FORM 10-Q |
Maryland | 45-2681082 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
2529 Virginia Beach Blvd. Virginia Beach. Virginia | 23452 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $0.01 par value per share | WHLR | Nasdaq Capital Market | ||
Series B Convertible Preferred Stock | WHLRP | Nasdaq Capital Market | ||
Series D Cumulative Convertible Preferred Stock | WHLRD | Nasdaq Capital Market |
Large accelerated filer | ¨ | Accelerated filer | ¨ | |||
Non-accelerated filer | ý | Smaller reporting company | ý | |||
Emerging growth company | ¨ |
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
June 30, 2020 | December 31, 2019 | ||||||
(unaudited) | |||||||
ASSETS: | |||||||
Investment properties, net | $ | 404,386 | $ | 416,215 | |||
Cash and cash equivalents | 7,660 | 5,451 | |||||
Restricted cash | 15,277 | 16,140 | |||||
Rents and other tenant receivables, net | 8,698 | 6,905 | |||||
Assets held for sale | 6,287 | 1,737 | |||||
Above market lease intangibles, net | 4,452 | 5,241 | |||||
Operating lease right-of-use assets | 11,555 | 11,651 | |||||
Deferred costs and other assets, net | 18,871 | 21,025 | |||||
Total Assets | $ | 477,186 | $ | 484,365 | |||
LIABILITIES: | |||||||
Loans payable, net | $ | 331,615 | $ | 340,913 | |||
Liabilities associated with assets held for sale | 4,117 | 2,026 | |||||
Below market lease intangibles, net | 5,554 | 6,716 | |||||
Operating lease liabilities | 11,918 | 11,921 | |||||
Accounts payable, accrued expenses and other liabilities | 12,358 | 9,557 | |||||
Total Liabilities | 365,562 | 371,133 | |||||
Series D Cumulative Convertible Preferred Stock (no par value, 4,000,000 shares authorized, 3,600,636 shares issued and outstanding; $106.50 million and $101.66 million aggregate liquidation preference, respectively) | 92,360 | 87,225 | |||||
EQUITY: | |||||||
Series A Preferred Stock (no par value, 4,500 shares authorized, 562 shares issued and outstanding) | 453 | 453 | |||||
Series B Convertible Preferred Stock (no par value, 5,000,000 authorized, 1,875,748 shares issued and outstanding; $46.90 million aggregate liquidation preference) | 41,131 | 41,087 | |||||
Common Stock ($0.01 par value, 18,750,000 shares authorized, 9,695,899 and 9,694,284 shares issued and outstanding, respectively) | 97 | 97 | |||||
Additional paid-in capital | 233,884 | 233,870 | |||||
Accumulated deficit | (258,372 | ) | (251,580 | ) | |||
Total Shareholders’ Equity | 17,193 | 23,927 | |||||
Noncontrolling interests | 2,071 | 2,080 | |||||
Total Equity | 19,264 | 26,007 | |||||
Total Liabilities and Equity | $ | 477,186 | $ | 484,365 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
REVENUE: | |||||||||||||||
Rental revenues | $ | 14,809 | $ | 15,391 | $ | 30,164 | $ | 31,161 | |||||||
Other revenues | 360 | 141 | 579 | 366 | |||||||||||
Total Revenue | 15,169 | 15,532 | 30,743 | 31,527 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operations | 4,573 | 4,595 | 9,296 | 9,321 | |||||||||||
Non-REIT management and leasing services | — | 1 | — | 24 | |||||||||||
Depreciation and amortization | 4,446 | 5,287 | 9,245 | 11,103 | |||||||||||
Impairment of notes receivable | — | 5,000 | — | 5,000 | |||||||||||
Impairment of assets held for sale | — | 1,147 | 600 | 1,147 | |||||||||||
Corporate general & administrative | 1,615 | 1,380 | 3,487 | 3,194 | |||||||||||
Total Operating Expenses | 10,634 | 17,410 | 22,628 | 29,789 | |||||||||||
(Loss) gain on disposal of properties | — | (331 | ) | (26 | ) | 1,508 | |||||||||
Operating Income (Loss) | 4,535 | (2,209 | ) | 8,089 | 3,246 | ||||||||||
Interest income | — | — | 1 | 1 | |||||||||||
Interest expense | (4,273 | ) | (4,947 | ) | (8,673 | ) | (9,740 | ) | |||||||
Other expense | — | — | (1,024 | ) | — | ||||||||||
Net Income (Loss) Before Income Taxes | 262 | (7,156 | ) | (1,607 | ) | (6,493 | ) | ||||||||
Income tax benefit (expense) | 6 | (7 | ) | (2 | ) | (15 | ) | ||||||||
Net Income (Loss) | 268 | (7,163 | ) | (1,609 | ) | (6,508 | ) | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | 14 | (112 | ) | 5 | (99 | ) | |||||||||
Net Income (Loss) Attributable to Wheeler REIT | 254 | (7,051 | ) | (1,614 | ) | (6,409 | ) | ||||||||
Preferred Stock dividends - undeclared | (3,657 | ) | (3,658 | ) | (7,314 | ) | (7,315 | ) | |||||||
Net Loss Attributable to Wheeler REIT Common Shareholders | $ | (3,403 | ) | $ | (10,709 | ) | $ | (8,928 | ) | $ | (13,724 | ) | |||
Loss per share: | |||||||||||||||
Basic and Diluted | $ | (0.35 | ) | $ | (1.10 | ) | $ | (0.92 | ) | $ | (1.42 | ) | |||
Weighted-average number of shares: | |||||||||||||||
Basic and Diluted | 9,695,651 | 9,693,271 | 9,694,967 | 9,650,000 | |||||||||||
Series A | Series B | Noncontrolling | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | Interests | Total | ||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Units | Value | Equity | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 562 | $ | 453 | 1,875,748 | $ | 41,087 | 9,694,284 | $ | 97 | $ | 233,870 | $ | (251,580 | ) | $ | 23,927 | 234,019 | $ | 2,080 | $ | 26,007 | ||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | 22 | — | — | — | — | 22 | — | — | 22 | |||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | (2,589 | ) | (2,589 | ) | — | — | (2,589 | ) | ||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | (1,868 | ) | (1,868 | ) | — | (9 | ) | (1,877 | ) | |||||||||||||||||||||||||||
Balance, March 31, 2020 (Unaudited) | 562 | 453 | 1,875,748 | 41,109 | 9,694,284 | 97 | 233,870 | (256,037 | ) | 19,492 | 234,019 | 2,071 | 21,563 | ||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | 22 | — | — | — | — | 22 | — | — | 22 | |||||||||||||||||||||||||||||||
Conversion of operating partnership units to Common Stock | — | — | — | — | 1,615 | — | 2 | — | 2 | (1,615 | ) | (2 | ) | — | |||||||||||||||||||||||||||||
Adjustments for noncontrolling interest in operating partnership | — | — | — | — | — | — | 12 | — | 12 | — | (12 | ) | — | ||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | (2,589 | ) | (2,589 | ) | — | — | (2,589 | ) | ||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 254 | 254 | — | 14 | 268 | |||||||||||||||||||||||||||||||
Balance, June 30, 2020 (Unaudited) | 562 | $ | 453 | 1,875,748 | $ | 41,131 | 9,695,899 | $ | 97 | $ | 233,884 | $ | (258,372 | ) | $ | 17,193 | 232,404 | $ | 2,071 | $ | 19,264 | ||||||||||||||||||||||
Series A | Series B | Noncontrolling | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | Interests | Total | ||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Units | Value | Equity | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 562 | $ | 453 | 1,875,748 | $ | 41,000 | 9,511,464 | $ | 95 | $ | 233,697 | $ | (233,184 | ) | $ | 42,061 | 235,032 | $ | 2,194 | $ | 44,255 | ||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | 22 | — | — | — | — | 22 | — | — | 22 | |||||||||||||||||||||||||||||||
Issuance of Common Stock under Share Incentive Plan | — | — | — | — | 181,807 | 2 | 164 | — | 166 | — | — | 166 | |||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | (2,589 | ) | (2,589 | ) | — | — | (2,589 | ) | ||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 642 | 642 | — | 13 | 655 | |||||||||||||||||||||||||||||||
Balance, March 31, 2019 (Unaudited) | 562 | 453 | 1,875,748 | 41,022 | 9,693,271 | 97 | 233,861 | (235,131 | ) | 40,302 | 235,032 | 2,207 | 42,509 | ||||||||||||||||||||||||||||||
Accretion of Series B Preferred Stock discount | — | — | — | 22 | — | — | — | — | 22 | — | — | 22 | |||||||||||||||||||||||||||||||
Dividends and distributions | — | — | — | — | — | — | — | (2,590 | ) | (2,590 | ) | — | — | (2,590 | ) | ||||||||||||||||||||||||||||
Net Loss | — | — | — | — | — | — | — | (7,051 | ) | (7,051 | ) | — | (112 | ) | (7,163 | ) | |||||||||||||||||||||||||||
Balance, June 30, 2019 (Unaudited) | 562 | $ | 453 | 1,875,748 | $ | 41,044 | 9,693,271 | $ | 97 | $ | 233,861 | $ | (244,772 | ) | $ | 30,683 | 235,032 | $ | 2,095 | $ | 32,778 |
For the Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Loss | $ | (1,609 | ) | $ | (6,508 | ) | |
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | |||||||
Depreciation | 5,800 | 6,067 | |||||
Amortization | 3,445 | 5,036 | |||||
Loan cost amortization | 562 | 927 | |||||
Above (below) market lease amortization, net | (373 | ) | (420 | ) | |||
Straight-line expense | 92 | 93 | |||||
Share-based compensation | — | 172 | |||||
Loss (gain) on disposal of properties | 26 | (1,508 | ) | ||||
Credit losses on operating lease receivables | 585 | 200 | |||||
Impairment of notes receivable | — | 5,000 | |||||
Impairment of assets held for sale | 600 | 1,147 | |||||
Net changes in assets and liabilities: | |||||||
Rent and other tenant receivables, net | (1,943 | ) | (60 | ) | |||
Unbilled rent | (439 | ) | 30 | ||||
Deferred costs and other assets, net | (1,342 | ) | (562 | ) | |||
Accounts payable, accrued expenses and other liabilities | 2,090 | (1,805 | ) | ||||
Net operating cash flows used in discontinued operations | — | (2 | ) | ||||
Net cash provided by operating activities | 7,494 | 7,807 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Investment property acquisitions, net of restricted cash acquired | — | (24 | ) | ||||
Capital expenditures | (544 | ) | (946 | ) | |||
Cash received from disposal of properties | 1,665 | 3,584 | |||||
Cash received from disposal of properties-discontinued operations | — | 19 | |||||
Net cash provided by investing activities | 1,121 | 2,633 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payments for deferred financing costs | (326 | ) | (293 | ) | |||
Loan proceeds | 13,350 | 16,500 | |||||
Loan principal payments | (20,845 | ) | (24,286 | ) | |||
Paycheck Protection Program proceeds | 552 | — | |||||
Net cash used in financing activities | (7,269 | ) | (8,079 | ) | |||
INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,346 | 2,361 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 21,591 | 17,999 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | 22,937 | $ | 20,360 | |||
Supplemental Disclosures: | |||||||
Non-Cash Transactions: | |||||||
Conversion of common units to common stock | $ | 2 | $ | — | |||
Accretion of preferred stock discounts | $ | 341 | $ | 341 | |||
Other Cash Transactions: | |||||||
Cash paid for taxes | $ | — | $ | 6 | |||
Cash paid for interest | $ | 7,382 | $ | 8,930 | |||
The following table provides a reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | $ | 7,660 | $ | 3,934 | |||
Restricted cash | 15,277 | 16,426 | |||||
Cash, cash equivalents, and restricted cash | $ | 22,937 | $ | 20,360 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Minimum rent | $ | 12,050 | $ | 11,974 | $ | 24,163 | $ | 24,435 | |||||||
Tenant reimbursements - variable lease revenue | 3,141 | 3,450 | 6,429 | 6,737 | |||||||||||
Percentage rent - variable lease revenue | 49 | 77 | 157 | 189 | |||||||||||
Lease termination fees | 12 | — | 74 | 49 | |||||||||||
Other | 348 | 141 | 505 | 317 | |||||||||||
Total | 15,600 | 15,642 | 31,328 | 31,727 | |||||||||||
Credit losses on operating lease receivables | (431 | ) | (110 | ) | (585 | ) | (200 | ) | |||||||
Total | $ | 15,169 | $ | 15,532 | $ | 30,743 | $ | 31,527 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Professional fees | $ | 919 | $ | 328 | $ | 1,945 | $ | 927 | |||||||
Compensation and benefits | 375 | 431 | 782 | 1,107 | |||||||||||
Corporate administration | 294 | 303 | 625 | 608 | |||||||||||
Advertising costs for leasing activities | 21 | 114 | 52 | 163 | |||||||||||
Other | 6 | 204 | 83 | 389 | |||||||||||
Total | $ | 1,615 | $ | 1,380 | $ | 3,487 | $ | 3,194 |
June 30, 2020 | December 31, 2019 | ||||||
(unaudited) | |||||||
Land and land improvements | $ | 98,981 | $ | 100,599 | |||
Buildings and improvements | 360,956 | 366,082 | |||||
Investment properties at cost | 459,937 | 466,681 | |||||
Less accumulated depreciation | (55,551 | ) | (50,466 | ) | |||
Investment properties, net | $ | 404,386 | $ | 416,215 |
June 30, 2020 | December 31, 2019 | |||||||
(unaudited) | ||||||||
Investment properties, net | $ | 6,189 | $ | 1,651 | ||||
Rents and other tenant receivables, net | 38 | 77 | ||||||
Deferred costs and other assets, net | 60 | 9 | ||||||
Total assets held for sale | $ | 6,287 | $ | 1,737 |
June 30, 2020 | December 31, 2019 | |||||||
(unaudited) | ||||||||
Loans payable | $ | 4,013 | $ | 1,974 | ||||
Accounts payable, accrued expenses and other liabilities | 104 | 52 | ||||||
Total liabilities associated with assets held for sale | $ | 4,117 | $ | 2,026 |
Disposal Date | Property | Contract Price | Gain (loss) | Net Proceeds | ||||||||||
(in thousands, unaudited) | ||||||||||||||
January 21, 2020 | St. Matthews | $ | 1,775 | $ | (26 | ) | $ | 1,665 | ||||||
March 18, 2019 | Graystone Crossing | 6,000 | 1,452 | 1,744 | ||||||||||
February 7, 2019 | Harbor Pointe Land Parcel (1.28 acres) | 550 | — | 19 | ||||||||||
January 11, 2019 | Jenks Plaza | 2,200 | 387 | 1,840 |
June 30, 2020 | December 31, 2019 | ||||||
(unaudited) | |||||||
Leases in place, net | $ | 12,355 | $ | 14,968 | |||
Ground lease sandwich interest, net | 2,078 | 2,215 | |||||
Tenant relationships, net | 1,636 | 2,173 | |||||
Lease origination costs, net | 1,025 | 1,038 | |||||
Legal and marketing costs, net | 29 | 43 | |||||
Other | 1,748 | 588 | |||||
Total deferred costs and other assets, net | $ | 18,871 | $ | 21,025 |
Leases In Place, net | Ground Lease Sandwich Interest, net | Tenant Relationships, net | Lease Origination Costs, net | Legal & Marketing Costs, net | Total | ||||||||||||||||||
For the remaining six months ending December 31, 2020 | $ | 1,967 | $ | 137 | $ | 324 | $ | 90 | $ | 7 | $ | 2,525 | |||||||||||
December 31, 2021 | 2,762 | 274 | 448 | 169 | 8 | 3,661 | |||||||||||||||||
December 31, 2022 | 2,119 | 274 | 354 | 127 | 6 | 2,880 | |||||||||||||||||
December 31, 2023 | 1,638 | 274 | 227 | 109 | 5 | 2,253 | |||||||||||||||||
December 31, 2024 | 1,124 | 274 | 128 | 93 | 3 | 1,622 | |||||||||||||||||
December 31, 2025 | 799 | 274 | 62 | 72 | — | 1,207 | |||||||||||||||||
Thereafter | 1,946 | 571 | 93 | 365 | — | 2,975 | |||||||||||||||||
$ | 12,355 | $ | 2,078 | $ | 1,636 | $ | 1,025 | $ | 29 | $ | 17,123 |
Property/Description | Monthly Payment | Interest Rate | Maturity | June 30, 2020 | December 31, 2019 | ||||||||||||
Rivergate | $ | 112,578 | LIBOR + 295 basis points | June 2020 | $ | 21,402 | $ | 21,545 | |||||||||
Tuckernuck | Interest only | 3.88 | % | August 2020 | 5,278 | 5,344 | |||||||||||
Columbia Fire Station (1) | $ | 25,580 | 4.00 | % | September 2020 | 4,013 | 4,051 | ||||||||||
First National Bank Line of Credit (7) | $ | 24,656 | LIBOR + 300 basis points | September 2020 | 1,156 | 1,214 | |||||||||||
Lumber River | $ | 10,723 | LIBOR + 350 basis points | October 2020 | 1,390 | 1,404 | |||||||||||
KeyBank Credit Agreement (6) | $ | 350,000 | LIBOR + 350 basis points | December 2020 | 5,400 | 17,879 | |||||||||||
JANAF Bravo | $ | 36,935 | 4.65 | % | January 2021 | 6,336 | 6,372 | ||||||||||
Walnut Hill Plaza | $ | 26,850 | 5.50 | % | September 2022 | 3,730 | 3,759 | ||||||||||
Litchfield Market Village | $ | 46,057 | 5.50 | % | November 2022 | 7,418 | 7,452 | ||||||||||
Twin City Commons | $ | 17,827 | 4.86 | % | January 2023 | 2,950 | 2,983 | ||||||||||
New Market | $ | 48,747 | 5.65 | % | June 2023 | 6,612 | 6,713 | ||||||||||
Benefit Street Note (3) | $ | 53,185 | 5.71 | % | June 2023 | 7,308 | 7,361 | ||||||||||
Deutsche Bank Note (2) | $ | 33,340 | 5.71 | % | July 2023 | 5,604 | 5,642 | ||||||||||
JANAF | $ | 333,159 | 4.49 | % | July 2023 | 49,747 | 50,599 | ||||||||||
Tampa Festival | $ | 50,797 | 5.56 | % | September 2023 | 8,012 | 8,077 | ||||||||||
Forrest Gallery | $ | 50,973 | 5.40 | % | September 2023 | 8,304 | 8,381 | ||||||||||
Riversedge North | $ | 11,436 | 5.77 | % | December 2023 | 1,756 | 1,767 | ||||||||||
South Carolina Food Lions Note (5) | $ | 68,320 | 5.25 | % | January 2024 | 11,576 | 11,675 | ||||||||||
Cypress Shopping Center | $ | 34,360 | 4.70 | % | July 2024 | 6,230 | 6,268 | ||||||||||
Port Crossing | $ | 34,788 | 4.84 | % | August 2024 | 5,971 | 6,032 | ||||||||||
Freeway Junction | $ | 41,798 | 4.60 | % | September 2024 | 7,655 | 7,725 | ||||||||||
Harrodsburg Marketplace | $ | 19,112 | 4.55 | % | September 2024 | 3,380 | 3,416 | ||||||||||
Bryan Station | $ | 23,489 | 4.52 | % | November 2024 | 4,360 | 4,394 | ||||||||||
Crockett Square | Interest only | 4.47 | % | December 2024 | 6,338 | 6,338 | |||||||||||
Pierpont Centre | $ | 39,435 | 4.15 | % | February 2025 | 8,068 | 8,113 | ||||||||||
Shoppes at Myrtle Park | $ | 33,180 | 4.45 | % | February 2025 | 5,957 | — | ||||||||||
Folly Road | $ | 41,482 | 4.65 | % | March 2025 | 7,300 | 5,922 | ||||||||||
Alex City Marketplace | Interest only | 3.95 | % | April 2025 | 5,750 | 5,750 | |||||||||||
Butler Square | Interest only | 3.90 | % | May 2025 | 5,640 | 5,640 | |||||||||||
Brook Run Shopping Center | Interest only | 4.08 | % | June 2025 | 10,950 | 10,950 | |||||||||||
Beaver Ruin Village I and II | Interest only | 4.73 | % | July 2025 | 9,400 | 9,400 | |||||||||||
Sunshine Shopping Plaza | Interest only | 4.57 | % | August 2025 | 5,900 | 5,900 | |||||||||||
Barnett Portfolio (4) | Interest only | 4.30 | % | September 2025 | 8,770 | 8,770 | |||||||||||
Fort Howard Shopping Center | Interest only | 4.57 | % | October 2025 | 7,100 | 7,100 | |||||||||||
Conyers Crossing | Interest only | 4.67 | % | October 2025 | 5,960 | 5,960 | |||||||||||
Grove Park Shopping Center | Interest only | 4.52 | % | October 2025 | 3,800 | 3,800 | |||||||||||
Parkway Plaza | Interest only | 4.57 | % | October 2025 | 3,500 | 3,500 | |||||||||||
Winslow Plaza | $ | 24,295 | 4.82 | % | December 2025 | 4,598 | 4,620 | ||||||||||
JANAF BJ's | $ | 29,964 | 4.95 | % | January 2026 | 4,901 | 4,957 | ||||||||||
Chesapeake Square | $ | 23,857 | 4.70 | % | August 2026 | 4,317 | 4,354 | ||||||||||
Berkley/Sangaree/Tri-County | Interest only | 4.78 | % | December 2026 | 9,400 | 9,400 | |||||||||||
Riverbridge | Interest only | 4.48 | % | December 2026 | 4,000 | 4,000 | |||||||||||
Franklin Village | $ | 45,336 | 4.93 | % | January 2027 | 8,465 | 8,516 | ||||||||||
Village of Martinsville | $ | 89,664 | 4.28 | % | July 2029 | 16,197 | 16,351 | ||||||||||
Laburnum Square | Interest only | 4.28 | % | September 2029 | 7,665 | 7,665 | |||||||||||
Total Principal Balance (1) | 339,564 | 347,059 | |||||||||||||||
Unamortized debt issuance cost (1) | (3,936 | ) | (4,172 | ) | |||||||||||||
Total Loans Payable, including assets held for sale | 335,628 | 342,887 | |||||||||||||||
Less loans payable on assets held for sale, net loan amortization costs | 4,013 | 1,974 | |||||||||||||||
Total Loans Payable, net | $ | 331,615 | $ | 340,913 |
• | Entered into the Second Amendment to the KeyBank Credit Agreement (the "Second Amendment") on January 24, 2020, effective December 21, 2019, and the Company began making monthly principal payments of $350 thousand on November 1, 2019. The Second Amendment, among other provisions, requires a pledge of additional collateral of $15.00 million in residual equity interests and fully matures on June 30, 2020. |
• | Entered into a Third Amendment to the KeyBank Credit Agreement (the "Third Amendment") on July 21, 2020. The Third Amendment, among other provisions, reduces the pledge of additional collateral by two properties and extends the maturity to December 31, 2020. |
• | The KeyBank Credit Agreement had principal paydowns as noted below: |
• | $1.78 million paydown from St. Matthews sale proceeds on January 21, 2020; |
• | $5.75 million paydown from Shoppes at Myrtle Park refinancing proceeds on January 23, 2020; and |
• | $2.50 million paydown from cash released to the Company from restricted cash accounts on May 20, 2020. |
For the remaining six months ended December 31, 2020 | $ | 41,053 | |
December 31, 2021 | 11,333 | ||
December 31, 2022 | 16,080 | ||
December 31, 2023 | 85,576 | ||
December 31, 2024 | 44,240 | ||
December 31, 2025 | 91,426 | ||
Thereafter | 49,856 | ||
Total principal repayments and debt maturities | $ | 339,564 |
• | continued suspension of Series A Preferred, Series B Preferred and Series D Preferred dividends; |
• | available cash and cash equivalents; |
• | cash flows from operating activities; |
• | refinancing of maturing debt; |
• | loan forbearance; |
• | possible sale of six undeveloped land parcels; and |
• | sale of additional properties, if necessary. |
For the remaining six months ended December 31, 2020 | $ | 23,010 | |
December 31, 2021 | 42,654 | ||
December 31, 2022 | 37,062 | ||
December 31, 2023 | 30,949 | ||
December 31, 2024 | 24,050 | ||
December 31, 2025 | 17,672 | ||
Thereafter | 40,927 | ||
Total minimum rents | $ | 216,324 |
Series D Preferred | |||
(unaudited) | |||
Balance December 31, 2019 | $ | 87,225 | |
Accretion of Preferred Stock discount | 148 | ||
Undeclared dividends | 2,419 | ||
Balance March 31, 2020 | 89,792 | ||
Accretion of Preferred Stock discount | 149 | ||
Undeclared dividends | 2,419 | ||
Balance June 30, 2020 | $ | 92,360 |
Series D Preferred | |||
(unaudited) | |||
Balance December 31, 2018 | $ | 76,955 | |
Accretion of Preferred Stock discount | 148 | ||
Undeclared dividends | 2,419 | ||
Balance March 31, 2019 | 79,522 | ||
Accretion of Preferred Stock discount | 149 | ||
Undeclared dividends | 2,419 | ||
Balance June 30, 2019 | $ | 82,090 |
June 30, 2020 | ||||||
Outstanding shares | Potential Dilutive Shares | |||||
(unaudited) | ||||||
Common units | 232,404 | 232,404 | ||||
Series B Preferred Stock | 1,875,748 | 1,172,343 | ||||
Series D Preferred Stock | 3,600,636 | 5,307,541 |
Series A Preferred | Series B Preferred | Series D Preferred | ||||||||||||||||
Record Date/Arrears Date | Arrears | Per Share | Arrears | Per Share | Arrears | Per Share | ||||||||||||
For the three months ended June 30, 2020 | $ | 13 | 22.50 | $ | 1,055 | 0.56 | $ | 2,419 | 0.67 | |||||||||
For the six months ended June 30, 2020 | $ | 26 | 22.50 | $ | 2,110 | 0.56 | $ | 4,838 | 0.67 | |||||||||
For the three months ended June 30, 2019 | $ | 13 | 22.50 | $ | 1,055 | 0.56 | $ | 2,419 | 0.67 | |||||||||
For the six months ended June 30, 2019 | $ | 26 | 22.50 | $ | 2,110 | 0.56 | $ | 4,838 | 0.67 |
For the Six Months Ended June 30, | Shares Issued | Market Value | ||||
(in thousands except for share amounts, unaudited) | ||||||
2019 | 181,807 | 166 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | Expiration Year | ||||||||||||
Amscot | $ | 7 | $ | 6 | $ | 13 | $ | 12 | 2045 | |||||||
Beaver Ruin Village | 13 | 13 | 27 | 27 | 2054 | |||||||||||
Beaver Ruin Village II | 5 | 5 | 11 | 11 | 2056 | |||||||||||
Leased office space Charleston, SC | — | 25 | — | 50 | 2019 | |||||||||||
Moncks Corner | 31 | 31 | 61 | 61 | 2040 | |||||||||||
Devine Street (1) | 99 | 99 | 198 | 198 | 2051 | |||||||||||
JANAF (2) | 72 | 68 | 143 | 135 | 2069 | |||||||||||
Total ground leases | $ | 227 | $ | 247 | $ | 453 | $ | 494 |
Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | ||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 145 | $ | 291 | |||
Leased assets obtained in exchange for new operating lease liabilities | $ | — | $ | — |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 169 | $ | 339 | |||
Leased assets obtained in exchange for new operating lease liabilities | $ | — | $ | 11,904 |
For the remaining six months ended December 31, 2020 | $ | 292 | |
December 31, 2021 | 637 | ||
December 31, 2022 | 640 | ||
December 31, 2023 | 642 | ||
December 31, 2024 | 644 | ||
December 31, 2025 | 648 | ||
Thereafter | 22,460 | ||
Total minimum lease payments (1) | 25,963 | ||
Discount | (14,045 | ) | |
Operating lease liabilities | $ | 11,918 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
(unaudited) | |||||||
Amounts paid to affiliates | $ | 37 | $ | — | |||
Amounts received from affiliates | $ | — | $ | 12 |
• | negative impacts from continued spread of COVID-19, including on the U.S. or global economy or on our business, financial position or results of operations; |
• | the level of rental revenue we achieve from our assets; |
• | the market value of our assets and the supply of, and demand for, retail real estate in which we invest; |
• | the state of the U.S. economy generally, or in specific geographic regions; |
• | the impact of economic conditions on our business; |
• | the conditions in the local markets in which we operate and our concentration in those markets, as well as changes in national economic and market conditions; |
• | consumer spending and confidence trends; |
• | our ability to enter into new leases or to renew leases with existing tenants at the properties we own; |
• | our ability to anticipate changes in consumer buying practices and the space needs of tenants; |
• | the competitive landscape impacting the properties we own and their tenants; |
• | our relationships with our tenants and their financial condition and liquidity; |
• | our ability to continue to qualify as a real estate investment trust for U.S. federal income tax (a “REIT”); |
• | our use of debt as part of our financing strategy and our ability to make payments or to comply with our loan covenants; |
• | the level of our operating expenses; |
• | changes in interest rates that could impact the market price of our common stock and the cost of our borrowings; and |
• | legislative and regulatory changes (including changes to laws governing the taxation of REITs). |
• | The Company’s sixty retail shopping centers are open and operating. As of June 30, 2020, all of the Company’s shopping centers feature necessity-based tenants, with forty-five of the sixty properties anchored by grocery and/or drug stores. |
• | Beginning in April 2020, the Company received certain rent relief requests, most often in the form of rent deferral requests, as a result of COVID-19. The Company evaluates each tenant rent relief request on an individual basis, considering a number of factors. Not all tenant requests ultimately result in concessions or modification of agreements, nor is the Company forgoing its contractual rights under its lease agreements. As a result, the Company granted 102 concessions as of July 30, 2020 and modified 46 leases as of June 30, 2020, with a weighted average rate increase of 5.77% and 4.9 year weighted average extension term. |
• | The Company has received payment of approximately 83% of contractual base rent and tenant reimbursements billed for the three months ended June 30, 2020. |
• | Of those tenants with rent in arrears for the three months ended June 30, 2020, 62% are considered to be national and regional retailers. |
• | As of June 30, 2020, $355 thousand of accounts receivable relate to short term deferral of rents. |
• | Along with the Company’s tenants and the communities they and the Company together serve, the health and safety of the Company’s employees and their families is a top priority. The Company has adapted its operations to protect employees, including implementing a work from home policy and the Company’s IT systems have enabled its team to work seamlessly. |
• | The Company is in constant communication with its tenants and sharing resources on how to identify local, state and federal resources that may be available to support their businesses and employees during the pandemic, including stimulus funds that may be available under the Coronavirus Aid, Relief and Economic Security Act of 2020. |
• | The Company currently has approximately $7.66 million in cash and cash equivalents and an additional $15.28 million in restricted cash. |
• | Given the uncertainty of the COVID-19 pandemic’s near and potential long-term impact on the Company’s business, and in order to preserve its liquidity position, the Company has continued its suspension of any dividend distributions. |
Disposal Date | Property | Contract Price | Gain (loss) | Net Proceeds | ||||||||||
(in thousands, unaudited) | ||||||||||||||
January 21, 2020 | St. Matthews, St. Matthews, SC | $ | 1,775 | $ | (26 | ) | $ | 1,665 |
• | $1.78 million paydown from St. Matthews sale proceeds on January 21, 2020; |
• | $5.75 million paydown from Shoppes at Myrtle Park refinancing proceeds on January 23, 2020; and |
• | $2.50 million paydown from cash released to the Company from restricted cash accounts on May 20, 2020. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Renewals(1): | |||||||||||||||
Leases renewed with rate increase (sq feet) | 255,380 | 90,113 | 392,979 | 180,971 | |||||||||||
Leases renewed with rate decrease (sq feet) | 8,755 | 2,500 | 35,735 | 30,156 | |||||||||||
Leases renewed with no rate change (sq feet) | 43,628 | 6,183 | 64,206 | 8,583 | |||||||||||
Total leases renewed (sq feet) | 307,763 | 98,796 | 492,920 | 219,710 | |||||||||||
Leases renewed with rate increase (count) | 53 | 30 | 83 | 49 | |||||||||||
Leases renewed with rate decrease (count) | 6 | 1 | 11 | 8 | |||||||||||
Leases renewed with no rate change (count) | 12 | 3 | 18 | 5 | |||||||||||
Total leases renewed (count) | 71 | 34 | 112 | 62 | |||||||||||
Option exercised (count) | 4 | 10 | 9 | 13 | |||||||||||
Weighted average on rate increases (per sq foot) | $ | 0.62 | $ | 0.91 | $ | 1.05 | $ | 0.81 | |||||||
Weighted average on rate decreases (per sq foot) | $ | (0.40 | ) | $ | (13.34 | ) | $ | (1.76 | ) | $ | (3.36 | ) | |||
Weighted average rate on all renewals (per sq foot) | $ | 0.50 | $ | 0.49 | $ | 0.71 | $ | 0.25 | |||||||
Weighted average change over prior rates | 4.92 | % | 3.50 | % | 6.81 | % | 2.29 | % | |||||||
New Leases(1) (2): | |||||||||||||||
New leases (sq feet) | 81,780 | 16,018 | 109,402 | 47,218 | |||||||||||
New leases (count) | 16 | 11 | 30 | 19 | |||||||||||
Weighted average rate (per sq foot) | $ | 9.46 | $ | 14.89 | $ | 11.00 | $ | 13.49 | |||||||
Gross Leasable Area ("GLA") expiring during the next 6 months, including month-to-month leases | 6.00 | % | 4.17 | % | 6.00 | % | 4.17 | % |
(1) | Lease data presented is based on average rate per square foot over the renewed or new lease term. |
(2) | The Company does not include ground leases entered into for the purposes of new lease sq feet and weighted average rate (per sq foot) on new leases. |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended Changes | Six Months Ended Changes | ||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | Change | % Change | Change | % Change | ||||||||||||||||||||||
PROPERTY DATA: | |||||||||||||||||||||||||||||
Number of properties owned and leased at period end (1) | 60 | 62 | 60 | 62 | (2 | ) | (3.23 | )% | (2 | ) | (3.23 | )% | |||||||||||||||||
Aggregate gross leasable area at period end (1) | 5,568,934 | 5,690,446 | 5,568,934 | 5,690,446 | (121,512 | ) | (2.14 | )% | (121,512 | ) | (2.14 | )% | |||||||||||||||||
Ending leased rate at period end (1) | 90.1 | % | 89.4 | % | 90.1 | % | 89.4 | % | 0.7 | % | 0.78 | % | 0.7 | % | 0.78 | % | |||||||||||||
FINANCIAL DATA: | |||||||||||||||||||||||||||||
Rental revenues | $ | 14,809 | $ | 15,391 | $ | 30,164 | $ | 31,161 | $ | (582 | ) | (3.78 | )% | $ | (997 | ) | (3.20 | )% | |||||||||||
Other revenues | 360 | 141 | 579 | 366 | 219 | 155.32 | % | 213 | 58.20 | % | |||||||||||||||||||
Total Revenue | 15,169 | 15,532 | 30,743 | 31,527 | (363 | ) | (2.34 | )% | (784 | ) | (2.49 | )% | |||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||||||||
Property operations | 4,573 | 4,595 | 9,296 | 9,321 | (22 | ) | (0.48 | )% | (25 | ) | (0.27 | )% | |||||||||||||||||
Non-REIT management and leasing services | — | 1 | — | 24 | (1 | ) | (100.00 | )% | (24 | ) | (100.00 | )% | |||||||||||||||||
Depreciation and amortization | 4,446 | 5,287 | 9,245 | 11,103 | (841 | ) | (15.91 | )% | (1,858 | ) | (16.73 | )% | |||||||||||||||||
Impairment of notes receivable | — | 5,000 | — | 5,000 | (5,000 | ) | (100.00 | )% | (5,000 | ) | (100.00 | )% | |||||||||||||||||
Impairment of assets held for sale | — | 1,147 | 600 | 1,147 | (1,147 | ) | (100.00 | )% | (547 | ) | (47.69 | )% | |||||||||||||||||
Corporate general & administrative | 1,615 | 1,380 | 3,487 | 3,194 | 235 | 17.03 | % | 293 | 9.17 | % | |||||||||||||||||||
Total Operating Expenses | 10,634 | 17,410 | 22,628 | 29,789 | (6,776 | ) | (38.92 | )% | (7,161 | ) | (24.04 | )% | |||||||||||||||||
(Loss) gain on disposal of properties | — | (331 | ) | (26 | ) | 1,508 | 331 | 100.00 | % | (1,534 | ) | (101.72 | )% | ||||||||||||||||
Operating Income | 4,535 | (2,209 | ) | 8,089 | 3,246 | 6,744 | 305.30 | % | 4,843 | 149.20 | % | ||||||||||||||||||
Interest income | — | — | 1 | 1 | — | — | % | — | — | % | |||||||||||||||||||
Interest expense | (4,273 | ) | (4,947 | ) | (8,673 | ) | (9,740 | ) | 674 | 13.62 | % | 1,067 | 10.95 | % | |||||||||||||||
Other expense | — | — | (1,024 | ) | — | — | — | % | (1,024 | ) | (100.00 | )% | |||||||||||||||||
Net (Loss) Income Before Income Taxes | 262 | (7,156 | ) | (1,607 | ) | (6,493 | ) | 7,418 | 103.66 | % | 4,886 | 75.25 | % | ||||||||||||||||
Income tax benefit (expense) | 6 | (7 | ) | (2 | ) | (15 | ) | 13 | 185.71 | % | 13 | 86.67 | % | ||||||||||||||||
Net Income (Loss) | 268 | (7,163 | ) | (1,609 | ) | (6,508 | ) | 7,431 | 103.74 | % | 4,899 | 75.28 | % | ||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 14 | (112 | ) | 5 | (99 | ) | 126 | 112.50 | % | 104 | 105.05 | % | |||||||||||||||||
Net Income (Loss) Attributable to Wheeler REIT | $ | 254 | $ | (7,051 | ) | $ | (1,614 | ) | $ | (6,409 | ) | $ | 7,305 | 103.60 | % | $ | 4,795 | 74.82 | % |
• | $591 thousand and $1.02 million increase, respectively, in professional fees primarily related to increase in costs associated with litigation and corporate counsel, partially offset by a decrease in tax consulting fees which did not occur in 2020; offset by |
• | $56 thousand and $325 thousand decrease, respectively, in compensation and benefits primarily driven by a reduction in personnel and decrease in director's compensation; |
• | $93 thousand and $111 thousand decrease, respectively, in advertising costs for leasing activities related to cancellation of conferences due to COVID-19; and |
• | $198 thousand and $306 thousand decrease, respectively, in other costs primarily associated with a reduction in taxes and licenses and capital and debt financing activities. |
• | Discontinued operations |
• | Harbor Pointe land parcel (sold February 7, 2019); |
• | Continuing operations |
• | Jenks Plaza (sold January 11, 2019); |
• | Graystone Crossing (sold March 18, 2019); |
• | Perimeter Square (sold July 12, 2019); and |
• | St. Matthews (sold January 21, 2020). |
Three Months Ended June 30, | |||||||||||||||||||||||
Same Store | Non-same Store | Total | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
(in thousands, unaudited) | |||||||||||||||||||||||
Net Income (Loss) | $ | 272 | $ | (5,744 | ) | $ | (4 | ) | $ | (1,419 | ) | $ | 268 | $ | (7,163 | ) | |||||||
Adjustments: | |||||||||||||||||||||||
Income tax (benefit) expense | (6 | ) | 7 | — | — | (6 | ) | 7 | |||||||||||||||
Interest expense | 4,273 | 4,837 | — | 110 | 4,273 | 4,947 | |||||||||||||||||
Loss on disposal of properties | — | — | — | 331 | — | 331 | |||||||||||||||||
Corporate general & administrative | 1,615 | 1,376 | — | 4 | 1,615 | 1,380 | |||||||||||||||||
Impairment of assets held for sale | — | — | — | 1,147 | — | 1,147 | |||||||||||||||||
Impairment of notes receivable | — | 5,000 | — | — | — | 5,000 | |||||||||||||||||
Depreciation and amortization | 4,446 | 5,274 | — | 13 | 4,446 | 5,287 | |||||||||||||||||
Non-REIT management and leasing services | — | 1 | — | — | — | 1 | |||||||||||||||||
Other non-property revenue | (221 | ) | (18 | ) | — | — | (221 | ) | (18 | ) | |||||||||||||
Property Net Operating Income (Loss) | $ | 10,379 | $ | 10,733 | $ | (4 | ) | $ | 186 | $ | 10,375 | $ | 10,919 | ||||||||||
Property revenues | $ | 14,948 | $ | 15,236 | $ | — | $ | 278 | $ | 14,948 | $ | 15,514 | |||||||||||
Property expenses | 4,569 | 4,503 | 4 | 92 | 4,573 | 4,595 | |||||||||||||||||
Property Net Operating Income (Loss) | $ | 10,379 | $ | 10,733 | $ | (4 | ) | $ | 186 | $ | 10,375 | $ | 10,919 |
Six Months Ended June 30, | |||||||||||||||||||||||
Same Store | Non-same Store | Total | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
(in thousands, unaudited) | |||||||||||||||||||||||
Net (Loss) Income | $ | (1,572 | ) | $ | (6,957 | ) | $ | (37 | ) | $ | 449 | $ | (1,609 | ) | $ | (6,508 | ) | ||||||
Adjustments: | |||||||||||||||||||||||
Income tax expense | 2 | 15 | — | — | 2 | 15 | |||||||||||||||||
Other expense | 1,024 | — | — | — | 1,024 | — | |||||||||||||||||
Interest expense | 8,673 | 9,460 | — | 280 | 8,673 | 9,740 | |||||||||||||||||
Interest income | (1 | ) | (1 | ) | — | — | (1 | ) | (1 | ) | |||||||||||||
Loss (gain) on disposal of properties | — | — | 26 | (1,508 | ) | 26 | (1,508 | ) | |||||||||||||||
Corporate general & administrative | 3,486 | 3,184 | 1 | 10 | 3,487 | 3,194 | |||||||||||||||||
Impairment of assets held for sale | 600 | — | — | 1,147 | 600 | 1,147 | |||||||||||||||||
Impairment of notes receivable | — | 5,000 | — | — | — | 5,000 | |||||||||||||||||
Depreciation and amortization | 9,245 | 11,029 | — | 74 | 9,245 | 11,103 | |||||||||||||||||
Non-REIT management and leasing services | — | 24 | — | — | — | 24 | |||||||||||||||||
Other non-property revenue | (243 | ) | (73 | ) | — | — | (243 | ) | (73 | ) | |||||||||||||
Property Net Operating Income (Loss) | $ | 21,214 | $ | 21,681 | $ | (10 | ) | $ | 452 | $ | 21,204 | $ | 22,133 | ||||||||||
Property revenues | $ | 30,490 | $ | 30,811 | $ | 10 | $ | 643 | $ | 30,500 | $ | 31,454 | |||||||||||
Property expenses | 9,276 | 9,130 | 20 | 191 | 9,296 | 9,321 | |||||||||||||||||
Property Net Operating Income (Loss) | $ | 21,214 | $ | 21,681 | $ | (10 | ) | $ | 452 | $ | 21,204 | $ | 22,133 |
• | $319 thousand and $411 thousand, respectively, increase in provision for credit losses a result of increased accounts receivable due to the impacts of COVID-19 on the portfolio; |
• | $153 thousand and $46 thousand, respectively, decrease in rental revenues from a property with vacant anchor space; |
• | $67 thousand and $180 thousand, respectively, decrease in above (below) market lease amortization related to leases becoming fully amortized; partially offset by |
• | $333 thousand and $375 thousand, respectively, increase in rental revenues as a result of long-term lease extensions. |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||
Same Store | Non-same Store | Total | Period Over Period Changes | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | $ | % | |||||||||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||||||||||||||||
Net Income (Loss) | $ | 272 | $ | (5,744 | ) | $ | (4 | ) | $ | (1,419 | ) | $ | 268 | $ | (7,163 | ) | $ | 7,431 | 103.74 | % | ||||||||||
Depreciation and amortization of real estate assets | 4,446 | 5,274 | — | 13 | 4,446 | 5,287 | (841 | ) | (15.91 | )% | ||||||||||||||||||||
Impairment of assets held for sale | — | — | — | 1,147 | — | 1,147 | (1,147 | ) | (100.00 | )% | ||||||||||||||||||||
Loss on disposal of properties | — | — | — | 331 | — | 331 | (331 | ) | (100.00 | )% | ||||||||||||||||||||
FFO | $ | 4,718 | $ | (470 | ) | $ | (4 | ) | $ | 72 | $ | 4,714 | $ | (398 | ) | $ | 5,112 | 1,284.42 | % | |||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||
Same Store | Non-same Store | Total | Period Over Period Changes | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | $ | % | |||||||||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||||||||||||||||
Net (Loss) Income | $ | (1,572 | ) | $ | (6,957 | ) | $ | (37 | ) | $ | 449 | $ | (1,609 | ) | $ | (6,508 | ) | $ | 4,899 | 75.28 | % | |||||||||
Depreciation and amortization of real estate assets | 9,245 | 11,029 | — | 74 | 9,245 | 11,103 | (1,858 | ) | (16.73 | )% | ||||||||||||||||||||
Impairment of assets held for sale | 600 | — | — | 1,147 | 600 | 1,147 | (547 | ) | (47.69 | )% | ||||||||||||||||||||
Loss (gain) on disposal of properties | — | — | 26 | (1,508 | ) | 26 | (1,508 | ) | 1,534 | 101.72 | % | |||||||||||||||||||
FFO | $ | 8,273 | $ | 4,072 | $ | (11 | ) | $ | 162 | $ | 8,262 | $ | 4,234 | $ | 4,028 | 95.13 | % | |||||||||||||
• | $5.00 million and $5.00 million decrease, respectively, in impairment of notes receivable; |
• | $564 thousand and $787 thousand decrease, respectively, in interest expense; offset by |
• | $0 thousand and $1.02 million increase, respectively, in other expense for legal settlements and reimbursement of 2019 proxy costs; |
• | $354 thousand and $467 thousand decrease, respectively, in property net operating income; and |
• | $239 thousand and $302 thousand increase, respectively, in corporate general and administrative expenses. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands, unaudited) | |||||||||||||||
FFO | $ | 4,714 | $ | (398 | ) | $ | 8,262 | $ | 4,234 | ||||||
Preferred Stock dividends - undeclared | (3,657 | ) | (3,658 | ) | (7,314 | ) | (7,315 | ) | |||||||
Preferred stock accretion adjustments | 171 | 171 | 341 | 341 | |||||||||||
FFO available to common shareholders and common unitholders | 1,228 | (3,885 | ) | 1,289 | (2,740 | ) | |||||||||
Impairment of notes receivable | — | 5,000 | — | 5,000 | |||||||||||
Acquisition and development costs | — | 20 | 1 | 24 | |||||||||||
Capital related costs | 30 | 62 | 34 | 136 | |||||||||||
Other non-recurring and non-cash expenses | 49 | 2 | 1,073 | 26 | |||||||||||
Share-based compensation | — | 82 | — | 172 | |||||||||||
Straight-line rental revenue, net straight-line expense | (401 | ) | 240 | (406 | ) | 85 | |||||||||
Loan cost amortization | 252 | 535 | 562 | 927 | |||||||||||
Above (below) market lease amortization | (100 | ) | (194 | ) | (373 | ) | (420 | ) | |||||||
Recurring capital expenditures and tenant improvement reserves | (278 | ) | (286 | ) | (557 | ) | (570 | ) | |||||||
AFFO | $ | 780 | $ | 1,576 | $ | 1,623 | $ | 2,640 |
Six Months Ended June 30, | Period Over Period Change | |||||||||||||
2020 | 2019 | $ | % | |||||||||||
(in thousands, unaudited) | ||||||||||||||
Operating activities | $ | 7,494 | $ | 7,807 | $ | (313 | ) | (4.01 | )% | |||||
Investing activities | $ | 1,121 | $ | 2,633 | $ | (1,512 | ) | (57.42 | )% | |||||
Financing activities | $ | (7,269 | ) | $ | (8,079 | ) | $ | 810 | 10.03 | % |
• | $3.44 million increase in loan principal payments primarily as a result of the 2020 Shoppes at Myrtle Park and Folly Road refinances, the St. Matthews sale, and pay-down of the KeyBank Credit Agreement, partially offset by the 2019 sales of Jenks Plaza and Graystone Crossing and the 2019 payoff of the Revere Term Loan and Senior Convertible Notes in addition to the Village of Martinsville refinance; |
• | $552 thousand increase in proceeds from PPP funds as detailed in Note 2; offset by |
• | $3.15 million increase in loan proceeds due to the Shoppes at Myrtle Park and Folly Road refinances occurring in 2020 offset by the 2019 Village of Martinsville refinance; |
June 30, 2020 | December 31, 2019 | ||||||
(unaudited) | |||||||
Fixed-rate notes | $ | 306,203 | $ | 305,017 | |||
Adjustable-rate mortgages | 23,948 | 24,163 | |||||
Fixed rate mortgages, assets held for sale (1) | 4,013 | — | |||||
Floating-rate line of credit (1) | 5,400 | 17,879 | |||||
Total debt | $ | 339,564 | $ | 347,059 |
• | the Company had $7.66 million in cash and cash equivalents at June 30, 2020; |
• | $15.28 million held in lender reserves for the purpose of tenant improvements, lease commissions, real estate taxes and insurance at June 30, 2020; and |
• | intends to use cash generated from operations during the twelve months ended June 30, 2021. |
Exhibit | ||
101.INS XBRL | Instance Document (Filed herewith). | |
101.SCH | XBRL Taxonomy Extension Schema Document (Filed herewith). | |
XBRL Taxonomy Extension Calculation Linkbase (Filed herewith). | ||
XBRL Taxonomy Extension Definition Linkbase (Filed herewith). | ||
XBRL Taxonomy Extension Labels Linkbase (Filed herewith). | ||
XBRL Taxonomy Extension Presentation Linkbase (Filed herewith). |
WHEELER REAL ESTATE INVESTMENT TRUST, INC. | |||||
By: | /s/ CRYSTAL PLUM | ||||
CRYSTAL PLUM | |||||
Chief Financial Officer | |||||
Date: | August 4, 2020 |
1. | I have reviewed this quarterly report on Form 10-Q of Wheeler Real Estate Investment Trust, 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. |
/s/ DANIEL KHOSHABA |
Daniel Khoshaba Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Wheeler Real Estate Investment Trust, 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. |
/s/ CRYSTAL PLUM |
Crystal Plum Chief Financial Officer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 4, 2020 | |
/s/ DANIEL KHOSHABA | |
Daniel Khoshaba | |
Chief Executive Officer | |
/s/ CRYSTAL PLUM | |
Crystal Plum | |
Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jul. 31, 2020 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Wheeler Real Estate Investment Trust, Inc. | |
Entity Central Index Key | 0001527541 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,699,461 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
REVENUE: | ||||
Rental revenues | $ 14,809 | $ 15,391 | $ 30,164 | $ 31,161 |
Other revenues | 360 | 141 | 579 | 366 |
Total Revenue | 15,169 | 15,532 | 30,743 | 31,527 |
OPERATING EXPENSES: | ||||
Property operations | 4,573 | 4,595 | 9,296 | 9,321 |
Non-REIT management and leasing services | 0 | 1 | 0 | 24 |
Depreciation and amortization | 4,446 | 5,287 | 9,245 | 11,103 |
Impairment of notes receivable | 0 | 5,000 | 0 | 5,000 |
Impairment of assets held for sale | 0 | 1,147 | 600 | 1,147 |
Corporate general & administrative | 1,615 | 1,380 | 3,487 | 3,194 |
Total Operating Expenses | 10,634 | 17,410 | 22,628 | 29,789 |
(Loss) gain on disposal of properties | 0 | (331) | (26) | 1,508 |
Operating Income (Loss) | 4,535 | (2,209) | 8,089 | 3,246 |
Interest income | 0 | 0 | 1 | 1 |
Interest expense | (4,273) | (4,947) | (8,673) | (9,740) |
Other expense | 0 | 0 | (1,024) | 0 |
Net Income (Loss) Before Income Taxes | 262 | (7,156) | (1,607) | (6,493) |
Income tax benefit (expense) | 6 | (7) | (2) | (15) |
Net Income (Loss) | 268 | (7,163) | (1,609) | (6,508) |
Less: Net income (loss) attributable to noncontrolling interests | 14 | (112) | 5 | (99) |
Net Income (Loss) Attributable to Wheeler REIT | 254 | (7,051) | (1,614) | (6,409) |
Preferred Stock dividends - undeclared | (3,657) | (3,658) | (7,314) | (7,315) |
Net Loss Attributable to Wheeler REIT Common Shareholders | $ (3,403) | $ (10,709) | $ (8,928) | $ (13,724) |
Basic and Diluted (in dollars per share) | $ (0.35) | $ (1.10) | $ (0.92) | $ (1.42) |
Weighted-average number of shares: | ||||
Basic and Diluted (in shares) | 9,695,651 | 9,693,271 | 9,694,967 | 9,650,000 |
Organization and Basis of Presentation and Consolidation |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation and Consolidation | Organization and Basis of Presentation and Consolidation Wheeler Real Estate Investment Trust, Inc. (the "Trust", the "REIT", or "Company") is a Maryland corporation formed on June 23, 2011. The Trust serves as the general partner of Wheeler REIT, L.P. (the “Operating Partnership”), which was formed as a Virginia limited partnership on April 5, 2012. As of June 30, 2020, the Trust, through the Operating Partnership, owned and operated sixty centers, one office building and six undeveloped properties in Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Oklahoma, Tennessee, Kentucky, New Jersey, Pennsylvania and West Virginia. Accordingly, the use of the word “Company” refers to the Trust and its consolidated subsidiaries, except where the context otherwise requires. On October 24, 2014, the Trust, through the Operating Partnership, acquired (i) Wheeler Interests, LLC (“WI”), an acquisition and asset management firm, (ii) Wheeler Real Estate, LLC (“WRE”), a real estate leasing, management and administration firm and (iii) WHLR Management, LLC (“WM” and collectively with WI and WRE the “Operating Companies”), a real estate business operations firm resulting in the Company becoming an internally-managed REIT. Accordingly, the responsibility for identifying targeted real estate investments, the handling of the disposition of real estate investments, administering our day-to-day business operations, including but not limited to, leasing, property management, payroll and accounting functions, acquisitions, asset management and administration are now handled internally. The Operating Companies perform property management and leasing functions for certain non-related third parties (the “Non-REIT Properties”), primarily through WRE. The Company converted WRE to a Taxable REIT Subsidiary (“TRS”) to accommodate serving the Non-REIT Properties since applicable REIT regulations consider the income derived from these services to be “bad” income subject to taxation. The regulations allow for costs incurred by the Company commensurate with the services performed for the Non-REIT Properties to be allocated to a TRS. During January 2014, the Company acquired Wheeler Development, LLC (“WD”) and converted it to a TRS. The Company began performing development activities for both REIT Properties and Non-REIT Properties during 2015. The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q (the “Form 10-Q”) are unaudited and the results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for future periods or the year. However, amounts presented in the condensed consolidated balance sheet as of December 31, 2019 are derived from the Company’s audited consolidated financial statements as of that date, but do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The Company prepared the accompanying condensed consolidated financial statements in accordance with GAAP for interim financial statements. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. All material balances and transactions between the consolidated entities of the Company have been eliminated. These condensed consolidated financial statements should be read in conjunction with the Company's 2019 Annual Report filed on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Investment Properties The Company records investment properties and related intangibles at fair value upon acquisition. Investment properties include both acquired and constructed assets. Improvements and major repairs and maintenance are capitalized when the repair and maintenance substantially extends the useful life, increases capacity or improves the efficiency of the asset. All other repair and maintenance costs are expensed as incurred. The Company capitalizes interest on projects during periods of construction until the projects reach the completion point that corresponds with their intended purpose. The Company allocates the purchase price of acquisitions to the various components of the asset based upon the fair value of each component which may be derived from various observable or unobservable inputs and assumptions. Also, the Company may utilize third party valuation specialists. These components typically include buildings, land and any intangible assets related to out-of-market leases, tenant relationships and in-place leases the Company determines to exist. The Company determines fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends and specific market and economic conditions that may affect the property. Factors considered by management in the analysis of determining the as-if-vacant property value include an estimate of carrying costs during the expected lease-up periods considering market conditions, and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and estimates of lost rentals at market rates during the expected lease-up periods, tenant demand and other economic conditions. Management also estimates costs to execute similar leases including leasing commissions, tenant improvements, legal and other related expenses. Intangibles related to out-of-market leases, tenant relationships and in-place lease value are recorded at fair value as acquired lease intangibles and are amortized as an adjustment to rental revenue or amortization expense, as appropriate, over the remaining terms of the underlying leases. Premiums or discounts on acquired out-of-market debt are amortized to interest expense over the remaining term of such debt. The Company records depreciation on buildings and improvements utilizing the straight-line method over the estimated useful life of the asset, generally 5 to 40 years. The Company reviews depreciable lives of investment properties periodically and makes adjustments to reflect a shorter economic life, when necessary. Tenant allowances, tenant inducements and tenant improvements are amortized utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. Amounts allocated to buildings are depreciated over the estimated remaining life of the acquired building or related improvements. The Company amortizes amounts allocated to tenant improvements, in-place lease assets and other lease-related intangibles over the remaining life of the underlying leases. The Company also estimates the value of other acquired intangible assets, if any, and amortizes them over the remaining life of the underlying related intangibles. The Company reviews investment properties for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of investment properties may not be recoverable, but at least annually. These circumstances include, but are not limited to, declines in the property’s cash flows, occupancy and fair market value. The Company measures any impairment of investment property when the estimated undiscounted future operating income before depreciation and amortization, plus its residual value, is less than the carrying value of the property. Estimated undiscounted operating income before depreciation and amortization includes various Level 3 fair value assumptions including renewal and renegotiations of current leases, estimates of new leases on vacant spaces, estimates of operating costs and fluctuating market conditions. The renewal and renegotiations of leases in some cases must be approved by additional third parties outside the control of the Company and the tenant. If such renewed or renegotiated leases are approved at amounts below current estimates, then impairment adjustments may be necessary in the future. To the extent impairment has occurred, the Company charges to income the excess of the carrying value of the property over its estimated fair value. The Company estimates fair value using unobservable data such as operating income, estimated capitalization rates, or multiples, leasing prospects for vacant spaces and local market information. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets Held For Sale and Discontinued Operations The Company may decide to sell properties that are held for use. The Company records these properties as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. Properties classified as held for sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. When the carrying value exceeds the fair value, less estimated costs to sell an impairment expense is recognized. The Company estimates fair value, less estimated closing costs based on similar real estate sales transactions. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 and 3 inputs. Level 2 inputs are quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. See Note 3 for additional details on impairment of assets held for sale for the three and six months ended June 30, 2020 and 2019. Assets held for sale are presented as discontinued operations in all periods presented if the disposition represents a strategic shift that has, or will have, a major effect on the Company's financial position or results of operations. This includes the net gain (or loss) upon disposal of property held for sale, the property's operating results, depreciation and interest expense. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash and cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Cash equivalents consist primarily of bank operating accounts and money markets. Financial instruments that potentially subject the Company to concentrations of credit risk include its cash and cash equivalents and its trade accounts receivable. The Company places its cash and cash equivalents with institutions of high credit quality. Restricted cash represents amounts held by lenders for real estate taxes, insurance, reserves for capital improvements, leasing costs and tenant security deposits. The Company places its cash and cash equivalents and restricted cash on deposit with financial institutions in the United States, which are insured by the Federal Deposit Insurance Company (“FDIC”) up to $250 thousand. The Company's loss in the event of failure of these financial institutions is represented by the difference between the FDIC limit and the total amounts on deposit. Management monitors the financial institutions credit worthiness in conjunction with balances on deposit to minimize risk. Tenant Receivables and Unbilled Rent Tenant receivables include base rents, tenant reimbursements and receivables attributable to recording rents on a straight-line basis. The Company determines an allowance for the uncollectible portion of accrued rents and accounts receivable based upon customer credit-worthiness (including expected recovery of a claim with respect to any tenants in bankruptcy), historical bad debt levels, and current economic trends. The Company considers a receivable past due once it becomes delinquent per the terms of the lease. The Company’s standard lease form considers a rent charge past due after five days. A past due receivable triggers certain events such as notices, fees and other allowable and required actions per the lease. As of June 30, 2020 and December 31, 2019, the Company’s allowance for uncollectible accounts totaled $1.55 million and $1.14 million, respectively. During the three and six months ended June 30, 2020, the Company recorded a provision for credit losses on operating lease receivables in the amount of $431 thousand and $585 thousand, respectively, related to tenant receivables that were specifically identified as potentially uncollectible based on an assessment of the tenant’s credit-worthiness. During the three and six months ended June 30, 2019, the Company recorded a provision for credit losses on operating lease receivables in the amount of $110 thousand and $200 thousand, respectively, related to tenant receivables that were specifically identified as potentially uncollectible based on an assessment of the tenant’s credit-worthiness. These are included in rental revenues on the condensed consolidated statements of operations. During the three and six months ended June 30, 2020 and 2019, the Company did not realize any recoveries related to tenant receivables previously written off. Above and Below Market Lease Intangibles, net The Company determines the above and below market lease intangibles upon acquiring a property. Above and below market lease intangibles are amortized over the life of the respective leases. Amortization of above and below market lease intangibles is recorded as a component of rental revenues. Deferred Costs and Other Assets, net The Company’s deferred costs and other assets consist primarily of leasing commissions, leases in place, capitalized legal and marketing costs, tenant relationships and ground lease sandwich interest intangibles associated with acquisitions. The Company’s lease origination costs consist primarily of the portion of property acquisitions allocated to lease originations and commissions paid to third parties in connection with lease originations. The Company generally records amortization of lease origination costs on a straight-line basis over the terms of the related leases. Amortization of lease origination costs, leases in place, legal and marketing costs, tenant relationships and ground lease sandwich interest represents a component of depreciation and amortization expense. Paycheck Protection Program The Company received proceeds of $552 thousand (the "PPP funds") pursuant to the Paycheck Protection Program (the "PPP") under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The PPP funds were received in the form of a promissory note, dated April 24, 2020 (the “Promissory Note”), between the Company and KeyBank as the lender that matures on April 24, 2022 bearing interest at a fixed rate of 1% per annum, payable monthly commencing seven months from the date of the note. Under the terms of the PPP, the principal may be forgiven if the proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, mortgage interest, rent and utilities. No assurance can be provided that the Company will obtain forgiveness of the Promissory Note in whole or in part. The PPP proceeds are included in "accounts payable, accrued expenses and other liabilities" on the condensed consolidated balance sheets. Revenue Recognition Lease Contract Revenue The Company has two classes of underlying assets relating to rental revenue activity, retail and office space. The Company retains substantially all of the risks and benefits of ownership of these underlying assets and accounts for these leases as operating leases. The Company combines lease and nonlease components in lease contracts, which includes combining base rent and tenant reimbursement revenue. The Company accrues minimum rents on a straight-line basis over the terms of the respective leases which results in an unbilled rent asset or deferred rent liability being recorded on the balance sheet. At June 30, 2020 and December 31, 2019, there were $3.92 million and $3.41 million, respectively, in unbilled rent which is included in "rents and other tenant receivables, net." Additionally, certain of the lease agreements contain provisions that grant additional rents based on tenants’ sales volumes (contingent or percentage rent). Percentage rents are recognized when the tenants achieve the specified targets as defined in their lease agreements as variable lease income. The Company’s leases generally require the tenant to reimburse the Company for a substantial portion of its expenses incurred in operating, maintaining, repairing, insuring and managing the shopping center and common areas (collectively defined as Common Area Maintenance or “CAM” expenses). This significantly reduces the Company’s exposure to increases in costs and operating expenses resulting from inflation or other outside factors. These reimbursements are considered nonlease components which the Company combines with the lease component. The Company calculates the tenant’s share of operating costs by multiplying the total amount of the operating costs by a fraction, the numerator of which is the total number of square feet being leased by the tenant, and the denominator of which is the total square footage of all leasable buildings at the property. The Company also receives monthly payments for these reimbursements from substantially all its tenants throughout the year. The Company recognizes tenant reimbursements as variable lease income. The Company recognizes differences between estimated recoveries and the final billed amounts in the subsequent year. These differences were not material for the three and six months ended June 30, 2020 and 2019. Additionally, the Company has tenants who pay real estate taxes directly to the taxing authority. The Company excludes these costs paid directly by the tenant to third parties on the Company’s behalf from both variable revenue payments recognized and the associated property operating expenses. The Company does not evaluate whether certain sales taxes and other similar taxes are the Company’s costs or tenants costs. Instead, the Company accounts for these costs as tenant costs. The Company recognizes lease termination fees, which is included in "other revenues" on the condensed consolidated statements of operations, in the year that the lease is terminated and collection of the fee is reasonably assured. Upon early lease termination, the Company provides for losses related to unrecovered intangibles and other assets. Beginning in April 2020, the Company received certain rent relief requests, most often in the form of rent deferral requests, as a result of COVID-19. The Company evaluates each tenant rent relief request on an individual basis, considering a number of factors. Not all tenant requests ultimately result in concessions or modification of agreements, nor is the Company forgoing its contractual rights under its lease agreements. The Financial Accounting Standards Board (the "FASB") issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. The Lease Modification Q&A clarifies that entities may elect to treat qualifying lease concessions as if they were based on enforceable rights and obligations, and may choose to apply or not to apply modification accounting to those qualifying concessions. Qualifying concessions must be in response to COVID-19 and not have a substantial increase in the lessee’s obligation or the lessor’s rights under the contract. The Company has elected not to apply ASC 842 modification guidance for concessions that did not increase the lease term as generally, these concessions do not impact the overall economics of the lease. Concessions that extend the lease term are accounted for under ASC 842, lease modification guidance. The below table disaggregates the Company’s revenue by type of service for the three and six months ended June 30, 2020 and 2019 (in thousands, unaudited):
Income Taxes The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code and applicable Treasury regulations relating to REIT qualification. In order to maintain this REIT status, the regulations require the Company to distribute at least 90% of its taxable income to shareholders and meet certain other asset and income tests, as well as other requirements. The TRS' have accrued $24 thousand and $22 thousand, respectively, for federal and state income taxes as of June 30, 2020 and December 31, 2019. If the Company fails to qualify as a REIT, it will be subject to tax at regular corporate rates for the years in which it fails to qualify. If the Company loses its REIT status, it could not elect to be taxed as a REIT for five years unless the Company’s failure to qualify was due to reasonable cause and certain other conditions were satisfied. Management has evaluated the effect of the guidance provided by GAAP on Accounting for Uncertainty of Income Taxes and has determined that the Company had no uncertain income tax positions. Taxable REIT Subsidiary Cost Allocation The Company’s overall philosophy regarding cost allocation centers around the premise that the Trust exists to acquire, lease and manage properties for the benefit of its investors. Accordingly, a majority of the Company’s operations occur at the property level. Each property must carry its own weight by absorbing the costs associated with generating its revenues. Additionally, leases generally allow the Company to pass through to the tenant most of the costs involved in operating the property, including, but not limited to, the direct costs associated with owning and maintaining the property (landscaping, repairs and maintenance, taxes, insurance, etc.), property management and certain administrative costs. Service vendors bill the majority of the direct costs of operating the properties directly to the particular property and each property pays them accordingly. The Non-REIT Properties pay WRE property management and/or asset management fees of 3% and 2% of collected revenues, respectively. The Non-REIT Properties also pay WRE leasing commissions based on the total contractual revenues to be generated under the new/renewed lease agreement (6% for new leases and 3% for renewals). Costs incurred to manage, lease and administer the Non-REIT Properties are allocated to the TRS. These costs include compensation and benefits, property management, leasing and other corporate, general and administrative expenses associated with generating the TRS' revenues. Financial Instruments The carrying amount of financial instruments included in assets and liabilities approximates fair market value due to their immediate or short-term maturity. Use of Estimates The Company has made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported periods. The Company’s actual results could differ from these estimates. Corporate General and Administrative Expense A detail for the "corporate general & administrative" line item from the condensed consolidated statements of operations is presented below (in thousands, unaudited):
Other Expense Other expense represent expenses which are non-operating in nature. Other expenses during the three and six months ended June 30, 2020 include $0 thousand and $585 thousand, respectively, in legal settlement costs, see Note 9 for additional details, and $0 and $439 thousand for the three and six months ended June 30, 2020, respectively, for reimbursement of 2019 proxy costs to a current board member as approved by the Company's Board of Directors in March 2020, see Note 10 for additional details. Leases Commitments The Company determines if an arrangement is a lease at inception. Operating leases, in which the Company is the lessee, are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on our condensed consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU assets include any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend the lease when it is reasonably certain that the company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elected the practical expedient to combine lease and associated nonlease components. The lease components are the majority of its leasing arrangements and the Company accounts for the combined component as an operating lease. In the event the Company modifies existing ground leases or enters into new ground leases, such leases may be classified as finance leases. Noncontrolling Interests Noncontrolling interests is the portion of equity in the Operating Partnership not attributable to the Trust. The ownership interests not held by the parent are considered noncontrolling interests. Accordingly, noncontrolling interests have been reported in equity on the condensed consolidated balance sheets but separate from the Company’s equity. On the condensed consolidated statements of operations, the subsidiaries are reported at the consolidated amount, including both the amount attributable to the Company and noncontrolling interests. Condensed consolidated statements of equity includes beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity. The noncontrolling interest of the Operating Partnership common unit holders is calculated by multiplying the noncontrolling interest ownership percentage at the balance sheet date by the Operating Partnership’s net assets (total assets less total liabilities). The noncontrolling interest percentage is calculated at any point in time by dividing the number of units not owned by the Company by the total number of units outstanding. The noncontrolling interest ownership percentage will change as additional units are issued or as units are exchanged for the Company’s common stock $0.01 par value per share (“Common Stock”). In accordance with GAAP, any changes in the value from period to period are charged to additional paid-in capital. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This update enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better calculate credit loss estimates. The guidance will apply to most financial assets measured at amortized cost and certain other instruments, such as accounts receivable and loans. The guidance will require that the Company estimate the lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. The Company will also be required to disclose information about how it developed the allowances, including changes in the factors that influenced the Company’s estimate of expected credit losses and the reasons for those changes. The guidance would be effective for interim and annual reporting periods beginning after December 15, 2022, per FASB's issuance of ASU 2019-10, "Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates". The Company is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)". This update modifies the disclosure requirements on fair value measurements in Topic 820 with several removals, modifications and additions for disclosures, which includes both prospective and retrospective disclosures. The guidance adds prospective disclosures related to the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements including measurement uncertainty disclosures to communicate the uncertainty in the measurement as of the reporting date. The Company adopted this ASU as of January 1, 2020. The adoption did not have material impact on its consolidated financial statements upon adoption of the guidance and there were no retrospective disclosures necessary. Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows. Reclassifications The Company has reclassified certain prior period amounts in the accompanying condensed consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net income, total assets, total liabilities or equity. The revenue from asset management fees and commissions were reclassified to other revenues on the condensed consolidated statements of operations for consistency with current period presentation. |
Real Estate |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate Investment properties consist of the following (in thousands):
The Company’s depreciation expense on investment properties was $2.86 million and $5.80 million for the three and six months ended June 30, 2020, respectively. The Company’s depreciation expense on investment properties was $2.88 million and $6.07 million for the three and six months ended June 30, 2019, respectively. A significant portion of the Company’s land, buildings and improvements serve as collateral for its mortgage loans. Accordingly, restrictions exist as to the encumbered property’s transferability, use and other common rights typically associated with property ownership. Assets Held for Sale and Dispositions At June 30, 2020 and December 31, 2019 assets held for sale included Columbia Fire Station and St. Matthews, respectively as the Board committed to a plan to sell each property. The Company recorded impairment expense on assets held for sale of $0 thousand and $600 thousand for the three and six months ended June 30, 2020, respectively, related to Columbia Fire Station. During the three and six months ended June 30, 2019, the Company's impairment expense of $1.15 million relates to Perimeter Square. The impairments result from reducing the carrying value of properties held for sale for the amount that exceeded the property's fair value less estimated selling costs. The valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 inputs. As of June 30, 2020 and December 31, 2019, assets held for sale and associated liabilities consisted of the following (in thousands):
The following properties were sold during the six months ended June 30, 2020 and 2019:
The Harbor Pointe land parcel sale represents discontinued operations as it was a strategic shift that had a major effect on the Company's financial position or results of operations. The sale of Jenks Plaza, Graystone Crossing and St. Matthews did not represent a strategic shift that has a major effect on the Company's financial position or results of operations. Accordingly, the operating results of these properties remains classified within continuing operations for all periods presented. In May 2019, an approximate 10,000 square foot outparcel at the JANAF property was demolished resulting in a $331 thousand write-off to make way for a new approximate 20,000 square foot building constructed by a new grocer tenant. |
Deferred Costs |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs | Deferred Costs Deferred costs and other assets, net of amortization are as follows (in thousands):
As of June 30, 2020 and December 31, 2019, the Company’s intangible accumulated amortization totaled $59.03 million and $57.15 million, respectively. During the three and six months ended June 30, 2020, the Company’s intangible amortization expense totaled $1.59 million and $3.45 million, respectively. During the three and six months ended June 30, 2019, the Company’s intangible amortization expense totaled $2.41 million and $5.04 million, respectively. Future amortization of lease origination costs, leases in place, legal and marketing costs, tenant relationships and ground lease sandwich interests is as follows (in thousands, unaudited):
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Loans Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable | Loans Payable The Company’s loans payable consist of the following (in thousands, except monthly payment):
(1) Includes loans payable on assets held for sale, see Note 3. (2) Collateralized by LaGrange Marketplace, Ridgeland and Georgetown. (3) Collateralized by Ladson Crossing, Lake Greenwood Crossing and South Park. (4) Collateralized by Cardinal Plaza, Franklinton Square, and Nashville Commons. (5) Collateralized by Clover Plaza, South Square, St. George, Waterway Plaza and Westland Square. (6) Collateralized by Darien Shopping Center, Devine Street, Lake Murray, Moncks Corner and South Lake. The various maturity dates are disclosed below within Note 5 under the KeyBank Credit Agreement. (7) Collateralized by Surrey Plaza and Amscot Building. KeyBank Credit Agreement As of June 30, 2020, the Company has borrowed $5.40 million under the Amended and Restated Credit Agreement ("KeyBank Credit Agreement") with KeyBank National Association ("KeyBank"), which is collateralized by five properties. At June 30, 2020, the outstanding borrowings are accruing interest at 3.67%. The KeyBank Credit Agreement had the following activity during the six months ended June 30, 2020:
Shoppes at Myrtle Park Refinance On January 23, 2020, the Company refinanced the Shoppes at Myrtle Park collateralized portion of the KeyBank Credit Agreement for $6.00 million at a fixed interest rate of 4.45%, resulting in a paydown of $5.75 million on the KeyBank Credit Agreement. The loan matures in February 2025 with monthly principal and interest payments of $33 thousand. Rivergate Extension Subsequent to June 30, 2020, the Company entered into an agreement to extend the maturity date from June 2020 to October 20, 2020 with monthly principal and interest payments of $48 thousand plus accrued and unpaid interest resuming August 1, 2020. Folly Road Refinance On March 23, 2020, the Company executed a promissory note for $7.35 million for the refinancing of Folly Road at a rate of 4.65%. The loan matures in March 2025 with monthly principal and interest payments of $41 thousand. Columbia Fire Station Extension On May 4, 2020, the Company extended the Columbia Fire Station promissory note ("Columbia Fire Station Loan") to September 3, 2020, with principal and interest payments resuming on July 3, 2020 in the amount of $26 thousand. The Columbia Fire Station Loan continues to bear interest at 4.00%. Tuckernuck Extension On May 22, 2020, the Company entered into an agreement to extend the Tuckernuck promissory note ("Tuckernuck Loan") to August 1, 2020, with 3-month forbearance of principal. The Tuckernuck Loan continues to bear interest at 3.88%. Debt Maturity The Company’s scheduled principal repayments on indebtedness as of June 30, 2020, including assets held for sale, are as follows (in thousands, unaudited):
The Company has considered its short-term (one year or less) liquidity needs and the adequacy of its estimated cash flows from operating activities and other expected financing sources to meet these needs. In particular, the Company has considered its scheduled debt maturities for the twelve months ending June 30, 2021 of $49.85 million. The Company plans to pay this obligation through a combination of refinancings, dispositions and operating cash. All loans due to mature are collateralized by properties within the portfolio. Additionally, the Company expects to meet the short-term liquidity requirements, through a combination of the following:
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Rentals under Operating Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Rentals under Operating Leases | Rentals under Operating Leases Future minimum rents to be received under noncancelable tenant operating leases, excluding rents on assets held for sale properties, for each of the next five years and thereafter, excluding CAM and percentage rent based on tenant sales volume, as of June 30, 2020 are as follows (in thousands, unaudited):
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Equity and Mezzanine Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Mezzanine Equity | Equity and Mezzanine Equity Series A Preferred Stock At June 30, 2020 and December 31, 2019, the Company had 562 shares of Series A Preferred Stock, without par value (“Series A Preferred”) issued and outstanding and 4,500 shares authorized with a $1,000 liquidation preference per share, or $562 thousand in aggregate. The Series A Preferred accrues cumulative dividends at a rate of 9% per annum, which is paid or accumulated quarterly. The Company has the right to redeem the 562 shares of Series A Preferred, on a pro rata basis, at any time at a price equal to 103% of the purchase price for the Series A Preferred plus any accrued but unpaid dividends. Series B Preferred Stock At June 30, 2020 and December 31, 2019, the Company had 1,875,748 shares and 5,000,000 shares of Series B Convertible Preferred Stock, without par value (“Series B Preferred”) issued and authorized with a $25.00 liquidation preference per share, or $46.90 million in aggregate. The Series B Preferred bears interest at a rate of 9% per annum. The Series B Preferred has no redemption rights. However, the Series B Preferred is subject to a mandatory conversion once the 20-trading day volume-weighted average closing price of our Common Stock, exceeds $58 per share; once this weighted average closing price is met, each share of our Series B Preferred will automatically convert into shares of our Common Stock at a conversion price equal to $40.00 per share of Common Stock. In addition, holders of our Series B Preferred also have the option, at any time, to convert shares of our Series B Preferred into shares of our Common Stock at a conversion price of $40.00 per share of Common Stock. Upon any voluntary or involuntary liquidation, dissolution or winding up of our company, the holders of shares of our Series B Preferred shall be entitled to be paid out of our assets a liquidation preference of $25.00 per share, plus an amount equal to all accumulated, accrued and unpaid dividends to and including the date of payment. The Series B Preferred has no maturity date and will remain outstanding indefinitely unless subject to a mandatory or voluntary conversion as described above. Series D Preferred Stock - Redeemable Preferred Stock At June 30, 2020 and December 31, 2019, the Company had 3,600,636 issued and 4,000,000 authorized shares of Series D Cumulative Convertible Preferred Stock, without par value ("Series D Preferred") with a $25.00 liquidation preference per share, or $106.50 million and $101.66 million in aggregate, respectively. Until September 21, 2023, the holders of the Series D Preferred are entitled to receive cumulative cash dividends at a rate of 8.75% per annum of the $25.00 liquidation preference per share (equivalent to the fixed annual amount of $2.1875 per share) (the “Initial Rate”). Commencing September 21, 2023, the holders will be entitled to cumulative cash dividends at an annual dividend rate of the Initial Rate increased by 2% of the liquidation preference per annum on each subsequent anniversary thereafter, subject to a maximum annual dividend rate of 14%. Dividends are payable quarterly in arrears on or before January 15th, April 15th, July 15th and October 15th of each year. On or after September 21, 2021, the Company may, at its option, redeem the Series D Preferred, for cash at a redemption price of $25.00 per share, plus an amount equal to all accrued and unpaid dividends, if any, to and including the redemption date. The holder of the Series D Preferred may convert shares at any time into shares of the Company’s Common Stock at an initial conversion rate of $16.96 per share of Common Stock. On September 21, 2023, the holders of the Series D Preferred may, at their option, elect to cause the Company to redeem any or all of their shares at a redemption price of $25.00 per share, plus an amount equal to all accrued and unpaid dividends, if any, to and including the redemption date, payable in cash or in shares of Common Stock, or any combination thereof, at the holder’s option. Dividends on the Series D Preferred cumulate from the end of the most recent dividend period for which dividends have been paid. Dividends on the Series D Preferred cumulate whether or not (i) we have earnings, (ii) there are funds legally available for the payment of such dividends and (iii) such dividends are authorized by our Board of Directors or declared by us. Dividends on the Series D Preferred Stock do not bear interest. If the Company, fails to pay any dividend within three (3) business days after the payment date for such dividend, the then-current dividend rate increases following the payment date by an additional 2.0% of the $25.00 stated liquidation preference per share, or $0.50 per annum, until we pay the dividend, subject to our ability to cure the failure. On December 20, 2018, the Company suspended the Series D Preferred dividend. As such, the Series D Preferred shares began accumulating dividends at 10.75% beginning January 1, 2019 and will continue to accumulate dividends at this rate until all accumulated dividends have been paid. Holders of shares of the Series D Preferred have no voting rights. Pursuant to the Company’s Articles Supplementary, if dividends on the Series D Preferred are in arrears for six or more consecutive quarterly periods (a “ Preferred Dividend Default”), the number of directors on our Board of Directors will automatically be increased by two, and holders of shares of the Series D Preferred and the holders of Series A Preferred and Series B Preferred (the Series A Preferred and Series B Preferred together, being the “Parity Preferred Stock”), shall be entitled to vote for the election of two additional directors (the “Series D Preferred Directors”). A Preferred Dividend Default occurred on April 15, 2020. The election of such directors will take place upon the written request of the holders of record of at least 20% of the Series D Preferred Stock and Parity Preferred Stock. The Board of Directors is not permitted to fill the vacancies on the Board of Directors as a result of the failure of the holders of 20% of the Series D Preferred Stock and Parity Preferred Stock to deliver such written request for the election of the Series D Preferred Directors. The Series D Preferred Directors may serve on our Board of Directors, until all unpaid dividends on such Series D Preferred and Parity Preferred Stock, if any, have been paid or declared and a sum sufficient for the payment thereof set apart for payment. The changes in the carrying value of the Series D Preferred for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands, unaudited):
Earnings per share Basic earnings per share for the Company’s common shareholders is calculated by dividing income (loss) from continuing operations, excluding amounts attributable to preferred stockholders and the net income (loss) attributable to noncontrolling interests, by the Company’s weighted-average shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the net income (loss) attributable to common shareholders, excluding amounts attributable to preferred shareholders and the net income (loss) attributable to noncontrolling interests, by the weighted-average number of common shares including any dilutive shares. As of June 30, 2020, the below shares are able to be converted to Common Stock. The common units, convertible preferred stock and cumulative convertible preferred stock have been excluded from the Company’s diluted earnings per share calculation because their inclusion would be antidilutive.
Dividends The following table summarizes the preferred stock dividends (unaudited, in thousands except for per share amounts):
The total cumulative dividends in arrears for Series A Preferred (per share $157.50), Series B Preferred (per share $3.92) and Series D Preferred (per share $4.58) as of June 30, 2020 is $23.96 million. 2015 Long-Term Incentive Plan On June 4, 2015, the Company's shareholders approved the 2015 Long-Term Incentive Plan (the "2015 Incentive Plan"). The 2015 Incentive Plan allows for issuance of up to 125,000 shares of the Company's Common Stock to employees, directors, officers and consultants for services rendered to the Company. The 2015 Incentive Plan replaced the 2012 Stock Incentive Plan. As of June 30, 2020, there are 41,104 shares available for issuance under the Company’s 2015 Incentive Plan. There were no shares issued during the three and six months ended June 30, 2020 and 2019. 2016 Long-Term Incentive Plan On June 15, 2016, the Company's shareholders approved the 2016 Long-Term Incentive Plan (the "2016 Incentive Plan"). The 2016 Incentive Plan allows for issuance of up to 625,000 shares of the Company's Common Stock to employees, directors, officers and consultants for services rendered to the Company.
As of June 30, 2020, there are 132,707 shares available for issuance under the Company’s 2016 Incentive Plan. There were no shares issued during the three and six months ended June 30, 2020. |
Lease Commitments Lease Commitments |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Commitments | Leases Commitments The Company has ground leases that are accounted for as operating leases. The Charleston, SC lease ended August 31, 2019 and was accounted for as an operating lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 50 years. As of June 30, 2020 and 2019, the weighted average remaining lease term of our leases is 34 and 35 years, respectively. The following properties are subject to leases which require the Company to make fixed annual rental payments and variable lease payments, which are immaterial and include escalation clauses and renewal options as follows (unaudited, in thousands):
(1) Lease options are exercised through 2035 with options which are reasonably certain to be exercised through 2051. (2) Includes $35 thousand and $69 thousand in variable percentage rent, during the three and six months ended June 30, 2020, respectively. Includes $31 thousand and $61 thousand in variable percentage rent, during the three and six months ended June 30, 2019, respectively. Supplemental information related to leases is as follows (in thousands, unaudited):
Undiscounted cash flows of our scheduled obligations for future minimum lease payments due under the operating leases, including applicable automatic extension options and options reasonably certain of being exercised, as of June 30, 2020 and a reconciliation of those cash flows to the operating lease liabilities at June 30, 2020 are as follows (in thousands, unaudited):
(1) Operating lease payments include $7.54 million related to options to extend lease terms that are reasonably certain of being exercised. |
Commitments and Contingencies Commitments and Contingencies |
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Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance The Company carries comprehensive liability, fire, extended coverage, business interruption and rental loss insurance covering all of the properties in its portfolio under a blanket insurance policy, in addition to other coverages, such as trademark and pollution coverage that may be appropriate for certain of its properties. Additionally, the Company carries a directors’, officers’, entity and employment practices liability insurance policy that covers such claims made against the Company and its directors and officers. The Company believes the policy specifications and insured limits are appropriate and adequate for its properties given the relative risk of loss, the cost of the coverage and industry practice; however, its insurance coverage may not be sufficient to fully cover its losses. Concentration of Credit Risk The Company is subject to risks incidental to the ownership and operation of commercial real estate. These risks include, among others, the risks normally associated with changes in the general economic climate, trends in the retail industry, creditworthiness of tenants, competition for tenants and customers, changes in tax laws, interest rates, the availability of financing and potential liability under environmental and other laws. The Company’s portfolio of properties is dependent upon regional and local economic conditions and is geographically concentrated in the Northeast, Mid-Atlantic and Southeast, which markets represented approximately 4%, 35% and 61% respectively, of the total annualized base rent of the properties in its portfolio as of June 30, 2020. The Company’s geographic concentration may cause it to be more susceptible to adverse developments in those markets than if it owned a more geographically diverse portfolio. Additionally, the Company’s retail shopping center properties depend on anchor stores or major tenants to attract shoppers and could be adversely affected by the loss of, or a store closure by, one or more of these tenants. Regulatory and Environmental As the owner of the buildings on our properties, the Company could face liability for the presence of hazardous materials (e.g., asbestos or lead) or other adverse conditions (e.g., poor indoor air quality) in its buildings. Environmental laws govern the presence, maintenance, and removal of hazardous materials in buildings, and if the Company does not comply with such laws, it could face fines for such noncompliance. Also, the Company could be liable to third parties (e.g., occupants of the buildings) for damages related to exposure to hazardous materials or adverse conditions in its buildings, and the Company could incur material expenses with respect to abatement or remediation of hazardous materials or other adverse conditions in its buildings. In addition, some of the Company’s tenants routinely handle and use hazardous or regulated substances and wastes as part of their operations at our properties, which are subject to regulation. Such environmental and health and safety laws and regulations could subject the Company or its tenants to liability resulting from these activities. Environmental liabilities could affect a tenant’s ability to make rental payments to the Company, and changes in laws could increase the potential liability for noncompliance. This may result in significant unanticipated expenditures or may otherwise materially and adversely affect the Company’s operations. The Company is not aware of any material contingent liabilities, regulatory matters or environmental matters that may exist. Litigation The Company is involved in various legal proceedings arising in the ordinary course of its business, including, but not limited to commercial disputes. The Company believes that such litigation, claims and administrative proceedings will not have a material adverse impact on its financial position or its results of operations. The Company records a liability when it considers the loss probable and the amount can be reasonably estimated. In addition, the below are in process. Jon Wheeler v. Wheeler Real Estate Investment Trust, Inc., Circuit Court for the City of Virginia Beach, Virginia. Former CEO, Jon Wheeler, alleges that his employment was improperly terminated and that he is owed severance and bonus payments pursuant to his Employment Agreement. Altogether, his alleged damages total approximately $1.00 million. The Company is defending the action on the grounds that Mr. Wheeler’s employment was properly terminated for cause, including for his failure to properly apprise the Board of Directors of critical information, and placing his own personal interests above the Company's, including contacting counsel about filing suit on his behalf against the Company and the Board of Directors while he was still CEO and President of the Board. The Company filed a Counterclaim against Mr. Wheeler for approximately $150 thousand for reimbursement of personal expenses the Company paid, but that Mr. Wheeler should have borne. Trial of this action was held on December 17-20, 2019. Post-trial briefs were submitted on January 31, 2020. On March 10, 2020, the Court held a hearing to announce its rulings. The Court found in favor of Jon Wheeler on his claim that his employment was terminated without cause and awarded him $475 thousand for a severance payment and $23 thousand for the cash value of applicable benefits. The Court denied Mr. Wheeler’s claims for a bonus and that his termination of employment was wrongful as a violation of public policy. The Court awarded the Company $5 thousand on its Counterclaim. A hearing will be conducted on August 7, 2020 to determine Mr. Wheeler’s request for an award of attorneys’ fees and costs, as well as whether pre-judgment interest should be included on the damage awards. Mr. Wheeler seeks an award of $375 thousand in attorneys' fees and costs and $63 thousand in pre-judgment interest on the severance payment award. The Court’s rulings will become a final, appealable judgment order when it rules on the award of attorneys’ fees, costs and pre-judgment interest. The Company has the right to file a petition to the Virginia Supreme Court seeking an appeal of adverse rulings. The Company’s notice of appeal will be due within thirty-days of the Court’s final rulings. Accordingly, the Company has recorded $485 thousand on the Company's condensed consolidated statements of operations under the line "other expenses" based on the awarded amounts noted. Mr. Wheeler's request for further damage awards could impact this estimated expense in future periods. BOKF, NA v. WD-I Associates, LLC, Wheeler Real Estate, LLC and Jon S. Wheeler, Court of Common Pleas, Beaufort County, South Carolina. BOKF (“Bank of Arkansas”), filed an action on April 9, 2019 in Beaufort County, South Carolina, for foreclosure of the mortgage it held on the real property and improvements comprising Sea Turtle Marketplace Shopping Center (“Sea Turtle”) which was owned by WD-I Associates, LLC (“WD-I”), and Jon S. Wheeler had guaranteed the debt. Bank of Arkansas sought the appointment of a receiver to take possession and control of Sea Turtle pending the completion of the foreclosure action. In response, WD-I filed for relief under Chapter 11 of the United States Bankruptcy Code on May 7, 2019. The bankruptcy filing stayed the foreclosure action in State Court. Bank of Arkansas asserted a claim in the bankruptcy as the first mortgage on Sea Turtle. The Company’s subsidiaries held a second mortgage on Sea Turtle and in addition were creditors of WD-I . On January 30, 2020, the Bankruptcy Court approved a sale price of $18.75 million. The Company will share in the $200 thousand set aside for unsecured creditors, pro rata with other unsecured creditors. Given the amount of the indebtedness owed to the Company, we will receive the largest portion of the funds. On May 1, 2020, the Bankruptcy Court granted the dismissal of the WD-I bankruptcy case upon the provisions for payment of the $200 thousand to creditors. The Company received an aggregate payment of $196 thousand in May 2020 and recorded the receipt on the Company's condensed consolidated statements of operations under the line "other revenues". Jon Wheeler v. Wheeler Real Estate Investment Trust, Inc. and David Kelly, Individually, Circuit Court for the City of Virginia Beach, Virginia. In September, 2018, former Chief Executive Officer and President Jon S. Wheeler filed claims for defamation and tortious interference with contract expectancy, prospective business relationships and economic advantage in the Circuit Court for the City of Virginia Beach, Virginia, asserting that his successor, immediate past Chief Executive Officer and President David Kelly, defamed him in communications with an industry association. In February, 2019, Jon Wheeler’s counsel amended the suit to add the Company as a Defendant, but dropped all but the defamation claims. This case was settled and dismissed with prejudice by the court on June 1, 2020. David Kelly v. Wheeler Real Estate Investment Trust, Inc., Joseph Stilwell, and Daniel Khoshaba, Circuit Court for the City of Virginia Beach, Virginia. Former CEO David Kelly filed suit on May 28, 2020, alleging that his employment was improperly terminated and that he is owed severance pay and related benefits pursuant to his employment agreement. He claims breach of his employment contract against the company; against the individual defendants, he claims tortious interference with contract and common law and statutory conspiracy for their alleged actions related to his employment termination. He seeks damages of $3.15 million, plus unpaid bonuses and benefits, pre- and post-judgment interest, attorneys’ fees, and costs. The Company is defending the action on the grounds that Mr. Kelly’s employment was properly terminated for cause and that the claims against Messrs. Stilwell and Khoshaba are not cognizable. The Company and Messrs. Stilwell and Khoshaba have filed an answer and demurrer, which is pending. No trial date has been set in the case. At this juncture, the outcome of the matter cannot be predicted. Harbor Pointe Tax Increment Financing On September 1, 2011, the Grove Economic Development Authority issued the Grove Economic Development Authority Tax Increment Revenue Note, Taxable Series 2011 in the amount of $2.42 million, bearing a variable interest rate of 2.29%, not to exceed 14% and payable in 50 semi-annual installments. The proceeds of the bonds were to provide funding for the construction of public infrastructure and other site improvements and to be repaid by incremental additional property taxes generated by development. Harbor Pointe Associates, LLC, then owned by an affiliate of former CEO, Jon Wheeler, entered into an Economic Development Agreement with the Grove Economic Development Authority for this infrastructure development and in the event the ad valorem taxes were insufficient to cover annual debt service, Harbor Pointe Associates, LLC would reimburse the Grove Economic Development Authority (the “Harbor Pointe Agreement”). In 2014, Harbor Pointe Associates, LLC was acquired by the Company. The total debt service shortfall over the life of the bond is uncertain as it is based on ad valorem taxes, assessed property values, property tax rates, LIBOR and future potential development ranging until 2036. The Company’s future total principal obligation under the Harbor Pointe Agreement will be no more than $2.21 million, the principal amount of the bonds, as of June 30, 2020. In addition, the Company may have an interest obligation on the note based on the principal balance and LIBOR rates in effect at future payment dates. During the three and six months ended June 30, 2020, the Company did not fund any debt service shortfalls. During the three and six months ended June 30, 2019, the Company funded $44 thousand in debt service shortfalls. No amounts have been accrued for this as of June 30, 2020 as a reasonable estimate of future debt service shortfalls cannot be determined based on variables noted above. |
Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions The following summarizes related party activity for the six months ended June 30, 2020 and 2019. The amounts disclosed below reflect the activity between the Company and its affiliates (in thousands).
Reimbursement of Proxy Solicitation Expenses On October 29, 2019, Stilwell Value Partners VII, L.P., Stilwell Activist Fund, L.P., Stilwell Activist Investments, L.P., Stilwell Value LLC and Joseph Stilwell (collectively, the “Stilwell Group”), the beneficial owner of 9.8% of our common stock, filed a proxy statement with the SEC in connection with the Company’s 2019 annual meeting (the “Stilwell Solicitation”). Current director Joseph Stilwell is the owner and managing member of Stilwell Value LLC, which is the general partner of Stilwell Activist Investments, L.P. At the 2019 annual meeting, our stockholders elected three nominees designated by the Stilwell Group to the Board of Directors. The Stilwell Group disclosed in the Stilwell Solicitation that it intended to seek reimbursement of the expenses it incurred in connection with such solicitation. The Company has agreed to reimburse the Stilwell Group for the approximate $439 thousand of expenses it incurred in connection with the Stilwell Solicitation. This reimbursement was recorded on the condensed consolidated statements of operations as “other expense.” |
Subsequent Events |
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Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Walnut Hill Plaza Paydown On July 15, 2020, the Company reduced the Walnut Hill Plaza loan by $428 thousand to $3.30 million using proceeds from restricted cash reserves. Tuckernuck Extension On July 31, 2020, the Company entered into an Amended Agreement (the "Tuckernuck Amended Agreement") to extend the $5.28 million Tuckernuck Loan to November 1, 2020 with monthly principal and interest payments of $33,880. In conjunction with the Tuckernuck Amended Agreement, the Company entered into a Reserve Agreement, which requires the Company to deposit in escrow $337 thousand. |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Investment Properties | Investment Properties The Company records investment properties and related intangibles at fair value upon acquisition. Investment properties include both acquired and constructed assets. Improvements and major repairs and maintenance are capitalized when the repair and maintenance substantially extends the useful life, increases capacity or improves the efficiency of the asset. All other repair and maintenance costs are expensed as incurred. The Company capitalizes interest on projects during periods of construction until the projects reach the completion point that corresponds with their intended purpose. The Company allocates the purchase price of acquisitions to the various components of the asset based upon the fair value of each component which may be derived from various observable or unobservable inputs and assumptions. Also, the Company may utilize third party valuation specialists. These components typically include buildings, land and any intangible assets related to out-of-market leases, tenant relationships and in-place leases the Company determines to exist. The Company determines fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends and specific market and economic conditions that may affect the property. Factors considered by management in the analysis of determining the as-if-vacant property value include an estimate of carrying costs during the expected lease-up periods considering market conditions, and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and estimates of lost rentals at market rates during the expected lease-up periods, tenant demand and other economic conditions. Management also estimates costs to execute similar leases including leasing commissions, tenant improvements, legal and other related expenses. Intangibles related to out-of-market leases, tenant relationships and in-place lease value are recorded at fair value as acquired lease intangibles and are amortized as an adjustment to rental revenue or amortization expense, as appropriate, over the remaining terms of the underlying leases. Premiums or discounts on acquired out-of-market debt are amortized to interest expense over the remaining term of such debt. The Company records depreciation on buildings and improvements utilizing the straight-line method over the estimated useful life of the asset, generally 5 to 40 years. The Company reviews depreciable lives of investment properties periodically and makes adjustments to reflect a shorter economic life, when necessary. Tenant allowances, tenant inducements and tenant improvements are amortized utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. Amounts allocated to buildings are depreciated over the estimated remaining life of the acquired building or related improvements. The Company amortizes amounts allocated to tenant improvements, in-place lease assets and other lease-related intangibles over the remaining life of the underlying leases. The Company also estimates the value of other acquired intangible assets, if any, and amortizes them over the remaining life of the underlying related intangibles. The Company reviews investment properties for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of investment properties may not be recoverable, but at least annually. These circumstances include, but are not limited to, declines in the property’s cash flows, occupancy and fair market value. The Company measures any impairment of investment property when the estimated undiscounted future operating income before depreciation and amortization, plus its residual value, is less than the carrying value of the property. Estimated undiscounted operating income before depreciation and amortization includes various Level 3 fair value assumptions including renewal and renegotiations of current leases, estimates of new leases on vacant spaces, estimates of operating costs and fluctuating market conditions. The renewal and renegotiations of leases in some cases must be approved by additional third parties outside the control of the Company and the tenant. If such renewed or renegotiated leases are approved at amounts below current estimates, then impairment adjustments may be necessary in the future. To the extent impairment has occurred, the Company charges to income the excess of the carrying value of the property over its estimated fair value. The Company estimates fair value using unobservable data such as operating income, estimated capitalization rates, or multiples, leasing prospects for vacant spaces and local market information. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Assets Held for Sale and Discontinued Operations | Assets Held For Sale and Discontinued Operations The Company may decide to sell properties that are held for use. The Company records these properties as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. Properties classified as held for sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. When the carrying value exceeds the fair value, less estimated costs to sell an impairment expense is recognized. The Company estimates fair value, less estimated closing costs based on similar real estate sales transactions. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 and 3 inputs. Level 2 inputs are quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. See Note 3 for additional details on impairment of assets held for sale for the three and six months ended June 30, 2020 and 2019. Assets held for sale are presented as discontinued operations in all periods presented if the disposition represents a strategic shift that has, or will have, a major effect on the Company's financial position or results of operations. This includes the net gain (or loss) upon disposal of property held for sale, the property's operating results, depreciation and interest expense. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash and cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Cash equivalents consist primarily of bank operating accounts and money markets. Financial instruments that potentially subject the Company to concentrations of credit risk include its cash and cash equivalents and its trade accounts receivable. The Company places its cash and cash equivalents with institutions of high credit quality. Restricted cash represents amounts held by lenders for real estate taxes, insurance, reserves for capital improvements, leasing costs and tenant security deposits. The Company places its cash and cash equivalents and restricted cash on deposit with financial institutions in the United States, which are insured by the Federal Deposit Insurance Company (“FDIC”) up to $250 thousand. The Company's loss in the event of failure of these financial institutions is represented by the difference between the FDIC limit and the total amounts on deposit. Management monitors the financial institutions credit worthiness in conjunction with balances on deposit to minimize risk. |
Tenant Receivables and Unbilled Rent | Tenant Receivables and Unbilled Rent Tenant receivables include base rents, tenant reimbursements and receivables attributable to recording rents on a straight-line basis. The Company determines an allowance for the uncollectible portion of accrued rents and accounts receivable based upon customer credit-worthiness (including expected recovery of a claim with respect to any tenants in bankruptcy), historical bad debt levels, and current economic trends. The Company considers a receivable past due once it becomes delinquent per the terms of the lease. The Company’s standard lease form considers a rent charge past due after five days. A past due receivable triggers certain events such as notices, fees and other allowable and required actions per the lease. |
Above and Below Market Lease Intangibles, net | Above and Below Market Lease Intangibles, net The Company determines the above and below market lease intangibles upon acquiring a property. Above and below market lease intangibles are amortized over the life of the respective leases. Amortization of above and below market lease intangibles is recorded as a component of rental revenues. |
Deferred Costs and Other Assets, net | Deferred Costs and Other Assets, net The Company’s deferred costs and other assets consist primarily of leasing commissions, leases in place, capitalized legal and marketing costs, tenant relationships and ground lease sandwich interest intangibles associated with acquisitions. The Company’s lease origination costs consist primarily of the portion of property acquisitions allocated to lease originations and commissions paid to third parties in connection with lease originations. The Company generally records amortization of lease origination costs on a straight-line basis over the terms of the related leases. Amortization of lease origination costs, leases in place, legal and marketing costs, tenant relationships and ground lease sandwich interest represents a component of depreciation and amortization expense. |
Lease Contract Revenue | Lease Contract Revenue The Company has two classes of underlying assets relating to rental revenue activity, retail and office space. The Company retains substantially all of the risks and benefits of ownership of these underlying assets and accounts for these leases as operating leases. The Company combines lease and nonlease components in lease contracts, which includes combining base rent and tenant reimbursement revenue. The Company accrues minimum rents on a straight-line basis over the terms of the respective leases which results in an unbilled rent asset or deferred rent liability being recorded on the balance sheet. At June 30, 2020 and December 31, 2019, there were $3.92 million and $3.41 million, respectively, in unbilled rent which is included in "rents and other tenant receivables, net." Additionally, certain of the lease agreements contain provisions that grant additional rents based on tenants’ sales volumes (contingent or percentage rent). Percentage rents are recognized when the tenants achieve the specified targets as defined in their lease agreements as variable lease income. The Company’s leases generally require the tenant to reimburse the Company for a substantial portion of its expenses incurred in operating, maintaining, repairing, insuring and managing the shopping center and common areas (collectively defined as Common Area Maintenance or “CAM” expenses). This significantly reduces the Company’s exposure to increases in costs and operating expenses resulting from inflation or other outside factors. These reimbursements are considered nonlease components which the Company combines with the lease component. The Company calculates the tenant’s share of operating costs by multiplying the total amount of the operating costs by a fraction, the numerator of which is the total number of square feet being leased by the tenant, and the denominator of which is the total square footage of all leasable buildings at the property. The Company also receives monthly payments for these reimbursements from substantially all its tenants throughout the year. The Company recognizes tenant reimbursements as variable lease income. The Company recognizes differences between estimated recoveries and the final billed amounts in the subsequent year. These differences were not material for the three and six months ended June 30, 2020 and 2019. Additionally, the Company has tenants who pay real estate taxes directly to the taxing authority. The Company excludes these costs paid directly by the tenant to third parties on the Company’s behalf from both variable revenue payments recognized and the associated property operating expenses. The Company does not evaluate whether certain sales taxes and other similar taxes are the Company’s costs or tenants costs. Instead, the Company accounts for these costs as tenant costs. The Company recognizes lease termination fees, which is included in "other revenues" on the condensed consolidated statements of operations, in the year that the lease is terminated and collection of the fee is reasonably assured. Upon early lease termination, the Company provides for losses related to unrecovered intangibles and other assets. Beginning in April 2020, the Company received certain rent relief requests, most often in the form of rent deferral requests, as a result of COVID-19. The Company evaluates each tenant rent relief request on an individual basis, considering a number of factors. Not all tenant requests ultimately result in concessions or modification of agreements, nor is the Company forgoing its contractual rights under its lease agreements. The Financial Accounting Standards Board (the "FASB") issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. The Lease Modification Q&A clarifies that entities may elect to treat qualifying lease concessions as if they were based on enforceable rights and obligations, and may choose to apply or not to apply modification accounting to those qualifying concessions. Qualifying concessions must be in response to COVID-19 and not have a substantial increase in the lessee’s obligation or the lessor’s rights under the contract. The Company has elected not to apply ASC 842 modification guidance for concessions that did not increase the lease term as generally, these concessions do not impact the overall economics of the lease. Concessions that extend the lease term are accounted for under ASC 842, lease modification guidance. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code and applicable Treasury regulations relating to REIT qualification. In order to maintain this REIT status, the regulations require the Company to distribute at least 90% of its taxable income to shareholders and meet certain other asset and income tests, as well as other requirements. The TRS' have accrued $24 thousand and $22 thousand, respectively, for federal and state income taxes as of June 30, 2020 and December 31, 2019. If the Company fails to qualify as a REIT, it will be subject to tax at regular corporate rates for the years in which it fails to qualify. If the Company loses its REIT status, it could not elect to be taxed as a REIT for five years unless the Company’s failure to qualify was due to reasonable cause and certain other conditions were satisfied. |
Taxable REIT Subsidiary Cost Allocation | Taxable REIT Subsidiary Cost Allocation The Company’s overall philosophy regarding cost allocation centers around the premise that the Trust exists to acquire, lease and manage properties for the benefit of its investors. Accordingly, a majority of the Company’s operations occur at the property level. Each property must carry its own weight by absorbing the costs associated with generating its revenues. Additionally, leases generally allow the Company to pass through to the tenant most of the costs involved in operating the property, including, but not limited to, the direct costs associated with owning and maintaining the property (landscaping, repairs and maintenance, taxes, insurance, etc.), property management and certain administrative costs. Service vendors bill the majority of the direct costs of operating the properties directly to the particular property and each property pays them accordingly. The Non-REIT Properties pay WRE property management and/or asset management fees of 3% and 2% of collected revenues, respectively. The Non-REIT Properties also pay WRE leasing commissions based on the total contractual revenues to be generated under the new/renewed lease agreement (6% for new leases and 3% for renewals). Costs incurred to manage, lease and administer the Non-REIT Properties are allocated to the TRS. These costs include compensation and benefits, property management, leasing and other corporate, general and administrative expenses associated with generating the TRS' revenues. |
Financial Instruments | Financial Instruments The carrying amount of financial instruments included in assets and liabilities approximates fair market value due to their immediate or short-term maturity. |
Use of Estimates | Use of Estimates The Company has made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported periods. The Company’s actual results could differ from these estimates. |
Lease Commitments | Leases Commitments The Company determines if an arrangement is a lease at inception. Operating leases, in which the Company is the lessee, are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on our condensed consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU assets include any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend the lease when it is reasonably certain that the company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elected the practical expedient to combine lease and associated nonlease components. The lease components are the majority of its leasing arrangements and the Company accounts for the combined component as an operating lease. In the event the Company modifies existing ground leases or enters into new ground leases, such leases may be classified as finance leases. |
Noncontrolling interests | Noncontrolling Interests Noncontrolling interests is the portion of equity in the Operating Partnership not attributable to the Trust. The ownership interests not held by the parent are considered noncontrolling interests. Accordingly, noncontrolling interests have been reported in equity on the condensed consolidated balance sheets but separate from the Company’s equity. On the condensed consolidated statements of operations, the subsidiaries are reported at the consolidated amount, including both the amount attributable to the Company and noncontrolling interests. Condensed consolidated statements of equity includes beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity. The noncontrolling interest of the Operating Partnership common unit holders is calculated by multiplying the noncontrolling interest ownership percentage at the balance sheet date by the Operating Partnership’s net assets (total assets less total liabilities). The noncontrolling interest percentage is calculated at any point in time by dividing the number of units not owned by the Company by the total number of units outstanding. The noncontrolling interest ownership percentage will change as additional units are issued or as units are exchanged for the Company’s common stock $0.01 par value per share (“Common Stock”). In accordance with GAAP, any changes in the value from period to period are charged to additional paid-in capital. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This update enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better calculate credit loss estimates. The guidance will apply to most financial assets measured at amortized cost and certain other instruments, such as accounts receivable and loans. The guidance will require that the Company estimate the lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. The Company will also be required to disclose information about how it developed the allowances, including changes in the factors that influenced the Company’s estimate of expected credit losses and the reasons for those changes. The guidance would be effective for interim and annual reporting periods beginning after December 15, 2022, per FASB's issuance of ASU 2019-10, "Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates". The Company is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)". This update modifies the disclosure requirements on fair value measurements in Topic 820 with several removals, modifications and additions for disclosures, which includes both prospective and retrospective disclosures. The guidance adds prospective disclosures related to the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements including measurement uncertainty disclosures to communicate the uncertainty in the measurement as of the reporting date. The Company adopted this ASU as of January 1, 2020. The adoption did not have material impact on its consolidated financial statements upon adoption of the guidance and there were no retrospective disclosures necessary. Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows. |
Reclassifications | Reclassifications The Company has reclassified certain prior period amounts in the accompanying condensed consolidated financial statements in order to be consistent with the current period presentation. These reclassifications had no effect on net income, total assets, total liabilities or equity. The revenue from asset management fees and commissions were reclassified to other revenues on the condensed consolidated statements of operations for consistency with current period presentation. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregation of Company's revenue | The below table disaggregates the Company’s revenue by type of service for the three and six months ended June 30, 2020 and 2019 (in thousands, unaudited):
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Schedule of corporate general and administrative expenses | A detail for the "corporate general & administrative" line item from the condensed consolidated statements of operations is presented below (in thousands, unaudited):
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Real Estate (Tables) |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment properties | Investment properties consist of the following (in thousands):
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Schedule of dispositions | The following properties were sold during the six months ended June 30, 2020 and 2019:
As of June 30, 2020 and December 31, 2019, assets held for sale and associated liabilities consisted of the following (in thousands):
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Deferred Costs (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of details of deferred costs, net of amortization and other assets | Deferred costs and other assets, net of amortization are as follows (in thousands):
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Schedule of future amortization of lease origination costs, financing costs and in place leases | Future amortization of lease origination costs, leases in place, legal and marketing costs, tenant relationships and ground lease sandwich interests is as follows (in thousands, unaudited):
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Loans Payable (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans payable | The Company’s loans payable consist of the following (in thousands, except monthly payment):
(1) Includes loans payable on assets held for sale, see Note 3. (2) Collateralized by LaGrange Marketplace, Ridgeland and Georgetown. (3) Collateralized by Ladson Crossing, Lake Greenwood Crossing and South Park. (4) Collateralized by Cardinal Plaza, Franklinton Square, and Nashville Commons. (5) Collateralized by Clover Plaza, South Square, St. George, Waterway Plaza and Westland Square. (6) Collateralized by Darien Shopping Center, Devine Street, Lake Murray, Moncks Corner and South Lake. The various maturity dates are disclosed below within Note 5 under the KeyBank Credit Agreement. (7) Collateralized by Surrey Plaza and Amscot Building. |
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Schedule of Company's scheduled principal repayments on indebtedness | The Company’s scheduled principal repayments on indebtedness as of June 30, 2020, including assets held for sale, are as follows (in thousands, unaudited):
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Rentals under Operating Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rentals to be received under noncancelable tenant operating leases | Future minimum rents to be received under noncancelable tenant operating leases, excluding rents on assets held for sale properties, for each of the next five years and thereafter, excluding CAM and percentage rent based on tenant sales volume, as of June 30, 2020 are as follows (in thousands, unaudited):
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Equity and Mezzanine Equity (Tables) |
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in carrying value of Series D Preferred | The changes in the carrying value of the Series D Preferred for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands, unaudited):
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Schedule of potentially dilutive shares | As of June 30, 2020, the below shares are able to be converted to Common Stock. The common units, convertible preferred stock and cumulative convertible preferred stock have been excluded from the Company’s diluted earnings per share calculation because their inclusion would be antidilutive.
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Schedule of summary of preferred stock dividends | The following table summarizes the preferred stock dividends (unaudited, in thousands except for per share amounts):
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Schedule of shares issued under 2016 Long-Term Incentive Plan | 2016 Long-Term Incentive Plan On June 15, 2016, the Company's shareholders approved the 2016 Long-Term Incentive Plan (the "2016 Incentive Plan"). The 2016 Incentive Plan allows for issuance of up to 625,000 shares of the Company's Common Stock to employees, directors, officers and consultants for services rendered to the Company.
As of June 30, 2020, there are 132,707 shares available for issuance under the Company’s 2016 Incentive Plan. There were no shares issued during the three and six months ended June 30, 2020. |
Lease Commitments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Ground Lease Payments and Supplemental Information Related to Leases | The following properties are subject to leases which require the Company to make fixed annual rental payments and variable lease payments, which are immaterial and include escalation clauses and renewal options as follows (unaudited, in thousands):
(1) Lease options are exercised through 2035 with options which are reasonably certain to be exercised through 2051. (2) Includes $35 thousand and $69 thousand in variable percentage rent, during the three and six months ended June 30, 2020, respectively. Includes $31 thousand and $61 thousand in variable percentage rent, during the three and six months ended June 30, 2019, respectively. Supplemental information related to leases is as follows (in thousands, unaudited):
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Schedule of Undiscounted Cash Flows of Scheduled Obligations for Under Operating Leases | Undiscounted cash flows of our scheduled obligations for future minimum lease payments due under the operating leases, including applicable automatic extension options and options reasonably certain of being exercised, as of June 30, 2020 and a reconciliation of those cash flows to the operating lease liabilities at June 30, 2020 are as follows (in thousands, unaudited):
(1) Operating lease payments include $7.54 million related to options to extend lease terms that are reasonably certain of being exercised |
Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party activity | The following summarizes related party activity for the six months ended June 30, 2020 and 2019. The amounts disclosed below reflect the activity between the Company and its affiliates (in thousands).
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Organization and Basis of Presentation and Consolidation (Details) |
Jun. 30, 2020
Property
property
Building
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Accounting Policies [Abstract] | |
Number of real estate properties | property | 60 |
Number of office buildings | Building | 1 |
Number of undeveloped land parcels | Property | 6 |
Summary of Significant Accounting Policies - Additional Information (Details) |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020
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Jun. 30, 2020
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Property
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Jun. 30, 2019
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Jun. 30, 2020
USD ($)
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asset_class
$ / shares
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Jun. 30, 2019
USD ($)
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Dec. 31, 2019
USD ($)
$ / shares
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Apr. 30, 2020
USD ($)
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Impairment of assets held for sale | $ 0 | $ 1,147,000 | $ 600,000 | $ 1,147,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity of highly liquid investments | 90 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance coverage amount | $ 250,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past due rent charge term | 5 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts | 1,550,000 | $ 1,550,000 | $ 1,140,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit losses on operating lease receivables | 431,000 | 110,000 | 585,000 | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant recoveries realized from previous charge-offs | 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of underlying asset classes | asset_class | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property management fee, percent fee | 3.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum percentage of taxable income to be distributed to stockholders (as percent) | 90.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for federal income taxes | $ 24,000 | $ 22,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term of disqualification to be taxed as a REIT due to loss of REIT status | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset management fee, percent fee | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlement costs | $ 439,000 | $ 0 | $ 585,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock, par value per share (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ROU assets | $ 11,555,000 | $ 11,555,000 | $ 11,651,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of undeveloped land parcels | Property | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate Investment properties consist of the following (in thousands):
The Company’s depreciation expense on investment properties was $2.86 million and $5.80 million for the three and six months ended June 30, 2020, respectively. The Company’s depreciation expense on investment properties was $2.88 million and $6.07 million for the three and six months ended June 30, 2019, respectively. A significant portion of the Company’s land, buildings and improvements serve as collateral for its mortgage loans. Accordingly, restrictions exist as to the encumbered property’s transferability, use and other common rights typically associated with property ownership. Assets Held for Sale and Dispositions At June 30, 2020 and December 31, 2019 assets held for sale included Columbia Fire Station and St. Matthews, respectively as the Board committed to a plan to sell each property. The Company recorded impairment expense on assets held for sale of $0 thousand and $600 thousand for the three and six months ended June 30, 2020, respectively, related to Columbia Fire Station. During the three and six months ended June 30, 2019, the Company's impairment expense of $1.15 million relates to Perimeter Square. The impairments result from reducing the carrying value of properties held for sale for the amount that exceeded the property's fair value less estimated selling costs. The valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 inputs. As of June 30, 2020 and December 31, 2019, assets held for sale and associated liabilities consisted of the following (in thousands):
The following properties were sold during the six months ended June 30, 2020 and 2019:
The Harbor Pointe land parcel sale represents discontinued operations as it was a strategic shift that had a major effect on the Company's financial position or results of operations. The sale of Jenks Plaza, Graystone Crossing and St. Matthews did not represent a strategic shift that has a major effect on the Company's financial position or results of operations. Accordingly, the operating results of these properties remains classified within continuing operations for all periods presented. In May 2019, an approximate 10,000 square foot outparcel at the JANAF property was demolished resulting in a $331 thousand write-off to make way for a new approximate 20,000 square foot building constructed by a new grocer tenant. |
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Buildings and improvements | Minimum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, useful life | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buildings and improvements | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, useful life | 40 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rent and other tenant receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries related to tenant receivables | $ 3,920,000 | $ 3,920,000 | $ 3,410,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Lease | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission fee, percent fee | 6.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Renewed Lease | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission fee, percent fee | 3.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KeyBank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPP funds | $ 552,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate. stated percentage | 1.00% |
Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Operating Lease, Lease Income, Lease Payments | $ 12,050 | $ 11,974 | $ 24,163 | $ 24,435 |
Non-lease revenues | 360 | 141 | 579 | 366 |
Total | 15,600 | 15,642 | 31,328 | 31,727 |
Credit losses on operating lease receivables | (431) | (110) | (585) | (200) |
Total Revenue | 15,169 | 15,532 | 30,743 | 31,527 |
Tenant reimbursements - variable lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Variable lease revenue | 3,141 | 3,450 | 6,429 | 6,737 |
Percentage rent - variable lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Variable lease revenue | 49 | 77 | 157 | 189 |
Lease termination fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-lease revenues | 12 | 0 | 74 | 49 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-lease revenues | $ 348 | $ 141 | $ 505 | $ 317 |
Summary of Significant Accounting Policies - Corporate General and Administrative Expenses ("CG&A") (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
CG&A Schedule [Abstract] | ||||
Professional fees | $ 919 | $ 328 | $ 1,945 | $ 927 |
Compensation and benefits | 375 | 431 | 782 | 1,107 |
Corporate administration | 294 | 303 | 625 | 608 |
Marketing and Advertising Expense | 21 | 114 | 52 | 163 |
Other | 6 | 204 | 83 | 389 |
Total | $ 1,615 | $ 1,380 | $ 3,487 | $ 3,194 |
Real Estate - Investment Properties (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Real Estate [Line Items] | ||
Investment properties at cost | $ 459,937 | $ 466,681 |
Less accumulated depreciation | (55,551) | (50,466) |
Investment properties, net | 404,386 | 416,215 |
Land and land improvements | ||
Real Estate [Line Items] | ||
Investment properties at cost | 98,981 | 100,599 |
Buildings and improvements | ||
Real Estate [Line Items] | ||
Investment properties at cost | $ 360,956 | $ 366,082 |
Real Estate - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Feb. 07, 2019
USD ($)
a
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Depreciation expense | $ 2,860 | $ 2,880 | $ 5,800 | $ 6,067 | |
Impairment of assets held for sale | $ 0 | $ 1,147 | $ 600 | $ 1,147 | |
Harbor Point Land Parcel | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Business Acquisition [Line Items] | |||||
Area of land | a | 1.28 | ||||
Write-off of demolished property | $ 0 |
Real Estate - Assets Held for Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Real Estate [Line Items] | |||||
Impairment of assets held for sale | $ 0 | $ 1,147 | $ 600 | $ 1,147 | |
Assets | |||||
Assets held for sale | 6,287 | 6,287 | $ 1,737 | ||
Liabilities | |||||
Loans payable | 4,117 | 4,117 | 2,026 | ||
Held-for-sale, Not Discontinued Operations | |||||
Assets | |||||
Investment properties, net | 6,189 | 6,189 | 1,651 | ||
Rents and other tenant receivables, net | 38 | 38 | 77 | ||
Deferred costs and other assets, net | 60 | 60 | 9 | ||
Assets held for sale | 6,287 | 6,287 | 1,737 | ||
Liabilities | |||||
Loans payable | 4,013 | 4,013 | 1,974 | ||
Accounts payable | 104 | 104 | 52 | ||
Total liabilities associated with assets held for sale | $ 4,117 | $ 4,117 | $ 2,026 |
Deferred Costs - Deferred Costs and Other Assets, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | $ 18,871 | $ 21,025 |
Tenant relationships, net | 1,636 | 2,173 |
Lease origination costs, net | 1,025 | 1,038 |
Other | 1,748 | 588 |
Leases in place, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | 12,355 | 14,968 |
Ground lease sandwich interest, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | 2,078 | 2,215 |
Legal and marketing costs, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred costs and other assets, net | $ 29 | $ 43 |
Deferred Costs - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Amortization of intangible assets | $ 1,590 | $ 2,410 | $ 3,450 | $ 5,040 | |
Finite-lived intangible assets, accumulated amortization | $ 59,030 | $ 59,030 | $ 57,150 |
Loans Payable - Summary of Company's Scheduled Principal Repayments on Indebtedness (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
For the remaining six months ended December 31, 2020 | $ 41,053 |
December 31, 2021 | 11,333 |
December 31, 2022 | 16,080 |
December 31, 2023 | 85,576 |
December 31, 2024 | 44,240 |
December 31, 2025 | 91,426 |
Thereafter | 49,856 |
Total principal repayments and debt maturities | $ 339,564 |
Rentals under Operating Leases (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
For the remaining six months ended December 31, 2020 | $ 23,010 |
December 31, 2021 | 42,654 |
December 31, 2022 | 37,062 |
December 31, 2023 | 30,949 |
December 31, 2024 | 24,050 |
December 31, 2025 | 17,672 |
Thereafter | 40,927 |
Total minimum rents | $ 216,324 |
Equity and Mezzanine Equity - Changes in Carrying Value of Series D Preferred (Details) - Series D Preferred - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
|
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Series D Preferred, Beginning Balance | $ 89,792 | $ 87,225 | $ 79,522 | $ 76,955 |
Accretion of Preferred Stock discount | 149 | 148 | 149 | 148 |
Undeclared dividends | 2,419 | 2,419 | 2,419 | 2,419 |
Series D Preferred, Ending Balance | $ 92,360 | $ 89,792 | $ 82,090 | $ 79,522 |
Equity and Mezzanine Equity - Antidilutive Securities Excluded From Calculation of Earnings Per Share (Details) - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Series B Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 1,875,748 | 1,875,748 |
Potential dilutive shares (in shares) | 1,172,343 | |
Series D Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Preferred stock, shares outstanding (in shares) | 3,600,636 | |
Potential dilutive shares (in shares) | 5,307,541 | |
Common units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding units (in shares) | 232,404 | |
Potential dilutive shares (in shares) | 232,404 |
Equity and Mezzanine Equity - Summary of Preferred Stock Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Dividends Payable [Line Items] | ||||
Arrears | $ 23,960 | |||
Series A Preferred | ||||
Dividends Payable [Line Items] | ||||
Arrears | $ 13 | $ 13 | $ 26 | $ 26 |
Per Share (in usd per share) | $ 22.50 | $ 22.50 | $ 22.50 | $ 22.50 |
Series B Preferred | ||||
Dividends Payable [Line Items] | ||||
Arrears | $ 1,055 | $ 1,055 | $ 2,110 | $ 2,110 |
Per Share (in usd per share) | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.56 |
Series D Preferred | ||||
Dividends Payable [Line Items] | ||||
Arrears | $ 2,419 | $ 2,419 | $ 4,838 | $ 4,838 |
Per Share (in usd per share) | $ 0.67 | $ 0.67 | $ 0.67 | $ 0.67 |
Equity and Mezzanine Equity - Summary of Compensation Costs (Details) - 2016 Long-Term Incentive Plan - Common Stock $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
shares
| |
Class of Stock [Line Items] | |
Shares Issued (in shares) | shares | 181,807,000 |
Market Value | $ | $ 166 |
Lease Commitments - Additional Information (Details) |
Jun. 30, 2020 |
Jun. 30, 2019 |
---|---|---|
Lessee, Lease, Description [Line Items] | ||
Weighted-average remaining lease term | 34 years | 35 years |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 5 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 50 years |
Lease Commitments - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 145 | $ 169 | $ 291 | $ 339 |
Leased assets obtained in exchange for new operating lease liabilities | $ 0 | $ 0 | $ 0 | $ 11,904 |
Lease Commitments - Undiscounted Cash Flows of Scheduled Obligations Under Operating Leases (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
For the remaining six months ended December 31, 2020 | $ 292 | |
December 31, 2021 | 637 | |
December 31, 2022 | 640 | |
December 31, 2023 | 642 | |
December 31, 2024 | 644 | |
December 31, 2025 | 648 | |
Thereafter | 22,460 | |
Total minimum lease payments | 25,963 | |
Discount | (14,045) | |
Operating lease liabilities | 11,918 | $ 11,921 |
Operating lease options to extend | $ 7,540 |
Related Party Transactions - Summary of Related Party Activity (Details) - Wheeler Interests and Affiliates - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Related Party Transaction [Line Items] | ||
Amounts paid to affiliates | $ 37 | $ 0 |
Amounts received from affiliates | $ 0 | $ 12 |
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Oct. 29, 2019 |
|
Related Party Transaction [Line Items] | ||
Percentage Of Ownership Interests In Operating Partnership | 9.80% | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 439 |
Subsequent Events (Details) - USD ($) |
6 Months Ended | ||||
---|---|---|---|---|---|
Jul. 31, 2020 |
Jul. 15, 2020 |
Jun. 30, 2020 |
May 22, 2020 |
Dec. 31, 2019 |
|
Subsequent Event [Line Items] | |||||
Loans payable, net | $ 331,615,000 | $ 340,913,000 | |||
Walnut Hill Plaza | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, periodic payment | 26,850 | ||||
Loans payable, net | $ 3,730,000 | 3,759,000 | |||
Debt instrument, interest rate. stated percentage | 5.50% | ||||
Walnut Hill Plaza | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, periodic payment | $ 428,000 | ||||
Loans payable, net | $ 3,300,000 | ||||
Shoppes at TJ Maxx | |||||
Subsequent Event [Line Items] | |||||
Loans payable, net | $ 5,278,000 | $ 5,344,000 | |||
Debt instrument, interest rate. stated percentage | 3.88% | 3.88% | |||
Shoppes at TJ Maxx | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, periodic payment | $ 33,880 | ||||
Loans payable, net | 5,280,000 | ||||
Escrow deposit | $ 340,000 |
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