Pennsylvania | 1-6300 | 23-6216339 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (IRS Employer Identification No.) |
The Bellevue, 200 S. Broad Street, Philadelphia, Pennsylvania | 19102 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST | ||||
Date: February 24, 2016 | By: | /s/ Bruce Goldman | ||
Bruce Goldman | ||||
Executive Vice President and General Counsel |
• | Same Store NOI excluding lease terminations improved by 2.6% for the year ended December 31, 2015 as compared to the prior year; Same Store NOI also improved by 2.6% over the same periods. |
• | FFO as adjusted per share was $1.89 and FFO per share was $1.79 for the year ended December 31, 2015. |
• | Comparable store sales across the portfolio continued to climb to $435 per square foot with all properties reporting increases. |
• | Same Store NOI excluding lease terminations improved by 3.2% for the quarter ended December 31, 2015 as compared to the prior year period; Same Store NOI improved by 1.5% over the same periods. |
• | Non-anchor cash renewals spreads were 7.9% for the quarter and ended the year at 6.0%. |
• | Key anchor leases executed for Legoland Discovery Center at Plymouth Meeting Mall, Dick’s Sporting Goods at Cumberland Mall, Round 1 at Exton Square and a new Dick’s Sporting Goods and Field & Stream side-by-side store at one of the Company’s key Core Growth properties. |
• | Leverage ratio under our 2013 Revolving Facility (Total Liabilities to Gross Asset Value) decreased to 49.3%. |
• | In addition to the three assets sold in 2015, subsequent to the end of the quarter, the Company sold Palmer Park Mall for $18.0 million marking the 9th mall sold as part of PREIT’s overall portfolio improvement strategy. Agreements of sale have been executed with accompanying non-refundable deposits for the sale of Lycoming Mall, two street retail properties located in downtown Philadelphia and undeveloped land in Gainesville, FL. |
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||
FFO | $ | 44.9 | $ | 42.0 | $ | 136.2 | $ | 129.4 | ||||||
Mortgage prepayment penalty and accelerated amortization of deferred financing costs | — | — | 1.1 | — | ||||||||||
Acquisition costs | — | 0.9 | 4 | 3.5 | 3.4 | |||||||||
Provision for employee separation expense | 2.0 | — | 2.1 | 5.0 | ||||||||||
Loss on hedge ineffectiveness | — | 0.4 | 0.5 | 1.8 | ||||||||||
FFO, as adjusted | $ | 46.8 | $ | 43.3 | $ | 143.4 | $ | 139.6 | ||||||
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||
Per Diluted Share and OP Unit | 2015 | 2014 | 2015 | 2014 | ||||||||||
FFO attributable to common shareholders and OP unit holders | $ | 0.58 | $ | 0.59 | $ | 1.79 | $ | 1.82 | ||||||
FFO attributable to common shareholders and OP unit holders, as adjusted | $ | 0.60 | $ | 0.61 | $ | 1.89 | $ | 1.96 |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||
(In millions, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||
Net (loss) income attributable to PREIT common shareholders | $ | (43.9 | ) | $ | 14.5 | $ | (132.5 | ) | $ | (29.7 | ) | ||
Net (loss) income per diluted share | $ | (0.64 | ) | $ | 0.21 | $ | (1.93 | ) | $ | (0.44 | ) |
• | Same store NOI increased by $1.1 million to $74.8 million. Non Same Store NOI increased $3.6 million. |
• | FFO, as adjusted, for the quarter was $0.58 per share. Dilution from assets sold in 2014 and 2015 (excluding The Gallery) was approximately $0.02 per share. |
• | Impairment of assets of $54.0 million was recognized in the quarter ended December 31, 2015 related to assets sold or under contract. |
• | Gain on sales of interests in real estate was $0.2 million, compared to a gain of $14.9 million on sales in the quarter ended December 31, 2014. |
• | Net loss attributable to PREIT common shareholders was $43.9 million, or $0.64 per share compared to net income of $14.5 million, or $0.21 per share for the quarter ended December 31, 2014. |
• | Same Store NOI increased $6.6 million or 2.6% (Same Store NOI excluding lease terminations increased $6.5 million or 2.6%). Operating results for the year ended December 31, 2015 were driven by increases in rent and improvements in CAM and utility margins partially offset by tenant bankruptcies. |
• | Non Same Store NOI decreased $1.7 million primarily due to properties sold in 2014 and 2015, and the July 2014 sale of a 50% partnership interest in The Gallery. Non Same Store NOI was further impacted by de-tenanting of The Gallery in advance of the pending redevelopment of the property, and losses incurred from bankrupt tenants, partially offset by the inclusion of results from Springfield Town Center, effective March 31, 2015. |
• | Activist shareholder defense costs were $2.0 million for the year ended December 31, 2015. |
• | FFO, as adjusted, for the year ended December 31, 2015 was $1.89 per share, compared to $1.96 in the prior year. Dilution from assets sold in 2015 and 2014 (excluding The Gallery) was approximately $0.09 per share. |
• | Impairment of assets of $140.3 million was recognized for the year ended December 31, 2015 related to assets sold or under contract as compared to $19.7 million recognized in the year ended December 31, 2014. |
• | Net loss attributable to PREIT common shareholders was $132.5 million, or $1.93 per share, compared to $29.7 million, or $0.44 per share, for the year ended December 31, 2014. |
• | Sold Palmer Park Mall on February 23, 2016 for $18.0 million; |
• | Entered into agreement to sell two street retail properties in Philadelphia, PA, for which it has secured a non-refundable deposit. This transaction is expected to close in the first half of 2016; and |
• | Entered into an Agreement to sell Lycoming Mall in Pennsdale, PA, for which it has secured a non-refundable deposit. This transaction is also expected to close in the first half of 2016. |
Rolling Year Ended: | ||
December 31, 2015 | December 31, 2014 | |
Portfolio Sales per square foot (1) | $435 | $393 |
(1) Based on sales reported by tenants leasing 10,000 square feet or less of non-anchor space for at least 24 months. December 31, 2015 sales exclude Palmer Park Mall | ||
Occupancy as of: | ||
December 31, 2015 | December 31, 2014 | |
Same Store Malls: | ||
Total including anchors | 95.4% | 97.2% |
Total excluding anchors | 93.7% | 95.3% |
Portfolio Total Occupancy: | ||
Total including anchors | 95.0% | 96.9% |
Total excluding anchors | 93.3% | 95.0% |
December 31, 2014 | $393 |
Organic sales growth | 18 |
Bankrupt tenant closings | 12 |
Asset sales | 9 |
Springfield Town Center | 3 |
December 31, 2015 Sales (excluding Palmer Park Mall) | $435 |
• | 2016 Same Store NOI growth in the range of 2.8% to 3.2%; |
• | Increase of 80-100 bps in non-anchor occupancy at our Same Store malls; |
• | NOI contribution of approximately $20-$21 million from (a) the five malls currently being marketed for sale, (b) the two street properties and (c) three power centers, assuming a mid-year closing on the malls and street retail properties; |
• | NOI contribution of approximately $20-$22 million from properties new to the portfolio in 2015, including Springfield Town Center and our 25% interest in Gloucester Premium Outlets; |
• | NOI contribution of approximately $4 million from our share of Fashion Outlets of Philadelphia |
• | Full year impact of the increase in the weighted average share count to give effect to the issuance of 6,250,000 OP units in connection with the acquisition of Springfield Town Center in March 2015; |
• | Capital expenditures in the range of $165 to $185 million, including recurring capital expenditures and normal tenant allowances; and |
• | Our guidance does not assume any capital market transactions, other than mortgage loan refinancings in the ordinary course of business. |
Estimates Per Diluted Share | Lower End | Upper End |
FFO | $1.83 | $1.91 |
Depreciation and amortization (includes the Company’s proportionate share of unconsolidated properties), net of other adjustments | (1.80) | (1.85) |
Net income attributable to PREIT common shareholders | $ 0.03 | $ 0.06 |
STATEMENTS OF OPERATIONS | Quarter Ended | Twelve Months Ended | ||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
REVENUE: | ||||||||||||||||
Real estate revenue: | ||||||||||||||||
Base rent | $ | 71,888 | $ | 69,000 | $ | 271,957 | $ | 278,896 | ||||||||
Expense reimbursements | 31,665 | 30,638 | 125,505 | 126,925 | ||||||||||||
Percentage rent | 4,012 | 3,669 | 5,724 | 5,124 | ||||||||||||
Lease termination revenue | 116 | 1,352 | 2,014 | 2,250 | ||||||||||||
Other real estate revenue | 8,030 | 5,395 | 14,997 | 13,401 | ||||||||||||
Real estate revenue | 115,711 | 110,054 | 420,197 | 426,596 | ||||||||||||
Other income | 913 | 1,301 | 5,214 | 6,107 | ||||||||||||
Total revenue | 116,624 | 111,355 | 425,411 | 432,703 | ||||||||||||
EXPENSES: | ||||||||||||||||
Operating expenses: | ||||||||||||||||
Property operating expenses: | ||||||||||||||||
CAM and real estate tax | (33,840 | ) | (32,939 | ) | (133,912 | ) | (140,662 | ) | ||||||||
Utilities | (4,255 | ) | (4,422 | ) | (19,674 | ) | (23,993 | ) | ||||||||
Other | (4,043 | ) | (4,059 | ) | (16,461 | ) | (15,772 | ) | ||||||||
Total property operating expenses | (42,138 | ) | (41,420 | ) | (170,047 | ) | (180,427 | ) | ||||||||
Depreciation and amortization | (36,709 | ) | (36,694 | ) | (142,647 | ) | (144,304 | ) | ||||||||
General and administrative expenses | (9,212 | ) | (9,294 | ) | (34,836 | ) | (35,518 | ) | ||||||||
Provision for employee separation expenses | (1,951 | ) | — | (2,087 | ) | (4,961 | ) | |||||||||
Acquisition costs and other expenses | (413 | ) | (1,607 | ) | (6,108 | ) | (4,937 | ) | ||||||||
Total operating expenses | (90,423 | ) | (89,015 | ) | (355,725 | ) | (370,147 | ) | ||||||||
Interest expense, net | (20,157 | ) | (20,373 | ) | (81,096 | ) | (82,165 | ) | ||||||||
Impairment of assets | (53,998 | ) | — | (140,318 | ) | (19,695 | ) | |||||||||
Total expenses | (164,578 | ) | (109,388 | ) | (577,139 | ) | (472,007 | ) | ||||||||
(Loss) income before equity in income of partnerships, gains on sales of interests in real estate and non-operating real estate | (47,954 | ) | 1,967 | (151,728 | ) | (39,304 | ) | |||||||||
Equity in income of partnerships | 3,041 | 2,176 | 9,540 | 10,569 | ||||||||||||
Gains (adjustment to gains) on sales of interests in real estate, net | (24 | ) | 13,113 | 12,362 | 12,699 | |||||||||||
Gains on sales of non-operating real estate | 216 | 1,774 | 259 | 1,774 | ||||||||||||
Net (loss) income | (44,721 | ) | 19,030 | (129,567 | ) | (14,262 | ) | |||||||||
Less: net (loss) income attributed to noncontrolling interest | 4,811 | (572 | ) | 12,884 | 432 | |||||||||||
Net (loss) income attributable to PREIT | (39,910 | ) | 18,458 | (116,683 | ) | (13,830 | ) | |||||||||
Less: dividends on preferred shares | (3,962 | ) | (3,962 | ) | (15,848 | ) | (15,848 | ) | ||||||||
Net (loss) income attributable to PREIT common shareholders | $ | (43,872 | ) | $ | 14,496 | $ | (132,531 | ) | $ | (29,678 | ) |
STATEMENTS OF OPERATIONS - EARNINGS PER SHARE | Quarter Ended | Twelve Months Ended | ||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net (loss) income per share - PREIT - basic | $ | (0.64 | ) | $ | 0.21 | $ | (1.93 | ) | $ | (0.44 | ) | |||||
Net (loss) income per share - PREIT - diluted (1) | $ | (0.64 | ) | $ | 0.21 | $ | (1.93 | ) | $ | (0.44 | ) | |||||
Weighted average number of shares outstanding for diluted EPS | 68,831 | 69,151 | 68,740 | 68,217 |
OTHER COMPREHENSIVE INCOME (LOSS) | Quarter Ended | Twelve Months Ended | ||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Net (loss) income | $ | (44,721 | ) | $ | 19,030 | $ | (129,567 | ) | $ | (14,262 | ) | |||||
Unrealized gain (loss) on derivatives | 4,353 | (1,295 | ) | 690 | (2,270 | ) | ||||||||||
Amortization of losses of settled swaps, net | 125 | 704 | 1,337 | 2,924 | ||||||||||||
Total comprehensive (loss) income | (40,243 | ) | 18,439 | (127,540 | ) | (13,608 | ) | |||||||||
Less: Comprehensive loss (income) attributable to noncontrolling interest | 4,329 | (554 | ) | 12,666 | 413 | |||||||||||
Comprehensive (loss) income attributable to PREIT | $ | (35,914 | ) | $ | 17,885 | $ | (114,874 | ) | $ | (13,195 | ) |
Quarter Ended December 31, 2015 | Quarter Ended December 31, 2014 | ||||||||||||||||||||||||
RECONCILIATION OF NOI AND FFO TO NET LOSS | Consolidated | PREIT's Share unconsolidated partnerships | Total (non GAAP Measure) | Consolidated | PREIT's Share unconsolidated partnerships | Total (non GAAP Measure) | |||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||
Real estate revenue(1) | $ | 115,711 | $ | 13,718 | $ | 129,429 | $ | 110,054 | $ | 14,145 | $ | 124,199 | |||||||||||||
Property operating expenses | (42,138 | ) | (4,890 | ) | (47,028 | ) | (41,420 | ) | (5,119 | ) | (46,539 | ) | |||||||||||||
NET OPERATING INCOME | 73,573 | 8,828 | 82,401 | 68,634 | 9,026 | 77,660 | |||||||||||||||||||
General and administrative expenses | (9,212 | ) | — | (9,212 | ) | (9,294 | ) | — | (9,294 | ) | |||||||||||||||
Provision for employee separation expense | (1,951 | ) | — | (1,951 | ) | — | — | — | |||||||||||||||||
Other income | 913 | — | 913 | 1,301 | — | 1,301 | |||||||||||||||||||
Acquisition costs and other expenses | (413 | ) | — | (413 | ) | (1,607 | ) | (377 | ) | (1,984 | ) | ||||||||||||||
Interest expense, net | (20,157 | ) | (2,588 | ) | (22,745 | ) | (20,373 | ) | (2,691 | ) | (23,064 | ) | |||||||||||||
Depreciation on non real estate assets | (368 | ) | — | (368 | ) | (447 | ) | — | (447 | ) | |||||||||||||||
Gain on sales of non-operating real estate | 216 | — | 216 | 1,774 | — | 1,774 | |||||||||||||||||||
Preferred share dividends | (3,962 | ) | — | (3,962 | ) | (3,962 | ) | — | (3,962 | ) | |||||||||||||||
FUNDS FROM OPERATIONS | 38,639 | 6,240 | 44,879 | 36,026 | 5,958 | 41,984 | |||||||||||||||||||
Depreciation on real estate assets | (36,341 | ) | (3,199 | ) | (39,540 | ) | (36,247 | ) | (3,782 | ) | (40,029 | ) | |||||||||||||
Equity in income of partnerships | 3,041 | (3,041 | ) | — | 2,176 | (2,176 | ) | — | |||||||||||||||||
Impairment of assets | (53,998 | ) | — | (53,998 | ) | — | — | — | |||||||||||||||||
(Adjustment to gains), gains on sales of interests in real estate | (24 | ) | — | (24 | ) | 13,113 | — | 13,113 | |||||||||||||||||
Preferred share dividends | 3,962 | — | 3,962 | 3,962 | — | 3,962 | |||||||||||||||||||
Net (loss) income | $ | (44,721 | ) | $ | — | $ | (44,721 | ) | $ | 19,030 | $ | — | $ | 19,030 | |||||||||||
(1)Total includes the non-cash effect of straight-line rent of $727 and $375 for the quarters ended December 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||
Weighted average number of shares outstanding | 68,831 | 68,353 | |||||||||||||||||||||||
Weighted average effect of full conversion of OP Units | 8,341 | 2,124 | |||||||||||||||||||||||
Effect of common share equivalents | 449 | 798 | |||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units | 77,621 | 71,275 | |||||||||||||||||||||||
FUNDS FROM OPERATIONS | $ | 44,879 | $ | 41,984 | |||||||||||||||||||||
Acquisition Costs | — | 926 | |||||||||||||||||||||||
Provision for employee separation expenses | 1,951 | — | |||||||||||||||||||||||
Accelerated amortization of deferred financing costs | — | — | |||||||||||||||||||||||
Loss on hedge ineffectiveness | — | 406 | |||||||||||||||||||||||
FUNDS FROM OPERATIONS AS ADJUSTED | $ | 46,830 | $ | 43,316 | |||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT | $ | 0.58 | $ | 0.59 | |||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT AS ADJUSTED | $ | 0.60 | $ | 0.61 |
SAME STORE RECONCILIATION | Quarter Ended December 31, | |||||||||||||||||||||||
Same Store | Non-Same Store | Total | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Real estate revenue | $ | 115,311 | $ | 114,901 | $ | 14,118 | $ | 9,298 | $ | 129,429 | $ | 124,199 | ||||||||||||
Property operating expenses | (40,551 | ) | (41,259 | ) | (6,477 | ) | (5,280 | ) | (47,028 | ) | (46,539 | ) | ||||||||||||
NET OPERATING INCOME (NOI) | $ | 74,760 | $ | 73,642 | $ | 7,641 | $ | 4,018 | $ | 82,401 | $ | 77,660 | ||||||||||||
Less: Lease termination revenue | 124 | 1,346 | 3 | 31 | 127 | 1,377 | ||||||||||||||||||
NOI - EXCLUDING LEASE TERMINATION REVENUE | $ | 74,636 | $ | 72,296 | $ | 7,638 | $ | 3,987 | $ | 82,274 | $ | 76,283 |
Twelve Months Ended December 31, 2015 | Twelve Months Ended December 31, 2014 | |||||||||||||||||||||||
RECONCILIATION OF NOI AND FFO TO NET INCOME (LOSS) | Consolidated | PREIT's Share unconsolidated partnerships | Total (non GAAP Measure) | Consolidated | PREIT's Share unconsolidated partnerships | Total (non GAAP Measure) | ||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
Real estate revenue(1) | $ | 420,197 | $ | 51,011 | $ | 471,208 | $ | 426,596 | $ | 47,504 | $ | 474,100 | ||||||||||||
Property operating expenses | (170,047 | ) | (18,493 | ) | (188,540 | ) | (180,427 | ) | (15,815 | ) | (196,242 | ) | ||||||||||||
NET OPERATING INCOME | 250,150 | 32,518 | 282,668 | 246,169 | 31,689 | 277,858 | ||||||||||||||||||
General and administrative expenses | (34,836 | ) | — | (34,836 | ) | (35,518 | ) | — | (35,518 | ) | ||||||||||||||
Provision for employee separation expenses | (2,087 | ) | — | (2,087 | ) | (4,961 | ) | — | (4,961 | ) | ||||||||||||||
Other income | 5,214 | — | 5,214 | 6,107 | — | 6,107 | ||||||||||||||||||
Acquisition costs and other expenses | (6,108 | ) | (62 | ) | (6,170 | ) | (4,937 | ) | (397 | ) | (5,334 | ) | ||||||||||||
Interest expense, net | (81,096 | ) | (10,353 | ) | (91,449 | ) | (82,165 | ) | (10,873 | ) | (93,038 | ) | ||||||||||||
Depreciation on non real estate assets | (1,505 | ) | — | (1,505 | ) | (1,621 | ) | — | (1,621 | ) | ||||||||||||||
Gain on sales of non-operating real estate | 259 | — | 259 | 1,774 | — | 1,774 | ||||||||||||||||||
Preferred share dividends | (15,848 | ) | — | (15,848 | ) | (15,848 | ) | — | (15,848 | ) | ||||||||||||||
FUNDS FROM OPERATIONS | 114,143 | 22,103 | 136,246 | 109,000 | 20,419 | 129,419 | ||||||||||||||||||
Depreciation on real estate assets | (141,142 | ) | (12,563 | ) | (153,705 | ) | (142,683 | ) | (9,850 | ) | (152,533 | ) | ||||||||||||
Impairment of assets | (140,318 | ) | — | (140,318 | ) | (19,695 | ) | — | (19,695 | ) | ||||||||||||||
Equity in income of partnerships | 9,540 | (9,540 | ) | — | 10,569 | (10,569 | ) | — | ||||||||||||||||
Net gains on sales of interests in real estate | 12,362 | — | 12,362 | 12,699 | — | 12,699 | ||||||||||||||||||
Preferred share dividends | 15,848 | — | 15,848 | 15,848 | — | 15,848 | ||||||||||||||||||
Net (loss) income | $ | (129,567 | ) | $ | — | $ | (129,567 | ) | $ | (14,262 | ) | $ | — | $ | (14,262 | ) | ||||||||
(1) Total includes the non-cash effect of straight-line rent of $2,491 and $1,582 for the twelve months ended December 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||
Weighted average number of shares outstanding | 68,740 | 68,217 | ||||||||||||||||||||||
Weighted average effect of full conversion of OP Units | 6,830 | 2,128 | ||||||||||||||||||||||
Effect of common share equivalents | 485 | 696 | ||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units | 76,055 | 71,041 | ||||||||||||||||||||||
FUNDS FROM OPERATIONS | $ | 136,246 | $ | 129,419 | ||||||||||||||||||||
Acquisition costs | 3,470 | 3,441 | ||||||||||||||||||||||
Provision for employee separation expenses | 2,087 | 4,961 | ||||||||||||||||||||||
Accelerated amortization of deferred financing costs | 1,071 | — | ||||||||||||||||||||||
Loss on hedge ineffectiveness | 512 | 1,761 | ||||||||||||||||||||||
FUNDS FROM OPERATIONS AS ADJUSTED | $ | 143,386 | $ | 139,582 | ||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT | $ | 1.79 | $ | 1.82 | ||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT AS ADJUSTED | $ | 1.89 | $ | 1.96 |
SAME STORE RECONCILIATION | Twelve Months Ended December 31, | |||||||||||||||||||||||
Same Store | Non-Same Store | Total | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Real estate revenue | $ | 422,190 | $ | 417,282 | $ | 49,018 | $ | 56,818 | $ | 471,208 | $ | 474,100 | ||||||||||||
Property operating expenses | (162,380 | ) | (164,030 | ) | (26,160 | ) | (32,212 | ) | (188,540 | ) | (196,242 | ) | ||||||||||||
NET OPERATING INCOME (NOI) | $ | 259,810 | $ | 253,252 | $ | 22,858 | $ | 24,606 | $ | 282,668 | $ | 277,858 | ||||||||||||
Less: Lease termination revenue | 1,929 | 1,863 | 158 | 424 | 2,087 | 2,287 | ||||||||||||||||||
NOI - EXCLUDING LEASE TERMINATION REVENUE | $ | 257,881 | $ | 251,389 | $ | 22,700 | $ | 24,182 | $ | 280,581 | $ | 275,571 |
CONSOLIDATED BALANCE SHEETS | December 31, 2015 | December 31, 2014 | ||||||
(In thousands) | ||||||||
ASSETS: | ||||||||
INVESTMENTS IN REAL ESTATE, at cost: | ||||||||
Operating properties | $ | 3,297,520 | $ | 3,216,231 | ||||
Construction in progress | 64,019 | 60,452 | ||||||
Land held for development | 6,350 | 8,721 | ||||||
Total investments in real estate | 3,367,889 | 3,285,404 | ||||||
Accumulated depreciation | (1,015,647 | ) | (1,061,051 | ) | ||||
Net investments in real estate | 2,352,242 | 2,224,353 | ||||||
INVESTMENTS IN PARTNERSHIPS, at equity: | 161,029 | 140,882 | ||||||
OTHER ASSETS: | ||||||||
Cash and cash equivalents | 22,855 | 40,433 | ||||||
Tenant and other receivables (net of allowance for doubtful accounts of $6,417 and $11,929 at December 31, 2015 and December 31, 2014, respectively) | 40,324 | 40,566 | ||||||
Intangible assets (net of accumulated amortization of $13,441 and $11,873 at December 31, 2015 and December 31, 2014, respectively) | 22,248 | 6,452 | ||||||
Deferred costs and other assets, net | 81,574 | 87,017 | ||||||
Assets held for sale | 126,244 | — | ||||||
Total assets | 2,806,516 | 2,539,703 | ||||||
LIABILITIES: | ||||||||
Mortgage loans | $ | 1,325,495 | $ | 1,407,947 | ||||
Term loans | 400,000 | 130,000 | ||||||
Revolving facility | 65,000 | — | ||||||
Tenants' deposits and deferred rent | 14,631 | 15,541 | ||||||
Distributions in excess of partnership investments | 65,547 | 65,956 | ||||||
Fair value of derivative instruments | 2,756 | 2,490 | ||||||
Liabilities on assets held for sale | 69,918 | — | ||||||
Accrued expenses and other liabilities | 78,539 | 73,032 | ||||||
Total liabilities | 2,021,886 | 1,694,966 | ||||||
EQUITY: | 784,630 | 844,737 | ||||||
Total liabilities and equity | $ | 2,806,516 | $ | 2,539,703 |
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