þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland (Brixmor Property Group Inc.) | 45-2433192 | |
Delaware (Brixmor Operating Partnership LP) | 80-0831163 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Brixmor Property Group Inc. | Brixmor Operating Partnership LP | ||||||||
Large accelerated filer | þ | Non-accelerated filer | ☐ | Large accelerated filer | ☐ | Non-accelerated filer | þ | ||
Smaller reporting company | ☐ | Accelerated filer | ☐ | Smaller reporting company | ☐ | Accelerated filer | ☐ | ||
Emerging growth company | ☐ | Emerging growth company | ☐ | ||||||
(Do not check if a smaller reporting company) |
• | Enhances investors’ understanding of the Parent Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | Eliminates duplicative disclosure and provides a more streamlined and readable presentation; and |
• | Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
Item No. | Page | |
Part I - FINANCIAL INFORMATION | ||
1. | Financial Statements | |
Brixmor Property Group Inc. (unaudited) | ||
Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 | ||
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2017 and 2016 | ||
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2017 and 2016 | ||
Condensed Consolidated Statements of Changes in Equity for the Nine Months Ended September 30, 2017 and 2016 | ||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016 | ||
Brixmor Operating Partnership LP (unaudited) | ||
Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 | ||
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2017 and 2016 | ||
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2017 and 2016 | ||
Condensed Consolidated Statements of Changes in Capital for the Nine Months Ended September 30, 2017 and 2016 | ||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016 | ||
Brixmor Property Group Inc. and Brixmor Operating Partnership LP (unaudited) | ||
Notes to Condensed Consolidated Financial Statements | ||
2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
3. | Quantitative and Qualitative Disclosures about Market Risk | |
4. | Controls and Procedures | |
Part II - OTHER INFORMATION | ||
1. | Legal Proceedings | |
1A. | Risk Factors | |
2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
3. | Defaults Upon Senior Securities | |
4. | Mine Safety Disclosures | |
5. | Other Information | |
6. | Exhibits |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited, in thousands, except share information) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Real estate | |||||||
Land | $ | 1,985,781 | $ | 2,006,655 | |||
Buildings and improvements | 8,944,738 | 9,002,403 | |||||
10,930,519 | 11,009,058 | ||||||
Accumulated depreciation and amortization | (2,320,090 | ) | (2,167,054 | ) | |||
Real estate, net | 8,610,429 | 8,842,004 | |||||
Investments in and advances to unconsolidated joint venture | — | 7,921 | |||||
Cash and cash equivalents | 29,978 | 51,402 | |||||
Restricted cash | 112,040 | 51,467 | |||||
Marketable securities | 28,840 | 25,573 | |||||
Receivables, net of allowance for doubtful accounts of $16,177 and $16,756 | 219,873 | 178,216 | |||||
Deferred charges and prepaid expenses, net | 143,140 | 122,787 | |||||
Other assets | 51,920 | 40,315 | |||||
Total assets | $ | 9,196,220 | $ | 9,319,685 | |||
Liabilities | |||||||
Debt obligations, net | $ | 5,713,688 | $ | 5,838,889 | |||
Accounts payable, accrued expenses and other liabilities | 561,191 | 553,636 | |||||
Total liabilities | 6,274,879 | 6,392,525 | |||||
Commitments and contingencies (Note 13) | |||||||
Equity | |||||||
Common stock, $0.01 par value; authorized 3,000,000,000 shares; 304,937,144 and 304,343,141 shares outstanding | 3,049 | 3,043 | |||||
Additional paid-in capital | 3,333,696 | 3,324,874 | |||||
Accumulated other comprehensive income | 20,054 | 21,519 | |||||
Distributions in excess of net income | (435,458 | ) | (426,552 | ) | |||
Total stockholders’ equity | 2,921,341 | 2,922,884 | |||||
Non-controlling interests | — | 4,276 | |||||
Total equity | 2,921,341 | 2,927,160 | |||||
Total liabilities and equity | $ | 9,196,220 | $ | 9,319,685 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Rental income | $ | 246,578 | $ | 247,859 | $ | 749,976 | $ | 744,580 | |||||||
Expense reimbursements | 66,489 | 69,469 | 206,718 | 200,944 | |||||||||||
Other revenues | 1,429 | 1,249 | 6,426 | 6,214 | |||||||||||
Total revenues | 314,496 | 318,577 | 963,120 | 951,738 | |||||||||||
Operating expenses | |||||||||||||||
Operating costs | 30,505 | 31,041 | 100,955 | 97,507 | |||||||||||
Real estate taxes | 45,076 | 47,812 | 135,607 | 130,886 | |||||||||||
Depreciation and amortization | 94,239 | 98,337 | 285,040 | 294,634 | |||||||||||
Provision for doubtful accounts | 1,216 | 2,218 | 4,023 | 6,579 | |||||||||||
Impairment of real estate assets | 11,065 | 1,971 | 27,383 | 1,971 | |||||||||||
General and administrative | 22,838 | 21,787 | 67,043 | 69,709 | |||||||||||
Total operating expenses | 204,939 | 203,166 | 620,051 | 601,286 | |||||||||||
Other income (expense) | |||||||||||||||
Dividends and interest | 76 | 89 | 234 | 481 | |||||||||||
Interest expense | (57,410 | ) | (57,855 | ) | (170,584 | ) | (171,482 | ) | |||||||
Gain on sale of real estate assets | 25,942 | 2,450 | 54,920 | 10,232 | |||||||||||
Gain (loss) on extinguishment of debt, net | 1,828 | (1,042 | ) | 488 | (949 | ) | |||||||||
Other | (1,200 | ) | (1,370 | ) | (2,591 | ) | (4,258 | ) | |||||||
Total other expense | (30,764 | ) | (57,728 | ) | (117,533 | ) | (165,976 | ) | |||||||
Income before equity in income of unconsolidated joint venture | 78,793 | 57,683 | 225,536 | 184,476 | |||||||||||
Equity in income of unconsolidated joint venture | 31 | 122 | 381 | 348 | |||||||||||
Gain on disposition of unconsolidated joint venture interest | 4,556 | — | 4,556 | — | |||||||||||
Net income | 83,380 | 57,805 | 230,473 | 184,824 | |||||||||||
Net income attributable to non-controlling interests | — | (313 | ) | (76 | ) | (2,399 | ) | ||||||||
Net income attributable to Brixmor Property Group Inc. | 83,380 | 57,492 | 230,397 | 182,425 | |||||||||||
Preferred stock dividends | — | — | (39 | ) | — | ||||||||||
Net income attributable to common stockholders | $ | 83,380 | $ | 57,492 | $ | 230,358 | $ | 182,425 | |||||||
Per common share: | |||||||||||||||
Net income attributable to common stockholders: | |||||||||||||||
Basic | $ | 0.27 | $ | 0.19 | $ | 0.76 | $ | 0.61 | |||||||
Diluted | $ | 0.27 | $ | 0.19 | $ | 0.75 | $ | 0.61 | |||||||
Weighted average shares: | |||||||||||||||
Basic | 304,936 | 303,013 | 304,810 | 300,697 | |||||||||||
Diluted | 305,176 | 303,521 | 305,175 | 301,146 | |||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 83,380 | $ | 57,805 | 230,473 | 184,824 | |||||||||
Other comprehensive income (loss) | |||||||||||||||
Change in unrealized gain (loss) on interest rate swaps, net (Note 6) | (962 | ) | 1,321 | (1,434 | ) | 2,413 | |||||||||
Change in unrealized gain (loss) on marketable securities | (11 | ) | (54 | ) | (31 | ) | 81 | ||||||||
Total other comprehensive income (loss) | (973 | ) | 1,267 | (1,465 | ) | 2,494 | |||||||||
Comprehensive income | 82,407 | 59,072 | 229,008 | 187,318 | |||||||||||
Comprehensive income attributable to non-controlling interests | — | (313 | ) | (76 | ) | (2,399 | ) | ||||||||
Comprehensive income attributable to common stockholders | $ | 82,407 | $ | 58,759 | $ | 228,932 | $ | 184,919 | |||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||
Number | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Net Income | Non-controlling Interests | Total | ||||||||||||||||||||
Beginning balance, January 1, 2016 | 299,138 | $ | 2,991 | $ | 3,270,246 | $ | (2,509 | ) | $ | (400,945 | ) | $ | 50,519 | $ | 2,920,302 | |||||||||||
Common stock dividends ($0.735 per common share) | — | — | — | — | (221,828 | ) | — | (221,828 | ) | |||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (2,304 | ) | (2,304 | ) | |||||||||||||||||
Equity based compensation expense | — | — | 7,954 | — | — | 87 | 8,041 | |||||||||||||||||||
Issuance of common stock and OP Units | 207 | 2 | (1,395 | ) | — | — | 1,604 | 211 | ||||||||||||||||||
Other comprehensive income | — | — | — | 2,494 | — | — | 2,494 | |||||||||||||||||||
Conversion of Operating Partnership units into common stock | 4,976 | 50 | 47,876 | — | — | (47,926 | ) | — | ||||||||||||||||||
Shared-based awards retained for taxes | — | — | (3,206 | ) | — | — | — | (3,206 | ) | |||||||||||||||||
Net income | — | — | — | — | 182,425 | 2,399 | 184,824 | |||||||||||||||||||
Ending balance, September 30, 2016 | 304,321 | $ | 3,043 | $ | 3,321,475 | $ | (15 | ) | $ | (440,348 | ) | $ | 4,379 | $ | 2,888,534 | |||||||||||
Beginning balance, January 1, 2017 | 304,343 | $ | 3,043 | $ | 3,324,874 | $ | 21,519 | $ | (426,552 | ) | $ | 4,276 | $ | 2,927,160 | ||||||||||||
Common stock dividends ($0.78 per common share) | — | — | — | — | (238,662 | ) | — | (238,662 | ) | |||||||||||||||||
Equity based compensation expense | — | — | 7,835 | — | — | 3 | 7,838 | |||||||||||||||||||
Preferred stock redemptions/dividends | — | — | — | — | (641 | ) | (648 | ) | (1,289 | ) | ||||||||||||||||
Issuance of common stock and OP Units | 191 | 6 | — | — | — | (6 | ) | — | ||||||||||||||||||
Other comprehensive loss | — | — | — | (1,465 | ) | — | — | (1,465 | ) | |||||||||||||||||
Conversion of Operating Partnership units into common stock | 403 | — | 3,701 | — | — | (3,701 | ) | — | ||||||||||||||||||
Shared-based awards retained for taxes | — | — | (2,714 | ) | — | — | — | (2,714 | ) | |||||||||||||||||
Net income | — | — | — | — | 230,397 | 76 | 230,473 | |||||||||||||||||||
Ending balance, September 30, 2017 | 304,937 | $ | 3,049 | $ | 3,333,696 | $ | 20,054 | $ | (435,458 | ) | $ | — | $ | 2,921,341 | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Operating activities: | |||||||
Net income | $ | 230,473 | $ | 184,824 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 285,040 | 294,634 | |||||
Debt premium and discount amortization | (4,371 | ) | (10,630 | ) | |||
Deferred financing cost amortization | 5,283 | 5,827 | |||||
Above- and below-market lease intangible amortization | (23,012 | ) | (29,471 | ) | |||
Provisions for impairment | 27,383 | 1,971 | |||||
Gain on disposition of operating properties | (54,920 | ) | (10,232 | ) | |||
Gain on disposition of unconsolidated joint venture interest | (4,556 | ) | — | ||||
Equity based compensation | 7,838 | 8,041 | |||||
Other | 1,836 | 797 | |||||
(Gain) loss on extinguishment of debt, net | (494 | ) | 937 | ||||
Changes in operating assets and liabilities: | |||||||
Receivables | (15,675 | ) | 4,042 | ||||
Deferred charges and prepaid expenses | (41,760 | ) | (33,101 | ) | |||
Other assets | (3,753 | ) | 350 | ||||
Accounts payable, accrued expenses and other liabilities | 11,801 | 3,202 | |||||
Net cash provided by operating activities | 421,113 | 421,191 | |||||
Investing activities: | |||||||
Improvements to and investments in real estate assets | (140,036 | ) | (135,868 | ) | |||
Acquisitions of real estate assets | (111,790 | ) | (6,733 | ) | |||
Proceeds from sales of real estate assets | 228,680 | 31,068 | |||||
Proceeds from sale of unconsolidated joint venture interest | 12,369 | — | |||||
Purchase of marketable securities | (23,998 | ) | (35,172 | ) | |||
Proceeds from sale of marketable securities | 20,640 | 31,622 | |||||
Net cash used in investing activities | (14,135 | ) | (115,083 | ) | |||
Financing activities: | |||||||
Repayment of debt obligations and financing liabilities | (396,356 | ) | (865,918 | ) | |||
Repayment of borrowings under unsecured revolving credit facility | (548,000 | ) | (805,000 | ) | |||
Proceeds from borrowings under unsecured revolving credit facility | 426,000 | 481,000 | |||||
Proceeds from unsecured term loan and notes | 1,193,916 | 1,094,648 | |||||
Repayment of borrowings under unsecured term loan | (790,000 | ) | — | ||||
Deferred financing costs | (11,179 | ) | (17,698 | ) | |||
Distributions to common stockholders | (238,106 | ) | (220,627 | ) | |||
Distributions to non-controlling interests | (1,390 | ) | (3,492 | ) | |||
Repurchase of common shares in conjunction with equity award plans | (2,714 | ) | (3,206 | ) | |||
Net cash used in financing activities | (367,829 | ) | (340,293 | ) | |||
Change in cash, cash equivalents and restricted cash | 39,149 | (34,185 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 102,869 | 110,990 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 142,018 | $ | 76,805 | |||
Reconciliation to consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 29,978 | $ | 31,143 | |||
Restricted cash | 112,040 | 45,662 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 142,018 | $ | 76,805 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of amount capitalized of $2,268 and $1,918 | $ | 176,524 | $ | 183,505 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited, in thousands, except unit information) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Real estate | |||||||
Land | $ | 1,985,781 | $ | 2,006,655 | |||
Buildings and improvements | 8,944,738 | 9,002,403 | |||||
10,930,519 | 11,009,058 | ||||||
Accumulated depreciation and amortization | (2,320,090 | ) | (2,167,054 | ) | |||
Real estate, net | 8,610,429 | 8,842,004 | |||||
Investments in and advances to unconsolidated joint venture | — | 7,921 | |||||
Cash and cash equivalents | 29,948 | 51,368 | |||||
Restricted cash | 112,040 | 51,467 | |||||
Marketable securities | 28,622 | 25,356 | |||||
Receivables, net of allowance for doubtful accounts of $16,177 and $16,756 | 219,873 | 178,216 | |||||
Deferred charges and prepaid expenses, net | 143,140 | 122,787 | |||||
Other assets | 51,920 | 40,315 | |||||
Total assets | $ | 9,195,972 | $ | 9,319,434 | |||
Liabilities | |||||||
Debt obligations, net | $ | 5,713,688 | $ | 5,838,889 | |||
Accounts payable, accrued expenses and other liabilities | 561,191 | 553,636 | |||||
Total liabilities | 6,274,879 | 6,392,525 | |||||
Commitments and contingencies (Note 13) | |||||||
Capital | |||||||
Partnership common units; 304,937,144 and 304,720,842 units issued and outstanding | 2,901,026 | 2,905,378 | |||||
Accumulated other comprehensive income | 20,067 | 21,531 | |||||
Total capital | 2,921,093 | 2,926,909 | |||||
Total liabilities and capital | $ | 9,195,972 | $ | 9,319,434 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Rental income | $ | 246,578 | $ | 247,859 | $ | 749,976 | $ | 744,580 | |||||||
Expense reimbursements | 66,489 | 69,469 | 206,718 | 200,944 | |||||||||||
Other revenues | 1,429 | 1,249 | 6,426 | 6,214 | |||||||||||
Total revenues | 314,496 | 318,577 | 963,120 | 951,738 | |||||||||||
Operating expenses | |||||||||||||||
Operating costs | 30,505 | 31,041 | 100,955 | 97,507 | |||||||||||
Real estate taxes | 45,076 | 47,812 | 135,607 | 130,886 | |||||||||||
Depreciation and amortization | 94,239 | 98,337 | 285,040 | 294,634 | |||||||||||
Provision for doubtful accounts | 1,216 | 2,218 | 4,023 | 6,579 | |||||||||||
Impairment of real estate assets | 11,065 | 1,971 | 27,383 | 1,971 | |||||||||||
General and administrative | 22,838 | 21,787 | 67,043 | 69,709 | |||||||||||
Total operating expenses | 204,939 | 203,166 | 620,051 | 601,286 | |||||||||||
Other income (expense) | |||||||||||||||
Dividends and interest | 76 | 89 | 234 | 481 | |||||||||||
Interest expense | (57,410 | ) | (57,855 | ) | (170,584 | ) | (171,482 | ) | |||||||
Gain on sale of real estate assets | 25,942 | 2,450 | 54,920 | 10,232 | |||||||||||
Gain (loss) on extinguishment of debt, net | 1,828 | (1,042 | ) | 488 | (949 | ) | |||||||||
Other | (1,200 | ) | (1,370 | ) | (2,591 | ) | (4,258 | ) | |||||||
Total other expense | (30,764 | ) | (57,728 | ) | (117,533 | ) | (165,976 | ) | |||||||
Income before equity in income of unconsolidated joint venture | 78,793 | 57,683 | 225,536 | 184,476 | |||||||||||
Equity in income of unconsolidated joint venture | 31 | 122 | 381 | 348 | |||||||||||
Gain on disposition of unconsolidated joint venture interest | 4,556 | — | 4,556 | — | |||||||||||
Net income attributable to Brixmor Operating Partnership LP | $ | 83,380 | $ | 57,805 | $ | 230,473 | $ | 184,824 | |||||||
Per common unit: | |||||||||||||||
Net income attributable to partnership common units: | |||||||||||||||
Basic | $ | 0.27 | $ | 0.19 | $ | 0.76 | $ | 0.61 | |||||||
Diluted | $ | 0.27 | $ | 0.19 | $ | 0.76 | $ | 0.61 | |||||||
Weighted average number of partnership common units: | |||||||||||||||
Basic | 304,936 | 304,659 | 304,914 | 304,577 | |||||||||||
Diluted | 305,176 | 305,167 | 305,175 | 305,026 | |||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income attributable to Brixmor Operating Partnership LP | $ | 83,380 | $ | 57,805 | $ | 230,473 | $ | 184,824 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Change in unrealized gain (loss) on interest rate swaps, net (Note 6) | (962 | ) | 1,321 | (1,434 | ) | 2,413 | |||||||||
Change in unrealized gain (loss) on marketable securities | (10 | ) | (54 | ) | (30 | ) | 76 | ||||||||
Total other comprehensive income (loss) | (972 | ) | 1,267 | (1,464 | ) | 2,489 | |||||||||
Comprehensive income attributable to Brixmor Operating Partnership LP | $ | 82,408 | $ | 59,072 | $ | 229,009 | $ | 187,313 | |||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL | |||||||||||
(Unaudited, in thousands) | |||||||||||
Partnership Common Units | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||
Beginning balance, January 1, 2016 | $ | 2,922,565 | $ | (2,495 | ) | $ | 2,920,070 | ||||
Distributions to partners | (224,148 | ) | — | (224,148 | ) | ||||||
Equity based compensation expense | 8,041 | — | 8,041 | ||||||||
Other comprehensive income | — | 2,489 | 2,489 | ||||||||
Issuance of OP Units | 211 | — | 211 | ||||||||
Share-based awards retained for taxes | (3,206 | ) | — | (3,206 | ) | ||||||
Net income attributable to Brixmor Operating Partnership LP | 184,824 | — | 184,824 | ||||||||
Ending balance, September 30, 2016 | $ | 2,888,287 | $ | (6 | ) | $ | 2,888,281 | ||||
Beginning balance, January 1, 2017 | $ | 2,905,378 | $ | 21,531 | $ | 2,926,909 | |||||
Distributions to partners | (239,949 | ) | — | (239,949 | ) | ||||||
Equity based compensation expense | 7,838 | — | 7,838 | ||||||||
Other comprehensive loss | — | (1,464 | ) | (1,464 | ) | ||||||
Share-based awards retained for taxes | (2,714 | ) | — | (2,714 | ) | ||||||
Net income attributable to Brixmor Operating Partnership LP | 230,473 | — | 230,473 | ||||||||
Ending balance, September 30, 2017 | $ | 2,901,026 | $ | 20,067 | $ | 2,921,093 | |||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Operating activities: | |||||||
Net income attributable to Brixmor Operating Partnership LP | $ | 230,473 | $ | 184,824 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 285,040 | 294,634 | |||||
Debt premium and discount amortization | (4,371 | ) | (10,630 | ) | |||
Deferred financing cost amortization | 5,283 | 5,827 | |||||
Above- and below-market lease intangible amortization | (23,012 | ) | (29,471 | ) | |||
Provisions for impairment | 27,383 | 1,971 | |||||
Gain on disposition of operating properties | (54,920 | ) | (10,232 | ) | |||
Gain on disposition of unconsolidated joint venture interest | (4,556 | ) | — | ||||
Equity based compensation | 7,838 | 8,041 | |||||
Other | 1,836 | 797 | |||||
(Gain) loss on extinguishment of debt, net | (494 | ) | 937 | ||||
Changes in operating assets and liabilities: | |||||||
Receivables | (15,675 | ) | 4,042 | ||||
Deferred charges and prepaid expenses | (41,760 | ) | (33,101 | ) | |||
Other assets | (3,753 | ) | 350 | ||||
Accounts payable, accrued expenses and other liabilities | 11,801 | 3,202 | |||||
Net cash provided by operating activities | 421,113 | 421,191 | |||||
Investing activities: | |||||||
Improvements to and investments in real estate assets | (140,036 | ) | (135,868 | ) | |||
Acquisitions of real estate assets | (111,790 | ) | (6,733 | ) | |||
Proceeds from sales of real estate assets | 228,680 | 31,068 | |||||
Proceeds from sale of unconsolidated joint venture interest | 12,369 | — | |||||
Purchase of marketable securities | (23,995 | ) | (35,163 | ) | |||
Proceeds from sale of marketable securities | 20,640 | 31,622 | |||||
Net cash used in investing activities | (14,132 | ) | (115,074 | ) | |||
Financing activities: | |||||||
Repayment of debt obligations and financing liabilities | (396,356 | ) | (865,918 | ) | |||
Repayment of borrowings under unsecured revolving credit facility | (548,000 | ) | (805,000 | ) | |||
Proceeds from borrowings under unsecured revolving credit facility | 426,000 | 481,000 | |||||
Proceeds from unsecured term loan and notes | 1,193,916 | 1,094,648 | |||||
Repayment of borrowings under unsecured term loan | (790,000 | ) | — | ||||
Deferred financing costs | (11,179 | ) | (17,698 | ) | |||
Partner distributions | (242,209 | ) | (227,348 | ) | |||
Net cash used in financing activities | (367,828 | ) | (340,316 | ) | |||
Change in cash, cash equivalents and restricted cash | 39,153 | (34,199 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 102,835 | 110,968 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 141,988 | $ | 76,769 | |||
Reconciliation to consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 29,948 | $ | 31,107 | |||
Restricted cash | 112,040 | 45,662 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 141,988 | $ | 76,769 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of amount capitalized of $2,268 and $1,918 | $ | 176,524 | $ | 183,505 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
Building and building and land improvements | 20 - 40 years |
Furniture, fixtures, and equipment | 5 - 10 years |
Tenant improvements | The shorter of the term of the related lease or useful life |
Aggregate Purchase Price | ||||||||||||||||
Description | Location | Month Acquired | GLA | Cash | Debt Assumed | Total | ||||||||||
Outparcel building adjacent to Annex of Arlington | Arlington Heights, IL | Feb-17 | 5,760 | $ | 1,006 | $ | — | $ | 1,006 | |||||||
Outparcel adjacent to Northeast Plaza | Atlanta, GA | Feb-17 | N/A | 1,537 | — | 1,537 | ||||||||||
Arborland Center | Ann Arbor, MI | Mar-17 | 403,536 | 102,268 | — | 102,268 | ||||||||||
Building adjacent to Preston Park | Plano, TX | Apr-17 | 31,080 | 4,015 | — | 4,015 | ||||||||||
Outparcel building adjacent to Cobblestone Village | St. Augustine, FL | May-17 | 4,403 | 1,306 | — | 1,306 | ||||||||||
Outparcel adjacent to Wynnewood Village | Dallas, TX | May-17 | N/A | 1,658 | — | 1,658 | ||||||||||
444,779 | $ | 111,790 | $ | — | $ | 111,790 |
Nine Months Ended September 30, 2017 | |||||
Assets | |||||
Land | $ | 19,240 | |||
Buildings | 75,286 | ||||
Building and tenant improvements | 9,177 | ||||
Above market rents | 2,381 | ||||
In-place leases | 8,608 | ||||
Total assets | 114,692 | ||||
Liabilities | |||||
Accounts payable, accrued expenses and other liabilities (below market leases) | 2,902 | ||||
Total liabilities | 2,902 | ||||
Net Assets Acquired | $ | 111,790 |
September 30, 2017 | December 31, 2016 | ||||||
Land | $ | 1,985,781 | $ | 2,006,655 | |||
Buildings and improvements: | |||||||
Buildings and tenant improvements | 8,143,978 | 8,165,672 | |||||
Lease intangibles (1) | 800,760 | 836,731 | |||||
10,930,519 | 11,009,058 | ||||||
Accumulated depreciation and amortization (2) | (2,320,090 | ) | (2,167,054 | ) | |||
Total | $ | 8,610,429 | $ | 8,842,004 |
(1) | At September 30, 2017 and December 31, 2016, Lease intangibles consisted of $723.2 million and $758.0 million, respectively, of in-place leases and $77.6 million and $78.7 million, respectively, of above-market leases. These intangible assets are amortized over the term of each related lease. |
(2) | At September 30, 2017 and December 31, 2016, Accumulated depreciation and amortization included $630.0 million and $632.8 million, respectively, of accumulated amortization related to Lease intangibles. |
Year ending December 31, | Above- and below-market lease accretion (income), net | In-place lease amortization expense | ||||||
2017 (remaining three months) | $ | (6,590 | ) | $ | 9,642 | |||
2018 | (24,797 | ) | 33,291 | |||||
2019 | (20,882 | ) | 26,284 | |||||
2020 | (17,036 | ) | 19,611 | |||||
2021 | (14,066 | ) | 14,151 |
Three Months Ended September 30, 2017 | |||||||||
Property Name | Location | GLA | Impairment Charge | ||||||
Lexington Road Plaza(1) | Versailles, KY | 197,668 | $ | 6,393 | |||||
Shops at Seneca Mall(1) | Liverpool, NY | 231,024 | 1,507 | ||||||
Remount Village Shopping Center(1) | North Charleston, SC | 60,238 | 599 | ||||||
Fashion Square(1) | Orange Park, FL | 36,029 | 2,125 | ||||||
Renaissance Center East(1)(2) | Las Vegas, NV | 144,216 | 52 | ||||||
The Shoppes at North Ridgeville(1)(2) | North Ridgeville, OH | 59,852 | 389 | ||||||
729,027 | $ | 11,065 |
(1) | The Company recognized impairment charges based upon a change in the estimated hold period of these properties in connection with the Company's capital recycling program. |
(2) | The Company disposed of this property during the three months ended September 30, 2017. |
Nine Months Ended September 30, 2017 | |||||||||
Property Name | Location | GLA | Impairment Charge | ||||||
The Plaza at Salmon Run(1) | Watertown, NY | 68,761 | $ | 3,486 | |||||
Smith's(1) | Socorro, NM | 48,000 | 2,200 | ||||||
The Manchester Collection(1) | Manchester, CT | 342,247 | 9,026 | ||||||
Renaissance Center East(1)(2) | Las Vegas, NV | 144,216 | 1,658 | ||||||
Lexington Road Plaza(1) | Versailles, KY | 197,668 | 6,393 | ||||||
Shops at Seneca Mall(1) | Liverpool, NY | 231,024 | 1,507 | ||||||
Remount Village Shopping Center(1) | North Charleston, SC | 60,238 | 599 | ||||||
Fashion Square(1) | Orange Park, FL | 36,029 | 2,125 | ||||||
The Shoppes at North Ridgeville(1)(2) | North Ridgeville, OH | 59,852 | 389 | ||||||
1,188,035 | $ | 27,383 |
(1) | The Company recognized impairment charges based upon a change in the estimated hold period of these properties in connection with the Company's capital recycling program. |
(2) | The Company disposed of this property during the nine months ended September 30, 2017. |
Three and Nine Months Ended September 30, 2016 | |||||||||
Property Name | Location | GLA | Impairment Charge | ||||||
Inwood Forest(1) | Houston, TX | 77,553 | $ | 52 | |||||
Plymouth Plaza(2) | Plymouth Meeting, PA | 30,013 | 1,990 | ||||||
Other | - | N/A | (71 | ) | |||||
107,566 | $ | 1,971 |
(1) | The Company disposed of this property during the three and nine months ended September 30, 2016. |
(2) | The Company recognized impairment charges based upon a change in the estimated hold period of these properties in connection with the Company's capital recycling program. |
Number of Instruments | Notional Amount | |||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||
Interest Rate Swaps | 9 | 9 | $ | 1,400,000 | $ | 1,400,000 |
Fair Value of Derivative Instruments | ||||||||
Interest rate swaps classified as: | September 30, 2017 | December 31, 2016 | ||||||
Gross derivative assets | $ | 20,171 | $ | 21,605 | ||||
Gross derivative liabilities | — | — | ||||||
Net derivative assets | $ | 20,171 | $ | 21,605 |
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Change in unrealized gain (loss) on interest rate swaps | $ | 132 | $ | 79 | $ | (532 | ) | $ | (1,704 | ) | ||||||
Amortization of interest rate swaps to interest expense | (1,094 | ) | 1,242 | (902 | ) | 4,117 | ||||||||||
Change in unrealized gain (loss) on interest rate swaps, net | $ | (962 | ) | $ | 1,321 | $ | (1,434 | ) | $ | 2,413 |
Carrying Value as of | ||||||||||||
September 30, 2017 | December 31, 2016 | Stated Interest Rates (7) | Scheduled Maturity Date | |||||||||
Secured loans | ||||||||||||
Secured loans(1)(2) | $ | 915,936 | $ | 1,312,292 | 4.40% - 7.89% | 2017 – 2024 | ||||||
Net unamortized premium | 16,803 | 25,189 | ||||||||||
Net unamortized debt issuance cost | (150 | ) | (387 | ) | ||||||||
Total secured loans, net | $ | 932,589 | $ | 1,337,094 | ||||||||
Notes payable | ||||||||||||
Unsecured notes(3) | $ | 3,218,453 | $ | 2,318,453 | 3.25% - 7.97% | 2022 - 2029 | ||||||
Net unamortized discount | (13,965 | ) | (9,097 | ) | ||||||||
Net unamortized debt issuance cost | (23,306 | ) | (17,402 | ) | ||||||||
Total notes payable, net | $ | 3,181,182 | $ | 2,291,954 | ||||||||
Unsecured Credit Facility and Term Loan | ||||||||||||
Unsecured Credit Facility(4) | $ | 710,000 | $ | 1,622,000 | 2.60% | 2018 – 2021 | ||||||
Unsecured $600 Million Term Loan(5) | 600,000 | 600,000 | 2.65% | 2019 | ||||||||
Unsecured $300 Million Term Loan(6) | 300,000 | — | 3.14% | 2024 | ||||||||
Net unamortized debt issuance cost | (10,083 | ) | (12,159 | ) | ||||||||
Total Unsecured Credit Facility and Term Loan | $ | 1,599,917 | $ | 2,209,841 | ||||||||
Total debt obligations, net | $ | 5,713,688 | $ | 5,838,889 |
(1) | The Company’s secured loans are collateralized by certain properties and the equity interests of certain subsidiaries. These properties had a carrying value as of September 30, 2017 of approximately $1.8 billion. |
(2) | The weighted average interest rate on the Company’s fixed rate secured loans was 6.16% as of September 30, 2017. |
(3) | The weighted average interest rate on the Company’s unsecured notes was 3.81% as of September 30, 2017. |
(4) | Effective November 1, 2016, the Company has in place one interest rate swap agreement that converts the variable interest rate on $210.0 million of a term loan under the Company's $2.75 billion senior unsecured credit facility as amended July 25, 2016, (the "Unsecured Credit Facility") to a fixed interest rate of 0.82% (plus a spread of 135 bps) through July 31, 2018, and three interest rate swap agreements that convert the variable interest rate on a $500.0 million term loan under the Unsecured Credit Facility to a fixed interest rate of 1.11% (plus a spread of 135 bps) through July 30, 2021. |
(5) | Effective November 1, 2016, the Company has in place two interest rate swap agreements that convert the variable interest rate on $200.0 million of the Company's $600 million term loan as amended July 25, 2016, (the "$600 million Term Loan") to a fixed, combined interest rate of 0.82% (plus a spread of 140 bps) through July 31, 2018, and three interest rate swap agreements that convert the variable interest rate on $400.0 million of the $600 million Term Loan to a fixed interest rate of 0.88% (plus a spread of 140 bps) through March 18, 2019. |
(6) | Effective July 28, 2017, the Company has in place one interest rate swap agreement that converts the variable interest rate on $90.0 million of the $300 Million Term Loan (defined below) to a fixed interest rate of 0.82% (plus a spread of 190 bps) through July 31, 2018. |
(7) | The stated interest rates are as of September 30, 2017 and do not include the impact of any interest rate swap agreements. |
Year ending December 31, | ||||
2017 (remaining three months) | $ | 13,165 | ||
2018 | 227,892 | |||
2019 | 618,437 | |||
2020 | 673,217 | |||
2021 | 686,225 | |||
Thereafter | 3,525,453 | |||
Total debt maturities | 5,744,389 | |||
Net unamortized premiums and discounts | 2,838 | |||
Net unamortized debt issuance costs | (33,539 | ) | ||
Total debt obligations, net | $ | 5,713,688 |
September 30, 2017 | December 31, 2016 | |||||||||||||||
Carrying Amounts | Fair Value | Carrying Amounts | Fair Value | |||||||||||||
Secured loans | $ | 932,589 | $ | 989,296 | $ | 1,337,094 | $ | 1,410,698 | ||||||||
Notes payable | 3,181,182 | 3,231,275 | 2,291,954 | 2,302,048 | ||||||||||||
Unsecured Credit Facility and Term Loans | 1,599,917 | 1,611,802 | 2,209,841 | 2,223,807 | ||||||||||||
Total debt obligations, net | $ | 5,713,688 | $ | 5,832,373 | $ | 5,838,889 | $ | 5,936,553 |
Fair Value Measurements as of September 30, 2017 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Marketable securities(1) | $ | 28,840 | $ | 986 | $ | 27,854 | $ | — | |||||||
Interest rate derivatives | $ | 20,171 | $ | — | $ | 20,171 | $ | — | |||||||
Fair Value Measurements as of December 31, 2016 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Marketable securities(1) | $ | 25,573 | $ | 5,679 | $ | 19,894 | $ | — | |||||||
Interest rate derivatives | $ | 21,605 | $ | — | $ | 21,605 | $ | — |
(1) | As of September 30, 2017 and December 31, 2016 marketable securities included $0.1 million of net unrealized losses. |
Fair Value Measurements as of September 30, 2017 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Properties(1)(2) | $ | 69,652 | $ | — | $ | — | $ | 69,652 | |||||||
Fair Value Measurements as of December 31, 2016 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Properties(3) | $ | 285 | $ | — | $ | — | $ | 285 |
(1) | During the nine months ended September 30, 2017, the Company recognized $15.3 million of impairment based upon offers from third party buyers and $12.1 million of impairment based upon a discounted cash flow analysis. The discounted cash flow analysis included all estimated cash inflows and outflows over a specified holding period. These cash flows were comprised of unobservable inputs which include forecasted revenues and expenses based upon market conditions and future expectations. The capitalization rates (ranging from 7.0% to 8.5%) and discount rates (ranging from 7.9% to 9.5%) which were utilized in the analysis were based upon unobservable rates that the Company believes to be within a reasonable range of current market rates for each respective investment. |
(2) | The carrying value of properties remeasured to fair value during the nine months ended September 30, 2017 include: (i) $7.8 million related to The Plaza at Salmon Run, (ii) $1.9 million related to Smith's, (iii) $46.9 million related to The Manchester Collection, (iv) $4.7 million related to Lexington Road Plaza, (v) $3.8 million related to Shops at Seneca Mall, (vi) $2.2 million related to Remount Village Shopping Center, and (vii) $2.4 million related to Fashion Square. |
(3) | The carrying value of properties remeasured to fair value during the year ended December 31, 2016 include: (i) $0.1 million related to a parcel at Country Hills Shopping Center and (ii) $0.2 million related to Milford Center. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Computation of Basic Earnings Per Share: | |||||||||||||||
Net income | $ | 83,380 | $ | 57,805 | $ | 230,473 | $ | 184,824 | |||||||
Income attributable to non-controlling interests | — | (313 | ) | (76 | ) | (2,399 | ) | ||||||||
Non-forfeitable dividends on unvested restricted shares | (10 | ) | (9 | ) | (31 | ) | (26 | ) | |||||||
Preferred stock dividends | — | — | (39 | ) | — | ||||||||||
Net income attributable to the Company’s common stockholders for basic earnings per share | $ | 83,370 | $ | 57,483 | $ | 230,327 | $ | 182,399 | |||||||
Weighted average shares outstanding - basic | 304,936 | 303,013 | 304,810 | 300,697 | |||||||||||
Basic Earnings Per Share Attributable to the Company’s Common Stockholders: | |||||||||||||||
Net income | $ | 0.27 | $ | 0.19 | $ | 0.76 | $ | 0.61 | |||||||
Computation of Diluted Earnings Per Share: | |||||||||||||||
Net income attributable to the Company’s common stockholders for basic earnings per share | $ | 83,370 | $ | 57,483 | $ | 230,327 | $ | 182,399 | |||||||
Allocation of net income to dilutive convertible non-controlling interests | — | — | 76 | — | |||||||||||
Net income attributable to the Company’s common stockholders for diluted earnings per share | $ | 83,370 | $ | 57,483 | $ | 230,403 | $ | 182,399 | |||||||
Weighted average shares outstanding - basic | 304,936 | 303,013 | 304,810 | 300,697 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Conversion of OP Units | — | — | 104 | — | |||||||||||
Equity awards | 240 | 508 | 261 | 449 | |||||||||||
Weighted average shares outstanding - diluted | 305,176 | 303,521 | 305,175 | 301,146 | |||||||||||
Diluted Earnings Per Share Attributable to the Company’s Common Stockholders: | |||||||||||||||
Net income | $ | 0.27 | $ | 0.19 | $ | 0.75 | $ | 0.61 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Computation of Basic Earnings Per Unit: | |||||||||||||||
Net income attributable to Brixmor Operating Partnership LP | $ | 83,380 | $ | 57,805 | $ | 230,473 | $ | 184,824 | |||||||
Non-forfeitable dividends on unvested restricted units | (10 | ) | (9 | ) | (31 | ) | (26 | ) | |||||||
Net income attributable to the Operating Partnership’s common units for basic earnings per unit | $ | 83,370 | $ | 57,796 | $ | 230,442 | $ | 184,798 | |||||||
Weighted average common units outstanding - basic | 304,936 | 304,659 | 304,914 | 304,577 | |||||||||||
Basic Earnings Per Unit Attributable to the Operating Partnership’s Common Units: | |||||||||||||||
Net Income | $ | 0.27 | $ | 0.19 | $ | 0.76 | $ | 0.61 | |||||||
Computation of Diluted Earnings Per Unit: | |||||||||||||||
Net income attributable to the Operating Partnership’s common units for diluted earnings per unit | $ | 83,370 | $ | 57,796 | $ | 230,442 | $ | 184,798 | |||||||
Weighted average common units outstanding - basic | 304,936 | 304,659 | 304,914 | 304,577 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Equity awards | 240 | 508 | 261 | 449 | |||||||||||
Weighted average common units outstanding - diluted | 305,176 | 305,167 | 305,175 | 305,026 | |||||||||||
Diluted Earnings Per Unit Attributable to the Operating Partnership’s Common Units: | |||||||||||||||
Net Income | $ | 0.27 | $ | 0.19 | $ | 0.76 | $ | 0.61 |
Year ending December 31, | ||||
2017 (remaining three months) | $ | 1,828 | ||
2018 | 7,127 | |||
2019 | 7,046 | |||
2020 | 7,060 | |||
2021 | 7,251 | |||
Thereafter | 79,084 | |||
Total minimum annual rental commitments | $ | 109,396 |
• | Expansive Retailer Relationships - We believe that given the scale of our asset base and our nationwide footprint, we have a competitive advantage in supporting the growth objectives of the nation’s largest retailers. We believe that we are the largest landlord by GLA to Kroger and TJX Companies, as well as a key landlord to major grocers and most major retail category leaders. We believe that our strong relationships with leading retailers afford us insight into their strategies and priority access to their expansion plans. |
• | Fully-Integrated Operating Platform - We manage a fully-integrated operating platform, leveraging our national scope and demonstrating our commitment to operating with a strong regional and local presence. We provide our tenants with dedicated service through both our national accounts leasing team based in New York and our network of four regional offices in Atlanta, Chicago, San Diego and Philadelphia, as well as 11 leasing and property management satellite offices throughout the country. We believe that this strategy enables us to obtain critical market intelligence and to benefit from the regional and local expertise of our workforce. |
• | Experienced Management - Senior members of our management team are seasoned real estate operators with public company leadership experience. Our management team has deep industry knowledge and extensive, well-established relationships with retailers, brokers and vendors through many years of transactional experience, as well as significant expertise in executing value-enhancing reinvestment opportunities. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Occupancy | ||||||||||||||||
Billed | 89.6 | % | 90.6 | % | 89.6 | % | 90.6 | % | ||||||||
Leased | 91.6 | % | 92.6 | % | 91.6 | % | 92.6 | % | ||||||||
Executed leases | ||||||||||||||||
New leases | ||||||||||||||||
Leases executed | 158 | 191 | 472 | 569 | ||||||||||||
GLA executed | 0.7 million | 0.8 million | 2.3 million | 2.6 million | ||||||||||||
Renewal leases | ||||||||||||||||
Leases executed | 235 | 229 | 721 | 720 | ||||||||||||
GLA executed | 1.4 million | 1.2 million | 3.5 million | 3.3 million | ||||||||||||
Option leases | ||||||||||||||||
Leases executed | 93 | 93 | 240 | 275 | ||||||||||||
GLA executed | 1.3 million | 1.5 million | 3.2 million | 4.8 million | ||||||||||||
Total | ||||||||||||||||
Leases executed | 486 | 513 | 1,433 | 1,564 | ||||||||||||
GLA executed | 3.4 million | 3.5 million | 9.0 million | 10.7 million | ||||||||||||
New and renewal lease statistics | ||||||||||||||||
New leases | ||||||||||||||||
Average ABR per square foot | $ | 16.89 | $ | 15.53 | $ | 15.92 | $ | 15.40 | ||||||||
Average ABR per square foot increase (1) | 20.7 | % | 26.2 | % | 30.6 | % | 28.4 | % | ||||||||
Average tenant improvements per square foot | $ | 23.39 | $ | 20.83 | $ | 22.87 | $ | 20.59 | ||||||||
Average leasing commissions per square foot | $ | 4.19 | $ | 3.37 | $ | 3.90 | $ | 3.28 | ||||||||
New and renewal leases | ||||||||||||||||
Average ABR per square foot | $ | 14.99 | $ | 13.40 | $ | 15.57 | $ | 14.93 | ||||||||
Average ABR per square foot increase (1) | 12.7 | % | 14.7 | % | 15.2 | % | 15.5 | % | ||||||||
Average tenant improvements per square foot | $ | 11.76 | $ | 8.72 | $ | 11.33 | $ | 9.26 | ||||||||
Average leasing commissions per square foot | $ | 1.52 | $ | 1.38 | $ | 1.62 | $ | 1.48 |
(1) | Based on comparable leases only. |
• | During the nine months ended September 30, 2017, we acquired one shopping center, one building, two outparcel buildings and two outparcels for an aggregate purchase price, including transaction costs, of $111.8 million. |
• | During the nine months ended September 30, 2017, we disposed of 14 wholly owned shopping centers and two outparcel buildings for net proceeds of $228.7 million resulting in a gain of $54.9 million and impairment of $0.4 million. In addition, during the nine months ended September 30, 2017, we disposed of our unconsolidated joint venture interest for net proceeds of $12.4 million resulting in a gain of $4.6 million. |
Three Months Ended September 30, | |||||||||||
2017 | 2016 | $ Change | |||||||||
Revenues | |||||||||||
Rental income | $ | 246,578 | $ | 247,859 | $ | (1,281 | ) | ||||
Expense reimbursements | 66,489 | 69,469 | (2,980 | ) | |||||||
Other revenues | 1,429 | 1,249 | 180 | ||||||||
Total revenues | $ | 314,496 | $ | 318,577 | $ | (4,081 | ) |
Three Months Ended September 30, | |||||||||||
2017 | 2016 | $ Change | |||||||||
Operating expenses | |||||||||||
Operating costs | $ | 30,505 | $ | 31,041 | $ | (536 | ) | ||||
Real estate taxes | 45,076 | 47,812 | (2,736 | ) | |||||||
Depreciation and amortization | 94,239 | 98,337 | (4,098 | ) | |||||||
Provision for doubtful accounts | 1,216 | 2,218 | (1,002 | ) | |||||||
Impairment of real estate assets | 11,065 | 1,971 | 9,094 | ||||||||
General and administrative | 22,838 | 21,787 | 1,051 | ||||||||
Total operating expenses | $ | 204,939 | $ | 203,166 | $ | 1,773 |
Three Months Ended September 30, | |||||||||||
2017 | 2016 | $ Change | |||||||||
Other income (expense) | |||||||||||
Dividends and interest | $ | 76 | $ | 89 | $ | (13 | ) | ||||
Interest expense | (57,410 | ) | (57,855 | ) | 445 | ||||||
Gain on sale of real estate assets | 25,942 | 2,450 | 23,492 | ||||||||
Gain (loss) on extinguishment of debt, net | 1,828 | (1,042 | ) | 2,870 | |||||||
Other | (1,200 | ) | (1,370 | ) | 170 | ||||||
Total other income (expense) | $ | (30,764 | ) | $ | (57,728 | ) | $ | 26,964 |
Three Months Ended September 30, | |||||||||||
2017 | 2016 | $ Change | |||||||||
Equity in income of unconsolidated joint venture | $ | 31 | $ | 122 | $ | (91 | ) | ||||
Gain on disposition of unconsolidated joint venture interest | $ | 4,556 | $ | — | $ | 4,556 |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | $ Change | |||||||||
Revenues | |||||||||||
Rental income | $ | 749,976 | $ | 744,580 | $ | 5,396 | |||||
Expense reimbursements | 206,718 | 200,944 | 5,774 | ||||||||
Other revenues | 6,426 | 6,214 | 212 | ||||||||
Total revenues | $ | 963,120 | $ | 951,738 | $ | 11,382 |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | $ Change | |||||||||
Operating expenses | |||||||||||
Operating costs | $ | 100,955 | $ | 97,507 | $ | 3,448 | |||||
Real estate taxes | 135,607 | 130,886 | 4,721 | ||||||||
Depreciation and amortization | 285,040 | 294,634 | (9,594 | ) | |||||||
Provision for doubtful accounts | 4,023 | 6,579 | (2,556 | ) | |||||||
Impairment of real estate assets | 27,383 | 1,971 | 25,412 | ||||||||
General and administrative | 67,043 | 69,709 | (2,666 | ) | |||||||
Total operating expenses | $ | 620,051 | $ | 601,286 | $ | 18,765 |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | $ Change | |||||||||
Other income (expense) | |||||||||||
Dividends and interest | $ | 234 | $ | 481 | $ | (247 | ) | ||||
Interest expense | (170,584 | ) | (171,482 | ) | 898 | ||||||
Gain on sale of real estate assets | 54,920 | 10,232 | 44,688 | ||||||||
Gain (loss) on extinguishment of debt, net | 488 | (949 | ) | 1,437 | |||||||
Other | (2,591 | ) | (4,258 | ) | 1,667 | ||||||
Total other income (expense) | $ | (117,533 | ) | $ | (165,976 | ) | $ | 48,443 |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | $ Change | |||||||||
Equity in income of unconsolidated joint venture | $ | 381 | $ | 348 | $ | 33 | |||||
Gain on disposition of unconsolidated joint venture interest | $ | 4,556 | $ | — | $ | 4,556 |
• | cash, cash equivalent and restricted cash balances; |
• | operating cash flow; |
• | dispositions; |
• | available borrowings under our existing Unsecured Credit Facility; |
• | issuance of long-term debt; and |
• | issuance of equity securities. |
• | recurring maintenance capital expenditures; |
• | leasing related capital expenditures; |
• | anchor space repositioning, redevelopment and development expenditures; |
• | debt maturities and repayment requirements; |
• | dividend/distribution payments; and |
• | acquisitions. |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows provided by operating activities | $ | 421,113 | $ | 421,191 | ||||
Cash flows used in investing activities | $ | (14,135 | ) | $ | (115,083 | ) | ||
Cash flows used in financing activities | $ | (367,829 | ) | $ | (340,293 | ) |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows provided by operating activities | $ | 421,113 | $ | 421,191 | ||||
Cash flows used in investing activities | $ | (14,132 | ) | $ | (115,074 | ) | ||
Cash flows used in financing activities | $ | (367,828 | ) | $ | (340,316 | ) |
As of September 30, 2017 | ||||||||||
Total Projects | Anticipated Cost | Cost Incurred | ||||||||
Anchor space repositioning | 21 | $ | 44,200 | $ | 17,035 | |||||
Redevelopment | 14 | 187,700 | 79,663 | |||||||
Outparcel development | 7 | 13,724 | 3,263 | |||||||
New development | 1 | 37,800 | 19,241 | |||||||
Total | 43 | $ | 283,424 | $ | 119,202 |
Contractual Obligations | Payment due by period | |||||||||||||||||||||||||||
(in thousands) | 2017 (Remaining three months) | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | |||||||||||||||||||||
Debt (1) | $ | 13,165 | $ | 227,892 | $ | 618,437 | $ | 673,217 | $ | 686,225 | $ | 3,525,453 | $ | 5,744,389 | ||||||||||||||
Interest payments (2) | 46,275 | 215,888 | 201,428 | 186,958 | 139,887 | 421,233 | 1,211,669 | |||||||||||||||||||||
Operating leases | 1,828 | 7,127 | 7,046 | 7,060 | 7,251 | 79,084 | 109,396 | |||||||||||||||||||||
Total | $ | 61,268 | $ | 450,907 | $ | 826,911 | $ | 867,235 | $ | 833,363 | $ | 4,025,770 | $ | 7,065,454 | ||||||||||||||
(1) | Debt includes scheduled principal amortization and scheduled maturities for secured loans, unsecured notes payable and unsecured credit facilities. |
(2) | As of September 30, 2017, we incur variable rate interest on a (i) $210.0 million term loan under our Unsecured Credit Facility; (ii) a $500.0 million term loan under our Unsecured Credit Facility; (iii) a $600.0 million term loan under our $600 Million Term Loan, and (iv) a $300 million term loan under our $300 Million Term Loan. Interest payments for these variable rate loans are presented using rates as of September 30, 2017. For a further discussion of these and other factors that could impact interest payments please see Item 7A. “Quantitative and Qualitative Disclosures.” in our annual report on Form 10-K for the fiscal year ended December 31, 2016. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 83,380 | $ | 57,805 | $ | 230,473 | $ | 184,824 | |||||||
Gain on disposition of operating properties | (25,942 | ) | (2,450 | ) | (54,920 | ) | (10,232 | ) | |||||||
Gain on disposition of unconsolidated joint venture interest | (4,556 | ) | — | (4,556 | ) | — | |||||||||
Depreciation and amortization-real estate related-continuing operations | 93,299 | 97,570 | 282,240 | 292,295 | |||||||||||
Depreciation and amortization-real estate related-unconsolidated joint venture | — | 23 | 56 | 68 | |||||||||||
Impairment of operating properties | 11,065 | 1,971 | 27,383 | 1,971 | |||||||||||
NAREIT FFO | 157,246 | 154,919 | 480,676 | 468,926 | |||||||||||
NAREIT FFO per share/OP Unit - diluted | $ | 0.52 | $ | 0.51 | $ | 1.58 | $ | 1.54 | |||||||
Weighted average shares/OP Units outstanding - basic and diluted (1) | 305,176 | 305,167 | 305,175 | 305,026 |
(1) | Basic and diluted shares/OP Units outstanding reflects an assumed conversion of vested OP Units to common stock of the Company and the vesting of certain equity awards. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||||
Number of properties | 495 | 495 | — | 495 | 495 | — | ||||||||||||||||||||
Percent billed | 89.6 | % | 90.5 | % | (0.9 | %) | 89.6 | % | 90.5 | % | (0.9 | %) | ||||||||||||||
Percent leased | 91.6 | % | 92.5 | % | (0.9 | %) | 91.6 | % | 92.5 | % | (0.9 | %) | ||||||||||||||
Revenues | ||||||||||||||||||||||||||
Base rent | $ | 225,812 | $ | 222,902 | $ | 2,910 | $ | 678,707 | $ | 664,849 | $ | 13,858 | ||||||||||||||
Ancillary and other | 4,160 | 4,386 | (226 | ) | 11,560 | 11,978 | (418 | ) | ||||||||||||||||||
Expense reimbursements | 64,916 | 67,497 | (2,581 | ) | 201,211 | 195,040 | 6,171 | |||||||||||||||||||
Percentage rents | 1,245 | 1,032 | 213 | 6,009 | 5,194 | 815 | ||||||||||||||||||||
296,133 | 295,817 | 316 | 897,487 | 877,061 | 20,426 | |||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Operating costs | (30,720 | ) | (30,239 | ) | (481 | ) | (98,903 | ) | (94,018 | ) | (4,885 | ) | ||||||||||||||
Real estate taxes | (43,941 | ) | (46,485 | ) | 2,544 | (132,039 | ) | (127,404 | ) | (4,635 | ) | |||||||||||||||
Provision for doubtful accounts | (1,169 | ) | (2,052 | ) | 883 | (3,904 | ) | (6,303 | ) | 2,399 | ||||||||||||||||
(75,830 | ) | (78,776 | ) | 2,946 | (234,846 | ) | (227,725 | ) | (7,121 | ) | ||||||||||||||||
Same property NOI | $ | 220,303 | $ | 217,041 | $ | 3,262 | $ | 662,641 | $ | 649,336 | $ | 13,305 | ||||||||||||||
NOI margin | 74.4 | % | 73.4 | % | 73.8 | % | 74.0 | % | ||||||||||||||||||
Expense recovery ratio | 86.9 | % | 88.0 | % | 87.1 | % | 88.1 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income attributable to common stockholders | $ | 83,380 | $ | 57,492 | $ | 230,358 | $ | 182,425 | |||||||
Adjustments: | |||||||||||||||
Non-same property NOI | (5,644 | ) | (6,755 | ) | (18,282 | ) | (21,436 | ) | |||||||
Lease termination fees | (2,235 | ) | (1,174 | ) | (5,476 | ) | (7,537 | ) | |||||||
Straight-line rental income, net | (2,401 | ) | (3,314 | ) | (14,486 | ) | (9,833 | ) | |||||||
Amortization of above- and below-market rent and tenant inducements, net | (6,964 | ) | (9,083 | ) | (21,434 | ) | (28,744 | ) | |||||||
Fee income | (183 | ) | (217 | ) | (320 | ) | (855 | ) | |||||||
Straight-line ground rent expense | 31 | 78 | 104 | 975 | |||||||||||
Depreciation and amortization | 94,239 | 98,337 | 285,040 | 294,634 | |||||||||||
Impairment of real estate assets | 11,065 | 1,971 | 27,383 | 1,971 | |||||||||||
General and administrative | 22,838 | 21,787 | 67,043 | 69,709 | |||||||||||
Total other expense | 30,764 | 57,728 | 117,533 | 165,976 | |||||||||||
Equity in income of unconsolidated joint venture | (31 | ) | (122 | ) | (381 | ) | (348 | ) | |||||||
Gain on disposition of unconsolidated joint venture interest | (4,556 | ) | — | (4,556 | ) | — | |||||||||
Net income attributable to non-controlling interests | — | 313 | 76 | 2,399 | |||||||||||
Preferred stock dividends | — | — | 39 | — | |||||||||||
Same property NOI | $ | 220,303 | $ | 217,041 | $ | 662,641 | $ | 649,336 |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Date of Filing | Exhibit Number | Filed Herewith | ||||||
Term Loan Agreement, dated as of July 28, 2016, among Brixmor Operating Partnership LP, as borrower, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto | 8-K | 001-36160 | 7/31/2017 | 10.1 | ||||||||
Brixmor Property Group Inc. Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
101.INS | XBRL Instance Document | — | — | — | — | x | ||||||
101.SCH | XBRL Taxonomy Extension Schema Document | — | — | — | — | x | ||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | — | — | — | — | x | ||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | — | — | — | — | x | ||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | — | — | — | — | x | ||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | — | — | — | — | x |
BRIXMOR PROPERTY GROUP INC. | ||
Date: October 30, 2017 | By: | /s/James M. Taylor |
James M. Taylor | ||
Chief Executive Officer and President | ||
(Principal Executive Officer) | ||
Date: October 30, 2017 | By: | /s/Angela Aman |
Angela Aman | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: October 30, 2017 | By: | /s/Steven Gallagher |
Steven Gallagher | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) |
BRIXMOR OPERATING PARTNERSHIP LP | ||
Date: October 30, 2017 | By: | /s/James M. Taylor |
James M. Taylor | ||
Chief Executive Officer and President | ||
(Principal Executive Officer) | ||
Date: October 30, 2017 | By: | /s/Angela Aman |
Angela Aman | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: October 30, 2017 | By: | /s/Steven Gallagher |
Steven Gallagher | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2017 of Brixmor Property Group 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 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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 30, 2017 | |
/s/James M. Taylor | |
Chief Executive Officer and President | |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2017 of Brixmor Property Group 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 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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 30, 2017 | |
/s/Angela Aman | |
Chief Financial Officer | |
(Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2017 of Brixmor Operating Partnership LP; |
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 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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 30, 2017 | |
/s/James M. Taylor | |
Chief Executive Officer and President | |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2017 of Brixmor Operating Partnership LP; |
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 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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 30, 2017 | |
/s/Angela Aman | |
Chief Financial Officer | |
(Principal Financial Officer) |
• | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable of the Securities Exchange Act of 1934, as amended; and |
• | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
Date: October 30, 2017 | |
/s/James M. Taylor | |
Chief Executive Officer and President | |
(Principal Executive Officer) | |
/s/Angela Aman | |
Chief Financial Officer | |
(Principal Financial Officer) |
• | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable of the Securities Exchange Act of 1934, as amended; and |
• | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership for the periods presented therein. |
Date: October 30, 2017 | |
/s/James M. Taylor | |
Chief Executive Officer and President | |
(Principal Executive Officer) | |
/s/Angela Aman | |
Chief Financial Officer | |
(Principal Financial Officer) |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Oct. 01, 2017 |
|
Entity Registrant Name | Brixmor Property Group Inc. | |
Entity Central Index Key | 0001581068 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 304,937,144 | |
Brixmor Operating Partnership LP | ||
Entity Registrant Name | Brixmor Operating Partnership LP | |
Entity Central Index Key | 0001630031 | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Allowance for doubtful accounts receivable | $ 16,177 | $ 16,756 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares outstanding | 304,937,144 | 304,343,141 |
Brixmor Operating Partnership LP | ||
Allowance for doubtful accounts receivable | $ 16,177 | $ 16,756 |
Common stock, shares outstanding | 304,937,144 | 304,720,842 |
Common stock, shares issued | 304,937,144 | 304,720,842 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Revenues | ||||
Rental income | $ 246,578 | $ 247,859 | $ 749,976 | $ 744,580 |
Expense reimbursements | 66,489 | 69,469 | 206,718 | 200,944 |
Other revenues | 1,429 | 1,249 | 6,426 | 6,214 |
Total revenues | 314,496 | 318,577 | 963,120 | 951,738 |
Operating expenses | ||||
Operating costs | 30,505 | 31,041 | 100,955 | 97,507 |
Real estate taxes | 45,076 | 47,812 | 135,607 | 130,886 |
Depreciation and amortization | 94,239 | 98,337 | 285,040 | 294,634 |
Provision for doubtful accounts | 1,216 | 2,218 | 4,023 | 6,579 |
Impairment of real estate assets | 11,065 | 1,971 | 27,383 | 1,971 |
General and administrative | 22,838 | 21,787 | 67,043 | 69,709 |
Total operating expenses | 204,939 | 203,166 | 620,051 | 601,286 |
Other income (expense) | ||||
Dividends and interest | 76 | 89 | 234 | 481 |
Interest expense | (57,410) | (57,855) | (170,584) | (171,482) |
Gain on sale of real estate assets | 25,942 | 2,450 | 54,920 | 10,232 |
Gain (loss) on extinguishment of debt, net | 1,828 | (1,042) | 488 | (949) |
Other | (1,200) | (1,370) | (2,591) | (4,258) |
Total other expense | (30,764) | (57,728) | (117,533) | (165,976) |
Income before equity in income of unconsolidated joint venture | 78,793 | 57,683 | 225,536 | 184,476 |
Equity in income of unconsolidated joint venture | 31 | 122 | 381 | 348 |
Gain on disposition of unconsolidated joint venture interest | 4,556 | 0 | 4,556 | 0 |
Net income | 83,380 | 57,805 | 230,473 | 184,824 |
Net income attributable to non-controlling interests | 0 | (313) | (76) | (2,399) |
Net income attributable to Brixmor Operating Partnership LP | 83,380 | 57,492 | 230,397 | 182,425 |
Preferred stock dividends | 0 | 0 | (39) | 0 |
Net income attributable to common stockholders | $ 83,380 | $ 57,492 | $ 230,358 | $ 182,425 |
Net income attributable to common stockholders: | ||||
Basic (usd per share) | $ 0.27 | $ 0.19 | $ 0.76 | $ 0.61 |
Diluted (usd per share) | $ 0.27 | $ 0.19 | $ 0.75 | $ 0.61 |
Weighted average shares: | ||||
Basic (in shares) | 304,936 | 303,013 | 304,810 | 300,697 |
Diluted (usd per share) | 305,176 | 303,521 | 305,175 | 301,146 |
Brixmor Operating Partnership LP | ||||
Revenues | ||||
Rental income | $ 246,578 | $ 247,859 | $ 749,976 | $ 744,580 |
Expense reimbursements | 66,489 | 69,469 | 206,718 | 200,944 |
Other revenues | 1,429 | 1,249 | 6,426 | 6,214 |
Total revenues | 314,496 | 318,577 | 963,120 | 951,738 |
Operating expenses | ||||
Operating costs | 30,505 | 31,041 | 100,955 | 97,507 |
Real estate taxes | 45,076 | 47,812 | 135,607 | 130,886 |
Depreciation and amortization | 94,239 | 98,337 | 285,040 | 294,634 |
Provision for doubtful accounts | 1,216 | 2,218 | 4,023 | 6,579 |
Impairment of real estate assets | 11,065 | 1,971 | 27,383 | 1,971 |
General and administrative | 22,838 | 21,787 | 67,043 | 69,709 |
Total operating expenses | 204,939 | 203,166 | 620,051 | 601,286 |
Other income (expense) | ||||
Dividends and interest | 76 | 89 | 234 | 481 |
Interest expense | (57,410) | (57,855) | (170,584) | (171,482) |
Gain on sale of real estate assets | 25,942 | 2,450 | 54,920 | 10,232 |
Gain (loss) on extinguishment of debt, net | 1,828 | (1,042) | 488 | (949) |
Other | (1,200) | (1,370) | (2,591) | (4,258) |
Total other expense | (30,764) | (57,728) | (117,533) | (165,976) |
Income before equity in income of unconsolidated joint venture | 78,793 | 57,683 | 225,536 | 184,476 |
Equity in income of unconsolidated joint venture | 31 | 122 | 381 | 348 |
Gain on disposition of unconsolidated joint venture interest | 4,556 | 0 | 4,556 | 0 |
Net income | $ 83,380 | $ 57,805 | $ 230,473 | $ 184,824 |
Net income attributable to common stockholders: | ||||
Basic (usd per share) | $ 0.27 | $ 0.19 | $ 0.76 | $ 0.61 |
Diluted (usd per share) | $ 0.27 | $ 0.19 | $ 0.76 | $ 0.61 |
Weighted average shares: | ||||
Basic (in shares) | 304,936 | 304,659 | 304,914 | 304,577 |
Diluted (usd per share) | 305,176 | 305,167 | 305,175 | 305,026 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands |
Total |
Brixmor Operating Partnership LP |
Common Stock |
Common Stock
Brixmor Operating Partnership LP
|
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Brixmor Operating Partnership LP
|
Distributions in Excess of Net Income |
Non-controlling Interests |
---|---|---|---|---|---|---|---|---|---|
Net income | $ 184,824 | $ 184,824 | |||||||
Beginning balance, shares at Dec. 31, 2015 | 299,138 | ||||||||
Beginning balance, value at Dec. 31, 2015 | 2,920,302 | 2,920,070 | $ 2,991 | $ 2,922,565 | $ 3,270,246 | $ (2,509) | $ (2,495) | $ (400,945) | $ 50,519 |
Increase (Decrease) in Equity [Roll Forward] | |||||||||
Common stock dividends | (221,828) | (221,828) | |||||||
Distributions to non-controlling interests | (2,304) | (2,304) | |||||||
Distributions to partners | (224,148) | (224,148) | |||||||
Equity based compensation expense (benefit) | 8,041 | 8,041 | 8,041 | 7,954 | 87 | ||||
Issuance of common stock and OP Units, shares | 207 | ||||||||
Issuance of common stock and OP Units | 211 | 211 | $ 2 | 211 | (1,395) | 1,604 | |||
Other comprehensive income (loss) | 2,494 | 2,489 | 2,494 | 2,489 | |||||
Conversion of Operating Partnership units into common stock, share | 4,976 | ||||||||
Conversion of Operating Partnership units into common stock | 0 | $ 50 | 47,876 | (47,926) | |||||
Shared-based awards retained for taxes | (3,206) | (3,206) | (3,206) | (3,206) | |||||
Net (loss) income | 184,824 | 184,824 | 184,824 | 182,425 | 2,399 | ||||
Ending balance, shares at Sep. 30, 2016 | 304,321 | ||||||||
Ending balance, value at Sep. 30, 2016 | 2,888,534 | 2,888,281 | $ 3,043 | 2,888,287 | 3,321,475 | (15) | (6) | (440,348) | 4,379 |
Net income | 230,473 | 230,473 | |||||||
Beginning balance, shares at Dec. 31, 2016 | 304,343 | ||||||||
Beginning balance, value at Dec. 31, 2016 | 2,927,160 | 2,926,909 | $ 3,043 | 2,905,378 | 3,324,874 | 21,519 | 21,531 | (426,552) | 4,276 |
Increase (Decrease) in Equity [Roll Forward] | |||||||||
Common stock dividends | (238,662) | (238,662) | |||||||
Distributions to partners | (239,949) | (239,949) | |||||||
Equity based compensation expense (benefit) | 7,838 | 7,838 | 7,838 | 7,835 | 3 | ||||
Preferred stock redemptions/dividends | (1,289) | (641) | (648) | ||||||
Issuance of common stock and OP Units, shares | 191 | ||||||||
Issuance of common stock and OP Units | 0 | $ 6 | (6) | ||||||
Other comprehensive income (loss) | (1,465) | (1,464) | (1,465) | (1,464) | |||||
Conversion of Operating Partnership units into common stock, share | 403 | ||||||||
Conversion of Operating Partnership units into common stock | 0 | 3,701 | (3,701) | ||||||
Shared-based awards retained for taxes | (2,714) | (2,714) | (2,714) | (2,714) | |||||
Net (loss) income | 230,473 | 230,473 | 230,473 | 230,397 | 76 | ||||
Ending balance, shares at Sep. 30, 2017 | 304,937 | ||||||||
Ending balance, value at Sep. 30, 2017 | $ 2,921,341 | $ 2,921,093 | $ 3,049 | $ 2,901,026 | $ 3,333,696 | $ 20,054 | $ 20,067 | $ (435,458) | $ 0 |
CONDENSED CONSOLIDATED STATEMENTs OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends, per common share | $ 0.26 | $ 0.245 | $ 0.78 | $ 0.735 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Interest paid, capitalized | $ 2,268 | $ 918 |
Brixmor Operating Partnership LP | ||
Interest paid, capitalized | $ 2,268 | $ 918 |
Nature of Business and Financial Statement Presentation |
9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Nature of Business and Financial Statement Presentation | Nature of Business and Financial Statement Presentation Description of Business Brixmor Property Group Inc. and subsidiaries (collectively, the “Parent Company”) is an internally-managed real estate investment trust (“REIT”). Brixmor Operating Partnership LP and subsidiaries (collectively, the “Operating Partnership”) is the entity through which the Parent Company conducts substantially all of its operations and owns substantially all of its assets. The Parent Company owns 100% of the common stock of BPG Subsidiary Inc. (“BPG Sub”), which, in turn, is the sole member of Brixmor OP GP LLC (the “General Partner”), the sole general partner of the Operating Partnership. The Parent Company engages in the ownership, management, leasing, acquisition, disposition and redevelopment of retail shopping centers through the Operating Partnership, and has no other substantial assets or liabilities other than through its investment in the Operating Partnership. The Parent Company, the Operating Partnership and their controlled subsidiaries on a consolidated basis (collectively the “Company” or “Brixmor”) believes it owns and operates one of the largest open air retail portfolios by gross leasable area ("GLA") in the United States, comprised primarily of community and neighborhood shopping centers. As of September 30, 2017, the Company's portfolio was comprised of 498 wholly owned shopping centers totaling approximately 84 million square feet of gross leasable area (the “Portfolio”). In addition, the Company has one land parcel currently under development. The Company’s high-quality national Portfolio is primarily located within established trade areas in the top 50 Metropolitan Statistical Areas, and our shopping centers are primarily anchored by non-discretionary and value-oriented retailers, as well as consumer-oriented service providers. The Company does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company has a single reportable segment for disclosure purposes in accordance with U.S. generally accepted accounting principles (“GAAP”). Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the unaudited Condensed Consolidated Financial Statements for the periods presented have been included. The Company has determined that it is preferable to present underwriter fees associated with the Company’s issuance of unsecured senior notes in the line item Deferred financing costs as opposed to deducting the amount of the fees within the line item Proceeds from unsecured term loans and notes within financing activities in the accompanying unaudited Condensed Consolidated Statement of Cash Flows. In connection with this revised presentation, certain prior period balances have been adjusted to conform to the current period presentation described above. The operating results for the periods presented are not necessarily indicative of the results that may be expected for a full fiscal year. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2016 and accompanying notes included in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2017. Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Parent Company, the Operating Partnership, each of their wholly owned subsidiaries and all other entities in which they have a controlling financial interest. The portions of consolidated entities not owned by the Parent Company and the Operating Partnership are presented as non-controlling interests as of and during the periods presented. All intercompany transactions have been eliminated. Real Estate Real estate assets are recognized in the Company's unaudited Condensed Consolidated Balance Sheets at historical cost, less accumulated depreciation and amortization. Upon acquisition of real estate operating properties, management estimates the fair value of acquired tangible assets (consisting of land, buildings, and tenant improvements), identifiable intangible assets and liabilities (consisting of above and below-market leases, in-place leases and tenant relationships) and assumed debt based on an evaluation of available information. Based on these estimates, the estimated fair value is allocated to the acquired assets and assumed liabilities. Transaction costs incurred during the acquisition process are capitalized as a component of the asset’s value. The fair value of tangible assets is determined as if the acquired property is vacant. Fair value is determined using an exit price approach, which contemplates the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If subsequent information regarding the fair value of the assets acquired and liabilities assumed is received and estimates are refined, the appropriate adjustments are made to the purchase price allocation on a prospective basis. In allocating the fair value to identifiable intangible assets and liabilities of an acquired operating property, the value of above-market and below-market leases is estimated based on the present value (using a discount rate reflecting the risks associated with leases acquired) of the difference between: (i) the contractual amounts to be paid pursuant to the leases negotiated and in-place at the time of acquisition and (ii) management’s estimate of fair market lease rates for the property or an equivalent property, measured over a period equal to the remaining non-cancelable term of the lease, which includes renewal periods with fixed rental terms that are considered to be below-market. The capitalized above-market or below-market intangible is amortized as a reduction of, or increase to, rental income over the remaining non-cancelable term of each lease. In determining the value of in-place leases and tenant relationships, management evaluates the specific characteristics of each lease and the Company’s overall relationship with each tenant. Factors considered include, but are not limited to: the nature of the existing relationship with a tenant, the credit risk associated with a tenant, expectations surrounding lease renewals, estimated carrying costs of a property during a hypothetical expected lease-up period, current market conditions and costs to execute similar leases. Management also considers information obtained about a property in connection with its pre-acquisition due diligence. Estimated carrying costs include: property operating costs, insurance, real estate taxes and estimates of lost rentals at market rates. Costs to execute similar leases include leasing commissions and legal costs to the extent that such costs are not already incurred with a new lease that has been negotiated in connection with the purchase of a property. The values assigned to in-place leases and tenant relationships are amortized to Depreciation and amortization expense over the remaining term of each lease. Certain real estate assets are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:
Costs to fund major replacements and betterments, which extend the life of the asset, are capitalized and depreciated over their respective useful lives, while costs for ordinary repairs and maintenance activities are expensed as incurred. When a real estate asset is identified by management as held-for-sale, the Company discontinues depreciating the asset and estimates its sales price, net of estimated selling costs. If the estimated net sales price of an asset is less than its net carrying value, a loss is recognized to reflect the estimated fair value. Properties classified as real estate held-for-sale generally represent properties that are under contract for sale and are expected to close within 12 months. On a periodic basis, management assesses whether there are indicators, including property operating performance, changes in anticipated holding period and general market conditions, that the value of the Company’s real estate assets (including any related intangible assets or liabilities) may be impaired. If an indicator is identified, a real estate asset is considered impaired only if management’s estimate of current and projected operating cash flows (undiscounted and unleveraged), taking into account the anticipated and probability weighted holding period, are less than a real estate asset’s carrying value. Various factors are considered in the estimation process, including trends and prospects and the effects of demand, competition, and other economic factors. Changes in any estimates and/or assumptions, including the anticipated holding period, could have a material impact on the projected operating cash flows. If management determines that the carrying value of a real estate asset is impaired, a loss is recognized for the excess of its carrying amount over its fair value. In situations in which a lease or leases associated with a significant tenant have been, or are expected to be, terminated early, the Company evaluates the remaining useful lives of depreciable or amortizable assets in the asset group related to the lease that will be terminated (i.e., tenant improvements, above and below market lease intangibles, in-place lease value and leasing commissions). Based upon consideration of the facts and circumstances surrounding the termination, the Company may accelerate the depreciation and amortization associated with the asset group. Income Taxes The Parent Company has elected to qualify as a REIT in accordance with the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, the Parent Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, to its stockholders. It is management’s intention to adhere to these requirements and maintain the Parent Company’s REIT status. As a REIT, the Parent Company generally will not be subject to United States federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under the Code. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to federal taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. On April 3, 2017, BPG Sub’s status as a REIT terminated when BPG Sub became a disregarded subsidiary of the Parent Company for United States federal income tax purposes. Prior to its termination of REIT status, BPG Sub had also elected to qualify as a REIT under the Code and was subject to the same tax requirements and tax treatment as the Parent Company. The Parent Company and BPG Sub have formed taxable REIT subsidiaries, and the Parent Company may in the future elect to treat newly formed subsidiaries as taxable REIT subsidiaries which would be subject to income tax. Taxable REIT subsidiaries may participate in non-real estate-related activities and/or perform non-customary services for tenants and are subject to United States federal and state income tax at regular corporate tax rates. The Operating Partnership is organized as a limited partnership and is generally not subject to federal income tax. Accordingly, no provision for federal income taxes has been reflected in the accompanying unaudited Condensed Consolidated Financial Statements. The Operating Partnership, however, may be subject to certain state and local income taxes or franchise taxes. The Company has analyzed the tax position taken on income tax returns for the open 2013 through 2017 tax years and has concluded that no provision for income taxes related to uncertain tax positions is required in the Company’s unaudited Condensed Consolidated Financial Statements as of September 30, 2017 and December 31, 2016. New Accounting Pronouncements In August 2017, the FASB issued Accounting Standards Update ("ASU") 2017-12 "Derivatives and Hedging (Topic 815)." ASU 2017-12 amends guidance to more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The standard is effective on January 1, 2019, with early adoption permitted. The Company does not expect the adoption of ASU 2017-12 to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718)." ASU 2017-09 clarifies guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard is effective on January 1, 2018, with early adoption permitted. The Company does not expect the adoption of ASU 2017-09 to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805)." ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new guidance will result in many real estate transactions being classified as an asset acquisition and transaction costs being capitalized. The standard is effective on January 1, 2018, with early adoption permitted. ASU 2017-01 was early adopted by the Company on January 1, 2017. As a result of adopting ASU 2017-01 the Company has begun capitalizing transaction costs associated with the acquisition of real estate assets. During the three months ended September 30, 2017, the Company did not capitalize any transaction costs. During the nine months ended September 30, 2017, the Company capitalized $0.4 million of transaction costs. The Company determined that these amounts did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230)." ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective on January 1, 2018, with early adoption permitted. ASU 2016-18 was early adopted by the Company on January 1, 2017. As a result of adopting ASU 2016-18 the Company now presents the unaudited Condensed Consolidated Statement of Cash Flows inclusive of restricted cash balances and also provides a reconciliation to the cash and cash equivalents and restricted cash amounts presented on the unaudited Condensed Consolidated Balance Sheets. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230)." ASU 2016-15 provides classification guidance for certain cash receipts and cash payments including payment of debt extinguishment costs, settlement of zero-coupon debt instruments, insurance claim payments and distributions from equity method investees. The standard is effective on January 1, 2018, with early adoption permitted. The Company does not expect the adoption of ASU 2016-15 to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718)." ASU 2016-09 sets out amendments to Employee Share-Based Payment Accounting. The new standard impacts certain aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statements of cash flows. The new standard became effective for the Company on January 1, 2017. As a result of adopting ASU 2016-09 the Company has elected to account for share-based award forfeitures on an actual basis as opposed to the use of an estimated forfeiture rate. The Company determined these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to recognize a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The pronouncement requires a modified retrospective method of adoption and is effective on January 1, 2019, with early adoption permitted. The Company will continue to evaluate the effect the adoption of ASU 2016-02 will have on the unaudited Condensed Consolidated Financial Statements of the Company. However, the Company currently believes that the adoption of ASU 2016-02 will not have a material impact for operating leases where it is a lessor and will continue to record revenues from rental properties for its operating leases on a straight-line basis. However, for leases where the Company is a lessee, primarily for the Company’s ground leases and administrative office leases, the Company will be required to record a lease liability and a right of use asset on its unaudited Condensed Consolidated Balance Sheets at fair value upon adoption. In addition, direct internal leasing overhead costs will continue to be capitalized, however, indirect internal leasing overhead costs previously capitalized will be expensed under ASU 2016-02. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 contains a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The pronouncement allows either a full or modified retrospective method of adoption and is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for reporting periods beginning after December 15, 2016. A majority of the Company’s tenant-related revenue is recognized pursuant to lease agreements and will be governed by the recently issued leasing guidance discussed above. The Company continues to evaluate the effect the adoption of ASU 2014-09 will have on the Company’s other sources of revenue. These include reimbursement amounts the Company receives from tenants for operating expenses such as real estate taxes, insurance and other common area expenses. However, the Company currently does not believe the adoption of ASU 2014-09 will significantly affect the timing of the recognition of the Company’s reimbursement revenue. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they either are not relevant to the Company, or they are not expected to have a material effect on the unaudited Condensed Consolidated Financial Statements of the Company. |
Acquisition of Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Real Estate | Acquisition of Real Estate During the nine months ended September 30, 2017, the Company acquired the following for an aggregate purchase price, including transaction costs, of (dollars in thousands):
The aggregate purchase price of the properties acquired during the nine months ended September 30, 2017, has been allocated as follows:
In addition, during the nine months ended September 30, 2016, the Company acquired two land parcels and one outparcel building for an aggregate purchase price of $1.2 million. These amounts are included in Improvements to and investments in real estate assets on the Company’s unaudited Condensed Consolidated Statement of Cash Flows. |
Dispositions and Assets Held for Sale |
9 Months Ended |
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Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions and Assets Held for Sale | Dispositions and Assets Held for Sale During the three months ended September 30, 2017, the Company disposed of eight wholly owned shopping centers for net proceeds of $121.4 million resulting in a gain of $25.9 million and impairment of $0.4 million. During the nine months ended September 30, 2017, the Company disposed of 14 wholly owned shopping centers and two outparcel buildings for net proceeds of $228.7 million resulting in a gain of $54.9 million and impairment of $0.4 million. During the three and nine months ended September 30, 2017, the Company disposed of its unconsolidated joint venture interest for net proceeds of $12.4 million resulting in a gain of $4.6 million. The Company had one property held for sale as of September 30, 2017 with a carrying value of $8.2 million. During the three months ended September 30, 2016, the Company disposed of two shopping centers for net proceeds of $10.6 million resulting in a gain of $2.5 million. During the nine months ended September 30, 2016, the Company disposed of four shopping centers and one outparcel building for net proceeds of $31.1 million resulting in a gain of $10.2 million and an impairment of less than $0.1 million. The Company had two properties held for sale as of September 30, 2016 with a carrying value of $24.1 million. In connection with these properties becoming held for sale, the Company recognized a $2.0 million impairment to reduce the carrying value of one of the properties to its estimated net realizable value. The impairment charge was based upon the sales price in the signed contract with the third party buyer, adjusted to reflect associated disposition costs. There were no discontinued operations for the three and nine months ended September 30, 2017 and 2016 as none of the dispositions represented a strategic shift in the Company's business that would qualify as discontinued operations. |
Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate The Company’s components of Real estate, net consisted of the following:
In addition, at September 30, 2017 and December 31, 2016, the Company had intangible liabilities relating to below-market leases of $468.6 million and $485.2 million, respectively, and accumulated accretion of $277.2 million and $261.7 million, respectively. These intangible liabilities are included in Accounts payable, accrued expenses and other liabilities in the Company’s unaudited Condensed Consolidated Balance Sheets. Net above and below market lease intangible accretion income for the three months ended September 30, 2017 and 2016 was $7.6 million and $9.4 million, respectively. Net above and below market lease intangible accretion income for the nine months ended September 30, 2017 and 2016 was $23.0 million and $29.5 million, respectively. These amounts are included in Rental income in the Company's unaudited Condensed Consolidated Statements of Operations. Amortization expense associated with in-place lease value for the three months ended September 30, 2017 and 2016 was $10.8 million and $14.5 million, respectively. Amortization expense associated with in-place lease value for the nine months ended September 30, 2017 and 2016 was $36.3 million and $47.7 million, respectively. These amounts are included in Depreciation and amortization in the Company's unaudited Condensed Consolidated Statements of Operations. The estimated net accretion (income) and amortization expense associated with the Company’s above and below market leases and in-place leases for the next five years are as follows:
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Impairments |
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Impairment of Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairments | Impairments On a periodic basis, management assesses whether there are any indicators, including property operating performance, changes in anticipated holding period and general market conditions, that the value of the Company’s real estate assets (including any related intangible assets or liabilities) may be impaired. If management determines that the carrying value of a real estate asset is impaired, a loss is recognized for the excess of its carrying amount over its fair value. The Company recognized the following impairments during the three months ended September 30, 2017:
The Company recognized the following impairments during the nine months ended September 30, 2017:
The Company recognized the following impairments during the three and nine months ended September 30, 2016:
The Company can provide no assurance that material impairment charges with respect to its Portfolio will not occur in future periods. See Note 8 for additional information regarding the fair value of impairments taken on operating properties. |
Financial Instruments - Derivatives and Hedging |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments - Derivatives and Hedging | Financial Instruments - Derivatives and Hedging The Company’s use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes. In certain situations, the Company may enter into derivative financial instruments such as interest rate swap and interest rate cap agreements that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. Cash Flow Hedges of Interest Rate Risk Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without changing the underlying notional amount. During the three and nine months ended September 30, 2017, the Company did not enter into any new interest rate swap agreements. During the year ended December 31, 2016, the Company entered into nine forward starting interest rate swap agreements (the “Swaps”) with an effective date of November 1, 2016 and an aggregate notional value of $1.4 billion to partially hedge the variable cash flows associated with variable LIBOR based interest rate debt. Detail of the Company’s interest rate derivatives designated as cash flow hedges outstanding as of September 30, 2017 and December 31, 2016 is as follows:
The Company has elected to present its interest rate derivatives on its unaudited Condensed Consolidated Balance Sheets on a gross basis as interest rate swap assets and interest rate swap liabilities. Detail on the Company’s fair value of interest rate derivatives on a gross and net basis as of September 30, 2017 and December 31, 2016, respectively, is as follows:
The gross derivative assets are included in Other assets and the gross derivative liabilities are included in Accounts payable, accrued expenses and other liabilities on the Company's unaudited Condensed Consolidated Balance Sheets. All of the Company’s outstanding interest rate swap agreements for the periods presented were designated as cash flow hedges of interest rate risk. The fair value of the Company's interest rate derivatives is determined using market standard valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. These inputs are classified as Level 2 of the fair value hierarchy. The effective portion of changes in the fair value of derivatives designated as, and that qualify as, cash flow hedges is recognized in other comprehensive income (“OCI”) and is reclassified into earnings as interest expense in the period that the hedged forecasted transaction affects earnings. The effective portion of the Company's interest rate swaps that was recognized in the Company’s unaudited Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016 is as follows:
The Company estimates that $7.0 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense over the next twelve months. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Company’s cash flow hedges during the three and nine months ended September 30, 2017 and 2016. Non-Designated (Mark-to Market) Hedges of Interest Rate Risk The Company does not use derivatives for trading or speculative purposes. As of September 30, 2017 and December 31, 2016, the Company did not have any non-designated hedges. Credit-risk-related Contingent Features The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on certain of its indebtedness and the indebtedness has been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company were to breach any of the contractual provisions of the derivative contracts, it would be required to settle its obligations under the agreements at their termination value including accrued interest. |
Debt Obligations |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | Debt Obligations As of September 30, 2017 and December 31, 2016, the Company had the following indebtedness outstanding:
2017 Debt Transactions In March 2017, the Operating Partnership issued $400.0 million aggregate principal amount of 3.90% Senior Notes due 2027 (the “2027 Notes”), the proceeds of which were utilized to repay outstanding indebtedness, including borrowings under the Company's Unsecured Credit Facility, and for general corporate purposes. The 2027 Notes bear interest at a rate of 3.90% per annum, payable semi-annually on March 15 and September 15 of each year, commencing September 15, 2017. The 2027 Notes will mature on March 15, 2027. The 2027 Notes are the Operating Partnership’s unsecured and unsubordinated obligations and rank equally in right of payment with all of the Operating Partnership’s existing and future senior unsecured and unsubordinated indebtedness. The Operating Partnership may redeem the 2027 Notes at any time in whole or from time to time in part at the applicable make-whole redemption price specified in the Indenture with respect to the 2027 Notes. If the 2027 Notes are redeemed on or after December 15, 2026 (three months prior to the maturity date), the redemption price will be equal to 100% of the principal amount of the 2027 Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. In June 2017, the Operating Partnership issued $500.0 million aggregate principal amount of 3.65% Senior Notes due 2024 (the “2024 Notes”), the proceeds of which were utilized to repay outstanding indebtedness, including borrowings under the Company's Unsecured Credit Facility, and for general corporate purposes. The 2024 Notes bear interest at a rate of 3.65% per annum, payable semi-annually on June 15 and December 15 of each year, commencing December 15, 2017. The 2024 Notes will mature on June 15, 2024. The 2024 Notes are the Operating Partnership’s unsecured and unsubordinated obligations and rank equally in right of payment with all of the Operating Partnership’s existing and future senior unsecured and unsubordinated indebtedness. The Operating Partnership may redeem the 2024 Notes at any time in whole or from time to time in part at the applicable make-whole redemption price specified in the Indenture with respect to the 2024 Notes. If the 2024 Notes are redeemed on or after April 15, 2024 (two months prior to the maturity date), the redemption price will be equal to 100% of the principal amount of the 2024 Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. In July 2017, the Operating Partnership entered into a $300.0 million variable rate unsecured term loan facility (the "$300 Million Term Loan"). The $300 Million Term Loan has a seven-year term maturing on July 26, 2024, with no available extension options, and bears interest at a rate of LIBOR plus 190 basis points (based on the Operating Partnership’s current credit ratings). Proceeds from the $300 Million Term Loan were used to prepay $300.0 million of an unsecured term loan under the Company's Unsecured Credit Facility maturing July 31, 2018. During the nine months ended September 30, 2017, the Company repaid $380.3 million of secured loans and $790.0 million of an unsecured term loan under the Company's Unsecured Credit Facility, resulting in a $0.5 million gain on extinguishment of debt, net. These repayments were funded primarily with proceeds from the issuance of the 2027 Notes, 2024 Notes and $300 Million Term Loan. In addition, during the nine months ended September 30, 2017, the Company repaid $122.0 million, net of borrowings on the Revolving Facility. Pursuant to the terms of the Company’s unsecured debt agreements, the Company among other things is subject to maintenance of various financial covenants. The Company was in compliance with these covenants as of September 30, 2017. Debt Maturities As of September 30, 2017 and December 31, 2016, the Company had accrued interest of $27.2 million and $34.1 million outstanding, respectively. As of September 30, 2017, scheduled amortization and maturities of the Company’s outstanding debt obligations were as follows:
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Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | Fair Value Disclosures All financial instruments of the Company are reflected in the accompanying unaudited Condensed Consolidated Balance Sheets at amounts which, in management’s judgment, reasonably approximate their fair values, except those instruments listed below:
As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy is included in GAAP that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs that are classified within Level 3 of the hierarchy). In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The valuation methodology used to estimate the fair value of the Company’s debt obligations is based on a discounted cash flow analysis, with assumptions that include credit spreads, estimated property values, loan amounts and debt maturities. The Company determined that the valuations of its debt obligations are classified within Level 3 of the fair value hierarchy. Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition. Recurring Fair Value The Company’s marketable securities and interest rate derivatives are measured and recognized at fair value on a recurring basis. The fair value of marketable securities are based primarily on publicly traded market values in active markets and are classified within Level 1 or 2 of the fair value hierarchy. See Note 6 for fair value information regarding the Company's interest rate derivatives. The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured and recognized at fair value on a recurring basis:
Non-Recurring Fair Value On a non-recurring basis, the Company evaluates the carrying value of its properties when events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value is determined by purchase price offers, market comparable data, third party appraisals or by discounted cash flow analysis using the income approach. These cash flows are comprised of unobservable inputs which include forecasted rental revenue and expenses based upon market conditions and future expectations. Capitalization rates and discount rates utilized in these models are based upon unobservable rates that we believe to be within a reasonable range of current market rates for the respective properties. Based on these inputs, the Company has determined that the valuation of these properties is classified within Level 3 of the fair value hierarchy. The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a non-recurring basis. The table includes information related to properties remeasured to fair value as a result of impairment testing:
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Equity and Capital |
9 Months Ended |
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Sep. 30, 2017 | |
Equity [Abstract] | |
Equity and Capital | Equity and Capital ATM In 2015, the Parent Company entered into an at-the-market equity offering program (“ATM”) through which the Parent Company may sell from time to time up to an aggregate of $400.0 million of its common stock through sales agents over a three-year period. No shares have been issued under the ATM and as result $400.0 million of common stock remained available for issuance under the ATM as of September 30, 2017. Common Stock In connection with the vesting of restricted stock units ("RSUs") under the Company's equity-based compensation plan, the Company withholds shares to satisfy statutory minimum tax withholding obligations. During the nine months ended September 30, 2017 and 2016, the Company withheld 0.1 million shares. Dividends and Distributions During the three months ended September 30, 2017 and 2016, the Company declared common stock dividends and OP unit distributions of $0.260 per share/unit and $0.245 per share/unit, respectively. As of September 30, 2017 and December 31, 2016, the Company had declared but unpaid common stock dividends and OP unit distributions of $81.1 million and $80.6 million, respectively. These amounts are included in Accounts payable, accrued expenses and other liabilities on the Company's unaudited Condensed Consolidated Balance Sheets. Non-controlling interests During the nine months ended September 30, 2017, the Company exchanged 0.4 million shares of the Company's common stock for an equal number of outstanding OP Units held by certain members of the Parent Company's current and former management. As of September 30, 2017, the Parent Company beneficially owned, through its direct and indirect interest in BPG Sub and the General Partner, 100.0% of the outstanding OP Units. Preferred Stock During the nine months ended September 30, 2017, the Company redeemed all 125 shares of BPG Sub Series A Redeemable Preferred Stock for $10,000 per share. |
Stock Based Compensation |
9 Months Ended |
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Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation During the year ended December 31, 2013, the Board of Directors approved the 2013 Omnibus Incentive Plan (the “Plan”). The Plan provides for a maximum of 15.0 million shares of the Company’s common stock to be issued for qualified and non-qualified options, stock appreciation rights, restricted stock and RSUs, OP Units, performance awards and other stock-based awards. During the nine months ended September 30, 2017 and the year ended December 31, 2016, the Company granted RSUs to certain employees. The RSUs are divided into multiple tranches, with each tranche subject to separate performance-based, market-based and service-based vesting conditions. Each award contains a threshold, target, and maximum number of units in respect to each tranche. The number of units actually earned for each tranche is determined based on performance during a specified performance period, and the earned units are then further subject to service-based vesting conditions. The aggregate number of RSUs granted, assuming that the target level of performance is achieved, was 0.6 million and 0.8 million for the nine months ended September 30, 2017 and year ended December 31, 2016, respectively, with vesting periods ranging from one to five years. For the performance-based and service-based RSUs granted under the Plan, fair value is based on the Company grant date stock price. For the market-based RSUs granted during the nine months ended September 30, 2017 and year ended December 31, 2016, the Company calculated the grant date fair values per unit using a Monte Carlo simulation based on the probability of satisfying the market performance hurdles over the remainder of the performance period based on the Company’s historical common stock performance relative to the other companies within the FTSE NAREIT Equity Shopping Centers Index as well as the following significant assumptions: (i) volatility of 22.0% to 23.0% and 23.5% to 26.5%, respectively; (ii) a weighted average risk-free interest rate of 1.20% to 1.41% and 1.0%, respectively; and (iii) the Company’s weighted average common stock dividend yield of 4.0% to 4.6% and 3.8%, respectively. During the three months ended September 30, 2017 and 2016, the Company recognized $2.9 million and $3.5 million of equity compensation expense, respectively. During the nine months ended September 30, 2017, the Company recognized $7.8 million of equity compensation expense. During the nine months ended September 30, 2016, the Company recognized $8.0 million of equity compensation expense, which included the reversal of $2.6 million of previously recognized expense as a result of forfeitures and the acceleration of $2.7 million of expense associated with the issuance of shares, both in connection with the separation of certain Company executives. These amounts are included in General and administrative expense in the Company's unaudited Condensed Consolidated Statements of Operations. As of September 30, 2017, the Company had $13.4 million of total unrecognized compensation expense related to unvested stock compensation expected to be recognized over a weighted average period of approximately 2.2 years. |
Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) is calculated by dividing net income attributable to the Company’s common stockholders, including any participating securities, by the weighted average number of shares outstanding for the period. Certain restricted shares issued pursuant to the Company’s share-based compensation program are considered participating securities, as such shares have rights to receive non-forfeitable dividends. Fully-diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock. Unvested RSUs are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the common stockholders. The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2017 and 2016:
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Earnings per Unit |
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Schedule of Earnings per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Unit | Earnings per Share Basic earnings per share (“EPS”) is calculated by dividing net income attributable to the Company’s common stockholders, including any participating securities, by the weighted average number of shares outstanding for the period. Certain restricted shares issued pursuant to the Company’s share-based compensation program are considered participating securities, as such shares have rights to receive non-forfeitable dividends. Fully-diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock. Unvested RSUs are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the common stockholders. The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2017 and 2016:
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Brixmor Operating Partnership LP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Unit | Earnings per Unit Basic earnings per unit is calculated by dividing net income attributable to the Operating Partnership’s common units, including any participating securities, by the weighted average number of partnership common units outstanding for the period. Certain restricted units issued pursuant to the Company’s share-based compensation program are considered participating securities, as such shares have rights to receive non-forfeitable dividends. Fully-diluted earnings per unit reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into shares of common units. Unvested RSUs are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the Operating Partnership's common units. The following table provides a reconciliation of the numerator and denominator of the earnings per unit calculations for the three and nine months ended September 30, 2017 and 2016:
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Commitments and Contingencies |
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Legal Matters Except as described below, the Company is not presently involved in any material litigation arising outside the ordinary course of business. However, the Company is involved in routine litigation arising in the ordinary course of business, none of which the Company believes, individually or in the aggregate, taking into account existing reserves, will have a material impact on the Company’s results of operations, cash flows, or financial position. On February 8, 2016, the Company issued a press release and filed a Form 8-K reporting the completion of a review by the Audit Committee of the Company's Board of Directors that began after the Company received information in late December 2015 through its established compliance processes. The Audit Committee review led the Board of Directors to conclude that specific Company accounting and financial reporting personnel, in certain instances, were smoothing income items, both up and down, between reporting periods in an effort to achieve consistent quarterly same property net operating income growth. As a result of the Audit Committee review and the conclusions reached by the Board of Directors, the Company’s Chief Executive Officer, its President and Chief Financial Officer, its Chief Accounting Officer and Treasurer, and an accounting employee all resigned. Following these resignations the Company appointed a new Interim Chief Executive Officer and President, Interim Chief Financial Officer and Interim Chief Accounting Officer. A new Chief Executive Officer and Chief Financial Officer were appointed effective May 20, 2016. A new Chief Accounting Officer was appointed effective March 8, 2017. Prior to the Company’s February 8, 2016 announcement, the Company voluntarily reported these matters to the SEC. As a result, the SEC and the United States Attorney's Office for the Southern District of New York are conducting investigations of certain aspects of the Company’s financial reporting and accounting for prior periods and the Company is cooperating fully. The Company entered into a preliminary agreement in May 2017, which was finalized in July 2017, to settle the putative securities class action complaint filed in March 2016 by the Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds related to the previously disclosed review conducted by the Company’s Audit Committee for $28.0 million. The settlement amount is within the coverage amount of the Company’s applicable insurance policies. There can be no assurance that such settlement will be approved by the Court. Based on current information, the Company accrued $28.0 million as of September 30, 2017 with respect to the settlement agreement. This amount is included in Accounts payable, accrued expenses and other liabilities in the Company's unaudited Condensed Consolidated Balance Sheets. Because the settlement amount is within the coverage amount of the Company’s applicable insurance policies, the Company accrued a receivable of $28.0 million as of September 30, 2017. This amount is included in Accounts receivable, net in the Company's unaudited Condensed Consolidated Balance Sheets. Leasing commitments The Company periodically enters into ground leases for neighborhood and community shopping centers that it operates and enters into office leases for administrative space. During the three months ended September 30, 2017 and 2016, the Company recognized rent expense associated with these leases of $1.9 million. During the nine months ended September 30, 2017 and 2016, the Company recognized rent expense associated with these leases of $5.6 million and $6.5 million, respectively. Minimum annual rental commitments associated with these leases during the next five years and thereafter are as follows:
Environmental matters Under various federal, state and local laws, ordinances and regulations, the Company may be considered an owner or operator of real property or may have arranged for the disposal or treatment of hazardous or toxic substances. As a result, the Company may be liable for certain costs including removal, remediation, government fines and injuries to persons and property. The Company does not believe that any resulting liability from such matters will have a material impact on the Company’s results of operations, cash flows, or financial position. |
Related-Party Transactions |
9 Months Ended |
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Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions In the ordinary course of conducting its business, the Company enters into agreements with its affiliates and an unconsolidated joint venture in relation to the leasing and management of its and/or its related parties’ real estate assets. Pursuant to the employment agreement dated April 12, 2016 between the Company and James Taylor, the Company’s chief executive officer, the Company was contingently obligated to purchase Mr. Taylor’s former residence for an amount equal to the appraised value of the residence as of a date within 120 days of the execution of the employment agreement. Based upon the contingency being triggered in May 2017, the Company purchased the residence on July 5, 2017 for the appraised value of $4.4 million. The Company intends to sell the residence. Based on an August 2017 appraisal, the value of the residence was $3.9 million. As of September 30, 2017 and December 31, 2016, there were no material receivables from or payables to related parties. |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In preparing the unaudited Condensed Consolidated Financial Statements, the Company has evaluated events and transactions occurring after September 30, 2017 for recognition or disclosure purposes. Based on this evaluation, there were no subsequent events from September 30, 2017 through the date the financial statements were issued. |
Nature of Business and Financial Statement Presentation (Policies) |
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Sep. 30, 2017 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Description of Business | Description of Business Brixmor Property Group Inc. and subsidiaries (collectively, the “Parent Company”) is an internally-managed real estate investment trust (“REIT”). Brixmor Operating Partnership LP and subsidiaries (collectively, the “Operating Partnership”) is the entity through which the Parent Company conducts substantially all of its operations and owns substantially all of its assets. The Parent Company owns 100% of the common stock of BPG Subsidiary Inc. (“BPG Sub”), which, in turn, is the sole member of Brixmor OP GP LLC (the “General Partner”), the sole general partner of the Operating Partnership. The Parent Company engages in the ownership, management, leasing, acquisition, disposition and redevelopment of retail shopping centers through the Operating Partnership, and has no other substantial assets or liabilities other than through its investment in the Operating Partnership. The Parent Company, the Operating Partnership and their controlled subsidiaries on a consolidated basis (collectively the “Company” or “Brixmor”) believes it owns and operates one of the largest open air retail portfolios by gross leasable area ("GLA") in the United States, comprised primarily of community and neighborhood shopping centers. As of September 30, 2017, the Company's portfolio was comprised of 498 wholly owned shopping centers totaling approximately 84 million square feet of gross leasable area (the “Portfolio”). In addition, the Company has one land parcel currently under development. The Company’s high-quality national Portfolio is primarily located within established trade areas in the top 50 Metropolitan Statistical Areas, and our shopping centers are primarily anchored by non-discretionary and value-oriented retailers, as well as consumer-oriented service providers. The Company does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company has a single reportable segment for disclosure purposes in accordance with U.S. generally accepted accounting principles (“GAAP”). |
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Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the unaudited Condensed Consolidated Financial Statements for the periods presented have been included. The Company has determined that it is preferable to present underwriter fees associated with the Company’s issuance of unsecured senior notes in the line item Deferred financing costs as opposed to deducting the amount of the fees within the line item Proceeds from unsecured term loans and notes within financing activities in the accompanying unaudited Condensed Consolidated Statement of Cash Flows. In connection with this revised presentation, certain prior period balances have been adjusted to conform to the current period presentation described above. The operating results for the periods presented are not necessarily indicative of the results that may be expected for a full fiscal year. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2016 and accompanying notes included in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2017. |
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Principles of Consolidation | Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Parent Company, the Operating Partnership, each of their wholly owned subsidiaries and all other entities in which they have a controlling financial interest. The portions of consolidated entities not owned by the Parent Company and the Operating Partnership are presented as non-controlling interests as of and during the periods presented. All intercompany transactions have been eliminated. |
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Real Estate | Real Estate Real estate assets are recognized in the Company's unaudited Condensed Consolidated Balance Sheets at historical cost, less accumulated depreciation and amortization. Upon acquisition of real estate operating properties, management estimates the fair value of acquired tangible assets (consisting of land, buildings, and tenant improvements), identifiable intangible assets and liabilities (consisting of above and below-market leases, in-place leases and tenant relationships) and assumed debt based on an evaluation of available information. Based on these estimates, the estimated fair value is allocated to the acquired assets and assumed liabilities. Transaction costs incurred during the acquisition process are capitalized as a component of the asset’s value. The fair value of tangible assets is determined as if the acquired property is vacant. Fair value is determined using an exit price approach, which contemplates the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If subsequent information regarding the fair value of the assets acquired and liabilities assumed is received and estimates are refined, the appropriate adjustments are made to the purchase price allocation on a prospective basis. In allocating the fair value to identifiable intangible assets and liabilities of an acquired operating property, the value of above-market and below-market leases is estimated based on the present value (using a discount rate reflecting the risks associated with leases acquired) of the difference between: (i) the contractual amounts to be paid pursuant to the leases negotiated and in-place at the time of acquisition and (ii) management’s estimate of fair market lease rates for the property or an equivalent property, measured over a period equal to the remaining non-cancelable term of the lease, which includes renewal periods with fixed rental terms that are considered to be below-market. The capitalized above-market or below-market intangible is amortized as a reduction of, or increase to, rental income over the remaining non-cancelable term of each lease. In determining the value of in-place leases and tenant relationships, management evaluates the specific characteristics of each lease and the Company’s overall relationship with each tenant. Factors considered include, but are not limited to: the nature of the existing relationship with a tenant, the credit risk associated with a tenant, expectations surrounding lease renewals, estimated carrying costs of a property during a hypothetical expected lease-up period, current market conditions and costs to execute similar leases. Management also considers information obtained about a property in connection with its pre-acquisition due diligence. Estimated carrying costs include: property operating costs, insurance, real estate taxes and estimates of lost rentals at market rates. Costs to execute similar leases include leasing commissions and legal costs to the extent that such costs are not already incurred with a new lease that has been negotiated in connection with the purchase of a property. The values assigned to in-place leases and tenant relationships are amortized to Depreciation and amortization expense over the remaining term of each lease. Certain real estate assets are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:
Costs to fund major replacements and betterments, which extend the life of the asset, are capitalized and depreciated over their respective useful lives, while costs for ordinary repairs and maintenance activities are expensed as incurred. When a real estate asset is identified by management as held-for-sale, the Company discontinues depreciating the asset and estimates its sales price, net of estimated selling costs. If the estimated net sales price of an asset is less than its net carrying value, a loss is recognized to reflect the estimated fair value. Properties classified as real estate held-for-sale generally represent properties that are under contract for sale and are expected to close within 12 months. On a periodic basis, management assesses whether there are indicators, including property operating performance, changes in anticipated holding period and general market conditions, that the value of the Company’s real estate assets (including any related intangible assets or liabilities) may be impaired. If an indicator is identified, a real estate asset is considered impaired only if management’s estimate of current and projected operating cash flows (undiscounted and unleveraged), taking into account the anticipated and probability weighted holding period, are less than a real estate asset’s carrying value. Various factors are considered in the estimation process, including trends and prospects and the effects of demand, competition, and other economic factors. Changes in any estimates and/or assumptions, including the anticipated holding period, could have a material impact on the projected operating cash flows. If management determines that the carrying value of a real estate asset is impaired, a loss is recognized for the excess of its carrying amount over its fair value. In situations in which a lease or leases associated with a significant tenant have been, or are expected to be, terminated early, the Company evaluates the remaining useful lives of depreciable or amortizable assets in the asset group related to the lease that will be terminated (i.e., tenant improvements, above and below market lease intangibles, in-place lease value and leasing commissions). Based upon consideration of the facts and circumstances surrounding the termination, the Company may accelerate the depreciation and amortization associated with the asset group. |
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Income Taxes | Income Taxes The Parent Company has elected to qualify as a REIT in accordance with the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, the Parent Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, to its stockholders. It is management’s intention to adhere to these requirements and maintain the Parent Company’s REIT status. As a REIT, the Parent Company generally will not be subject to United States federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under the Code. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to federal taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. On April 3, 2017, BPG Sub’s status as a REIT terminated when BPG Sub became a disregarded subsidiary of the Parent Company for United States federal income tax purposes. Prior to its termination of REIT status, BPG Sub had also elected to qualify as a REIT under the Code and was subject to the same tax requirements and tax treatment as the Parent Company. The Parent Company and BPG Sub have formed taxable REIT subsidiaries, and the Parent Company may in the future elect to treat newly formed subsidiaries as taxable REIT subsidiaries which would be subject to income tax. Taxable REIT subsidiaries may participate in non-real estate-related activities and/or perform non-customary services for tenants and are subject to United States federal and state income tax at regular corporate tax rates. The Operating Partnership is organized as a limited partnership and is generally not subject to federal income tax. Accordingly, no provision for federal income taxes has been reflected in the accompanying unaudited Condensed Consolidated Financial Statements. The Operating Partnership, however, may be subject to certain state and local income taxes or franchise taxes. The Company has analyzed the tax position taken on income tax returns for the open 2013 through 2017 tax years and has concluded that no provision for income taxes related to uncertain tax positions is required in the Company’s unaudited Condensed Consolidated Financial Statements as of September 30, 2017 and December 31, 2016. |
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New Accounting Pronouncements | New Accounting Pronouncements In August 2017, the FASB issued Accounting Standards Update ("ASU") 2017-12 "Derivatives and Hedging (Topic 815)." ASU 2017-12 amends guidance to more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The standard is effective on January 1, 2019, with early adoption permitted. The Company does not expect the adoption of ASU 2017-12 to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718)." ASU 2017-09 clarifies guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard is effective on January 1, 2018, with early adoption permitted. The Company does not expect the adoption of ASU 2017-09 to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805)." ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new guidance will result in many real estate transactions being classified as an asset acquisition and transaction costs being capitalized. The standard is effective on January 1, 2018, with early adoption permitted. ASU 2017-01 was early adopted by the Company on January 1, 2017. As a result of adopting ASU 2017-01 the Company has begun capitalizing transaction costs associated with the acquisition of real estate assets. During the three months ended September 30, 2017, the Company did not capitalize any transaction costs. During the nine months ended September 30, 2017, the Company capitalized $0.4 million of transaction costs. The Company determined that these amounts did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230)." ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective on January 1, 2018, with early adoption permitted. ASU 2016-18 was early adopted by the Company on January 1, 2017. As a result of adopting ASU 2016-18 the Company now presents the unaudited Condensed Consolidated Statement of Cash Flows inclusive of restricted cash balances and also provides a reconciliation to the cash and cash equivalents and restricted cash amounts presented on the unaudited Condensed Consolidated Balance Sheets. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230)." ASU 2016-15 provides classification guidance for certain cash receipts and cash payments including payment of debt extinguishment costs, settlement of zero-coupon debt instruments, insurance claim payments and distributions from equity method investees. The standard is effective on January 1, 2018, with early adoption permitted. The Company does not expect the adoption of ASU 2016-15 to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718)." ASU 2016-09 sets out amendments to Employee Share-Based Payment Accounting. The new standard impacts certain aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statements of cash flows. The new standard became effective for the Company on January 1, 2017. As a result of adopting ASU 2016-09 the Company has elected to account for share-based award forfeitures on an actual basis as opposed to the use of an estimated forfeiture rate. The Company determined these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to recognize a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The pronouncement requires a modified retrospective method of adoption and is effective on January 1, 2019, with early adoption permitted. The Company will continue to evaluate the effect the adoption of ASU 2016-02 will have on the unaudited Condensed Consolidated Financial Statements of the Company. However, the Company currently believes that the adoption of ASU 2016-02 will not have a material impact for operating leases where it is a lessor and will continue to record revenues from rental properties for its operating leases on a straight-line basis. However, for leases where the Company is a lessee, primarily for the Company’s ground leases and administrative office leases, the Company will be required to record a lease liability and a right of use asset on its unaudited Condensed Consolidated Balance Sheets at fair value upon adoption. In addition, direct internal leasing overhead costs will continue to be capitalized, however, indirect internal leasing overhead costs previously capitalized will be expensed under ASU 2016-02. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 contains a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The pronouncement allows either a full or modified retrospective method of adoption and is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for reporting periods beginning after December 15, 2016. A majority of the Company’s tenant-related revenue is recognized pursuant to lease agreements and will be governed by the recently issued leasing guidance discussed above. The Company continues to evaluate the effect the adoption of ASU 2014-09 will have on the Company’s other sources of revenue. These include reimbursement amounts the Company receives from tenants for operating expenses such as real estate taxes, insurance and other common area expenses. However, the Company currently does not believe the adoption of ASU 2014-09 will significantly affect the timing of the recognition of the Company’s reimbursement revenue. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they either are not relevant to the Company, or they are not expected to have a material effect on the unaudited Condensed Consolidated Financial Statements of the Company. |
Nature of Business and Financial Statement Presentation (Tables) |
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Accounting Policies [Abstract] | |||||||||||
Schedule of estimated useful lives | Certain real estate assets are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:
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Acquisition of Real Estate (Tables) |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | During the nine months ended September 30, 2017, the Company acquired the following for an aggregate purchase price, including transaction costs, of (dollars in thousands):
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The aggregate purchase price of the properties acquired during the nine months ended September 30, 2017, has been allocated as follows:
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Real Estate (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of real estate properties | The Company’s components of Real estate, net consisted of the following:
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Schedule of expected net amortization expense associated with intangible assets and liabilities | These amounts are included in Depreciation and amortization in the Company's unaudited Condensed Consolidated Statements of Operations. The estimated net accretion (income) and amortization expense associated with the Company’s above and below market leases and in-place leases for the next five years are as follows:
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Impairments (Tables) |
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Schedule of Impairments | The Company recognized the following impairments during the three months ended September 30, 2017:
The Company recognized the following impairments during the nine months ended September 30, 2017:
The Company recognized the following impairments during the three and nine months ended September 30, 2016:
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Financial Instruments - Derivatives and Hedging (Tables) |
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Schedule of derivative instruments in Statement of Financial Position, fair value | Detail on the Company’s fair value of interest rate derivatives on a gross and net basis as of September 30, 2017 and December 31, 2016, respectively, is as follows:
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Schedule of cash flow hedges included in AOCI | The effective portion of the Company's interest rate swaps that was recognized in the Company’s unaudited Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016 is as follows:
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Cash Flow Hedging [Member] | Designated as Hedging Instrument | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of interest rate derivatives | Detail of the Company’s interest rate derivatives designated as cash flow hedges outstanding as of September 30, 2017 and December 31, 2016 is as follows:
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Debt Obligations (Tables) |
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Debt obligations under various arrangements with financial institutions | As of September 30, 2017 and December 31, 2016, the Company had the following indebtedness outstanding:
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Future expected/scheduled maturities of outstanding debt and capital lease obligations | As of September 30, 2017 and December 31, 2016, the Company had accrued interest of $27.2 million and $34.1 million outstanding, respectively. As of September 30, 2017, scheduled amortization and maturities of the Company’s outstanding debt obligations were as follows:
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Fair Value Disclosures (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Debt Obligation | All financial instruments of the Company are reflected in the accompanying unaudited Condensed Consolidated Balance Sheets at amounts which, in management’s judgment, reasonably approximate their fair values, except those instruments listed below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured and recognized at fair value on a recurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements, Nonrecurring | The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a non-recurring basis. The table includes information related to properties remeasured to fair value as a result of impairment testing:
|
Earnings per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share, basic and diluted | The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2017 and 2016:
|
Earnings per Unit (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per unit, basic and diluted | The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2017 and 2016:
|
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Brixmor Operating Partnership LP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per unit, basic and diluted | The following table provides a reconciliation of the numerator and denominator of the earnings per unit calculations for the three and nine months ended September 30, 2017 and 2016:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum annual rental commitments associated with these leases during the next five years and thereafter are as follows:
|
Nature of Business and Financial Statement Presentation (Narrative) (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
ft²
Property
| |
Nture of Oerations and Financial Statements Presentation [Line Items] | |
Gross leasable area | ft² | 444,779 |
Transaction costs capitalized | $ | $ 0.4 |
Shopping Center | |
Nture of Oerations and Financial Statements Presentation [Line Items] | |
Number of real estate properties | Property | 498 |
Gross leasable area | ft² | 84,000,000 |
Land Parcel | |
Nture of Oerations and Financial Statements Presentation [Line Items] | |
Number of real estate properties held through an unconsolidated joint venture | Property | 1 |
Parent Company | BPG Sub | |
Nture of Oerations and Financial Statements Presentation [Line Items] | |
Ownership percentage | 100.00% |
Nature of Business and Financial Statement Presentation (Useful Lives) (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Building and building and land improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years | |
Building and building and land improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 40 years | |
Furniture, fixtures, and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Furniture, fixtures, and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
Tenant improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | The shorter of the term of the related lease or useful life |
Acquisition of Real Estate (Purchase Price) (Details) - Acquired Properties $ in Thousands |
Sep. 30, 2017
USD ($)
|
---|---|
Assets | |
Land | $ 19,240 |
Buildings | 75,286 |
Building Improvements | 9,177 |
Above Market Rents | 2,381 |
In-place leases | 8,608 |
Total assets | 114,692 |
Liabilities | |
Accounts payable, accrued expenses and other liabilities (below market leases) | 2,902 |
Total liabilities | 2,902 |
Net Assets Acquired | $ 111,790 |
Acquisition of Real Estate (Narrative) (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
land_parcel
|
|
Real Estate Properties [Line Items] | ||
Net purchase price | $ | $ 111,790 | |
Acquired Land Parcels | ||
Real Estate Properties [Line Items] | ||
Number of outparcels acquired | land_parcel | 2 | |
Acquired Outparcels | ||
Real Estate Properties [Line Items] | ||
Number of outparcels acquired | land_parcel | 1 | |
Net purchase price | $ | $ 1,200 |
Financial Instruments - Derivatives and Hedging (Narrative) (Details) |
9 Months Ended | |
---|---|---|
Sep. 30, 2017
USD ($)
derivative_instrument
|
Dec. 31, 2016
USD ($)
derivative_instrument
|
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount expected to be reclassified from accumulated other comprehensive loss in the next twelve months | $ 7,000,000 | |
Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Number of instruments | derivative_instrument | 9 | 9 |
Notional amount | $ 1,400,000,000 | $ 1,400,000,000 |
Financial Instruments - Derivatives and Hedging (Cash Flow Hedges Outstanding) (Details) - Designated as Hedging Instrument - Interest Rate Swaps |
Sep. 30, 2017
USD ($)
derivative_instrument
|
Dec. 31, 2016
USD ($)
derivative_instrument
|
---|---|---|
Derivative [Line Items] | ||
Number of Instruments | derivative_instrument | 9 | 9 |
Notional Amount | $ | $ 1,400,000,000 | $ 1,400,000,000 |
Financial Instruments - Derivatives and Hedging (Fair Value of Interest Rates) (Details) - Interest Rate Swaps - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Gross derivative assets | $ 20,171 | $ 21,605 |
Gross derivative liabilities | 0 | 0 |
Net derivative assets | $ 20,171 | $ 21,605 |
Financial Instruments - Derivatives and Hedging (Infective Portion) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Change in unrealized gain (loss) on interest rate swaps | $ 132 | $ 79 | $ (532) | $ (1,704) |
Amortization of interest rate swaps to interest expense | (1,094) | 1,242 | (902) | 4,117 |
Change in unrealized gain (loss) on interest rate swaps, net | $ (962) | $ 1,321 | $ (1,434) | $ 2,413 |
Fair Value Disclosures (Debt Obligations) (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Estimated fair value of the Company's debt obligations compared to their carrying amounts | ||
Secured loans, Carrying Amounts | $ 5,713,688 | $ 5,838,889 |
Total debt obligations, net | 5,713,688 | 5,838,889 |
Carrying Amounts | ||
Estimated fair value of the Company's debt obligations compared to their carrying amounts | ||
Secured loans, Carrying Amounts | 932,589 | 1,337,094 |
Notes payable, Carrying Amounts | 3,181,182 | 2,291,954 |
Unsecured Credit Facility and Term Loan, Carrying Amounts | 1,599,917 | 2,209,841 |
Total debt obligations, net | 5,713,688 | 5,838,889 |
Fair Value | ||
Estimated fair value of the Company's debt obligations compared to their carrying amounts | ||
Secured loans, Fair Value | 989,296 | 1,410,698 |
Notes payable, Fair Value | 3,231,275 | 2,302,048 |
Unsecured Credit Facility and Term Loan, Fair Value | 1,611,802 | 2,223,807 |
Total debt obligations, net, Fair Value | $ 5,832,373 | $ 5,936,553 |
Equity and Capital (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Noncontrolling Interest [Line Items] | |||||
Common stock authorized for sale under the ATM | $ 400.0 | ||||
Common stock remained available for issuance under the ATM | $ 400.0 | $ 400.0 | |||
Dividends, per common share | $ 0.26 | $ 0.245 | $ 0.78 | $ 0.735 | |
Series A Redeemable Preferred Stock | |||||
Noncontrolling Interest [Line Items] | |||||
Stock redeemed, shares | 125 | ||||
Redemption price per share | $ 10,000 | $ 10,000 | |||
Parent Company | Operating Partnership | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage | 100.00% | 100.00% | |||
OP Units | |||||
Noncontrolling Interest [Line Items] | |||||
Shares exchanged | 400,000 | ||||
Accounts Payable and Accrued Liabilities | |||||
Noncontrolling Interest [Line Items] | |||||
Dividends payable | $ 81.1 | $ 81.1 | $ 80.6 | ||
Common Stock | |||||
Noncontrolling Interest [Line Items] | |||||
Stock repurchased during period, shares | 100,000.0 | 100,000.0 | |||
Shares exchanged | 403,000 | 4,976,000 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Loss Contingencies [Line Items] | ||||
Loss contingency, amount | $ 28,000 | $ 28,000 | ||
Rent expense | 1,900 | $ 1,900 | 5,600 | $ 6,500 |
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract] | ||||
2017 (remaining three months) | 1,828 | 1,828 | ||
2018 | 7,127 | 7,127 | ||
2019 | 7,046 | 7,046 | ||
2021 | 7,060 | 7,060 | ||
2020 | 7,251 | 7,251 | ||
Thereafter | 79,084 | 79,084 | ||
Total minimum annual rental commitments | 109,396 | 109,396 | ||
Accounts payable, accrued expenses and other liabilities | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | 28,000 | 28,000 | ||
Accounts receivable | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, receivable | $ 28,000 | $ 28,000 |
Related-Party Transactions (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Jul. 05, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Related Party Transaction [Line Items] | |||
Payments to acquire real estate | $ 111,790 | $ 6,733 | |
Real estate held-for-sale | 8,200 | $ 24,100 | |
Chief Executive Officer | Purchase of Former Residence | |||
Related Party Transaction [Line Items] | |||
Period of execution of employment agreement | 120 days | ||
Payments to acquire real estate | $ 4,400 | ||
Real estate held-for-sale | $ 3,900 |
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