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: November 3, 2016 | By: | /s/ Bruce Goldman | ||
Bruce Goldman | ||||
Executive Vice President and General Counsel |
• | Net loss attributable to PREIT common shareholders was $1.4 million for the quarter compared to $36.3 million in the prior year period. On a per share basis, net loss was $0.02 for the quarter ended September 30, 2016 compared to net loss per share of $0.53 for the prior year quarter |
• | FFO per share was flat for the quarter at $0.49; after adjusting for dilution from asset sales, FFO per share increased by $0.06 per share or 14% |
• | Net income available to PREIT common shareholders was $0.6 million for the nine month period ended September 30, 2016 compared to loss attributable to PREIT common shareholders of $88.7 million in the prior year period. |
• | FFO per share increased 9.1% to $1.32 for the nine month period ended September 30, 2016 compared to the prior year period. |
• | Same Store NOI improved by 5.2% for the quarter and by an average of 4.3% for the first three quarters ended September 30, 2016 as compared to the prior year period. |
◦ | Same Store NOI excluding lease terminations improved by 1.4% for the quarter and by an average of 3.1% for the first three quarters ended September 30, 2016 as compared to the prior year period. |
• | Non-anchor leased space for malls excluding those held for sale was 93.9%, a 160 basis point improvement over current physical occupancy. |
• | Comparable store sales per square foot across the portfolio increased 8.5% to $460 compared to $424 in the prior period. |
• | Renewal spreads for tenants under 10,000 square feet were 12.0% for the quarter and 15.5% for the nine month period ended September 30, 2016. |
◦ | Cash basis renewal spreads for these tenants were 4.5% for the quarter and 7.9% for the nine month period ended September 30, 2016. |
• | Non-anchor occupancy for same store malls improved 190 basis points to 92.8% compared to the quarter ended June 30, 2016. |
• | Completed dispositions of Washington Crown Center and an office building in Voorhees, NJ,executed an Agreement of Sale for Beaver Valley Mall and brought Crossroads Mall in Beckley, WV to market. |
• | New anchor stores, Dick’s Sporting Goods at Cumberland and Saks Fifth Avenue OFF 5TH, at Springfield Town Center, opened respectively. |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||
(In millions, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||
Net income (loss) | $ | 2.9 | $ | (36.2 | ) | $ | 14.0 | $ | (84.8 | ) | |||
Net income available (loss attributable) to PREIT common shareholders | $ | (1.4 | ) | $ | (36.3 | ) | $ | 0.6 | $ | (88.7 | ) | ||
Net earnings (loss) per share - basic and diluted | $ | (0.02 | ) | $ | (0.53 | ) | $ | 0.01 | $ | (1.29 | ) |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||
(In millions) | 2016 | 2015 | 2016 | 2015 | |||||||||
FFO | $ | 37.8 | $ | 37.7 | $ | 102.5 | $ | 91.4 | |||||
Mortgage prepayment penalty and accelerated amortization of deferred financing costs | — | — | — | 1.1 | |||||||||
Acquisition costs | — | — | — | 3.5 | |||||||||
Provision for employee separation expense | 0.2 | 0.1 | 1.4 | 0.1 | |||||||||
Loss on hedge ineffectiveness | — | — | 0.1 | 0.5 | |||||||||
FFO, as adjusted | $ | 38.0 | $ | 37.9 | $ | 104.0 | $ | 96.6 | |||||
FFO from Assets Sold | (0.3 | ) | (5.1 | ) | (5.1 | ) | (17.1 | ) | |||||
FFO, as adjusted for Assets Sold | $ | 37.7 | $ | 32.8 | $ | 98.9 | $ | 79.5 | |||||
Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Per Diluted Share and OP Unit | 2016 | 2015 | 2016 | 2015 | ||||||||||
FFO | $ | 0.49 | $ | 0.49 | $ | 1.32 | $ | 1.21 | ||||||
FFO, as adjusted | $ | 0.49 | $ | 0.49 | $ | 1.34 | $ | 1.28 | ||||||
FFO from Assets Sold | — | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.23 | ) | ||||
FFO, as adjusted for Assets Sold | $ | 0.48 | $ | 0.42 | $ | 1.27 | $ | 1.05 | ||||||
• | Net loss attributable to PREIT common shareholders was $1.4 million, or $0.02 per basic and diluted share compared to net loss attributable to PREIT common shareholders of $36.3 million, or $0.53 per basic and diluted share for the quarter ended September 30, 2015. |
• | Same Store NOI increased by $3.3 million to $65.4 million, primarily driven by an incremental $1.1 million increase from Springfield Town Center and a $2.4 million increase in lease terminations, partially offset by $0.7 million of lower revenue from tenants that filed for bankruptcy in 2016. |
• | Non Same Store NOI decreased $4.6 million including a $6.2 million decrease from properties sold in 2015 and 2016, partially offset by a $1.1 million increase related to the recovery of costs previously expensed at Fashion Outlets of Philadelphia. |
• | FFO, as adjusted, for the quarter was $0.49 per share and OP Unit, compared to $0.49 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 $9.9 million was recognized on Beaver Valley Mall in the quarter ended September 30, 2016, as compared to $51.4 million recognized on Lycoming Mall and Voorhees Town Center in the quarter ended September 30, 2015. |
• | Net income available to PREIT common shareholders was $0.6 million, or $0.01 per basic and diluted share, compared to loss attributable to PREIT common shareholders of $88.7 million, or $1.29 per basic and diluted share, for the nine months ended September 30, 2015. |
• | NOI increased by $0.3 million to $200.6 million. The net increase results from an incremental $8.6 million aggregate increase from Springfield Town Center and Gloucester Premium Outlets, rent increases, new store openings and termination fees at existing properties, net of $15.0 million lower NOI from properties sold in 2015 and 2016. |
• | Gains on sales of interests in real estate were $23.0 million primarily due to the sale of the Walnut and Chestnut Street retail properties and two operating parcels. |
• | Acquisition costs of $3.4 million in the nine months ended September 30, 2015 that did not recur in 2016. |
• | Activist shareholder defense costs of $1.8 million for the nine months ended September 30, 2015 that did not recur in 2016. |
• | FFO, as adjusted, for the nine months ended September 30, 2016 was $1.34 per share and OP Unit, compared to $1.28 in the prior year. Dilution from assets sold in 2015 and 2016 was approximately $0.15 per share. |
• | Impairment of assets of $24.6 million was recognized on Beaver Valley Mall, Washington Crown Center and the office building located at Voorhees Town Center in the nine months ended September 30, 2016 as compared to $86.3 million that was recognized on Lycoming Mall, Voorhees Town Center, Uniontown, Gadsden, New River Valley and Wiregrass Commons Malls in the nine months ended September 30, 2015. |
Rolling Twelve Months Ended: | |||||
September 30, 2016 | September 30, 2015 | ||||
Portfolio Sales per square foot (1)(2) | $460 | $424 | |||
(1) Based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet hand have occupied the space for at least 24 months excluding Springfield Town Center which is 12 months. | |||||
(2) We own a 25% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership. | |||||
A reconciliation of portfolio sales per square foot can be found below: | |||||
September 30, 2015 | $ | 424 | |||
Organic sales growth | 9 | ||||
Asset sales | 24 | ||||
Springfield Town Center | 3 | ||||
September 30, 2016 Sales | $ | 460 | |||
Leased as of | Occupancy as of: | ||
September 30, 2016 | September 30, 2016 | September 30, 2015 | |
Same Store Malls: | |||
Total including anchors(1)(2) | 95.1% | 93.9% | 95.3% |
Total excluding anchors(1)(2) | 94.2% | 92.8% | 93.3% |
Portfolio Total Occupancy: | |||
Total including anchors(1)(2) | 94.8% | 93.6% | 94.0% |
Total excluding anchors(1)(2) | 93.6% | 92.3% | 91.5% |
(1) Includes both consolidated and unconsolidated properties. | |||
(2) We own a 25% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership. |
Estimates Per Diluted Share | Lower End | Upper End | ||||
Net income attributable to PREIT common shareholders | $ | 0.08 | $ | 0.11 | ||
Depreciation and amortization (including the Company's proportionate share of unconsolidated properties), noncontrolling interest and other adjustments | 1.72 | 1.72 | ||||
Impairment of assets | 0.32 | 0.32 | ||||
Gain on sale of interests in real estate | (0.29 | ) | (0.29 | ) | ||
FFO | 1.83 | 1.86 | ||||
Provision for employee separation expense and hedge ineffectiveness | 0.02 | 0.02 | ||||
FFO, as adjusted | $ | 1.85 | $ | 1.88 |
• | Same Store NOI growth in the fourth quarter is expected to be 3.5% to 4.5%; |
• | Additional asset sales, if any, would not occur until the end of 2016 or early 2017; |
• | No additional financing activity; and |
• | No acquisitions. |
STATEMENTS OF OPERATIONS (Unaudited) | Quarter Ended | Nine Months Ended | ||||||||||||||
(In thousands, except per share amounts) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
REVENUE: | ||||||||||||||||
Real estate revenue: | ||||||||||||||||
Base rent | $ | 60,188 | $ | 68,378 | $ | 188,424 | $ | 200,069 | ||||||||
Expense reimbursements | 29,059 | 31,790 | 89,063 | 93,840 | ||||||||||||
Percentage rent | 825 | 866 | 1,661 | 1,712 | ||||||||||||
Lease termination revenue | 3,012 | 1,431 | 3,263 | 1,898 | ||||||||||||
Other real estate revenue | 3,176 | 2,355 | 8,044 | 6,967 | ||||||||||||
Total real estate revenue | 96,260 | 104,820 | 290,455 | 304,486 | ||||||||||||
Other income | 2,600 | 2,216 | 4,630 | 4,300 | ||||||||||||
Total revenue | 98,860 | 107,036 | 295,085 | 308,786 | ||||||||||||
EXPENSES: | ||||||||||||||||
Operating expenses | ||||||||||||||||
Property operating expenses: | ||||||||||||||||
CAM and real estate taxes | (29,373 | ) | (33,004 | ) | (94,058 | ) | (100,073 | ) | ||||||||
Utilities | (4,753 | ) | (5,311 | ) | (13,216 | ) | (15,419 | ) | ||||||||
Other property operating expenses | (3,123 | ) | (4,428 | ) | (10,618 | ) | (12,416 | ) | ||||||||
Total property operating expenses | (37,249 | ) | (42,743 | ) | (117,892 | ) | (127,908 | ) | ||||||||
Depreciation and amortization | (26,820 | ) | (36,108 | ) | (92,217 | ) | (105,938 | ) | ||||||||
General and administrative expenses | (8,244 | ) | (7,554 | ) | (25,713 | ) | (25,624 | ) | ||||||||
Provision for employee separation expense | (162 | ) | (136 | ) | (1,355 | ) | (136 | ) | ||||||||
Acquisition costs and other expenses | (1,080 | ) | (427 | ) | (1,374 | ) | (5,696 | ) | ||||||||
Total operating expenses | (73,555 | ) | (86,968 | ) | (238,551 | ) | (265,302 | ) | ||||||||
Interest expense, net | (17,198 | ) | (19,668 | ) | (53,611 | ) | (60,939 | ) | ||||||||
Impairment of assets | (9,865 | ) | (51,412 | ) | (24,589 | ) | (86,319 | ) | ||||||||
Total expenses | (100,618 | ) | (158,048 | ) | (316,751 | ) | (412,560 | ) | ||||||||
Loss before equity in income of partnerships, gains on sales of interests in real estate and gain on sale of non operating real estate | (1,758 | ) | (51,012 | ) | (21,666 | ) | (103,774 | ) | ||||||||
Equity in income of partnerships | 4,643 | 2,385 | 12,718 | 6,499 | ||||||||||||
Gains on sales of interest in real estate | 31 | 12,386 | 22,953 | 12,386 | ||||||||||||
Gain on sale of interests in non operating real estate | — | — | 9 | 43 | ||||||||||||
Net income (loss) | 2,916 | (36,241 | ) | 14,014 | (84,846 | ) | ||||||||||
Less: net (income available) loss attributed to noncontrolling interest | (312 | ) | 3,901 | (1,502 | ) | 8,073 | ||||||||||
Net income available (loss attributable) to PREIT | 2,604 | (32,340 | ) | 12,512 | (76,773 | ) | ||||||||||
Less: preferred share dividends | (3,962 | ) | (3,962 | ) | (11,886 | ) | (11,886 | ) | ||||||||
Net income available (loss attributable) to PREIT common shareholders | $ | (1,358 | ) | $ | (36,302 | ) | $ | 626 | $ | (88,659 | ) | |||||
Basic and diluted earnings (loss) per share - PREIT (1) | $ | (0.02 | ) | $ | (0.53 | ) | $ | 0.01 | $ | (1.29 | ) | |||||
Weighted average number of shares outstanding for diluted EPS | 69,129 | 68,807 | 69,451 | 68,710 |
OTHER COMPREHENSIVE INCOME (LOSS) (Unaudited) | Quarter Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||
(In thousands) | ||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | $ | 2,916 | $ | (36,241 | ) | $ | 14,014 | $ | (84,846 | ) | ||||||
Unrealized gain (loss) on derivatives | 3,823 | (2,817 | ) | (4,755 | ) | (3,663 | ) | |||||||||
Amortization of losses of settled swaps, net of gains | 123 | 202 | 375 | 1,212 | ||||||||||||
Total comprehensive income (loss) | 6,862 | (38,856 | ) | 9,634 | (87,297 | ) | ||||||||||
Less: Comprehensive (income) loss attributable to noncontrolling interest | (729 | ) | 4,184 | (1,029 | ) | 8,337 | ||||||||||
Comprehensive income (loss attributable) to PREIT | $ | 6,133 | $ | (34,672 | ) | $ | 8,605 | $ | (78,960 | ) |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income (loss) | $ | 2,916 | $ | (36,241 | ) | $ | 14,014 | $ | (84,846 | ) | |||||
Depreciation and amortization on real estate | |||||||||||||||
Consolidated Properties | 26,448 | 35,730 | 91,109 | 104,802 | |||||||||||
PREIT’s share of Equity method investments | 2,571 | 3,142 | 7,591 | 9,365 | |||||||||||
Gains on sales of interests in real estate | (31 | ) | (12,386 | ) | (22,953 | ) | (12,386 | ) | |||||||
Impairment of assets | 9,865 | 51,412 | 24,589 | 86,319 | |||||||||||
Dividends on preferred shares | (3,962 | ) | (3,962 | ) | (11,886 | ) | (11,886 | ) | |||||||
Funds from operations attributable to common shareholders and OP Unit holders | $ | 37,807 | $ | 37,695 | $ | 102,464 | $ | 91,368 | |||||||
Accelerated amortization of financing costs and prepayment penalty | — | 41 | — | 1,071 | |||||||||||
Acquisition costs | — | 2 | — | 3,470 | |||||||||||
Provision for employee separation expense | 162 | 136 | 1,355 | 136 | |||||||||||
Loss on hedge ineffectiveness | — | — | 143 | 512 | |||||||||||
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders | $ | 37,969 | $ | 37,874 | $ | 103,962 | $ | 96,557 | |||||||
Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit | $ | 0.49 | $ | 0.49 | $ | 1.32 | $ | 1.21 | |||||||
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit | $ | 0.49 | $ | 0.49 | $ | 1.34 | $ | 1.28 | |||||||
Weighted average number of shares outstanding | 69,129 | 68,807 | 69,065 | 68,710 | |||||||||||
Weighted average effect of full conversion of OP Units | 8,319 | 8,345 | 8,328 | 6,320 | |||||||||||
Effect of common share equivalents | 361 | 352 | 386 | 423 | |||||||||||
Total weighted average shares outstanding, including OP Units | 77,809 | 77,504 | 77,779 | 75,453 |
Same Store | Non-Same Store | Total | ||||||||||||||||||||||
(In thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
NOI from Consolidated properties | $ | 57,890 | $ | 55,453 | $ | 1,121 | $ | 6,624 | $ | 59,011 | $ | 62,077 | ||||||||||||
NOI from equity method investments at ownership share | 7,486 | 6,672 | 2,299 | 1,434 | 9,785 | 8,106 | ||||||||||||||||||
Total NOI | $ | 65,376 | $ | 62,125 | $ | 3,420 | $ | 8,058 | $ | 68,796 | $ | 70,183 | ||||||||||||
Less: lease termination revenue | 3,770 | 1,340 | 90 | 140 | 3,860 | 1,480 | ||||||||||||||||||
Total NOI - excluding lease termination revenue | $ | 61,606 | $ | 60,785 | $ | 3,330 | $ | 7,918 | $ | 64,936 | $ | 68,703 |
Same Store Net Operating Income(1) | |||||||||||||||||||||||
Net Operating Income | Excluding lease termination revenue | ||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||
(In thousands) | 2016 | 2015 | $ | % | 2016 | 2015 | $ | % | |||||||||||||||
Quarter ended March 31 | $ | 57,869 | $ | 55,762 | $ | 2,107 | 3.8 | % | $ | 57,698 | $ | 55,416 | $ | 2,282 | 4.1 | % | |||||||
Quarter ended June 30 | 62,286 | 59,921 | 2,365 | 3.9 | % | 62,226 | 59,851 | 2,375 | 4.0 | % | |||||||||||||
Quarter ended September 30 | 65,376 | 62,125 | 3,251 | 5.2 | % | 61,606 | 60,785 | 821 | 1.4 | % | |||||||||||||
Average (2) | $ | 185,531 | $ | 177,808 | $ | 7,723 | 4.3 | % | $ | 181,530 | $ | 176,052 | $ | 5,478 | 3.1 | % |
(1) | Includes our proportionate share of Net Operating Income from equity method investments |
(2) | Computed by averaging the Same Store NOI from the quarters ended March 31st, June 30th and September 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 September 30, 2016 and 2015, respectfully, and excluded for the year to date periods ended September 30, 2016 and 2015, respectively. |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income (loss) | $ | 2,916 | $ | (36,241 | ) | $ | 14,014 | $ | (84,846 | ) | |||||
Other income | (2,600 | ) | (2,216 | ) | (4,630 | ) | (4,300 | ) | |||||||
Depreciation and amortization | 26,820 | 36,108 | 92,217 | 105,938 | |||||||||||
General and administrative expenses | 8,244 | 7,554 | 25,713 | 25,624 | |||||||||||
Employee separation expenses | 162 | 136 | 1,355 | 136 | |||||||||||
Acquisition and other expenses | 1,080 | 427 | 1,374 | 5,696 | |||||||||||
Interest expense | 17,198 | 19,668 | 53,611 | 60,939 | |||||||||||
Impairment of assets | 9,865 | 51,412 | 24,589 | 86,319 | |||||||||||
Equity in income of partnerships | (4,643 | ) | (2,385 | ) | (12,718 | ) | (6,499 | ) | |||||||
Gains on sales of interests in real estate, net | (31 | ) | (12,386 | ) | (22,953 | ) | (12,386 | ) | |||||||
Gains on sales of non operating real estate | — | — | (9 | ) | (43 | ) | |||||||||
Net operating income - consolidated properties | 59,011 | 62,077 | $ | 172,563 | $ | 176,578 | |||||||||
Less: Non Same Store NOI | 1,121 | 6,624 | |||||||||||||
Same Store NOI | 57,890 | 55,453 | |||||||||||||
Less: lease termination revenue | 2,963 | 1,291 | |||||||||||||
Same Store NOI less lease termination revenue | $ | 54,927 | $ | 54,162 |
Quarter Ended September 30, | ||||||||
(in thousands) | 2016 | 2015 | ||||||
Equity in income of partnerships | $ | 4,643 | $ | 2,385 | ||||
Depreciation and amortization | 2,571 | 3,142 | ||||||
Interest and other expenses | 2,571 | 2,579 | ||||||
Net operating income from equity method investments at ownership share | 9,785 | 8,106 | ||||||
Less: Non Same Store NOI | 2,299 | 1,434 | ||||||
Same Store NOI | 7,486 | 6,672 | ||||||
Less: lease termination revenue | 807 | 49 | ||||||
Same Store NOI from equity method investments less lease termination revenue at ownership share | $ | 6,679 | $ | 6,623 |
Quarter Ended March 31, | Quarter Ended June 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income (loss) | $ | 1,929 | $ | (13,937 | ) | $ | 9,169 | $ | (34,666 | ) | |||||
Other income | (516 | ) | (1,274 | ) | (1,514 | ) | (811 | ) | |||||||
Depreciation and amortization | 33,735 | 33,189 | 31,662 | 36,641 | |||||||||||
General and administrative expenses | 8,586 | 8,943 | 8,883 | 9,126 | |||||||||||
Employee separation expenses | 535 | — | 658 | — | |||||||||||
Acquisition and other expenses | 51 | 4,451 | 243 | 817 | |||||||||||
Interest expense | 19,346 | 20,145 | 17,067 | 21,126 | |||||||||||
Impairment of assets | 606 | 6,240 | 14,118 | 28,667 | |||||||||||
Equity in income of partnerships | (3,883 | ) | (2,083 | ) | (4,192 | ) | (2,032 | ) | |||||||
Gains on sales of interests in real estate, net | (2,035 | ) | — | (20,887 | ) | — | |||||||||
Gains on sales of non operating real estate | (9 | ) | (43 | ) | — | — | |||||||||
Net operating income - consolidated properties | 58,345 | 55,631 | 55,207 | 58,868 | |||||||||||
Less: Non Same Store NOI | 7,157 | 6,339 | (28 | ) | 5,548 | ||||||||||
Same Store NOI | 51,188 | 49,292 | 55,235 | 53,320 | |||||||||||
Less: lease termination revenue | 171 | 346 | 15 | 55 | |||||||||||
Same Store NOI less lease termination revenue | $ | 51,017 | $ | 48,946 | $ | 55,220 | $ | 53,265 |
Quarter Ended March 31, | Quarter Ended June 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Equity in income of partnerships | $ | 3,883 | $ | 2,083 | $ | 4,192 | $ | 2,032 | |||||||
Depreciation and amortization | 2,434 | 3,212 | 2,584 | 3,011 | |||||||||||
Interest and other expenses, net | 2,581 | 2,667 | 2,578 | 2,580 | |||||||||||
Net operating income from equity method investments at ownership share | 8,898 | 7,962 | 9,354 | 7,623 | |||||||||||
Less: Non Same Store NOI | 2,217 | 1,492 | 2,303 | 1,022 | |||||||||||
Same Store NOI | 6,681 | 6,470 | 7,051 | 6,601 | |||||||||||
Less: lease termination revenue | — | — | 45 | 15 | |||||||||||
Same Store NOI from equity method investments less lease termination revenue at ownership share | $ | 6,681 | $ | 6,470 | $ | 7,006 | $ | 6,586 |
Nine Months Ended September 30, | |||||||
(in thousands) | 2016 | 2015 | |||||
Net income (loss) | $ | 14,014 | $ | (84,846 | ) | ||
Other income | (4,630 | ) | (4,300 | ) | |||
Depreciation and amortization | 92,217 | 105,938 | |||||
General and administrative expenses | 25,713 | 25,624 | |||||
Employee separation expenses | 1,355 | 136 | |||||
Acquisition and other expenses | 1,374 | 5,696 | |||||
Interest expense | 53,611 | 60,939 | |||||
Impairment of assets | 24,589 | 86,319 | |||||
Equity in income of partnerships | (12,718 | ) | (6,499 | ) | |||
Gains on sales of interests in real estate, net | (22,953 | ) | (12,386 | ) | |||
Gains on sales of non operating real estate | (9 | ) | (43 | ) | |||
Net operating income - consolidated properties | $ | 172,563 | $ | 176,578 |
Nine Months Ended September 30, | ||||||||
(in thousands) | 2016 | 2015 | ||||||
Equity in income of partnerships | $ | 12,718 | $ | 6,499 | ||||
Depreciation and amortization | 7,591 | 9,365 | ||||||
Interest and other expenses, net | 7,729 | 7,826 | ||||||
Net operating income from equity method investments at ownership share | $ | 28,038 | $ | 23,690 |
Nine Months Ended September 30, | ||||||||
(in thousands) | 2016 | 2015 | ||||||
Consolidated properties | $ | 172,563 | $ | 176,578 | ||||
Equity method investments at ownership share | 28,038 | 23,690 | ||||||
Total NOI | 200,601 | 200,268 | ||||||
Less: Lease termination revenue | 4,158 | 1,961 | ||||||
Total NOI excluding lease termination revenue | $ | 196,443 | $ | 198,307 |
CONSOLIDATED BALANCE SHEETS | September 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS: | ||||||||
INVESTMENTS IN REAL ESTATE, at cost: | ||||||||
Operating properties | $ | 3,207,221 | $ | 3,297,520 | ||||
Construction in progress | 98,925 | 64,019 | ||||||
Land held for development | 5,908 | 6,350 | ||||||
Total investments in real estate | 3,312,054 | 3,367,889 | ||||||
Accumulated depreciation | (1,052,550 | ) | (1,015,647 | ) | ||||
Net investments in real estate | 2,259,504 | 2,352,242 | ||||||
INVESTMENTS IN PARTNERSHIPS, at equity: | 166,149 | 161,029 | ||||||
OTHER ASSETS: | ||||||||
Cash and cash equivalents | 25,384 | 22,855 | ||||||
Tenant and other receivables (net of allowance for doubtful accounts of $7,128 and $6,417 at September 30, 2016 and December 31, 2015, respectively) | 31,721 | 40,324 | ||||||
Intangible assets (net of accumulated amortization of $10,664 and $13,441 at September 30, 2016 and December 31, 2015, respectively) | 20,283 | 22,248 | ||||||
Deferred costs and other assets, net | 90,975 | 75,450 | ||||||
Assets held for sale | 30,715 | 126,244 | ||||||
Total assets | $ | 2,624,731 | $ | 2,800,392 | ||||
LIABILITIES: | ||||||||
Mortgage loans payable | $ | 1,227,690 | $ | 1,321,331 | ||||
Term Loans | 396,856 | 398,040 | ||||||
Revolving Facility | 115,000 | 65,000 | ||||||
Tenants' deposits and deferred rent | 15,374 | 14,631 | ||||||
Distributions in excess of partnership investments | 61,617 | 65,547 | ||||||
Fair value of derivative liabilities | 6,482 | 2,756 | ||||||
Liabilities related to assets held for sale | 1,093 | 69,918 | ||||||
Accrued expenses and other liabilities | 64,048 | 78,539 | ||||||
Total liabilities | 1,888,160 | 2,015,762 | ||||||
EQUITY: | 736,571 | 784,630 | ||||||
Total liabilities and equity | $ | 2,624,731 | $ | 2,800,392 |
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