Maryland
(State or other jurisdiction
of incorporation)
|
001-33749
(Commission File Number)
|
26-0500600
(I.R.S. Employer
Identification No.)
|
||
RETAIL OPPORTUNITY INVESTMENTS PARTNERSHIP, LP
(Exact Name of Registrant as Specified in Its Charter)
|
||||
Delaware
(State or other jurisdiction
of incorporation)
|
333-189057-01
(Commission File Number)
|
94-2969738
(I.R.S. Employer
Identification No.)
|
8905 Towne Centre Drive, Suite 108
San Diego, CA
(Address of Principal Executive Offices)
|
92122
(Zip Code)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(a)
|
Financial Statement of Businesses Acquired.
|
·
|
Independent Auditors’ Report
|
·
|
Statement of Revenues and Certain Expenses for the year ended December 31, 2012 (Audited) and nine months ended September 30, 2013 (Unaudited)
|
·
|
Notes to Statement of Revenues and Certain Expenses for the year ended December 31, 2012 (Audited) and nine months ended September 30, 2013 (Unaudited)
|
·
|
Independent Auditors’ Report
|
·
|
Statement of Revenues and Certain Expenses for the year ended December 31, 2012 (Audited) and nine months ended September 30, 2013 (Unaudited)
|
·
|
Notes to Statement of Revenues and Certain Expenses for the year ended December 31, 2012 (Audited) and nine months ended September 30, 2013 (Unaudited)
|
·
|
Pro Forma Consolidated Statement of Operations and Comprehensive Income for the nine months ended September 30, 2013 (Unaudited)
|
·
|
Pro Forma Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2012 (Unaudited)
|
·
|
Notes to Pro Forma Consolidated Financial Statements (Unaudited)
|
·
|
Pro Forma Consolidated Statement of Operations and Comprehensive Income for the nine months ended September, 2013 (Unaudited)
|
·
|
Pro Forma Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2012 (Unaudited)
|
·
|
Notes to Pro Forma Consolidated Financial Statements (Unaudited)
|
Description
|
||
23.1
|
Consent of Independent Auditors
|
|
99.1
|
Financial statements and pro forma financial information referenced above under paragraphs (a), (b) and (c) of this Item 9.01
|
Page
|
|
Crossroads Shopping Center
|
|
Independent Auditors’ Report
|
F-1
|
Statement of Revenues and Certain Expenses for the year ended December 31, 2012 (Audited) and nine months ended September 30, 2013 (Unaudited)
|
F-2
|
Notes to Statement of Revenues and Certain Expenses for the year ended December 31, 2012 (Audited) and nine months ended September 30, 2013 (Unaudited)
|
F-3
|
Five Points Plaza
|
|
Independent Auditors’ Report
|
F-5
|
Statement of Revenues and Certain Expenses for the year ended December 31, 2012 (Audited) and nine months ended September 30, 2013 (Unaudited)
|
F-6
|
Notes to Statement of Revenues and Certain Expenses for the year ended December 31, 2012 (Audited) and nine months ended September 30, 2013 (Unaudited)
|
F-7
|
Pro Forma Consolidated Financial Statements of Retail Opportunity Investments Corp.
|
|
Pro Forma Consolidated Statement of Operations and Comprehensive Income for the nine months ended September 30, 2013 (Unaudited)
|
F-10 |
Pro Forma Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2012 (Unaudited)
|
F-11
|
Notes to Pro Forma Consolidated Financial Statements (Unaudited)
|
F-12
|
Pro Forma Consolidated Financial Statements of Retail Opportunity Investments Partnership, LP
|
|
Pro Forma Consolidated Statement of Operations and Comprehensive Income for the nine months ended September 30, 2013 (Unaudited)
|
F-14 |
Pro Forma Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2012 (Unaudited)
|
F-15
|
Notes to Pro Forma Consolidated Financial Statements (Unaudited)
|
F-16
|
Year Ended
December 31,
2012
|
Nine Months
Ended
September 30,
2013
(Unaudited)
|
|||||||
Revenues
|
||||||||
Rental income (note 4)
|
$ | 10,855 | $ | 8,308 | ||||
Total revenues
|
10,855 | 8,308 | ||||||
Certain Expenses
|
||||||||
Utilities
|
525 | 399 | ||||||
Repairs, maintenance and supplies
|
1,166 | 878 | ||||||
Cleaning and landscaping
|
488 | 405 | ||||||
Real estate taxes
|
717 | 586 | ||||||
Insurance
|
69 | 54 | ||||||
Total certain expenses
|
2,965 | 2,322 | ||||||
Excess of revenues over certain expenses
|
$ | 7,890 | $ | 5,986 | ||||
Year ending December 31
|
Amounts
|
|||
2013
|
$ | 7,492 | ||
2014
|
6,317 | |||
2015
|
4,444 | |||
2016
|
3,731 | |||
2017
|
3,298 | |||
Thereafter
|
9,014 | |||
$ | 34,296 | |||
Year Ended
December 31,
2012
|
Nine Months
Ended
September 30,
2013
(Unaudited)
|
|||||||
Revenues
|
||||||||
Rental income (note 4)
|
$ | 3,920 | $ | 2,794 | ||||
Total revenues
|
3,920 | 2,794 | ||||||
Certain Expenses
|
||||||||
Utilities
|
53 | 41 | ||||||
Repairs, maintenance and supplies
|
224 | 216 | ||||||
Cleaning and landscaping
|
312 | 260 | ||||||
Real estate taxes
|
144 | 110 | ||||||
Insurance
|
77 | 77 | ||||||
Total certain expenses
|
810 | 704 | ||||||
Excess of revenues over certain expenses
|
$ | 3,110 | $ | 2,090 | ||||
Year ending December 31
|
Amounts
|
|||
2013
|
$ | 1,889 | ||
2014
|
1,744 | |||
2015
|
1,511 | |||
2016
|
1,244 | |||
2017
|
1,009 | |||
Thereafter
|
2,071 | |||
$ | 9,468 | |||
Company
Historical(1)
|
Crossroads
Shopping
Center
|
Five
Points
Plaza
|
Pro forma
Adjustments
|
Company
Pro Forma
|
||||||||||||||||
Revenue
|
||||||||||||||||||||
Base rents
|
$ | 60,198 | $ | 6,324 | $ | 2,397 | $ | 238 | (2) | $ | 69,157 | |||||||||
Recoveries from tenants
|
15,550 | 1,984 | 397 | — | 17,931 | |||||||||||||||
Mortgage interest
|
617 | — | — | (617 | ) (3) | — | ||||||||||||||
Other income
|
1,229 | — | — | — | 1,229 | |||||||||||||||
Total revenues
|
77,594 | 8,308 | 2,794 | (379 | ) | 88,317 | ||||||||||||||
Operating expenses
|
||||||||||||||||||||
Property operating
|
13,204 | 1,736 | 594 | — | 15,534 | |||||||||||||||
Property taxes
|
7,893 | 586 | 110 | — | 8,589 | |||||||||||||||
Depreciation and amortization
|
27,813 | — | — | 2,967 | (4) | 30,780 | ||||||||||||||
General & administrative expenses
|
8,176 | — | — | — | 8,176 | |||||||||||||||
Acquisition transaction costs
|
1,570 | — | — | (377 | ) | 1,193 | ||||||||||||||
Total operating expenses
|
58,656 | 2,322 | 704 | 2,590 | 64,272 | |||||||||||||||
Operating income (loss)
|
||||||||||||||||||||
Non-operating income (expenses)
|
18,938 | 5,986 | 2,090 | (2,969 | ) | 24,045 | ||||||||||||||
Interest expense
|
(10,974 | ) | — | — | (2,941 | )(6) | (13,915 | ) | ||||||||||||
Gain on consolidation of joint venture
|
20,382 | — | — | (20,382 | )(7) | — | ||||||||||||||
Equity in earnings from unconsolidated joint venture
|
2,390 | — | — | (2,390 | )(7) | — | ||||||||||||||
Interest income
|
1 | — | — | — | 1 | |||||||||||||||
Income from continuing operations
|
30,737 | 5,986 | 2,090 | (28,682 | ) | 10,131 | ||||||||||||||
Loss from discontinued operations
|
(714 | ) | —- | — | — | (714 | ) | |||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Corp.
|
$ | 30,023 | $ | 5,986 | $ | 2,090 | $ | (28,682 | ) | $ | 9,417 | |||||||||
Pro forma weighted average shares outstanding
|
||||||||||||||||||||
Basic:
|
65,811 | — | 65,811 | |||||||||||||||||
Diluted:
|
68,871 | 3,242 | (8) | 72,113 | ||||||||||||||||
Pro forma income per share | ||||||||||||||||||||
Net income per share – basic:
|
||||||||||||||||||||
Income from continuing operations
|
$ | 0.47 | $ | 0.15 | ||||||||||||||||
Loss from discontinued operations
|
(0.01 | ) | (0.01 | ) | ||||||||||||||||
Net income per share
|
$ | 0.46 | $ | 0.14 | ||||||||||||||||
Net income per share – diluted:
|
||||||||||||||||||||
Income from continuing operations
|
$ | 0.45 | $ | 0.14 | ||||||||||||||||
Loss from discontinued operations
|
(0.01 | ) | (0.01 | ) | ||||||||||||||||
Net income per share
|
$ | 0.44 | $ | 0.13 | ||||||||||||||||
Pro forma dividends per share:
|
$ | 0.45 | $ | 0.45 | ||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Corp.
|
$ | 30,023 | $ | 5,986 | $ | 2,090 | $ | (28,682 | ) | $ | 9,417 | |||||||||
Other comprehensive income:
|
||||||||||||||||||||
Unrealized gain on swap derivative
|
||||||||||||||||||||
Unrealized swap derivative gain arising during the period
|
4,643 | — | — | — | 4,643 | |||||||||||||||
Reclassification adjustment for amortization of interest expense included in net income
|
3,558 | — | — | — | 3,558 | |||||||||||||||
Unrealized gain on swap derivative
|
8,201 | — | — | — | 8,201 | |||||||||||||||
Total Comprehensive income (loss)
|
$ | 38,224 | $ | 5,986 | $ | 2,090 | $ | (28,682 | ) | $ | 17,618 | |||||||||
Company
Historical(1)
|
Crossroads
Shopping
Center
|
Five
Points
Plaza
|
Pro forma
Adjustments
|
Company
Pro Forma
|
||||||||||||||||
Revenue
|
||||||||||||||||||||
Base rents
|
$ | 59,219 | $ | 8,532 | $ | 3,335 | $ | 332 | (2) | $ | 71,418 | |||||||||
Recoveries from tenants
|
14,771 | 2,323 | 585 | — | 17,679 | |||||||||||||||
Mortgage interest
|
1,106 | — | — | (1,106 | ) (3) | — | ||||||||||||||
Total revenues
|
75,096 | 10,855 | 3,920 | (774 | ) | 89,097 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
Property operating
|
12,780 | 2,248 | 666 | — | 15,694 | |||||||||||||||
Property taxes
|
7,281 | 717 | 144 | — | 8,142 | |||||||||||||||
Depreciation and amortization
|
29,075 | — | — | 3,956 | (4) | 33,031 | ||||||||||||||
General & administrative expenses
|
13,059 | — | — | — | 13,059 | |||||||||||||||
Acquisition transaction costs
|
1,347 | — | — | 377 | (5) | 1,724 | ||||||||||||||
Total operating expenses
|
63,542 | 2,965 | 810 | 4,333 | 71,650 | |||||||||||||||
Operating income (loss)
|
11,554 | 7,890 | 3,110 | (5,107 | ) | 17,447 | ||||||||||||||
Non-operating income (expenses)
|
||||||||||||||||||||
Interest expense
|
(11,380 | ) | — | — | (3,922 | )(6) | (15,302 | ) | ||||||||||||
Gain on consolidation of joint venture
|
2,145 | — | — | — | 2,145 | |||||||||||||||
Gain on bargain purchase
|
3,864 | — | — | — | 3,864 | |||||||||||||||
Equity in earnings from unconsolidated joint ventures
|
1,698 | — | — | (711 | ) (7) | 987 | ||||||||||||||
Interest income
|
12 | — | — | — | 12 | |||||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Corp.
|
$ | 7,893 | $ | 7,890 | $ | 3,110 | $ | (9,740 | ) | $ | 9,153 | |||||||||
Pro forma weighted average shares outstanding
|
||||||||||||||||||||
Basic:
|
51,059 | — | 51,059 | |||||||||||||||||
Diluted:
|
52,371 | 3,291 | (8) | 55,662 | ||||||||||||||||
Pro forma income per share | ||||||||||||||||||||
Basic:
|
$ | 0.15 | $ | 0.18 | ||||||||||||||||
Diluted:
|
$ | 0.15 | $ | 0.16 | ||||||||||||||||
Pro forma dividends per share:
|
$ | 0.53 | $ | 0.53 | ||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Corp.
|
$ | 7,893 | $ | 7,890 | $ | 3,110 | $ | (9,740 | ) | $ | 9,153 | |||||||||
Other comprehensive loss:
|
||||||||||||||||||||
Unrealized loss on swap derivative
|
||||||||||||||||||||
Unrealized swap derivative loss arising during the period
|
(7,859 | ) | — | — | — | (7,859 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income
|
3,799 | — | — | — | 3,799 | |||||||||||||||
Unrealized loss on swap derivative
|
(4,060 | ) | — | — | — | (4,060 | ) | |||||||||||||
Total Comprehensive income (loss)
|
$ | 3,833 | $ | 7,890 | $ | 3,110 | $ | (9,740 | ) | $ | 5,093 | |||||||||
1.
|
Derived from the Company’s audited and unaudited financial statements for the year ended December 31, 2012 and the nine months ended September 30, 2013, respectively.
|
2.
|
Reflects the pro forma adjustment of $332,000 and $238,000 for the year ended December 31, 2012 and the nine months ended September 30, 2013, respectively, to record operating rents on a straight-line basis beginning January 1, 2012.
|
3.
|
Reflects the pro forma adjustment to mortgage interest, assuming the Company had consolidated the activities of Crossroads Shopping Center into the Company’s financial records as of the first day of the periods presented.
|
4.
|
Reflects the estimated depreciation for the Properties based on estimated values allocated to building at the beginning of the periods presented. Depreciation expense is computed on a straight-line basis over the estimated useful life of the assets as follows (dollar amounts in thousands):
|
Estimated
Useful Life
|
For the Nine Months
Ended
September 30, 2013
Depreciation Expense
|
Year Ended
December 31, 2012
Depreciation Expense
|
|||||||
Building
|
39 years
|
$ | 2,967 | $ | 3,956 |
5.
|
Reflects the pro forma adjustment for estimated costs related to the acquisition of the Properties.
|
6.
|
Reflects the pro forma adjustment to interest expense, assuming the Company had assumed the existing mortgage of Crossroads Shopping Center and borrowed funds from its credit facility to cover the purchase price of Five Points Plaza, as if the acquisitions had been made on the first day of the periods presented.
|
7.
|
Reflects the pro forma adjustments to reverse the gain on consolidation of joint venture and equity in earnings from unconsolidated joint ventures, assuming the Company had consolidated the activities of Crossroads Shopping Center into the Company’s financial records as of the first day of the periods presented.
|
8.
|
Reflects the pro forma adjustment for the issuance of OP Units, which have essentially the same economic characteristics as a share of ROIC common stock as they share equally in the total net income or loss and distributions of the Operating Partnership.
|
Company
Historical(9)
|
Crossroads
Shopping
Center
|
Five
Points
Plaza
|
Pro forma
Adjustments
|
Company
Pro Forma
|
||||||||||||||||
Revenue
|
||||||||||||||||||||
Base rents
|
$ | 60,198 | $ | 6,324 | $ | 2,397 | $ | 238 | (10) | $ | 69,157 | |||||||||
Recoveries from tenants
|
15,550 | 1,984 | 397 | — | 17,931 | |||||||||||||||
Mortgage interest
|
617 | — | — | (617 | ) (11) | — | ||||||||||||||
Other income
|
1,229 | — | — | — | 1,229 | |||||||||||||||
Total revenues
|
77,594 | 8,308 | 2,794 | (379 | ) | 88,317 | ||||||||||||||
Operating expenses
|
||||||||||||||||||||
Property operating
|
13,204 | 1,736 | 594 | — | 15,534 | |||||||||||||||
Property taxes
|
7,893 | 586 | 110 | — | 8,589 | |||||||||||||||
Depreciation and amortization
|
27,813 | — | — | 2,967 | (12) | 30,780 | ||||||||||||||
General & administrative expenses
|
8,176 | — | — | — | 8,176 | |||||||||||||||
Acquisition transaction costs
|
1,570 | — | — | (377 | ) | 1,193 | ||||||||||||||
Total operating expenses
|
58,656 | 2,322 | 704 | 2,590 | 64,272 | |||||||||||||||
Operating income (loss)
|
||||||||||||||||||||
Non-operating income (expenses)
|
18,938 | 5,986 | 2,090 | (2,969 | ) | 24,045 | ||||||||||||||
Interest expense
|
(10,974 | ) | — | — | (2,941 | )(14) | (13,915 | ) | ||||||||||||
Gain on consolidation of joint venture
|
20,382 | — | — | (20,382 | )(15) | — | ||||||||||||||
Equity in earnings from unconsolidated joint venture
|
2,390 | — | — | (2,390 | )(15) | — | ||||||||||||||
Interest income
|
1 | — | — | — | 1 | |||||||||||||||
Income from continuing operations
|
30,737 | 5,986 | 2,090 | (28,682 | ) | 10,131 | ||||||||||||||
Loss from discontinued operations
|
(714 | ) | —- | — | — | (714 | ) | |||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Partnership, LP
|
$ | 30,023 | $ | 5,986 | $ | 2,090 | $ | (28,682 | ) | $ | 9,417 | |||||||||
Pro forma weighted average units outstanding
|
||||||||||||||||||||
Basic:
|
65,859 | 3,242 | (16) | 69,101 | ||||||||||||||||
Diluted:
|
68,871 | 3,242 | (16) | 72,113 | ||||||||||||||||
Pro forma weighted average units outstanding
|
||||||||||||||||||||
Net income per unit – basic:
|
||||||||||||||||||||
Income from continuing operations
|
$ | 0.47 | $ | 0.15 | ||||||||||||||||
Loss from discontinued operations
|
(0.01 | ) | (0.01 | ) | ||||||||||||||||
Net income per unit (*)
|
$ | 0.45 | $ | 0.14 | ||||||||||||||||
Net income per unit – diluted:
|
||||||||||||||||||||
Income from continuing operations
|
$ | 0.45 | $ | 0.14 | ||||||||||||||||
Loss from discontinued operations
|
(0.01 | ) | (0.01 | ) | ||||||||||||||||
Net income per unit
|
$ | 0.44 | $ | 0.13 | ||||||||||||||||
Pro forma distributions per share:
|
$ | 0.45 | $ | 0.45 | ||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Partnership, LP
|
$ | 30,023 | $ | 5,986 | $ | 2,090 | $ | (28,682 | ) | $ | 9,417 | |||||||||
Other comprehensive loss:
|
||||||||||||||||||||
Unrealized gain on swap derivative
|
||||||||||||||||||||
Unrealized swap derivative gain arising during the period
|
4,643 | — | — | — | 4,643 | |||||||||||||||
Reclassification adjustment for amortization of interest expense included in net income
|
3,558 | — | — | — | 3,558 | |||||||||||||||
Unrealized gain on swap derivative
|
8,201 | — | — | — | 8,201 | |||||||||||||||
Total Comprehensive income (loss)
|
$ | 38,224 | $ | 5,986 | $ | 2,090 | $ | (28,682 | ) | $ | 17,618 | |||||||||
Company
Historical(9)
|
Crossroads
Shopping
Center
|
Five
Points
Plaza
|
Pro forma
Adjustments
|
Company
Pro Forma
|
||||||||||||||||
Revenue
|
||||||||||||||||||||
Base rents
|
$ | 59,219 | $ | 8,532 | $ | 3,335 | $ | 332 | (10) | $ | 71,418 | |||||||||
Recoveries from tenants
|
14,771 | 2,323 | 585 | — | 17,679 | |||||||||||||||
Mortgage interest
|
1,106 | — | — | (1,106 | ) (13) | — | ||||||||||||||
Total revenues
|
75,096 | 10,855 | 3,920 | (774 | ) | 89,097 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
Property operating
|
12,780 | 2,248 | 666 | — | 15,694 | |||||||||||||||
Property taxes
|
7,281 | 717 | 144 | — | 8,142 | |||||||||||||||
Depreciation and amortization
|
29,075 | — | — | 3,956 | (12) | 33,031 | ||||||||||||||
General & administrative expenses
|
13,059 | — | — | — | 13,059 | |||||||||||||||
Acquisition transaction costs
|
1,347 | — | — | 377 | (13) | 1,724 | ||||||||||||||
Total operating expenses
|
63,542 | 2,965 | 810 | 4,333 | 71,650 | |||||||||||||||
Operating income (loss)
|
11,554 | 7,890 | 3,110 | (5,107 | ) | 17,447 | ||||||||||||||
Non-operating income (expenses)
|
||||||||||||||||||||
Interest expense
|
(11,380 | ) | — | — | (3,922 | )(14) | (15,302 | ) | ||||||||||||
Gain on consolidation of joint venture
|
2,145 | — | — | — | 2,145 | |||||||||||||||
Gain on bargain purchase
|
3,864 | — | — | — | 3,864 | |||||||||||||||
Equity in earnings from unconsolidated joint ventures
|
1,698 | — | — | (711 | ) (15) | 987 | ||||||||||||||
Interest income
|
12 | — | — | — | 12 | |||||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Partnership, LP
|
$ | 7,893 | $ | 7,890 | $ | 3,110 | $ | (9,740 | ) | $ | 9,153 | |||||||||
Comprehensive income (loss): | ||||||||||||||||||||
Basic:
|
51,059 | 3,291 | (8) | 54,350 | ||||||||||||||||
Diluted:
|
52,371 | 3,291 | (8) | 55,662 | ||||||||||||||||
Pro forma income per unit | ||||||||||||||||||||
Basic:
|
$ | 0.15 | $ | 0.17 | ||||||||||||||||
Diluted:
|
$ | 0.15 | $ | 0.16 | ||||||||||||||||
Pro forma dividends per unit:
|
$ | 0.53 | $ | 0.53 | ||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Partnership, LP
|
$ | 7,893 | $ | 7,890 | $ | 3,110 | $ | (9,740 | ) | $ | 9,153 | |||||||||
Other comprehensive loss:
|
||||||||||||||||||||
Unrealized loss on swap derivative
|
||||||||||||||||||||
Unrealized swap derivative loss arising during the period
|
(7,859 | ) | — | — | — | (7,859 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income
|
3,799 | — | — | — | 3,799 | |||||||||||||||
Unrealized loss on swap derivative
|
(4,060 | ) | — | — | — | (4,060 | ) | |||||||||||||
Total Comprehensive income (loss)
|
$ | 3,833 | $ | 7,890 | $ | 3,110 | $ | (9,740 | ) | $ | 5,093 | |||||||||
9.
|
Derived from the Operating Partnership’s unaudited financial statements for the year ended December 31, 2012 and the nine months ended September 30, 2013, respectively.
|
10.
|
Reflects the pro forma adjustment of $332,000 and $238,000 for the year ended December 31, 2012 and the nine months ended September 30, 2013, respectively, to record operating rents on a straight-line basis beginning January 1, 2012.
|
11.
|
Reflects the pro forma adjustment to mortgage interest, assuming the Operating Partnership had consolidated the activities of Crossroads Shopping Center into the Operating Partnership’s financial records as of the first day of the periods presented.
|
12.
|
Reflects the estimated depreciation for the Properties based on estimated values allocated to building at the beginning of the periods presented. Depreciation expense is computed on a straight-line basis over the estimated useful life of the assets as follows (dollar amounts in thousands):
|
Estimated
Useful Life
|
For the Nine Months
Ended
September 30, 2013
Depreciation Expense
|
Year Ended
December 31, 2012
Depreciation Expense
|
|||||||
Building
|
39 years
|
$ | 2,967 | $ | 3,956 |
13.
|
Reflects the pro forma adjustment for estimated costs related to the acquisition of the Properties.
|
14.
|
Reflects the pro forma adjustment to interest expense, assuming the Operating Partnership had assumed the existing mortgage of Crossroads Shopping Center and borrowed funds from its credit facility to cover the purchase price of Five Points Plaza, as if the acquisitions had been made on the first day of the periods presented.
|
15.
|
Reflects the pro forma adjustments to reverse the gain on consolidation of joint venture and equity in earnings from unconsolidated joint ventures, assuming the Company had consolidated the activities of Crossroads Shopping Center into the Company’s financial records as of the first day of the periods presented.
|
16.
|
Reflects the pro forma adjustment for the issuance of OP Units, which have essentially the same economic characteristics as a share of ROIC common stock as they share equally in the total net income or loss and distributions of the Operating Partnership.
|