The COVID-19 pandemic has caused severe disruptions in the United States and global economies, including disruptions in the financial and labor markets, which could materially and adversely affect our financial condition, results of operations, cash flows, liquidity and performance and that of our tenants.
There are risks relating to investments in real estate and the value of our property that are beyond our control, including global, national, regional and local economic and market conditions.
We may be unable to sell properties when appropriate because real estate investments are illiquid.
Our business strategy is mainly concentrated in one type of commercial property and in one geographic location, which could make us more vulnerable to regional economic downturns and natural disasters.
We are dependent on anchor tenants at many of our retail properties.
We face potential difficulties or delays in renewing leases or re-leasing space.
We may acquire properties or acquire other real estate related companies, and this may create risks.
Competition may adversely affect our ability to acquire new properties.
Competition may limit our ability to generate sufficient income from tenants and may decrease the occupancy and rental rates for our properties.
E-commerce and other changes in consumer behavior present challenges for many of our tenants and may require us to modify our properties, diversify our tenant composition and adapt our leasing practices to remain competitive.
Property ownership through joint ventures could limit our control of those investments, restrict our ability to operate and finance the property on our terms, and reduce their expected return.
If we were to employ higher levels of leverage, it would result in increased risk of default on our obligations and in an increase in debt service requirements, which could adversely affect our financial condition and results of operations and our ability to pay dividends and make distributions.
Market interest rates could adversely affect the share price of our stock and increase the cost of refinancing debt.
We may be adversely affected by changes in LIBOR reporting practices, the method by which LIBOR is determined or the use of alternative reference rates.
We are obligated to comply with financial and other covenants in our debt that could restrict our operating activities, and failure to comply could result in defaults that accelerate the payment under our debt.
We may be required to incur additional debt to qualify as a REIT.
Our ability to grow will be limited if we cannot obtain additional capital.
We cannot assure you we will continue to pay dividends at historical rates.
We cannot guarantee that any share repurchase program will be fully consummated or will enhance long-term stockholder value, and share repurchases could increase the volatility of our stock prices and could diminish our cash reserves.
Supply chain disruptions and unexpected construction expenses and delays could impact our ability to timely deliver spaces to tenants and/or our ability to achieve the expected value of a construction project or lease, thereby adversely affecting our profitability.
We are dependent on key personnel.
Our insurance coverage on our properties may be inadequate.
Properties with environmental problems may create liabilities for us.
We face risks relating to cybersecurity attacks that could cause loss of confidential information and other business disruptions.
We will be taxed as a regular corporation if we fail to maintain our REIT status.
We will pay federal taxes if we do not distribute 100% of our taxable income.
Gain on disposition of assets deemed held for sale in the ordinary course of business is subject to 100% tax.
Dividends payable by REITs may be taxed at higher rates.
Our ownership limitation may restrict business combination opportunities.
Certain provisions in our charter and bylaws and Maryland law may prevent or delay a change of control or limit our stockholders from receiving a premium for their shares.
Our stockholder rights plan could deter a change of control.
The concentration of our stock ownership or voting power limits our stockholders’ ability to influence corporate matters.
Note 1 – Properties held in both periods includes only properties owned for the entire periods of 2022 and 2021 and for interest expense the amount also includes parent company interest expense. All other properties are included in the property acquisition/sales column. There are no properties excluded from the analysis.
Base rents increased by 4.1% to $103.6 million for the fiscal year ended October 31, 2022 as compared with $99.5 million in the comparable period of 2021. The change in base rent and the changes in other income statement line items analyzed in the table above were attributable to:
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