Content analysis
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H.S. senior Bad
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New words:
Del, Marketplace, Oceanside, Rio, slightly
Financial report summary
?Risks
- There are risks relating to investments in real estate.
- The Company operates in a highly competitive market and competition may limit its ability to acquire desirable assets and to attract and retain tenants.
- The Company may change any of its strategies, policies or procedures without stockholder consent, which could materially and adversely affect its business.
- The Company’s directors are subject to potential conflicts of interest.
- Capital markets and economic conditions can materially affect the Company’s financial condition, its results of operations and the value of its assets.
- Bankruptcy or insolvency of tenants may decrease the Company’s revenues and available cash.
- Inflation or deflation may materially and adversely affect the Company’s income, cash flow, results of operations, financial condition, liquidity, the ability to service its debt obligations, the market price of its common stock and its ability to pay dividends and distributions to its stockholders.
- Compliance or failure to comply with safety regulations and requirements could result in substantial costs.
- The Company expects to acquire additional properties and this may create risks.
- In the event the Company seeks to redevelop existing properties, these projects could be subject to delays or other risks and might not yield the returns anticipated, which would harm the Company’s financial condition and operating results.
- The Company faces risks associated with the development and redevelopment of mixed-use commercial properties.
- Factors affecting the general retail environment could adversely affect the financial condition of the Company’s retail tenants and the willingness of retailers to lease space in its shopping centers, and in turn, materially and adversely affect the Company.
- The Company’s growth depends on external sources of capital, which may not be available in the future.
- The Company does not have a formal policy limiting the amount of debt it may incur and its board of directors may change its leverage policy without stockholder consent, which could result in a different risk profile.
- The Company could be adversely affected if it or any of its subsidiaries are required to register as an investment company under the Investment Company Act of 1940 as amended (the “1940 Act”).
- Real estate investments’ value and income fluctuate due to conditions in the general economy and the real estate business, which may materially and adversely affect the Company’s ability to service its debt and expenses.
- The lack of liquidity of the Company’s assets could materially and adversely affect the Company’s income, cash flow, results of operations, financial condition, liquidity, the ability to service its debt obligations, the market price of its common stock and its ability to pay dividends and other distributions to its stockholders, and could materially and adversely affect the Company’s ability to value and sell its assets.
- The Company depends on leasing space to tenants on economically favorable terms and collecting rent from tenants, some of whom may not be able to pay.
- Some of the Company’s properties depend on anchor stores or major tenants to attract shoppers and could be materially and adversely affected by the loss of or a store closure by one or more of these tenants.
- Loss of revenues from major tenants could reduce the Company’s income, cash flow, results of operations, financial condition, liquidity, the ability to service its debt obligations, the market price of its common stock and its ability to pay dividends and other distributions to its stockholders.
- The Company’s inability to receive reimbursements of Common Area Maintenance (“CAM”) costs from tenants could adversely affect the Company’s cash flow.
- The Company may incur costs to comply with environmental laws.
- The Company’s business and operations would suffer in the event of system failures.
- A prolonged economic slowdown, a lengthy or severe recession or declining real estate values could impair the Company’s assets and have a material and adverse effect on its income, cash flow, results of operations, financial condition, liquidity, the ability to service its debt obligations, the market price of its common stock and its ability to pay dividends and other distributions to its stockholders.
- Loss of key personnel could harm the Company’s operations.
- Under their employment agreements, certain members of the Company’s senior management team will have certain rights to terminate their employment and receive severance in connection with a change in control of the Company.
- Joint venture investments could be materially and adversely affected by the Company’s lack of sole decision-making authority or reliance on a joint venture partner’s financial condition.
- Uninsured losses or a loss in excess of insured limits could materially and adversely affect the Company.
- The Company could be materially and adversely affected by poor market conditions where its properties are geographically concentrated.
- Should the Company decide at some point in the future to expand into new markets, it may not be successful, which could materially and adversely affect its business, financial condition, liquidity and results of operations.
- The Company’s term loan, credit facility and unsecured senior notes contain restrictive covenants relating to its operations, which could limit the Company’s ability to respond to changing market conditions and its ability to pay dividends and other distributions to its stockholders.
- Certain of the Company’s mortgage financing arrangements and other indebtedness contain provisions that could limit the Company’s operating flexibility.
- Increases in interest rates could increase the amount of the Company’s debt payments and materially and adversely affect its business, financial condition, liquidity and results of operations.
- Financing arrangements that the Company may use to finance its assets may require it to provide additional collateral or pay down debt.
- The Company depends on dividends and distributions from its direct and indirect subsidiaries. The creditors of these subsidiaries are entitled to amounts payable to them by the subsidiaries before the subsidiaries may pay any dividends or distributions to the Company.
- Certain provisions of Maryland law may limit the ability of a third party to acquire control of the Company.
- The authorized but unissued shares of preferred stock and the ownership limitations contained in the Company’s charter may prevent a change in control.
- The Company’s failure to qualify as a REIT would subject it to U.S. federal income tax and potentially increased state and local taxes, which would reduce the amount of cash available for distribution to its stockholders.
- Failure to make required distributions would subject the Company to tax, which would reduce the cash available for distribution to its stockholders.
- To maintain its REIT qualification, the Company may be forced to borrow funds during unfavorable market conditions.
- The U.S. federal income tax treatment regarding cash settlement of a forward sale agreement is unclear and could jeopardize the Company’s ability to meet the REIT qualification requirements.
- Even if the Company qualifies as a REIT, it may be required to pay certain taxes.
- Legislative, regulatory or administrative changes could adversely affect the Company.
- In certain circumstances, the Company may be liable for certain tax obligations of certain limited partners.
- The Company cannot provide assurance of its ability to pay distributions in the future.
- The Company is subject to certain state laws and exchange requirements relating to the composition of its board of directors, including recently enacted diversity and gender quotas.
Management Discussion
- Property operating income is a non-GAAP financial measure of performance. The Company defines property operating income as operating revenues (rental revenue and other income), less property and related expenses (property operating expenses and property taxes). Property operating income excludes general and administrative expenses, depreciation and amortization, acquisition transaction costs, other expense, interest expense, gains and losses from property acquisitions and dispositions, equity in earnings from unconsolidated joint ventures, and extraordinary items. Other REITs may use different methodologies for calculating property operating income, and accordingly, the Company’s property operating income may not be comparable to other REITs.