Maryland | 27-3099608 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
One Federal Street, 23rd Floor Boston, Massachusetts | 02110 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer ¨ |
Non-accelerated filer ¨ | Smaller reporting company ¨ |
(Do not check if a smaller reporting company) | |
Emerging growth company ¨ |
Class | Outstanding at October 31, 2018 | ||
Common Stock ($0.01 par value) | 108,893,286 | ||
6.875% Series C Cumulative Redeemable Preferred Stock ($0.01 par value) | 3,000,000 |
September 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Rental Property: | |||||||
Land | $ | 355,590 | $ | 321,560 | |||
Buildings and improvements, net of accumulated depreciation of $301,787 and $249,057, respectively | 2,202,755 | 1,932,764 | |||||
Deferred leasing intangibles, net of accumulated amortization of $237,892 and $280,642, respectively | 327,734 | 313,253 | |||||
Total rental property, net | 2,886,079 | 2,567,577 | |||||
Cash and cash equivalents | 6,024 | 24,562 | |||||
Restricted cash | 5,231 | 3,567 | |||||
Tenant accounts receivable, net | 39,170 | 33,602 | |||||
Prepaid expenses and other assets | 35,122 | 25,364 | |||||
Interest rate swaps | 17,649 | 6,079 | |||||
Assets held for sale, net | — | 19,916 | |||||
Total assets | $ | 2,989,275 | $ | 2,680,667 | |||
Liabilities and Equity | |||||||
Liabilities: | |||||||
Unsecured credit facility | $ | 95,000 | $ | 271,000 | |||
Unsecured term loans, net | 596,085 | 446,265 | |||||
Unsecured notes, net | 572,389 | 398,234 | |||||
Mortgage notes, net | 56,993 | 58,282 | |||||
Accounts payable, accrued expenses and other liabilities | 53,445 | 43,216 | |||||
Interest rate swaps | — | 1,217 | |||||
Tenant prepaid rent and security deposits | 19,328 | 19,045 | |||||
Dividends and distributions payable | 14,530 | 11,880 | |||||
Deferred leasing intangibles, net of accumulated amortization of $13,043 and $13,555, respectively | 20,708 | 21,221 | |||||
Total liabilities | 1,428,478 | 1,270,360 | |||||
Commitments and contingencies (Note 10) | |||||||
Equity: | |||||||
Preferred stock, par value $0.01 per share, 15,000,000 shares authorized, | |||||||
Series B, -0- and 2,800,000 shares (liquidation preference of $25.00 per share) issued and outstanding at September 30, 2018 and December 31, 2017, respectively | — | 70,000 | |||||
Series C, 3,000,000 shares (liquidation preference of $25.00 per share) issued and outstanding at September 30, 2018 and December 31, 2017 | 75,000 | 75,000 | |||||
Common stock, par value $0.01 per share, 150,000,000 shares authorized, 107,825,791 and 97,012,543 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 1,078 | 970 | |||||
Additional paid-in capital | 2,003,983 | 1,725,825 | |||||
Cumulative dividends in excess of earnings | (589,785 | ) | (516,691 | ) | |||
Accumulated other comprehensive income | 16,485 | 3,936 | |||||
Total stockholders’ equity | 1,506,761 | 1,359,040 | |||||
Noncontrolling interest | 54,036 | 51,267 | |||||
Total equity | 1,560,797 | 1,410,307 | |||||
Total liabilities and equity | $ | 2,989,275 | $ | 2,680,667 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | |||||||||||||||
Rental income | $ | 75,159 | $ | 65,673 | $ | 217,227 | $ | 186,621 | |||||||
Tenant recoveries | 13,518 | 12,366 | 39,443 | 32,952 | |||||||||||
Other income | 269 | 105 | 1,033 | 244 | |||||||||||
Total revenue | 88,946 | 78,144 | 257,703 | 219,817 | |||||||||||
Expenses | |||||||||||||||
Property | 17,112 | 15,401 | 50,735 | 42,312 | |||||||||||
General and administrative | 8,911 | 8,380 | 25,637 | 25,090 | |||||||||||
Property acquisition costs | — | 1,386 | — | 4,684 | |||||||||||
Depreciation and amortization | 44,355 | 38,186 | 125,221 | 110,286 | |||||||||||
Loss on impairments | — | — | 2,934 | — | |||||||||||
Loss on involuntary conversion | — | — | — | 330 | |||||||||||
Other expenses | 223 | 58 | 864 | 1,502 | |||||||||||
Total expenses | 70,601 | 63,411 | 205,391 | 184,204 | |||||||||||
Other income (expense) | |||||||||||||||
Interest and other income | 3 | 2 | 16 | 10 | |||||||||||
Interest expense | (12,698 | ) | (10,446 | ) | (35,602 | ) | (31,557 | ) | |||||||
Loss on extinguishment of debt | (13 | ) | (13 | ) | (13 | ) | (15 | ) | |||||||
Gain on the sales of rental property, net | 3,239 | 17,563 | 32,276 | 19,225 | |||||||||||
Total other income (expense) | (9,469 | ) | 7,106 | (3,323 | ) | (12,337 | ) | ||||||||
Net income | $ | 8,876 | $ | 21,839 | $ | 48,989 | $ | 23,276 | |||||||
Less: income attributable to noncontrolling interest after preferred stock dividends | 281 | 828 | 1,589 | 673 | |||||||||||
Net income attributable to STAG Industrial, Inc. | $ | 8,595 | $ | 21,011 | $ | 47,400 | $ | 22,603 | |||||||
Less: preferred stock dividends | 1,289 | 2,449 | 6,315 | 7,345 | |||||||||||
Less: redemption of preferred stock | — | — | 2,661 | — | |||||||||||
Less: amount allocated to participating securities | 69 | 84 | 209 | 250 | |||||||||||
Net income attributable to common stockholders | $ | 7,237 | $ | 18,478 | $ | 38,215 | $ | 15,008 | |||||||
Weighted average common shares outstanding — basic | 105,783 | 92,787 | 101,095 | 87,632 | |||||||||||
Weighted average common shares outstanding — diluted | 106,333 | 93,435 | 101,495 | 88,238 | |||||||||||
Net income per share — basic and diluted | |||||||||||||||
Net income per share attributable to common stockholders — basic | $ | 0.07 | $ | 0.20 | $ | 0.38 | $ | 0.17 | |||||||
Net income per share attributable to common stockholders — diluted | $ | 0.07 | $ | 0.20 | $ | 0.38 | $ | 0.17 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 8,876 | $ | 21,839 | $ | 48,989 | $ | 23,276 | |||||||
Other comprehensive income: | |||||||||||||||
Income on interest rate swaps | 2,060 | 598 | 12,811 | 300 | |||||||||||
Other comprehensive income | 2,060 | 598 | 12,811 | 300 | |||||||||||
Comprehensive income | 10,936 | 22,437 | 61,800 | 23,576 | |||||||||||
Income attributable to noncontrolling interest after preferred stock dividends | (281 | ) | (828 | ) | (1,589 | ) | (673 | ) | |||||||
Other comprehensive income attributable to noncontrolling interest | (76 | ) | (26 | ) | (509 | ) | (13 | ) | |||||||
Comprehensive income attributable to STAG Industrial, Inc. | $ | 10,579 | $ | 21,583 | $ | 59,702 | $ | 22,890 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Cumulative Dividends in excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | Noncontrolling Interest - Unit holders in Operating Partnership | Total Equity | |||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | 145,000 | 97,012,543 | $ | 970 | $ | 1,725,825 | $ | (516,691 | ) | $ | 3,936 | $ | 1,359,040 | $ | 51,267 | $ | 1,410,307 | ||||||||||||||||
Cash flow hedging instruments cumulative effect adjustment (Note 2) | — | — | — | — | (258 | ) | 247 | (11 | ) | 11 | — | |||||||||||||||||||||||
Proceeds from sales of common stock | — | 10,387,962 | 104 | 276,353 | — | — | 276,457 | — | 276,457 | |||||||||||||||||||||||||
Redemption of preferred stock | (70,000 | ) | — | — | 5,141 | (5,158 | ) | — | (70,017 | ) | — | (70,017 | ) | |||||||||||||||||||||
Offering costs | — | — | — | (3,129 | ) | — | — | (3,129 | ) | — | (3,129 | ) | ||||||||||||||||||||||
Dividends and distributions, net | — | — | — | — | (114,541 | ) | — | (114,541 | ) | (5,253 | ) | (119,794 | ) | |||||||||||||||||||||
Non-cash compensation activity, net | — | 73,231 | 1 | 1,829 | (537 | ) | — | 1,293 | 3,880 | 5,173 | ||||||||||||||||||||||||
Redemption of common units to common stock | — | 352,055 | 3 | 4,398 | — | — | 4,401 | (4,401 | ) | — | ||||||||||||||||||||||||
Rebalancing of noncontrolling interest | — | — | — | (6,434 | ) | — | — | (6,434 | ) | 6,434 | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 12,302 | 12,302 | 509 | 12,811 | |||||||||||||||||||||||||
Net income | — | — | — | — | 47,400 | — | 47,400 | 1,589 | 48,989 | |||||||||||||||||||||||||
Balance, September 30, 2018 | $ | 75,000 | 107,825,791 | $ | 1,078 | $ | 2,003,983 | $ | (589,785 | ) | $ | 16,485 | $ | 1,506,761 | $ | 54,036 | $ | 1,560,797 | ||||||||||||||||
Nine months ended September 30, 2017 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2016 | $ | 145,000 | 80,352,304 | $ | 804 | $ | 1,293,706 | $ | (410,978 | ) | $ | (1,496 | ) | $ | 1,027,036 | $ | 39,890 | $ | 1,066,926 | |||||||||||||||
Proceeds from sales of common stock | — | 13,165,996 | 132 | 339,492 | — | — | 339,624 | — | 339,624 | |||||||||||||||||||||||||
Offering costs | — | — | — | (4,746 | ) | — | — | (4,746 | ) | — | (4,746 | ) | ||||||||||||||||||||||
Dividends and distributions, net | — | — | — | — | (100,509 | ) | — | (100,509 | ) | (4,932 | ) | (105,441 | ) | |||||||||||||||||||||
Non-cash compensation activity, net | — | 43,492 | — | 2,911 | (194 | ) | — | 2,717 | 3,509 | 6,226 | ||||||||||||||||||||||||
Redemption of common units to common stock | — | 300,991 | 3 | 3,314 | — | — | 3,317 | (3,317 | ) | — | ||||||||||||||||||||||||
Issuance of units | — | — | — | — | — | — | — | 18,558 | 18,558 | |||||||||||||||||||||||||
Rebalancing of noncontrolling interest | — | — | — | 3,632 | — | — | 3,632 | (3,632 | ) | — | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 287 | 287 | 13 | 300 | |||||||||||||||||||||||||
Net income | — | — | — | — | 22,603 | — | 22,603 | 673 | 23,276 | |||||||||||||||||||||||||
Balance, September 30, 2017 | $ | 145,000 | 93,862,783 | $ | 939 | $ | 1,638,309 | $ | (489,078 | ) | $ | (1,209 | ) | $ | 1,293,961 | $ | 50,762 | $ | 1,344,723 |
Nine months ended September 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 48,989 | $ | 23,276 | |||
Adjustment to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 125,221 | 110,286 | |||||
Loss on impairments | 2,934 | — | |||||
Loss on involuntary conversion | — | 330 | |||||
Non-cash portion of interest expense | 1,698 | 1,465 | |||||
Intangible amortization in rental income, net | 3,206 | 3,873 | |||||
Straight-line rent adjustments, net | (8,297 | ) | (4,855 | ) | |||
Dividends on forfeited equity compensation | 15 | 2 | |||||
Loss on extinguishment of debt | 13 | 15 | |||||
Gain on the sales of rental property, net | (32,276 | ) | (19,225 | ) | |||
Non-cash compensation expense | 6,671 | 7,159 | |||||
Change in assets and liabilities: | |||||||
Tenant accounts receivable, net | 501 | (955 | ) | ||||
Prepaid expenses and other assets | (9,597 | ) | (10,479 | ) | |||
Accounts payable, accrued expenses and other liabilities | 9,249 | 5,572 | |||||
Tenant prepaid rent and security deposits | 283 | 3,570 | |||||
Total adjustments | 99,621 | 96,758 | |||||
Net cash provided by operating activities | 148,610 | 120,034 | |||||
Cash flows from investing activities: | |||||||
Acquisitions of land and buildings and improvements | (382,981 | ) | (405,790 | ) | |||
Additions of land and building and improvements | (23,578 | ) | (27,539 | ) | |||
Acquisitions of other assets | (794 | ) | — | ||||
Acquisitions of other liabilities | 242 | — | |||||
Proceeds from sales of rental property, net | 89,407 | 43,454 | |||||
Proceeds from insurance on involuntary conversion | — | 857 | |||||
Acquisition deposits, net | (695 | ) | 685 | ||||
Acquisitions of deferred leasing intangibles | (74,851 | ) | (79,961 | ) | |||
Net cash used in investing activities | (393,250 | ) | (468,294 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from unsecured credit facility | 643,000 | 538,000 | |||||
Repayment of unsecured credit facility | (819,000 | ) | (321,000 | ) | |||
Proceeds from unsecured term loans | 150,000 | — | |||||
Proceeds from unsecured notes | 175,000 | — | |||||
Repayment of mortgage notes | (1,379 | ) | (105,027 | ) | |||
Payment of loan fees and costs | (4,451 | ) | (1,185 | ) | |||
Proceeds from sales of common stock | 276,457 | 339,624 | |||||
Redemption of preferred stock | (70,000 | ) | — | ||||
Offering costs | (3,191 | ) | (4,746 | ) | |||
Dividends and distributions | (117,146 | ) | (103,655 | ) | |||
Repurchase and retirement of share-based compensation | (1,524 | ) | (969 | ) | |||
Net cash provided by financing activities | 227,766 | 341,042 | |||||
Decrease in cash and cash equivalents and restricted cash | (16,874 | ) | (7,218 | ) | |||
Cash and cash equivalents and restricted cash—beginning of period | 28,129 | 21,805 | |||||
Cash and cash equivalents and restricted cash—end of period | $ | 11,255 | $ | 14,587 | |||
Supplemental disclosure: | |||||||
Cash paid for interest, net of capitalized interest | $ | 31,875 | $ | 30,476 | |||
Supplemental schedule of non-cash investing and financing activities | |||||||
Issuance of units for acquisitions of land and building and improvements and deferred leasing intangibles | $ | — | $ | 18,558 | |||
Acquisitions of land and buildings and improvements | $ | (232 | ) | $ | (17,304 | ) | |
Acquisitions of deferred leasing intangibles | $ | (48 | ) | $ | (2,064 | ) | |
Partial disposal of building due to involuntary conversion of building | $ | — | $ | 363 | |||
Investing other receivables due to involuntary conversion of building | $ | — | $ | (363 | ) | ||
Change in additions of land, building, and improvements included in accounts payable, accrued expenses, and other liabilities | $ | (1,475 | ) | $ | (13,201 | ) | |
Additions to building and other capital improvements from non-cash compensation | $ | (20 | ) | $ | (24 | ) | |
Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses, and other liabilities | $ | 48 | $ | 30 | |||
Reclassification of preferred stock called for redemption to liability | $ | 70,000 | $ | — | |||
Dividends and distributions accrued | $ | 14,530 | $ | 11,516 |
Reconciliation of cash and cash equivalents and restricted cash (in thousands) | September 30, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 6,024 | $ | 24,562 | ||||
Restricted cash | 5,231 | 3,567 | ||||||
Total cash and cash equivalents and restricted cash | $ | 11,255 | $ | 28,129 |
Rental Property (in thousands) | September 30, 2018 | December 31, 2017 | ||||||
Land | $ | 355,590 | $ | 321,560 | ||||
Buildings, net of accumulated depreciation of $190,538 and $160,281, respectively | 2,006,013 | 1,756,579 | ||||||
Tenant improvements, net of accumulated depreciation of $35,495 and $32,714, respectively | 30,577 | 30,138 | ||||||
Building and land improvements, net of accumulated depreciation of $75,754 and $56,062, respectively | 160,496 | 143,170 | ||||||
Construction in progress | 5,669 | 2,877 | ||||||
Deferred leasing intangibles, net of accumulated amortization of $237,892 and $280,642, respectively | 327,734 | 313,253 | ||||||
Total rental property, net | $ | 2,886,079 | $ | 2,567,577 |
Market (1) | Date Acquired | Square Feet | Buildings | Purchase Price (in thousands) | ||||||||
Greenville/Spartanburg, SC | January 11, 2018 | 203,000 | 1 | $ | 10,755 | |||||||
Minneapolis/St Paul, MN | January 26, 2018 | 145,351 | 1 | 13,538 | ||||||||
Philadelphia, PA | February 1, 2018 | 278,582 | 1 | 18,277 | ||||||||
Houston, TX | February 22, 2018 | 242,225 | 2 | 22,478 | ||||||||
Greenville/Spartanburg, SC | March 30, 2018 | 222,710 | 1 | 13,773 | ||||||||
Three months ended March 31, 2018 | 1,091,868 | 6 | 78,821 | |||||||||
Chicago, IL | April 23, 2018 | 169,311 | 2 | 10,975 | ||||||||
Milwaukee/Madison, WI | April 26, 2018 | 53,680 | 1 | 4,316 | ||||||||
Pittsburgh, PA | April 30, 2018 | 175,000 | 1 | 15,380 | ||||||||
Detroit, MI | May 9, 2018 | 274,500 | 1 | 19,328 | ||||||||
Minneapolis/St Paul, MN | May 15, 2018 | 509,910 | 2 | 26,983 | ||||||||
Cincinnati/Dayton, OH | May 23, 2018 | 158,500 | 1 | 7,317 | ||||||||
Baton Rouge, LA | May 31, 2018 | 279,236 | 1 | 21,379 | ||||||||
Las Vegas, NV | June 12, 2018 | 122,472 | 1 | 17,920 | ||||||||
Greenville/Spartanburg, SC | June 15, 2018 | 131,805 | 1 | 5,621 | ||||||||
Denver, CO | June 18, 2018 | 64,750 | 1 | 7,044 | ||||||||
Cincinnati/Dayton, OH | June 25, 2018 | 465,136 | 1 | 16,421 | ||||||||
Charlotte, NC | June 29, 2018 | 69,200 | 1 | 5,446 | ||||||||
Houston, TX | June 29, 2018 | 252,662 | 1 | 27,170 | ||||||||
Three months ended June 30, 2018 | 2,726,162 | 15 | 185,300 | |||||||||
Knoxville, TN | July 10, 2018 | 106,000 | 1 | 6,477 | ||||||||
Pittsburgh, PA | August 2, 2018 | 265,568 | 1 | 19,186 | ||||||||
Raleigh/Durham, NC | August 2, 2018 | 365,000 | 1 | 21,067 | ||||||||
Detroit, MI | August 6, 2018 | 439,150 | 1 | 21,077 | ||||||||
Des Moines, IA | August 8, 2018 | 121,922 | 1 | 6,053 | ||||||||
McAllen/Edinburg/Pharr, TX | August 9, 2018 | 270,084 | 1 | 18,523 | ||||||||
Pittsburgh, PA | August 15, 2018 | 200,500 | 1 | 11,327 | ||||||||
Minneapolis/St Paul, MN | August 24, 2018 | 120,606 | 1 | 8,422 | ||||||||
Milwaukee/Madison, WI | September 28, 2018 | 100,800 | 1 | 7,484 | ||||||||
Milwaukee/Madison, WI | September 28, 2018 | 174,633 | 2 | 13,288 | ||||||||
Chicago, IL | September 28, 2018 | 105,637 | 1 | 6,368 | ||||||||
Indianapolis, IN | September 28, 2018 | 478,721 | 1 | 29,085 | ||||||||
Augusta/Richmond County, GA | September 28, 2018 | 203,726 | 1 | 9,379 | ||||||||
Charlotte, NC | September 28, 2018 | 301,000 | 1 | 16,807 | ||||||||
Three months ended September 30, 2018 | 3,253,347 | 15 | 194,543 | |||||||||
Nine months ended September 30, 2018 | 7,071,377 | 36 | $ | 458,664 |
Acquired Assets and Liabilities | Purchase Price (in thousands) | Weighted Average Amortization Period (years) of Intangibles at Acquisition | ||||
Land | $ | 39,340 | N/A | |||
Buildings | 317,293 | N/A | ||||
Tenant improvements | 4,849 | N/A | ||||
Building and land improvements | 21,731 | N/A | ||||
Deferred leasing intangibles - In-place leases | 52,276 | 8.7 | ||||
Deferred leasing intangibles - Tenant relationships | 21,861 | 11.8 | ||||
Deferred leasing intangibles - Above market leases | 4,062 | 8.2 | ||||
Deferred leasing intangibles - Below market leases | (3,122 | ) | 6.7 | |||
Deferred leasing intangibles - Above market ground leases | (178 | ) | 48.1 | |||
Other assets | 794 | N/A | ||||
Other liabilities | (242 | ) | N/A | |||
Total purchase price | $ | 458,664 |
Results of Operations (in thousands) | Three months ended September 30, 2018 | Nine months ended September 30, 2018 | ||||||
Total revenue | $ | 7,122 | $ | 11,156 | ||||
Net income | $ | 1,556 | $ | 1,642 |
Market (1) | Buildings | Event or Change in Circumstance Leading to Impairment Evaluation(2) | Valuation technique utilized to estimate fair value | Fair Value(3) | Loss on Impairments | |||||||||
(in thousands) | ||||||||||||||
Buena Vista, VA(4) | 1 | Change in estimated hold period | (5) | Discounted cash flows | (6) | |||||||||
Sergeant Bluff, IA(4) | 1 | Change in estimated hold period | (5) | Discounted cash flows | (6) | |||||||||
Three months ended March 31, 2018 | $ | 3,176 | $ | 2,934 | ||||||||||
Nine months ended September 30, 2018 | $ | 3,176 | $ | 2,934 |
(1) | As defined by CoStar Realty Information Inc. |
(2) | The Company tested the asset group for impairment utilizing a probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows. |
(3) | The estimated fair value of the assets held and used is based on Level 3 inputs and is a non-recurring fair value measurement. Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
(4) | These buildings do not have markets as defined by CoStar Realty Information Inc. |
(5) | This property was sold during the nine months ended September 30, 2018. |
(6) | Level 3 inputs used to determine fair value for the impaired assets held and used for the three months ended March 31, 2018: discount rates ranged from 11.0% to 14.5% and exit capitalization rates ranged from 11.0% to 13.0%. |
September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||
Deferred Leasing Intangibles (in thousands) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
Above market leases | $ | 70,454 | $ | (31,663 | ) | $ | 38,791 | $ | 78,558 | $ | (36,810 | ) | $ | 41,748 | ||||||||||
Other intangible lease assets | 495,172 | (206,229 | ) | 288,943 | 515,337 | (243,832 | ) | 271,505 | ||||||||||||||||
Total deferred leasing intangible assets | $ | 565,626 | $ | (237,892 | ) | $ | 327,734 | $ | 593,895 | $ | (280,642 | ) | $ | 313,253 | ||||||||||
Below market leases | $ | 33,751 | $ | (13,043 | ) | $ | 20,708 | $ | 34,776 | $ | (13,555 | ) | $ | 21,221 | ||||||||||
Total deferred leasing intangible liabilities | $ | 33,751 | $ | (13,043 | ) | $ | 20,708 | $ | 34,776 | $ | (13,555 | ) | $ | 21,221 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Deferred Leasing Intangibles Amortization (in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net decrease to rental income related to above and below market lease amortization | $ | 1,150 | $ | 1,318 | $ | 3,206 | $ | 3,873 | ||||||||
Amortization expense related to other intangible lease assets | $ | 20,361 | $ | 17,934 | $ | 56,698 | $ | 53,747 |
Year | Amortization Expense Related to Other Intangible Lease Assets (in thousands) | Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands) | ||||||
Remainder of 2018 | $ | 17,263 | $ | 927 | ||||
2019 | $ | 57,841 | $ | 3,926 | ||||
2020 | $ | 47,750 | $ | 3,546 | ||||
2021 | $ | 37,229 | $ | 2,163 | ||||
2022 | $ | 29,690 | $ | 1,154 |
Loan | Principal Outstanding as of September 30, 2018 (in thousands) | Principal Outstanding as of December 31, 2017 (in thousands) | Interest Rate (1) | Maturity Date | Prepayment Terms (2) | ||||||||||
Unsecured credit facility: | |||||||||||||||
Unsecured Credit Facility (3) | $ | 95,000 | $ | 271,000 | L + 1.05% | Jan-15-2023 | i | ||||||||
Total unsecured credit facility | 95,000 | 271,000 | |||||||||||||
Unsecured term loans: | |||||||||||||||
Unsecured Term Loan C | 150,000 | 150,000 | L + 1.30% | Sep-29-2020 | i | ||||||||||
Unsecured Term Loan B | 150,000 | 150,000 | L + 1.30% | Mar-21-2021 | i | ||||||||||
Unsecured Term Loan A | 150,000 | 150,000 | L + 1.30% | Mar-31-2022 | i | ||||||||||
Unsecured Term Loan D | 150,000 | — | L + 1.30% | Jan-04-2023 | i | ||||||||||
Unsecured Term Loan E (4) | — | — | L + 1.20% | Jan-15-2024 | i | ||||||||||
Total unsecured term loans | 600,000 | 450,000 | |||||||||||||
Less: Total unamortized deferred financing fees and debt issuance costs | (3,915 | ) | (3,735 | ) | |||||||||||
Total carrying value unsecured term loans, net | 596,085 | 446,265 | |||||||||||||
Unsecured notes: | |||||||||||||||
Series F Unsecured Notes | 100,000 | 100,000 | 3.98 | % | Jan-05-2023 | ii | |||||||||
Series A Unsecured Notes | 50,000 | 50,000 | 4.98 | % | Oct-1-2024 | ii | |||||||||
Series D Unsecured Notes | 100,000 | 100,000 | 4.32 | % | Feb-20-2025 | ii | |||||||||
Series G Unsecured Notes | 75,000 | — | 4.10 | % | Jun-13-2025 | ii | |||||||||
Series B Unsecured Notes | 50,000 | 50,000 | 4.98 | % | Jul-1-2026 | ii | |||||||||
Series C Unsecured Notes | 80,000 | 80,000 | 4.42 | % | Dec-30-2026 | ii | |||||||||
Series E Unsecured Notes | 20,000 | 20,000 | 4.42 | % | Feb-20-2027 | ii | |||||||||
Series H Unsecured Notes | 100,000 | — | 4.27 | % | Jun-13-2028 | ii | |||||||||
Total unsecured notes | 575,000 | 400,000 | |||||||||||||
Less: Total unamortized deferred financing fees and debt issuance costs | (2,611 | ) | (1,766 | ) | |||||||||||
Total carrying value unsecured notes, net | 572,389 | 398,234 | |||||||||||||
Mortgage notes (secured debt): | |||||||||||||||
Wells Fargo Bank, National Association CMBS Loan | 53,652 | 54,949 | 4.31 | % | Dec-1-2022 | iii | |||||||||
Thrivent Financial for Lutherans | 3,824 | 3,906 | 4.78 | % | Dec-15-2023 | iv | |||||||||
Total mortgage notes | 57,476 | 58,855 | |||||||||||||
Add: Total unamortized fair market value premiums | 52 | 61 | |||||||||||||
Less: Total unamortized deferred financing fees and debt issuance costs | (535 | ) | (634 | ) | |||||||||||
Total carrying value mortgage notes, net | 56,993 | 58,282 | |||||||||||||
Total / weighted average interest rate (5) | $ | 1,320,467 | $ | 1,173,781 | 3.69 | % |
(1) | Interest rate as of September 30, 2018. At September 30, 2018, the one-month LIBOR (“L”) was 2.26056%. The interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the Company's unsecured credit facility and unsecured term loans is based on the Company's consolidated leverage ratio, as defined in the respective loan agreements. |
(2) | Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date, however can be defeased beginning January 1, 2016; and (iv) pre-payable without penalty three months prior to the maturity date. |
(3) | The capacity of the unsecured credit facility is $500.0 million. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $3.4 million and $1.5 million is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, respectively. |
(4) | Capacity of $175.0 million, which the Company has until July 25, 2019 to draw. |
(5) | The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $600.0 million of debt that was in effect as of September 30, 2018, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Costs Included in Interest Expense (in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Amortization of deferred financing fees and debt issuance costs and fair market value premiums | $ | 617 | $ | 546 | $ | 1,698 | $ | 1,553 | ||||||||
Facility fees and unused fees | $ | 275 | $ | 286 | $ | 928 | $ | 839 |
September 30, 2018 | December 31, 2017 | |||||||||||||||
Principal Outstanding | Fair Value | Principal Outstanding | Fair Value | |||||||||||||
Unsecured credit facility | $ | 95,000 | $ | 95,000 | $ | 271,000 | $ | 271,528 | ||||||||
Unsecured term loans | 600,000 | 607,663 | 450,000 | 451,463 | ||||||||||||
Unsecured notes | 575,000 | 569,493 | 400,000 | 415,599 | ||||||||||||
Mortgage notes | 57,476 | 57,608 | 58,855 | 59,769 | ||||||||||||
Total principal amount | 1,327,476 | $ | 1,329,764 | 1,179,855 | $ | 1,198,359 | ||||||||||
Add: Total unamortized fair market value premiums | 52 | 61 | ||||||||||||||
Less: Total unamortized deferred financing fees and debt issuance costs | (7,061 | ) | (6,135 | ) | ||||||||||||
Total carrying value | $ | 1,320,467 | $ | 1,173,781 |
Interest Rate Derivative Counterparty | Trade Date | Effective Date | Notional Amount (in thousands) | Fair Value (in thousands) | Pay Fixed Interest Rate | Receive Variable Interest Rate | Maturity Date | ||||||||||||
Regions Bank | Mar-01-2013 | Mar-01-2013 | $ | 25,000 | $ | 471 | 1.3300 | % | One-month L | Feb-14-2020 | |||||||||
Capital One, N.A. | Jun-13-2013 | Jul-01-2013 | $ | 50,000 | $ | 703 | 1.6810 | % | One-month L | Feb-14-2020 | |||||||||
Capital One, N.A. | Jun-13-2013 | Aug-01-2013 | $ | 25,000 | $ | 344 | 1.7030 | % | One-month L | Feb-14-2020 | |||||||||
Regions Bank | Sep-30-2013 | Feb-03-2014 | $ | 25,000 | $ | 245 | 1.9925 | % | One-month L | Feb-14-2020 | |||||||||
The Toronto-Dominion Bank | Oct-14-2015 | Sep-29-2016 | $ | 25,000 | $ | 700 | 1.3830 | % | One-month L | Sep-29-2020 | |||||||||
PNC Bank, N.A. | Oct-14-2015 | Sep-29-2016 | $ | 50,000 | $ | 1,391 | 1.3906 | % | One-month L | Sep-29-2020 | |||||||||
Regions Bank | Oct-14-2015 | Sep-29-2016 | $ | 35,000 | $ | 978 | 1.3858 | % | One-month L | Sep-29-2020 | |||||||||
U.S. Bank, N.A. | Oct-14-2015 | Sep-29-2016 | $ | 25,000 | $ | 695 | 1.3950 | % | One-month L | Sep-29-2020 | |||||||||
Capital One, N.A. | Oct-14-2015 | Sep-29-2016 | $ | 15,000 | $ | 417 | 1.3950 | % | One-month L | Sep-29-2020 | |||||||||
Royal Bank of Canada | Jan-08-2015 | Mar-20-2015 | $ | 25,000 | $ | 684 | 1.7090 | % | One-month L | Mar-21-2021 | |||||||||
The Toronto-Dominion Bank | Jan-08-2015 | Mar-20-2015 | $ | 25,000 | $ | 682 | 1.7105 | % | One-month L | Mar-21-2021 | |||||||||
The Toronto-Dominion Bank | Jan-08-2015 | Sep-10-2017 | $ | 100,000 | $ | 1,488 | 2.2255 | % | One-month L | Mar-21-2021 | |||||||||
Wells Fargo, N.A. | Jan-08-2015 | Mar-20-2015 | $ | 25,000 | $ | 886 | 1.8280 | % | One-month L | Mar-31-2022 | |||||||||
The Toronto-Dominion Bank | Jan-08-2015 | Feb-14-2020 | $ | 25,000 | $ | 271 | 2.4535 | % | One-month L | Mar-31-2022 | |||||||||
Regions Bank | Jan-08-2015 | Feb-14-2020 | $ | 50,000 | $ | 520 | 2.4750 | % | One-month L | Mar-31-2022 | |||||||||
Capital One, N.A. | Jan-08-2015 | Feb-14-2020 | $ | 50,000 | $ | 467 | 2.5300 | % | One-month L | Mar-31-2022 | |||||||||
The Toronto-Dominion Bank | Jul-20-2017 | Oct-30-2017 | $ | 25,000 | $ | 1,054 | 1.8485 | % | One-month L | Jan-04-2023 | |||||||||
Royal Bank of Canada | Jul-20-2017 | Oct-30-2017 | $ | 25,000 | $ | 1,054 | 1.8505 | % | One-month L | Jan-04-2023 | |||||||||
Wells Fargo, N.A. | Jul-20-2017 | Oct-30-2017 | $ | 25,000 | $ | 1,055 | 1.8505 | % | One-month L | Jan-04-2023 | |||||||||
PNC Bank, N.A. | Jul-20-2017 | Oct-30-2017 | $ | 25,000 | $ | 1,052 | 1.8485 | % | One-month L | Jan-04-2023 | |||||||||
PNC Bank, N.A. | Jul-20-2017 | Oct-30-2017 | $ | 50,000 | $ | 2,105 | 1.8475 | % | One-month L | Jan-04-2023 | |||||||||
The Toronto-Dominion Bank | Jul-24-2018 | Jul-26-2019 | $ | 50,000 | $ | 111 | 2.9180 | % | One-month L | Jan-12-2024 | |||||||||
PNC Bank, N.A. | Jul-24-2018 | Jul-26-2019 | $ | 50,000 | $ | 106 | 2.9190 | % | One-month L | Jan-12-2024 | |||||||||
Bank of Montreal | Jul-24-2018 | Jul-26-2019 | $ | 50,000 | $ | 113 | 2.9190 | % | One-month L | Jan-12-2024 | |||||||||
U.S. Bank, N.A. | Jul-24-2018 | Jul-26-2019 | $ | 25,000 | $ | 57 | 2.9190 | % | One-month L | Jan-12-2024 |
Balance Sheet Line Item (in thousands) | Notional Amount September 30, 2018 | Fair Value September 30, 2018 | Notional Amount December 31, 2017 | Fair Value December 31, 2017 | ||||||||||||
Interest rate swaps-Asset | $ | 900,000 | $ | 17,649 | $ | 475,000 | $ | 6,079 | ||||||||
Interest rate swaps-Liability | $ | — | $ | — | $ | 250,000 | $ | (1,217 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Effect of Cash Flow Hedge Accounting (in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Income (loss) recognized in accumulated other comprehensive income on interest rate swaps | $ | 2,572 | $ | 316 | $ | 13,349 | $ | (1,126 | ) | |||||||
Income (loss) reclassified from accumulated other comprehensive income into income (loss) as interest expense | $ | 512 | $ | (282 | ) | $ | 538 | $ | (1,426 | ) | ||||||
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ | 12,698 | $ | 10,446 | $ | 35,602 | $ | 31,557 |
Fair Value Measurements as of September 30, 2018 Using | ||||||||||||||||
Balance Sheet Line Item (in thousands) | Fair Value September 30, 2018 | Level 1 | Level 2 | Level 3 | ||||||||||||
Interest rate swaps-Asset | $ | 17,649 | $ | — | $ | 17,649 | $ | — | ||||||||
Interest rate swaps-Liability | $ | — | $ | — | $ | — | $ | — |
Fair Value Measurements as of December 31, 2017 Using | ||||||||||||||||
Balance Sheet Line Item (in thousands) | Fair Value December 31, 2017 | Level 1 | Level 2 | Level 3 | ||||||||||||
Interest rate swaps-Asset | $ | 6,079 | $ | — | $ | 6,079 | $ | — | ||||||||
Interest rate swaps-Liability | $ | (1,217 | ) | $ | — | $ | (1,217 | ) | $ | — |
Preferred Stock Issuances | Issuance Date | Number of Shares | Liquidation Value Per Share | Interest Rate | ||||||||
6.875% Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”) | March 17, 2016 | 3,000,000 | $ | 25.00 | 6.875 | % |
Quarter Ended 2018 | Declaration Date | Series B Preferred Stock Per Share | Series C Preferred Stock Per Share | Payment Date | ||||||||
September 30 | July 11, 2018 | $ | 0.0460069 | (1) | $ | 0.4296875 | October 1, 2018 | |||||
June 30 | April 10, 2018 | 0.4140625 | 0.4296875 | July 2, 2018 | ||||||||
March 31 | February 14, 2018 | 0.4140625 | 0.4296875 | April 2, 2018 | ||||||||
Total | $ | 0.8741319 | $ | 1.2890625 |
(1) | On June 11, 2018, the Company gave notice to redeem all 2,800,000 issued and outstanding shares of the Series B Preferred Stock. On July 11, 2018, the Company redeemed all of the Series B Preferred Stock at a cash redemption price of $25.00 per share, plus accrued and unpaid dividends to but excluding the redemption date, without interest. |
Quarter Ended 2017 | Declaration Date | Series B Preferred Stock Per Share | Series C Preferred Stock Per Share | Payment Date | ||||||||
December 31 | November 2, 2017 | $ | 0.4140625 | $ | 0.4296875 | December 29, 2017 | ||||||
September 30 | July 31, 2017 | 0.4140625 | 0.4296875 | September 29, 2017 | ||||||||
June 30 | May 1, 2017 | 0.4140625 | 0.4296875 | June 30, 2017 | ||||||||
March 31 | February 15, 2017 | 0.4140625 | 0.4296875 | March 31, 2017 | ||||||||
Total | $ | 1.6562500 | $ | 1.7187500 |
ATM Common Stock Offering Program | Date | Maximum Aggregate Offering Price (in thousands) | Aggregate Common Stock Available as of September 30, 2018 (in thousands) | |||||||
2017 $500 million ATM | November 13, 2017 | $ | 500,000 | $ | 213,217 |
Nine months ended September 30, 2018 | |||||||||||||||||||
ATM Common Stock Offering Program | Shares Sold | Weighted Average Price Per Share | Gross Proceeds | Sales Agents’ Fee | Net Proceeds | ||||||||||||||
2017 $500 million ATM | 10,387,962 | $ | 26.61 | $ | 276,457 | $ | 2,888 | $ | 273,569 | ||||||||||
Total/weighted average | 10,387,962 | $ | 26.61 | $ | 276,457 | $ | 2,888 | $ | 273,569 |
Year ended December 31, 2017 | |||||||||||||||||||
ATM Common Stock Offering Program | Shares Sold | Weighted Average Price Per Share | Gross Proceeds | Sales Agents’ Fee | Net Proceeds | ||||||||||||||
2017 $500 million ATM | 363,843 | $ | 28.38 | $ | 10,326 | $ | 129 | $ | 10,197 | ||||||||||
2017 $300 million ATM(1) | 11,098,748 | $ | 27.03 | 300,000 | 3,637 | 296,363 | |||||||||||||
2016 $228 million ATM(1) | 4,799,784 | $ | 24.42 | 117,216 | 1,604 | 115,612 | |||||||||||||
Total/weighted average | 16,262,375 | $ | 26.29 | $ | 427,542 | $ | 5,370 | $ | 422,172 |
(1) | These programs ended before December 31, 2017. |
Month Ended 2018 | Declaration Date | Record Date | Per Share | Payment Date | ||||||
September 30 | July 11, 2018 | September 28, 2018 | $ | 0.118333 | October 15, 2018 | |||||
August 31 | July 11, 2018 | August 31, 2018 | 0.118333 | September 17, 2018 | ||||||
July 31 | July 11, 2018 | July 31, 2018 | 0.118333 | August 15, 2018 | ||||||
June 30 | April 10, 2018 | June 29, 2018 | 0.118333 | July 16, 2018 | ||||||
May 31 | April 10, 2018 | May 31, 2018 | 0.118333 | June 15, 2018 | ||||||
April 30 | April 10, 2018 | April 30, 2018 | 0.118333 | May 15, 2018 | ||||||
March 31 | November 2, 2017 | March 29, 2018 | 0.118333 | April 16, 2018 | ||||||
February 28 | November 2, 2017 | February 28, 2018 | 0.118333 | March 15, 2018 | ||||||
January 31 | November 2, 2017 | January 31, 2018 | 0.118333 | February 15, 2018 | ||||||
Total | $ | 1.064997 |
Month Ended 2017 | Declaration Date | Record Date | Per Share | Payment Date | ||||||
December 31 | July 31, 2017 | December 29, 2017 | $ | 0.117500 | January 16, 2018 | |||||
November 30 | July 31, 2017 | November 30, 2017 | 0.117500 | December 15, 2017 | ||||||
October 31 | July 31, 2017 | October 31, 2017 | 0.117500 | November 15, 2017 | ||||||
September 30 | May 1, 2017 | September 29, 2017 | 0.117500 | October 16, 2017 | ||||||
August 31 | May 1, 2017 | August 31, 2017 | 0.117500 | September 15, 2017 | ||||||
July 31 | May 1, 2017 | July 31, 2017 | 0.117500 | August 15, 2017 | ||||||
June 30 | February 15, 2017 | June 30, 2017 | 0.116667 | July 17, 2017 | ||||||
May 31 | February 15, 2017 | May 31, 2017 | 0.116667 | June 15, 2017 | ||||||
April 30 | February 15, 2017 | April 28, 2017 | 0.116667 | May 15, 2017 | ||||||
March 31 | November 2, 2016 | March 31, 2017 | 0.116667 | April 17, 2017 | ||||||
February 28 | November 2, 2016 | February 28, 2017 | 0.116667 | March 15, 2017 | ||||||
January 31 | November 2, 2016 | January 31, 2017 | 0.116667 | February 15, 2017 | ||||||
Total | $ | 1.405002 |
Unvested Restricted Shares of Common Stock | Shares | |||
Balance at December 31, 2016 | 272,337 | |||
Granted | 75,001 | (1) | ||
Vested | (109,209 | ) | (2) | |
Forfeited | (922 | ) | ||
Balance at December 31, 2017 | 237,207 | |||
Granted | 76,659 | (1) | ||
Vested | (112,405 | ) | (2) | |
Forfeited | (10,630 | ) | ||
Balance at September 30, 2018 | 190,831 |
(1) | The fair value per share on the grant date of January 5, 2018 and January 6, 2017 was $26.40 and $24.41, respectively. |
(2) | The Company repurchased and retired 41,975 and 40,836 restricted shares of common stock that vested during the nine months ended September 30, 2018 and the year ended December 31, 2017, respectively. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Vested restricted shares of common stock | — | — | 112,405 | 109,209 | ||||||||||||
Fair value of vested restricted shares of common stock (in thousands) | $ | — | $ | — | $ | 3,002 | $ | 2,591 |
LTIP Units | Other Common Units | Total Noncontrolling Common Units | Noncontrolling Interest | ||||||||
Balance at December 31, 2016 | 1,576,516 | 2,057,365 | 3,633,881 | 4.3 | % | ||||||
Granted/Issued | 126,239 | 687,827 | 814,066 | N/A | |||||||
Forfeited | — | — | — | N/A | |||||||
Conversions from LTIP units to Other Common Units | (245,685 | ) | 245,685 | — | N/A | ||||||
Redemptions from Other Common Units to common stock | — | (351,260 | ) | (351,260 | ) | N/A | |||||
Balance at December 31, 2017 | 1,457,070 | 2,639,617 | 4,096,687 | 4.1 | % | ||||||
Granted/Issued | 324,802 | — | 324,802 | N/A | |||||||
Forfeited | — | — | — | N/A | |||||||
Conversions from LTIP units to Other Common Units | (165,672 | ) | 165,672 | — | N/A | ||||||
Redemptions from Other Common Units to common stock | — | (352,055 | ) | (352,055 | ) | N/A | |||||
Balance at September 30, 2018 | 1,616,200 | 2,453,234 | 4,069,434 | 3.6 | % |
LTIP Units | Assumptions | |||||||
Grant date | March 12, 2018 | January 5, 2018 | ||||||
Expected term (years) | 10 | 10 | ||||||
Expected volatility | 22.0 | % | 22.0 | % | ||||
Expected dividend yield | 6.0 | % | 6.0 | % | ||||
Risk-free interest rate | 2.46 | % | 2.09 | % | ||||
Fair value of LTIP units at issuance (in thousands) | $ | 90 | $ | 3,447 | ||||
LTIP units at issuance | 3,930 | 137,616 | ||||||
Fair value unit price per LTIP unit at issuance | $ | 22.90 | $ | 25.05 |
Unvested LTIP Units | LTIP Units | ||
Balance at December 31, 2016 | 403,423 | ||
Granted | 126,239 | ||
Vested | (229,355 | ) | |
Forfeited | — | ||
Balance at December 31, 2017 | 300,307 | ||
Granted | 324,802 | ||
Vested | (342,940 | ) | |
Forfeited | — | ||
Balance at September 30, 2018 | 282,169 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Vested LTIP units | 30,949 | 44,942 | 342,940 | 157,816 | ||||||||||||
Fair value of vested LTIP units (in thousands) | $ | 851 | $ | 1,235 | $ | 9,002 | $ | 4,146 |
Performance Units | Assumptions | |||
Grant date | January 5, 2018 | |||
Expected volatility | 22.0 | % | ||
Expected dividend yield | 6.0 | % | ||
Risk-free interest rate | 2.09 | % | ||
Fair value of performance units grant (in thousands) | $ | 5,456 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Non-Cash Compensation Expense (in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Restricted shares of common stock | $ | 406 | $ | 594 | $ | 1,269 | $ | 1,776 | ||||||||
LTIP units | 893 | 1,167 | 2,654 | 3,508 | ||||||||||||
Performance-based Compensation Plans | 838 | 536 | 2,463 | 1,610 | ||||||||||||
Director compensation (1) | 99 | 87 | 285 | 265 | ||||||||||||
Total non-cash compensation expense | $ | 2,236 | $ | 2,384 | $ | 6,671 | $ | 7,159 |
(1) | All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and nine months ended September 30, 2018 and 2017. The number of shares of common stock granted is calculated based on the trailing 10 days average common stock price ending on the third business day preceding the grant date. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
Earnings Per Share (in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Numerator | |||||||||||||||
Net income | $ | 8,876 | $ | 21,839 | $ | 48,989 | $ | 23,276 | |||||||
Less: preferred stock dividends | 1,289 | 2,449 | 6,315 | 7,345 | |||||||||||
Less: redemption of preferred stock | — | — | 2,661 | — | |||||||||||
Less: amount allocated to participating securities | 69 | 84 | 209 | 250 | |||||||||||
Less: income attributable to noncontrolling interest after preferred stock dividends | 281 | 828 | 1,589 | 673 | |||||||||||
Net income attributable to common stockholders | $ | 7,237 | $ | 18,478 | $ | 38,215 | $ | 15,008 | |||||||
Denominator | |||||||||||||||
Weighted average common shares outstanding — basic | 105,783 | 92,787 | 101,095 | 87,632 | |||||||||||
Effect of dilutive securities(1) | |||||||||||||||
Share-based compensation | 550 | 648 | 400 | 606 | |||||||||||
Weighted average common shares outstanding — diluted | 106,333 | 93,435 | 101,495 | 88,238 | |||||||||||
Net income per share — basic and diluted | |||||||||||||||
Net income per share attributable to common stockholders — basic | $ | 0.07 | $ | 0.20 | $ | 0.38 | $ | 0.17 | |||||||
Net income per share attributable to common stockholders — diluted | $ | 0.07 | $ | 0.20 | $ | 0.38 | $ | 0.17 |
(1) | During the three and nine months ended September 30, 2018 and 2017, there were approximately 193, 197, 237 and 238, respectively, unvested restricted shares of common stock on a weighted average basis that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period. |
• | the factors included in our Annual Report on Form 10-K for the year ended December 31, 2017, as updated elsewhere in this report, including those set forth under the headings “Business,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations;” |
• | our ability to raise equity capital on attractive terms; |
• | the competitive environment in which we operate; |
• | real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets; |
• | decreased rental rates or increased vacancy rates; |
• | potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants; |
• | acquisition risks, including our ability to identify and complete accretive acquisitions and/or failure of such acquisitions to perform in accordance with projections; |
• | the timing of acquisitions and dispositions; |
• | potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism; |
• | international, national, regional and local economic conditions; |
• | the general level of interest rates and currencies; |
• | potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate and zoning laws or real estate investment trust (“REIT”) or corporate income tax laws, and potential increases in real property tax rates; |
• | financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; |
• | credit risk in the event of non-performance by the counterparties to the interest rate swaps and revolving and unfunded debt; |
• | lack of or insufficient amounts of insurance; |
• | our ability to maintain our qualification as a REIT; |
• | our ability to retain key personnel; |
• | litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and |
• | possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. |
• | the rise of e-commerce (as compared to the traditional retail store distribution model) and the concomitant demand by e-commerce industry participants for well-located, functional distribution space; |
• | the increasing attractiveness of the U.S. as a manufacturing and distribution location because of the size of the U.S. consumer market, an increase in overseas labor costs and the overall cost of supplying and shipping goods (i.e. the shortening and fattening of the supply chain); and |
• | the overall quality of the transportation infrastructure in the U.S. |
Operating Portfolio | Square Feet | Cash Basis Rent Per Square Foot | SL Rent Per Square Foot | Total Costs Per Square Foot(1) | Cash Rent Change(2) | SL Rent Change(3) | Weighted Average Lease Term(4) (years) | Rental Concessions per Square Foot(5) | ||||||||||||||||||||
Three months ended September 30, 2018 | ||||||||||||||||||||||||||||
New Leases(6) | 544,253 | $ | 4.26 | $ | 4.41 | $ | 2.61 | (4.1 | )% | (0.4 | )% | 5.6 | $ | 0.54 | ||||||||||||||
Renewal Leases(7) | 523,306 | 4.37 | 4.52 | 0.56 | 13.9 | % | 19.5 | % | 3.6 | — | ||||||||||||||||||
Total/weighted average | 1,067,559 | $ | 4.31 | $ | 4.46 | $ | 1.60 | 5.9 | % | 10.6 | % | 4.6 | $ | 0.27 | ||||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||||||||||||||
New Leases(6) | 1,756,935 | $ | 3.73 | $ | 3.87 | $ | 2.33 | 9.9 | % | 17.7 | % | 6.8 | $ | 0.75 | ||||||||||||||
Renewal Leases(7) | 5,254,633 | 3.98 | 4.11 | 0.62 | 7.4 | % | 14.1 | % | 4.6 | 0.07 | ||||||||||||||||||
Total/weighted average | 7,011,568 | $ | 3.91 | $ | 4.05 | $ | 1.05 | 7.9 | % | 14.7 | % | 5.1 | $ | 0.24 |
(1) | We define Total Costs as the costs for improvements of vacant and renewal spaces, as well as the legal fees and commissions for leasing transactions. Total Costs per square foot represent the total costs expected to be incurred on the leases signed during the period and do not reflect actual expenditures for the period. |
(2) | We define Cash Rent Change as the percentage change in the base rent of the lease executed during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio. The calculation compares the first base rent payment due after the lease commencement date compared to the base rent of the last monthly payment due prior to the termination of the lease, excluding holdover rent. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses. We define a Comparable Lease as a lease in the same space with a similar lease structure as compared to the previous in-place lease, excluding new leases for space that was not occupied under our ownership. This resulted in 192,707 and 1,532,343 square feet to be deemed non-comparable for three and nine months ended September 30, 2018, respectively. |
(3) | We define SL Rent Change as the percentage change in the average monthly base rent over the term of the lease, calculated on a straight-line basis, of the lease executed during the period compared to the Comparable Lease for assets included in the Operating Portfolio. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses, and this calculation excludes the impact of any holdover rent. |
(4) | We define Weighted Average Lease Term as the contractual lease term in years as of the lease start date weighted by square footage. |
(5) | Represents the total rental concessions for the entire lease term. |
(6) | We define a New Lease as any lease that is signed for an initial term equal to or greater than twelve months for any vacant space; this includes a new tenant or an existing tenant that is expanding into new (additional) space. |
(7) | We define a Renewal Lease as a lease signed by an existing tenant to extend the term for twelve months or more, including (i) a renewal of the same space as the current lease at lease expiration, (ii) a renewal of only a portion of the current space at lease expiration and (iii) an early renewal or workout, which ultimately does extend the original term for twelve months or more. |
Lease Expiration Year | Number of Leases Expiring | Total Rentable Square Feet | % of Total Occupied Square Feet | Total Annualized Base Rental Revenue (in thousands) | % of Total Annualized Base Rental Revenue | ||||||||||
Available | — | 3,466,010 | — | — | — | ||||||||||
Month-to-month leases | 5 | 205,043 | 0.3 | % | $ | 828 | 0.3 | % | |||||||
Remainder of 2018 | 4 | 798,875 | 1.1 | % | 3,489 | 1.2 | % | ||||||||
2019 | 53 | 8,413,096 | 11.7 | % | 35,622 | 11.8 | % | ||||||||
2020 | 50 | 9,814,812 | 13.6 | % | 42,116 | 14.0 | % | ||||||||
2021 | 69 | 10,940,764 | 15.2 | % | 47,063 | 15.6 | % | ||||||||
2022 | 51 | 6,532,253 | 9.1 | % | 28,129 | 9.3 | % | ||||||||
2023 | 46 | 8,755,494 | 12.2 | % | 32,648 | 10.9 | % | ||||||||
2024 | 28 | 5,320,625 | 7.4 | % | 21,716 | 7.2 | % | ||||||||
2025 | 23 | 3,991,385 | 5.5 | % | 17,349 | 5.8 | % | ||||||||
2026 | 23 | 5,069,584 | 7.0 | % | 19,818 | 6.6 | % | ||||||||
2027 | 12 | 1,916,418 | 2.7 | % | 9,059 | 3.0 | % | ||||||||
Thereafter | 45 | 10,161,454 | 14.2 | % | 43,022 | 14.3 | % | ||||||||
Total | 409 | 75,385,813 | 100.0 | % | $ | 300,859 | 100.0 | % |
Square Footage | Annualized Base Rental Revenue | ||||||||||||||||||
Building Type | Number of Buildings | Amount | % | Occupancy Rate(1) | Amount (in thousands) | % | |||||||||||||
Warehouse/Distribution | 309 | 67,433,301 | 89.5 | % | 95.7 | % | $ | 264,832 | 88.1 | % | |||||||||
Light Manufacturing | 59 | 6,614,487 | 8.8 | % | 100.0 | % | 29,615 | 9.8 | % | ||||||||||
Total Operating Portfolio/weighted average | 368 | 74,047,788 | 98.3 | % | 96.0 | % | $ | 294,447 | 97.9 | % | |||||||||
Value Add | 4 | 773,345 | 1.0 | % | 53.7 | % | 1,792 | 0.6 | % | ||||||||||
Flex/Office | 9 | 564,680 | 0.7 | % | 67.9 | % | 4,620 | 1.5 | % | ||||||||||
Total portfolio/weighted average | 381 | 75,385,813 | 100.0 | % | 95.4 | % | $ | 300,859 | 100.0 | % |
(1) | We define Occupancy Rate as the percentage of total leasable square footage for which either revenue recognition has commenced in accordance with GAAP or the lease term has commenced as of the close of the reporting period, whichever occurs earlier. |
Market (1) | Date Acquired | Square Feet | Buildings | Purchase Price (in thousands) | ||||||||
Greenville/Spartanburg, SC | January 11, 2018 | 203,000 | 1 | $ | 10,755 | |||||||
Minneapolis/St Paul, MN | January 26, 2018 | 145,351 | 1 | 13,538 | ||||||||
Philadelphia, PA | February 1, 2018 | 278,582 | 1 | 18,277 | ||||||||
Houston, TX | February 22, 2018 | 242,225 | 2 | 22,478 | ||||||||
Greenville/Spartanburg, SC | March 30, 2018 | 222,710 | 1 | 13,773 | ||||||||
Three months ended March 31, 2018 | 1,091,868 | 6 | 78,821 | |||||||||
Chicago, IL | April 23, 2018 | 169,311 | 2 | 10,975 | ||||||||
Milwaukee/Madison, WI | April 26, 2018 | 53,680 | 1 | 4,316 | ||||||||
Pittsburgh, PA | April 30, 2018 | 175,000 | 1 | 15,380 | ||||||||
Detroit, MI | May 9, 2018 | 274,500 | 1 | 19,328 | ||||||||
Minneapolis/St Paul, MN | May 15, 2018 | 509,910 | 2 | 26,983 | ||||||||
Cincinnati/Dayton, OH | May 23, 2018 | 158,500 | 1 | 7,317 | ||||||||
Baton Rouge, LA | May 31, 2018 | 279,236 | 1 | 21,379 | ||||||||
Las Vegas, NV | June 12, 2018 | 122,472 | 1 | 17,920 | ||||||||
Greenville/Spartanburg, SC | June 15, 2018 | 131,805 | 1 | 5,621 | ||||||||
Denver, CO | June 18, 2018 | 64,750 | 1 | 7,044 | ||||||||
Cincinnati/Dayton, OH | June 25, 2018 | 465,136 | 1 | 16,421 | ||||||||
Charlotte, NC | June 29, 2018 | 69,200 | 1 | 5,446 | ||||||||
Houston, TX | June 29, 2018 | 252,662 | 1 | 27,170 | ||||||||
Three months ended June 30, 2018 | 2,726,162 | 15 | 185,300 | |||||||||
Knoxville, TN | July 10, 2018 | 106,000 | 1 | 6,477 | ||||||||
Pittsburgh, PA | August 2, 2018 | 265,568 | 1 | 19,186 | ||||||||
Raleigh/Durham, NC | August 2, 2018 | 365,000 | 1 | 21,067 | ||||||||
Detroit, MI | August 6, 2018 | 439,150 | 1 | 21,077 | ||||||||
Des Moines, IA | August 8, 2018 | 121,922 | 1 | 6,053 | ||||||||
McAllen/Edinburg/Pharr, TX | August 9, 2018 | 270,084 | 1 | 18,523 | ||||||||
Pittsburgh, PA | August 15, 2018 | 200,500 | 1 | 11,327 | ||||||||
Minneapolis/St Paul, MN | August 24, 2018 | 120,606 | 1 | 8,422 | ||||||||
Milwaukee/Madison, WI | September 28, 2018 | 100,800 | 1 | 7,484 | ||||||||
Milwaukee/Madison, WI | September 28, 2018 | 174,633 | 2 | 13,288 | ||||||||
Chicago, IL | September 28, 2018 | 105,637 | 1 | 6,368 | ||||||||
Indianapolis, IN | September 28, 2018 | 478,721 | 1 | 29,085 | ||||||||
Augusta/Richmond County, GA | September 28, 2018 | 203,726 | 1 | 9,379 | ||||||||
Charlotte, NC | September 28, 2018 | 301,000 | 1 | 16,807 | ||||||||
Three months ended September 30, 2018 | 3,253,347 | 15 | 194,543 | |||||||||
Nine months ended September 30, 2018 | 7,071,377 | 36 | $ | 458,664 |
Top Ten Markets (1) | % of Total Annualized Base Rental Revenue | ||
Philadelphia, PA | 9.5 | % | |
Chicago, IL | 8.6 | % | |
Greenville/Spartanburg, SC | 4.8 | % | |
Milwaukee/Madison, WI | 4.1 | % | |
Detroit, MI | 3.9 | % | |
Cincinnati/Dayton, OH | 3.3 | % | |
Charlotte, NC | 3.2 | % | |
Houston, TX | 3.2 | % | |
Minneapolis/St Paul, MN | 3.0 | % | |
Pittsburgh, PA | 2.8 | % | |
Total | 46.4 | % |
Top Ten Tenant Industries (1) | % of Total Annualized Base Rental Revenue | ||
Capital Goods | 14.8 | % | |
Automobiles & Components | 12.8 | % | |
Materials | 11.7 | % | |
Transportation | 8.9 | % | |
Consumer Durables & Apparel | 8.9 | % | |
Food, Beverage & Tobacco | 7.9 | % | |
Commercial & Prof Services | 7.6 | % | |
Retailing | 5.0 | % | |
Household & Personal Products | 4.7 | % | |
Food & Staples Retailing | 4.3 | % | |
Total | 86.6 | % |
Top Ten Tenants (1) | Number of Leases | % of Total Annualized Base Rental Revenue | ||||
General Service Administration | 1 | 2.3 | % | |||
XPO Logistics | 4 | 1.9 | % | |||
Deckers Outdoor | 2 | 1.4 | % | |||
Yanfeng US Automotive Interior | 3 | 1.3 | % | |||
Solo Cup | 1 | 1.3 | % | |||
TriMas Corporation | 4 | 1.2 | % | |||
DHL | 4 | 1.0 | % | |||
Generation Brands | 1 | 0.9 | % | |||
Schneider Electric USA, Inc. | 4 | 0.9 | % | |||
Carolina Beverage Group | 2 | 0.9 | % | |||
Total | 26 | 13.1 | % |
Same Store Portfolio | Acquisitions/Dispositions | Other | Total Portfolio | ||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Change | Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | $ | % | ||||||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||||||||||||
Operating revenue | |||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 61,926 | $ | 60,611 | $ | 1,315 | 2.2 | % | $ | 9,977 | $ | 3,030 | $ | 3,256 | $ | 2,032 | $ | 75,159 | $ | 65,673 | $ | 9,486 | 14.4 | % | |||||||||||||||||||||
Tenant recoveries | 10,760 | 11,239 | (479 | ) | (4.3 | )% | 1,865 | 620 | 893 | 507 | 13,518 | 12,366 | 1,152 | 9.3 | % | ||||||||||||||||||||||||||||||
Other income | 254 | 44 | 210 | 477.3 | % | 15 | 50 | — | 11 | 269 | 105 | 164 | 156.2 | % | |||||||||||||||||||||||||||||||
Total operating revenue | 72,940 | 71,894 | 1,046 | 1.5 | % | 11,857 | 3,700 | 4,149 | 2,550 | 88,946 | 78,144 | 10,802 | 13.8 | % | |||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||
Property | 13,572 | 13,388 | 184 | 1.4 | % | 2,049 | 993 | 1,491 | 1,020 | 17,112 | 15,401 | 1,711 | 11.1 | % | |||||||||||||||||||||||||||||||
Net operating income (1) | $ | 59,368 | $ | 58,506 | $ | 862 | 1.5 | % | $ | 9,808 | $ | 2,707 | $ | 2,658 | $ | 1,530 | 71,834 | 62,743 | 9,091 | 14.5 | % | ||||||||||||||||||||||||
Other expenses | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 8,911 | 8,380 | 531 | 6.3 | % | ||||||||||||||||||||||||||||||||||||||||
Property acquisition costs | — | 1,386 | (1,386 | ) | (100.0 | )% | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 44,355 | 38,186 | 6,169 | 16.2 | % | ||||||||||||||||||||||||||||||||||||||||
Other expenses | 223 | 58 | 165 | 284.5 | % | ||||||||||||||||||||||||||||||||||||||||
Total other expenses | 53,489 | 48,010 | 5,479 | 11.4 | % | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 70,601 | 63,411 | 7,190 | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||||||||||||
Interest and other income | 3 | 2 | 1 | 50.0 | % | ||||||||||||||||||||||||||||||||||||||||
Interest expense | (12,698 | ) | (10,446 | ) | (2,252 | ) | 21.6 | % | |||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (13 | ) | (13 | ) | — | — | % | ||||||||||||||||||||||||||||||||||||||
Gain on the sales of rental property, net | 3,239 | 17,563 | (14,324 | ) | (81.6 | )% | |||||||||||||||||||||||||||||||||||||||
Total other income (expense) | (9,469 | ) | 7,106 | (16,575 | ) | (233.3 | )% | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 8,876 | $ | 21,839 | $ | (12,963 | ) | (59.4 | )% |
(1) | For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below. |
Same Store Portfolio | Acquisitions/Dispositions | Other | Total Portfolio | ||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, | Change | Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | $ | % | ||||||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||||||||||||
Operating revenue | |||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 162,063 | $ | 158,798 | $ | 3,265 | 2.1 | % | $ | 44,984 | $ | 21,629 | $ | 10,180 | $ | 6,194 | $ | 217,227 | $ | 186,621 | $ | 30,606 | 16.4 | % | |||||||||||||||||||||
Tenant recoveries | 28,341 | 27,519 | 822 | 3.0 | % | 8,693 | 4,004 | 2,409 | 1,429 | 39,443 | 32,952 | 6,491 | 19.7 | % | |||||||||||||||||||||||||||||||
Other income | 725 | 118 | 607 | 514.4 | % | 216 | 70 | 92 | 56 | 1,033 | 244 | 789 | 323.4 | % | |||||||||||||||||||||||||||||||
Total operating revenue | 191,129 | 186,435 | 4,694 | 2.5 | % | 53,893 | 25,703 | 12,681 | 7,679 | 257,703 | 219,817 | 37,886 | 17.2 | % | |||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||||||
Property | 35,947 | 33,839 | 2,108 | 6.2 | % | 10,337 | 5,317 | 4,451 | 3,156 | 50,735 | 42,312 | 8,423 | 19.9 | % | |||||||||||||||||||||||||||||||
Net operating income (1) | $ | 155,182 | $ | 152,596 | $ | 2,586 | 1.7 | % | $ | 43,556 | $ | 20,386 | $ | 8,230 | $ | 4,523 | 206,968 | 177,505 | 29,463 | 16.6 | % | ||||||||||||||||||||||||
Other expenses | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 25,637 | 25,090 | 547 | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||
Property acquisition costs | — | 4,684 | (4,684 | ) | (100.0 | )% | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 125,221 | 110,286 | 14,935 | 13.5 | % | ||||||||||||||||||||||||||||||||||||||||
Loss on impairments | 2,934 | — | 2,934 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||
Loss on involuntary conversion | — | 330 | (330 | ) | (100.0 | )% | |||||||||||||||||||||||||||||||||||||||
Other expenses | 864 | 1,502 | (638 | ) | (42.5 | )% | |||||||||||||||||||||||||||||||||||||||
Total other expenses | 154,656 | 141,892 | 12,764 | 9.0 | % | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 205,391 | 184,204 | 21,187 | 11.5 | % | ||||||||||||||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||||||||||||
Interest and other income | 16 | 10 | 6 | 60.0 | % | ||||||||||||||||||||||||||||||||||||||||
Interest expense | (35,602 | ) | (31,557 | ) | (4,045 | ) | 12.8 | % | |||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (13 | ) | (15 | ) | 2 | (13.3 | )% | ||||||||||||||||||||||||||||||||||||||
Gain on the sales of rental property, net | 32,276 | 19,225 | 13,051 | 67.9 | % | ||||||||||||||||||||||||||||||||||||||||
Total other income (expense) | (3,323 | ) | (12,337 | ) | 9,014 | 73.1 | % | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 48,989 | $ | 23,276 | $ | 25,713 | 110.5 | % |
(1) | For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Reconciliation of Net Income to FFO (in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 8,876 | $ | 21,839 | $ | 48,989 | $ | 23,276 | ||||||||
Rental property depreciation and amortization | 44,281 | 38,114 | 124,999 | 110,069 | ||||||||||||
Loss on impairments | — | — | 2,934 | — | ||||||||||||
Gain on the sales of rental property, net | (3,239 | ) | (17,563 | ) | (32,276 | ) | (19,225 | ) | ||||||||
FFO | 49,918 | 42,390 | 144,646 | 114,120 | ||||||||||||
Preferred stock dividends | (1,289 | ) | (2,449 | ) | (6,315 | ) | (7,345 | ) | ||||||||
Redemption of preferred stock | — | — | (2,661 | ) | — | |||||||||||
FFO attributable to common stockholders and unit holders | $ | 48,629 | $ | 39,941 | $ | 135,670 | $ | 106,775 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Reconciliation of Net Income to NOI (in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 8,876 | $ | 21,839 | $ | 48,989 | $ | 23,276 | ||||||||
Asset management fee income | — | (9 | ) | — | (52 | ) | ||||||||||
General and administrative | 8,911 | 8,380 | 25,637 | 25,090 | ||||||||||||
Property acquisition costs | 94 | 1,386 | 170 | 4,684 | ||||||||||||
Depreciation and amortization | 44,355 | 38,186 | 125,221 | 110,286 | ||||||||||||
Interest and other income | (3 | ) | (2 | ) | (16 | ) | (10 | ) | ||||||||
Interest expense | 12,698 | 10,446 | 35,602 | 31,557 | ||||||||||||
Loss on impairments | — | — | 2,934 | — | ||||||||||||
Loss on involuntary conversion | — | — | — | 330 | ||||||||||||
Loss on extinguishment of debt | 13 | 13 | 13 | 15 | ||||||||||||
Other expenses | 129 | 260 | 694 | 813 | ||||||||||||
(Gain) loss on incentive fee | — | (202 | ) | — | 689 | |||||||||||
Gain on the sales of rental property, net | (3,239 | ) | (17,563 | ) | (32,276 | ) | (19,225 | ) | ||||||||
Net operating income | $ | 71,834 | $ | 62,734 | $ | 206,968 | $ | 177,453 |
Nine months ended September 30, | Change | ||||||||||||||
Cash Flows (dollars in thousands) | 2018 | 2017 | $ | % | |||||||||||
Net cash provided by operating activities | $ | 148,610 | $ | 120,034 | $ | 28,576 | 23.8 | % | |||||||
Net cash used in investing activities | $ | 393,250 | $ | 468,294 | $ | (75,044 | ) | (16.0 | )% | ||||||
Net cash provided by financing activities | $ | 227,766 | $ | 341,042 | $ | (113,276 | ) | (33.2 | )% |
Month Ended 2018 | Declaration Date | Record Date | Per Share | Payment Date | ||||||
September 30 | July 11, 2018 | September 28, 2018 | $ | 0.118333 | October 15, 2018 | |||||
August 31 | July 11, 2018 | August 31, 2018 | 0.118333 | September 17, 2018 | ||||||
July 31 | July 11, 2018 | July 31, 2018 | 0.118333 | August 15, 2018 | ||||||
June 30 | April 10, 2018 | June 29, 2018 | 0.118333 | July 16, 2018 | ||||||
May 31 | April 10, 2018 | May 31, 2018 | 0.118333 | June 15, 2018 | ||||||
April 30 | April 10, 2018 | April 30, 2018 | 0.118333 | May 15, 2018 | ||||||
March 31 | November 2, 2017 | March 29, 2018 | 0.118333 | April 16, 2018 | ||||||
February 28 | November 2, 2017 | February 28, 2018 | 0.118333 | March 15, 2018 | ||||||
January 31 | November 2, 2017 | January 31, 2018 | 0.118333 | February 15, 2018 | ||||||
Total | $ | 1.064997 |
Quarter Ended 2018 | Declaration Date | Series B Preferred Stock Per Share | Series C Preferred Stock Per Share | Payment Date | ||||||||
September 30 | July 11, 2018 | $ | 0.0460069 | (1) | $ | 0.4296875 | October 1, 2018 | |||||
June 30 | April 10, 2018 | 0.4140625 | 0.4296875 | July 2, 2018 | ||||||||
March 31 | February 14, 2018 | 0.4140625 | 0.4296875 | April 2, 2018 | ||||||||
Total | $ | 0.8741319 | $ | 1.2890625 |
(1) | On June 11, 2018, we gave notice to redeem all 2,800,000 issued and outstanding shares of the Series B Preferred Stock. On July 11, 2018, we redeemed all of the Series B Preferred Stock at a cash redemption price of $25.00 per share, plus accrued and unpaid dividends to but excluding the redemption date, without interest. |
Loan | Principal Outstanding (in thousands) | Interest Rate (1) | Maturity Date | Prepayment Terms (2) | |||||||
Unsecured credit facility: | |||||||||||
Unsecured Credit Facility (3) | $ | 95,000 | L + 1.05% | Jan-15-2023 | i | ||||||
Total unsecured credit facility | 95,000 | ||||||||||
Unsecured term loans: | |||||||||||
Unsecured Term Loan C | 150,000 | L + 1.30% | Sep-29-2020 | i | |||||||
Unsecured Term Loan B | 150,000 | L + 1.30% | Mar-21-2021 | i | |||||||
Unsecured Term Loan A | 150,000 | L + 1.30% | Mar-31-2022 | i | |||||||
Unsecured Term Loan D | 150,000 | L + 1.30% | Jan-04-2023 | i | |||||||
Unsecured Term Loan E (4) | — | L + 1.20% | Jan-15-2024 | i | |||||||
Total unsecured term loans | 600,000 | ||||||||||
Less: Total unamortized deferred financing fees and debt issuance costs | (3,915 | ) | |||||||||
Total carrying value unsecured term loans, net | 596,085 | ||||||||||
Unsecured notes: | |||||||||||
Series F Unsecured Notes | 100,000 | 3.98 | % | Jan-05-2023 | ii | ||||||
Series A Unsecured Notes | 50,000 | 4.98 | % | Oct-1-2024 | ii | ||||||
Series D Unsecured Notes | 100,000 | 4.32 | % | Feb-20-2025 | ii | ||||||
Series G Unsecured Notes | 75,000 | 4.10 | % | Jun-13-2025 | ii | ||||||
Series B Unsecured Notes | 50,000 | 4.98 | % | Jul-1-2026 | ii | ||||||
Series C Unsecured Notes | 80,000 | 4.42 | % | Dec-30-2026 | ii | ||||||
Series E Unsecured Notes | 20,000 | 4.42 | % | Feb-20-2027 | ii | ||||||
Series H Unsecured Notes | 100,000 | 4.27 | % | Jun-13-2028 | ii | ||||||
Total unsecured notes | 575,000 | ||||||||||
Less: Total unamortized deferred financing fees and debt issuance costs | (2,611 | ) | |||||||||
Total carrying value unsecured notes, net | 572,389 | ||||||||||
Mortgage notes (secured debt): | |||||||||||
Wells Fargo Bank, National Association CMBS Loan | 53,652 | 4.31 | % | Dec-1-2022 | iii | ||||||
Thrivent Financial for Lutherans | 3,824 | 4.78 | % | Dec-15-2023 | iv | ||||||
Total mortgage notes | 57,476 | ||||||||||
Add: Total unamortized fair market value premiums | 52 | ||||||||||
Less: Total unamortized deferred financing fees and debt issuance costs | (535 | ) | |||||||||
Total carrying value mortgage notes, net | 56,993 | ||||||||||
Total / weighted average interest rate (5) | $ | 1,320,467 | 3.69 | % |
(1) | Interest rate as of September 30, 2018. At September 30, 2018, the one-month LIBOR (“L”) was 2.26056%. The interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for our unsecured credit facility and unsecured term loans is based on our consolidated leverage ratio, as defined in the respective loan agreements. |
(2) | Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date, however can be defeased beginning January 1, 2016; and (iv) pre-payable without penalty three months prior to the maturity date. |
(3) | The capacity of the unsecured credit facility is $500.0 million. |
(4) | Capacity of $175.0 million, which we have until July 25, 2019 to draw. |
(5) | The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $600.0 million of debt that was in effect as of September 30, 2018, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. |
Debt Capital Structure | September 30, 2018 | |||
Total principal outstanding (in thousands) | $ | 1,327,476 | ||
Weighted average duration (years) | 4.9 | |||
% Secured debt | 4 | % | ||
% Debt maturing next 12 months | — | % | ||
Net Debt to Real Estate Cost Basis (1) | 39 | % |
(1) | We define Net Debt as our amounts outstanding under our unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes, less cash and cash equivalents. We define Real Estate Cost Basis as the book value of rental property and deferred leasing intangibles, exclusive of the related accumulated depreciation and amortization. |
Preferred Stock Issuances | Issuance Date | Number of Shares | Liquidation Value Per Share | Interest Rate | ||||||||
Series C Preferred Stock | March 17, 2016 | 3,000,000 | $ | 25.00 | 6.875 | % |
ATM Common Stock Offering Program | Date | Maximum Aggregate Offering Price (in thousands) | Aggregate Common Stock Available as of September 30, 2018 (in thousands) | |||||||
2017 $500 million ATM | November 13, 2017 | $ | 500,000 | $ | 213,217 |
Three months ended September 30, 2018 | |||||||||||||||||||
ATM Common Stock Offering Program | Shares Sold | Weighted Average Price Per Share | Gross Proceeds | Sales Agents’ Fee | Net Proceeds | ||||||||||||||
2017 $500 million ATM | 3,568,382 | $ | 27.94 | $ | 99,695 | $ | 1,129 | $ | 98,566 | ||||||||||
Total/weighted average | 3,568,382 | $ | 27.94 | $ | 99,695 | $ | 1,129 | $ | 98,566 |
Nine months ended September 30, 2018 | |||||||||||||||||||
ATM Common Stock Offering Program | Shares Sold | Weighted Average Price Per Share | Gross Proceeds | Sales Agents’ Fee | Net Proceeds | ||||||||||||||
2017 $500 million ATM | 10,387,962 | $ | 26.61 | $ | 276,457 | $ | 2,888 | $ | 273,569 | ||||||||||
Total/weighted average | 10,387,962 | $ | 26.61 | $ | 276,457 | $ | 2,888 | $ | 273,569 |
Interest Rate Derivative Counterparty | Trade Date | Effective Date | Notional Amount (in thousands) | Fair Value (in thousands) | Pay Fixed Interest Rate | Receive Variable Interest Rate | Maturity Date | ||||||||||||
Regions Bank | Mar-01-2013 | Mar-01-2013 | $ | 25,000 | $ | 471 | 1.3300 | % | One-month L | Feb-14-2020 | |||||||||
Capital One, N.A. | Jun-13-2013 | Jul-01-2013 | $ | 50,000 | $ | 703 | 1.6810 | % | One-month L | Feb-14-2020 | |||||||||
Capital One, N.A. | Jun-13-2013 | Aug-01-2013 | $ | 25,000 | $ | 344 | 1.7030 | % | One-month L | Feb-14-2020 | |||||||||
Regions Bank | Sep-30-2013 | Feb-03-2014 | $ | 25,000 | $ | 245 | 1.9925 | % | One-month L | Feb-14-2020 | |||||||||
The Toronto-Dominion Bank | Oct-14-2015 | Sep-29-2016 | $ | 25,000 | $ | 700 | 1.3830 | % | One-month L | Sep-29-2020 | |||||||||
PNC Bank, N.A. | Oct-14-2015 | Sep-29-2016 | $ | 50,000 | $ | 1,391 | 1.3906 | % | One-month L | Sep-29-2020 | |||||||||
Regions Bank | Oct-14-2015 | Sep-29-2016 | $ | 35,000 | $ | 978 | 1.3858 | % | One-month L | Sep-29-2020 | |||||||||
U.S. Bank, N.A. | Oct-14-2015 | Sep-29-2016 | $ | 25,000 | $ | 695 | 1.3950 | % | One-month L | Sep-29-2020 | |||||||||
Capital One, N.A. | Oct-14-2015 | Sep-29-2016 | $ | 15,000 | $ | 417 | 1.3950 | % | One-month L | Sep-29-2020 | |||||||||
Royal Bank of Canada | Jan-08-2015 | Mar-20-2015 | $ | 25,000 | $ | 684 | 1.7090 | % | One-month L | Mar-21-2021 | |||||||||
The Toronto-Dominion Bank | Jan-08-2015 | Mar-20-2015 | $ | 25,000 | $ | 682 | 1.7105 | % | One-month L | Mar-21-2021 | |||||||||
The Toronto-Dominion Bank | Jan-08-2015 | Sep-10-2017 | $ | 100,000 | $ | 1,488 | 2.2255 | % | One-month L | Mar-21-2021 | |||||||||
Wells Fargo, N.A. | Jan-08-2015 | Mar-20-2015 | $ | 25,000 | $ | 886 | 1.8280 | % | One-month L | Mar-31-2022 | |||||||||
The Toronto-Dominion Bank | Jan-08-2015 | Feb-14-2020 | $ | 25,000 | $ | 271 | 2.4535 | % | One-month L | Mar-31-2022 | |||||||||
Regions Bank | Jan-08-2015 | Feb-14-2020 | $ | 50,000 | $ | 520 | 2.4750 | % | One-month L | Mar-31-2022 | |||||||||
Capital One, N.A. | Jan-08-2015 | Feb-14-2020 | $ | 50,000 | $ | 467 | 2.5300 | % | One-month L | Mar-31-2022 | |||||||||
The Toronto-Dominion Bank | Jul-20-2017 | Oct-30-2017 | $ | 25,000 | $ | 1,054 | 1.8485 | % | One-month L | Jan-04-2023 | |||||||||
Royal Bank of Canada | Jul-20-2017 | Oct-30-2017 | $ | 25,000 | $ | 1,054 | 1.8505 | % | One-month L | Jan-04-2023 | |||||||||
Wells Fargo, N.A. | Jul-20-2017 | Oct-30-2017 | $ | 25,000 | $ | 1,055 | 1.8505 | % | One-month L | Jan-04-2023 | |||||||||
PNC Bank, N.A. | Jul-20-2017 | Oct-30-2017 | $ | 25,000 | $ | 1,052 | 1.8485 | % | One-month L | Jan-04-2023 | |||||||||
PNC Bank, N.A. | Jul-20-2017 | Oct-30-2017 | $ | 50,000 | $ | 2,105 | 1.8475 | % | One-month L | Jan-04-2023 | |||||||||
The Toronto-Dominion Bank | Jul-24-2018 | Jul-26-2019 | $ | 50,000 | $ | 111 | 2.9180 | % | One-month L | Jan-12-2024 | |||||||||
PNC Bank, N.A. | Jul-24-2018 | Jul-26-2019 | $ | 50,000 | $ | 106 | 2.9190 | % | One-month L | Jan-12-2024 | |||||||||
Bank of Montreal | Jul-24-2018 | Jul-26-2019 | $ | 50,000 | $ | 113 | 2.9190 | % | One-month L | Jan-12-2024 | |||||||||
U.S. Bank, N.A. | Jul-24-2018 | Jul-26-2019 | $ | 25,000 | $ | 57 | 2.9190 | % | One-month L | Jan-12-2024 |
Exhibit Number | Description of Document | |
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
10.5 | ||
10.6 | ||
31.1 | ||
31.2 | ||
32.1 | ||
101 * | The following materials from STAG Industrial, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes to Consolidated Financial Statements |
* | Filed herewith. |
(1) | Incorporated by reference to STAG Industrial, Inc.’s Current Report on Form 8-K filed with the SEC on July 31, 2018. |
STAG INDUSTRIAL, INC. | ||
Date: November 1, 2018 | BY: | /s/ WILLIAM R. CROOKER |
William R. Crooker | ||
Chief Financial Officer, Executive Vice President and Treasurer (Principal Financial Officer and Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of STAG Industrial, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 1, 2018 | /s/ BENJAMIN S. BUTCHER |
Benjamin S. Butcher Chairman, Chief Executive Officer and President |
1. | I have reviewed this quarterly report on Form 10-Q of STAG Industrial, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 1, 2018 | /s/ WILLIAM R. CROOKER |
William R. Crooker Chief Financial Officer, Executive Vice President and Treasurer |
(1) | the Report, containing the financial statements, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of STAG Industrial, Inc. |
Date: November 1, 2018 | /s/ BENJAMIN S. BUTCHER |
Benjamin S. Butcher Chairman, Chief Executive Officer and President | |
/s/ WILLIAM R. CROOKER | |
William R. Crooker Chief Financial Officer, Executive Vice President and Treasurer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 31, 2018 |
|
Document and Entity Information | ||
Entity Registrant Name | STAG Industrial, Inc. | |
Entity Central Index Key | 0001479094 | |
Document Period End Date | Sep. 30, 2018 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 108,893,286 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,876 | $ 21,839 | $ 48,989 | $ 23,276 |
Other comprehensive income: | ||||
Income on interest rate swaps | 2,060 | 598 | 12,811 | 300 |
Other comprehensive income | 2,060 | 598 | 12,811 | 300 |
Comprehensive income | 10,936 | 22,437 | 61,800 | 23,576 |
Income attributable to noncontrolling interest after preferred stock dividends | (281) | (828) | (1,589) | (673) |
Other comprehensive income attributable to noncontrolling interest | (76) | (26) | (509) | (13) |
Comprehensive income attributable to STAG Industrial, Inc. | $ 10,579 | $ 21,583 | $ 59,702 | $ 22,890 |
Organization and Description of Business |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business STAG Industrial, Inc. (the “Company”) is an industrial real estate operating company focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. The Company was formed as a Maryland corporation and has elected to be treated and intends to continue to qualify as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns substantially all of its assets and conducts substantially all of its business through its operating partnership, STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”). As of September 30, 2018 and December 31, 2017, the Company owned a 96.4% and 95.9%, respectively, common equity interest in the Operating Partnership. The Company, through its wholly owned subsidiary, is the sole general partner of the Operating Partnership. As used herein, the “Company” refers to STAG Industrial, Inc. and its consolidated subsidiaries and partnerships, including the Operating Partnership, except where context otherwise requires. As of September 30, 2018, the Company owned 381 buildings in 37 states with approximately 75.4 million rentable square feet, consisting of 313 warehouse/distribution buildings, 59 light manufacturing buildings, and 9 flex/office buildings. The Company’s buildings were approximately 95.4% leased to 330 tenants as of September 30, 2018. |
Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interim Financial Information The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Basis of Presentation The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended (the “2011 Plan”). All significant intercompany balances and transactions have been eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented. Reclassifications and New Accounting Standards Certain prior year amounts have been reclassified to conform to the current year presentation. New Accounting Standards Adopted In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. This standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those years, with early adoption permitted, and the Company adopted this standard effective January 1, 2018 using the modified retrospective transition method. The adoption of this standard resulted in a cumulative effect adjustment of approximately $0.3 million recorded as an increase to cumulative dividends in excess of earnings and an increase to accumulated other comprehensive income as of January 1, 2018 in the accompanying Consolidated Statements of Equity. In May 2017, the FASB issued ASU 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting, which provides updated guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting under the topic. This standard is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, and the Company adopted this standard prospectively effective January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The new standard was issued as part of the new revenue standard (ASU 2014-09, as discussed below), and defines “in substance nonfinancial asset,” unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing sales of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. As a result of the new guidance, the guidance specific to real estate sales in Subtopic 360-20 was eliminated, and sales and partial sales of real estate assets will now be subject to the same derecognition model as all other nonfinancial assets. This standard is effective at the same time an entity adopts ASU 2014-09, which the Company adopted effective January 1, 2018. The Company adopted this standard effective January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard provides a screen to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This standard is effective for annual periods beginning after December 15, 2017 and interim periods within those periods, and the Company adopted this standard prospectively effective January 1, 2018. As a result, it is expected that the majority of the Company's acquisitions will be accounted for as asset acquisitions, whereas under the former guidance the majority of the Company's acquisitions had been accounted for as business combinations. The most significant difference between the two accounting models that impacts the Company's consolidated financial statements is that in an asset acquisition, property acquisition costs are generally a component of the consideration transferred to acquire a group of assets and are capitalized as a component of the cost of the assets, whereas in a business combination, property acquisition costs are expensed and not included as part of the consideration transferred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the changes during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This standard is effective for fiscal years beginning after December 15, 2017 and the Company adopted this standard effective January 1, 2018. As a result, the Company has included restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts on the accompanying Consolidated Statements of Cash Flows. The effects of this standard were applied retrospectively to all prior periods presented. For the nine months ended September 30, 2017, the effect of the change in accounting principle was a decrease in cash provided by operating activities of approximately $0.5 million and an increase in cash used in investing activities of approximately $5.6 million on the accompanying Consolidated Statements of Cash Flows. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for the annual periods beginning after December 31, 2017 and for annual periods and interim periods within those years, and the Company adopted this standard prospectively effective January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additionally, the new revenue guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard effective January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. New Accounting Standards Issued but not yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), and various subsequent ASU’s, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Topic 842 supersedes the previous leases standard, Topic 840, Leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 is expected to impact the Company’s consolidated financial statements as the Company has certain operating and land lease arrangements for which it is the lessee, which will result in the recording of a right of use asset and the related lease liability. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The new standard must be adopted using the modified retrospective transition method by recognizing a cumulative effect adjustment to the opening balance of cumulative dividends in excess of earnings, by either applying the new guidance at the beginning of the earliest comparative period or by applying the new guidance at the adoption date. The Company intends to adopt available practical expedients which allows the Company to 1) not reassess whether any expired or existing contracts are or contain leases; 2) not reassess the lease classification for any expired or existing leases; and 3) not reassess initial direct costs for any existing leases. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position or results of operations, and plans to adopt this standard effective January 1, 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which the Company adopted on January 1, 2018, as discussed in “New Accounting Standards Adopted” above. While lease contracts with customers, which constitute a vast majority of the Company’s revenues, are specifically excluded from the model’s scope, once the new leases standard under ASU 2016-02 is adopted by the Company, the new revenue standard may apply to executory costs and other components of revenue due under leases that are deemed to be non-lease components (such as common area maintenance and provision of utilities), even when the revenue for such activities is not separately stipulated in the lease. In that case, revenue from these items previously recognized on a straight-line basis under current lease guidance would be recognized under the new revenue guidance as the related services are delivered. As a result, while the total revenue recognized over time would not differ under the new guidance, the recognition pattern may be different. In July 2018, the FASB issued ASU 2018-11 which amends Topic 842, Leases, and provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance and both of the following are met: i) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same; and ii) the lease component, if accounted for separately, would be classified as an operating lease. Under this new expedient, if the non-lease components associated with the lease component are the predominant component of the combined component, a company should account for the combined component in accordance with Topic 606. Otherwise, the company should account for the combined component as an operating lease in accordance with Topic 842. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position or results of operations, and plans to adopt this standard effective January 1, 2019. Restricted Cash Restricted cash may include tenant security deposits and cash held in escrow for real estate taxes and capital improvements as required in various mortgage note agreements. Restricted cash also may include amounts held by the Company’s transfer agent for preferred stock dividends that are distributed subsequent to period end. The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows.
Tenant Accounts Receivable, net As of September 30, 2018 and December 31, 2017, the Company had an allowance for doubtful accounts of approximately $0.6 million and $0.1 million, respectively. As of September 30, 2018 and December 31, 2017, the Company had accrued rental income, net of allowance of approximately $30.7 million and $24.7 million, respectively. As of September 30, 2018 and December 31, 2017, the Company had an allowance on accrued rental income of $0.2 million and $0.2 million, respectively. As of September 30, 2018 and December 31, 2017, the Company had approximately $14.6 million and $12.7 million, respectively, of total lease security deposits available in the form of existing letters of credit, which are not reflected on the accompanying Consolidated Balance Sheets. As of September 30, 2018 and December 31, 2017, the Company had approximately $0.7 million and $0.7 million, respectively, of lease security deposits available in cash, which are included in restricted cash on the accompanying Consolidated Balance Sheets. The Company's remaining lease security deposits are commingled in cash and cash equivalents. These funds may be used to settle tenant accounts receivables in the event of a default under the related lease. As of September 30, 2018 and December 31, 2017, the Company's total liability associated with these lease security deposits was approximately $8.7 million and $8.1 million, respectively, and is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets. Revenue Recognition Tenant Recoveries The Company estimates that real estate taxes, which are the responsibility of certain tenants under the terms of their leases and are not reflected on the Company's consolidated financial statements, were approximately $3.8 million, $10.9 million, $2.9 million and $9.2 million for the three and nine months ended September 30, 2018 and 2017, respectively. These amounts would have been the maximum real estate tax expense of the Company, excluding any penalties or interest, had the tenants not met their contractual obligations for these periods. Gain on the Sales of Rental Property, net The timing of the derecognition of a rental property and the corresponding recognition of gain on the sales of rental property, net is measured by various criteria related to the terms of the sale transaction, and if the Company has lost control of the property and the acquirer has gained control of the property after the transaction. If the derecognition criteria is met, the full gain is recognized. Taxes Federal Income Taxes The Company's taxable REIT subsidiaries recognized a net loss of approximately $22,000, $0.1 million, $0.2 million and $0.4 million for the three and nine months ended September 30, 2018 and 2017, respectively, which has been included on the accompanying Consolidated Statements of Operations. State and Local Income, Excise, and Franchise Tax State and local income, excise, and franchise taxes in the amount of $0.1 million, $0.6 million, $0.3 million and $0.7 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017, respectively. Uncertain Tax Positions As of September 30, 2018 and December 31, 2017, there were no liabilities for uncertain tax positions. Concentrations of Credit Risk Management believes the current credit risk portfolio is reasonably well diversified and does not contain any unusual concentration of credit risk. |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental Property | Rental Property The following table summarizes the components of rental property as of September 30, 2018 and December 31, 2017.
Acquisitions The following table summarizes the acquisitions of the Company during the three and nine months ended September 30, 2018.
(1) As defined by CoStar Realty Information Inc. The following table summarizes the allocation of the consideration paid at the date of acquisition during the nine months ended September 30, 2018 for the acquired assets and liabilities in connection with the acquisitions identified in the table above.
The table below sets forth the results of operations for the three and nine months ended September 30, 2018 for the buildings acquired during the nine months ended September 30, 2018 included in the Company’s Consolidated Statements of Operations from the date of acquisition.
Dispositions During the nine months ended September 30, 2018, the Company sold 11 buildings comprised of approximately 2.0 million square feet with a net book value of approximately $57.1 million to third parties. These buildings contributed approximately $0.1 million, $2.7 million, $2.6 million and $7.7 million to revenue for the three and nine months ended September 30, 2018 and 2017, respectively. These buildings contributed approximately $5,000, $0.1 million, $0.5 million and $1.4 million to net income (exclusive of loss on involuntary conversion, loss on impairments, and gain on the sales of rental property, net) for the three and nine months ended September 30, 2018 and 2017, respectively. Net proceeds from the sales of rental property were approximately $89.4 million and the Company recognized the full gain on the sales of rental property, net of approximately $32.3 million for the nine months ended September 30, 2018. Loss on Impairments The following table summarizes the Company's loss on impairments for assets held and used during the nine months ended September 30, 2018.
Deferred Leasing Intangibles The following table sets forth the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017.
The following table sets forth the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three and nine months ended September 30, 2018 and 2017.
The following table sets forth the amortization of deferred leasing intangibles over the next five calendar years beginning with 2018 as of September 30, 2018.
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following table sets forth a summary of the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of September 30, 2018 and December 31, 2017.
The aggregate undrawn nominal commitment on the unsecured credit facility and unsecured term loans as of September 30, 2018 was approximately $574.4 million, including issued letters of credit. The Company's actual borrowing capacity at any given point in time may be less and is restricted to a maximum amount based on the Company's debt covenant compliance. Total accrued interest for the Company's indebtedness was approximately $7.7 million and $5.6 million as of September 30, 2018 and December 31, 2017, respectively, and is included in accounts payable, accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. The table below sets forth the costs included in interest expense related to the Company's debt arrangements on the accompanying Consolidated Statement of Operations for the three and nine months ended September 30, 2018 and 2017.
On July 26, 2018, the Company closed on the refinancing of its unsecured credit facility. The refinancing transaction included extending the maturity date to January 15, 2023, increasing the capacity to $500.0 million, and reducing the annual interest rate. As of September 30, 2018, the interest rate on the unsecured credit facility was LIBOR plus a spread of 1.05% based on the Company’s consolidated leverage ratio, as defined in the credit agreement. The Company recognized a loss of approximately $13,000 as a result of the acceleration of unamortized deferred financing fees, which is included in loss on extinguishment of debt in the accompanying Consolidated Statements of Operations. The remaining unamortized deferred financing fees were carried over and will be amortized with any new deferred financing fees through the new maturity date of the unsecured credit facility. As of September 30, 2018, the unsecured credit facility has an annual facility fee of 0.15% based on the Company’s consolidated leverage ratio, as defined in the credit agreement, of total commitments that is due and payable quarterly. The Company also is required to pay an annual fee of $50,000. On July 26, 2018, the Company entered into a $175.0 million unsecured term loan agreement ("Unsecured Term Loan E"). As of September 30, 2018, the interest rate on the Unsecured Term Loan E was LIBOR plus a spread of 1.20% based on the Company's consolidated leverage ratio, as defined in the loan agreement. Unless otherwise terminated pursuant to the loan agreement, the Unsecured Term Loan E will mature on January 15, 2024. The Unsecured Term Loan E has an accordion feature that allows the Company to increase its borrowing capacity to $350.0 million, subject to the satisfaction of certain conditions and lender consents. The agreement includes a delayed draw feature that allows the Company to draw up to six advances of at least $25.0 million each until July 25, 2019. To the extent that the Company does not request advances of the $175.0 million of aggregate commitments by July 25, 2019, the unadvanced commitments terminate. The Unsecured Term Loan E has an unused commitment fee equal to 0.15% of its unused commitments, which began to accrue on October 24, 2018 and is due and payable monthly until the earlier of (i) the date that commitments of $175.0 million have been fully advanced, (ii) July 26, 2019, and (iii) the date that commitments of $175.0 million have been reduced to zero pursuant to the terms of the agreement. The Company also is required to pay an annual fee of $35,000. The Company and certain wholly owned subsidiaries of the Operating Partnership are guarantors of the Unsecured Term Loan E. The agreement also contains financial and other covenants substantially similar to the covenants in the Company's unsecured credit facility. On July 26, 2018, the Company entered into amendments to its unsecured term loan agreements to conform certain provisions to the Unsecured Term Loan E agreement and the new unsecured credit facility agreement. On April 10, 2018, the Company entered into a note purchase agreement (“NPA”) for the private placement by the Operating Partnership of $75.0 million senior unsecured notes (“Series G Unsecured Notes”) maturing June 13, 2025 with a fixed annual interest rate of 4.10%, and $100.0 million senior unsecured notes (“Series H Unsecured Notes”) maturing June 13, 2028 with a fixed annual interest rate of 4.27%. The NPA contains a number of financial covenants substantially similar to the financial covenants contained in the Company’s unsecured credit facility and other unsecured notes. The Operating Partnership issued the Series G Unsecured Notes and the Series H Unsecured Notes on June 13, 2018. In addition, on April 10, 2018, the Company entered into amendments to the note purchase agreements related to the Company’s outstanding unsecured notes to conform certain provisions in the agreements to the provisions in the NPA. On March 28, 2018, the Company drew $75.0 million of the $150.0 million unsecured term loan that was entered into on July 28, 2017. On July 27, 2018, the Company drew the remaining $75.0 million of the $150.0 million unsecured term loan. Financial Covenant Considerations The Company was in compliance with all financial and other covenants as of September 30, 2018 and December 31, 2017 related to its unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes. The real estate net book value of the properties that are collateral for the Company’s debt arrangements was approximately $88.4 million and $90.9 million at September 30, 2018 and December 31, 2017, respectively, and is limited to senior, property-level secured debt financing arrangements. Fair Value of Debt The following table presents the aggregate principal outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of September 30, 2018 and December 31, 2017 (in thousands).
The applicable fair value guidance establishes a three tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value of the Company’s debt is based on Level 3 inputs. |
Use of Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Derivative Financial Instruments | Use of Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company’s use of derivative instruments is limited to the utilization of interest rate swaps to manage interest rate risk exposure on existing and future liabilities and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and related costs associated with the Company’s operating and financial structure. The following table details the Company’s outstanding interest rate swaps as of September 30, 2018. All of the Company’s interest rate swaps are designated as qualifying cash flow hedges.
The fair value of the interest rate swaps outstanding as of September 30, 2018 and December 31, 2017 was as follows.
Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives designated as qualifying cash flow hedges will be reclassified to interest expense as interest payments are made on the Company's variable rate debt. The Company estimates that approximately $5.1 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense over the next 12 months. The table below presents the effect of cash flow hedge accounting and the location in the consolidated financial statements for the three and nine months ended September 30, 2018 and 2017.
Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of September 30, 2018, the Company had no derivatives that were in a net liability position by counterparty. Fair Value of Interest Rate Swaps The Company’s valuation of the interest rate swaps is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs including interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2018 and December 31, 2017, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The following sets forth the Company’s financial instruments that are accounted for at fair value on a recurring basis as of September 30, 2018 and December 31, 2017.
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Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Preferred Stock On June 11, 2018, the Company gave notice to redeem all 2,800,000 issued and outstanding shares of the 6.625% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”). The Company recognized a deemed dividend to the holders of the Series B Preferred Stock of approximately $2.7 million on the accompanying Consolidated Statements of Operations for the nine months ended September 30, 2018 related to redemption costs and the original issuance costs of the Series B Preferred Stock. On July 11, 2018, the Company redeemed all of the Series B Preferred Stock. The table below sets forth the Company’s outstanding preferred stock issuances as of September 30, 2018.
The tables below set forth the dividends attributable to the Company's outstanding preferred stock issuances during the nine months ended September 30, 2018 and the year ended December 31, 2017.
On October 10, 2018, the Company’s board of directors declared the Series C Preferred Stock dividends for the quarter ending December 31, 2018 at a quarterly rate of $0.4296875 per share. Common Stock The following table sets forth the terms of the Company’s at-the market (“ATM”) common stock offering program as of September 30, 2018.
The table below set forth the activity under the ATM common stock offering programs during the nine months ended September 30, 2018 and year ended December 31, 2017 (in thousands, except share data).
The table below sets forth the dividends attributable to the Company's outstanding shares of common stock that were declared during the nine months ended September 30, 2018 and the year ended December 31, 2017.
On October 10, 2018, the Company’s board of directors declared the common stock dividends for the months ending October 31, 2018, November 30, 2018 and December 31, 2018 at a monthly rate of $0.118333 per share of common stock. Restricted Stock-Based Compensation Restricted shares of common stock granted on January 5, 2018 to certain employees of the Company, subject to the recipient’s continued employment, will vest in four equal installments on January 1 of each year beginning in 2019. The following table summarizes activity related to the Company’s unvested restricted shares of common stock for the nine months ended September 30, 2018 and the year ended December 31, 2017.
The unrecognized compensation expense associated with the Company’s restricted shares of common stock at September 30, 2018 was approximately $3.1 million and is expected to be recognized over a weighted average period of approximately 2.5 years. The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and nine months ended September 30, 2018 and 2017.
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest | Noncontrolling Interest The table below summarizes the activity for noncontrolling interest in the Company for the nine months ended September 30, 2018 and the year ended December 31, 2017.
LTIP Units On March 12, 2018, the Company's board of directors appointed Michelle Dilley to serve as director of the Company. On March 12, 2018, Ms. Dilley was granted 3,930 LTIP units which, subject to Ms. Dilley's continued service, will vest on January 1, 2019. LTIP units granted on January 5, 2018 to non-employee, independent directors, subject to the recipient’s continued service, will vest on January 1, 2019. LTIP units granted on January 5, 2018 to certain senior executive officers and senior employees, subject to the recipient’s continued employment, will vest quarterly over four years, with the first vesting date having been March 31, 2018. Refer to Note 8 for a discussion of vested LTIP units granted on January 5, 2018 pursuant to the 2015 Outperformance Program (the “2015 OPP”). The fair value of the LTIP units at the date of grant was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the LTIP units are based on Level 3 inputs and are non-recurring fair value measurements. The table below sets forth the assumptions used in valuing such LTIP units granted during the nine months ended September 30, 2018 (excluding those vested LTIP units granted pursuant to the 2015 OPP; refer to Note 8 for details).
The following table summarizes activity related to the Company’s unvested LTIP units for the nine months ended September 30, 2018 and the year ended December 31, 2017.
The unrecognized compensation expense associated with the Company’s LTIP units at September 30, 2018 was approximately $5.7 million and is expected to be recognized over a weighted average period of approximately 2.5 years. The following table summarizes the fair value at vesting for the LTIP units that vested during the three and nine months ended September 30, 2018 and 2017.
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Equity Incentive Plan |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plan | Equity Incentive Plan At the Company’s annual meeting of stockholders held on April 30, 2018, the Company’s stockholders approved an amendment and restatement of the 2011 Plan, under which the Company may issue equity-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock awards and other awards based on shares of the Company’s common stock, such as LTIP units, to executive officers, directors, employees and other individuals providing bona fide services to or for the Company or its affiliates. The amendment increased the total number of shares of common stock authorized and reserved for issuance under the 2011 Plan by 3,000,000 shares to an aggregate of 6,642,461 shares, subject to certain adjustments as described in the 2011 Plan. Awards previously granted under the 2011 Plan will remain in effect pursuant to their terms. On January 5, 2018, the Company granted performance units approved by the compensation committee of the board of directors, under the 2011 Plan to certain key employees of the Company. The terms of the performance units granted on January 5, 2018 are substantially the same as the terms of the performance units granted on January 6, 2017 and March 8, 2016, except that the measuring period commences on January 1, 2018 and ends on December 31, 2020. The fair value of the performance units at the date of grant was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the performance units are based on Level 3 inputs and are non-recurring fair value measurements. The performance unit equity compensation expense is recognized into earnings ratably from the grant date over the respective vesting periods. The table below sets forth the assumptions used in valuing the performance units granted during the nine months ended September 30, 2018.
On January 1, 2018, the Company’s three year measurement period pursuant to the 2015 OPP concluded. It was determined that the Company's total stockholder return exceeded the threshold percentage and return hurdle and a pool of approximately $6.2 million was awarded to the participants. The compensation committee of the board of directors approved the issuance of 183,256 vested LTIP units and 53,722 vested shares of common stock (of which 15,183 shares of common stock were repurchased and retired) to the participants, all of which were issued on January 5, 2018. The unrecognized compensation expense associated with the Company's performance units at September 30, 2018 was approximately $6.1 million and is expected to be recognized over a weighted average period of approximately 2.3 years. Non-cash Compensation Expense The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, the 2015 OPP (performance units and the 2015 OPP, collectively the “Performance-based Compensation Plans”), and the Company’s director compensation for the three and nine months ended September 30, 2018 and 2017.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share During the three and nine months ended September 30, 2018 and 2017, there were 193,117, 196,871, 237,207 and 238,129, respectively, of unvested restricted shares of common stock on a weighted average basis that were considered participating securities. The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2018 and 2017.
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Commitments and Contingencies |
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Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance subject to deductible requirements. Management believes that the ultimate settlement of these actions will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company has letters of credit of approximately $5.6 million as of September 30, 2018 related to construction projects and certain other agreements. |
Subsequent Events |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events There were no recognized or non-recognized subsequent events. |
Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Real Estate Transactions, Policy [Policy Text Block] | Gain on the Sales of Rental Property, net The timing of the derecognition of a rental property and the corresponding recognition of gain on the sales of rental property, net is measured by various criteria related to the terms of the sale transaction, and if the Company has lost control of the property and the acquirer has gained control of the property after the transaction. If the derecognition criteria is met, the full gain is recognized. |
Quarterly Financial Information | Interim Financial Information The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended (the “2011 Plan”). All significant intercompany balances and transactions have been eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented. |
Reclassification | Certain prior year amounts have been reclassified to conform to the current year presentation. |
New Accounting Pronouncements | New Accounting Standards Adopted In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. This standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those years, with early adoption permitted, and the Company adopted this standard effective January 1, 2018 using the modified retrospective transition method. The adoption of this standard resulted in a cumulative effect adjustment of approximately $0.3 million recorded as an increase to cumulative dividends in excess of earnings and an increase to accumulated other comprehensive income as of January 1, 2018 in the accompanying Consolidated Statements of Equity. In May 2017, the FASB issued ASU 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting, which provides updated guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting under the topic. This standard is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, and the Company adopted this standard prospectively effective January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The new standard was issued as part of the new revenue standard (ASU 2014-09, as discussed below), and defines “in substance nonfinancial asset,” unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing sales of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. As a result of the new guidance, the guidance specific to real estate sales in Subtopic 360-20 was eliminated, and sales and partial sales of real estate assets will now be subject to the same derecognition model as all other nonfinancial assets. This standard is effective at the same time an entity adopts ASU 2014-09, which the Company adopted effective January 1, 2018. The Company adopted this standard effective January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard provides a screen to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This standard is effective for annual periods beginning after December 15, 2017 and interim periods within those periods, and the Company adopted this standard prospectively effective January 1, 2018. As a result, it is expected that the majority of the Company's acquisitions will be accounted for as asset acquisitions, whereas under the former guidance the majority of the Company's acquisitions had been accounted for as business combinations. The most significant difference between the two accounting models that impacts the Company's consolidated financial statements is that in an asset acquisition, property acquisition costs are generally a component of the consideration transferred to acquire a group of assets and are capitalized as a component of the cost of the assets, whereas in a business combination, property acquisition costs are expensed and not included as part of the consideration transferred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the changes during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This standard is effective for fiscal years beginning after December 15, 2017 and the Company adopted this standard effective January 1, 2018. As a result, the Company has included restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts on the accompanying Consolidated Statements of Cash Flows. The effects of this standard were applied retrospectively to all prior periods presented. For the nine months ended September 30, 2017, the effect of the change in accounting principle was a decrease in cash provided by operating activities of approximately $0.5 million and an increase in cash used in investing activities of approximately $5.6 million on the accompanying Consolidated Statements of Cash Flows. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for the annual periods beginning after December 31, 2017 and for annual periods and interim periods within those years, and the Company adopted this standard prospectively effective January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additionally, the new revenue guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard effective January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. New Accounting Standards Issued but not yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), and various subsequent ASU’s, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Topic 842 supersedes the previous leases standard, Topic 840, Leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 is expected to impact the Company’s consolidated financial statements as the Company has certain operating and land lease arrangements for which it is the lessee, which will result in the recording of a right of use asset and the related lease liability. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The new standard must be adopted using the modified retrospective transition method by recognizing a cumulative effect adjustment to the opening balance of cumulative dividends in excess of earnings, by either applying the new guidance at the beginning of the earliest comparative period or by applying the new guidance at the adoption date. The Company intends to adopt available practical expedients which allows the Company to 1) not reassess whether any expired or existing contracts are or contain leases; 2) not reassess the lease classification for any expired or existing leases; and 3) not reassess initial direct costs for any existing leases. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position or results of operations, and plans to adopt this standard effective January 1, 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which the Company adopted on January 1, 2018, as discussed in “New Accounting Standards Adopted” above. While lease contracts with customers, which constitute a vast majority of the Company’s revenues, are specifically excluded from the model’s scope, once the new leases standard under ASU 2016-02 is adopted by the Company, the new revenue standard may apply to executory costs and other components of revenue due under leases that are deemed to be non-lease components (such as common area maintenance and provision of utilities), even when the revenue for such activities is not separately stipulated in the lease. In that case, revenue from these items previously recognized on a straight-line basis under current lease guidance would be recognized under the new revenue guidance as the related services are delivered. As a result, while the total revenue recognized over time would not differ under the new guidance, the recognition pattern may be different. In July 2018, the FASB issued ASU 2018-11 which amends Topic 842, Leases, and provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance and both of the following are met: i) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same; and ii) the lease component, if accounted for separately, would be classified as an operating lease. Under this new expedient, if the non-lease components associated with the lease component are the predominant component of the combined component, a company should account for the combined component in accordance with Topic 606. Otherwise, the company should account for the combined component as an operating lease in accordance with Topic 842. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position or results of operations, and plans to adopt this standard effective January 1, 2019. |
Restricted cash and cash equivalents, policy | Restricted Cash Restricted cash may include tenant security deposits and cash held in escrow for real estate taxes and capital improvements as required in various mortgage note agreements. Restricted cash also may include amounts held by the Company’s transfer agent for preferred stock dividends that are distributed subsequent to period end. |
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Tables) |
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Schedule of Cash, Cash Equivalents and Restricted Cash | The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows.
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Rental Property (Tables) |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of rental property | The following table summarizes the components of rental property as of September 30, 2018 and December 31, 2017.
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Schedule of real estate properties acquired | The following table summarizes the acquisitions of the Company during the three and nine months ended September 30, 2018.
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Summary of allocation of the consideration paid for the acquired assets and liabilities in connection with the acquisition of buildings at the date of acquisition | The following table summarizes the allocation of the consideration paid at the date of acquisition during the nine months ended September 30, 2018 for the acquired assets and liabilities in connection with the acquisitions identified in the table above.
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Schedule of pro forma information for acquired properties | The table below sets forth the results of operations for the three and nine months ended September 30, 2018 for the buildings acquired during the nine months ended September 30, 2018 included in the Company’s Consolidated Statements of Operations from the date of acquisition.
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Impaired Assets to be Disposed of by Method Other than Sale [Table Text Block] | The following table summarizes the Company's loss on impairments for assets held and used during the nine months ended September 30, 2018.
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Schedule of Finite-Lived Intangible Assets and Below Market Leases | The following table sets forth the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017.
The following table sets forth the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three and nine months ended September 30, 2018 and 2017.
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table sets forth the amortization of deferred leasing intangibles over the next five calendar years beginning with 2018 as of September 30, 2018.
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Below Market Lease, Future Amortization Income | The following table sets forth the amortization of deferred leasing intangibles over the next five calendar years beginning with 2018 as of September 30, 2018.
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the mortgage notes payable, unsecured term loans and credit facility | The following table sets forth a summary of the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of September 30, 2018 and December 31, 2017.
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Interest Income and Interest Expense Disclosure [Table Text Block] | The table below sets forth the costs included in interest expense related to the Company's debt arrangements on the accompanying Consolidated Statement of Operations for the three and nine months ended September 30, 2018 and 2017.
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Schedule of aggregate carrying value of the debt and the corresponding estimate of fair value | The following table presents the aggregate principal outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of September 30, 2018 and December 31, 2017 (in thousands).
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Use of Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | The following table details the Company’s outstanding interest rate swaps as of September 30, 2018. All of the Company’s interest rate swaps are designated as qualifying cash flow hedges.
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Schedule of interest rate swaps | The fair value of the interest rate swaps outstanding as of September 30, 2018 and December 31, 2017 was as follows.
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Schedule of the location in the financial statements of the gain or loss recognized on interest rate swaps | The table below presents the effect of cash flow hedge accounting and the location in the consolidated financial statements for the three and nine months ended September 30, 2018 and 2017.
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Schedule of financial instruments accounted for at fair value on a recurring basis | The following sets forth the Company’s financial instruments that are accounted for at fair value on a recurring basis as of September 30, 2018 and December 31, 2017.
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Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | he table below sets forth the Company’s outstanding preferred stock issuances as of September 30, 2018.
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Schedule of dividends | The tables below set forth the dividends attributable to the Company's outstanding preferred stock issuances during the nine months ended September 30, 2018 and the year ended December 31, 2017.
On October 10, 2018, the Company’s board of directors declared the Series C Preferred Stock dividends for the quarter ending December 31, 2018 at a quarterly rate of $0.4296875 per share. The table below sets forth the dividends attributable to the Company's outstanding shares of common stock that were declared during the nine months ended September 30, 2018 and the year ended December 31, 2017.
On October 10, 2018, the Company’s board of directors declared the common stock dividends for the months ending October 31, 2018, November 30, 2018 and December 31, 2018 at a monthly rate of $0.118333 per share of common stock. |
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Schedule of stock sale activity | The following table sets forth the terms of the Company’s at-the market (“ATM”) common stock offering program as of September 30, 2018.
The table below set forth the activity under the ATM common stock offering programs during the nine months ended September 30, 2018 and year ended December 31, 2017 (in thousands, except share data).
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Schedule of activity related to unvested restricted stock awards | The following table summarizes activity related to the Company’s unvested restricted shares of common stock for the nine months ended September 30, 2018 and the year ended December 31, 2017.
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Schedule of vested restricted shares of common stock activity | The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and nine months ended September 30, 2018 and 2017.
|
Noncontrolling Interest (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activity | The table below summarizes the activity for noncontrolling interest in the Company for the nine months ended September 30, 2018 and the year ended December 31, 2017.
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Schedule of share-based payment award, LTIP unit awards, valuation assumptions | The table below sets forth the assumptions used in valuing such LTIP units granted during the nine months ended September 30, 2018 (excluding those vested LTIP units granted pursuant to the 2015 OPP; refer to Note 8 for details).
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Schedule of activity related to unvested LTIP unit awards | The following table summarizes activity related to the Company’s unvested LTIP units for the nine months ended September 30, 2018 and the year ended December 31, 2017.
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Schedule of vested LTIP unit award activity | The following table summarizes the fair value at vesting for the LTIP units that vested during the three and nine months ended September 30, 2018 and 2017.
|
Equity Incentive Plan (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of share-based payment award, performance unit awards, valuation assumptions | The table below sets forth the assumptions used in valuing the performance units granted during the nine months ended September 30, 2018.
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Summary of Equity Compensation Expense | The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, the 2015 OPP (performance units and the 2015 OPP, collectively the “Performance-based Compensation Plans”), and the Company’s director compensation for the three and nine months ended September 30, 2018 and 2017.
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2018 and 2017.
|
Organization and Description of Business (Details) ft² in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018
ft²
tenant
state
building
|
Dec. 31, 2017 |
|
Real Estate Properties [Line Items] | ||
Ownership interest in Operating Partnership (as a percent) | 96.40% | 95.90% |
Number of properties | 381 | |
Number of states in which the entity owned buildings | state | 37 | |
Area (in square feet) | ft² | 75.4 | |
Percentage of buildings leased to tenants | 95.40% | |
Number of tenants | tenant | 330 | |
Warehouse - Distribution buildings | ||
Real Estate Properties [Line Items] | ||
Number of properties | 313 | |
Light Manufacturing buildings | ||
Real Estate Properties [Line Items] | ||
Number of properties | 59 | |
Flex/Office Buildings | ||
Real Estate Properties [Line Items] | ||
Number of properties | 9 |
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 6,024 | $ 24,562 | ||
Restricted cash | 5,231 | 3,567 | ||
Cash and cash equivalents and restricted cash—end of period | $ 11,255 | $ 28,129 | $ 14,587 | $ 21,805 |
Summary of Significant Accounting Policies - Tenant Accounts Receivable (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Tenant Accounts Receivable, net | ||
Lease security deposits available in existing letters of credit | $ 14.6 | $ 12.7 |
Lease security deposits in restricted cash | 0.7 | 0.7 |
Lease security deposits included in tenant prepaid rent and security deposits on the Balance Sheet | 8.7 | 8.1 |
Trade Accounts Receivable | ||
Tenant Accounts Receivable, net | ||
Allowance for doubtful accounts | 0.6 | 0.1 |
Accrued Income Receivable | ||
Tenant Accounts Receivable, net | ||
Allowance for doubtful accounts | 0.2 | 0.2 |
Deferred Rent Receivables, Net | $ 30.7 | $ 24.7 |
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenue Recognition | ||||
Estimated amount of real estate taxes, which are the responsibility of tenants | $ 3.8 | $ 2.9 | $ 10.9 | $ 9.2 |
Summary of Significant Accounting Policies - Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Business Acquisition [Line Items] | |||||
Net income | $ 8,876,000 | $ 21,839,000 | $ 48,989,000 | $ 23,276,000 | |
State and local income, excise and franchise taxes | 100,000 | 300,000 | 600,000 | 700,000 | |
Liabilities for uncertain tax positions | 0 | 0 | $ 0 | ||
Real Estate Investment Trust | |||||
Business Acquisition [Line Items] | |||||
Net income | $ (22,000) | $ (200,000) | $ (100,000) | $ (400,000) |
Rental Property - Acquisitions - Results of Operations (Details) - Acquisitions 2018 [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
|
Business Acquisition [Line Items] | ||
Revenue | $ 7,122 | $ 11,156 |
Net income (loss) | $ 1,556 | $ 1,642 |
Use of Derivative Financial Instruments - FV of Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair value of the interest rate swaps outstanding | ||
Notional amount assets | $ 900,000 | $ 475,000 |
Fair value - assets | 17,649 | 6,079 |
Notional amount liabilities | 0 | 250,000 |
Fair Value - liabilities | $ 0 | $ (1,217) |
Use of Derivative Financial Instruments - FV on Recurring Basis (Details) - Interest Rate Swaps - Fair value on recurring basis - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets (liabilities): | ||
Interest rate swaps-Asset | $ 17,649 | $ 6,079 |
Interest rate swaps-Liability | 0 | (1,217) |
Level 1 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | 0 | 0 |
Interest rate swaps-Liability | 0 | 0 |
Level 2 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | 17,649 | 6,079 |
Interest rate swaps-Liability | 0 | (1,217) |
Level 3 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | 0 | 0 |
Interest rate swaps-Liability | $ 0 | $ 0 |
Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 10, 2018 |
Jun. 11, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Jul. 11, 2018 |
|
Class of Stock [Line Items] | |||||||||||||
Preferred Stock Redemption Premium | $ 0 | $ 0 | $ 2,661 | $ 0 | |||||||||
Preferred stock, shares authorized | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Series B Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock Redeemed or Called During Period, Shares | 2,800,000 | ||||||||||||
Dividend rate (as a percent) | 6.625% | ||||||||||||
Preferred Stock Redemption Premium | $ 2,700 | ||||||||||||
Preferred Stock, Redemption Price Per Share | $ 25.00 | ||||||||||||
Preferred stock, shares issued | 0 | 2,800,000 | 0 | 2,800,000 | |||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 0.00 | $ 25.00 | $ 0.00 | $ 25.00 | |||||||||
Number of shares outstanding | 2,800,000 | 0 | 2,800,000 | 0 | 2,800,000 | ||||||||
Preferred Stock, Dividends Per Share, Declared | $ 0.0460069 | $ 0.4140625 | $ 0.4140625 | $ 0.4140625 | $ 0.4140625 | $ 0.4140625 | $ 0.4140625 | $ 0.8741319 | $ 1.6562500 | ||||
Dividends Payable, Date Declared | Jul. 11, 2018 | Apr. 10, 2018 | Feb. 14, 2018 | Nov. 02, 2017 | Jul. 31, 2017 | May 01, 2017 | Feb. 15, 2017 | ||||||
Dividends Payable, Date to be Paid | Oct. 01, 2018 | Jul. 02, 2018 | Apr. 02, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | ||||||
Series C Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividend rate (as a percent) | 6.875% | ||||||||||||
Preferred stock, shares issued | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25.00 | $ 25.00 | $ 25.00 | $ 25.00 | |||||||||
Number of shares outstanding | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||
Preferred Stock, Dividends Per Share, Declared | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 1.2890625 | $ 1.7187500 | ||||
Dividends Payable, Date Declared | Jul. 11, 2018 | Apr. 10, 2018 | Feb. 14, 2018 | Nov. 02, 2017 | Jul. 31, 2017 | May 01, 2017 | Feb. 15, 2017 | ||||||
Dividends Payable, Date to be Paid | Oct. 01, 2018 | Jul. 02, 2018 | Apr. 02, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | ||||||
Series C Preferred Stock | Scenario, Forecast [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Dividends Per Share, Declared | $ 0.4296875 |
Equity - Common Stock Dividends (Details) - Common Stock - $ / shares |
9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 15, 2018 |
Oct. 10, 2018 |
Sep. 17, 2018 |
Aug. 15, 2018 |
Jul. 16, 2018 |
Jul. 11, 2018 |
Jun. 15, 2018 |
May 15, 2018 |
Apr. 16, 2018 |
Apr. 10, 2018 |
Mar. 15, 2018 |
Feb. 15, 2018 |
Jan. 16, 2018 |
Dec. 15, 2017 |
Nov. 15, 2017 |
Nov. 02, 2017 |
Oct. 16, 2017 |
Sep. 15, 2017 |
Aug. 15, 2017 |
Jul. 31, 2017 |
Jul. 17, 2017 |
Jun. 15, 2017 |
May 15, 2017 |
May 01, 2017 |
Apr. 17, 2017 |
Mar. 15, 2017 |
Feb. 15, 2017 |
Nov. 02, 2016 |
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.117500 | $ 0.117500 | $ 0.117500 | $ 0.117500 | $ 0.117500 | $ 0.117500 | $ 0.116667 | $ 0.116667 | $ 0.116667 | $ 0.116667 | $ 0.116667 | $ 0.116667 | $ 1.064997 | $ 1.405002 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.117500 | $ 0.117500 | $ 0.116667 | $ 0.116667 | $ 1.064997 | $ 1.405002 | |||||||||||||||||||||
Scenario, Forecast [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.118333 | |||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.118333 |
Noncontrolling Interest - LTIP Units (Details) - LTIP Units - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation costs | $ 5,700 | $ 5,700 | |||
Unrecognized compensation costs, period for recognition | 2 years 5 months 20 days | ||||
Units | |||||
Unvested at beginning of period (in shares) | 300,307 | 403,423 | 403,423 | ||
Granted (in shares) | 324,802 | 126,239 | |||
Vested (in shares) | (30,949) | (44,942) | (342,940) | (157,816) | (229,355) |
Forfeited (in shares) | 0 | 0 | |||
Unvested at end of period (in shares) | 282,169 | 282,169 | 300,307 | ||
Fair value of shares vested | $ 851 | $ 1,235 | $ 9,002 | $ 4,146 |
Equity Incentive Plan - Performance Plan Assumptions (Details) - Performance shares - Awarded in 2018 $ in Thousands |
Jan. 05, 2018
USD ($)
|
---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 22.00% |
Expected dividend yield | 6.00% |
Risk-free interest rate | 2.09% |
Fair value of performance units grant (in thousands) | $ 5,456 |
Equity Incentive Plan - Equity Non-cash Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Common Stock | ||||
Equity Incentive Plan | ||||
Number of days of average trailing stock price used to calculate number of shares of common stock granted | 10 days | |||
General and Administrative Expenses | ||||
Equity Incentive Plan | ||||
Share-based compensation | $ 2,236 | $ 2,384 | $ 6,671 | $ 7,159 |
General and Administrative Expenses | Independent Director | ||||
Equity Incentive Plan | ||||
Share-based compensation | 99 | 87 | 285 | 265 |
General and Administrative Expenses | Restricted stock | ||||
Equity Incentive Plan | ||||
Share-based compensation | 406 | 594 | 1,269 | 1,776 |
General and Administrative Expenses | LTIP Units | ||||
Equity Incentive Plan | ||||
Share-based compensation | 893 | 1,167 | 2,654 | 3,508 |
General and Administrative Expenses | Performance shares | ||||
Equity Incentive Plan | ||||
Share-based compensation | $ 838 | $ 536 | $ 2,463 | $ 1,610 |
Earnings Per Share (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Participating securities | 193,117 | 237,207 | 196,871 | 238,129 |
Commitments and Contingencies - Agreements (Details) $ in Millions |
Sep. 30, 2018
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit outstanding | $ 5.6 |
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