ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TEXAS | 74-1464203 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
2600 Citadel Plaza Drive | |
P.O. Box 924133 | |
Houston, Texas | 77292-4133 |
(Address of principal executive offices) | (Zip Code) |
(713) 866-6000 | ||
(Registrant's telephone number) | ||
Large accelerated filer ý | Accelerated filer ¨ |
Non-accelerated filer ¨ | Smaller reporting company ¨ |
(Do not check if a smaller reporting company) |
PART I. | Financial Information: | Page Number | |
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II. | Other Information: | ||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Rentals, net | $ | 127,828 | $ | 116,013 | $ | 251,890 | $ | 227,951 | |||||||
Other | 3,749 | 2,584 | 6,389 | 5,262 | |||||||||||
Total | 131,577 | 118,597 | 258,279 | 233,213 | |||||||||||
Expenses: | |||||||||||||||
Depreciation and amortization | 38,190 | 32,465 | 76,895 | 64,731 | |||||||||||
Operating | 25,003 | 22,906 | 49,452 | 44,520 | |||||||||||
Real estate taxes, net | 15,444 | 13,976 | 30,104 | 27,268 | |||||||||||
Impairment loss | 165 | 2,536 | 221 | 9,388 | |||||||||||
General and administrative | 6,194 | 6,378 | 12,861 | 14,685 | |||||||||||
Total | 84,996 | 78,261 | 169,533 | 160,592 | |||||||||||
Operating Income | 46,581 | 40,336 | 88,746 | 72,621 | |||||||||||
Interest Expense, net | (28,772 | ) | (28,628 | ) | (46,175 | ) | (59,359 | ) | |||||||
Interest and Other Income, net | 2,098 | 582 | 3,924 | 2,968 | |||||||||||
Gain on Sale of Real Estate Joint Venture and Partnership Interests | 83 | — | 11,592 | 5,562 | |||||||||||
Equity in Earnings (Losses) of Real Estate Joint Ventures and Partnerships, net | 4,729 | (15,695 | ) | 9,342 | (11,620 | ) | |||||||||
(Provision) Benefit for Income Taxes | (197 | ) | 279 | (33 | ) | 313 | |||||||||
Income (Loss) from Continuing Operations | 24,522 | (3,126 | ) | 67,396 | 10,485 | ||||||||||
Operating Income from Discontinued Operations | 1,379 | 4,539 | 3,180 | 9,492 | |||||||||||
Gain on Sale of Property from Discontinued Operations | 78,012 | 31,264 | 78,012 | 34,898 | |||||||||||
Income from Discontinued Operations | 79,391 | 35,803 | 81,192 | 44,390 | |||||||||||
Gain on Sale of Property | 265 | 84 | 407 | 524 | |||||||||||
Net Income | 104,178 | 32,761 | 148,995 | 55,399 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | (37,742 | ) | (1,342 | ) | (39,209 | ) | (2,783 | ) | |||||||
Net Income Adjusted for Noncontrolling Interests | 66,436 | 31,419 | 109,786 | 52,616 | |||||||||||
Dividends on Preferred Shares | (5,313 | ) | (8,869 | ) | (12,753 | ) | (17,738 | ) | |||||||
Redemption Costs of Preferred Shares | (15,702 | ) | — | (17,944 | ) | — | |||||||||
Net Income Attributable to Common Shareholders | $ | 45,421 | $ | 22,550 | $ | 79,089 | $ | 34,878 | |||||||
Earnings Per Common Share - Basic: | |||||||||||||||
Income (loss) from continuing operations attributable to common shareholders | $ | 0.02 | $ | (0.10 | ) | $ | 0.29 | $ | (0.07 | ) | |||||
Income from discontinued operations | 0.35 | 0.29 | 0.36 | 0.36 | |||||||||||
Net income attributable to common shareholders | $ | 0.37 | $ | 0.19 | $ | 0.65 | $ | 0.29 | |||||||
Earnings Per Common Share - Diluted: | |||||||||||||||
Income (loss) from continuing operations attributable to common shareholders | $ | 0.02 | $ | (0.10 | ) | $ | 0.29 | $ | (0.07 | ) | |||||
Income from discontinued operations | 0.35 | 0.29 | 0.36 | 0.36 | |||||||||||
Net income attributable to common shareholders | $ | 0.37 | $ | 0.19 | $ | 0.65 | $ | 0.29 | |||||||
Comprehensive Income: | |||||||||||||||
Net Income | $ | 104,178 | $ | 32,761 | $ | 148,995 | $ | 55,399 | |||||||
Other Comprehensive Income: | |||||||||||||||
Net unrealized gain (loss) on derivatives | 9,135 | (148 | ) | 7,028 | (132 | ) | |||||||||
Amortization of loss on derivatives | 666 | 662 | 1,322 | 1,321 | |||||||||||
Retirement liability adjustment | 364 | — | 729 | — | |||||||||||
Total | 10,165 | 514 | 9,079 | 1,189 | |||||||||||
Comprehensive Income | 114,343 | 33,275 | 158,074 | 56,588 | |||||||||||
Comprehensive Income Attributable to Noncontrolling Interests | (37,742 | ) | (1,342 | ) | (39,209 | ) | (2,783 | ) | |||||||
Comprehensive Income Adjusted for Noncontrolling Interests | $ | 76,601 | $ | 31,933 | $ | 118,865 | $ | 53,805 |
June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Property | $ | 4,373,891 | $ | 4,399,850 | |||
Accumulated Depreciation | (1,052,585 | ) | (1,040,839 | ) | |||
Property Held for Sale, net | 8,698 | — | |||||
Property, net * | 3,330,004 | 3,359,011 | |||||
Investment in Real Estate Joint Ventures and Partnerships, net | 285,666 | 289,049 | |||||
Total | 3,615,670 | 3,648,060 | |||||
Notes Receivable from Real Estate Joint Ventures and Partnerships | 85,004 | 89,776 | |||||
Unamortized Debt and Lease Costs, net | 140,938 | 135,783 | |||||
Accrued Rent and Accounts Receivable (net of allowance for doubtful accounts of $11,071 in 2013 and $12,127 in 2012) * | 70,572 | 79,540 | |||||
Cash and Cash Equivalents * | 23,374 | 19,604 | |||||
Restricted Deposits and Mortgage Escrows | 9,490 | 44,096 | |||||
Other, net | 174,266 | 167,925 | |||||
Total Assets | $ | 4,119,314 | $ | 4,184,784 | |||
LIABILITIES AND EQUITY | |||||||
Debt, net * | $ | 2,350,762 | $ | 2,204,030 | |||
Accounts Payable and Accrued Expenses | 107,173 | 119,699 | |||||
Other, net | 110,029 | 120,900 | |||||
Total Liabilities | 2,567,964 | 2,444,629 | |||||
Commitments and Contingencies | — | — | |||||
Equity: | |||||||
Shareholders’ Equity: | |||||||
Preferred Shares of Beneficial Interest - par value, $.03 per share; shares authorized: 10,000 | |||||||
6.75% Series D cumulative redeemable preferred shares of beneficial interest; 100 shares issued; no shares outstanding in 2013 and 100 shares outstanding in 2012; liquidation preference $75,000 in 2012 | — | 3 | |||||
6.5% Series F cumulative redeemable preferred shares of beneficial interest; 140 shares issued; 60 shares outstanding in 2013 and 140 shares outstanding in 2012; liquidation preference $150,000 in 2013 and $350,000 in 2012 | 2 | 4 | |||||
Common Shares of Beneficial Interest - par value, $.03 per share; shares authorized: 275,000; shares issued and outstanding: 121,931 in 2013 and 121,505 in 2012 | 3,683 | 3,663 | |||||
Additional Paid-In Capital | 1,689,278 | 1,934,183 | |||||
Net Income Less Than Accumulated Dividends | (331,208 | ) | (335,980 | ) | |||
Accumulated Other Comprehensive Loss | (15,664 | ) | (24,743 | ) | |||
Total Shareholders’ Equity | 1,346,091 | 1,577,130 | |||||
Noncontrolling Interests | 205,259 | 163,025 | |||||
Total Equity | 1,551,350 | 1,740,155 | |||||
Total Liabilities and Equity | $ | 4,119,314 | $ | 4,184,784 | |||
* Consolidated Variable Interest Entities' Assets and Liabilities included in the above balances (See Note 17): | |||||||
Property, net | $ | 211,663 | $ | 226,685 | |||
Accrued Rent and Accounts Receivable, net | 4,719 | 8,095 | |||||
Cash and Cash Equivalents | 12,043 | 11,706 | |||||
Debt, net | 210,871 | 276,420 |
WEINGARTEN REALTY INVESTORS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | |||||||
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash Flows from Operating Activities: | |||||||
Net Income | $ | 148,995 | $ | 55,399 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 78,607 | 73,359 | |||||
Amortization of deferred financing costs, net | (8,747 | ) | 316 | ||||
Impairment loss | 457 | 15,074 | |||||
Equity in (earnings) losses of real estate joint ventures and partnerships, net | (9,342 | ) | 11,620 | ||||
Gain on sale of real estate joint venture and partnership interests | (11,592 | ) | (5,562 | ) | |||
Gain on sale of property | (78,419 | ) | (35,422 | ) | |||
Distributions of income from real estate joint ventures and partnerships, net | 1,723 | 1,562 | |||||
Changes in accrued rent and accounts receivable, net | 6,266 | 10,064 | |||||
Changes in other assets, net | (12,844 | ) | (15,193 | ) | |||
Changes in accounts payable, accrued expenses and other liabilities, net | (7,710 | ) | (9,458 | ) | |||
Other, net | 3,911 | 7,686 | |||||
Net cash provided by operating activities | 111,305 | 109,445 | |||||
Cash Flows from Investing Activities: | |||||||
Acquisition of real estate and land | (54,753 | ) | (116,960 | ) | |||
Development and capital improvements | (30,644 | ) | (45,585 | ) | |||
Proceeds from sale of property and real estate equity investments, net | 155,862 | 419,370 | |||||
Change in restricted deposits and mortgage escrows | 34,606 | (22,010 | ) | ||||
Notes receivable from real estate joint ventures and partnerships and other receivables: | |||||||
Advances | (289 | ) | (4,865 | ) | |||
Collections | 6,282 | 73,563 | |||||
Real estate joint ventures and partnerships: | |||||||
Investments | (17,698 | ) | (7,129 | ) | |||
Distributions of capital | 19,201 | 7,568 | |||||
Other, net | (899 | ) | — | ||||
Net cash provided by investing activities | 111,668 | 303,952 | |||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of debt | 300,584 | — | |||||
Principal payments of debt | (199,672 | ) | (384,116 | ) | |||
Changes in unsecured credit facilities | 38,500 | 62,500 | |||||
Proceeds from issuance of common shares of beneficial interest, net | 5,569 | 3,212 | |||||
Repurchase of preferred shares of beneficial interest | (275,000 | ) | — | ||||
Common and preferred dividends paid | (86,639 | ) | (86,704 | ) | |||
Debt issuance costs paid | (4,693 | ) | (1,685 | ) | |||
Distributions to noncontrolling interests | (8,241 | ) | (7,333 | ) | |||
Contributions from noncontrolling interests | 10,182 | 2,123 | |||||
Other, net | 207 | 61 | |||||
Net cash used in financing activities | (219,203 | ) | (411,942 | ) | |||
Net increase in cash and cash equivalents | 3,770 | 1,455 | |||||
Cash and cash equivalents at January 1 | 19,604 | 13,642 | |||||
Cash and cash equivalents at June 30 | $ | 23,374 | $ | 15,097 | |||
Interest paid during the period (net of amount capitalized of $1,104 and $1,594, respectively) | $ | 52,508 | $ | 61,959 | |||
Income taxes paid during the period | $ | 1,860 | $ | 1,548 |
Preferred Shares of Beneficial Interest | Common Shares of Beneficial Interest | Additional Paid-In Capital | Net Income Less Than Accumulated Dividends | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total | |||||||||||||||||||||
Balance, January 1, 2012 | $ | 8 | $ | 3,641 | $ | 1,983,978 | $ | (304,504 | ) | $ | (27,743 | ) | $ | 168,202 | $ | 1,823,582 | |||||||||||
Net income | 52,616 | 2,783 | 55,399 | ||||||||||||||||||||||||
Shares issued under benefit plans | 12 | 8,264 | 8,276 | ||||||||||||||||||||||||
Dividends declared – common shares (1) | (70,278 | ) | (70,278 | ) | |||||||||||||||||||||||
Dividends declared – preferred shares (2) | (16,426 | ) | (16,426 | ) | |||||||||||||||||||||||
Distributions to noncontrolling interests | (7,333 | ) | (7,333 | ) | |||||||||||||||||||||||
Contributions from noncontrolling interests | 2,123 | 2,123 | |||||||||||||||||||||||||
Other comprehensive income | 1,189 | 1,189 | |||||||||||||||||||||||||
Other, net | 1,109 | (1,312 | ) | 940 | 737 | ||||||||||||||||||||||
Balance , June 30, 2012 | $ | 8 | $ | 3,653 | $ | 1,993,351 | $ | (339,904 | ) | $ | (26,554 | ) | $ | 166,715 | $ | 1,797,269 | |||||||||||
Balance, January 1, 2013 | $ | 7 | $ | 3,663 | $ | 1,934,183 | $ | (335,980 | ) | $ | (24,743 | ) | $ | 163,025 | $ | 1,740,155 | |||||||||||
Net income | 109,786 | 39,209 | 148,995 | ||||||||||||||||||||||||
Redemption of Series D preferred shares | (3 | ) | (72,755 | ) | (2,242 | ) | (75,000 | ) | |||||||||||||||||||
Redemption of Series F preferred shares | (2 | ) | (184,296 | ) | (15,702 | ) | (200,000 | ) | |||||||||||||||||||
Shares issued under benefit plans | 20 | 11,335 | 11,355 | ||||||||||||||||||||||||
Dividends declared – common shares (1) | (74,317 | ) | (74,317 | ) | |||||||||||||||||||||||
Dividends declared – preferred shares (2) | (12,322 | ) | (12,322 | ) | |||||||||||||||||||||||
Distributions to noncontrolling interests | (8,241 | ) | (8,241 | ) | |||||||||||||||||||||||
Contributions from noncontrolling interests | 10,182 | 10,182 | |||||||||||||||||||||||||
Other comprehensive income | 9,079 | 9,079 | |||||||||||||||||||||||||
Other, net | 811 | (431 | ) | 1,084 | 1,464 | ||||||||||||||||||||||
Balance, June 30, 2013 | $ | 2 | $ | 3,683 | $ | 1,689,278 | $ | (331,208 | ) | $ | (15,664 | ) | $ | 205,259 | $ | 1,551,350 |
(1) | Common dividend per share was $.610 and $.580 for the six months ended June 30, 2013 and 2012, respectively. |
(2) | Series D preferred dividend per share was $13.08 and $25.31 for the six months ended June 30, 2013 and 2012, respectively. Series E preferred dividend per share was $86.88 for the six months ended June 30, 2012. Series F preferred dividend per share was $78.99 and $81.25 for the six months ended June 30, 2013 and 2012, respectively. |
June 30, 2013 | December 31, 2012 | ||||||
Restricted cash (1) | $ | 5,171 | $ | 36,944 | |||
Mortgage escrows | 4,319 | 7,152 | |||||
Total | $ | 9,490 | $ | 44,096 |
(1) | The decrease between the periods presented is primarily attributable to the use of $30.7 million in a qualified escrow account associated with an acquisition in 2013. |
(Gain) Loss on Cash Flow Hedges | Defined Benefit Pension Plan | Total | |||||||||
Balance, December 31, 2012 | $ | 7,489 | $ | 17,254 | $ | 24,743 | |||||
Amounts reclassified from other comprehensive income | (8,350 | ) | (1) | (729 | ) | (2) | (9,079 | ) | |||
Net other comprehensive income | (8,350 | ) | (729 | ) | (9,079 | ) | |||||
Balance, June 30, 2013 | $ | (861 | ) | $ | 16,525 | $ | 15,664 |
(1) | This reclassification component is included in interest expense, other assets and other liabilities (see Note 7 for additional information). |
(2) | This reclassification component is included in the computation of net periodic benefit cost (see Note 14 for additional information). |
June 30, 2013 | December 31, 2012 | ||||||
Land | $ | 894,302 | $ | 881,156 | |||
Land held for development | 121,030 | 121,294 | |||||
Land under development | 4,182 | 6,155 | |||||
Buildings and improvements | 3,294,883 | 3,325,793 | |||||
Construction in-progress | 59,494 | 65,452 | |||||
Total | $ | 4,373,891 | $ | 4,399,850 |
June 30, 2013 | December 31, 2012 | ||||||
Combined Condensed Balance Sheets | |||||||
ASSETS | |||||||
Property | $ | 1,503,550 | $ | 1,631,694 | |||
Accumulated depreciation | (274,448 | ) | (273,591 | ) | |||
Property, net | 1,229,102 | 1,358,103 | |||||
Other assets, net | 155,258 | 161,344 | |||||
Total | $ | 1,384,360 | $ | 1,519,447 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Debt, net (primarily mortgages payable) | $ | 462,859 | $ | 468,841 | |||
Amounts payable to Weingarten Realty Investors and Affiliates | 102,140 | 109,931 | |||||
Other liabilities, net | 33,267 | 34,157 | |||||
Total | 598,266 | 612,929 | |||||
Accumulated equity | 786,094 | 906,518 | |||||
Total | $ | 1,384,360 | $ | 1,519,447 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Combined Condensed Statements of Operations | |||||||||||||||
Revenues, net | $ | 41,099 | $ | 50,026 | $ | 83,260 | $ | 99,873 | |||||||
Expenses: | |||||||||||||||
Depreciation and amortization | 11,558 | 15,481 | 23,579 | 31,617 | |||||||||||
Interest, net | 7,415 | 8,961 | 14,960 | 18,047 | |||||||||||
Operating | 7,407 | 8,571 | 13,561 | 17,196 | |||||||||||
Real estate taxes, net | 5,013 | 6,159 | 9,596 | 12,397 | |||||||||||
General and administrative | 164 | 225 | 450 | 586 | |||||||||||
Provision for income taxes | 86 | 95 | 148 | 168 | |||||||||||
Impairment loss | 13 | 96,498 | 1,828 | 96,498 | |||||||||||
Total | 31,656 | 135,990 | 64,122 | 176,509 | |||||||||||
Operating income (loss) | $ | 9,443 | $ | (85,964 | ) | $ | 19,138 | $ | (76,636 | ) |
June 30, 2013 | December 31, 2012 | ||||||
Debt payable to 2038 at 2.6% to 8.6% in 2013 and 2.6% to 8.8% in 2012 | $ | 2,150,132 | $ | 2,041,709 | |||
Unsecured notes payable under credit facilities | 104,500 | 66,000 | |||||
Debt service guaranty liability | 74,075 | 74,075 | |||||
Obligations under capital leases | 21,000 | 21,000 | |||||
Industrial revenue bonds payable to 2015 at 2.4% | 1,055 | 1,246 | |||||
Total | $ | 2,350,762 | $ | 2,204,030 |
June 30, 2013 | December 31, 2012 | ||||||
As to interest rate (including the effects of interest rate contracts): | |||||||
Fixed-rate debt | $ | 2,103,023 | $ | 1,992,599 | |||
Variable-rate debt | 247,739 | 211,431 | |||||
Total | $ | 2,350,762 | $ | 2,204,030 | |||
As to collateralization: | |||||||
Unsecured debt | $ | 1,540,756 | $ | 1,270,742 | |||
Secured debt | 810,006 | 933,288 | |||||
Total | $ | 2,350,762 | $ | 2,204,030 |
June 30, 2013 | December 31, 2012 | ||||||
Unsecured revolving credit facility: | |||||||
Balance outstanding | $ | 80,000 | $ | 30,000 | |||
Available balance | 418,821 | 467,571 | |||||
Letter of credit outstanding under facility | 1,179 | 2,429 | |||||
Variable interest rate (excluding facility fee) | 1.0 | % | 1.1 | % | |||
Unsecured and uncommitted overnight facility: | |||||||
Balance outstanding | $ | 24,500 | $ | 36,000 | |||
Variable interest rate | 1.5 | % | 1.5 | % | |||
Both facilities: | |||||||
Maximum balance outstanding during the period | $ | 265,500 | $ | 303,100 | |||
Weighted average balance | 77,094 | 157,447 | |||||
Year-to-date weighted average interest rate (excluding facility fee) | 1.1 | % | 1.3 | % |
2013 remaining | $ | 149,879 | |
2014 | 474,020 | ||
2015 | 275,678 | ||
2016 | 226,027 | ||
2017 | 141,864 | ||
2018 | 64,157 | ||
2019 (1) | 153,380 | ||
2020 | 3,342 | ||
2021 | 2,278 | ||
2022 | 304,815 | ||
Thereafter | 348,264 | ||
Total | $ | 2,143,704 |
(1) | Includes $100 million of our 8.1% senior unsecured notes due 2019 which may be redeemed by us at any time on or after September 2014 at our option. |
Assets | Liabilities | ||||||||||
Balance Sheet Location | Amount | Balance Sheet Location | Amount | ||||||||
Designated Hedges: | |||||||||||
June 30, 2013 | Other Assets, net | $ | 13,620 | Other Liabilities, net | $ | 537 | |||||
December 31, 2012 | Other Assets, net | 9,926 | Other Liabilities, net | 768 |
Gross Amounts Not Offset in Balance Sheet | |||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset in Balance Sheet | Net Amounts Presented in Balance Sheet | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||
June 30, 2013 | |||||||||||||||||||||||
Assets | $ | 13,620 | $ | — | $ | 13,620 | $ | — | $ | — | $ | 13,620 | |||||||||||
Liabilities | 537 | — | 537 | — | — | 537 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Assets | 9,926 | — | 9,926 | — | — | 9,926 | |||||||||||||||||
Liabilities | 768 | — | 768 | — | — | 768 |
Derivatives Hedging Relationships | Amount of (Gain) Loss Recognized in Other Comprehensive Income on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||
Three Months Ended June 30, 2013 | $ | (9,135 | ) | Interest expense, net | $ | (666 | ) | Interest expense, net | $ | — | ||||||
Six Months Ended June 30, 2013 | (7,028 | ) | Interest expense, net | (1,322 | ) | Interest expense, net | — | |||||||||
Three Months Ended June 30, 2012 | 148 | Interest expense, net | (662 | ) | Interest expense, net | — | ||||||||||
Six Months Ended June 30, 2012 | 132 | Interest expense, net | (1,321 | ) | Interest expense, net | — |
Gain (Loss) on Contracts | Gain (Loss) on Borrowings | Gain (Loss) Recognized in Income | |||||||||
Three Months Ended June 30, 2013 | |||||||||||
Interest expense, net | $ | (2,117 | ) | $ | 2,117 | $ | — | ||||
Six Months Ended June 30, 2013 | |||||||||||
Interest expense, net | (3,104 | ) | 3,104 | — | |||||||
Three Months Ended June 30, 2012 | |||||||||||
Interest expense, net | 591 | (591 | ) | — | |||||||
Six Months Ended June 30, 2012 | |||||||||||
Interest expense, net | 61 | (61 | ) | — |
Derivatives Hedging Relationships | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||
Three Months Ended June 30, 2013 | Interest expense, net | $ | (1,096 | ) | Interest expense, net | $ | — | |||||
Six Months Ended June 30, 2013 | Interest expense, net | (1,054 | ) | Interest expense, net | — | |||||||
Three Months Ended June 30, 2012 | Interest expense, net | 1,589 | Interest expense, net | — | ||||||||
Six Months Ended June 30, 2012 | Interest expense, net | 2,060 | Interest expense, net | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Continuing operations: | |||||||||||||||
Property marketed for sale or sold (1) | $ | — | $ | 2,536 | $ | 56 | $ | 2,780 | |||||||
Investments in real estate joint ventures and partnerships (2) | — | — | — | 6,608 | |||||||||||
Other | 165 | — | 165 | — | |||||||||||
Total reported in continuing operations | 165 | 2,536 | 221 | 9,388 | |||||||||||
Discontinued operations: | |||||||||||||||
Property held for sale or sold (3) | — | 2,515 | 236 | 5,686 | |||||||||||
Total impairment charges | 165 | 5,051 | 457 | 15,074 | |||||||||||
Other financial statement caption impacted by impairment: | |||||||||||||||
Equity in earnings of real estate joint ventures and partnerships, net | 3 | 19,889 | 366 | 19,889 | |||||||||||
Net impact of impairment charges | $ | 168 | $ | 24,940 | $ | 823 | $ | 34,963 |
(1) | These charges resulted from changes in management’s plans for these properties, primarily the marketing of these properties for sale. Also included in this caption are impairments associated with dispositions that did not qualify to be reported in discontinued operations. |
(2) | Amounts reported in 2012 were based on third party offers to buy our interests in industrial real estate joint ventures. |
(3) | Amounts reported were based on third party offers. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues, net | $ | 3,460 | $ | 18,445 | $ | 8,558 | $ | 41,479 | |||||||
Depreciation and amortization | (686 | ) | (2,044 | ) | (1,712 | ) | (8,628 | ) | |||||||
Operating expenses | (848 | ) | (3,993 | ) | (1,777 | ) | (8,094 | ) | |||||||
Real estate taxes, net | (230 | ) | (2,317 | ) | (776 | ) | (5,671 | ) | |||||||
Impairment loss | — | (2,515 | ) | (236 | ) | (5,686 | ) | ||||||||
General and administrative | (3 | ) | (1,946 | ) | (3 | ) | (1,960 | ) | |||||||
Interest, net | (244 | ) | (759 | ) | (793 | ) | (1,604 | ) | |||||||
Provision for income taxes | (70 | ) | (332 | ) | (81 | ) | (344 | ) | |||||||
Operating income from discontinued operations | 1,379 | 4,539 | 3,180 | 9,492 | |||||||||||
Gain on sale of property from discontinued operations | 78,012 | 31,264 | 78,012 | 34,898 | |||||||||||
Income from discontinued operations | $ | 79,391 | $ | 35,803 | $ | 81,192 | $ | 44,390 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Accrued property construction costs | $ | 5,864 | $ | 6,931 | |||
Property acquisitions and investments in unconsolidated real estate joint ventures: | |||||||
Increase (decrease) in property, net | 18,698 | (2,532 | ) | ||||
Increase in debt, net | 21,396 | — | |||||
Decrease in notes receivable from real estate joint ventures and partnerships | (3,636 | ) | — | ||||
(Decrease) increase in real estate joint ventures and partnerships - investments | (50 | ) | 968 | ||||
Increase in security deposits | 129 | — | |||||
Increase in noncontrolling interests | — | 1,116 | |||||
Sale of property and property interest: | |||||||
Decrease in property, net | — | (2,855 | ) | ||||
Decrease in real estate joint ventures and partnerships - investments | — | (95 | ) | ||||
Decrease in restricted deposits and mortgage escrows | — | (204 | ) | ||||
Decrease in debt, net due to debt assumption | — | (3,366 | ) | ||||
Decrease in security deposits | — | (11 | ) | ||||
Decrease in noncontrolling interests | — | (95 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Numerator: | |||||||||||||||
Continuing Operations: | |||||||||||||||
Income (loss) from continuing operations | $ | 24,522 | $ | (3,126 | ) | $ | 67,396 | $ | 10,485 | ||||||
Gain on sale of property | 265 | 84 | 407 | 524 | |||||||||||
Net income attributable to noncontrolling interests | (950 | ) | (1,087 | ) | (2,052 | ) | (2,221 | ) | |||||||
Dividends on preferred shares | (5,313 | ) | (8,869 | ) | (12,753 | ) | (17,738 | ) | |||||||
Redemption costs of preferred shares | (15,702 | ) | — | (17,944 | ) | — | |||||||||
Income (loss) from continuing operations attributable to common shareholders – basic and diluted | $ | 2,822 | $ | (12,998 | ) | $ | 35,054 | $ | (8,950 | ) | |||||
Discontinued Operations: | |||||||||||||||
Income from discontinued operations | $ | 79,391 | $ | 35,803 | $ | 81,192 | $ | 44,390 | |||||||
Net income attributable to noncontrolling interests | (36,792 | ) | (255 | ) | (37,157 | ) | (562 | ) | |||||||
Income from discontinued operations attributable to common shareholders – basic and diluted | $ | 42,599 | $ | 35,548 | $ | 44,035 | $ | 43,828 | |||||||
Denominator: | |||||||||||||||
Weighted average shares outstanding - basic | 121,286 | 120,661 | 121,172 | 120,571 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Share options and awards | 1,288 | — | 1,223 | — | |||||||||||
Weighted average shares outstanding - diluted | 122,574 | 120,661 | 122,395 | 120,571 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Share options (1) | 1,219 | 2,362 | 1,939 | 2,362 | |||||||
Operating partnership units | 1,555 | 1,582 | 1,556 | 1,583 | |||||||
Share options and awards | — | 1,034 | — | 991 | |||||||
Total anti-dilutive securities | 2,774 | 4,978 | 3,495 | 4,936 |
(1) | Exclusion results as exercise prices were greater than the average market price for each respective period. |
Six Months Ended June 30, 2013 | |||||
Minimum | Maximum | ||||
Dividend yield | 0.0 | % | 3.9 | % | |
Expected volatility | 13.2 | % | 29.0 | % | |
Expected life (in years) | NA | 3 | |||
Risk-free interest rate | 0.1 | % | 0.4 | % |
Unvested Restricted Share Awards | Weighted Average Grant Date Fair Value | |||||
Outstanding, January 1, 2013 | 496,571 | $ | 23.10 | |||
Granted: | ||||||
Service-based awards | 102,456 | 29.71 | ||||
Market-based awards relative to FTSE NAREIT U.S. Shopping Center Index | 44,580 | 31.83 | ||||
Market-based awards relative to three-year absolute TSR | 44,580 | 37.49 | ||||
Trust manager awards | 25,623 | 35.23 | ||||
Vested | (130,016 | ) | 23.18 | |||
Forfeited | (6,904 | ) | 26.65 | |||
Outstanding, June 30, 2013 | 576,890 | $ | 26.54 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||
Service cost | $ | 282 | $ | 391 | $ | 708 | $ | 782 | |||||||
Interest cost | 340 | 469 | 853 | 938 | |||||||||||
Expected return on plan assets | (539 | ) | (667 | ) | (1,353 | ) | (1,334 | ) | |||||||
Prior service cost | — | (35 | ) | — | (70 | ) | |||||||||
Recognized loss | 281 | 467 | 706 | 934 | |||||||||||
Total | $ | 364 | $ | 625 | $ | 914 | $ | 1,250 |
(1) | Effective January 1, 2012, our supplemental retirement plans were amended and designated as defined contribution plans. Prior years’ operating results were restated to conform to the current year presentation. This item had no impact on previously reported net income, earnings per share, the consolidated balance sheet or cash flows. |
June 30, 2013 | December 31, 2012 | ||||||
Maximum Risk of Loss (1) | $ | 88,028 | $ | 111,305 | |||
Assets held by VIEs | 235,791 | 257,374 | |||||
Assets held as collateral for debt | 228,425 | 246,486 |
(1) | The maximum risk of loss has been determined to be limited to our debt exposure for each real estate joint venture. |
June 30, 2013 | December 31, 2012 | ||||||
Investment in Real Estate Joint Ventures and Partnerships, net (1) | $ | 29,773 | $ | 29,628 | |||
Maximum Risk of Loss (2) | 32,453 | 32,990 |
(1) | The carrying amount of the investments represents our contributions to the real estate joint ventures net of any distributions made and our portion of the equity in earnings of the joint ventures. |
(2) | The maximum risk of loss has been determined to be limited to our debt exposure for each real estate joint venture. |
December 31, 2012 | ||||
Fair value of our equity interest before acquisition | $ | 3,825 | ||
Fair value of consideration transferred | 218,481 | (1) | ||
Amounts recognized for assets and liabilities assumed: | ||||
Assets: | ||||
Property | $ | 195,377 | ||
Unamortized debt and lease costs | 36,787 | |||
Restricted deposits and mortgage escrows | 395 | |||
Other, net | 3,742 | |||
Liabilities: | ||||
Debt, net | (46,923 | ) | (2) | |
Accounts payable and accrued expenses | (2,250 | ) | ||
Other, net | (5,899 | ) | ||
Total net assets | $ | 181,229 | ||
Acquisition costs (included in operating expenses) | $ | 1,391 | ||
Gain on acquisition | 1,869 |
(1) | Includes assumption of debt totaling $37.8 million. |
(2) | Represents the fair value of debt, which includes $6.3 million that was previously recorded. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Pro Forma 2013(1) | Pro Forma 2012(1) | Pro Forma 2013(1) | Pro Forma 2012(1) | ||||||||||||
Revenues | $ | 131,577 | $ | 122,698 | $ | 258,279 | $ | 241,636 | |||||||
Net income | 104,178 | 32,495 | 148,995 | 55,011 | |||||||||||
Net income attributable to common shareholders | 45,421 | 22,284 | 79,089 | 34,490 | |||||||||||
Earnings per share – basic | 0.37 | 0.18 | 0.65 | 0.29 | |||||||||||
Earnings per share – diluted | 0.37 | 0.18 | 0.65 | 0.29 |
(1) | There are no non-recurring pro forma adjustments included within or excluded from the amounts in the preceding table. |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at June 30, 2013 | ||||||||||||
Assets: | |||||||||||||||
Investments in grantor trusts | $ | 16,626 | $ | 16,626 | |||||||||||
Short-term investments | 899 | 899 | |||||||||||||
Derivative instruments: | |||||||||||||||
Interest rate contracts | $ | 13,620 | 13,620 | ||||||||||||
Total | $ | 17,525 | $ | 13,620 | $ | — | $ | 31,145 | |||||||
Liabilities: | |||||||||||||||
Derivative instruments: | |||||||||||||||
Interest rate contracts | $ | 537 | $ | 537 | |||||||||||
Deferred compensation plan obligations | $ | 16,626 | 16,626 | ||||||||||||
Total | $ | 16,626 | $ | 537 | $ | — | $ | 17,163 | |||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at December 31, 2012 | ||||||||||||
Assets: | |||||||||||||||
Investments in grantor trusts | $ | 16,030 | $ | 16,030 | |||||||||||
Derivative instruments: | |||||||||||||||
Interest rate contracts | $ | 9,926 | 9,926 | ||||||||||||
Total | $ | 16,030 | $ | 9,926 | $ | — | $ | 25,956 | |||||||
Liabilities: | |||||||||||||||
Derivative instruments: | |||||||||||||||
Interest rate contracts | $ | 768 | $ | 768 | |||||||||||
Deferred compensation plan obligations | $ | 16,030 | 16,030 | ||||||||||||
Total | $ | 16,030 | $ | 768 | $ | — | $ | 16,798 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value | Total Gains (Losses) (1) | |||||||||||||||
Property (2) | $ | 5,773 | $ | 13,906 | $ | 19,679 | $ | (2,971 | ) | ||||||||||
Investment in real estate joint ventures and partnerships (3) | 24,231 | 24,231 | (6,608 | ) | |||||||||||||||
Total | $ | — | $ | 30,004 | $ | 13,906 | $ | 43,910 | $ | (9,579 | ) |
(1) | Total gains (losses) are reflected throughout 2012 and exclude impairments on disposed assets because they are no longer held by us. |
(2) | In accordance with our policy of evaluating and recording impairments on the disposal of long-lived assets, property with a carrying amount of $22.4 million was written down to a fair value of $19.7 million less costs to sell of $.3 million, resulting in a loss of $3.0 million, which was included in earnings for the period. Management’s estimate of fair value of these properties was determined using a bona fide purchase offer for the Level 2 inputs. See the quantitative information about the significant unobservable inputs used for our Level 3 fair value measurements table below. |
(3) | Our net investment in real estate joint ventures and partnerships with a carrying amount of $30.8 million was written down to a fair value of $24.2 million, resulting in a loss of $6.6 million, which was included in earnings for the period. Management’s estimate of fair value of this investment was determined using the weighted average of the bona fide purchase offers received for the Level 2 inputs. |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Carrying Value | Fair Value Using Significant Unobservable Inputs (Level 3) | Carrying Value | Fair Value Using Significant Unobservable Inputs (Level 3) | ||||||||||||
Notes receivable from real estate joint ventures and partnerships | $ | 85,004 | $ | 87,265 | $ | 89,776 | $ | 93,572 | |||||||
Tax increment revenue bonds | 25,850 | 25,850 | 26,505 | 26,505 | |||||||||||
Debt: | |||||||||||||||
Fixed-rate debt | 2,103,023 | 2,161,712 | 1,992,599 | 2,094,122 | |||||||||||
Variable-rate debt | 247,739 | 257,927 | 211,431 | 223,759 |
Description | Fair Value at | Unobservable Inputs | Range | ||||||||||||||||||||
June 30, 2013 | December 31, 2012 | Minimum | Maximum | ||||||||||||||||||||
(in thousands) | Valuation Technique | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Property | $ | — | $ | 13,906 | Broker valuation estimate | Indicative bid (1) | |||||||||||||||||
Bona fide purchase offers | Contract price (1) | ||||||||||||||||||||||
Discounted cash flows | Discount rate | 10.0 | % | ||||||||||||||||||||
Capitalization rate | 9.3 | % | 9.5 | % | |||||||||||||||||||
Holding period (years) | 1 | ||||||||||||||||||||||
Expected future inflation rate (2) | 3.0 | % | |||||||||||||||||||||
Market rent growth rate (2) | 3.0 | % | |||||||||||||||||||||
Expense growth rate (2) | 3.0 | % | |||||||||||||||||||||
Vacancy rate (2) | 5.0 | % | |||||||||||||||||||||
Renewal rate (2) | 75.0 | % | |||||||||||||||||||||
Average market rent rate (2) | $ | 10.52 | |||||||||||||||||||||
Average leasing cost per square foot (2) | $ | 16.50 | |||||||||||||||||||||
Notes receivable from real estate joint ventures and partnerships | 87,265 | 93,572 | Discounted cash flows | Discount rate | 2.7 | % | 3.0 | % | |||||||||||||||
Tax increment revenue bonds | 25,850 | 26,505 | Discounted cash flows | Discount rate | 7.5 | % | 7.5 | % | |||||||||||||||
Expense growth rate | 1.0 | % | 1.0 | % | 2.0 | % | 4.0 | % | |||||||||||||||
Expected future inflation rate | 1.0 | % | 1.0 | % | 2.0 | % | 2.0 | % | |||||||||||||||
Fixed-rate debt | 2,161,712 | 2,094,122 | Discounted cash flows | Discount rate | 1.1 | % | 1.1 | % | 6.6 | % | 6.5 | % | |||||||||||
Variable-rate debt | 257,927 | 223,759 | Discounted cash flows | Discount rate | 1.3 | % | 1.4 | % | 5.0 | % | 5.0 | % |
(1) | These fair values were developed by third parties, subject to our corroboration for reasonableness. |
(2) | Only applies to one property valuation. |
June 30, | |||||
2013 | 2012 | ||||
Anchor (represents any tenant at least 10,000 square feet) | 97.7 | % | 97.3 | % | |
Non-Anchor | 88.6 | % | 87.8 | % | |
Total Occupancy | 94.2 | % | 93.4 | % |
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||
SPNOI Growth (1) | 5.0 | % | 4.4 | % |
(1) | See Non-GAAP Financial Measures for a definition of the measurement of SPNOI and a reconciliation to operating income within this section of Item 2. |
Number of Leases | Square Feet ('000's) | Average New Rent per Square Foot ($) | Average Prior Rent per Square Foot ($) | Average Cost of Tenant Improvements per Square Foot ($) | Change in Base Rent on Cash Basis | |||||||||||||||
Leasing Activity: | ||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
New leases (1) | 85 | 280 | $ | 19.71 | $ | 16.52 | $ | 22.11 | 19.3 | % | ||||||||||
Renewals | 221 | 798 | 14.15 | 13.72 | 0.20 | 3.2 | % | |||||||||||||
Not comparable spaces | 71 | 293 | — | — | — | — | % | |||||||||||||
Total | 377 | 1,371 | $ | 15.60 | $ | 14.45 | $ | 5.88 | 8.0 | % | ||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
New leases (1) | 152 | 426 | $ | 19.70 | $ | 17.35 | $ | 16.85 | 13.5 | % | ||||||||||
Renewals | 460 | 1,792 | 14.79 | 14.28 | 0.13 | 3.6 | % | |||||||||||||
Not comparable spaces | 146 | 523 | — | — | — | — | % | |||||||||||||
Total | 758 | 2,741 | $ | 15.73 | $ | 14.87 | $ | 3.34 | 5.8 | % |
(1) | Average lease commissions per square foot for the three and six months ended June 30, 2013 were $4.61 and $3.97, respectively. |
• | an increase in occupancy of .8% over 2012 primarily as a result of our disposition program and lack of new available retail space in the market; |
• | an increase of .8% in non-anchor shop (spaces less than 10,000 square feet) occupancy over 2012; |
• | an increase of 4.4% in SPNOI for the six months ended June 30, 2013 over the same period of 2012; and |
• | rental rate increases for 2013 of 5.8%. |
Three Months Ended June 30, | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
Revenues | $ | 131,577 | $ | 118,597 | $ | 12,980 | 10.9 | % | ||||||
Depreciation and amortization | 38,190 | 32,465 | 5,725 | 17.6 | ||||||||||
Operating expenses | 25,003 | 22,906 | 2,097 | 9.2 | ||||||||||
Real estate taxes, net | 15,444 | 13,976 | 1,468 | 10.5 | ||||||||||
Impairment loss | 165 | 2,536 | (2,371 | ) | (93.5 | ) | ||||||||
Interest and other income, net | 2,098 | 582 | 1,516 | 260.5 | ||||||||||
Equity in earnings (losses) of real estate joint ventures and partnerships,net | 4,729 | (15,695 | ) | 20,424 | 130.1 |
Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
Revenues | $ | 258,279 | $ | 233,213 | $ | 25,066 | 10.7 | % | ||||||
Depreciation and amortization | 76,895 | 64,731 | 12,164 | 18.8 | ||||||||||
Operating expenses | 49,452 | 44,520 | 4,932 | 11.1 | ||||||||||
Real estate taxes, net | 30,104 | 27,268 | 2,836 | 10.4 | ||||||||||
Impairment loss | 221 | 9,388 | (9,167 | ) | (97.6 | ) | ||||||||
General and administrative expenses | 12,861 | 14,685 | (1,824 | ) | (12.4 | ) | ||||||||
Interest expense, net | 46,175 | 59,359 | (13,184 | ) | (22.2 | ) | ||||||||
Gain on sale of real estate joint venture and partnerships interests | 11,592 | 5,562 | 6,030 | 108.4 | ||||||||||
Equity in earnings (losses) of real estate joint ventures and partnerships,net | 9,342 | (11,620 | ) | 20,962 | 180.4 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Gross interest expense | $ | 57,284 | $ | 61,397 | |||
Over-market mortgage adjustment | (10,005 | ) | (444 | ) | |||
Capitalized interest | (1,104 | ) | (1,594 | ) | |||
Total | $ | 46,175 | $ | 59,359 |
2013 remaining | $ | 26.6 | |
2014 | 108.9 | ||
2015 | 43.5 | ||
2016 | 97.1 | ||
2017 | 56.3 | ||
Thereafter | 129.2 | ||
Total | $ | 461.6 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Acquisitions | $ | 72,024 | $ | 122,241 | |||
Tenant Improvements | 14,626 | 22,345 | |||||
New Development | 8,595 | 15,853 | |||||
Redevelopment | 662 | 1,672 | |||||
Other | 7,477 | 7,712 | |||||
Total | $ | 103,384 | $ | 169,823 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Acquisition of real estate and land | $ | 54,753 | $ | 116,960 | |||
Development and capital improvements | 30,644 | 45,585 | |||||
Real estate joint ventures and partnerships - Investments | 17,698 | 7,129 | |||||
Notes Receivable from real estate joint ventures and partnerships - Advances for capital expenditures | 289 | 149 | |||||
Total | $ | 103,384 | $ | 169,823 |
Covenant | Restriction | Actual | ||
Debt to Asset Ratio | Less than 60.0% | 46.9% | ||
Secured Debt to Asset Ratio | Less than 40.0% | 16.2% | ||
Annual Service Charge Ratio | Greater than 1.5 | 3.2 | ||
Unencumbered Asset Test | Greater than 150% | 215.8% |
Remaining | |||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||||||||
Mortgages and Notes Payable (1) | |||||||||||||||||||||||||||
Unsecured Debt | $ | 166,348 | $ | 358,059 | $ | 127,930 | $ | 112,139 | $ | 55,175 | $ | 984,821 | $ | 1,804,472 | |||||||||||||
Secured Debt | 62,706 | 204,556 | 219,344 | 174,922 | 132,788 | 177,538 | 971,854 | ||||||||||||||||||||
Lease Payments | 1,887 | 3,523 | 3,307 | 3,137 | 2,917 | 133,082 | 147,853 | ||||||||||||||||||||
Other Obligations (2) | 23,436 | 33,975 | 25 | 25 | — | — | 57,461 | ||||||||||||||||||||
Total Contractual Obligations | $ | 254,377 | $ | 600,113 | $ | 350,606 | $ | 290,223 | $ | 190,880 | $ | 1,295,441 | $ | 2,981,640 |
(1) | Includes principal and interest with interest on variable-rate debt calculated using rates at June 30, 2013, excluding the effect of interest rate swaps. Also, excludes a $74.1 million debt service guaranty liability. |
(2) | Other obligations include income and real estate tax payments, commitments associated with our secured debt and other employee payments. Contributions to our retirement plan are fully funded for 2013 and, therefore, are excluded from the above table. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||
Net income attributable to common shareholders | $ | 45,421 | $ | 22,550 | $ | 79,089 | $ | 34,878 | |||||||
Depreciation and amortization | 37,511 | 33,321 | 76,182 | 70,940 | |||||||||||
Depreciation and amortization of unconsolidated real estate joint ventures and partnerships | 4,434 | 5,363 | 8,927 | 11,007 | |||||||||||
Impairment of operating properties and real estate equity investments | 165 | 5,051 | 457 | 14,830 | |||||||||||
Impairment of operating properties of unconsolidated real estate joint ventures and partnerships | 3 | 19,889 | 366 | 19,889 | |||||||||||
Gain on sale of property and interests in real estate equity investments | (41,906 | ) | (31,334 | ) | (53,553 | ) | (40,907 | ) | |||||||
Gain on sale of property of unconsolidated real estate joint ventures and partnerships | — | (123 | ) | (243 | ) | (123 | ) | ||||||||
Funds from operations – basic | 45,628 | 54,717 | 111,225 | 110,514 | |||||||||||
Income attributable to operating partnership units | 446 | 432 | 891 | 863 | |||||||||||
Funds from operations – diluted | $ | 46,074 | $ | 55,149 | $ | 112,116 | $ | 111,377 | |||||||
Weighted average shares outstanding – basic | 121,286 | 120,661 | 121,172 | 120,571 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Share options and awards | 1,288 | 1,034 | 1,223 | 991 | |||||||||||
Operating partnership units | 1,555 | 1,582 | 1,556 | 1,583 | |||||||||||
Weighted average shares outstanding – diluted (2) | 124,129 | 123,277 | 123,951 | 123,145 | |||||||||||
Funds from operations per share – basic | $ | 0.38 | $ | 0.45 | $ | 0.92 | $ | 0.92 | |||||||
Funds from operations per share – diluted | $ | 0.37 | $ | 0.45 | $ | 0.90 | $ | 0.90 |
(1) | Prior years’ results were restated to conform to the current year presentation by applying NAREIT's methodology regarding operating partnership units. |
(2) | The weighted average common shares used to compute FFO per diluted common share includes operating partnership units that were excluded from the computation of diluted earnings per share. Conversion of these operating partnership units is dilutive in the computation of FFO per diluted common share, but is anti-dilutive for the computation of diluted earnings per share for the periods presented. |
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||
Beginning of the period | 275 | 261 | |||
Properties added: | |||||
Acquisitions | — | 7 | |||
New Developments | — | 8 | |||
Redevelopments | — | 3 | |||
Properties removed: | |||||
Dispositions | (10 | ) | (14 | ) | |
Other | (2 | ) | (2 | ) | |
Redevelopments | — | — | |||
End of the period | 263 | 263 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Operating Income | $ | 46,581 | $ | 40,336 | $ | 88,746 | $ | 72,621 | |||||||
Less: | |||||||||||||||
Revenue adjustments (1) | 3,576 | 2,618 | 5,959 | 5,218 | |||||||||||
Add: | |||||||||||||||
Property management fees | 743 | 635 | 1,731 | 1,511 | |||||||||||
Depreciation and amortization | 38,190 | 32,465 | 76,895 | 64,731 | |||||||||||
Impairment loss | 165 | 2,536 | 221 | 9,388 | |||||||||||
General and administrative | 6,194 | 6,378 | 12,861 | 14,685 | |||||||||||
Acquisition costs | 125 | 156 | 410 | 492 | |||||||||||
Other (2) | (428 | ) | 248 | (219 | ) | 372 | |||||||||
Net Operating Income | 87,994 | 80,136 | 174,686 | 158,582 | |||||||||||
Less: NOI related to consolidated entities not defined as same property and noncontrolling interests | (9,929 | ) | (6,066 | ) | (19,067 | ) | (9,921 | ) | |||||||
Add: Pro rata share of unconsolidated entities defined as same property | 10,499 | 10,266 | 20,946 | 20,513 | |||||||||||
Same Property Net Operating Income | $ | 88,564 | $ | 84,336 | $ | 176,565 | $ | 169,174 |
(1) | Revenue adjustments consist primarily of straight-line rentals, lease cancellation income and fee income primarily from real estate joint ventures and partnerships. |
(2) | Other includes items such as environmental abatement costs and demolition expenses. |
WEINGARTEN REALTY INVESTORS | ||
(Registrant) | ||
By: | /s/ Andrew M. Alexander | |
Andrew M. Alexander | ||
President and Chief Executive Officer | ||
By: | /s/ Joe D. Shafer | |
Joe D. Shafer | ||
Senior Vice President/Chief Accounting Officer | ||
(Principal Accounting Officer) |
(a) | Exhibits: | |
31.1* | — | Certification pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer). |
31.2* | — | Certification pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 (Chief Financial Officer). |
32.1** | — | Certification pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer). |
32.2** | — | Certification pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002 (Chief Financial Officer). |
101.INS** | — | XBRL Instance Document |
101.SCH** | — | XBRL Taxonomy Extension Schema Document |
101.CAL** | — | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF** | — | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB** | — | XBRL Taxonomy Extension Labels Linkbase Document |
101.PRE** | — | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed with this report. |
** | Furnished with this report. |
BY: | /s/ Andrew M. Alexander | |
Andrew M. Alexander | ||
President/Chief Executive Officer |
BY: | /s/ Stephen C. Richter | |
Stephen C. Richter | ||
Executive Vice President/Chief Financial Officer |
BY: | /s/ Andrew M. Alexander | |
Andrew M. Alexander | ||
President/Chief Executive Officer |
BY: | /s/ Stephen C. Richter | |
Stephen C. Richter | ||
Executive Vice President/Chief Financial Officer |
Fair Value Measurements (Quantitative Information About Significant Unobservable Inputs (Level 3) Used) (Details) (USD $)
|
6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
||||||
Impaired Property [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Property | $ 19,679,000 | [1] | |||||
Significant Unobservable Inputs (Level 3) [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Notes receivable from real estate joint ventures and partnerships | 87,265,000 | 93,572,000 | |||||
Tax increment revenue bonds | 25,850,000 | 26,505,000 | |||||
Significant Unobservable Inputs (Level 3) [Member] | Fixed-Rate Debt [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Debt | 2,161,712,000 | 2,094,122,000 | |||||
Significant Unobservable Inputs (Level 3) [Member] | Variable-Rate Debt [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Debt | 257,927,000 | 223,759,000 | |||||
Significant Unobservable Inputs (Level 3) [Member] | Impaired Property [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Property | 0 | 13,906,000 | [1] | ||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Fixed-Rate Debt [Member] | Minimum [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Discount Rate | 1.10% | 1.10% | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Fixed-Rate Debt [Member] | Maximum [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Discount Rate | 6.60% | 6.50% | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Variable-Rate Debt [Member] | Minimum [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Discount Rate | 1.30% | 1.40% | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Variable-Rate Debt [Member] | Maximum [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Discount Rate | 5.00% | 5.00% | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Notes Receivable From Real Estate Joint Ventures And Partnerships [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Discount Rate | 2.70% | 3.00% | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Tax Increment Revenue Bonds [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Discount Rate | 7.50% | 7.50% | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Tax Increment Revenue Bonds [Member] | Minimum [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Expected Future Inflation Rate | 1.00% | 1.00% | |||||
Fair Value Input, Expected Future Growth Rate | 1.00% | 1.00% | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Tax Increment Revenue Bonds [Member] | Maximum [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Expected Future Inflation Rate | 2.00% | 2.00% | |||||
Fair Value Input, Expected Future Growth Rate | 2.00% | 4.00% | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Impaired Property [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Discount Rate | 10.00% | ||||||
Fair Value Input, Holding Period (Years) | 1 year | ||||||
Fair Value Input, Expected Future Inflation Rate | 3.00% | [2] | |||||
Fair Value Input, Market Rent Growth Rate | 3.00% | [2] | |||||
Fair Value Input, Expense Growth Rate | 3.00% | [2] | |||||
Fair Value Input, Vacancy Rate | 5.00% | [2] | |||||
Fair Value Input, Renewal Rate | 75.00% | [2] | |||||
Fair Value Input, Market Rent Rate | 10.52 | [2] | |||||
Fair Value Input, Leasing Costs Per Square Foot | $ 16.50 | [2] | |||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Impaired Property [Member] | Minimum [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Market Capitalization Rate | 9.30% | ||||||
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flows [Member] | Impaired Property [Member] | Maximum [Member]
|
|||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Fair Value Input, Market Capitalization Rate | 9.50% | ||||||
|
Commitments And Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | 6 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2012
jvs
|
Jun. 30, 2013
partnerships
|
Dec. 31, 2012
|
Jun. 30, 2013
Capital Additions [Member]
|
Jun. 30, 2013
Capital Additions [Member]
Minimum [Member]
|
Jun. 30, 2013
Capital Additions [Member]
Maximum [Member]
|
Jun. 30, 2013
Noncontrolling Interests [Member]
|
Jun. 30, 2012
Noncontrolling Interests [Member]
|
Jun. 30, 2013
Consoldiated Real Estate Joint Ventures [Member]
jvs
|
Jun. 30, 2013
Unconsolidated Real Estate Joint Ventures [Member]
jvs
|
|
Long-term Purchase Commitment [Line Items] | ||||||||||
Number of DownREITS | 4 | |||||||||
Shares issued in exchange for noncontrolling interests | $ 0 | $ 0 | ||||||||
Aggregate redemption value of interests | 48 | 42 | ||||||||
Number of real estate joint ventures | 3 | 1 | 2 | |||||||
Construction contract commitment | $ 68.7 | |||||||||
Construction contract period, months | 12 | 36 |
Variable Interest Entities (Summary Of Consoldiated Variable Interest Entities) (Details) (Consolidated Variable Interest Entities [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
||||
---|---|---|---|---|---|---|
Consolidated Variable Interest Entities [Member]
|
||||||
Variable Interest Entity [Line Items] | ||||||
Maximum Risk of Loss | $ 88,028 | [1] | $ 111,305 | [1] | ||
Assets held by VIEs | 235,791 | 257,374 | ||||
Assets held as collateral for debt | $ 228,425 | $ 246,486 | ||||
|
Impairment
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Asset Impairment Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment | Impairment The following impairment charges were recorded on the following assets based on the difference between the carrying amount of the assets and the estimated fair value (see Note 19 for additional fair value information) (in thousands):
_______________
|
Debt (Schedule Of Debt) (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|||||
Debt Instrument [Line Items] | ||||||
Unsecured notes payable under credit facilities | $ 104,500 | $ 66,000 | ||||
Debt service guaranty liability | 74,075 | 74,075 | ||||
Obligations under capital leases | 21,000 | 21,000 | ||||
Total | 2,350,762 | [1] | 2,204,030 | [1] | ||
Debt Payable To 2038 [Member]
|
||||||
Debt Instrument [Line Items] | ||||||
Debt payable to 2038 at 2.6% to 8.6% in 2013 and 2.6% to 8.8% in 2012 | 2,150,132 | 2,041,709 | ||||
Debt maturity date | Dec. 23, 2038 | Dec. 23, 2038 | ||||
Debt Payable To 2038 [Member] | Minimum [Member]
|
||||||
Debt Instrument [Line Items] | ||||||
Debt stated interest rate | 2.60% | 2.60% | ||||
Debt Payable To 2038 [Member] | Maximum [Member]
|
||||||
Debt Instrument [Line Items] | ||||||
Debt stated interest rate | 8.60% | 8.80% | ||||
Industrial Revenue Bonds Payable To 2015 [Member]
|
||||||
Debt Instrument [Line Items] | ||||||
Industrial revenue bonds payable to 2015 at 2.4% | $ 1,055 | $ 1,246 | ||||
Debt maturity date | Dec. 01, 2015 | Dec. 01, 2015 | ||||
Debt stated interest rate | 2.40% | 2.40% | ||||
|
Newly Issued Accounting Pronouncements
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Newly Issued Accounting Pronouncements [Abstract] | |
Newly Issued Accounting Pronouncements | Newly Issued Accounting Pronouncements In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” which requires entities to provide new disclosures about offsetting and related arrangements for financial instruments and derivatives. The provisions of ASU No. 2011-11 were effective for us on January 1, 2013, and were required to be applied retrospectively. The adoption of this ASU did not materially impact our consolidated financial statements, but required additional disclosures. In January 2013, the FASB issued ASU No. 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," which amends the scope of ASU No. 2011-11 to apply only to entities with derivatives accounted for in accordance with Accounting Standard Code 815. The provisions of ASU No. 2013-01 were effective for us on January 1, 2013, and were required to be applied retrospectively. The adoption of this ASU did not materially impact our consolidated financial statements. In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income if it is required to be reclassified to net income in its entirety. For other reclassified amounts, an entity is required cross-reference to other disclosures that provide additional detail about those amounts. The provisions of ASU No. 2013-02 were effective for us on January 1, 2013, and have been applied prospectively. The adoption of this ASU did not materially impact our consolidated financial statements, but required additional disclosures. In February 2013, the FASB issued ASU No. 2013-04, "Obligations Resulting From Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date." This ASU requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, as the sum of (1) the amount the reporting entity has agreed to pay in accordance to the arrangement and (2) any additional amounts the reporting entity expects to pay on behalf of its co-obligors. Additional disclosures on the nature and amounts of the obligation will also be required. The provisions of ASU No. 2013-04 are effective for us on January 1, 2014, and are required to be applied retrospectively. We do not expect the adoption of this update to have a material impact on our consolidated financial statements. In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." This ASU amends current GAAP to require entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for net operating loss or other tax credit carryforwards when settlement is available under the tax law. The provisions of ASU 2013-11 are effective for us on January 1, 2014, and are required to be applied to all unrecognized tax benefits in existence. Retrospective application may be applied to prior reporting periods presented. We do not expect the adoption of this update to have a material impact on our consolidated financial statements. |
Commitments And Contingencies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies As of June 30, 2013, we participate in four real estate ventures structured as DownREIT partnerships that have properties in Arkansas, California, North Carolina, Texas and Utah. As a general partner, we have operating and financial control over these ventures and consolidate them in our consolidated financial statements. These ventures allow the outside limited partners to put their interest in the partnership to us in exchange for our common shares or an equivalent amount in cash. We may acquire any limited partnership interests that are put to the partnership, and we have the option to redeem the interest in cash or a fixed number of our common shares, at our discretion. We also participate in a real estate venture that has a property in Texas that allows its outside partner to put operating partnership units to us. We have the option to redeem these units in cash or a fixed number of our common shares, at our discretion. No common shares were issued in exchange for any of these interests during the six months ended June 30, 2013 and 2012. The aggregate redemption value of these interests was approximately $48 million and $42 million as of June 30, 2013 and December 31, 2012, respectively. We are subject to numerous federal, state and local environmental laws, ordinances and regulations in the areas where we own or operate properties. We are not aware of any contamination which may have been caused by us or any of our tenants that would have a material effect on our consolidated financial statements. As part of our risk management activities, we have applied and been accepted into state sponsored environmental programs which will limit our expenses if contaminants need to be remediated. We also have an environmental insurance policy that covers us against third party liabilities and remediation costs. While we believe that we do not have any material exposure to environmental remediation costs, we cannot give absolute assurance that changes in the law or new discoveries of contamination will not result in additional liabilities to us. During 2011, we filed a lawsuit against our joint venture partner in connection with a development project in Sheridan, Colorado for failure to perform on the joint venture’s past due intercompany note payable to us, which has been eliminated within our consolidated financial statements. We are also involved in one consolidated and two unconsolidated joint ventures with this partner. We are currently in negotiations with our partner; however, we are unable to determine the outcome of the lawsuit or its potential effects on our other joint ventures with this partner. As of June 30, 2013, we have entered into commitments aggregating $68.7 million comprised principally of construction contracts which are generally due in 12 to 36 months. We are also involved in various matters of litigation arising in the normal course of business. While we are unable to predict the amounts involved, our management and counsel are of the opinion that, when such litigation is resolved, any additional liability, if any, will not have a material effect on our consolidated financial statements. |
Debt (Principal Payments Of Debt) (Details) (USD $)
|
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2013
|
||||
Debt Instrument [Line Items] | ||||
2013 remaining | $ 149,879,000 | |||
2014 | 474,020,000 | |||
2015 | 275,678,000 | |||
2016 | 226,027,000 | |||
2017 | 141,864,000 | |||
2018 | 64,157,000 | |||
2019 | 153,380,000 | [1] | ||
2020 | 3,342,000 | |||
2021 | 2,278,000 | |||
2022 | 304,815,000 | |||
Thereafter | 348,264,000 | |||
Total | 2,143,704,000 | |||
8.1% Senior Unsecured Notes [Member]
|
||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes | $ 100,000,000 | |||
Debt stated interest rate | 8.10% | |||
Debt maturity date | Sep. 15, 2019 | |||
Debt redemption date option | 9/15/2014 | |||
|
Discontinued Operations
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations For the six months ended June 30, 2013, we sold 10 centers of which five properties were located in Texas, two in Florida and one each in Nevada, New Mexico and Tennessee. As of June 30, 2013, we classified one property as held for sale that consisted of property and accumulated depreciation totaling $11.8 million and $3.1 million, respectively. During 2012, we sold 27 shopping centers, 54 industrial properties, and we assigned a 75% consolidated joint venture interest to our partner. Of these dispositions, 55 were located in Texas, six each in Florida and Georgia, three in North Carolina, two each in Colorado, Louisiana and Virginia and one each in Arizona, Illinois, Kansas, Maine, Oklahoma and Tennessee. As part of these 2012 dispositions, we sold, in May 2012, a portfolio of 52 wholly-owned industrial properties in order to exit the industrial real estate market and further align and strengthen our position solely as a retail REIT. As of December 31, 2012, no property was classified as held for sale. Included in the Condensed Consolidated Balance Sheet at December 31, 2012 was $126.2 million of property and $50.9 million of accumulated depreciation related to the 10 properties that were sold during 2013, as well as the one property classified as held for sale. The operating results of these properties, which includes the one property held for sale, have been reclassified and reported as discontinued operations in the Condensed Consolidated Statements of Operations and Comprehensive Income as follows (in thousands):
We do not allocate other consolidated interest to discontinued operations because the interest savings to be realized from the proceeds of the sale of these operations is not material. |
Investment In Real Estate Joint Ventures And Partnerships (Narrative) (Details) (USD $)
|
1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2012
jvs
|
Feb. 29, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
property
|
Jun. 30, 2012
|
Dec. 31, 2012
|
Nov. 30, 2012
Minimum [Member]
|
Nov. 30, 2012
Maximum [Member]
|
Jun. 30, 2013
Unconsolidated Real Estate Joint Ventures [Member]
|
Jun. 30, 2012
Unconsolidated Real Estate Joint Ventures [Member]
|
Jun. 30, 2013
Unconsolidated Real Estate Joint Ventures [Member]
property
jvs
|
Jun. 30, 2012
Unconsolidated Real Estate Joint Ventures [Member]
|
Jun. 30, 2013
Unconsolidated Real Estate Joint Ventures [Member]
Minimum [Member]
|
Dec. 31, 2012
Unconsolidated Real Estate Joint Ventures [Member]
Minimum [Member]
|
Jun. 30, 2013
Unconsolidated Real Estate Joint Ventures [Member]
Maximum [Member]
|
Dec. 31, 2012
Unconsolidated Real Estate Joint Ventures [Member]
Maximum [Member]
|
Aug. 06, 2012
Tenancy In Common [Member]
|
Jun. 30, 2013
Tenancy In Common [Member]
jvs
|
Jun. 30, 2013
Industrial Properties [Member]
Unconsolidated Real Estate Joint Ventures [Member]
property
|
Dec. 31, 2012
Industrial Properties [Member]
Unconsolidated Real Estate Joint Ventures [Member]
property
|
Jun. 30, 2013
Shopping Centers [Member]
Unconsolidated Real Estate Joint Ventures [Member]
property
|
|
Investment In Real Estate Joint Ventures And Partnerships [Line Items] | ||||||||||||||||||||||
Ownership percentage in joint ventures | 47.80% | 75.00% | 20.00% | 50.00% | 51.00% | 51.00% | 20.00% | 10.00% | 75.00% | 75.00% | 79.60% | 10.00% | ||||||||||
Number of real estate joint ventures | 3 | 2 | 2 | |||||||||||||||||||
Net basis differentials for investments | $ 6,000,000 | $ 6,000,000 | $ 1,600,000 | |||||||||||||||||||
Impairment loss | 165,000 | 2,536,000 | 221,000 | 9,388,000 | 13,000 | 96,498,000 | 1,828,000 | 96,498,000 | ||||||||||||||
Management fees revenue, related parties | 1,400,000 | 1,600,000 | 2,800,000 | 3,300,000 | ||||||||||||||||||
Number of operating properties sold | 10 | 4 | 2 | 19 | 2 | |||||||||||||||||
Gain on sale of real estate joint venture and partnership interests | 8,600,000 | 3,500,000 | 83,000 | 0 | 11,592,000 | 5,562,000 | 11,500,000 | |||||||||||||||
Acquisition of unconsolidated real estate joint venture interests | 16,500,000 | 29,600,000 | ||||||||||||||||||||
Assumption of debt | 24,500,000 | |||||||||||||||||||||
Proceeds from sale of unconsolidated real estate joint venture, gross | $ 20,900,000 | $ 29,100,000 | $ 11,700,000 | $ 8,900,000 | $ 210,400,000 |
Business Combinations (Narrative) (Details)
|
6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
property
|
Dec. 31, 2012
|
Feb. 29, 2012
|
Aug. 06, 2012
Tenancy In Common [Member]
|
Dec. 31, 2012
Shopping Center [Member]
property
|
|
Business Acquisition [Line Items] | |||||
Number of operating properties acquired | 2 | 4 | |||
Ownership percentage in joint ventures | 75.00% | 47.80% | 79.60% |
Share Options And Awards (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Market-Based Share Awards Assumptions | The fair value of the market-based share awards was estimated on the date of grant using a Monte Carlo valuation model based on the following assumptions:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Status Of Unvested Restricted Share Awards | A summary of the status of unvested restricted share awards for the six months ended June 30, 2013 is as follows:
|
Fair Value Measurements
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements: Assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012, aggregated by the level in the fair value hierarchy in which those measurements fall, are as follows (in thousands):
Nonrecurring Fair Value Measurements: Property Impairments Property is reviewed for impairment if events or changes in circumstances indicate that the carrying amount of the property, including any identifiable intangible assets, site costs and capitalized interest, may not be recoverable. In such an event, a comparison is made of the current and projected operating cash flows of each such property into the foreseeable future on an undiscounted basis to the carrying amount of such property. If we conclude that an impairment may have occurred, estimated fair values are determined by management utilizing cash flow models, market capitalization rates and market discount rates, or by obtaining third-party broker valuation estimates, appraisals, bona fide purchase offers or the expected sales price of an executed sales agreement in accordance with our fair value measurements accounting policy. Market capitalization rates and market discount rates are determined by reviewing current sales of similar properties and transactions, and utilizing management’s knowledge and expertise in property marketing. Investments in Real Estate Joint Ventures and Partnerships Impairments The fair value of our investment in partially owned real estate joint ventures and partnerships is estimated by management based on a number of factors, including the performance of each investment, the life and other terms of the investment, holding periods, market conditions, cash flow models, market capitalization rates and market discount rates, or by obtaining third-party broker valuation estimates, appraisals and bona fide purchase offers in accordance with our fair value measurements accounting policy. Market capitalization rates and market discount rates are determined by reviewing current sales of similar properties and transactions, and utilizing management’s knowledge and expertise in property marketing. We recognize an impairment loss if we determine the fair value of an investment is less than its carrying amount and that loss in value is other than temporary. No assets were measured at fair value on a nonrecurring basis at June 30, 2013. Assets measured at fair value on a nonrecurring basis at December 31, 2012, aggregated by the level in the fair value hierarchy in which those measurements fall, are as follows (in thousands):
_______________
Fair Value Disclosures: Unless otherwise described below, short-term financial instruments and receivables are carried at amounts which approximate their fair values based on their highly-liquid nature, short-term maturities and/or expected interest rates for similar instruments. Schedule of our fair value disclosures is as follows (in thousands):
The quantitative information about the significant unobservable inputs used for our Level 3 fair value measurements as of June 30, 2013 and December 31, 2012 reported in the above tables, is as follows:
_______________
|
Business Combinations
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations During 2012, we acquired four shopping centers located in California, Georgia, Maryland and Texas, and we consolidated a partner's 79.6% interest in an unconsolidated tenancy-in-common arrangement related to a property in Louisiana. The following table summarizes the transactions related to these acquisitions, including the assets acquired and liabilities assumed as indicated (in thousands):
_______________
The following table summarizes the pro forma impact of these transactions as if they had been consolidated or acquired on January 1, 2012, the earliest year presented, as follows (in thousands, except per share amounts):
_______________
|
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