as capital improvements, and because the items did not reduce Operating Expenses, should be
excluded from Operating Expenses. The invoices were for items that have a useful life in excess of one year. Expenditures incurred for an item that has a useful life greater than one year should be classified as a capital improvement in accordance
with generally accepted accounting principles.

Total adjustment is $42,200.00.

FACE="Times New Roman" SIZE="2">2) Tenant Specific Expenditures

Pursuant to Section 4.A.(iii) of the Lease, “...Operating Expenses shall not
include, however, the following: (p) Expenses incurred in connection with services or other benefits of a type which are not provided to Tenant but which are provided to another tenant or occupant of the Building;”.

STYLE="margin-top:12px;margin-bottom:0px">RTG noticed an invoice for the removal of old furniture from floors 21, 25, and 26 floors. These costs were not incurred for the common area maintenance of the building
and similar cleaning costs requested by Northern Trust are reimbursed directly by Northern Trust, and therefore, should be excluded from operating expenses.

SIZE="2">Total adjustment is $486.56.

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 28, 2008
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki