Maryland | 001-34995 | 27-1712193 |
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
3284 Northside Parkway NW, Suite 150, Atlanta, Georgia | 30327 |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant's telephone number, including area code: (770) 818-4100 |
_____________________ (Former name or former address, if changed since last report) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
PREFERRED APARTMENT COMMUNITIES, INC. (Registrant) |
Date: February 26, 2018 | By: | /s/ Jeffrey R. Sprain |
Jeffrey R. Sprain | ||
Senior Vice President, General Counsel and Secretary |
Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2017 | 2016 | % change | 2017 | 2016 | % change | ||||||||||||||||||
Revenues | $ | 81,652,168 | $ | 58,991,853 | 38.4 | % | $ | 294,004,615 | $ | 200,118,915 | 46.9 | % | |||||||||||
Per share data: | |||||||||||||||||||||||
Net income (loss) (1) | $ | (0.60 | ) | $ | (0.66 | ) | — | $ | (1.13 | ) | $ | (2.11 | ) | — | |||||||||
FFO (2) | $ | 0.31 | $ | 0.24 | 29.2 | % | $ | 1.32 | $ | 0.90 | 46.7 | % | |||||||||||
Core FFO (2) | $ | 0.36 | $ | 0.32 | 12.5 | % | $ | 1.47 | $ | 1.31 | 12.2 | % | |||||||||||
Dividends (3) | $ | 0.25 | $ | 0.22 | 13.6 | % | $ | 0.94 | $ | 0.8175 | 15.0 | % | |||||||||||
• | For the year 2017, our Core FFO payout ratio to our Common Stockholders and Unitholders was approximately 66.7% and our AFFO payout ratio to Common Stockholders and Unitholders was approximately 83.6%. For the fourth quarter 2017, our Core FFO payout ratio to our Common Stockholders and Unitholders was approximately 71.1% and our AFFO payout ratio to Common Stockholders and Unitholders was approximately 81.9%. (A) |
• | For the year 2017, our Core FFO payout ratio (before the deduction of preferred dividends) to our preferred stockholders was approximately 57.0% and our AFFO payout ratio (before the deduction of preferred dividends) to our preferred stockholders was approximately 62.4%. For the fourth quarter 2017, our Core FFO payout ratio (before the deduction of preferred dividends) to our preferred stockholders was approximately 56.1% and our AFFO payout ratio (before the deduction of preferred dividends) to our preferred stockholders was approximately 59.5%. (A) |
• | We issued approximately 3.0 million shares of Common Stock during the fourth quarter 2017 and approximately 12.1 million shares of Common Stock during the year ended December 31, 2017. |
• | At December 31, 2017, the market value of our common stock was $20.25. A hypothetical investment in our Common Stock in our initial public offering on April 5, 2011, assuming the reinvestment of all dividends and no transaction costs, would have resulted in an average annual return of approximately 31.2% through December 31, 2017. |
• | As of December 31, 2017, our total assets were approximately $3.3 billion compared to approximately $2.4 billion as of December 31, 2016, an increase of approximately $0.8 billion, or approximately 34.3%. This growth was driven primarily by the acquisition of 22 real estate properties (less the sale of 3 properties) and an increase of approximately $53.9 million of the funded amount of our real estate loan investment portfolio since December 31, 2016. |
• | As of December 31, 2017, the average age of our multifamily communities was approximately 6.3 years, which we believe is among the youngest in the multifamily REIT industry. |
• | At December 31, 2017, our leverage, as measured by the ratio of our debt to the undepreciated book value of our total assets, was approximately 54.9%. |
• | Cash flow from operations for the year ended December 31, 2017 was approximately $86.3 million, an increase of approximately $24.6 million, or 39.9%, compared to approximately $61.7 million for the year ended December 31, 2016. Cash flow from operations for the quarter ended December 31, 2017 was approximately $15.8 million, an increase of approximately $8.0 million, or 103.0%, compared to approximately $7.8 million for the quarter ended December 31, 2016. |
• | For the quarter ended December 31, 2017, our physical occupancy for established multifamily communities was 95.9%. |
• | Hurricane Harvey caused property damage at our Stone Creek multifamily community located in Port Arthur, Texas which required us to write off real estate assets with a net book value of approximately $6.9 million. Property damage and lost rental income for this asset are covered under the National Flood Insurance Program (NFIP) and, residually, under various provisions of our master policy. Therefore, we simultaneously recorded an insurance receivable of the same amount, resulting in no loss being recorded in the Income Statement from the write-off. At December 31, 2017, we had received approximately $4.7 million of insurance proceeds and expect to receive the remainder during the first quarter 2018. Remediation and restoration is progressing very well, and we anticipate full completion by May of 2018. Together with Hurricane Irma, we sustained other smaller property damages, lost revenues and higher miscellaneous operating expenses at certain of our other multifamily communities and grocery-anchored shopping centers in Texas and Florida. For the three-month period and year ended December 31, 2017, rental revenues decreased $273,000 and $387,000, respectively due to lost rents. We expect to record a full recovery of these lost revenues upon settlement with our insurance carrier and receipt of funds in 2018. In addition to lost rents, our Income Statement reflects other related costs such as insurance deductibles, smaller property damages that did not exceed our property insurance deductibles, and other storm remediation expenses from the two storms. These costs combined totaled $408,000 and $511,000 for the three-month and twelve-month periods ended December 31, 2017, respectively. |
Property | Location (MSA) | Units | Leasable square feet | ||||||
Multifamily communities: | |||||||||
Overlook at Crosstown Walk | Tampa, FL | 180 | n/a | ||||||
Colony at Centerpointe | Richmond, VA | 255 | n/a | ||||||
Student housing properties: (1) | |||||||||
Stadium Village | Atlanta, GA | 198 | n/a | ||||||
Ursa | Waco, TX | 250 | n/a | ||||||
Grocery-anchored shopping centers: | |||||||||
Crossroads Market | Naples, FL | n/a | 126,895 | ||||||
Roswell Wieuca Shopping Center | Atlanta, GA | n/a | 74,370 | ||||||
Office buildings: | |||||||||
Westridge at La Cantera | San Antonio, TX | n/a | 258,000 | ||||||
(1) The Company acquired and owns an approximate 99% equity interest in a joint venture which owns both Stadium Village and Ursa. | |||||||||
Owned as of December 31, 2017 | Potential additions from real estate loan investment portfolio (1) | Potential total | ||||||||
Multifamily communities: | ||||||||||
Properties | 30 | 15 | 45 | |||||||
Units | 9,521 | 4,656 | 14,177 | |||||||
Grocery-anchored shopping centers: | ||||||||||
Properties | 39 | — | (2) | 39 | ||||||
Gross leasable area (square feet) | 4,055,461 | — | 4,055,461 | |||||||
Student housing properties: | ||||||||||
Properties | 4 | 6 | 10 | |||||||
Units | 891 | 1,457 | 2,348 | |||||||
Beds | 2,950 | 4,145 | 7,095 | |||||||
Office buildings: | ||||||||||
Properties | 4 | — | 4 | |||||||
Rentable square feet | 1,352,000 | — | 1,352,000 | |||||||
(1) We evaluate each project individually and we make no assurance that we will acquire any of the underlying properties from our real estate loan investment portfolio. | ||||||||||
(2) Effective as of September 29, 2017, we negotiated the cancellation of the purchase option on our real estate investment loan supporting the Dawsonville grocery-anchored shopping center in exchange for a fee of $250,000. |
Stoneridge Farms at Hunt Club | Lake Cameron | Avenues at Cypress | ||
Vineyards | Aster at Lely | Avenues at Northpointe | ||
McNeil Ranch | Venue at Lakewood Ranch | Stone Rise | ||
Citi Lakes | Lenox Portfolio |
Established Communities' Same Store Net Operating Income | |||||||||||||||
Three months ended: | |||||||||||||||
12/31/2017 | 12/31/2016 | $ change | % change | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 12,148,959 | $ | 11,717,625 | $ | 431,334 | 3.7 | % | |||||||
Other property revenues | 1,283,463 | 1,261,312 | 22,151 | 1.8 | % | ||||||||||
Total revenues | 13,432,422 | 12,978,937 | 453,485 | 3.5 | % | ||||||||||
Operating expenses: | |||||||||||||||
Property operating and maintenance | 1,678,366 | 1,635,614 | 42,752 | 2.6 | % | ||||||||||
Payroll | 1,121,795 | 1,063,143 | 58,652 | 5.5 | % | ||||||||||
Property management fees | 541,774 | 529,252 | 12,522 | 2.4 | % | ||||||||||
Real estate taxes | 1,838,601 | 1,870,629 | (32,028 | ) | (1.7 | )% | |||||||||
Other | 560,977 | 558,314 | 2,663 | 0.5 | % | ||||||||||
Total operating expenses | 5,741,513 | 5,656,952 | 84,561 | 1.5 | % | ||||||||||
Same store net operating income | $ | 7,690,909 | $ | 7,321,985 | $ | 368,924 | 5.0 | % |
Reconciliation of Established Communities' Same Store Net Operating Income (NOI) to Net Income (Loss) | ||||||||
Three months ended: | ||||||||
12/31/2017 | 12/31/2016 | |||||||
Same store net operating income | $ | 7,690,909 | $ | 7,321,985 | ||||
Add: | ||||||||
Non-same-store property revenues | 53,401,077 | 33,822,511 | ||||||
Less: | ||||||||
Non-same-store property operating expenses | 18,709,158 | 12,717,326 | ||||||
Property net operating income | 42,382,828 | 28,427,170 | ||||||
Add: | ||||||||
Interest revenue on notes receivable | 9,586,308 | 7,856,232 | ||||||
Interest revenue on related party notes receivable | 5,232,361 | 4,334,173 | ||||||
Less: | ||||||||
Equity stock compensation | 862,617 | 656,336 | ||||||
Depreciation and amortization | 34,589,849 | 23,158,734 | ||||||
Interest expense | 19,383,026 | 13,595,639 | ||||||
Acquisition costs | — | 1,661,679 | ||||||
Management fees | 5,701,879 | 4,153,297 | ||||||
Insurance, professional fees and other | 2,133,742 | 1,501,995 | ||||||
Contingent asset management and general and administrative expense fees | (727,756 | ) | (127,322 | ) | ||||
Net income (loss) | $ | (4,741,860 | ) | $ | (3,982,783 | ) |
Established Communities' Same Store Net Operating Income | |||||||||||||||
Year ended: | |||||||||||||||
12/31/2017 | 12/31/2016 | $ change | % change | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 47,582,973 | $ | 46,794,009 | $ | 788,964 | 1.7 | % | |||||||
Other property revenues | 5,165,554 | 5,152,932 | 12,622 | 0.2 | % | ||||||||||
Total revenues | 52,748,527 | 51,946,941 | 801,586 | 1.5 | % | ||||||||||
Operating expenses: | |||||||||||||||
Property operating and maintenance | 7,122,037 | 6,989,096 | 132,941 | 1.9 | % | ||||||||||
Payroll | 4,543,955 | 4,393,991 | 149,964 | 3.4 | % | ||||||||||
Property management fees | 2,122,317 | 2,087,421 | 34,896 | 1.7 | % | ||||||||||
Real estate taxes | 7,508,945 | 7,784,122 | (275,177 | ) | (3.5 | )% | |||||||||
Other | 2,243,982 | 2,166,966 | 77,016 | 3.6 | % | ||||||||||
Total operating expenses | 23,541,236 | 23,421,596 | 119,640 | 0.5 | % | ||||||||||
Same store net operating income | $ | 29,207,291 | $ | 28,525,345 | $ | 681,946 | 2.4 | % |
Reconciliation of Established Communities' Same Store Net Operating Income (NOI) to Net Income (Loss) | ||||||||
Year ended: | ||||||||
12/31/2017 | 12/31/2016 | |||||||
Same store net operating income | $ | 29,207,291 | $ | 28,525,345 | ||||
Add: | ||||||||
Non-same-store property revenues | 184,354,229 | 104,686,382 | ||||||
Less: | ||||||||
Non-same-store property operating expenses | 67,789,947 | 40,520,336 | ||||||
Property net operating income | 145,771,573 | 92,691,391 | ||||||
Add: | ||||||||
Interest revenue on notes receivable | 35,697,982 | 28,840,857 | ||||||
Interest revenue on related party notes receivable | 21,203,877 | 14,644,736 | ||||||
Less: | ||||||||
Equity stock compensation | 3,470,284 | 2,524,042 | ||||||
Depreciation and amortization | 116,776,809 | 78,139,798 | ||||||
Interest expense | 67,468,042 | 44,284,144 | ||||||
Acquisition costs | 14,002 | 8,547,543 | ||||||
Management fees | 20,226,396 | 13,637,458 | ||||||
Insurance, professional fees and other | 4,527,504 | 4,744,486 | ||||||
Gain on sale of real estate | 37,635,014 | 4,271,506 | ||||||
Loss on extinguishment of debt | (888,428 | ) | — | |||||
Contingent asset management and general and administrative expense fees | (1,729,620 | ) | (1,585,567 | ) | ||||
Net income (loss) | $ | 28,666,601 | $ | (9,843,414 | ) |
Consolidated Statements of Operations | S-2 | |||
Reconciliations of FFO, Core FFO, and AFFO to Net Income (Loss) Attributable to Common Stockholders | S-3 | |||
Notes to Reconciliation of FFO, Core FFO, and AFFO to Net Income (Loss) Attributable to Common Stockholders | S-5 | |||
Consolidated Balance Sheets | S-7 | |||
Consolidated Statements of Cash Flows | S-8 | |||
Real Estate Loan Investment Portfolio | S-9 | |||
Mortgage Indebtedness | S-12 | |||
Multifamily Communities | S-16 | |||
Capital Expenditures | S-17 | |||
Grocery-Anchored Shopping Center Portfolio | S-18 | |||
Office Building Portfolio | S-19 | |||
Definitions of Non-GAAP Measures | S-20 |
Preferred Apartment Communities, Inc. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended December 31, | Year ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues: | ||||||||||||||||
Rental revenues | $ | 56,784,788 | $ | 40,789,230 | $ | 200,461,750 | $ | 137,330,774 | ||||||||
Other property revenues | 10,048,711 | 6,012,218 | 36,641,006 | 19,302,548 | ||||||||||||
Interest income on loans and notes receivable | 9,586,308 | 7,856,232 | 35,697,982 | 28,840,857 | ||||||||||||
Interest income from related parties | 5,232,361 | 4,334,173 | 21,203,877 | 14,644,736 | ||||||||||||
Total revenues | 81,652,168 | 58,991,853 | 294,004,615 | 200,118,915 | ||||||||||||
Operating expenses: | ||||||||||||||||
Property operating and maintenance | 8,265,541 | 6,098,507 | 29,903,092 | 19,981,640 | ||||||||||||
Property salary and benefits | 3,621,760 | 2,710,241 | 13,271,603 | 10,398,711 | ||||||||||||
Property management fees | 2,313,179 | 1,671,894 | 8,329,182 | 5,980,735 | ||||||||||||
Real estate taxes | 7,991,372 | 6,137,235 | 31,281,156 | 21,594,369 | ||||||||||||
General and administrative | 1,628,653 | 1,302,262 | 6,489,736 | 4,557,990 | ||||||||||||
Equity compensation to directors and executives | 862,617 | 656,336 | 3,470,284 | 2,524,042 | ||||||||||||
Depreciation and amortization | 34,589,849 | 23,158,734 | 116,776,809 | 78,139,798 | ||||||||||||
Acquisition and pursuit costs | — | 1,661,679 | 14,002 | 8,547,543 | ||||||||||||
Asset management and general and administrative expense | ||||||||||||||||
fees to related party | 5,701,879 | 4,153,297 | 20,226,396 | 13,637,458 | ||||||||||||
Insurance, professional fees, and other expenses | 2,763,908 | 1,956,134 | 6,583,918 | 6,172,972 | ||||||||||||
Total operating expenses | 67,738,758 | 49,506,319 | 236,346,178 | 171,535,258 | ||||||||||||
Contingent asset management and general and administrative | ||||||||||||||||
expense fees | (727,756 | ) | (127,322 | ) | (1,729,620 | ) | (1,585,567 | ) | ||||||||
Net operating expenses | 67,011,002 | 49,378,997 | 234,616,558 | 169,949,691 | ||||||||||||
Operating income | 14,641,166 | 9,612,856 | 59,388,057 | 30,169,224 | ||||||||||||
Interest expense | 19,383,026 | 13,595,639 | 67,468,042 | 44,284,144 | ||||||||||||
Loss on extinguishment of debt | — | — | 888,428 | — | ||||||||||||
Net income (loss) before gain on sale of real estate | (4,741,860 | ) | (3,982,783 | ) | (8,968,413 | ) | (14,114,920 | ) | ||||||||
Gain on sale of real estate | — | — | 37,635,014 | 4,271,506 | ||||||||||||
Net income (loss) | (4,741,860 | ) | (3,982,783 | ) | 28,666,601 | (9,843,414 | ) | |||||||||
Consolidated net (income) loss attributable to non-controlling interests | 111,403 | 135,246 | (985,605 | ) | 310,291 | |||||||||||
Net income (loss) attributable to the Company | (4,630,457 | ) | (3,847,537 | ) | 27,680,996 | (9,533,123 | ) | |||||||||
Dividends declared to preferred stockholders | (17,609,084 | ) | (12,738,922 | ) | (63,651,265 | ) | (41,080,645 | ) | ||||||||
Earnings attributable to unvested restricted stock | (3,051 | ) | (3,409 | ) | (14,794 | ) | (15,843 | ) | ||||||||
Net loss attributable to common stockholders | $ | (22,242,592 | ) | $ | (16,589,868 | ) | $ | (35,985,063 | ) | $ | (50,629,611 | ) | ||||
Net loss per share of Common Stock available to common stockholders, | ||||||||||||||||
basic and diluted | $ | (0.60 | ) | $ | (0.66 | ) | $ | (1.13 | ) | $ | (2.11 | ) | ||||
Weighted average number of shares of Common Stock outstanding, | ||||||||||||||||
basic and diluted | 37,205,390 | 25,210,069 | 31,926,472 | 23,969,494 |
Reconciliation of FFO, Core FFO, and AFFO | |||||||||||
to Net Income (Loss) Attributable to Common Stockholders (A) | |||||||||||
Three months ended December 31, | |||||||||||
2017 | 2016 | ||||||||||
Net loss attributable to common stockholders (See note 1) | $ | (22,242,592 | ) | $ | (16,589,868 | ) | |||||
Add: | Depreciation of real estate assets | 24,940,998 | 16,890,027 | ||||||||
Amortization of acquired real estate intangible assets and deferred leasing costs | 9,385,732 | 6,123,722 | |||||||||
Loss attributable to non-controlling interests (See note 2) | (111,403 | ) | (135,246 | ) | |||||||
FFO | 11,972,735 | 6,288,635 | |||||||||
Add: | Acquisition and pursuit costs | — | 1,661,679 | ||||||||
Loan cost amortization on acquisition term note (See note 3) | 29,193 | 26,938 | |||||||||
Amortization of loan coordination fees paid to the Manager (See note 4) | 420,660 | 317,997 | |||||||||
Weather-related property operating losses (See note 5) | 681,136 | — | |||||||||
Payment of costs related to property refinancing (See note 6) | 683,518 | — | |||||||||
Core FFO | 13,787,242 | 8,295,249 | |||||||||
Add: | Non-cash equity compensation to directors and executives | 862,617 | 656,336 | ||||||||
Amortization of loan closing costs (See note 7) | 793,306 | 818,685 | |||||||||
Depreciation/amortization of non-real estate assets | 263,119 | 144,985 | |||||||||
Net loan fees received (See note 8) | 17,810 | 497,277 | |||||||||
Accrued interest income received (See note 9) | 4,696,934 | — | |||||||||
Non-cash dividends on Series M Preferred Stock | 29,785 | — | |||||||||
Amortization of lease inducements (See note 10) | 200,344 | — | |||||||||
Less: | Non-cash loan interest income (See note 8) | (4,556,558 | ) | (4,227,953 | ) | ||||||
Cash paid for loan closing costs | (27,917 | ) | (215,258 | ) | |||||||
Amortization of acquired above and below market lease intangibles | |||||||||||
and straight-line rental revenues (See note 11) | (2,678,503 | ) | (743,550 | ) | |||||||
Amortization of deferred revenues (See note 12) | (398,507 | ) | — | ||||||||
Normally recurring capital expenditures and leasing costs (See note 13) | (1,026,037 | ) | (617,237 | ) | |||||||
AFFO | $ | 11,963,635 | $ | 4,608,534 | |||||||
Common Stock dividends and distributions to Unitholders declared: | |||||||||||
Common Stock dividends | $ | 9,575,975 | $ | 5,740,616 | |||||||
Distributions to Unitholders (See note 2) | 221,184 | 194,957 | |||||||||
Total | $ | 9,797,159 | $ | 5,935,573 | |||||||
Common Stock dividends and Unitholder distributions per share | $ | 0.25 | $ | 0.22 | |||||||
FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.31 | $ | 0.24 | |||||||
Core FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.36 | $ | 0.32 | |||||||
AFFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.31 | $ | 0.18 | |||||||
Weighted average shares of Common Stock and Units outstanding: (A) | |||||||||||
Basic: | |||||||||||
Common Stock | 37,205,390 | 25,210,069 | |||||||||
Class A Units | 895,112 | 886,168 | |||||||||
Common Stock and Class A Units | 38,100,502 | 26,096,237 | |||||||||
Diluted Common Stock and Class A Units (B) | 43,355,215 | 27,009,119 | |||||||||
Actual shares of Common Stock outstanding, including 12,204 and 15,498 unvested shares | |||||||||||
of restricted Common Stock at December 31, 2017 and 2016, respectively | 38,576,926 | 26,513,690 | |||||||||
Actual Class A Units outstanding at December 31, 2017 and 2016, respectively. | 884,735 | 886,168 | |||||||||
Total | 39,461,661 | 27,399,858 | |||||||||
(A) Units and Unitholders refer to Class A Units in our Operating Partnership, or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 2.35% weighted average non-controlling interest in the Operating Partnership for the three-month period ended December 31, 2017. | |||||||||||
(B) Since our Core FFO and AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. |
Reconciliation of FFO, Core FFO, and AFFO | |||||||||||
to Net Income (Loss) Attributable to Common Stockholders (A) | |||||||||||
Year ended December 31, | |||||||||||
2017 | 2016 | ||||||||||
Net loss attributable to common stockholders (See note 1) | $ | (35,985,063 | ) | $ | (50,629,611 | ) | |||||
Add: | Depreciation of real estate assets | 85,285,385 | 55,896,381 | ||||||||
Amortization of acquired real estate intangible assets and deferred leasing costs | 30,693,340 | 21,700,590 | |||||||||
Less: | Gain on sale of real estate | (37,635,014 | ) | (4,271,506 | ) | ||||||
Income (loss) attributable to non-controlling interests (See note 2) | 985,605 | (310,291 | ) | ||||||||
FFO | 43,344,253 | 22,385,563 | |||||||||
Add: | Acquisition and pursuit costs | 14,002 | 8,547,543 | ||||||||
Loan cost amortization on acquisition term note (See note 3) | 128,339 | 166,682 | |||||||||
Amortization of loan coordination fees paid to the Manager (See note 4) | 1,599,151 | 869,651 | |||||||||
Mortgage loan refinancing and extinguishment costs (See note 6) | 1,741,573 | — | |||||||||
Costs incurred from extension of management agreement with advisor (See note 14) | — | 421,387 | |||||||||
Weather-related property operating losses (See note 5) | 897,872 | — | |||||||||
Contingent fees paid on sale of real estate (See note 15) | 386,570 | — | |||||||||
Core FFO | 48,111,760 | 32,390,826 | |||||||||
Add: | Non-cash equity compensation to directors and executives | 3,470,284 | 2,524,042 | ||||||||
Amortization of loan closing costs (See note 7) | 3,549,825 | 2,559,096 | |||||||||
Depreciation/amortization of non-real estate assets | 798,084 | 542,827 | |||||||||
Net loan fees received (See note 8) | 1,314,194 | 1,872,105 | |||||||||
Accrued interest income received (See note 9) | 11,812,531 | 6,875,957 | |||||||||
Non-cash dividends on Series M Preferred Stock | 62,878 | — | |||||||||
Amortization of lease inducements (See note 10) | 437,381 | — | |||||||||
Less: | Non-cash loan interest income (See note 8) | (18,063,613 | ) | (14,685,707 | ) | ||||||
Cash paid for loan closing costs | (27,917 | ) | (228,534 | ) | |||||||
Amortization of acquired above and below market lease intangibles | |||||||||||
and straight-line rental revenues (See note 11) | (8,175,688 | ) | (2,458,342 | ) | |||||||
Amortization of deferred revenues (See note 12) | (855,323 | ) | — | ||||||||
Normally recurring capital expenditures and leasing costs (See note 13) | (4,057,857 | ) | (2,797,360 | ) | |||||||
AFFO | $ | 38,376,539 | $ | 26,594,910 | |||||||
Common Stock dividends and distributions to Unitholders declared: | |||||||||||
Common Stock dividends | $ | 31,244,265 | $ | 19,940,730 | |||||||
Distributions to Unitholders (See note 2) | 843,488 | 671,250 | |||||||||
Total | $ | 32,087,753 | $ | 20,611,980 | |||||||
Common Stock dividends and Unitholder distributions per share | $ | 0.94 | $ | 0.8175 | |||||||
FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 1.32 | $ | 0.90 | |||||||
Core FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 1.47 | $ | 1.31 | |||||||
AFFO per weighted average basic share of Common Stock and Unit outstanding | $ | 1.17 | $ | 1.07 | |||||||
Weighted average shares of Common Stock and Units outstanding: (A) | |||||||||||
Basic: | |||||||||||
Common Stock | 31,926,472 | 23,969,494 | |||||||||
Class A Units | 906,076 | 819,197 | |||||||||
Common Stock and Class A Units | 32,832,548 | 24,788,691 | |||||||||
Diluted Common Stock and Class A Units (B) | 36,938,961 | 26,502,136 | |||||||||
Actual shares of Common Stock outstanding, including 12,204 and 15,498 unvested shares | |||||||||||
of restricted Common Stock at December 31, 2017 and 2016, respectively | 38,576,926 | 26,513,690 | |||||||||
Actual Class A Units outstanding at December 31, 2017 and 2016, respectively. | 884,735 | 886,168 | |||||||||
Total | 39,461,661 | 27,399,858 | |||||||||
(A) Units and Unitholders refer to Class A Units in our Operating Partnership, or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 2.76% weighted average non-controlling interest in the Operating Partnership for the twelve-month period ended December 31, 2017. | |||||||||||
(B) Since our Core FFO and AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. |
1) | Rental and other property revenues and property operating expenses for the quarter and year ended December 31, 2017 include activity for the 10 multifamily communities, three student housing projects, one office building and eight grocery-anchored shopping centers acquired during 2017 only from their respective dates of acquisition. In addition, the fourth quarter 2017 period includes a full quarter of activity for the six multifamily communities, 17 grocery-anchored shopping centers, one student housing property and three office buildings acquired during 2016. Rental and other property revenues and expenses for the quarter and year ended December 31, 2016 include activity for the 2016 acquisitions only from their respective dates of acquisition during 2016. |
2) | Non-controlling interests in our Operating Partnership consisted of a total of 884,735 Class A Units as of December 31, 2017. Included in this total are 419,228 Class A Units which were granted as partial consideration to the seller in conjunction with the seller's contribution to us on February 29, 2016 of the Wade Green grocery-anchored shopping center. The remaining Class A units were awarded primarily to our key executive officers. The Class A Units are apportioned a percentage of our financial results as non-controlling interests. The weighted average ownership percentage of these holders of Class A Units was calculated to be 2.35% and 3.40% for the three-month periods ended December 31, 2017 and 2016, respectively and 2.76% and 3.30% for the years ended December 31, 2017 and 2016, respectively. |
3) | We incurred loan closing costs for the acquisition of the Village at Baldwin Park multifamily community during the first quarter 2016, which were funded by our $35 million acquisition term loan facility, or 2016 Term Loan, on our $11 million term note, which we used to finance the acquisition of our Anderson Central grocery-anchored shopping center, and on our $200 million acquisition revolving credit facility, or Acquisition Facility, which is used to finance acquisitions of multifamily communities and student housing communities. The 2016 Term Loan was repaid in full on August 5, 2016, while the $11 million term note and Acquisition Facility remain outstanding. The costs to establish these instruments were deferred and amortized over the lives of the instruments. The amortization expense of these deferred costs is an additive adjustment in the calculation of Core FFO. |
4) | As of January 1, 2016, we pay loan coordination fees to Preferred Apartment Advisors, LLC, our Manager, related to obtaining mortgage financing for acquired properties. Loan coordination fees were introduced to reflect the administrative effort involved in arranging debt financing for acquired properties. The portion of the loan coordination fees paid up until July 1, 2017 attributable to the financing were amortized over the lives of the respective mortgage loans, and this non-cash amortization expense is an addition to FFO in the calculation of Core FFO. Beginning effective July 1, 2017, the loan coordination fee was lowered from 1.6% to 0.6% of the amount of any mortgage indebtedness on newly-acquired properties or refinancing. All of the loan coordination fees paid to our Manager subsequent to July 1, 2017 are amortized over the life of the debt. At December 31, 2017, aggregate unamortized loan coordination fees were approximately $12.1 million, which will be amortized over a weighted average remaining loan life of approximately 10.6 years. |
5) | We sustained weather-related operating losses at certain of our properties during the third and fourth quarters of 2017; these costs are added back to FFO in our calculation of Core FFO. Included in these adjustments are lost rental revenues that totaled $386,531 for the year ended December 31, 2017 and $272,835 for the fourth quarter. Any insurance reimbursement for lost rent cannot be reflected in our statements of operations until the funds are received from the insurance carrier. |
6) | For the three months ended December 31, 2017, this adjustment consists of charges related to the refinancing of our Aldridge at Town Village, Summit Crossing and Retreat at Greystone multifamily communities. For the year ended December 31, 2017, the adjustment also includes a loan prepayment penalty and other charges related to the refinancing of our Stone Creek and 525 Avalon multifamily communities. |
7) | We incur loan closing costs on our existing mortgage loans, which are secured on a property-by-property basis by each of our acquired real estate assets, and also for occasional amendments to our $150 million syndicated revolving line of credit with Key Bank National Association, or our Revolving Line of Credit. These loan closing costs are also amortized over the lives of the respective loans and the Revolving Line of Credit, and this non-cash amortization expense is an addition to Core FFO in the calculation of AFFO. Neither we nor the Operating Partnership have any recourse liability in connection with any of the mortgage loans, nor do we have any cross-collateralization arrangements with respect to the assets securing the mortgage loans, other than security interests in 49% of the equity interests of the subsidiaries owning such assets, granted in connection with our Revolving Line of Credit, which provides for full recourse liability. At December 31, 2017, aggregate unamortized loan costs were approximately $19.2 million, which will be amortized over a weighted average remaining loan life of approximately 8.0 years. |
8) | We receive loan origination fees in conjunction with the origination of certain real estate loan investments. These fees are then recognized as revenue over the lives of the applicable loans as adjustments of yield using the effective interest method. The total fees received after the payment of loan origination fees to our Manager are additive adjustments in the calculation of AFFO. Correspondingly, the amortized non-cash income is a deduction in the calculation of AFFO. Over the lives of certain loans, we accrue additional interest amounts that become due to us at the time of repayment of the loan or refinancing of the property, or when the property is sold. This non-cash interest income is subtracted from Core FFO in our calculation of AFFO. |
9) | This adjustment reflects the receipt during the periods presented of additional interest income (described in note 8 above) which was earned and accrued prior to those periods presented on various real estate loans. |
10) | This adjustment removes the non-cash amortization of costs incurred to induce tenants to lease space in our office buildings and grocery-anchored shopping centers. |
11) | This adjustment reflects straight-line rent adjustments and the reversal of the non-cash amortization of below-market and above-market lease intangibles, which were recognized in conjunction with our acquisitions and which are amortized over the estimated average remaining lease terms from the acquisition date for multifamily communities and over the remaining lease terms for grocery-anchored shopping center assets and office buildings. At December 31, 2017, the balance of unamortized below-market lease intangibles was approximately $38.9 million, which will be recognized over a weighted average remaining lease period of approximately 9.7 years. |
12) | This adjustment removes the non-cash amortization of deferred revenue recorded by us in conjunction with Company-owned lessee-funded tenant improvements in our office buildings. |
13) | We deduct from Core FFO normally recurring capital expenditures that are necessary to maintain our assets’ revenue streams in the calculation of AFFO. This adjustment also deducts from Core FFO capitalized amounts for third party costs during the period to originate or renew leases in our grocery-anchored shopping centers and office buildings. No adjustment is made in the calculation of AFFO for nonrecurring capital expenditures. |
14) | We incurred legal costs pertaining to the extension of our management agreement with our Manager. The three-year evergreen extension was effective as of June 3, 2016. |
15) | On May 25, 2017, we closed on the sale of our Enclave at Vista Ridge multifamily community to an unrelated third party. At such date, our Manager collected a cumulative total of approximately $390,000 of contingent fees. The sales transaction, and the fact that our capital contributions for the Enclave at Vista Ridge property achieved an annual rate of return which exceeded 7%, triggered the fees to become immediately due and payable to the Manager at the closing of the sale transaction. The recognition of these fees are added to FFO in the calculation of Core FFO as they are not likely to occur on a regular basis. |
Preferred Apartment Communities, Inc. | |||||||||
Consolidated Balance Sheets | |||||||||
(Unaudited) | |||||||||
December 31, 2017 | December 31, 2016 | ||||||||
Assets | |||||||||
Real estate | |||||||||
Land | $ | 406,794,429 | $ | 299,547,501 | |||||
Building and improvements | 2,043,853,105 | 1,513,293,760 | |||||||
Tenant improvements | 63,424,729 | 23,642,361 | |||||||
Furniture, fixtures, and equipment | 210,778,838 | 126,357,742 | |||||||
Construction in progress | 10,490,769 | 2,645,634 | |||||||
Gross real estate | 2,735,341,870 | 1,965,486,998 | |||||||
Less: accumulated depreciation | (172,755,498 | ) | (103,814,894 | ) | |||||
Net real estate | 2,562,586,372 | 1,861,672,104 | |||||||
Real estate loan investments, net of deferred fee income | 255,344,584 | 201,855,604 | |||||||
Real estate loan investments to related parties, net | 131,451,359 | 130,905,464 | |||||||
Total real estate and real estate loan investments, net | 2,949,382,315 | 2,194,433,172 | |||||||
Cash and cash equivalents | 21,042,862 | 12,321,787 | |||||||
Restricted cash | 51,968,519 | 55,392,984 | |||||||
Notes receivable | 17,317,743 | 15,499,699 | |||||||
Note receivable and revolving line of credit due from related party | 22,739,022 | 22,115,976 | |||||||
Accrued interest receivable on real estate loans | 26,864,905 | 21,894,549 | |||||||
Acquired intangible assets, net of amortization | 102,743,389 | 79,156,400 | |||||||
Deferred loan costs on Revolving Line of Credit, net of amortization | 1,385,208 | 1,768,779 | |||||||
Deferred offering costs | 6,544,310 | 2,677,023 | |||||||
Tenant lease inducements, net | 14,424,398 | 261,492 | |||||||
Tenant receivables and other assets | 37,956,954 | 15,310,741 | |||||||
Total assets | $ | 3,252,369,625 | $ | 2,420,832,602 | |||||
Liabilities and equity | |||||||||
Liabilities | |||||||||
Mortgage notes payable, net of deferred loan costs | 1,776,652,171 | 1,305,870,471 | |||||||
Revolving line of credit | 41,800,000 | 127,500,000 | |||||||
Term note payable, net of deferred loan costs | 10,994,194 | 10,959,905 | |||||||
Real estate loan investment participation obligation | 13,985,978 | 20,761,819 | |||||||
Deferred revenue | 27,947,352 | — | |||||||
Accounts payable and accrued expenses | 31,252,705 | 20,814,910 | |||||||
Accrued interest payable | 5,028,161 | 3,541,640 | |||||||
Dividends and partnership distributions payable | 15,679,940 | 10,159,629 | |||||||
Acquired below market lease intangibles, net of amortization | 38,856,615 | 29,774,033 | |||||||
Security deposits and other liabilities | 9,406,816 | 6,189,033 | |||||||
Total liabilities | 1,971,603,932 | 1,535,571,440 | |||||||
Commitments and contingencies | |||||||||
Equity | |||||||||
Stockholder's equity | |||||||||
Series A Redeemable Preferred Stock, $0.01 par value per share; 3,050,000 | |||||||||
shares authorized; 1,250,279 and 924,855 shares issued; 1,222,013 and 914,422 | |||||||||
shares outstanding at December 31, 2017 and 2016, respectively | 12,220 | 9,144 | |||||||
Series M Redeemable Preferred Stock, $0.01 par value per share; 500,000 | |||||||||
shares authorized; 15,275 and 0 shares issued and outstanding | |||||||||
at December 31, 2017 and 2016, respectively | 153 | — | |||||||
Common Stock, $0.01 par value per share; 400,066,666 shares authorized; | |||||||||
38,564,722 and 26,498,192 shares issued and outstanding at | |||||||||
December 31, 2017 and 2016, respectively | 385,647 | 264,982 | |||||||
Additional paid-in capital | 1,271,039,723 | 906,737,470 | |||||||
Accumulated earnings (deficit) | 4,449,353 | (23,231,643 | ) | ||||||
Total stockholders' equity | 1,275,887,096 | 883,779,953 | |||||||
Non-controlling interest | 4,878,597 | 1,481,209 | |||||||
Total equity | 1,280,765,693 | 885,261,162 | |||||||
Total liabilities and equity | $ | 3,252,369,625 | $ | 2,420,832,602 |
Preferred Apartment Communities, Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Year ended December 31, | ||||||||
2017 | 2016 | |||||||
Operating activities: | ||||||||
Net income (loss ) | $ | 28,666,601 | $ | (9,843,414 | ) | |||
Reconciliation of net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation expense | 86,017,560 | 56,415,608 | ||||||
Amortization expense | 30,759,249 | 21,724,190 | ||||||
Amortization of above and below market leases | (3,335,303 | ) | (1,653,016 | ) | ||||
Deferred revenues and fee income amortization | (2,346,579 | ) | (994,809 | ) | ||||
Mark to market debt and lease incentive amortization | 630,503 | — | ||||||
Deferred loan cost amortization | 5,084,193 | 3,595,429 | ||||||
(Increase) in accrued interest income on real estate loans | (4,970,356 | ) | (7,599,901 | ) | ||||
Equity compensation to executives and directors | 3,470,284 | 2,524,042 | ||||||
Gain on sale of real estate | (37,635,014 | ) | (4,271,506 | ) | ||||
Loss on extinguishment of debt | 888,428 | — | ||||||
Other | 189,400 | 48,126 | ||||||
Changes in operating assets and liabilities: | ||||||||
(Increase) in tenant receivables and other assets | (12,105,325 | ) | (4,331,216 | ) | ||||
(Increase) in tenant lease incentives | (14,260,180 | ) | — | |||||
Increase in accounts payable and accrued expenses | 2,382,465 | 3,112,553 | ||||||
Increase in accrued interest and other liabilities | 2,853,145 | 2,935,383 | ||||||
Net cash provided by operating activities | 86,289,071 | 61,661,469 | ||||||
Investing activities: | ||||||||
Investment in real estate loans | (148,345,526 | ) | (151,027,549 | ) | ||||
Repayments of real estate loans | 94,409,668 | 36,672,482 | ||||||
Notes receivable issued | (7,863,998 | ) | (9,887,486 | ) | ||||
Notes receivable repaid | 6,099,653 | 12,895,101 | ||||||
Note receivable issued to and draws on line of credit by related party | (35,281,195 | ) | (34,206,553 | ) | ||||
Repayments of line of credit by related party | 34,228,970 | 31,096,618 | ||||||
Loan origination fees received | 2,633,592 | 3,703,514 | ||||||
Loan origination fees paid to Manager | (1,319,399 | ) | (1,886,105 | ) | ||||
Acquisition of properties | (781,828,497 | ) | (1,010,111,945 | ) | ||||
Disposition of properties, net | 118,237,697 | 10,616,386 | ||||||
Receipt of insurance proceeds for capital improvements | 4,719,009 | — | ||||||
Additions to real estate assets - improvements | (17,787,037 | ) | (10,263,736 | ) | ||||
(Deposits) on acquisitions | (2,034,398 | ) | (839,600 | ) | ||||
Decrease (increase) in restricted cash | 10,378,557 | (3,344,721 | ) | |||||
Net cash used in investing activities | (723,752,904 | ) | (1,126,583,594 | ) | ||||
Financing activities: | ||||||||
Proceeds from mortgage notes payable | 517,488,647 | 622,394,000 | ||||||
Payments for mortgage notes payable | (124,039,890 | ) | (12,035,587 | ) | ||||
Payments for deposits and other mortgage loan costs | (14,772,295 | ) | (19,130,246 | ) | ||||
Payments for mortgage prepayment costs | (817,313 | ) | — | |||||
Proceeds from real estate loan participants | 224,188 | 6,432,700 | ||||||
Payments to real estate loan participants | (7,882,643 | ) | — | |||||
Proceeds from lines of credit | 275,000,000 | 470,136,020 | ||||||
Payments on lines of credit | (360,700,000 | ) | (377,136,020 | ) | ||||
Proceeds from Term Loan | — | 46,000,000 | ||||||
Repayment of the Term Loan | — | (35,000,000 | ) | |||||
Proceeds from sales of Units, net of offering costs and redemptions | 302,467,332 | 390,904,255 | ||||||
Proceeds from sales of Common Stock | 74,213,118 | 22,956,604 | ||||||
Proceeds from exercises of warrants | 80,970,365 | 21,503,490 | ||||||
Common Stock dividends paid | (27,408,905 | ) | (18,515,113 | ) | ||||
Preferred stock dividends paid | (61,966,313 | ) | (38,940,901 | ) | ||||
Distributions to non-controlling interests | (817,260 | ) | (529,528 | ) | ||||
Payments for deferred offering costs | (6,314,123 | ) | (4,685,367 | ) | ||||
Contribution from non-controlling interests | 540,000 | 450,000 | ||||||
Net cash provided by financing activities | 646,184,908 | 1,074,804,307 | ||||||
Net increase in cash and cash equivalents | 8,721,075 | 9,882,182 | ||||||
Cash and cash equivalents, beginning of period | 12,321,787 | 2,439,605 | ||||||
Cash and cash equivalents, end of period | $ | 21,042,862 | $ | 12,321,787 |
Project/Property | Location | Maturity date | Optional extension date | Total loan commitments | Carrying amount (1) as of | Current / deferred interest % per annum | ||||||||||||||||
December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Multifamily communities: | ||||||||||||||||||||||
Founders Village | Williamsburg, VA | — | N/A | $ | — | $ | — | (2 | ) | $ | 9,866,000 | — | ||||||||||
Encore | Atlanta, GA | 4/8/2019 | 10/8/2020 | 10,958,200 | 10,958,200 | 10,958,200 | 8.5 / 5 | |||||||||||||||
Encore Capital | Atlanta, GA | 4/8/2019 | 10/8/2020 | 9,758,200 | 7,521,425 | 6,748,380 | 8.5 / 5 | |||||||||||||||
Palisades | Northern VA | 5/17/2018 | N/A | 17,270,000 | 17,111,298 | 16,214,545 | 8 / 5 | |||||||||||||||
Fusion | Irvine, CA | 5/31/2018 | 5/31/2020 | 63,911,961 | 58,447,468 | 49,456,067 | 8.5 / 7.5 | |||||||||||||||
Green Park | Atlanta, GA | 2/28/2018 | 12/1/2019 | 13,464,372 | 11,464,372 | 13,464,372 | 8.5 / 5.83 | |||||||||||||||
Summit Crossing III | Atlanta, GA | — | N/A | — | — | (3 | ) | 7,246,400 | — | |||||||||||||
Overture | Tampa, FL | — | N/A | — | — | (3 | ) | 6,123,739 | 8.5 / 7.5 | |||||||||||||
Aldridge at Town Village | Atlanta, GA | — | N/A | — | — | (3 | ) | 10,656,171 | — | |||||||||||||
Bishop Street | Atlanta, GA | 2/18/2020 | N/A | 12,693,457 | 12,144,914 | 11,145,302 | 8.5 / 6.5 | |||||||||||||||
Hidden River | Tampa, FL | 12/3/2018 | 12/3/2020 | 4,734,960 | 4,734,960 | 4,734,960 | 8.5 / 6.5 | |||||||||||||||
Hidden River Capital | Tampa, FL | 12/4/2018 | 12/4/2020 | 5,380,000 | 5,041,161 | 4,626,238 | 8.5 / 6.5 | |||||||||||||||
CityPark II | Charlotte, NC | 1/7/2019 | 1/7/2021 | 3,364,800 | 3,364,800 | 3,364,800 | 8.5 / 6.5 | |||||||||||||||
CityPark II Capital | Charlotte, NC | 1/8/2019 | 1/31/2021 | 3,916,000 | 3,623,944 | 3,325,668 | 8.5 / 6.5 | |||||||||||||||
Park 35 on Clairmont | Birmingham, AL | 6/26/2018 | 6/26/2020 | 21,060,160 | 21,060,160 | 19,795,886 | 8.5 / 2 | |||||||||||||||
Wiregrass | Tampa, FL | 5/15/2020 | 5/15/2023 | 14,975,853 | 12,972,273 | 1,862,548 | 8.5 / 6.5 | |||||||||||||||
Wiregrass Capital | Tampa, FL | 5/15/2020 | 5/15/2023 | 3,744,147 | 3,561,231 | 3,268,114 | 8.5 / 6.5 | |||||||||||||||
Berryessa | San Jose, CA | 4/19/2018 | N/A | 31,509,000 | 30,571,375 | — | 10.5 / 0 | |||||||||||||||
Brentwood | Nashville, TN | 6/1/2018 | N/A | 2,376,000 | 2,260,525 | — | 12 / 0 | |||||||||||||||
Fort Myers | Fort Myers, FL | — | N/A | — | — | (4 | ) | 3,654,621 | — | |||||||||||||
Fort Myers | Fort Myers, FL | 2/3/2021 | 2/3/2022 | 9,416,000 | 3,521,014 | — | 8.5 / 5.5 | |||||||||||||||
Fort Myers Capital | Fort Myers, FL | 2/3/2021 | 2/3/2022 | 6,193,000 | 4,994,108 | — | 8.5 / 5.5 | |||||||||||||||
360 Forsyth | Atlanta, GA | — | N/A | — | — | (4 | ) | 2,520,420 | — | |||||||||||||
360 Forsyth | Atlanta, GA | 7/11/2020 | 7/11/2022 | 22,412,000 | 13,400,166 | — | 8.5 / 5.5 | |||||||||||||||
Morosgo | Atlanta, GA | 1/31/2021 | 1/31/2022 | 11,749,000 | 4,950,824 | — | 8.5 / 5.5 | |||||||||||||||
Morosgo Capital | Atlanta, GA | 1/31/2021 | 1/31/2022 | 6,176,000 | 4,761,050 | — | 8.5 / 5.5 | |||||||||||||||
University City Gateway | Charlotte, NC | 8/15/2021 | 8/15/2022 | 10,336,000 | 849,726 | — | 8.5 / 5 | |||||||||||||||
University City Gateway | ||||||||||||||||||||||
Capital | Charlotte, NC | 8/18/2021 | 8/18/2022 | 7,338,000 | 5,530,045 | — | 8.5 / 5 | |||||||||||||||
Student housing properties: | ||||||||||||||||||||||
Haven West | Atlanta, GA | — | N/A | — | — | (5 | ) | 6,784,167 | — | |||||||||||||
Haven 12 | Starkville, MS | 12/17/2018 | 11/30/2020 | 6,116,384 | 5,815,849 | 5,815,849 | 8.5 / 6.5 | |||||||||||||||
Stadium Village | Atlanta, GA | — | N/A | — | — | (3 | ) | 13,329,868 | 8.5 / 5.83 | |||||||||||||
18 Nineteen | Lubbock, TX | — | N/A | — | — | (6 | ) | 15,584,017 | 8.5 / 6 | |||||||||||||
Haven South | Waco, TX | — | N/A | — | — | (3 | ) | 15,301,876 | 8.5 / 6 | |||||||||||||
Haven46 | Tampa, FL | 3/29/2019 | 9/29/2020 | 9,819,662 | 9,819,662 | 9,136,847 | 8.5 / 5 | |||||||||||||||
Haven Northgate | College Station, TX | 6/20/2019 | 6/20/2020 | 67,680,000 | 65,724,317 | 46,419,194 | 7.25 / 1.5 | |||||||||||||||
Lubbock II | Lubbock, TX | 4/20/2019 | N/A | 9,357,171 | 9,357,078 | 8,770,838 | 8.5 / 5 | |||||||||||||||
Haven Charlotte | Charlotte, NC | 12/22/2019 | 12/22/2021 | 19,581,593 | 17,039,277 | 5,781,295 | 8.5 / 6.5 | |||||||||||||||
Haven Charlotte Member | Charlotte, NC | 12/22/2019 | 12/22/2021 | 8,201,170 | 7,794,612 | — | 8.5 / 6.5 | |||||||||||||||
Solis Kennesaw | Atlanta, GA | 9/26/2020 | 9/26/2022 | 12,358,946 | 1,609,395 | — | 8.5 / 5.5 | |||||||||||||||
Solis Kennesaw Capital | Atlanta, GA | 10/1/2020 | 10/1/2022 | 8,360,000 | 7,143,866 | — | 8.5 / 5.5 | |||||||||||||||
Table continued on next page | ||||||||||||||||||||||
Table continued from previous page | Optional extension date | Total loan commitments | Carrying amount (1) as of | Current / deferred interest % per annum | ||||||||||||||||||
Project/Property | Location | Maturity date | December 31, 2017 | December 31, 2016 | ||||||||||||||||||
New Market Properties: | ||||||||||||||||||||||
Dawson Marketplace | Atlanta, GA | 9/24/2020 | 9/24/2022 | 12,857,005 | 12,857,005 | 12,613,860 | 8.5 / 5 (7) | |||||||||||||||
Other: | ||||||||||||||||||||||
Crescent Avenue | Atlanta, GA | 4/13/2018 | 5/31/2018 | 8,500,000 | 8,500,000 | 6,000,000 | 10 / 5 | |||||||||||||||
$ | 455,569,041 | 388,506,100 | 334,570,242 | |||||||||||||||||||
Unamortized loan origination fees | (1,710,157 | ) | (1,809,174 | ) | ||||||||||||||||||
Carrying amount | $ | 386,795,943 | $ | 332,761,068 | ||||||||||||||||||
(1) Carrying amounts presented per loan are amounts drawn, exclusive of deferred fee revenue. | ||||||||||||||||||||||
(2) The loan extended to Founders Village, with a total commitment of $10.3 million, was paid off during the first quarter. | ||||||||||||||||||||||
(3) Loan was repaid in connection with our acquisition of the property during 2017. | ||||||||||||||||||||||
(4) Previously existing land acquisition bridge loan was converted into real estate loan investment and capital/member loan during the third quarter. | ||||||||||||||||||||||
(5) The loan extended to Haven West, with a total commitment of $6.9 million, was paid off during the third quarter. | ||||||||||||||||||||||
(6) The loan extended to 18Nineteen was repaid during the fourth quarter 2017 following the sale of the property to a third party. | ||||||||||||||||||||||
(7) Effective January 1, 2018, the deferred interest rate increased to 6.9% per annum until the total accrued interest reaches $250,000, at which point the deferred interest reverts to 5.0%. |
Total units upon | Purchase option window | ||||||||
Project/Property | Location | completion (1) | Begin | End | |||||
Multifamily communities: | |||||||||
Encore | Atlanta, GA | 339 | 4/2/2018 | 7/9/2018 | |||||
Palisades | Northern VA | 304 | 1/1/2019 | 5/31/2019 | |||||
Fusion | Irvine, CA | 280 | 10/1/2018 | 1/1/2019 | |||||
Green Park | Atlanta, GA | 310 | 3/1/2018 | 6/30/2018 | (2) | ||||
Bishop Street | Atlanta, GA | 232 | 10/1/2018 | 12/31/2018 | |||||
Hidden River | Tampa, FL | 300 | 9/1/2018 | 12/31/2018 | |||||
CityPark II | Charlotte, NC | 200 | 5/1/2018 | 8/31/2018 | |||||
Park 35 on Clairmont | Birmingham, AL | 271 | S + 90 days (3) | S + 150 days (3) | |||||
Fort Myers | Fort Myers, FL | 224 | S + 90 days (3) | S + 150 days (3) | |||||
Wiregrass | Tampa, FL | 392 | S + 90 days (3) | S + 150 days (3) | |||||
360 Forsyth | Atlanta, GA | 356 | S + 90 days (3) | S + 150 days (3) | |||||
Morosgo | Atlanta, GA | 258 | S + 90 days (3) | S + 150 days (3) | |||||
University City Gateway | Charlotte, NC | 338 | S + 90 days (3) | S + 150 days (3) | |||||
Berryessa | San Jose, CA | 551 | N/A | N/A | |||||
Brentwood | Nashville, TN | 301 | N/A | N/A | |||||
Student housing properties: | |||||||||
Haven 12 | Starkville, MS | 152 | 4/1/2018 | 6/30/2018 | |||||
Haven46 | Tampa, FL | 158 | 11/1/2018 | 1/31/2019 | |||||
Haven Northgate | College Station, TX | 427 | 10/1/2018 | 12/31/2018 | |||||
Lubbock II | Lubbock, TX | 140 | 11/1/2018 | 1/31/2019 | |||||
Haven Charlotte | Charlotte, NC | 332 | 12/1/2019 | 2/28/2020 | |||||
Solis Kennesaw | Atlanta, GA | 248 | (4) | (4) | |||||
6,113 | |||||||||
(1) We evaluate each project individually and we make no assurance that we will acquire any of the underlying properties from our real estate loan investment portfolio. | |||||||||
(2) Effective as of October 26, 2017, the purchase option window on the property was amended as shown. | |||||||||
(3) The option period window begins and ends at the number of days indicated beyond the achievement of a 93% physical occupancy rate by the underlying property. | |||||||||
(4) The option period begins on October 1 of the second academic year following project completion and ends on the following December 31. The developer may elect to expedite the option period to begin December 1, 2019 and end on December 31, 2019. |
Principal balance as of | Interest only through date (1) | |||||||||||||||||
Acquisition/ refinancing date | December 31, 2017 | December 31, 2016 | Maturity date | Interest rate | Basis point spread over 1 Month LIBOR | |||||||||||||
Multifamily communities: | ||||||||||||||||||
Stone Rise | 7/3/2014 | $ | 23,939,461 | $ | 24,485,726 | 8/1/2019 | 2.89 | % | Fixed rate | 8/31/2015 | ||||||||
Summit Crossing | 4/21/2011 | — | 20,034,920 | 5/1/2018 | — | Fixed rate | 5/1/2014 | |||||||||||
Summit Crossing secondary financing | 8/28/2014 | — | 5,057,941 | 9/1/2019 | — | Fixed rate | N/A | |||||||||||
Summit Crossing refinancing | 10/31/2017 | 39,018,600 | — | 11/1/2024 | 3.99 | % | Fixed rate | N/A | ||||||||||
Summit II | 3/20/2014 | 13,357,000 | 13,357,000 | 4/1/2021 | 4.49 | % | Fixed rate | 4/30/2019 | ||||||||||
Ashford Park | 1/24/2013 | — | (2) | 25,626,000 | 2/1/2020 | — | Fixed rate | 2/28/2018 | ||||||||||
Ashford Park secondary financing | 8/28/2014 | — | (2) | 6,404,575 | 2/1/2020 | — | Fixed rate | N/A | ||||||||||
McNeil Ranch | 1/24/2013 | 13,646,000 | 13,646,000 | 2/1/2020 | 3.13 | % | Fixed rate | 2/28/2018 | ||||||||||
Lake Cameron | 1/24/2013 | 19,773,000 | 19,773,000 | 2/1/2020 | 3.13 | % | Fixed rate | 2/28/2018 | ||||||||||
Enclave at Vista Ridge | 9/26/2014 | — | (3) | 24,862,000 | 10/1/2021 | — | Fixed rate | 10/31/2017 | ||||||||||
Sandstone | 9/26/2014 | — | (4) | 30,894,890 | 10/1/2019 | — | Fixed rate | N/A | ||||||||||
Stoneridge | 9/26/2014 | 26,136,226 | 26,729,985 | 10/1/2019 | 3.18 | % | Fixed rate | N/A | ||||||||||
Vineyards | 9/26/2014 | 34,672,349 | 34,775,000 | 10/1/2021 | 3.68 | % | Fixed rate | 10/31/2017 | ||||||||||
Avenues at Cypress | 2/13/2015 | 21,675,160 | 22,135,938 | 9/1/2022 | 3.43 | % | Fixed rate | N/A | ||||||||||
Avenues at Northpointe | 2/13/2015 | 27,466,988 | 27,878,000 | 3/1/2022 | 3.16 | % | Fixed rate | 3/31/2017 | ||||||||||
Venue at Lakewood Ranch | 5/21/2015 | 29,347,966 | 29,950,413 | 12/1/2022 | 3.55 | % | Fixed rate | N/A | ||||||||||
Aster Lely | 6/24/2015 | 32,470,974 | 33,120,899 | 7/5/2022 | 3.84 | % | Fixed rate | N/A | ||||||||||
CityPark View | 6/30/2015 | 21,037,805 | 21,489,269 | 7/1/2022 | 3.27 | % | Fixed rate | N/A | ||||||||||
Avenues at Creekside | 7/31/2015 | 40,523,358 | 41,349,590 | 8/1/2024 | 3.16 | % | 160 | (5) | 8/31/2016 | |||||||||
Citi Lakes | 9/3/2015 | 42,396,307 | 43,309,606 | 4/1/2023 | 3.73 | % | 217 | (6) | N/A | |||||||||
Stone Creek | 6/22/2017 | 20,466,519 | 16,497,919 | 7/1/2052 | 3.22 | % | Fixed rate | N/A | ||||||||||
Lenox Village Town Center | 12/21/2015 | 30,009,461 | 30,717,024 | 5/1/2019 | 3.82 | % | Fixed rate | N/A | ||||||||||
Lenox Village III | 12/21/2015 | 17,802,373 | 18,125,780 | 1/1/2023 | 4.04 | % | Fixed rate | N/A | ||||||||||
Overton Rise | 2/1/2016 | 39,981,145 | 40,712,134 | 8/1/2026 | 3.98 | % | Fixed rate | N/A | ||||||||||
Baldwin Park | 1/5/2016 | 73,910,000 | 73,910,000 | 1/5/2019 | 3.46 | % | 190 | 1/4/2019 | ||||||||||
Baldwin Park secondary financing | 1/5/2016 | 3,890,000 | 3,890,000 | 1/5/2019 | 11.46 | % | 990 | 1/4/2019 | ||||||||||
Crosstown Walk | 1/15/2016 | 31,485,601 | 32,069,832 | 2/1/2023 | 3.90 | % | Fixed rate | N/A | ||||||||||
525 Avalon Park | 5/31/2016 | — | (7) | 61,750,000 | 7/1/2024 | — | 200 | (7) | N/A | |||||||||
525 Avalon Park secondary financing | 5/31/2016 | — | (7) | 3,250,000 | 6/5/2019 | — | 1100 | (7) | N/A | |||||||||
525 Avalon Park refinancing | 6/15/2017 | 66,912,118 | — | 7/1/2024 | 3.98 | % | Fixed rate | N/A | ||||||||||
City Vista | 7/1/2016 | 35,073,438 | 35,734,946 | 7/1/2026 | 3.68 | % | Fixed rate | N/A | ||||||||||
Sorrel | 8/24/2016 | 32,800,838 | 33,442,303 | 9/1/2023 | 3.44 | % | Fixed rate | N/A |
Table continued from previous page | Principal balance as of | Interest only through date (1) | ||||||||||||||||
Acquisition/ refinancing date | December 31, 2017 | December 31, 2016 | Maturity date | Interest rate | Basis point spread over 1 Month LIBOR | |||||||||||||
Citrus Village | 3/3/2017 | 29,969,646 | — | 6/10/2023 | 3.65 | % | Fixed rate | 6/09/2017 | ||||||||||
Retreat at Greystone | 11/21/2017 | 35,210,000 | — | 12/1/2024 | 4.31 | % | Fixed rate | N/A | ||||||||||
Founders Village | 3/31/2017 | 31,271,292 | — | 4/1/2027 | 4.31 | % | Fixed rate | N/A | ||||||||||
Claiborne Crossing | 4/26/2017 | 26,800,760 | — | 6/1/2054 | 2.89 | % | Fixed rate | N/A | ||||||||||
Luxe Lakewood Ranch | 7/26/2017 | 39,065,729 | — | 8/1/2027 | 3.93 | % | Fixed rate | N/A | ||||||||||
Adara Overland Park | 9/27/2017 | 31,759,882 | — | 4/1/2028 | 3.90 | % | Fixed rate | N/A | ||||||||||
Aldridge at Town Village | 10/31/2017 | 37,847,218 | — | 11/1/2024 | 4.19 | % | Fixed rate | (8) | N/A | |||||||||
Summit Crossing III | 9/29/2017 | 20,016,609 | — | 10/1/2024 | 3.87 | % | Fixed rate | N/A | ||||||||||
Overlook at Crosstown Walk | 11/21/2017 | 22,231,000 | — | 12/1/2024 | 3.95 | % | Fixed rate | N/A | ||||||||||
Colony at Centerpointe | 12/20/2017 | 33,346,281 | — | 10/1/2026 | 3.68 | % | Fixed rate | N/A | ||||||||||
Total multifamily communities | 1,045,311,104 | 814,980,690 | ||||||||||||||||
Grocery-anchored shopping centers: | ||||||||||||||||||
Spring Hill Plaza | 9/5/2014 | 9,470,041 | 9,672,371 | 10/1/2019 | 3.36 | % | Fixed rate | 10/31/2015 | ||||||||||
Parkway Town Centre | 9/5/2014 | 6,887,303 | 7,034,452 | 10/1/2019 | 3.36 | % | Fixed rate | 10/31/2015 | ||||||||||
Woodstock Crossing | 8/8/2014 | 2,989,460 | 3,041,620 | 9/1/2021 | 4.71 | % | Fixed rate | N/A | ||||||||||
Deltona Landings | 9/30/2014 | 6,777,948 | 6,928,913 | 10/1/2019 | 3.48 | % | Fixed rate | N/A | ||||||||||
Powder Springs | 9/30/2014 | 7,151,903 | 7,311,197 | 10/1/2019 | 3.48 | % | Fixed rate | N/A | ||||||||||
Kingwood Glen | 9/30/2014 | 11,340,208 | 11,592,787 | 10/1/2019 | 3.48 | % | Fixed rate | N/A | ||||||||||
Barclay Crossing | 9/30/2014 | 6,375,945 | 6,517,956 | 10/1/2019 | 3.48 | % | Fixed rate | N/A | ||||||||||
Sweetgrass Corner | 9/30/2014 | 7,730,666 | 7,900,135 | 10/1/2019 | 3.58 | % | Fixed rate | N/A | ||||||||||
Parkway Centre | 9/30/2014 | 4,440,724 | 4,539,632 | 10/1/2019 | 3.48 | % | Fixed rate | N/A | ||||||||||
The Market at Salem Cove | 10/6/2014 | 9,423,125 | 9,586,678 | 11/1/2024 | 4.21 | % | Fixed rate | 11/30/2016 | ||||||||||
Independence Square | 8/27/2015 | 11,967,246 | 12,208,524 | 9/1/2022 | 3.93 | % | Fixed rate | 9/30/2016 | ||||||||||
Royal Lakes Marketplace | 9/4/2015 | 9,690,137 | 9,800,000 | 9/4/2020 | 3.86 | % | 250 | 4/3/2017 | ||||||||||
The Overlook at Hamilton Place | 12/22/2015 | 20,300,862 | 20,672,618 | 1/1/2026 | 4.19 | % | Fixed rate | N/A | ||||||||||
Summit Point | 10/30/2015 | 12,208,422 | 12,546,792 | 11/1/2022 | 3.57 | % | Fixed rate | N/A | ||||||||||
East Gate Shopping Center | 4/29/2016 | 5,578,194 | 5,719,897 | 5/1/2026 | 3.97 | % | Fixed rate | N/A | ||||||||||
Fury's Ferry | 4/29/2016 | 6,443,776 | 6,607,467 | 5/1/2026 | 3.97 | % | Fixed rate | N/A | ||||||||||
Rosewood Shopping Center | 4/29/2016 | 4,327,909 | 4,437,851 | 5/1/2026 | 3.97 | % | Fixed rate | N/A | ||||||||||
Southgate Village | 4/29/2016 | 7,694,061 | 7,889,513 | 5/1/2026 | 3.97 | % | Fixed rate | N/A | ||||||||||
The Market at Victory Village | 5/16/2016 | 9,213,785 | 9,250,000 | 9/11/2024 | 4.40 | % | Fixed rate | 10/10/2017 | ||||||||||
Wade Green Village | 4/7/2016 | 7,968,657 | 8,116,465 | 5/1/2026 | 4.00 | % | Fixed rate | N/A | ||||||||||
Lakeland Plaza | 7/15/2016 | 29,022,665 | 29,760,342 | 8/1/2026 | 3.85 | % | Fixed rate | N/A | ||||||||||
University Palms | 8/8/2016 | 13,161,942 | 13,513,891 | 9/1/2026 | 3.45 | % | Fixed rate | N/A | ||||||||||
Cherokee Plaza | 8/8/2016 | 25,322,400 | 26,017,293 | 9/1/2021 | 3.61 | % | 225 | (9) | N/A |
Table continued from previous page | Principal balance as of | Interest only through date (1) | ||||||||||||||||
Acquisition/ refinancing date | December 31, 2017 | December 31, 2016 | Maturity date | Interest rate | Basis point spread over 1 Month LIBOR | |||||||||||||
Sandy Plains Exchange | 8/8/2016 | 9,194,003 | 9,439,850 | 9/1/2026 | 3.45 | % | Fixed rate | N/A | ||||||||||
Thompson Bridge Commons | 8/8/2016 | 12,290,931 | 12,619,589 | 9/1/2026 | 3.45 | % | Fixed rate | N/A | ||||||||||
Heritage Station | 8/8/2016 | 9,097,224 | 9,340,483 | 9/1/2026 | 3.45 | % | Fixed rate | N/A | ||||||||||
Oak Park Village | 8/8/2016 | 9,387,561 | 9,638,584 | 9/1/2026 | 3.45 | % | Fixed rate | N/A | ||||||||||
Shoppes of Parkland | 8/8/2016 | 16,241,281 | 16,492,503 | 9/1/2023 | 4.67 | % | Fixed rate | N/A | ||||||||||
Champions Village | 10/18/2016 | 27,400,000 | 27,400,000 | 11/1/2021 | 4.37 | % | 300 | (10) | 11/1/2021 | |||||||||
Castleberry-Southard | 4/21/2017 | 11,382,642 | — | 5/1/2027 | 3.99 | % | Fixed rate | N/A | ||||||||||
Rockbridge Village | 6/6/2017 | 14,141,635 | — | 7/5/2027 | 3.73 | % | Fixed rate | N/A | ||||||||||
Irmo Station | 7/26/2017 | 10,566,008 | — | 8/1/2030 | 3.94 | % | Fixed rate | N/A | ||||||||||
Maynard Crossing | 8/25/2017 | 18,387,585 | — | 9/1/2032 | 3.74 | % | Fixed rate | N/A | ||||||||||
Woodmont Village | 9/8/2017 | 8,741,420 | — | 10/1/2027 | 4.125 | % | Fixed rate | N/A | ||||||||||
West Town Market | 9/22/2017 | 8,963,126 | — | 10/1/2025 | 3.65 | % | Fixed rate | N/A | ||||||||||
Crossroads Market | 12/5/2017 | 19,000,000 | — | 1/1/2030 | 3.95 | % | Fixed rate | N/A | ||||||||||
Total grocery-anchored shopping centers | 410,280,795 | 325,597,403 | ||||||||||||||||
Student housing properties: | ||||||||||||||||||
North by Northwest | 6/1/2016 | 32,766,863 | 33,499,754 | 9/1/2022 | 4.02 | % | Fixed rate | N/A | ||||||||||
SoL | 2/28/2017 | 37,485,000 | — | 3/1/2022 | 3.57 | % | 220 | 2/28/2022 | ||||||||||
Stadium Village | 10/27/2017 | 46,929,833 | — | 11/1/2024 | 3.80 | % | Fixed rate | N/A | ||||||||||
Ursa | 12/18/2017 | 28,260,000 | — | 1/5/2020 | 3.61 | % | 205 | 1/5/2020 | ||||||||||
Ursa secondary financing | 12/18/2017 | 3,140,000 | — | 1/5/2020 | 13.11 | % | 1155 | 1/5/2020 | ||||||||||
Total student housing properties | 148,581,696 | 33,499,754 | ||||||||||||||||
Office buildings: | ||||||||||||||||||
Brookwood Center | 8/29/2016 | 32,219,375 | 32,400,000 | 9/10/2031 | 3.52 | % | Fixed rate | 10/9/2017 | ||||||||||
Galleria 75 | 11/4/2016 | 5,715,804 | 5,900,265 | 7/1/2022 | 4.25 | % | Fixed rate | N/A | ||||||||||
Three Ravinia | 12/30/2016 | 115,500,000 | 115,500,000 | 1/1/2042 | 4.46 | % | Fixed rate | 1/31/2022 | ||||||||||
Westridge at La Cantera | 11/13/2017 | 54,440,000 | — | 12/10/2028 | 4.10 | % | Fixed rate | N/A | ||||||||||
Total office buildings | 207,875,179 | 153,800,265 | ||||||||||||||||
Grand total | 1,812,048,774 | 1,327,878,112 | ||||||||||||||||
Less: deferred loan costs | (30,248,587 | ) | (22,007,641 | ) | ||||||||||||||
Less: below market debt adjustment | (5,148,016 | ) | — | |||||||||||||||
Mortgage notes, net | $ | 1,776,652,171 | $ | 1,305,870,471 | ||||||||||||||
Footnotes to Mortgage Notes Table | |||||||||||
(1) Following the indicated interest only period (where applicable), monthly payments of accrued interest and principal are based on a 25 to 35-year amortization period through the maturity date. | |||||||||||
(2) On March 7, 2017, the Company legally defeased the mortgage loan in conjunction with the sale of its Ashford Park property, located in Atlanta, GA. In connection with the defeasance, the mortgage and other liens on the property were extinguished and all existing collateral, including various guarantees, were released. As a result of the defeasance, the Company incurred costs associated with a defeasance premium of $1.1 million plus a prepayment premium of approximately $0.4 million. | |||||||||||
(3) On May 25, 2017, the Company legally defeased the mortgage loan in conjunction with the sale of its Enclave at Vista Ridge property, located in Dallas, TX. In connection with the defeasance, the mortgage and other liens on the property were extinguished and all existing collateral, including various guarantees, were released. As a result of the defeasance, the Company incurred costs associated with a defeasance premium of $2.06 million. | |||||||||||
(4) On January 20, 2017, the Company legally defeased the mortgage loan in conjunction with the sale of its Sandstone property, located in Kansas City, KS. In connection with the defeasance, the mortgage and other liens on the property were extinguished and all existing collateral, including various guarantees, were released. As a result of the defeasance, the Company incurred costs associated with a defeasance premium of $1.4 million. | |||||||||||
(5) The mortgage instrument was assumed as part of the sales transaction; the 1 Month LIBOR index is capped at 5.0%, resulting in a cap on the combined rate of 6.6%. | |||||||||||
(6) The 1 Month LIBOR index is capped at 4.33% resulting in a cap on the combined rate of 6.5%. | |||||||||||
(7) On June 15, 2017, the two existing mortgage instruments were refinanced into a single mortgage in the amount of $67.38 million bearing interest at a fixed rate of 3.98% per annum. | |||||||||||
(8) The property was temporarily financed through a credit facility sponsored by the Federal Home Loan Mortgage Corporation; the Company obtained permanent mortgage financing subsequent to the closing as shown. | |||||||||||
(9) The interest rate has a floor of 2.7%. | |||||||||||
(10) The interest rate has a floor of 3.25%. |
Three months ended December 31, 2017 | |||||||||||||||||
Property | Location | Number of units | Average unit size (sq. ft.) | Average physical occupancy | Average rent per unit | ||||||||||||
Established Communities: | |||||||||||||||||
Stone Rise | Philadelphia, PA | 216 | 1,078 | 96.9 | % | $ | 1,463 | ||||||||||
Lake Cameron | Raleigh, NC | 328 | 940 | 94.1 | % | $ | 978 | ||||||||||
McNeil Ranch | Austin, TX | 192 | 1,071 | 93.4 | % | $ | 1,254 | ||||||||||
Avenues at Cypress | Houston, TX | 240 | 1,170 | 97.5 | % | $ | 1,418 | ||||||||||
Avenues at Northpointe | Houston, TX | 280 | 1,167 | 97.3 | % | $ | 1,349 | ||||||||||
Stoneridge Farms at the Hunt Club | Nashville, TN | 364 | 1,153 | 93.4 | % | $ | 1,100 | ||||||||||
Vineyards | Houston, TX | 369 | 1,122 | 98.1 | % | $ | 1,141 | ||||||||||
Aster at Lely Resort | Naples, FL | 308 | 1,071 | 94.3 | % | $ | 1,439 | ||||||||||
Venue at Lakewood Ranch | Sarasota, FL | 237 | 1,001 | 98.2 | % | $ | 1,543 | ||||||||||
Citi Lakes | Orlando, FL | 346 | 984 | 94.8 | % | $ | 1,384 | ||||||||||
Lenox Portfolio | Nashville, TN | 474 | 861 | 96.7 | % | $ | 1,206 | ||||||||||
Total/Average Established Communities | 3,354 | 95.9 | % | ||||||||||||||
Summit Crossing | Atlanta, GA | 485 | 1,053 | 92.9 | % | $ | 1,199 | ||||||||||
CityPark View | Charlotte, NC | 284 | 948 | — | $ | 1,089 | |||||||||||
Avenues at Creekside | San Antonio, TX | 395 | 974 | — | $ | 1,148 | |||||||||||
Stone Creek | Houston, TX | 246 | 852 | — | $ | 1,010 | |||||||||||
525 Avalon Park | Orlando, FL | 487 | 1,394 | — | $ | 1,400 | |||||||||||
Sorrel | Jacksonville, FL | 290 | 1,048 | 92.1 | % | $ | 1,265 | ||||||||||
Retreat at Greystone | Birmingham, AL | 312 | 1,100 | 96.7 | % | $ | 1,219 | ||||||||||
Broadstone at Citrus Village | Tampa, FL | 296 | 980 | 97.0 | % | $ | 1,252 | ||||||||||
Founders Village | Williamsburg, VA | 247 | 1,070 | 93.4 | % | $ | 1,366 | ||||||||||
Crosstown Walk | Tampa, FL | 342 | 981 | 94.9 | % | $ | 1,268 | ||||||||||
Overton Rise | Atlanta, GA | 294 | 1,018 | 94.0 | % | $ | 1,479 | ||||||||||
Claiborne Crossing | Louisville, KY | 242 | 1,204 | — | $ | 1,330 | |||||||||||
Luxe at Lakewood Ranch | Sarasota, FL | 280 | 1,105 | — | $ | 1,521 | |||||||||||
Adara Overland Park | Kansas City, KS | 260 | 1,116 | 94.6 | % | $ | 1,308 | ||||||||||
Aldridge at Town Village | Atlanta, GA | 300 | 969 | — | $ | 1,298 | |||||||||||
The Reserve at Summit Crossing | Atlanta, GA | 172 | 1,002 | — | $ | 1,336 | |||||||||||
Overlook at Crosstown Walk | Tampa, FL | 180 | 986 | — | n/a | ||||||||||||
Colony at Centerpointe | Richmond, VA | 255 | 1,149 | — | n/a | ||||||||||||
Value-add project: | |||||||||||||||||
Village at Baldwin Park | Orlando, FL | 528 | 1,069 | — | $ | 1,547 | |||||||||||
5,895 | |||||||||||||||||
Joint venture: | |||||||||||||||||
City Vista | Pittsburgh, PA | 272 | 1,023 | — | $ | 1,352 | |||||||||||
Total PAC Non-Established Communities | 6,167 | ||||||||||||||||
Average stabilized physical occupancy | 95.3 | % | (1) | ||||||||||||||
Student housing communities: (2) | Average rent per bed | ||||||||||||||||
North by Northwest | Tallahassee, FL | 219 | (2 | ) | 1,250 | 98.4 | % | $ | 725 | ||||||||
SoL | Tempe, AZ | 224 | (2 | ) | 1,296 | 90.0 | % | $ | 715 | ||||||||
Stadium Village (3) | Atlanta, GA | 198 | (2 | ) | 1,466 | 99.4 | % | 670 | |||||||||
Ursa (3) | Waco, TX | 250 | (2 | ) | 1,634 | — | n/a | ||||||||||
Total All PAC units | 10,412 | ||||||||||||||||
(1) Excludes average occupancy for student housing communities. | |||||||||||||||||
(2) North by Northwest has 679 beds, SoL has 639 beds, Stadium Village has 792 beds and Ursa has 840 beds. | |||||||||||||||||
(3) The Company acquired and owns an approximate 99% equity interest in a joint venture which owns both Stadium Village and Ursa. |
Capital Expenditures | |||||||||||||||||||||||||
Recurring | Non-recurring | Total | |||||||||||||||||||||||
Amount | Per Unit | Amount | Per Unit | Amount | Per Unit | ||||||||||||||||||||
Appliances | $ | 107,009 | $ | 15.74 | $ | — | $ | — | $ | 107,009 | $ | 15.74 | |||||||||||||
Carpets | 399,481 | 58.75 | — | — | 399,481 | 58.75 | |||||||||||||||||||
Wood / vinyl flooring | 89,823 | 13.21 | — | — | 89,823 | 13.21 | |||||||||||||||||||
Fire safety | — | — | 10,155 | 1.49 | 10,155 | 1.49 | |||||||||||||||||||
HVAC | 52,318 | 7.69 | — | — | 52,318 | 7.69 | |||||||||||||||||||
Computers, equipment, misc. | 12,944 | 1.90 | 88,639 | 13.04 | 101,583 | 14.94 | |||||||||||||||||||
Exterior painting | — | — | 19,550 | 2.88 | 19,550 | 2.88 | |||||||||||||||||||
Leasing office and other common amenities | 837 | 0.12 | 409,632 | 60.25 | 410,469 | 60.37 | |||||||||||||||||||
Major structural projects | — | — | 2,012,090 | 295.92 | 2,012,090 | 295.92 | |||||||||||||||||||
Cabinets and counter top upgrades | — | — | 483,151 | 71.06 | 483,151 | 71.06 | |||||||||||||||||||
Landscaping and fencing | — | — | 191,055 | 28.10 | 191,055 | 28.10 | |||||||||||||||||||
Parking lot | — | — | 63,843 | 9.39 | 63,843 | 9.39 | |||||||||||||||||||
Common area items | — | — | 115,123 | 16.93 | 115,123 | 16.93 | |||||||||||||||||||
Totals | $ | 662,412 | $ | 97.41 | $ | 3,393,238 | $ | 499.06 | $ | 4,055,650 | $ | 596.47 |
Property name | Location | Year built | GLA (1) | Percent leased | Grocery anchor tenant | ||||||
Castleberry-Southard | Atlanta, GA | 2006 | 80,018 | 100.0 | % | Publix | |||||
Cherokee Plaza | Atlanta, GA | 1958 | 102,864 | 100.0 | % | Kroger | |||||
Lakeland Plaza | Atlanta, GA | 1990 | 301,711 | 95.3 | % | Sprouts | |||||
Powder Springs | Atlanta, GA | 1999 | 77,853 | 95.1 | % | Publix | |||||
Rockbridge Village | Atlanta, GA | 2005 | 102,432 | 95.5 | % | Kroger | |||||
Roswell Wieuca Shopping Center | Atlanta, GA | 2007 | 74,370 | 100.0 | % | The Fresh Market | |||||
Royal Lakes Marketplace | Atlanta, GA | 2008 | 119,493 | 84.4 | % | Kroger | |||||
Sandy Plains Exchange | Atlanta, GA | 1997 | 72,784 | 93.2 | % | Publix | |||||
Summit Point | Atlanta, GA | 2004 | 111,970 | 82.7 | % | Publix | |||||
Thompson Bridge Commons | Atlanta, GA | 2001 | 92,587 | 96.1 | % | Kroger | |||||
Wade Green Village | Atlanta, GA | 1993 | 74,978 | 93.2 | % | Publix | |||||
Woodmont Village | Atlanta, GA | 2002 | 85,639 | 98.4 | % | Kroger | |||||
Woodstock Crossing | Atlanta, GA | 1994 | 66,122 | 92.6 | % | Kroger | |||||
East Gate Shopping Center | Augusta, GA | 1995 | 75,716 | 89.5 | % | Publix | |||||
Fury's Ferry | Augusta, GA | 1996 | 70,458 | 98.6 | % | Publix | |||||
Parkway Centre | Columbus, GA | 1999 | 53,088 | 97.4 | % | Publix | |||||
Spring Hill Plaza | Nashville, TN | 2005 | 61,570 | 100.0 | % | Publix | |||||
Parkway Town Centre | Nashville, TN | 2005 | 65,587 | 100.0 | % | Publix | |||||
The Market at Salem Cove | Nashville, TN | 2010 | 62,356 | 97.8 | % | Publix | |||||
The Market at Victory Village | Nashville, TN | 2007 | 71,300 | 98.5 | % | Publix | |||||
The Overlook at Hamilton Place | Chattanooga, TN | 1992 | 213,095 | 100.0 | % | The Fresh Market | |||||
Shoppes of Parkland | Miami-Ft. Lauderdale, FL | 2000 | 145,720 | 100.0 | % | BJ's Wholesale Club | |||||
Barclay Crossing | Tampa, FL | 1998 | 54,958 | 100.0 | % | Publix | |||||
Deltona Landings | Orlando, FL | 1999 | 59,966 | 100.0 | % | Publix | |||||
University Palms | Orlando, FL | 1993 | 99,172 | 100.0 | % | Publix | |||||
Crossroads Market | Naples, FL | 1993 | 126,895 | 98.1 | % | Publix | |||||
Champions Village | Houston, TX | 1973 | 383,093 | 79.3 | % | Randalls | |||||
Kingwood Glen | Houston, TX | 1998 | 103,397 | 100.0 | % | Kroger | |||||
Independence Square | Dallas, TX | 1977 | 140,218 | 83.0 | % | Tom Thumb | |||||
Oak Park Village | San Antonio, TX | 1970 | 64,855 | 100.0 | % | H.E.B. | |||||
Sweetgrass Corner | Charleston, SC | 1999 | 89,124 | 100.0 | % | Bi-Lo | |||||
Irmo Station | Columbia, SC | 1980 | 99,384 | 92.3 | % | Kroger | |||||
Anderson Central | Greenville Spartanburg, SC | 1999 | 223,211 | 96.1 | % | Walmart | |||||
Fairview Market | Greenville Spartanburg, SC | 1998 | 53,888 | 100.0 | % | Publix | |||||
Rosewood Shopping Center | Columbia, SC | 2002 | 36,887 | 90.2 | % | Publix | |||||
West Town Market | Charlotte, NC | 2004 | 67,883 | 100.0 | % | Harris Teeter | |||||
Heritage Station | Raleigh, NC | 2004 | 72,946 | 100.0 | % | Harris Teeter | |||||
Maynard Crossing | Raleigh, NC | 1996 | 122,781 | 96.3 | % | Kroger | |||||
Southgate Village | Birmingham, AL | 1988 | 75,092 | 100.0 | % | Publix | |||||
Grand total/weighted average | 4,055,461 | 94.5 | % |
Total grocery-anchored shopping center portfolio | ||||||||
Number of leases | Leased GLA | Percent of leased GLA | ||||||
Month to month | 10 | 17,141 | 0.4 | % | ||||
2018 | 94 | 377,237 | 9.9 | % | ||||
2019 | 97 | 561,832 | 14.7 | % | ||||
2020 | 107 | 467,902 | 12.2 | % | ||||
2021 | 92 | 437,532 | 11.4 | % | ||||
2022 | 90 | 313,629 | 8.2 | % | ||||
2023 | 31 | 127,694 | 3.3 | % | ||||
2024 | 18 | 551,844 | 14.4 | % | ||||
2025 | 17 | 293,154 | 7.7 | % | ||||
2026 | 9 | 127,071 | 3.3 | % | ||||
2027 | 16 | 112,101 | 2.9 | % | ||||
2028+ | 16 | 434,426 | 11.6 | % | ||||
Total | 597 | 3,821,563 | 100.0 | % |
Property Name | Location | GLA | Percent leased | |||||
Three Ravinia | Atlanta, GA | 814,000 | 97 | % | ||||
Westridge at La Cantera | San Antonio, TX | 258,000 | 100 | % | ||||
Brookwood Center | Birmingham, AL | 169,000 | 100 | % | ||||
Galleria 75 | Atlanta, GA | 111,000 | 94 | % | ||||
1,352,000 | 98 | % |
Square footage | Percentage of total SF | Annual Base Rent | |||||||||
InterContinental Hotels Group | 495,409 | 36.6 | % | $ | 11,200,200 | ||||||
State Farm Mutual Automobile Insurance Company | 183,168 | 13.5 | % | 3,232,086 | |||||||
Harland Clarke Corporation | 129,016 | 9.5 | % | 2,742,125 | |||||||
United Services Automobile Association | 129,015 | 9.5 | % | 2,967,345 | |||||||
Access Insurance Holdings, Inc. | 77,518 | 5.7 | % | 1,042,629 | |||||||
1,014,126 | 74.8 | % | $ | 21,184,385 |
Office Building portfolio | ||||||
Percent of | ||||||
Year of lease expiration | Rentable square | rented | ||||
feet | square feet | |||||
2018 | 6,270 | 0.5 | % | |||
2019 | 15,745 | 1.2 | % | |||
2020 | 95,656 | 7.3 | % | |||
2021 | 217,000 | 16.5 | % | |||
2022 | 13,891 | 1.1 | % | |||
2023 | 80,272 | 6.1 | % | |||
2024 | 19,147 | 1.5 | % | |||
2025 | 47,870 | 3.6 | % | |||
2026 | — | — | % | |||
2027 | 258,031 | 19.7 | % | |||
2028+ | 558,522 | 42.5 | % | |||
Total | 1,312,404 | 100.0 | % |
• | excluding impairment charges on and gains/losses from sales of depreciable property; |
• | plus depreciation and amortization of real estate assets and deferred leasing costs; and |
• | after adjustments for the Company's proportionate share of unconsolidated partnerships and joint ventures. |
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