Business Context and Reporting Period
This Form 8-K is filed by BofI Holding, Inc. (not Axos Financial, Inc.) with a report date of December 5, 2011, and signed on December 9, 2011. The filing discloses the entry into a material definitive agreement regarding the relocation of the company's headquarters.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on the terms of a new office lease.
- New Lease Term: 92 months, commencing November 1, 2012.
- New Location: 4350 La Jolla Village Drive, Suite 600, San Diego, CA.
- Space Size: Approximately 39,823 square feet (with options for an additional ~18,000 square feet).
- Old Lease: Current space at 12777 High Bluff Drive (~31,929 sq. ft.) expires October 31, 2012.
Material Changes and Lease Terms
The company is relocating to a larger facility. The base rent is structured with annual increases over the lease term, subject to certain abatement provisions.
| Lease Period | Monthly Base Rent | Annual Base Rent |
|---|---|---|
| 11/1/2012 - 10/31/2013 | $98,249.00 | $1,178,988.00 |
| 11/1/2013 - 10/31/2014 | $102,615.00 | $1,231,380.00 |
| 11/1/2014 - 10/31/2015 | $107,418.00 | $1,289,016.00 |
| 11/1/2015 - 10/31/2016 | $112,222.00 | $1,346,664.00 |
| 11/1/2016 - 10/31/2017 | $117,025.00 | $1,404,300.00 |
| 11/1/2017 - 10/31/2018 | $122,265.00 | $1,467,180.00 |
| 11/1/2018 - 10/31/2019 | $127,941.00 | $1,535,292.00 |
| 11/1/2019 - 06/30/2020 | $133,618.00 | $1,068,944.00 |
Note: Months 2 through 9 of the initial base rent period have been abated. The company is also responsible for operating costs in excess of the base year.
Guidance, Outlook, and Risks
The filing contains no financial guidance, management commentary on future performance, or discussion of risks beyond the commitment to the new lease terms. The primary operational change is the physical relocation of headquarters.
Investor Verification Checklist
- Verify the total cost of the lease including estimated operating costs (CAM) which are not fixed in this summary.
- Confirm the impact of the rent abatement on the first-year cash flow.
- Assess the strategic rationale for increasing office space from ~32,000 to ~40,000 square feet.
- Note that the registrant is BofI Holding, Inc., not Axos Financial, Inc.