MARYLAND (State or other jurisdiction of incorporation or organization) | 23-2715194 (I.R.S. Employer Identification No.) | |
411 THEODORE FREMD AVENUE, SUITE 300, RYE, NY (Address of principal executive offices) | 10580 (Zip Code) |
YES x | NO o |
YES x | NO o |
Large Accelerated Filer x | Accelerated Filer o | |
Non-accelerated Filer o | Smaller Reporting Company o |
Page | ||
Part I: | Financial Information | |
Part II: | Other Information | |
(dollars in thousands) | March 31, 2016 | December 31, 2015 | |||||
ASSETS | (unaudited) | ||||||
Operating real estate | |||||||
Land | $ | 497,830 | $ | 514,120 | |||
Buildings and improvements | 1,586,398 | 1,593,350 | |||||
Construction in progress | 22,227 | 19,239 | |||||
2,106,455 | 2,126,709 | ||||||
Less: accumulated depreciation | 286,880 | 298,703 | |||||
Net operating real estate | 1,819,575 | 1,828,006 | |||||
Real estate under development | 639,759 | 609,574 | |||||
Notes receivable and preferred equity investments | 154,679 | 147,188 | |||||
Investments in and advances to unconsolidated affiliates | 210,309 | 173,277 | |||||
Cash and cash equivalents | 84,860 | 72,776 | |||||
Cash in escrow | 23,185 | 26,444 | |||||
Restricted cash | 10,840 | 10,840 | |||||
Rents receivable, net | 41,844 | 40,425 | |||||
Deferred charges, net | 21,776 | 22,568 | |||||
Acquired lease intangibles, net | 64,396 | 52,593 | |||||
Prepaid expenses and other assets | 50,791 | 48,628 | |||||
Assets of properties held for sale | 26,313 | — | |||||
Total assets | $ | 3,148,327 | $ | 3,032,319 | |||
LIABILITIES | |||||||
Mortgage and other notes payable, net of unamortized loan costs of $9,884 and $10,567, respectively and unamortized premiums of $1,726 and $1,364, respectively | $ | 955,003 | $ | 1,050,051 | |||
Unsecured notes payable, net of unamortized loan costs of $1,271 and $1,155, respectively | 341,555 | 308,555 | |||||
Distributions in excess of income from, and investments in, unconsolidated affiliates | 23,613 | 13,244 | |||||
Accounts payable and accrued expenses | 37,962 | 38,754 | |||||
Dividends and distributions payable | 19,343 | 37,552 | |||||
Acquired lease intangibles, net | 36,373 | 31,809 | |||||
Other liabilities | 106,002 | 31,000 | |||||
Total liabilities | 1,519,851 | 1,510,965 | |||||
EQUITY | |||||||
Shareholders' Equity | |||||||
Common shares, $.001 par value, authorized 100,000,000 shares; issued and outstanding 71,566,457 and 70,258,415 shares, respectively | 72 | 70 | |||||
Additional paid-in capital | 1,140,914 | 1,092,239 | |||||
Accumulated other comprehensive loss | (11,467 | ) | (4,463 | ) | |||
Retained earnings | 23,695 | 12,642 | |||||
Total shareholders’ equity | 1,153,214 | 1,100,488 | |||||
Noncontrolling interests | 475,262 | 420,866 | |||||
Total equity | 1,628,476 | 1,521,354 | |||||
Total liabilities and equity | $ | 3,148,327 | $ | 3,032,319 |
Three Months Ended | |||||||
March 31, | |||||||
(dollars in thousands, except per share amounts) | 2016 | 2015 | |||||
Revenues | |||||||
Rental income | $ | 38,590 | $ | 38,187 | |||
Interest income | 4,638 | 3,408 | |||||
Expense reimbursements | 7,959 | 10,066 | |||||
Other | 1,496 | 820 | |||||
Total revenues | 52,683 | 52,481 | |||||
Operating Expenses | |||||||
Property operating | 5,537 | 7,731 | |||||
Other operating | 291 | 2,120 | |||||
Real estate taxes | 6,165 | 6,292 | |||||
General and administrative | 9,352 | 7,532 | |||||
Depreciation and amortization | 16,849 | 13,658 | |||||
Total operating expenses | 38,194 | 37,333 | |||||
Operating income | 14,489 | 15,148 | |||||
Equity in earnings of unconsolidated affiliates | 1,954 | 6,593 | |||||
Loss on debt extinguishment | — | (109 | ) | ||||
Gain on disposition of properties | 65,393 | 27,143 | |||||
Interest and other finance expense | (8,038 | ) | (8,821 | ) | |||
Income before income tax benefit (provision) | 73,798 | 39,954 | |||||
Income tax benefit (provision) | 77 | (1,417 | ) | ||||
Net income | 73,875 | 38,537 | |||||
Noncontrolling interests | |||||||
Net income attributable to noncontrolling interests | (44,950 | ) | (21,990 | ) | |||
Net income attributable to Common Shareholders | $ | 28,925 | $ | 16,547 | |||
Basic and diluted earnings per share | $ | 0.40 | $ | 0.24 |
Three Months Ended | ||||||||
March 31, | ||||||||
2016 | 2015 | |||||||
(dollars in thousands) | ||||||||
Net income | $ | 73,875 | $ | 38,537 | ||||
Other comprehensive loss | ||||||||
Unrealized loss on valuation of swap agreements | (8,819 | ) | (4,319 | ) | ||||
Reclassification of realized interest on swap agreements | 1,046 | 1,053 | ||||||
Other comprehensive loss | (7,773 | ) | (3,266 | ) | ||||
Comprehensive income | 66,102 | 35,271 | ||||||
Comprehensive income attributable to noncontrolling interests | (44,181 | ) | (21,567 | ) | ||||
Comprehensive income attributable to Common Shareholders | $ | 21,921 | $ | 13,704 |
Common Shares | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Total Shareholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
(amounts in thousands, except per share amounts) | Shares | Amount | ||||||||||||||||||||||||||||
Balance at December 31, 2015 | 70,258 | $ | 70 | $ | 1,092,239 | $ | (4,463 | ) | $ | 12,642 | $ | 1,100,488 | $ | 420,866 | $ | 1,521,354 | ||||||||||||||
Conversion of OP Units to Common Shares by limited partners of the Operating Partnership | 249 | 1 | 5,679 | — | — | 5,680 | (5,680 | ) | — | |||||||||||||||||||||
Issuance of Common Shares, net of issuance costs | 1,050 | 1 | 35,219 | — | — | 35,220 | — | 35,220 | ||||||||||||||||||||||
Issuance of OP Units to acquire real estate | — | — | — | — | — | — | 29,336 | 29,336 | ||||||||||||||||||||||
Dividends declared ($0.25 per Common Share) | — | — | — | — | (17,872 | ) | (17,872 | ) | (1,473 | ) | (19,345 | ) | ||||||||||||||||||
Employee and trustee stock compensation, net | 9 | — | 208 | — | — | 208 | 3,811 | 4,019 | ||||||||||||||||||||||
Acquisition of noncontrolling interests | — | — | 7,569 | — | — | 7,569 | (25,948 | ) | (18,379 | ) | ||||||||||||||||||||
Noncontrolling interest distributions | — | — | — | — | — | — | (36,174 | ) | (36,174 | ) | ||||||||||||||||||||
Noncontrolling interest contributions | — | — | — | — | — | — | 46,343 | 46,343 | ||||||||||||||||||||||
71,566 | 72 | 1,140,914 | (4,463 | ) | (5,230 | ) | 1,131,293 | 431,081 | 1,562,374 | |||||||||||||||||||||
Comprehensive income(loss): | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | 28,925 | 28,925 | 44,950 | 73,875 | ||||||||||||||||||||||
Unrealized loss on valuation of swap agreements | — | — | — | (7,905 | ) | — | (7,905 | ) | (914 | ) | (8,819 | ) | ||||||||||||||||||
Reclassification of realized interest on swap agreements | — | — | — | 901 | — | 901 | 145 | 1,046 | ||||||||||||||||||||||
Total comprehensive (loss) income | — | — | — | (7,004 | ) | 28,925 | 21,921 | 44,181 | 66,102 | |||||||||||||||||||||
Balance at March 31, 2016 | 71,566 | $ | 72 | $ | 1,140,914 | $ | (11,467 | ) | $ | 23,695 | $ | 1,153,214 | $ | 475,262 | $ | 1,628,476 |
ACADIA REALTY TRUST AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
(dollars in thousands) | 2016 | 2015 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 73,875 | $ | 38,537 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 16,849 | 13,658 | |||||
Amortization of financing costs | 625 | 768 | |||||
Gain on disposition of properties | (65,393 | ) | (27,143 | ) | |||
Stock compensation expense | 4,019 | 1,889 | |||||
Equity in earnings of unconsolidated affiliates | (1,954 | ) | (6,593 | ) | |||
Distributions of operating income from unconsolidated affiliates | 1,082 | 5,889 | |||||
Other, net | (2,031 | ) | (1,346 | ) | |||
Changes in assets and liabilities | |||||||
Cash in escrow | 3,259 | (6,232 | ) | ||||
Rents receivable, net | (3,596 | ) | (1,354 | ) | |||
Prepaid expenses and other assets | 881 | 8,015 | |||||
Accounts payable and accrued expenses | (792 | ) | 2,437 | ||||
Other liabilities | (8,849 | ) | (1,908 | ) | |||
Net cash provided by operating activities | 17,975 | 26,617 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Acquisition of real estate | (12,287 | ) | (220,271 | ) | |||
Cash in escrow for property acquisitions | — | (33,000 | ) | ||||
Redevelopment and property improvement costs | (37,463 | ) | (40,494 | ) | |||
Deferred leasing costs | (847 | ) | (2,805 | ) | |||
Investments in and advances to unconsolidated affiliates | (8,034 | ) | (3,151 | ) | |||
Return of capital from unconsolidated affiliates | 34,235 | 1,946 | |||||
Proceeds from notes receivable | 20,500 | — | |||||
Issuance of notes receivable | (27,800 | ) | (550 | ) | |||
Proceeds from sale of properties, net | 104,458 | 63,224 | |||||
Net cash provided by (used in) investing activities | 72,762 | (235,101 | ) |
ACADIA REALTY TRUST AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
(dollars in thousands) | 2016 | 2015 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Principal payments on mortgage and other notes | (99,501 | ) | (30,390 | ) | |||
Principal payments on unsecured debt | (101,500 | ) | — | ||||
Proceeds received from mortgage and other notes | 1,945 | 42,120 | |||||
Proceeds received from unsecured debt | 134,616 | 127,600 | |||||
Loan proceeds held as restricted cash | — | 25,203 | |||||
Deferred financing and other costs | (475 | ) | (1,232 | ) | |||
Capital contributions from noncontrolling interests | 46,343 | 50 | |||||
Distributions to noncontrolling interests | (56,995 | ) | (34,718 | ) | |||
Dividends paid to Common Shareholders | (35,112 | ) | (36,779 | ) | |||
Proceeds from issuance of Common Shares, net of issuance costs of $1,654 and $440, respectively | 32,026 | 18,605 | |||||
Net cash (used in) provided by financing activities | (78,653 | ) | 110,459 | ||||
Increase (decrease) in cash and cash equivalents | 12,084 | (98,025 | ) | ||||
Cash and cash equivalents, beginning of period | 72,776 | 217,580 | |||||
Cash and cash equivalents, end of period | $ | 84,860 | $ | 119,555 | |||
Supplemental disclosure of cash flow information | |||||||
Cash paid during the period for interest, net of capitalized interest of $5,115 and $3,673, respectively | $ | 8,437 | $ | 13,344 | |||
Cash paid for income taxes | $ | (256 | ) | $ | 902 | ||
Supplemental disclosure of non-cash investing activities | |||||||
Acquisition of real estate through assumption of debt | $ | 1,463 | $ | 9,765 | |||
Acquisition of capital lease obligation | $ | 76,461 | $ | — | |||
Acquisition of real estate through issuance of OP Units | $ | 29,336 | $ | — |
1. | ORGANIZATION AND BASIS OF PRESENTATION |
Entity | Formation Date | Operating Partnership Share of Capital | Fund Size | Capital Called as of March 31, 2016 (4) | Unfunded Commitment | Equity Interest Held By Operating Partnership | Preferred Return | Total Distributions as of March 31, 2016 (4) |
Mervyns I (1) | 9/2001 | 22.22% | $90.0 | $86.6 | $— | 37.78% | 9% | $194.5 |
Fund II and Mervyns II (2) | 6/2004 | 28.33% | 300.0 | 300.0 | 47.1 | 28.33% | 8% | 131.6 |
Fund III (3) | 5/2007 | 24.54% | 502.5 | 387.5 | 62.5 | 39.63% | 6% | 497.7 |
Fund IV | 5/2012 | 23.12% | 540.6 | 239.3 | 301.2 | 23.12% | 6% | 101.9 |
Three Months Ended | |||||||
March 31, | |||||||
(dollars in thousands, except per share amounts) | 2016 | 2015 | |||||
Numerator | |||||||
Net income attributable to Common Shareholders | $ | 28,925 | $ | 16,547 | |||
Less: net income attributable to participating securities | (365 | ) | (240 | ) | |||
Net income attributable to Common Shareholders, net of income attributable to participating securities | 28,560 | 16,307 | |||||
Denominator | |||||||
Weighted average shares for basic earnings per share | 70,756 | 68,295 | |||||
Effect of dilutive securities: | |||||||
Employee Restricted Share Units and share options | 16 | 40 | |||||
Convertible Preferred OP Units | 428 | 25 | |||||
Denominator for diluted earnings per share | 71,200 | 68,360 | |||||
Basic and diluted earnings per Common Share attributable to Common Shareholders | $ | 0.40 | $ | 0.24 |
3. | SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS |
(dollars in thousands) | |||||||||||||
Property | GLA | Percent Owned | Type | Month of Acquisition | Purchase Price | Location | Assumption of Debt | ||||||
Core Portfolio: | |||||||||||||
Gotham Plaza (1) | 122,902 | 49 | % | Urban Retail Center | January | $ | 39,808 | New York, NY | $ | 10,472 | |||
991 Madison Avenue (2) | 6,920 | 100 | % | Street Retail | March | 76,461 | New York, NY | — | |||||
Total Core Portfolio | 129,822 | $ | 116,269 | $ | 10,472 | ||||||||
Fund IV: | |||||||||||||
1964 Union Street | 3,817 | 90 | % | Street Retail | January | $ | 2,250 | San Francisco, CA | $ | 1,463 | |||
Restaurants at Fort Point | 15,711 | 100 | % | Urban Retail Center | January | 11,500 | Boston, MA | — | |||||
Total Fund IV | 19,528 | $ | 13,750 | $ | 1,463 | ||||||||
Total | 149,350 | $ | 130,019 | $ | 11,935 |
(dollars in thousands) | Preliminary Purchase Price Allocations | ||
Land | $ | 23,192 | |
Buildings and improvements | 69,575 | ||
Debt assumed (included in Mortgage and other notes payable) | (21,371 | ) | |
Total consideration | $ | 71,396 |
(dollars in thousands) | Purchase Price Allocations as Originally Reported | Adjustments | Finalized Purchase Price Allocations | ||||||
Land | $ | 65,759 | $ | 1,258 | $ | 67,017 | |||
Buildings and improvements | 204,532 | (12,060 | ) | 192,472 | |||||
Acquisition-related intangible assets (in Acquired lease intangibles, net) | — | 20,326 | 20,326 | ||||||
Acquisition-related intangible liabilities (in Acquired lease intangibles, net) | — | (8,809 | ) | (8,809 | ) | ||||
Below market debt assumed (in Mortgage and other notes payable) | (9,765 | ) | (715 | ) | (10,480 | ) | |||
Total consideration | $ | 260,526 | $ | — | $ | 260,526 |
(dollars in thousands) | Fund Share | Operating Partnership Share | ||||||||||||||
Investment | Year Acquired | Invested Capital and Advances | Distributions | Invested Capital and Advances | Distributions | |||||||||||
Mervyns | 2004 | $ | 26,058 | $ | 48,648 | $ | 4,901 | $ | 11,821 | |||||||
Mervyns Add-On investments | 2005/2008 | 7,547 | 9,272 | 1,252 | 2,017 | |||||||||||
Albertsons | 2006 | 20,717 | 81,594 | 4,239 | 16,318 | |||||||||||
Albertsons Add-On investments | 2006/2007 | 2,416 | 4,864 | 388 | 972 | |||||||||||
Shopko | 2006 | 1,110 | 3,358 | 222 | 672 | |||||||||||
Marsh and Add-On investments | 2006/2008 | 2,667 | 2,941 | 533 | 588 | |||||||||||
Rex Stores | 2007 | 2,701 | 4,927 | 535 | 986 | |||||||||||
Total | $ | 63,216 | $ | 155,604 | $ | 12,070 | $ | 33,374 |
(dollars in thousands) | March 31, 2016 | December 31, 2015 | |||||
Aggregate and Condensed Balance Sheets | |||||||
Assets | |||||||
Rental property, net | $ | 553,827 | $ | 302,976 | |||
Real estate under development | 40,059 | 35,743 | |||||
Investment in unconsolidated affiliates | 6,853 | 6,853 | |||||
Other assets | 47,813 | 47,083 | |||||
Total assets | $ | 648,552 | $ | 392,655 | |||
Liabilities and partners’ equity | |||||||
Mortgage notes payable | $ | 340,417 | $ | 192,684 | |||
Other liabilities | 22,950 | 21,945 | |||||
Partners’ equity | 285,185 | 178,026 | |||||
Total liabilities and partners’ equity | $ | 648,552 | $ | 392,655 | |||
Company’s investment in and advances to unconsolidated affiliates | $ | 210,309 | $ | 173,277 | |||
Company's share of distributions in excess of income from, and investments in, unconsolidated affiliates | $ | (23,613 | ) | $ | (13,244 | ) |
Three Months Ended | |||||||
March 31, | |||||||
(dollars in thousands) | 2016 | 2015 | |||||
Aggregate and Condensed Statements of Income | |||||||
Total revenues | $ | 13,372 | $ | 11,930 | |||
Operating and other expenses | (3,730 | ) | (3,857 | ) | |||
Interest and other finance expense | (2,736 | ) | (2,638 | ) | |||
Equity in earnings of unconsolidated affiliates | — | 66,655 | |||||
Depreciation and amortization | (3,880 | ) | (2,307 | ) | |||
Net income | $ | 3,026 | $ | 69,783 | |||
Company’s share of net income | $ | 2,052 | $ | 6,691 | |||
Amortization of excess investment | (98 | ) | (98 | ) | |||
Company’s equity in earnings of unconsolidated affiliates | $ | 1,954 | $ | 6,593 |
(dollars in thousands) | |||||||||||||||||||
Description | Notes | Effective interest rate (1) | First Priority liens | Net Carrying Amounts of Structured Financing Portfolio as of March 31, 2016 | Net Carrying Amounts of Structured Financing Portfolio as of December 31, 2015 | Maturity date | Extension Options | ||||||||||||
First Mortgage Loan | 6.0% | $ | 15,000 | $ | 15,000 | 5/1/2016 | 1 x 12 Months | ||||||||||||
First Mortgage Loan | (2) | 7.0% | 13,250 | — | 7/13/2016 | 1 x 3 Months | |||||||||||||
First Mortgage Loan | (3) | 8.8% | — | 7,500 | 11/1/2016 | ||||||||||||||
Preferred Equity | (4) | 8.1% | — | 13,000 | 9/1/2017 | ||||||||||||||
First Mortgage Loan | LIBOR + 7.1% | 26,000 | 26,000 | 6/25/2018 | 1 x 12 Months | ||||||||||||||
Zero Coupon Loan | (5) | 2.5% | 30,424 | 30,234 | 5/31/2020 | ||||||||||||||
Mezzanine Loan | 15.0% | 166,200 | 30,879 | 30,879 | 11/9/2020 | ||||||||||||||
Preferred Equity | (6) | 15.3% | 14,000 | — | 1/13/2021 | 2 x 12 Months | |||||||||||||
First Mortgage Loan | (7) | 7.7% | 12,000 | 12,000 | Demand | ||||||||||||||
Individually less than 3% | (8) (9) | 5.5% to 18.0% | 13,126 | 12,575 | 4/1/2016 to 7/1/2017 | ||||||||||||||
Total | $ | 154,679 | $ | 147,188 |
6. | STRUCTURED FINANCING PORTFOLIO (continued) |
7. | DERIVATIVE FINANCIAL INSTRUMENTS |
8. | MORTGAGE AND OTHER NOTES PAYABLE |
(dollars in thousands) | Borrowings | Repayments | |||||||||
Property | Date | Description | Amount | Interest Rate | Maturity Date | Amount | Interest Rate | ||||
Cortlandt Town Center | January | Repayment | $ | — | $ | 83,070 | LIBOR+1.85% | ||||
1964 Union Street | January | Assumption | 1,463 | 3.8% | 10/1/2025 | — | |||||
Chicago Street Retail Portfolio | January | Repayment | — | 14,955 | 5.62% | ||||||
Total | $ | 1,463 | $ | 98,025 |
(dollars in thousands) | Level 1 | Level 2 | Level 3 | ||||||||
Liabilities | |||||||||||
Derivative financial instruments (Note 7) | $ | — | $ | 12,450 | $ | — |
(dollars in thousands) | March 31, 2016 | December 31, 2015 | |||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
Notes receivable and preferred equity investments, net | $ | 154,679 | $ | 154,679 | $ | 147,188 | $ | 147,188 | |||||||
Mortgage and other notes payable | $ | 1,296,558 | $ | 1,323,937 | $ | 1,358,606 | $ | 1,382,318 |
(dollars in thousands) | Core Portfolio | Funds | Structured Financing Portfolio | Total | ||||||||||||
Revenues | $ | 38,107 | $ | 9,938 | $ | 4,638 | $ | 52,683 | ||||||||
Property operating expenses, other operating and real estate taxes | (8,562 | ) | (3,431 | ) | — | (11,993 | ) | |||||||||
General and administrative expenses | (9,073 | ) | (279 | ) | — | (9,352 | ) | |||||||||
Depreciation and amortization | (13,495 | ) | (3,354 | ) | — | (16,849 | ) | |||||||||
Operating income | 6,977 | 2,874 | 4,638 | 14,489 | ||||||||||||
Equity in earnings of unconsolidated affiliates | 592 | 1,362 | — | 1,954 | ||||||||||||
Gain on disposition of properties | — | 65,393 | — | 65,393 | ||||||||||||
Interest and other finance expense | (6,764 | ) | (1,274 | ) | — | (8,038 | ) | |||||||||
Income tax benefit | 77 | — | — | 77 | ||||||||||||
Net income | $ | 882 | $ | 68,355 | $ | 4,638 | $ | 73,875 | ||||||||
Noncontrolling interests | ||||||||||||||||
Net income attributable to noncontrolling interests | $ | (2,822 | ) | $ | (42,128 | ) | $ | — | $ | (44,950 | ) | |||||
Net income attributable to Common Shareholders | $ | (1,940 | ) | $ | 26,227 | $ | 4,638 | $ | 28,925 | |||||||
Real Estate at Cost | $ | 1,641,312 | $ | 1,104,902 | $ | — | $ | 2,746,214 | ||||||||
Total Assets | $ | 1,827,059 | $ | 1,166,589 | $ | 154,679 | $ | 3,148,327 | ||||||||
Acquisition of Real Estate | $ | — | $ | 12,287 | $ | — | $ | 12,287 | ||||||||
Investment in Redevelopment and Improvements | $ | 3,248 | $ | 34,215 | $ | — | $ | 37,463 |
(dollars in thousands) | Core Portfolio | Funds | Structured Financing Portfolio | Total | ||||||||||||
Revenues | $ | 35,593 | $ | 13,480 | $ | 3,408 | $ | 52,481 | ||||||||
Property operating expenses, other operating and real estate taxes | (9,691 | ) | (6,452 | ) | — | (16,143 | ) | |||||||||
General and administrative expenses | (6,811 | ) | (721 | ) | — | (7,532 | ) | |||||||||
Depreciation and amortization | (9,907 | ) | (3,751 | ) | — | (13,658 | ) | |||||||||
Operating income | 9,184 | 2,556 | 3,408 | 15,148 | ||||||||||||
Equity in earnings of unconsolidated affiliates | 434 | 6,159 | — | 6,593 | ||||||||||||
Loss on debt extinguishment | — | (109 | ) | — | (109 | ) | ||||||||||
Gain on disposition of property | — | 27,143 | — | 27,143 | ||||||||||||
Interest and other finance expense | (6,468 | ) | (2,353 | ) | — | (8,821 | ) | |||||||||
Income tax provision | (480 | ) | (937 | ) | — | (1,417 | ) | |||||||||
Net income | $ | 2,670 | $ | 32,459 | $ | 3,408 | $ | 38,537 | ||||||||
Noncontrolling interests | ||||||||||||||||
Net income attributable to noncontrolling interests | $ | (179 | ) | $ | (21,811 | ) | $ | — | $ | (21,990 | ) | |||||
Net income attributable to Common Shareholders | $ | 2,491 | $ | 10,648 | $ | 3,408 | $ | 16,547 | ||||||||
Real Estate at Cost | $ | 1,550,695 | $ | 953,607 | $ | — | $ | 2,504,302 | ||||||||
Total Assets | $ | 1,666,987 | $ | 1,105,319 | $ | 98,560 | $ | 2,870,866 | ||||||||
Acquisition of Real Estate | $ | 169,235 | $ | 51,036 | $ | — | $ | 220,271 | ||||||||
Investment in Redevelopment and Improvements | $ | 6,353 | $ | 34,141 | $ | — | $ | 40,494 |
• | Own and operate a Core Portfolio of high-quality retail properties located primarily in high-barrier-to-entry, densely-populated metropolitan areas. Our goal is to create value through accretive redevelopment and re-tenanting activities within our existing portfolio and grow this platform through the acquisition of high-quality assets that have the long-term potential to outperform the asset class. |
• | Generate additional growth through our Funds in which we co-invest with high-quality institutional investors. Our Fund strategy focuses on opportunistic yet disciplined acquisition with high inherent opportunity for the creation of additional value, execution on this opportunity and the realization of value through the sale of these assets. In connection with this strategy, we focus on: |
◦ | value-add investments in street retail properties, located in established and "next generation" submarkets, with re-tenanting or repositioning opportunities, |
◦ | opportunistic acquisitions of well-located real estate anchored by distressed retailers, and |
◦ | other opportunistic acquisitions, which vary based on market conditions and may include high-yield acquisitions and purchases of distressed debt. |
• | Some of these investments have also included, and may in the future include, joint ventures with private equity investors for the purpose of making investments in operating retailers with significant embedded value in their real estate assets. |
• | Maintain a strong and flexible balance sheet through conservative financial practices while ensuring access to sufficient capital to fund future growth. |
• | Core Portfolio |
◦ | Our Core Portfolio consists of those properties we either entirely own, or partially own in joint ventures, through the Operating Partnership, or subsidiaries thereof, not including those properties owned through our Funds. There are 92 properties in our Core Portfolio totaling 4.7 million square feet. As of March 31, 2016, the Core Portfolio physical occupancy was 96.3% and leased occupancy, which includes executed leases for which rent has not yet commenced, was 96.6%. |
• | Funds |
◦ | Fund II has four properties, two of which (representing 0.3 million square feet) are operating, one of which is under construction, and one of which is in the design phase. |
◦ | Fund III has 10 properties, seven of which (representing 1.1 million square feet) are operating and three of which are in various stages of redevelopment. |
◦ | Fund IV has investments in 20 individual properties, 16 of which (representing 1.0 million square feet) are operating and 4 of which are in various stages of development. In addition, Fund IV is invested in a portfolio of 25 properties (the Broughton Street Portfolio), 14 of which are operating and 11 of which are in various stages of development. |
(dollars in millions) | 2016 | 2015 | |||||||||||||||||||||
Revenues | Core Portfolio | Funds | Structured Financing Portfolio | Core Portfolio | Funds | Structured Financing Portfolio | |||||||||||||||||
Rental income | $ | 30.4 | $ | 8.2 | $ | — | $ | 28.5 | $ | 9.7 | $ | — | |||||||||||
Interest income | — | — | 4.6 | — | — | 3.4 | |||||||||||||||||
Expense reimbursements | 6.5 | 1.4 | — | 6.7 | 3.4 | — | |||||||||||||||||
Other | 1.2 | 0.3 | — | 0.4 | 0.4 | — | |||||||||||||||||
Total revenues | $ | 38.1 | $ | 9.9 | $ | 4.6 | $ | 35.6 | $ | 13.5 | $ | 3.4 |
(dollars in millions) | 2016 | 2015 | |||||||||||||||||||||
Operating Expenses | Core Portfolio | Funds | Structured Financing Portfolio | Core Portfolio | Funds | Structured Financing Portfolio | |||||||||||||||||
Property operating | $ | 3.9 | $ | 1.6 | $ | — | $ | 5.1 | $ | 2.6 | $ | — | |||||||||||
Other operating | 0.2 | 0.1 | — | 0.5 | 1.6 | — | |||||||||||||||||
Real estate taxes | 4.5 | 1.7 | — | 4.1 | 2.2 | — | |||||||||||||||||
General and administrative | 9.1 | 0.3 | — | 6.8 | 0.7 | — | |||||||||||||||||
Depreciation and amortization | 13.5 | 3.4 | — | 9.9 | 3.8 | — | |||||||||||||||||
Total operating expenses | $ | 31.2 | $ | 7.1 | $ | — | $ | 26.4 | $ | 10.9 | $ | — |
(dollars in millions) | 2016 | 2015 | |||||||||||||||||||||
Other | Core Portfolio | Funds | Structured Financing Portfolio | Core Portfolio | Funds | Structured Financing Portfolio | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | $ | 0.6 | $ | 1.4 | $ | — | $ | 0.4 | $ | 6.2 | $ | — | |||||||||||
Loss on debt extinguishment | — | — | — | — | (0.1 | ) | — | ||||||||||||||||
Gain on disposition of properties | — | 65.4 | — | — | 27.1 | — | |||||||||||||||||
Interest and other finance expense | (6.8 | ) | (1.3 | ) | — | (6.5 | ) | (2.4 | ) | — | |||||||||||||
Income tax benefit (provision) | 0.1 | — | — | (0.5 | ) | (0.9 | ) | — | |||||||||||||||
Net income attributable to noncontrolling interests - | |||||||||||||||||||||||
- Continuing operations | (2.8 | ) | (42.1 | ) | — | (0.2 | ) | (21.8 | ) | — |
(dollars in millions) | ||||||||
Reconciliation of Consolidated Operating Income to NOI - Core Portfolio | ||||||||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Consolidated Operating Income | $ | 14.5 | $ | 15.1 | ||||
Add back: | ||||||||
General and administrative | 9.4 | 7.5 | ||||||
Depreciation and amortization | 16.8 | 13.7 | ||||||
Less: | ||||||||
Interest income | (4.6 | ) | (3.4 | ) | ||||
Above/below market rent, straight-line rent and other adjustments | (3.5 | ) | (0.5 | ) | ||||
Consolidated NOI | 32.6 | 32.4 | ||||||
Less: Noncontrolling interest in consolidated NOI | (7.1 | ) | (9.4 | ) | ||||
Less: Operating Partnership's interest in Fund NOI included above | (1.3 | ) | (1.6 | ) | ||||
Add: Operating Partnership's share of unconsolidated joint ventures NOI 1 | 3.3 | 2.5 | ||||||
Core Portfolio NOI | $ | 27.5 | $ | 23.9 |
(dollars in millions) | ||||||||
Reconciliation of Core Portfolio NOI to Same-Property NOI | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2016 | 2015 | |||||||
Core Portfolio NOI | $ | 27.5 | $ | 23.9 | ||||
Less: properties excluded from Same-Property NOI | (3.3 | ) | (0.6 | ) | ||||
Same-Property NOI | $ | 24.2 | $ | 23.3 | ||||
Percent change from 2015 | 3.6 | % | ||||||
Components of Same-Property NOI | ||||||||
Same-Property Revenues | $ | 31.7 | $ | 31.5 | ||||
Same-Property Operating Expenses | (7.5 | ) | (8.2 | ) | ||||
Same-Property NOI | $ | 24.2 | $ | 23.3 |
Rent Spreads on New and Renewal Leases - Core Portfolio | |||||||
Three Months Ended | |||||||
March 31, 2016 | |||||||
Core Portfolio New and Renewal Leases | Cash Basis | Straight-Line Basis (GAAP) | |||||
Number of new and renewal leases executed | 12 | 12 | |||||
Gross leasable area | 43,015 | 43,015 | |||||
New average base rent | $ | 27.36 | $ | 26.39 | |||
Expiring average base rent | $ | 24.99 | $ | 25.33 | |||
Percent growth in average base rent | 9.5 | % | 4.2 | % | |||
Average cost per square foot (1) | $ | 25.07 | $ | 25.07 | |||
Weighted average lease term (years) | 8.2 | 8.2 |
Three Months Ended | |||||||
March 31, | |||||||
(amounts in millions, except per share amounts) | 2016 | 2015 | |||||
Funds From Operations | |||||||
Net income attributable to Common Shareholders | $ | 28.9 | $ | 16.5 | |||
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interests’ share) | 15.3 | 10.9 | |||||
Gain on sale (net of noncontrolling interests’ share) | (15.1 | ) | (5.4 | ) | |||
Income attributable to Common OP Unit holders | 2.0 | 1.0 | |||||
Funds from operations attributable to Common Shareholders and Common OP Unit holders | $ | 31.1 | $ | 23.0 | |||
Funds From Operations per Share - Diluted | |||||||
Weighted average number of Common Shares and Common OP Units | 75.8 | 72.6 | |||||
Diluted funds from operations, per Common Share and Common OP Unit | $ | 0.41 | $ | 0.32 |
(dollars in millions) | ||||||||||||
Property | Owner | Costs to date | Anticipated additional costs (1) | Status | Anticipated square feet upon completion | Anticipated completion dates | ||||||
City Point (2) (3) | Fund II | $ | 366.7 | $23.3 - $43.3 | Construction commenced | 763,000 | 2016/2020 | |||||
Sherman Plaza | Fund II | 35.9 | To be determined | Pre-construction | To be determined | To be determined | ||||||
Cortlandt Crossing | Fund III | 15.2 | 31.8 - 40.8 | Pre-construction | 150,000 - 170,000 | 2017 | ||||||
3104 M Street NW | Fund III | 7.5 | 0.5 - 1.5 | Construction commenced | 10,000 | 2016 | ||||||
Broad Hollow Commons | Fund III | 14.6 | 35.4 - 45.4 | Pre-construction | 180,000 - 200,000 | 2016 | ||||||
210 Bowery | Fund IV | 13.3 | 5.2 - 9.2 | Construction commenced | 16,000 | 2016 | ||||||
Broughton Street Portfolio | Fund IV | 66.1 | 18.9 - 23.9 | Construction commenced | 200,000 | 2016 | ||||||
27 E. 61st Street | Fund IV | 21.4 | 1.4 - 5.4 | Pre-construction | 9,500 | 2016 | ||||||
801 Madison Avenue | Fund IV | 33.6 | 2.4 - 7.4 | Pre-construction | 5,000 | 2016 | ||||||
650 Bald Hill Road | Fund IV | 13.0 | 14.5 - 19.5 | Pre-construction | 161,000 | 2016 | ||||||
Total | $ | 587.3 | $133.4 - $196.4 |
(dollars in millions) Borrower | Total amount of credit facility | Amount borrowed as of December 31, 2015 | Net borrowings (repayments) during the three months ended March 31, 2016 | Amount borrowed as of March 31, 2016 | Letters of credit outstanding as of March 31, 2016 | Amount available under credit facilities as of March 31, 2016 | ||||||||||||||||||
Unsecured Line (1) | $ | 150.0 | $ | 20.8 | $ | (20.8 | ) | $ | — | $ | 17.5 | $ | 132.5 | |||||||||||
Term Loan | 50.0 | 50.0 | — | 50.0 | — | — | ||||||||||||||||||
Term Loan | 50.0 | 50.0 | — | 50.0 | — | — | ||||||||||||||||||
Term Loan | 50.0 | 50.0 | — | 50.0 | — | — | ||||||||||||||||||
Term Loan | 50.0 | — | 50.0 | 50.0 | — | |||||||||||||||||||
Fund II Line | 25.0 | 12.5 | 7.5 | 20.0 | — | 5.0 | ||||||||||||||||||
Fund IV revolving subscription line (2) | 150.0 | 91.9 | (9.2 | ) | 82.7 | — | 67.3 | |||||||||||||||||
Fund IV Term Loan | 50.0 | 34.5 | 5.6 | 40.1 | — | 9.9 | ||||||||||||||||||
Total | $ | 575.0 | $ | 309.7 | $ | 33.1 | $ | 342.8 | $ | 17.5 | $ | 214.7 |
(dollars in millions) | Principal Outstanding as of | ||||||||
Description of Debt and Collateral | 3/31/16 | 12/31/15 | Interest Rate | Maturity | Payment Terms | ||||
Variable-rate debt | |||||||||
Secured debt | |||||||||
Cortlandt Town Center | $ | — | $ | 83.1 | LIBOR+1.65% | 10/26/2015 | Monthly principal and interest | ||
Nostrand Avenue | 11.4 | 11.5 | LIBOR+2.65% | 5/1/2016 | Monthly principal and interest | ||||
Broughton Street Portfolio | 20.0 | 20.0 | LIBOR+3.00% | 5/5/2016 | Interest only monthly | ||||
640 Broadway | 22.0 | 22.1 | LIBOR+2.95% | 7/1/2016 | Monthly principal and interest | ||||
City Point | 20.0 | 20.0 | LIBOR+1.70% | 8/23/2016 | Interest only monthly | ||||
City Point | 62.0 | 62.0 | Sifma+1.60% | 12/1/2016 | Interest only monthly | ||||
Heritage Shops | 24.5 | 24.5 | LIBOR+1.55% | 2/28/2017 | Monthly principal and interest | ||||
654 Broadway | 8.8 | 8.8 | LIBOR+1.88% | 3/1/2017 | Monthly principal and interest | ||||
New Hyde Park Shopping Center | 11.1 | 11.2 | LIBOR+1.85% | 5/1/2017 | Monthly principal and interest | ||||
938 W. North Avenue | 12.5 | 12.5 | LIBOR+2.35% | 5/1/2017 | Interest only monthly | ||||
1151 Third Avenue | 12.5 | 12.5 | LIBOR+1.75% | 6/3/2017 | Interest only monthly | ||||
210 Bowery | 4.7 | 4.6 | LIBOR+2.12% | 10/15/2017 | Interest only monthly | ||||
161st Street | 29.5 | 29.5 | LIBOR+2.50% | 4/1/2018 | Interest only monthly | ||||
664 North Michigan Avenue | 42.8 | 43.1 | LIBOR+1.65% | 6/28/2018 | Monthly principal and interest | ||||
Paramus Plaza | 14.1 | 13.4 | LIBOR+1.70% | 2/20/2019 | Interest only monthly | ||||
Lake Montclair | 14.8 | 14.9 | LIBOR+2.15% | 5/1/2019 | Monthly principal and interest | ||||
17 E. 71st Street | 19.0 | 19.0 | LIBOR+1.90% | 6/9/2020 | Interest only monthly | ||||
1035 Third Avenue | 42.0 | 42.0 | LIBOR+2.09% | 1/27/2021 | Interest only monthly | ||||
City Point | 19.9 | 20.0 | LIBOR+1.39% | 11/1/2021 | Monthly principal and interest | ||||
3104 M Street | 4.1 | 3.0 | Prime+0.50% | 12/10/2021 | Interest only monthly | ||||
4401 White Plains Road | 6.0 | 6.0 | LIBOR+1.90% | 9/1/2022 | Monthly principal and interest | ||||
28 Jericho Turnpike | 15.2 | 15.3 | LIBOR+1.90% | 1/23/2023 | Monthly principal and interest | ||||
60 Orange Street | 7.9 | 8.0 | LIBOR+1.75% | 4/3/2023 | Monthly principal and interest | ||||
Sub-total mortgage notes payable | 424.8 | 507.0 | |||||||
Unsecured debt | |||||||||
Fund II Line | 20.0 | 12.5 | LIBOR+2.75% | 10/9/2016 | Interest only monthly | ||||
Fund IV revolving subscription line | 82.7 | 91.9 | LIBOR+1.65% | 11/18/2016 | Interest only monthly | ||||
Fund IV Term Loan | 40.1 | 34.5 | LIBOR+2.75% | 2/9/2017 | Interest only monthly | ||||
Unsecured Line | — | 20.8 | LIBOR+1.40% | 1/31/2018 | Interest only monthly | ||||
Term Loan | 50.0 | 50.0 | LIBOR+1.30% | 11/25/2019 | Interest only monthly | ||||
Term Loan | 50.0 | 50.0 | LIBOR+1.40% | 7/2/2020 | Interest only monthly | ||||
Term Loan | 50.0 | 50.0 | LIBOR+1.60% | 12/18/2020 | Interest only monthly | ||||
Term Loan | 50.0 | — | LIBOR+1.30% | 1/4/2021 | Interest only monthly | ||||
Sub-total unsecured debt | 342.8 | 309.7 | |||||||
Interest rate swaps (1) | (305.7 | ) | (256.5 | ) | |||||
Total variable-rate debt | 461.9 | 560.2 | |||||||
(dollars in millions) | Principal Outstanding as of | ||||||||
Description of Debt and Collateral | 3/31/16 | 12/31/15 | Interest Rate | Maturity | Payment Terms | ||||
Fixed-rate debt | |||||||||
Chicago Street Retail Portfolio | — | 15.0 | 5.62% | 2/1/2016 | Monthly principal and interest | ||||
330-340 River Street | 10.4 | 10.4 | 5.24% | 5/1/2016 | Monthly principal and interest | ||||
Brandywine (2) | 166.2 | 166.2 | 6.00% | 7/1/2016 | Interest only monthly | ||||
Rhode Island Place Shopping Center | 15.7 | 15.7 | 6.35% | 12/1/2016 | Monthly principal and interest | ||||
City Point | 19.0 | 19.0 | 1.25% | 12/1/2016 | Interest only monthly | ||||
239 Greenwich Avenue | 26.0 | 26.0 | 5.42% | 2/11/2017 | Interest only monthly | ||||
639 West Diversey | 4.1 | 4.1 | 6.65% | 3/1/2017 | Monthly principal and interest | ||||
Merrillville Plaza | 25.1 | 25.1 | 5.88% | 8/1/2017 | Monthly principal and interest | ||||
Bedford Green | 29.0 | 29.2 | 5.10% | 9/5/2017 | Monthly principal and interest | ||||
216th Street | 25.5 | 25.5 | 5.80% | 10/1/2017 | Interest only monthly | ||||
City Point | 5.3 | 5.3 | 1.00% | 8/23/2019 | Interest only monthly | ||||
City Point | 200.0 | 200.0 | 4.75% | 5/29/2020 | Interest only monthly | ||||
163 Highland Avenue | 9.5 | 9.6 | 4.66% | 2/1/2024 | Monthly principal and interest | ||||
1964 Union Street | 1.5 | — | 3.80% | 10/1/2025 | Interest only monthly | ||||
2207 Filmore Street | 1.1 | 1.1 | 4.50% | 10/31/2025 | Interest only monthly | ||||
Interest rate swaps (1) | 305.7 | 256.5 | |||||||
Total fixed-rate debt | 844.1 | 808.7 | |||||||
Total debt | 1,306.0 | 1,368.9 | |||||||
Unamortized loan costs | (11.2 | ) | (11.7 | ) | |||||
Unamortized premium | 1.7 | 1.4 | |||||||
Total debt, net | $ | 1,296.5 | $ | 1,358.6 |
(dollars in millions) | Payments due by period | ||||||||||||||||||
Contractual obligations | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | ||||||||||||||
Future debt maturities | $ | 1,306.0 | $ | 557.1 | $ | 207.8 | $ | 432.5 | $ | 108.6 | |||||||||
Interest obligations on debt | 125.2 | 39.8 | 46.7 | 28.5 | 10.2 | ||||||||||||||
Lease obligations (1) | 216.6 | 3.7 | 12.7 | 10.9 | 189.3 | ||||||||||||||
Construction commitments | 83.6 | 83.6 | — | — | — | ||||||||||||||
Total | $ | 1,731.4 | $ | 684.2 | $ | 267.2 | $ | 471.9 | $ | 308.1 |
Three Months Ended March 31, | |||||||||||
(dollars in millions) | 2016 | 2015 | Change | ||||||||
Net cash provided by operating activities | $ | 18.0 | $ | 26.6 | $ | (8.6 | ) | ||||
Net cash provided by (used in) investing activities | 72.8 | (235.1 | ) | 307.9 | |||||||
Net cash (used in) provided by financing activities | (78.7 | ) | 110.5 | (189.2 | ) | ||||||
Total | $ | 12.1 | $ | (98.0 | ) | $ | 110.1 |
• | An upfront payment of a capital lease obligation during 2016 |
• | $241.0 million less cash was used for the acquisition of real estate |
• | $41.3 million increase in cash received from the disposition of properties |
• | $32.3 million increase in cash collected from the return of capital from unconsolidated affiliates |
• | $6.7 million of additional cash was issued for notes receivable, net of repayments |
• | Cash provided from net borrowings decreased $228.9 million |
• | $29.8 million of additional cash distributed to noncontrolling interests |
• | $46.3 million of additional cash contributed from noncontrolling interests |
• | $13.4 million more cash received from the issuance of Common Shares |
(dollars in millions) | Operating Partnership | ||||||||
Investment | Pro-rata share of mortgage debt | Interest rate at March 31, 2016 | Maturity Date | ||||||
Promenade at Manassas | $ | 5.7 | 1.84 | % | November 2016 | ||||
1701 Belmont Avenue | 0.7 | 4.00 | % | January 2017 | |||||
Arundel Plaza | 2.2 | 2.44 | % | April 2017 | |||||
2819 Kennedy Boulevard | 1.6 | 2.59 | % | December 2017 | |||||
Eden Square | 3.6 | 2.44 | % | December 2017 | |||||
230/240 W. Broughton | 1.0 | 2.34 | % | May 2018 | |||||
Crossroads | 33.1 | 3.94 | % | October 2024 | |||||
840 N. Michigan | 65.0 | 4.36 | % | February 2025 | |||||
Georgetown Portfolio | 8.7 | 4.72 | % | December 2027 | |||||
Cortlandt Town Center | 8.0 | 2.19 | % | January 2020 | |||||
Gotham Plaza | 10.4 | 2.04 | % | June 2023 | |||||
Total | $ | 140.0 |
April 29, 2016 | /s/ Kenneth F. Bernstein Kenneth F. Bernstein President and Chief Executive Officer (Principal Executive Officer) |
April 29, 2016 | /s/ Jonathan W. Grisham Jonathan W. Grisham Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
Exhibit No. | Description |
31.1 | Certification of Chief Executive Officer pursuant to rule 13a–14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (1) |
31.2 | Certification of Chief Financial Officer pursuant to rule 13a–14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (1) |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1) |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1) |
101.INS | XBRL Instance Document* |
101.SCH | XBRL Taxonomy Extension Schema Document* |
101.CAL | XBRL Taxonomy Extension Calculation Document* |
101.DEF | XBRL Taxonomy Extension Definitions Document* |
101.LAB | XBRL Taxonomy Extension Labels Document* |
101.PRE | XBRL Taxonomy Extension Presentation Document* |
* | Pursuant to Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
Note: | |
(1) | Filed herewith. |
1. | I have reviewed this quarterly report on Form 10-Q of Acadia Realty 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 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 change 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 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. |
/s/ Kenneth F. Bernstein | |
Kenneth F. Bernstein President and Chief Executive Officer | |
April 29, 2016 |
1. | I have reviewed this quarterly report on Form 10-Q of Acadia Realty 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 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 change 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 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. |
/s/ Jonathan W. Grisham | |
Jonathan W. Grisham Senior Vice President and Chief Financial Officer | |
April 29, 2016 |
(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. |
/s/ Kenneth F. Bernstein | |
Kenneth F. Bernstein President and Chief Executive Officer | |
April 29, 2016 |
(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. |
/s/ Jonathan W. Grisham | |
Jonathan W. Grisham Senior Vice President and Chief Financial Officer | |
April 29, 2016 |
Document And Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2016 |
Apr. 29, 2016 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | ACADIA REALTY TRUST | |
Entity Central Index Key | 0000899629 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 71,606,804 |
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Debt Instrument [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 71,566,457 | 70,258,415 |
Common stock, shares outstanding (in shares) | 71,566,457 | 70,258,415 |
Mortgages and other notes payable | ||
Debt Instrument [Line Items] | ||
Unamortized loan costs | $ 9,884 | $ 10,567 |
Unamortized premiums | 1,726 | 1,364 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Unamortized loan costs | $ 1,271 | $ 1,155 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 73,875 | $ 38,537 |
Other comprehensive loss | ||
Unrealized loss on valuation of swap agreements | (8,819) | (4,319) |
Reclassification of realized interest on swap agreements | 1,046 | 1,053 |
Other comprehensive loss | (7,773) | (3,266) |
Comprehensive income | 66,102 | 35,271 |
Comprehensive income attributable to noncontrolling interests | (44,181) | (21,567) |
Comprehensive income attributable to Common Shareholders | $ 21,921 | $ 13,704 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) |
3 Months Ended |
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Mar. 31, 2016
$ / shares
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Statement of Stockholders' Equity [Abstract] | |
Common stock, dividends, per share, declared (in dollars per share) | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Statement of Cash Flows [Abstract] | ||
Stock issuance costs | $ 1,654 | $ 440 |
Cash paid for capitalized interest | $ 5,115 | $ 3,673 |
ORGANIZATION AND BASIS OF PRESENTATION |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION Business and Organization Acadia Realty Trust (the "Trust") and subsidiaries (collectively, the "Company") is a fully-integrated equity real estate investment trust ("REIT") focused on the ownership, acquisition, redevelopment and management of high-quality retail properties located primarily in high-barrier-to-entry, supply-constrained, densely-populated metropolitan areas in the United States. All of the Company's assets are held by, and all of its operations are conducted through, Acadia Realty Limited Partnership (the "Operating Partnership") and entities in which the Operating Partnership owns an interest. As of March 31, 2016, the Trust controlled approximately 94% of the Operating Partnership as the sole general partner. As the general partner, the Trust is entitled to share, in proportion to its percentage interest, in the cash distributions and profits and losses of the Operating Partnership. The limited partners primarily represent entities or individuals that contributed their interests in certain properties or entities to the Operating Partnership in exchange for common or preferred units of limited partnership interest ("Common OP Units" or "Preferred OP Units") and employees who have been awarded restricted OP units ("LTIP Units") as long-term incentive compensation (Note 13). Limited partners holding Common OP Units are generally entitled to exchange their units on a one-for-one basis for common shares of beneficial interest of the Trust ("Common Shares"). As of March 31, 2016, the Company has ownership interests in 92 properties within its core portfolio, which consist of those properties either wholly owned, or partially owned through joint venture interests, by the Operating Partnership, or subsidiaries thereof, not including those properties owned through its opportunity funds (the "Core Portfolio"). The Company also has ownership interests in 59 properties within its opportunity funds, Acadia Strategic Opportunity Fund II, LLC ("Fund II"), Acadia Strategic Opportunity Fund III LLC ("Fund III") and Acadia Strategic Opportunity Fund IV LLC ("Fund IV" and together with Funds II and III, the "Funds"). The 151 Core Portfolio and Fund properties consist of commercial properties, which are primarily high-quality urban and/or street retail properties, community shopping centers and mixed-use properties with a retail component. The Company and Fund II also include investments in operating companies through Acadia Mervyn Investors I, LLC ("Mervyns I"), Acadia Mervyn Investors II, LLC ("Mervyns II") and, in certain instances, directly through Fund II, all on a non-recourse basis. These investments comprise and are referred to as the Company's Retailer Controlled Property Initiative ("RCP Venture"). The Operating Partnership is the sole general partner or managing member of the Funds, Mervyns I and Mervyns II and earns fees or priority distributions for asset management, property management, construction, redevelopment, leasing and legal services. Cash from the Funds and RCP Venture is distributed pro-rata to the respective partners and members (including the Operating Partnership) until each receives a certain cumulative return ("Preferred Return"), and the return of all capital contributions. Thereafter, remaining cash flow is distributed 20% to the Operating Partnership ("Promote") and 80% to the partners or members (including the Operating Partnership). Following is a table summarizing the general terms and the Operating Partnership's equity interests in the Funds and Mervyns I and II:
1. ORGANIZATION AND BASIS OF PRESENTATION (continued) Notes: (1) Mervyns I was originally formed in conjunction with Acadia Strategic Opportunity Fund, LP ("Fund I"). Fund I was liquidated and dissolved as of December 31, 2015. The above table reflects the combined activity of Fund I and Mervyns I. Fund I and Mervyns I have returned all capital and preferred return. The Operating Partnership is entitled to a Promote on all future cash distributions from Mervyns I. (2) During 2013, a distribution of $47.1 million was made to the Fund II investors, including the Operating Partnership. This amount is subject to recontribution to Fund II until December 2016, if needed to fund the on-going development and construction of existing projects. (3) Fund III has returned all capital and preferred return. The Operating Partnership is now entitled to a Promote on all future cash distributions. (4) Represents the total for the Funds, including the Operating Partnership and noncontrolling interests' shares. Basis of Presentation The consolidated financial statements include the consolidated accounts of the Company and its investments in entities in which the Company is presumed to have control in accordance with the consolidation guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). Investments in entities for which the Company has the ability to exercise significant influence but does not have financial or operating control are accounted for under the equity method of accounting. Accordingly, the Company's share of the net earnings (or losses) of entities accounted for under the equity method are included in consolidated net income under the caption, Equity in Earnings of Unconsolidated Affiliates. Investments in entities for which the Company does not have the ability to exercise any influence are accounted for under the cost method. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2016. The information furnished in the accompanying consolidated financial statements reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the aforementioned consolidated financial statements for the interim periods. Such adjustments consisted of normal recurring items. These consolidated financial statements should be read in conjunction with the Company's 2015 Annual Report on Form 10-K, as filed with the SEC on February 19, 2016. Real Estate The Company reviews its long-lived assets for impairment when there is an event or change in circumstances that indicates that the carrying amount may not be recoverable. The Company measures and records impairment losses and reduces the carrying value of properties when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying cost to fair value, and for properties held-for-sale, the Company reduces its carrying value to the fair value less costs to dispose. During the quarter ended June 30, 2015, as a result of the loss of a key anchor tenant, one of the properties in the Company's Brandywine Portfolio, in which an unaffiliated third party has a 77.78% noncontrolling interest, did not generate sufficient cash flow to meet the full debt service requirements leading to a default on the mortgage loan. Management performed an analysis and determined that the carrying amount of this property was not recoverable. Accordingly, the Company recorded an impairment charge of $5.0 million during the quarter ended June 30, 2015. The Operating Partnership's share of this charge, net of the noncontrolling interest, was $1.1 million. The property is collateral for $26.3 million of non-recourse mortgage debt which matures July 1, 2016. Management does not believe that the carrying values of any of its other properties are impaired as of March 31, 2016. 1. ORGANIZATION AND BASIS OF PRESENTATION (continued) Recent Accounting Pronouncements During February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, "Leases." ASU 2016-02 requires that a lessee should recognize the assets and liabilities that arise from leases. ASU 2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted and shall be applied retrospectively. The Company is in the process of evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. On January 1, 2016, the Company adopted ASU No. 2015-02, "Consolidation - Amendments to the Consolidation Analysis," which modified the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIE's"), particularly those with fee arrangements and related party relationships. There were no entities qualifying under the scope of the revised guidance that were consolidated as a result of the adoption. Accordingly, the adoption of ASU 2015-02 had no impact on the Company's consolidated financial statements. |
EARNINGS PER COMMON SHARE |
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Earnings Per Common Share | EARNINGS PER COMMON SHARE Basic earnings per Common Share is computed by dividing net income attributable to Common Shareholders by the weighted average Common Shares outstanding. At March 31, 2016, the Company has unvested LTIP Units (Note 13) which provide for non-forfeitable rights to dividend equivalent payments. Accordingly, these unvested LTIP Units are considered participating securities and are included in the computation of basic earnings per Common Share pursuant to the two-class method. Diluted earnings per Common Share reflects the potential dilution of the conversion of obligations and the assumed exercises of securities including the effects of restricted share unit ("Restricted Share Units") and share option awards issued under the Company's Share Incentive Plans (Note 13). The effect of the assumed conversion of 188 Series A Preferred OP Units and 141,593 Series C Preferred OP Units into an aggregate 428,121 and 25,067 Common Shares, for the three months ended March 31, 2016 and March 31, 2015, respectively, would be dilutive and therefore are included in the computation of diluted earnings per share. The effect of the conversion of Common OP Units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the periods indicated:
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SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS |
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Noncontrolling Interest [Abstract] | |
Shareholders' Equity And Noncontrolling Interests | SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS During the three months ended March 31, 2016, the Company issued 1.1 million Common Shares under its $200.0 million at-the-market ("ATM") equity program, generating gross proceeds of $35.7 million and net proceeds of $35.2 million. As of March 31, 2016, there is $91.6 million remaining under this program. The net proceeds from the Company's ATM equity programs have been, and are anticipated to be, used by the Company primarily to fund Core Portfolio acquisitions, its capital contributions to the Funds and for general corporate purposes. During the three months ended March 31, 2016, the Company issued 442,478 Common OP Units and 141,593 Series C Preferred OP Units to acquire real estate. The Series C Preferred OP Units have a value of $100.00 per unit and are entitled to a preferred quarterly distribution of $0.9375 per unit. Noncontrolling interests represent the portion of equity in entities consolidated in the accompanying consolidated financial statements that the Company does not own. Such noncontrolling interests are reported on the Consolidated Balance Sheets within equity, separately from shareholders' equity, and include third party interests in the Company’s Funds and other entities. It also includes interests in the Operating Partnership which represent (i) the limited partners’ 3,357,760 and 2,931,198 Common OP Units at March 31, 2016 and December 31, 2015, respectively; (ii) 188 Series A Preferred OP Units at March 31, 2016 and December 31, 2015, respectively; (iii) 141,593 Series C Preferred OP Units at March 31, 2016 and (iv) 1,069,813 and 929,169 LTIP Units at March 31, 2016 and December 31, 2015, respectively. |
ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE |
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ACQUISITION AND DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS ABSTRACT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE | ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE Acquisitions During 2016, the Company acquired the following properties through its Core Portfolio and Fund IV:
4. ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE(continued) Acquisitions (continued) Notes: (1) The Company acquired a 49% membership interest in this property for $39.8 million. The Company's pro-rata share of debt assumed was $10.5 million. In connection with this acquisition, the Company issued 442,478 Common OP Units and 141,593 Preferred OP Units. (2) The purchase price represents the total discounted payments pursuant to a 49-year master lease entered into by the Company, which is accounted for as a capital lease. During the three months ended March 31, 2016, lease payments totaling $7.2 million were made under this lease. For the three months ended March 31, 2016, the Company expensed $0.2 million of acquisition costs in each of the Core Portfolio and Fund IV. Purchase Price Allocations With the exception of 1964 Union Street, which was an asset acquisition, and 991 Madison Avenue, a master lease position, the above acquisitions have been accounted for as business combinations. The purchase prices were allocated to the acquired assets and assumed liabilities based on their estimated fair values at the dates of acquisition. The preliminary measurements of fair value reflected below are subject to change. The Company expects to finalize the valuations and complete the purchase price allocations within one year from the dates of acquisition. The following table summarizes the Company's preliminary estimated allocations of the purchase prices of assets acquired and liabilities assumed during 2016 which have yet to be finalized:
4. ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE(continued) Acquisitions (continued) During 2015, the Company acquired properties and recorded the preliminary allocations of the purchase prices to the assets acquired and liabilities assumed based on provisional measurements of fair value. During 2016, the Company finalized the allocations of the purchase prices and made certain measurement period adjustments. The following table summarizes the preliminary allocations of the purchase prices of these properties as recorded as of December 31, 2015, and the finalized allocations as adjusted as of March 31, 2016:
Dispositions During 2016, Fund III sold a 65% interest in Cortlandt Town Center for $107,250, resulting in a gain on sale of $65,393. Properties Held For Sale At March 31, 2016, the Company had one property classified as held-for-sale. At December 31, 2015, the Company had no properties classified as held-for-sale. |
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advances to Unconsolidated Affiliates | INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES Core Portfolio The Company owns a 49% interest in a 311,000 square foot shopping center located in White Plains, New York ("Crossroads"), a 50% interest in an approximately 28,000 square foot retail portfolio located in Georgetown, Washington D.C. (the "Georgetown Portfolio") and an 88.43% tenancy-in-common interest in an 87,000 square foot retail property located in Chicago, Illinois ("840 N. Michigan"). The Company accounts for these investments under the equity method as it has the ability to exercise significant influence, but does not have any rights with respect to financial or operating control. During January 2016, the Company completed the acquisition of a 49% interest in an approximately 123,000 square foot retail property located in Manhattan, New York ("Gotham Plaza"), for a purchase price of $39.8 million. Consideration for this purchase consisted of the assumption of 49% of the existing debt of $21.4 million and the issuance of both Common and Preferred OP Units. The Company accounts for this investment under the equity method as it has the ability to exercise significant influence, but does not have any rights with respect to financial or operating control. 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) Funds RCP Venture The Funds, together with two unaffiliated partners formed an investment group, the RCP Venture, for the purpose of making investments in surplus or underutilized properties owned by retailers and, in some instances, the retailers' operating company. The RCP Venture is neither a single entity nor a specific investment and the Company has no control or rights with respect to the formation and operation of these investments. The Company has made these investments through its subsidiaries, Mervyns I, Mervyns II and Fund II, (together the "Acadia Investors"), all on a non-recourse basis. Through March 31, 2016, the Acadia Investors have made investments in Mervyns Department Stores ("Mervyns") and Albertsons including additional investments in locations that are separate from these original investments ("Add-On Investments"). Additionally, they have invested in Shopko, Marsh and Rex Stores Corporation (collectively "Other RCP Investments"). The Company accounts for its investments in Mervyns and Albertsons on the equity method as it has the ability to exercise significant influence, but does not have any rights with respect to financial or operating control. The Company accounts for its investments in its Add-On Investments and Other RCP Investments on the cost method as it does not have any influence over such entities' operating and financial policies nor any rights with respect to the control and operation of these entities. During the three months ended March 31, 2016, the Company received distributions from its RCP Venture of $0.1 million, of which the Operating Partnership's aggregate share was $0.02 million. The following table summarizes activity related to the RCP Venture investments from inception through March 31, 2016:
Other Fund Investments The unaffiliated partners in Fund III's investments in Arundel Plaza as well as Fund IV's investments in 1701 Belmont Avenue, 2819 Kennedy Boulevard, Promenade at Manassas, Eden Square and the Broughton Street Portfolio, maintain control over these entities. The Company accounts for these investments under the equity method as it has the ability to exercise significant influence, but does not have any rights with respect to financial or operating control. Self-Storage Management, a Fund III investment, was determined to be a variable interest entity. Management has evaluated the applicability of ASC Topic 810 to this joint venture and determined that the Company is not the primary beneficiary and, therefore, consolidation of this venture is not required. The Company accounts for this investment using the equity method of accounting. During January 2016, Fund III completed the disposition of a 65% interest in Cortlandt Town Center for a sales price of $107.3 million. The Company now accounts for this investment under the equity method as it has the ability to exercise significant influence, but does not have any rights with respect to financial or operating control. 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) Summary of Investments in Unconsolidated Affiliates The following Aggregate and Condensed Balance Sheets and Statements of Income summarize the financial information of the Company’s investments in unconsolidated affiliates:
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STRUCTURED FINANCING PORTFOLIO |
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Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STRUCTURED FINANCING PORTFOLIO | STRUCTURED FINANCING PORTFOLIO As of March 31, 2016, the Company’s structured financing portfolio, consisted of notes receivable and preferred equity investments, aggregating $154.7 million. These investments were collateralized either by underlying properties, the borrowers' ownership interests in the entities that own properties and/or by the borrowers' personal guarantee subordinate, as applicable, to senior liens, as follows:
Notes: (1) Includes origination and exit fees (2) During January 2016, Fund IV made a $13.3 million loan, which is collateralized by a property, bears interest at 7.0% and matures on July 13, 2016. (3) During February 2016, the Company received full principal repayment of this $7.5 million note. (4) During February 2016, the Company received a payment of $13.4 million, which included $13.0 million of full principal repayment and $0.4 million of prepayment penalty representing interest through June 2016 on this preferred equity investment that was originally scheduled to mature on September 1, 2017. (5) The principal balance for this loan, which requires no current payments of interest, is increased by the interest accrued. (6) During January 2016, Fund IV made a preferred equity investment in a joint venture for $14.0 million. The investment has a mandatory redemption date of January 13, 2021 and earns a preferred return rate of 15.3%. (7) Loan was non-performing as of March 31, 2016. Based on the value of the underlying collateral, no reserve has been established against this loan. (8) During 2016, the Company advanced an additional $0.4 million on a loan collateralized by a property. (9) Consists of four loans as of March 31, 2016.
The Company monitors the credit quality of its notes receivable on an ongoing basis and considers indicators of credit quality such as loan payment activity, the estimated fair value of the underlying collateral, the seniority of the Company's loan in relation to other debt secured by the collateral and the prospects of the borrower. As of March 31, 2016, the Company held one non-performing note. |
DERIVATIVE FINANCIAL INSTRUMENTS |
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Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS As of March 31, 2016, the Company's derivative financial instruments consisted of 16 interest rate swaps with an aggregate notional value of $305.7 million, which effectively fix the London Inter-Bank Offer Rate ("LIBOR") at rates ranging from 1.3% to 3.8% and mature between July 2018 and March 2025. The Company also has one derivative financial instrument with a notional value of $29.5 million which caps LIBOR at 4.0% and matures April 2018. The fair value of these derivative instruments that represent liabilities are included in other liabilities in the Consolidated Balance Sheets and totaled $12.4 million and $5.9 million at March 31, 2016 and December 31, 2015, respectively. The fair value of these derivative instruments representing assets are included in prepaid expenses and other assets in the Consolidated Balance Sheets and totaled $0.8 million at December 31, 2015. The notional value does not represent exposure to credit, interest rate, or market risks. These derivative instruments have been designated as cash flow hedges and hedge the future cash outflows of variable-rate interest payments on mortgage and other debt. Such instruments are reported at their fair values as stated above. As of March 31, 2016 and December 31, 2015, unrealized losses totaling $11.5 million and $4.5 million, respectively, were reflected in accumulated other comprehensive loss on the Consolidated Balance Sheets. As of March 31, 2016 and December 31, 2015, no derivatives were designated as fair value hedges, hedges of net investments in foreign operations or considered to be ineffective. Additionally, the Company does not use derivatives for trading or speculative purposes. |
MORTGAGE AND OTHER NOTES PAYABLE |
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Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGE AND OTHER NOTES PAYABLE | MORTGAGE AND OTHER NOTES PAYABLE The Company completed the following transactions related to mortgage notes payable during the three months ended March 31, 2016:
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UNSECURED NOTES PAYABLE |
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Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Unsecured Notes Payable | UNSECURED NOTES PAYABLE The Company completed the following transactions related to its unsecured credit facilities during the three months ended March 31, 2016: The Company repaid the remaining $20.8 million of its revolving unsecured credit facility. The Company borrowed $7.5 million on its Fund II credit facility. The outstanding balance under this facility is $20.0 million as of March 31, 2016. The Company repaid $9.2 million on its Fund IV subscription line. The outstanding balance under this facility is $82.7 million as of March 31, 2016. The Company borrowed $5.6 million on its Fund IV term loan. The outstanding balance under this facility is $40.1 million as of March 31, 2016. During January 2016, the Company closed on a $50.0 million unsecured term loan. The facility bears interest at LIBOR+1.30% and matures January 4, 2021. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The FASB's fair value measurements and disclosure guidance requires the valuation of certain of the Company's financial assets and liabilities, based on a three-level fair value hierarchy. Market value assumptions obtained from sources independent of the Company are observable inputs that are classified within Levels 1 and 2 of the hierarchy, and the Company's own assumptions about market value assumptions are unobservable inputs classified within Level 3 of the hierarchy. The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2016:
In addition to items that are measured at fair value on a recurring basis, the Company also has assets and liabilities on its consolidated balance sheets that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the table above. Assets and liabilities that are measured at fair value on a nonrecurring basis include assets acquired and liabilities assumed in business combinations as well as any assets that have been impaired (Note 4). Financial Instruments Certain of the Company’s assets and liabilities meet the definition of financial instruments. Except as disclosed below, the carrying amounts of these financial instruments approximate their fair values. The Company has determined the estimated fair values of the following financial instruments within Level 2 of the hierarchy by discounting future cash flows utilizing a discount rate equivalent to the rate at which similar financial instruments would be originated at the reporting date:
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RELATED PARTY TRANSACTIONS |
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Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company earned property management fees, construction, legal and leasing fees from its investments in unconsolidated affiliates totaling $0.1 million for each of the three months ended March 31, 2016 and 2015, respectively. |
SEGMENT REPORTING |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | SEGMENT REPORTING The Company has three reportable segments: Core Portfolio, Funds and Structured Financing Portfolio. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates property performance primarily based on net operating income before depreciation, amortization and certain nonrecurring items. Investments in the Core Portfolio are typically held long-term. Given the contemplated finite life of the Funds, these investments are typically held for shorter terms. Fees earned by the Company as the general partner/managing member of the Funds are eliminated in the Company's consolidated financial statements. The Structured Financing Portfolio represents the Company's investments in notes receivable and preferred equity. The following tables set forth certain segment information for the Company, as of and for the three months ended March 31, 2016 and 2015, and does not include unconsolidated affiliates: Three Months Ended March 31, 2016
12. SEGMENT REPORTING (continued) Three Months Ended March 31, 2015
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LONG-TERM INCENTIVE COMPENSATION |
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Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Compensation | LONG-TERM INCENTIVE COMPENSATION During the three months ended March 31, 2016, the Company issued 289,925 LTIP Units and 11,094 Restricted Share Units to employees of the Company pursuant to its Amended and Restated 2006 Share Incentive Plan (the "Share Incentive Plan"). These awards were measured at their fair value on the grant date, which was established as the market price of the Company's Common Shares as of the close of trading on the day preceding the grant date. The total value of the above Restricted Share Units and LTIP Units as of the grant date was $10.4 million, of which $1.9 million was recognized as compensation expense in 2015, and $8.5 million will be recognized as compensation expense over the vesting period. Compensation expense of $0.5 million has been recognized in the accompanying consolidated statements of income related to these awards for the three months ended March 31, 2016. Total long-term incentive compensation expense, including the expense related to the above-mentioned plans, was $1.9 million and $1.8 million for the three months ended March 31, 2016 and 2015, respectively. In addition, members of the Board of Trustees have been issued units under the Share Incentive Plan. Total trustee fee expense related to these issuances was $0.2 million for each of the three months ended March 31, 2016 and 2015, respectively. In 2009, the Company adopted the Long Term Investment Alignment Program (the "Program") pursuant to which the Company may grant awards to employees, entitling them to receive up to 25% of any potential future payments of Promote to the Operating Partnership from Funds III and IV. The Company has awarded units to employees representing 25.0% of the potential Promote payments from Fund III to the Operating Partnership and 9.3% of the potential Promote payments from Fund IV to the Operating Partnership. Payments to senior executives under the Program require further Board approval at the time any potential payments are due pursuant to these grants. Compensation relating to these awards will be recognized in each reporting period in which Board approval is granted. 13. LONG-TERM INCENTIVE COMPENSATION (continued) As payments to other employees are not subject to further Board approval, compensation relating to these awards will be recorded based on the change in the estimated fair value at each reporting period in accordance with ASC Topic 718, "Compensation - Stock Compensation." During the three months ended March 31, 2016, compensation expense of $1.5 million was recognized related to the Program in connection with Fund III. The awards in connection with Fund IV were determined to have no value as of March 31, 2016. |
SUBSEQUENT EVENTS |
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Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS During April 2016, the Company entered into a forward sale and an underwritten public offering of 3.6 million Common Shares, which, if settled in Common Shares, will result in gross proceeds of approximately $125.0 million, before any underwriting discount and offering expenses. The forward sale will settle on one or more dates occurring no later than approximately 12 months after the date of the offering. During April 2016, Fund III completed the disposition of Heritage Shops in Chicago, Illinois for a sales price of $46.5 million. During April 2016, the Company borrowed $130.0 million under its unsecured credit facility, and repaid $140.0 million of secured debt that was scheduled to mature July 1, 2016. Additionally, the Company received repayment on a note receivable with accrued interest to an affiliated third party of $42.7 million that was scheduled to mature November 9, 2020 and issued a new note for $153.4 million, which is secured by the affiliates interest in the related property, bears interest at 8.1% and matures April 30, 2019. |
ORGANIZATION AND BASIS OF PRESENTATION (Policies) |
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Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the consolidated accounts of the Company and its investments in entities in which the Company is presumed to have control in accordance with the consolidation guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). Investments in entities for which the Company has the ability to exercise significant influence but does not have financial or operating control are accounted for under the equity method of accounting. Accordingly, the Company's share of the net earnings (or losses) of entities accounted for under the equity method are included in consolidated net income under the caption, Equity in Earnings of Unconsolidated Affiliates. Investments in entities for which the Company does not have the ability to exercise any influence are accounted for under the cost method. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2016. The information furnished in the accompanying consolidated financial statements reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the aforementioned consolidated financial statements for the interim periods. Such adjustments consisted of normal recurring items. These consolidated financial statements should be read in conjunction with the Company's 2015 Annual Report on Form 10-K, as filed with the SEC on February 19, 2016. |
Real Estate | Real Estate The Company reviews its long-lived assets for impairment when there is an event or change in circumstances that indicates that the carrying amount may not be recoverable. The Company measures and records impairment losses and reduces the carrying value of properties when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying cost to fair value, and for properties held-for-sale, the Company reduces its carrying value to the fair value less costs to dispose. During the quarter ended June 30, 2015, as a result of the loss of a key anchor tenant, one of the properties in the Company's Brandywine Portfolio, in which an unaffiliated third party has a 77.78% noncontrolling interest, did not generate sufficient cash flow to meet the full debt service requirements leading to a default on the mortgage loan. Management performed an analysis and determined that the carrying amount of this property was not recoverable. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements During February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, "Leases." ASU 2016-02 requires that a lessee should recognize the assets and liabilities that arise from leases. ASU 2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted and shall be applied retrospectively. The Company is in the process of evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. On January 1, 2016, the Company adopted ASU No. 2015-02, "Consolidation - Amendments to the Consolidation Analysis," which modified the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIE's"), particularly those with fee arrangements and related party relationships. There were no entities qualifying under the scope of the revised guidance that were consolidated as a result of the adoption. Accordingly, the adoption of ASU 2015-02 had no impact on the Company's consolidated financial statements. |
ORGANIZATION AND BASIS OF PRESENTATION (Tables) |
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Schedule of Noncontrolling Interest In Individual Investee | Following is a table summarizing the general terms and the Operating Partnership's equity interests in the Funds and Mervyns I and II:
1. ORGANIZATION AND BASIS OF PRESENTATION (continued) Notes: (1) Mervyns I was originally formed in conjunction with Acadia Strategic Opportunity Fund, LP ("Fund I"). Fund I was liquidated and dissolved as of December 31, 2015. The above table reflects the combined activity of Fund I and Mervyns I. Fund I and Mervyns I have returned all capital and preferred return. The Operating Partnership is entitled to a Promote on all future cash distributions from Mervyns I. (2) During 2013, a distribution of $47.1 million was made to the Fund II investors, including the Operating Partnership. This amount is subject to recontribution to Fund II until December 2016, if needed to fund the on-going development and construction of existing projects. (3) Fund III has returned all capital and preferred return. The Operating Partnership is now entitled to a Promote on all future cash distributions. (4) Represents the total for the Funds, including the Operating Partnership and noncontrolling interests' shares. |
EARNINGS PER COMMON SHARE (Tables) |
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Computation of Basic and Diluted Earnings Per Share from Continuing Operations | The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the periods indicated:
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ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE (Tables) |
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ACQUISITION AND DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS ABSTRACT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | During 2016, the Company acquired the following properties through its Core Portfolio and Fund IV:
4. ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE(continued) Acquisitions (continued) Notes: (1) The Company acquired a 49% membership interest in this property for $39.8 million. The Company's pro-rata share of debt assumed was $10.5 million. In connection with this acquisition, the Company issued 442,478 Common OP Units and 141,593 Preferred OP Units. (2) The purchase price represents the total discounted payments pursuant to a 49-year master lease entered into by the Company, which is accounted for as a capital lease. During the three months ended March 31, 2016, lease payments totaling $7.2 million were made under this lease. The following table summarizes the Company's preliminary estimated allocations of the purchase prices of assets acquired and liabilities assumed during 2016 which have yet to be finalized:
The following table summarizes the preliminary allocations of the purchase prices of these properties as recorded as of December 31, 2015, and the finalized allocations as adjusted as of March 31, 2016:
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INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary activity related to the RCP Venture Investments from Inception | The following table summarizes activity related to the RCP Venture investments from inception through March 31, 2016:
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Summary of Balance Sheet of the Company’s investments in unconsolidated affiliates | The following Aggregate and Condensed Balance Sheets and Statements of Income summarize the financial information of the Company’s investments in unconsolidated affiliates:
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Summary of Statement of Income of the Company’s investments in unconsolidated affiliates |
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STRUCTURED FINANCING PORTFOLIO (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Receivable and Preferred Equity Investments | As of March 31, 2016, the Company’s structured financing portfolio, consisted of notes receivable and preferred equity investments, aggregating $154.7 million. These investments were collateralized either by underlying properties, the borrowers' ownership interests in the entities that own properties and/or by the borrowers' personal guarantee subordinate, as applicable, to senior liens, as follows:
Notes: (1) Includes origination and exit fees (2) During January 2016, Fund IV made a $13.3 million loan, which is collateralized by a property, bears interest at 7.0% and matures on July 13, 2016. (3) During February 2016, the Company received full principal repayment of this $7.5 million note. (4) During February 2016, the Company received a payment of $13.4 million, which included $13.0 million of full principal repayment and $0.4 million of prepayment penalty representing interest through June 2016 on this preferred equity investment that was originally scheduled to mature on September 1, 2017. (5) The principal balance for this loan, which requires no current payments of interest, is increased by the interest accrued. (6) During January 2016, Fund IV made a preferred equity investment in a joint venture for $14.0 million. The investment has a mandatory redemption date of January 13, 2021 and earns a preferred return rate of 15.3%. (7) Loan was non-performing as of March 31, 2016. Based on the value of the underlying collateral, no reserve has been established against this loan. (8) During 2016, the Company advanced an additional $0.4 million on a loan collateralized by a property. (9) Consists of four loans as of March 31, 2016. |
MORTGAGE AND OTHER NOTES PAYABLE (Tables) |
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Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mortgage Notes Payable | The Company completed the following transactions related to mortgage notes payable during the three months ended March 31, 2016:
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2016:
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Fair value of financial instruments, Assets and Liabilities | The Company has determined the estimated fair values of the following financial instruments within Level 2 of the hierarchy by discounting future cash flows utilizing a discount rate equivalent to the rate at which similar financial instruments would be originated at the reporting date:
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SEGMENT REPORTING (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Certain Segment Information from Segments to Consolidated | The following tables set forth certain segment information for the Company, as of and for the three months ended March 31, 2016 and 2015, and does not include unconsolidated affiliates: Three Months Ended March 31, 2016
12. SEGMENT REPORTING (continued) Three Months Ended March 31, 2015
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EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
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Numerator | ||
Net income attributable to Common Shareholders | $ 28,925 | $ 16,547 |
Less: net income attributable to participating securities | (365) | (240) |
Net income attributable to Common Shareholders, net of income attributable to participating securities | $ 28,560 | $ 16,307 |
Denominator | ||
Weighted average shares for basic earnings per share (in shares) | 70,756 | 68,295 |
Effect of dilutive securities: | ||
Employee Restricted Share Units and share options (in shares) | 16 | 40 |
Convertible Preferred OP Units (in shares) | 428 | 25 |
Denominator for diluted earnings per share (in shares) | 71,200 | 68,360 |
Basic and diluted earnings per share (in dollars per share) | $ 0.40 | $ 0.24 |
ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE - Dispositions & Properties Held For Sale (Details) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016
USD ($)
property
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Dec. 31, 2015
property
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of properties held for sale | property | 1 | 0 |
Fund III | Cortlandt Town Center | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal group, percentage | 65.00% | |
Sale Price | $ 107,250 | |
Gain on Sale | $ 65,393 |
MORTGAGE AND OTHER NOTES PAYABLE - MORTGAGE BY PROPERTY (Details) - Mortgages $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 1,463 |
Repayments of long-term debt | 98,025 |
LIBOR plus 1.85% Mortgage Note | Cortlandt Town Center | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | 0 |
Repayments of long-term debt | $ 83,070 |
Description of variable rate basis | LIBOR |
LIBOR plus 1.85% Mortgage Note | Cortlandt Town Center | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 1.85% |
3.8% Mortgage Note | 1964 Union Street | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 1,463 |
Stated interest rate percentage | 3.80% |
Repayments of long-term debt | $ 0 |
5.62% Mortgage Note | Chicago Street Retail Portfolio | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 0 |
Stated interest rate percentage | 5.62% |
Repayments of long-term debt | $ 14,955 |
FAIR VALUE MEASUREMENTS Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring $ in Thousands |
Mar. 31, 2016
USD ($)
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---|---|
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative financial instruments, liabilities | $ 0 |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative financial instruments, liabilities | 12,450 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative financial instruments, liabilities | $ 0 |
FAIR VALUE MEASUREMENTS Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable and preferred equity investments, net | $ 154,679 | $ 147,188 |
Mortgage and other notes payable | 1,296,558 | 1,358,606 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable and preferred equity investments, net | 154,679 | 147,188 |
Mortgage and other notes payable | $ 1,323,937 | $ 1,382,318 |
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
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Unconsolidated Affiliates | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 0.1 | $ 0.1 |
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