Merger and Acquisitions (Tables)
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12 Months Ended |
Dec. 31, 2015 |
Business Combinations [Abstract] |
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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 |
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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 |
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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 |
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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 |
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| Accounts payable and accrued expenses | 2,204 |
| Deferred revenue and other liabilities | 29,291 |
| Total assumed liabilities | 31,495 |
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| Fair value of acquired net assets | $ | 407,415 |
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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 |
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| 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 |
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| Noncontrolling interests | 69,356 |
| Common stock issued | 1,234,688 |
| Total estimated fair value of acquired net assets | $ | 2,386,202 |
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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 |
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| 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 |
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| Fair value of acquired net assets | $ | 165,227 |
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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 | % |
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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 |
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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 |
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| | | ____________________ | 1 | We sold eight properties that were acquired through the Merger in November and December 2014. |
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