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Note 3 - Property Acquisitions, Developments and Other Investments
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Business Combination Disclosure [Text Block]
3.
   
Property Acquisitions, Developments and Other Investments:
 
Acquisition of Operating Properties
 
During the year ended
December
31,
2016,
the Company acquired the following operating properties, in separate transactions (in thousands):
 
 
 
 
 
Purchase Price
 
Property Name
Location
Month
Acquired
 
Cash*
 
 
Debt Assumed
 
 
Other**
 
 
Total
 
 
GLA***
 
Jericho Atrium
Jericho, NY
Apr-16
   $
29,750
     $
-
     $
-
     $
29,750
      
147
  
Oakwood Plaza
Hollywood, FL (1)
Apr-16
    
53,412
      
100,000
      
61,588
      
215,000
      
899
  
Webster Square North
Nashua, NH
Jul-16
    
8,200
      
-
      
-
      
8,200
      
21
  
Gateway Plaza
Mill Creek, WA (1)
Jul-16
    
493
      
17,500
      
-
      
17,993
      
97
  
Kentlands Market Square
Gaithersburg, MD
Aug-16
    
61,826
      
33,174
      
-
      
95,000
      
221
  
GEPT Portfolio (4 properties)
Various (1)
Sep-16
    
79,974
      
76,989
      
10,882
      
167,845
      
681
  
Coulter Avenue (2 parcels)
Ardmore, PA
Various
    
6,750
      
-
      
-
      
6,750
      
20
  
KimPru Portfolio (2 properties)
Various (1)
Oct-16
    
15,505
      
35,700
      
3,218
      
54,423
      
234
  
Hamden Mart
Hamden, CT (1)
Nov-16
    
-
      
21,369
      
29,294
      
50,663
      
345
  
 
 
 
 
$
255,910
 
 
$
284,732
 
 
$
104,982
 
 
$
645,624
 
 
 
2,665
 
 
* The Company utilized
$66.0
million associated with Internal Revenue Code
§1031
sales proceeds.
** Includes the Company’s previously held equity interest investment.
*** Gross leasable area ("GLA")
 
(1)
The Company acquired from its partners their ownership interest in properties that were held in joint ventures in which the Company had noncontrolling interests. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interests resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in the purchase price above in Other. The Company’s previous ownership interests and gains on change in control of interests recognized as a result of these transactions are as follows (in millions):
 
Property Name
 
Previous Ownership Interest
 
 
Gain on change in control of interests, net
 
Oakwood Plaza
    
55.0
%   $
46.5
  
Gateway Plaza
    
15.0
%    
-
  
GEPT Portfolio (4 properties)
    
15.0
%    
6.6
  
KimPru Portfolio (2 properties)
    
15.0
%    
0.8
  
Hamden Mart
    
47.95
%    
3.5
  
 
      
 
 
 
 
 
 
$
57.4
 
 
During the year ended
December
31,
2015,
the Company acquired the following properties, in separate transactions (in thousands):
 
 
 
 
 
Purchase Price
 
Property Name
Location
Month
Acquired
 
Cash*
 
 
Debt 
Assumed
 
 
Other
**
 
 
Total
 
 
GLA**
*
 
Elmont Plaza
Elmont, NY (1)
Jan-15
   $
2,400
     $
-
     $
3,358
     $
5,758
      
13
  
Garden State Pavilion Parcel
Cherry Hill, NJ
Jan-15
    
16,300
      
-
      
-
      
16,300
      
111
  
Kimstone Portfolio (39 properties)
Various (1)
Feb-15
    
513,513
      
637,976
      
236,011
      
1,387,500
      
5,631
  
Copperfield Village
Houston, TX
Feb-15
    
18,700
      
20,800
      
-
      
39,500
      
165
  
Snowden Square Parcel
Columbia, MD
Mar-15
    
4,868
      
-
      
-
      
4,868
      
25
  
Dulles Town Crossing Parcel
Sterling, VA
Mar-15
    
4,830
      
-
      
-
      
4,830
      
9
  
Flagler Park S.C.
Miami, FL
Mar-15
    
1,875
      
-
      
-
      
1,875
      
5
  
West Farms Parcel
New Britain, CT
Apr-15
    
6,200
      
-
      
-
      
6,200
      
24
  
Milleridge Inn
Jericho, NY
Apr-15
    
7,500
      
-
      
-
      
7,500
      
-
  
Woodgrove Festival (2 Parcels)
Woodridge, IL
Jun-15
    
5,611
      
-
      
-
      
5,611
      
12
  
Montgomery Plaza
Fort Worth, TX (1)
Jul-15
    
34,522
      
29,311
      
9,044
      
72,877
      
291
  
125 Coulter Avenue Parcel
Ardmore, PA
Sep-15
    
1,925
      
-
      
-
      
1,925
      
6
  
Conroe Marketplace
Conroe, TX (1)
Oct-15
    
18,546
     
42,350
     
3,104
     
64,000
     
289
 
Laurel Plaza
Laurel, MD
Oct-15
    
1,200
     
-
     
-
     
1,200
     
4
 
District Heights
District Heights, MD (1)
Nov-15
    
13,140
     
13,255
     
950
     
27,345
     
91
 
Village on the Park
Aurora, CO
Nov-15
    
824
     
-
     
-
     
824
     
10
  
Christown Mall
Phoenix, AZ
Nov-15
    
51,351
      
63,899
     
-
      
115,250
     
833
 
Washington St. Plaza Parcels
Brighton, MA
Dec-15
    
8,750
      
-
      
-
      
8,750
      
-
  
 
 
 
 
$
712,055
 
 
$
807,591
 
 
$
252,467
 
 
$
1,772,113
 
 
 
7,519
 
 
*   The Company utilized
$89.5
million associated with Internal Revenue Code
§1031
sales proceeds.
** Includes the Company’s previously held equity interest investment.
*** Gross leasable area ("GLA")
 
(1)
The Company acquired from its partners their ownership interest in properties that were held in joint ventures in which the Company had noncontrolling interests. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interests resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in the purchase price above in Other. The Company’s previous ownership interests and gains on change in control of interests recognized as a result of these transactions are as follows (in millions):
 
Property Name
 
Previous
Ownership
Interest
 
 
Gain on change
in control of
interests, net
 
Elmont Plaza
    
50.0
 %   $
(0.2
 )
Kimstone Portfolio (39 properties)
    
33.3
 %    
140.0
 
Montgomery Plaza
    
20.0
 %    
6.3
 
Conroe Marketplace
    
15.0
 %    
2.4
 
District Heights
    
15.0
 %    
0.7
 
     
 
     $
149.2
 
 
Included in the Company’s Consolidated Statements of Income are
$23.8
million,
$112.2
million and
$75.3
million in revenues from rental properties from the date of acquisition through
December
31,
2016,
2015
and
2014,
respectively, for operating properties acquired during each of the respective years.
 
Purchase Price Allocations
 
The purchase price for acquisitions is preliminarily allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for business combinations. The purchase price allocations and related accounting is finalized upon completion of the Company’s valuation studies. Accordingly, the fair values allocated to these assets and liabilities are subject to revision. The Company records allocation adjustments, where applicable, when purchase price allocations are finalized.
 
The preliminary allocations, allocation adjustments and revised allocations for properties acquired during the year ended
December
31,
2016,
are as follows (in thousands):
 
 
 
Preliminary
Allocation
 
 
Allocation
Adjustments
 
 
Revised Allocation
as of December 31,
2016
 
 
Weighted-Average
Amortization Period
(in Years)
 
Land
   $
179,150
    $
(13,352
 )   $
165,798
     
-
  
Buildings
    
309,493
     
69,581
     
379,074
     
50.0
  
Above-market leases
    
11,982
     
(4,304
 )    
7,678
     
8.1
  
Below-market leases
    
(31,903
 )    
(4,327
 )    
(36,230
 )    
19.1
  
In-place leases
    
44,094
     
(4,162
 )    
39,932
     
6.4
  
Building improvements
    
124,105
     
(40,194
 )    
83,911
     
45.0
  
Tenant improvements
    
12,788
     
(2,548
 )    
10,240
     
7.1
  
Mortgage fair value adjustment
    
(4,292
 )    
(694
 )    
(4,986
 )    
4.1
  
Other assets
    
234
     
-
      
234
     
-
  
Other liabilities
    
(27
 )    
-
      
(27
 )    
-
  
Net assets acquired
 
$
645,624
 
 
$
-
 
 
$
645,624
 
 
 
 
 
 
The allocation adjustments and revised allocations for properties acquired during the year ended
December
31,
2015,
are as follows (in thousands):
 
 
 
Allocation as of
December 31,
2015
 
 
Allocation
Adjustments
 
 
Revised Allocation
as of December
31, 2016
 
 
Weighted-Average
Amortization Period
(in Years)
 
Land
   $
444,626
     $
33,918
     $
478,544
      
-
  
Buildings
    
1,063,124
      
(7,980
 )    
1,055,144
      
50.0
  
Above-market leases
    
34,182
      
(2,133
 )    
32,049
      
7.2
  
Below-market leases
    
(74,997
 )    
(6,306
 )    
(81,303
 )    
17.7
  
In-place leases
    
125,993
      
1,425
      
127,418
      
4.7
  
Building improvements
    
169,116
      
(20,724
 )    
148,392
      
45.0
  
Tenant improvements
    
34,814
      
1,800
      
36,614
      
6.1
  
Mortgage fair value adjustment
    
(27,615
 )    
-
      
(27,615
 )    
3.0
  
Other assets
    
3,058
      
-
      
3,058
      
-
  
Other liabilities
    
(188
 )    
-
      
(188
 )    
-
  
Net assets acquired
 
$
1,772,113
 
 
$
-
 
 
$
1,772,113
 
 
 
 
 
 
Other Investments
 
During the year ended
December
31,
2015,
the Company entered into an agreement to acquire the remaining
50.0%
interest in a property previously held in a joint venture in which the Company had a noncontrolling interest for a gross purchase price of
$23.0
million. Upon signing this contract, which closed in
January
2016,
the Company effectively gained control of the entity and is entitled to all economics and risk of loss and as such, the Company consolidated this property pursuant to the FASB’s Consolidation guidance. Additionally, as the Company was required to purchase the partners interest at a fixed and determinable price in
January
2016,
the Company recognized
$11.5
million within Other liabilities in the Company’s Consolidated Balance Sheets at
December
31,
2015.
Based upon the Company’s intent to redevelop a portion of the property, the Company allocated
$8.4
million of the gross purchase price to Real estate under development on the Company’s Consolidated Balance Sheets and the remaining
$14.6
million was allocated to Operating real estate on the Company’s Consolidated Balance Sheets.
 
During the year ended
December
31,
2015,
the Company acquired
three
land parcels, in separate transactions, for an aggregate purchase price of
$30.0
million.
 
Pro Forma Financial Information (Unaudited)
 
As discussed above, the Company and certain of its subsidiaries acquired interests in certain operating properties during
2016
and
2015.
The pro forma financial information set forth below is based upon the Company's historical Consolidated Statements of Income for the years ended
December
31,
2016
and
2015,
adjusted to give effect to properties acquired during the years ended
December
31,
2016
and
2015,
as if they were acquired at the beginning of
2014
and
2013.
The pro forma financial information is presented for informational purposes only and
may
not be indicative of what actual results of income would have been, nor does it purport to represent the results of income for future periods. (Amounts presented in millions, except per share figures).
 
 
 
Year ended December 31,
 
 
 
201
6
 
 
201
5
 
 
201
4
 
Revenues from rental properties
   $
1,174.9
     $
1,198.6
     $
1,097.8
 
Net income
   $
397.7
     $
921.6
    $
521.9
 
Net income available to the Company
  $
344.2
     $
852.6
     $
451.7
 
Net income available to the Company per common share:
                        
Basic
   $
0.82
     $
2.07
     $
1.10
  
Diluted
   $
0.82
     $
2.07
     $
1.10