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Merger and Acquisitions (Tables)
12 Months Ended
Dec. 31, 2015
Business Combinations [Abstract]  
Schedule of Real Estate Properties
The Company’s investment properties, excluding properties held for sale, as of December 31, 2015 and December 31, 2014 were as follows:

($ in thousands)
 
Balance at
 
 
December 31,
2015
 
December 31,
2014
Investment properties, at cost:
 
 
 
 
Land
 
$
805,646

 
$
778,780

Buildings and improvements
 
2,946,976

 
2,785,780

Furniture, equipment and other
 
6,960

 
6,398

Land held for development
 
34,975

 
35,907

Construction in progress
 
138,583

 
125,883

 
 
$
3,933,140

 
$
3,732,748

In 2013, we acquired thirteen operating properties, which are summarized below:


Property Name
 
MSA
 
Acquisition Date
 
Purchase Price
($ in millions)
 
 
 
 
 
 
 
Shoppes of Eastwood
 
Orlando, FL
 
January 2013
 
$
11.6

Cool Springs Market
 
Nashville, TN
 
April 2013
 
37.6

Castleton Crossing
 
Indianapolis, IN
 
May 2013
 
39.0

Toringdon Market
 
Charlotte, NC
 
August 2013
 
15.9

 
 
 
 
 
 
 
Nine Property Portfolio
 
Various
 
November 2013
 
304.0

In 2015, we acquired four operating properties for total consideration of $185.8 million, including the assumption of an $18.3 million loan, which are summarized below:

Property Name
 
MSA
 
Acquisition Date
 
 
 
 
 
Colleyville Downs
 
Dallas, TX
 
April 2015
Belle Isle Station
 
Oklahoma City, OK
 
May 2015
Livingston Shopping Center
 
New York - Newark
 
July 2015
Chapel Hill Shopping Center
 
Fort Worth, TX
 
August 2015


The following is a summary of our 2014 operating property acquisitions.
 
 
Property Name
 
MSA
 
Acquisition Date
 
  Purchase Price
($ in millions)
 
 
 
 
 
 
 
Merger with Inland Diversified
 
Various
 
July 2014
 
$
2,128.6

 
 
 
 
 
 
 
Rampart Commons
 
Las Vegas, NV
 
December 2014
 
32.3

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes our final aggregated estimated fair value of amounts recognized for each major class of asset and liability for these acquisitions:
 
 
($ in thousands)
Allocation to opening
balance sheet
Investment properties, net
$
419,080

Lease-related intangible assets
19,537

Other assets
293

Total acquired assets
438,910

 
 

Accounts payable and accrued expenses
2,204

Deferred revenue and other liabilities
29,291

Total assumed liabilities
31,495

 
 

Fair value of acquired net assets
$
407,415

The following table summarizes the aggregate estimated fair values of the properties acquired in connection with the Merger with Inland Diversified on July 1, 2014:
 
 
($ in thousands)
 
Assets:
 
Investment properties, net
$
2,095,567

Deferred costs, net
143,210

Investments in marketable securities
18,602

Cash and cash equivalents
108,666

Accounts receivable, prepaid expenses, and other
20,157

Total assets
$
2,386,202

 
 

Liabilities:
 

Mortgage and other indebtedness, including debt premium of $33,298
$
892,909

Deferred revenue and other liabilities
129,935

Accounts payable and accrued expenses
59,314

Total Liabilities
1,082,158

 
 

Noncontrolling interests
69,356

Common stock issued
1,234,688

Total estimated fair value of acquired net assets
$
2,386,202

The following table summarizes the estimation of the fair value of assets acquired and liabilities assumed for the properties acquired in 2015:


($ in thousands)
 
Investment properties, net
$
176,223

Lease-related intangible assets, net
17,436

Other assets
435

Total acquired assets
194,094

 
 

Mortgage and other indebtedness
18,473

Accounts payable and accrued expenses
2,125

Deferred revenue and other liabilities
8,269

Total assumed liabilities
28,867

 
 

Fair value of acquired net assets
$
165,227

Fair Value, Option, Quantitative Disclosures
The ranges of the most significant Level 3 assumptions utilized in determining the value of the real estate and related assets of each building acquired during the Merger are as follows:
 
 
 
 
Low
 
High
Lease-up period (months)
 
6

 
18

Net rental rate per square foot – Anchors (greater than 10,000 square feet)
 
$
5.00

 
$
30.00

Net rental rate per square foot – Small Shops
 
$
11.00

 
$
53.00

Discount rate
 
5.75
%
 
9.25
%
Business Acquisition, Pro Forma Information
he results also reflect the pay down of certain indebtedness.
 
 
($ in thousands)
 
Twelve Months Ended
December 31,
(unaudited)
 
 
2014
 
2013
Total revenue
 
$
355,716

 
$
357,506

Consolidated net income
 
26,911

 
2,219

The following table summarizes the revenues and expenses of the properties acquired in 2014 subsequent to the respective acquisition dates. These revenues and expenses are included in the consolidated statement of operations for the year ended December 31, 2014:
 
($ in thousands)
Year ended December 31,
 
2014
Revenue
$
92,212

Expenses:
 

Property operating
14,262

Real estate taxes and other
11,254

Depreciation and amortization
43,257

Interest expense
14,845

Total expenses
83,618

Gain on sale and other (1)
2,153

Net income impact from 2014 acquisitions prior to income allocable to noncontrolling interests
10,747

Income allocable to noncontrolling interests
(1,284
)
Impact from 2014 acquisitions on income attributable to Kite Realty Trust
$
9,463


____________________
1
We sold eight properties that were acquired through the Merger in November and December 2014.