Note 3 - Real Estate

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Real Estate Disclosure [Text Block]

3. Real Estate

Acquisitions of Operating Properties -

During the three months ended March 31, 2020, the Company acquired the following operating property, through a direct asset purchase (in thousands):

			Purchase Price
Property Name	Location	Month Acquired	Cash		GLA*
North Valley Parcel	Peoria, AZ	Feb-20	$	7,073		9

* Gross leasable area ("GLA")

Purchase Price Allocation -

The purchase price for this acquisition is allocated to real estate and related intangible assets acquired, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocation for the property acquired during the three months ended March 31, 2020, is as follows (in thousands): 

	Allocation as of March 31, 2020		Weighted-Average Amortization Period (in Years)
Land	$	935	n/a
Buildings		4,610	50.0
Building improvements		221	45.0
Tenant improvements		382	19.4
In-place leases		925	19.4
Net assets acquired	$	7,073

Real Estate Under Development –

The Company is engaged in a real estate development project located in Dania Beach, FL for long-term investment. Construction is currently planned to continue on this real estate development project during the COVID-19 pandemic. As of March 31, 2020, and December 31, 2019, the costs incurred for this real estate development project were $230.6 million and $220.2 million, respectively, including capitalized costs of $28.4 million and $21.3 million, respectively. The Company capitalized (i) interest of $2.0 million and $1.9 million, (ii) real estate taxes, insurance and legal costs of $0.4 million and $0.3 million and (iii) payroll of $0.5 million and $0.5 million during the three months ended March 31, 2020 and 2019, respectively, in connection with this real estate development project.

Redevelopment –

Due to the recent COVID-19 pandemic mentioned above, the Company is re-evaluating its current redevelopment and re-tenanting projects and will only move forward with the projects it feels are necessary.

Dispositions -

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels (dollars in millions):

	Three Months Ended March 31,
	2020		2019
Aggregate sales price	$	13.5	$	74.2
Gain on sale of properties	$	3.8	$	23.6
Number of properties sold		1		5
Number of out-parcels sold		-		2

Impairments -

During the three months ended March 31, 2020 and 2019, the Company recognized aggregate impairment charges of $3.0 million and $4.2 million, respectively, related to adjustments to property carrying values for properties which the Company has marketed for sale as part of its active capital recycling program and as such has adjusted the anticipated hold period for such properties. The Company’s estimated fair values of these properties were primarily based upon estimated sales prices from signed contracts or letters of intent from third party offers. See Footnote 11 to the Notes to the Company’s Condensed Consolidated Financial Statements for fair value disclosure.

The COVID-19 pandemic has significantly impacted the retail sector in which the Company operates and if the effects of the pandemic are prolonged, it could have a significant adverse impact to the underlying industries of many of the Company’s tenants. Management cannot, at this point, estimate ultimate losses related to the COVID-19 pandemic, and accordingly no impairment charges were reflected in the accompanying financial statements related to this matter. The Company will continue to monitor the economic, financial, and social conditions resulting from this pandemic and will assess its asset portfolio for any impairment indicators. If the Company has determined that any of its assets are impaired the Company would be required to take impairment charges and such amounts could be material.