FORM 10-K |
ý | ANNUAL REPORT PURSUANT TO THE 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 | 52-0782497 | |
(State of Organization) | (IRS Employer Identification No.) | |
1626 East Jefferson Street, Rockville, Maryland | 20852 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange On Which Registered | |
Common Shares of Beneficial Interest, $.01 par value per share, with associated Common Share Purchase Rights | New York Stock Exchange |
Large Accelerated Filer | ý | Accelerated Filer | ¨ |
Non-Accelerated Filer | o (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
PART I | ||
Item 1. | Business | |
Item 1A. | Risk Factors | |
Item 1B. | Unresolved Staff Comments | |
Item 2. | Properties | |
Item 3. | Legal Proceedings | |
Item 4. | Mine Safety Disclosures | |
PART II | ||
Item 5. | Market for Our Common Equity and Related Shareholder Matters and Issuer Purchases of Equity Securities | |
Item 6. | Selected Financial Data | |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | |
Item 8. | Financial Statements and Supplementary Data | |
Item 9. | Changes In and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item 9A. | Controls and Procedures | |
Item 9B. | Other Information | |
PART III | ||
Item 10. | Trustees, Executive Officers and Corporate Governance | |
Item 11. | Executive Compensation | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters | |
Item 13. | Certain Relationships and Related Transactions, and Trustee Independence | |
Item 14. | Principal Accountant Fees and Services | |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | |
SIGNATURES |
• | protect investor capital; |
• | provide increasing cash flow for distribution to shareholders; |
• | generate higher internal growth than our peers; and |
• | provide potential for capital appreciation. |
• | increasing rental rates through the renewal of expiring leases or the leasing of space to new tenants at higher rental rates while limiting vacancy and down-time; |
• | maintaining a diversified tenant base, thereby limiting exposure to any one tenant’s financial or operating difficulties; |
• | monitoring the merchandising mix of our tenant base to achieve a balance of strong national and regional tenants with local specialty tenants; |
• | minimizing overhead and operating costs; |
• | monitoring the physical appearance of our properties and the construction quality, condition and design of the buildings and other improvements located on our properties to maximize our ability to attract customers and thereby generate higher rents and occupancy rates; |
• | developing local and regional market expertise in order to capitalize on market and retailing trends; |
• | leveraging the contacts and experience of our management team to build and maintain long-term relationships with tenants, investors and financing sources; |
• | providing exceptional customer service; and |
• | creating an experience at many of our properties that is identifiable, unique and serves the surrounding communities to help insulate these properties and the tenants at these properties from the impact of on-line retailing. |
• | renovating, expanding, reconfiguring and/or retenanting our existing properties to take advantage of under-utilized land or existing square footage to increase revenue; |
• | renovating or expanding tenant spaces for tenants capable of producing higher sales, and therefore, paying higher rents; |
• | acquiring quality retail and mixed-use properties located in densely populated and/or affluent areas where barriers to entry for further development are high, and that have possibilities for enhancing operating performance and creating value through renovation, expansion, reconfiguration and/or retenanting; and |
• | developing the retail portions of mixed-use properties and developing or otherwise investing in non-retail portions of mixed-use properties we already own in order to capitalize on the overall value created in these properties. |
• | the expected returns in relation to our short and long-term cost of capital as well as the anticipated risk we will face in achieving the expected returns; |
• | the anticipated growth rate of operating income generated by the property; |
• | the tenant mix at the property, tenant sales performance and the creditworthiness of those tenants; |
• | the geographic area in which the property is located, including the population density and household incomes, as well as the population and income trends in that geographic area; |
• | competitive conditions in the vicinity of the property, including competition for tenants and the ability of others to create competing properties through redevelopment, new construction or renovation; |
• | access to and visibility of the property from existing roadways and the potential for new, widened or realigned, roadways within the property’s trade area, which may affect access and commuting and shopping patterns; |
• | the level and success of our existing investments in the market area; |
• | the current market value of the land, buildings and other improvements and the potential for increasing those market values; and |
• | the physical condition of the land, buildings and other improvements, including the structural and environmental condition. |
• | maintaining a prudent level of overall leverage and an appropriate pool of unencumbered properties that is sufficient to support our unsecured borrowings; |
• | managing our exposure to variable-rate debt; |
• | maintaining an available line of credit to fund operating and investing needs on a short-term basis; |
• | taking advantage of market opportunities to refinance existing debt, reduce interest costs and manage our debt maturity schedule so that a significant portion of our debt does not mature in any one year; |
• | selling properties that have limited growth potential or are not a strategic fit within our overall portfolio and redeploying the proceeds to redevelop, renovate, retenant and/or expand our existing properties, acquire new properties or reduce debt; and |
• | utilizing the most advantageous long-term source of capital available to us to finance redevelopment and acquisition opportunities, which may include: |
◦ | the sale of our equity or debt securities through public offerings, including our at the market ("ATM") equity program in which we may from time to time offer and sell common shares, or private placements, |
◦ | the incurrence of indebtedness through unsecured or secured borrowings, |
◦ | the issuance of operating partnership units in a new or existing “downREIT partnership” that is controlled and consolidated by us (generally operating partnership units in a “downREIT” partnership are issued in |
◦ | the use of joint venture arrangements. |
• | the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, which we refer to as CERCLA; |
• | the Resource Conservation & Recovery Act; |
• | the Federal Clean Water Act; |
• | the Federal Clean Air Act; |
• | the Toxic Substances Control Act; |
• | the Occupational Safety & Health Act; and |
• | the Americans with Disabilities Act. |
• | reduce the number of properties available for acquisition; |
• | increase the cost of properties available for acquisition; |
• | interfere with our ability to attract and retain tenants, leading to increased vacancy rates and/or reduced rents; and |
• | adversely affect our ability to minimize expenses of operation. |
• | require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing funds available for operations, property acquisitions, redevelopments and other appropriate business opportunities that may arise in the future; |
• | limit our ability to make distributions on our outstanding common shares and preferred shares; |
• | make it difficult to satisfy our debt service requirements; |
• | require us to dedicate increased amounts of our cash flow from operations to payments on debt upon refinancing or on our variable rate, unhedged debt, if interest rates rise; |
• | limit our flexibility in planning for, or reacting to, changes in our business and the factors that affect the profitability of our business; |
• | limit our ability to obtain any additional debt or equity financing we may need in the future for working capital, debt refinancing, capital expenditures, acquisitions, redevelopments or other general corporate purposes or to obtain such financing on favorable terms; and/or |
• | limit our flexibility in conducting our business, which may place us at a disadvantage compared to competitors with less debt or debt with less restrictive terms. |
• | relating to the maintenance of property securing a mortgage; |
• | restricting our ability to pledge assets or create liens; |
• | restricting our ability to incur additional debt; |
• | restricting our ability to amend or modify existing leases at properties securing a mortgage; |
• | restricting our ability to enter into transactions with affiliates; and |
• | restricting our ability to consolidate, merge or sell all or substantially all of our assets. |
• | contractor changes may delay the completion of development projects and increase overall costs; |
• | significant time lag between commencement and stabilization subjects us to greater risks due to fluctuations in the general economy; |
• | failure or inability to obtain construction or permanent financing on favorable terms; |
• | failure or inability to obtain public funding from governmental agencies to fund infrastructure projects, including expected public funding in connection with our development at Assembly Row; |
• | expenditure of money and time on projects that may never be completed; |
• | the third-party developer of residential buildings may not deliver or may encounter delays in delivering residential space as planned; |
• | difficulty securing key anchor or other tenants may impact occupancy rates and projected revenue; |
• | inability to achieve projected rental rates or anticipated pace of lease-up; |
• | higher than estimated construction or operating costs, including labor and material costs; and |
• | possible delay in completion of a project because of a number of factors, including weather, labor disruptions, construction delays or delays in receipt of zoning or other regulatory approvals, acts of terror or other acts of violence, or acts of God (such as fires, earthquakes or floods). |
• | our estimate of the costs to improve, reposition or redevelop a property may prove to be too low, or the time we estimate to complete the improvement, repositioning or redevelopment may be too short. As a result, the property may fail to achieve the returns we have projected, either temporarily or for a longer time; |
• | we may not be able to identify suitable properties to acquire or may be unable to complete the acquisition of the properties we identify; |
• | we may not be able to integrate an acquisition into our existing operations successfully; |
• | properties we redevelop or acquire may fail to achieve the occupancy or rental rates we project, within the time frames we project, at the time we make the decision to invest, which may result in the properties’ failure to achieve the returns we projected; |
• | our pre-acquisition evaluation of the physical condition of each new investment may not detect certain defects or identify necessary repairs until after the property is acquired, which could significantly increase our total acquisition costs or decrease cash flow from the property; and |
• | our investigation of a property or building prior to our acquisition, and any representations we may receive from the seller of such building or property, may fail to reveal various liabilities, which could reduce the cash flow from the property or increase our acquisition cost. |
• | general economic and financial market conditions; |
• | level and trend of interest rates; |
• | our ability to access the capital markets to raise additional capital; |
• | the issuance of additional equity or debt securities; |
• | changes in our funds from operations (“FFO”) or earnings estimates; |
• | changes in our debt or analyst ratings; |
• | our financial condition and performance; |
• | market perception of our business compared to other REITs; and/or |
• | market perception of REITs, in general, compared to other investment alternatives. |
• | economic downturns in general, or in the areas where our properties are located; |
• | adverse changes in local real estate market conditions, such as an oversupply or reduction in demand; |
• | changes in tenant preferences that reduce the attractiveness of our properties to tenants; |
• | zoning or regulatory restrictions; |
• | decreases in market rental rates; |
• | weather conditions that may increase or decrease energy costs and other weather-related expenses; |
• | costs associated with the need to periodically repair, renovate and re-lease space; and |
• | increases in the cost of adequate maintenance, insurance and other operating costs, including real estate taxes, associated with one or more properties, which may occur even when circumstances such as market factors and competition cause a reduction in revenues from one or more properties, although real estate taxes typically do not increase upon a reduction in such revenues. |
• | reduce properties available for acquisition; |
• | increase the cost of properties available for acquisition; |
• | reduce rents payable to us; |
• | interfere with our ability to attract and retain tenants; |
• | lead to increased vacancy rates at our properties; and |
• | adversely affect our ability to minimize expenses of operation. |
• | enter into new anchor tenant leases, modify existing anchor tenant leases or enforce remedies against anchor tenants; |
• | make certain repairs, renovations or other changes or improvements to properties; and |
• | sell or finance the property with secured debt. |
• | we would not be allowed a deduction for distributions to shareholders in computing taxable income; |
• | we would be subject to federal income tax at regular corporate rates; |
• | we could be subject to the federal alternative minimum tax; |
• | unless we are entitled to relief under specific statutory provisions, we could not elect to be taxed as a REIT for four taxable years following the year during which we were disqualified; |
• | we could be required to pay significant income taxes, which would substantially reduce the funds available for investment or for distribution to our shareholders for each year in which we failed or were not permitted to qualify; and |
• | we would no longer be required by law to make any distributions to our shareholders. |
• | our income may not be matched by our related expenses at the time the income is considered received for purposes of determining taxable income; and |
• | non-deductible capital expenditures, creation of reserves, or debt service requirements may reduce available cash but not taxable income. |
• | our financial condition and results of future operations; |
• | the performance of lease terms by tenants; |
• | the terms of our loan covenants; and |
• | our ability to acquire, finance, develop or redevelop and lease additional properties at attractive rates. |
• | the REIT ownership limit described above; |
• | authorization of the issuance of our preferred shares with powers, preferences or rights to be determined by the Board of Trustees; |
• | special meetings of our shareholders may be called only by the chairman of the board, the chief executive officer, the president, by one-third of the trustees or by shareholders possessing no less than 25% of all the votes entitled to be cast at the meeting; |
• | the Board of Trustees, without a shareholder vote, can classify or reclassify unissued shares of beneficial interest, including the reclassification of common shares into preferred shares and vice-versa; |
• | a two-thirds shareholder vote is required to approve some amendments to the declaration of trust; and |
• | advance-notice requirements for proposals to be presented at shareholder meetings. |
State | Number of Projects | Gross Leasable Area | Percentage of Gross Leasable Area | ||||||
(In square feet) | |||||||||
Maryland | 18 | 3,882,000 | 19.9 | % | |||||
Virginia | 15 | 3,581,000 | 18.3 | % | |||||
California | 14 | 3,378,000 | 17.3 | % | |||||
Pennsylvania(1) | 10 | 2,298,000 | 11.7 | % | |||||
New Jersey | 4 | 1,388,000 | 7.1 | % | |||||
Massachusetts | 7 | 1,388,000 | 7.1 | % | |||||
New York | 6 | 1,187,000 | 6.1 | % | |||||
Illinois | 4 | 751,000 | 3.8 | % | |||||
Florida | 3 | 678,000 | 3.5 | % | |||||
Connecticut(1) | 2 | 302,000 | 1.5 | % | |||||
Michigan | 1 | 217,000 | 1.1 | % | |||||
Texas | 1 | 183,000 | 0.9 | % | |||||
District of Columbia | 2 | 168,000 | 0.9 | % | |||||
North Carolina | 1 | 153,000 | 0.8 | % | |||||
Total | 88 | 19,554,000 | 100.0 | % |
(1) | Additionally, we own two participating mortgages totaling approximately $29.5 million secured by multiple buildings in Manayunk, Pennsylvania, and an $11.7 million mortgage secured by a shopping center in Norwalk, Connecticut. |
Year of Lease Expiration | Leased Square Footage Expiring | Percentage of Leased Square Footage Expiring | Annualized Base Rent Represented by Expiring Leases | Percentage of Annualized Base Rent Represented by Expiring Leases | |||||||||
2013 | 1,188,000 | 6 | % | 30,182,000 | 7 | % | |||||||
2014 | 2,368,000 | 13 | % | 53,683,000 | 12 | % | |||||||
2015 | 1,824,000 | 10 | % | 44,034,000 | 10 | % | |||||||
2016 | 1,982,000 | 11 | % | 51,753,000 | 12 | % | |||||||
2017 | 2,611,000 | 14 | % | 63,516,000 | 14 | % | |||||||
2018 | 2,017,000 | 11 | % | 42,232,000 | 9 | % | |||||||
2019 | 1,097,000 | 6 | % | 25,521,000 | 6 | % | |||||||
2020 | 854,000 | 5 | % | 20,940,000 | 5 | % | |||||||
2021 | 974,000 | 5 | % | 27,674,000 | 6 | % | |||||||
2022 | 1,200,000 | 6 | % | 29,630,000 | 7 | % | |||||||
Thereafter | 2,390,000 | 13 | % | 51,886,000 | 12 | % | |||||||
Total | 18,505,000 | 100 | % | $ | 441,051,000 | 100 | % |
Property, City, State, Zip Code | Year Completed | Year Acquired | Square Feet(1) /Apartment Units | Average Rent Per Square Foot(2) | Percentage Leased(3) | Principal Tenant(s) | ||||||
California | ||||||||||||
150 Post Street San Francisco, CA 94108 | 1908, 1965 | 1997 | 102,000 | $42.51 | 95% | Brooks Brothers H & M | ||||||
Colorado Blvd Pasadena, CA 91103(4) | 1905-1988 | 1996/1998 | 69,000 | $38.11 | 99% | Pottery Barn Banana Republic | ||||||
Crow Canyon Commons San Ramon, CA 94583(11) | 1980-2006 | 2005/2007 | 242,000 | $19.81 | 94% | Lucky Loehmann’s Dress Shop Rite Aid | ||||||
East Bay Bridge Emeryville & Oakland, CA(11) | 1994-1995, 2010, 2012 | 2012 | 438,000 | $15.37 | 100% | Home Depot Michaels Pak-N-Save Target | ||||||
Escondido Promenade Escondido, CA 92029(5) | 1987 | 1996/2010 | 297,000 | $21.99 | 97% | TJ Maxx Toys R Us Dick's Sporting Goods Ross Dress For Less | ||||||
Fifth Avenue San Diego, CA 92101 | 1888-1998 | 1996 | 17,000 | $47.66 | 100% | Urban Outfitters | ||||||
Hermosa Avenue Hermosa Beach, CA 90254 | 1922 | 1997 | 22,000 | $35.73 | 100% | |||||||
Hollywood Blvd Hollywood, CA 90028(6) | 1929, 1991 | 1999 | 140,000 | $30.69 | 91% | DSW L.A. Fitness Fresh & Easy | ||||||
Kings Court Los Gatos, CA 95032(4)(7) | 1960 | 1998 | 78,000 | $29.30 | 94% | Lunardi’s Supermarket CVS | ||||||
Old Town Center Los Gatos, CA 95030 | 1962, 1998 | 1997 | 96,000 | $34.56 | 89% | Gap Banana Republic Anthropologie | ||||||
Plaza El Segundo El Segundo, CA 90245 (5)(11) | 2006-2007 | 2011 | 381,000 | $37.06 | 99% | H&M Anthropologie Best Buy HomeGoods Whole Foods Dick's Sporting Goods Container Store | ||||||
Santana Row—Retail San Jose, CA 95128 | 2002, 2009 | 1997 | 647,000 | $47.34 | 98% | H&M Crate & Barrel Container Store Best Buy CineArts Theatre Hotel Valencia | ||||||
Santana Row—Residential San Jose, CA 95128 | 1999-2009, 2011 | 1997, 2012 | 450 units | N/A | 94% | |||||||
Third Street Promenade Santa Monica, CA 90401 | 1888-2000 | 1996-2000 | 210,000 | $64.92 | 99% | Abercrombie & Fitch J. Crew Old Navy Banana Republic | ||||||
Westgate San Jose, CA 95129 | 1960-1966 | 2004 | 639,000 | $12.83 | 92% | Target Walmart Burlington Coat Factory Ross Dress For Less Michaels Nordstrom Rack | ||||||
Connecticut | ||||||||||||
Bristol Bristol, CT 06010 | 1959 | 1995 | 266,000 | $12.35 | 94% | Stop & Shop TJ Maxx | ||||||
Greenwich Avenue Greenwich Avenue, CT 06830 | 1968 | 1995 | 36,000 | $61.00 | 100% | Saks Fifth Avenue | ||||||
Property, City, State, Zip Code | Year Completed | Year Acquired | Square Feet(1) /Apartment Units | Average Rent Per Square Foot(2) | Percentage Leased(3) | Principal Tenant(s) | ||||||
District of Columbia | ||||||||||||
Friendship Center Washington, DC 20015 | 1998 | 2001 | 119,000 | $28.92 | 100% | DSW Maggiano’s Nordstrom Rack | ||||||
Sam’s Park & Shop Washington, DC 20008 | 1930 | 1995 | 49,000 | $41.08 | 100% | Petco | ||||||
Florida | ||||||||||||
Courtyard Shops Wellington, FL 33414 | 1990, 1998 | 2008 | 130,000 | $20.26 | 89% | Publix | ||||||
Del Mar Village Boca Raton, FL 33433 | 1982, 1994 & 2007 | 2008 | 179,000 | $15.55 | 85% | Winn Dixie CVS | ||||||
Tower Shops Davie, FL 33324 | 1989 | 2011 | 369,000 | $16.49 | 100% | Ulta Best Buy DSW Old Navy Ross Dress For Less TJ Maxx | ||||||
Illinois | ||||||||||||
Crossroads Highland Park, IL 60035 | 1959 | 1993 | 168,000 | $20.76 | 93% | Golfsmith Guitar Center L.A. Fitness | ||||||
Finley Square Downers Grove, IL 60515 | 1974 | 1995 | 314,000 | $10.50 | 98% | Bed, Bath & Beyond Petsmart Buy Buy Baby | ||||||
Garden Market Western Springs, IL 60558 | 1958 | 1994 | 140,000 | $12.40 | 95% | Dominick’s Walgreens | ||||||
North Lake Commons Lake Zurich, IL 60047 | 1989 | 1994 | 129,000 | $12.03 | 89% | Dominick’s | ||||||
Maryland | ||||||||||||
Bethesda Row Bethesda, MD 20814(4) | 1945-1991 2001 | 1993/2006 2008/2010 | 531,000 | $45.55 | 98% | Apple Computer Barnes & Noble Equinox Giant Food Landmark Theater | ||||||
Bethesda Row Residential Bethesda, MD 20814 | 2008 | 1993 | 180 units | N/A | 96% | |||||||
Congressional Plaza Rockville, MD 20852(5) | 1965 | 1965 | 329,000 | $34.31 | 99% | Buy Buy Baby Last Call Studio by Neiman Marcus Container Store The Fresh Market | ||||||
Congressional Plaza Residential Rockville, MD 20852(5) | 2003 | 1965 | 146 units | N/A | 99% | |||||||
Courthouse Center Rockville, MD 20852 | 1975 | 1997 | 36,000 | $18.40 | 87% | |||||||
Federal Plaza Rockville, MD 20852 | 1970 | 1989 | 248,000 | $32.48 | 97% | Micro Center Ross Dress For Less TJ Maxx Trader Joe’s | ||||||
Free State Shopping Center Bowie, MD 20715(9) | 1970 | 2007 | 279,000 | $16.18 | 86% | Giant Food TJ Maxx Ross Dress For Less Office Depot | ||||||
Gaithersburg Square Gaithersburg, MD 20878 | 1966 | 1993 | 207,000 | $25.44 | 78% | Bed, Bath & Beyond Ross Dress For Less | ||||||
Governor Plaza Glen Burnie, MD 21961 | 1963 | 1985 | 267,000 | $17.47 | 100% | Aldi L.A. Fitness Dick’s Sporting Goods | ||||||
Laurel Centre Laurel, MD 20707 | 1956 | 1986 | 388,000 | $20.88 | 84% | L.A. Fitness Giant Food Marshalls | ||||||
Mid-Pike Plaza/Pike & Rose Rockville, MD 20852 | 1963 | 1982/2007 | 119,000 | $30.50 | 100% | Toys R Us | ||||||
Montrose Crossing Rockville, MD 20852 (5)(11) | 1960-1979, 1996, 2011 | 2011 | 357,000 | $22.55 | 100% | A.C. Moore Giant Food Sports Authority Barnes & Noble Marshalls |
Property, City, State, Zip Code | Year Completed | Year Acquired | Square Feet(1) /Apartment Units | Average Rent Per Square Foot(2) | Percentage Leased(3) | Principal Tenant(s) | ||||||
Perring Plaza Baltimore, MD 21134 | 1963 | 1985 | 395,000 | $12.87 | 95% | Micro Center Burlington Coat Factory Home Depot Shoppers Food Warehouse Jo-Ann Stores | ||||||
Plaza Del Mercado Silver Spring, MD 20906(9)(11) | 1969 | 2004 | 96,000 | $26.32 | 64% | CVS | ||||||
Quince Orchard Gaithersburg, MD 20877(4) | 1975 | 1993 | 261,000 | $19.16 | 79% | L.A. Fitness Staples | ||||||
Rockville Town Square Rockville, MD 20852 (8) | 2006-2007 | 2006-2007 | 181,000 | $32.10 | 96% | Dawson's Market CVS Gold’s Gym | ||||||
Rollingwood Apartments Silver Spring, MD 20910 9 three-story buildings(11) | 1960 | 1971 | 282 units | N/A | 94% | |||||||
THE AVENUE at White Marsh Baltimore, MD 21236(7)(11) | 1997 | 2007 | 297,000 | $21.63 | 100% | AMC Loews Old Navy Barnes & Noble A.C. Moore | ||||||
The Shoppes at Nottingham Square Baltimore, MD 21236 | 2005-2006 | 2007 | 32,000 | $45.00 | 100% | |||||||
White Marsh Other Baltimore, MD 21236 | 1985 | 2007 | 70,000 | $29.98 | 94% | |||||||
White Marsh Plaza Baltimore, MD 21236(11) | 1987 | 2007 | 80,000 | $20.47 | 99% | Giant Food | ||||||
Wildwood Bethesda, MD 20814(11) | 1958 | 1969 | 84,000 | $85.73 | 96% | CVS Balducci’s | ||||||
Massachusetts | ||||||||||||
Assembly Square Marketplace/ Assembly Row Somerville, MA 02145 | 2005 | 2005-2011 | 334,000 | $17.38 | 100% | Bed, Bath & Beyond Christmas Tree Shops Kmart Staples TJ Maxx A.C. Moore Sports Authority | ||||||
Atlantic Plaza North Reading, MA 01864(9)(11) | 1960 | 2004 | 123,000 | $16.83 | 73% | Stop & Shop | ||||||
Campus Plaza Bridgewater, MA 02324(9) | 1970 | 2004 | 116,000 | $13.69 | 100% | Roche Brothers Burlington Coat Factory | ||||||
Chelsea Commons Chelsea, MA 02150(11) | 1962-1969, 2008 | 2006-2008 | 222,000 | $11.10 | 100% | Sav-A-Lot Home Depot Planet Fitness | ||||||
Dedham Dedham, MA 02026 | 1959 | 1993 | 242,000 | $15.14 | 95% | Star Market | ||||||
Linden Square Wellesley, MA 02481 | 1960, 2008 | 2006 | 223,000 | $43.79 | 94% | Roche Brothers Supermarket CVS | ||||||
North Dartmouth North Dartmouth, MA 02747 | 2004 | 2006 | 48,000 | $15.71 | 100% | Stop & Shop | ||||||
Pleasant Shops Weymouth, MA 02190(9) | 1974 | 2004 | 130,000 | $13.84 | 93% | Whole Foods Marshalls | ||||||
Queen Anne Plaza Norwell, MA 02061 | 1967 | 1994 | 149,000 | $16.09 | 94% | HomeGoods TJ Maxx Hannaford | ||||||
Saugus Plaza Saugus, MA 01906 | 1976 | 1996 | 170,000 | $11.41 | 99% | Kmart Super Stop & Shop | ||||||
Michigan | ||||||||||||
Gratiot Plaza Roseville, MI 48066 | 1964 | 1973 | 217,000 | $11.80 | 99% | Bed, Bath & Beyond Best Buy Kroger DSW | ||||||
North Carolina | ||||||||||||
Eastgate Chapel Hill, NC 27514 | 1963 | 1986 | 153,000 | $22.59 | 95% | Stein Mart Trader Joe’s | ||||||
Property, City, State, Zip Code | Year Completed | Year Acquired | Square Feet(1) /Apartment Units | Average Rent Per Square Foot(2) | Percentage Leased(3) | Principal Tenant(s) | ||||||
New Jersey | ||||||||||||
Brick Plaza Brick Township, NJ 08723(4)(11) | 1958 | 1989 | 414,000 | $15.60 | 91% | A&P Supermarket Barnes & Noble AMC Loews Sports Authority | ||||||
Ellisburg Circle Cherry Hill, NJ 08034 | 1959 | 1992 | 267,000 | $13.74 | 74% | Buy Buy Baby Stein Mart | ||||||
Mercer Mall Lawrenceville, NJ 08648(4)(8) | 1975 | 2003 | 500,000 | $20.95 | 96% | Raymour & Flanigan Bed, Bath & Beyond DSW TJ Maxx Shop Rite | ||||||
Troy Parsippany-Troy, NJ 07054 | 1966 | 1980 | 207,000 | $20.32 | 100% | Pathmark L.A. Fitness | ||||||
New York | ||||||||||||
Forest Hills Forest Hills, NY 11375 | 1937-1987 | 1997 | 48,000 | $21.63 | 100% | Midway Theatre | ||||||
Fresh Meadows Queens, NY 11365 | 1949 | 1997 | 407,000 | $27.90 | 99% | Modell's AMC Loews Kohl’s Michaels | ||||||
Greenlawn Plaza Greenlawn, NY 11743(9)(11) | 1975, 2004 | 2006 | 106,000 | $16.75 | 98% | Waldbaum’s Tuesday Morning | ||||||
Hauppauge Hauppauge, NY 11788(11) | 1963 | 1998 | 133,000 | $25.50 | 100% | Shop Rite A.C. Moore | ||||||
Huntington Huntington, NY 11746 | 1962 | 1988/2007 | 279,000 | $24.65 | 100% | Nordstrom Rack Bed, Bath & Beyond Buy Buy Baby Michaels | ||||||
Huntington Square East Northport, NY 11731(4) | 1980, 2007 | 2010 | 74,000 | $26.10 | 93% | Barnes & Noble | ||||||
Melville Mall Huntington, NY 11747(10)(11) | 1974 | 2006 | 246,000 | $18.74 | 100% | Dick's Sporting Goods Kohl’s Marshalls Waldbaum's | ||||||
Pennsylvania | ||||||||||||
Andorra Philadelphia, PA 19128 | 1953 | 1988 | 267,000 | $15.12 | 93% | Acme Markets Kohl’s Staples L.A. Fitness | ||||||
Bala Cynwyd Bala Cynwyd, PA 19004 | 1955 | 1993 | 296,000 | $22.18 | 98% | Acme Markets Lord & Taylor Michaels L.A. Fitness | ||||||
Flourtown Flourtown, PA 19031 | 1957 | 1980 | 160,000 | $16.38 | 97% | Giant Food | ||||||
Lancaster Lancaster, PA 17601(8) | 1958 | 1980 | 127,000 | $16.77 | 100% | Giant Food Michaels | ||||||
Langhorne Square Levittown, PA 19056 | 1966 | 1985 | 219,000 | $14.96 | 93% | Marshalls Redner’s Warehouse Market | ||||||
Lawrence Park Broomall, PA 19008(11) | 1972 | 1980 | 353,000 | $18.27 | 98% | Acme Markets TJ Maxx HomeGoods Kaplan Career Institute | ||||||
Northeast Philadelphia, PA 19114 | 1959 | 1983 | 288,000 | $12.15 | 97% | Burlington Coat Factory Home Gallery Marshalls | ||||||
Town Center of New Britain New Britain, PA 18901 | 1969 | 2006 | 124,000 | $9.29 | 89% | Giant Food Rite Aid | ||||||
Willow Grove Willow Grove, PA 19090 | 1953 | 1984 | 212,000 | $18.08 | 97% | Home Goods Marshalls Barnes & Noble | ||||||
Wynnewood Wynnewood, PA 19096(11) | 1948 | 1996 | 252,000 | $25.49 | 86% | Bed, Bath & Beyond Giant Food Old Navy |
Property, City, State, Zip Code | Year Completed | Year Acquired | Square Feet(1) /Apartment Units | Average Rent Per Square Foot(2) | Percentage Leased(3) | Principal Tenant(s) | ||||||
Texas | ||||||||||||
Houston Street San Antonio, TX 78205 | 1890-1935 | 1998 | 183,000 | $23.56 | 90% | Hotel Valencia Walgreens | ||||||
Virginia | ||||||||||||
29th Place (Shoppers’ World) Charlottesville, VA 22091(11) | 1975-2001 | 2007 | 169,000 | $16.14 | 97% | DSW Stein Mart Staples | ||||||
Barcroft Plaza Falls Church, VA 22041(9)(11) | 1963, 1972 & 1990 | 2006-2007 | 100,000 | $22.95 | 89% | Harris Teeter Bank of America | ||||||
Barracks Road Charlottesville, VA 22905(11) | 1958 | 1985 | 487,000 | $22.36 | 99% | Anthropologie Bed, Bath & Beyond Harris Teeter Kroger Barnes & Noble Old Navy Michaels Ulta | ||||||
Falls Plaza/Falls Plaza—East Falls Church, VA 22046 | 1960-1962 | 1967/1972 | 144,000 | $31.54 | 100% | Giant Food CVS Staples | ||||||
Idylwood Plaza Falls Church, VA 22030(11) | 1991 | 1994 | 73,000 | $42.34 | 100% | Whole Foods | ||||||
Leesburg Plaza Leesburg, VA 20176(11) | 1967 | 1998 | 236,000 | $23.57 | 98% | Giant Food Pier 1 Imports Office Depot Petsmart | ||||||
Loehmann’s Plaza Fairfax, VA 22042(11) | 1971 | 1983 | 258,000 | $26.77 | 93% | L.A. Fitness Giant Food Loehmann’s Dress Shop | ||||||
Mount Vernon/South Valley/ 7770 Richmond Hwy Alexandria, VA 22306(4)(7) | 1966, 1972,1987 & 2001 | 2003/2006 | 572,000 | $15.91 | 92% | Shoppers Food Warehouse Bed, Bath & Beyond Michaels Home Depot TJ Maxx Gold’s Gym Staples | ||||||
Old Keene Mill Springfield, VA 22152 | 1968 | 1976 | 92,000 | $34.20 | 100% | Whole Foods Walgreens | ||||||
Pan Am Fairfax, VA 22031 | 1979 | 1993 | 227,000 | $21.10 | 100% | Michaels Micro Center Safeway | ||||||
Pentagon Row Arlington, VA 22202(11) | 2001-2002 | 1998/2010 | 296,000 | $35.98 | 99% | Harris Teeter Bed, Bath & Beyond L.A. Fitness DSW | ||||||
Pike 7 Plaza Vienna, VA 22180(7) | 1968 | 1997 | 164,000 | $40.32 | 100% | DSW Staples TJ Maxx | ||||||
Shops at Willow Lawn Richmond, VA 23230 | 1957 | 1983 | 441,000 | $16.32 | 94% | Kroger Old Navy Ross Dress For Less Staples | ||||||
Tower Shopping Center Springfield, VA 22150 | 1960 | 1998 | 112,000 | $24.27 | 90% | Talbots | ||||||
Tyson’s Station Falls Church, VA 22043 | 1954 | 1978 | 49,000 | $40.58 | 94% | Trader Joe’s | ||||||
Village at Shirlington Arlington, VA 22206(8) | 1940, 2006-2009 | 1995 | 261,000 | $32.94 | 95% | AMC Loews Carlyle Grand Café Harris Teeter | ||||||
Total All Regions—Retail(12) | 19,554,000 | $23.83 | 95% | |||||||||
Total All Regions—Residential | 1,058 units | 95% |
(1) | Represents the physical square footage of the commercial portion of the property, which may differ from the gross leasable square footage used to express percentage leased. Some of our properties include office space which is included in this square footage but is not material in total. |
(2) | Average base rent is calculated as the aggregate, annualized in-place contractual (defined as cash basis including adjustments for concessions) minimum rent for all occupied spaces divided by the aggregate GLA of all occupied spaces. |
(3) | Retail percentage leased is expressed as a percentage of rentable commercial square feet occupied or subject to a lease under which rent is currently payable and includes square feet covered by leases for stores not yet opened. Residential percentage leased is expressed as a percentage of units occupied or subject to a lease. |
(4) | All or a portion of this property is owned pursuant to a ground lease. |
(5) | We own the controlling interest in this center. |
(6) | We own a 90% general and limited partnership interest in these buildings. |
(7) | We own all or a portion of this property in a “downREIT” partnership, of which a wholly owned subsidiary of the Trust is the sole general partner, with third party partners holding operating partnership units. |
(8) | All or a portion of this property is subject to a capital lease obligation. |
(9) | Properties acquired through a joint venture arrangement with affiliates of a discretionary fund created and advised by ING Clarion Partners. |
(10) | The Trust controls Melville Mall through a 20 year master lease and secondary financing to the owner. Because the Trust controls the activities that most significantly impact this property and retains substantially all of the economic benefit and risk associated with it, we consolidate this property and its operations. |
(11) | All or a portion of this property is encumbered by a mortgage loan. |
(12) | Aggregate information is calculated on a GLA weighted-average basis, excluding properties acquired through a joint venture arrangement with affiliates of a discretionary fund created and advised by ING Clarion Partners. |
Price Per Share | Dividends Declared Per Share | ||||||||||
High | Low | ||||||||||
2012 | |||||||||||
Fourth quarter | $ | 110.03 | $ | 99.82 | $ | 0.730 | |||||
Third quarter | $ | 109.49 | $ | 103.57 | $ | 0.730 | |||||
Second quarter | $ | 104.09 | $ | 94.95 | $ | 0.690 | |||||
First quarter | $ | 97.84 | $ | 89.23 | $ | 0.690 | |||||
2011 | |||||||||||
Fourth quarter | $ | 92.45 | $ | 80.15 | $ | 0.690 | |||||
Third quarter | $ | 90.55 | $ | 75.31 | $ | 0.690 | |||||
Second quarter | $ | 88.12 | $ | 80.21 | $ | 0.670 | |||||
First quarter | $ | 84.18 | $ | 76.14 | $ | 0.670 |
Year Ended December 31, | |||||||
2012 | 2011 | ||||||
Ordinary dividend | $ | 2.772 | $ | 2.349 | |||
Ordinary dividend eligible for 15% tax rate | — | 0.027 | |||||
Return of capital | — | 0.162 | |||||
Capital gain | 0.028 | 0.162 | |||||
$ | 2.800 | $ | 2.700 |
Year Ended December 31, | ||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
(In thousands, except per share data and ratios) | ||||||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Rental income | $ | 582,335 | $ | 538,701 | $ | 522,651 | $ | 510,777 | $ | 499,100 | ||||||||||||||
Property operating income(1) | $ | 428,459 | $ | 382,890 | $ | 372,615 | $ | 362,359 | $ | 353,373 | ||||||||||||||
Income from continuing operations | $ | 144,372 | $ | 131,554 | $ | 125,851 | $ | 101,325 | $ | 119,655 | ||||||||||||||
Gain on sale of real estate | $ | 11,860 | $ | 15,075 | $ | 1,410 | $ | 1,298 | $ | 12,572 | ||||||||||||||
Net income | $ | 156,232 | $ | 149,612 | $ | 128,237 | $ | 103,872 | $ | 135,153 | ||||||||||||||
Net income attributable to the Trust | $ | 151,925 | $ | 143,917 | $ | 122,790 | $ | 98,304 | $ | 129,787 | ||||||||||||||
Net income available for common shareholders | $ | 151,384 | $ | 143,376 | $ | 122,249 | $ | 97,763 | $ | 129,246 | ||||||||||||||
Net cash provided by operating activities | $ | 296,633 | $ | 244,711 | $ | 256,735 | $ | 256,765 | $ | 228,285 | ||||||||||||||
Net cash used in investing activities | $ | (273,558 | ) | $ | (196,369 | ) | $ | (187,088 | ) | $ | (127,341 | ) | $ | (207,567 | ) | |||||||||
Net cash (used in) provided by financing activities | $ | (53,893 | ) | $ | 3,667 | $ | (189,239 | ) | $ | (9,258 | ) | $ | (56,186 | ) | ||||||||||
Dividends declared on common shares | $ | 182,813 | $ | 171,335 | $ | 163,382 | $ | 157,638 | $ | 148,444 | ||||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||||||
Basic | 63,881 | 62,438 | 61,182 | 59,704 | 58,665 | |||||||||||||||||||
Diluted | 64,056 | 62,603 | 61,324 | 59,830 | 58,889 | |||||||||||||||||||
Earnings per common share, basic: | ||||||||||||||||||||||||
Continuing operations | $ | 2.17 | $ | 2.00 | $ | 1.95 | $ | 1.59 | $ | 1.93 | ||||||||||||||
Discontinued operations | — | 0.29 | 0.03 | 0.04 | 0.26 | |||||||||||||||||||
Gain on sale of real estate | 0.19 | — | 0.01 | — | — | |||||||||||||||||||
Total | $ | 2.36 | $ | 2.29 | $ | 1.99 | $ | 1.63 | $ | 2.19 | ||||||||||||||
Earnings per common share, diluted: | ||||||||||||||||||||||||
Continuing operations | $ | 2.16 | $ | 1.99 | $ | 1.94 | $ | 1.59 | $ | 1.93 | ||||||||||||||
Discontinued operations | — | 0.29 | 0.03 | 0.04 | 0.26 | |||||||||||||||||||
Gain on sale of real estate | 0.19 | — | 0.01 | — | — | |||||||||||||||||||
Total | $ | 2.35 | $ | 2.28 | $ | 1.98 | $ | 1.63 | $ | 2.19 | ||||||||||||||
Dividends declared per common share | $ | 2.84 | $ | 2.72 | $ | 2.66 | $ | 2.62 | $ | 2.52 | ||||||||||||||
Other Data: | ||||||||||||||||||||||||
Funds from operations available to common shareholders(2)(3) | $ | 277,237 | $ | 251,576 | $ | 239,210 | $ | 211,065 | $ | 228,397 | ||||||||||||||
EBITDA(3)(4) | $ | 410,918 | $ | 374,131 | $ | 352,481 | $ | 328,491 | $ | 344,465 | ||||||||||||||
Adjusted EBITDA(3)(4) | $ | 399,058 | $ | 357,030 | $ | 351,071 | $ | 327,193 | $ | 331,893 | ||||||||||||||
Ratio of EBITDA to combined fixed charges and preferred share dividends(3)(4)(5) | 3.3 | x | 3.5 | x | 3.1 | x | 2.8 | x | 3.2 | x | ||||||||||||||
Ratio of Adjusted EBITDA to combined fixed charges and preferred share dividends(3)(4)(5) | 3.2 | x | 3.3 | x | 3.1 | x | 2.7 | x | 3.1 | x |
As of December 31, | |||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Real estate, at cost | $ | 4,779,674 | $ | 4,426,444 | $ | 3,895,942 | $ | 3,759,234 | $ | 3,673,685 | |||||||||
Total assets | $ | 3,898,565 | $ | 3,666,210 | $ | 3,159,553 | $ | 3,222,309 | $ | 3,092,776 | |||||||||
Mortgages payable and capital lease obligations | $ | 832,482 | $ | 810,616 | $ | 589,441 | $ | 601,884 | $ | 452,810 | |||||||||
Notes payable | $ | 299,575 | $ | 295,159 | $ | 97,881 | $ | 261,745 | $ | 336,391 | |||||||||
Senior notes and debentures | $ | 1,076,545 | $ | 1,004,635 | $ | 1,079,827 | $ | 930,219 | $ | 956,584 | |||||||||
Preferred shares | $ | 9,997 | $ | 9,997 | $ | 9,997 | $ | 9,997 | $ | 9,997 | |||||||||
Shareholders’ equity | $ | 1,310,593 | $ | 1,240,604 | $ | 1,115,768 | $ | 1,151,738 | $ | 1,084,569 | |||||||||
Number of common shares outstanding | 64,815 | 63,544 | 61,526 | 61,242 | 58,986 |
(1) | Property operating income is a non-GAAP measure that consists of rental income, other property income and mortgage interest income, less rental expenses and real estate taxes. This measure is used internally to evaluate the performance of property operations and we consider it to be a significant measure. Property operating income should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. |
(2) | FFO is a supplemental non-GAAP financial measure of real estate companies’ operating performances. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as follows: net income, computed in accordance with U.S. GAAP, plus real estate related depreciation and amortization and excluding extraordinary items and gains on the sale of real estate. We compute FFO in accordance with the NAREIT definition, and we have historically reported our FFO available for common shareholders in addition to our net income. |
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 156,232 | $ | 149,612 | $ | 128,237 | $ | 103,872 | $ | 135,153 | |||||||||
Net income attributable to noncontrolling interests | (4,307 | ) | (5,695 | ) | (5,447 | ) | (5,568 | ) | (5,366 | ) | |||||||||
Gain on sale of real estate | (11,860 | ) | (15,075 | ) | (1,410 | ) | (1,298 | ) | (12,572 | ) | |||||||||
Gain on deconsolidation of VIE | — | (2,026 | ) | — | — | — | |||||||||||||
Depreciation and amortization of real estate assets | 125,611 | 113,188 | 107,187 | 103,104 | 101,450 | ||||||||||||||
Amortization of initial direct costs of leases | 10,935 | 10,432 | 9,552 | 9,821 | 8,771 | ||||||||||||||
Depreciation of joint venture real estate assets | 1,513 | 1,771 | 1,499 | 1,388 | 1,331 | ||||||||||||||
Funds from operations | 278,124 | 252,207 | 239,618 | 211,319 | 228,767 | ||||||||||||||
Dividends on preferred shares | (541 | ) | (541 | ) | (541 | ) | (541 | ) | (541 | ) | |||||||||
Income attributable to operating partnership units | 943 | 981 | 980 | 974 | 950 | ||||||||||||||
Income attributable to unvested shares | (1,289 | ) | (1,071 | ) | (847 | ) | (687 | ) | (779 | ) | |||||||||
Funds from operations available for common shareholders | $ | 277,237 | $ | 251,576 | $ | 239,210 | $ | 211,065 | $ | 228,397 |
(3) | Includes a charge of $0.3 million and $16.4 million in 2010 and 2009, respectively, for adjusting the accrual for litigation regarding a parcel of land located adjacent to Santana Row as well as other costs related to the litigation and appeal process. The matter is further discussed in Note 9 to the consolidated financial statements. |
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 156,232 | $ | 149,612 | $ | 128,237 | $ | 103,872 | $ | 135,153 | |||||||||
Depreciation and amortization | 142,039 | 126,568 | 119,817 | 115,093 | 111,068 | ||||||||||||||
Interest expense | 113,336 | 98,465 | 101,882 | 108,781 | 99,163 | ||||||||||||||
Early extinguishment of debt | — | (296 | ) | 2,801 | 2,639 | — | |||||||||||||
Other interest income | (689 | ) | (218 | ) | (256 | ) | (1,894 | ) | (919 | ) | |||||||||
EBITDA | 410,918 | 374,131 | 352,481 | 328,491 | 344,465 | ||||||||||||||
Gain on sale of real estate | (11,860 | ) | (15,075 | ) | (1,410 | ) | (1,298 | ) | (12,572 | ) | |||||||||
Gain on deconsolidation of VIE | — | (2,026 | ) | — | — | — | |||||||||||||
Adjusted EBITDA | $ | 399,058 | $ | 357,030 | $ | 351,071 | $ | 327,193 | $ | 331,893 |
Payoff Amount | Repayment Date | Maturity Date | |||||
(In millions) | |||||||
Courtyard Shops Mortgage Loan | $ | 6.9 | June 1, 2012 | July 1, 2012 | |||
6.00% Senior Notes | 175.0 | July 16, 2012 | July 16, 2012 | ||||
Mount Vernon Mortgage Loan | 10.2 | October 22, 2012 | April 15, 2028 | ||||
Bethesda Row Mortgage Loan | 20.0 | November 2, 2012 | January 1, 2013 | ||||
Bethesda Row Mortgage Loan | 3.9 | December 3, 2012 | February 1, 2013 | ||||
White Marsh Plaza Mortgage Loan | 9.0 | January 2, 2013 | April 1, 2013 | ||||
$ | 225.0 |
• | growth in our portfolio from property development and redevelopments, |
• | growth in our same-center portfolio, and |
• | expansion of our portfolio through property acquisitions. |
Change | ||||||||||||||
2012 | 2011 | Dollars | % | |||||||||||
(Dollar amounts in thousands) | ||||||||||||||
Rental income | $ | 582,335 | $ | 538,701 | $ | 43,634 | 8.1 | % | ||||||
Other property income | 20,217 | 9,260 | 10,957 | 118.3 | % | |||||||||
Mortgage interest income | 5,466 | 5,098 | 368 | 7.2 | % | |||||||||
Total property revenue | 608,018 | 553,059 | 54,959 | 9.9 | % | |||||||||
Rental expenses | 112,760 | 109,549 | 3,211 | 2.9 | % | |||||||||
Real estate taxes | 66,799 | 60,620 | 6,179 | 10.2 | % | |||||||||
Total property expenses | 179,559 | 170,169 | 9,390 | 5.5 | % | |||||||||
Property operating income | 428,459 | 382,890 | 45,569 | 11.9 | % | |||||||||
Other interest income | 689 | 218 | 471 | 216.1 | % | |||||||||
Income from real estate partnerships | 1,757 | 1,808 | (51 | ) | (2.8 | )% | ||||||||
Interest expense | (113,336 | ) | (98,465 | ) | (14,871 | ) | 15.1 | % | ||||||
Early extinguishment of debt | — | 296 | (296 | ) | (100.0 | )% | ||||||||
General and administrative expense | (31,158 | ) | (28,985 | ) | (2,173 | ) | 7.5 | % | ||||||
Depreciation and amortization | (142,039 | ) | (126,208 | ) | (15,831 | ) | 12.5 | % | ||||||
Total other, net | (284,087 | ) | (251,336 | ) | (32,751 | ) | 13.0 | % | ||||||
Income from continuing operations | 144,372 | 131,554 | 12,818 | 9.7 | % | |||||||||
Discontinued operations - income | — | 957 | (957 | ) | (100.0 | )% | ||||||||
Discontinued operations - gain on deconsolidation of VIE | — | 2,026 | (2,026 | ) | (100.0 | )% | ||||||||
Discontinued operations - gain on sale of real estate | — | 15,075 | (15,075 | ) | (100.0 | )% | ||||||||
Gain on sale of real estate | 11,860 | — | 11,860 | 100.0 | % | |||||||||
Net income | 156,232 | 149,612 | 6,620 | 4.4 | % | |||||||||
Net income attributable to noncontrolling interests | (4,307 | ) | (5,695 | ) | 1,388 | (24.4 | )% | |||||||
Net income attributable to the Trust | $ | 151,925 | $ | 143,917 | $ | 8,008 | 5.6 | % |
• | an increase of $29.3 million attributable to properties acquired in 2011 and 2012, |
• | an increase of $8.9 million at same-center properties due primarily to increased occupancy, higher rental rates on new and renewal leases and an increase in parking income, and |
• | an increase of $4.3 million at redevelopment properties due primarily to increased occupancy at certain properties, mainly our new residential building at Santana Row and higher rental rates on new leases partially offset by lower income from Mid-Pike as the property is prepared for the development of Pike & Rose. |
• | an increase of $3.3 million related to properties acquired in 2011 and 2012, |
• | an increase of $0.9 million in operating costs due primarily to higher demolition costs, |
• | an increase of $0.8 million in marketing expenses at our Assembly Row and Pike & Rose projects, and |
• | an increase of $0.5 million in insurance expenses primarily at same-center properties, |
• | a decrease of $2.0 million in repairs and maintenance at same-center properties primarily due to lower snow removal costs partially offset by higher maintenance costs. |
• | an increase of $12.9 million due to mortgage loans secured by Plaza El Segundo and Montrose Crossing both of which were acquired in 2011, and |
• | an increase of $4.7 million due to higher borrowings, |
• | an increase of $2.0 million in capitalized interest, and |
• | a decrease of $0.7 million due to a lower overall average borrowing rate. |
Change | ||||||||||||||
2011 | 2010 | Dollars | % | |||||||||||
(Dollar amounts in thousands) | ||||||||||||||
Rental income | $ | 538,701 | $ | 522,651 | $ | 16,050 | 3.1 | % | ||||||
Other property income | 9,260 | 14,545 | (5,285 | ) | (36.3 | )% | ||||||||
Mortgage interest income | 5,098 | 4,601 | 497 | 10.8 | % | |||||||||
Total property revenue | 553,059 | 541,797 | 11,262 | 2.1 | % | |||||||||
Rental expenses | 109,549 | 110,519 | (970 | ) | (0.9 | )% | ||||||||
Real estate taxes | 60,620 | 58,663 | 1,957 | 3.3 | % | |||||||||
Total property expenses | 170,169 | 169,182 | 987 | 0.6 | % | |||||||||
Property operating income | 382,890 | 372,615 | 10,275 | 2.8 | % | |||||||||
Other interest income | 218 | 256 | (38 | ) | (14.8 | )% | ||||||||
Income from real estate partnerships | 1,808 | 1,060 | 748 | 70.6 | % | |||||||||
Interest expense | (98,465 | ) | (101,882 | ) | 3,417 | (3.4 | )% | |||||||
Early extinguishment of debt | 296 | (2,801 | ) | 3,097 | (110.6 | )% | ||||||||
General and administrative expense | (28,985 | ) | (24,189 | ) | (4,796 | ) | 19.8 | % | ||||||
Litigation provision | — | (330 | ) | 330 | (100.0 | )% | ||||||||
Depreciation and amortization | (126,208 | ) | (118,878 | ) | (7,330 | ) | 6.2 | % | ||||||
Total other, net | (251,336 | ) | (246,764 | ) | (4,572 | ) | 1.9 | % | ||||||
Income from continuing operations | 131,554 | 125,851 | 5,703 | 4.5 | % | |||||||||
Discontinued operations - income | 957 | 976 | (19 | ) | (1.9 | )% | ||||||||
Discontinued operations - gain on deconsolidation of VIE | 2,026 | — | 2,026 | 100.0 | % | |||||||||
Discontinued operations - gain on sale of real estate | 15,075 | 1,000 | 14,075 | 1,407.5 | % | |||||||||
Gain on sale of real estate | — | 410 | (410 | ) | (100.0 | )% | ||||||||
Net income | 149,612 | 128,237 | 21,375 | 16.7 | % | |||||||||
Net income attributable to noncontrolling interests | (5,695 | ) | (5,447 | ) | (248 | ) | 4.6 | % | ||||||
Net income attributable to the Trust | $ | 143,917 | $ | 122,790 | $ | 21,127 | 17.2 | % |
• | an increase of $7.8 million attributable to properties acquired in 2010 and 2011, |
• | an increase of $5.5 million at redevelopment properties due primarily to increased occupancy at certain properties and higher rental rates on new and renewal leases, and |
• | an increase of $2.8 million at same-center properties due primarily to higher rental rates on new and renewal leases and an increase in percentage rent partially offset by lower recovery income as a result of lower recoverable expenses (primarily snow removal costs). |
• | a decrease of $3.5 million in bad debt expense at same-center properties, |
• | a decrease of $1.4 million in repairs and maintenance at same-center properties primarily due to lower snow removal costs, and |
• | a decrease of $0.8 million in ground rent due to the fourth quarter 2010 purchases of the fee interest in the land under Pentagon Row and a portion of Bethesda Row, |
• | an increase of $2.1 million in marketing expense primarily due to our Assembly Row project and certain same-center properties, |
• | an increase of $1.5 million related to properties acquired in 2010 and 2011, and |
• | an increase of $1.1 million in other operating costs. |
• | a decrease of $5.7 million due to a lower overall weighted average borrowing rate, and |
• | an increase of $1.8 million in capitalized interest, |
• | an increase of $4.1 million due to higher borrowings. |
• | restrictions in our debt instruments or preferred shares may limit us from incurring debt or issuing equity at all, or on acceptable terms under then-prevailing market conditions; and |
• | we may be unable to service additional or replacement debt due to increases in interest rates or a decline in our operating performance. |
Year Ended December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Cash provided by operating activities | $ | 296,633 | $ | 244,711 | |||
Cash used in investing activities | (273,558 | ) | (196,369 | ) | |||
Cash (used in) provided by financing activities | (53,893 | ) | 3,667 | ||||
(Decrease) increase in cash and cash equivalents | (30,818 | ) | 52,009 | ||||
Cash and cash equivalents, beginning of year | 67,806 | 15,797 | |||||
Cash and cash equivalents, end of year | $ | 36,988 | $ | 67,806 |
• | $38.2 million increase in capital investments in 2012, |
• | $34.6 million cash received in October 2011 from our Newbury Street Partnership due to the sale of its properties, |
• | $23.7 million in proceeds from the sales of real estate in 2011, primarily due to the sale of Feasterville Shopping Center, and |
• | $8.7 million payment received in June 2011 related to the refinancing of a mortgage loan receivable, |
• | $22.7 million decrease in acquisitions of real estate as we acquired East Bay Bridge in 2012 compared to three operating properties acquired in 2011, and |
• | $6.9 million in contributions to the Newbury Street Partnership in 2011. |
• | $272.2 million in net proceeds from the term loan in November 2011, |
• | $100.0 million increase in senior note repayments as we repaid the $175.0 million 6.00% senior notes in July 2012 compared to the $75.0 million 4.5% senior notes in February 2011, |
• | $42.7 million decrease in net proceeds from the issuance of common shares due primarily to the sale of 1.7 million shares under our ATM equity program in 2011 compared to 1.0 million in 2012, and |
• | $10.6 million increase in dividends paid to shareholders due to an increase in the dividend rate and increased number of shares outstanding, |
• | $244.8 million in net proceeds from the issuance of 3.00% senior notes in July 2012, |
• | $81.2 million decrease in net repayments on our revolving credit facility, net of financing costs, and |
• | $38.5 million decrease in repayment of mortgages, capital leases and notes payable primarily due to the payoff of three mortgages totaling $78.4 million in 2011 compared to four mortgages totaling $41.0 million in 2012. |
Commitments Due by Period | |||||||||||||||||||
Total | Less Than 1 Year | 1-3 Years | 3-5 Years | After 5 Years | |||||||||||||||
(In thousands) | |||||||||||||||||||
Fixed rate debt (principal and interest)(1) | $ | 2,654,616 | $ | 289,145 | $ | 704,368 | $ | 678,013 | $ | 983,090 | |||||||||
Fixed rate debt - unconsolidated real estate partnership (principal and interest)(2) | 20,002 | 1,056 | 8,272 | 10,674 | — | ||||||||||||||
Capital lease obligations (principal and interest) | 200,757 | 5,787 | 11,575 | 11,585 | 171,810 | ||||||||||||||
Variable rate debt (principal only)(3) | 9,400 | — | — | 9,400 | — | ||||||||||||||
Operating leases | 57,061 | 1,488 | 2,906 | 2,460 | 50,207 | ||||||||||||||
Real estate commitments(4) | 67,500 | — | — | — | 67,500 | ||||||||||||||
Development, redevelopment, and capital improvement obligations | 233,046 | 171,370 | 61,590 | 86 | — | ||||||||||||||
Contractual operating obligations | 21,885 | 14,804 | 6,790 | 257 | 34 | ||||||||||||||
Total contractual obligations | $ | 3,264,267 | $ | 483,650 | $ | 795,501 | $ | 712,475 | $ | 1,272,641 |
(1) | Fixed rate debt includes our $275.0 million term loan as the rate is effectively fixed by two interest rate swap agreements. |
(2) | Amounts reflect our share of principal and interest payments on our unconsolidated joint venture's fixed rate debt. |
(3) | Variable rate debt includes a $9.4 million bond that had an interest rate of 0.21% at December 31, 2012 and our revolving credit facility, which currently has no outstanding balance and bears interest at LIBOR plus 1.15%. |
(4) | A master lease on Melville Mall includes a fixed price put option requiring us to purchase the property for $5.0 million plus the assumption of the owners’ mortgage debt. The current mortgage loan matures on September 1, 2014, is |
Description of Debt | Original Debt Issued | Principal Balance as of December 31, 2012 | Stated Interest Rate as of December 31, 2012 | Maturity Date | |||||||
(Dollars in thousands) | |||||||||||
Mortgages payable (1) | |||||||||||
Secured fixed rate | |||||||||||
White Marsh Plaza (2) | Acquired | $ | 8,970 | 6.04 | % | April 1, 2013 | |||||
Crow Canyon | Acquired | 19,485 | 5.40 | % | August 11, 2013 | ||||||
Idylwood Plaza | 16,910 | 15,987 | 7.50 | % | June 5, 2014 | ||||||
Leesburg Plaza | 29,423 | 27,818 | 7.50 | % | June 5, 2014 | ||||||
Loehmann’s Plaza | 38,047 | 35,972 | 7.50 | % | June 5, 2014 | ||||||
Pentagon Row | 54,619 | 51,640 | 7.50 | % | June 5, 2014 | ||||||
Melville Mall (3) | Acquired | 21,536 | 5.25 | % | September 1, 2014 | ||||||
THE AVENUE at White Marsh | Acquired | 55,336 | 5.46 | % | January 1, 2015 | ||||||
Barracks Road | 44,300 | 38,070 | 7.95 | % | November 1, 2015 | ||||||
Hauppauge | 16,700 | 14,352 | 7.95 | % | November 1, 2015 | ||||||
Lawrence Park | 31,400 | 26,984 | 7.95 | % | November 1, 2015 | ||||||
Wildwood | 27,600 | 23,719 | 7.95 | % | November 1, 2015 | ||||||
Wynnewood | 32,000 | 27,500 | 7.95 | % | November 1, 2015 | ||||||
Brick Plaza | 33,000 | 28,033 | 7.42 | % | November 1, 2015 | ||||||
East Bay Bridge | Acquired | 62,946 | 5.13 | % | March 1, 2016 | ||||||
Plaza El Segundo | Acquired | 175,000 | 6.33 | % | August 5, 2017 | ||||||
Rollingwood Apartments | 24,050 | 22,890 | 5.54 | % | May 1, 2019 | ||||||
29th Place (Shoppers’ World) | Acquired | 5,286 | 5.91 | % | January 31, 2021 | ||||||
Montrose Crossing | 80,000 | 78,755 | 4.20 | % | January 10, 2022 | ||||||
Chelsea | Acquired | 7,454 | 5.36 | % | January 15, 2031 | ||||||
Subtotal | 747,733 | ||||||||||
Net unamortized premium | 13,056 | ||||||||||
Total mortgages payable | 760,789 | ||||||||||
Notes payable | |||||||||||
Unsecured fixed rate | |||||||||||
Term Loan (4) | 275,000 | 275,000 | LIBOR + 1.45% | November 21, 2018 | |||||||
Various (5) | 18,574 | 15,175 | 5.27 | % | Various through 2027 | ||||||
Unsecured variable rate | |||||||||||
Revolving credit facility (6) | 400,000 | — | LIBOR + 1.15% | July 6, 2015 | |||||||
Escondido (municipal bonds) (7) | 9,400 | 9,400 | 0.21 | % | October 1, 2016 | ||||||
Total notes payable | 299,575 | ||||||||||
Senior notes and debentures | |||||||||||
Unsecured fixed rate | |||||||||||
5.40% notes | 135,000 | 135,000 | 5.40 | % | December 1, 2013 | ||||||
5.95% notes | 150,000 | 150,000 | 5.95 | % | August 15, 2014 | ||||||
5.65% notes | 125,000 | 125,000 | 5.65 | % | June 1, 2016 | ||||||
6.20% notes | 200,000 | 200,000 | 6.20 | % | January 15, 2017 | ||||||
5.90% notes | 150,000 | 150,000 | 5.90 | % | April 1, 2020 | ||||||
3.00% notes | 250,000 | 250,000 | 3.00 | % | August 1, 2022 | ||||||
7.48% debentures | 50,000 | 29,200 | 7.48 | % | August 15, 2026 | ||||||
6.82% medium term notes | 40,000 | 40,000 | 6.82 | % | August 1, 2027 | ||||||
Subtotal | 1,079,200 | ||||||||||
Net unamortized discount | (2,655 | ) | |||||||||
Total senior notes and debentures | 1,076,545 | ||||||||||
Capital lease obligations | |||||||||||
Various | 71,693 | Various | Various through 2106 | ||||||||
Total debt and capital lease obligations | $ | 2,208,602 |
1) | Mortgages payable do not include our 30% share ($17.1 million) of the $57.2 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners. |
2) | We repaid the loan at par on January 2, 2013. |
3) | We acquired control of Melville Mall through a 20-year master lease and secondary financing. Because we control the activities that most significantly impact this property and retain substantially all of the economic benefit and risk associated with it, this property is consolidated and the mortgage loan is reflected on the balance sheet, though it is not our legal obligation. |
4) | We entered into two interest rate swap agreements that effectively fix the rate on the term loan at 3.17%. |
5) | The interest rate of 5.3% represents the weighted average interest rate for ten unsecured fixed rate notes payable. These notes mature between January 31, 2013 and June 27, 2027. |
6) | The maximum amount drawn under our revolving credit facility during 2012 was $186.0 million and the weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 1.42%. |
7) | The bonds require monthly interest only payments through maturity. The bonds bear interest at a variable rate determined weekly, which would enable the bonds to be remarketed at 100% of their principal amount. The Escondido Promenade property is not encumbered by a lien. |
Unsecured | Secured | Capital Lease | Total | |||||||||||||
(In thousands) | ||||||||||||||||
2013 | $ | 135,256 | $ | 40,296 | $ | 25 | $ | 175,577 | ||||||||
2014 | 160,249 | 158,855 | 25 | 319,129 | ||||||||||||
2015 | 275 | (1) | 206,007 | 27 | 206,309 | |||||||||||
2016 | 134,702 | 62,412 | 30 | 197,144 | ||||||||||||
2017 | 200,335 | 177,654 | 34 | 378,023 | ||||||||||||
Thereafter | 747,958 | 102,509 | 71,552 | 922,019 | ||||||||||||
$ | 1,378,775 | $ | 747,733 | $ | 71,693 | $ | 2,198,201 | (2) |
1) | Our $400.0 million revolving credit facility matures on July 6, 2015, subject to a one-year extension at our option. As of December 31, 2012, there was nothing drawn under this credit facility. |
2) | The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net premium or discount on certain mortgage loans, senior notes and debentures as of December 31, 2012. |
• | does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); |
• | should not be considered an alternative to net income as an indication of our performance; and |
• | is not necessarily indicative of cash flow as a measure of liquidity or ability to fund cash needs, including the payment of dividends. |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Net income | $ | 156,232 | $ | 149,612 | $ | 128,237 | |||||
Net income attributable to noncontrolling interests | (4,307 | ) | (5,695 | ) | (5,447 | ) | |||||
Gain on sale of real estate | (11,860 | ) | (15,075 | ) | (1,410 | ) | |||||
Gain on deconsolidation of VIE | — | (2,026 | ) | — | |||||||
Depreciation and amortization of real estate assets | 125,611 | 113,188 | 107,187 | ||||||||
Amortization of initial direct costs of leases | 10,935 | 10,432 | 9,552 | ||||||||
Depreciation of joint venture real estate assets | 1,513 | 1,771 | 1,499 | ||||||||
Funds from operations | 278,124 | 252,207 | 239,618 | ||||||||
Dividends on preferred shares | (541 | ) | (541 | ) | (541 | ) | |||||
Income attributable to operating partnership units | 943 | 981 | 980 | ||||||||
Income attributable to unvested shares | (1,289 | ) | (1,071 | ) | (847 | ) | |||||
Funds from operations available for common shareholders | $ | 277,237 | $ | 251,576 | $ | 239,210 | |||||
Weighted average number of common shares, diluted (1) | 64,389 | 62,964 | 61,693 | ||||||||
Funds from operations available for common shareholders, per diluted share | $ | 4.31 | $ | 4.00 | $ | 3.88 |
(1) | The weighted average common shares used to compute FFO per diluted common share includes operating partnership units that were excluded from the computation of diluted EPS. Conversion of these operating partnership units is dilutive in the computation of FFO per diluted common share but is anti-dilutive for the computation of diluted EPS for the periods presented. |
• | pertain to the maintenance of records that accurately and fairly reflect the transactions and dispositions of our assets in reasonable detail; |
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are made only in accordance with the authorization procedures we have established; and |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of any of our assets in circumstances that could have a material adverse effect on our financial statements. |
Federal Realty Investment Trust | |
By: | /S/ DONALD C. WOOD |
Donald C. Wood President, Chief Executive Officer and Trustee |
Signature | Title | Date | ||
/S/ DONALD C. WOOD | President, Chief Executive Officer and | February 12, 2013 | ||
Donald C. Wood | Trustee (Principal Executive Officer) | |||
/S/ JAMES M. TAYLOR, JR. | Executive Vice President-Chief Financial | February 12, 2013 | ||
James M. Taylor, Jr. | Officer and Treasurer (Principal | |||
Financial and Accounting Officer) | ||||
/S/ JOSEPH S. VASSALLUZZO | Non-Executive Chairman | February 12, 2013 | ||
Joseph S. Vassalluzzo | ||||
/S/ JON E. BORTZ | Trustee | February 12, 2013 | ||
Jon E. Bortz | ||||
/S/ DAVID W. FAEDER | Trustee | February 12, 2013 | ||
David W. Faeder | ||||
/S/ KRISTIN GAMBLE | Trustee | February 12, 2013 | ||
Kristin Gamble | ||||
/S/ GAIL P. STEINEL | Trustee | February 12, 2013 | ||
Gail P. Steinel | ||||
/S/ WARREN M. THOMPSON | Trustee | February 12, 2013 | ||
Warren M. Thompson |
Consolidated Financial Statements | Page No. |
Management Assessment Report on Internal Control over Financial Reporting | |
Report of Independent Registered Public Accounting Firm | |
Report of Independent Registered Public Accounting Firm | |
Consolidated Balance Sheets | |
Consolidated Statements of Comprehensive Income | |
Consolidated Statement of Shareholders’ Equity | |
Consolidated Statements of Cash Flows | |
Notes to Consolidated Financial Statements | |
Financial Statement Schedules | |
Schedule III—Summary of Real Estate and Accumulated Depreciation | |
Schedule IV—Mortgage Loans on Real Estate |
• | pertain to the maintenance of records that accurately and fairly reflect the transactions and dispositions of our assets in reasonable detail; |
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are made only in accordance with the authorization procedures we have established; and |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of any of our assets in circumstances that could have a material adverse effect on our financial statements. |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Real estate, at cost | |||||||
Operating (including $278,826 and $263,570 of consolidated variable interest entities, respectively) | $ | 4,490,960 | $ | 4,232,608 | |||
Construction-in-progress | 288,714 | 193,836 | |||||
4,779,674 | 4,426,444 | ||||||
Less accumulated depreciation and amortization (including $12,024 and $4,991 of consolidated variable interest entities, respectively) | (1,224,295 | ) | (1,127,588 | ) | |||
Net real estate | 3,555,379 | 3,298,856 | |||||
Cash and cash equivalents | 36,988 | 67,806 | |||||
Accounts and notes receivable, net | 73,861 | 75,921 | |||||
Mortgage notes receivable, net | 55,648 | 55,967 | |||||
Investment in real estate partnership | 33,169 | 34,352 | |||||
Prepaid expenses and other assets | 132,659 | 121,492 | |||||
Debt issuance costs, net of accumulated amortization of $10,140 and $9,098, respectively | 10,861 | 11,816 | |||||
TOTAL ASSETS | $ | 3,898,565 | $ | 3,666,210 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Liabilities | |||||||
Mortgages payable (including $205,299 and $207,683 of consolidated variable interest entities, respectively) | $ | 760,789 | $ | 747,523 | |||
Capital lease obligations | 71,693 | 63,093 | |||||
Notes payable | 299,575 | 295,159 | |||||
Senior notes and debentures | 1,076,545 | 1,004,635 | |||||
Accounts payable and accrued expenses | 120,929 | 104,660 | |||||
Dividends payable | 47,685 | 44,229 | |||||
Security deposits payable | 12,957 | 12,221 | |||||
Other liabilities and deferred credits | 103,379 | 68,761 | |||||
Total liabilities | 2,493,552 | 2,340,281 | |||||
Commitments and contingencies (Note 9) | |||||||
Redeemable noncontrolling interests | 94,420 | 85,325 | |||||
Shareholders’ equity | |||||||
Preferred shares, authorized 15,000,000 shares, $.01 par: 5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 399,896 shares issued and outstanding | 9,997 | 9,997 | |||||
Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 64,815,446 and 63,544,150 shares issued and outstanding, respectively | 648 | 636 | |||||
Additional paid-in capital | 1,875,525 | 1,764,940 | |||||
Accumulated dividends in excess of net income | (586,970 | ) | (555,541 | ) | |||
Accumulated other comprehensive loss | (12,388 | ) | (3,940 | ) | |||
Total shareholders’ equity of the Trust | 1,286,812 | 1,216,092 | |||||
Noncontrolling interests | 23,781 | 24,512 | |||||
Total shareholders’ equity | 1,310,593 | 1,240,604 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,898,565 | $ | 3,666,210 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands, except per share data) | |||||||||||
REVENUE | |||||||||||
Rental income | $ | 582,335 | $ | 538,701 | $ | 522,651 | |||||
Other property income | 20,217 | 9,260 | 14,545 | ||||||||
Mortgage interest income | 5,466 | 5,098 | 4,601 | ||||||||
Total revenue | 608,018 | 553,059 | 541,797 | ||||||||
EXPENSES | |||||||||||
Rental expenses | 112,760 | 109,549 | 110,519 | ||||||||
Real estate taxes | 66,799 | 60,620 | 58,663 | ||||||||
General and administrative | 31,158 | 28,985 | 24,189 | ||||||||
Litigation provision | — | — | 330 | ||||||||
Depreciation and amortization | 142,039 | 126,208 | 118,878 | ||||||||
Total operating expenses | 352,756 | 325,362 | 312,579 | ||||||||
OPERATING INCOME | 255,262 | 227,697 | 229,218 | ||||||||
Other interest income | 689 | 218 | 256 | ||||||||
Interest expense | (113,336 | ) | (98,465 | ) | (101,882 | ) | |||||
Early extinguishment of debt | — | 296 | (2,801 | ) | |||||||
Income from real estate partnerships | 1,757 | 1,808 | 1,060 | ||||||||
INCOME FROM CONTINUING OPERATIONS | 144,372 | 131,554 | 125,851 | ||||||||
DISCONTINUED OPERATIONS | |||||||||||
Discontinued operations - income | — | 957 | 976 | ||||||||
Discontinued operations - gain on deconsolidation of VIE | — | 2,026 | — | ||||||||
Discontinued operations - gain on sale of real estate | — | 15,075 | 1,000 | ||||||||
Results from discontinued operations | — | 18,058 | 1,976 | ||||||||
INCOME BEFORE GAIN ON SALE OF REAL ESTATE | 144,372 | 149,612 | 127,827 | ||||||||
Gain on sale of real estate | 11,860 | — | 410 | ||||||||
NET INCOME | 156,232 | 149,612 | 128,237 | ||||||||
Net income attributable to noncontrolling interests | (4,307 | ) | (5,695 | ) | (5,447 | ) | |||||
NET INCOME ATTRIBUTABLE TO THE TRUST | 151,925 | 143,917 | 122,790 | ||||||||
Dividends on preferred shares | (541 | ) | (541 | ) | (541 | ) | |||||
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS | $ | 151,384 | $ | 143,376 | $ | 122,249 | |||||
EARNINGS PER COMMON SHARE, BASIC | |||||||||||
Continuing operations | $ | 2.17 | $ | 2.00 | $ | 1.95 | |||||
Discontinued operations | — | 0.29 | 0.03 | ||||||||
Gain on sale of real estate | 0.19 | — | 0.01 | ||||||||
$ | 2.36 | $ | 2.29 | $ | 1.99 | ||||||
Weighted average number of common shares, basic | 63,881 | 62,438 | 61,182 | ||||||||
EARNINGS PER COMMON SHARE, DILUTED | |||||||||||
Continuing operations | $ | 2.16 | $ | 1.99 | $ | 1.94 | |||||
Discontinued operations | — | 0.29 | 0.03 | ||||||||
Gain on sale of real estate | 0.19 | — | 0.01 | ||||||||
$ | 2.35 | $ | 2.28 | $ | 1.98 | ||||||
Weighted average number of common shares, diluted | 64,056 | 62,603 | 61,324 | ||||||||
NET INCOME | $ | 156,232 | $ | 149,612 | $ | 128,237 | |||||
Other comprehensive loss - change in value of interest rate swaps | (8,448 | ) | (3,940 | ) | — | ||||||
COMPREHENSIVE INCOME | 147,784 | 145,672 | 128,237 | ||||||||
Comprehensive income attributable to noncontrolling interests | (4,307 | ) | (5,695 | ) | (5,447 | ) | |||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE TRUST | $ | 143,477 | $ | 139,977 | $ | 122,790 |
Shareholders’ Equity of the Trust | |||||||||||||||||||||||||||||||||
Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||
(In thousands, except share data) | |||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2009 | 399,896 | $ | 9,997 | 61,242,050 | $ | 612 | $ | 1,606,115 | $ | (486,449 | ) | $ | — | $ | 21,463 | $ | 1,151,738 | ||||||||||||||||
Net income, excluding $2,986 attributable to redeemable noncontrolling interests | — | — | — | — | — | 122,790 | — | 2,461 | 125,251 | ||||||||||||||||||||||||
Dividends declared to common shareholders | — | — | — | — | — | (163,382 | ) | — | — | (163,382 | ) | ||||||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | — | — | (541 | ) | — | — | (541 | ) | ||||||||||||||||||||||
Distributions declared to noncontrolling interests | — | — | — | — | — | — | — | (2,223 | ) | (2,223 | ) | ||||||||||||||||||||||
Common shares issued | — | — | 190 | — | 14 | — | — | — | 14 | ||||||||||||||||||||||||
Exercise of stock options | — | — | 107,493 | 1 | 4,051 | — | — | — | 4,052 | ||||||||||||||||||||||||
Shares issued under dividend reinvestment plan | — | — | 34,401 | — | 2,544 | — | — | — | 2,544 | ||||||||||||||||||||||||
Share-based compensation expense, net | — | — | 135,338 | 2 | 6,485 | — | — | — | 6,487 | ||||||||||||||||||||||||
Conversion and redemption of OP units | — | — | 6,946 | — | 532 | — | — | (669 | ) | (137 | ) | ||||||||||||||||||||||
Adjustment to redeemable noncontrolling interests | — | — | — | — | (8,035 | ) | — | — | — | (8,035 | ) | ||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2010 | 399,896 | 9,997 | 61,526,418 | 615 | 1,611,706 | (527,582 | ) | — | 21,032 | 1,115,768 | |||||||||||||||||||||||
Net income, excluding $3,492 attributable to redeemable noncontrolling interests | — | — | — | — | — | 143,917 | — | 2,203 | 146,120 | ||||||||||||||||||||||||
Other comprehensive loss - change in value of interest rate swaps | — | — | — | — | — | — | (3,940 | ) | — | (3,940 | ) | ||||||||||||||||||||||
Dividends declared to common shareholders | — | — | — | — | — | (171,335 | ) | — | — | (171,335 | ) | ||||||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | — | — | (541 | ) | — | — | (541 | ) | ||||||||||||||||||||||
Distributions declared to noncontrolling interests | — | — | — | — | — | — | — | (2,320 | ) | (2,320 | ) | ||||||||||||||||||||||
Common shares issued | — | — | 1,662,230 | 17 | 139,281 | — | — | — | 139,298 | ||||||||||||||||||||||||
Exercise of stock options | — | — | 237,271 | 3 | 15,187 | — | — | — | 15,190 | ||||||||||||||||||||||||
Shares issued under dividend reinvestment plan | — | — | 28,823 | — | 2,374 | — | — | — | 2,374 | ||||||||||||||||||||||||
Share-based compensation expense, net | — | — | 89,408 | 1 | 8,246 | — | — | — | 8,247 | ||||||||||||||||||||||||
Conversion and redemption of OP units | — | — | — | — | (96 | ) | — | — | (55 | ) | (151 | ) | |||||||||||||||||||||
Purchase of noncontrolling interest | — | — | — | — | (2,331 | ) | — | — | (207 | ) | (2,538 | ) | |||||||||||||||||||||
Deconsolidation of VIE | — | — | — | — | — | — | — | (420 | ) | (420 | ) | ||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | 4,279 | 4,279 | ||||||||||||||||||||||||
Adjustment to redeemable noncontrolling interests | — | — | — | — | (9,427 | ) | — | — | — | (9,427 | ) | ||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2011 | 399,896 | 9,997 | 63,544,150 | 636 | 1,764,940 | (555,541 | ) | (3,940 | ) | 24,512 | 1,240,604 | ||||||||||||||||||||||
Net income, excluding $2,592 attributable to redeemable noncontrolling interests | — | — | — | — | — | 151,925 | — | 1,715 | 153,640 | ||||||||||||||||||||||||
Other comprehensive loss - change in value of interest rate swaps | — | — | — | — | — | — | (8,448 | ) | — | (8,448 | ) | ||||||||||||||||||||||
Dividends declared to common shareholders | — | — | — | — | — | (182,813 | ) | — | — | (182,813 | ) | ||||||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | — | — | (541 | ) | — | — | (541 | ) | ||||||||||||||||||||||
Distributions declared to noncontrolling interests | — | — | — | — | — | — | — | (2,232 | ) | (2,232 | ) | ||||||||||||||||||||||
Common shares issued | — | — | 1,039,405 | 10 | 106,209 | — | — | — | 106,219 | ||||||||||||||||||||||||
Exercise of stock options | — | — | 97,430 | 1 | 5,666 | — | — | — | 5,667 | ||||||||||||||||||||||||
Shares issued under dividend reinvestment plan | — | — | 22,814 | — | 2,248 | — | — | — | 2,248 | ||||||||||||||||||||||||
Share-based compensation expense, net | — | — | 111,647 | 1 | 10,370 | — | — | — | 10,371 | ||||||||||||||||||||||||
Conversion and redemption of OP units | — | — | — | — | (439 | ) | — | — | (389 | ) | (828 | ) | |||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | 175 | 175 | ||||||||||||||||||||||||
Adjustment to redeemable noncontrolling interests | — | — | — | — | (13,469 | ) | — | — | — | (13,469 | ) | ||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2012 | 399,896 | $ | 9,997 | 64,815,446 | $ | 648 | $ | 1,875,525 | $ | (586,970 | ) | $ | (12,388 | ) | $ | 23,781 | $ | 1,310,593 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 156,232 | $ | 149,612 | $ | 128,237 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization, including discontinued operations | 142,039 | 126,568 | 119,817 | ||||||||
Litigation provision | — | — | (250 | ) | |||||||
Gain on sale of real estate | (11,860 | ) | (15,075 | ) | (1,410 | ) | |||||
Gain on deconsolidation of VIE | — | (2,026 | ) | — | |||||||
Early extinguishment of debt | — | (296 | ) | 2,801 | |||||||
Income from real estate partnerships | (1,757 | ) | (1,808 | ) | (1,060 | ) | |||||
Other, net | 4,348 | 3,871 | 4,099 | ||||||||
Changes in assets and liabilities, net of effects of acquisitions and dispositions | |||||||||||
Increase in accounts receivable | 7,332 | 1,888 | 7,461 | ||||||||
(Increase) decrease in prepaid expenses and other assets | (7,793 | ) | 2,613 | (2,824 | ) | ||||||
Increase (decrease) in accounts payable and accrued expenses | 3,259 | (14,994 | ) | (879 | ) | ||||||
Increase (decrease) in security deposits and other liabilities | 4,833 | (5,642 | ) | 743 | |||||||
Net cash provided by operating activities | 296,633 | 244,711 | 256,735 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of real estate | (80,865 | ) | (103,557 | ) | (57,133 | ) | |||||
Capital expenditures - development and redevelopment | (129,346 | ) | (91,922 | ) | (50,414 | ) | |||||
Capital expenditures - other | (51,325 | ) | (50,540 | ) | (38,681 | ) | |||||
Proceeds from sale of real estate | — | 23,695 | — | ||||||||
Investment in real estate partnerships | — | (6,947 | ) | (16,930 | ) | ||||||
Distribution from real estate partnership in excess of earnings | 1,116 | 1,070 | 237 | ||||||||
Distribution from sale of real estate partnership properties | — | 34,617 | — | ||||||||
Leasing costs | (14,233 | ) | (12,415 | ) | (10,272 | ) | |||||
Repayment of mortgage and other notes receivable, net | 1,095 | 9,630 | (13,895 | ) | |||||||
Net cash used in investing activities | (273,558 | ) | (196,369 | ) | (187,088 | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Net (repayments) borrowings under revolving credit facility, net of costs | — | (81,159 | ) | 76,550 | |||||||
Issuance of senior notes, net of costs | 244,807 | — | 148,457 | ||||||||
Purchase and retirement of senior notes/debentures | (175,000 | ) | (75,000 | ) | — | ||||||
Issuance of mortgages, capital leases and notes payable, net of costs | 5,399 | 272,193 | 9,950 | ||||||||
Repayment of mortgages, capital leases and notes payable | (53,414 | ) | (91,952 | ) | (262,340 | ) | |||||
Issuance of common shares | 114,134 | 156,862 | 6,610 | ||||||||
Dividends paid to common and preferred shareholders | (179,884 | ) | (169,254 | ) | (163,120 | ) | |||||
Distributions to and redemptions of noncontrolling interests | (9,935 | ) | (8,023 | ) | (5,346 | ) | |||||
Net cash (used in) provided by financing activities | (53,893 | ) | 3,667 | (189,239 | ) | ||||||
(Decrease) increase in cash and cash equivalents | (30,818 | ) | 52,009 | (119,592 | ) | ||||||
Cash and cash equivalents at beginning of year | 67,806 | 15,797 | 135,389 | ||||||||
Cash and cash equivalents at end of year | $ | 36,988 | $ | 67,806 | $ | 15,797 |
Property | Dates Held by a Third Party Intermediary | Date Consolidated | ||
Huntington Square | August 16, 2010 to February 12, 2011 | August 16, 2010 | ||
Tower Shops | January 19, 2011 to July 12, 2011 | January 19, 2011 |
Year Ended | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
(in thousands) | |||||||
Beginning balance | $ | 85,325 | $ | 65,362 | |||
Net income | 2,592 | 3,492 | |||||
Distributions & Redemptions | (6,985 | ) | (3,020 | ) | |||
Contributions | 19 | 10,064 | |||||
Adjustment to redeemable noncontrolling interests | 13,469 | 9,427 | |||||
Ending balance | $ | 94,420 | $ | 85,325 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
SUPPLEMENTAL DISCLOSURES: | |||||||||||
Total interest costs incurred | $ | 123,441 | $ | 106,562 | $ | 108,167 | |||||
Interest capitalized | (10,105 | ) | (8,097 | ) | (6,285 | ) | |||||
Interest expense | $ | 113,336 | $ | 98,465 | $ | 101,882 | |||||
Cash paid for interest, net of amounts capitalized | $ | 114,419 | $ | 95,424 | $ | 98,932 | |||||
Cash (refunded) paid for income taxes | $ | (1,151 | ) | $ | 832 | $ | 255 | ||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | |||||||||||
Mortgage loan assumed/entered into with acquisition | $ | 67,615 | $ | 308,506 | $ | — | |||||
Deconsolidation of VIE | $ | — | $ | 18,311 | $ | — | |||||
Capital lease obligation | $ | — | $ | 4,556 | $ | — | |||||
Extinguishment of deferred ground rent liability | $ | — | $ | — | $ | 8,832 | |||||
Extinguishment of capital lease obligation | $ | — | $ | — | $ | 1,031 |
Cost | Accumulated Depreciation and Amortization | Encumbrances | ||||||||||
(In thousands) | ||||||||||||
December 31, 2012 | ||||||||||||
Retail and mixed-use properties | $ | 4,655,943 | $ | (1,187,993 | ) | $ | 737,899 | |||||
Retail properties under capital leases | 114,571 | (29,051 | ) | 71,693 | ||||||||
Residential | 9,160 | (7,251 | ) | 22,890 | ||||||||
$ | 4,779,674 | $ | (1,224,295 | ) | $ | 832,482 | ||||||
December 31, 2011 | ||||||||||||
Retail and mixed-use properties | $ | 4,304,089 | $ | (1,087,704 | ) | $ | 724,287 | |||||
Retail properties under capital leases | 113,605 | (33,019 | ) | 63,093 | ||||||||
Residential | 8,750 | (6,865 | ) | 23,236 | ||||||||
$ | 4,426,444 | $ | (1,127,588 | ) | $ | 810,616 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
OPERATING RESULTS | |||||||||||
Revenue | $ | 19,051 | $ | 19,289 | $ | 18,639 | |||||
Expenses | |||||||||||
Other operating expenses | 5,234 | 5,593 | 6,149 | ||||||||
Depreciation and amortization | 5,508 | 5,179 | 5,046 | ||||||||
Interest expense | 3,376 | 3,388 | 3,400 | ||||||||
Total expenses | 14,118 | 14,160 | 14,595 | ||||||||
Net income | $ | 4,933 | $ | 5,129 | $ | 4,044 | |||||
Our share of net income from real estate partnership | $ | 1,815 | $ | 1,771 | $ | 1,449 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
BALANCE SHEETS | |||||||
Real estate, net | $ | 174,509 | $ | 178,693 | |||
Cash | 2,735 | 3,035 | |||||
Other assets | 5,536 | 6,116 | |||||
Total assets | $ | 182,780 | $ | 187,844 | |||
Mortgages payable | $ | 57,155 | $ | 57,376 | |||
Other liabilities | 4,771 | 5,391 | |||||
Partners’ capital | 120,854 | 125,077 | |||||
Total liabilities and partners’ capital | $ | 182,780 | $ | 187,844 | |||
Our share of unconsolidated debt | $ | 17,147 | $ | 17,213 | |||
Our investment in real estate partnership | $ | 33,169 | $ | 34,352 |
Above Market Leases | Below Market Leases | |||||||
(In thousands) | ||||||||
Year ending December 31, | ||||||||
2013 | $ | 2,749 | $ | 5,716 | ||||
2014 | 2,632 | 5,103 | ||||||
2015 | 2,503 | 4,824 | ||||||
2016 | 2,199 | 4,487 | ||||||
2017 | 1,574 | 4,117 | ||||||
Thereafter | 5,868 | 56,087 | ||||||
$ | 17,525 | $ | 80,334 |
Principal Balance as of December 31, | Stated Interest Rate as of | ||||||||||||
Description of Debt | 2012 | 2011 | December 31, 2012 | Stated Maturity Date | |||||||||
Mortgages payable | (Dollars in thousands) | ||||||||||||
Courtyard Shops | $ | — | $ | 7,045 | 6.87 | % | July 1, 2012 | ||||||
Bethesda Row | — | 19,993 | 5.37 | % | January 1, 2013 | ||||||||
Bethesda Row | — | 4,016 | 5.05 | % | February 1, 2013 | ||||||||
White Marsh Plaza | 8,970 | 9,284 | 6.04 | % | April 1, 2013 | ||||||||
Crow Canyon | 19,485 | 19,951 | 5.40 | % | August 11, 2013 | ||||||||
Idylwood Plaza | 15,987 | 16,276 | 7.50 | % | June 5, 2014 | ||||||||
Leesburg Plaza | 27,818 | 28,320 | 7.50 | % | June 5, 2014 | ||||||||
Loehmann’s Plaza | 35,972 | 36,621 | 7.50 | % | June 5, 2014 | ||||||||
Pentagon Row | 51,640 | 52,572 | 7.50 | % | June 5, 2014 | ||||||||
Melville Mall | 21,536 | 22,325 | 5.25 | % | September 1, 2014 | ||||||||
THE AVENUE at White Marsh | 55,336 | 56,603 | 5.46 | % | January 1, 2015 | ||||||||
Barracks Road | 38,070 | 38,995 | 7.95 | % | November 1, 2015 | ||||||||
Hauppauge | 14,352 | 14,700 | 7.95 | % | November 1, 2015 | ||||||||
Lawrence Park | 26,984 | 27,640 | 7.95 | % | November 1, 2015 | ||||||||
Wildwood | 23,719 | 24,295 | 7.95 | % | November 1, 2015 | ||||||||
Wynnewood | 27,500 | 28,168 | 7.95 | % | November 1, 2015 | ||||||||
Brick Plaza | 28,033 | 28,757 | 7.42 | % | November 1, 2015 | ||||||||
East Bay Bridge | 62,946 | — | 5.13 | % | March 1, 2016 | ||||||||
Plaza El Segundo | 175,000 | 175,000 | 6.33 | % | August 5, 2017 | ||||||||
Rollingwood Apartments | 22,890 | 23,236 | 5.54 | % | May 1, 2019 | ||||||||
29th Place (Shoppers’ World) | 5,286 | 5,444 | 5.91 | % | January 31, 2021 | ||||||||
Montrose Crossing | 78,755 | 80,000 | 4.20 | % | January 10, 2022 | ||||||||
Mount Vernon | — | 10,554 | 5.66 | % | April 15, 2028 | ||||||||
Chelsea | 7,454 | 7,628 | 5.36 | % | January 15, 2031 | ||||||||
Subtotal | 747,733 | 737,423 | |||||||||||
Net unamortized premium | 13,056 | 10,100 | |||||||||||
Total mortgages payable | 760,789 | 747,523 | |||||||||||
Notes payable | |||||||||||||
Revolving credit facility | — | — | LIBOR + 1.15% | July 6, 2015 | |||||||||
Escondido (municipal bonds) | 9,400 | 9,400 | 0.21 | % | October 1, 2016 | ||||||||
Term loan | 275,000 | 275,000 | LIBOR + 1.45% | November 21, 2018 | |||||||||
Various | 15,175 | 10,759 | 5.27 | % | Various through 2027 | ||||||||
Total notes payable | 299,575 | 295,159 | |||||||||||
Senior notes and debentures | |||||||||||||
6.00% notes | — | 175,000 | 6.00 | % | July 16, 2012 | ||||||||
5.40% notes | 135,000 | 135,000 | 5.40 | % | December 1, 2013 | ||||||||
5.95% notes | 150,000 | 150,000 | 5.95 | % | August 15, 2014 | ||||||||
5.65% notes | 125,000 | 125,000 | 5.65 | % | June 1, 2016 | ||||||||
6.20% notes | 200,000 | 200,000 | 6.20 | % | January 15, 2017 | ||||||||
5.90% notes | 150,000 | 150,000 | 5.90 | % | April 1, 2020 | ||||||||
3.00% notes | 250,000 | — | 3.00 | % | August 1, 2022 | ||||||||
7.48% debentures | 29,200 | 29,200 | 7.48 | % | August 15, 2026 | ||||||||
6.82% medium term notes | 40,000 | 40,000 | 6.82 | % | August 1, 2027 | ||||||||
Subtotal | 1,079,200 | 1,004,200 | |||||||||||
Net unamortized (discount) premium | (2,655 | ) | 435 | ||||||||||
Total senior notes and debentures | 1,076,545 | 1,004,635 | |||||||||||
Capital lease obligations | |||||||||||||
Various | 71,693 | 63,093 | Various | Various through 2106 | |||||||||
Total debt and capital lease obligations | $ | 2,208,602 | $ | 2,110,410 |
Payoff Amount | Repayment Date | Maturity Date | |||||
(In millions) | |||||||
Courtyard Shops Mortgage Loan | $ | 6.9 | June 1, 2012 | July 1, 2012 | |||
6.00% Senior Notes | 175.0 | July 16, 2012 | July 16, 2012 | ||||
Mount Vernon Mortgage Loan | 10.2 | October 22, 2012 | April 15, 2028 | ||||
Bethesda Row Mortgage Loan | 20.0 | November 2, 2012 | January 1, 2013 | ||||
Bethesda Row Mortgage Loan | 3.9 | December 3, 2012 | February 1, 2013 | ||||
$ | 216.0 |
Mortgages Payable | Notes Payable | Senior Notes and Debentures | Total Principal | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Year ending December 31, | |||||||||||||||||||
2013 | $ | 40,296 | $ | 256 | $ | 135,000 | $ | 175,552 | |||||||||||
2014 | 158,855 | 10,249 | 150,000 | 319,104 | |||||||||||||||
2015 | 206,007 | 275 | (1) | — | 206,282 | ||||||||||||||
2016 | 62,412 | 9,702 | 125,000 | 197,114 | |||||||||||||||
2017 | 177,654 | 335 | 200,000 | 377,989 | |||||||||||||||
Thereafter | 102,509 | 278,758 | 469,200 | 850,467 | |||||||||||||||
$ | 747,733 | $ | 299,575 | $ | 1,079,200 | $ | 2,126,508 | (2) |
(1) | Our $400.0 million revolving credit facility matures on July 6, 2015, subject to a one-year extension at our option. As of December 31, 2012, there was nothing drawn under this credit facility. |
(2) | The total debt maturities differ from the total reported on the consolidated balance sheet due to the unamortized discount or premium on certain senior notes, debentures and mortgages payable. |
(In thousands) | |||
Year ending December 31, | |||
2013 | $ | 5,787 | |
2014 | 5,788 | ||
2015 | 5,787 | ||
2016 | 5,788 | ||
2017 | 5,797 | ||
Thereafter | 171,810 | ||
200,757 | |||
Less amount representing interest | (129,064 | ) | |
Present value | $ | 71,693 |
1. | Level 1 Inputs—quoted prices in active markets for identical assets or liabilities |
2. | Level 2 Inputs—observable inputs other than quoted prices in active markets for identical assets and liabilities |
3. | Level 3 Inputs—prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable |
December 31, 2012 | December 31, 2011 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Mortgages and notes payable | $ | 1,060,364 | $ | 1,110,757 | $ | 1,042,682 | $ | 1,099,273 | |||||||
Senior notes and debentures | $ | 1,076,545 | $ | 1,190,833 | $ | 1,004,635 | $ | 1,085,309 |
December 31, 2012 | December 31, 2011 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 12,388 | $ | — | $ | 12,388 | $ | — | $ | 3,940 | $ | — | $ | 3,940 |
(In thousands) | |||
Year ending December 31, | |||
2013 | $ | 1,488 | |
2014 | 1,478 | ||
2015 | 1,428 | ||
2016 | 1,372 | ||
2017 | 1,088 | ||
Thereafter | 50,207 | ||
$ | 57,061 |
Year Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||
Declared | Paid | Declared | Paid | Declared | Paid | ||||||||||||||||||
Common shares | $ | 2.840 | $ | 2.800 | $ | 2.720 | $ | 2.700 | $ | 2.660 | $ | 2.650 | |||||||||||
5.417% Series 1 Cumulative Convertible Preferred shares | $ | 1.354 | $ | 1.354 | $ | 1.354 | $ | 1.354 | $ | 1.354 | $ | 1.354 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Common shares | |||||||||||
Ordinary dividend | $ | 2.772 | $ | 2.349 | $ | 2.519 | |||||
Ordinary dividend eligible for 15% rate | — | 0.027 | 0.025 | ||||||||
Return of capital | — | 0.162 | 0.106 | ||||||||
Capital gain | 0.028 | 0.162 | — | ||||||||
$ | 2.800 | $ | 2.700 | $ | 2.650 | ||||||
5.417% Series 1 Cumulative Convertible Preferred shares | |||||||||||
Ordinary dividend | 1.340 | 1.246 | 1.341 | ||||||||
Ordinary dividend eligible for 15% rate | — | 0.013 | 0.013 | ||||||||
Capital gain | 0.014 | 0.095 | — | ||||||||
$ | 1.354 | $ | 1.354 | $ | 1.354 |
(In thousands) | |||
Year ending December 31, | |||
2013 | $ | 434,042 | |
2014 | 399,040 | ||
2015 | 355,013 | ||
2016 | 311,820 | ||
2017 | 254,413 | ||
Thereafter | 1,384,196 | ||
$ | 3,138,524 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Minimum rents | |||||||||||
Retail and commercial | $ | 422,894 | $ | 392,657 | $ | 378,836 | |||||
Residential (1) | 27,611 | 23,101 | 21,583 | ||||||||
Cost reimbursement | 112,740 | 106,347 | 107,008 | ||||||||
Percentage rent | 8,568 | 7,576 | 6,358 | ||||||||
Other | 10,522 | 9,020 | 8,866 | ||||||||
Total rental income | $ | 582,335 | $ | 538,701 | $ | 522,651 |
(1) | Residential minimum rents consist of the rental amounts for residential units at Rollingwood Apartments, The Crest at Congressional Plaza Apartments, Santana Row and Bethesda Row. |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In millions) | |||||||||||
Straight-line rents | $ | 6.1 | $ | 5.7 | $ | 4.6 | |||||
Net amortization of above and below market leases | $ | 1.1 | $ | 1.4 | $ | 1.6 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Repairs and maintenance | $ | 41,616 | $ | 41,977 | $ | 42,278 | |||||
Utilities | 19,213 | 18,823 | 18,545 | ||||||||
Management fees and costs | 15,167 | 14,989 | 14,641 | ||||||||
Payroll | 8,704 | 8,080 | 7,909 | ||||||||
Bad debt expense | 2,151 | 2,649 | 6,396 | ||||||||
Ground rent | 2,189 | 2,047 | 3,049 | ||||||||
Insurance | 6,298 | 5,282 | 5,054 | ||||||||
Marketing | 7,321 | 6,868 | 4,789 | ||||||||
Other operating | 10,101 | 8,834 | 7,858 | ||||||||
Total rental expenses | $ | 112,760 | $ | 109,549 | $ | 110,519 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(in millions) | |||||||||||
Revenue from discontinued operations | $ | — | $ | 2.3 | $ | 3.5 | |||||
Income from discontinued operations | $ | — | $ | 1.0 | $ | 1.0 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Share-based compensation incurred | |||||||||||
Grants of common shares | $ | 9,846 | $ | 7,308 | $ | 5,232 | |||||
Grants of options | 525 | 939 | 1,255 | ||||||||
10,371 | 8,247 | 6,487 | |||||||||
Capitalized share-based compensation | (908 | ) | (663 | ) | (745 | ) | |||||
Share-based compensation expense | $ | 9,463 | $ | 7,584 | $ | 5,742 |
Year Ended December 31, | |||
2010 | |||
Volatility | 30.0 | % | |
Expected dividend yield | 4.0 | % | |
Expected term (in years) | 4.3 | ||
Risk free interest rate | 1.9 | % |
Shares Under Option | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
(In years) | (In thousands) | |||||||||||
Outstanding at December 31, 2011 | 517,653 | $ | 61.08 | |||||||||
Granted | — | — | ||||||||||
Exercised | (97,430 | ) | 58.46 | |||||||||
Forfeited or expired | (29,334 | ) | 44.61 | |||||||||
Outstanding at December 31, 2012 | 390,889 | $ | 62.96 | 5.2 | $ | 16,048 | ||||||
Exercisable at December 31, 2012 | 293,946 | $ | 65.66 | 5.0 | $ | 11,276 |
Shares | Weighted-Average Grant-Date Fair Value | |||||
Unvested at December 31, 2011 | 282,837 | $ | 74.00 | |||
Granted | 126,169 | 96.35 | ||||
Vested | (106,804 | ) | 72.78 | |||
Forfeited | (14,522 | ) | 53.76 | |||
Unvested at December 31, 2012 | 287,680 | $ | 85.28 |
Date | Award | Vesting Term | Beneficiary | |||||
February 7, 2013 | 98,913 | Restricted shares | 3 years | Officers and key employees | ||||
January 2, 2013 | 5,767 | Shares | Immediate | Trustees |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands, except per share data) | |||||||||||
NUMERATOR | |||||||||||
Income from continuing operations | $ | 144,372 | $ | 131,554 | $ | 125,851 | |||||
Less: Preferred share dividends | (541 | ) | (541 | ) | (541 | ) | |||||
Less: Income from continuing operations attributable to noncontrolling interests | (4,307 | ) | (5,475 | ) | (5,247 | ) | |||||
Less: Earnings allocated to unvested shares | (845 | ) | (705 | ) | (572 | ) | |||||
Income from continuing operations available for common shareholders | 138,679 | 124,833 | 119,491 | ||||||||
Results from discontinued operations attributable to the Trust | — | 17,838 | 1,776 | ||||||||
Gain on sale of real estate | 11,860 | — | 410 | ||||||||
Net income available for common shareholders, basic and diluted | $ | 150,539 | $ | 142,671 | $ | 121,677 | |||||
DENOMINATOR | |||||||||||
Weighted average common shares outstanding—basic | 63,881 | 62,438 | 61,182 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options | 175 | 165 | 142 | ||||||||
Weighted average common shares outstanding—diluted | 64,056 | 62,603 | 61,324 | ||||||||
EARNINGS PER COMMON SHARE, BASIC | |||||||||||
Continuing operations | $ | 2.17 | $ | 2.00 | $ | 1.95 | |||||
Discontinued operations | — | 0.29 | 0.03 | ||||||||
Gain on sale of real estate | 0.19 | — | 0.01 | ||||||||
$ | 2.36 | $ | 2.29 | $ | 1.99 | ||||||
EARNINGS PER COMMON SHARE, DILUTED | |||||||||||
Continuing operations | $ | 2.16 | $ | 1.99 | $ | 1.94 | |||||
Discontinued operations | — | 0.29 | 0.03 | ||||||||
Gain on sale of real estate | 0.19 | — | 0.01 | ||||||||
$ | 2.35 | $ | 2.28 | $ | 1.98 | ||||||
Income from continuing operations attributable to the Trust | $ | 140,065 | $ | 126,079 | $ | 120,604 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2012 | |||||||||||||||
Revenue | $ | 146,289 | $ | 147,560 | $ | 157,805 | $ | 156,364 | |||||||
Operating Income | $ | 60,547 | $ | 61,779 | $ | 67,123 | $ | 65,813 | |||||||
Net income | $ | 44,122 | $ | 33,596 | $ | 39,656 | $ | 38,858 | |||||||
Net income attributable to the Trust | $ | 42,986 | $ | 32,603 | $ | 38,644 | $ | 37,692 | |||||||
Net income available for common shareholders | $ | 42,851 | $ | 32,468 | $ | 38,508 | $ | 37,557 | |||||||
Earnings per common share—basic | $ | 0.67 | $ | 0.51 | $ | 0.60 | $ | 0.58 | |||||||
Earnings per common share—diluted | $ | 0.67 | $ | 0.51 | $ | 0.60 | $ | 0.58 | |||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
2011 | |||||||||||||||
Revenue(1) | $ | 137,650 | $ | 136,279 | $ | 137,664 | $ | 141,466 | |||||||
Operating Income(2) | $ | 56,373 | $ | 57,334 | $ | 56,757 | $ | 57,233 | |||||||
Net income(2) | $ | 32,384 | $ | 36,471 | $ | 48,302 | $ | 32,455 | |||||||
Net income attributable to the Trust(2) | $ | 31,186 | $ | 34,757 | $ | 47,053 | $ | 30,921 | |||||||
Net income available for common shareholders(2) | $ | 31,051 | $ | 34,622 | $ | 46,917 | $ | 30,786 | |||||||
Earnings per common share—basic(2) | $ | 0.50 | $ | 0.55 | $ | 0.74 | $ | 0.48 | |||||||
Earnings per common share—diluted(2) | $ | 0.50 | $ | 0.55 | $ | 0.74 | $ | 0.48 |
(1) | Revenue has been reduced to reflect the results of discontinued operations. Revenue from discontinued operations, by quarter, is summarized as follows: |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In thousands) | |||||||||||||||
2011 revenue from discontinued operations | $ | 978 | $ | 1,048 | $ | 163 | $ | 93 |
(2) | Third quarter 2011 amounts include a $14.8 million gain on sale of our Feasterville Shopping Center as further discussed in Note 3. |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE III SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2012 (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | COLUMN F | COLUMN G | COLUMN H | COLUMN I | ||||||||||||||||||||||||||||||||
Descriptions | Encumbrance | Initial cost to company | Cost Capitalized Subsequent to Acquisition | Gross amount at which carried at close of period | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which depreciation in latest income statements is computed | ||||||||||||||||||||||||||||||||
Land | Building and Improvements | Land | Building and Improvements | Total | ||||||||||||||||||||||||||||||||||||
150 POST STREET (California) | CA | $ | — | $ | 11,685 | $ | 9,181 | $ | 16,863 | $ | 11,685 | $ | 26,044 | $ | 37,729 | $ | 14,825 | 1908, 1965 | 10/23/1997 | 35 years | ||||||||||||||||||||
29TH PLACE (SHOPPERS' WORLD) (Virginia) | VA | 5,253 | 10,211 | 18,863 | 7,695 | 10,225 | 26,544 | 36,769 | 4,287 | 1975 - 2001 | 5/30/2007 | 35 years | ||||||||||||||||||||||||||||
ANDORRA (Pennsylvania) | PA | — | 2,432 | 12,346 | 10,346 | 2,432 | 22,692 | 25,124 | 15,264 | 1953 | 1/12/1988 | 35 years | ||||||||||||||||||||||||||||
ASSEMBLY SQUARE MARKETPLACE/ASSEMBLY ROW (Massachusetts) | MA | — | 75,139 | 34,196 | 143,053 | 75,139 | 177,249 | 252,388 | 15,525 | 2005-2012 | 2005-2011 | 35 years | ||||||||||||||||||||||||||||
THE AVENUE AT WHITE MARSH (Maryland) | MD | 55,353 | 20,682 | 72,432 | 3,522 | 20,685 | 75,951 | 96,636 | 16,277 | 1997 | 3/8/2007 | 35 years | ||||||||||||||||||||||||||||
BALA CYNWYD (Pennsylvania) | PA | — | 3,565 | 14,466 | 21,347 | 3,566 | 35,812 | 39,378 | 13,795 | 1955 | 9/22/1993 | 35 years | ||||||||||||||||||||||||||||
BARRACKS ROAD (Virginia) | VA | 38,070 | 4,363 | 16,459 | 34,946 | 4,363 | 51,405 | 55,768 | 33,651 | 1958 | 12/31/1985 | 35 years | ||||||||||||||||||||||||||||
BETHESDA ROW (Maryland) | MD | — | 46,579 | 35,406 | 135,297 | 44,880 | 172,402 | 217,282 | 43,065 | 1945-2008 | 12/31/93, 1/20/06, 9/25/08, 9/30/08, & 12/27/10 | 35 - 50 years | ||||||||||||||||||||||||||||
BRICK PLAZA (New Jersey) | NJ | 28,033 | — | 24,715 | 35,896 | 3,935 | 56,676 | 60,611 | 39,808 | 1958 | 12/28/1989 | 35 years | ||||||||||||||||||||||||||||
BRISTOL (Connecticut) | CT | — | 3,856 | 15,959 | 8,474 | 3,856 | 24,433 | 28,289 | 12,486 | 1959 | 9/22/1995 | 35 years | ||||||||||||||||||||||||||||
CHELSEA COMMONS (Massachusetts) | MA | 7,135 | 9,417 | 19,466 | 5,891 | 9,396 | 25,378 | 34,774 | 3,656 | 1962/1969/2008 | 08/25/06, 1/30/07, & 7/16/08 | 35 years | ||||||||||||||||||||||||||||
COLORADO BLVD (California) | CA | — | 5,262 | 4,071 | 9,056 | 5,262 | 13,127 | 18,389 | 7,825 | 1905-1988 | 12/31/96 & 8/14/98 | 35 years | ||||||||||||||||||||||||||||
CONGRESSIONAL PLAZA (Maryland) | MD | — | 2,793 | 7,424 | 63,129 | 1,020 | 72,326 | 73,346 | 43,424 | 1965/2003 | 4/1/1965 | 35 years | ||||||||||||||||||||||||||||
COURTHOUSE CENTER (Maryland) | MD | — | 1,750 | 1,869 | 1,086 | 1,750 | 2,955 | 4,705 | 1,354 | 1975 | 12/17/1997 | 35 years | ||||||||||||||||||||||||||||
COURTYARD SHOPS (Florida) | FL | — | 16,862 | 21,851 | 1,488 | 16,894 | 23,307 | 40,201 | 3,710 | 1990/1998 | 9/4/2008 | 35 years | ||||||||||||||||||||||||||||
CROSSROADS (Illinois) | IL | — | 4,635 | 11,611 | 14,559 | 4,635 | 26,170 | 30,805 | 11,915 | 1959 | 7/19/1993 | 35 years | ||||||||||||||||||||||||||||
CROW CANYON COMMONS (California) | CA | 19,485 | 27,245 | 54,575 | 3,118 | 27,245 | 57,693 | 84,938 | 12,215 | Late 1970's/2006 | 12/29/05 & 02/28/07 | 35 years |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE III SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2012 (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | COLUMN F | COLUMN G | COLUMN H | COLUMN I | ||||||||||||||||||||||||||||||||
Descriptions | Encumbrance | Initial cost to company | Cost Capitalized Subsequent to Acquisition | Gross amount at which carried at close of period | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which depreciation in latest income statements is computed | ||||||||||||||||||||||||||||||||
Land | Building and Improvements | Land | Building and Improvements | Total | ||||||||||||||||||||||||||||||||||||
DEDHAM PLAZA (Massachusetts) | MA | — | 12,287 | 12,918 | 8,897 | 12,287 | 21,815 | 34,102 | 11,203 | 1959 | 12/31/1993 | 35 years | ||||||||||||||||||||||||||||
DEL MAR VILLAGE (Florida) | FL | — | 14,218 | 39,559 | 1,876 | 14,180 | 41,473 | 55,653 | 6,547 | 1982/1994/2007 | 5/30/08 & 7/11/08 | 35 years | ||||||||||||||||||||||||||||
EAST BAY BRIDGE (California) | CA | 67,574 | 29,091 | 138,088 | — | 29,091 | 138,088 | 167,179 | 150 | 1994-2001, 2011-2012 | 12/21/2012 | 35 years | ||||||||||||||||||||||||||||
EASTGATE (North Carolina) | NC | — | 1,608 | 5,775 | 19,354 | 1,608 | 25,129 | 26,737 | 15,655 | 1963 | 12/18/1986 | 35 years | ||||||||||||||||||||||||||||
ELLISBURG CIRCLE (New Jersey) | NJ | — | 4,028 | 11,309 | 14,960 | 4,013 | 26,284 | 30,297 | 15,682 | 1959 | 10/16/1992 | 35 years | ||||||||||||||||||||||||||||
ESCONDIDO PROMENADE (California) | CA | — | 19,117 | 15,829 | 10,530 | 19,117 | 26,359 | 45,476 | 9,252 | 1987 | 12/31/96 & 11/10/10 | 35 years | ||||||||||||||||||||||||||||
FALLS PLAZA (Virginia) | VA | — | 1,798 | 1,270 | 9,582 | 1,819 | 10,831 | 12,650 | 7,029 | 1960/1962 | 09/30/67 & 10/05/72 | 25 years | ||||||||||||||||||||||||||||
FEDERAL PLAZA (Maryland) | MD | — | 10,216 | 17,895 | 36,689 | 10,216 | 54,584 | 64,800 | 33,660 | 1970 | 6/29/1989 | 35 years | ||||||||||||||||||||||||||||
FIFTH AVENUE (California) | CA | — | 2,149 | 584 | 3,323 | 2,149 | 3,907 | 6,056 | 2,092 | 1888-1998 | 1996 | 35 years | ||||||||||||||||||||||||||||
FINLEY SQUARE (Illinois) | IL | — | 9,252 | 9,544 | 13,592 | 9,252 | 23,136 | 32,388 | 14,960 | 1974 | 4/27/1995 | 35 years | ||||||||||||||||||||||||||||
FLOURTOWN (Pennsylvania) | PA | — | 1,345 | 3,943 | 10,772 | 1,470 | 14,590 | 16,060 | 7,625 | 1957 | 4/25/1980 | 35 years | ||||||||||||||||||||||||||||
FOREST HILLS (New York) | NY | — | 2,885 | 2,885 | 2,822 | 3,031 | 5,561 | 8,592 | 2,503 | 1937 - 1987 | 12/16/1997 | 35 years | ||||||||||||||||||||||||||||
FRESH MEADOWS (New York) | NY | — | 24,625 | 25,255 | 27,635 | 24,627 | 52,888 | 77,515 | 25,421 | 1946-1949 | 12/5/1997 | 35 years | ||||||||||||||||||||||||||||
FRIENDSHIP CTR (District of Columbia) | DC | — | 12,696 | 20,803 | 1,959 | 12,696 | 22,762 | 35,458 | 7,111 | 1998 | 9/21/2001 | 35 years | ||||||||||||||||||||||||||||
GAITHERSBURG SQUARE (Maryland) | MD | — | 7,701 | 5,271 | 12,559 | 5,973 | 19,558 | 25,531 | 14,252 | 1966 | 4/22/1993 | 35 years | ||||||||||||||||||||||||||||
GARDEN MARKET (Illinois) | IL | — | 2,677 | 4,829 | 5,032 | 2,677 | 9,861 | 12,538 | 5,508 | 1958 | 7/28/1994 | 35 years | ||||||||||||||||||||||||||||
GOVERNOR PLAZA (Maryland) | MD | — | 2,068 | 4,905 | 19,635 | 2,068 | 24,540 | 26,608 | 14,834 | 1963 | 10/1/1985 | 35 years | ||||||||||||||||||||||||||||
GRATIOT PLAZA (Michigan) | MI | — | 525 | 1,601 | 16,896 | 525 | 18,497 | 19,022 | 13,685 | 1964 | 3/29/1973 | 25.75 years | ||||||||||||||||||||||||||||
GREENWICH AVENUE (Connecticut) | CT | — | 7,484 | 5,445 | 1,040 | 7,484 | 6,485 | 13,969 | 3,201 | 1968 | 4/12/1995 | 35 years | ||||||||||||||||||||||||||||
HAUPPAUGE (New York) | NY | 14,352 | 8,791 | 15,262 | 3,996 | 8,791 | 19,258 | 28,049 | 8,360 | 1963 | 8/6/1998 | 35 years | ||||||||||||||||||||||||||||
HERMOSA AVE. (California) | CA | — | 1,116 | 280 | 4,190 | 1,368 | 4,218 | 5,586 | 2,028 | 1922 | 9/17/1997 | 35 years |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE III SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2012 (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | COLUMN F | COLUMN G | COLUMN H | COLUMN I | ||||||||||||||||||||||||||||||||
Descriptions | Encumbrance | Initial cost to company | Cost Capitalized Subsequent to Acquisition | Gross amount at which carried at close of period | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which depreciation in latest income statements is computed | ||||||||||||||||||||||||||||||||
Land | Building and Improvements | Land | Building and Improvements | Total | ||||||||||||||||||||||||||||||||||||
HOLLYWOOD BLVD. (California) | CA | — | 8,300 | 16,920 | 14,878 | 8,300 | 31,798 | 40,098 | 8,180 | 1929/1991 | 3/22/99 & 6/18/99 | 35 years | ||||||||||||||||||||||||||||
HOUSTON STREET (Texas) | TX | — | 14,680 | 1,976 | 49,140 | 14,778 | 51,018 | 65,796 | 24,986 | var | 1998 | 35 years | ||||||||||||||||||||||||||||
HUNTINGTON (New York) | NY | — | 11,713 | 16,008 | 15,680 | 11,713 | 31,688 | 43,401 | 9,745 | 1962 | 12/12/88 & 10/26/07 | 35 years | ||||||||||||||||||||||||||||
HUNTINGTON SQUARE (New York) | NY | — | — | 10,075 | 619 | — | 10,694 | 10,694 | 874 | 1980/2004-2007 | 8/16/2010 | 35 years | ||||||||||||||||||||||||||||
IDYLWOOD PLAZA (Virginia) | VA | 15,987 | 4,308 | 10,026 | 2,155 | 4,308 | 12,181 | 16,489 | 6,545 | 1991 | 4/15/1994 | 35 years | ||||||||||||||||||||||||||||
KINGS COURT (California) | CA | — | — | 10,714 | 957 | — | 11,671 | 11,671 | 6,630 | 1960 | 8/24/1998 | 26 years | ||||||||||||||||||||||||||||
LANCASTER (Pennsylvania) | PA | 4,907 | — | 2,103 | 11,224 | 75 | 13,252 | 13,327 | 6,638 | 1958 | 4/24/1980 | 22 years | ||||||||||||||||||||||||||||
LANGHORNE SQUARE (Pennsylvania) | PA | — | 720 | 2,974 | 16,736 | 720 | 19,710 | 20,430 | 11,809 | 1966 | 1/31/1985 | 35 years | ||||||||||||||||||||||||||||
LAUREL (Maryland) | MD | — | 7,458 | 22,525 | 21,158 | 7,464 | 43,677 | 51,141 | 30,624 | 1956 | 8/15/1986 | 35 years | ||||||||||||||||||||||||||||
LAWRENCE PARK (Pennsylvania) | PA | 26,984 | 5,723 | 7,160 | 18,295 | 5,734 | 25,444 | 31,178 | 21,981 | 1972 | 7/23/1980 | 22 years | ||||||||||||||||||||||||||||
LEESBURG PLAZA (Virginia) | VA | 27,818 | 8,184 | 10,722 | 16,321 | 8,184 | 27,043 | 35,227 | 10,118 | 1967 | 9/15/1998 | 35 years | ||||||||||||||||||||||||||||
LINDEN SQUARE (Massachusetts) | MA | — | 79,382 | 19,247 | 47,817 | 79,269 | 67,177 | 146,446 | 10,504 | 1960-2008 | 8/24/2006 | 35 years | ||||||||||||||||||||||||||||
LOEHMANN'S PLAZA (Virginia) | VA | 35,972 | 1,237 | 15,096 | 16,543 | 1,248 | 31,628 | 32,876 | 22,431 | 1971 | 7/21/1983 | 35 years | ||||||||||||||||||||||||||||
MELVILLE MALL (New York) | NY | 21,406 | 35,622 | 32,882 | 532 | 35,622 | 33,414 | 69,036 | 5,961 | 1974 | 10/16/2006 | 35 years | ||||||||||||||||||||||||||||
MERCER MALL (New Jersey) | NJ | 55,844 | 28,684 | 48,028 | 33,878 | 28,684 | 81,906 | 110,590 | 24,957 | 1975 | 10/14/2003 | 25 - 35 years | ||||||||||||||||||||||||||||
MID PIKE PLAZA/PIKE & ROSE (Maryland) | MD | — | 31,388 | 10,335 | 46,393 | 31,451 | 56,665 | 88,116 | 5,146 | 1963 | 05/18/82 & 10/26/07 | 50 years | ||||||||||||||||||||||||||||
MONTROSE CROSSING (Maryland) | MD | 78,755 | 38,490 | 101,953 | 1,108 | 38,490 | 103,061 | 141,551 | 4,168 | 1960-1979, 1996 & 2011 | 12/27/2011 | 35 years | ||||||||||||||||||||||||||||
MOUNT VERNON/SOUTH VALLEY/7770 RICHMOND HWY. (Virginia) | VA | — | 10,068 | 33,501 | 35,361 | 10,204 | 68,726 | 78,930 | 20,794 | 1966/1972/1987/2001 | 03/31/03, 3/21/03, & 1/27/06 | 35 years | ||||||||||||||||||||||||||||
TOWN CENTER OF NEW BRITAIN (Pennsylvania) | PA | — | 1,282 | 12,285 | 1,031 | 1,262 | 13,336 | 14,598 | 2,874 | 1969 | 6/29/2006 | 35 years |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE III SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2012 (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | COLUMN F | COLUMN G | COLUMN H | COLUMN I | ||||||||||||||||||||||||||||||||
Descriptions | Encumbrance | Initial cost to company | Cost Capitalized Subsequent to Acquisition | Gross amount at which carried at close of period | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which depreciation in latest income statements is computed | ||||||||||||||||||||||||||||||||
Land | Building and Improvements | Land | Building and Improvements | Total | ||||||||||||||||||||||||||||||||||||
NORTH DARTMOUTH (Massachusetts) | MA | — | 27,214 | — | (17,846 | ) | 9,366 | 2 | 9,368 | 1 | 2004 | 8/24/2006 | ||||||||||||||||||||||||||||
NORTHEAST (Pennsylvania) | PA | — | 1,152 | 10,596 | 12,500 | 1,153 | 23,095 | 24,248 | 16,503 | 1959 | 8/30/1983 | 35 years | ||||||||||||||||||||||||||||
NORTH LAKE COMMONS (Illinois) | IL | — | 2,782 | 8,604 | 4,467 | 2,628 | 13,225 | 15,853 | 5,981 | 1989 | 4/27/1994 | 35 years | ||||||||||||||||||||||||||||
OLD KEENE MILL (Virginia) | VA | — | 638 | 998 | 4,835 | 638 | 5,833 | 6,471 | 4,766 | 1968 | 6/15/1976 | 33.33 years | ||||||||||||||||||||||||||||
OLD TOWN CENTER (California) | CA | — | 3,420 | 2,765 | 30,208 | 3,420 | 32,973 | 36,393 | 16,930 | 1962, 1997-1998 | 10/22/1997 | 35 years | ||||||||||||||||||||||||||||
PAN AM SHOPPING CENTER (Virginia) | VA | — | 8,694 | 12,929 | 7,016 | 8,695 | 19,944 | 28,639 | 11,987 | 1979 | 2/5/1993 | 35 years | ||||||||||||||||||||||||||||
PENTAGON ROW (Virginia) | VA | 51,640 | — | 2,955 | 86,744 | — | 89,699 | 89,699 | 33,883 | 1999 - 2002 | 1998 & 11/22/10 | 35 years | ||||||||||||||||||||||||||||
PERRING PLAZA (Maryland) | MD | — | 2,800 | 6,461 | 19,309 | 2,800 | 25,770 | 28,570 | 18,998 | 1963 | 10/1/1985 | 35 years | ||||||||||||||||||||||||||||
PIKE 7 (Virginia) | VA | — | 9,709 | 22,799 | 3,266 | 9,653 | 26,121 | 35,774 | 12,329 | 1968 | 3/31/1997 | 35 years | ||||||||||||||||||||||||||||
PLAZA EL SEGUNDO (California) | CA | 183,893 | 56,606 | 153,556 | 3,457 | 56,606 | 157,013 | 213,619 | 6,063 | 2006 & 2007 | 12/30/2011 | 35 years | ||||||||||||||||||||||||||||
QUEEN ANNE PLAZA (Massachusetts) | MA | — | 3,319 | 8,457 | 5,063 | 3,319 | 13,520 | 16,839 | 7,603 | 1967 | 12/23/1994 | 35 years | ||||||||||||||||||||||||||||
QUINCE ORCHARD PLAZA (Maryland) | MD | — | 3,197 | 7,949 | 15,541 | 2,928 | 23,759 | 26,687 | 12,714 | 1975 | 4/22/1993 | 35 years | ||||||||||||||||||||||||||||
ROCKVILLE TOWN SQUARE (Maryland) | MD | 4,538 | — | 8,092 | 42,232 | — | 50,324 | 50,324 | 7,999 | 2005 - 2007 | 2006 - 2007 | 50 years | ||||||||||||||||||||||||||||
ROLLINGWOOD APTS. (Maryland) | MD | 22,890 | 552 | 2,246 | 6,362 | 572 | 8,588 | 9,160 | 7,251 | 1960 | 1/15/1971 | 25 years | ||||||||||||||||||||||||||||
SAM'S PARK & SHOP (District of Columbia) | DC | — | 4,840 | 6,319 | 1,701 | 4,840 | 8,020 | 12,860 | 4,032 | 1930 | 12/1/1995 | 35 years | ||||||||||||||||||||||||||||
SANTANA ROW (California) | CA | — | 44,562 | 7,502 | 567,816 | 52,318 | 567,562 | 619,880 | 109,434 | 1999 - 2009, 2011 | 3/5/1997 & 2012 | 40 - 50 years | ||||||||||||||||||||||||||||
SAUGUS (Massachusetts) | MA | — | 4,383 | 8,291 | 1,970 | 4,383 | 10,261 | 14,644 | 4,638 | 1976 | 10/1/1996 | 35 years | ||||||||||||||||||||||||||||
SHIRLINGTON (Virginia) | VA | 6,404 | 9,761 | 14,808 | 34,475 | 5,798 | 53,246 | 59,044 | 16,919 | 1940, 2006-2009 | 12/21/1995 | 35 years | ||||||||||||||||||||||||||||
THE SHOPPES AT NOTTINGHAM SQUARE (Maryland) | MD | — | 4,441 | 12,849 | 37 | 4,441 | 12,886 | 17,327 | 2,617 | 2005 - 2006 | 3/8/2007 | 35 years |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE III SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2012 (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | COLUMN F | COLUMN G | COLUMN H | COLUMN I | ||||||||||||||||||||||||||||||||
Descriptions | Encumbrance | Initial cost to company | Cost Capitalized Subsequent to Acquisition | Gross amount at which carried at close of period | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which depreciation in latest income statements is computed | ||||||||||||||||||||||||||||||||
Land | Building and Improvements | Land | Building and Improvements | Total | ||||||||||||||||||||||||||||||||||||
THIRD STREET PROMENADE (California) | CA | — | 22,645 | 12,709 | 42,891 | 25,125 | 53,120 | 78,245 | 25,333 | 1888-2000 | 1996-2000 | 35 years | ||||||||||||||||||||||||||||
TOWER (Virginia) | VA | — | 7,170 | 10,518 | 3,458 | 7,280 | 13,866 | 21,146 | 6,289 | 1953-1960 | 8/24/1998 | 35 years | ||||||||||||||||||||||||||||
TOWER SHOPS (Florida) | FL | — | 28,823 | 36,313 | 10,797 | 28,845 | 47,088 | 75,933 | 3,873 | 1989 | 1/19/2011 | 35 years | ||||||||||||||||||||||||||||
TROY (New Jersey) | NJ | — | 3,126 | 5,193 | 20,478 | 4,028 | 24,769 | 28,797 | 17,278 | 1966 | 7/23/1980 | 22 years | ||||||||||||||||||||||||||||
TYSON'S STATION (Virginia) | VA | — | 388 | 453 | 3,240 | 475 | 3,606 | 4,081 | 3,040 | 1954 | 1/17/1978 | 17 years | ||||||||||||||||||||||||||||
WESTGATE MALL (California) | CA | — | 6,319 | 107,284 | 10,688 | 6,319 | 117,972 | 124,291 | 24,862 | 1960-1966 | 3/31/2004 | 35 years | ||||||||||||||||||||||||||||
WHITE MARSH PLAZA (Maryland) | MD | 8,970 | 3,478 | 21,413 | 163 | 3,478 | 21,576 | 25,054 | 4,681 | 1987 | 3/8/2007 | 35 years | ||||||||||||||||||||||||||||
WHITE MARSH OTHER (Maryland) | MD | — | 60,400 | 1,843 | (26,052 | ) | 34,311 | 1,880 | 36,191 | 434 | 1985 | 3/8/2007 | 35 years | |||||||||||||||||||||||||||
WILDWOOD (Maryland) | MD | 23,719 | 9,111 | 1,061 | 8,360 | 9,111 | 9,421 | 18,532 | 8,009 | 1958 | 5/5/1969 | 33.33 years | ||||||||||||||||||||||||||||
WILLOW GROVE (Pennsylvania) | PA | — | 1,499 | 6,643 | 20,851 | 1,499 | 27,494 | 28,993 | 21,015 | 1953 | 11/20/1984 | 35 years | ||||||||||||||||||||||||||||
WILLOW LAWN (Virginia) | VA | — | 3,192 | 7,723 | 69,824 | 7,790 | 72,949 | 80,739 | 43,711 | 1957 | 12/5/1983 | 35 years | ||||||||||||||||||||||||||||
WYNNEWOOD (Pennsylvania) | PA | 27,500 | 8,055 | 13,759 | 15,032 | 8,055 | 28,791 | 36,846 | 16,315 | 1948 | 10/29/1996 | 35 years | ||||||||||||||||||||||||||||
MISCELLANEOUS INVESTMENTS | — | 1,115 | 1,319 | — | 1,115 | 1,319 | 2,434 | 2 | ||||||||||||||||||||||||||||||||
TOTALS | $ | 832,482 | $ | 1,052,783 | $ | 1,627,077 | $ | 2,099,814 | $ | 1,019,905 | $ | 3,759,769 | $ | 4,779,674 | $ | 1,224,295 |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE III SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION - CONTINUED Three Years Ended December 31, 2012 Reconciliation of Total Cost (in thousands) | |||
Balance, December 31, 2009 | $ | 3,759,234 | |
Additions during period | |||
Acquisitions | 34,855 | ||
Consolidation of VIE | 18,311 | ||
Improvements | 97,129 | ||
Deduction during period—disposition and retirements of property | (13,587 | ) | |
Balance, December 31, 2010 | 3,895,942 | ||
Additions during period | |||
Acquisitions | 430,758 | ||
Improvements | 147,996 | ||
Deconsolidation of VIE | (18,311 | ) | |
Deduction during period—disposition and retirements of property | (29,941 | ) | |
Balance, December 31, 2011 | 4,426,444 | ||
Additions during period | |||
Acquisitions | 193,131 | ||
Improvements | 187,990 | ||
Deduction during period—disposition and retirements of property | (27,891 | ) | |
Balance, December 31, 2012 | $ | 4,779,674 |
(1) | For Federal tax purposes, the aggregate cost basis is approximately $4.2 billion as of December 31, 2012. |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE III SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION - CONTINUED Three Years Ended December 31, 2012 Reconciliation of Accumulated Depreciation and Amortization (in thousands) | |||
Balance, December 31, 2009 | $ | 938,087 | |
Additions during period—depreciation and amortization expense | 108,261 | ||
Deductions during period—disposition and retirements of property | (11,144 | ) | |
Balance, December 31, 2010 | 1,035,204 | ||
Additions during period—depreciation and amortization expense | 114,180 | ||
Deductions during period—disposition and retirements of property | (21,796 | ) | |
Balance, December 31, 2011 | 1,127,588 | ||
Additions during period—depreciation and amortization expense | 128,654 | ||
Deductions during period—disposition and retirements of property | (31,947 | ) | |
Balance, December 31, 2012 | $ | 1,224,295 |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE IV MORTGAGE LOANS ON REAL ESTATE Year Ended December 31, 2012 (Dollars in thousands) | ||||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | |||||||||||||||||||||
Description of Lien | Interest Rate | Maturity Date | Periodic Payment Terms | Prior Liens | Face Amount of Mortgages | Carrying Amount of Mortgages(1) | Principal Amount of Loans Subject to delinquent Principal or Interest | |||||||||||||||||||||
Mortgage on retail buildings in Philadelphia, PA | 8% or 10% based on timing of draws, plus participation | May 2021 | Interest only monthly; balloon payment due at maturity | $ | — | $ | 20,286 | $ | 20,286 | (2) | $ | — | ||||||||||||||||
Mortgage on retail buildings in Philadelphia, PA | 10% plus participation | May 2021 | Interest only monthly; balloon payment due at maturity | — | 9,250 | 9,250 | — | |||||||||||||||||||||
Second Mortgage on hotel building in San Jose, CA | 9% | August 2016 | Principal and interest; balloon payment due at maturity(3) | 35,000 | (4) | 12,914 | 10,785 | — | ||||||||||||||||||||
Mortgage on restaurant building in Rockville, MD | 9% | December 2014 | Interest only monthly through January 31, 2011; balloon payment due at maturity(5) | — | 3,612 | 3,612 | — | |||||||||||||||||||||
Mortgage on retail building in Norwalk, CT | 6% | June 2014 | Interest only; balloon payment due at maturity(6) | $ | — | $ | 11,715 | $ | 11,715 | $ | — | |||||||||||||||||
$ | 35,000 | $ | 57,777 | $ | 55,648 | $ | — |
(1) | For Federal tax purposes, the aggregate tax basis is approximately $57.8 million as of December 31, 2012. |
(2) | This mortgage is available for up to $25.0 million. |
(3) | This note was amended on August 4, 2006. The amended note decreased the interest from 14% to 9% per annum, and requires monthly payments of principal and interest based on 15-year amortization schedule. |
(4) | We do not hold the first mortgage loan on this property. Accordingly, the amount of the prior lien at December 31, 2012 is estimated. |
(5) | Beginning February 1, 2011, the note requires monthly payments of principal and interest based on a 30-year amortization schedule. The borrower has one, three-year extension option with an interest rate of 12% which increases 1% in each subsequent year of the extension term. |
(6) | The loan is subject to a one year extension option with an interest rate of 7% . |
FEDERAL REALTY INVESTMENT TRUST SCHEDULE IV MORTGAGE LOANS ON REAL ESTATE - CONTINUED Three Years Ended December 31, 2012 Reconciliation of Carrying Amount (in thousands) | |||
Balance, December 31, 2009 | $ | 48,336 | |
Additions during period: | |||
Issuance of loans | 14,787 | ||
Deductions during period: | |||
Collection and satisfaction of loans | (464 | ) | |
Amortization of discount /loan fee | 465 | ||
Consolidation of VIE | (18,311 | ) | |
Balance, December 31, 2010 | 44,813 | ||
Additions during period: | |||
Issuance of loans | 130 | ||
Deconsolidation of VIE | 18,311 | ||
Deductions during period: | |||
Collection and satisfaction of loans | (7,598 | ) | |
Amortization of discount | 311 | ||
Balance, December 31, 2011 | 55,967 | ||
Additions during period: | |||
Issuance of loans | 70 | ||
Deductions during period: | |||
Collection and satisfaction of loans | (1,161 | ) | |
Amortization of discount | 772 | ||
Balance, December 31, 2012 | $ | 55,648 |
Exhibit No. | Description | |
3.1 | Declaration of Trust of Federal Realty Investment Trust dated May 5, 1999 as amended by the Articles of Amendment of Declaration of Trust of Federal Realty Investment Trust dated May 6, 2004, as corrected by the Certificate of Correction of Articles of Amendment of Declaration of Trust of Federal Realty Investment Trust dated June 17, 2004, as amended by the Articles of Amendment of Declaration of Trust of Federal Realty Investment Trust dated May 6, 2009 (previously filed as Exhibit 3.1 to the Trust’s Registration Statement on Form S-3 (File No. 333-160009) and incorporated herein by reference) | |
3.2 | Amended and Restated Bylaws of Federal Realty Investment Trust dated February 12, 2003, as amended October 29, 2003, May 5, 2004, February 17, 2006 and May 6, 2009 (previously filed as Exhibit 3.2 to the Trust’s Registration Statement on Form S-3 (File No. 333-160009) and incorporated herein by reference) | |
4.1 | Specimen Common Share certificate (previously filed as Exhibit 4(i) to the Trust’s Annual Report on Form 10-K for the year ended December 31, 1999 (File No. 1-07533) and incorporated herein by reference) | |
4.2 | Articles Supplementary relating to the 5.417% Series 1 Cumulative Convertible Preferred Shares of Beneficial Interest (previously filed as Exhibit 4.1 to the Trust’s Current Report on Form 8-K filed on March 13, 2007, (File No. 1-07533) and incorporated herein by reference) | |
4.3 | ** Indenture dated December 1, 1993 related to the Trust’s 7.48% Debentures due August 15, 2026; and 6.82% Medium Term Notes due August 1, 2027; (previously filed as Exhibit 4(a) to the Trust’s Registration Statement on Form S-3 (File No. 33-51029), and amended on Form S-3 (File No. 33-63687), filed on December 13, 1993 and incorporated herein by reference) | |
4.4 | ** Indenture dated September 1, 1998 related to the Trust’s 5.65% Notes due 2016; 6.00% Notes due 2012; 6.20% Notes due 2017; 5.40% Notes due 2013; 5.95% Notes due 2014 and the 5.90% Notes due 2020 (previously filed as Exhibit 4(a) to the Trust’s Registration Statement on Form S-3 (File No. 333-63619) filed on September 17, 1998 and incorporated herein by reference) | |
10.1 | Amended and Restated 1993 Long-Term Incentive Plan, as amended on October 6, 1997 and further amended on May 6, 1998 (previously filed as Exhibit 10.26 to the Trust’s Annual Report on Form 10-K for the year ended December 31, 1998 (File No. 1-07533) and incorporated herein by reference) | |
10.2 | * Severance Agreement between the Trust and Donald C. Wood dated February 22, 1999 (previously filed as a portion of Exhibit 10 to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1999 (File No. 1-07533) (the “1999 1Q Form 10-Q”) and incorporated herein by reference) | |
10.3 | * Executive Agreement between Federal Realty Investment Trust and Donald C. Wood dated February 22, 1999 (previously filed as a portion of Exhibit 10 to the 1999 1Q Form 10-Q and incorporated herein by reference) | |
10.4 | * Amendment to Executive Agreement between Federal Realty Investment Trust and Donald C. Wood dated February 16, 2005 (previously filed as Exhibit 10.12 to the Trust’s Annual Report on Form 10-K for the year ended December 31, 2004 (File No. 1-07533) (the “2004 Form 10-K”) and incorporated herein by reference) | |
10.5 | * Split Dollar Life Insurance Agreement dated August 12, 1998 between the Trust and Donald C. Wood (previously filed as a portion of Exhibit 10 to the Trust’s Annual Report on Form 10-K for the year ended December 31, 2000 (File No. 1-07533) and incorporated herein by reference) | |
10.6 | 2001 Long-Term Incentive Plan (previously filed as Exhibit 99.1 to the Trust’s S-8 Registration Number 333-60364 filed on May 7, 2001 and incorporated herein by reference) |
Exhibit No. | Description | |
10.7 | * Health Coverage Continuation Agreement between Federal Realty Investment Trust and Donald C. Wood dated February 16, 2005 (previously filed as Exhibit 10.26 to the 2004 Form 10-K and incorporated herein by reference) | |
10.8 | * Severance Agreement between the Trust and Dawn M. Becker dated April 19, 2000 (previously filed as Exhibit 10.26 to the Trust’s 2005 2Q Form 10-Q and incorporated herein by reference) | |
10.9 | * Amendment to Severance Agreement between the Trust and Dawn M. Becker dated February 16, 2005 (previously filed as Exhibit 10.27 to the 2004 Form 10-K and incorporated herein by reference) | |
10.10 | Form of Restricted Share Award Agreement for awards made under the Trust’s 2003 Long-Term Incentive Award Program for shares issued out of 2001 Long-Term Incentive Plan (previously filed as Exhibit 10.28 to the 2004 Form 10-K and incorporated herein by reference) | |
10.11 | Form of Restricted Share Award Agreement for awards made under the Trust’s Annual Incentive Bonus Program for shares issued out of 2001 Long-Term Incentive Plan (previously filed as Exhibit 10.29 to the 2004 Form 10-K and incorporated herein by reference) | |
10.12 | Form of Option Award Agreement for awards made under the Trust’s 2003 Long-Term Incentive Award Program for shares issued out of the 2001 Long-Term Incentive Plan (previously filed as Exhibit 10.32 to the 2005 Form 10-K and incorporated herein by reference) | |
10.13 | Amended and Restated 2001 Long-Term Incentive Plan (previously filed as Exhibit 10.34 to the Trust’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 (File No. 1-07533) and incorporated herein by reference) | |
10.14 | Change in Control Agreement between the Trust and Andrew P. Blocher dated February 12, 2007 (previously filed as Exhibit 10.27 to the Trust’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 (File No. 1-07533) and incorporated herein by reference) | |
10.15 | * Amendment to Severance Agreement between the Trust and Donald C. Wood dated January 1, 2009 (previously filed as Exhibit 10.26 to the Trust’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-07533) (“the 2008 Form 10-K”) and incorporated herein by reference) | |
10.16 | * Second Amendment to Executive Agreement between the Trust and Donald C. Wood dated January 1, 2009 (previously filed as Exhibit 10.27 to the Trust’s 2008 Form 10-K and incorporated herein by reference) | |
10.17 | * Amendment to Health Coverage Continuation Agreement between the Trust and Donald C. Wood dated January 1, 2009 (previously filed as Exhibit 10.28 to the Trust’s 2008 Form 10-K and incorporated herein by reference) | |
10.18 | * Second Amendment to Severance Agreement between the Trust and Dawn M. Becker dated January 1, 2009 (previously filed as Exhibit 10.30 to the Trust’s 2008 Form 10-K and incorporated herein by reference) | |
10.19 | Amendment to Change in Control Agreement between the Trust and Andrew P. Blocher dated January 1, 2009 (previously filed as Exhibit 10.31 to the Trust’s 2008 Form 10-K and incorporated herein by reference) | |
10.20 | Amendment to Stock Option Agreements between the Trust and Andrew P. Blocher dated February 17, 2009 (previously filed as Exhibit 10.32 to the Trust’s 2008 Form 10-K and incorporated herein by reference) | |
10.21 | Restricted Share Award Agreement between the Trust and Andrew P. Blocher dated February 17, 2009 (previously filed as Exhibit 10.33 to the Trust’s 2008 Form 10-K and incorporated herein by reference) | |
10.22 | Combined Incentive and Non-Qualified Stock Option Agreement between the Trust and Andrew P. Blocher dated February 17, 2009 (previously filed as Exhibit 10.34 to the Trust’s 2008 Form 10-K and incorporated herein by reference) | |
10.23 | * Severance Agreement between the Trust and Andrew P. Blocher dated February 17, 2009 (previously filed as Exhibit 10.35 to the Trust’s 2008 Form 10-K and incorporated herein by reference) |
Exhibit No. | Description | |
10.24 | 2010 Performance Incentive Plan (previously filed as Appendix A to the Trust’s Definitive Proxy Statement for the 2010 Annual Meeting of Shareholders (File No. 01-07533) and incorporated herein by reference) | |
10.25 | Amendment to 2010 Performance Incentive Plan (“the 2010 Plan”) (previously filed as Appendix A to the Trust’s Proxy Supplement for the 2010 Annual Meeting of Shareholders (File No. 01-07533) and incorporated herein by reference) | |
10.26 | * Restricted Share Award Agreement between the Trust and Donald C. Wood dated October 12, 2010 (previously filed as Exhibit 10.36 to the Trust’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 (File No. 01-07533) and incorporated herein by reference) | |
10.27 | Form of Restricted Share Award Agreement for awards made under the Trust’s Long-Term Incentive Award Program and the Trust’s Annual Incentive Bonus Program and basic awards with annual vesting for shares issued out of the 2010 Plan (previously filed as Exhibit 10.34 to the Trust’s Annual Report on Form 10-K for the year ended December 31, 2010 (File No. 1-07533) (the “2010 Form 10-K”) and incorporated herein by reference) | |
10.28 | Form of Option Award Agreement for awards made under the Trust’s Long-Term Incentive Award Program for shares issued out of the 2010 Plan (previously filed as Exhibit 10.38 to the Trust’s 2010 Form 10-K (File No. 1-07533) and incorporated herein by reference) | |
10.29 | Form of Option Award Agreement for front loaded awards made under the Trust’s Long-Term Incentive Award Program for shares issued out of the 2010 Plan (previously filed as Exhibit 10.39 to the Trust’s 2010 Form 10-K (File No. 1-07533) and incorporated herein by reference) | |
10.30 | Form of Option Award Agreement for basic options awarded out of the 2010 Plan (previously filed as Exhibit 10.40 to the Trust’s 2010 Form 10-K (File No. 1-07533) and incorporated herein by reference) | |
10.31 | Form of Restricted Share Award Agreement, dated as of February 10, 2011, between the Trust and each of Dawn M. Becker, and Andrew P. Blocher (previously filed as Exhibit 10.41 to the Trust’s 2010 Form 10-K (File No. 1-07533) and incorporated herein by reference) | |
10.32 | * Severance Agreement between the Trust and James M. Taylor dated July 30, 2012 (previously filed as Exhibit 10.35 to the Trust's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 (File No. 1-07533) and incorporated herein by reference) | |
10.33 | Credit Agreement dated as of July 7, 2011, by and among the Trust, as Borrower, the financial institutions party thereto and their permitted assignees under Section 12.6., as Lenders, Wells Fargo Bank, National Association, as Administrative Agent, PNC Bank, National Association, as Syndication Agent, Wells Fargo Securities, LLC, as a Lead Arranger and Book Manager, and PNC Capital Markets LLC, as a Lead Arranger and Book Manager (previously filed as Exhibit 10.1 to the Trust’s Current Report on Form 8-K (File No. 1-07533), filed on July 11, 2011 and incorporated herein by reference) | |
10.34 | Credit Agreement dated as of November 22, 2011, by and among the Trust, as Borrower, the financial institutions party thereto and their permitted assignees under Section 12.6., as Lenders, PNC Bank, National Association, as Administrative Agent, Capital One, N.A., as Syndication Agent, PNC Capital Markets, LLC, as a Lead Arranger and Book Manager, and Capital One, N.A., as a Lead Arranger and Book Manager (previously filed as Exhibit 10.1 to the Trust’s Current Report on Form 8-K (File No. 1-07533), filed on November 28, 2011 and incorporated herein by reference) | |
10.35 | Form of Restricted Share Award Agreement for front loaded awards made under the Trust’s Long-Term Incentive Award Program for shares issued out of the 2010 Plan (filed herewith) | |
10.36 | Form of Restricted Share Award Agreement for long-term vesting and retention awards made under the Trust’s Long-Term Incentive Award Program for shares issued out of the 2010 Plan (filed herewith) | |
10.37 | Form of Performance Share Award Agreement for shares awarded out of the 2010 Plan (filed herewith) | |
10.38 | Revised Form of Restricted Share Award Agreement for awards made under the Trust’s Long-Term Incentive Award Program and the Trust’s Annual Incentive Bonus Program and basic awards with annual vesting for shares issued out of the 2010 Plan (filed herewith) |
Exhibit No. | Description | |
21.1 | Subsidiaries of Federal Realty Investment Trust (filed herewith) | |
23.1 | Consent of Grant Thornton LLP (filed herewith) | |
31.1 | Rule 13a-14(a) Certification of Chief Executive Officer (filed herewith) | |
31.2 | Rule 13a-14(a) Certification of Chief Financial Officer (filed herewith) | |
32.1 | Section 1350 Certification of Chief Executive Officer (filed herewith) | |
32.2 | Section 1350 Certification of Chief Financial Officer (filed herewith) | |
101 | The following materials from Federal Realty Investment Trust’s Quarterly Report on Form 10-K for the year ended December 31, 2012, formatted in XBRL (Extensible Business Reporting Language): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Comprehensive Income, (3) the Consolidated Statement of Shareholders’ Equity, (4) the Consolidated Statements of Cash Flows, and (5) Notes to Consolidated Financial Statements that have been detail tagged. |
NAME OF SUBSIDIARY | STATE OF INCORPORATION OF ORGANIZATION | |
Street Retail, Inc | Maryland | |
FRIT San Jose Town and Country Village, LLC | California |
1) | I have reviewed this annual report on Form 10-K of Federal Realty Investment Trust; |
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 trustees (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. |
February 12, 2013 | /s/ Donald C. Wood | |
Donald C. Wood, | ||
President, Chief Executive Officer and Trustee | ||
(Principal Executive Officer) |
1) | I have reviewed this annual report on Form 10-K of Federal Realty Investment Trust; |
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 trustees (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. |
February 12, 2013 | /s/ James M. Taylor, Jr. | |
James M. Taylor, Jr., | ||
Executive Vice President - Chief Financial Officer and Treasurer | ||
(Principal Financial and Accounting Officer) |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
February 12, 2013 | /s/ Donald C. Wood | |
Donald C. Wood, | ||
President, Chief Executive Officer and Trustee | ||
(Principal Executive Officer) |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
February 12, 2013 | /s/ James M. Taylor, Jr. | |
James M. Taylor, Jr., | ||
Executive Vice President - Chief Financial Officer and Treasurer | ||
(Principal Financial and Accounting Officer) |
Operating Leases (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Operating Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2012, minimum future commercial property rentals from noncancelable operating leases, before any reserve for uncollectible amounts and assuming no early lease terminations, at our operating properties are as follows:
|
Debt (Summary Of Debt Outstanding) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Dec. 31, 2011
|
Dec. 31, 2012
Courtyard Shops [Member]
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Dec. 31, 2011
Courtyard Shops [Member]
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Dec. 31, 2012
Bethesda Row Maturing Jan 1 2013 [Member]
|
Dec. 31, 2011
Bethesda Row Maturing Jan 1 2013 [Member]
|
Dec. 31, 2012
Bethesda Row Maturing Feb 1 2013 [Member]
|
Dec. 31, 2011
Bethesda Row Maturing Feb 1 2013 [Member]
|
Dec. 31, 2012
White Marsh Plaza [Member]
|
Dec. 31, 2011
White Marsh Plaza [Member]
|
Dec. 31, 2012
Crow Canyon [Member]
|
Dec. 31, 2011
Crow Canyon [Member]
|
Dec. 31, 2012
Idylwood Plaza [Member]
|
Dec. 31, 2011
Idylwood Plaza [Member]
|
Dec. 31, 2012
Leesburg Plaza [Member]
|
Dec. 31, 2011
Leesburg Plaza [Member]
|
Dec. 31, 2012
Loehmanns Plaza [Member]
|
Dec. 31, 2011
Loehmanns Plaza [Member]
|
Dec. 31, 2012
Pentagon Row [Member]
|
Dec. 31, 2011
Pentagon Row [Member]
|
Dec. 31, 2012
Melville Mall [Member]
|
Dec. 31, 2011
Melville Mall [Member]
|
Dec. 31, 2012
THE AVENUE at White Marsh [Member]
|
Dec. 31, 2011
THE AVENUE at White Marsh [Member]
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Dec. 31, 2012
Barracks Road [Member]
|
Dec. 31, 2011
Barracks Road [Member]
|
Dec. 31, 2012
Hauppauge [Member]
|
Dec. 31, 2011
Hauppauge [Member]
|
Dec. 31, 2012
Lawrence Park [Member]
|
Dec. 31, 2011
Lawrence Park [Member]
|
Dec. 31, 2012
Wildwood [Member]
|
Dec. 31, 2011
Wildwood [Member]
|
Dec. 31, 2012
Wynnewood [Member]
|
Dec. 31, 2011
Wynnewood [Member]
|
Dec. 31, 2012
Brick Plaza [Member]
|
Dec. 31, 2011
Brick Plaza [Member]
|
Dec. 31, 2012
EastBayBridge [Member]
|
Dec. 31, 2011
EastBayBridge [Member]
|
Dec. 31, 2012
Plaza El Segundo [Member]
|
Dec. 31, 2011
Plaza El Segundo [Member]
|
Dec. 31, 2012
Rollingwood Apartments [Member]
|
Dec. 31, 2011
Rollingwood Apartments [Member]
|
Dec. 31, 2012
Shoppers' World [Member]
|
Dec. 31, 2011
Shoppers' World [Member]
|
Dec. 31, 2012
Montrose Crossing [Member]
|
Dec. 31, 2011
Montrose Crossing [Member]
|
Dec. 31, 2012
Mount Vernon [Member]
|
Dec. 31, 2011
Mount Vernon [Member]
|
Dec. 31, 2012
Chelsea [Member]
|
Dec. 31, 2011
Chelsea [Member]
|
Dec. 31, 2012
Revolving Credit Facility Maturing Jul 6 2015 [Member]
|
Dec. 31, 2012
Municipal Bonds [Member]
|
Dec. 31, 2011
Municipal Bonds [Member]
|
Dec. 31, 2012
Term Loan [Member]
|
Dec. 31, 2011
Term Loan [Member]
|
Dec. 31, 2012
Various Notes Payable [Member]
|
Dec. 31, 2011
Various Notes Payable [Member]
|
Dec. 31, 2012
Senior600PercentNotes [Member]
|
Dec. 31, 2011
Senior600PercentNotes [Member]
|
Dec. 31, 2012
Senior 5.40 Percent Notes [Member]
|
Dec. 31, 2011
Senior 5.40 Percent Notes [Member]
|
Dec. 31, 2012
Senior 5.95 Percent Notes [Member]
|
Dec. 31, 2011
Senior 5.95 Percent Notes [Member]
|
Dec. 31, 2012
Senior 5.65 Percent Notes [Member]
|
Dec. 31, 2011
Senior 5.65 Percent Notes [Member]
|
Dec. 31, 2012
Senior 6.20 Percent Notes [Member]
|
Dec. 31, 2011
Senior 6.20 Percent Notes [Member]
|
Dec. 31, 2012
Senior 5.90 Percent Notes [Member]
|
Dec. 31, 2011
Senior 5.90 Percent Notes [Member]
|
Dec. 31, 2012
Senior300PercentNotes [Member]
|
Jul. 19, 2012
Senior300PercentNotes [Member]
|
Dec. 31, 2011
Senior300PercentNotes [Member]
|
Dec. 31, 2012
Debentures 7.48 Percent [Member]
|
Dec. 31, 2011
Debentures 7.48 Percent [Member]
|
Dec. 31, 2012
Medium Term Notes 6.82 Percent [Member]
|
Dec. 31, 2011
Medium Term Notes 6.82 Percent [Member]
|
Dec. 31, 2012
Secured Debt [Member]
|
Dec. 31, 2011
Secured Debt [Member]
|
Dec. 31, 2012
Senior Notes [Member]
|
Dec. 31, 2011
Senior Notes [Member]
|
|
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loan face amount | $ 0 | $ 7,045 | $ 0 | $ 19,993 | $ 0 | $ 4,016 | $ 8,970 | $ 9,284 | $ 19,485 | $ 19,951 | $ 15,987 | $ 16,276 | $ 27,818 | $ 28,320 | $ 35,972 | $ 36,621 | $ 51,640 | $ 52,572 | $ 21,536 | $ 22,325 | $ 55,336 | $ 56,603 | $ 38,070 | $ 38,995 | $ 14,352 | $ 14,700 | $ 26,984 | $ 27,640 | $ 23,719 | $ 24,295 | $ 27,500 | $ 28,168 | $ 28,033 | $ 28,757 | $ 62,946 | $ 0 | $ 175,000 | $ 175,000 | $ 22,890 | $ 23,236 | $ 5,286 | $ 5,444 | $ 78,755 | $ 80,000 | $ 0 | $ 10,554 | $ 7,454 | $ 7,628 | $ 0 | $ 175,000 | $ 135,000 | $ 135,000 | $ 150,000 | $ 150,000 | $ 125,000 | $ 125,000 | $ 200,000 | $ 200,000 | $ 150,000 | $ 150,000 | $ 250,000 | $ 250,000 | $ 0 | $ 29,200 | $ 29,200 | $ 40,000 | $ 40,000 | $ 747,733 | $ 737,423 | $ 1,079,200 | $ 1,004,200 | |||||||||
Stated Interest Rate | 6.87% | 5.37% | 5.05% | 6.04% | 5.40% | 7.50% | 7.50% | 7.50% | 7.50% | 5.25% | 5.46% | 7.95% | 7.95% | 7.95% | 7.95% | 7.95% | 7.42% | 5.129% | 6.33% | 5.54% | 5.91% | 4.20% | 5.66% | 5.36% | 0.21% | 5.27% | 6.00% | 5.40% | 5.95% | 5.65% | 6.20% | 5.90% | 3.00% | 3.00% | 7.48% | 6.82% | ||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, amount outstanding | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate Terms | LIBOR + 1.15% | LIBOR + 1.45% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unamortized premium (discount) | 13,056 | 10,100 | (2,655) | 435 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages payable | 760,789 | 747,523 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable | 299,575 | 295,159 | 9,400 | 9,400 | 275,000 | 275,000 | 15,175 | 10,759 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes and debentures | 1,076,545 | 1,004,635 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital lease obligations | 71,693 | 63,093 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt and capital lease obligations | $ 2,208,602 | $ 2,110,410 |
Real Estate Real Estate (Summary Of Real Estate Investments) (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Real Estate Investments [Line Items] | ||
Cost | $ 4,779,674 | $ 4,426,444 |
Accumulated Depreciation and Amortization | (1,224,295) | (1,127,588) |
Encumbrances | 832,482 | 810,616 |
Retail And Mixed-Use Properties [Member]
|
||
Real Estate Investments [Line Items] | ||
Cost | 4,655,943 | 4,304,089 |
Accumulated Depreciation and Amortization | (1,187,993) | (1,087,704) |
Encumbrances | 737,899 | 724,287 |
Retail Properties Under Capital Leases [Member]
|
||
Real Estate Investments [Line Items] | ||
Cost | 114,571 | 113,605 |
Accumulated Depreciation and Amortization | (29,051) | (33,019) |
Encumbrances | 71,693 | 63,093 |
Residential [Member]
|
||
Real Estate Investments [Line Items] | ||
Cost | 9,160 | 8,750 |
Accumulated Depreciation and Amortization | (7,251) | (6,865) |
Encumbrances | $ 22,890 | $ 23,236 |
Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Earnings Per Share [Abstract] | |||
Weighted average unvested shares outstanding | 0.3 | 0.3 | 0.2 |
Anti-dilutive stock options excluded from dilutive earnings per share calculation | 0 | 0.1 | 0.2 |
5.417% Series 1 Cumulative Convertible Preferred [Member]
|
|||
Earnings Per Share [Abstract] | |||
Cumulative convertible preferred share, dividend rate | 5.417% | 5.417% | 5.417% |
Debt (Narrative) (Details) (USD $)
|
12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Jun. 01, 2012
Courtyard Shops [Member]
|
Dec. 31, 2012
Courtyard Shops [Member]
|
Dec. 31, 2011
Courtyard Shops [Member]
|
Jul. 16, 2012
Senior600PercentNotes [Member]
|
Dec. 31, 2012
Senior600PercentNotes [Member]
|
Dec. 31, 2011
Senior600PercentNotes [Member]
|
Oct. 22, 2012
Mount Vernon [Member]
|
Dec. 31, 2012
Mount Vernon [Member]
|
Dec. 31, 2011
Mount Vernon [Member]
|
Nov. 02, 2012
Bethesda Row Maturing Jan 1 2013 [Member]
|
Dec. 31, 2012
Bethesda Row Maturing Jan 1 2013 [Member]
|
Dec. 31, 2011
Bethesda Row Maturing Jan 1 2013 [Member]
|
Dec. 03, 2012
Bethesda Row Maturing Feb 1 2013 [Member]
|
Dec. 31, 2012
Bethesda Row Maturing Feb 1 2013 [Member]
|
Dec. 31, 2011
Bethesda Row Maturing Feb 1 2013 [Member]
|
Jul. 19, 2012
Senior300PercentNotes [Member]
|
Dec. 31, 2012
Senior300PercentNotes [Member]
|
Dec. 31, 2011
Senior300PercentNotes [Member]
|
Dec. 31, 2012
EastBayBridge [Member]
|
Dec. 21, 2012
EastBayBridge [Member]
|
Dec. 31, 2011
EastBayBridge [Member]
|
|
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | |||||||||||||||||||||||
Debt Instrument, Face Amount | 62,900,000 | |||||||||||||||||||||||
Long-term Debt, Fair Value | 67,600,000 | |||||||||||||||||||||||
Stated Interest Rate | 6.87% | 6.00% | 5.66% | 5.37% | 5.05% | 3.00% | 3.00% | 5.129% | ||||||||||||||||
Debt Instrument Carrying Amount | 0 | 7,045,000 | 0 | 175,000,000 | 0 | 10,554,000 | 0 | 19,993,000 | 0 | 4,016,000 | 250,000,000 | 250,000,000 | 0 | 62,946,000 | 0 | |||||||||
Proceeds from Issuance of Senior Long-term Debt | 244,807,000 | 0 | 148,457,000 | 244,800,000 | ||||||||||||||||||||
Repayment of mortgage loan | 6,900,000 | 10,200,000 | 20,000,000 | 3,900,000 | ||||||||||||||||||||
Repayments of Senior Debt | 175,000,000 | 75,000,000 | 0 | 175,000,000 | ||||||||||||||||||||
Revolving credit facility, maximum outstanding | 186,000,000 | 265,000,000 | 82,000,000 | |||||||||||||||||||||
Line of credit facility, weighted average amount outstanding | 1,500,000 | 163,500,000 | 23,400,000 | |||||||||||||||||||||
Line of credit facility weighted average interest rate before amortization of debt fees | 1.40% | 1.00% | 0.70% | |||||||||||||||||||||
Line of credit facility, amount outstanding | 0 | 0 | ||||||||||||||||||||||
Line of Credit Facility, Commitment Fee Amount | 800,000 | |||||||||||||||||||||||
Repayments of Debt | $ 216,000,000 |
Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
|
12 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
segment
properties
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Building and Building Improvements [Member]
Minimum [Member]
|
Dec. 31, 2012
Building and Building Improvements [Member]
Maximum [Member]
|
Dec. 31, 2012
Minor Improvements, Furniture and Equipment [Member]
Minimum [Member]
|
Dec. 31, 2012
Minor Improvements, Furniture and Equipment [Member]
Maximum [Member]
|
Dec. 31, 2012
Plaza El Segundo [Member]
|
Dec. 31, 2011
Plaza El Segundo [Member]
|
Dec. 30, 2011
Plaza El Segundo [Member]
|
Dec. 31, 2012
Melville Mall [Member]
|
Dec. 31, 2011
Melville Mall [Member]
|
Oct. 16, 2006
Melville Mall [Member]
year
|
Oct. 16, 2021
Melville Mall [Member]
Purchased Call Option [Member]
|
Oct. 16, 2023
Melville Mall [Member]
Put Option [Member]
|
Dec. 31, 2012
Commercial Real Estate [Member]
Minimum [Member]
|
Dec. 31, 2012
Commercial Real Estate [Member]
Maximum [Member]
|
|
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||
Property, Plant and Equipment, Useful Life | 35 years | 50 years | 2 years | 20 years | |||||||||||||
Operating Lease, Term | 3 years | 10 years | |||||||||||||||
Allowance for Doubtful Accounts Receivable | $ 15,900,000 | $ 17,600,000 | |||||||||||||||
Straight Line Rents, Collection Of Accounts Receivable, Period | 1 year | ||||||||||||||||
Deferred Rent Receivables, Net | 56,100,000 | 50,500,000 | |||||||||||||||
Depreciation Expense Real Estate | 128,700,000 | 114,200,000 | 108,300,000 | ||||||||||||||
Investments Classified As Cash And Cash Equivalents, Initial Maturity | 3 months | ||||||||||||||||
Cash, Uninsured Amount | 33,600,000 | ||||||||||||||||
Split Dollar Insurance Premiums Paid | 4,600,000 | 4,600,000 | |||||||||||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 4,200,000 | ||||||||||||||||
Hedging Instruments Outstanding | 0 | ||||||||||||||||
Residual Profit Maxiumum | 50.00% | ||||||||||||||||
Master Lease Term | 20 | ||||||||||||||||
Secured Debt F R T | 34,200,000 | ||||||||||||||||
Purchase Price Under Option | 5,000,000 | 5,000,000 | |||||||||||||||
Mortgages payable | 760,789,000 | 747,523,000 | 183,900,000 | 185,600,000 | 21,400,000 | 22,100,000 | |||||||||||
Real estate, net | 3,555,379,000 | 3,298,856,000 | 189,400,000 | 194,600,000 | 63,100,000 | 64,000,000 | |||||||||||
Maximum period of sale to defer gain on sale of other property, days | 180 | ||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 48.20% | ||||||||||||||||
Real Estate Maximum Exposure to Loss | 17,500,000 | ||||||||||||||||
Minimum Percentage Of Taxable Income Distributed To Shareholders | 90.00% | ||||||||||||||||
Unrecognized Tax Benefits | $ 0 | $ 0 | |||||||||||||||
Number of Properties Exceeding Segment Reporting Threshold | 0 | ||||||||||||||||
Segment Reporting, Factors Used to Identify Entity's Reportable Segments | 10% of our revenues or property operating income | ||||||||||||||||
Number of Segments | 1 |
Real Estate Partnerships (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Operating Results And Financial Position Of Partnership | The following tables provide summarized operating results and the financial position of the Partnership:
|
Subsequent Event (Details) (White Marsh Plaza [Member], USD $)
In Millions, unless otherwise specified |
0 Months Ended |
---|---|
Jan. 02, 2013
|
|
White Marsh Plaza [Member]
|
|
Subsequent Event [Line Items] | |
Repayments of Secured Debt | $ 9.0 |
Debt (Future Minimum Lease Payments) (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
---|---|
Debt Disclosure [Abstract] | |
2013 | $ 5,787 |
2014 | 5,788 |
2015 | 5,787 |
2016 | 5,788 |
2017 | 5,797 |
Thereafter | 171,810 |
Capital Leases, Future Minimum Payments Due | 200,757 |
Less amount representing interest | (129,064) |
Present value | $ 71,693 |
Schedule IV - Mortgage Loans on Real Estate (Details) (USD $)
|
12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Mortgage On Retail Buildings in Philadelphia, PA, Loan One [Member]
|
Dec. 31, 2012
Mortgage On Retail Buildings in Philadelphia, PA, Loan Two [Member]
|
Aug. 04, 2006
Second Mortgage On Hotel In San Jose, CA [Member]
|
Dec. 31, 2012
Second Mortgage On Hotel In San Jose, CA [Member]
|
Dec. 31, 2011
Second Mortgage On Hotel In San Jose, CA [Member]
|
Feb. 02, 2011
Mortgage On Restaurant In Rockville, MD [Member]
|
Dec. 31, 2012
Mortgage On Restaurant In Rockville, MD [Member]
|
Dec. 31, 2012
Mortgage loan on a shopping center and an adjacent commercial building in Norwalk ,CT [Member]
|
Jun. 30, 2011
Mortgage loan on a shopping center and an adjacent commercial building in Norwalk ,CT [Member]
|
Dec. 31, 2012
Maximum [Member]
Mortgage On Retail Buildings in Philadelphia, PA, Loan One [Member]
|
Dec. 31, 2012
Interest Rate One [Member]
Mortgage On Retail Buildings in Philadelphia, PA, Loan One [Member]
|
Dec. 31, 2012
Interest Rate Two [Member]
Mortgage On Retail Buildings in Philadelphia, PA, Loan One [Member]
|
Feb. 02, 2011
Extension Option One [Member]
Mortgage On Restaurant In Rockville, MD [Member]
|
Dec. 31, 2012
Extension Option One [Member]
Mortgage loan on a shopping center and an adjacent commercial building in Norwalk ,CT [Member]
|
Feb. 02, 2011
Extension Option Two [Member]
Mortgage On Restaurant In Rockville, MD [Member]
|
||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate, Participation Plus Interest Rate, Interest Rate | 10.00% | 8.00% | 10.00% | ||||||||||||||||||||||||||||||||
Prior Liens | $ 35,000,000 | $ 0 | $ 0 | $ 35,000,000 | [1],[2] | $ 0 | [3] | $ 0 | [4] | ||||||||||||||||||||||||||
Face Amount of Mortgages | 57,777,000 | 20,286,000 | 9,250,000 | 12,914,000 | [1] | 14,200,000 | 3,612,000 | [3] | 11,715,000 | [4] | 11,900,000 | 25,000,000 | |||||||||||||||||||||||
Carrying Amount of Mortgages | 55,648,000 | [5] | 56,000,000 | 20,286,000 | [6] | 9,250,000 | 10,785,000 | [1] | 3,612,000 | [3] | 11,715,000 | [4] | |||||||||||||||||||||||
Principal Amount of Loans Subject to delinquent Principal or Interest | 0 | 0 | 0 | 0 | [1] | 0 | [3] | 0 | [4] | ||||||||||||||||||||||||||
Mortgage Loans on Real Estate, Other Required Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate, Federal Income Tax Basis | 57,800,000 | ||||||||||||||||||||||||||||||||||
Payments of Principal and Interest Based on Amortization Schedule, Period | 15 years | 30 years | |||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate, Interest Rate, Increase in Subsequent Year of Extension | 1.00% | ||||||||||||||||||||||||||||||||||
Extension Option Period | 1 year | 1 year | 3 years | ||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate, Interest Rate | 9.40% | 9.20% | 14.00% | 9.00% | 9.00% | 6.00% | 12.00% | 7.00% | |||||||||||||||||||||||||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||||||||||||||||||||||||||
Balance at beginning of year | 55,967,000 | 44,813,000 | 48,336,000 | ||||||||||||||||||||||||||||||||
Issuance of loans | 70,000 | 130,000 | 14,787,000 | ||||||||||||||||||||||||||||||||
Deconsolidation of VIE | 18,311,000 | ||||||||||||||||||||||||||||||||||
Collection and satisfaction of loans | (1,161,000) | (7,598,000) | (464,000) | ||||||||||||||||||||||||||||||||
Amortization of discount /loan fee | 772,000 | 311,000 | 465,000 | ||||||||||||||||||||||||||||||||
Consolidation of VIE | (18,311,000) | ||||||||||||||||||||||||||||||||||
Balance at end of year | $ 55,648,000 | $ 55,967,000 | $ 44,813,000 | ||||||||||||||||||||||||||||||||
|
Earnings Per Share (Schedule Of Earnings Per Share) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Income from continuing operations | $ 144,372 | $ 131,554 | $ 125,851 | ||||||||||||||
Less: Preferred share dividends | (541) | (541) | (541) | ||||||||||||||
Less: Income from continuing operations attributable to noncontrolling interests | (4,307) | (5,475) | (5,247) | ||||||||||||||
Less: Earnings allocated to unvested shares | (845) | (705) | (572) | ||||||||||||||
Income from continuing operations available for common shareholders | 138,679 | 124,833 | 119,491 | ||||||||||||||
Results from discontinued operations attributable to the Trust | 0 | 17,838 | 1,776 | ||||||||||||||
Gain on sale of real estate | 11,860 | 0 | 410 | ||||||||||||||
Net income available for common shareholders, basic and diluted | 150,539 | 142,671 | 121,677 | ||||||||||||||
Weighted average common shares outstanding-basic | 63,881 | 62,438 | 61,182 | ||||||||||||||
Stock options | 175 | 165 | 142 | ||||||||||||||
Weighted average common shares outstanding-diluted | 64,056 | 62,603 | 61,324 | ||||||||||||||
Continuing operations | $ 2.17 | $ 2.00 | $ 1.95 | ||||||||||||||
Discontinued operations | $ 0.00 | $ 0.29 | $ 0.03 | ||||||||||||||
Gain on sale of real estate | $ 0.19 | $ 0.00 | $ 0.01 | ||||||||||||||
Earnings Per Share, Basic, Total | $ 0.58 | $ 0.60 | $ 0.51 | $ 0.67 | $ 0.48 | [1] | $ 0.74 | [1] | $ 0.55 | [1] | $ 0.50 | [1] | $ 2.36 | $ 2.29 | $ 1.99 | ||
Continuing operations | $ 2.16 | $ 1.99 | $ 1.94 | ||||||||||||||
Discontinued operations | $ 0.00 | $ 0.29 | $ 0.03 | ||||||||||||||
Gain on sale of real estate | $ 0.19 | $ 0.00 | $ 0.01 | ||||||||||||||
Earnings Per Share, Diluted, Total | $ 0.58 | $ 0.60 | $ 0.51 | $ 0.67 | $ 0.48 | [1] | $ 0.74 | [1] | $ 0.55 | [1] | $ 0.50 | [1] | $ 2.35 | $ 2.28 | $ 1.98 | ||
Income from continuing operations attributable to the Trust | $ 140,065 | $ 126,079 | $ 120,604 | ||||||||||||||
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Selected Quarterly Financial Data (Unaudited)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Selected Quarterly Financial data (Unaudited) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data is as follows:
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Mortgage Notes Receivable (Details) (USD $)
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12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
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Dec. 31, 2012
loan
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Dec. 31, 2011
loan
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Dec. 31, 2010
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Aug. 04, 2006
Second Mortgage On Hotel In San Jose, CA [Member]
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Dec. 31, 2012
Second Mortgage On Hotel In San Jose, CA [Member]
loan
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Dec. 31, 2011
Second Mortgage On Hotel In San Jose, CA [Member]
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Dec. 31, 2012
First Mortgage [Member]
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Dec. 31, 2011
First Mortgage [Member]
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Dec. 31, 2012
Mortgage loan on a shopping center and an adjacent commercial building in Norwalk ,CT [Member]
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Dec. 31, 2011
Mortgage loan on a shopping center and an adjacent commercial building in Norwalk ,CT [Member]
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Jun. 30, 2011
Mortgage loan on a shopping center and an adjacent commercial building in Norwalk ,CT [Member]
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Jun. 29, 2011
Mortgage loan on a shopping center and an adjacent commercial building in Norwalk ,CT [Member]
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Dec. 31, 2012
Extension Option One [Member]
Mortgage loan on a shopping center and an adjacent commercial building in Norwalk ,CT [Member]
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Mortgage Loans on Real Estate [Line Items] | ||||||||||||||||||||||
Mortgage Loans on Real Estate, Number of Loans | 5 | 5 | 1 | |||||||||||||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 55,648,000 | [1] | $ 56,000,000 | $ 10,785,000 | [2] | $ 44,900,000 | $ 44,700,000 | $ 11,715,000 | [3] | |||||||||||||
Principal balance of first mortgage loan | 57,777,000 | 12,914,000 | [2] | 14,200,000 | 11,715,000 | [3] | 11,900,000 | |||||||||||||||
Allowance for Loan and Lease Losses, Real Estate | 2,100,000 | 2,900,000 | ||||||||||||||||||||
Mortgage Loans, Weighted Average Interest Rate | 9.40% | 9.20% | 14.00% | 9.00% | 6.00% | 7.00% | ||||||||||||||||
Mortgage loan carrying balance | 18,300,000 | |||||||||||||||||||||
Maturity date of first mortgage loan | Jun. 30, 2014 | |||||||||||||||||||||
Extension Option Period | 1 year | |||||||||||||||||||||
Cash received as part of refinancing | 8,700,000 | |||||||||||||||||||||
Mortgage Loan Fair Value | 11,900,000 | |||||||||||||||||||||
Discontinued operations - gain on deconsolidation of VIE | $ 0 | $ 2,026,000 | $ 0 | $ 2,026,000 | ||||||||||||||||||
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Share-Based Compensation Plans (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Share Based Compensation Expense | A summary of share-based compensation expense included in net income is as follows:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table provides a summary of the weighted-average assumption used to value options in 2010:
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Schedule of Share-based Compensation, Stock Options, Activity | The following table provides a summary of option activity for 2012:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table provides a summary of restricted share activity for 2012:
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Stock Award [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Subsequent to December 31, 2012, common shares were awarded under various compensation plans as follows:
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Commitments and Contingencies (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases of Lessee Disclosure | We are obligated under ground lease agreements on several shopping centers requiring minimum annual payments as follows, as of December 31, 2012:
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Real Estate Partnerships (Summarized Operating Results and Financial Position of Partnership) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
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Sep. 30, 2012
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Jun. 30, 2012
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Mar. 31, 2012
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Dec. 31, 2011
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Sep. 30, 2011
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Jun. 30, 2011
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Mar. 31, 2011
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Real Estate Partnerships Operating Results [Line Items] | ||||||||||||||||||||
Revenue | $ 156,364 | $ 157,805 | $ 147,560 | $ 146,289 | $ 141,466 | [1] | $ 137,664 | [1] | $ 136,279 | [1] | $ 137,650 | [1] | $ 608,018 | $ 553,059 | $ 541,797 | |||||
Depreciation and amortization | 142,039 | 126,208 | 118,878 | |||||||||||||||||
Interest expense | 113,336 | 98,465 | 101,882 | |||||||||||||||||
NET INCOME | 38,858 | 39,656 | 33,596 | 44,122 | 32,455 | [2] | 48,302 | [2] | 36,471 | [2] | 32,384 | [2] | 156,232 | 149,612 | 128,237 | |||||
Our share of net income from real estate partnership | 1,757 | 1,808 | 1,060 | |||||||||||||||||
Real estate, net | 3,555,379 | 3,298,856 | 3,555,379 | 3,298,856 | ||||||||||||||||
Cash | 36,988 | 67,806 | 36,988 | 67,806 | 15,797 | 135,389 | ||||||||||||||
TOTAL ASSETS | 3,898,565 | 3,666,210 | 3,898,565 | 3,666,210 | ||||||||||||||||
Mortgages payable | 760,789 | 747,523 | 760,789 | 747,523 | ||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,898,565 | 3,666,210 | 3,898,565 | 3,666,210 | ||||||||||||||||
Our investment in real estate partnership | 33,169 | 34,352 | 33,169 | 34,352 | ||||||||||||||||
Federal / Lion Venture LP [Member]
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Real Estate Partnerships Operating Results [Line Items] | ||||||||||||||||||||
Revenue | 19,051 | 19,289 | 18,639 | |||||||||||||||||
Other operating expenses | 5,234 | 5,593 | 6,149 | |||||||||||||||||
Depreciation and amortization | 5,508 | 5,179 | 5,046 | |||||||||||||||||
Interest expense | 3,376 | 3,388 | 3,400 | |||||||||||||||||
Total expenses | 14,118 | 14,160 | 14,595 | |||||||||||||||||
NET INCOME | 4,933 | 5,129 | 4,044 | |||||||||||||||||
Our share of net income from real estate partnership | 1,815 | 1,771 | 1,449 | |||||||||||||||||
Real estate, net | 174,509 | 178,693 | 174,509 | 178,693 | ||||||||||||||||
Cash | 2,735 | 3,035 | 2,735 | 3,035 | ||||||||||||||||
Other assets | 5,536 | 6,116 | 5,536 | 6,116 | ||||||||||||||||
TOTAL ASSETS | 182,780 | 187,844 | 182,780 | 187,844 | ||||||||||||||||
Mortgages payable | 57,155 | 57,376 | 57,155 | 57,376 | ||||||||||||||||
Other liabilities | 4,771 | 5,391 | 4,771 | 5,391 | ||||||||||||||||
Partners' capital | 120,854 | 125,077 | 120,854 | 125,077 | ||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 182,780 | 187,844 | 182,780 | 187,844 | ||||||||||||||||
Our share of unconsolidated debt | 17,147 | 17,213 | 17,147 | 17,213 | ||||||||||||||||
Our investment in real estate partnership | $ 33,169 | $ 34,352 | $ 33,169 | $ 34,352 | ||||||||||||||||
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Summary Of Significant Accounting Policies
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Dec. 31, 2012
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Our consolidated financial statements include the accounts of the Trust, its corporate subsidiaries, and all entities in which the Trust has a controlling interest or has been determined to be the primary beneficiary of a variable interest entity (“VIE”). The equity interests of other investors are reflected as noncontrolling interests or redeemable noncontrolling interests. All significant intercompany transactions and balances are eliminated in consolidation. We account for our interests in joint ventures, which we do not control, using the equity method of accounting. Certain 2011 and 2010 amounts have been reclassified to conform to current period presentation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP,” requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management’s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates. Revenue Recognition and Accounts Receivable Our leases with tenants are classified as operating leases. Substantially all such leases contain fixed escalations which occur at specified times during the term of the lease. Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management’s assessment of credit, collection and other business risk. Percentage rents, which represent additional rents based upon the level of sales achieved by certain tenants, are recognized at the end of the lease year or earlier if we have determined the required sales level is achieved and the percentage rents are collectible. Real estate tax and other cost reimbursements are recognized on an accrual basis over the periods in which the related expenditures are incurred. For a tenant to terminate its lease agreement prior to the end of the agreed term, we may require that they pay a fee to cancel the lease agreement. Lease termination fees for which the tenant has relinquished control of the space are generally recognized on the termination date. When a lease is terminated early but the tenant continues to control the space under a modified lease agreement, the lease termination fee is generally recognized evenly over the remaining term of the modified lease agreement. We make estimates of the collectability of our accounts receivable related to minimum rents, straight-line rents, expense reimbursements and other revenue. Accounts receivable is carried net of this allowance for doubtful accounts. Our determination as to the collectability of accounts receivable and correspondingly, the adequacy of this allowance, is based primarily upon evaluations of individual receivables, current economic conditions, historical experience and other relevant factors. The allowance for doubtful accounts is increased or decreased through bad debt expense. Accounts receivable are written-off when they are deemed to be uncollectible and we are no longer actively pursuing collection. At December 31, 2012 and 2011, our allowance for doubtful accounts was $15.9 million and $17.6 million, respectively. In some cases, primarily relating to straight-line rents, the collection of accounts receivable extends beyond one year. Our experience relative to unbilled straight-line rents is that a portion of the amounts otherwise recognizable as revenue is never billed to or collected from tenants due to early lease terminations, lease modifications, bankruptcies and other factors. Accordingly, the extended collection period for straight-line rents along with our evaluation of tenant credit risk may result in the nonrecognition of a portion of straight-line rental income until the collection of such income is reasonably assured. If our evaluation of tenant credit risk changes indicating more straight-line revenue is reasonably collectible than previously estimated and realized, the additional straight-line rental income is recognized as revenue. If our evaluation of tenant credit risk changes indicating a portion of realized straight-line rental income is no longer collectible, a reserve and bad debt expense is recorded. At December 31, 2012 and 2011, accounts receivable include approximately $56.1 million and $50.5 million, respectively, related to straight-line rents. Real Estate Land, buildings and improvements are recorded at cost. Depreciation is computed using the straight-line method. Estimated useful lives range generally from 35 years to a maximum of 50 years on buildings and major improvements. Minor improvements, furniture and equipment are capitalized and depreciated over useful lives ranging from 2 to 20 years. Maintenance and repairs that do not improve or extend the useful lives of the related assets are charged to operations as incurred. Tenant improvements are capitalized and depreciated over the life of the related lease or their estimated useful life, whichever is shorter. If a tenant vacates its space prior to contractual termination of its lease, the undepreciated balance of any tenant improvements are written off if they are replaced or have no future value. In 2012, 2011 and 2010, real estate depreciation expense was $128.7 million, $114.2 million and $108.3 million, respectively, including amounts from discontinued operations and assets under capital lease obligations. Sales of real estate are recognized only when sufficient down payments have been obtained, possession and other attributes of ownership have been transferred to the buyer and we have no significant continuing involvement. The application of this criteria can be complex and requires us to make assumptions. We believe this criteria was met for all real estate sold during the periods presented. Our methodology of allocating the cost of acquisitions to assets acquired and liabilities assumed is based on estimated fair values, replacement cost and/or appraised values. When we acquire operating real estate properties, the purchase price is allocated to land, building, improvements, leasing costs, intangibles such as in-place leases, and to current assets and liabilities acquired, if any. The value allocated to in-place leases is amortized over the related lease term and reflected as rental income in the statement of operations. We consider qualitative and quantitative factors in evaluating the likelihood of a tenant exercising a below market renewal option and include such renewal options in the calculation of in-place lease value when we consider these to be bargain renewal options. If the value of below market lease intangibles includes renewal option periods, we include such renewal periods in the amortization period utilized. If a tenant vacates its space prior to contractual termination of its lease, the unamortized balance of any in-place lease value is written off to rental income. Transaction costs related to the acquisition of a business, such as broker fees, transfer taxes, legal, accounting, valuation, and other professional and consulting fees, are expensed as incurred and included in “general and administrative expenses” in our consolidated statements of comprehensive income. The acquisition of an operating shopping center typically qualifies as a business. For asset acquisitions not meeting the definition of a business, transaction costs are capitalized as part of the acquisition cost. When applicable, as lessee, we classify our leases of land and building as operating or capital leases. We are required to use judgment and make estimates in determining the lease term, the estimated economic life of the property and the interest rate to be used in determining whether or not the lease meets the qualification of a capital lease and is recorded as an asset. We capitalize certain costs related to the development and redevelopment of real estate including pre-construction costs, real estate taxes, insurance, construction costs and salaries and related costs of personnel directly involved. Additionally, we capitalize interest costs related to development and redevelopment activities. Capitalization of these costs begin when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use at which time the project is placed in service and depreciation commences. Additionally, we make estimates as to the probability of certain development and redevelopment projects being completed. If we determine the development or redevelopment is no longer probable of completion, we expense all capitalized costs which are not recoverable. We review for impairment on a property by property basis. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. The sale or disposal of a “component of an entity” is treated as discontinued operations. The operating properties sold by us typically meet the definition of a component of an entity and as such the revenues and expenses associated with sold properties are reclassified to discontinued operations for all periods presented. Cash and Cash Equivalents We define cash and cash equivalents as cash on hand, demand deposits with financial institutions and short term liquid investments with an initial maturity, when purchased, under three months. Cash balances in individual banks may exceed the federally insured limit by the Federal Deposit Insurance Corporation (the “FDIC”). At December 31, 2012, we had $33.6 million in excess of the FDIC insured limit. Prepaid Expenses and Other Assets Prepaid expenses and other assets consist primarily of lease costs, prepaid property taxes and acquired above market leases. Capitalized lease costs are direct costs incurred which were essential to originate a lease and would not have been incurred had the leasing transaction not taken place and include third party commissions and salaries and related costs of personnel directly related to time spent obtaining a lease. Capitalized lease costs are amortized over the life of the related lease. If a tenant vacates its space prior to the contractual termination of its lease, the unamortized balance of any previously capitalized lease costs are written off. Other assets also include the premiums paid for split dollar life insurance for one current officer and several former officers which were approximately $4.6 million at December 31, 2012 and 2011. Debt Issuance Costs Costs related to the issuance of debt instruments are capitalized and are amortized as interest expense over the estimated life of the related issue using the straight-line method which approximates the effective interest method. If a debt instrument is paid off prior to its original maturity date, the unamortized balance of debt issuance costs are written off to interest expense or, if significant, included in “early extinguishment of debt.” Derivative Instruments At times, we may use derivative instruments to manage exposure to variable interest rate risk. We generally enter into interest rate swaps to manage our exposure to variable interest rate risk and treasury locks to manage the risk of interest rates rising prior to the issuance of debt. We enter into derivative instruments that qualify as cash flow hedges and do not enter into derivative instruments for speculative purposes. The interest rate swaps associated with our cash flow hedges are recorded at fair value on a recurring basis. We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis. The effective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into interest expense as interest is incurred on the related variable rate debt. Within the next 12 months, we expect to reclassify $4.2 million as an increase to interest expense. Our cash flow hedges become ineffective if critical terms of the hedging instrument and the debt instrument do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and LIBOR rate. In addition, we evaluate the default risk of the counterparty by monitoring the credit worthiness of the counterparty. When ineffectiveness exists, the ineffective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recognized in earnings in the period affected. Hedge ineffectiveness did not impact earnings in 2012 and 2011, and we do not anticipate it will have a significant effect in the future. We had no hedging instruments outstanding during 2010. Mortgage Notes Receivable We have made certain mortgage loans that, because of their nature, qualify as loan receivables. At the time the loans were made, we did not intend for the arrangement to be anything other than a financing and did not contemplate a real estate investment. We evaluate each investment to determine whether the loan arrangement qualifies as a loan, joint venture or real estate investment and the appropriate accounting thereon. Such determination affects our balance sheet classification of these investments and the recognition of interest income derived therefrom. On some of the loans we receive additional interest, however, we never receive in excess of 50% of the residual profit in the project, and because the borrower has either a substantial investment in the project or has guaranteed all or a portion of our loan (or a combination thereof), the loans qualify for loan accounting. The amounts under these arrangements are presented as mortgage notes receivable at December 31, 2012 and 2011. Mortgage notes receivable are recorded at cost, net of any valuation adjustments. Interest income is accrued as earned. Mortgage notes receivable are considered past due based on the contractual terms of the note agreement. On a quarterly basis, we evaluate the collectability of each mortgage note receivable based on various factors which may include payment history, expected fair value of the collateral securing the loan, internal and external credit information and/or economic trends. A loan is considered impaired when, based upon current information and events, it is probable that we will be unable to collect all amounts due under the existing contractual terms. When a loan is considered impaired, the amount of the loss accrual is calculated by comparing the carrying amount of the mortgage note receivable to the present value of expected future cash flows. Since all of our loans are collateralized by either a first or second mortgage, the loans have risk characteristics similar to the risks in owning commercial real estate. Share Based Compensation We grant share based compensation awards to employees and trustees typically in the form of options, commons shares, and restricted common shares. We measure stock based compensation expense based on the grant date fair value of the award and recognize the expense ratably over the requisite service period, which is typically the vesting period. See Note 15 for further discussion regarding our share based compensation plans and policies. Variable Interest Entities Certain entities that do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or in which equity investors do not have the characteristics of a controlling financial interest qualify as VIEs. VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE has both the power to direct the activities that most significantly impact economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We have evaluated our investments in certain joint ventures including our real estate partnership with affiliates of a discretionary fund created and advised by ING Clarion Partners and our Taurus Newbury Street JV II Limited Partnership and determined that these joint ventures do not meet the requirements of a variable interest entity and, therefore, consolidation of these ventures is not required. These investments are accounted for using the equity method. We have also evaluated our mortgage loans receivable and determined that entities obligated under the mortgage loans are not VIEs except from March 30, 2010 to June 29, 2011 with respect to our mortgage loans on a shopping center and adjacent building located in Norwalk, Connecticut as further discussed in Note 4. Our investment balances from our real estate partnerships and mortgage notes receivable are presented separately in our consolidated balance sheets. On October 16, 2006, we acquired the leasehold interest in Melville Mall under a 20 year master lease. Additionally, we loaned the owner of Melville Mall $34.2 million secured by a second mortgage on the property. We have an option to purchase the shopping center on or after October 16, 2021 for a price of $5.0 million plus the assumption of the first mortgage and repayment of the second mortgage. If we fail to exercise our purchase option, the owner of Melville Mall has a put option which would require us to purchase Melville Mall in 2023 for $5.0 million and the assumption of the owner’s mortgage debt. We have determined that this property is held in a variable interest entity for which we are the primary beneficiary. Accordingly, beginning October 16, 2006, we consolidated this property and its operations. As of December 31, 2012 and 2011, $21.4 million and $22.1 million, respectively, are included in mortgages payable (net of unamortized discounts) for the mortgage loan secured by Melville Mall, however, the loan is not our legal obligation. At December 31, 2012 and 2011, net real estate assets related to Melville Mall included in our consolidated balance sheet are approximately $63.1 million and $64.0 million, respectively. In conjunction with the acquisitions of several of our properties, we entered into Reverse Section 1031 like-kind exchange agreements with a third party intermediary. The exchange agreements are for a maximum of 180 days and allow us, for tax purposes, to defer gains on sale of other properties sold within this period. Until the earlier of termination of the exchange agreements or 180 days after the respective acquisition dates, the third party intermediary is the legal owner of each property, although we control the activities that most significantly impact each property and retain all of the economic benefits and risks associated with each property. Each property is held by a third party intermediary in a variable interest entity for which we are the primary beneficiary. Accordingly, we consolidate these properties and their operations even during the period they are held by a third party intermediary. A summary of the significant properties is as follows:
We determined the joint venture that owns Plaza El Segundo is a variable interest entity for which we are the primary beneficiary. We are the managing member and own 48.2% of the entity. We control the significant operating decisions, consequently having the power to direct the activities that most significantly impact economic performance of the VIE, and have the obligation to absorb the majority of the losses and receive the majority of the benefits. Therefore, the entity is consolidated in our financial statements as of December 30, 2011. As of December 31, 2012 and 2011, net real estate assets related to Plaza El Segundo included in our consolidated balance sheet are approximately $189.4 million and $194.6 million, respectively, and mortgages payable (net of unamortized premium) of $183.9 million and $185.6 million, respectively. Plaza El Segundo's creditors do not have recourse to our general credit. Our maximum exposure to loss is approximately $17.5 million. Redeemable Noncontrolling Interests We have certain noncontrolling interests that are redeemable for cash upon the occurrence of an event that is not solely in our control and therefore are classified outside of permanent equity. We adjust the carrying amounts of these noncontrolling interests that are currently redeemable to redemption value at the balance sheet date. Adjustments to the carrying amount to reflect changes in redemption value are recorded as adjustments to additional paid-in capital in shareholders' equity. These amounts are classified within the mezzanine section of the consolidated balance sheets. The following table provides a rollforward of the redeemable noncontrolling interests:
Income Taxes We operate in a manner intended to enable us to qualify as a REIT for federal income tax purposes. A REIT that distributes at least 90% of its taxable income to its shareholders each year and meets certain other conditions is not taxed on that portion of its taxable income which is distributed to its shareholders. Therefore, federal income taxes on our taxable income have been and are generally expected to be immaterial. We are obligated to pay state taxes, generally consisting of franchise or gross receipts taxes in certain states. Such state taxes also have not been material. We have elected to treat certain of our subsidiaries as taxable REIT subsidiaries, which we refer to as a TRS. In general, a TRS may engage in any real estate business and certain non-real estate businesses, subject to certain limitations under the Internal Revenue Code of 1986, as amended (the “Code”). A TRS is subject to federal and state income taxes. Our TRS activities have not been material. With few exceptions, we are no longer subject to U.S. federal, state, and local tax examinations by tax authorities for years before 2008. As of December 31, 2012 and 2011, we had no material unrecognized tax benefits. While we currently have no material unrecognized tax benefits, as a policy, we recognize penalties and interest accrued related to unrecognized tax benefits as income tax expense. Segment Information Our primary business is the ownership, management, and redevelopment of retail and mixed-use properties. We review operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. We evaluate financial performance using property operating income, which consists of rental income, other property income and mortgage interest income, less rental expenses and real estate taxes. No individual property constitutes more than 10% of our revenues or property operating income and we have no operations outside of the United States of America. Therefore, we have aggregated our properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies, are typically located in major metropolitan areas, and have similar tenant mixes. Recently Adopted Accounting Pronouncements In May 2011, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” The pronouncement was issued to provide a uniform framework for fair value measurements and related disclosures between U.S. GAAP and International Financial Reporting Standards (“IFRS”). ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly for level 3 fair value measurements. We adopted the standard effective January 1, 2012 and it did not have a significant impact to our consolidated financial statements. In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income.” ASU 2011-05 eliminates the option to present components of other comprehensive income solely as part of the statement of shareholders’ equity and requires the presentation of components of net income and components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB deferred the requirement to present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income on the face of the financial statements. We adopted the standards effective January 1, 2012 and modified the presentation in our consolidated financial statements accordingly. Other comprehensive loss in our financial statements relates to the change in valuation on our interest rate swap agreements as further discussed in Note 8. Recently Issued Accounting Pronouncement In February 2013, the FASB issued ASU 2013-2, “Comprehensive Income (Topic 220): Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-2 requires entities to disclose certain information relating to amounts reclassified out of accumulated other comprehensive income. This pronouncement is effective for us in the first quarter of 2013 and is not expected to have a significant impact to our consolidated financial statements. Consolidated Statements of Cash Flows—Supplemental Disclosures The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows:
Capitalized lease costs are direct costs incurred which were essential to originate a lease and would not have been incurred had the leasing transaction not taken place. These costs include third party commissions and salaries and personnel costs related to obtaining a lease. Capitalized lease costs are amortized over the initial term of the related lease which generally ranges from three to ten years. We view these lease costs as part of the up-front initial investment we made in order to generate a long-term cash inflow and therefore, we classify cash outflows related to leasing costs as an investing activity in our consolidated statements of cash flows. |
Operating Leases (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Property Subject to or Available for Operating Lease [Line Items] | |
Number of Real Estate Properties | 88 |
Number of States in which Entity Has Properties | 13 |
Number Of Leases | 2,500 |
Percent of Annualized Base Rent | 3.20% |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2013 | 434,042 |
2014 | 399,040 |
2015 | 355,013 |
2016 | 311,820 |
2017 | 254,413 |
Thereafter | 1,384,196 |
Total | 3,138,524 |
Residential Real Estate [Member] | Maximum [Member]
|
|
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Lease, Term | 1 year |
Commercial Real Estate [Member] | Maximum [Member]
|
|
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Lease, Term | 10 years |
Commercial Real Estate [Member] | Minimum [Member]
|
|
Property Subject to or Available for Operating Lease [Line Items] | |
Operating Lease, Term | 3 years |