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: July 27, 2016 | By: | /s/ Bruce Goldman | ||
Bruce Goldman | ||||
Executive Vice President and General Counsel |
• | FFO, as adjusted per share increased by 10.3% for the quarter to $0.43 and 7.6% to $0.85 for the six month period ended June 30, 2016 compared to the prior year period. |
• | Net income available to PREIT common shareholders was $4.2 million for the quarter and $2.0 million for the six month period ended June 30, 2016 compared to losses attributable to PREIT common shareholders of $34.9 million and $52.4 million for the respective prior periods. |
◦ | Earnings per share was $0.06 for the quarter and $0.03 for the six month period ended June 30, 2016 compared to losses per share of $0.51 and $0.76 for the respective prior periods. |
• | Same Store NOI excluding lease terminations improved by 4.0% for the quarter and by an average of 4.0% for the first two quarters ended June 30, 2016 as compared to the prior year period. |
◦ | Same Store NOI improved by 3.9% for the quarter and by an average of 3.9% for the first two quarters ended June 30, 2016 as compared to the prior year period. |
◦ | Average gross rent per square foot at Premier and Core Growth Malls grew by 3.9% |
• | Agreements of sale executed with non-refundable deposits for Washington Crown Center an office building in Voorhees, NJ. |
• | Sale of downtown Philadelphia street retail properties completed during the quarter for a gain of $20.3 million. |
• | Non-anchor leased space for malls excluding those held for sale was 94.3%, a 300 basis point improvement over current occupancy. |
• | Comparable store sales across the portfolio were $458 compared to $418 in the prior period with sales growth most pronounced in the Company’s Core Growth malls, where most of its recent remerchandising initiatives have been focused. |
• | Balance Sheet flexibility improved with amended Term Loan reducing rates and expanding borrowing capacity by $150.0 million. |
• | Renewal spreads for tenants under 10,000 square feet were 13.4% for the quarter and 17.0% for the six month period ended June 30, 2016. |
◦ | Renewal spreads for all non-anchor tenants, on a cash basis, were 8.6% for the quarter and 9.1% for the six month period ended June 30, 2016. |
• | Primark opened its second Philadelphia-area store at Willow Grove Park. |
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions, except per share amounts) | 2016 | 2015 | 2015 | 2014 | |||||||||
Net income (loss) | $ | 9.2 | $ | (34.7 | ) | $ | 11.1 | $ | (48.6 | ) | |||
Net income available (loss attributable) to PREIT common shareholders | $ | 4.2 | $ | (34.9 | ) | $ | 2.0 | $ | (52.4 | ) | |||
Net earnings (loss) per share - basic and diluted | $ | (0.06 | ) | $ | (0.51 | ) | $ | 0.03 | $ | (0.76 | ) |
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2016 | 2015 | 2015 | 2014 | |||||||||
FFO | $ | 32.3 | $ | 29.3 | $ | 64.7 | $ | 53.7 | |||||
Mortgage prepayment penalty and accelerated amortization of deferred financing costs | — | 1.0 | — | 1.0 | |||||||||
Acquisition costs | — | 0.1 | — | 3.5 | |||||||||
Provision for employee separation expense | 0.1 | — | 1.2 | — | |||||||||
Loss on hedge ineffectiveness | — | — | 0.1 | 0.5 | |||||||||
FFO, as adjusted | $ | 33.0 | $ | 30.5 | $ | 66.0 | $ | 58.7 | |||||
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||
Per Diluted Share and OP Unit | 2016 | 2015 | 2015 | 2014 | ||||||||||
FFO | $ | 0.42 | $ | 0.38 | $ | 0.83 | $ | 0.72 | ||||||
FFO, as adjusted | $ | 0.43 | $ | 0.39 | $ | 0.85 | $ | 0.79 | ||||||
• | Net income available to PREIT common shareholders was $4.2 million, or $0.06 per share compared to Net loss attributable to PREIT common shareholders of $34.9 million, or $0.51 per share for the quarter ended June 30, 2015. |
• | Same Store NOI increased by $2.4 million to $62.3 million, primarily driven by an incremental $1.5 million increase from Springfield Town Center that is now included in our quarterly Same Store results. |
• | Non Same Store NOI decreased $4.3 million including a $6.2 million decrease from properties sold in 2015 and 2016, partially offset by the opening of Gloucester Premium Outlets in August 2015. |
• | Gains on sales of interests on real estate were $20.9 million due to the sales of the Walnut and Chestnut Street retail properties and an operating parcel located at Monroe Retail Center. |
• | FFO, as adjusted, for the quarter was $0.43 per share and OP Unit, compared to $0.39 per share and OP Unit in the prior year. Dilution from assets sold in 2015 and 2016 was approximately $0.06 per share. |
• | Impairment of assets of $14.1 million was recognized on Washington Crown Center in the quarter ended June 30, 2016 as compared to $28.7 million recognized on Gadsden Mall, New River Valley Mall, and Wiregrass Commons Mall in the quarter ended June 30, 2015. |
• | Net income available to PREIT common shareholders was $2.0 million, or $0.03 per share, compared to loss attributable to PREIT common shareholders of $52.4 million, or $0.76 per share, for the six months ended June 30, 2015. |
• | Same Store NOI increased $2.7 million to $115.2 million, primarily due to rent increases and new store openings. Same Store NOI for the six month period excludes Springfield Town Center. |
• | Non Same Store NOI decreased $1.0 million including a $8.9 million decrease from properties sold in 2015 and 2016, offset by an incremental $7.0 million aggregate increase from Springfield Town Center and Gloucester Premium Outlets. |
• | Gains on sales of interests in real estate were $22.9 million primarily due to the sale of the Walnut and Chestnut Street retail properties and two operating parcels. |
• | Activist shareholder defense costs were $1.5 million for the six months ended June 30, 2015, and did not recur in 2016. |
• | FFO, as adjusted, for the six months ended June 30, 2016 was $0.85 per share, compared to $0.79 in the prior year. Dilution from assets sold in 2015 and 2016 was approximately $0.09 per share. |
• | Impairment of assets of $14.1 million was recognized on Washington Crown Center in the quarter ended June 30, 2016 as compared to $34.9 million that was recognized on Uniontown, Gadsden, New River Valley and Wiregrass Commons Malls in the six months ended June 30, 2015. |
Rolling Twelve Months Ended: | |||||
June 30, 2016 | June 30, 2016 | ||||
Portfolio Sales per square foot (1) | $458 | $418 | |||
(1) Based on sales reported by tenants leasing 10,000 square feet or less of non-anchor space for at least 24 months. Sales for Springfield Town Center are based on tenants with at least 12 months of reported sales. | |||||
A reconciliation of portfolio sales per square foot can be found below: | |||||
June 30, 2015 | $ | 418 | |||
Organic sales growth | 23 | ||||
Asset sales | 15 | ||||
Springfield Town Center | 2 | ||||
June 30, 2016 Sales | $ | 458 | |||
Leased as of | Occupancy as of: | ||||
June 30, 2016 | June 30, 2016 | June 30, 2015 | |||
Same Store Malls: | |||||
Total including anchors | 96.1% | 94.2% | 94.4% | ||
Total excluding anchors | 93.7% | 90.9% | 91.4% | ||
Portfolio Total Occupancy: | |||||
Total including anchors | 95.9% | 94.0% | 93.4% | ||
Total excluding anchors | 93.8% | 91.1% | 90.0% |
Estimates Per Diluted Share | Lower End | Upper End | ||||
Net income attributable to PREIT common shareholders | $ | 0.13 | $ | 0.17 | ||
Depreciation and amortization (including the Company's proportionate share of unconsolidated properties), noncontrolling interest and other adjustments | 1.79 | 1.79 | ||||
Impairment of assets | 0.19 | 0.19 | ||||
Gain on sale of interests in real estate | (0.29 | ) | (0.29 | ) | ||
FFO | 1.82 | 1.86 | ||||
Provision for employee separation expense and hedge ineffectiveness | 0.02 | 0.01 | ||||
FFO, as adjusted | $ | 1.84 | $ | 1.87 |
• | 2016 Same Store NOI growth of 2.8% to 3.2% remains unchanged for properties in the portfolio for all of 2015 and 2016; |
• | Average quarterly Same Store NOI growth is expected to be 4.0% to 4.4%; |
• | Sale of Washington Crown Center an office building property at Voorhees Town Center in the third quarter; |
• | Additional asset sales, if any, would not occur before the end of 2016; |
• | No additional financing activity; and |
• | No acquisitions. |
STATEMENTS OF OPERATIONS (Unaudited) | Quarter Ended | Six Months Ended | ||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
REVENUE: | ||||||||||||||||
Real estate revenue: | ||||||||||||||||
Base rent | $ | 61,243 | $ | 67,417 | $ | 128,236 | $ | 131,691 | ||||||||
Expense reimbursements | 28,870 | 30,541 | 60,004 | 62,050 | ||||||||||||
Percentage rent | 385 | 322 | 836 | 846 | ||||||||||||
Lease termination revenue | 16 | 37 | 251 | 479 | ||||||||||||
Other real estate revenue | 2,225 | 2,565 | 4,868 | 4,600 | ||||||||||||
Total real estate revenue | 92,739 | 100,882 | 194,195 | 199,666 | ||||||||||||
Other income | 1,514 | 811 | 2,030 | 2,084 | ||||||||||||
Total revenue | 94,253 | 101,693 | 196,225 | 201,750 | ||||||||||||
EXPENSES: | ||||||||||||||||
Operating expenses | ||||||||||||||||
Property operating expenses: | ||||||||||||||||
CAM and real estate taxes | (30,496 | ) | (33,263 | ) | (64,685 | ) | (67,069 | ) | ||||||||
Utilities | (4,137 | ) | (4,959 | ) | (8,463 | ) | (10,108 | ) | ||||||||
Other property operating expenses | (2,899 | ) | (3,792 | ) | (7,495 | ) | (7,988 | ) | ||||||||
Total property operating expenses | (37,532 | ) | (42,014 | ) | (80,643 | ) | (85,165 | ) | ||||||||
Depreciation and amortization | (31,662 | ) | (36,641 | ) | (65,397 | ) | (69,830 | ) | ||||||||
General and administrative expenses | (8,883 | ) | (9,126 | ) | (17,469 | ) | (18,070 | ) | ||||||||
Provision for employee separation expense | (658 | ) | — | (1,193 | ) | — | ||||||||||
Acquisition costs and other expenses | (243 | ) | (817 | ) | (294 | ) | (5,269 | ) | ||||||||
Total operating expenses | (78,978 | ) | (88,598 | ) | (164,996 | ) | (178,334 | ) | ||||||||
Interest expense, net | (17,067 | ) | (21,126 | ) | (36,413 | ) | (41,271 | ) | ||||||||
Impairment of assets | (14,118 | ) | (28,667 | ) | (14,724 | ) | (34,907 | ) | ||||||||
Total expenses | (110,163 | ) | (138,391 | ) | (216,133 | ) | (254,512 | ) | ||||||||
Loss before equity in income of partnerships, gains on sales of interests in real estate and gain on sale of non operating real estate | (15,910 | ) | (36,698 | ) | (19,908 | ) | (52,762 | ) | ||||||||
Equity in income of partnerships | 4,192 | 2,032 | 8,075 | 4,114 | ||||||||||||
Gains on sales of interest in real estate | 20,887 | — | 22,922 | — | ||||||||||||
Gain on sale of interests in non operating real estate | — | — | 9 | 43 | ||||||||||||
Net income (loss) | 9,169 | (34,666 | ) | 11,098 | (48,605 | ) | ||||||||||
Less: net (income available) loss attributed to noncontrolling interest | (982 | ) | 3,742 | (1,190 | ) | 4,172 | ||||||||||
Net income available (loss attributable) to PREIT | 8,187 | (30,924 | ) | 9,908 | (44,433 | ) | ||||||||||
Less: preferred share dividends | (3,962 | ) | (3,962 | ) | (7,924 | ) | (7,924 | ) | ||||||||
Net income available (loss attributable) to PREIT common shareholders | $ | 4,225 | $ | (34,886 | ) | $ | 1,984 | $ | (52,357 | ) | ||||||
Basic and diluted earnings (loss) per share - PREIT (1) | $ | 0.06 | $ | (0.51 | ) | $ | 0.03 | $ | (0.76 | ) | ||||||
Weighted average number of shares outstanding for diluted EPS | 69,159 | 68,753 | 69,157 | 68,660 |
OTHER COMPREHENSIVE INCOME (LOSS) (Unaudited) | Quarter Ended | Six Months Ended | ||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||
(In thousands) | ||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | $ | 9,169 | $ | (34,666 | ) | $ | 11,098 | $ | (48,605 | ) | ||||||
Unrealized loss on derivatives | (3,006 | ) | 1,165 | (8,578 | ) | (846 | ) | |||||||||
Amortization of losses of settled swaps, net of gains | 126 | 238 | 252 | 1,010 | ||||||||||||
Total comprehensive income (loss) | 6,289 | (33,263 | ) | 2,772 | (48,441 | ) | ||||||||||
Less: Comprehensive (income) loss attributable to noncontrolling interest | (677 | ) | 3,686 | (300 | ) | 4,153 | ||||||||||
Comprehensive income (loss attributable) to PREIT | $ | 5,612 | $ | (29,577 | ) | $ | 2,472 | $ | (44,288 | ) |
Quarter Ended June 30, 2016 | Quarter Ended June 30, 2015 | |||||||||||||||||||||||
RECONCILIATION OF NOI AND FFO TO NET INCOME (LOSS) | Consolidated | PREIT's Share unconsolidated partnerships | Total | Consolidated | PREIT's Share unconsolidated partnerships | Total | ||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
Real estate revenue(1) | $ | 92,739 | $ | 12,584 | $ | 105,323 | $ | 100,882 | $ | 12,093 | $ | 112,975 | ||||||||||||
Property operating expenses | (37,532 | ) | (3,230 | ) | (40,762 | ) | (42,014 | ) | (4,470 | ) | (46,484 | ) | ||||||||||||
NET OPERATING INCOME | 55,207 | 9,354 | 64,561 | 58,868 | 7,623 | 66,491 | ||||||||||||||||||
General and administrative expenses | (8,883 | ) | — | (8,883 | ) | (9,126 | ) | — | (9,126 | ) | ||||||||||||||
Provision for employee separation expense | (658 | ) | — | (658 | ) | — | — | — | ||||||||||||||||
Other income | 1,514 | — | 1,514 | 811 | — | 811 | ||||||||||||||||||
Acquisition costs and other expenses | (243 | ) | (1 | ) | (244 | ) | (817 | ) | (14 | ) | (831 | ) | ||||||||||||
Interest expense, net | (17,067 | ) | (2,577 | ) | (19,644 | ) | (21,126 | ) | (2,566 | ) | (23,692 | ) | ||||||||||||
Depreciation of non real estate assets | (365 | ) | — | (365 | ) | (380 | ) | — | (380 | ) | ||||||||||||||
Gain on sale of interest in non operating real estate | — | — | — | — | — | — | ||||||||||||||||||
Preferred share dividends | (3,962 | ) | — | (3,962 | ) | (3,962 | ) | — | (3,962 | ) | ||||||||||||||
FUNDS FROM OPERATIONS | 25,543 | 6,776 | 32,319 | 24,268 | 5,043 | 29,311 | ||||||||||||||||||
Depreciation of real estate assets | (31,297 | ) | (2,584 | ) | (33,881 | ) | (36,261 | ) | (3,011 | ) | (39,272 | ) | ||||||||||||
Equity in income of partnerships | 4,192 | (4,192 | ) | — | 2,032 | (2,032 | ) | — | ||||||||||||||||
Impairment of assets | (14,118 | ) | — | (14,118 | ) | (28,667 | ) | — | (28,667 | ) | ||||||||||||||
Gain on sale of interests in real estate | 20,887 | — | 20,887 | — | — | — | ||||||||||||||||||
Preferred share dividends | 3,962 | — | 3,962 | 3,962 | — | 3,962 | ||||||||||||||||||
Net income (loss) | $ | 9,169 | $ | — | $ | 9,169 | $ | (34,666 | ) | $ | — | $ | (34,666 | ) | ||||||||||
(1)Total includes the non-cash effect of straight-line rent of $798 and $541 for the quarters ended June 30, 2016 and 2015 respectively. | ||||||||||||||||||||||||
Weighted average number of shares outstanding | 69,091 | 68,753 | ||||||||||||||||||||||
Weighted average effect of full conversion of OP Units | 8,327 | 8,357 | ||||||||||||||||||||||
Effect of common share equivalents | 68 | 425 | ||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units | 77,486 | 77,535 | ||||||||||||||||||||||
FUNDS FROM OPERATIONS | $ | 32,319 | $ | 29,311 | ||||||||||||||||||||
Mortgage prepayment penalty and accelerated amortization of deferred financing costs | — | 1,030 | ||||||||||||||||||||||
Acquisition costs | — | 138 | ||||||||||||||||||||||
Provision for employee separation expense | 658 | — | ||||||||||||||||||||||
FUNDS FROM OPERATIONS, AS ADJUSTED | $ | 32,977 | $ | 30,479 | ||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT | $ | 0.42 | $ | 0.38 | ||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT, AS ADJUSTED | $ | 0.43 | $ | 0.39 |
SAME STORE RECONCILIATION | Quarter Ended June 30, | |||||||||||||||||||||||
Same Store | Non-Same Store | Total | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Real estate revenue | $ | 101,376 | $ | 98,347 | $ | 3,947 | $ | 14,628 | $ | 105,323 | $ | 112,975 | ||||||||||||
Property operating expenses | (39,090 | ) | (38,426 | ) | (1,672 | ) | (8,058 | ) | (40,762 | ) | (46,484 | ) | ||||||||||||
NET OPERATING INCOME (NOI) | $ | 62,286 | $ | 59,921 | $ | 2,275 | $ | 6,570 | $ | 64,561 | $ | 66,491 | ||||||||||||
Less: Lease termination revenue | 60 | 70 | 1 | — | 61 | 70 | ||||||||||||||||||
NOI - EXCLUDING LEASE TERMINATION REVENUE | $ | 62,226 | $ | 59,851 | $ | 2,274 | $ | 6,570 | $ | 64,500 | $ | 66,421 |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | |||||||||||||||||||||||
RECONCILIATION OF NOI AND FFO TO NET INCOME (LOSS) | Consolidated | PREIT's Share unconsolidated partnerships | Total | Consolidated | PREIT's Share unconsolidated partnerships | Total | ||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
Real estate revenue(1) | $ | 194,195 | $ | 25,976 | $ | 220,171 | $ | 199,666 | $ | 25,256 | $ | 224,922 | ||||||||||||
Property operating expenses | (80,643 | ) | (7,724 | ) | (88,367 | ) | (85,165 | ) | (9,672 | ) | (94,837 | ) | ||||||||||||
NET OPERATING INCOME | 113,552 | 18,252 | 131,804 | 114,501 | 15,584 | 130,085 | ||||||||||||||||||
General and administrative expenses | (17,469 | ) | — | (17,469 | ) | (18,070 | ) | — | (18,070 | ) | ||||||||||||||
Provision for employee separation expense | (1,193 | ) | — | (1,193 | ) | — | — | — | ||||||||||||||||
Other income | 2,030 | — | 2,030 | 2,084 | — | 2,084 | ||||||||||||||||||
Acquisition costs and other expenses | (294 | ) | (1 | ) | (295 | ) | (5,269 | ) | (41 | ) | (5,310 | ) | ||||||||||||
Interest expense, net | (36,413 | ) | (5,158 | ) | (41,571 | ) | (41,271 | ) | (5,206 | ) | (46,477 | ) | ||||||||||||
Depreciation of non real estate assets | (734 | ) | — | (734 | ) | (758 | ) | — | (758 | ) | ||||||||||||||
Gain on sale of interest in non operating real estate | 9 | — | 9 | 43 | — | 43 | ||||||||||||||||||
Preferred share dividends | (7,924 | ) | — | (7,924 | ) | (7,924 | ) | — | (7,924 | ) | ||||||||||||||
FUNDS FROM OPERATIONS | 51,564 | 13,093 | 64,657 | 43,336 | 10,337 | 53,673 | ||||||||||||||||||
Depreciation of real estate assets | (64,663 | ) | (5,018 | ) | (69,681 | ) | (69,072 | ) | (6,223 | ) | (75,295 | ) | ||||||||||||
Equity in income of partnerships | 8,075 | (8,075 | ) | — | 4,114 | (4,114 | ) | — | ||||||||||||||||
Impairment of assets | (14,724 | ) | — | (14,724 | ) | (34,907 | ) | — | (34,907 | ) | ||||||||||||||
Gain on sale of interests in real estate | 22,922 | — | 22,922 | — | — | — | ||||||||||||||||||
Preferred share dividends | 7,924 | — | 7,924 | 7,924 | — | 7,924 | ||||||||||||||||||
Net income (loss) | $ | 11,098 | $ | — | $ | 11,098 | $ | (48,605 | ) | $ | — | $ | (48,605 | ) | ||||||||||
(1)Total includes the non-cash effect of straight-line rent of $1,514 and $958 for the six months ended June 30, 2016 and 2015 respectively. | ||||||||||||||||||||||||
Weighted average number of shares outstanding | 69,032 | 68,660 | ||||||||||||||||||||||
Weighted average effect of full conversion of OP Units | 8,333 | 5,291 | ||||||||||||||||||||||
Effect of common share equivalents | 125 | 493 | ||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units | 77,490 | 74,444 | ||||||||||||||||||||||
FUNDS FROM OPERATIONS | $ | 64,657 | $ | 53,673 | ||||||||||||||||||||
Mortgage prepayment penalty and accelerated amortization of deferred financing costs | — | 1,030 | ||||||||||||||||||||||
Acquisition costs | — | 3,468 | ||||||||||||||||||||||
Loss on hedge ineffectiveness | 143 | 512 | ||||||||||||||||||||||
Provision for employee separation expense | 1,193 | — | ||||||||||||||||||||||
FUNDS FROM OPERATIONS, AS ADJUSTED | $ | 65,993 | $ | 58,683 | ||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT | $ | 0.83 | $ | 0.72 | ||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT, AS ADJUSTED | $ | 0.85 | $ | 0.79 |
SAME STORE RECONCILIATION | Six months ended June 30, | |||||||||||||||||||||||
Same Store | Non-Same Store | Total | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Real estate revenue | $ | 188,403 | $ | 187,073 | $ | 31,768 | $ | 37,849 | $ | 220,171 | $ | 224,922 | ||||||||||||
Property operating expenses | (73,223 | ) | (74,616 | ) | (15,144 | ) | (20,221 | ) | (88,367 | ) | (94,837 | ) | ||||||||||||
NET OPERATING INCOME (NOI) | $ | 115,180 | $ | 112,457 | $ | 16,624 | $ | 17,628 | $ | 131,804 | $ | 130,085 | ||||||||||||
Less: Lease termination revenue | 231 | 416 | 68 | 95 | 299 | 511 | ||||||||||||||||||
NOI - EXCLUDING LEASE TERMINATION REVENUE | $ | 114,949 | $ | 112,041 | $ | 16,556 | $ | 17,533 | $ | 131,505 | $ | 129,574 |
Same Store Net Operating Income | |||||||||||||||||||||||
Net Operating Income | Excluding lease terminations | ||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||
(In thousands) | 2016 | 2015 | $ | % | 2016 | 2015 | $ | % | |||||||||||||||
Quarter ended March 31 | $ | 57,868 | $ | 55,762 | $ | 2,106 | 3.8 | % | $ | 57,697 | $ | 55,416 | $ | 2,281 | 4.1 | % | |||||||
Quarter ended June 30 | 62,286 | 59,921 | 2,365 | 3.9 | % | 62,226 | 59,851 | 2,375 | 4.0 | % | |||||||||||||
Average (1) | $ | 120,154 | $ | 115,682 | $ | 4,472 | 3.9 | % | $ | 119,923 | $ | 115,266 | $ | 4,657 | 4.0 | % | |||||||
Year to date, June 30, 2016 | $ | 115,180 | $ | 112,457 | $ | 2,723 | 2.4 | % | $ | 114,949 | $ | 112,041 | $ | 2,908 | 2.6 | % |
(1) | Computed by averaging the Same Store NOI from the quarters ended March 31st and June 30th of 2016 and 2015. Same store NOI is calculated using retail properties owned for the full periods presented and excludes properties acquired or disposed of or under redevelopment during the periods presented. Springfield Town Center is included in Same Store NOI for the quarters ended June 30, 2016 and 2015, respectfully, and excluded for the year to date periods ended June 30, 2016 and 2015, respectively. |
CONSOLIDATED BALANCE SHEETS | June 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS: | ||||||||
INVESTMENTS IN REAL ESTATE, at cost: | ||||||||
Operating properties | $ | 3,259,774 | $ | 3,297,520 | ||||
Construction in progress | 85,877 | 64,019 | ||||||
Land held for development | 5,904 | 6,350 | ||||||
Total investments in real estate | 3,351,555 | 3,367,889 | ||||||
Accumulated depreciation | (1,057,857 | ) | (1,015,647 | ) | ||||
Net investments in real estate | 2,293,698 | 2,352,242 | ||||||
INVESTMENTS IN PARTNERSHIPS, at equity: | 161,450 | 161,029 | ||||||
OTHER ASSETS: | ||||||||
Cash and cash equivalents | 16,841 | 22,855 | ||||||
Tenant and other receivables (net of allowance for doubtful accounts of $7,239 and $6,417 at June 30, 2016 and December 31, 2015, respectively) | 30,591 | 40,324 | ||||||
Intangible assets (net of accumulated amortization of $9,872 and $13,441 at June 30, 2016 and December 31, 2015, respectively) | 21,075 | 22,248 | ||||||
Deferred costs and other assets, net | 84,276 | 75,450 | ||||||
Assets held for sale | 23,451 | 126,244 | ||||||
Total assets | $ | 2,631,382 | $ | 2,800,392 | ||||
LIABILITIES: | ||||||||
Mortgage loans payable | $ | 1,231,709 | $ | 1,321,331 | ||||
Term Loans | 396,688 | 398,040 | ||||||
Revolving Facility | 85,000 | 65,000 | ||||||
Tenants' deposits and deferred rent | 17,476 | 14,631 | ||||||
Distributions in excess of partnership investments | 63,188 | 65,547 | ||||||
Fair value of derivative liabilities | 10,254 | 2,756 | ||||||
Liabilities on assets held for sale | 492 | 69,918 | ||||||
Accrued expenses and other liabilities | 78,342 | 78,539 | ||||||
Total liabilities | 1,883,149 | 2,015,762 | ||||||
EQUITY: | 748,233 | 784,630 | ||||||
Total liabilities and equity | $ | 2,631,382 | $ | 2,800,392 |
As Previously Reported | As Corrected | ||||
June 30, 2015 Sales per square foot | $418 | $418 | |||
Organic sales growth | 23 | 13 | |||
Asset sales | 15 | 25 | |||
Springfield Town Center | 2 | 2 | |||
June 30, 2016 Sales per square foot | $458 | $458 |
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