Note 4 - Real Estate

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Real Estate Disclosure [Text Block]

4. Real Estate

Acquisitions

During the three months ended March 31, 2024, there were no operating property acquisitions other than those acquired in connection with the RPT Merger. During the three months ended March 31, 2023, the Company acquired the following operating properties, through direct asset purchases or consolidation due to change in control resulting from the purchase of additional interests in certain operating properties held in an unconsolidated joint venture (in thousands):

			Purchase Price
Property Name	Location	Month Acquired	Cash		Debt		Other		Total		GLA
Portfolio (2 properties) (1)	Various	Jan-23	$	69,130	$	19,637	$	13,019	$	101,786		342
Crossroads Plaza Parcel	Cary, NC	Jan-23		2,173		-		-		2,173		5
Northridge Shopping Center Parcel	Arvada, CO	Jan-23		728		-		-		728		57
Stafford Marketplace Parcel (2)	Stafford, VA	Feb-23		-		-		12,527		12,527		87
Tustin Heights (1)	Tustin, CA	Mar-23		26,501		17,550		4,910		48,961		137
			$	98,532	$	37,187	$	30,456	$	166,175		628

(1) Other includes the Company’s previously held equity investments in the Prudential Investment Program and net gains on change in control. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interest of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Operations. The Company previously held an ownership interest of 15.0% in these property interests. See Footnote 5 of the Notes to Condensed Consolidated Financial Statements.

(2) During the three months ended March 31, 2023, the Company received a land parcel as consideration resulting from the exercise of a termination option of an operating lease.

The purchase price for these acquisitions was allocated to real estate and related intangible assets and liabilities acquired, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocation for properties acquired/consolidated during the three months ended March 31, 2023, were as follows (in thousands): 

	Allocation as of March 31, 2023			Weighted Average Amortization Period (in Years)
Land	$	51,116			n/a
Building		99,947			50.0
Building improvements		10,125			45.0
Tenant improvements		8,320			4.1
In-place leases		11,080			4.1
Above-market leases		1,329			5.7
Below-market leases		(16,551	)		23.6
Other assets		1,777			n/a
Other liabilities		(968	)		n/a
Net assets acquired	$	166,175

Dispositions

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels for the three months ended March 31, 2024 and 2023 (dollars in millions):

	Three Months Ended March 31,
	2024		2023
Aggregate sales price/gross fair value (1) (2)	$	248.4	$	117.6
Gain on sale of properties (3)	$	0.3	$	39.2
Number of properties sold		10		3
Number of parcels sold/deconsolidated (2)		5		3

(1) During 2024, the Company provided as a lender seller financing totaling $175.4 million related to the sale of nine operating properties. During 2023, the Company provided as a lender seller financing of $25.0 million related to the sale of an operating property located in Gresham, OR. See Footnote 10 of the Notes to Condensed Consolidated Financial Statements for mortgage receivable loan disclosure.

(2) During 2023, the Company contributed a land parcel and related entitlements, located in Admore, PA, into a preferred equity investment with a gross value of $19.6 million. As a result, the Company no longer consolidates this land parcel and has a non-controlling interest in this investment. See Footnote 6 of the Notes to Condensed Consolidated Financial Statements for preferred equity investment disclosure.

(3) Before noncontrolling interests of $1.5 million and taxes of $1.2 million for the three months ended March 31, 2023.

Impairments

During the three months ended March 31, 2024, the Company recognized aggregate impairment charges of $3.7 million related to adjustments to property carrying values for properties which the Company is marketing for sale as part of its select 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 15 to the Notes to Condensed Consolidated Financial Statements for fair value disclosure.