Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Per Share | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Income (Loss) - diluted | $ | (0.44 | ) | $ | 0.11 | $ | (1.13 | ) | $ | (0.43 | ) | |||||
FFO - diluted | $ | 0.93 | $ | 1.45 | $ | 1.58 | $ | 2.22 | ||||||||
Core FFO - diluted | $ | 0.91 | $ | 1.00 | $ | 1.81 | $ | 1.77 |
Year-Over-Year Comparison | Sequential Comparison | YTD Comparison | |||||||
Same-Store Results | Q2 2020 vs. Q2 2019 | Q2 2020 vs. Q1 2020 | 2020 vs. 2019 | ||||||
Revenues | 1.4 | % | (1.2 | )% | 2.6 | % | |||
Expenses | 1.8 | % | (7.3 | )% | 2.9 | % | |||
NOI | 1.1 | % | 3.4 | % | 2.4 | % |
Three months ended | |||||||||
Same-Store Results | June 30, 2020 | March 31, 2020 | June 30, 2019 | ||||||
Weighted Average Occupancy | 94.6 | % | 95.4 | % | 94.3 | % |
• | Our Net Loss was $(0.44) per diluted share for the second quarter of 2020, compared to Net Income of $0.11 per diluted share for the same period of 2019; |
• | Core FFO increased 2.3% to $1.81 per diluted share for the six months ended June 30, 2020, compared to $1.77 per diluted share for the same period of 2019; |
• | Core FFO increased 1.1% to $0.91 per diluted share for the three months ended June 30, 2020, compared to $0.90 for the three months ended March 31, 2020; |
• | Total collections were 99.1% for the second quarter of 2020, compared to 99.6% for the same period of 2019; |
• | Same-store controllable expenses (which exclude taxes and insurance) decreased 4.3% for the second quarter of 2020 as compared to the same period of 2019, resulting in NOI growth of 1.1% for the second quarter of 2020 compared to the same period of 2019; |
• | Same-store NOI increased 3.4% for the three months ended June 30, 2020, compared to the three months ended March 31, 2020; |
• | We continued to strengthen our balance sheet by issuing approximately 624,000 common shares under our 2019 ATM Program for net proceeds of $44.8 million; |
• | We announced that we will include Nashville as one of our target markets; and |
• | We were recognized as a Minnesota Top Workplace for 2020 by the Minneapolis Star Tribune, which is based on several factors, including employee engagement, company leadership, pay, benefits, and workplace flexibility. |
1 |
• | Total collections for same-store communities for the month ended July 31, 2020 were 99.0%. |
• | We entered into eight deferrals agreements in July, representing 0.1% of revenue at all communities. As of July 31, 2020, a total of approximately $40,000 remained outstanding under resident repayment plans. |
• | Physical occupancy for same-store communities as of July 31, 2020 was 95.2%, compared to 93.8% as of July 31, 2019 and 96.1% as of March 31, 2020. |
• | reductions in economic activity and rising unemployment that potentially could impact our residents’ ability to pay rent on a timely basis or their desire to seek lease deferment payment plans or rent reductions, which in turn could result in increases in our uncollectible receivables and reductions in rental income and reduce our NOI and cash flow; |
• | the potential financial impact of the pandemic on the credit market and our future compliance with financial covenants contained in our credit facility and other debt agreements; |
• | weaker economic conditions that could cause us to recognize impairment in the value of our tangible or intangible assets; and |
• | rising costs related to our COVID-19 response that could cause us to record loss contingencies and increased expenses. |
2 |
Live webcast and replay: http://ir.iretapartments.com | ||||
Live Conference Call | Conference Call Replay | |||
Tuesday, August 4, 2020, at 10:00 AM ET | Replay available until August 18, 2020 | |||
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 | 10145476 |
3 |
Page | |
Key Financial Data | |
Non-GAAP Financial Measures and Reconciliations | |
Debt and Capital Analysis | |
Portfolio Analysis | |
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | ||||||||||||||||
2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||
High closing price | $ | 76.82 | $ | 84.68 | $ | 78.91 | $ | 74.67 | $ | 61.28 | ||||||||||
Low closing price | $ | 44.36 | $ | 52.55 | $ | 71.74 | $ | 59.22 | $ | 57.19 | ||||||||||
Average closing price | $ | 63.91 | $ | 71.62 | $ | 74.67 | $ | 66.83 | $ | 59.54 | ||||||||||
Closing price at end of quarter | $ | 70.49 | $ | 55.00 | $ | 72.50 | $ | 74.67 | $ | 58.67 | ||||||||||
Common share distributions – annualized | $ | 2.80 | $ | 2.80 | $ | 2.80 | $ | 2.80 | $ | 2.80 | ||||||||||
Closing dividend yield – annualized | 4.0 | % | 5.1 | % | 3.9 | % | 3.8 | % | 4.8 | % | ||||||||||
Closing common shares outstanding (thousands) | 12,827 | 12,164 | 12,099 | 11,625 | 11,656 | |||||||||||||||
Closing limited partnership units outstanding (thousands) | 1,022 | 1,044 | 1,058 | 1,223 | 1,224 | |||||||||||||||
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands) | $ | 976,216 | $ | 726,440 | $ | 953,883 | $ | 959,360 | $ | 755,670 |
S-1 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | 6/30/2020 | 6/30/2019 | |||||||||||||||||||||||
REVENUE | $ | 43,910 | $ | 44,406 | $ | 45,777 | $ | 47,436 | $ | 46,934 | $ | 88,316 | $ | 92,542 | |||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||
Property operating expenses, excluding real estate taxes | 12,360 | 13,468 | 14,018 | 14,485 | 13,942 | 25,828 | 28,746 | ||||||||||||||||||||||
Real estate taxes | 5,410 | 5,465 | 4,835 | 5,425 | 5,574 | 10,875 | 10,806 | ||||||||||||||||||||||
Property management expense | 1,345 | 1,554 | 1,634 | 1,553 | 1,445 | 2,899 | 2,999 | ||||||||||||||||||||||
Casualty loss | 913 | 327 | 205 | 178 | 92 | 1,240 | 733 | ||||||||||||||||||||||
Depreciation/amortization | 18,156 | 18,160 | 18,972 | 18,751 | 18,437 | 36,316 | 36,548 | ||||||||||||||||||||||
General and administrative expenses | 3,202 | 3,428 | 3,647 | 3,448 | 3,549 | 6,630 | 7,355 | ||||||||||||||||||||||
TOTAL EXPENSES | $ | 41,386 | $ | 42,402 | $ | 43,311 | $ | 43,840 | $ | 43,039 | $ | 83,788 | $ | 87,187 | |||||||||||||||
Operating income (loss) | 2,524 | 2,004 | 2,466 | 3,596 | 3,895 | 4,528 | 5,355 | ||||||||||||||||||||||
Interest expense | (6,940 | ) | (6,911 | ) | (7,357 | ) | (7,694 | ) | (7,590 | ) | (13,851 | ) | (15,486 | ) | |||||||||||||||
Loss on extinguishment of debt | (17 | ) | — | (864 | ) | (1,087 | ) | (407 | ) | (17 | ) | (409 | ) | ||||||||||||||||
Interest and other income (loss) | 538 | (2,777 | ) | 702 | 498 | 468 | (2,239 | ) | 892 | ||||||||||||||||||||
Income (loss) before gain (loss) on sale of real estate and other investments, and gain (loss) on litigation settlement | (3,895 | ) | (7,684 | ) | (5,053 | ) | (4,687 | ) | (3,634 | ) | (11,579 | ) | (9,648 | ) | |||||||||||||||
Gain (loss) on sale of real estate and other investments | (190 | ) | — | 57,850 | 39,105 | 615 | (190 | ) | 669 | ||||||||||||||||||||
Gain (loss) on litigation settlement | — | — | — | 300 | 6,286 | — | 6,286 | ||||||||||||||||||||||
Net income (loss) | $ | (4,085 | ) | $ | (7,684 | ) | $ | 52,797 | $ | 34,718 | $ | 3,267 | $ | (11,769 | ) | $ | (2,693 | ) | |||||||||||
Dividends to preferred unitholders | (160 | ) | (160 | ) | (160 | ) | (160 | ) | (160 | ) | (320 | ) | (217 | ) | |||||||||||||||
Net (income) loss attributable to noncontrolling interest – Operating Partnership | 447 | 692 | (4,202 | ) | (3,145 | ) | (148 | ) | 1,139 | 595 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities | (5 | ) | 145 | 223 | 183 | 154 | 140 | 730 | |||||||||||||||||||||
Net income (loss) attributable to controlling interests | (3,803 | ) | (7,007 | ) | 48,658 | 31,596 | 3,113 | (10,810 | ) | (1,585 | ) | ||||||||||||||||||
Dividends to preferred shareholders | (1,609 | ) | (1,705 | ) | (1,705 | ) | (1,705 | ) | (1,706 | ) | (3,314 | ) | (3,411 | ) | |||||||||||||||
Discount on redemption of preferred shares | 25 | 273 | — | — | — | 298 | — | ||||||||||||||||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ | (5,387 | ) | $ | (8,439 | ) | $ | 46,953 | $ | 29,891 | $ | 1,407 | $ | (13,826 | ) | $ | (4,996 | ) | |||||||||||
Per Share Data - Basic | |||||||||||||||||||||||||||||
Net earnings (loss) per common share – basic | $ | (0.44 | ) | $ | (0.69 | ) | $ | 3.95 | $ | 2.57 | $ | 0.11 | $ | (1.13 | ) | $ | (0.43 | ) | |||||||||||
Per Share Data - Diluted | |||||||||||||||||||||||||||||
Net earnings (loss) per common share – diluted | $ | (0.44 | ) | $ | (0.67 | ) | $ | 3.89 | $ | 2.54 | $ | 0.11 | $ | (1.13 | ) | $ | (0.43 | ) |
S-2 |
6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Real estate investments | ||||||||||||||||||||
Property owned | $ | 1,694,033 | $ | 1,687,436 | $ | 1,643,078 | $ | 1,720,352 | $ | 1,663,539 | ||||||||||
Less accumulated depreciation | (383,917 | ) | (366,307 | ) | (349,122 | ) | (370,492 | ) | (380,321 | ) | ||||||||||
1,310,116 | 1,321,129 | 1,293,956 | 1,349,860 | 1,283,218 | ||||||||||||||||
Unimproved land | — | 1,376 | 1,376 | 1,376 | 1,746 | |||||||||||||||
Mortgage loans receivable | 10,961 | 16,775 | 16,140 | 10,140 | 10,140 | |||||||||||||||
Total real estate investments | 1,321,077 | 1,339,280 | 1,311,472 | 1,361,376 | 1,295,104 | |||||||||||||||
Cash and cash equivalents | 52,714 | 26,338 | 26,579 | 8,500 | 17,406 | |||||||||||||||
Restricted cash | 2,535 | 2,344 | 19,538 | 3,339 | 4,672 | |||||||||||||||
Other assets | 16,484 | 21,124 | 34,829 | 30,589 | 30,626 | |||||||||||||||
TOTAL ASSETS | $ | 1,392,810 | $ | 1,389,086 | $ | 1,392,418 | $ | 1,403,804 | $ | 1,347,808 | ||||||||||
LIABILITIES, MEZZANINE EQUITY, AND EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 54,883 | $ | 52,337 | $ | 47,155 | $ | 40,546 | $ | 44,766 | ||||||||||
Revolving line of credit | 63,000 | 83,000 | 50,079 | 103,143 | 177,939 | |||||||||||||||
Notes payable, net of loan costs | 269,155 | 269,106 | 269,058 | 269,006 | 144,082 | |||||||||||||||
Mortgages payable, net of loan costs | 323,705 | 328,367 | 329,664 | 360,886 | 370,461 | |||||||||||||||
TOTAL LIABILITIES | $ | 710,743 | $ | 732,810 | $ | 695,956 | $ | 773,581 | $ | 737,248 | ||||||||||
SERIES D PREFERRED UNITS | $ | 16,560 | $ | 16,560 | $ | 16,560 | 16,560 | 16,560 | ||||||||||||
EQUITY | ||||||||||||||||||||
Series C Preferred Shares of Beneficial Interest | 93,579 | 96,046 | 99,456 | 99,456 | 99,456 | |||||||||||||||
Common Shares of Beneficial Interest | 958,292 | 912,653 | 917,400 | 886,598 | 888,541 | |||||||||||||||
Accumulated distributions in excess of net income | (421,515 | ) | (407,150 | ) | (390,196 | ) | (428,680 | ) | (450,433 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (18,139 | ) | (17,360 | ) | (7,607 | ) | (9,793 | ) | (7,598 | ) | ||||||||||
Total shareholders’ equity | $ | 612,217 | $ | 584,189 | $ | 619,053 | $ | 547,581 | $ | 529,966 | ||||||||||
Noncontrolling interests – Operating Partnership | 52,558 | 54,777 | 55,284 | 60,169 | 57,902 | |||||||||||||||
Noncontrolling interests – consolidated real estate entities | 732 | 750 | 5,565 | 5,913 | 6,132 | |||||||||||||||
Total equity | $ | 665,507 | $ | 639,716 | $ | 679,902 | $ | 613,663 | $ | 594,000 | ||||||||||
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY | $ | 1,392,810 | $ | 1,389,086 | $ | 1,392,418 | $ | 1,403,804 | $ | 1,347,808 |
S-3 |
(in thousands, except percentages) | ||||||||||||||||||||||||||
Three Months Ended | Sequential | Year-Over-Year | ||||||||||||||||||||||||
6/30/2020 | 3/31/2020 | 6/30/2019 | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||
Operating income (loss) | $ | 2,524 | $ | 2,004 | $ | 3,895 | $ | 520 | 25.9 | % | $ | (1,371 | ) | (35.2 | )% | |||||||||||
Adjustments: | ||||||||||||||||||||||||||
Property management expenses | 1,345 | 1,554 | 1,445 | (209 | ) | (13.4 | )% | (100 | ) | (6.9 | )% | |||||||||||||||
Casualty loss | 913 | 327 | 92 | 586 | 179.2 | % | 821 | 892.4 | % | |||||||||||||||||
Depreciation and amortization | 18,156 | 18,160 | 18,437 | (4 | ) | — | (281 | ) | (1.5 | )% | ||||||||||||||||
General and administrative expenses | 3,202 | 3,428 | 3,549 | (226 | ) | (6.6 | )% | (347 | ) | (9.8 | )% | |||||||||||||||
Net operating income | $ | 26,140 | $ | 25,473 | $ | 27,418 | $ | 667 | 2.6 | % | $ | (1,278 | ) | (4.7 | )% | |||||||||||
Revenue | ||||||||||||||||||||||||||
Same-store | $ | 39,335 | $ | 39,820 | $ | 38,794 | $ | (485 | ) | (1.2 | )% | $ | 541 | 1.4 | % | |||||||||||
Non-same-store | 4,157 | 3,511 | 1,073 | 646 | 18.4 | % | 3,084 | 287.4 | % | |||||||||||||||||
Other properties and dispositions | 418 | 1,075 | 7,067 | (657 | ) | (61.1 | )% | (6,649 | ) | (94.1 | )% | |||||||||||||||
Total | 43,910 | 44,406 | 46,934 | (496 | ) | (1.1 | )% | (3,024 | ) | (6.4 | )% | |||||||||||||||
Property operating expenses, including real estate taxes | ||||||||||||||||||||||||||
Same-store | 16,006 | 17,258 | 15,726 | (1,252 | ) | (7.3 | )% | 280 | 1.8 | % | ||||||||||||||||
Non-same-store | 1,515 | 1,320 | 477 | 195 | 14.8 | % | 1,038 | 217.6 | % | |||||||||||||||||
Other properties and dispositions | 249 | 355 | 3,313 | (106 | ) | (29.9 | )% | (3,064 | ) | (92.5 | )% | |||||||||||||||
Total | 17,770 | 18,933 | 19,516 | (1,163 | ) | (6.1 | )% | (1,746 | ) | (8.9 | )% | |||||||||||||||
Net operating income | ||||||||||||||||||||||||||
Same-store | 23,329 | 22,562 | 23,068 | 767 | 3.4 | % | 261 | 1.1 | % | |||||||||||||||||
Non-same-store | 2,642 | 2,191 | 596 | 451 | 20.6 | % | 2,046 | 343.3 | % | |||||||||||||||||
Other properties and dispositions | 169 | 720 | 3,754 | (551 | ) | (76.5 | )% | (3,585 | ) | (95.5 | )% | |||||||||||||||
Total | $ | 26,140 | $ | 25,473 | $ | 27,418 | $ | 667 | 2.6 | % | $ | (1,278 | ) | (4.7 | )% |
S-4 |
Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||
Operating income (loss) | $ | 4,528 | $ | 5,355 | $ | (827 | ) | (15.4 | )% | |||||
Adjustments: | ||||||||||||||
Property management expenses | 2,899 | 2,999 | (100 | ) | (3.3 | )% | ||||||||
Casualty loss | 1,240 | 733 | 507 | 69.2 | % | |||||||||
Depreciation and amortization | 36,316 | 36,548 | (232 | ) | (0.6 | )% | ||||||||
General and administrative expenses | 6,630 | 7,355 | (725 | ) | (9.9 | )% | ||||||||
Net operating income | $ | 51,613 | $ | 52,990 | $ | (1,377 | ) | (2.6 | )% | |||||
Revenue | ||||||||||||||
Same-store | $ | 79,155 | $ | 77,122 | $ | 2,033 | 2.6 | % | ||||||
Non-same-store | 7,668 | 1,484 | 6,184 | 416.7 | % | |||||||||
Other properties and dispositions | 1,493 | 13,936 | (12,443 | ) | (89.3 | )% | ||||||||
Total | 88,316 | 92,542 | (4,226 | ) | (4.6 | )% | ||||||||
Property operating expenses, including real estate taxes | ||||||||||||||
Same-store | 33,264 | 32,327 | 937 | 2.9 | % | |||||||||
Non-same-store | 2,835 | 647 | 2,188 | 338.2 | % | |||||||||
Other properties and dispositions | 604 | 6,578 | (5,974 | ) | (90.8 | )% | ||||||||
Total | 36,703 | 39,552 | (2,849 | ) | (7.2 | )% | ||||||||
Net operating income | ||||||||||||||
Same-store | 45,891 | 44,795 | 1,096 | 2.4 | % | |||||||||
Non-same-store | 4,833 | 837 | 3,996 | 477.4 | % | |||||||||
Other properties and dispositions | 889 | 7,358 | (6,469 | ) | (87.9 | )% | ||||||||
Total | $ | 51,613 | $ | 52,990 | $ | (1,377 | ) | (2.6 | )% |
(in thousands, except percentages) | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||
Controllable expenses | ||||||||||||||||||||||||||||||
On-site compensation(1) | $ | 4,240 | $ | 4,181 | $ | 59 | 1.4 | % | $ | 8,859 | $ | 8,292 | $ | 567 | 6.8 | % | ||||||||||||||
Repairs and maintenance | 2,558 | 2,905 | (347 | ) | (11.9 | )% | 5,019 | 5,974 | (955 | ) | (16.0 | )% | ||||||||||||||||||
Utilities | 2,262 | 2,397 | (135 | ) | (5.6 | )% | 5,293 | 5,699 | (406 | ) | (7.1 | )% | ||||||||||||||||||
Administrative and marketing | 888 | 908 | (20 | ) | (2.2 | )% | 1,783 | 1,930 | (147 | ) | (7.6 | )% | ||||||||||||||||||
Total | $ | 9,948 | $ | 10,391 | $ | (443 | ) | (4.3 | )% | $ | 20,954 | $ | 21,895 | $ | (941 | ) | (4.3 | )% | ||||||||||||
Non-controllable expenses | ||||||||||||||||||||||||||||||
Real estate taxes | $ | 4,756 | $ | 4,456 | $ | 300 | 6.7 | % | $ | 9,666 | $ | 8,740 | $ | 926 | 10.6 | % | ||||||||||||||
Insurance | 1,302 | 879 | 423 | 48.1 | % | 2,644 | 1,692 | 952 | 56.3 | % | ||||||||||||||||||||
Total | $ | 6,058 | $ | 5,335 | $ | 723 | 13.6 | % | $ | 12,310 | $ | 10,432 | $ | 1,878 | 18.0 | % | ||||||||||||||
Total | $ | 16,006 | $ | 15,726 | $ | 280 | 1.8 | % | $ | 33,264 | $ | 32,327 | $ | 937 | 2.9 | % |
(1) | On-site compensation for administration, leasing, and maintenance personnel. |
S-5 |
• | 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-6 |
(in thousands, except per share amounts) | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | 6/30/2020 | 6/30/2019 | |||||||||||||||||||||||
Funds From Operations | |||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | (5,387 | ) | $ | (8,439 | ) | $ | 46,953 | $ | 29,891 | $ | 1,407 | $ | (13,826 | ) | $ | (4,996 | ) | |||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Noncontrolling interests – Operating Partnership | (447 | ) | (692 | ) | 4,202 | 3,145 | 148 | (1,139 | ) | (595 | ) | ||||||||||||||||||
Depreciation and amortization | 18,156 | 18,160 | 18,972 | 18,751 | 18,437 | 36,316 | 36,548 | ||||||||||||||||||||||
Less depreciation – non real estate | (88 | ) | (93 | ) | (88 | ) | (71 | ) | (79 | ) | (181 | ) | (164 | ) | |||||||||||||||
Less depreciation – partially owned entities | (33 | ) | (282 | ) | (454 | ) | (452 | ) | (474 | ) | (315 | ) | (1,152 | ) | |||||||||||||||
(Gain) loss on sale of real estate | 190 | — | (57,850 | ) | (39,105 | ) | (615 | ) | 190 | (669 | ) | ||||||||||||||||||
FFO applicable to common shares and Units | $ | 12,391 | $ | 8,654 | $ | 11,735 | $ | 12,159 | $ | 18,824 | $ | 21,045 | $ | 28,972 | |||||||||||||||
Adjustments to Core FFO: | |||||||||||||||||||||||||||||
Loss on extinguishment of debt | 17 | — | 864 | 1,087 | 407 | 17 | 409 | ||||||||||||||||||||||
Gain on litigation settlement | — | — | — | (300 | ) | (6,286 | ) | — | (6,286 | ) | |||||||||||||||||||
(Gain) loss on marketable securities | (175 | ) | 3,553 | (113 | ) | — | — | 3,378 | — | ||||||||||||||||||||
Discount on redemption of preferred shares | (25 | ) | (273 | ) | — | — | — | (298 | ) | — | |||||||||||||||||||
Core FFO applicable to common shares and Units | $ | 12,208 | $ | 11,934 | $ | 12,486 | $ | 12,946 | $ | 12,945 | $ | 24,142 | $ | 23,095 | |||||||||||||||
Funds from operations applicable to common shares and Units | $ | 12,391 | $ | 8,654 | $ | 11,735 | $ | 12,159 | $ | 18,824 | $ | 21,045 | $ | 28,972 | |||||||||||||||
Dividends to preferred unitholders | 160 | 160 | 160 | 160 | 160 | 320 | 217 | ||||||||||||||||||||||
Funds from operations applicable to common shares and Units - diluted | $ | 12,551 | $ | 8,814 | $ | 11,895 | $ | 12,319 | $ | 18,984 | $ | 21,365 | $ | 29,189 | |||||||||||||||
Core funds from operations applicable to common shares and Units | $ | 12,208 | $ | 11,934 | $ | 12,486 | $ | 12,946 | $ | 12,945 | $ | 24,142 | $ | 23,095 | |||||||||||||||
Dividends to preferred unitholders | 160 | 160 | 160 | 160 | 160 | 320 | 217 | ||||||||||||||||||||||
Core funds from operations applicable to common shares and Units - diluted | $ | 12,368 | $ | 12,094 | $ | 12,646 | $ | 13,106 | $ | 13,105 | $ | 24,462 | $ | 23,312 | |||||||||||||||
Per Share Data | |||||||||||||||||||||||||||||
Earnings (loss) per share and Unit - diluted | $ | (0.44 | ) | $ | (0.67 | ) | $ | 3.89 | $ | 2.54 | $ | 0.11 | $ | (1.13 | ) | $ | (0.43 | ) | |||||||||||
FFO per share and Unit - diluted | $ | 0.93 | $ | 0.66 | $ | 0.90 | $ | 0.93 | $ | 1.45 | $ | 1.58 | $ | 2.22 | |||||||||||||||
Core FFO per share and Unit - diluted | $ | 0.91 | $ | 0.90 | $ | 0.96 | $ | 0.99 | $ | 1.00 | $ | 1.81 | $ | 1.77 | |||||||||||||||
Weighted average shares and Units - diluted | 13,558 | 13,401 | 13,188 | 13,087 | 13,197 | 13,482 | 13,220 |
S-7 |
(in thousands) | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | 6/30/2020 | 6/30/2019 | |||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | (3,803 | ) | $ | (7,007 | ) | $ | 48,658 | $ | 31,596 | $ | 3,113 | $ | (10,810 | ) | $ | (1,585 | ) | |||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Dividends to preferred unitholders | 160 | 160 | 160 | 160 | 160 | 320 | 217 | ||||||||||||||||||||||
Noncontrolling interests – Operating Partnership | (447 | ) | (692 | ) | 4,202 | 3,145 | 148 | (1,139 | ) | (595 | ) | ||||||||||||||||||
Income (loss) before noncontrolling interests – Operating Partnership | $ | (4,090 | ) | $ | (7,539 | ) | $ | 53,020 | $ | 34,901 | $ | 3,421 | $ | (11,629 | ) | $ | (1,963 | ) | |||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Interest expense | 6,926 | 6,764 | 7,112 | 7,448 | 7,343 | 13,690 | 14,901 | ||||||||||||||||||||||
Loss on extinguishment of debt | 17 | — | 864 | 1,087 | 407 | 17 | 409 | ||||||||||||||||||||||
Depreciation/amortization related to real estate investments | 18,123 | 17,878 | 18,518 | 18,299 | 17,963 | 36,001 | 35,396 | ||||||||||||||||||||||
Interest income | (331 | ) | (597 | ) | (415 | ) | (402 | ) | (402 | ) | (928 | ) | (809 | ) | |||||||||||||||
(Gain) loss on sale of real estate and other investments | 190 | — | (57,850 | ) | (39,105 | ) | (615 | ) | 190 | (669 | ) | ||||||||||||||||||
Gain on litigation settlement | — | — | — | (300 | ) | (6,286 | ) | — | (6,286 | ) | |||||||||||||||||||
(Gain) loss on marketable securities | (175 | ) | 3,553 | (113 | ) | — | — | 3,378 | — | ||||||||||||||||||||
Adjusted EBITDA | $ | 20,660 | $ | 20,059 | $ | 21,136 | $ | 21,928 | $ | 21,831 | $ | 40,719 | $ | 40,979 |
S-8 |
Future Maturities of Debt | ||||||||||||||||||||||
Secured Fixed Debt | Unsecured Fixed Debt(1) | Unsecured Variable Debt | Total Debt | % of Total Debt | Weighted Average Interest Rate(2) | |||||||||||||||||
2020 (remainder) | $ | 9,406 | $ | — | $ | — | $ | 9,406 | 1.4 | % | 4.85 | % | ||||||||||
2021 | 35,556 | — | — | 35,556 | 5.4 | % | 5.36 | % | ||||||||||||||
2022 | 33,987 | 50,000 | 13,000 | 96,987 | 14.7 | % | 3.28 | % | ||||||||||||||
2023 | 44,266 | — | — | 44,266 | 6.7 | % | 4.02 | % | ||||||||||||||
2024 | — | 70,000 | — | 70,000 | 10.7 | % | 3.62 | % | ||||||||||||||
Thereafter | 202,015 | 200,000 | — | 402,015 | 61.1 | % | 3.89 | % | ||||||||||||||
Total debt | $ | 325,230 | $ | 320,000 | $ | 13,000 | $ | 658,230 | 100.0 | % | 3.87 | % |
(1) | Term loans have variable interest rates that are fixed with interest rate swaps and $50.0 million of our variable interest, 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. |
6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | ||||||||||||||||
Debt Balances Outstanding | ||||||||||||||||||||
Secured fixed rate | $ | 325,230 | $ | 329,988 | $ | 331,376 | $ | 362,731 | $ | 371,951 | ||||||||||
Unsecured fixed rate line of credit(1) | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | |||||||||||||||
Secured line of credit(2) | — | — | — | — | 15,000 | |||||||||||||||
Unsecured variable rate line of credit | 13,000 | 33,000 | 79 | 53,143 | 112,939 | |||||||||||||||
Unsecured term loans | 145,000 | 145,000 | 145,000 | 145,000 | 145,000 | |||||||||||||||
Unsecured senior notes | 125,000 | 125,000 | 125,000 | 125,000 | — | |||||||||||||||
Debt total | $ | 658,230 | $ | 682,988 | $ | 651,455 | $ | 735,874 | $ | 694,890 | ||||||||||
Mortgage debt weighted average interest rate | 4.01 | % | 4.01 | % | 4.02 | % | 4.15 | % | 4.37 | % | ||||||||||
Lines of credit rate (rate with swap) | 2.97 | % | 3.18 | % | 3.52 | % | 3.73 | % | 3.91 | % | ||||||||||
Term loan rate (rate with swap) | 4.12 | % | 4.13 | % | 4.19 | % | 4.14 | % | 4.14 | % | ||||||||||
Senior notes rate | 3.78 | % | 3.78 | % | 3.78 | % | 3.78 | % | — |
(1) | A portion of our primary line of credit is fixed through an interest rate swap. |
(2) | 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-9 |
Three Months Ended | ||||||||||||||||||||
6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | ||||||||||||||||
Equity Capitalization | ||||||||||||||||||||
Common shares outstanding | 12,827 | 12,164 | 12,099 | 11,625 | 11,656 | |||||||||||||||
Operating partnership units outstanding | 1,022 | 1,044 | 1,058 | 1,223 | 1,224 | |||||||||||||||
Total common shares and units outstanding | 13,849 | 13,208 | 13,157 | 12,848 | 12,880 | |||||||||||||||
Market price per common share (closing price at end of period) | $ | 70.49 | $ | 55.00 | $ | 72.50 | $ | 74.67 | $ | 58.67 | ||||||||||
Equity capitalization-common shares and units | $ | 976,216 | $ | 726,440 | $ | 953,883 | $ | 959,360 | $ | 755,670 | ||||||||||
Recorded book value of preferred shares | $ | 93,579 | $ | 96,046 | $ | 99,456 | $ | 99,456 | $ | 99,456 | ||||||||||
Total equity capitalization | $ | 1,069,795 | $ | 822,486 | $ | 1,053,339 | $ | 1,058,816 | $ | 855,126 | ||||||||||
Series D Preferred Units | $ | 16,560 | $ | 16,560 | $ | 16,560 | $ | 16,560 | $ | 16,560 | ||||||||||
Debt Capitalization | ||||||||||||||||||||
Total debt | $ | 658,230 | $ | 682,988 | $ | 651,455 | $ | 735,874 | $ | 694,889 | ||||||||||
Total capitalization | $ | 1,744,585 | $ | 1,522,034 | $ | 1,721,354 | $ | 1,811,250 | $ | 1,566,575 | ||||||||||
Total debt to total capitalization(1) | 37.7 | % | 44.9 | % | 37.8 | % | 40.6 | % | 44.4 | % |
(1) | Total 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 and operating partnership units, and book value of Series C preferred shares and Series D preferred units outstanding at the end of the period. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | 6/30/2020 | 6/30/2019 | |||||||||||||||||||||||
Debt service coverage ratio(1) | 2.48 | x | 2.42 | x | 2.39 | x | 2.26 | x | 2.24 | x | 2.45 | x | 2.04 | x | |||||||||||||||
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization | 2.05 | x | 1.97 | x | 1.98 | x | 1.90 | x | 1.88 | x | 2.01 | x | 1.73 | x | |||||||||||||||
Net debt/Adjusted EBITDA(2) | 7.33 | x | 8.18 | x | 7.19 | x | 8.29 | x | 7.76 | x | 7.44 | x | 8.27 | x | |||||||||||||||
Net debt and preferred equity/Adjusted EBITDA(2) | 8.66 | x | 9.59 | x | 8.56 | x | 9.62 | x | 9.09 | x | 8.86 | x | 9.48 | x | |||||||||||||||
Distribution Data | |||||||||||||||||||||||||||||
Common shares and Units outstanding at record date | 13,849 | 13,208 | 13,157 | 12,848 | 12,914 | 13,849 | 12,914 | ||||||||||||||||||||||
Total common distribution declared | $ | 9,694 | $ | 9,245 | $ | 9,210 | $ | 8,994 | $ | 9,039 | $ | 18,939 | $ | 18,234 | |||||||||||||||
Common distribution per share and Unit | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 1.40 | $ | 1.40 | |||||||||||||||
Payout ratio (Core FFO per share and unit basis) (3) | 76.9 | % | 77.8 | % | 72.9 | % | 70.7 | % | 70.0 | % | 77.3 | % | 79.1 | % |
(1) | Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization. This term is a non-GAAP measure and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within the Non-GAAP Financial Measures and Reconciliations section. |
(2) | Net debt is the total debt balance less cash and cash equivalents and net tax deferred exchange proceeds (included within restricted cash). Adjusted EBITDA is annualized for periods less than one year. Net debt and adjusted EBITDA are non-GAAP measures and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within the Non-GAAP Financial Measures and Reconciliations section. |
(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-10 |
Three Months Ended June 30, 2020 | ||||||||
State | Number of Communities | Number of Homes | % of Total Revenue | Bad Debt(1) as % of Total Revenue | ||||
Minnesota | 32 | 5,438 | 48.7 | % | 1.1 | % | ||
Colorado | 3 | 992 | 12.4 | % | 1.2 | % | ||
Nebraska | 6 | 1,370 | 9.2 | % | 0.6 | % | ||
North Dakota | 19 | 3,112 | 21.5 | % | 0.2 | % | ||
South Dakota | 5 | 474 | 3.2 | % | 0.7 | % | ||
Montana | 5 | 749 | 5.0 | % | 2.3 | % | ||
Total | 70 | 12,135 | 100.0 | % | 0.9 | % |
(1) | Bad debt is reported as a reduction of revenue. |
Month Ended | Three Months Ended | ||||||||||
July 31, 2020 | July 31, 2019 | June 30, 2020 | March 31, 2020 | June 30, 2019 | |||||||
Bad debt as a % of total revenue | 1.0 | % | 0.6 | % | 0.9 | % | 0.2 | % | 0.4 | % | |
Percent of rent deferrals to total revenue | 0.1 | % | N/A | 0.5 | % | N/A | N/A | ||||
Same-Store Communities | |||||||||||
New lease rates | 1.1 | % | 0.7 | % | (1.2 | )% | (4.3 | )% | 4.3 | % | |
Renewal rates | 0.1 | % | 4.9 | % | 3.3 | % | 2.9 | % | 5.9 | % | |
Weighted average occupancy | 94.3 | % | 93.1 | % | 94.6 | % | 95.4 | % | 94.3 | % | |
Physical occupancy, at end of period | 95.2 | % | 93.8 | % | 94.8 | % | 96.1 | % | 94.0 | % |
Liquidity Profile | June 30, 2020 | March 31, 2020 | ||||
Unsecured credit facility - committed | $ | 250,000 | $ | 250,000 | ||
Balance outstanding | 63,000 | 83,000 | ||||
Amount available on line of credit | $ | 187,000 | $ | 167,000 | ||
Cash and cash equivalents | 52,714 | 26,338 | ||||
Total liquidity | $ | 239,714 | $ | 193,338 | ||
Near-Term Funding Obligations | ||||||
Unfunded construction loan and mezzanine loan commitments - 2020 and 2021 | $ | 34,272 | $ | 38,479 | ||
2020 and 2021 Debt maturities | 44,962 | 45,297 | ||||
Total | $ | 79,234 | $ | 83,776 | ||
Ratio of liquidity to near-term funding obligations | 3.0 | 2.3 |
S-11 |
Apartment Homes Included | Revenues | Expenses | NOI | |||||||||||||||||||||||||||||||||
Regions | Q2 2020 | Q2 2019 | % Change | Q2 2020 | Q2 2019 | % Change | Q2 2020 | Q2 2019 | % Change | |||||||||||||||||||||||||||
Minneapolis, MN | 1,987 | $ | 9,068 | $ | 8,904 | 1.8 | % | $ | 3,485 | $ | 3,636 | (4.2 | )% | $ | 5,583 | $ | 5,268 | 6.0 | % | |||||||||||||||||
Rochester, MN | 1,711 | 6,370 | 6,290 | 1.2 | % | 2,802 | 2,450 | 14.4 | % | 3,568 | 3,840 | (7.1 | )% | |||||||||||||||||||||||
Denver, CO | 664 | 3,701 | 3,780 | (2.1 | )% | 1,095 | 1,195 | (8.4 | )% | 2,606 | 2,585 | 0.8 | % | |||||||||||||||||||||||
Grand Forks, ND | 1,555 | 4,344 | 4,218 | 3.0 | % | 1,823 | 1,909 | (4.5 | )% | 2,521 | 2,309 | 9.2 | % | |||||||||||||||||||||||
Omaha, NE | 1,370 | 3,838 | 3,705 | 3.6 | % | 1,783 | 1,635 | 9.1 | % | 2,055 | 2,070 | (0.7 | )% | |||||||||||||||||||||||
St. Cloud, MN | 1,190 | 3,546 | 3,585 | (1.1 | )% | 1,524 | 1,525 | (0.1 | )% | 2,022 | 2,060 | (1.8 | )% | |||||||||||||||||||||||
Bismarck, ND | 845 | 2,766 | 2,671 | 3.6 | % | 1,053 | 1,031 | 2.1 | % | 1,713 | 1,640 | 4.5 | % | |||||||||||||||||||||||
Billings, MT | 749 | 2,139 | 2,125 | 0.7 | % | 838 | 752 | 11.4 | % | 1,301 | 1,373 | (5.2 | )% | |||||||||||||||||||||||
Minot, ND | 712 | 2,161 | 2,145 | 0.7 | % | 969 | 1,036 | (6.5 | )% | 1,192 | 1,109 | 7.5 | % | |||||||||||||||||||||||
Rapid City, SD | 474 | 1,402 | 1,371 | 2.3 | % | 634 | 557 | 13.8 | % | 768 | 814 | (5.7 | )% | |||||||||||||||||||||||
Same-Store Total | 11,257 | $ | 39,335 | $ | 38,794 | 1.4 | % | $ | 16,006 | $ | 15,726 | 1.8 | % | $ | 23,329 | $ | 23,068 | 1.1 | % |
% of NOI Contribution | Weighted Average Occupancy (1) | Average Monthly Rental Rate (2) | Average Monthly Revenue per Occupied Home (3) | |||||||||||||||||||||||||||||||
Regions | Q2 2020 | Q2 2019 | Growth | Q2 2020 | Q2 2019 | % Change | Q2 2020 | Q2 2019 | % Change | |||||||||||||||||||||||||
Minneapolis, MN | 23.9 | % | 94.0 | % | 93.3 | % | 0.7 | % | $ | 1,494 | $ | 1,471 | 1.6 | % | $ | 1,619 | $ | 1,600 | 1.1 | % | ||||||||||||||
Rochester, MN | 15.3 | % | 95.3 | % | 95.4 | % | (0.1 | )% | 1,248 | 1,233 | 1.2 | % | 1,303 | 1,285 | 1.3 | % | ||||||||||||||||||
Denver, CO | 11.2 | % | 92.9 | % | 94.5 | % | (1.6 | )% | 1,827 | 1,828 | (0.1 | )% | 2,001 | 2,008 | (0.5 | )% | ||||||||||||||||||
Grand Forks, ND | 10.8 | % | 94.6 | % | 93.5 | % | 1.1 | % | 906 | 912 | (0.7 | )% | 985 | 967 | 1.9 | % | ||||||||||||||||||
Omaha, NE | 8.8 | % | 94.9 | % | 93.3 | % | 1.6 | % | 904 | 884 | 2.3 | % | 984 | 966 | 2.0 | % | ||||||||||||||||||
St. Cloud, MN | 8.7 | % | 93.7 | % | 95.4 | % | (1.7 | )% | 955 | 951 | 0.4 | % | 1,060 | 1,053 | 0.6 | % | ||||||||||||||||||
Bismarck, ND | 7.3 | % | 96.2 | % | 93.6 | % | 2.6 | % | 1,053 | 1,044 | 0.9 | % | 1,134 | 1,126 | 1.0 | % | ||||||||||||||||||
Billings, MT | 5.6 | % | 94.4 | % | 95.6 | % | (1.2 | )% | 944 | 924 | 2.2 | % | 1,008 | 989 | 1.9 | % | ||||||||||||||||||
Minot, ND | 5.1 | % | 97.0 | % | 95.0 | % | 2.0 | % | 992 | 1,000 | (0.8 | )% | 1,043 | 1,057 | (1.3 | )% | ||||||||||||||||||
Rapid City, SD | 3.3 | % | 94.3 | % | 95.0 | % | (0.7 | )% | 966 | 945 | 2.2 | % | 1,046 | 1,015 | 3.0 | % | ||||||||||||||||||
Same-Store Total | 100.0 | % | 94.6 | % | 94.3 | % | 0.3 | % | $ | 1,142 | $ | 1,132 | 0.9 | % | $ | 1,232 | $ | 1,219 | 1.1 | % |
(1) | Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rent. |
(2) | Average monthly rental rate is scheduled rent 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) | Average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment homes for the period. |
S-12 |
Apartment Homes Included | Revenues | Expenses | NOI | |||||||||||||||||||||||||||||||||
Regions | Q2 2020 | Q1 2020 | % Change | Q2 2020 | Q1 2020 | % Change | Q2 2020 | Q1 2020 | % Change | |||||||||||||||||||||||||||
Minneapolis, MN | 1,987 | $ | 9,068 | $ | 9,112 | (0.5 | )% | $ | 3,485 | $ | 3,911 | (10.9 | )% | $ | 5,583 | $ | 5,201 | 7.3 | % | |||||||||||||||||
Rochester, MN | 1,711 | 6,370 | 6,539 | (2.6 | )% | 2,802 | 2,824 | (0.7 | )% | 3,568 | 3,715 | (4.0 | )% | |||||||||||||||||||||||
Denver, CO | 664 | 3,701 | 3,927 | (5.8 | )% | 1,095 | 1,258 | (13.0 | )% | 2,606 | 2,669 | (2.4 | )% | |||||||||||||||||||||||
Grand Forks, ND | 1,555 | 4,344 | 4,337 | 0.2 | % | 1,823 | 2,225 | (18.1 | )% | 2,521 | 2,112 | 19.4 | % | |||||||||||||||||||||||
Omaha, NE | 1,370 | 3,838 | 3,814 | 0.6 | % | 1,783 | 1,626 | 9.7 | % | 2,055 | 2,188 | (6.1 | )% | |||||||||||||||||||||||
St. Cloud, MN | 1,190 | 3,546 | 3,611 | (1.8 | )% | 1,524 | 1,756 | (13.2 | )% | 2,022 | 1,855 | 9.0 | % | |||||||||||||||||||||||
Bismarck, ND | 845 | 2,766 | 2,735 | 1.1 | % | 1,053 | 1,169 | (9.9 | )% | 1,713 | 1,566 | 9.4 | % | |||||||||||||||||||||||
Billings, MT | 749 | 2,139 | 2,179 | (1.8 | )% | 838 | 826 | 1.5 | % | 1,301 | 1,353 | (3.8 | )% | |||||||||||||||||||||||
Minot, ND | 712 | 2,161 | 2,125 | 1.7 | % | 969 | 1,011 | (4.2 | )% | 1,192 | 1,114 | 7.0 | % | |||||||||||||||||||||||
Rapid City, SD | 474 | 1,402 | 1,441 | (2.7 | )% | 634 | 652 | (2.8 | )% | 768 | 789 | (2.7 | )% | |||||||||||||||||||||||
Same-Store Total | 11,257 | $ | 39,335 | $ | 39,820 | (1.2 | )% | $ | 16,006 | $ | 17,258 | (7.3 | )% | $ | 23,329 | $ | 22,562 | 3.4 | % |
% of NOI Contribution | Weighted Average Occupancy | Average Monthly Rental Rate | Average Monthly Revenue per Occupied Home | |||||||||||||||||||||||||||||||
Regions | Q2 2020 | Q1 2020 | Growth | Q2 2020 | Q1 2020 | % Change | Q2 2020 | Q1 2020 | % Change | |||||||||||||||||||||||||
Minneapolis, MN | 23.9 | % | 94.0 | % | 94.2 | % | (0.2 | )% | $ | 1,494 | $ | 1,485 | 0.6 | % | $ | 1,619 | $ | 1,624 | (0.3 | )% | ||||||||||||||
Rochester, MN | 15.3 | % | 95.3 | % | 97.1 | % | (1.8 | )% | 1,248 | 1,239 | 0.7 | % | 1,303 | 1,312 | (0.8 | )% | ||||||||||||||||||
Denver, CO | 11.2 | % | 92.9 | % | 95.1 | % | (2.2 | )% | 1,827 | 1,845 | (1.0 | )% | 2,001 | 2,072 | (3.6 | )% | ||||||||||||||||||
Grand Forks, ND | 10.8 | % | 94.6 | % | 95.4 | % | (0.8 | )% | 906 | 900 | 0.7 | % | 985 | 975 | 1.0 | % | ||||||||||||||||||
Omaha, NE | 8.8 | % | 94.9 | % | 94.3 | % | 0.6 | % | 904 | 893 | 1.2 | % | 984 | 984 | — | |||||||||||||||||||
St. Cloud, MN | 8.7 | % | 93.7 | % | 94.9 | % | (1.2 | )% | 955 | 945 | 1.1 | % | 1,060 | 1,066 | (0.6 | )% | ||||||||||||||||||
Bismarck, ND | 7.3 | % | 96.2 | % | 96.4 | % | (0.2 | )% | 1,053 | 1,044 | 0.9 | % | 1,134 | 1,119 | 1.3 | % | ||||||||||||||||||
Billings, MT | 5.6 | % | 94.4 | % | 95.8 | % | (1.4 | )% | 944 | 935 | 1.0 | % | 1,008 | 1,012 | (0.4 | )% | ||||||||||||||||||
Minot, ND | 5.1 | % | 97.0 | % | 95.1 | % | 1.9 | % | 992 | 990 | 0.2 | % | 1,043 | 1,046 | (0.2 | )% | ||||||||||||||||||
Rapid City, SD | 3.3 | % | 94.3 | % | 96.9 | % | (2.6 | )% | 966 | 951 | 1.6 | % | 1,046 | 1,045 | (0.1 | )% | ||||||||||||||||||
Same-Store Total | 100.0 | % | 94.6 | % | 95.4 | % | (0.8 | )% | $ | 1,142 | $ | 1,135 | 0.6 | % | $ | 1,232 | $ | 1,237 | (0.4 | )% |
S-13 |
Apartment Homes Included | Revenues | Expenses | NOI | |||||||||||||||||||||||||||||||||
Regions | 2020 | 2019 | % Change | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||
Minneapolis, MN | 1,987 | $ | 18,180 | $ | 17,684 | 2.8 | % | $ | 7,395 | $ | 7,275 | 1.6 | % | $ | 10,785 | $ | 10,409 | 3.6 | % | |||||||||||||||||
Rochester, MN | 1,711 | 12,908 | 12,516 | 3.1 | % | 5,625 | 4,905 | 14.7 | % | 7,283 | 7,611 | (4.3 | )% | |||||||||||||||||||||||
Denver, CO | 664 | 7,628 | 7,479 | 2.0 | % | 2,354 | 2,417 | (2.6 | )% | 5,274 | 5,062 | 4.2 | % | |||||||||||||||||||||||
Grand Forks, ND | 1,555 | 8,682 | 8,359 | 3.9 | % | 4,048 | 4,075 | (0.7 | )% | 4,634 | 4,284 | 8.2 | % | |||||||||||||||||||||||
Omaha, NE | 1,370 | 7,652 | 7,459 | 2.6 | % | 3,409 | 3,409 | — | 4,243 | 4,050 | 4.8 | % | ||||||||||||||||||||||||
St. Cloud, MN | 1,190 | 7,157 | 7,059 | 1.4 | % | 3,281 | 3,333 | (1.6 | )% | 3,876 | 3,726 | 4.0 | % | |||||||||||||||||||||||
Bismarck, ND | 845 | 5,501 | 5,335 | 3.1 | % | 2,222 | 2,162 | 2.8 | % | 3,279 | 3,173 | 3.3 | % | |||||||||||||||||||||||
Billings, MT | 749 | 4,317 | 4,230 | 2.1 | % | 1,664 | 1,575 | 5.7 | % | 2,653 | 2,655 | (0.1 | )% | |||||||||||||||||||||||
Minot, ND | 712 | 4,287 | 4,263 | 0.6 | % | 1,980 | 2,043 | (3.1 | )% | 2,307 | 2,220 | 3.9 | % | |||||||||||||||||||||||
Rapid City, SD | 474 | 2,843 | 2,738 | 3.8 | % | 1,286 | 1,133 | 13.5 | % | 1,557 | 1,605 | (3.0 | )% | |||||||||||||||||||||||
Same-Store Total | 11,257 | $ | 79,155 | $ | 77,122 | 2.6 | % | $ | 33,264 | $ | 32,327 | 2.9 | % | $ | 45,891 | $ | 44,795 | 2.4 | % |
% of NOI Contribution | Weighted Average Occupancy | Average Monthly Rental Rate | Average Monthly Revenue per Occupied Home | |||||||||||||||||||||||||||||||
Regions | 2020 | 2019 | Growth | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||
Minneapolis, MN | 23.6 | % | 94.1 | % | 94.1 | % | — | $ | 1,490 | $ | 1,457 | 2.3 | % | $ | 1,621 | $ | 1,577 | 2.8 | % | |||||||||||||||
Rochester, MN | 15.9 | % | 96.2 | % | 95.9 | % | 0.3 | % | 1,243 | 1,220 | 1.9 | % | 1,307 | 1,271 | 2.8 | % | ||||||||||||||||||
Denver, CO | 11.5 | % | 94.0 | % | 94.4 | % | (0.4 | )% | 1,836 | 1,817 | 1.0 | % | 2,037 | 1,988 | 2.4 | % | ||||||||||||||||||
Grand Forks, ND | 10.1 | % | 95.0 | % | 93.7 | % | 1.3 | % | 903 | 907 | (0.4 | )% | 980 | 957 | 2.6 | % | ||||||||||||||||||
Omaha, NE | 9.2 | % | 94.6 | % | 94.3 | % | 0.3 | % | 898 | 879 | 2.2 | % | 984 | 963 | 2.3 | % | ||||||||||||||||||
St. Cloud, MN | 8.4 | % | 94.3 | % | 95.6 | % | (1.3 | )% | 950 | 945 | 0.5 | % | 1,063 | 1,035 | 2.7 | % | ||||||||||||||||||
Bismarck, ND | 7.1 | % | 96.3 | % | 95.3 | % | 1.0 | % | 1,048 | 1,037 | 1.1 | % | 1,126 | 1,104 | 2.1 | % | ||||||||||||||||||
Billings, MT | 5.8 | % | 95.1 | % | 96.0 | % | (0.9 | )% | 939 | 915 | 2.6 | % | 1,010 | 981 | 3.0 | % | ||||||||||||||||||
Minot, ND | 5.0 | % | 96.1 | % | 95.4 | % | 0.7 | % | 991 | 997 | (0.6 | )% | 1,044 | 1,046 | (0.1 | )% | ||||||||||||||||||
Rapid City, SD | 3.4 | % | 95.6 | % | 95.9 | % | (0.3 | )% | 959 | 938 | 2.2 | % | 1,046 | 1,003 | 4.1 | % | ||||||||||||||||||
Same-Store Total | 100.0 | % | 95.0 | % | 94.9 | % | 0.1 | % | $ | 1,139 | $ | 1,123 | 1.4 | % | $ | 1,234 | $ | 1,204 | 2.5 | % |
S-14 |
Three Months Ended | ||||||||||||||||||||
6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | ||||||||||||||||
Number of Apartment Homes at Period End | ||||||||||||||||||||
Same-Store | 11,257 | 11,257 | 10,402 | 11,785 | 12,848 | |||||||||||||||
Non-Same-Store | 878 | 878 | 1,551 | 1,551 | 1,127 | |||||||||||||||
All Communities | 12,135 | 12,135 | 11,953 | 13,336 | 13,975 | |||||||||||||||
Average Monthly Rental Rate(2) | ||||||||||||||||||||
Same-Store | $ | 1,142 | $ | 1,135 | $ | 1,085 | $ | 1,062 | $ | 1,028 | ||||||||||
Non-Same-Store | 1,594 | 1,572 | 1,722 | 1,742 | 1,692 | |||||||||||||||
All Communities | $ | 1,175 | $ | 1,163 | $ | 1,168 | $ | 1,123 | $ | 1,081 | ||||||||||
Average Monthly Revenue per Occupied Apartment Home(3) | ||||||||||||||||||||
Same-Store | $ | 1,232 | $ | 1,237 | $ | 1,169 | $ | 1,141 | $ | 1,101 | ||||||||||
Non-Same-Store | 1,681 | 1,658 | 1,869 | 1,887 | 1,848 | |||||||||||||||
All Communities | $ | 1,264 | $ | 1,263 | $ | 1,260 | $ | 1,210 | $ | 1,161 | ||||||||||
Weighted Average Occupancy(4) | ||||||||||||||||||||
Same-Store | 94.6 | % | 95.4 | % | 94.0 | % | 93.3 | % | 94.3 | % | ||||||||||
Non-Same-Store | 93.9 | % | 93.3 | % | 93.0 | % | 94.2 | % | 94.8 | % | ||||||||||
All Communities | 94.5 | % | 95.2 | % | 93.8 | % | 93.4 | % | 94.4 | % | ||||||||||
Operating Expenses as a % of Scheduled Rent | ||||||||||||||||||||
Same-Store | 41.5 | % | 45.0 | % | 43.5 | % | 43.0 | % | 42.8 | % | ||||||||||
Non-Same-Store | 36.1 | % | 37.0 | % | 33.8 | % | 38.1 | % | 37.4 | % | ||||||||||
All Communities | 41.0 | % | 44.3 | % | 41.6 | % | 42.3 | % | 42.2 | % | ||||||||||
Capital Expenditures | ||||||||||||||||||||
Total Capital Expenditures per Apartment Home – Same-Store | $ | 262 | $ | 151 | $ | 427 | $ | 178 | $ | 192 |
(1) | Previously reported amounts are not revised for changes in the composition of the same-store properties pool. |
(2) | Average monthly rental rate is scheduled rent 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) | Average monthly revenue per occupied home is defined as total rental 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-15 |
Three Months Ended | Six Months Ended | ||||||||||||||||
6/30/2020 | 6/30/2019 | 6/30/2020 | 6/30/2019 | ||||||||||||||
Total Same-Store Apartment Homes | 11,257 | 11,257 | 11,257 | 11,257 | |||||||||||||
Turnover | $ | 893 | $ | 908 | $ | 1,580 | $ | 1,422 | |||||||||
Furniture & Equipment | 112 | 107 | 241 | 160 | |||||||||||||
Building – Interior | 69 | 100 | 218 | 178 | |||||||||||||
Building – Exterior | 1,505 | 394 | 2,219 | 603 | |||||||||||||
Landscaping & Grounds | 367 | 539 | 383 | 545 | |||||||||||||
Capital Expenditures - Same-Store | $ | 2,946 | $ | 2,048 | $ | 4,641 | $ | 2,908 | |||||||||
Capital Expenditures per Apartment Home - Same-Store | $ | 262 | $ | 182 | $ | 412 | $ | 258 | |||||||||
Value Add | $ | 2,604 | $ | 701 | $ | 4,166 | $ | 989 | |||||||||
Total Capital Spend - Same-Store | $ | 5,550 | $ | 2,749 | $ | 8,807 | $ | 3,897 | |||||||||
Total Capital Spend per Apartment Home - Same-Store | $ | 493 | $ | 244 | $ | 782 | $ | 346 | |||||||||
All Properties - Weighted Average Apartment Homes | 12,135 | 13,975 | 12,074 | 13,975 | |||||||||||||
Capital Expenditures | $ | 3,373 | $ | 2,571 | $ | 5,183 | $ | 3,727 | |||||||||
Capital Expenditures per Apartment Home | $ | 277 | $ | 184 | $ | 429 | $ | 267 | |||||||||
Value Add | 4,165 | 747 | 6,196 | 1,119 | |||||||||||||
Acquisition Capital(1) | (943 | ) | 66 | 535 | 254 | ||||||||||||
Total Capital Spend | 6,595 | 3,384 | 11,914 | 5,100 | |||||||||||||
Total Capital Spend per Apartment Home | $ | 544 | $ | 242 | $ | 987 | $ | 365 |
(1) | Negative amounts consist of balances originally classified as acquisition capital and subsequently reclassified to capital expenditures. |
S-16 |