Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Per Share | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Income (Loss) - diluted | $ | 2.54 | $ | 0.08 | $ | 2.11 | $ | (1.34 | ) | |||||||
FFO - diluted | $ | 0.93 | $ | 0.82 | $ | 3.15 | $ | 2.38 | ||||||||
Core FFO - diluted | $ | 0.99 | $ | 0.86 | $ | 2.76 | $ | 2.49 |
Year-Over-Year Comparison | Sequential Comparison | YTD Comparison | |||||||
Same-Store Results | 3Q19 vs. 3Q18 | 3Q19 vs. 2Q19 | CY19 vs. CY18 | ||||||
Revenues | 4.0 | % | 0.6 | % | 3.7 | % | |||
Expenses | 2.2 | % | 2.5 | % | 2.8 | % | |||
NOI | 5.3 | % | (0.8 | )% | 4.4 | % |
Three months ended | |||||||||
Same-Store Results | September 30, 2019 | June 30, 2019 | September 30, 2018 | ||||||
Weighted Average Occupancy | 93.3 | % | 94.3 | % | 91.9 | % |
• | We reported Net Income of $2.54 per diluted share for the third quarter of 2019, compared to Net Income of $0.08 per share for the same quarter in 2018; |
• | Core FFO grew by 15.1%, increasing to $0.99 per diluted share for the third quarter of 2019, compared to $0.86 per share for the same quarter in 2018; |
• | Same-store revenue increased year-over-year by 4.0% driven by 2.6% growth in rental revenue and 1.4% growth in occupancy, while same-store operating expenses grew 2.2% year-over-year, primarily due to real estate taxes. The combination of 4.0% revenue growth and expense control initiatives that reduced same-store controllable expenses by 2.1% over the same period in 2018, led to same-store NOI growth of 5.3%, our eighth consecutive quarter of year-over-year NOI growth; |
• | We entered into a $59.9 million mortgage loan and a $150.0 million private shelf agreement. Of the $150.0 million available under the private shelf agreement, we funded $75.0 million of Series A unsecured senior notes and $50.0 million of Series B unsecured senior notes; |
• | We updated earnings guidance with respect to projected same-store growth for calendar year 2019 as follows: |
◦ | raised the midpoint of full-year net income per diluted share guidance from net loss of $(1.22) to net income of $2.77. This increase was due to gains from the sale of real estate assets; |
◦ | increased the range of full-year Core FFO per diluted share from $3.68 to $3.78, which increased the midpoint from $3.67 to $3.73. This increase is due to better operating results, disposition and redeployment execution, and interest savings from favorable debt refinancing; |
◦ | raised the midpoint of full-year NOI to 3.75% from 3.50% by narrowing the range from 3.00%-4.00% to 3.50%-4.00%; |
◦ | narrowed the range of revenue growth from 3.00%-4.00% to 3.25%-3.75%, which left the midpoint unchanged; and |
◦ | narrowed the range for expenses from 2.75%-3.75% to 3.00%-3.50% and reaffirmed the midpoint of 3.25%. |
• | We repurchased approximately 39,000 common shares for an aggregate total cost of $2.3 million, representing an average price of $59.57 per common share. |
1 |
2019 Revised | 2019 Guidance | ||||||
Range | Current Midpoint | Prior Midpoint | Change | ||||
Net income (loss) per share - diluted | $2.72 to $2.82 | $2.77 | $(1.22) | $3.99 | |||
Core FFO per share and Unit- diluted | $3.68 to $3.78 | $3.73 | $3.67 | $0.06 | |||
Same-Store Growth | |||||||
Revenue | 3.25% to 3.75% | 3.50% | 3.50% | — | |||
Expenses | 3.00% to 3.50% | 3.25% | 3.25% | — | |||
NOI | 3.50% to 4.00% | 3.75% | 3.50% | 0.25% |
2 |
Live webcast and replay: http://ir.iretapartments.com | ||||
Live Conference Call | Conference Call Replay | |||
Thursday, November 7, 2019, at 10:00 AM ET | Replay available until November 21, 2019 | |||
USA Toll Free Number | 1-877-509-9785 | USA Toll Free Number | 1-877-344-7529 | |
International Toll Free Number | 1-412-902-4132 | International Toll Free Number | 1-412-317-0088 | |
Canada Toll Free Number | 1-855-669-9657 | Canada Toll Free Number | 1-855-669-9658 | |
Conference Number | 10135927 |
3 |
Page | |
Key Financial Data | |
Non-GAAP Financial Measures and Reconciliations | |
Debt and Capital Analysis | |
Portfolio Analysis | |
3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | ||||||||||||||||
Calendar Year 2019 | Calendar Year 2019 | Calendar Year 2019 | Calendar Year 2018 | Calendar Year 2018 | ||||||||||||||||
High closing price | $ | 74.67 | $ | 61.28 | $ | 61.50 | $ | 59.10 | $ | 59.80 | ||||||||||
Low closing price | $ | 59.22 | $ | 57.19 | $ | 49.92 | $ | 47.00 | $ | 53.30 | ||||||||||
Average closing price | $ | 66.83 | $ | 59.54 | $ | 58.11 | $ | 53.40 | $ | 54.99 | ||||||||||
Closing price at end of quarter | $ | 74.67 | $ | 58.67 | $ | 59.91 | $ | 49.07 | $ | 59.80 | ||||||||||
Common share distributions – annualized | $ | 2.80 | $ | 2.80 | $ | 2.80 | $ | 2.80 | $ | 2.80 | ||||||||||
Closing dividend yield – annualized | 3.8 | % | 4.8 | % | 4.7 | % | 5.7 | % | 4.7 | % | ||||||||||
Closing common shares outstanding (thousands) | 11,625 | 11,656 | 11,768 | 11,942 | 11,961 | |||||||||||||||
Closing limited partnership units outstanding (thousands) | 1,223 | 1,224 | 1,365 | 1,368 | 1,379 | |||||||||||||||
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands) | $ | 959,360 | $ | 755,670 | $ | 786,798 | $ | 653,122 | $ | 797,732 |
S-1 |
Three Months Ended | Nine months ended | ||||||||||||||||||||||||||||
9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 9/30/2019 | 9/30/2018 | |||||||||||||||||||||||
REVENUE | $ | 47,436 | $ | 46,934 | $ | 45,608 | $ | 45,730 | $ | 45,406 | $ | 139,978 | $ | 134,638 | |||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||
Property operating expenses, excluding real estate taxes | 14,485 | 13,942 | 14,804 | 13,292 | 14,438 | 43,231 | 42,618 | ||||||||||||||||||||||
Real estate taxes | 5,425 | 5,574 | 5,232 | 5,098 | 5,049 | 16,231 | 15,073 | ||||||||||||||||||||||
Property management expense | 1,553 | 1,445 | 1,554 | 1,447 | 1,269 | 4,552 | 4,090 | ||||||||||||||||||||||
Casualty loss | 178 | 92 | 641 | 540 | 225 | 911 | 275 | ||||||||||||||||||||||
Depreciation/amortization | 18,751 | 18,437 | 18,111 | 18,812 | 19,164 | 55,299 | 58,812 | ||||||||||||||||||||||
Impairment of real estate investments | — | — | — | 1,221 | — | — | 17,809 | ||||||||||||||||||||||
General and administrative expenses | 3,448 | 3,549 | 3,806 | 3,769 | 3,147 | 10,803 | 11,114 | ||||||||||||||||||||||
TOTAL EXPENSES | $ | 43,840 | $ | 43,039 | $ | 44,148 | $ | 44,179 | $ | 43,292 | $ | 131,027 | $ | 149,791 | |||||||||||||||
Operating income (loss) | 3,596 | 3,895 | 1,460 | 1,551 | 2,114 | 8,951 | (15,153 | ) | |||||||||||||||||||||
Interest expense | (7,694 | ) | (7,590 | ) | (7,896 | ) | (7,682 | ) | (8,193 | ) | (23,180 | ) | (25,051 | ) | |||||||||||||||
Loss on extinguishment of debt | (1,087 | ) | (407 | ) | (2 | ) | (5 | ) | (540 | ) | (1,496 | ) | (673 | ) | |||||||||||||||
Interest and other income | 498 | 468 | 424 | 483 | 395 | 1,390 | 1,544 | ||||||||||||||||||||||
Income (loss) before gain (loss) on sale of real estate and other investments, gain (loss) on litigation settlement, and income (loss) from discontinued operations | (4,687 | ) | (3,634 | ) | (6,014 | ) | (5,653 | ) | (6,224 | ) | (14,335 | ) | (39,333 | ) | |||||||||||||||
Gain (loss) on sale of real estate and other investments | 39,105 | 615 | 54 | 612 | 9,095 | 39,774 | 11,399 | ||||||||||||||||||||||
Gain (loss) on litigation settlement | 300 | 6,286 | — | — | — | 6,586 | — | ||||||||||||||||||||||
Income (loss) from continuing operations | 34,718 | 3,267 | (5,960 | ) | (5,041 | ) | 2,871 | 32,025 | (27,934 | ) | |||||||||||||||||||
Income (loss) from discontinued operations | — | — | — | — | 570 | — | 14,690 | ||||||||||||||||||||||
Net income (loss) | $ | 34,718 | $ | 3,267 | $ | (5,960 | ) | $ | (5,041 | ) | $ | 3,441 | $ | 32,025 | $ | (13,244 | ) | ||||||||||||
Dividends to preferred unitholders | (160 | ) | (160 | ) | (57 | ) | — | — | (377 | ) | — | ||||||||||||||||||
Net (income) loss attributable to noncontrolling interest – Operating Partnership | (3,145 | ) | (148 | ) | 743 | 665 | (112 | ) | (2,550 | ) | 1,888 | ||||||||||||||||||
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities | 183 | 154 | 576 | 270 | (676 | ) | 913 | 439 | |||||||||||||||||||||
Net income (loss) attributable to controlling interests | 31,596 | 3,113 | (4,698 | ) | (4,106 | ) | 2,653 | 30,011 | (10,917 | ) | |||||||||||||||||||
Dividends to preferred shareholders | (1,705 | ) | (1,706 | ) | (1,705 | ) | (1,705 | ) | (1,705 | ) | (5,116 | ) | (5,116 | ) | |||||||||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ | 29,891 | $ | 1,407 | $ | (6,403 | ) | $ | (5,811 | ) | $ | 948 | $ | 24,895 | $ | (16,033 | ) | ||||||||||||
Per Share Data - Basic | |||||||||||||||||||||||||||||
Earnings (loss) per common share from continuing operations – basic | $ | 2.57 | $ | 0.11 | $ | (0.54 | ) | $ | (0.49 | ) | $ | 0.04 | $ | 2.11 | $ | (2.44 | ) | ||||||||||||
Earnings (loss) per common share from discontinued operations – basic | — | — | — | — | 0.04 | — | 1.10 | ||||||||||||||||||||||
Net earnings (loss) per common share – basic | $ | 2.57 | $ | 0.11 | $ | (0.54 | ) | $ | (0.49 | ) | $ | 0.08 | $ | 2.11 | $ | (1.34 | ) | ||||||||||||
Per Share Data - Diluted | |||||||||||||||||||||||||||||
Earnings (loss) per common share from continuing operations – diluted | $ | 2.54 | $ | 0.11 | $ | (0.54 | ) | $ | (0.49 | ) | $ | 0.04 | $ | 2.11 | $ | (2.44 | ) | ||||||||||||
Earnings per common share from discontinued operations – diluted | — | — | — | — | $ | 0.04 | — | $ | 1.10 | ||||||||||||||||||||
Net earnings (loss) per common share – diluted | $ | 2.54 | $ | 0.11 | $ | (0.54 | ) | $ | (0.49 | ) | $ | 0.08 | $ | 2.11 | $ | (1.34 | ) | ||||||||||||
Percentage of Revenue | |||||||||||||||||||||||||||||
Property operating expenses, excluding real estate taxes | 30.5 | % | 29.7 | % | 32.5 | % | 29.1 | % | 31.8 | % | 30.9 | % | 31.7 | % | |||||||||||||||
General and administrative expenses | 7.3 | % | 7.6 | % | 8.3 | % | 8.2 | % | 6.9 | % | 7.7 | % | 8.3 | % | |||||||||||||||
Interest | 16.2 | % | 16.2 | % | 17.3 | % | 16.8 | % | 18.0 | % | 16.6 | % | 18.6 | % | |||||||||||||||
Income (loss) from discontinued operations | — | — | — | — | 1.3 | % | — | 10.9 | % | ||||||||||||||||||||
Net income (loss) | 73.2 | % | 7.0 | % | (13.1 | )% | (11.0 | )% | 7.6 | % | 22.9 | % | (9.8 | )% |
S-2 |
9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Real estate investments | ||||||||||||||||||||
Property owned | $ | 1,720,352 | $ | 1,663,539 | $ | 1,673,158 | $ | 1,627,636 | $ | 1,638,909 | ||||||||||
Less accumulated depreciation | (370,492 | ) | (380,321 | ) | (371,672 | ) | (353,871 | ) | (339,515 | ) | ||||||||||
1,349,860 | 1,283,218 | 1,301,486 | 1,273,765 | 1,299,394 | ||||||||||||||||
Unimproved land | 1,376 | 1,746 | 2,252 | 5,301 | 6,522 | |||||||||||||||
Mortgage loans receivable | 10,140 | 10,140 | 10,260 | 10,410 | 10,530 | |||||||||||||||
Total real estate investments | 1,361,376 | 1,295,104 | 1,313,998 | 1,289,476 | 1,316,446 | |||||||||||||||
Cash and cash equivalents | 8,500 | 17,406 | 23,329 | 13,792 | 36,910 | |||||||||||||||
Restricted cash | 3,339 | 4,672 | 4,819 | 5,464 | 4,669 | |||||||||||||||
Other assets | 30,589 | 30,626 | 29,166 | 27,265 | 28,472 | |||||||||||||||
TOTAL ASSETS | $ | 1,403,804 | $ | 1,347,808 | $ | 1,371,312 | $ | 1,335,997 | $ | 1,386,497 | ||||||||||
LIABILITIES, MEZZANINE EQUITY, AND EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 40,546 | $ | 44,766 | $ | 40,697 | $ | 40,892 | $ | 38,203 | ||||||||||
Revolving line of credit | 103,143 | 177,939 | 118,677 | 57,500 | 71,000 | |||||||||||||||
Notes payable, net of loan costs | 269,006 | 144,082 | 144,036 | 143,991 | 143,937 | |||||||||||||||
Mortgages payable, net of loan costs | 360,886 | 370,461 | 430,950 | 444,197 | 463,052 | |||||||||||||||
TOTAL LIABILITIES | $ | 773,581 | $ | 737,248 | $ | 734,360 | $ | 686,580 | $ | 716,192 | ||||||||||
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES | — | — | — | $ | 5,968 | $ | 6,130 | |||||||||||||
SERIES D PREFERRED UNITS | $ | 16,560 | $ | 16,560 | $ | 16,560 | — | — | ||||||||||||
EQUITY | ||||||||||||||||||||
Series C Preferred Shares of Beneficial Interest | 99,456 | 99,456 | 99,456 | 99,456 | 99,456 | |||||||||||||||
Common Shares of Beneficial Interest | 886,598 | 888,541 | 895,381 | 899,234 | 900,368 | |||||||||||||||
Accumulated distributions in excess of net income | (428,680 | ) | (450,433 | ) | (443,661 | ) | (429,048 | ) | (414,900 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (9,793 | ) | (7,598 | ) | (3,139 | ) | (856 | ) | 2,760 | |||||||||||
Total shareholders’ equity | $ | 547,581 | $ | 529,966 | $ | 548,037 | $ | 568,786 | $ | 587,684 | ||||||||||
Noncontrolling interests – Operating Partnership | 60,169 | 57,902 | 66,060 | 67,916 | 69,578 | |||||||||||||||
Noncontrolling interests – consolidated real estate entities | 5,913 | 6,132 | 6,295 | 6,747 | 6,913 | |||||||||||||||
Total equity | $ | 613,663 | $ | 594,000 | $ | 620,392 | $ | 643,449 | $ | 664,175 | ||||||||||
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY | $ | 1,403,804 | $ | 1,347,808 | $ | 1,371,312 | $ | 1,335,997 | $ | 1,386,497 |
S-3 |
(in thousands, except percentages) | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||
Operating income (loss) | $ | 3,596 | $ | 2,114 | $ | 1,482 | 70.1 | % | $ | 8,951 | $ | (15,153 | ) | $ | 24,104 | (159.1 | )% | |||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||
Property management expenses | 1,553 | 1,269 | 284 | 22.4 | % | 4,552 | 4,090 | 462 | 11.3 | % | ||||||||||||||||||||
Casualty loss | 178 | 225 | (47 | ) | (20.9 | )% | 911 | 275 | 636 | 231.3 | % | |||||||||||||||||||
Depreciation and amortization | 18,751 | 19,164 | (413 | ) | (2.2 | )% | 55,299 | 58,812 | (3,513 | ) | (6.0 | )% | ||||||||||||||||||
Impairment | — | — | — | — | — | 17,809 | (17,809 | ) | (100.0 | )% | ||||||||||||||||||||
General and administrative expenses | 3,448 | 3,147 | 301 | 9.6 | % | 10,803 | 11,114 | (311 | ) | (2.8 | )% | |||||||||||||||||||
Net operating income | $ | 27,526 | $ | 25,919 | $ | 1,607 | 6.2 | % | $ | 80,516 | $ | 76,947 | $ | 3,569 | 4.6 | % | ||||||||||||||
Revenue | ||||||||||||||||||||||||||||||
Same-store | $ | 37,633 | $ | 36,198 | $ | 1,435 | 4.0 | % | $ | 112,052 | $ | 108,031 | $ | 4,021 | 3.7 | % | ||||||||||||||
Non-same-store | 6,283 | 4,687 | 1,596 | 34.1 | % | 17,405 | 11,038 | 6,367 | 57.7 | % | ||||||||||||||||||||
Other properties and dispositions | 3,520 | 4,521 | (1,001 | ) | (22.1 | )% | 10,521 | 15,569 | (5,048 | ) | (32.4 | )% | ||||||||||||||||||
Total | 47,436 | 45,406 | 2,030 | 4.5 | % | 139,978 | 134,638 | 5,340 | 4.0 | % | ||||||||||||||||||||
Property operating expenses, including real estate taxes | ||||||||||||||||||||||||||||||
Same-store | 16,147 | 15,795 | 352 | 2.2 | % | 48,561 | 47,227 | 1,334 | 2.8 | % | ||||||||||||||||||||
Non-same-store | 2,308 | 1,696 | 612 | 36.1 | % | 6,327 | 4,115 | 2,212 | 53.8 | % | ||||||||||||||||||||
Other properties and dispositions | 1,455 | 1,996 | (541 | ) | (27.1 | )% | 4,574 | 6,349 | (1,775 | ) | (28.0 | )% | ||||||||||||||||||
Total | 19,910 | 19,487 | 423 | 2.2 | % | 59,462 | 57,691 | 1,771 | 3.1 | % | ||||||||||||||||||||
Net operating income | ||||||||||||||||||||||||||||||
Same-store | 21,486 | 20,403 | 1,083 | 5.3 | % | 63,491 | 60,804 | 2,687 | 4.4 | % | ||||||||||||||||||||
Non-same-store | 3,975 | 2,991 | 984 | 32.9 | % | 11,078 | 6,923 | 4,155 | 60.0 | % | ||||||||||||||||||||
Other properties and dispositions | 2,065 | 2,525 | (460 | ) | (18.2 | )% | 5,947 | 9,220 | (3,273 | ) | (35.5 | )% | ||||||||||||||||||
Total | $ | 27,526 | $ | 25,919 | $ | 1,607 | 6.2 | % | $ | 80,516 | $ | 76,947 | $ | 3,569 | 4.6 | % |
S-4 |
(in thousands, except percentages) | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||
Controllable expenses | ||||||||||||||||||||||||||||||
Compensation | $ | 4,368 | $ | 4,362 | $ | 6 | 0.1 | % | $ | 12,889 | $ | 13,520 | $ | (631 | ) | (4.7 | )% | |||||||||||||
Repairs and maintenance | 3,078 | 3,277 | (199 | ) | (6.1 | )% | 9,296 | 8,987 | 309 | 3.4 | % | |||||||||||||||||||
Utilities | 2,608 | 2,614 | (6 | ) | (0.2 | )% | 8,388 | 8,304 | 84 | 1.0 | % | |||||||||||||||||||
Administrative and marketing | 778 | 810 | (32 | ) | (4.0 | )% | 2,530 | 2,401 | 129 | 5.4 | % | |||||||||||||||||||
Total | $ | 10,832 | $ | 11,063 | $ | (231 | ) | (2.1 | )% | $ | 33,103 | $ | 33,212 | $ | (109 | ) | (0.3 | )% | ||||||||||||
Non-controllable expenses | ||||||||||||||||||||||||||||||
Real estate taxes | $ | 4,173 | $ | 3,973 | $ | 200 | 5.0 | % | $ | 12,506 | $ | 12,032 | $ | 474 | 3.9 | % | ||||||||||||||
Insurance | 1,142 | 759 | 383 | 50.5 | % | 2,952 | 1,983 | 969 | 48.9 | % | ||||||||||||||||||||
Total | $ | 5,315 | $ | 4,732 | $ | 583 | 12.3 | % | $ | 15,458 | $ | 14,015 | $ | 1,443 | 10.3 | % | ||||||||||||||
Total | $ | 16,147 | $ | 15,795 | $ | 352 | 2.2 | % | $ | 48,561 | $ | 47,227 | $ | 1,334 | 2.8 | % |
• | depreciation and amortization related to real estate; |
• | gains and losses from the sale of certain real estate assets; and |
• | impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. |
S-5 |
(in thousands, except per share amounts) | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 9/30/2019 | 9/30/2018 | |||||||||||||||||||||||
Funds From Operations | |||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | 29,891 | $ | 1,407 | $ | (6,403 | ) | $ | (5,811 | ) | $ | 948 | $ | 24,895 | $ | (16,033 | ) | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Noncontrolling interests – Operating Partnership | 3,145 | 148 | (743 | ) | (665 | ) | 112 | 2,550 | (1,888 | ) | |||||||||||||||||||
Depreciation and amortization | 18,751 | 18,437 | 18,111 | 18,812 | 19,164 | 55,299 | 58,814 | ||||||||||||||||||||||
Less depreciation – non real estate | (71 | ) | (79 | ) | (85 | ) | (76 | ) | (76 | ) | (235 | ) | (231 | ) | |||||||||||||||
Less depreciation – partially owned entities | (452 | ) | (474 | ) | (678 | ) | (680 | ) | (673 | ) | (1,604 | ) | (2,115 | ) | |||||||||||||||
Impairment of real estate | — | — | — | 1,221 | — | — | 17,809 | ||||||||||||||||||||||
(Gain) loss on sale of real estate | (39,105 | ) | (615 | ) | (54 | ) | (612 | ) | (8,499 | ) | (39,774 | ) | (24,633 | ) | |||||||||||||||
FFO applicable to common shares and Units | $ | 12,159 | $ | 18,824 | $ | 10,148 | $ | 12,189 | $ | 10,976 | $ | 41,131 | $ | 31,723 | |||||||||||||||
Adjustments to Core FFO: | |||||||||||||||||||||||||||||
Casualty loss write off | — | — | — | 43 | — | — | — | ||||||||||||||||||||||
Loss on extinguishment of debt | 1,087 | 407 | 2 | 5 | 540 | 1,496 | 673 | ||||||||||||||||||||||
Gain on litigation settlement | (300 | ) | (6,286 | ) | — | — | — | (6,586 | ) | — | |||||||||||||||||||
Severance and transition costs | — | — | — | — | — | — | 811 | ||||||||||||||||||||||
Core FFO applicable to common shares and Units | $ | 12,946 | $ | 12,945 | $ | 10,150 | $ | 12,237 | $ | 11,516 | $ | 36,041 | $ | 33,207 | |||||||||||||||
Funds from operations applicable to common shares and Units | $ | 12,159 | $ | 18,824 | $ | 10,148 | $ | 12,189 | $ | 10,976 | $ | 41,131 | $ | 31,723 | |||||||||||||||
Dividends to preferred unitholders | 160 | 160 | 57 | — | — | 377 | — | ||||||||||||||||||||||
Funds from operations applicable to common shares and Units - diluted | $ | 12,319 | $ | 18,984 | $ | 10,205 | $ | 12,189 | $ | 10,976 | $ | 41,508 | $ | 31,723 | |||||||||||||||
Core funds from operations applicable to common shares and Units | $ | 12,946 | $ | 12,945 | $ | 10,150 | $ | 12,237 | $ | 11,516 | $ | 36,041 | $ | 33,207 | |||||||||||||||
Dividends to preferred unitholders | 160 | 160 | 57 | — | — | 377 | — | ||||||||||||||||||||||
Core funds from operations applicable to common shares and Units - diluted | $ | 13,106 | $ | 13,105 | $ | 10,207 | $ | 12,237 | $ | 11,516 | $ | 36,418 | $ | 33,207 | |||||||||||||||
Per Share Data | |||||||||||||||||||||||||||||
Earnings (loss) per share and Unit - diluted | $ | 2.54 | $ | 0.12 | $ | (0.54 | ) | $ | (0.49 | ) | $ | 0.08 | $ | 2.11 | $ | (1.34 | ) | ||||||||||||
FFO per share and Unit - diluted | $ | 0.93 | $ | 1.45 | $ | 0.77 | $ | 0.92 | $ | 0.82 | $ | 3.15 | $ | 2.38 | |||||||||||||||
Core FFO per share and Unit - diluted | $ | 0.99 | $ | 1.00 | $ | 0.77 | $ | 0.92 | $ | 0.86 | $ | 2.76 | $ | 2.49 | |||||||||||||||
Weighted average shares and Units - diluted | 13,087 | 13,197 | 13,230 | 13,317 | 13,318 | 13,174 | 13,351 |
S-6 |
(in thousands) | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 9/30/2019 | 9/30/2018 | |||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | 31,596 | $ | 3,113 | $ | (4,698 | ) | $ | (4,106 | ) | $ | 2,653 | $ | 30,011 | $ | (10,917 | ) | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Dividends to preferred unitholders | 160 | 160 | 57 | — | — | 377 | — | ||||||||||||||||||||||
Noncontrolling interests – Operating Partnership | 3,145 | 148 | (743 | ) | (665 | ) | 112 | 2,550 | (1,888 | ) | |||||||||||||||||||
Income (loss) before noncontrolling interests – Operating Partnership | $ | 34,901 | $ | 3,421 | $ | (5,384 | ) | $ | (4,771 | ) | $ | 2,765 | $ | 32,938 | $ | (12,805 | ) | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Interest expense | 7,448 | 7,343 | 7,558 | 7,336 | 7,828 | 22,349 | 23,857 | ||||||||||||||||||||||
Loss on extinguishment of debt | 1,087 | 407 | 2 | 4 | 541 | 1,496 | 673 | ||||||||||||||||||||||
Depreciation/amortization related to real estate investments | 18,299 | 17,963 | 17,433 | 18,133 | 18,491 | 53,695 | 56,699 | ||||||||||||||||||||||
Impairment of real estate investments | — | — | — | 1,221 | — | — | 17,809 | ||||||||||||||||||||||
Interest income | (402 | ) | (402 | ) | (407 | ) | (465 | ) | (366 | ) | (1,211 | ) | (1,468 | ) | |||||||||||||||
(Gain) loss on sale of real estate and other investments | (39,105 | ) | (615 | ) | (54 | ) | (611 | ) | (8,499 | ) | (39,774 | ) | (24,633 | ) | |||||||||||||||
Gain on litigation settlement | (300 | ) | (6,286 | ) | — | — | — | (6,586 | ) | — | |||||||||||||||||||
Adjusted EBITDA | $ | 21,928 | $ | 21,831 | $ | 19,148 | $ | 20,847 | $ | 20,760 | $ | 62,907 | $ | 60,132 |
S-7 |
Future Maturities of Debt | ||||||||||||||||||||||
Secured Fixed Debt | Unsecured Fixed Debt(1) | Unsecured Variable Debt | Total Debt | % of Total Debt | Weighted Average Interest Rate(2) | |||||||||||||||||
2019 (remainder) | — | — | — | — | — | — | ||||||||||||||||
2020 | $ | 17,550 | $ | — | $ | 293 | $ | 17,843 | 2.4 | % | 5.31 | % | ||||||||||
2021 | 51,876 | — | — | 51,876 | 7.0 | % | 5.42 | % | ||||||||||||||
2022 | 38,093 | 50,000 | 52,850 | 140,943 | 19.2 | % | 3.84 | % | ||||||||||||||
2023 | 48,520 | — | — | 48,520 | 6.6 | % | 4.02 | % | ||||||||||||||
Thereafter | 206,692 | 270,000 | — | 476,692 | 64.8 | % | 3.87 | % | ||||||||||||||
Total debt | $ | 362,731 | $ | 320,000 | $ | 53,143 | $ | 735,874 | 100.0 | % | 4.02 | % |
(1) | Term loans have variable interest rates that are fixed with interest rate swaps and $50.0 million of our variable interest, primary line of credit is fixed with an interest rate swap. |
(2) | Weighted average interest rate of debt that matures during the year, including the effect of interest rate swaps on the term loans and line of credit. |
9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | ||||||||||||||||
Debt Balances Outstanding(1) | ||||||||||||||||||||
Secured fixed rate | $ | 362,731 | $ | 371,951 | $ | 432,588 | $ | 445,974 | $ | 464,964 | ||||||||||
Unsecured fixed rate line of credit(2) | 50,000 | 50,000 | — | — | — | |||||||||||||||
Secured line of credit(3) | — | 15,000 | 15,000 | — | — | |||||||||||||||
Unsecured variable rate line of credit | 53,143 | 112,939 | 103,677 | 57,500 | 71,000 | |||||||||||||||
Unsecured term loans | 145,000 | 145,000 | 145,000 | 145,000 | 145,000 | |||||||||||||||
Unsecured senior notes | 125,000 | — | — | — | — | |||||||||||||||
Debt total | $ | 735,874 | $ | 694,890 | $ | 696,265 | $ | 648,474 | $ | 680,964 | ||||||||||
Mortgage debt weighted average interest rate | 4.15 | % | 4.37 | % | 4.54 | % | 4.58 | % | 4.65 | % | ||||||||||
Lines of credit rate (rate with swap) | 3.73 | % | 3.91 | % | 3.89 | % | 3.72 | % | 3.67 | % | ||||||||||
Term loan rate (rate with swap) | 4.14 | % | 4.14 | % | 3.99 | % | 4.01 | % | 3.97 | % | ||||||||||
Senior notes rate | 3.78 | % | — | — | — | — |
(1) | Includes mortgages on properties held for sale. |
(2) | A portion of our primary line of credit is fixed through an interest rate swap. |
(3) | Our revolving line of credit consists primarily of unsecured borrowings. A portion of the line was secured in connection with our acquisition of SouthFork Townhomes, under an agreement which allowed us to offer the seller tax protection upon purchase. |
S-8 |
Three Months Ended | ||||||||||||||||||||
9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | ||||||||||||||||
Equity Capitalization | ||||||||||||||||||||
Common shares outstanding | 11,625 | 11,656 | 11,768 | 11,942 | 11,961 | |||||||||||||||
Operating partnership units outstanding | 1,223 | 1,224 | 1,365 | 1,368 | 1,379 | |||||||||||||||
Total common shares and units outstanding | 12,848 | 12,880 | 13,133 | 13,310 | 13,340 | |||||||||||||||
Market price per common share (closing price at end of period) | $ | 74.67 | $ | 58.67 | $ | 59.91 | $ | 49.07 | $ | 59.80 | ||||||||||
Equity capitalization-common shares and units | $ | 959,360 | $ | 755,670 | $ | 786,798 | $ | 653,122 | $ | 797,732 | ||||||||||
Recorded book value of preferred shares | $ | 99,456 | $ | 99,456 | $ | 99,456 | $ | 99,456 | $ | 99,456 | ||||||||||
Total equity capitalization | $ | 1,058,816 | $ | 855,126 | $ | 886,254 | $ | 752,578 | $ | 897,188 | ||||||||||
Series D Preferred Units | $ | 16,560 | $ | 16,560 | 16,560 | — | — | |||||||||||||
Debt Capitalization | ||||||||||||||||||||
Total debt | $ | 735,874 | $ | 694,889 | $ | 696,265 | $ | 648,474 | $ | 680,964 | ||||||||||
Total capitalization | $ | 1,811,250 | $ | 1,566,575 | $ | 1,599,079 | $ | 1,401,052 | $ | 1,578,152 | ||||||||||
Total debt to total capitalization(1) | 40.6% | 44.4% | 43.5% | 46.3% | 43.2% |
(1) | Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet, plus the market value of common shares, operating partnership units, Series C preferred shares, and Series D preferred units outstanding at the end of the period. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 9/30/2019 | 9/30/2018 | |||||||||||||||||||||||
Debt service coverage ratio(1) | 2.26 | x | 2.24 | x | 1.86 | x | 2.07 | x | 1.96 | x | 2.11 | x | 1.69 | x | |||||||||||||||
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization | 1.90 | x | 1.88 | x | 1.58 | x | 1.77 | x | 1.69 | x | 1.78 | x | 1.59 | x | |||||||||||||||
Distribution Data | |||||||||||||||||||||||||||||
Common shares and Units outstanding at record date | 12,848 | 12,914 | 13,135 | 13,276 | 13,340 | 12,848 | 13,340 | ||||||||||||||||||||||
Total common distribution declared | $ | 8,994 | $ | 9,039 | $ | 9,195 | $ | 9,293 | $ | 9,339 | $ | 27,228 | $ | 28,079 | |||||||||||||||
Common distribution per share and Unit | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 2.10 | $ | 2.10 | |||||||||||||||
Payout ratio (FFO per share and Unit basis)(2) | 75.3 | % | 48.3 | % | 90.9 | % | 76.1 | % | 85.4 | % | 66.7 | % | 88.2 | % | |||||||||||||||
Payout ratio (Core FFO per share and Unit basis)(3) | 70.7 | % | 70.0 | % | 90.9 | % | 76.1 | % | 81.4 | % | 76.1 | % | 84.3 | % |
(1) | Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization |
(2) | Payout ratio (FFO per share and unit basis) is the ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual FFO per share and unit. This term is a non-GAAP measure and should not be considered a substitute for operating results determined in accordance with GAAP. |
(3) | Payout ratio (Core FFO per share and unit basis) is the ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual Core FFO per share and unit. This term is a non-GAAP measure and should not be considered a substitute for operating results determined in accordance with GAAP. |
S-9 |
Apartment Homes Included | Revenues | Expenses | NOI | |||||||||||||||||||||||||||||||||
Regions | CY19Q3 | CY18Q3 | % Change | CY19Q3 | CY18Q3 | % Change | CY19Q3 | CY18Q3 | % Change | |||||||||||||||||||||||||||
Minneapolis, MN | 1,796 | $ | 7,774 | $ | 7,414 | 4.9 | % | $ | 3,360 | $ | 3,063 | 9.7 | % | $ | 4,414 | $ | 4,351 | 1.4 | % | |||||||||||||||||
Rochester, MN | 1,711 | 6,446 | 6,031 | 6.9 | % | 2,386 | 2,477 | (3.7 | )% | 4,060 | 3,554 | 14.2 | % | |||||||||||||||||||||||
Omaha, NE | 1,370 | 3,738 | 3,697 | 1.1 | % | 1,740 | 1,686 | 3.2 | % | 1,998 | 2,011 | (0.6 | )% | |||||||||||||||||||||||
Grand Forks, ND | 1,555 | 4,287 | 4,149 | 3.3 | % | 1,882 | 1,890 | (0.4 | )% | 2,405 | 2,259 | 6.5 | % | |||||||||||||||||||||||
Bismarck, ND | 1,259 | 3,654 | 3,572 | 2.3 | % | 1,503 | 1,471 | 2.2 | % | 2,151 | 2,101 | 2.4 | % | |||||||||||||||||||||||
St. Cloud, MN | 1,190 | 3,517 | 3,389 | 3.8 | % | 1,557 | 1,570 | (0.8 | )% | 1,960 | 1,819 | 7.8 | % | |||||||||||||||||||||||
Sioux Falls, SD | 969 | 2,532 | 2,505 | 1.1 | % | 1,228 | 1,227 | 0.1 | % | 1,304 | 1,278 | 2.0 | % | |||||||||||||||||||||||
Billings, MT | 749 | 2,144 | 2,040 | 5.1 | % | 882 | 880 | 0.2 | % | 1,262 | 1,160 | 8.8 | % | |||||||||||||||||||||||
Minot, ND | 712 | 2,117 | 2,051 | 3.2 | % | 1,035 | 960 | 7.8 | % | 1,082 | 1,091 | (0.8 | )% | |||||||||||||||||||||||
Rapid City, SD | 474 | 1,424 | 1,350 | 5.5 | % | 574 | 571 | 0.5 | % | 850 | 779 | 9.1 | % | |||||||||||||||||||||||
Same-Store Total | 11,785 | $ | 37,633 | $ | 36,198 | 4.0 | % | $ | 16,147 | $ | 15,795 | 2.2 | % | $ | 21,486 | $ | 20,403 | 5.3 | % |
% of NOI Contribution | Weighted Average Occupancy (1) | Weighted Average Monthly Rental Rate (2) | Weighted Average Monthly Revenue per Occupied Home (3) | |||||||||||||||||||||||||||||||
Regions | CY19Q3 | CY18Q3 | Growth | CY19Q3 | CY18Q3 | % Change | CY19Q3 | CY18Q3 | % Change | |||||||||||||||||||||||||
Minneapolis, MN | 20.5 | % | 90.8 | % | 90.3 | % | 0.5 | % | $ | 1,478 | $ | 1,428 | 3.5 | % | $ | 1,590 | $ | 1,523 | 4.3 | % | ||||||||||||||
Rochester, MN | 18.9 | % | 94.6 | % | 91.3 | % | 3.3 | % | 1,257 | 1,229 | 2.3 | % | 1,327 | 1,287 | 3.6 | % | ||||||||||||||||||
Omaha, NE | 9.3 | % | 93.0 | % | 93.4 | % | (0.4 | )% | 900 | 879 | 2.4 | % | 977 | 963 | 1.5 | % | ||||||||||||||||||
Grand Forks, ND | 11.2 | % | 94.1 | % | 91.3 | % | 2.8 | % | 908 | 922 | (1.5 | )% | 977 | 975 | 0.5 | % | ||||||||||||||||||
Bismarck, ND | 10.0 | % | 93.9 | % | 94.1 | % | (0.2 | )% | 957 | 961 | (0.4 | )% | 1,031 | 1,005 | 2.5 | % | ||||||||||||||||||
St. Cloud, MN | 9.1 | % | 93.8 | % | 92.4 | % | 1.4 | % | 959 | 950 | 0.9 | % | 1,050 | 1,027 | 2.4 | % | ||||||||||||||||||
Sioux Falls, SD | 6.1 | % | 92.2 | % | 92.3 | % | (0.1 | )% | 867 | 851 | 1.9 | % | 945 | 934 | 1.2 | % | ||||||||||||||||||
Billings, MT | 5.9 | % | 95.0 | % | 92.5 | % | 2.5 | % | 941 | 923 | 2.0 | % | 1,004 | 981 | 2.6 | % | ||||||||||||||||||
Minot, ND | 5.0 | % | 93.9 | % | 91.6 | % | 2.3 | % | 999 | 1,014 | (1.5 | )% | 1,055 | 1,048 | 0.9 | % | ||||||||||||||||||
Rapid City, SD | 4.0 | % | 96.1 | % | 93.5 | % | 2.6 | % | 963 | 939 | 2.6 | % | 1,042 | 1,016 | 2.9 | % | ||||||||||||||||||
Same-Store Total | 100.0 | % | 93.3 | % | 91.9 | % | 1.4 | % | $ | 1,062 | $ | 1,046 | 1.5 | % | $ | 1,141 | $ | 1,114 | 2.6 | % |
(1) | Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rent. |
(2) | Weighted average monthly rental rate is scheduled rental revenue divided by the total number of apartment homes. Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes. |
(3) | Weighted average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment units for the period. |
S-10 |
Apartment Homes Included | Revenues | Expenses | NOI | |||||||||||||||||||||||||||||||||
Regions | CY19Q3 | CY19Q2 | % Change | CY19Q3 | CY19Q2 | % Change | CY19Q3 | CY19Q2 | % Change | |||||||||||||||||||||||||||
Minneapolis, MN | 1,796 | $ | 7,774 | $ | 7,836 | (0.8 | )% | $ | 3,360 | $ | 3,172 | 5.9 | % | $ | 4,414 | $ | 4,664 | (5.4 | )% | |||||||||||||||||
Rochester, MN | 1,711 | 6,446 | 6,291 | 2.5 | % | 2,386 | 2,450 | (2.6 | )% | 4,060 | 3,841 | 5.7 | % | |||||||||||||||||||||||
Omaha, NE | 1,370 | 3,738 | 3,705 | 0.9 | % | 1,740 | 1,635 | 6.4 | % | 1,998 | 2,070 | (3.5 | )% | |||||||||||||||||||||||
Grand Forks, ND | 1,555 | 4,287 | 4,218 | 1.6 | % | 1,882 | 1,909 | (1.4 | )% | 2,405 | 2,309 | 4.2 | % | |||||||||||||||||||||||
Bismarck, ND | 1,259 | 3,654 | 3,595 | 1.6 | % | 1,503 | 1,491 | 0.8 | % | 2,151 | 2,104 | 2.2 | % | |||||||||||||||||||||||
St. Cloud, MN | 1,190 | 3,517 | 3,585 | (1.9 | )% | 1,557 | 1,525 | 2.1 | % | 1,960 | 2,060 | (4.9 | )% | |||||||||||||||||||||||
Sioux Falls, SD | 969 | 2,532 | 2,544 | (0.5 | )% | 1,228 | 1,222 | 0.5 | % | 1,304 | 1,322 | (1.4 | )% | |||||||||||||||||||||||
Billings, MT | 749 | 2,144 | 2,125 | 0.9 | % | 882 | 752 | 17.3 | % | 1,262 | 1,373 | (8.1 | )% | |||||||||||||||||||||||
Minot, ND | 712 | 2,117 | 2,145 | (1.3 | )% | 1,035 | 1,036 | (0.1 | )% | 1,082 | 1,109 | (2.4 | )% | |||||||||||||||||||||||
Rapid City, SD | 474 | 1,424 | 1,371 | 3.9 | % | 574 | 557 | 3.1 | % | 850 | 814 | 4.4 | % | |||||||||||||||||||||||
Same-Store Total | 11,785 | $ | 37,633 | $ | 37,415 | 0.6 | % | $ | 16,147 | $ | 15,749 | 2.5 | % | $ | 21,486 | $ | 21,666 | (0.8 | )% |
% of NOI Contribution | Weighted Average Occupancy | Weighted Average Monthly Rental Rate | Weighted Average Monthly Revenue per Occupied Home | |||||||||||||||||||||||||||||||
Regions | CY19Q3 | CY19Q2 | Growth | CY19Q3 | CY19Q2 | % Change | CY19Q3 | CY19Q2 | % Change | |||||||||||||||||||||||||
Minneapolis, MN | 20.5 | % | 90.8 | % | 93.4 | % | (2.6 | )% | $ | 1,478 | $ | 1,439 | 2.7 | % | $ | 1,590 | $ | 1,557 | 1.8 | % | ||||||||||||||
Rochester, MN | 18.9 | % | 94.6 | % | 95.4 | % | (0.8 | )% | 1,257 | 1,233 | 1.9 | % | 1,327 | 1,285 | 3.3 | % | ||||||||||||||||||
Omaha, NE | 9.3 | % | 93.0 | % | 93.3 | % | (0.3 | )% | 900 | 884 | 1.8 | % | 977 | 966 | 1.2 | % | ||||||||||||||||||
Grand Forks, ND | 11.2 | % | 94.1 | % | 93.5 | % | 0.6 | % | 908 | 912 | (0.4 | )% | 977 | 967 | 1.0 | % | ||||||||||||||||||
Bismarck, ND | 10.0 | % | 93.9 | % | 92.8 | % | 1.1 | % | 957 | 953 | 0.4 | % | 1,031 | 1,026 | 0.5 | % | ||||||||||||||||||
St. Cloud, MN | 9.1 | % | 93.8 | % | 95.4 | % | (1.6 | )% | 959 | 951 | 0.8 | % | 1,050 | 1,053 | (0.3 | )% | ||||||||||||||||||
Sioux Falls, SD | 6.1 | % | 92.2 | % | 94.4 | % | (2.2 | )% | 867 | 858 | 1.0 | % | 945 | 927 | 1.7 | % | ||||||||||||||||||
Billings, MT | 5.9 | % | 95.0 | % | 95.6 | % | (0.6 | )% | 941 | 924 | 1.8 | % | 1,004 | 989 | 1.5 | % | ||||||||||||||||||
Minot, ND | 5.0 | % | 93.9 | % | 95.0 | % | (1.1 | )% | 999 | 1,000 | (0.1 | )% | 1,055 | 1,057 | (0.2 | )% | ||||||||||||||||||
Rapid City, SD | 4.0 | % | 96.1 | % | 95.0 | % | 1.1 | % | 963 | 945 | 1.9 | % | 1,042 | 1,015 | 2.8 | % | ||||||||||||||||||
Same-Store Total | 100.0 | % | 93.3 | % | 94.2 | % | (0.9 | )% | $ | 1,062 | $ | 1,047 | 1.4 | % | $ | 1,141 | $ | 1,123 | 1.5 | % |
S-11 |
Apartment Homes Included | Revenues | Expenses | NOI | |||||||||||||||||||||||||||||||||
Regions | CY19 | CY18 | % Change | CY19 | CY18 | % Change | CY19 | CY18 | % Change | |||||||||||||||||||||||||||
Minneapolis, MN | 1,796 | $ | 23,298 | $ | 21,884 | 6.5 | % | $ | 9,680 | $ | 8,983 | 7.8 | % | $ | 13,618 | $ | 12,901 | 5.6 | % | |||||||||||||||||
Rochester, MN | 1,711 | 18,962 | 18,155 | 4.4 | % | 7,290 | 7,318 | (0.4 | )% | 11,672 | 10,837 | 7.7 | % | |||||||||||||||||||||||
Omaha, NE | 1,370 | 11,197 | 11,029 | 1.5 | % | 5,149 | 4,918 | 4.7 | % | 6,048 | 6,111 | (1.0 | )% | |||||||||||||||||||||||
Grand Forks, ND | 1,555 | 12,646 | 12,566 | 0.6 | % | 5,957 | 5,843 | 2.0 | % | 6,689 | 6,723 | (0.5 | )% | |||||||||||||||||||||||
Bismarck, ND | 1,259 | 10,852 | 10,662 | 1.8 | % | 4,710 | 4,635 | 1.6 | % | 6,142 | 6,027 | 1.9 | % | |||||||||||||||||||||||
St. Cloud, MN | 1,190 | 10,577 | 10,090 | 4.8 | % | 4,890 | 4,836 | 1.1 | % | 5,687 | 5,254 | 8.2 | % | |||||||||||||||||||||||
Sioux Falls, SD | 969 | 7,605 | 7,417 | 2.5 | % | 3,643 | 3,551 | 2.6 | % | 3,962 | 3,866 | 2.5 | % | |||||||||||||||||||||||
Billings, MT | 749 | 6,373 | 6,010 | 6.0 | % | 2,457 | 2,241 | 9.6 | % | 3,916 | 3,769 | 3.9 | % | |||||||||||||||||||||||
Minot, ND | 712 | 6,380 | 6,212 | 2.7 | % | 3,078 | 3,178 | (3.1 | )% | 3,302 | 3,034 | 8.8 | % | |||||||||||||||||||||||
Rapid City, SD | 474 | 4,162 | 4,006 | 3.9 | % | 1,707 | 1,724 | (1.0 | )% | 2,455 | 2,282 | 7.6 | % | |||||||||||||||||||||||
Same-Store Total | 11,785 | $ | 112,052 | $ | 108,031 | 3.7 | % | $ | 48,561 | $ | 47,227 | 2.8 | % | $ | 63,491 | $ | 60,804 | 4.4 | % |
% of NOI Contribution | Weighted Average Occupancy | Weighted Average Monthly Rental Rate | Weighted Average Monthly Revenue per Occupied Home | |||||||||||||||||||||||||||||||
Regions | CY19 | CY18 | Growth | CY19 | CY18 | % Change | CY19 | CY18 | % Change | |||||||||||||||||||||||||
Minneapolis, MN | 21.4 | % | 93.0 | % | 91.5 | % | 1.5 | % | $ | 1,442 | $ | 1,396 | 3.3 | % | $ | 1,550 | $ | 1,480 | 5.0 | % | ||||||||||||||
Rochester, MN | 18.4 | % | 95.5 | % | 93.5 | % | 2.0 | % | 1,232 | 1,219 | 1.1 | % | 1,289 | 1,261 | 2.4 | % | ||||||||||||||||||
Omaha, NE | 9.5 | % | 93.9 | % | 94.8 | % | (0.9 | )% | 886 | 868 | 2.1 | % | 968 | 944 | 2.4 | % | ||||||||||||||||||
Grand Forks, ND | 10.5 | % | 93.8 | % | 93.4 | % | 0.4 | % | 908 | 915 | (0.8 | )% | 963 | 961 | 0.2 | % | ||||||||||||||||||
Bismarck, ND | 9.7 | % | 94.3 | % | 94.0 | % | 0.3 | % | 951 | 958 | (0.7 | )% | 1,015 | 1,001 | 1.5 | % | ||||||||||||||||||
St. Cloud, MN | 9.0 | % | 95.0 | % | 94.2 | % | 0.8 | % | 950 | 924 | 2.8 | % | 1,040 | 1,000 | 4.0 | % | ||||||||||||||||||
Sioux Falls, SD | 6.2 | % | 93.9 | % | 94.0 | % | (0.1 | )% | 858 | 833 | 3.0 | % | 928 | 904 | 2.6 | % | ||||||||||||||||||
Billings, MT | 6.2 | % | 95.7 | % | 92.2 | % | 3.5 | % | 923 | 913 | 1.1 | % | 988 | 967 | 2.5 | % | ||||||||||||||||||
Minot, ND | 5.2 | % | 94.9 | % | 94.4 | % | 0.5 | % | 997 | 1,003 | (0.6 | )% | 1,049 | 1,027 | 2.2 | % | ||||||||||||||||||
Rapid City, SD | 3.9 | % | 96.0 | % | 95.3 | % | 0.7 | % | 946 | 919 | 2.9 | % | 1,016 | 986 | 3.2 | % | ||||||||||||||||||
Same-Store Total | 100.0 | % | 94.3 | % | 93.4 | % | 0.9 | % | $ | 1,046 | $ | 1,031 | 1.5 | % | $ | 1,120 | $ | 1,091 | 2.8 | % |
S-12 |
Three Months Ended | ||||||||||||||||||||
9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | ||||||||||||||||
Number of Apartment Homes | ||||||||||||||||||||
Same-Store | 11,785 | 12,848 | 12,848 | 12,847 | 12,847 | |||||||||||||||
Non-Same-Store | 1,551 | 1,127 | 1,127 | 855 | 855 | |||||||||||||||
All Communities | 13,336 | 13,975 | 13,975 | 13,702 | 13,702 | |||||||||||||||
Average Scheduled Rent(2) per Apartment Home | ||||||||||||||||||||
Same-Store | $ | 1,062 | $ | 1,028 | $ | 1,013 | $ | 1,018 | $ | 1,027 | ||||||||||
Non-Same-Store | 1,742 | 1,692 | 1,772 | 1,797 | 1,796 | |||||||||||||||
All Communities | $ | 1,123 | $ | 1,081 | $ | 1,064 | $ | 1,066 | $ | 1,075 | ||||||||||
Average Revenue per Occupied Apartment Home(3) | ||||||||||||||||||||
Same-Store | $ | 1,141 | $ | 1,101 | $ | 1,075 | $ | 1,082 | $ | 1,092 | ||||||||||
Non-Same-Store | 1,887 | 1,848 | 1,943 | 1,939 | 1,956 | |||||||||||||||
All Communities | $ | 1,210 | $ | 1,161 | $ | 1,134 | $ | 1,136 | $ | 1,146 | ||||||||||
Weighted Average Occupancy(4) | ||||||||||||||||||||
Same-Store | 93.3 | % | 94.3 | % | 95.6 | % | 94.4 | % | 91.9 | % | ||||||||||
Non-Same-Store | 94.2 | % | 94.8 | % | 94.9 | % | 92.7 | % | 93.4 | % | ||||||||||
All Communities | 93.4 | % | 94.4 | % | 95.5 | % | 94.2 | % | 92.2 | % | ||||||||||
Operating Expenses as a % of Scheduled Rent | ||||||||||||||||||||
Same-Store | 43.0 | % | 42.8 | % | 45.6 | % | 42.4 | % | 42.9 | % | ||||||||||
Non-Same-Store | 38.1 | % | 37.4 | % | 37.6 | % | 30.5 | % | 36.8 | % | ||||||||||
All Communities | 42.3 | % | 42.2 | % | 44.7 | % | 41.1 | % | 42.3 | % | ||||||||||
Capital Expenditures | ||||||||||||||||||||
Total Capital Expenditures per Apartment Home – Same-Store | $ | 178 | $ | 192 | $ | 80 | $ | 254 | $ | 274 |
(1) | Previously reported amounts are not revised for changes in the composition of the same-store properties pool. |
(2) | Scheduled rent represents the value of all apartment homes, with occupied apartment homes valued at contractual rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes. Average scheduled rent is scheduled rent divided by the total number of apartment homes. |
(3) | Total revenues divided by the weighted average occupied apartment homes for the period. |
(4) | Weighted average occupancy is the percentage resulting from dividing actual rental revenue by scheduled rent. We believe that weighted average occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Weighted average occupancy may not completely reflect short-term trends in physical occupancy and our calculation of weighted average occupancy may not be comparable to that disclosed by other REITs. |
S-13 |
Three Months Ended | ||||||||
9/30/2019 | 9/30/2018 | |||||||
Total Same-Store Apartment Homes | 11,785 | 11,785 | ||||||
Turnover | $ | 1,034 | $ | 1,331 | ||||
Furniture & Equipment | 38 | 79 | ||||||
Building – Interior | 28 | 130 | ||||||
Building – Exterior | 553 | 1,055 | ||||||
Landscaping & Grounds | 446 | 525 | ||||||
Capital Expenditures | $ | 2,099 | $ | 3,120 | ||||
Capital Expenditures per Apartment Home | $ | 178 | $ | 265 |
Nine Months Ended | ||||||||
9/30/2019 | 9/30/2018 | |||||||
Total Same-Store Apartment Homes | 11,785 | 11,785 | ||||||
Turnover | $ | 2,641 | $ | 3,078 | ||||
Furniture & Equipment | 205 | 207 | ||||||
Building - Interior | 182 | 333 | ||||||
Building - Exterior | 1,196 | 2,324 | ||||||
Landscaping & Grounds | 1,001 | 856 | ||||||
Capital Expenditures | $ | 5,225 | $ | 6,798 | ||||
Capital Expenditures per Apartment Home | $ | 443 | $ | 577 |
S-14 |
Range for 12 Months Ended December 31, 2019 | |||||||
Nine Months Ended September 30, 2019 | Full Year Revised Guidance | Prior Guidance | Change from Prior Midpoint | ||||
Actual Results | Amount | Amount | Amount | ||||
Net income (loss) available to common shareholders | $24,895 | $32,100 to $33,400 | $(15,100) to $(13,800) | $47,127 | |||
Net income (loss) per share - diluted(1) | $2.11 | $2.72 to $2.82 | $(1.27) to $(1.17) | $3.99 | |||
Same-store growth | |||||||
Revenue | 3.72% | 3.25% to 3.75% | 3.00% to 4.00% | — | |||
Expenses | 2.82% | 3.00% to 3.50% | 2.75% to 3.75% | — | |||
NOI | 4.42% | 3.50% to 4.00% | 3.00% to 4.00% | 0.25% | |||
Core FFO | $36,041 | $48,400 to $49,700 | $46,800 to $48,100 | $1,560 | |||
Core FFO per share and Unit - diluted | $2.76 | $3.68 to $3.78 | $3.62 to $3.72 | $0.06 | |||
Weighted average shares and Units | 13,174 | 13,144 | 12,933 | 211 |
(1) | Earnings per share excludes net income attributable to noncontrolling interests. |
Revised Midpoint of Outlook for | |||||||||||||||
Nine Months Ended | 12 Months Ended | ||||||||||||||
September 30, 2019 | December 31, 2019 | ||||||||||||||
Amount | Per Share - Diluted | Amount | Per Share - Diluted | ||||||||||||
Net income (loss) available to common shareholders | $ | 24,895 | $ | 2.11 | $ | 32,715 | $ | 2.77 | |||||||
Noncontrolling interests - Operating Partnership | 2,550 | 3,749 | |||||||||||||
Depreciation and amortization | 55,299 | 74,522 | |||||||||||||
Less depreciation-non real estate | (235 | ) | (296 | ) | |||||||||||
Less depreciation-partially owned entities | (1,604 | ) | (2,053 | ) | |||||||||||
Gain on sale of real estate | (39,774 | ) | (54,775 | ) | |||||||||||
FFO applicable to common shares and Units | $ | 41,131 | $ | 3.15 | $ | 53,862 | $ | 4.10 | |||||||
Adjustments to Core FFO: | |||||||||||||||
Loss on extinguishment of debt | 1,496 | 1,749 | |||||||||||||
Gain on litigation settlement | (6,586 | ) | (6,586 | ) | |||||||||||
Core FFO applicable to common shares and Units | $ | 36,041 | $ | 2.76 | $ | 49,025 | $ | 3.73 |
S-15 |