MARYLAND | 13-6908486 | |
(State of other jurisdiction of incorporation or organization) | (I.R.S Employer Identification Numbers) | |
31500 Northwestern Highway, Suite 300 Farmington Hills, Michigan | 48334 | |
(Address of principal executive offices) | (Zip Code) |
248-350-9900 |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page No. | ||
Condensed Consolidated Balance Sheets – March 31, 2016 (unaudited) and December 31, 2015 | ||
Three Months Ended March 31, 2016 and 2015 (unaudited) | ||
Condensed Consolidated Statement of Shareholders’ Equity - Three Months Ended March 31, 2016 (unaudited) | ||
Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2016 and 2015 (unaudited) | ||
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except per share amounts) | |||||||
March 31, 2016 | December 31, 2015 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Income producing properties, at cost: | |||||||
Land | $ | 391,539 | $ | 392,352 | |||
Buildings and improvements | 1,786,756 | 1,792,129 | |||||
Less accumulated depreciation and amortization | (340,628 | ) | (331,520 | ) | |||
Income producing properties, net | 1,837,667 | 1,852,961 | |||||
Construction in progress and land available for development or sale | 65,831 | 60,166 | |||||
Real estate held for sale | — | 453 | |||||
Net real estate | 1,903,498 | 1,913,580 | |||||
Equity investments in unconsolidated joint ventures | 4,365 | 4,325 | |||||
Cash and cash equivalents | 3,655 | 6,644 | |||||
Restricted cash | 8,729 | 8,708 | |||||
Accounts receivable (net of allowance for doubtful accounts of $3,468 and $2,790 as of March 31, 2016 and December 31, 2015, respectively) | 17,317 | 18,705 | |||||
Acquired lease intangibles, net | 83,394 | 88,819 | |||||
Other assets, net | 85,809 | 87,890 | |||||
TOTAL ASSETS | $ | 2,106,767 | $ | 2,128,671 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Notes payable, net | $ | 1,077,582 | $ | 1,083,711 | |||
Capital lease obligation | 1,108 | 1,108 | |||||
Accounts payable and accrued expenses | 38,225 | 44,480 | |||||
Acquired lease intangibles, net | 62,773 | 64,193 | |||||
Other liabilities | 13,169 | 10,035 | |||||
Distributions payable | 18,823 | 18,807 | |||||
TOTAL LIABILITIES | 1,211,680 | 1,222,334 | |||||
Commitments and Contingencies | |||||||
Ramco-Gershenson Properties Trust ("RPT") Shareholders' Equity: | |||||||
Preferred shares, $0.01 par, 2,000 shares authorized: 7.25% Series D Cumulative Convertible Perpetual Preferred Shares, (stated at liquidation preference $50 per share), 1,849 shares issued and outstanding as of March 31, 2016 and December 31, 2015. | $ | 92,427 | $ | 92,427 | |||
Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 79,232 and 79,162 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 792 | 792 | |||||
Additional paid-in capital | 1,156,555 | 1,156,345 | |||||
Accumulated distributions in excess of net income | (370,497 | ) | (363,937 | ) | |||
Accumulated other comprehensive loss | (6,064 | ) | (1,404 | ) | |||
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT | 873,213 | 884,223 | |||||
Noncontrolling interest | 21,874 | 22,114 | |||||
TOTAL SHAREHOLDERS' EQUITY | 895,087 | 906,337 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,106,767 | $ | 2,128,671 |
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||
(In thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
REVENUE | |||||||
Minimum rent | $ | 48,396 | $ | 43,351 | |||
Percentage rent | 302 | 353 | |||||
Recovery income from tenants | 16,746 | 14,322 | |||||
Other property income | 958 | 859 | |||||
Management and other fee income | 110 | 532 | |||||
TOTAL REVENUE | 66,512 | 59,417 | |||||
EXPENSES | |||||||
Real estate taxes | 10,308 | 8,995 | |||||
Recoverable operating expense | 8,080 | 7,278 | |||||
Other non-recoverable operating expense | 1,394 | 713 | |||||
Depreciation and amortization | 23,847 | 20,363 | |||||
Acquisition costs | 59 | 42 | |||||
General and administrative expense | 5,605 | 4,874 | |||||
Provision for impairment | — | 2,521 | |||||
TOTAL EXPENSES | 49,293 | 44,786 | |||||
OPERATING INCOME | 17,219 | 14,631 | |||||
OTHER INCOME AND EXPENSES | |||||||
Other expense, net | (347 | ) | (218 | ) | |||
Gain on sale of real estate | 6,525 | 3,196 | |||||
Earnings from unconsolidated joint ventures | 109 | 2,660 | |||||
Interest expense | (10,922 | ) | (9,969 | ) | |||
Amortization of deferred financing fees | (380 | ) | (334 | ) | |||
INCOME BEFORE TAX | 12,204 | 9,966 | |||||
Income tax provision | (62 | ) | (22 | ) | |||
NET INCOME | 12,142 | 9,944 | |||||
Net income attributable to noncontrolling partner interest | (297 | ) | (277 | ) | |||
NET INCOME ATTRIBUTABLE TO RPT | 11,845 | 9,667 | |||||
Preferred share dividends | (1,675 | ) | (1,812 | ) | |||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 10,170 | $ | 7,855 | |||
EARNINGS PER COMMON SHARE | |||||||
Basic | $ | 0.13 | $ | 0.10 | |||
Diluted | $ | 0.13 | $ | 0.10 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||||
Basic | 79,194 | 77,925 | |||||
Diluted | 79,372 | 78,128 | |||||
OTHER COMPREHENSIVE INCOME | |||||||
Net income | $ | 12,142 | $ | 9,944 | |||
Other comprehensive loss: | |||||||
Loss on interest rate swaps | (4,777 | ) | (1,465 | ) | |||
Comprehensive income | 7,365 | 8,479 | |||||
Comprehensive income attributable to noncontrolling interest (2015 as revised) | (180 | ) | (236 | ) | |||
COMPREHENSIVE INCOME ATTRIBUTABLE TO RPT (2015 AS REVISED) | $ | 7,185 | $ | 8,243 |
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
For the Three Months Ended March 31, 2016 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Shareholders' Equity of Ramco-Gershenson Properties Trust | |||||||||||||||||||||||||||
Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Distributions in Excess of Net Income | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total Shareholders’ Equity | |||||||||||||||||||||
Balance, December 31, 2015 | $ | 92,427 | $ | 792 | $ | 1,156,345 | $ | (363,937 | ) | $ | (1,404 | ) | $ | 22,114 | $ | 906,337 | |||||||||||
Share-based compensation and other expense, net of shares withheld for employee taxes | — | — | 210 | — | — | — | 210 | ||||||||||||||||||||
Dividends declared to common shareholders | — | — | — | (16,639 | ) | — | — | (16,639 | ) | ||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | (1,675 | ) | — | — | (1,675 | ) | ||||||||||||||||||
Distributions declared to noncontrolling interests | — | — | — | — | — | (420 | ) | (420 | ) | ||||||||||||||||||
Dividends declared to deferred shares | — | — | — | (91 | ) | — | — | (91 | ) | ||||||||||||||||||
Other comprehensive income adjustment | — | — | — | — | (4,660 | ) | (117 | ) | (4,777 | ) | |||||||||||||||||
Net income | — | — | — | 11,845 | — | 297 | 12,142 | ||||||||||||||||||||
Balance, March 31, 2016 | $ | 92,427 | $ | 792 | $ | 1,156,555 | $ | (370,497 | ) | $ | (6,064 | ) | $ | 21,874 | $ | 895,087 |
RAMCO GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 12,142 | $ | 9,944 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 23,847 | 20,363 | |||||
Amortization of deferred financing fees | 380 | 334 | |||||
Income tax provision | 62 | 22 | |||||
Earnings from unconsolidated joint ventures | (109 | ) | (2,660 | ) | |||
Distributions received from operations of unconsolidated joint ventures | 58 | 567 | |||||
Provision for impairment | — | 2,521 | |||||
Gain on sale of real estate | (6,525 | ) | (3,196 | ) | |||
Amortization of premium on mortgages, net | (468 | ) | (429 | ) | |||
Share-based compensation expense | 641 | 525 | |||||
Long-term incentive cash compensation expense | 409 | 262 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | 1,388 | (1,195 | ) | ||||
Acquired lease intangibles and other assets, net | 1,602 | 2,066 | |||||
Accounts payable, acquired lease intangibles and other liabilities | (7,092 | ) | (9,790 | ) | |||
Net cash provided by operating activities | 26,335 | 19,334 | |||||
INVESTING ACTIVITIES | |||||||
Acquisition of real estate | — | (1,475 | ) | ||||
Development and capital improvements | (17,306 | ) | (12,316 | ) | |||
Net proceeds from sales of real estate | 12,681 | 5,129 | |||||
Distributions from sale of joint venture property | — | 8,173 | |||||
Increase in restricted cash | (21 | ) | (2,289 | ) | |||
Net cash used in investing activities | (4,646 | ) | (2,778 | ) | |||
FINANCING ACTIVITIES | |||||||
Repayment of mortgages and notes payable | (21,497 | ) | (1,148 | ) | |||
Net proceeds (repayments) on revolving credit facility | 16,000 | (10,000 | ) | ||||
Payment of deferred financing costs | (374 | ) | — | ||||
Proceeds, net of costs, from issuance of common stock | — | 16,769 | |||||
Repayment of capitalized lease obligation | — | (680 | ) | ||||
Dividends paid to preferred shareholders | (1,675 | ) | (1,812 | ) | |||
Dividends paid to common shareholders | (16,710 | ) | (15,605 | ) | |||
Distributions paid to operating partnership unit holders | (422 | ) | (449 | ) | |||
Net cash used in financing activities | (24,678 | ) | (12,925 | ) | |||
Net change in cash and cash equivalents | (2,989 | ) | 3,631 | ||||
Cash and cash equivalents at beginning of period | 6,644 | 9,335 | |||||
Cash and cash equivalents at end of period | $ | 3,655 | $ | 12,966 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash paid for interest (net of capitalized interest of $204 and $266 in 2016 and 2015, respectively) | $ | 9,431 | $ | 8,458 | |||
Cash paid for federal income taxes | $ | — | $ | — |
Three Months Ended | ||||
March 31, 2015 | ||||
(in thousands) | ||||
Comprehensive loss attributable to non controlling interest as previously reported | $ | 41 | ||
Comprehensive income attributable to non controlling interest as revised | $ | (236 | ) | |
Comprehensive income attributable to RPT as previously reported | $ | 8,520 | ||
Comprehensive income attributable to RPT as revised | $ | 8,243 | ||
Gross | ||||||||||||||||||||||
Property Name | Location | GLA | Acreage | Date Sold | Sales Price | Debt Repaid | Gain (Loss) on Sale | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||
Troy Towne Center | Troy, OH | 144 | N/A | 02/02/16 | $ | 12,400 | $ | — | $ | 6,274 | ||||||||||||
Total income producing dispositions | 144 | — | $ | 12,400 | $ | — | $ | 6,274 | ||||||||||||||
The Towne Center at Aquia - Commercial Outparcel | Stafford, VA | N/A | 0.7 | 01/15/16 | $ | 750 | $ | — | $ | 251 | ||||||||||||
Total land / outparcel dispositions | — | 0.7 | $ | 750 | $ | — | $ | 251 | ||||||||||||||
Total consolidated dispositions | 144 | 0.7 | $ | 13,150 | $ | — | $ | 6,525 | ||||||||||||||
Balance Sheets | March 31, 2016 | December 31, 2015 | ||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Investment in real estate, net | $ | 63,145 | $ | 63,623 | ||||
Other assets | 4,553 | 4,230 | ||||||
Total Assets | $ | 67,698 | $ | 67,853 | ||||
LIABILITIES AND OWNERS' EQUITY | ||||||||
Other liabilities | $ | 765 | $ | 750 | ||||
Owners' equity | 66,933 | 67,103 | ||||||
Total Liabilities and Owners' Equity | $ | 67,698 | $ | 67,853 | ||||
RPT's equity investments in unconsolidated joint ventures | $ | 4,365 | $ | 4,325 | ||||
Three Months Ended March 31, | |||||||||
Statements of Operations | 2016 | 2015 | |||||||
(In thousands) | |||||||||
Total revenue | $ | 1,709 | $ | 10,625 | |||||
Total expenses | 1,047 | 7,296 | |||||||
Income before other income and expense | 662 | 3,329 | |||||||
Interest expense | — | (1,793 | ) | ||||||
Amortization of deferred financing fees | — | (74 | ) | ||||||
Net income | $ | 662 | $ | 1,462 | |||||
RPT's share of earnings from unconsolidated joint ventures | $ | 109 | $ | 2,660 | |||||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(In thousands) | ||||||||
Management fees | $ | 95 | $ | 399 | ||||
Leasing fees | 14 | 120 | ||||||
Construction fees | 1 | 13 | ||||||
Total | $ | 110 | $ | 532 | ||||
Notes Payable | March 31, 2016 | December 31, 2015 | ||||||
(In thousands) | ||||||||
Senior unsecured notes | $ | 460,000 | $ | 460,000 | ||||
Unsecured term loan facilities | 210,000 | 210,000 | ||||||
Fixed rate mortgages | 300,960 | 322,457 | ||||||
Unsecured revolving credit facility | 76,000 | 60,000 | ||||||
Junior subordinated notes | 28,125 | 28,125 | ||||||
1,075,085 | 1,080,582 | |||||||
Unamortized premium | 6,467 | 6,935 | ||||||
Unamortized deferred financing costs | (3,970 | ) | (3,806 | ) | ||||
Total notes payable | $ | 1,077,582 | $ | 1,083,711 | ||||
Capital lease obligation | $ | 1,108 | $ | 1,108 | ||||
Year Ending December 31, | |||
(In thousands) | |||
2016 (April 1 - December 31) | $ | 14,348 | |
2017 | 129,096 | ||
2018 (1) | 115,132 | ||
2019 | 5,860 | ||
2020 | 102,269 | ||
Thereafter | 708,380 | ||
Subtotal debt | 1,075,085 | ||
Unamortized premium | 6,467 | ||
Unamortized deferred financing costs | (3,970 | ) | |
Total debt | $ | 1,077,582 | |
Level 1 | Valuation is based upon quoted prices for identical instruments traded in active markets. |
Level 2 | Valuation is based upon prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. |
Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the assets or liabilities. |
Total | ||||||||||||
Balance Sheet Location | Fair Value | Level 2 | ||||||||||
2016 | (In thousands) | |||||||||||
Derivative liabilities - interest rate swaps | Other liabilities | $ | (6,376 | ) | $ | (6,376 | ) | |||||
2015 | ||||||||||||
Derivative assets - interest rate swaps | Other assets | $ | 642 | $ | 642 | |||||||
Derivative liabilities - interest rate swaps | Other liabilities | $ | (2,241 | ) | $ | (2,241 | ) | |||||
Hedge | Notional | Fixed | Fair | Expiration | |||||||||||
Underlying Debt | Type | Value | Rate | Value | Date | ||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Derivative Liabilities | |||||||||||||||
Unsecured term loan facility | Cash Flow | $ | 75,000 | 1.2175 | % | $ | (46 | ) | 04/2016 | ||||||
Unsecured term loan facility | Cash Flow | 30,000 | 2.0480 | % | (988 | ) | 10/2018 | ||||||||
Unsecured term loan facility | Cash Flow | 25,000 | 1.8500 | % | (699 | ) | 10/2018 | ||||||||
Unsecured term loan facility | Cash Flow | 5,000 | 1.8400 | % | (139 | ) | 10/2018 | ||||||||
Unsecured term loan facility | Cash Flow | 15,000 | 2.1500 | % | (750 | ) | 05/2020 | ||||||||
Unsecured term loan facility | Cash Flow | 10,000 | 2.1500 | % | (500 | ) | 05/2020 | ||||||||
Unsecured term loan facility | Cash Flow | 50,000 | 1.4600 | % | (1,103 | ) | 05/2020 | ||||||||
$ | 210,000 | (4,225 | ) | ||||||||||||
Derivative Liabilities - Forward Swaps | |||||||||||||||
Unsecured term loan facility | Cash Flow | $ | 20,000 | 1.4980 | % | (439 | ) | 05/2021 | |||||||
Unsecured term loan facility | Cash Flow | 15,000 | 1.4900 | % | (317 | ) | 05/2021 | ||||||||
Unsecured term loan facility | Cash Flow | 40,000 | 1.4800 | % | (849 | ) | 05/2021 | ||||||||
Unsecured term loan facility | Cash Flow | 60,000 | 1.7700 | % | (546 | ) | 05/2023 | ||||||||
$ | 135,000 | (2,151 | ) | ||||||||||||
Total Derivative Liabilities | $ | (6,376 | ) | ||||||||||||
Amount of Loss Recognized in OCI on Derivative (Effective Portion) | Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Interest rate contracts - assets | $ | (716 | ) | $ | (825 | ) | Interest Expense | $ | (74 | ) | $ | (288 | ) | |||||
Interest rate contracts - liabilities | (4,659 | ) | (1,396 | ) | Interest Expense | (524 | ) | (468 | ) | |||||||||
Total | $ | (5,375 | ) | $ | (2,221 | ) | Total | $ | (598 | ) | $ | (756 | ) | |||||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(In thousands, except per share data) | ||||||||
Net income | $ | 12,142 | $ | 9,944 | ||||
Net income attributable to noncontrolling interest | (297 | ) | (277 | ) | ||||
Allocation of income to restricted share awards | — | (60 | ) | |||||
Income attributable to RPT | $ | 11,845 | $ | 9,607 | ||||
Preferred share dividends | (1,675 | ) | (1,812 | ) | ||||
Net income available to common shareholders | $ | 10,170 | $ | 7,795 | ||||
Weighted average shares outstanding, Basic | 79,194 | 77,925 | ||||||
Stock options and restricted stock awards using the treasury method | 178 | 203 | ||||||
Weighted average shares outstanding, Diluted (1) | 79,372 | 78,128 | ||||||
Income per common share, Basic | $ | 0.13 | $ | 0.10 | ||||
Income per common share, Diluted | $ | 0.13 | $ | 0.10 | ||||
• | granted 115,646 shares of service-based restricted stock that vest over five years. The service-based awards were valued based on our closing stock price as of the grant date and the expense is recognized on a graded vesting basis; and |
• | granted performance-based cash units that are earned subject to a future performance measurement based on a three-year shareholder return peer comparison (“TSR Grants”). If the performance criterion is met, the actual value of the units earned will be determined and 50% of the award will be paid in cash immediately while the balance will be paid in cash the following year. |
Leasing Transactions | Square Footage | Base Rent/SF (1) | Prior Rent/SF (2) | Tenant Improvements/SF(3) | Leasing Commissions/SF | |||||||||||
Renewals | 54 | 343,673 | $ | 17.51 | $ | 16.43 | $ | 0.08 | $ | — | ||||||
New Leases - Comparable (4) | 7 | 22,320 | 17.76 | 12.98 | 28.81 | 5.35 | ||||||||||
New Leases - Non-Comparable | 12 | 72,738 | 15.65 | N/A | 52.25 | 1.96 | ||||||||||
Total | 73 | 438,731 | $ | 17.37 | N/A | $ | 10.19 | $ | 0.60 | |||||||
Three Months Ended March 31, | |||||||||||||||
2016 | 2015 | Dollar Change | Percent Change | ||||||||||||
(In thousands) | |||||||||||||||
Total revenue | $ | 66,512 | $ | 59,417 | $ | 7,095 | 11.9 | % | |||||||
Real estate taxes | 10,308 | 8,995 | 1,313 | 14.6 | % | ||||||||||
Recoverable and non-recoverable operating expenses | 9,474 | 7,991 | 1,483 | 18.6 | % | ||||||||||
Depreciation and amortization | 23,847 | 20,363 | 3,484 | 17.1 | % | ||||||||||
General and administrative expense | 5,605 | 4,874 | 731 | 15.0 | % | ||||||||||
Provision for impairment | — | 2,521 | (2,521 | ) | NM | ||||||||||
Gain on sale of real estate | 6,525 | 3,196 | 3,329 | NM | |||||||||||
Earnings from unconsolidated joint ventures | 109 | 2,660 | (2,551 | ) | 95.9 | % | |||||||||
Interest expense and amortization of deferred financing fees | 11,302 | 10,303 | 999 | 9.7 | % | ||||||||||
NM - Not meaningful |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Cash provided by operating activities | $ | 26,335 | $ | 19,334 | |||
Cash used in investing activities | (4,646 | ) | (2,778 | ) | |||
Cash used in financing activities | (24,678 | ) | (12,925 | ) | |||
• | Shopping center operating income increased $4.6 million million as a result of acquisitions, leasing and redevelopment activity; |
• | an overall increase in accounts receivable and net other assets of $2.1 million; |
• | an increase in accounts payable and other liabilities of approximately $1.6 million; partly offset by |
• | higher net interest expense of approximately $1.0 million due to higher average loan balances as a result of acquisitions; and |
• | higher long-term and share-based compensation expense of $0.3 million. |
• | lower proceeds of $16.8 million from common stock issued under our ongoing controlled equity offering as compared to 2015; and |
• | higher cash dividends to common shareholders by $1.0 million due to the increase in the number of common shares outstanding and a 5.0% increase in our quarterly dividend compared to 2015; partly offset by |
• | a decrease in net debt repayments of $6.0 million. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Cash provided by operating activities | $ | 26,335 | $ | 19,334 | |||
Cash distributions to preferred shareholders | $ | (1,675 | ) | $ | (1,812 | ) | |
Cash distributions to common shareholders | (16,710 | ) | (15,605 | ) | |||
Cash distributions to operating partnership unit holders | (422 | ) | (449 | ) | |||
Total distributions | (18,807 | ) | (17,866 | ) | |||
Surplus | $ | 7,528 | $ | 1,468 | |||
Payments due by period | |||||||||||||||||||
Contractual Obligations | Total | Less than 1 year (1) | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||
(In thousands) | |||||||||||||||||||
Mortgages and notes payable: | |||||||||||||||||||
Scheduled amortization | $ | 21,039 | $ | 2,493 | $ | 8,747 | $ | 5,060 | $ | 4,739 | |||||||||
Payments due at maturity | 1,054,046 | 11,855 | 241,341 | 211,717 | 589,133 | ||||||||||||||
Total mortgages and notes payable (2) | 1,075,085 | 14,348 | 250,088 | 216,777 | 593,872 | ||||||||||||||
Interest expense (3) | 298,587 | 33,000 | 106,070 | 56,882 | 102,635 | ||||||||||||||
Employment contracts | 2,412 | 912 | 1,500 | — | — | ||||||||||||||
Capital lease (4) | 1,700 | 100 | 300 | 200 | 1,100 | ||||||||||||||
Operating leases | 2,162 | 466 | 1,696 | — | — | ||||||||||||||
Construction commitments | 15,192 | 15,192 | — | — | — | ||||||||||||||
Total contractual obligations | $ | 1,395,138 | $ | 64,018 | $ | 359,654 | $ | 273,859 | $ | 697,607 | |||||||||
(1) | Amounts represent balance of obligation for the remainder of 2016. |
(2) | Excludes $6.5 million of unamortized mortgage debt premium and $4.0 million in net deferred financing costs. |
(3) | Variable-rate debt interest is calculated using rates at March 31, 2016. |
(4) | Includes interest payments associated with the capital lease obligation. |
(in thousands) | |||
Net debt (including property-specific mortgages, unsecured revolving credit facility, term loans and capital lease obligation net of $3.6 million in cash) | $ | 1,072,538 | |
Common shares, OP units, and dilutive securities based on market price of $18.03 at March 31, 2016 | 1,467,840 | ||
Convertible perpetual preferred shares based on market price of $65.28 at March 31, 2016 | 120,703 | ||
Total market capitalization | $ | 2,661,081 | |
Net debt to total market capitalization | 40.3 | % | |
Three Months Ended March 31, | |||||||||
2016 | 2015 | ||||||||
Net income available to common shareholders | $ | 10,170 | $ | 7,855 | |||||
Adjustments: | |||||||||
Rental property depreciation and amortization expense | 23,807 | 20,327 | |||||||
Pro-rata share of real estate depreciation from unconsolidated joint ventures | 82 | 696 | |||||||
Gain on sale of depreciable real estate | (6,274 | ) | — | ||||||
Gain on sale of joint venture depreciable real estate (1) | — | (2,239 | ) | ||||||
Noncontrolling interest in Operating Partnership (2) | 297 | 277 | |||||||
FFO | $ | 28,082 | $ | 26,916 | |||||
Preferred share dividends (assuming conversion) | 1,675 | 1,812 | |||||||
FFO available to common shareholders | 29,757 | 28,728 | |||||||
Gain on sale of land | (251 | ) | (3,196 | ) | |||||
Provision for impairment on land available for development or sale | — | 2,521 | |||||||
Acquisition costs | 59 | 42 | |||||||
Operating FFO | $ | 29,565 | $ | 28,095 | |||||
Weighted average common shares | 79,194 | 77,925 | |||||||
Shares issuable upon conversion of Operating Partnership Units (2) | 2,001 | 2,247 | |||||||
Dilutive effect of securities | 178 | 203 | |||||||
Subtotal | 81,373 | 80,375 | |||||||
Shares issuable upon conversion of preferred shares (3) | 6,572 | 7,033 | |||||||
Weighted average equivalent shares outstanding, diluted | 87,945 | 87,408 | |||||||
Diluted earnings per share (4) | $ | 0.13 | $ | 0.10 | |||||
FFO per share adjustments to net income available to common shareholders including preferred share dividends | 0.21 | 0.23 | |||||||
FFO per share, diluted | $ | 0.34 | $ | 0.33 | |||||
Per share adjustments to FFO | — | (0.01 | ) | ||||||
Operating FFO per share, diluted | $ | 0.34 | $ | 0.32 | |||||
(1) | Amount included in earnings from unconsolidated joint ventures. |
(2) | The total non-controlling interest reflects OP units convertible 1:1 into common shares. |
(3) | Series D convertible preferred shares are paid annual dividends of $6.7 million and are currently convertible into approximately 6.6 million shares of common stock. They are dilutive only when earnings or FFO exceed approximately $0.26 per diluted share per quarter, which was the case for FFO for the three months ended March 31, 2016 and 2015. The conversion ratio is subject to adjustment based upon a number of factors, and such adjustment could affect the dilutive impact of the Series D convertible preferred shares on FFO and earnings per share in future periods. |
(4) | The denominator to calculate diluted earnings per share excludes shares issuable upon conversion of Operating Partnership Units and preferred shares for all periods reported. |
Three Months Ended | |||
Property Designation | March 31, 2016 | ||
Same property | 57 | ||
Acquisitions (1) | 7 | ||
Non-retail properties (2) | 1 | ||
Redevelopment (3) | 5 | ||
Total wholly owned properties | 70 | ||
(1) Properties were not owned in both comparable periods. | |||
(2) Office building. | |||
(3) Properties under construction primarily related to re-tenanting resulting in reduced rental income. | |||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(in thousands) | ||||||||
Operating income | $ | 17,219 | $ | 14,631 | ||||
Adjustments: | ||||||||
Management and other fee income | (110 | ) | (532 | ) | ||||
Depreciation and amortization | 23,847 | 20,363 | ||||||
Acquisition costs | 59 | 42 | ||||||
General and administrative expenses | 5,605 | 4,874 | ||||||
Provision for impairment | — | 2,521 | ||||||
Properties excluded from pool - Acquisitions | (4,404 | ) | (106 | ) | ||||
Properties excluded from pool - Development/Redevelopment | (4,934 | ) | (4,408 | ) | ||||
Properties excluded from pool - All Others | (365 | ) | (952 | ) | ||||
Non-comparable income/expense adjustments (1) | (675 | ) | (297 | ) | ||||
Same Property NOI | $ | 36,242 | $ | 36,136 | ||||
Period-end Occupancy percent | 94.0 | % | 94.4 | % |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Fixed-rate debt | $ | 14,348 | $ | 129,096 | $ | 39,132 | $ | 5,860 | $ | 102,269 | $ | 680,255 | $ | 970,960 | $ | 992,769 | ||||||||||||||||
Average interest rate | 5.80 | % | 5.49 | % | 4.72 | % | 6.76 | % | 3.90 | % | 4.15 | % | 4.37 | % | 3.90 | % | ||||||||||||||||
Variable-rate debt | $ | — | $ | — | $ | 76,000 | $ | — | $ | — | $ | 28,125 | $ | 104,125 | $ | 104,125 | ||||||||||||||||
Average interest rate | — | — | 1.79 | % | — | — | 3.92 | % | 2.36 | % | 2.36 | % | ||||||||||||||||||||
Exhibit No. | Description |
10.1* | Sixth Amendment to $60 Million Unsecured Term Loan Agreement, by Ramco-Gershenson Properties, L.P. dated March 4, 2016 |
12.1* | Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends. |
31.1* | Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* | Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* | Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002. |
32.2* | Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002. |
101.INS(1) | XBRL Instance Document. |
101.SCH(1) | XBRL Taxonomy Extension Schema. |
101.CAL(1) | XBRL Taxonomy Extension Calculation. |
101.DEF(1) | XBRL Taxonomy Extension Definition. |
101.LAB(1) | XBRL Taxonomy Extension Label. |
101.PRE(1) | XBRL Taxonomy Extension Presentation. |
* | Filed herewith |
** | Management contract or compensatory plan or arrangement |
(1) | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability thereunder. |
RAMCO-GERSHENSON PROPERTIES TRUST | |
Date: May 5, 2016 | By: DENNIS GERSHENSON Dennis Gershenson President and Chief Executive Officer (Principal Executive Officer) |
Date: May 5, 2016 | By: GEOFFREY BEDROSIAN Geoffrey Bedrosian Chief Financial Officer (Principal Financial Officer) |
Date: May 5, 2016 | By: DEBORAH R. CHEEK Deborah R. Cheek Chief Accounting Officer (Principal Accounting Officer) |
Ratio | Term Base Rate Loans | Term LIBOR Rate Loans | |
Pricing Level 1 | Less than or equal to 40% | 0.60% | 1.60% |
Pricing Level 2 | Greater than 40% but less than or equal to 45% | 0.65% | 1.65% |
Pricing Level 3 | Greater than 45% but less than or equal to 50% | 0.80% | 1.80% |
Pricing Level 4 | Greater than 50% but less than or equal to 55% | 0.95% | 1.95% |
Pricing Level 5 | Greater than 55% | 1.25% | 2.25% |
Pricing Level | Credit Rating Level | Term Base Rate Loans | Term LIBOR Rate Loans |
1 | Credit Rating Level 1 | 0.40% | 1.40% |
2 | Credit Rating Level 2 | 0.45% | 1.45% |
3 | Credit Rating Level 3 | 0.55% | 1.55% |
4 | Credit Rating Level 4 | 0.80% | 1.80% |
5 | Credit Rating Level 5 | 1.25% | 2.25% |
(a) | Execution of this Amendment. The Agent shall have received executed originals of counterpart signature pages to this Amendment from the Borrower, the Guarantors, the Agent, New Bank, Exiting Bank and all of the Banks. |
(b) | Opinion. The Agent shall have received an opinion of counsel to the Borrower and the Guarantors covering such matters as the Agent may reasonably request and otherwise in form and substance reasonably satisfactory to the Agent. |
(c) | Term Loan Note. The Agent shall have received a Term Loan Note duly executed by the Borrower in favor of New Bank in the amount set forth next to such Bank's name on Schedule 1.1 hereto. |
(d) | Fees. The Agent shall have received all fees due and payable with respect to this Amendment, including any fees payable to the Banks. |
(e) | Compliance Certificate and Borrowing Base Certificate. The Agent and the Banks shall have received a Compliance Certificate and a Borrowing Base Certificate dated as of the date of the Effective Date demonstrating compliance with each of the covenants calculated therein as of the most recent calendar quarter for which the Borrower has provided financial statements under §7.4 of the Loan Agreement adjusted in the best good faith estimate of the Borrower as of the Effective Date. |
(f) | Certificates. The Agent and the Banks shall have received such other resolutions, certificates, documents, instruments and agreements as Agent may reasonably request. |
(g) | Counsel Fees. The Borrower shall have paid all fees and expenses of Agent in connection with this Amendment and the matters addressed herein in accordance with §15 of the Loan Agreement. |
By: | Ramco-Gershenson Properties Trust, a Maryland real estate investment trust, its General Partner |
Term Loan Commitment | Term Loan Commitment Percentage | |
KeyBank National Association 1200 Abernathy Road, N.E., Suite 1550 Atlanta, Georgia 30328 Attention: Daniel Silbert LIBOR Lending Office Same as above | $25,000,000.00 | 41.667% |
The Huntington National Bank 917 Euclid Avenue Cleveland, Ohio 44114 Attention: Michael Kauffman LIBOR Lending Office Same as above | $25,000,000.00 | 41.667% |
Branch Banking and Trust Company 200 W. 2nd Street FL 16 Winston Salem, NC 27101 Attention: Mark Edwards LIBOR Lending Office Same as above | $10,000,000.00 | 16.666% |
Total | $60,000,000.00 | 100% |
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | |||||||||
Three Months Ended March 31, | |||||||||
2016 | 2015 | ||||||||
(In thousands, except ratio computation) | |||||||||
Pretax income before adjustment for noncontrolling interest | $12,204 | $9,966 | |||||||
Add back: | |||||||||
Fixed charges | 11,559 | 10,625 | |||||||
Distributed income of equity investees | 58 | 8,740 | |||||||
Deduct: | |||||||||
Equity in earnings of equity investees | (109 | ) | (2,660 | ) | |||||
Capitalized interest | (204 | ) | (266 | ) | |||||
Earnings as Defined | $23,508 | $26,405 | |||||||
Fixed Charges | |||||||||
Interest expense including amortization of deferred financing fees | $11,302 | $10,303 | |||||||
Capitalized interest | 204 | 266 | |||||||
Interest portion of rent expense | 53 | 56 | |||||||
Fixed Charges | 11,559 | 10,625 | |||||||
Preferred share dividends | 1,675 | 1,812 | |||||||
Combined Fixed Charges and Preferred Dividends | $13,234 | $12,437 | |||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | 1.78 | 2.12 | |||||||
1. | I have reviewed this quarterly report on Form 10-Q of Ramco-Gershenson Properties Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 5, 2016 | By:/s/ DENNIS GERSHENSON Dennis Gershenson President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Ramco-Gershenson Properties Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 5, 2016 | By: /s/ GEOFFREY BEDROSIAN Geoffrey Bedrosian Chief Financial Officer |
(1) | The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: May 5, 2016 | By: /s/ DENNIS GERSHENSON Dennis Gershenson President and Chief Executive Officer |
(1) | The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: May 5, 2016 | By: /s/ GEOFFREY BEDROSIAN Geoffrey Bedrosian Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 26, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RAMCO GERSHENSON PROPERTIES TRUST | |
Entity Central Index Key | 0000842183 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q1 | |
Trading Symbol | RPT | |
Entity Common Stock, Shares Outstanding | 79,232,248 |
Condensed Consolidated Statements of Shareholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands |
Total |
Preferred Shares |
Common Shares |
Additional Paid-in Capital |
Accumulated Distributions in Excess of Net Income |
Accumulated Other Comprehensive Loss |
Noncontrolling Interest |
---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2015 | $ 906,337 | $ 92,427 | $ 792 | $ 1,156,345 | $ (363,937) | $ (1,404) | $ 22,114 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation and other expense, net of shares withheld for employee taxes | 210 | 210 | |||||
Dividends declared to common shareholders | (16,639) | (16,639) | |||||
Dividends declared to preferred shareholders | (1,675) | (1,675) | |||||
Distributions declared to noncontrolling interests | (420) | (420) | |||||
Dividends declared to deferred shares | (91) | (91) | |||||
Other comprehensive income adjustment | (4,777) | (4,660) | (117) | ||||
Net income | 12,142 | 11,845 | 297 | ||||
Ending balance at Mar. 31, 2016 | $ 895,087 | $ 92,427 | $ 792 | $ 1,156,555 | $ (370,497) | $ (6,064) | $ 21,874 |
Condensed Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Cash Flows [Abstract] | ||
Cash paid for interest, capitalized interest | $ 204 | $ 266 |
Organization and Basis of Presentations |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Basis of Presentations | Organization and Basis of Presentations Organization Ramco-Gershenson Properties Trust, together with its subsidiaries (the “Company” or "RPT"), is a real estate investment trust (“REIT”) engaged in the business of owning, developing, redeveloping, acquiring, managing and leasing large multi-anchored shopping centers primarily in a number of the largest metropolitan markets in the central United States. As of March 31, 2016, our property portfolio consisted of 69 wholly owned shopping centers and one office building comprising approximately 15.2 million square feet. We also have ownership interests, ranging from 7% to 30%, in three joint ventures, that each own a single shopping center. Our joint ventures are reported using equity method accounting. We earn fees from the joint ventures for managing, leasing and redeveloping the shopping centers they own. In addition, we own interests in several land parcels that are available for development or sale. Most of our properties are anchored by supermarkets and/or national chain stores. Our credit risk, therefore, is concentrated in the retail industry. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and our majority owned subsidiary, the Operating Partnership, Ramco-Gershenson Properties, L.P. (the "OP") (97.6% owned by the Company at March 31, 2016 and December 31, 2015), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest. During the first quarter of 2016 we adopted Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The Company evaluated the application of ASU No. 2015-02 and concluded that no change was required to its accounting of its interests in less than wholly owned joint ventures, however, the Operating Partnership now meets the criteria as a variable interest entity. The Company’s significant asset is its investment in the Operating Partnership, and consequently, substantially all of our assets and liabilities represent those assets and liabilities of the Operating Partnership. We have elected to be a REIT for federal income tax purposes. All intercompany balances and transactions have been eliminated in consolidation. The information furnished is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015. The preparation of our unaudited financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and reported amounts that are not readily apparent from other sources. Actual results could differ from those estimates. Reclassifications and Revisions Certain reclassifications of prior period amounts have been made in the condensed consolidated financial statements and footnotes in order to conform to the current presentation. In previously filed quarterly reports, the Company incorrectly calculated comprehensive income attributable to noncontrolling interest. Accordingly, the Condensed Consolidated Statements of Comprehensive Income have been revised. The revision resulted in a decrease to previously reported comprehensive income attributable to RPT as follows:
There was no impact to the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Shareholders’ Equity or to the Company’s cash position resulting from this revision. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") updated ASC Topic 718 "Compensation - Stock Compensation" with ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting". ASU 2016-09 simplifies several aspects of share-based payment award transactions, including tax consequences, classification of awards and the classification on the statement of cash flows. ASU 2016-09 is effective for annual periods (including interim periods within those periods) beginning after December 15, 2016. Early adoption is permitted. We are in the process of evaluating the impact of this new guidance. In February 2016, the FASB updated ASC Topic 842 "Leases." In ASU 2016-02, which requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not direct leasing costs. ASU 2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted upon issuance using a modified retrospective approach. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing GAAP revenue recognition guidance as well as impact the existing GAAP guidance governing the sale of nonfinancial assets. The standard’s core principle is that a company will recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations. In doing so, companies will need to exercise more judgment and make more estimates than under existing GAAP guidance. ASU 2014-09 will be effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption is permitted in periods ending after December 15, 2016. We have not yet selected a transition method nor have we determined the effect of ASU 2014-09 on our consolidated financial statements. |
Real Estate |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Included in our net real estate assets are income producing that are recorded at cost less accumulated depreciation and amortization, construction in process and land available for development or sale. We review our investment in real estate, including any related intangible assets, for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of the property may not be recoverable. These changes in circumstances include, but are not limited to, changes in occupancy, rental rates, tenant sales, net operating income, geographic location, real estate values and expected holding period. Land available for development or sale includes real estate projects where vertical construction has yet to commence, but which have been identified by us and are available for future development when market conditions dictate the demand for a new shopping center. The viability of all projects under construction or development, including those owned by unconsolidated joint ventures, is regularly evaluated under applicable accounting requirements, including requirements relating to abandonment of assets or changes in use. Land available for development or sale was $39.5 million and $39.6 million at March 31, 2016 and December 31, 2015, respectively. Construction in progress represents existing development, redevelopment and tenant build-out projects. When projects are substantially complete and ready for their intended use, balances are transferred to land or building and improvements as appropriate. Construction in progress was $26.3 million and $20.6 million at March 31, 2016 and December 31, 2015, respectively. The increase in construction in progress from December 31, 2015 to March 31, 2016 was due primarily to ongoing redevelopment and expansion projects across the portfolio. |
Property Acquisitions and Dispositions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Acquisitions and Dispositions | Property Acquisitions and Dispositions Acquisitions There were no acquisitions for the three months ended March 31, 2016. Dispositions The following table provides a summary of our disposition activity for the three months ended March 31, 2016:
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Equity Investments in Unconsolidated Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investments in Unconsolidated Joint Ventures | Equity Investments in Unconsolidated Joint Ventures We have three joint venture agreements whereby we own between 7% and 30% of the equity in each joint venture. We and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. We cannot make significant decisions without our partner’s approval. Accordingly, we account for our interest in the joint ventures using the equity method of accounting. The combined condensed financial information for our unconsolidated joint ventures is summarized as follows:
Acquisitions/Dispositions There was no acquisition or disposition activity in the three months ended March 31, 2016 by any of our unconsolidated joint ventures. Joint Venture Management and Other Fee Income We are engaged by our joint ventures to provide asset management, property management, leasing and investing services for such ventures' respective properties. We receive fees for our services, including a property management fee calculated as a percentage of gross revenues received, and recognize these fees as the services are rendered. The following table provides information for our fees earned which are reported in our condensed consolidated statements of operations:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following table summarizes our mortgages and notes payable and capital lease obligation as of March 31, 2016 and December 31, 2015:
Senior unsecured notes and unsecured term loans During the three months ended March 31, 2016, we executed an amendment extending the maturity of our $60.0 million unsecured term loan, originally maturing in 2018, to 2023. Our $670.0 million of senior unsecured notes and unsecured term loans have interest rates ranging from 2.92% to 4.74% and are due at various maturity dates from May 2020 through November 2026. Mortgages During the three months ended March 31, 2016 we repaid a mortgage note secured by Troy Marketplace in the amount of $20.6 million, that had an interest rate of 5.90%. Our $301.0 million of fixed rate mortgages have interest rates ranging from 2.86% to 7.38% and are due at various maturity dates from June 2016 through June 2026. The fixed rate mortgages are secured by properties that have an approximate net book value of $377.8 million as of March 31, 2016. We have no mortgage maturities until June 2016 and it is our intent to repay those mortgages using cash, borrowings under our unsecured line of credit, or other sources of financing. The mortgage loans encumbering our properties are generally nonrecourse, subject to certain exceptions for which we would be liable for any resulting losses incurred by the lender. These exceptions vary from loan to loan but generally include fraud or a material misrepresentation, misstatement or omission by the borrower, intentional or grossly negligent conduct by the borrower that harms the property or results in a loss to the lender, filing of a bankruptcy petition by the borrower, either directly or indirectly and certain environmental liabilities. In addition, upon the occurrence of certain events, such as fraud or filing of a bankruptcy petition by the borrower, we or our joint ventures would be liable for the entire outstanding balance of the loan, all interest accrued thereon and certain other costs, including penalties and expenses. We have entered into mortgage loans which are secured by multiple properties and contain cross-collateralization and cross-default provisions. Cross-collateralization provisions allow a lender to foreclose on multiple properties in the event that we default under the loan. Cross-default provisions allow a lender to foreclose on the related property in the event a default is declared under another loan. Revolving Credit Facility As of March 31, 2016 we had $76.0 million outstanding under our revolving credit facility, an increase of $16.0 million during the quarter. After adjusting for outstanding letters of credit issued under our revolving credit facility, not reflected in the accompanying condensed consolidated balance sheets, totaling $0.1 million we had $273.9 million of availability under our revolving credit facility. The interest rate as of March 31, 2016 was 1.79%. Our revolving credit facility, term loans and unsecured notes contain financial covenants relating to total leverage, fixed charge coverage ratio, unencumbered assets, tangible net worth and various other calculations. As of March 31, 2016, we were in compliance with these covenants. Junior Subordinated Notes Our junior subordinated notes have a variable rate of LIBOR plus 3.30%. The maturity date is January 2038. The following table presents scheduled principal payments on mortgages and notes payable as of March 31, 2016:
(1) Scheduled maturities in 2018 include the $76.0 million balance on the unsecured revolving credit facility drawn as of March 31, 2016. |
Fair Value |
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Fair Value | Fair Value We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Derivative instruments (interest rate swaps) are recorded at fair value on a recurring basis. Additionally, we, from time to time, may be required to record other assets at fair value on a nonrecurring basis. As a basis for considering market participant assumptions in fair value measurements, GAAP establishes three fair value levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The assessed inputs used in determining any fair value measurement could result in incorrect valuations that could be material to our condensed consolidated financial statements. These levels are:
The following is a description of valuation methodologies used for our assets and liabilities recorded at fair value. Derivative Assets and Liabilities All of our derivative instruments are interest rate swaps for which quoted market prices are not readily available. For those derivatives, we measure fair value on a recurring basis using valuation models that use primarily market observable inputs, such as yield curves. We classify these instruments as Level 2. Refer to Note 7 Derivative Financial Instruments of the notes to the condensed consolidated financial statements for additional information on our derivative financial instruments. The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015.
The carrying values of cash and cash equivalents, restricted cash, receivables and accounts payable and accrued liabilities are reasonable estimates of their fair values because of the short maturity of these financial instruments. We estimated the fair value of our debt based on our incremental borrowing rates for similar types of borrowing arrangements with the same remaining maturity and on the discounted estimated future cash payments to be made for other debt. The discount rates used approximate current lending rates for loans or groups of loans with similar maturities and credit quality, assume the debt is outstanding through maturity and consider the debt’s collateral (if applicable). Since such amounts are estimates that are based on limited available market information for similar transactions, there can be no assurance that the disclosed value of any financial instrument could be realized by immediate settlement of the instrument. Fixed rate debt (including variable rate debt swapped to fixed through derivatives) with carrying values of $971.0 million and $996.3 million as of March 31, 2016 and December 31, 2015, respectively, had fair values of approximately $992.8 million and $1.0 billion, respectively. Variable rate debt’s fair value is estimated to be the carrying values of $104.1 million and $87.4 million as of March 31, 2016 and December 31, 2015, respectively. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We utilize interest rate swap agreements for risk management purposes to reduce the impact of changes in interest rates on our variable rate debt. We may also enter into forward starting swaps to set the effective interest rate on planned variable rate financing. On the date we enter into an interest rate swap, the derivative is designated as a hedge against the variability of cash flows that are to be paid in connection with a recognized liability. Subsequent changes in the fair value of a derivative designated as a cash flow hedge that is determined to be effective are recorded in other comprehensive income (“OCI”) until earnings are affected by the variability of cash flows of the hedged transaction. The differential between fixed and variable rates to be paid or received is accrued, as interest rates change, and recognized currently as interest expense in the condensed consolidated statements of operations. We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis. Our cash flow hedges become ineffective, for example, if critical terms of the hedging instrument and the debt do not perfectly match such as notional amounts, settlement dates, reset dates and calculation period and LIBOR rate. Changes in the fair values are immediately included in other income and expenses. At March 31, 2016, all of our hedges were effective. The following table summarizes the notional values and fair values of our derivative financial instruments as of March 31, 2016:
The effect of derivative financial instruments on our condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 is summarized as follows:
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Earnings Per Common Share |
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Earnings Per Common Share | Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per share (“EPS”):
(1) The assumed conversion of preferred shares is anti-dilutive for all other periods presented and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS for those periods. |
Share-based Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Share-based Compensation Plans | Share-based Compensation Plans As of March 31, 2016, we have one share-based compensation plan in effect. The 2012 Omnibus Long-Term Incentive Plan (“2012 LTIP”) under which our compensation committee may grant, subject to any Company performance conditions as specified by the compensation committee, restricted shares, restricted share units, options and other awards to trustees, officers and other key employees. The 2012 LTIP allows us to issue up to 2 million shares of our common stock, units or stock options, of which 1.4 million remained available for issuance as of March 31, 2016. As of March 31, 2016, we had 377,167 unvested share awards granted under the 2012 LTIP and other plans which terminated when the 2012 LTIP became effective. These awards have various expiration dates through March 2021. During the three months ended March 31, 2016, we had the following activity:
Pursuant to ASC 718 – Stock Compensation, we determine the grant date fair value of TSR Grants, and any subsequent re-measurements, based upon a Monte Carlo simulation model. We will recognize the compensation expense ratably over the requisite service period. We are required to re-value the cash awards at the end of each quarter using the same methodology as was used at the initial grant date and adjust the compensation expense accordingly. If at the end of the three-year measurement period the performance criterion is not met, compensation expense previously recognized would be reversed. Compensation expense related to the cash awards was $0.4 million and $0.3 million for the three months ended March 31, 2016 and March 31, 2015, respectively. We recognized total share-based compensation expense of $0.6 million and $0.5 million for the three months ended March 31, 2016 and March 31, 2015, respectively. As of March 31, 2016, we had $7.6 million of total unrecognized compensation expense related to unvested restricted shares and performance based equity and cash awards. This expense is expected to be recognized over a weighted-average period of 4.9 years. |
Taxes |
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Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes Income Taxes We conduct our operations with the intent of meeting the requirements applicable to a REIT under sections 856 through 860 of the Internal Revenue Code. In order to maintain our qualification as a REIT, we are required to distribute annually at least 90% of our REIT taxable income, excluding net capital gain, to our shareholders. As long as we qualify as a REIT, we will generally not be liable for federal corporate income taxes. Certain of our operations, including property management and asset management, as well as ownership of certain land, are conducted through our taxable REIT subsidiaries (“TRSs”) which allows us to provide certain services and conduct certain activities that are not generally considered as qualifying REIT activities. Deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and the bases of such assets and liabilities as measured by tax laws. Deferred tax assets are reduced by a valuation allowance to the amount where realization is more likely than not assured after considering all available evidence, including expected taxable earnings and potential tax planning strategies. Our temporary differences primarily relate to deferred compensation, depreciation, land basis differences, and net operating loss carry forwards. As of March 31, 2016, we had a federal and state deferred tax asset of $10.8 million and a valuation allowance of $10.8 million. Our deferred tax assets are reduced by an offsetting valuation allowance where there is uncertainty regarding their realizability. We believe that it is more likely than not that the results of future operations will not generate sufficient taxable income to recognize the deferred tax assets. These future operations are primarily dependent upon the profitability of our TRSs, the timing and amounts of gains on land sales, and other factors affecting the results of operations of the TRSs. If in the future we are able to conclude it is more likely than not that we will realize a future benefit from a deferred tax asset, we will reduce the related valuation allowance by the appropriate amount. The first time this occurs, it will result in a net deferred tax asset on our balance sheet and an income tax benefit of equal magnitude in our statement of operations in the period we make the determination. We recorded income tax provisions of approximately $62,000 and $22,000 for the three months ended March 31, 2016 and 2015, respectively. Sales Taxes We collect various taxes from tenants and remit these amounts, on a net basis, to the applicable taxing authorities. |
Commitments and Contingencies |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Construction Costs In connection with the development and expansion of various shopping centers as of March 31, 2016, we had entered into agreements for construction costs of approximately $15.2 million. Litigation We are currently involved in certain litigation arising in the ordinary course of business; however, we do not believe that any of this litigation will have a material effect on our consolidated financial statements. Leases Operating Leases We lease office space for our corporate headquarters under an operating lease that expires in August 2019. Capital Leases We have a ground lease at Buttermilk Towne Center which we have recorded as a capital lease that expires in December 2032. We recognized rent and interest expense related to the operating and capital leases of $0.1 million and $0.2 million for the three months ended March 31, 2016 and 2015, respectively. |
Subsequent Events |
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Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the date that the condensed consolidated financial statements were issued. Subsequent to March 31, 2016 we executed an agreement to sell two wholly owned income producing properties for a total purchase price of $28.5 million. In addition we executed, on behalf of our partner, an agreement to sell a joint venture property, in which we have a 7% ownership interest, in the amount of approximately $19.0 million. All contracts are subject to buyers completing their due diligence process. |
Organization and Basis of Presentations (Policies) |
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization | Organization Ramco-Gershenson Properties Trust, together with its subsidiaries (the “Company” or "RPT"), is a real estate investment trust (“REIT”) engaged in the business of owning, developing, redeveloping, acquiring, managing and leasing large multi-anchored shopping centers primarily in a number of the largest metropolitan markets in the central United States. As of March 31, 2016, our property portfolio consisted of 69 wholly owned shopping centers and one office building comprising approximately 15.2 million square feet. We also have ownership interests, ranging from 7% to 30%, in three joint ventures, that each own a single shopping center. Our joint ventures are reported using equity method accounting. We earn fees from the joint ventures for managing, leasing and redeveloping the shopping centers they own. In addition, we own interests in several land parcels that are available for development or sale. Most of our properties are anchored by supermarkets and/or national chain stores. Our credit risk, therefore, is concentrated in the retail industry. |
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Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and our majority owned subsidiary, the Operating Partnership, Ramco-Gershenson Properties, L.P. (the "OP") (97.6% owned by the Company at March 31, 2016 and December 31, 2015), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest. During the first quarter of 2016 we adopted Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The Company evaluated the application of ASU No. 2015-02 and concluded that no change was required to its accounting of its interests in less than wholly owned joint ventures, however, the Operating Partnership now meets the criteria as a variable interest entity. The Company’s significant asset is its investment in the Operating Partnership, and consequently, substantially all of our assets and liabilities represent those assets and liabilities of the Operating Partnership. We have elected to be a REIT for federal income tax purposes. All intercompany balances and transactions have been eliminated in consolidation. The information furnished is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015. The preparation of our unaudited financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and reported amounts that are not readily apparent from other sources. Actual results could differ from those estimates. |
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Reclassifications and Revisions | Reclassifications and Revisions Certain reclassifications of prior period amounts have been made in the condensed consolidated financial statements and footnotes in order to conform to the current presentation. In previously filed quarterly reports, the Company incorrectly calculated comprehensive income attributable to noncontrolling interest. Accordingly, the Condensed Consolidated Statements of Comprehensive Income have been revised. The revision resulted in a decrease to previously reported comprehensive income attributable to RPT as follows:
There was no impact to the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Shareholders’ Equity or to the Company’s cash position resulting from this revision. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") updated ASC Topic 718 "Compensation - Stock Compensation" with ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting". ASU 2016-09 simplifies several aspects of share-based payment award transactions, including tax consequences, classification of awards and the classification on the statement of cash flows. ASU 2016-09 is effective for annual periods (including interim periods within those periods) beginning after December 15, 2016. Early adoption is permitted. We are in the process of evaluating the impact of this new guidance. In February 2016, the FASB updated ASC Topic 842 "Leases." In ASU 2016-02, which requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not direct leasing costs. ASU 2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted upon issuance using a modified retrospective approach. We are currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing GAAP revenue recognition guidance as well as impact the existing GAAP guidance governing the sale of nonfinancial assets. The standard’s core principle is that a company will recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations. In doing so, companies will need to exercise more judgment and make more estimates than under existing GAAP guidance. ASU 2014-09 will be effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption is permitted in periods ending after December 15, 2016. We have not yet selected a transition method nor have we determined the effect of ASU 2014-09 on our consolidated financial statements. |
Organization and Basis of Presentations (Tables) |
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revision to Comprehensive Income | The revision resulted in a decrease to previously reported comprehensive income attributable to RPT as follows:
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Property Acquisitions and Dispositions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disposal Activity | The following table provides a summary of our disposition activity for the three months ended March 31, 2016:
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Equity Investments in Unconsolidated Joint Ventures (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Combined Financial Information for Unconsolidated Joint Ventures, Balance Sheets | The combined condensed financial information for our unconsolidated joint ventures is summarized as follows:
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Summary of Combined Financial Information for Unconsolidated Entities, Statements of Operations |
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Information of Fees Earned | The following table provides information for our fees earned which are reported in our condensed consolidated statements of operations:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Mortgages, Notes Payable and Capital Lease Obligation | The following table summarizes our mortgages and notes payable and capital lease obligation as of March 31, 2016 and December 31, 2015:
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Scheduled Principal Payments on Mortgages and Notes Payable | The following table presents scheduled principal payments on mortgages and notes payable as of March 31, 2016:
(1) Scheduled maturities in 2018 include the $76.0 million balance on the unsecured revolving credit facility drawn as of March 31, 2016. |
Fair Value (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015.
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Notional Values and Fair Values of Derivative Financial Instruments | The following table summarizes the notional values and fair values of our derivative financial instruments as of March 31, 2016:
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Summary of Effect of Derivative Financial Instruments on Condensed Consolidated Statements of Operations | The effect of derivative financial instruments on our condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 is summarized as follows:
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Earnings Per Common Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (“EPS”):
(1) The assumed conversion of preferred shares is anti-dilutive for all other periods presented and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS for those periods. |
Real Estate - Additional Information (Detail) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Real Estate [Abstract] | ||
Land held for development or sale | $ 39.5 | $ 39.6 |
Constructions in progress | $ 26.3 | $ 20.6 |
Equity Investments in Unconsolidated Joint Ventures - Additional Information (Detail) |
Mar. 31, 2016
partnership_unit
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Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 3 |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership interest | 7.00% |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Percentage of ownership interest | 30.00% |
Equity Investments in Unconsolidated Joint Ventures - Summary of Combined Financial Information of Unconsolidated Entities, Balance Sheets (Detail) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
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ASSETS | ||
Investment in real estate, net | $ 63,145 | $ 63,623 |
Other assets | 4,553 | 4,230 |
Total Assets | 67,698 | 67,853 |
LIABILITIES AND OWNERS' EQUITY | ||
Other liabilities | 765 | 750 |
Owners' equity | 66,933 | 67,103 |
Total Liabilities and Owners' Equity | 67,698 | 67,853 |
RPT's equity investments in unconsolidated joint ventures | $ 4,365 | $ 4,325 |
Equity Investments in Unconsolidated Joint Ventures - Summary of Combined Financial Information of Unconsolidated Entities, Statements of Operations (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Equity Method Investments and Joint Ventures [Abstract] | ||
Total revenue | $ 1,709 | $ 10,625 |
Total expenses | 1,047 | 7,296 |
Income before other income and expense | 662 | 3,329 |
Interest expense | 0 | (1,793) |
Amortization of deferred financing fees | 0 | (74) |
Net income | 662 | 1,462 |
RPT's share of earnings from unconsolidated joint ventures | $ 109 | $ 2,660 |
Equity Investments in Unconsolidated Joint Ventures - Information of Fees Earned (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Equity Method Investments and Joint Ventures [Abstract] | ||
Management fees | $ 95 | $ 399 |
Leasing fees | 14 | 120 |
Construction fees | 1 | 13 |
Total | $ 110 | $ 532 |
Debt - Summary of Mortgages, Notes Payable and Capital Lease Obligation (Detail) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Debt Disclosure [Abstract] | ||
Senior unsecured notes | $ 460,000 | $ 460,000 |
Unsecured term loan facilities | 210,000 | 210,000 |
Fixed rate mortgages | 300,960 | 322,457 |
Unsecured revolving credit facility | 76,000 | 60,000 |
Junior subordinated notes | 28,125 | 28,125 |
Subtotal debt | 1,075,085 | 1,080,582 |
Unamortized premium | 6,467 | 6,935 |
Unamortized deferred financing costs | (3,970) | (3,806) |
Total debt | 1,077,582 | 1,083,711 |
Capital lease obligation | $ 1,108 | $ 1,108 |
Debt - Scheduled Principal Payments on Mortgages and Notes Payable (Detail) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Debt Disclosure [Abstract] | ||
2016 (April 1 - December 31) | $ 14,348 | |
2017 | 129,096 | |
2018 | 115,132 | |
2019 | 5,860 | |
2020 | 102,269 | |
Thereafter | 708,380 | |
Subtotal debt | 1,075,085 | $ 1,080,582 |
Unamortized premium | 6,467 | 6,935 |
Unamortized deferred financing costs | (3,970) | (3,806) |
Total debt | $ 1,077,582 | $ 1,083,711 |
Fair Value - Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative liabilities - interest rate swaps | $ (6,376) | $ (2,241) |
Derivative assets - interest rate swaps | 642 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative liabilities - interest rate swaps | $ (6,376) | (2,241) |
Derivative assets - interest rate swaps | $ 642 |
Fair Value - Additional Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Fair Value Measurements [Line Items] | ||
Long term debt, carrying amount | $ 1,077,582 | $ 1,083,711 |
Level 2 | Fixed Rate Mortgages | ||
Fair Value Measurements [Line Items] | ||
Long term debt, carrying amount | 971,000 | 996,300 |
Long term debt, fair value | 992,800 | |
Level 2 | Floating Rate Debt | ||
Fair Value Measurements [Line Items] | ||
Long term debt, carrying amount | 104,100 | 87,400 |
Long term debt, fair value | $ 104,100 | $ 87,400 |
Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative (Effective Portion) | $ (5,375) | $ (2,221) |
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | (598) | (756) |
Interest Expense | Derivative Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative (Effective Portion) | (716) | (825) |
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | (74) | (288) |
Interest Expense | Derivative Liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative (Effective Portion) | (4,659) | (1,396) |
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | $ (524) | $ (468) |
Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Income Taxes [Line Items] | ||
Percentage of taxable income required to distribute annually to maintain REIT qualification, (in hundredths) | 90.00% | |
Income tax provision (benefit) | $ 62 | $ 22 |
Federal and State Income Taxes | ||
Income Taxes [Line Items] | ||
Federal and state deferred tax asset | 10,800 | |
Federal and state deferred tax asset, valuation allowance | $ 10,800 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Construction costs related to development and expansion | $ 15.2 | |
Operating and capital leases expenses | $ 0.1 | $ 0.2 |
Subsequent Events Subsequent Events (Details) - Subsequent Event $ in Millions |
May. 05, 2016
USD ($)
property
|
---|---|
Income Producing Property Disposition | |
Subsequent Event [Line Items] | |
Number of properties | property | 2 |
Executed agreement price | $ 28.5 |
Joint Venture | |
Subsequent Event [Line Items] | |
Executed agreement price | $ 19.0 |
Ownership interest | 7.00% |
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