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 |
Emerging growth company o |
Page No. | ||
Condensed Consolidated Balance Sheets – September 30, 2017 (unaudited) and December 31, 2016 | ||
Three and Nine Months Ended September 30, 2017 and 2016 (unaudited) | ||
Condensed Consolidated Statement of Shareholders’ Equity - Nine Months Ended September 30, 2017 (unaudited) | ||
Condensed Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2017 and 2016 (unaudited) | ||
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except per share amounts) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(unaudited) | (as revised) | ||||||
ASSETS | |||||||
Income producing properties, at cost: | |||||||
Land | $ | 409,863 | $ | 374,889 | |||
Buildings and improvements | 1,790,464 | 1,757,781 | |||||
Less accumulated depreciation and amortization | (345,432 | ) | (345,204 | ) | |||
Income producing properties, net | 1,854,895 | 1,787,466 | |||||
Construction in progress and land available for development or sale | 56,099 | 61,224 | |||||
Real estate held for sale | — | 8,776 | |||||
Net real estate | 1,910,994 | 1,857,466 | |||||
Equity investments in unconsolidated joint ventures | 2,734 | 3,150 | |||||
Cash and cash equivalents | 4,781 | 3,582 | |||||
Restricted cash and escrows | 5,256 | 11,144 | |||||
Accounts receivable (net of allowance for doubtful accounts of $1,882 and $1,861 as of September 30, 2017 and December 31, 2016, respectively) | 25,459 | 24,016 | |||||
Acquired lease intangibles, net | 71,785 | 72,424 | |||||
Other assets, net | 92,042 | 89,716 | |||||
TOTAL ASSETS | $ | 2,113,051 | $ | 2,061,498 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Notes payable, net | $ | 1,081,510 | $ | 1,021,223 | |||
Capital lease obligation | 1,066 | 1,066 | |||||
Accounts payable and accrued expenses | 55,090 | 57,357 | |||||
Acquired lease intangibles, net | 65,633 | 63,734 | |||||
Other liabilities | 9,273 | 9,893 | |||||
Distributions payable | 19,666 | 19,627 | |||||
TOTAL LIABILITIES | 1,232,238 | 1,172,900 | |||||
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 September 30, 2017 and December 31, 2016 | 92,427 | 92,427 | |||||
Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 79,366 and 79,272 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 794 | 793 | |||||
Additional paid-in capital | 1,160,054 | 1,158,430 | |||||
Accumulated distributions in excess of net income | (394,516 | ) | (384,934 | ) | |||
Accumulated other comprehensive income | 1,265 | 985 | |||||
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT | 860,024 | 867,701 | |||||
Noncontrolling interest | 20,789 | 20,897 | |||||
TOTAL SHAREHOLDERS' EQUITY | 880,813 | 888,598 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,113,051 | $ | 2,061,498 |
RAMCO-GERSHENSON PROPERTIES TRUST | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
REVENUE | ||||||||||||||||
Minimum rent | $ | 49,736 | $ | 47,591 | $ | 149,970 | $ | 144,540 | ||||||||
Percentage rent | 106 | 71 | 570 | 511 | ||||||||||||
Recovery income from tenants | 14,923 | 15,289 | 46,655 | 48,067 | ||||||||||||
Other property income | 1,078 | 1,055 | 3,310 | 2,927 | ||||||||||||
Management and other fee income | 88 | 73 | 314 | 429 | ||||||||||||
TOTAL REVENUE | 65,931 | 64,079 | 200,819 | 196,474 | ||||||||||||
EXPENSES | ||||||||||||||||
Real estate taxes | 10,948 | 10,269 | 32,670 | 31,710 | ||||||||||||
Recoverable operating expense | 6,660 | 6,475 | 20,699 | 21,227 | ||||||||||||
Non-recoverable operating expense | 825 | 603 | 3,216 | 2,560 | ||||||||||||
Depreciation and amortization | 23,130 | 23,245 | 69,282 | 69,806 | ||||||||||||
Acquisition costs | — | 55 | — | 118 | ||||||||||||
General and administrative expense | 5,952 | 5,787 | 18,775 | 17,075 | ||||||||||||
Provision for impairment | 1,885 | 977 | 8,423 | 977 | ||||||||||||
TOTAL EXPENSES | 49,400 | 47,411 | 153,065 | 143,473 | ||||||||||||
OPERATING INCOME | 16,531 | 16,668 | 47,754 | 53,001 | ||||||||||||
OTHER INCOME AND EXPENSES | ||||||||||||||||
Other (expense) income, net | 123 | (158 | ) | (612 | ) | (307 | ) | |||||||||
Gain on sale of real estate | 24,545 | 9,359 | 35,920 | 35,684 | ||||||||||||
Earnings from unconsolidated joint ventures | 81 | 119 | 223 | 337 | ||||||||||||
Interest expense | (11,586 | ) | (11,140 | ) | (33,871 | ) | (33,818 | ) | ||||||||
Other gain on unconsolidated joint ventures | — | — | — | 215 | ||||||||||||
Loss on extinguishment of debt | — | (847 | ) | — | (847 | ) | ||||||||||
INCOME BEFORE TAX | 29,694 | 14,001 | 49,414 | 54,265 | ||||||||||||
Income tax provision | (65 | ) | (133 | ) | (119 | ) | (234 | ) | ||||||||
NET INCOME | 29,629 | 13,868 | 49,295 | 54,031 | ||||||||||||
Net income attributable to noncontrolling partner interest | (696 | ) | (326 | ) | (1,158 | ) | (1,282 | ) | ||||||||
NET INCOME ATTRIBUTABLE TO RPT | 28,933 | 13,542 | 48,137 | 52,749 | ||||||||||||
Preferred share dividends | (1,675 | ) | (1,675 | ) | (5,026 | ) | (5,026 | ) | ||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 27,258 | $ | 11,867 | $ | 43,111 | $ | 47,723 | ||||||||
EARNINGS PER COMMON SHARE | ||||||||||||||||
Basic | $ | 0.34 | $ | 0.15 | $ | 0.54 | $ | 0.60 | ||||||||
Diluted | $ | 0.33 | $ | 0.15 | $ | 0.54 | $ | 0.60 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||||||||||||||
Basic | 79,381 | 79,249 | 79,337 | 79,226 | ||||||||||||
Diluted | 86,259 | 79,437 | 79,514 | 79,404 | ||||||||||||
Cash Dividend Declared per Common Share | $ | 0.22 | $ | 0.21 | $ | 0.66 | $ | 0.64 | ||||||||
OTHER COMPREHENSIVE INCOME | ||||||||||||||||
Net income | $ | 29,629 | $ | 13,868 | $ | 49,295 | $ | 54,031 | ||||||||
Other comprehensive gain (loss): | ||||||||||||||||
Gain (loss) on interest rate swaps | 196 | 1,745 | 287 | (5,252 | ) | |||||||||||
Comprehensive income | 29,825 | 15,613 | 49,582 | 48,779 | ||||||||||||
Comprehensive income attributable to noncontrolling interest | (701 | ) | (367 | ) | (1,164 | ) | (1,154 | ) | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO RPT | $ | 29,124 | $ | 15,246 | $ | 48,418 | $ | 47,625 |
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
(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 Income | Noncontrolling Interest | Total Shareholders’ Equity | |||||||||||||||||||||
Balance, December 31, 2016 (as revised) | $ | 92,427 | $ | 793 | $ | 1,158,430 | $ | (384,934 | ) | $ | 985 | $ | 20,897 | $ | 888,598 | ||||||||||||
Issuance of common shares, net of issuance costs | — | — | (24 | ) | — | — | — | (24 | ) | ||||||||||||||||||
Redemption of OP unit holders | — | — | — | (1 | ) | — | (7 | ) | (8 | ) | |||||||||||||||||
Share-based compensation and other expense, net of shares withheld for employee taxes | — | 1 | 1,648 | — | — | — | 1,649 | ||||||||||||||||||||
Dividends declared to common shareholders | — | — | — | (52,381 | ) | — | — | (52,381 | ) | ||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | (5,026 | ) | — | — | (5,026 | ) | ||||||||||||||||||
Distributions declared to noncontrolling interests | — | — | — | — | — | (1,266 | ) | (1,266 | ) | ||||||||||||||||||
Dividends declared to deferred shares | — | — | — | (311 | ) | — | — | (311 | ) | ||||||||||||||||||
Other comprehensive income adjustment | — | — | — | — | 280 | 7 | 287 | ||||||||||||||||||||
Net income | — | — | — | 48,137 | — | 1,158 | 49,295 | ||||||||||||||||||||
Balance, September 30, 2017 | $ | 92,427 | $ | 794 | $ | 1,160,054 | $ | (394,516 | ) | $ | 1,265 | $ | 20,789 | $ | 880,813 |
RAMCO GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 49,295 | $ | 54,031 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 69,282 | 69,806 | |||||
Amortization of deferred financing fees | 1,040 | 1,099 | |||||
Income tax provision | 119 | 234 | |||||
Earnings from unconsolidated joint ventures | (223 | ) | (337 | ) | |||
Distributions received from operations of unconsolidated joint ventures | 613 | 382 | |||||
Provision for impairment | 8,423 | 977 | |||||
Loss on extinguishment of debt | — | 847 | |||||
Other gain on unconsolidated joint ventures | — | (215 | ) | ||||
Gain on sale of real estate | (35,920 | ) | (35,684 | ) | |||
Amortization of premium on mortgages, net | (870 | ) | (1,346 | ) | |||
Service-based restricted share expense | 1,970 | 2,150 | |||||
Long-term incentive cash and equity compensation expense | 251 | 827 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | (1,441 | ) | 2,580 | ||||
Acquired lease intangibles and other assets, net | (480 | ) | 522 | ||||
Accounts payable, acquired lease intangibles and other liabilities | (3,201 | ) | (6,110 | ) | |||
Net cash provided by operating activities | 88,858 | 89,763 | |||||
INVESTING ACTIVITIES | |||||||
Acquisition of real estate | (165,882 | ) | — | ||||
Development and capital improvements | (43,966 | ) | (51,146 | ) | |||
Net proceeds from sales of real estate | 121,419 | 88,212 | |||||
Distributions from sale of joint venture property | — | 1,303 | |||||
Change in restricted cash | 1,888 | 682 | |||||
Net cash (used in) provided by investing activities | (86,541 | ) | 39,051 | ||||
FINANCING ACTIVITIES | |||||||
Repayments of mortgages and notes payable | (2,381 | ) | (23,221 | ) | |||
Proceeds on revolving credit facility | 224,000 | 181,000 | |||||
Repayments on revolving credit facility | (161,000 | ) | (231,000 | ) | |||
Payment of deferred financing costs | (2,263 | ) | (457 | ) | |||
Proceeds, net of costs, from issuance of common stock | (24 | ) | (185 | ) | |||
Redemption of operating partnership units for cash | (8 | ) | (1,518 | ) | |||
Shares used for employee taxes upon vesting of awards | (497 | ) | — | ||||
Dividends paid to preferred shareholders | (5,026 | ) | (5,026 | ) | |||
Dividends paid to common shareholders and deferred shares | (52,653 | ) | (50,176 | ) | |||
Distributions paid to operating partnership unit holders | (1,266 | ) | (1,245 | ) | |||
Net cash used in financing activities | (1,118 | ) | (131,828 | ) | |||
Net change in cash and cash equivalents | 1,199 | (3,014 | ) | ||||
Cash and cash equivalents at beginning of period | 3,582 | 6,644 | |||||
Cash and cash equivalents at end of period | $ | 4,781 | $ | 3,630 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash paid for interest (net of capitalized interest of $193 and $640 in 2017 and 2016, respectively) | $ | 29,698 | $ | 32,557 | |||
Proceeds from dispositions held in escrow | $ | — | $ | 18,990 | |||
Decrease in restricted cash attributable to acquired real estate | $ | 4,000 | $ | — |
December 31, 2016 | |||||||||||
As reported | Adjustment | As Revised | |||||||||
(In thousands) | |||||||||||
Other liabilities | $ | 6,800 | $ | 3,093 | $ | 9,893 | |||||
Total liabilities | $ | 1,169,807 | $ | 3,093 | $ | 1,172,900 | |||||
Accumulated distributions in excess of net income | $ | (381,912 | ) | $ | (3,022 | ) | $ | (384,934 | ) | ||
Noncontrolling interest | $ | 20,968 | $ | (71 | ) | $ | 20,897 | ||||
Total shareholder's equity | $ | 891,691 | $ | (3,093 | ) | $ | 888,598 | ||||
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Accumulated distributions in excess of net income, as reported | $ | (381,912 | ) | $ | (365,747 | ) | $ | (358,525 | ) | ||
Adjustment | (3,022 | ) | (3,022 | ) | (3,022 | ) | |||||
Accumulated distributions in excess of net income, as revised | $ | (384,934 | ) | $ | (368,769 | ) | $ | (361,547 | ) | ||
Noncontrolling interest, as reported | $ | 20,968 | $ | 22,053 | $ | 25,861 | |||||
Adjustment | (71 | ) | (71 | ) | (71 | ) | |||||
Noncontrolling interest, as revised | $ | 20,897 | $ | 21,982 | $ | 25,790 | |||||
Gross | ||||||||||||||||||
Property Name | Location | GLA (in thousands) | Acreage | Date Acquired | Purchase Price | Assumed Debt | ||||||||||||
(In thousands) | ||||||||||||||||||
Providence Marketplace | Mt. Juliet, TN | 632 | N/A | 02/17/17 | $ | 115,126 | $ | — | ||||||||||
Webster Place | Chicago, IL | 135 | N/A | 02/17/17 | 53,162 | — | ||||||||||||
Total consolidated income producing acquisitions | 767 | — | $ | 168,288 | $ | — | ||||||||||||
Troy Marketplace - Outparcel | Troy, MI | N/A | 0.4 | 08/24/17 | $ | 901 | $ | — | ||||||||||
Troy Marketplace - Outparcel | Troy, MI | N/A | 0.4 | 06/30/17 | 175 | $ | — | |||||||||||
Troy Marketplace - Outparcel | Troy, MI | N/A | 0.5 | 01/17/17 | 475 | — | ||||||||||||
Total consolidated land / outparcel acquisitions | — | 1.3 | $ | 1,551 | $ | — | ||||||||||||
Total Acquisitions | 767 | 1.3 | $ | 169,839 | $ | — | ||||||||||||
Allocated Fair Value | ||||
(In thousands) | ||||
Land | $ | 52,132 | ||
Buildings and improvements | 107,156 | |||
Above market leases | 409 | |||
Lease origination costs | 12,885 | |||
Other assets | 3,899 | |||
Below market leases | (6,642 | ) | ||
Net assets acquired | $ | 169,839 | ||
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | |||||||
(In thousands) | ||||||||
Total revenue from 2017 acquisitions | $ | 3,862 | $ | 9,477 | ||||
Net income from 2017 acquisitions | $ | 687 | $ | 1,674 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, 2017 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||||
Consolidated revenue | $ | 65,931 | $ | 68,445 | $ | 202,714 | $ | 207,846 | ||||||||
Consolidated net income available to common shareholders | $ | 27,258 | $ | 12,366 | $ | 43,346 | $ | 49,235 |
Gross | ||||||||||||||||||
Property Name | Location | GLA | Acreage | Date Sold | Sales Price | Gain on Sale | ||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Hoover Eleven | Warren, MI | 281 | N/A | 09/29/17 | $ | 20,350 | $ | — | ||||||||||
Auburn Mile - Aqua Tots | Auburn Hills, MI | 5 | N/A | 08/25/17 | 1,000 | 123 | ||||||||||||
New Towne Plaza | Canton Township, MI | 193 | N/A | 08/04/17 | 26,000 | 15,899 | ||||||||||||
Clinton Valley | Sterling Heights, MI | 205 | N/A | 08/01/17 | 23,500 | 7,168 | ||||||||||||
Roseville Towne Center | Roseville, MI | 77 | N/A | 07/24/17 | 10,250 | (291 | ) | |||||||||||
Gaines Marketplace | Caledonia, MI | 60 | N/A | 07/07/17 | 9,500 | 690 | ||||||||||||
Walgreen's Data Center | Mount Prospect, IL | 73 | N/A | 07/07/17 | 6,200 | 252 | ||||||||||||
Auburn Mile | Auburn Hills, MI | 91 | N/A | 03/17/17 | 13,311 | 7,005 | ||||||||||||
Oak Brook Square | Flint, MI | 152 | N/A | 02/10/17 | 14,200 | 4,185 | ||||||||||||
Total income producing dispositions | 1,137 | — | $ | 124,311 | $ | 35,031 | ||||||||||||
River City Marketplace - Outparcel | Jacksonville, FL | N/A | 0.9 | 09/29/17 | $ | 360 | $ | 63 | ||||||||||
Hartland - Outparcel | Hartland, MI | N/A | 1.6 | 08/04/17 | 550 | 148 | ||||||||||||
River City Marketplace | Jacksonville, FL | N/A | 1.4 | 07/27/17 | 675 | 493 | ||||||||||||
Lakeland Park Center - Outparcel | Lakeland, FL | N/A | 1.8 | 03/31/17 | 1,305 | 185 | ||||||||||||
Total outparcel dispositions | — | 5.7 | $ | 2,890 | $ | 889 | ||||||||||||
Total consolidated dispositions | 1,137 | 5.7 | $ | 127,201 | $ | 35,920 | ||||||||||||
Balance Sheets | September 30, 2017 | December 31, 2016 | ||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Investment in real estate, net | $ | 43,001 | $ | 43,995 | ||||
Other assets | 3,234 | 3,712 | ||||||
Total Assets | $ | 46,235 | $ | 47,707 | ||||
LIABILITIES AND OWNERS' EQUITY | ||||||||
Other liabilities | $ | 488 | $ | 219 | ||||
Owners' equity | 45,747 | 47,488 | ||||||
Total Liabilities and Owners' Equity | $ | 46,235 | $ | 47,707 | ||||
RPT's equity investments in unconsolidated joint ventures | $ | 2,734 | $ | 3,150 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Statements of Operations | 2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | ||||||||||||||||
Total revenue | $ | 1,192 | $ | 1,279 | $ | 3,485 | $ | 4,588 | ||||||||
Total expenses | 745 | 915 | 2,250 | 3,017 | ||||||||||||
Income before other income and expense | 447 | 364 | 1,235 | 1,571 | ||||||||||||
Gain on sale of real estate | — | — | — | 371 | ||||||||||||
Net income | $ | 447 | $ | 364 | $ | 1,235 | $ | 1,942 | ||||||||
RPT's share of earnings from unconsolidated joint ventures | $ | 81 | $ | 119 | $ | 223 | $ | 337 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Management fees | $ | 69 | $ | 65 | $ | 206 | $ | 251 | |||||||
Leasing fees | 19 | 6 | 108 | 89 | |||||||||||
Construction fees | — | 2 | — | 42 | |||||||||||
Disposition fees | — | — | — | 47 | |||||||||||
Total | $ | 88 | $ | 73 | $ | 314 | $ | 429 | |||||||
Notes Payable and Capital Lease Obligation | September 30, 2017 | December 31, 2016 | ||||||
(In thousands) | ||||||||
Senior unsecured notes | $ | 535,000 | $ | 535,000 | ||||
Unsecured term loan facilities | 210,000 | 210,000 | ||||||
Fixed rate mortgages | 158,337 | 160,718 | ||||||
Unsecured revolving credit facility | 149,000 | 86,000 | ||||||
Junior subordinated notes | 28,125 | 28,125 | ||||||
1,080,462 | 1,019,843 | |||||||
Unamortized premium | 4,251 | 5,120 | ||||||
Unamortized deferred financing costs | (3,203 | ) | (3,740 | ) | ||||
Total notes payable | $ | 1,081,510 | $ | 1,021,223 | ||||
Capital lease obligation | $ | 1,066 | $ | 1,066 | ||||
Year Ending December 31, | |||
(In thousands) | |||
2017 | $ | 822 | |
2018 | 39,132 | ||
2019 | 5,859 | ||
2020 | 102,269 | ||
2021 (1) | 263,508 | ||
Thereafter | 668,872 | ||
Subtotal debt | 1,080,462 | ||
Unamortized premium | 4,251 | ||
Unamortized deferred financing costs | (3,203 | ) | |
Total debt | $ | 1,081,510 | |
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 | ||||||||||
September 30, 2017 | (In thousands) | |||||||||||
Derivative assets - interest rate swaps | Other assets | $ | 1,725 | $ | 1,725 | |||||||
Derivative liabilities - interest rate swaps | Other liabilities | $ | (595 | ) | $ | (595 | ) | |||||
December 31, 2016 | ||||||||||||
Derivative assets - interest rate swaps | Other assets | $ | 2,143 | $ | 2,143 | |||||||
Derivative liabilities - interest rate swaps | Other liabilities | $ | (1,300 | ) | $ | (1,300 | ) | |||||
Hedge | Notional | Fixed | Fair | Expiration | |||||||||||
Underlying Debt | Type | Value | Rate | Value | Date | ||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Derivative Assets | |||||||||||||||
Unsecured term loan | Cash Flow | $ | 50,000 | 1.460 | % | $ | 297 | 05/2020 | |||||||
Unsecured term loan | Cash Flow | 20,000 | 1.498 | % | 205 | 05/2021 | |||||||||
Unsecured term loan | Cash Flow | 15,000 | 1.490 | % | 159 | 05/2021 | |||||||||
Unsecured term loan | Cash Flow | 40,000 | 1.480 | % | 436 | 05/2021 | |||||||||
$ | 125,000 | $ | 1,097 | ||||||||||||
Derivative Assets - Forward Swaps | |||||||||||||||
Unsecured term loan | Cash Flow | 60,000 | 1.770 | % | 628 | 03/2023 | |||||||||
Total Derivative Assets | $ | 185,000 | $ | 1,725 | |||||||||||
Derivative Liabilities | |||||||||||||||
Unsecured term loan | Cash Flow | $ | 30,000 | 2.048 | % | $ | (178 | ) | 10/2018 | ||||||
Unsecured term loan | Cash Flow | 25,000 | 1.850 | % | (98 | ) | 10/2018 | ||||||||
Unsecured term loan | Cash Flow | 5,000 | 1.840 | % | (19 | ) | 10/2018 | ||||||||
Unsecured term loan | Cash Flow | 15,000 | 2.150 | % | (180 | ) | 05/2020 | ||||||||
Unsecured term loan | Cash Flow | 10,000 | 2.150 | % | (120 | ) | 05/2020 | ||||||||
Total Derivative Liabilities | $ | 85,000 | $ | (595 | ) | ||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain (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 September 30, | Three Months Ended September 30, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Interest rate contracts - assets | $ | (44 | ) | $ | — | Interest Expense | $ | 62 | $ | — | ||||||||
Interest rate contracts - liabilities | 360 | 1,093 | Interest Expense | (182 | ) | 652 | ||||||||||||
Total | $ | 316 | $ | 1,093 | Total | $ | (120 | ) | $ | 652 | ||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain (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 | Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Interest rate contracts - assets | $ | (98 | ) | $ | (716 | ) | Interest Expense | $ | (319 | ) | $ | 74 | ||||||
Interest rate contracts - liabilities | 1,437 | (6,436 | ) | Interest Expense | (733 | ) | 1,826 | |||||||||||
Total | $ | 1,339 | $ | (7,152 | ) | Total | $ | (1,052 | ) | $ | 1,900 | |||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net income | $ | 29,629 | $ | 13,868 | $ | 49,295 | $ | 54,031 | ||||||||
Net income attributable to noncontrolling interest | (696 | ) | (326 | ) | (1,158 | ) | (1,282 | ) | ||||||||
Allocation of income to restricted share awards | (135 | ) | (90 | ) | (310 | ) | (287 | ) | ||||||||
Income attributable to RPT | 28,798 | 13,452 | 47,827 | 52,462 | ||||||||||||
Preferred share dividends | (1,675 | ) | (1,675 | ) | (5,026 | ) | (5,026 | ) | ||||||||
Net income available to common shareholders | 27,123 | 11,777 | 42,801 | 47,436 | ||||||||||||
Add back preferred shares for dilution (1) | 1,675 | — | — | — | ||||||||||||
Net income available to common shareholders - Diluted | $ | 28,798 | $ | 11,777 | $ | 42,801 | $ | 47,436 | ||||||||
Weighted average shares outstanding, Basic | 79,381 | 79,249 | 79,337 | 79,226 | ||||||||||||
Restricted stock awards using the treasury method | 165 | 188 | 177 | 178 | ||||||||||||
Dilutive effect of securities (1) | 6,713 | — | — | — | ||||||||||||
Weighted average shares outstanding, Diluted | 86,259 | 79,437 | 79,514 | 79,404 | ||||||||||||
Income per common share, Basic | $ | 0.34 | $ | 0.15 | $ | 0.54 | $ | 0.60 | ||||||||
Income per common share, Diluted | $ | 0.33 | $ | 0.15 | $ | 0.54 | $ | 0.60 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Issued | Converted | Issued | Converted | Issued | Converted | Issued | Converted | |||||||||||||
Operating Partnership Units | 1,917 | 1,917 | 1,917 | 1,917 | 1,917 | 1,917 | 1,917 | 1,917 | ||||||||||||
Series D Preferred Shares | — | — | 1,849 | 6,592 | 1,849 | 6,713 | 1,849 | 6,592 | ||||||||||||
Performance Share Units | 98 | — | — | — | 98 | — | — | — | ||||||||||||
2,015 | 1,917 | 3,766 | 8,509 | 3,864 | 8,630 | 3,766 | 8,509 | |||||||||||||
• | granted 214,804 shares of service-based restricted stock. The service-based awards were valued based on our closing stock price as of the grant date; and |
• | granted performance-based equity and cash awards that are earned subject to a future performance measurement based on a three-year shareholder return peer comparison (“TSR Grants”). |
Leasing Transactions | Square Footage | Base Rent/SF (1) | Prior Rent/SF (2) | Tenant Improvements/SF (3) | Leasing Commissions/SF | |||
Renewals | 129 | 760,830 | $16.62 | $15.48 | $0.07 | $0.15 | ||
New Leases - Comparable | 17 | 105,865 | $19.60 | $16.58 | $24.29 | $3.79 | ||
New Leases - Non-Comparable (4) | 30 | 106,717 | $17.02 | N/A | $52.37 | $4.77 | ||
Total | 176 | 973,412 | $16.99 | N/A | $8.43 | $1.05 | ||
(2) | Prior rent represents minimum rent, if any, paid by the prior tenant in the final 12 months of the term. |
(3) | Includes tenant improvement cost, tenant allowances, and landlord costs. Excludes first generation space and new leases related to development and redevelopment activity. |
Three Months Ended September 30, | |||||||||||||||
2017 | 2016 | Dollar Change | Percent Change | ||||||||||||
(In thousands) | |||||||||||||||
Total revenue | $ | 65,931 | $ | 64,079 | $ | 1,852 | 2.9 | % | |||||||
Real estate taxes | 10,948 | 10,269 | 679 | 6.6 | % | ||||||||||
Recoverable operating expense | 6,660 | 6,475 | 185 | 2.9 | % | ||||||||||
Non-recoverable operating expense | 825 | 603 | 222 | 36.8 | % | ||||||||||
Depreciation and amortization | 23,130 | 23,245 | (115 | ) | (0.5 | )% | |||||||||
General and administrative expense | 5,952 | 5,787 | 165 | 2.9 | % | ||||||||||
Provision for impairment | 1,885 | 977 | 908 | 92.9 | % | ||||||||||
Gain on sale of real estate | 24,545 | 9,359 | 15,186 | 162.3 | % | ||||||||||
Earnings from unconsolidated joint ventures | 81 | 119 | (38 | ) | (31.9 | )% | |||||||||
Interest expense | 11,586 | 11,140 | 446 | 4.0 | % | ||||||||||
Loss on extinguishment of debt | — | (847 | ) | 847 | NM | ||||||||||
Preferred share dividends | 1,675 | 1,675 | — | — | % | ||||||||||
Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | Dollar Change | Percent Change | ||||||||||||
(In thousands) | |||||||||||||||
Total revenue | $ | 200,819 | $ | 196,474 | $ | 4,345 | 2.2 | % | |||||||
Real estate taxes | 32,670 | 31,710 | 960 | 3.0 | % | ||||||||||
Recoverable operating expense | 20,699 | 21,227 | (528 | ) | (2.5 | )% | |||||||||
Non-recoverable operating expense | 3,216 | 2,560 | 656 | 25.6 | % | ||||||||||
Depreciation and amortization | 69,282 | 69,806 | (524 | ) | (0.8 | )% | |||||||||
General and administrative expense | 18,775 | 17,075 | 1,700 | 10.0 | % | ||||||||||
Provision for impairment | 8,423 | 977 | 7,446 | 762.1 | % | ||||||||||
Gain on sale of real estate | 35,920 | 35,684 | 236 | 0.7 | % | ||||||||||
Earnings from unconsolidated joint ventures | 223 | 337 | (114 | ) | (33.8 | )% | |||||||||
Interest expense | 33,871 | 33,818 | 53 | 0.2 | % | ||||||||||
Other gain on unconsolidated joint ventures | — | 215 | (215 | ) | NM | ||||||||||
Loss on extinguishment of debt | — | (847 | ) | 847 | NM | ||||||||||
Preferred share dividends | 5,026 | 5,026 | — | — | % | ||||||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Net cash provided by operating activities | $ | 88,858 | $ | 89,763 | |||
Net cash (used in) provided by investing activities | (86,541 | ) | 39,051 | ||||
Net cash used in financing activities | (1,118 | ) | (131,828 | ) | |||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Net cash provided by operating activities | $ | 88,858 | $ | 89,763 | |||
Cash distributions to preferred shareholders | (5,026 | ) | (5,026 | ) | |||
Cash distributions to common shareholders and deferred shares | (52,653 | ) | (50,176 | ) | |||
Cash distributions to operating partnership unit holders | (1,266 | ) | (1,245 | ) | |||
Total distributions | (58,945 | ) | (56,447 | ) | |||
Surplus | $ | 29,913 | $ | 33,316 | |||
Payments due by period | |||||||||||||||||||
Contractual Obligations | Total | Less than 1 year (1) | 1-3 years | 4-5 years | More than 5 years | ||||||||||||||
(In thousands) | |||||||||||||||||||
Mortgages and notes payable: | |||||||||||||||||||
Scheduled amortization | $ | 16,164 | $ | 822 | $ | 8,095 | $ | 3,956 | $ | 3,291 | |||||||||
Payments due at maturity | 1,064,298 | — | 139,165 | 311,949 | 613,184 | ||||||||||||||
Total mortgages and notes payable (2) | 1,080,462 | 822 | 147,260 | 315,905 | 616,475 | ||||||||||||||
Interest expense (3) | 275,551 | 10,942 | 122,157 | 60,179 | 82,273 | ||||||||||||||
Employment contracts | 3,226 | 414 | 2,812 | — | — | ||||||||||||||
Capital lease (4) | 1,600 | 100 | 300 | 200 | 1,000 | ||||||||||||||
Operating leases | 101,003 | 373 | 3,635 | 1,712 | 95,283 | ||||||||||||||
Construction commitments | 26,561 | 26,561 | — | — | — | ||||||||||||||
Development obligations | 5,369 | 529 | 1,681 | 591 | 2,568 | ||||||||||||||
Total contractual obligations | $ | 1,493,772 | $ | 39,741 | $ | 277,845 | $ | 378,587 | $ | 797,599 | |||||||||
(1) | Amounts represent balance of obligation for the remainder of 2017. |
(2) | Excludes $4.3 million of unamortized mortgage debt premium and $3.2 million in net deferred financing costs. |
(3) | Variable-rate debt interest is calculated using rates at September 30, 2017. |
(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 $4.8 million in cash) | $ | 1,076,747 | |
Common shares, OP units, and dilutive securities based on market price of $13.01 at September 30, 2017 | $ | 1,059,834 | |
Convertible perpetual preferred shares based on market price of $54.12 at September 30, 2017 | $ | 100,068 | |
Total market capitalization | 2,236,649 | ||
Net debt to total market capitalization(1) | 48.1 | % | |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income | $ | 29,629 | $ | 13,868 | $ | 49,295 | $ | 54,031 | |||||||
Net income attributable to noncontrolling partner interest | (696 | ) | (326 | ) | (1,158 | ) | (1,282 | ) | |||||||
Preferred share dividends | (1,675 | ) | (1,675 | ) | (5,026 | ) | (5,026 | ) | |||||||
Net income available to common shareholders | 27,258 | 11,867 | 43,111 | 47,723 | |||||||||||
Adjustments: | |||||||||||||||
Rental property depreciation and amortization expense | 23,071 | 23,201 | 69,104 | 69,680 | |||||||||||
Pro-rata share of real estate depreciation from unconsolidated joint ventures | 77 | 74 | 229 | 237 | |||||||||||
Gain on sale of depreciable real estate | (23,841 | ) | (9,359 | ) | (35,032 | ) | (34,108 | ) | |||||||
Gain on sale of joint venture depreciable real estate (1) | — | — | — | (26 | ) | ||||||||||
Provision for impairment on income-producing properties | 1,885 | — | 8,423 | — | |||||||||||
Other gain on unconsolidated joint ventures (2) | — | — | — | (215 | ) | ||||||||||
FFO available to common shareholders | 28,450 | 25,783 | 85,835 | 83,291 | |||||||||||
Noncontrolling interest in Operating Partnership (1) | — | 326 | 1,158 | 1,282 | |||||||||||
Preferred share dividends (assuming conversion) | 1,675 | 1,675 | 5,026 | 5,026 | |||||||||||
FFO available to common shareholders and dilutive securities | 30,125 | 27,784 | 92,019 | 89,599 | |||||||||||
Gain on sale of land | (704 | ) | — | (889 | ) | (1,576 | ) | ||||||||
Provision for impairment on land available for development or sale | — | 977 | — | 977 | |||||||||||
Severance expense | 88 | 369 | 655 | 450 | |||||||||||
Loss on extinguishment of debt | — | 847 | — | 847 | |||||||||||
Acquisition costs | — | 55 | — | 118 | |||||||||||
Cost associated with early extinguishment of debt | 81 | — | 81 | — | |||||||||||
Operating FFO available to common shareholders and dilutive securities | $ | 29,590 | $ | 30,032 | $ | 91,866 | $ | 90,415 | |||||||
Weighted average common shares | 79,381 | 79,249 | 79,337 | 79,226 | |||||||||||
Shares issuable upon conversion of Operating Partnership Units (1) | — | 1,917 | 1,917 | 1,951 | |||||||||||
Dilutive effect of restricted stock | 165 | 188 | 176 | 178 | |||||||||||
Shares issuable upon conversion of preferred shares (2) | 6,713 | 6,592 | 6,713 | 6,592 | |||||||||||
Weighted average equivalent shares outstanding, diluted | 86,259 | 87,946 | 88,143 | 87,947 | |||||||||||
Diluted earnings per share (3) | $ | 0.33 | $ | 0.15 | $ | 0.54 | $ | 0.60 | |||||||
Per share adjustments for FFO available to common shareholders and dilutive securities | 0.02 | 0.17 | 0.50 | 0.42 | |||||||||||
FFO available to common shareholders and dilutive securities per share, diluted | $ | 0.35 | $ | 0.32 | $ | 1.04 | $ | 1.02 | |||||||
Per share adjustments for Operating FFO available to common shareholders and dilutive securities | (0.01 | ) | 0.02 | — | 0.01 | ||||||||||
Operating FFO available to common shareholders and dilutive securities per share, diluted | $ | 0.34 | $ | 0.34 | $ | 1.04 | $ | 1.03 | |||||||
(1) | The total non-controlling interest reflects OP units convertible 1:1 into common shares. The Company's net income for the three months ended September 30, 2017 (largely driven by gains on real estate sales), results in an allocation to OP units of $696 and an income per OP unit ratio of $0.363 (based on 1,917 weighted avg. OP units outstanding). Basic FFO for the quarter approximates $0.358 per share. In instances when the OP unit ratio exceeds basic FFO, the OP units are considered anti-dilutive, and as a result are not included in the calculation of fully diluted FFO and Operating FFO for the three months ended September 30, 2017. |
(2) | Series D convertible preferred shares are paid annual dividends of $6.7 million and are currently convertible into approximately 6.7 million shares of common stock. They are dilutive only when earnings or FFO exceed approximately $0.25 per diluted share per quarter, which was the case for FFO for the three and nine months ended September 30, 2017 and 2016. 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 earnings per share and FFO in future periods. |
(3) | The denominator to calculate diluted earnings per share excludes shares issuable upon conversion of OP units and preferred shares for the three and nine months ended September 30, 2017 and 2016. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
Property Designation | 2017 | 2016 | 2017 | 2016 | ||||
Same-property | 53 | 53 | 53 | 53 | ||||
Acquisitions (1) | 3 | 3 | 3 | 3 | ||||
Redevelopment (2) | 4 | 4 | 4 | 4 | ||||
Total wholly owned properties | 60 | 60 | 60 | 60 | ||||
(1) Includes the following properties not owned in both comparable periods: Centennial Shops, Providence Marketplace and Webster Place. | ||||||||
(2) Includes the following properties: Hunter's Square, West Oaks, Woodbury Lakes, and Deerfield Towne Center. The entire property indicated for each period is completely excluded from same property NOI. | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Net income available to common shareholders | $ | 27,258 | $ | 11,867 | $ | 43,111 | $ | 47,723 | |||||||
Adjustments to reconcile to Same Property NOI: | |||||||||||||||
Preferred share dividends | 1,675 | 1,675 | 5,026 | 5,026 | |||||||||||
Net income attributable to noncontrolling interest | 696 | 326 | 1,158 | 1,282 | |||||||||||
Income tax provision | 65 | 133 | 119 | 234 | |||||||||||
Interest expense | 11,586 | 11,140 | 33,871 | 33,818 | |||||||||||
Earnings from unconsolidated joint ventures | (81 | ) | (119 | ) | (223 | ) | (337 | ) | |||||||
Gain on sale of real estate | (24,545 | ) | (9,359 | ) | (35,920 | ) | (35,684 | ) | |||||||
Gain on remeasurement of unconsolidated joint venture | — | — | — | (215 | ) | ||||||||||
Other expense, net | (123 | ) | 158 | 612 | 307 | ||||||||||
Management and other fee income | (88 | ) | (73 | ) | (314 | ) | (429 | ) | |||||||
Depreciation and amortization | 23,130 | 23,245 | 69,282 | 69,806 | |||||||||||
Acquisition costs | — | 55 | — | 118 | |||||||||||
General and administrative expenses | 5,952 | 5,787 | 18,775 | 17,075 | |||||||||||
Provision for impairment | 1,885 | 977 | 8,423 | 977 | |||||||||||
Amortization of lease inducements | 44 | (29 | ) | 131 | 177 | ||||||||||
Amortization of acquired above and below market lease intangibles | (1,160 | ) | (772 | ) | (3,267 | ) | (2,329 | ) | |||||||
Lease termination fees | (27 | ) | — | (60 | ) | (68 | ) | ||||||||
Straight-line ground rent expense | 70 | — | 211 | — | |||||||||||
Amortization of acquired ground lease intangibles | 6 | — | 19 | — | |||||||||||
Costs associated with early extinguishment of debt | — | 847 | — | 847 | |||||||||||
Straight-line rental income | (608 | ) | (623 | ) | (1,797 | ) | (1,436 | ) | |||||||
NOI | 45,735 | 45,235 | 139,157 | 136,892 | |||||||||||
NOI from Other Investment Properties | (4,067 | ) | (4,143 | ) | (14,322 | ) | (14,852 | ) | |||||||
Same Property NOI with Redevelopment | 41,668 | 41,092 | 124,835 | 122,040 | |||||||||||
NOI from Redevelopment | (5,980 | ) | (5,577 | ) | (17,974 | ) | (16,105 | ) | |||||||
Same Property NOI without Redevelopment | $ | 35,688 | $ | 35,515 | $ | 106,861 | $ | 105,935 | |||||||
Period-end Occupancy percent without Redevelopment | 92.2 | % | 93.5 | % | 92.2 | % | 93.5 | % |
Portion of GLA & NOI Impacted by Redevelopment | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Stable | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
Property | GLA | GLA | NOI | GLA | NOI | GLA | NOI | GLA | NOI | |||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Mission Bay | 214 | 52 | $ | (401 | ) | 52 | $ | (178 | ) | 52 | $ | (1,074 | ) | 52 | $ | (555 | ) | |||||||||
River City Maketplace | 557 | 6 | (39 | ) | 6 | — | 6 | (61 | ) | 6 | — | |||||||||||||||
Shops on Lane | 168 | 4 | (27 | ) | 4 | — | 4 | (81 | ) | 4 | — | |||||||||||||||
Spring Meadows | 241 | 74 | (202 | ) | 74 | (59 | ) | 74 | (495 | ) | 74 | (142 | ) | |||||||||||||
The Shoppes at Fox River | 291 | 45 | (111 | ) | 45 | (14 | ) | 45 | (281 | ) | 45 | (14 | ) | |||||||||||||
Town & Country | 154 | 31 | (155 | ) | 31 | — | 31 | (351 | ) | 31 | (61 | ) | ||||||||||||||
Total adjustments | 212 | $ | (935 | ) | 212 | $ | (251 | ) | 212 | $ | (2,343 | ) | 212 | $ | (772 | ) | ||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Fixed-rate debt | $ | 822 | $ | 39,132 | $ | 5,859 | $ | 102,269 | $ | 114,508 | $ | 640,747 | $ | 903,337 | $ | 880,835 | ||||||||||||||||
Average interest rate | 5.63 | % | 4.72 | % | 6.76 | % | 4.01 | % | 3.48 | % | 4.27 | % | 4.18 | % | 3.95 | % | ||||||||||||||||
Variable-rate debt | $ | — | $ | — | $ | — | $ | — | $ | 149,000 | $ | 28,125 | $ | 177,125 | $ | 177,125 | ||||||||||||||||
Average interest rate | — | % | — | % | — | % | — | % | 2.59 | % | 4.61 | % | 2.91 | % | 2.91 | % | ||||||||||||||||
Exhibit No. | Description |
12.1* | |
31.1* | |
31.2* | |
32.1* | |
32.2* | |
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 |
(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: November 2, 2017 | By: /s/ DENNIS GERSHENSON Dennis Gershenson President and Chief Executive Officer (Principal Executive Officer) |
Date: November 2, 2017 | By: /s/ GEOFFREY BEDROSIAN Geoffrey Bedrosian Chief Financial Officer (Principal Financial Officer) |
Date: November 2, 2017 | By: /s/ RAYMOND J. MERK Raymond J. Merk Chief Accounting Officer (Principal Accounting Officer) |
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Pretax income before adjustment for noncontrolling interest | $ | 29,694 | $ | 14,001 | $ | 49,414 | $ | 54,265 | |||||||||
Add back: | |||||||||||||||||
Fixed charges | 11,641 | 11,430 | 34,171 | 34,617 | |||||||||||||
Distributed income of equity investees | 135 | 113 | 613 | 1,685 | |||||||||||||
Deduct: | |||||||||||||||||
Equity in earnings of equity investees | (81 | ) | (119 | ) | (223 | ) | (337 | ) | |||||||||
Capitalized interest | (75 | ) | (238 | ) | (193 | ) | (640 | ) | |||||||||
Earnings as Defined | $ | 41,314 | $ | 25,187 | $ | 83,782 | $ | 89,590 | |||||||||
Fixed Charges | |||||||||||||||||
Interest expense including amortization of deferred financing fees | $ | 11,586 | $ | 11,140 | $ | 33,871 | $ | 33,818 | |||||||||
Capitalized interest | 75 | 238 | 193 | 640 | |||||||||||||
Interest portion of rent expense | 125 | 52 | 252 | 159 | |||||||||||||
Fixed Charges | 11,786 | 11,430 | 34,316 | 34,617 | |||||||||||||
Preferred share dividends | 1,675 | 1,675 | 5,026 | 5,026 | |||||||||||||
Combined Fixed Charges and Preferred Dividends | $ | 13,461 | $ | 13,105 | $ | 39,342 | $ | 39,643 | |||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | 3.07 | 1.92 | 2.13 | 2.26 | |||||||||||||
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: November 2, 2017 | 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: November 2, 2017 | 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: November 2, 2017 | 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: November 2, 2017 | By: /s/ GEOFFREY BEDROSIAN Geoffrey Bedrosian Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Oct. 26, 2017 |
|
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 | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RPT | |
Entity Common Stock, Shares Outstanding | 79,366,003 |
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
REVENUE | ||||
Minimum rent | $ 49,736 | $ 47,591 | $ 149,970 | $ 144,540 |
Percentage rent | 106 | 71 | 570 | 511 |
Recovery income from tenants | 14,923 | 15,289 | 46,655 | 48,067 |
Other property income | 1,078 | 1,055 | 3,310 | 2,927 |
Management and other fee income | 88 | 73 | 314 | 429 |
TOTAL REVENUE | 65,931 | 64,079 | 200,819 | 196,474 |
EXPENSES | ||||
Real estate taxes | 10,948 | 10,269 | 32,670 | 31,710 |
Recoverable operating expense | 6,660 | 6,475 | 20,699 | 21,227 |
Non-recoverable operating expense | 825 | 603 | 3,216 | 2,560 |
Depreciation and amortization | 23,130 | 23,245 | 69,282 | 69,806 |
Acquisition costs | 0 | 55 | 0 | 118 |
General and administrative expense | 5,952 | 5,787 | 18,775 | 17,075 |
Provision for impairment | 1,885 | 977 | 8,423 | 977 |
TOTAL EXPENSES | 49,400 | 47,411 | 153,065 | 143,473 |
OPERATING INCOME | 16,531 | 16,668 | 47,754 | 53,001 |
OTHER INCOME AND EXPENSES | ||||
Other (expense) income, net | 123 | (158) | (612) | (307) |
Gain on sale of real estate | 24,545 | 9,359 | 35,920 | 35,684 |
Earnings from unconsolidated joint ventures | 81 | 119 | 223 | 337 |
Interest expense | (11,586) | (11,140) | (33,871) | (33,818) |
Other gain on unconsolidated joint ventures | 0 | 0 | 0 | 215 |
Loss on extinguishment of debt | 0 | (847) | 0 | (847) |
INCOME BEFORE TAX | 29,694 | 14,001 | 49,414 | 54,265 |
Income tax provision | (65) | (133) | (119) | (234) |
NET INCOME | 29,629 | 13,868 | 49,295 | 54,031 |
Net income attributable to noncontrolling partner interest | (696) | (326) | (1,158) | (1,282) |
NET INCOME ATTRIBUTABLE TO RPT | 28,933 | 13,542 | 48,137 | 52,749 |
Preferred share dividends | (1,675) | (1,675) | (5,026) | (5,026) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 27,258 | $ 11,867 | $ 43,111 | $ 47,723 |
EARNINGS PER COMMON SHARE | ||||
Basic (in usd per share) | $ 0.34 | $ 0.15 | $ 0.54 | $ 0.60 |
Diluted (in usd per share) | $ 0.33 | $ 0.15 | $ 0.54 | $ 0.60 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||
Basic (in shares) | 79,381 | 79,249 | 79,337 | 79,226 |
Diluted (in shares) | 86,259 | 79,437 | 79,514 | 79,404 |
Cash Dividend Declared per Common Share (in usd per share) | $ 0.22 | $ 0.21 | $ 0.66 | $ 0.64 |
OTHER COMPREHENSIVE INCOME | ||||
Net income | $ 29,629 | $ 13,868 | $ 49,295 | $ 54,031 |
Other comprehensive gain (loss): | ||||
Gain (loss) on interest rate swaps | 196 | 1,745 | 287 | (5,252) |
Comprehensive income | 29,825 | 15,613 | 49,582 | 48,779 |
Comprehensive income attributable to noncontrolling interest | (701) | (367) | (1,164) | (1,154) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RPT | $ 29,124 | $ 15,246 | $ 48,418 | $ 47,625 |
Condensed Consolidated Statement of Shareholders' Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands |
Total |
Preferred Shares |
Common Shares |
Additional Paid-in Capital |
Accumulated Distributions in Excess of Net Income |
Accumulated Other Comprehensive Income |
Noncontrolling Interest |
---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2016 | $ 888,598 | $ 92,427 | $ 793 | $ 1,158,430 | $ (384,934) | $ 985 | $ 20,897 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares, net of issuance costs | (24) | (24) | |||||
Redemption of OP unit holders | (8) | (1) | (7) | ||||
Share-based compensation and other expense, net of shares withheld for employee taxes | 1,649 | 1 | 1,648 | ||||
Dividends declared to common shareholders | (52,381) | (52,381) | |||||
Dividends declared to preferred shareholders | (5,026) | (5,026) | |||||
Distributions declared to noncontrolling interests | (1,266) | (1,266) | |||||
Dividends declared to deferred shares | (311) | (311) | |||||
Other comprehensive income adjustment | 287 | 280 | 7 | ||||
Net income | 49,295 | 48,137 | 1,158 | ||||
Ending balance at Sep. 30, 2017 | $ 880,813 | $ 92,427 | $ 794 | $ 1,160,054 | $ (394,516) | $ 1,265 | $ 20,789 |
Condensed Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Statement of Cash Flows [Abstract] | ||
Cash paid for interest, capitalized interest | $ 193 | $ 640 |
Organization and Basis of Presentations |
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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 September 30, 2017, our property portfolio consisted of 60 wholly owned shopping centers comprising approximately 14.2 million square feet. We also have ownership interests of 7%, 20% and 30%, respectively, in three joint ventures. 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 September 30, 2017 and December 31, 2016), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest. 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, 2016. 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. Correction of Immaterial Error In the third quarter of 2017, management identified certain special assessment obligations on undeveloped land that required revision. The adjustment to revise the obligations approximated $3.1 million. The revision had no impact on earnings or cash flows for 2016, 2015 and 2014. Pursuant to the guidance of Staff Accounting Bulletin ("SAB") No. 99, Materiality, the Company concluded that the adjustments were not material to any of its prior period financial statements. Although the adjustments were immaterial to prior periods, the prior period financial statements were revised, in accordance with SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, due to the significance of the out-of-period correction in the third quarter of 2017. A reconciliation of the effects of the revision to the previously reported balance sheet at December 31, 2016 follows:
A reconciliation of the effects of the revision to the previously reported statement of stockholders' equity for the years ending December 31, 2016, 2015, and 2014 follows:
Recently Adopted Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2017-01, "Clarifying the Definition of a Business" ("ASU 2017-01"). ASU 2017-01 changes the definition of a business to exclude acquisitions where substantially all of the fair value of the assets acquired are concentrated in a single identifiable asset or a group of similar identifiable assets. While there are various differences between the accounting for an asset acquisition and a business combination, the largest impact is that certain transaction costs are capitalized for asset acquisitions rather than expensed when they are considered business combinations. ASU 2017-01 is effective January 1, 2019; however the Company early adopted this standard during the first quarter of 2017. Transaction costs of $0.6 million have been capitalized in connection with our acquisitions. In March 2016, the FASB updated ASC Topic 718 "Compensation - Stock Compensation" with ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). 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. The adoption of this standard resulted in classifying cash paid by the Company to taxing authorities when directly withholding shares upon vesting as financing activities in the consolidated statements of cash flows. Recent Accounting Pronouncements In September 2017, the FASB issued ASU 2017-13 "'Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments" ("ASU 2017-13"). The amendments in ASU 2017-13 amend the early adoption date option for certain companies related to the adoption of ASU 2014-09 related to revenue and ASU 2016-02 related to leases and is effective consistent with each of these updates. The adoption of this update is not anticipated to have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"). These amendments refine and expand hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. It is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this update is not anticipated to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 clarifies guidance about what changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. It is effective for annual periods, and interim periods within those annual periods, beginning after December 31, 2017. The adoption of this standard is not anticipated to have a material impact on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" ("ASU 2017-05"). ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. ASU 2017-05 also defines the term in substance nonfinancial asset. It is effective for annual periods beginning after December 15, 2017. The adoption of this standard is not anticipated to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which clarifies the treatment of several cash flow categories. In addition, ASU 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In June 2016, the FASB updated Accounting Standards Codification ("ASC") Topic 326 "Financial Instruments - Credit Losses" with ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). ASU 2016-13 enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better inform credit loss estimates. ASU 2016-13 is effective for annual periods (including interim periods within those periods) beginning after December 15, 2019. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In February 2016, the FASB updated ASC Topic 842 "Leases" ("ASU 2016-02"). ASU 2016-02 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. The Company continues to evaluate the effect the adoption of ASU 2016-02 will have on our consolidated financial statements and related disclosures. However, we currently believe the adoption of ASU 2016-02 will not have a material impact for operating leases where we are a lessor and will continue to record revenues from rental properties for its operating leases on a straight-line basis. In addition, for leases where the Company is a lessee, primarily for the Company’s ground lease and administrative office lease, the Company believes it will record a lease liability and a right of use asset at fair value upon adoption related to these items. In addition, we are reviewing internal costs associated with our leasing staff and what changes will be required under the new guidance related to leasing costs. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). 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 non-financial 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 anticipate adopting ASU 2014-09 and the related updates subsequently issued by the FASB using the modified retrospective method. In addition, we are evaluating our revenue streams and the appropriate accounting literature each is governed under. Our current evaluation of the revenue streams indicates less than 20% of our consolidated revenues require evaluation under ASU 2014-09, however that process is on-going as we review and document selected arrangements. We are also reviewing the impact of additional disclosures required under ASU 2014-09. At this time we do not expect material changes to our accounting policies for these revenue streams, but as indicated our review of contractual arrangements and disclosures under ASU 2014-09 will continue through the remainder of 2017. |
Real Estate |
9 Months Ended |
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Sep. 30, 2017 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Included in our net real estate assets are income producing properties 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. For the three months ended September 30, 2017 and nine months ended September 30, 2017, we recorded impairment provisions totaling $1.9 million and $8.4 million, respectively on shopping centers classified as income producing. The impairment provision for the three months ended September 30, 2017 related to a certain center disposed of during the quarter. The impairment was primarily the result of events occurring during the due diligence period including a long-term renewal commitment from a tenant at a rental rate lower than anticipated and the loss of certain tenants. In the first half of 2017 the adjustments were triggered by changes in the associated market price and expected hold period assumptions related to certain shopping centers. To estimate fair value, we use discounted cash flow models that include assumptions of the discount rates that market participants would use in pricing an asset or market pricing from potential or comparable transactions. 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 $36.4 million and $37.8 million at September 30, 2017 and December 31, 2016, 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 $19.7 million and $23.4 million at September 30, 2017 and December 31, 2016, respectively. The decrease in construction in progress from December 31, 2016 to September 30, 2017 was due primarily to the completion of ongoing redevelopment and expansion projects across the portfolio. Pursuant to the criteria established under ASC Topic 360 we classify properties as held for sale when executed purchase and sales agreement contingencies have been satisfied thereby signifying that the sale is legally binding. As of September 30, 2017, we had no properties and no parcels classified as held for sale. As of December 31, 2016, the Company had one property classified as held for sale with a net book value of $8.8 million which closed in February 2017. |
Property Acquisitions and Dispositions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Acquisitions and Dispositions | Property Acquisitions and Dispositions Acquisitions The following table provides a summary of our acquisitions for the nine months ended September 30, 2017:
The aggregate fair value of our 2017 acquisitions through September 30, 2017, was allocated and is reflected in the following table.
Total revenue and net income for the 2017 acquisitions included in our condensed consolidated statement of operations for the three and nine months ended September 30, 2017 were as follows:
Unaudited Proforma Information If the 2017 acquisitions had occurred on January 1, 2016, our consolidated revenues and net income for the three and nine months ended September 30, 2017 and 2016 would have been as follows:
Dispositions The following table provides a summary of our disposition activity for the nine months ended September 30, 2017:
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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 7%, 20% and 30%, respectively, 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 There was no acquisition activity in the nine months ended September 30, 2017 by any of our unconsolidated joint ventures. Dispositions There was no disposition activity in the nine months ended September 30, 2017 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 September 30, 2017 and December 31, 2016:
Senior unsecured notes and unsecured term loans Our $745.0 million of senior unsecured notes and unsecured term loans have interest rates ranging from 3.14% to 4.74% and are due at various maturity dates from May 2020 through November 2028. Mortgages Our $158.3 million of fixed rate mortgages have interest rates ranging from 2.86% to 7.38% and are due at various maturity dates from January 2018 through June 2026. The fixed rate mortgages are secured by properties that have an approximate net book value of $251.6 million as of September 30, 2017. It is our intent to repay the mortgages maturing in 2018 and beyond using cash, borrowings under our unsecured line of credit, or other sources of financing which may include long-term unsecured notes. 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 On September 14, 2017, the Company entered into a Fourth Amended and Restated Credit Agreement (the “Fourth Amendment”). The Fourth Amendment amends and restates the Company's existing credit agreement with a number of financial institutions to provide an unsecured credit facility in the aggregate amount of $350.0 million with the ability to increase borrowing capacity up to $650.0 million through an accordion feature. The credit facility matures on September 14, 2021, and may be extended by the Company for two periods of six months each subject to continued compliance with the terms of the credit facility and the payment of an extension fee of 0.075%. Borrowings on the facility will be priced at London Interbank Offered Rate (LIBOR) plus a margin of between 1.30% and 1.95%, based on the Company’s leverage ratio as calculated under the credit facility. Deferred financing fees associated with the Fourth Amendment were approximately $2.3 million. As of September 30, 2017, we had $149.0 million outstanding under our revolving credit facility, an increase of $63.0 million from December 31, 2016, as a result of borrowings to partially fund acquisitions of properties. After adjusting for outstanding letters of credit issued under our revolving credit facility, not reflected in the accompanying condensed consolidated balance sheets, totaling $1.3 million, we had $199.7 million of availability under our revolving credit facility. The interest rate as of September 30, 2017 was 2.59%. 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 September 30, 2017:
(1) Scheduled maturities in 2021 include the $149.0 million balance on the unsecured revolving credit facility drawn as of September 30, 2017. The unsecured revolving credit facility has two six-month extensions available at the Company's option provided compliance with financial covenants is maintained. Our unsecured revolving credit facility, senior unsecured notes, and unsecured term loan facilities contain financial covenants relating to total leverage, fixed charge coverage ratio, unencumbered assets, tangible net worth and various other calculations. As of September 30, 2017, we were in compliance with these covenants. |
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 September 30, 2017 and December 31, 2016.
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 (Level 3), 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 $903.3 million and $905.7 million as of September 30, 2017 and December 31, 2016, respectively, had fair values of approximately $880.8 million and $900.3 million, respectively. Variable rate debt’s fair value is estimated to be the carrying values of $177.1 million and $114.1 million as of September 30, 2017 and December 31, 2016, respectively. The following is a description of valuation methodologies used for our assets and liabilities recorded at fair value on a nonrecurring basis: Net Real Estate Our net investment in real estate, including any identifiable intangible assets, is subject to impairment testing on a nonrecurring basis. To estimate fair value, we use discounted cash flow models that include assumptions of the discount rates that market participants would use in pricing the asset or pricing from potential or comparable market transactions. To the extent impairment has occurred, we charge to expense the excess of the carrying value of the property over its estimated fair value. We classify impaired real estate assets as nonrecurring Level 3. During the nine months ended September 30, 2017, certain income producing shopping centers with a fair value of approximately $68.1 million incurred an impairment charge of $8.4 million. We did not have any material liabilities that were required to be measured at fair value on a nonrecurring basis during the period. |
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 September 30, 2017, all of our hedges were effective. The following table summarizes the notional values and fair values of our derivative financial instruments as of September 30, 2017:
The effect of derivative financial instruments on our condensed consolidated statements of operations for the three months ended September 30, 2017 and 2016 is summarized as follows:
The effect of derivative financial instruments on our condensed consolidated statements of operations for the nine months ended September 30, 2017 and 2016 is summarized as follows:
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Earnings Per Common Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 dilutive for the three months ended September 30, 2017 and anti-dilutive for all other periods presented. We exclude certain securities from the computation of diluted earnings per share because the inclusion of these securities would have been anti-dilutive. The following table presents the outstanding securities that were excluded from the computation of diluted earnings per share and the number of common shares each was convertible into (amounts in thousands):
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Share-based Compensation Plans |
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Sep. 30, 2017 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Share-based Compensation Plans | Share-based Compensation Plans As of September 30, 2017, 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 2.0 million shares of our common stock, units or stock options, of which 1.2 million remained available for issuance as of September 30, 2017. As of September 30, 2017, we had 412,623 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 July 2022. During the nine months ended September 30, 2017, we had the following awards:
The service-based restricted share awards to employees vest over five years and the compensation expense is recognized on a graded vesting basis. The service-based restricted share awards to trustees vest over one year. We recognized expense related to restricted share grants of $0.8 million and $0.7 million for the three months ended September 30, 2017 and September 30, 2016, respectively, and $2.0 million and $2.1 million for the nine months ended September 30, 2017 and September 30, 2016, respectively. Pursuant to ASC 718 – Stock Compensation, we determine the grant date fair value of TSR Grants that will be settled in cash, 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 related to the cash awards previously recognized would be reversed. Compensation benefit related to the cash awards was $(0.1) million and $(0.1) million for the three months ended September 30, 2017 and September 30, 2016, respectively, and an expense of $0.1 million and of $0.8 million for the nine months ended September 30, 2017 and September 30, 2016, respectively. The Company also determines the grant date fair value of the TSR Grants that will be settled in equity based upon a Monte Carlo simulation model and recognizes the compensation expense ratably over the requisite service period. These equity awards are not re-valued at the end of each quarter. The compensation cost will be recognized regardless of whether the performance criterion are met, provided the requisite service has been provided. Compensation expense related to the equity awards was an expense of $0.1 million for the three months ended September 30, 2017 and $0.2 million for the nine months ended September 30, 2017, respectively. There were no equity settled TSR Grants outstanding for the comparable periods in 2016. We recognized total share-based compensation expense of $0.8 million and $0.6 million for the three months ended September 30, 2017 and September 30, 2016, respectively, and $2.3 million and $2.9 million for the nine months ended September 30, 2017 and September 30, 2016, respectively. As of September 30, 2017, we had $5.1 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 3.2 years. |
Taxes |
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Sep. 30, 2017 | |
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 September 30, 2017, we had a federal and state deferred tax asset of $10.6 million and a valuation allowance of $10.6 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 $0.1 million and $0.2 million for the nine months ended September 30, 2017 and 2016, 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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Sep. 30, 2017 | |
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 September 30, 2017, we had entered into agreements for construction costs of approximately $26.6 million. Litigation From time to time, we are 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. We also have a ground lease at Centennial Shops located in Edina, Minnesota. The ground lease includes rent escalations throughout the lease period and expires in April 2105. We recognized rent expense related to these operating leases of $0.4 million and $0.1 million for the three months ended September 30, 2017 and 2016, respectively, and $1.3 million and $0.4 million for the nine months ended September 30, 2017 and 2016, respectively. Capital Lease We have a ground lease at Buttermilk Towne Center which we have recorded as a capital lease that expires in December 2032. Interest expense for this capital lease was negligible for the nine months ended September 30, 2017 and 2016, respectively. |
Subsequent Events |
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Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the date that the condensed consolidated financial statements were issued. |
Organization and Basis of Presentations (Policies) |
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Sep. 30, 2017 | |
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 September 30, 2017, our property portfolio consisted of 60 wholly owned shopping centers comprising approximately 14.2 million square feet. We also have ownership interests of 7%, 20% and 30%, respectively, in three joint ventures. 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 | 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 September 30, 2017 and December 31, 2016), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest. 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, 2016. 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. |
Recently Adopted and Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2017-01, "Clarifying the Definition of a Business" ("ASU 2017-01"). ASU 2017-01 changes the definition of a business to exclude acquisitions where substantially all of the fair value of the assets acquired are concentrated in a single identifiable asset or a group of similar identifiable assets. While there are various differences between the accounting for an asset acquisition and a business combination, the largest impact is that certain transaction costs are capitalized for asset acquisitions rather than expensed when they are considered business combinations. ASU 2017-01 is effective January 1, 2019; however the Company early adopted this standard during the first quarter of 2017. Transaction costs of $0.6 million have been capitalized in connection with our acquisitions. In March 2016, the FASB updated ASC Topic 718 "Compensation - Stock Compensation" with ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). 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. The adoption of this standard resulted in classifying cash paid by the Company to taxing authorities when directly withholding shares upon vesting as financing activities in the consolidated statements of cash flows. Recent Accounting Pronouncements In September 2017, the FASB issued ASU 2017-13 "'Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments" ("ASU 2017-13"). The amendments in ASU 2017-13 amend the early adoption date option for certain companies related to the adoption of ASU 2014-09 related to revenue and ASU 2016-02 related to leases and is effective consistent with each of these updates. The adoption of this update is not anticipated to have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"). These amendments refine and expand hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. It is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this update is not anticipated to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 clarifies guidance about what changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. It is effective for annual periods, and interim periods within those annual periods, beginning after December 31, 2017. The adoption of this standard is not anticipated to have a material impact on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" ("ASU 2017-05"). ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. ASU 2017-05 also defines the term in substance nonfinancial asset. It is effective for annual periods beginning after December 15, 2017. The adoption of this standard is not anticipated to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which clarifies the treatment of several cash flow categories. In addition, ASU 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In June 2016, the FASB updated Accounting Standards Codification ("ASC") Topic 326 "Financial Instruments - Credit Losses" with ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). ASU 2016-13 enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better inform credit loss estimates. ASU 2016-13 is effective for annual periods (including interim periods within those periods) beginning after December 15, 2019. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In February 2016, the FASB updated ASC Topic 842 "Leases" ("ASU 2016-02"). ASU 2016-02 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. The Company continues to evaluate the effect the adoption of ASU 2016-02 will have on our consolidated financial statements and related disclosures. However, we currently believe the adoption of ASU 2016-02 will not have a material impact for operating leases where we are a lessor and will continue to record revenues from rental properties for its operating leases on a straight-line basis. In addition, for leases where the Company is a lessee, primarily for the Company’s ground lease and administrative office lease, the Company believes it will record a lease liability and a right of use asset at fair value upon adoption related to these items. In addition, we are reviewing internal costs associated with our leasing staff and what changes will be required under the new guidance related to leasing costs. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). 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 non-financial 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 anticipate adopting ASU 2014-09 and the related updates subsequently issued by the FASB using the modified retrospective method. In addition, we are evaluating our revenue streams and the appropriate accounting literature each is governed under. Our current evaluation of the revenue streams indicates less than 20% of our consolidated revenues require evaluation under ASU 2014-09, however that process is on-going as we review and document selected arrangements. We are also reviewing the impact of additional disclosures required under ASU 2014-09. At this time we do not expect material changes to our accounting policies for these revenue streams, but as indicated our review of contractual arrangements and disclosures under ASU 2014-09 will continue through the remainder of 2017. |
Organization and Basis of Presentations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the Effects of the Revision | A reconciliation of the effects of the revision to the previously reported balance sheet at December 31, 2016 follows:
A reconciliation of the effects of the revision to the previously reported statement of stockholders' equity for the years ending December 31, 2016, 2015, and 2014 follows:
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Property Acquisitions and Dispositions (Tables) |
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Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquisitions | The following table provides a summary of our acquisitions for the nine months ended September 30, 2017:
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Summary of Total Aggregate Fair Value of Acquisitions Allocated | The aggregate fair value of our 2017 acquisitions through September 30, 2017, was allocated and is reflected in the following table.
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Pro Forma Information | Total revenue and net income for the 2017 acquisitions included in our condensed consolidated statement of operations for the three and nine months ended September 30, 2017 were as follows:
If the 2017 acquisitions had occurred on January 1, 2016, our consolidated revenues and net income for the three and nine months ended September 30, 2017 and 2016 would have been as follows:
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Summary of Disposal Activity | The following table provides a summary of our disposition activity for the nine months ended September 30, 2017:
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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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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 September 30, 2017 and December 31, 2016:
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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 September 30, 2017:
(1) Scheduled maturities in 2021 include the $149.0 million balance on the unsecured revolving credit facility drawn as of September 30, 2017. The unsecured revolving credit facility has two six-month extensions available at the Company's option provided compliance with financial covenants is maintained. |
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 September 30, 2017 and December 31, 2016.
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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 September 30, 2017:
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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 September 30, 2017 and 2016 is summarized as follows:
The effect of derivative financial instruments on our condensed consolidated statements of operations for the nine months ended September 30, 2017 and 2016 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 dilutive for the three months ended September 30, 2017 and anti-dilutive for all other periods presented. |
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the outstanding securities that were excluded from the computation of diluted earnings per share and the number of common shares each was convertible into (amounts in thousands):
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Real Estate - Additional Information (Detail) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
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Sep. 30, 2017
USD ($)
property
land
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
property
land
|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
property
|
|
Real Estate [Abstract] | |||||
Provision for impairment | $ 1,885 | $ 977 | $ 8,423 | $ 977 | |
Land held for development or sale | 36,400 | 36,400 | $ 37,800 | ||
Constructions in progress | $ 19,700 | $ 19,700 | $ 23,400 | ||
Number of properties, held-for-sale | property | 0 | 0 | 1 | ||
Number of land parcel, held-for-sale | land | 0 | 0 | |||
Property, held for sale | $ 0 | $ 0 | $ 8,776 |
Property Acquisitions and Dispositions - Total Aggregate Fair Value of Acquisitions Allocated (Details) $ in Thousands |
Sep. 30, 2017
USD ($)
|
---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Net assets acquired | $ 169,839 |
Level 3 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Land | 52,132 |
Buildings and improvements | 107,156 |
Lease origination costs | 12,885 |
Other assets | 3,899 |
Below market leases | (6,642) |
Above Market Leases | Level 3 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Above market leases | $ 409 |
Property Acquisitions and Dispositions - Revenue and Net Income for Acquisitions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2017 |
|
Business Combinations [Abstract] | ||
Total revenue from 2017 acquisitions | $ 3,862 | $ 9,477 |
Net income from 2017 acquisitions | $ 687 | $ 1,674 |
Property Acquisitions and Dispositions - Unaudited Pro Forma Information (Details) - Income Producing Property Acquisitions - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Business Acquisition [Line Items] | |||
Consolidated revenue | $ 68,445 | $ 202,714 | $ 207,846 |
Consolidated net income available to common shareholders | $ 12,366 | $ 43,346 | $ 49,235 |
Equity Investments in Unconsolidated Joint Ventures - Additional Information (Detail) |
Sep. 30, 2017
partnership_unit
|
---|---|
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 3 |
Joint Venture One | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest (as a percent) | 7.00% |
Joint Venture Two | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest (as a percent) | 20.00% |
Joint Venture Three | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest (as a percent) | 30.00% |
Equity Investments in Unconsolidated Joint Ventures - Summary of Combined Financial Information of Unconsolidated Entities, Balance Sheets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
ASSETS | ||
Investment in real estate, net | $ 43,001 | $ 43,995 |
Other assets | 3,234 | 3,712 |
Total Assets | 46,235 | 47,707 |
LIABILITIES AND OWNERS' EQUITY | ||
Other liabilities | 488 | 219 |
Owners' equity | 45,747 | 47,488 |
Total Liabilities and Owners' Equity | 46,235 | 47,707 |
RPT's equity investments in unconsolidated joint ventures | $ 2,734 | $ 3,150 |
Equity Investments in Unconsolidated Joint Ventures - Summary of Combined Financial Information of Unconsolidated Entities, Statements of Operations (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Equity Method Investments and Joint Ventures [Abstract] | ||||
Total revenue | $ 1,192 | $ 1,279 | $ 3,485 | $ 4,588 |
Total expenses | 745 | 915 | 2,250 | 3,017 |
Income before other income and expense | 447 | 364 | 1,235 | 1,571 |
Gain on sale of real estate | 0 | 0 | 0 | 371 |
Net income | 447 | 364 | 1,235 | 1,942 |
RPT's share of earnings from unconsolidated joint ventures | $ 81 | $ 119 | $ 223 | $ 337 |
Equity Investments in Unconsolidated Joint Ventures - Information of Fees Earned (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Equity Method Investments and Joint Ventures [Abstract] | ||||
Management fees | $ 69 | $ 65 | $ 206 | $ 251 |
Leasing fees | 19 | 6 | 108 | 89 |
Construction fees | 0 | 2 | 0 | 42 |
Disposition fees | 0 | 0 | 0 | 47 |
Total | $ 88 | $ 73 | $ 314 | $ 429 |
Debt - Summary of Mortgages, Notes Payable and Capital Lease Obligation (Detail) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Disclosure [Abstract] | ||
Senior unsecured notes | $ 535,000 | $ 535,000 |
Unsecured term loan facilities | 210,000 | 210,000 |
Fixed rate mortgages | 158,337 | 160,718 |
Unsecured revolving credit facility | 149,000 | 86,000 |
Junior subordinated notes | 28,125 | 28,125 |
Subtotal debt | 1,080,462 | 1,019,843 |
Unamortized premium | 4,251 | 5,120 |
Unamortized deferred financing costs | (3,203) | (3,740) |
Total debt | 1,081,510 | 1,021,223 |
Capital lease obligation | $ 1,066 | $ 1,066 |
Debt - Scheduled Principal Payments on Mortgages and Notes Payable (Detail) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2017
USD ($)
extension_option
|
Dec. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | ||
2017 | $ 822 | |
2018 | 39,132 | |
2019 | 5,859 | |
2020 | 102,269 | |
2021 | 263,508 | |
Thereafter | 668,872 | |
Subtotal debt | 1,080,462 | $ 1,019,843 |
Unamortized premium | 4,251 | 5,120 |
Unamortized deferred financing costs | (3,203) | (3,740) |
Total debt | 1,081,510 | $ 1,021,223 |
Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2021 | $ 149,000 | |
Number of extension options | extension_option | 2 | |
Extension option, period (in months) | 6 months |
Fair Value - Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative assets - interest rate swaps | $ 1,725 | $ 2,143 |
Derivative liabilities - interest rate swaps | (595) | (1,300) |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative assets - interest rate swaps | 1,725 | 2,143 |
Derivative liabilities - interest rate swaps | $ (595) | $ (1,300) |
Earnings Per Common Share - Antidilutive (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 2,015 | 3,766 | 3,864 | 3,766 |
Converted (in shares) | 1,917 | 8,509 | 8,630 | 8,509 |
Operating Partnership Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 1,917 | 1,917 | 1,917 | 1,917 |
Converted (in shares) | 1,917 | 1,917 | 1,917 | 1,917 |
Series D Preferred Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 0 | 1,849 | 1,849 | 1,849 |
Converted (in shares) | 0 | 6,592 | 6,713 | 6,592 |
Performance Share Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 98 | 0 | 98 | 0 |
Converted (in shares) | 0 | 0 | 0 | 0 |
Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Tax Credit Carryforward [Line Items] | ||||
Annual distribution of REIT taxable income (as a percent) | 90.00% | 90.00% | ||
Income tax provision (benefit) | $ 65 | $ 133 | $ 119 | $ 234 |
Federal and State Income Taxes | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal and state deferred tax asset | 10,600 | 10,600 | ||
Federal and state deferred tax asset, valuation allowance | $ 10,600 | $ 10,600 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Construction costs related to development and expansion | $ 26.6 | |||
Operating leases, rent expense | $ 0.4 | $ 0.1 | $ 1.3 | $ 0.4 |
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