Maryland | 001-35481 | 42-1579325 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
2021 Spring Road, Suite 200, Oak Brook, Illinois | 60523 | |
(Address of principal executive offices) | (Zip Code) |
RETAIL PROPERTIES OF AMERICA, INC. | |||
(Registrant) | |||
By: | /s/ HEATH R. FEAR | ||
Heath R. Fear | |||
Date: | November 3, 2015 | Executive Vice President, | |
Chief Financial Officer and Treasurer |
▪ | Operating funds from operations (Operating FFO) attributable to common shareholders of $64.4 million, or $0.27 per share, compared to $65.7 million, or $0.28 per share, for the same period in 2014; |
▪ | Funds from operations (FFO) attributable to common shareholders of $53.7 million, or $0.23 per share, compared to $65.0 million, or $0.28 per share, for the same period in 2014, the decrease being primarily attributable to non-operating transactions; and |
▪ | Net income (loss) attributable to common shareholders of $76.0 million, or $0.32 per share, compared to $(29.1) million, or $(0.12) per share, for the same period in 2014. |
▪ | Operating FFO attributable to common shareholders of $188.7 million, or $0.80 per share, compared to $194.4 million, or $0.82 per share, for the same period in 2014; |
▪ | FFO attributable to common shareholders of $168.4 million, or $0.71 per share, compared to $194.5 million, or $0.82 per share, for the same period in 2014, the decrease being primarily attributable to non-operating transactions; and |
▪ | Net income attributable to common shareholders of $115.0 million, or $0.49 per share, compared to $10.3 million, or $0.04 per share, for the same period in 2014. |
▪ | 2.0% increase in same store net operating income (NOI) over the comparable period in 2014; |
▪ | 4.2% increase in same store NOI, excluding the impact of strategic remerchandising activities, over the comparable period in 2014; |
▪ | Total portfolio percent leased, including leases signed but not commenced: 94.8% at September 30, 2015, down 20 basis points from 95.0% at September 30, 2014 and up 30 basis points from 94.5% at June 30, 2015; |
▪ | Retail portfolio percent leased, including leases signed but not commenced: 94.6% at September 30, 2015, down 10 basis points from 94.7% at September 30, 2014 and up 20 basis points from 94.4% at June 30, 2015; |
▪ | Retail portfolio annualized base rent (ABR) per occupied square foot of $16.17 at September 30, 2015, up 5.4% from $15.34 ABR per occupied square foot at September 30, 2014; |
▪ | Target market multi-tenant retail portfolio ABR per occupied square foot of $18.06; |
▪ | 666,000 square feet of retail leasing transactions comprised of 131 new and renewal leases; and |
▪ | Positive comparable cash leasing spreads of 19.6% on new leases and 7.3% on renewal leases for a blended spread of 9.4%. |
▪ | 3.4% increase in same store NOI over the comparable period in 2014; |
▪ | 4.9% increase in same store NOI, excluding the impact of strategic remerchandising activities, over the comparable period in 2014; |
▪ | 2,213,000 square feet of retail leasing transactions comprised of 412 new and renewal leases; and |
▪ | Positive comparable cash leasing spreads of 21.8% on new leases and 6.5% on renewal leases for a blended spread of 8.4%. |
September 30, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Investment properties: | ||||||||
Land | $ | 1,265,170 | $ | 1,195,369 | ||||
Building and other improvements | 4,449,686 | 4,442,446 | ||||||
Developments in progress | 47,008 | 42,561 | ||||||
5,761,864 | 5,680,376 | |||||||
Less accumulated depreciation | (1,400,363 | ) | (1,365,471 | ) | ||||
Net investment properties | 4,361,501 | 4,314,905 | ||||||
Cash and cash equivalents | 116,538 | 112,292 | ||||||
Accounts and notes receivable (net of allowances of $8,160 and $7,497, respectively) | 79,390 | 86,013 | ||||||
Acquired lease intangible assets, net | 140,064 | 125,490 | ||||||
Assets associated with investment properties held for sale | — | 33,640 | ||||||
Other assets, net | 106,356 | 131,520 | ||||||
Total assets | $ | 4,803,849 | $ | 4,803,860 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Mortgages payable, net (includes unamortized premium of $2,013 and $3,972, respectively, and unamortized discount of $(2) and $(470), respectively) | $ | 1,230,590 | $ | 1,634,465 | ||||
Unsecured notes payable, net (includes unamortized discount of $(1,119) and $0, respectively) | 498,881 | 250,000 | ||||||
Unsecured term loan | 450,000 | 450,000 | ||||||
Unsecured revolving line of credit | 130,000 | — | ||||||
Accounts payable and accrued expenses | 69,768 | 61,129 | ||||||
Distributions payable | 39,301 | 39,187 | ||||||
Acquired lease intangible liabilities, net | 117,085 | 100,641 | ||||||
Liabilities associated with investment properties held for sale | — | 8,203 | ||||||
Other liabilities | 75,175 | 70,860 | ||||||
Total liabilities | 2,610,800 | 2,614,485 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Preferred stock, $0.001 par value, 10,000 shares authorized, 7.00% Series A cumulative redeemable preferred stock, 5,400 shares issued and outstanding as of September 30, 2015 and December 31, 2014; liquidation preference $135,000 | 5 | 5 | ||||||
Class A common stock, $0.001 par value, 475,000 shares authorized, 237,287 and 236,602 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively | 237 | 237 | ||||||
Additional paid-in capital | 4,929,255 | 4,922,864 | ||||||
Accumulated distributions in excess of earnings | (2,737,562 | ) | (2,734,688 | ) | ||||
Accumulated other comprehensive loss | (380 | ) | (537 | ) | ||||
Total shareholders' equity | 2,191,555 | 2,187,881 | ||||||
Noncontrolling interests | 1,494 | 1,494 | ||||||
Total equity | 2,193,049 | 2,189,375 | ||||||
Total liabilities and equity | $ | 4,803,849 | $ | 4,803,860 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
Rental income | $ | 116,715 | $ | 120,143 | $ | 355,525 | $ | 355,093 | ||||||||
Tenant recovery income | 28,901 | 29,230 | 89,617 | 86,086 | ||||||||||||
Other property income | 5,339 | 2,074 | 9,898 | 5,905 | ||||||||||||
Total revenues | 150,955 | 151,447 | 455,040 | 447,084 | ||||||||||||
Expenses | ||||||||||||||||
Property operating expenses | 22,741 | 23,638 | 71,589 | 72,306 | ||||||||||||
Real estate taxes | 20,961 | 20,574 | 61,957 | 58,055 | ||||||||||||
Depreciation and amortization | 52,871 | 54,691 | 163,345 | 163,582 | ||||||||||||
Provision for impairment of investment properties | 169 | 54,584 | 4,113 | 60,378 | ||||||||||||
General and administrative expenses | 10,939 | 6,982 | 35,949 | 22,794 | ||||||||||||
Total expenses | 107,681 | 160,469 | 336,953 | 377,115 | ||||||||||||
Operating income (loss) | 43,274 | (9,022 | ) | 118,087 | 69,969 | |||||||||||
Gain on extinguishment of other liabilities | — | — | — | 4,258 | ||||||||||||
Equity in loss of unconsolidated joint ventures, net | — | (232 | ) | — | (1,443 | ) | ||||||||||
Gain on change in control of investment properties | — | — | — | 24,158 | ||||||||||||
Interest expense | (40,425 | ) | (37,356 | ) | (110,610 | ) | (101,092 | ) | ||||||||
Other income, net | 479 | 4,706 | 1,398 | 5,383 | ||||||||||||
Income (loss) from continuing operations | 3,328 | (41,904 | ) | 8,875 | 1,233 | |||||||||||
Discontinued operations: | ||||||||||||||||
Loss, net | — | — | — | (148 | ) | |||||||||||
Gain on sales of investment properties | — | — | — | 655 | ||||||||||||
Income from discontinued operations | — | — | — | 507 | ||||||||||||
Gain on sales of investment properties | 75,001 | 15,168 | 113,214 | 15,695 | ||||||||||||
Net income (loss) | 78,329 | (26,736 | ) | 122,089 | 17,435 | |||||||||||
Net income (loss) attributable to the Company | 78,329 | (26,736 | ) | 122,089 | 17,435 | |||||||||||
Preferred stock dividends | (2,362 | ) | (2,362 | ) | (7,087 | ) | (7,087 | ) | ||||||||
Net income (loss) attributable to common shareholders | $ | 75,967 | $ | (29,098 | ) | $ | 115,002 | $ | 10,348 | |||||||
Earnings (loss) per common share - basic and diluted | ||||||||||||||||
Continuing operations | $ | 0.32 | $ | (0.12 | ) | $ | 0.49 | $ | 0.04 | |||||||
Discontinued operations | — | — | — | — | ||||||||||||
Net income (loss) per common share attributable to common shareholders | $ | 0.32 | $ | (0.12 | ) | $ | 0.49 | $ | 0.04 | |||||||
Weighted average number of common shares outstanding - basic | 236,439 | 236,203 | 236,348 | 236,177 | ||||||||||||
Weighted average number of common shares outstanding - diluted | 236,553 | 236,203 | 236,400 | 236,180 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income (loss) attributable to common shareholders | $ | 75,967 | $ | (29,098 | ) | $ | 115,002 | $ | 10,348 | |||||||
Depreciation and amortization | 52,596 | 54,691 | 162,520 | 164,291 | ||||||||||||
Provision for impairment of investment properties | 169 | 54,584 | 4,113 | 60,378 | ||||||||||||
Gain on sales of investment properties | (75,001 | ) | (15,168 | ) | (113,214 | ) | (40,508 | ) | ||||||||
FFO attributable to common shareholders | $ | 53,731 | $ | 65,009 | $ | 168,421 | $ | 194,509 | ||||||||
FFO attributable to common shareholders per common share outstanding | $ | 0.23 | $ | 0.28 | $ | 0.71 | $ | 0.82 | ||||||||
FFO attributable to common shareholders | $ | 53,731 | $ | 65,009 | $ | 168,421 | $ | 194,509 | ||||||||
Impact on earnings from the early extinguishment of debt, net | 10,618 | 5,354 | 17,635 | 8,985 | ||||||||||||
Provision for hedge ineffectiveness | (4 | ) | — | (25 | ) | (13 | ) | |||||||||
Reversal of excise tax accrual | — | (4,594 | ) | — | (4,594 | ) | ||||||||||
Gain on extinguishment of other liabilities | — | — | — | (4,258 | ) | |||||||||||
Executive separation charges (b) | — | — | 3,537 | — | ||||||||||||
Other (c) | 91 | (73 | ) | (909 | ) | (199 | ) | |||||||||
Operating FFO attributable to common shareholders | $ | 64,436 | $ | 65,696 | $ | 188,659 | $ | 194,430 | ||||||||
Operating FFO attributable to common shareholders per common share outstanding | $ | 0.27 | $ | 0.28 | $ | 0.80 | $ | 0.82 |
(a) | Results for the nine months ended September 30, 2014 include amounts from discontinued operations and our pro rata share from our unconsolidated joint ventures. All of our unconsolidated joint venture arrangements were dissolved prior to December 31, 2014. |
(b) | Included in "General and administrative expenses" in the condensed consolidated statements of operations. |
(c) | Consists of settlement and easement proceeds, which are included in "Other income, net" in the condensed consolidated statements of operations. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Operating revenues | ||||||||||||||||
Same store investment properties (191 and 184 properties, respectively): | ||||||||||||||||
Rental income | $ | 102,935 | $ | 101,312 | $ | 292,184 | $ | 285,411 | ||||||||
Tenant recovery income | 25,611 | 25,259 | 72,118 | 70,492 | ||||||||||||
Other property income | 1,081 | 914 | 3,069 | 2,535 | ||||||||||||
Other investment properties: | ||||||||||||||||
Rental income | 12,876 | 17,798 | 60,334 | 65,020 | ||||||||||||
Tenant recovery income | 3,290 | 3,971 | 17,499 | 15,594 | ||||||||||||
Other property income | 1,013 | 1,014 | 3,117 | 3,091 | ||||||||||||
Operating expenses | ||||||||||||||||
Same store investment properties (191 and 184 properties, respectively): | ||||||||||||||||
Property operating expenses | (18,338 | ) | (18,915 | ) | (54,293 | ) | (56,326 | ) | ||||||||
Real estate taxes | (18,718 | ) | (17,853 | ) | (50,328 | ) | (48,001 | ) | ||||||||
Other investment properties: | ||||||||||||||||
Property operating expenses | (3,612 | ) | (3,907 | ) | (14,919 | ) | (13,466 | ) | ||||||||
Real estate taxes | (2,243 | ) | (2,721 | ) | (11,629 | ) | (10,054 | ) | ||||||||
NOI from continuing operations | ||||||||||||||||
Same store investment properties | 92,571 | 90,717 | 262,750 | 254,111 | ||||||||||||
Other investment properties | 11,324 | 16,155 | 54,402 | 60,185 | ||||||||||||
Total NOI from continuing operations | 103,895 | 106,872 | 317,152 | 314,296 | ||||||||||||
Other income (expense) | ||||||||||||||||
Straight-line rental income, net | 655 | 875 | 2,297 | 3,979 | ||||||||||||
Amortization of acquired above and below market lease intangibles, net | 505 | 334 | 1,346 | 1,216 | ||||||||||||
Amortization of lease inducements | (256 | ) | (176 | ) | (636 | ) | (533 | ) | ||||||||
Lease termination fees | 3,245 | 146 | 3,712 | 279 | ||||||||||||
Straight-line ground rent expense | (931 | ) | (956 | ) | (2,797 | ) | (2,934 | ) | ||||||||
Amortization of acquired ground lease intangibles | 140 | 140 | 420 | 420 | ||||||||||||
Depreciation and amortization | (52,871 | ) | (54,691 | ) | (163,345 | ) | (163,582 | ) | ||||||||
Provision for impairment of investment properties | (169 | ) | (54,584 | ) | (4,113 | ) | (60,378 | ) | ||||||||
General and administrative expenses | (10,939 | ) | (6,982 | ) | (35,949 | ) | (22,794 | ) | ||||||||
Gain on extinguishment of other liabilities | — | — | — | 4,258 | ||||||||||||
Equity in loss of unconsolidated joint ventures, net | — | (232 | ) | — | (1,443 | ) | ||||||||||
Gain on change in control of investment properties | — | — | — | 24,158 | ||||||||||||
Interest expense | (40,425 | ) | (37,356 | ) | (110,610 | ) | (101,092 | ) | ||||||||
Other income, net | 479 | 4,706 | 1,398 | 5,383 | ||||||||||||
Total other expense | (100,567 | ) | (148,776 | ) | (308,277 | ) | (313,063 | ) | ||||||||
Income (loss) from continuing operations | 3,328 | (41,904 | ) | 8,875 | 1,233 | |||||||||||
Discontinued operations: | ||||||||||||||||
Loss, net | — | — | — | (148 | ) | |||||||||||
Gain on sales of investment properties | — | — | — | 655 | ||||||||||||
Income from discontinued operations | — | — | — | 507 | ||||||||||||
Gain on sales of investment properties | 75,001 | 15,168 | 113,214 | 15,695 | ||||||||||||
Net income (loss) | 78,329 | (26,736 | ) | 122,089 | 17,435 | |||||||||||
Net income (loss) attributable to the Company | 78,329 | (26,736 | ) | 122,089 | 17,435 | |||||||||||
Preferred stock dividends | (2,362 | ) | (2,362 | ) | (7,087 | ) | (7,087 | ) | ||||||||
Net income (loss) attributable to common shareholders | $ | 75,967 | $ | (29,098 | ) | $ | 115,002 | $ | 10,348 | |||||||
Same Store NOI, Excluding the Impact of Strategic Remerchandising Activities | ||||||||||||||||
Same store NOI | $ | 92,571 | $ | 90,717 | $ | 262,750 | $ | 254,111 | ||||||||
Less: Impact of strategic remerchandising activities | (653 | ) | (2,466 | ) | (3,828 | ) | (7,280 | ) | ||||||||
Same store NOI, excluding the impact of strategic remerchandising activities | $ | 91,918 | $ | 88,251 | $ | 258,922 | $ | 246,831 | ||||||||
Three Months Ended | ||||||||
September 30, 2015 | December 31, 2014 | |||||||
Net income attributable to common shareholders | $ | 75,967 | $ | 23,502 | ||||
Preferred stock dividends | 2,362 | 2,363 | ||||||
Interest expense | 40,425 | 32,743 | ||||||
Depreciation and amortization | 52,871 | 52,385 | ||||||
Gain on sales of investment properties | (75,001 | ) | (26,501 | ) | ||||
Provision for impairment of investment properties | 169 | 11,825 | ||||||
Adjusted EBITDA | $ | 96,793 | $ | 96,317 | ||||
Annualized | $ | 387,172 | $ | 385,268 |
September 30, 2015 | December 31, 2014 | |||||||
Total consolidated debt | $ | 2,309,471 | $ | 2,342,540 | ||||
Less: consolidated cash and cash equivalents | (116,538 | ) | (112,292 | ) | ||||
Total net debt | $ | 2,192,933 | $ | 2,230,248 | ||||
Preferred stock | 135,000 | 135,000 | ||||||
Net debt and preferred stock | $ | 2,327,933 | $ | 2,365,248 | ||||
Net Debt to Adjusted EBITDA (a) | 5.7x | 5.8x | ||||||
Net Debt and Preferred Stock to Adjusted EBITDA (a) | 6.0x | 6.1x |
Per Share Guidance Range Full Year 2015 | ||||||||
Low | High | |||||||
Net income attributable to common shareholders | $ | 0.60 | $ | 0.62 | ||||
Depreciation and amortization | 0.90 | 0.90 | ||||||
Provision for impairment of investment properties | 0.02 | 0.02 | ||||||
Gain on sales of investment properties | (0.57 | ) | (0.57 | ) | ||||
FFO attributable to common shareholders | $ | 0.95 | $ | 0.97 | ||||
Impact on earnings from the early extinguishment of debt, net | 0.07 | 0.07 | ||||||
Provision for hedge ineffectiveness | — | — | ||||||
Executive and realignment separation charges | 0.02 | 0.02 | ||||||
Other | — | — | ||||||
Operating FFO attributable to common shareholders | $ | 1.04 | $ | 1.06 |
(a) | For purposes of these ratio calculations, annualized three months ended figures were used. |
▪ | Operating funds from operations (Operating FFO) attributable to common shareholders of $64.4 million, or $0.27 per share, compared to $65.7 million, or $0.28 per share, for the same period in 2014; |
▪ | Funds from operations (FFO) attributable to common shareholders of $53.7 million, or $0.23 per share, compared to $65.0 million, or $0.28 per share, for the same period in 2014, the decrease being primarily attributable to non-operating transactions; and |
▪ | Net income (loss) attributable to common shareholders of $76.0 million, or $0.32 per share, compared to $(29.1) million, or $(0.12) per share, for the same period in 2014. |
▪ | Operating FFO attributable to common shareholders of $188.7 million, or $0.80 per share, compared to $194.4 million, or $0.82 per share, for the same period in 2014; |
▪ | FFO attributable to common shareholders of $168.4 million, or $0.71 per share, compared to $194.5 million, or $0.82 per share, for the same period in 2014, the decrease being primarily attributable to non-operating transactions; and |
▪ | Net income attributable to common shareholders of $115.0 million, or $0.49 per share, compared to $10.3 million, or $0.04 per share, for the same period in 2014. |
▪ | 2.0% increase in same store net operating income (NOI) over the comparable period in 2014; |
▪ | 4.2% increase in same store NOI, excluding the impact of strategic remerchandising activities, over the comparable period in 2014; |
▪ | Total portfolio percent leased, including leases signed but not commenced: 94.8% at September 30, 2015, down 20 basis points from 95.0% at September 30, 2014 and up 30 basis points from 94.5% at June 30, 2015; |
▪ | Retail portfolio percent leased, including leases signed but not commenced: 94.6% at September 30, 2015, down 10 basis points from 94.7% at September 30, 2014 and up 20 basis points from 94.4% at June 30, 2015; |
▪ | Retail portfolio annualized base rent (ABR) per occupied square foot of $16.17 at September 30, 2015, up 5.4% from $15.34 ABR per occupied square foot at September 30, 2014; |
▪ | Target market multi-tenant retail portfolio ABR per occupied square foot of $18.06; |
▪ | 666,000 square feet of retail leasing transactions comprised of 131 new and renewal leases; and |
▪ | Positive comparable cash leasing spreads of 19.6% on new leases and 7.3% on renewal leases for a blended spread of 9.4%. |
▪ | 3.4% increase in same store NOI over the comparable period in 2014; |
▪ | 4.9% increase in same store NOI, excluding the impact of strategic remerchandising activities, over the comparable period in 2014; |
▪ | 2,213,000 square feet of retail leasing transactions comprised of 412 new and renewal leases; and |
▪ | Positive comparable cash leasing spreads of 21.8% on new leases and 6.5% on renewal leases for a blended spread of 8.4%. |
Per Share Guidance Range Full Year 2015 | ||||||||
Low | High | |||||||
Net income attributable to common shareholders | $ | 0.60 | $ | 0.62 | ||||
Depreciation and amortization | 0.90 | 0.90 | ||||||
Provision for impairment of investment properties | 0.02 | 0.02 | ||||||
Gain on sales of investment properties | (0.57 | ) | (0.57 | ) | ||||
FFO attributable to common shareholders | $ | 0.95 | $ | 0.97 | ||||
Impact on earnings from the early extinguishment of debt, net | 0.07 | 0.07 | ||||||
Provision for hedge ineffectiveness | — | — | ||||||
Executive and realignment separation charges | 0.02 | 0.02 | ||||||
Other | — | — | ||||||
Operating FFO attributable to common shareholders | $ | 1.04 | $ | 1.06 |
September 30, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Investment properties: | ||||||||
Land | $ | 1,265,170 | $ | 1,195,369 | ||||
Building and other improvements | 4,449,686 | 4,442,446 | ||||||
Developments in progress | 47,008 | 42,561 | ||||||
5,761,864 | 5,680,376 | |||||||
Less accumulated depreciation | (1,400,363 | ) | (1,365,471 | ) | ||||
Net investment properties | 4,361,501 | 4,314,905 | ||||||
Cash and cash equivalents | 116,538 | 112,292 | ||||||
Accounts and notes receivable (net of allowances of $8,160 and $7,497, respectively) | 79,390 | 86,013 | ||||||
Acquired lease intangible assets, net | 140,064 | 125,490 | ||||||
Assets associated with investment properties held for sale | — | 33,640 | ||||||
Other assets, net | 106,356 | 131,520 | ||||||
Total assets | $ | 4,803,849 | $ | 4,803,860 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Mortgages payable, net (includes unamortized premium of $2,013 and $3,972, respectively, and unamortized discount of $(2) and $(470), respectively) | $ | 1,230,590 | $ | 1,634,465 | ||||
Unsecured notes payable, net (includes unamortized discount of $(1,119) and $0, respectively) | 498,881 | 250,000 | ||||||
Unsecured term loan | 450,000 | 450,000 | ||||||
Unsecured revolving line of credit | 130,000 | — | ||||||
Accounts payable and accrued expenses | 69,768 | 61,129 | ||||||
Distributions payable | 39,301 | 39,187 | ||||||
Acquired lease intangible liabilities, net | 117,085 | 100,641 | ||||||
Liabilities associated with investment properties held for sale | — | 8,203 | ||||||
Other liabilities | 75,175 | 70,860 | ||||||
Total liabilities | 2,610,800 | 2,614,485 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Preferred stock, $0.001 par value, 10,000 shares authorized, 7.00% Series A cumulative redeemable preferred stock, 5,400 shares issued and outstanding as of September 30, 2015 and December 31, 2014; liquidation preference $135,000 | 5 | 5 | ||||||
Class A common stock, $0.001 par value, 475,000 shares authorized, 237,287 and 236,602 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively | 237 | 237 | ||||||
Additional paid-in capital | 4,929,255 | 4,922,864 | ||||||
Accumulated distributions in excess of earnings | (2,737,562 | ) | (2,734,688 | ) | ||||
Accumulated other comprehensive loss | (380 | ) | (537 | ) | ||||
Total shareholders' equity | 2,191,555 | 2,187,881 | ||||||
Noncontrolling interests | 1,494 | 1,494 | ||||||
Total equity | 2,193,049 | 2,189,375 | ||||||
Total liabilities and equity | $ | 4,803,849 | $ | 4,803,860 |
3rd Quarter 2015 Supplemental Information | 1 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
Rental income | $ | 116,715 | $ | 120,143 | $ | 355,525 | $ | 355,093 | ||||||||
Tenant recovery income | 28,901 | 29,230 | 89,617 | 86,086 | ||||||||||||
Other property income | 5,339 | 2,074 | 9,898 | 5,905 | ||||||||||||
Total revenues | 150,955 | 151,447 | 455,040 | 447,084 | ||||||||||||
Expenses | ||||||||||||||||
Property operating expenses | 22,741 | 23,638 | 71,589 | 72,306 | ||||||||||||
Real estate taxes | 20,961 | 20,574 | 61,957 | 58,055 | ||||||||||||
Depreciation and amortization | 52,871 | 54,691 | 163,345 | 163,582 | ||||||||||||
Provision for impairment of investment properties | 169 | 54,584 | 4,113 | 60,378 | ||||||||||||
General and administrative expenses | 10,939 | 6,982 | 35,949 | 22,794 | ||||||||||||
Total expenses | 107,681 | 160,469 | 336,953 | 377,115 | ||||||||||||
Operating income (loss) | 43,274 | (9,022 | ) | 118,087 | 69,969 | |||||||||||
Gain on extinguishment of other liabilities | — | — | — | 4,258 | ||||||||||||
Equity in loss of unconsolidated joint ventures, net | — | (232 | ) | — | (1,443 | ) | ||||||||||
Gain on change in control of investment properties | — | — | — | 24,158 | ||||||||||||
Interest expense | (40,425 | ) | (37,356 | ) | (110,610 | ) | (101,092 | ) | ||||||||
Other income, net | 479 | 4,706 | 1,398 | 5,383 | ||||||||||||
Income (loss) from continuing operations | 3,328 | (41,904 | ) | 8,875 | 1,233 | |||||||||||
Discontinued operations: | ||||||||||||||||
Loss, net | — | — | — | (148 | ) | |||||||||||
Gain on sales of investment properties | — | — | — | 655 | ||||||||||||
Income from discontinued operations | — | — | — | 507 | ||||||||||||
Gain on sales of investment properties | 75,001 | 15,168 | 113,214 | 15,695 | ||||||||||||
Net income (loss) | 78,329 | (26,736 | ) | 122,089 | 17,435 | |||||||||||
Net income (loss) attributable to the Company | 78,329 | (26,736 | ) | 122,089 | 17,435 | |||||||||||
Preferred stock dividends | (2,362 | ) | (2,362 | ) | (7,087 | ) | (7,087 | ) | ||||||||
Net income (loss) attributable to common shareholders | $ | 75,967 | $ | (29,098 | ) | $ | 115,002 | $ | 10,348 | |||||||
Earnings (loss) per common share - basic and diluted | ||||||||||||||||
Continuing operations | $ | 0.32 | $ | (0.12 | ) | $ | 0.49 | $ | 0.04 | |||||||
Discontinued operations | — | — | — | — | ||||||||||||
Net income (loss) per common share attributable to common shareholders | $ | 0.32 | $ | (0.12 | ) | $ | 0.49 | $ | 0.04 | |||||||
Weighted average number of common shares outstanding - basic | 236,439 | 236,203 | 236,348 | 236,177 | ||||||||||||
Weighted average number of common shares outstanding - diluted | 236,553 | 236,203 | 236,400 | 236,180 |
3rd Quarter 2015 Supplemental Information | 2 |
FFO attributable to common shareholders and Operating FFO attributable to common shareholders (a) (b) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income (loss) attributable to common shareholders | $ | 75,967 | $ | (29,098 | ) | $ | 115,002 | $ | 10,348 | |||||||
Depreciation and amortization | 52,596 | 54,691 | 162,520 | 164,291 | ||||||||||||
Provision for impairment of investment properties | 169 | 54,584 | 4,113 | 60,378 | ||||||||||||
Gain on sales of investment properties | (75,001 | ) | (15,168 | ) | (113,214 | ) | (40,508 | ) | ||||||||
FFO attributable to common shareholders | $ | 53,731 | $ | 65,009 | $ | 168,421 | $ | 194,509 | ||||||||
FFO attributable to common shareholders per common share outstanding | $ | 0.23 | $ | 0.28 | $ | 0.71 | $ | 0.82 | ||||||||
FFO attributable to common shareholders | $ | 53,731 | $ | 65,009 | $ | 168,421 | $ | 194,509 | ||||||||
Impact on earnings from the early extinguishment of debt, net | 10,618 | 5,354 | 17,635 | 8,985 | ||||||||||||
Provision for hedge ineffectiveness | (4 | ) | — | (25 | ) | (13 | ) | |||||||||
Reversal of excise tax accrual | — | (4,594 | ) | — | (4,594 | ) | ||||||||||
Gain on extinguishment of other liabilities | — | — | — | (4,258 | ) | |||||||||||
Executive separation charges (c) | — | — | 3,537 | — | ||||||||||||
Other (d) | 91 | (73 | ) | (909 | ) | (199 | ) | |||||||||
Operating FFO attributable to common shareholders | $ | 64,436 | $ | 65,696 | $ | 188,659 | $ | 194,430 | ||||||||
Operating FFO attributable to common shareholders per common share outstanding | $ | 0.27 | $ | 0.28 | $ | 0.80 | $ | 0.82 | ||||||||
Weighted average number of common shares outstanding - basic | 236,439 | 236,203 | 236,348 | 236,177 | ||||||||||||
Dividends declared per common share | $ | 0.165625 | $ | 0.165625 | $ | 0.496875 | $ | 0.496875 | ||||||||
Additional Information (e) | ||||||||||||||||
Lease-related expenditures (f) | ||||||||||||||||
Same store | $ | 5,579 | $ | 7,280 | $ | 18,871 | $ | 20,799 | ||||||||
Other investment properties | $ | 685 | $ | 1,681 | $ | 6,111 | $ | 7,137 | ||||||||
Pro rata share of unconsolidated joint ventures | $ | — | $ | — | $ | — | $ | 34 | ||||||||
Capital expenditures (g) | ||||||||||||||||
Same store | $ | 7,081 | $ | 2,874 | $ | 13,465 | $ | 8,474 | ||||||||
Other investment properties | $ | 1,315 | $ | 637 | $ | 3,269 | $ | 1,656 | ||||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | 6 | ||||||||
Pro rata share of unconsolidated joint ventures | $ | — | $ | — | $ | — | $ | 28 | ||||||||
Straight-line rental income, net (b) | $ | 655 | $ | 875 | $ | 2,297 | $ | 3,988 | ||||||||
Amortization of above and below market lease intangibles and lease inducements (b) | $ | 249 | $ | 158 | $ | 710 | $ | 708 | ||||||||
Non-cash ground rent expense (b) (h) | $ | 791 | $ | 816 | $ | 2,377 | $ | 2,514 |
(a) | Refer to page 17 for definitions of FFO attributable to common shareholders and Operating FFO attributable to common shareholders. |
(b) | Results for the nine months ended September 30, 2014 include amounts from discontinued operations and our pro rata share from our unconsolidated joint ventures. All of our unconsolidated joint venture arrangements were dissolved prior to December 31, 2014. |
(c) | Included in "General and administrative expenses" in the condensed consolidated statements of operations. |
(d) | Consists of settlement and easement proceeds, which are included in "Other income, net" in the condensed consolidated statements of operations. |
(e) | The same store portfolio for the three months ended September 30, 2015 consists of 191 properties. The same store portfolio for the nine months ended September 30, 2015 consists of 184 properties. Refer to pages 17 - 20 for definitions and reconciliations of non-GAAP financial measures. |
(f) | Consists of payments for tenant improvements, lease commissions and lease inducements and excludes developments in progress. |
(g) | Consists of payments for building, site and other improvements and excludes developments in progress. |
(h) | Includes amortization of acquired ground lease intangibles. |
3rd Quarter 2015 Supplemental Information | 3 |
Supplemental Balance Sheet Detail | September 30, 2015 | December 31, 2014 | ||||||
Accounts and Notes Receivable | ||||||||
Accounts and notes receivable (net of allowances of $7,075 and $6,639, respectively) | $ | 27,389 | $ | 33,349 | ||||
Straight-line receivables (net of allowances of $1,085 and $858, respectively) | 52,001 | 52,664 | ||||||
Total | $ | 79,390 | $ | 86,013 | ||||
Other Assets, net | ||||||||
Deferred costs, net | $ | 41,603 | $ | 44,588 | ||||
Restricted cash and escrows | 37,233 | 58,469 | ||||||
Other assets, net | 27,520 | 28,463 | ||||||
Total | $ | 106,356 | $ | 131,520 | ||||
Other Liabilities | ||||||||
Unearned income | $ | 21,540 | $ | 21,823 | ||||
Straight-line ground rent liability | 34,317 | 31,519 | ||||||
Fair value of derivatives | 380 | 562 | ||||||
Other liabilities | 18,938 | 16,956 | ||||||
Total | $ | 75,175 | $ | 70,860 | ||||
Developments in Progress | ||||||||
Active developments | $ | 1,561 | $ | 3,081 | ||||
Property available for future development | 45,447 | 39,480 | ||||||
Total | $ | 47,008 | $ | 42,561 |
Supplemental Statements of Operations Detail | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Rental Income | ||||||||||||||||
Base rent | $ | 114,469 | $ | 117,500 | $ | 347,996 | $ | 345,868 | ||||||||
Percentage and specialty rent | 1,342 | 1,610 | 4,522 | 4,563 | ||||||||||||
Straight-line rent | 655 | 875 | 2,297 | 3,979 | ||||||||||||
Amortization of above and below market lease intangibles and lease inducements | 249 | 158 | 710 | 683 | ||||||||||||
Total | $ | 116,715 | $ | 120,143 | $ | 355,525 | $ | 355,093 | ||||||||
Other Property Income | ||||||||||||||||
Lease termination income | $ | 3,245 | $ | 146 | $ | 3,712 | $ | 279 | ||||||||
Other property income | 2,094 | 1,928 | 6,186 | 5,626 | ||||||||||||
Total | $ | 5,339 | $ | 2,074 | $ | 9,898 | $ | 5,905 | ||||||||
Property Operating Expense Supplemental Information | ||||||||||||||||
Bad Debt Expense | $ | (116 | ) | $ | 693 | $ | 1,105 | $ | 1,550 | |||||||
Non-Cash Ground Rent Expense (a) | $ | 791 | $ | 816 | $ | 2,377 | $ | 2,514 | ||||||||
General and Administrative Expense Supplemental Information | ||||||||||||||||
Acquisition Costs | $ | 99 | $ | 27 | $ | 1,297 | $ | 363 | ||||||||
Non-Cash Amortization of Stock-based Compensation | $ | 2,076 | $ | 845 | $ | 8,116 | $ | 2,296 | ||||||||
Additional Supplemental Information | ||||||||||||||||
Capitalized Internal Leasing Incentives | $ | 85 | $ | — | $ | 340 | $ | — | ||||||||
Capitalized Interest | $ | — | $ | — | $ | — | $ | — | ||||||||
Management Fee Income from Joint Ventures (b) | $ | — | $ | — | $ | — | $ | 338 |
(a) | Includes amortization of acquired ground lease intangibles. |
(b) | Included in "Other income, net" in the condensed consolidated statements of operations. |
3rd Quarter 2015 Supplemental Information | 4 |
Same store portfolio (a) | ||||||||||||||||||
As of September 30 based on Same store portfolio for the Three Months Ended September 30, 2015 | As of September 30 based on Same store portfolio for the Nine Months Ended September 30, 2015 | |||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||||
Number of properties in same store portfolio | 191 | 191 | — | 184 | 184 | — | ||||||||||||
Occupancy | 94.0 | % | 94.3 | % | (0.3 | )% | 94.2 | % | 94.5 | % | (0.3 | )% | ||||||
Percent leased (b) | 95.6 | % | 95.8 | % | (0.2 | )% | 95.6 | % | 95.8 | % | (0.2 | )% | ||||||
Same store NOI (c) | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||
Operating revenues | ||||||||||||||||||||||
Rental income | $ | 102,935 | $ | 101,312 | $ | 292,184 | $ | 285,411 | ||||||||||||||
Tenant recovery income | 25,611 | 25,259 | 72,118 | 70,492 | ||||||||||||||||||
Other property income | 1,081 | 914 | 3,069 | 2,535 | ||||||||||||||||||
129,627 | 127,485 | 367,371 | 358,438 | |||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Property operating expenses | 18,237 | 18,859 | 53,382 | 55,902 | ||||||||||||||||||
Bad debt expense | 101 | 56 | 911 | 424 | ||||||||||||||||||
Real estate taxes | 18,718 | 17,853 | 50,328 | 48,001 | ||||||||||||||||||
37,056 | 36,768 | 104,621 | 104,327 | |||||||||||||||||||
Same store NOI | $ | 92,571 | $ | 90,717 | 2.0 | % | $ | 262,750 | $ | 254,111 | 3.4 | % | ||||||||||
NOI from other investment properties | 11,324 | 16,155 | 54,402 | 60,185 | ||||||||||||||||||
Total NOI from continuing operations | $ | 103,895 | $ | 106,872 | (2.8 | )% | $ | 317,152 | $ | 314,296 | 0.9 | % | ||||||||||
Same store NOI, excluding the impact of strategic remerchandising activities | $ | 91,918 | $ | 88,251 | 4.2 | % | $ | 258,922 | $ | 246,831 | 4.9 | % | ||||||||||
(a) | For the nine months ended September 30, 2015, our same store portfolio consists of 184 operating properties and excludes properties acquired or placed in service and stabilized during 2014 and 2015, our development properties, two properties where we have begun activities in anticipation of future redevelopment, one property that was impaired below its debt balance during 2014 and investment properties sold or classified as held for sale during 2014 and 2015. For the three months ended September 30, 2015, our same store portfolio consists of 191 operating properties, inclusive of the same store portfolio for the nine months ended September 30, 2015 and seven additional operating properties acquired during the first half of 2014. |
(b) | Includes leases signed but not commenced. |
(c) | NOI is defined as operating revenues (rental income, tenant recovery income and other property income, excluding straight-line rental income, amortization of lease inducements, amortization of acquired above and below market lease intangibles and lease termination fee income) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line ground rent expense, amortization of acquired ground lease intangibles and straight-line bad debt expense). Same store NOI excludes the historical ground rent expense related to an existing same store property that was subject to a ground lease with a third party prior to our acquisition of the fee interest during the first quarter of 2014. Same store NOI for the 2015 periods presented also excludes the net income from our wholly-owned captive insurance company, while same store NOI for the 2014 periods presented also excludes the historical intercompany expense elimination related to our former insurance captive unconsolidated joint venture investment, in which we terminated our participation effective December 1, 2014. Refer to pages 17 - 20 for definitions and reconciliations of non-GAAP financial measures. |
3rd Quarter 2015 Supplemental Information | 5 |
Capitalization Data | ||||||||
September 30, 2015 | December 31, 2014 | |||||||
Equity Capitalization | ||||||||
Common stock shares outstanding | 237,287 | 236,602 | ||||||
Common share price | $ | 14.09 | $ | 16.69 | ||||
3,343,374 | 3,948,887 | |||||||
Series A preferred stock | 135,000 | 135,000 | ||||||
Total equity capitalization | $ | 3,478,374 | $ | 4,083,887 | ||||
Debt Capitalization | ||||||||
Mortgages payable | $ | 1,228,579 | $ | 1,630,963 | ||||
Mortgages payable associated with investment properties held for sale | — | 8,075 | ||||||
Premium, net of accumulated amortization | 2,013 | 3,972 | ||||||
Discount, net of accumulated amortization | (2 | ) | (470 | ) | ||||
Total mortgage debt, net | 1,230,590 | 1,642,540 | ||||||
Unsecured notes payable | 500,000 | 250,000 | ||||||
Discount, net of accumulated amortization | (1,119 | ) | — | |||||
Total unsecured notes payable, net | 498,881 | 250,000 | ||||||
Unsecured term loan | 450,000 | 450,000 | ||||||
Unsecured revolving line of credit | 130,000 | — | ||||||
Total unsecured credit facility | 580,000 | 450,000 | ||||||
Total debt capitalization | $ | 2,309,471 | $ | 2,342,540 | ||||
Total capitalization at end of period | $ | 5,787,845 | $ | 6,426,427 |
Reconciliation of Debt to Total Net Debt | ||||||||
September 30, 2015 | December 31, 2014 | |||||||
Total consolidated debt | $ | 2,309,471 | $ | 2,342,540 | ||||
Less: consolidated cash and cash equivalents | (116,538 | ) | (112,292 | ) | ||||
Total net debt | $ | 2,192,933 | $ | 2,230,248 | ||||
Adjusted EBITDA (a) (b) | $ | 387,172 | $ | 385,268 | ||||
Net Debt to Adjusted EBITDA (b) | 5.7x | 5.8x | ||||||
Net Debt and Preferred Stock to Adjusted EBITDA (b) | 6.0x | 6.1x |
(a) | For purposes of these ratio calculations, annualized three months ended figures were used. |
(b) | Refer to pages 17 - 20 for definitions and reconciliations of non-GAAP financial measures. |
3rd Quarter 2015 Supplemental Information | 6 |
Unsecured Credit Facility and Series A and B Notes (a) | ||||
Covenant | September 30, 2015 | |||
Leverage ratio (b) | < 60.0% | (b) | 39.0 | % |
Secured leverage ratio (b) | < 45.0% | (b) | 20.8 | % |
Fixed charge coverage ratio (c) | > 1.50x | 2.2x | ||
Interest coverage ratio (d) | > 1.50x | 2.6x | ||
Unencumbered leverage ratio (b) | < 60.0% | (b) | 32.8 | % |
Unencumbered interest coverage ratio | > 1.75x | 6.6x |
4.00% Notes (e) | ||||
Covenant | September 30, 2015 | |||
Leverage ratio (f) | < 60.0% | 37.7 | % | |
Secured leverage ratio (f) | < 40.0% | 20.1 | % | |
Debt service coverage ratio (g) | > 1.50x | 3.2x | ||
Unencumbered assets to unsecured debt ratio | > 150% | 328 | % |
(a) | For a complete listing of all covenants related to our Unsecured Credit Facility (comprised of the unsecured term loan and unsecured revolving line of credit) as well as covenant definitions, refer to the Third Amended and Restated Credit Agreement filed as Exhibit 10.1 to our Current Report on Form 8-K, dated May 13, 2013. For a complete listing of all covenants related to our 4.12% Series A senior notes due 2021 and 4.58% Series B senior notes due 2024 (collectively, Series A and B notes) as well as covenant definitions, refer to the Note Purchase Agreement filed as Exhibit 10.1 to our Current Report on Form 8-K, dated May 22, 2014. |
(b) | Based upon a capitalization rate of 7.25%. |
(c) | Applies only to our Unsecured Credit Facility. This ratio is based upon consolidated debt service, including interest expense, principal amortization and preferred dividends declared. |
(d) | Applies only to our Series A and B notes. |
(e) | For a complete listing of all covenants related to our 4.00% senior notes due 2025 (4.00% notes) as well as covenant definitions, refer to the First Supplemental Indenture filed as Exhibit 4.2 to our Current Report on Form 8-K, dated March 12, 2015. |
(f) | Based upon the book value of Total Assets as defined in the First Supplemental Indenture. |
(g) | Based upon interest expense and excludes principal amortization and preferred dividends declared. This ratio is calculated on a pro forma basis with the assumption that debt and property transactions occurred on the first day of the preceding four-quarter period. |
3rd Quarter 2015 Supplemental Information | 7 |
Balance | Weighted Average (WA) Interest Rate (a) | WA Years to Maturity | |||||||
Fixed rate mortgages payable (b) | $ | 1,212,712 | 6.01 | % | 3.9 years | ||||
Variable rate construction loan (c) | 15,867 | 2.50 | % | 0.1 years | |||||
Total mortgages payable | 1,228,579 | 5.97 | % | 3.9 years | |||||
Unsecured notes payable: | |||||||||
Senior notes - 4.12% Series A due 2021 | 100,000 | 4.12 | % | 5.8 years | |||||
Senior notes - 4.58% Series B due 2024 | 150,000 | 4.58 | % | 8.8 years | |||||
Senior notes - 4.00% due 2025 | 250,000 | 4.00 | % | 9.5 years | |||||
Total unsecured notes payable (b) | 500,000 | 4.20 | % | 8.5 years | |||||
Unsecured credit facility: | |||||||||
Fixed rate portion of term loan (d) | 300,000 | 1.99 | % | 2.6 years | |||||
Variable rate portion of term loan | 150,000 | 1.65 | % | 2.6 years | |||||
Variable rate revolving line of credit | 130,000 | 1.70 | % | 1.6 years | |||||
Total unsecured credit facility | 580,000 | 1.84 | % | 2.4 years | |||||
Total consolidated indebtedness | $ | 2,308,579 | 4.55 | % | 4.5 years |
Consolidated Debt Maturity Schedule as of September 30, 2015 | ||||||||||||||||||||||||
Year | Fixed Rate (b) | WA Rates on Fixed Debt | Variable Rate | WA Rates on Variable Debt (e) | Total | % of Total | WA Rates on Total Debt (a) | |||||||||||||||||
2015 | $ | 61,887 | 4.83 | % | $ | 15,867 | 2.50 | % | $ | 77,754 | 3.4 | % | 4.36 | % | ||||||||||
2016 | 66,435 | 5.01 | % | — | — | 66,435 | 2.9 | % | 5.01 | % | ||||||||||||||
2017 | 319,708 | 5.52 | % | 130,000 | 1.70 | % | 449,708 | 19.5 | % | 4.42 | % | |||||||||||||
2018 | 310,882 | 2.16 | % | 150,000 | 1.65 | % | 460,882 | 20.0 | % | 1.99 | % | |||||||||||||
2019 | 448,052 | 7.50 | % | — | — | 448,052 | 19.4 | % | 7.50 | % | ||||||||||||||
2020 | 3,424 | 4.80 | % | — | — | 3,424 | 0.1 | % | 4.80 | % | ||||||||||||||
2021 | 122,304 | 4.27 | % | — | — | 122,304 | 5.3 | % | 4.27 | % | ||||||||||||||
2022 | 216,171 | 4.87 | % | — | — | 216,171 | 9.4 | % | 4.87 | % | ||||||||||||||
2023 | 30,739 | 4.15 | % | — | — | 30,739 | 1.3 | % | 4.15 | % | ||||||||||||||
2024 | 150,680 | 4.58 | % | — | — | 150,680 | 6.5 | % | 4.58 | % | ||||||||||||||
Thereafter | 282,430 | 4.07 | % | — | — | 282,430 | 12.2 | % | 4.07 | % | ||||||||||||||
Total | $ | 2,012,712 | 4.96 | % | $ | 295,867 | 1.72 | % | $ | 2,308,579 | 100.0 | % | 4.55 | % |
(a) | Interest rates presented exclude the impact of the premium, discount and capitalized loan fee amortization. As of September 30, 2015, our overall weighted average interest rate for consolidated debt including the impact of premium, discount and capitalized loan fee amortization was 4.75%. |
(b) | Fixed rate mortgages payable amounts exclude mortgage premium of $2,013 and discount of $(2), net of accumulated amortization, that was outstanding as of September 30, 2015. Unsecured notes payable amounts exclude discount of $(1,119), net of accumulated amortization, that was outstanding as of September 30, 2015. In the consolidated debt maturity schedule, maturity amounts for each year include scheduled principal amortization payments. |
(c) | Subsequent to September 30, 2015, the construction loan was repaid in conjunction with the disposition of Green Valley Crossing. |
(d) | Reflects $300,000 of LIBOR-based variable rate debt that matures in May 2018 and is swapped to a fixed rate of 0.53875% plus a margin based on a leverage grid ranging from 1.45% to 2.00% through February 2016. The applicable margin was 1.45% as of September 30, 2015. |
(e) | Represents interest rates as of September 30, 2015. |
3rd Quarter 2015 Supplemental Information | 8 |
Description | Maturity Date | Interest Rate (a) | Interest Rate Type | Secured or Unsecured | Balance as of 9/30/2015 | ||||||||
Consolidated Indebtedness | |||||||||||||
Green Valley Crossing (b) | 11/02/15 | 2.50% | (c) | Variable | Secured | $ | 15,867 | (b) | |||||
New York Life portfolio (3 properties) (b) | 12/31/15 | 4.75% | Fixed | Secured | 58,344 | (b) | |||||||
HQ Building (b) | 01/01/16 | 6.39% | Fixed | Secured | 8,975 | (b) | |||||||
Cypress Mill Plaza | 02/01/16 | 4.26% | Fixed | Secured | 8,184 | ||||||||
MacArthur Crossing | 07/01/16 | 7.30% | Fixed | Secured | 6,678 | ||||||||
Heritage Towne Crossing | 09/30/16 | 4.52% | Fixed | Secured | 7,963 | ||||||||
Oswego Commons | 12/01/16 | 3.35% | Fixed | Secured | 21,000 | ||||||||
The Gateway (d) | 04/01/17 | 6.57% | Fixed | Secured | 94,823 | (d) | |||||||
Southlake Grand Ave. | 04/01/17 | 3.50% | Fixed | Secured | 56,000 | ||||||||
Southlake Town Square | 04/01/17 | 6.25% | Fixed | Secured | 83,533 | ||||||||
Central Texas Marketplace | 04/11/17 | 5.46% | Fixed | Secured | 45,387 | ||||||||
Coppell Town Center | 05/01/17 | 3.53% | Fixed | Secured | 10,663 | ||||||||
Lincoln Park | 12/01/17 | 4.05% | Fixed | Secured | 25,678 | ||||||||
Corwest Plaza | 04/01/19 | 7.25% | Fixed | Secured | 14,319 | ||||||||
Dorman Center | 04/01/19 | 7.70% | Fixed | Secured | 20,352 | ||||||||
Shops at Park Place | 05/01/19 | 7.48% | Fixed | Secured | 7,701 | ||||||||
Shoppes of New Hope | 06/01/19 | 7.75% | Fixed | Secured | 3,490 | ||||||||
Village Shoppes at Simonton | 06/01/19 | 7.75% | Fixed | Secured | 3,221 | ||||||||
Plaza at Marysville | 09/01/19 | 8.00% | Fixed | Secured | 8,852 | ||||||||
Forks Town Center | 10/01/19 | 7.70% | Fixed | Secured | 8,083 | ||||||||
IW JV 2009 portfolio (49 properties) | 12/01/19 | 7.50% | Fixed | Secured | 401,922 | ||||||||
Sawyer Heights Village | 07/01/21 | 5.00% | Fixed | Secured | 18,700 | ||||||||
Ashland & Roosevelt (bank pad) | 02/25/22 | 7.48% | Fixed | Secured | 1,133 | ||||||||
Commons at Temecula | 03/01/22 | 4.74% | Fixed | Secured | 25,665 | ||||||||
Gardiner Manor Mall | 03/01/22 | 4.95% | Fixed | Secured | 35,479 | ||||||||
Peoria Crossings | 04/01/22 | 4.82% | Fixed | Secured | 24,131 | ||||||||
Southlake Corners | 04/01/22 | 4.89% | Fixed | Secured | 20,945 | ||||||||
Tollgate Marketplace | 04/01/22 | 4.84% | Fixed | Secured | 35,000 | ||||||||
Town Square Plaza | 04/01/22 | 4.82% | Fixed | Secured | 16,815 | ||||||||
Village Shoppes at Gainesville | 04/01/22 | 4.25% | Fixed | Secured | 19,861 | ||||||||
Reisterstown Road Plaza | 06/01/22 | 5.25% | Fixed | Secured | 46,250 | ||||||||
Gateway Village | 01/01/23 | 4.14% | Fixed | Secured | 35,873 | ||||||||
Home Depot Plaza | 12/01/26 | 4.82% | Fixed | Secured | 10,750 | ||||||||
Northgate North | 06/01/27 | 4.50% | Fixed | Secured | 26,942 | ||||||||
Subtotal | 1,228,579 | ||||||||||||
Mortgage premium | 2,013 | ||||||||||||
Mortgage discount | (2 | ) | |||||||||||
Mortgages payable, net | 1,230,590 | ||||||||||||
Senior notes - 4.12% Series A due 2021 | 06/30/21 | 4.12% | Fixed | Unsecured | 100,000 | ||||||||
Senior notes - 4.58% Series B due 2024 | 06/30/24 | 4.58% | Fixed | Unsecured | 150,000 | ||||||||
Senior notes - 4.00% due 2025 | 03/15/25 | 4.00% | Fixed | Unsecured | 250,000 | ||||||||
Subtotal | 500,000 | ||||||||||||
Discount | (1,119 | ) | |||||||||||
Unsecured notes payable, net | 498,881 | ||||||||||||
Term loan | 05/11/18 | 1.99% | (e) | Fixed | Unsecured | 300,000 | |||||||
Term loan | 05/11/18 | 1.65% | Variable | Unsecured | 150,000 | ||||||||
Revolving line of credit | 05/12/17 | 1.70% | Variable | Unsecured | 130,000 | ||||||||
Unsecured credit facility | 580,000 | ||||||||||||
Total consolidated indebtedness | 03/28/20 | 4.55% | $ | 2,309,471 | |||||||||
(a) | Interest rates presented exclude the impact of the premium, discount and capitalized loan fee amortization. As of September 30, 2015, our overall weighted average interest rate for consolidated debt including the impact of premium, discount and capitalized loan fee amortization was 4.75%. |
(b) | These loans were repaid subsequent to September 30, 2015. |
(c) | The construction loan bore interest at a floating rate of LIBOR + 2.25%. |
(d) | During the three months ended September 30, 2015, the servicing of the Commercial Mortgage-Backed Security (CMBS) loan encumbering The Gateway was transferred to the special servicer at our request. This servicing transfer occurred notwithstanding the fact that the CMBS loan is currently performing. In 2014, this property was impaired below its debt balance. The loan is non-recourse to us, except for customary non-recourse carve-outs. |
(e) | Reflects $300,000 of LIBOR-based variable rate debt that matures in May 2018 and is swapped to a fixed rate of 0.53875% plus a margin based on a leverage grid ranging from 1.45% to 2.00% through February 2016. The applicable margin was 1.45% as of September 30, 2015. |
3rd Quarter 2015 Supplemental Information | 9 |
Property Name | Acquisition Date | Metropolitan Statistical Area (MSA) | Property Type | Gross Leasable Area (GLA) | Purchase Price | ||||||||
Acquisitions | |||||||||||||
Downtown Crown | January 8, 2015 | Washington, D.C. | Multi-tenant retail | 258,000 | $ | 162,785 | |||||||
Merrifield Town Center | January 23, 2015 | Washington, D.C. | Multi-tenant retail | 84,900 | 56,500 | ||||||||
Fort Evans Plaza II | January 23, 2015 | Washington, D.C. | Multi-tenant retail | 228,900 | 65,000 | ||||||||
Cedar Park Town Center | February 19, 2015 | Austin | Multi-tenant retail | 179,300 | 39,057 | ||||||||
Lake Worth Towne Crossing - Parcel (a) | March 24, 2015 | Dallas | Land parcel | — | 400 | ||||||||
Tysons Corner | May 4, 2015 | Washington, D.C. | Multi-tenant retail | 37,700 | 31,556 | ||||||||
Woodinville Plaza | June 10, 2015 | Seattle | Multi-tenant retail | 170,800 | 35,250 | ||||||||
Southlake Town Square - Trader Joe's (a) | July 31, 2015 | Dallas | Single-user outparcel | 13,800 | 8,440 | ||||||||
Coal Creek Marketplace | August 27, 2015 | Seattle | Multi-tenant retail | 55,900 | 17,600 | ||||||||
Total 2015 acquisitions (through September 30, 2015) | 1,029,300 | $ | 416,588 | ||||||||||
(a) | We acquired a parcel at Lake Worth Towne Crossing and an outparcel at Southlake Town Square, both of which are existing wholly-owned multi-tenant retail operating properties. As a result, the total number of properties in our portfolio was not affected. |
Property Name | Acquisition Date | MSA | Property Type | GLA | Purchase Price | ||||||||
Acquisitions | |||||||||||||
Royal Oaks Village II - Trader Joe's (b) | October 27, 2015 | Houston | Single-user outparcel | 12,300 | $ | 6,841 | |||||||
Subsequent acquisition | 12,300 | $ | 6,841 | ||||||||||
(b) | We acquired an outparcel at Royal Oaks Village II, an existing wholly-owned multi-tenant retail operating property. As a result, the total number of properties in our portfolio will not be affected. |
3rd Quarter 2015 Supplemental Information | 10 |
Property Name | Disposition Date | Property Type | GLA | Consideration | Mortgage Debt | |||||||||||
Dispositions | ||||||||||||||||
Aon Hewitt East Campus | January 20, 2015 | Single-user office | 343,000 | $ | 17,233 | $ | — | |||||||||
Promenade at Red Cliff | February 27, 2015 | Multi-tenant retail | 94,500 | 19,050 | 9,775 | (a) | ||||||||||
Hartford Insurance Building | April 7, 2015 | Single-user office | 97,400 | 6,015 | — | |||||||||||
Rasmussen College | April 30, 2015 | Single-user office | 26,700 | 4,800 | — | |||||||||||
Mountain View Plaza | May 15, 2015 | Multi-tenant retail | 162,000 | 28,500 | — | |||||||||||
Massillon Commons | June 4, 2015 | Multi-tenant retail | 245,900 | 12,520 | — | (b) | ||||||||||
Citizen's Property Insurance Building | June 5, 2015 | Single-user office | 59,800 | 3,650 | — | |||||||||||
Pine Ridge Plaza | June 17, 2015 | Multi-tenant retail | 236,500 | 33,200 | — | |||||||||||
Bison Hollow | June 17, 2015 | Multi-tenant retail | 134,800 | 18,800 | — | (c) | ||||||||||
The Village at Quail Springs | June 17, 2015 | Multi-tenant retail | 100,400 | 11,350 | — | (b) | ||||||||||
Greensburg Commons | July 17, 2015 | Multi-tenant retail | 272,500 | 18,400 | — | (d) | ||||||||||
Arvada Connection and Arvada Marketplace | July 28, 2015 | Multi-tenant retail | 367,500 | 54,900 | — | |||||||||||
Traveler's Office Building | July 30, 2015 | Single-user office | 50,800 | 4,841 | — | |||||||||||
Shaw's Supermarket | August 6, 2015 | Single-user retail | 65,700 | 3,000 | — | |||||||||||
Harvest Towne Center | August 24, 2015 | Multi-tenant retail | 39,700 | 7,800 | — | |||||||||||
Trenton Crossing & McAllen Shopping Center | August 31, 2015 | Multi-tenant retail | 265,900 | 39,295 | — | (b) | ||||||||||
The Shops at Boardwalk | September 15, 2015 | Multi-tenant retail | 122,400 | 27,400 | — | |||||||||||
Best on the Boulevard | September 29, 2015 | Multi-tenant retail | 204,400 | 42,500 | — | (b) | ||||||||||
Montecito Crossing | September 29, 2015 | Multi-tenant retail | 179,700 | 52,200 | — | (e) | ||||||||||
Total 2015 dispositions (through September 30, 2015) | 3,069,600 | $ | 405,454 | $ | 9,775 | |||||||||||
(a) | We defeased $9,775 of the IW JV 2009 portfolio of mortgages payable to unencumber Promenade at Red Cliff in conjunction with its disposition. |
(b) | We defeased $8,452, $6,325, $19,665 and $21,045 of the IW JV 2009 portfolio of mortgages payable to unencumber Massillon Commons, Village at Quail Springs, Trenton Crossing and Best on the Boulevard, respectively, prior to the dispositions. |
(c) | We repaid the $7,392 mortgage payable prior to the disposition of the property. |
(d) | We repaid the $10,250 mortgage payable prior to the disposition of the property. |
(e) | We repaid the $16,380 mortgage payable prior to the disposition of the property. |
Property Name | Disposition Date | Property Type | GLA | Consideration | Construction Loan | |||||||||||
Dispositions | ||||||||||||||||
Green Valley Crossing (f) | October 29, 2015 | Development | 96,400 | $ | 35,000 | $ | 15,949 | |||||||||
Subsequent disposition | 96,400 | $ | 35,000 | $ | 15,949 | |||||||||||
(f) | Prior to the disposition, the property had been held in a consolidated joint venture. |
3rd Quarter 2015 Supplemental Information | 11 |
Market Summary | ||||||||||||||||||||||||||
Property Type/Target Market | Number of Properties | GLA | % of Total Multi-Tenant Retail GLA (a) | Occupancy | % Leased Including Signed | Annualized Base Rent (ABR) | % of Total Multi-Tenant Retail ABR (a) | ABR per Occupied Sq. Ft. | ||||||||||||||||||
Multi-Tenant Retail: Target Markets | ||||||||||||||||||||||||||
Dallas, TX | 19 | 3,997 | 14.3 | % | 88.6 | % | 93.0 | % | $ | 74,007 | 17.9 | % | $ | 20.90 | ||||||||||||
Baltimore, MD / Washington, D.C. | 12 | 2,973 | 10.7 | % | 90.0 | % | 92.1 | % | 49,551 | 12.0 | % | 18.52 | ||||||||||||||
New York, NY | 8 | 1,404 | 5.0 | % | 97.3 | % | 97.8 | % | 33,286 | 8.1 | % | 24.37 | ||||||||||||||
Atlanta, GA | 9 | 1,513 | 5.4 | % | 96.0 | % | 96.6 | % | 18,619 | 4.5 | % | 12.82 | ||||||||||||||
Seattle, WA | 7 | 1,242 | 4.5 | % | 91.9 | % | 92.4 | % | 16,073 | 3.9 | % | 14.08 | ||||||||||||||
Chicago, IL | 5 | 893 | 3.2 | % | 90.8 | % | 92.9 | % | 14,595 | 3.6 | % | 18.00 | ||||||||||||||
Houston, TX | 9 | 1,128 | 4.0 | % | 93.4 | % | 97.1 | % | 14,331 | 3.5 | % | 13.60 | ||||||||||||||
San Antonio, TX | 4 | 779 | 2.8 | % | 97.6 | % | 97.6 | % | 12,407 | 3.0 | % | 16.32 | ||||||||||||||
Phoenix, AZ | 3 | 632 | 2.3 | % | 96.5 | % | 97.5 | % | 10,095 | 2.4 | % | 16.55 | ||||||||||||||
Austin, TX | 4 | 350 | 1.3 | % | 93.5 | % | 95.0 | % | 5,111 | 1.2 | % | 15.62 | ||||||||||||||
Subtotal | 80 | 14,911 | 53.5 | % | 92.1 | % | 94.4 | % | 248,075 | 60.1 | % | 18.06 | ||||||||||||||
Other Markets - Top 50 MSAs | 34 | 5,600 | 20.1 | % | 89.1 | % | 91.5 | % | 72,876 | 17.7 | % | 14.61 | ||||||||||||||
Subtotal Target Markets and Top 50 MSAs | 114 | 20,511 | 73.6 | % | 91.3 | % | 93.6 | % | 320,951 | 77.8 | % | 17.14 | ||||||||||||||
Other Markets | 38 | 7,357 | 26.4 | % | 96.2 | % | 96.5 | % | 91,884 | 22.2 | % | 12.98 | ||||||||||||||
Total Multi-Tenant Retail | 152 | 27,868 | 100.0 | % | 92.6 | % | 94.4 | % | 412,835 | 100.0 | % | 16.00 | ||||||||||||||
Single-User Retail | 49 | 1,292 | 100.0 | % | 100.0 | % | 25,278 | 19.57 | ||||||||||||||||||
Total Retail | 201 | 29,160 | 92.9 | % | 94.6 | % | 438,113 | 16.17 | ||||||||||||||||||
Office | 1 | 895 | 100.0 | % | 100.0 | % | 10,476 | 11.71 | ||||||||||||||||||
Total Operating Portfolio | 202 | 30,055 | 93.1 | % | 94.8 | % | $ | 448,589 | $ | 16.03 | ||||||||||||||||
Property Overview | ||||||||||||||||||||||||||
Property Type/Region | Number of Properties | GLA | % of Total GLA (a) | Occupancy | % Leased Including Signed | ABR | % of Total ABR (a) | ABR per Occupied Sq. Ft. | ||||||||||||||||||
Retail: | ||||||||||||||||||||||||||
North | 70 | 9,094 | 31.2 | % | 95.2 | % | 96.1 | % | $ | 148,858 | 34.0 | % | $ | 17.19 | ||||||||||||
East | 51 | 7,076 | 24.3 | % | 92.5 | % | 94.3 | % | 85,611 | 19.5 | % | 13.08 | ||||||||||||||
Total Eastern Division | 121 | 16,170 | 55.5 | % | 94.0 | % | 95.3 | % | 234,469 | 53.5 | % | 15.43 | ||||||||||||||
South | 51 | 7,363 | 25.2 | % | 91.2 | % | 94.5 | % | 119,128 | 27.2 | % | 17.74 | ||||||||||||||
West | 29 | 5,627 | 19.3 | % | 91.9 | % | 92.8 | % | 84,516 | 19.3 | % | 16.34 | ||||||||||||||
Total Western Division | 80 | 12,990 | 44.5 | % | 91.5 | % | 93.8 | % | 203,644 | 46.5 | % | 17.13 | ||||||||||||||
Total - Retail | 201 | 29,160 | 100.0 | % | 92.9 | % | 94.6 | % | 438,113 | 100.0 | % | 16.17 | ||||||||||||||
Office | 1 | 895 | 100.0 | % | 100.0 | % | 10,476 | 11.71 | ||||||||||||||||||
Total Operating Portfolio | 202 | 30,055 | 93.1 | % | 94.8 | % | $ | 448,589 | $ | 16.03 | ||||||||||||||||
(a) | Percentages are only provided for our retail operating portfolio. |
3rd Quarter 2015 Supplemental Information | 12 |
Total Retail Operating Portfolio | |||||||||||||||||||||||||||||||||
Total | 25,000+ sq ft | 10,000-24,999 sq ft | 5,000-9,999 sq ft | 0-4,999 sq ft | |||||||||||||||||||||||||||||
Property Type/Region | Number of Properties | GLA | Occupancy | GLA | Occupancy | GLA | Occupancy | GLA | Occupancy | GLA | Occupancy | ||||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||||||
North | 70 | 9,094 | 95.2 | % | 5,432 | 100.0 | % | 1,613 | 94.7 | % | 878 | 88.0 | % | 1,171 | 79.3 | % | |||||||||||||||||
East | 51 | 7,076 | 92.5 | % | 3,999 | 94.2 | % | 1,330 | 96.4 | % | 607 | 91.5 | % | 1,140 | 82.6 | % | |||||||||||||||||
Total Eastern Division | 121 | 16,170 | 94.0 | % | 9,431 | 97.5 | % | 2,943 | 95.5 | % | 1,485 | 89.4 | % | 2,311 | 80.9 | % | |||||||||||||||||
South | 51 | 7,363 | 91.2 | % | 3,038 | 94.6 | % | 1,458 | 88.1 | % | 1,092 | 92.2 | % | 1,775 | 87.5 | % | |||||||||||||||||
West | 29 | 5,627 | 91.9 | % | 2,863 | 97.4 | % | 1,054 | 94.6 | % | 662 | 81.8 | % | 1,048 | 80.5 | % | |||||||||||||||||
Total Western Division | 80 | 12,990 | 91.5 | % | 5,901 | 95.9 | % | 2,512 | 90.8 | % | 1,754 | 88.3 | % | 2,823 | 84.9 | % | |||||||||||||||||
Total | 201 | 29,160 | 92.9 | % | 15,332 | 96.9 | % | 5,455 | 93.3 | % | 3,239 | 88.8 | % | 5,134 | 83.1 | % | |||||||||||||||||
Total - % Leased including Signed | 201 | 29,160 | 94.6 | % | 15,332 | 97.6 | % | 5,455 | 97.3 | % | 3,239 | 91.2 | % | 5,134 | 84.9 | % |
3rd Quarter 2015 Supplemental Information | 13 |
Tenant | Primary DBA | Number of Stores | Occupied GLA | % of Occupied GLA | ABR | % of Total ABR | ABR per Occupied Sq. Ft. | |||||||||||||||
Ahold U.S.A. Inc. | Giant Foods, Stop & Shop, Martin's | 11 | 675 | 2.5 | % | $ | 13,275 | 3.0 | % | $ | 19.67 | |||||||||||
Best Buy Co., Inc. | Best Buy, Pacific Sales | 21 | 830 | 3.1 | % | 12,682 | 2.9 | % | 15.28 | |||||||||||||
The TJX Companies Inc. | HomeGoods, Marshalls, TJ Maxx | 41 | 1,207 | 4.5 | % | 11,170 | 2.5 | % | 9.25 | |||||||||||||
Ross Stores, Inc. | 33 | 973 | 3.6 | % | 10,884 | 2.5 | % | 11.19 | ||||||||||||||
Rite Aid Corporation | 32 | 409 | 1.5 | % | 9,388 | 2.1 | % | 22.95 | ||||||||||||||
PetSmart, Inc. | 29 | 603 | 2.2 | % | 9,030 | 2.1 | % | 14.98 | ||||||||||||||
Bed Bath & Beyond Inc. | Bed Bath & Beyond, Buy Buy Baby, The Christmas Tree Shops, Cost Plus World Market | 24 | 650 | 2.4 | % | 8,973 | 2.0 | % | 13.80 | |||||||||||||
The Home Depot, Inc. | Home Depot, Home Decorators | 8 | 870 | 3.2 | % | 7,303 | 1.7 | % | 8.39 | |||||||||||||
AB Acquisition LLC | Safeway, Jewel-Osco, Shaw's Supermarket, Tom Thumb | 10 | 526 | 1.9 | % | 7,117 | 1.6 | % | 13.53 | |||||||||||||
Regal Entertainment Group | Edwards Cinema | 2 | 219 | 0.8 | % | 6,911 | 1.6 | % | 31.56 | |||||||||||||
The Sports Authority, Inc. | 11 | 480 | 1.8 | % | 6,109 | 1.4 | % | 12.73 | ||||||||||||||
Michaels Stores, Inc. | Michaels, Aaron Brothers Art & Frame | 24 | 542 | 2.0 | % | 6,019 | 1.4 | % | 11.11 | |||||||||||||
Pier 1 Imports, Inc. | 27 | 277 | 1.0 | % | 5,564 | 1.3 | % | 20.09 | ||||||||||||||
Office Depot, Inc. | Office Depot, OfficeMax | 19 | 392 | 1.4 | % | 5,537 | 1.3 | % | 14.13 | |||||||||||||
Publix Super Markets Inc. | 12 | 511 | 1.9 | % | 5,405 | 1.2 | % | 10.58 | ||||||||||||||
Dick's Sporting Goods, Inc. | Dick's Sporting Goods, Golf Galaxy, Field & Stream | 10 | 495 | 1.8 | % | 5,403 | 1.2 | % | 10.92 | |||||||||||||
Ascena Retail Group Inc. | Dress Barn, Lane Bryant, Justice, Catherine's, Ann Taylor, Maurices, LOFT | 47 | 254 | 0.9 | % | 5,316 | 1.2 | % | 20.93 | |||||||||||||
The Gap Inc. | Old Navy, Banana Republic, The Gap, Gap Factory Store | 25 | 344 | 1.3 | % | 5,065 | 1.2 | % | 14.72 | |||||||||||||
Staples, Inc. | 14 | 301 | 1.1 | % | 4,984 | 1.1 | % | 16.56 | ||||||||||||||
The Kroger Co. | Kroger, Harris Teeter, King Soopers, QFC | 9 | 506 | 1.9 | % | 4,978 | 1.1 | % | 9.84 | |||||||||||||
Total Top Retail Tenants | 409 | 11,064 | 40.8 | % | $ | 151,113 | 34.4 | % | $ | 13.66 |
3rd Quarter 2015 Supplemental Information | 14 |
Total Leases | ||||||||||||||||||||||||
Number of Leases Signed | GLA Signed | New Contractual Rent per Square Foot (PSF) (a) | Prior Contractual Rent PSF (a) | % Change over Prior ABR (a) | WA Lease Term | Tenant Allowances PSF | ||||||||||||||||||
Q3 2015 | 131 | 666 | $ | 19.01 | $ | 17.38 | 9.38 | % | 5.94 | $ | 13.99 | |||||||||||||
Q2 2015 | 142 | 782 | $ | 19.52 | $ | 17.95 | 8.75 | % | 6.28 | $ | 7.70 | |||||||||||||
Q1 2015 | 139 | 765 | $ | 16.80 | $ | 15.69 | 7.07 | % | 5.87 | $ | 14.35 | |||||||||||||
Q4 2014 | 139 | 732 | $ | 18.91 | $ | 18.54 | 2.00 | % | 5.12 | $ | 11.77 | |||||||||||||
Total - 12 months | 551 | 2,945 | $ | 18.52 | $ | 17.31 | 6.99 | % | 5.84 | $ | 11.86 | |||||||||||||
Comparable Renewal Leases | ||||||||||||||||||||||||
Number of Leases Signed | GLA Signed | New Contractual Rent PSF | Prior Contractual Rent PSF | % Change over Prior ABR | WA Lease Term | Tenant Allowances PSF | ||||||||||||||||||
Q3 2015 | 80 | 412 | $ | 18.85 | $ | 17.57 | 7.29 | % | 4.61 | $ | 0.05 | |||||||||||||
Q2 2015 | 92 | 528 | $ | 18.58 | $ | 17.34 | 7.15 | % | 4.85 | $ | 1.82 | |||||||||||||
Q1 2015 | 89 | 488 | $ | 16.99 | $ | 16.17 | 5.07 | % | 4.60 | $ | 0.94 | |||||||||||||
Q4 2014 | 82 | 363 | $ | 18.86 | $ | 18.47 | 2.11 | % | 4.03 | $ | 0.45 | |||||||||||||
Total - 12 months | 343 | 1,791 | $ | 18.26 | $ | 17.30 | 5.55 | % | 4.56 | $ | 0.89 | |||||||||||||
Comparable New Leases | ||||||||||||||||||||||||
Number of Leases Signed | GLA Signed | New Contractual Rent PSF | Prior Contractual Rent PSF | % Change over Prior ABR | WA Lease Term | Tenant Allowances PSF | ||||||||||||||||||
Q3 2015 | 14 | 89 | $ | 19.77 | $ | 16.53 | 19.60 | % | 8.58 | $ | 32.56 | |||||||||||||
Q2 2015 | 15 | 39 | $ | 32.24 | $ | 26.21 | 23.01 | % | 8.11 | $ | 33.63 | |||||||||||||
Q1 2015 | 13 | 76 | $ | 15.56 | $ | 12.59 | 23.59 | % | 7.95 | $ | 26.10 | |||||||||||||
Q4 2014 | 14 | 53 | $ | 19.29 | $ | 19.00 | 1.53 | % | 8.25 | $ | 29.59 | |||||||||||||
Total - 12 months | 56 | 257 | $ | 20.32 | $ | 17.35 | 17.12 | % | 8.26 | $ | 30.20 | |||||||||||||
Non-Comparable New and Renewal Leases (b) | ||||||||||||||||||||||||
Number of Leases Signed | GLA Signed | New Contractual Rent PSF | Prior Contractual Rent PSF | % Change over Prior ABR | WA Lease Term | Tenant Allowances PSF | ||||||||||||||||||
Q3 2015 | 37 | 165 | $ | 22.41 | n/a | n/a | 7.49 | $ | 38.86 | |||||||||||||||
Q2 2015 | 35 | 215 | $ | 19.41 | n/a | n/a | 9.09 | $ | 17.45 | |||||||||||||||
Q1 2015 | 37 | 201 | $ | 18.36 | n/a | n/a | 8.08 | $ | 42.39 | |||||||||||||||
Q4 2014 | 43 | 316 | $ | 12.20 | n/a | n/a | 6.21 | $ | 21.80 | |||||||||||||||
Total - 12 months | 152 | 897 | $ | 17.19 | n/a | n/a | 7.75 | $ | 28.52 |
(a) | Excludes the impact of Non-Comparable New and Renewal Leases. |
(b) | Includes leases signed on units that were vacant for over 12 months, leases signed without fixed rental payments and leases signed where the previous and the current lease do not have a consistent lease structure. |
3rd Quarter 2015 Supplemental Information | 15 |
Lease Expiration Year | Lease Count | GLA | % of Occupied GLA | % of Total GLA | ABR | % of Total ABR | ABR per Occupied Sq. Ft. | ABR at Exp. (a) | ABR per Occupied Sq. Ft. at Exp. | ||||||||||||||||||||||
2015 | 62 | 259 | 0.9 | % | 0.9 | % | $ | 4,014 | 0.9 | % | $ | 15.50 | $ | 4,014 | $ | 15.50 | |||||||||||||||
2016 | 406 | 1,829 | 6.8 | % | 6.3 | % | 35,121 | 8.0 | % | 19.20 | 35,214 | 19.25 | |||||||||||||||||||
2017 | 437 | 2,833 | 10.5 | % | 9.7 | % | 43,858 | 10.0 | % | 15.48 | 44,437 | 15.69 | |||||||||||||||||||
2018 | 483 | 3,042 | 11.2 | % | 10.5 | % | 54,461 | 12.4 | % | 17.90 | 55,713 | 18.31 | |||||||||||||||||||
2019 | 517 | 4,150 | 15.3 | % | 14.2 | % | 74,668 | 17.1 | % | 17.99 | 76,362 | 18.40 | |||||||||||||||||||
2020 | 368 | 3,334 | 12.2 | % | 11.4 | % | 50,788 | 11.5 | % | 15.23 | 52,610 | 15.78 | |||||||||||||||||||
2021 | 163 | 2,083 | 7.7 | % | 7.2 | % | 31,998 | 7.3 | % | 15.36 | 34,990 | 16.80 | |||||||||||||||||||
2022 | 102 | 2,047 | 7.6 | % | 7.0 | % | 28,240 | 6.4 | % | 13.80 | 30,207 | 14.76 | |||||||||||||||||||
2023 | 99 | 1,620 | 6.0 | % | 5.5 | % | 24,625 | 5.6 | % | 15.20 | 26,366 | 16.28 | |||||||||||||||||||
2024 | 155 | 2,253 | 8.3 | % | 7.7 | % | 33,040 | 7.6 | % | 14.66 | 35,661 | 15.83 | |||||||||||||||||||
Thereafter | 159 | 3,544 | 13.1 | % | 12.1 | % | 55,302 | 12.7 | % | 15.60 | 62,964 | 17.77 | |||||||||||||||||||
Month to month | 49 | 103 | 0.4 | % | 0.4 | % | 1,998 | 0.5 | % | 19.40 | 1,998 | 19.40 | |||||||||||||||||||
Leased Total | 3,000 | 27,097 | 100.0 | % | 92.9 | % | $ | 438,113 | 100.0 | % | $ | 16.17 | $ | 460,536 | $ | 17.00 | |||||||||||||||
Leases signed but not commenced | 64 | 494 | — | 1.7 | % | $ | 9,282 | — | $ | 18.79 | $ | 11,023 | $ | 22.31 | |||||||||||||||||
Available | 1,569 | — | 5.4 | % | |||||||||||||||||||||||||||
The following tables break down the above information into anchor (10,000 sf and above) and non-anchor (under 10,000 sf) details for our retail operating portfolio. Dollars (other than per square foot information) and square feet of GLA are presented in thousands in the tables. | |||||||||||||||||||||||||||||||
Anchor | |||||||||||||||||||||||||||||||
Lease Expiration Year | Lease Count | GLA | % of Occupied GLA | % of Total GLA | ABR | % of Total ABR | ABR per Occupied Sq. Ft. | ABR at Exp. (a) | ABR per Occupied Sq. Ft. at Exp. | ||||||||||||||||||||||
2015 | 6 | 124 | 0.4 | % | 0.4 | % | $ | 1,308 | 0.3 | % | $ | 10.55 | $ | 1,308 | $ | 10.55 | |||||||||||||||
2016 | 38 | 831 | 3.1 | % | 2.9 | % | 11,946 | 2.7 | % | 14.38 | 11,946 | 14.38 | |||||||||||||||||||
2017 | 55 | 1,780 | 6.6 | % | 6.1 | % | 17,676 | 4.0 | % | 9.93 | 17,698 | 9.94 | |||||||||||||||||||
2018 | 66 | 1,829 | 6.7 | % | 6.3 | % | 23,361 | 5.3 | % | 12.77 | 23,582 | 12.89 | |||||||||||||||||||
2019 | 114 | 2,970 | 11.0 | % | 10.2 | % | 44,530 | 10.2 | % | 14.99 | 44,804 | 15.09 | |||||||||||||||||||
2020 | 91 | 2,426 | 8.9 | % | 8.3 | % | 29,149 | 6.6 | % | 12.02 | 29,483 | 12.15 | |||||||||||||||||||
2021 | 55 | 1,660 | 6.1 | % | 5.7 | % | 22,641 | 5.2 | % | 13.64 | 24,231 | 14.60 | |||||||||||||||||||
2022 | 50 | 1,838 | 6.8 | % | 6.3 | % | 22,723 | 5.2 | % | 12.36 | 24,005 | 13.06 | |||||||||||||||||||
2023 | 41 | 1,384 | 5.1 | % | 4.7 | % | 18,826 | 4.3 | % | 13.60 | 19,801 | 14.31 | |||||||||||||||||||
2024 | 60 | 1,923 | 7.1 | % | 6.6 | % | 23,081 | 5.3 | % | 12.00 | 24,214 | 12.59 | |||||||||||||||||||
Thereafter | 68 | 3,190 | 11.8 | % | 10.9 | % | 44,495 | 10.2 | % | 13.95 | 49,982 | 15.67 | |||||||||||||||||||
Month to month | — | — | — | % | — | % | — | — | % | — | — | — | |||||||||||||||||||
Leased Total | 644 | 19,955 | 73.6 | % | 68.4 | % | $ | 259,736 | 59.3 | % | $ | 13.02 | $ | 271,054 | $ | 13.58 | |||||||||||||||
Leases signed but not commenced | 16 | 324 | — | 1.1 | % | $ | 4,600 | — | $ | 14.20 | $ | 5,243 | $ | 16.18 | |||||||||||||||||
Available | 510 | — | 1.8 | % | |||||||||||||||||||||||||||
Non-Anchor | |||||||||||||||||||||||||||||||
Lease Expiration Year | Lease Count | GLA | % of Occupied GLA | % of Total GLA | ABR | % of Total ABR | ABR per Occupied Sq. Ft. | ABR at Exp. (a) | ABR per Occupied Sq. Ft. at Exp. | ||||||||||||||||||||||
2015 | 56 | 135 | 0.5 | % | 0.5 | % | $ | 2,706 | 0.6 | % | $ | 20.04 | $ | 2,706 | $ | 20.04 | |||||||||||||||
2016 | 368 | 998 | 3.7 | % | 3.4 | % | 23,175 | 5.3 | % | 23.22 | 23,268 | 23.31 | |||||||||||||||||||
2017 | 382 | 1,053 | 3.9 | % | 3.6 | % | 26,182 | 6.0 | % | 24.86 | 26,739 | 25.39 | |||||||||||||||||||
2018 | 417 | 1,213 | 4.5 | % | 4.2 | % | 31,100 | 7.1 | % | 25.64 | 32,131 | 26.49 | |||||||||||||||||||
2019 | 403 | 1,180 | 4.3 | % | 4.0 | % | 30,138 | 6.9 | % | 25.54 | 31,558 | 26.74 | |||||||||||||||||||
2020 | 277 | 908 | 3.3 | % | 3.1 | % | 21,639 | 4.9 | % | 23.83 | 23,127 | 25.47 | |||||||||||||||||||
2021 | 108 | 423 | 1.6 | % | 1.5 | % | 9,357 | 2.1 | % | 22.12 | 10,759 | 25.43 | |||||||||||||||||||
2022 | 52 | 209 | 0.8 | % | 0.7 | % | 5,517 | 1.2 | % | 26.40 | 6,202 | 29.67 | |||||||||||||||||||
2023 | 58 | 236 | 0.9 | % | 0.8 | % | 5,799 | 1.3 | % | 24.57 | 6,565 | 27.82 | |||||||||||||||||||
2024 | 95 | 330 | 1.2 | % | 1.1 | % | 9,959 | 2.3 | % | 30.18 | 11,447 | 34.69 | |||||||||||||||||||
Thereafter | 91 | 354 | 1.3 | % | 1.2 | % | 10,807 | 2.5 | % | 30.53 | 12,982 | 36.67 | |||||||||||||||||||
Month to month | 49 | 103 | 0.4 | % | 0.4 | % | 1,998 | 0.5 | % | 19.40 | 1,998 | 19.40 | |||||||||||||||||||
Leased Total | 2,356 | 7,142 | 26.4 | % | 24.5 | % | $ | 178,377 | 40.7 | % | $ | 24.98 | $ | 189,482 | $ | 26.53 | |||||||||||||||
Leases signed but not commenced | 48 | 170 | — | 0.6 | % | $ | 4,682 | — | $ | 27.54 | $ | 5,780 | $ | 34.00 | |||||||||||||||||
Available | 1,059 | — | 3.6 | % |
(a) | Represents annualized base rent at the scheduled expiration of the lease giving effect to fixed contractual increases in base rent. |
3rd Quarter 2015 Supplemental Information | 16 |
3rd Quarter 2015 Supplemental Information | 17 |
3rd Quarter 2015 Supplemental Information | 18 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Operating revenues | ||||||||||||||||
Same store investment properties (191 and 184 properties, respectively): | ||||||||||||||||
Rental income | $ | 102,935 | $ | 101,312 | $ | 292,184 | $ | 285,411 | ||||||||
Tenant recovery income | 25,611 | 25,259 | 72,118 | 70,492 | ||||||||||||
Other property income | 1,081 | 914 | 3,069 | 2,535 | ||||||||||||
Other investment properties: | ||||||||||||||||
Rental income | 12,876 | 17,798 | 60,334 | 65,020 | ||||||||||||
Tenant recovery income | 3,290 | 3,971 | 17,499 | 15,594 | ||||||||||||
Other property income | 1,013 | 1,014 | 3,117 | 3,091 | ||||||||||||
Operating expenses | ||||||||||||||||
Same store investment properties (191 and 184 properties, respectively): | ||||||||||||||||
Property operating expenses | (18,338 | ) | (18,915 | ) | (54,293 | ) | (56,326 | ) | ||||||||
Real estate taxes | (18,718 | ) | (17,853 | ) | (50,328 | ) | (48,001 | ) | ||||||||
Other investment properties: | ||||||||||||||||
Property operating expenses | (3,612 | ) | (3,907 | ) | (14,919 | ) | (13,466 | ) | ||||||||
Real estate taxes | (2,243 | ) | (2,721 | ) | (11,629 | ) | (10,054 | ) | ||||||||
NOI from continuing operations | ||||||||||||||||
Same store investment properties | 92,571 | 90,717 | 262,750 | 254,111 | ||||||||||||
Other investment properties | 11,324 | 16,155 | 54,402 | 60,185 | ||||||||||||
Total NOI from continuing operations | 103,895 | 106,872 | 317,152 | 314,296 | ||||||||||||
Other income (expense) | ||||||||||||||||
Straight-line rental income, net | 655 | 875 | 2,297 | 3,979 | ||||||||||||
Amortization of acquired above and below market lease intangibles, net | 505 | 334 | 1,346 | 1,216 | ||||||||||||
Amortization of lease inducements | (256 | ) | (176 | ) | (636 | ) | (533 | ) | ||||||||
Lease termination fees | 3,245 | 146 | 3,712 | 279 | ||||||||||||
Straight-line ground rent expense | (931 | ) | (956 | ) | (2,797 | ) | (2,934 | ) | ||||||||
Amortization of acquired ground lease intangibles | 140 | 140 | 420 | 420 | ||||||||||||
Depreciation and amortization | (52,871 | ) | (54,691 | ) | (163,345 | ) | (163,582 | ) | ||||||||
Provision for impairment of investment properties | (169 | ) | (54,584 | ) | (4,113 | ) | (60,378 | ) | ||||||||
General and administrative expenses | (10,939 | ) | (6,982 | ) | (35,949 | ) | (22,794 | ) | ||||||||
Gain on extinguishment of other liabilities | — | — | — | 4,258 | ||||||||||||
Equity in loss of unconsolidated joint ventures, net | — | (232 | ) | — | (1,443 | ) | ||||||||||
Gain on change in control of investment properties | — | — | — | 24,158 | ||||||||||||
Interest expense | (40,425 | ) | (37,356 | ) | (110,610 | ) | (101,092 | ) | ||||||||
Other income, net | 479 | 4,706 | 1,398 | 5,383 | ||||||||||||
Total other expense | (100,567 | ) | (148,776 | ) | (308,277 | ) | (313,063 | ) | ||||||||
Income (loss) from continuing operations | 3,328 | (41,904 | ) | 8,875 | 1,233 | |||||||||||
Discontinued operations: | ||||||||||||||||
Loss, net | — | — | — | (148 | ) | |||||||||||
Gain on sales of investment properties | — | — | — | 655 | ||||||||||||
Income from discontinued operations | — | — | — | 507 | ||||||||||||
Gain on sales of investment properties | 75,001 | 15,168 | 113,214 | 15,695 | ||||||||||||
Net income (loss) | 78,329 | (26,736 | ) | 122,089 | 17,435 | |||||||||||
Net income (loss) attributable to the Company | 78,329 | (26,736 | ) | 122,089 | 17,435 | |||||||||||
Preferred stock dividends | (2,362 | ) | (2,362 | ) | (7,087 | ) | (7,087 | ) | ||||||||
Net income (loss) attributable to common shareholders | $ | 75,967 | $ | (29,098 | ) | $ | 115,002 | $ | 10,348 | |||||||
Same Store NOI, Excluding the Impact of Strategic Remerchandising Activities | ||||||||||||||||
Same store NOI | $ | 92,571 | $ | 90,717 | $ | 262,750 | $ | 254,111 | ||||||||
Less: Impact of strategic remerchandising activities | (653 | ) | (2,466 | ) | (3,828 | ) | (7,280 | ) | ||||||||
Same store NOI, excluding the impact of strategic remerchandising activities | $ | 91,918 | $ | 88,251 | $ | 258,922 | $ | 246,831 | ||||||||
3rd Quarter 2015 Supplemental Information | 19 |
Three Months Ended | ||||||||
September 30, 2015 | December 31, 2014 | |||||||
Net income attributable to common shareholders | $ | 75,967 | $ | 23,502 | ||||
Preferred stock dividends | 2,362 | 2,363 | ||||||
Interest expense | 40,425 | 32,743 | ||||||
Depreciation and amortization | 52,871 | 52,385 | ||||||
Gain on sales of investment properties | (75,001 | ) | (26,501 | ) | ||||
Provision for impairment of investment properties | 169 | 11,825 | ||||||
Adjusted EBITDA | $ | 96,793 | $ | 96,317 | ||||
Annualized | $ | 387,172 | $ | 385,268 |
3rd Quarter 2015 Supplemental Information | 20 |
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