Maryland | 27-1712193 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, par value $.01 per share | APTS | NYSE |
PART I - FINANCIAL INFORMATION | ||||||||||||
INDEX | ||||||||||||
Item 1. | Financial Statements | Page No. | ||||||||||
2019 | 2 | |||||||||||
2019 | 3 | |||||||||||
2019 | ||||||||||||
2019 | ||||||||||||
Item 2. | 50 | |||||||||||
Item 3. | 78 | |||||||||||
Item 4. | 79 | |||||||||||
Item 1. | Legal Proceedings | |||||||||||
Item 1A. | Risk Factors | |||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||||
Item 3. | Defaults Upon Senior Securities | |||||||||||
Item 4. | Mine Safety Disclosures | |||||||||||
Item 5. | Other Information | |||||||||||
Item 6. | ||||||||||||
Preferred Apartment Communities, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
(In thousands, except per-share par values) | September 30, 2019 | December 31, 2018 | ||||||
Assets | ||||||||
Real estate | ||||||||
Land | $ | 607,055 | $ | 519,300 | ||||
Building and improvements | 3,117,087 | 2,738,085 | ||||||
Tenant improvements | 151,960 | 128,914 | ||||||
Furniture, fixtures, and equipment | 321,478 | 278,151 | ||||||
Construction in progress | 11,242 | 8,265 | ||||||
Gross real estate | 4,208,822 | 3,672,715 | ||||||
Less: accumulated depreciation | (382,479 | ) | (272,042 | ) | ||||
Net real estate | 3,826,343 | 3,400,673 | ||||||
Real estate loan investments, net of deferred fee income and allowance for loan loss | 356,272 | 282,548 | ||||||
Real estate loan investments to related parties, net | 25,214 | 51,663 | ||||||
Total real estate and real estate loan investments, net | 4,207,829 | 3,734,884 | ||||||
Cash and cash equivalents | 86,177 | 38,958 | ||||||
Restricted cash | 61,032 | 48,732 | ||||||
Notes receivable | 17,698 | 14,440 | ||||||
Note receivable and revolving lines of credit due from related parties | 23,959 | 32,867 | ||||||
Accrued interest receivable on real estate loans | 27,877 | 23,340 | ||||||
Acquired intangible assets, net of amortization of $140,832 and $113,199 | 147,649 | 135,961 | ||||||
Deferred loan costs on Revolving Line of Credit, net of amortization of $681 and $180 | 1,454 | 1,916 | ||||||
Deferred offering costs | 2,804 | 6,468 | ||||||
Tenant lease inducements, net of amortization of $3,128 and $1,833 | 19,972 | 20,698 | ||||||
Receivable from sale of mortgage-backed security | — | 41,181 | ||||||
Tenant receivables (net of allowance of $0 and $1,662) and other assets | 60,948 | 41,567 | ||||||
Variable Interest Entity ("VIE") assets from mortgage-backed pool, at fair value | 610,248 | 269,946 | ||||||
Total assets | $ | 5,267,647 | $ | 4,410,958 | ||||
Liabilities and equity | ||||||||
Liabilities | ||||||||
Mortgage notes payable, net of deferred loan costs and | ||||||||
mark-to-market adjustment of $42,642 and $40,127 | $ | 2,561,837 | $ | 2,299,625 | ||||
Revolving line of credit | 50,000 | 57,000 | ||||||
Real estate loan investment participation obligation | — | 5,181 | ||||||
Unearned purchase option termination fees | 5,050 | 2,050 | ||||||
Deferred revenue | 40,663 | 43,484 | ||||||
Accounts payable and accrued expenses | 58,762 | 38,618 | ||||||
Accrued interest payable | 7,853 | 6,711 | ||||||
Dividends and partnership distributions payable | 22,429 | 19,258 | ||||||
Acquired below market lease intangibles, net of amortization of $21,677 and $15,254 | 53,033 | 47,149 | ||||||
Prepaid rent, security deposits, and other liabilities | 19,253 | 17,611 | ||||||
VIE liabilities from mortgage-backed pool, at fair value | 585,837 | 264,886 | ||||||
Total liabilities | 3,404,717 | 2,801,573 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Equity | ||||||||
Stockholders' equity | ||||||||
Series A Redeemable Preferred Stock, $0.01 par value per share; 3,050 | ||||||||
shares authorized; 2,047 and 1,674 shares issued; 1,932 and 1,608 | ||||||||
shares outstanding at September 30, 2019 and December 31, 2018, respectively | 19 | 16 | ||||||
Series M Redeemable Preferred Stock, $0.01 par value per share; 500 | ||||||||
shares authorized; 91 and 44 shares issued; 90 and 44 shares outstanding | ||||||||
at September 30, 2019 and December 31, 2018, respectively | 1 | — | ||||||
Common Stock, $0.01 par value per share; 400,067 shares authorized; | ||||||||
45,335 and 41,776 shares issued and outstanding at | ||||||||
September 30, 2019 and December 31, 2018, respectively | 453 | 418 | ||||||
Additional paid-in capital | 1,861,446 | 1,607,712 | ||||||
Accumulated (deficit) earnings | — | — | ||||||
Total stockholders' equity | 1,861,919 | 1,608,146 | ||||||
Non-controlling interest | 1,011 | 1,239 | ||||||
Total equity | 1,862,930 | 1,609,385 | ||||||
Total liabilities and equity | $ | 5,267,647 | $ | 4,410,958 |
Preferred Apartment Communities, Inc. | ||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||
(Unaudited) | ||||||||||||||
(In thousands, except per-share par values) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets | ||||||||||||||
Real estate | ||||||||||||||
Land | $ | 657,286 | $ | 635,757 | ||||||||||
Building and improvements | 3,361,174 | 3,256,223 | ||||||||||||
Tenant improvements | 175,400 | 167,275 | ||||||||||||
Furniture, fixtures, and equipment | 357,010 | 323,381 | ||||||||||||
Construction in progress | 23,677 | 11,893 | ||||||||||||
Gross real estate | 4,574,547 | 4,394,529 | ||||||||||||
Less: accumulated depreciation | (542,161) | (421,551) | ||||||||||||
Net real estate | 4,032,386 | 3,972,978 | ||||||||||||
Real estate loan investments, net of deferred fee income and allowance for expected | ||||||||||||||
loan loss of $10,480 and $1,460 | 307,033 | 325,790 | ||||||||||||
Real estate loan investments to related parties, net of deferred fee income and allowances for expected | ||||||||||||||
loan losses and doubtful accounts of $3,548 and $1,416 | 2,568 | 23,692 | ||||||||||||
Total real estate and real estate loan investments, net | 4,341,987 | 4,322,460 | ||||||||||||
Cash and cash equivalents | 30,337 | 94,381 | ||||||||||||
Restricted cash | 65,690 | 42,872 | ||||||||||||
Notes receivable | 2,894 | 17,079 | ||||||||||||
Note receivable and revolving lines of credit due from related parties | 9,011 | 24,838 | ||||||||||||
Accrued interest receivable on real estate loans | 24,784 | 25,755 | ||||||||||||
Acquired intangible assets, net of amortization of $177,348 and $149,896 | 133,297 | 154,803 | ||||||||||||
Deferred loan costs on Revolving Line of Credit, net of amortization of $1,362 and $849 | 879 | 1,286 | ||||||||||||
Deferred offering costs | 4,721 | 2,147 | ||||||||||||
Tenant lease inducements, net of amortization of $4,902 and $3,567 | 18,655 | 19,607 | ||||||||||||
Investment in unconsolidated joint venture | 6,851 | 0 | ||||||||||||
Tenant receivables and other assets | 91,956 | 65,332 | ||||||||||||
Total assets | $ | 4,731,062 | $ | 4,770,560 | ||||||||||
Liabilities and equity | ||||||||||||||
Liabilities | ||||||||||||||
Mortgage notes payable, net of deferred loan costs and mark-to-market adjustment of $48,376 and $42,807 | $ | 2,765,793 | $ | 2,567,022 | ||||||||||
Revolving line of credit | 33,000 | 0 | ||||||||||||
Term note payable, net of deferred loan costs of $0 and $511 | 0 | 69,489 | ||||||||||||
Unearned purchase option termination fees | 1,164 | 2,859 | ||||||||||||
Deferred revenue | 36,909 | 39,722 | ||||||||||||
Accounts payable and accrued expenses | 66,283 | 42,191 | ||||||||||||
Deferred liability to Former Manager | 23,373 | 0 | ||||||||||||
Contingent liability due to Former Manager | 14,867 | 0 | ||||||||||||
Accrued interest payable | 8,538 | 8,152 | ||||||||||||
Dividends and partnership distributions payable | 20,971 | 23,519 | ||||||||||||
Acquired below market lease intangibles, net of amortization of $31,511 and $23,655 | 54,483 | 62,611 | ||||||||||||
Prepaid rent, security deposits, and other liabilities | 34,823 | 20,879 | ||||||||||||
Total liabilities | 3,060,204 | 2,836,444 | ||||||||||||
Commitments and contingencies (Note 11) | ||||||||||||||
Equity | ||||||||||||||
Stockholders' equity | ||||||||||||||
Series A Redeemable Preferred Stock, $0.01 par value per share; 3,050 shares authorized; 2,226 and 2,161 shares | ||||||||||||||
issued; 1,991 and 2,028 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 20 | 20 | ||||||||||||
Series A1 Redeemable Preferred Stock, $0.01 par value per share; up to 1,000 shares authorized; 103 and 5 shares | ||||||||||||||
issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 0 | 0 | ||||||||||||
Series M Redeemable Preferred Stock, $0.01 par value per share; 500 shares authorized; 106 shares issued; | ||||||||||||||
91 and 103 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 1 | 1 | ||||||||||||
Series M1 Redeemable Preferred Stock, $0.01 par value per share; up to 1,000 shares authorized; 13 and zero shares | ||||||||||||||
issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 0 | 0 | ||||||||||||
Common Stock, $0.01 par value per share; 400,067 shares authorized; 49,901 and 46,443 shares issued and | ||||||||||||||
outstanding at September 30, 2020 and December 31, 2019, respectively | 499 | 464 | ||||||||||||
Additional paid-in capital | 1,882,149 | 1,938,057 | ||||||||||||
Accumulated (deficit) earnings | (210,218) | (7,244) | ||||||||||||
Total stockholders' equity | 1,672,451 | 1,931,298 | ||||||||||||
Non-controlling interest | (1,593) | 2,818 | ||||||||||||
Total equity | 1,670,858 | 1,934,116 | ||||||||||||
Total liabilities and equity | $ | 4,731,062 | $ | 4,770,560 |
Preferred Apartment Communities, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(unaudited) | ||||||||||||||||
(In thousands, except per-share figures) | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues: | ||||||||||||||||
Rental revenues | $ | 101,817 | $ | 84,500 | $ | 289,647 | $ | 235,314 | ||||||||
Other property revenues | 3,232 | 2,443 | 8,922 | 5,791 | ||||||||||||
Interest income on loans and notes receivable | 12,608 | 13,618 | 35,989 | 37,576 | ||||||||||||
Interest income from related parties | 2,546 | 3,671 | 9,980 | 12,310 | ||||||||||||
Miscellaneous revenues | — | — | 1,023 | — | ||||||||||||
Total revenues | 120,203 | 104,232 | 345,561 | 290,991 | ||||||||||||
Operating expenses: | ||||||||||||||||
Property operating and maintenance | 14,928 | 12,893 | 38,186 | 31,805 | ||||||||||||
Property salary and benefits (including reimbursements of $4,681, $4,501, | ||||||||||||||||
$12,973 and $12,040 to related party) | 5,360 | 4,911 | 14,845 | 13,038 | ||||||||||||
Property management fees (including $2,565, $2,344, $7,534 and $6,604 to related parties) | 3,534 | 2,998 | 10,174 | 8,530 | ||||||||||||
Real estate taxes | 12,870 | 10,597 | 37,914 | 30,635 | ||||||||||||
General and administrative | 1,898 | 2,221 | 6,425 | 6,019 | ||||||||||||
Equity compensation to directors and executives | 305 | 796 | 922 | 2,881 | ||||||||||||
Depreciation and amortization | 46,239 | 44,499 | 137,191 | 127,210 | ||||||||||||
Asset management and general and administrative expense fees to related party | 8,611 | 7,234 | 24,649 | 20,096 | ||||||||||||
Loan loss allowance | — | 3,029 | — | 3,029 | ||||||||||||
Insurance, professional fees and other expenses | 3,453 | 1,713 | 8,671 | 5,166 | ||||||||||||
Total operating expenses | 97,198 | 90,891 | 278,977 | 248,409 | ||||||||||||
Waived asset management and general and administrative expense fees | (3,081 | ) | (1,934 | ) | (8,505 | ) | (4,583 | ) | ||||||||
Net operating expenses | 94,117 | 88,957 | 270,472 | 243,826 | ||||||||||||
Operating income before gains on sales of real estate and trading investment | 26,086 | 15,275 | 75,089 | 47,165 | ||||||||||||
Gains on sales of real estate and trading investment | — | 18,605 | 4 | 38,961 | ||||||||||||
Operating income | 26,086 | 33,880 | 75,093 | 86,126 | ||||||||||||
Interest expense | 28,799 | 25,657 | 83,166 | 68,972 | ||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | 591 | 131 | 1,316 | 185 | ||||||||||||
Loss on extinguishment of debt | (15 | ) | — | (84 | ) | — | ||||||||||
Gain on sale of real estate loan investment | — | — | 747 | — | ||||||||||||
Net income (loss) | (2,137 | ) | 8,354 | (6,094 | ) | 17,339 | ||||||||||
Consolidated net (income) loss attributable to non-controlling interests | 59 | (216 | ) | 138 | (456 | ) | ||||||||||
Net income (loss) attributable to the Company | (2,078 | ) | 8,138 | (5,956 | ) | 16,883 | ||||||||||
Dividends declared to preferred stockholders | (29,446 | ) | (22,360 | ) | (82,527 | ) | (62,801 | ) | ||||||||
Earnings attributable to unvested restricted stock | (5 | ) | (5 | ) | (14 | ) | (13 | ) | ||||||||
Net loss attributable to common stockholders | $ | (31,529 | ) | $ | (14,227 | ) | $ | (88,497 | ) | $ | (45,931 | ) | ||||
Net loss per share of Common Stock available | ||||||||||||||||
to common stockholders, basic and diluted | $ | (0.71 | ) | $ | (0.35 | ) | $ | (2.02 | ) | $ | (1.16 | ) | ||||
Weighted average number of shares of Common Stock outstanding, | ||||||||||||||||
basic and diluted | 44,703 | 40,300 | 43,703 | 39,598 |
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity | ||||||||||||||||||||||||||||
For the three-month period ended September 30, 2019 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Series A and Series M Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at July 1, 2019 | $ | 19 | $ | 442 | $ | 1,784,197 | $ | — | $ | 1,784,658 | $ | (488 | ) | $ | 1,784,170 | |||||||||||||
Issuance of Units | 1 | — | 116,827 | — | 116,828 | — | 116,828 | |||||||||||||||||||||
Issuance of mShares | — | — | 17,156 | — | 17,156 | — | 17,156 | |||||||||||||||||||||
Redemptions of Series A Preferred Stock | — | 9 | (2,886 | ) | — | (2,877 | ) | — | (2,877 | ) | ||||||||||||||||||
Exercises of warrants | — | 2 | 2,480 | — | 2,482 | — | 2,482 | |||||||||||||||||||||
Syndication and offering costs | — | — | (13,553 | ) | — | (13,553 | ) | — | (13,553 | ) | ||||||||||||||||||
Equity compensation to executives and directors | — | — | 155 | — | 155 | — | 155 | |||||||||||||||||||||
Conversion of Class A Units to Common Stock | — | — | 112 | — | 112 | (112 | ) | — | ||||||||||||||||||||
Current period amortization of Class B Units | — | — | — | — | — | 150 | 150 | |||||||||||||||||||||
Net income (loss) | — | — | — | (2,078 | ) | (2,078 | ) | (59 | ) | (2,137 | ) | |||||||||||||||||
Contributions from Minority Holders | — | — | — | — | — | 2,050 | 2,050 | |||||||||||||||||||||
Reallocation adjustment to non-controlling interests | — | — | 305 | — | 305 | (305 | ) | — | ||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (225 | ) | (225 | ) | |||||||||||||||||||
Dividends to series A preferred stockholders | ||||||||||||||||||||||||||||
($5.00 per share per month) | — | — | (30,094 | ) | 1,983 | (28,111 | ) | — | (28,111 | ) | ||||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | — | — | (1,430 | ) | 95 | (1,335 | ) | — | (1,335 | ) | ||||||||||||||||||
Dividends to common stockholders ($0.2625 per share) | — | — | (11,823 | ) | — | (11,823 | ) | — | (11,823 | ) | ||||||||||||||||||
Balance at September 30, 2019 | $ | 20 | $ | 453 | $ | 1,861,446 | $ | — | $ | 1,861,919 | $ | 1,011 | $ | 1,862,930 |
Preferred Apartment Communities, Inc. | |||||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(In thousands, except per-share figures) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental and other property revenues | $ | 114,831 | $ | 105,049 | $ | 338,271 | $ | 298,569 | |||||||||||||||
Interest income on loans and notes receivable | 10,649 | 12,608 | 34,495 | 35,989 | |||||||||||||||||||
Interest income from related parties | 609 | 2,546 | 3,750 | 9,980 | |||||||||||||||||||
Miscellaneous revenues | 608 | 0 | 4,560 | 1,023 | |||||||||||||||||||
Total revenues | 126,697 | 120,203 | 381,076 | 345,561 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Property operating and maintenance | 19,278 | 16,493 | 52,919 | 43,236 | |||||||||||||||||||
Property salary and benefits (including reimbursements of $0, $4,681, $1,430 | |||||||||||||||||||||||
and $12,973 to related party) | 6,054 | 5,360 | 16,965 | 14,845 | |||||||||||||||||||
Property management costs (including $0, $2,565, $894 and $7,534 to related parties) | 983 | 3,534 | 4,028 | 10,174 | |||||||||||||||||||
Real estate taxes and insurance | 16,078 | 14,474 | 48,109 | 42,646 | |||||||||||||||||||
General and administrative | 7,898 | 1,364 | 23,109 | 4,171 | |||||||||||||||||||
Equity compensation to directors and executives | 582 | 305 | 1,058 | 922 | |||||||||||||||||||
Depreciation and amortization | 51,794 | 46,239 | 153,096 | 137,191 | |||||||||||||||||||
Asset management and general and administrative expense fees to related party | 0 | 8,611 | 3,099 | 24,649 | |||||||||||||||||||
Provision for expected credit losses | (152) | 0 | 5,463 | 0 | |||||||||||||||||||
Management internalization expense | 577 | 818 | 179,828 | 1,143 | |||||||||||||||||||
Total operating expenses | 103,092 | 97,198 | 487,674 | 278,977 | |||||||||||||||||||
Waived asset management and general and administrative expense fees | 0 | (3,081) | (1,136) | (8,505) | |||||||||||||||||||
Net operating expenses | 103,092 | 94,117 | 486,538 | 270,472 | |||||||||||||||||||
Operating (loss) income before gain on sale of real estate and loss from | |||||||||||||||||||||||
unconsolidated joint venture | 23,605 | 26,086 | (105,462) | 75,089 | |||||||||||||||||||
Loss from unconsolidated joint venture | (120) | 0 | (120) | 0 | |||||||||||||||||||
Gain on sale of real estate, net | 3,261 | 0 | 3,261 | 4 | |||||||||||||||||||
Operating (loss) income | 26,746 | 26,086 | (102,321) | 75,093 | |||||||||||||||||||
Interest expense | 29,879 | 28,799 | 90,608 | 83,166 | |||||||||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | 0 | 591 | 0 | 1,316 | |||||||||||||||||||
Loss on extinguishment of debt | (518) | (15) | (6,674) | (84) | |||||||||||||||||||
Gain on land condemnation | 49 | 0 | 528 | 747 | |||||||||||||||||||
Net loss | (3,602) | (2,137) | (199,075) | (6,094) | |||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | 108 | 59 | 3,515 | 138 | |||||||||||||||||||
Net loss attributable to the Company | (3,494) | (2,078) | (195,560) | (5,956) | |||||||||||||||||||
Dividends declared to preferred stockholders | (35,909) | (29,446) | (104,601) | (82,527) | |||||||||||||||||||
Earnings attributable to unvested restricted stock | (96) | (5) | (109) | (14) | |||||||||||||||||||
Net loss attributable to common stockholders | $ | (39,499) | $ | (31,529) | $ | (300,270) | $ | (88,497) | |||||||||||||||
Net loss per share of Common Stock available | |||||||||||||||||||||||
to common stockholders, basic and diluted | $ | (0.79) | $ | (0.71) | $ | (6.21) | $ | (2.02) | |||||||||||||||
Weighted average number of shares of Common Stock outstanding, | |||||||||||||||||||||||
basic and diluted | 49,689 | 44,703 | 48,351 | 43,703 | |||||||||||||||||||
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity, continued | ||||||||||||||||||||||||||||
For the three-month period ended September 30, 2018 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Series A and Series M Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at July 1, 2018 | $ | 14 | $ | 397 | $ | 1,430,713 | $ | — | $ | 1,431,124 | $ | 2,353 | $ | 1,433,477 | ||||||||||||||
Issuance of Units | 1 | — | 100,877 | — | 100,878 | — | 100,878 | |||||||||||||||||||||
Issuance of mShares | — | — | 8,199 | — | 8,199 | — | 8,199 | |||||||||||||||||||||
Redemptions of Series A Preferred Stock | — | 7 | (49 | ) | — | (42 | ) | — | (42 | ) | ||||||||||||||||||
Exercises of warrants | — | 4 | 4,572 | — | 4,576 | — | 4,576 | |||||||||||||||||||||
Syndication and offering costs | — | — | (10,842 | ) | — | (10,842 | ) | — | (10,842 | ) | ||||||||||||||||||
Equity compensation to executives and directors | — | — | 135 | — | 135 | — | 135 | |||||||||||||||||||||
Conversion of Class A Units to Common Stock | — | — | 20 | — | 20 | (20 | ) | — | ||||||||||||||||||||
Current period amortization of Class B Units | — | — | — | — | — | 661 | 661 | |||||||||||||||||||||
Net income (loss) | — | — | — | 8,138 | 8,138 | 216 | 8,354 | |||||||||||||||||||||
Reallocation adjustment to non-controlling interests | — | — | 391 | — | 391 | (391 | ) | — | ||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (271 | ) | (271 | ) | |||||||||||||||||||
Dividends to series A preferred stockholders | ||||||||||||||||||||||||||||
($5.00 per share per month) | — | — | (13,883 | ) | (7,948 | ) | (21,831 | ) | — | (21,831 | ) | |||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | — | — | (339 | ) | (190 | ) | (529 | ) | — | (529 | ) | |||||||||||||||||
Dividends to common stockholders ($0.255 per share) | — | — | (10,383 | ) | — | (10,383 | ) | — | (10,383 | ) | ||||||||||||||||||
Balance at September 30, 2018 | $ | 15 | $ | 408 | $ | 1,509,411 | $ | — | $ | 1,509,834 | $ | 2,548 | $ | 1,512,382 |
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||
For the three-month period ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at July 1, 2020 | $ | 21 | $ | 493 | $ | 1,917,212 | $ | (206,724) | $ | 1,711,002 | $ | (1,006) | $ | 1,709,996 | ||||||||||||||||||||||||||||||
Issuance of Series A1/M1 preferred shares | 0 | 0 | 42,352 | — | 42,352 | — | 42,352 | |||||||||||||||||||||||||||||||||||||
At-the-market issuance of common stock | 0 | 6 | 4,608 | — | 4,614 | — | 4,614 | |||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | — | 0 | (33,823) | 0 | (33,823) | 0 | (33,823) | |||||||||||||||||||||||||||||||||||||
Syndication and offering costs | — | — | (4,127) | — | (4,127) | — | (4,127) | |||||||||||||||||||||||||||||||||||||
Equity compensation to executives and directors | 0 | 0 | 512 | 0 | 512 | 0 | 512 | |||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to common stock | 0 | 0 | (2) | 0 | (2) | 2 | 0 | |||||||||||||||||||||||||||||||||||||
Current period amortization of Class B Units | 0 | 0 | 0 | 0 | 0 | 70 | 70 | |||||||||||||||||||||||||||||||||||||
Net loss | 0 | 0 | 0 | (3,494) | (3,494) | (108) | (3,602) | |||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | 0 | 0 | — | — | 0 | (98) | (98) | |||||||||||||||||||||||||||||||||||||
Reallocation of non-controlling interest to Class A Unitholders | 0 | 0 | 202 | 0 | 202 | (202) | 0 | |||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | 0 | 0 | 0 | 0 | 0 | (119) | (119) | |||||||||||||||||||||||||||||||||||||
Distributions to Class A Unitholders | 0 | 0 | 0 | 0 | 0 | (132) | (132) | |||||||||||||||||||||||||||||||||||||
Dividends to Series A preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 per share per month) | 0 | 0 | (32,964) | 0 | (32,964) | 0 | (32,964) | |||||||||||||||||||||||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | 0 | — | (1,547) | 0 | (1,547) | 0 | (1,547) | |||||||||||||||||||||||||||||||||||||
Dividends to Series A1/M1 preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 and $5.08 - $5.92 per share per month, respectively) | 0 | 0 | (1,398) | 0 | (1,398) | 0 | (1,398) | |||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.175 per share) | 0 | 0 | (8,876) | 0 | (8,876) | 0 | (8,876) | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 21 | $ | 499 | $ | 1,882,149 | $ | (210,218) | $ | 1,672,451 | $ | (1,593) | $ | 1,670,858 |
Preferred Apartment Communities, Inc. | Preferred Apartment Communities, Inc. | Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the nine-month period ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity, continued | Condensed Consolidated Statements of Stockholders' Equity, continued | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the three-month period ended September 30, 2019 | For the three-month period ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Series A and Series M Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | (In thousands, except dividend per-share figures) | Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 16 | $ | 418 | $ | 1,607,712 | $ | — | $ | 1,608,146 | $ | 1,239 | $ | 1,609,385 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Units | 4 | — | 369,416 | — | 369,420 | — | 369,420 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2019 | Balance at July 1, 2019 | $ | 19 | $ | 442 | $ | 1,784,197 | $ | 0 | $ | 1,784,658 | $ | (488) | $ | 1,784,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series A preferred shares | Issuance of Series A preferred shares | 1 | 0 | 116,827 | 0 | 116,828 | — | 116,828 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of mShares | — | — | 46,765 | — | 46,765 | — | 46,765 | Issuance of mShares | 0 | 0 | 17,156 | 0 | 17,156 | — | 17,156 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of Series A Preferred Stock | — | 26 | (8,014 | ) | — | (7,988 | ) | — | (7,988 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | Redemptions of preferred stock | 0 | 9 | (2,886) | 0 | (2,877) | 0 | (2,877) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of warrants | — | 8 | 10,066 | — | 10,074 | — | 10,074 | Exercises of warrants | 0 | 2 | 2,480 | 0 | 2,482 | 0 | 2,482 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Syndication and offering costs | — | — | (43,795 | ) | — | (43,795 | ) | — | (43,795 | ) | Syndication and offering costs | 0 | 0 | (13,553) | 0 | (13,553) | 0 | (13,553) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation to executives and directors | — | — | 471 | — | 471 | — | 471 | Equity compensation to executives and directors | 0 | 0 | 155 | 0 | 155 | 0 | 155 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to Common Stock | — | 1 | 676 | — | 677 | (677 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to common stock | Conversion of Class A Units to common stock | 0 | 0 | 112 | 0 | 112 | (112) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period amortization of Class B Units | — | — | — | — | — | 451 | 451 | Current period amortization of Class B Units | 0 | 0 | 0 | 0 | 0 | 150 | 150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (5,956 | ) | (5,956 | ) | (138 | ) | (6,094 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from Minority Holders | — | — | — | — | — | 2,050 | 2,050 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reallocation adjustment to non-controlling interests | — | — | 1,231 | — | 1,231 | (1,231 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | Net loss | 0 | 0 | 0 | (2,078) | (2,078) | (59) | (2,137) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | Contributions from non-controlling interests | 0 | 0 | — | — | 0 | 2,050 | 2,050 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reallocation of non-controlling interest to Class A Unitholders | Reallocation of non-controlling interest to Class A Unitholders | 0 | 0 | 305 | 0 | 305 | (305) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (683 | ) | (683 | ) | Distributions to non-controlling interests | 0 | 0 | 0 | 0 | 0 | (225) | (225) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to series A preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Series A preferred stockholders | Dividends to Series A preferred stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($5.00 per share per month) | — | — | (85,078 | ) | 5,727 | (79,351 | ) | — | (79,351 | ) | ($5.00 per share per month) | 0 | 0 | (30,094) | 1,983 | (28,111) | 0 | (28,111) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to mShares preferred stockholders | Dividends to mShares preferred stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | — | — | (3,405 | ) | 229 | (3,176 | ) | — | (3,176 | ) | ($4.79 - $6.25 per share per month) | 0 | — | (1,430) | 95 | (1,335) | 0 | (1,335) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.785 per share) | — | — | (34,599 | ) | — | (34,599 | ) | — | (34,599 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.2625 per share) | Dividends to common stockholders ($0.2625 per share) | 0 | 0 | (11,823) | 0 | (11,823) | 0 | (11,823) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 20 | $ | 453 | $ | 1,861,446 | $ | — | $ | 1,861,919 | $ | 1,011 | $ | 1,862,930 | Balance at September 30, 2019 | $ | 20 | $ | 453 | $ | 1,861,446 | $ | 0 | $ | 1,861,919 | $ | 1,011 | $ | 1,862,930 |
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity, continued | ||||||||||||||||||||||||||||
For the nine-month period ended September 30, 2018 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Series A and Series M Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at January 1, 2018 | $ | 12 | $ | 386 | $ | 1,271,040 | $ | 4,449 | $ | 1,275,887 | $ | 4,879 | $ | 1,280,766 | ||||||||||||||
Issuance of Units | 3 | — | 311,719 | — | 311,722 | — | 311,722 | |||||||||||||||||||||
Issuance of mShares | — | — | 21,768 | — | 21,768 | — | 21,768 | |||||||||||||||||||||
Redemptions of Series A Preferred Stock | — | 11 | (9,112 | ) | — | (9,101 | ) | — | (9,101 | ) | ||||||||||||||||||
Exercises of Warrants | — | 10 | 12,943 | — | 12,953 | — | 12,953 | |||||||||||||||||||||
Syndication and offering costs | — | — | (32,043 | ) | — | (32,043 | ) | — | (32,043 | ) | ||||||||||||||||||
Equity compensation to executives and directors | — | — | 413 | — | 413 | — | 413 | |||||||||||||||||||||
Conversion of Class A Units to Common Stock | — | 1 | 870 | — | 871 | (871 | ) | — | ||||||||||||||||||||
Current period amortization of Class B Units | — | — | — | — | — | 2,468 | 2,468 | |||||||||||||||||||||
Net income | — | — | — | 16,883 | 16,883 | 456 | 17,339 | |||||||||||||||||||||
Reallocation adjustment to non-controlling interests | — | — | 3,571 | — | 3,571 | (3,571 | ) | — | ||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (813 | ) | (813 | ) | |||||||||||||||||||
Dividends to Series A preferred stockholders | ||||||||||||||||||||||||||||
($5.00 per share per month) | — | — | (40,655 | ) | (20,913 | ) | (61,568 | ) | — | (61,568 | ) | |||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | — | — | (814 | ) | (419 | ) | (1,233 | ) | — | (1,233 | ) | |||||||||||||||||
Dividends to common stockholders ($0.76 per share) | — | — | (30,289 | ) | — | (30,289 | ) | — | (30,289 | ) | ||||||||||||||||||
Balance at September 30, 2018 | $ | 15 | $ | 408 | $ | 1,509,411 | $ | — | $ | 1,509,834 | $ | 2,548 | $ | 1,512,382 |
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity, continued | ||||||||||||||||||||||||||||||||||||||||||||
For the nine-month period ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 21 | $ | 464 | $ | 1,938,057 | $ | (7,244) | $ | 1,931,298 | $ | 2,818 | $ | 1,934,116 | ||||||||||||||||||||||||||||||
Cumulative adjustment to reflect the adoption of ASU 2016-13 | — | — | — | (7,414) | (7,414) | — | (7,414) | |||||||||||||||||||||||||||||||||||||
Issuance of Series A preferred shares | 1 | 0 | 64,483 | — | 64,484 | — | 64,484 | |||||||||||||||||||||||||||||||||||||
Issuance of Series A1/M1 preferred shares | 1 | 0 | 110,946 | — | 110,947 | — | 110,947 | |||||||||||||||||||||||||||||||||||||
At-the-market issuance of common stock | — | 6 | 4,608 | — | 4,614 | — | 4,614 | |||||||||||||||||||||||||||||||||||||
Exercise of warrants | 0 | 0 | 8 | 0 | 8 | 0 | 8 | |||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | (2) | 28 | (82,058) | 0 | (82,032) | 0 | (82,032) | |||||||||||||||||||||||||||||||||||||
Syndication and offering costs | 0 | 0 | (20,775) | 0 | (20,775) | 0 | (20,775) | |||||||||||||||||||||||||||||||||||||
Equity compensation to executives and directors | 0 | 0 | 864 | 0 | 864 | 0 | 864 | |||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to common stock | 0 | 1 | 1,381 | 0 | 1,382 | (1,382) | 0 | |||||||||||||||||||||||||||||||||||||
Current period amortization of Class B Units | 0 | 0 | 0 | 0 | 0 | 194 | 194 | |||||||||||||||||||||||||||||||||||||
Net loss | 0 | 0 | 0 | (195,560) | (195,560) | (3,515) | (199,075) | |||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | 0 | 0 | — | — | 0 | 103 | 103 | |||||||||||||||||||||||||||||||||||||
Reallocation of non-controlling interest to Class A Unitholders | 0 | 0 | (773) | 0 | (773) | 773 | 0 | |||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | 0 | 0 | 0 | 0 | 0 | (119) | (119) | |||||||||||||||||||||||||||||||||||||
Distributions to Class A Unitholders | 0 | 0 | 0 | 0 | 0 | (465) | (465) | |||||||||||||||||||||||||||||||||||||
Dividends to Series A preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 per share per month) | 0 | 0 | (97,272) | 0 | (97,272) | 0 | (97,272) | |||||||||||||||||||||||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | 0 | — | (4,903) | 0 | (4,903) | 0 | (4,903) | |||||||||||||||||||||||||||||||||||||
Dividends to Series A1/M1 preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 and $5.08 - $5.92 per share per month, respectively) | 0 | 0 | (2,426) | 0 | (2,426) | 0 | (2,426) | |||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.6125 per share) | 0 | 0 | (29,991) | 0 | (29,991) | 0 | (29,991) | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 21 | $ | 499 | $ | 1,882,149 | $ | (210,218) | $ | 1,672,451 | $ | (1,593) | $ | 1,670,858 |
Preferred Apartment Communities, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(unaudited) | ||||||||
(In thousands) | Nine Months Ended September 30, | |||||||
2019 | 2018 | |||||||
Operating activities: | ||||||||
Net (loss) income | $ | (6,094 | ) | $ | 17,339 | |||
Reconciliation of net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization expense | 137,191 | 127,210 | ||||||
Amortization of above and below market leases | (4,525 | ) | (4,297 | ) | ||||
Deferred revenues and fee income amortization | (4,024 | ) | (3,103 | ) | ||||
Purchase option termination fee amortization | (6,900 | ) | (6,554 | ) | ||||
Noncash interest income amortization on MBS, net of amortized costs | (696 | ) | (185 | ) | ||||
Amortization of market discount on assumed debt and lease incentives | 1,492 | 1,152 | ||||||
Deferred loan cost amortization | 4,752 | 5,213 | ||||||
(Increase) in accrued interest income on real estate loan investments | (7,888 | ) | (4,385 | ) | ||||
Equity compensation to executives and directors | 922 | 2,881 | ||||||
Gains on sales of real estate and trading investment | (4 | ) | (38,961 | ) | ||||
Cash received for purchase option terminations | 1,330 | 5,100 | ||||||
Loss on extinguishment of debt | 84 | — | ||||||
Gain on sale of real estate loan investments, net | (747 | ) | — | |||||
Non-cash payment of interest on related party line of credit | (637 | ) | — | |||||
Mortgage interest received from consolidated VIEs | 13,398 | 3,429 | ||||||
Mortgage interest paid to other participants of consolidated VIEs | (13,398 | ) | (3,429 | ) | ||||
Loan loss allowance | — | 3,029 | ||||||
Changes in operating assets and liabilities: | ||||||||
(Increase) in tenant receivables and other assets | (12,379 | ) | (3,518 | ) | ||||
(Increase) in tenant lease incentives | (570 | ) | (6,786 | ) | ||||
Increase in accounts payable and accrued expenses | 22,399 | 14,470 | ||||||
Increase in accrued interest, prepaid rents and other liabilities | 730 | 3,369 | ||||||
Net cash provided by operating activities | 124,436 | 111,974 | ||||||
Investing activities: | ||||||||
Investments in real estate loans | (74,668 | ) | (145,413 | ) | ||||
Repayments of real estate loans | — | 141,729 | ||||||
Notes receivable issued | (5,399 | ) | (5,949 | ) | ||||
Notes receivable repaid | 2,169 | 8,941 | ||||||
Note receivable issued to and draws on line of credit by related parties | (30,434 | ) | (39,377 | ) | ||||
Repayments of line of credit by related parties | 26,222 | 28,566 | ||||||
Proceeds from sale of real estate loan investment, net | 747 | — | ||||||
Origination fees received on real estate loan investments | 1,347 | 2,919 | ||||||
Origination fees paid to Manager on real estate loan investments | (674 | ) | (1,459 | ) | ||||
Purchases of mortgage-backed securities (K program), net of acquisition costs | (18,656 | ) | — | |||||
Mortgage principal received from consolidated VIEs | 5,024 | 705 | ||||||
Purchases of mortgage-backed securities | (12,278 | ) | (4,739 | ) | ||||
Proceeds from sales of mortgage-backed securities | 53,445 | — | ||||||
Acquisition of properties | (442,415 | ) | (662,918 | ) | ||||
Disposition of properties, net | — | 83,636 | ||||||
Receipt of insurance proceeds for capital improvements | 746 | 412 | ||||||
Additions to real estate assets - improvements | (34,251 | ) | (36,288 | ) | ||||
Deposits (paid) refunded on acquisitions | (952 | ) | 3,552 | |||||
Net cash used in investing activities | (530,027 | ) | (625,683 | ) | ||||
Financing activities: | ||||||||
Proceeds from mortgage notes payable | 329,905 | 386,559 | ||||||
Repayments of mortgage notes payable | (106,728 | ) | (66,875 | ) | ||||
Payments for deposits and other mortgage loan costs | (6,738 | ) | (7,150 | ) | ||||
Proceeds from real estate loan participants | — | 5 | ||||||
Payments to real estate loan participants | (5,223 | ) | (4,372 | ) | ||||
Proceeds from lines of credit | 240,200 | 362,100 | ||||||
Payments on lines of credit | (247,200 | ) | (348,200 | ) | ||||
Repayment of the Term Loan | — | (11,000 | ) | |||||
Mortgage principal paid to other participants of consolidated VIEs | (5,024 | ) | (705 | ) | ||||
Proceeds from repurchase agreements | 4,857 | — | ||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. |
Preferred Apartment Communities, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows - continued | ||||||||
(unaudited) | ||||||||
(In thousands) | Nine Months Ended September 30, | |||||||
2019 | 2018 | |||||||
Repayments of repurchase agreements | (4,857 | ) | — | |||||
Proceeds from sales of Units, net of offering costs | 380,016 | 303,391 | ||||||
Proceeds from exercises of Warrants | 9,875 | 16,553 | ||||||
Payments for redemptions of preferred stock | (7,995 | ) | (9,033 | ) | ||||
Common Stock dividends paid | (33,617 | ) | (29,488 | ) | ||||
Preferred stock dividends paid | (80,339 | ) | (61,093 | ) | ||||
Distributions to non-controlling interests | (686 | ) | (762 | ) | ||||
Payments for deferred offering costs | (3,386 | ) | (2,862 | ) | ||||
Contributions from non-controlling interests | 2,050 | — | ||||||
Net cash provided by financing activities | 465,110 | 527,068 | ||||||
Net increase in cash, cash equivalents and restricted cash | 59,519 | 13,359 | ||||||
Cash, cash equivalents and restricted cash, beginning of year | 87,690 | 73,012 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 147,209 | $ | 86,371 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ | 76,563 | $ | 62,207 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Accrued capital expenditures | $ | 3,952 | $ | 2,379 | ||||
Writeoff of fully depreciated or amortized assets and liabilities | $ | 210 | $ | 1,768 | ||||
Writeoff of fully amortized deferred loan costs | $ | 1,850 | $ | — | ||||
Lessee-funded tenant improvements, capitalized as landlord assets | $ | — | $ | 11,796 | ||||
Consolidation of assets of VIEs | $ | 270,669 | $ | — | ||||
Consolidation of liabilities of VIEs | $ | 270,669 | $ | — | ||||
Dividends payable - Common Stock | $ | 11,823 | $ | 10,377 | ||||
Dividends payable - Series A Preferred Stock | $ | 9,534 | $ | 7,426 | ||||
Dividends payable - mShares Preferred Stock | $ | 714 | $ | 170 | ||||
Dividends declared but not yet due and payable | $ | 358 | $ | 216 | ||||
Partnership distributions payable to non-controlling interests | $ | 225 | $ | 272 | ||||
Accrued and payable deferred offering costs | $ | 252 | $ | 322 | ||||
Offering cost reimbursement to related party | $ | 384 | $ | 1,438 | ||||
Reclass of offering costs from deferred asset to equity | $ | 7,508 | $ | 2,008 | ||||
Loan receivables converted to equity for property acquisition | $ | 47,797 | $ | — | ||||
Fair value issuances of equity compensation | $ | 719 | $ | 4,972 | ||||
Mortgage loans assumed on acquisitions | $ | 41,550 | $ | 47,125 | ||||
Noncash repayment of mortgages through refinancings | $ | 65,607 | $ | 37,485 |
Preferred Apartment Communities, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity, continued | ||||||||||||||||||||||||||||||||||||||||||||
For the nine-month period ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except dividend per-share figures) | Redeemable Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Earnings | Total Stockholders' Equity | Non-Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 16 | $ | 418 | $ | 1,607,712 | $ | 0 | $ | 1,608,146 | $ | 1,239 | $ | 1,609,385 | ||||||||||||||||||||||||||||||
Issuance of Series A preferred shares | 4 | 0 | 369,416 | 0 | 369,420 | — | 369,420 | |||||||||||||||||||||||||||||||||||||
Issuance of mShares | 0 | 0 | 46,765 | 0 | 46,765 | — | 46,765 | |||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | 0 | 26 | (8,014) | 0 | (7,988) | 0 | (7,988) | |||||||||||||||||||||||||||||||||||||
Exercises of warrants | 0 | 8 | 10,066 | 0 | 10,074 | 0 | 10,074 | |||||||||||||||||||||||||||||||||||||
Syndication and offering costs | 0 | 0 | (43,795) | 0 | (43,795) | 0 | (43,795) | |||||||||||||||||||||||||||||||||||||
Equity compensation to executives and directors | 0 | 0 | 471 | 0 | 471 | 0 | 471 | |||||||||||||||||||||||||||||||||||||
Conversion of Class A Units to common stock | 0 | 1 | 676 | 0 | 677 | (677) | 0 | |||||||||||||||||||||||||||||||||||||
Current period amortization of Class B Units | 0 | 0 | 0 | 0 | 0 | 451 | 451 | |||||||||||||||||||||||||||||||||||||
Net loss | 0 | 0 | 0 | (5,956) | (5,956) | (138) | (6,094) | |||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | 0 | 0 | — | — | 0 | 2,050 | 2,050 | |||||||||||||||||||||||||||||||||||||
Reallocation of non-controlling interest to Class A Unitholders | 0 | 0 | 1,231 | 0 | 1,231 | (1,231) | 0 | |||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interests | 0 | 0 | 0 | 0 | 0 | (683) | (683) | |||||||||||||||||||||||||||||||||||||
Dividends to Series A preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($5.00 per share per month) | 0 | 0 | (85,078) | 5,727 | (79,351) | 0 | (79,351) | |||||||||||||||||||||||||||||||||||||
Dividends to mShares preferred stockholders | ||||||||||||||||||||||||||||||||||||||||||||
($4.79 - $6.25 per share per month) | 0 | — | (3,405) | 229 | (3,176) | 0 | (3,176) | |||||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.785 per share) | 0 | 0 | (34,599) | 0 | (34,599) | 0 | (34,599) | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 20 | $ | 453 | $ | 1,861,446 | $ | 0 | $ | 1,861,919 | $ | 1,011 | $ | 1,862,930 |
Preferred Apartment Communities, Inc. | |||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
(In thousands) | Nine-month periods ended September 30, | ||||||||||
2020 | 2019 | ||||||||||
Operating activities: | |||||||||||
Net loss | $ | (199,075) | $ | (6,094) | |||||||
Reconciliation of net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | 153,096 | 137,191 | |||||||||
Amortization of above and below market leases | (6,145) | (4,525) | |||||||||
Deferred revenues and other noncash revenues amortization | (3,710) | (4,720) | |||||||||
Purchase option termination fee amortization | (4,896) | (6,900) | |||||||||
Amortization of equity compensation, lease incentives and other non-cash expenses | 3,027 | 2,414 | |||||||||
Deferred loan cost amortization | 5,177 | 4,752 | |||||||||
Non-cash accrued interest income on real estate loan investments | (9,208) | (10,206) | |||||||||
Receipt of accrued interest income on real estate loans | 10,179 | 2,318 | |||||||||
Gains on sales of real estate loan investments, net | 0 | (751) | |||||||||
Gain on sale of real estate and land condemnation | (3,789) | 0 | |||||||||
Loss from unconsolidated joint venture | 120 | 0 | |||||||||
Cash received for purchase option terminations | 4,800 | 1,330 | |||||||||
Loss on extinguishment of debt | 6,674 | 84 | |||||||||
Non-cash payment of interest on related party line of credit | 0 | (637) | |||||||||
Mortgage interest received from consolidated VIEs | 0 | 13,398 | |||||||||
Mortgage interest paid to other participants of consolidated VIEs | 0 | (13,398) | |||||||||
Increase in provision for expected credit losses | 5,463 | 0 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
(Increase) in tenant receivables and other assets | (15,769) | (12,379) | |||||||||
(Increase) in tenant lease incentives | (382) | (570) | |||||||||
Increase in accounts payable and accrued expenses | 46,821 | 22,399 | |||||||||
Increase in deferred liability to Former Manager | 22,851 | 0 | |||||||||
Increase in contingent liability | 15,013 | 0 | |||||||||
Decrease in accrued interest, prepaid rents and other liabilities | (249) | 730 | |||||||||
Net cash provided by operating activities | 29,998 | 124,436 | |||||||||
Investing activities: | |||||||||||
Investments in real estate loans | (42,193) | (74,668) | |||||||||
Repayments of real estate loans | 71,146 | 0 | |||||||||
Notes receivable issued | (793) | (5,399) | |||||||||
Notes receivable repaid | 15,012 | 2,169 | |||||||||
Note receivable issued to and draws on line of credit by related parties | (9,624) | (30,434) | |||||||||
Repayments of notes receivable and lines of credit by related parties | 4,546 | 26,222 | |||||||||
Proceeds from sale of real estate loan investment, net | 0 | 747 | |||||||||
Origination fees received on real estate loan investments | 882 | 1,347 | |||||||||
Origination fees paid to Former Manager on real estate loan investments | 0 | (674) | |||||||||
Purchases of mortgage backed securities (K program), net of acquisition costs | 0 | (18,656) | |||||||||
Mortgage principal received from consolidated VIEs | 0 | 5,024 | |||||||||
Purchases of mortgage backed securities | 0 | (12,278) | |||||||||
Proceeds from sales of mortgage-backed securities | 0 | 53,445 | |||||||||
Acquisition of properties | (185,970) | (442,415) | |||||||||
Proceeds from sale of interest in unconsolidated joint venture | 19,221 | 0 | |||||||||
Return of capital from investment in unconsolidated joint venture | 12,250 | 0 | |||||||||
Receipt of insurance proceeds for capital improvements | 0 | 746 | |||||||||
Proceeds from land condemnation | 787 | 0 | |||||||||
Capital improvements to real estate assets | (39,158) | (34,251) | |||||||||
Investment in property development | (50) | 0 | |||||||||
Deposits paid on acquisitions | (1,227) | (952) | |||||||||
Net cash used in investing activities | (155,171) | (530,027) | |||||||||
The accompanying notes are an integral part of these consolidated financial statements. | |||||||||||
Preferred Apartment Communities, Inc. | |||||||||||
Consolidated Statements of Cash Flows - continued | |||||||||||
(Unaudited) | |||||||||||
(In thousands) | Nine-month periods ended September 30, | ||||||||||
2020 | 2019 | ||||||||||
Financing activities: | |||||||||||
Proceeds from mortgage notes payable | 377,749 | 329,905 | |||||||||
Repayments of mortgage notes payable | (173,409) | (106,728) | |||||||||
Payments for deposits and other mortgage loan costs | (10,911) | (6,738) | |||||||||
Debt prepayment and other debt extinguishment costs | (5,733) | 0 | |||||||||
Payments to real estate loan participants | 0 | (5,223) | |||||||||
Proceeds from lines of credit | 321,000 | 240,200 | |||||||||
Payments on lines of credit | (288,000) | (247,200) | |||||||||
Repayment of the Term Loan | (70,000) | 0 | |||||||||
Mortgage principal paid to other participants of consolidated VIEs | 0 | (5,024) | |||||||||
Proceeds from repurchase agreements | 0 | 4,857 | |||||||||
Repayments of repurchase agreements | 0 | (4,857) | |||||||||
Proceeds from the sales of Preferred Stock and Units, net of offering costs and redemptions | 159,096 | 380,016 | |||||||||
Proceeds from exercises of Warrants | 24 | 9,875 | |||||||||
Payments for redemptions of preferred stock | (82,003) | (7,995) | |||||||||
Proceeds from sale of Common Stock | 4,522 | 0 | |||||||||
Common Stock dividends paid | (33,271) | (33,617) | |||||||||
Preferred stock dividends and Class A Unit distributions paid | (104,428) | (81,025) | |||||||||
Payments for deferred offering costs | (10,669) | (3,386) | |||||||||
Contributions from non-controlling interests | 99 | 2,050 | |||||||||
Distributions to non-controlling interests | (119) | 0 | |||||||||
Net cash provided by financing activities | 83,947 | 465,110 | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (41,226) | 59,519 | |||||||||
Cash, cash equivalents and restricted cash, beginning of year | 137,253 | 87,690 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 96,027 | $ | 147,209 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | 84,172 | $ | 76,563 | |||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Accrued capital expenditures | $ | 6,067 | $ | 3,952 | |||||||
Writeoff of fully depreciated or amortized assets and liabilities | $ | 2,473 | $ | 210 | |||||||
Writeoff of fully amortized deferred loan costs | $ | 2,828 | $ | 1,850 | |||||||
Consolidation of assets of VIEs | $ | 0 | $ | 270,669 | |||||||
Consolidation of liabilities of VIEs | $ | 0 | $ | 270,669 | |||||||
Noncash extinguishment of notes receivable | $ | 20,865 | $ | 0 | |||||||
Dividends payable - Common Stock | $ | 8,876 | $ | 11,823 | |||||||
Dividends payable - Series A Preferred Stock | $ | 9,954 | $ | 9,534 | |||||||
Dividends payable - mShares Preferred Stock | $ | 1,097 | $ | 714 | |||||||
Dividends payable - A1/M1 Preferred Stock | $ | 545 | $ | 0 | |||||||
Dividends declared but not yet due and payable | $ | 499 | $ | 358 | |||||||
Partnership distributions payable to non-controlling interests | $ | 130 | $ | 225 | |||||||
Accrued and payable deferred offering costs | $ | 38 | $ | 252 | |||||||
Offering cost reimbursement to related party | $ | 40 | $ | 384 | |||||||
Reclass of offering costs from deferred asset to equity | $ | 4,338 | $ | 7,508 | |||||||
Loan receivables converted to equity for property acquisition | $ | 0 | $ | 47,797 | |||||||
Noncash contribution of property into an unconsolidated joint venture | $ | 38,443 | $ | 0 | |||||||
Fair value issuances of equity compensation | $ | 6,461 | $ | 719 | |||||||
Mortgage loans assumed on acquisitions | $ | 0 | $ | 41,550 | |||||||
Noncash repayment of mortgages through refinances | $ | 86,669 | $ | 65,607 | |||||||
Operating lease liabilities assumed from Former Manager | $ | 15,912 | $ | 0 |
For the three-month period ended September 30, 2019 | |||||||||||||||||
(in thousands) | As reported in Quarterly Report on Form 10-Q at September 30, 2019 | Reclassification adjustments | As reported in Quarterly Report on Form 10-Q at September 30, 2020 | ||||||||||||||
Rental revenues | $ | 101,817 | $ | (101,817) | $ | 0 | |||||||||||
Other property revenues | $ | 3,232 | $ | (3,232) | $ | 0 | |||||||||||
Rental and other property revenues | $ | 0 | $ | 105,049 | $ | 105,049 | |||||||||||
Operating expenses: | |||||||||||||||||
Property operating and maintenance | $ | 14,928 | $ | 1,565 | $ | 16,493 | |||||||||||
Real estate taxes | $ | 12,870 | $ | (12,870) | $ | 0 | |||||||||||
Real estate taxes and insurance | $ | 0 | $ | 14,474 | $ | 14,474 | |||||||||||
General and administrative | $ | 1,898 | $ | (534) | $ | 1,364 | |||||||||||
Insurance, professional fees and other expenses | $ | 3,453 | $ | (3,453) | $ | 0 | |||||||||||
Management internalization expense | $ | 0 | $ | 818 | $ | 818 |
For the nine-month period ended September 30, 2019 | |||||||||||||||||
(in thousands) | As reported in Quarterly Report on Form 10-Q at September 30, 2019 | Reclassification adjustments | As reported in Quarterly Report on Form 10-Q at September 30, 2020 | ||||||||||||||
Rental revenues | $ | 289,647 | $ | (289,647) | $ | 0 | |||||||||||
Other property revenues | $ | 8,922 | $ | (8,922) | $ | 0 | |||||||||||
Rental and other property revenues | $ | 0 | $ | 298,569 | $ | 298,569 | |||||||||||
Operating expenses: | |||||||||||||||||
Property operating and maintenance | $ | 38,186 | $ | 5,050 | $ | 43,236 | |||||||||||
Real estate taxes | $ | 37,914 | $ | (37,914) | $ | 0 | |||||||||||
Real estate taxes and insurance | $ | 0 | $ | 42,646 | $ | 42,646 | |||||||||||
General and administrative | $ | 6,425 | $ | (2,254) | $ | 4,171 | |||||||||||
Insurance, professional fees and other expenses | $ | 8,671 | $ | (8,671) | $ | 0 | |||||||||||
Management internalization expense | $ | 0 | $ | 1,143 | $ | 1,143 |
Standard | Description | Date of Adoption | Effect on the Consolidated Financial Statements | ||||||||
Recently Adopted Accounting Guidance | |||||||||||
ASU 2016-13, Financial Instruments - Credit Losses (ASC 326) | ASU 2016-03 ("CECL") changes how entities will measure credit losses for most financial assets, including loans, which are not measured at fair value through net income. The guidance replaces the existing incurred loss model with an expected loss model for instruments measured at amortized cost, and | January 1, 2020 | Implementation of the new guidance on accounting for financial assets |
Standard | Description | Date of Adoption | Effect on the Consolidated Financial Statements | ||||||||
Recently Issued Accounting Guidance Not Yet Adopted | |||||||||||
ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The new standard enables affected entities to elect from a series of practical expedients designed to ease the transition from referenced base rates within contracts designated to be replaced by Reference Rate Reform. | The amendments are effective March 12, 2020 through December 31, 2022. | ASU 2020-04 will potentially be applicable to the Company's variable-rate debt instruments for which the Company is the borrower, which bear interest at a spread over the 1-month London Interbank Offer Rate (1-month LIBOR). Among the practical expedients are the option to elect prospective adjustment of the effective interest rate, foregoing reassessment of any instruments under loan modification rules. The Company is monitoring developments pertaining to Reference Rate Reform and does not currently anticipate ASU 2020-04 to have a material effect on its results of operations. |
As of: | ||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Residential properties: | ||||||||||||||
Properties (1,2) | 44 | 42 | ||||||||||||
Units | 12,936 | 12,256 | ||||||||||||
Beds | 6,095 | 6,095 | ||||||||||||
New Market Properties: | ||||||||||||||
Properties (2) | 54 | 52 | ||||||||||||
Gross leasable area (square feet) (3) | 6,208,278 | 6,041,629 | ||||||||||||
Preferred Office Properties: | ||||||||||||||
Properties (2,4) | 9 | 10 | ||||||||||||
Rentable square feet | 3,169,000 | 3,204,000 | ||||||||||||
(1) The acquired second phases of CityPark View and Crosstown Walk communities are managed in combination with the initial phases and so together are considered a single property, as is the Regent at Lenox Village within the Lenox Portfolio. | ||||||||||||||
(2) One multifamily community, two student housing properties, two grocery-anchored shopping centers and two office buildings are owned through consolidated joint ventures. One grocery-anchored shopping center is an investment in an unconsolidated joint venture. | ||||||||||||||
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and is not included in the totals above for New Market Properties. | ||||||||||||||
(4) Excludes our 251 Armour property, comprising 35,000 rentable square feet that is under development and our 4th & Brevard land parcel, that is slated for future development. |
As of: | ||||||
September 30, 2019 | December 31, 2018 | |||||
Multifamily communities: | ||||||
Properties (1) | 34 | (1) | 32 | |||
Units | 10,245 | 9,768 | ||||
New Market Properties: | ||||||
Properties | 50 | (2) | 45 | |||
Gross leasable area (square feet) (3) | 5,644,427 | 4,730,695 | ||||
Student housing properties: | ||||||
Properties | 8 | 7 | ||||
Units | 2,011 | 1,679 | ||||
Beds | 6,095 | 5,208 | ||||
Preferred Office Properties: | ||||||
Properties | 9 | (2) | 7 | |||
Rentable square feet | 2,913,000 | 2,578,000 | ||||
(1) The acquired second phases of CityPark View and Crosstown Walk communities are managed in combination with the initial phases and so together are considered a single property, as are the Lenox Village and Regent at Lenox Village assets within the Lenox Portfolio. | ||||||
(2) One property is owned through a consolidated joint venture. | ||||||
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and is not included in the totals above for New Market Properties. |
Lake Cameron | Stone Rise | |||||||
(In thousands) | March 20, 2018 | September 28, 2018 | ||||||
Real estate assets: | ||||||||
Land | $ | 4,000 | $ | 6,950 | ||||
Building and improvements | 21,519 | 18,860 | ||||||
Furniture, fixtures and equipment | 3,687 | 3,292 | ||||||
Accumulated depreciation | (7,220 | ) | (6,722 | ) | ||||
Total assets, net | $ | 21,986 | $ | 22,380 | ||||
Liabilities: | ||||||||
Mortgage note payable | $ | 19,736 | $ | 23,520 |
Acquisition date | Property | Location | Units | |||||||||||||||||
680 | ||||||||||||||||||||
Multifamily Community acquired during the nine-month period ended | ||||||||
(In thousands, except amortization period data) | September 30, 2020 | |||||||
Land | $ | 12,945 | ||||||
Buildings and improvements | 100,113 | |||||||
Furniture, fixtures and equipment | 26,284 | |||||||
Lease intangibles | 5,968 | |||||||
Prepaids & other assets | 24 | |||||||
Accrued taxes | (437) | |||||||
Security deposits, prepaid rents, and other liabilities | (384) | |||||||
Net assets acquired | $ | 144,513 | ||||||
Cash paid | $ | 99,476 | ||||||
Mortgage debt, net | 45,037 | |||||||
Total consideration | $ | 144,513 | ||||||
Three-months ended September 30, 2020 | ||||||||
Revenue | $ | 2,883 | ||||||
Net income (loss) | $ | (1,832) | ||||||
Nine-months ended September 30, 2020 | ||||||||
Revenue | $ | 5,258 | ||||||
Net income (loss) | $ | (4,018) | ||||||
Capitalized acquisition costs incurred by the Company | $ | 4,085 | ||||||
Acquisition costs paid to related party (included above) | $ | 0 | ||||||
Remaining amortization period of intangible | ||||||||
assets and liabilities (months) | 11.5 | |||||||
Multifamily Communities acquired during the nine months ended September 30, | ||||||||
(In thousands, except amortization period data) | 2019 | 2018 | ||||||
Land | $ | 9,264 | $ | 18,410 | ||||
Buildings and improvements | 87,098 | 116,767 | ||||||
Furniture, fixtures and equipment | 19,806 | 27,905 | ||||||
Lease intangibles | 2,647 | 5,681 | ||||||
Prepaids & other assets | 75 | 238 | ||||||
Accrued taxes | (477 | ) | (684 | ) | ||||
Security deposits, prepaid rents, and other liabilities | (118 | ) | (342 | ) | ||||
Net assets acquired | $ | 118,295 | $ | 167,975 | ||||
Cash paid | $ | 78,295 | $ | 55,015 | ||||
Mortgage debt, net | 40,000 | 112,960 | ||||||
Total consideration | $ | 118,295 | $ | 167,975 | ||||
Three months ended September 30, 2019: | ||||||||
Revenue | $ | 842 | $ | 3,851 | ||||
Net income (loss) | $ | (522 | ) | $ | (1,286 | ) | ||
Nine months ended September 30, 2019: | ||||||||
Revenue | $ | 842 | $ | 11,481 | ||||
Net income (loss) | $ | (522 | ) | $ | (4,978 | ) | ||
Capitalized acquisition costs incurred by the Company | $ | 1,771 | $ | 3,117 | ||||
Acquisition costs paid to related party (included above) | $ | 1,216 | 1,685 | |||||
Remaining amortization period of intangible | ||||||||
assets and liabilities (months) | 8.9 | 0 | ||||||
Acquisition date | Property | Location | Units | Beds | ||||||
3/27/2019 | Haven49 (1) | Charlotte, NC | 322 | 887 | ||||||
5/10/2018 | The Tradition | College Station, TX | 427 | 808 | ||||||
5/31/2018 | The Retreat at Orlando | Orlando, FL | 221 | 894 | ||||||
6/27/2018 | The Bloc | Lubbock, TX | 140 | 556 | ||||||
788 | 2,258 | |||||||||
(1) The Company effectuated the acquisition via a negotiated agreement whereby the Company accepted the membership interest in the Haven49 project entity in satisfaction of the project indebtedness owed to the Company. See Note 4. |
Student housing property acquired during the nine-month period ended | ||||||||
(In thousands, except amortization period data) | September 30, 2019 | |||||||
Land | $ | 7,289 | ||||||
Buildings and improvements | 68,163 | |||||||
Furniture, fixtures and equipment | 16,966 | |||||||
Lease intangibles | 983 | |||||||
Accrued taxes | (158) | |||||||
Security deposits, prepaid rents, and other liabilities | (2,579) | |||||||
Net assets acquired | $ | 90,664 | ||||||
Satisfaction of loan receivables | $ | 46,397 | ||||||
Cash paid | 2,717 | |||||||
Mortgage debt, net | 41,550 | |||||||
Total consideration | $ | 90,664 | ||||||
Three-months ended September 30, 2020 | ||||||||
Revenue | $ | 2,042 | ||||||
Net income (loss) | $ | 36 | ||||||
Nine-months ended September 30, 2020 | ||||||||
Revenue | $ | 5,980 | ||||||
Net income (loss) | $ | 307 | ||||||
Capitalized acquisition costs incurred by the Company | $ | 1,016 | ||||||
Acquisition costs paid to related party | $ | 936 | ||||||
Remaining amortization period of intangible | ||||||||
assets and liabilities (months) | 0 |
Student housing properties acquired during the nine-month periods ended September 30, | ||||||||
(In thousands, except amortization period data) | 2019 | 2018 | ||||||
Land | $ | 7,289 | $ | 23,149 | ||||
Buildings and improvements | 68,163 | 146,856 | ||||||
Furniture, fixtures and equipment | 16,966 | 27,211 | ||||||
Lease intangibles | 983 | 2,493 | ||||||
Below market leases | — | (54 | ) | |||||
Prepaids & other assets | — | 309 | ||||||
Accrued taxes | (158 | ) | (942 | ) | ||||
Security deposits, prepaid rents, and other liabilities | (2,579 | ) | (719 | ) | ||||
Net assets acquired | $ | 90,664 | $ | 198,303 | ||||
Satisfaction of loan receivables | $ | 46,397 | $ | — | ||||
Cash paid | 2,717 | 92,212 | ||||||
Mortgage debt, net | 41,550 | 106,091 | ||||||
Total consideration | $ | 90,664 | $ | 198,303 | ||||
Three-month period ended September 30, 2019: | ||||||||
Revenue | $ | 1,914 | $ | 4,500 | ||||
Net income (loss) | $ | 32 | $ | (1,260 | ) | |||
Nine-month period ended September 30, 2019: | ||||||||
Revenue | $ | 3,529 | $ | 13,103 | ||||
Net income (loss) | $ | (1,892 | ) | $ | (5,313 | ) | ||
Capitalized acquisition costs incurred by the Company | $ | 1,016 | $ | 2,555 | ||||
Acquisition costs to related party | $ | 936 | $ | 1,970 | ||||
Remaining amortization period of intangible | ||||||||
assets and liabilities (months) | 0 | 0 |
Acquisition date | Property | Location | Gross leasable area (square feet) | |||||||||||||||||
1/ | ||||||||||||||||||||
3/19/2020 | Midway Market | Dallas, Texas | 85,599 | |||||||||||||||||
161,526 | ||||||||||||||||||||
1/17/2019 | Gayton Crossing | Richmond, Virginia | 158,316 | |||||||||||||||||
5/28/2019 | Free State Shopping Center | Washington, D.C. | 264,152 | |||||||||||||||||
6/12/2019 | Disston Plaza | Tampa - St. Petersburg, Florida | 129,150 | |||||||||||||||||
6/12/2019 | Polo Grounds Mall | West Palm Beach, Florida | 130,285 | |||||||||||||||||
8/16/2019 | Fairfield Shopping Center (1) | Virginia Beach, | 231,829 | |||||||||||||||||
913,732 | ||||||||||||||||||||
(1) Property is owned through a consolidated joint venture. | ||||||||||||||||||||
New Market Properties' acquisitions during the nine-month periods ended September 30, | ||||||||||||||
(In thousands, except amortization period data) | 2020 | 2019 | ||||||||||||
Land | $ | 9,328 | $ | 57,916 | ||||||||||
Buildings and improvements | 12,264 | 101,873 | ||||||||||||
Tenant improvements | 2,099 | 8,230 | ||||||||||||
In-place leases | 3,043 | 16,080 | ||||||||||||
Above market leases | 107 | 2,759 | ||||||||||||
Leasing costs | 1,237 | 5,768 | ||||||||||||
Below market leases | (359) | (10,537) | ||||||||||||
Prepaid taxes and other assets | 61 | 98 | ||||||||||||
Security deposits, prepaid rents, and other | (249) | (748) | ||||||||||||
Net assets acquired | $ | 27,531 | $ | 181,439 | ||||||||||
Cash paid | $ | 19,640 | $ | 65,526 | ||||||||||
Mortgage debt | 7,891 | 115,913 | ||||||||||||
Total consideration | $ | 27,531 | $ | 181,439 | ||||||||||
Three-month period ended September 30, 2020 | ||||||||||||||
Revenue | $ | 678 | $ | 3,976 | ||||||||||
Net income (loss) | $ | 5 | $ | (997) | ||||||||||
Nine-month period ended September 30, 2020 | ||||||||||||||
Revenue | $ | 1,723 | $ | 13,094 | ||||||||||
Net income (loss) | $ | 59 | $ | (2,126) | ||||||||||
Capitalized acquisition costs incurred by the Company | $ | 470 | $ | 4,022 | ||||||||||
Capitalized acquisition costs paid to related party (included above) | $ | 249 | $ | 1,799 | ||||||||||
Remaining amortization period of intangible | ||||||||||||||
assets and liabilities (years) | 10.2 | 8.0 |
New Market Properties' acquisitions during the nine-month periods ended September 30, | ||||||||
(In thousands, except amortization period data) | 2019 | 2018 | ||||||
Land | $ | 57,916 | $ | 33,290 | ||||
Buildings and improvements | 101,873 | 67,595 | ||||||
Tenant improvements | 8,230 | 5,225 | ||||||
In-place leases | 16,080 | 7,795 | ||||||
Above market leases | 2,759 | 1,383 | ||||||
Leasing costs | 5,768 | 3,152 | ||||||
Below market leases | (10,537 | ) | (4,359 | ) | ||||
Other assets | 98 | 33 | ||||||
Security deposits, prepaid rents, and other | (748 | ) | (963 | ) | ||||
Net assets acquired | $ | 181,439 | $ | 113,151 | ||||
Cash paid | $ | 65,526 | $ | 64,918 | ||||
Mortgage debt | 115,913 | 48,233 | ||||||
Total consideration | $ | 181,439 | $ | 113,151 | ||||
Three-month period ended September 30, 2019: | ||||||||
Revenue | $ | 4,235 | $ | 2,663 | ||||
Net income (loss) | $ | (330 | ) | $ | (134 | ) | ||
Nine-month period ended September 30, 2019: | ||||||||
Revenue | $ | 6,413 | $ | 8,023 | ||||
Net income (loss) | $ | (800 | ) | $ | (401 | ) | ||
Capitalized acquisition costs incurred by the Company | $ | 4,022 | $ | 1,612 | ||||
Capitalized acquisition costs paid to related party (included above) | $ | 1,799 | $ | 1,164 | ||||
Remaining amortization period of intangible | ||||||||
assets and liabilities (years) | 8.3 | 7.3 |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Depreciation: | ||||||||||||||||||||||||||
Buildings and improvements | $ | 29,050 | $ | 25,509 | $ | 85,811 | $ | 72,686 | ||||||||||||||||||
Furniture, fixtures, and equipment | 12,817 | 12,296 | 38,132 | 37,961 | ||||||||||||||||||||||
41,867 | 37,805 | 123,943 | 110,647 | |||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||
Acquired intangible assets | 9,510 | 8,169 | 27,873 | 25,732 | ||||||||||||||||||||||
Deferred leasing costs | 368 | 217 | 1,132 | 670 | ||||||||||||||||||||||
Website development costs | 49 | 48 | 148 | 142 | ||||||||||||||||||||||
Total depreciation and amortization | $ | 51,794 | $ | 46,239 | $ | 153,096 | $ | 137,191 |
Preferred Office Properties' acquisitions during the nine-month periods ended September 30, | ||||||||
(In thousands, except amortization period data) | 2019 | 2018 | ||||||
Land | $ | 13,287 | $ | 22,829 | ||||
Buildings and improvements | 110,815 | 176,869 | ||||||
Tenant improvements | 6,489 | 18,132 | ||||||
In-place leases | 6,999 | 14,650 | ||||||
Above-market leases | 1,085 | 3,114 | ||||||
Leasing costs | 3,037 | 8,501 | ||||||
Below-market leases | (1,827 | ) | (5,194 | ) | ||||
Prepaid and other assets | — | 1,365 | ||||||
Accrued taxes | (98 | ) | (17 | ) | ||||
Security deposits, prepaid rents, and other liabilities | (238 | ) | (9,650 | ) | ||||
Net assets acquired | $ | 139,549 | $ | 230,599 | ||||
Cash paid | $ | 56,899 | $ | 76,199 | ||||
Mortgage debt, net | 82,650 | 154,400 | ||||||
Total consideration | $ | 139,549 | $ | 230,599 | ||||
Three-month period ended September 30, 2019: | ||||||||
Revenue | $ | 2,257 | 5,974 | |||||
Net income (loss) | $ | (342 | ) | (289 | ) | |||
Nine-month period ended September 30, 2019: | ||||||||
Revenue | $ | 2,257 | 17,446 | |||||
Net income (loss) | $ | (342 | ) | (1,563 | ) | |||
Capitalized acquisition costs incurred by the Company | $ | 1,734 | $ | 3,405 | ||||
Acquisition costs paid to related party (included above) | $ | 1,433 | $ | 2,395 | ||||
Remaining amortization period of intangible | ||||||||
assets and liabilities (years) | 7.4 | 6.2 |
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Depreciation: | ||||||||||||||||
Buildings and improvements | $ | 25,509 | $ | 21,084 | $ | 72,686 | $ | 56,918 | ||||||||
Furniture, fixtures, and equipment | 12,296 | 12,314 | 37,961 | 34,224 | ||||||||||||
37,805 | 33,398 | 110,647 | 91,142 | |||||||||||||
Amortization: | ||||||||||||||||
Acquired intangible assets | 8,169 | 10,874 | 25,732 | 35,583 | ||||||||||||
Deferred leasing costs | 217 | 184 | 670 | 380 | ||||||||||||
Website development costs | 48 | 43 | 142 | 105 | ||||||||||||
Total depreciation and amortization | $ | 46,239 | $ | 44,499 | $ | 137,191 | $ | 127,210 |
(in thousands) | September 30, 2020 | |||||||
Total assets | $ | 39,843 | ||||||
Total liabilities | $ | 26,142 |
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2020 | 2020 | |||||||||||||
Rental and other property revenues | $ | 651 | $ | 651 | ||||||||||
Total operating expenses | $ | 797 | $ | 797 | ||||||||||
Interest expense | $ | 94 | $ | 94 | ||||||||||
Net income (loss) | $ | (240) | $ | (240) | ||||||||||
Net income (loss) attributable to the Company | $ | (120) | $ | (120) |
September 30, 2020 | December 31, 2019 | |||||||||||||
Number of loans | 25 | 27 | ||||||||||||
Number of underlying properties in development | 18 | 19 | ||||||||||||
(In thousands) | ||||||||||||||
Drawn amount | $ | 323,629 | $ | 352,582 | ||||||||||
Deferred loan origination fees | (1,567) | (1,476) | ||||||||||||
Allowance for loan losses | (12,461) | (1,400) | ||||||||||||
Carrying value | $ | 309,601 | $ | 349,706 | ||||||||||
Unfunded loan commitments | $ | 62,964 | $ | 61,718 | ||||||||||
Weighted average current interest, per annum (paid monthly) | 8.50 | % | 8.48 | % | ||||||||||
Weighted average accrued interest, per annum | 3.84 | % | 3.85 | % |
(In thousands) | September 30, 2019 | December 31, 2018 | ||||||
Number of loans | 21 | 19 | ||||||
Drawn amount | $ | 383,216 | $ | 336,329 | ||||
Deferred loan origination fees | (1,730 | ) | (2,118 | ) | ||||
Carrying value | $ | 381,486 | $ | 334,211 | ||||
Unfunded loan commitments | $ | 74,656 | $ | 164,913 | ||||
Weighted average current interest, per annum (paid monthly) | 8.48 | % | 8.47 | % | ||||
Weighted average accrued interest, per annum | 3.66 | % | 5.24 | % |
(In thousands) | Principal balance | Deferred loan origination fees | Allowances and CECL Reserves | Carrying value | ||||||||||||||||||||||
Balances as of December 31, 2019 | $ | 352,582 | $ | (1,476) | $ | (1,400) | $ | 349,706 | ||||||||||||||||||
Opening CECL reserve | — | — | (7,414) | (7,414) | ||||||||||||||||||||||
Loan fundings | 42,193 | — | — | 42,193 | ||||||||||||||||||||||
Loan repayments | (71,146) | — | — | (71,146) | ||||||||||||||||||||||
Loan origination fees collected | — | (882) | — | (882) | ||||||||||||||||||||||
Amortization of loan origination fees | — | 791 | — | 791 | ||||||||||||||||||||||
Reserve increases due to loan originations | — | — | (767) | (767) | ||||||||||||||||||||||
Net increases in reserves on existing loans or loans repaid | — | — | (2,880) | (2,880) | ||||||||||||||||||||||
Balances as of September 30, 2020 | $ | 323,629 | $ | (1,567) | $ | (12,461) | $ | 309,601 |
Property type | Number of loans | Carrying value | Commitment amount | Percentage of portfolio | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Residential properties | 24 | $ | 299,219 | $ | 367,400 | 97 | % | |||||||||||||||||||
New Market Properties | 0 | 0 | 0 | 0 | % | |||||||||||||||||||||
Preferred Office Properties | 1 | 10,382 | 19,193 | 3 | % | |||||||||||||||||||||
Balances as of September 30, 2020 | 25 | $ | 309,601 | $ | 386,593 |
(In thousands) | Principal balance | Deferred loan origination fees | Loan loss allowance | Carrying value | ||||||||||||
Balances as of December 31, 2018 | $ | 336,329 | $ | (2,118 | ) | $ | — | $ | 334,211 | |||||||
Loan fundings | 74,668 | — | — | 74,668 | ||||||||||||
Loans settled with acquisitions | (27,781 | ) | — | — | (27,781 | ) | ||||||||||
Loan origination fees collected | — | (674 | ) | — | (674 | ) | ||||||||||
Amortization of loan origination fees | — | 1,062 | — | 1,062 | ||||||||||||
Balances as of September 30, 2019 | $ | 383,216 | $ | (1,730 | ) | $ | — | $ | 381,486 |
Property type | Number of loans | Carrying value | Commitment amount | Percentage of portfolio | ||||||||||
(In thousands) | ||||||||||||||
Multifamily communities | 16 | $ | 326,839 | $ | 385,373 | 86 | % | |||||||
Student housing properties | 3 | 38,582 | 40,448 | 10 | % | |||||||||
New Market Properties | 1 | 12,857 | 12,857 | 3 | % | |||||||||
Preferred Office Properties | 1 | 3,208 | 19,193 | 1 | % | |||||||||
Balances as of September 30, 2019 | 21 | $ | 381,486 | $ | 457,871 |
Final reserve ratio | Number of loans | Total receivables by project, net of reserves (in thousands) | ||||||||||||
— | % | 3 | $ | 28,921 | ||||||||||
0.50 | % | 10 | 108,630 | |||||||||||
1.00 | % | 3 | 17,876 | |||||||||||
1.50 | % | 4 | 26,729 | |||||||||||
3.00 | % | 3 | 27,902 | |||||||||||
4.00 | % | 1 | 126,768 | |||||||||||
5.00% + | 1 | 3,776 | ||||||||||||
25 | $ | 340,602 |
(In thousands) | ||||||||||||||||
Rating indicator | Principal balance | Accrued interest | Receivables for purchase option terminations | Total | ||||||||||||
A | $ | 377,100 | $ | 26,669 | $ | 8,340 | $ | 412,109 | ||||||||
B | — | — | — | — | ||||||||||||
C | 6,116 | 1,208 | — | 7,324 | ||||||||||||
D | — | — | — | — | ||||||||||||
$ | 383,216 | $ | 27,877 | $ | 8,340 | $ | 419,433 |
Borrower | Date of loan | Maturity date | Total loan commitments | Outstanding balance as of: | Interest rate | ||||||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Preferred Capital Marketing Services, LLC (1) | N/A | N/A | $ | 0 | $ | 0 | $ | 650 | N/A | ||||||||||||||||||||||||||||||||
Preferred Apartment Advisors, LLC (1) | N/A | N/A | 0 | 0 | 15,178 | N/A | |||||||||||||||||||||||||||||||||||
Haven Campus Communities, LLC (1,2) | 6/11/2014 | 12/31/2018 | 11,660 | 9,011 | 9,011 | 8 | % | ||||||||||||||||||||||||||||||||||
Newport Development Partners, LLC | 6/17/2014 | 6/30/2021 | 1,000 | 0 | 0 | 12 | % | ||||||||||||||||||||||||||||||||||
Oxford Capital Partners, LLC (3) | 10/5/2015 | 6/30/2021 | 8,000 | 1,006 | 5,438 | 10 | % | ||||||||||||||||||||||||||||||||||
Mulberry Development Group, LLC (4) | 3/31/2016 | 6/30/2021 | 750 | 670 | 525 | 12 | % | ||||||||||||||||||||||||||||||||||
360 Capital Company, LLC (4) | 5/24/2016 | 12/31/2020 | 3,400 | 1,218 | 3,394 | 12 | % | ||||||||||||||||||||||||||||||||||
360 Capital Company, LLC (1) | 7/24/2018 | N/A | 0 | 0 | 7,754 | N/A | |||||||||||||||||||||||||||||||||||
Unamortized loan fees | — | 0 | (33) | ||||||||||||||||||||||||||||||||||||||
$ | 24,810 | $ | 11,905 | $ | 41,917 | ||||||||||||||||||||||||||||||||||||
(1) See related party disclosure in Note 6. | |||||||||||||||||||||||||||||||||||||||||
(2) The amount payable under the note is collateralized by one of the principals of the borrower's 49.49% interest in an unrelated shopping center located in Atlanta, Georgia and a personal guaranty of repayment by the principals of the borrower. | |||||||||||||||||||||||||||||||||||||||||
(3) The amounts payable under the terms of this revolving credit line, up to the lesser of 25% of the loan balance or $2.0 million, are collateralized by a personal guaranty of repayment by the principals of the borrower. The overall decrease in the Oxford LOC balance is a function of an approximate $5.0 million paydown on July 31, 2020, that was required as part of the LOC agreement whenever a Capital Transaction involving the Manassas Palisades property occurred. This property was sold on July 31, 2020 and the related mezz loan was repaid to PAC. Therefore, a corresponding paydown on the Oxford LOC was made to reduce the sum of the principal balance. | |||||||||||||||||||||||||||||||||||||||||
(4) The amounts payable under the terms of these revolving credit lines are collateralized by a personal guaranty of repayment by the principals of the borrower. |
Borrower | Date of loan | Maturity date | Total loan commitments | Outstanding balance as of: | Interest rate | |||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Preferred Capital Marketing Services, LLC (1) | 1/24/2013 | 12/31/2019 | $ | 1,500 | $ | 650 | $ | 763 | 10 | % | ||||||||||
Preferred Apartment Advisors, LLC (1,2) | 8/21/2012 | 12/31/2019 | 22,000 | 14,299 | 9,778 | 7.5 | % | (3) | ||||||||||||
Haven Campus Communities, LLC (1,4) | 6/11/2014 | 12/31/2018 | 11,660 | 9,011 | 11,620 | 8 | % | |||||||||||||
Oxford Capital Partners, LLC (5) | 10/5/2015 | 6/30/2020 | 8,000 | 5,313 | 4,022 | 10 | % | |||||||||||||
Newport Development Partners, LLC | 6/17/2014 | 6/30/2020 | 2,000 | 920 | — | 12 | % | |||||||||||||
Mulberry Development Group, LLC (6) | 3/31/2016 | 6/30/2020 | 750 | 525 | 465 | 12 | % | |||||||||||||
360 Capital Company, LLC (6) | 5/24/2016 | 12/31/2019 | 3,400 | 3,394 | 3,100 | 12 | % | |||||||||||||
360 Capital Company, LLC (7) | 7/24/2018 | 12/31/2020 | 8,000 | 7,588 | 6,923 | 8.5 | % | |||||||||||||
Haven Campus Communities Charlotte Member, LLC (1) | 8/31/2018 | N/A | — | — | 10,788 | 15 | % | |||||||||||||
Unamortized loan fees | (43 | ) | (152 | ) | ||||||||||||||||
$ | 57,310 | $ | 41,657 | $ | 47,307 | |||||||||||||||
(1) See related party disclosure in Note 6. | ||||||||||||||||||||
(2) The amounts payable under this revolving credit line were collateralized by an assignment of the Manager's rights to fees due under the Sixth Amended and Restated Management Agreement between the Company and the Manager, or the Management Agreement. | ||||||||||||||||||||
(3) Effective January 1, 2019, the interest rate was increased from 6.0% per annum to 7.5% per annum and the maturity date was extended to December 31, 2019. | ||||||||||||||||||||
(4) The amount payable under this note is collateralized by one of the principals of the borrower's 49.49% interest in an unrelated shopping center located in Atlanta, Georgia and a personal guaranty of repayment by the principals of the borrower. | ||||||||||||||||||||
(5) The amounts payable under the terms of this revolving credit line, up to the lesser of 25% of the loan balance or $2.0 million, are collateralized by a personal guaranty of repayment by the principals of the borrower. | ||||||||||||||||||||
(6) The amounts payable under the terms of these revolving credit lines are collateralized by a personal guaranty of repayment by the principals of the borrower. | ||||||||||||||||||||
(7) The amount payable under the note is collateralized by the developer's interest in the Fort Myers multifamily community project and a personal guaranty of repayment by the principals of the borrower. |
Interest income | Three month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||
Current interest | $ | 6,921 | $ | 8,083 | $ | 21,070 | $ | 23,031 | ||||||||||||||||||
Additional accrued interest | 3,052 | 3,471 | 9,208 | 10,040 | ||||||||||||||||||||||
Loan origination fee amortization | 264 | 283 | 791 | 1,063 | ||||||||||||||||||||||
Purchase option termination fee amortization | 421 | 1,283 | 4,896 | 6,900 | ||||||||||||||||||||||
Default interest | 63 | 0 | 186 | 0 | ||||||||||||||||||||||
Total real estate loan revenue | 10,721 | 13,120 | 36,151 | 41,034 | ||||||||||||||||||||||
Notes and lines of credit | 536 | 1,865 | 2,056 | 4,278 | ||||||||||||||||||||||
Bank and money market accounts | 1 | 169 | 38 | 562 | ||||||||||||||||||||||
Agency mortgage-backed securities | 0 | 0 | 0 | 95 | ||||||||||||||||||||||
Interest income on loans and notes receivable | $ | 11,258 | $ | 15,154 | $ | 38,245 | $ | 45,969 |
Interest income | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Real estate loans: | ||||||||||||||||
Current interest payments | $ | 8,083 | $ | 6,974 | $ | 23,031 | $ | 24,164 | ||||||||
Additional accrued interest | 3,471 | 4,391 | 10,040 | 14,587 | ||||||||||||
Origination fee amortization | 283 | 250 | 1,063 | 1,288 | ||||||||||||
Purchase option termination fee amortization | 1,283 | 4,791 | 6,900 | 7,261 | ||||||||||||
Total real estate loan revenue | 13,120 | 16,406 | 41,034 | 47,300 | ||||||||||||
Interest income on notes and lines of credit | 1,865 | 883 | 4,278 | 2,586 | ||||||||||||
Interest income from bank and money market accounts | 169 | — | 562 | — | ||||||||||||
Interest income from agency mortgage-backed securities | — | — | 95 | — | ||||||||||||
Interest income on loans and notes receivable | $ | 15,154 | $ | 17,289 | $ | 45,969 | $ | 49,886 |
(In thousands) | Deferred Offering Costs | |||||||||||||||||||||||||||||||||||||||||||
Offering | Total offering | Gross proceeds as of September 30, 2020 | Reclassified as reductions of stockholders' equity | Recorded as deferred assets | Total | Specifically identifiable offering costs (3) | Total offering costs | |||||||||||||||||||||||||||||||||||||
$1.5 Billion Unit Offering (1) | 1,500,000 | $ | 1,236,414 | $ | 15,874 | $ | 0 | $ | 15,874 | $ | 115,650 | $ | 131,524 | |||||||||||||||||||||||||||||||
Series A1/M1 Offering | 1,000,000 | 115,893 | 426 | 3,251 | 3,677 | 11,023 | 14,700 | |||||||||||||||||||||||||||||||||||||
2019 Shelf Offering (2) | 400,000 | 4,614 | 22 | 975 | 997 | 92 | 1,089 | |||||||||||||||||||||||||||||||||||||
Preferred Office Growth Fund | 100,000 | 0 | 0 | 495 | 495 | 3 | 498 | |||||||||||||||||||||||||||||||||||||
Total | $ | 3,000,000 | $ | 1,356,921 | $ | 16,322 | $ | 4,721 | $ | 21,043 | $ | 126,768 | $ | 147,811 |
(In thousands) | Deferred Offering Costs | ||||||||||||||||||||||||||||
Offering | Total offering | Gross proceeds as of September 30, 2019 | Reclassified as reductions of stockholders' equity | Recorded as deferred assets | Total | Specifically identifiable offering costs (1) | Total offering costs | ||||||||||||||||||||||
$1.5 Billion Unit Offering | $ | 1,500,000 | $ | 1,057,127 | $ | 7,327 | $ | 1,336 | $ | 8,663 | $ | 99,510 | $ | 108,173 | |||||||||||||||
mShares Offering | 500,000 | 90,991 | 3,468 | 344 | 3,812 | 3,451 | 7,263 | ||||||||||||||||||||||
2016 Shelf Offering | 300,000 | (2 | ) | 98,080 | 2,062 | — | 2,062 | 3,001 | 5,063 | ||||||||||||||||||||
2019 Shelf Offering | 400,000 | (3 | ) | — | — | 819 | 819 | — | 819 | ||||||||||||||||||||
Series A1/M1 Offering | 1,000,000 | (4 | ) | — | — | 305 | 305 | — | 305 | ||||||||||||||||||||
Total | $ | 3,700,000 | $ | 1,246,198 | $ | 12,857 | $ | 2,804 | $ | 15,661 | $ | 105,962 | $ | 121,623 |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||||||||
Type of Compensation | Basis of Compensation | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
Acquisition fees | 1.0% of the gross purchase price of real estate assets | $ | 0 | $ | 2,864 | $ | 235 | $ | 5,467 | |||||||||||||||||||||||
Loan origination fees | 1.0% of the maximum commitment of any real estate loan, note or line of credit receivable | 0 | 148 | 0 | 674 | |||||||||||||||||||||||||||
Loan coordination fees | 0.6% of any assumed, new or supplemental debt incurred in connection with an acquired property | 0 | 1,100 | 47 | 2,065 | |||||||||||||||||||||||||||
Asset management fees | Monthly fee equal to one-twelfth of 0.50% of the total book value of assets, as adjusted | 0 | 3,981 | 1,349 | 11,546 | |||||||||||||||||||||||||||
Property management fees | Monthly fee up to 4% of the monthly gross revenues of the properties managed | 0 | 2,557 | 890 | 7,509 | |||||||||||||||||||||||||||
General and administrative expense fees | Monthly fee equal to 2% of the monthly gross revenues of the Company | 0 | 1,557 | 616 | 4,624 | |||||||||||||||||||||||||||
Construction management fees | Quarterly fee for property renovation and takeover projects | 0 | 73 | 14 | 208 | |||||||||||||||||||||||||||
Disposition fees | 1% of the sale price of a real estate asset | 0 | 0 | 0 | 16 | |||||||||||||||||||||||||||
$ | 0 | $ | 12,280 | $ | 3,151 | $ | 32,109 |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||
Type of Compensation | Basis of Compensation | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Acquisition fees | 1.0% of the gross purchase price of real estate assets | $ | 2,864 | $ | 2,606 | $ | 5,467 | $ | 7,226 | |||||||||
Loan origination fees | 1.0% of the maximum commitment of any real estate loan, note or line of credit receivable | 148 | 249 | 674 | 1,460 | |||||||||||||
Loan coordination fees | 0.6% of any assumed, new or supplemental debt incurred in connection with an acquired property | 1,100 | 1,048 | 2,065 | 2,602 | |||||||||||||
Asset management fees | Monthly fee equal to one-twelfth of 0.50% of the total book value of assets, as adjusted | 3,981 | 3,742 | 11,546 | 11,007 | |||||||||||||
Property management fees | Monthly fee up to 4% of the monthly gross revenues of the properties managed | 2,557 | 2,331 | 7,509 | 6,572 | |||||||||||||
General and administrative expense fees | Monthly fee equal to 2% of the monthly gross revenues of the Company | 1,557 | 1,560 | 4,624 | 4,528 | |||||||||||||
Construction management fees | Quarterly fee for property renovation and takeover projects | 73 | 93 | 208 | 366 | |||||||||||||
Disposition fees | 1% of the sale price of a real estate asset | — | 425 | 16 | 860 | |||||||||||||
$ | 12,280 | $ | 12,054 | $ | 32,109 | $ | 34,621 |
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
$ | 0 | $ | 4,681 | $ | 1,430 | $ | 12,973 |
(In thousands) | ||||||||||||||
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
$ | 4,681 | $ | 4,501 | $ | 12,973 | $ | 12,040 |
Dividends and distributions declared | ||||||||||||||
For the nine-month periods ended September 30, | ||||||||||||||
(In thousands) | 2020 | 2019 | ||||||||||||
Series A Preferred Stock | $ | 97,272 | $ | 79,351 | ||||||||||
mShares | 4,903 | 3,176 | ||||||||||||
Series A1 Preferred Stock | 2,209 | 0 | ||||||||||||
Series M1 Preferred Stock | 217 | 0 | ||||||||||||
Common Stock | 29,895 | 34,599 | ||||||||||||
Restricted Stock and Class A OP Units | 559 | 683 | ||||||||||||
Total | $ | 135,055 | $ | 117,809 |
Dividends and distributions declared | ||||||||
For the nine-month periods ended September 30, | ||||||||
2019 | 2018 | |||||||
(In thousands) | ||||||||
Series A Preferred Stock | $ | 79,351 | $ | 61,558 | ||||
mShares | 3,176 | 1,243 | ||||||
Common Stock | 34,599 | 30,283 | ||||||
Class A OP Units | 683 | 813 | ||||||
Total | $ | 117,809 | $ | 93,897 |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | Unamortized expense as of September 30, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | |||||||||||||||||||||||||||||||
Class B Unit awards to employees: | |||||||||||||||||||||||||||||||||||
2016 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | |||||||||||||||||||||||||
2017 | 0 | 78 | 3 | 234 | 0 | ||||||||||||||||||||||||||||||
2018 | 70 | 72 | 191 | 215 | 71 | ||||||||||||||||||||||||||||||
Restricted stock grants to Board members: | |||||||||||||||||||||||||||||||||||
2018 | 0 | 0 | 0 | 120 | 0 | ||||||||||||||||||||||||||||||
2019 | 0 | 106 | 140 | 176 | 0 | ||||||||||||||||||||||||||||||
2020 | 133 | 0 | 222 | 0 | 310 | ||||||||||||||||||||||||||||||
Restricted stock grants for employees: | |||||||||||||||||||||||||||||||||||
2020 | 242 | 0 | 279 | 0 | 3,601 | ||||||||||||||||||||||||||||||
Performance-based restricted stock units: | |||||||||||||||||||||||||||||||||||
2020 | 92 | 0 | 92 | 0 | 1,753 | ||||||||||||||||||||||||||||||
Restricted stock units to employees: | |||||||||||||||||||||||||||||||||||
2017 | 0 | 15 | 0 | 53 | 0 | ||||||||||||||||||||||||||||||
2018 | 14 | 15 | 38 | 55 | 19 | ||||||||||||||||||||||||||||||
2019 | 16 | 19 | 47 | 67 | 94 | ||||||||||||||||||||||||||||||
2020 | 15 | 0 | 46 | 0 | 137 | ||||||||||||||||||||||||||||||
Total | $ | 582 | $ | 305 | $ | 1,058 | $ | 922 | $ | 5,985 |
Level | Relative TSR performance (percentile rank versus peers) | Earned PSUs (% of target) | ||||||
< Threshold | <35th Percentile | 0% | ||||||
Threshold | 35th Percentile | 50% | ||||||
Target | 55th Percentile | 100% | ||||||
Maximum | >=75th Percentile | 200% |
Stock price on grant date | $ | 7.23 | ||||||
Dividend yield | 6.87 | % | ||||||
Expected volatility | 44.40 | % | ||||||
Risk-free interest rate | 0.11 | % | ||||||
Target number of PSUs granted: | ||||||||
First vesting tranche | 136,462 | |||||||
Second vesting tranche | 136,467 | |||||||
272,929 | ||||||||
Calculated fair value per PSU | $ | 6.76 | ||||||
Total fair value of PSUs | $ | 1,845,000 | ||||||
Three-month period ended September 30, | Nine-month period ended September 30, | Unamortized expense as of September 30, | |||||||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | 2019 | ||||||||||||||||
Class B Unit awards: | |||||||||||||||||||||
2016 | $ | — | $ | 55 | $ | 2 | 203 | $ | — | ||||||||||||
2017 | 78 | 68 | 234 | 263 | 81 | ||||||||||||||||
2018 | 72 | 538 | 215 | 2,002 | 358 | ||||||||||||||||
Restricted stock grants: | |||||||||||||||||||||
2017 | — | — | — | 120 | — | ||||||||||||||||
2018 | — | 91 | 120 | 151 | — | ||||||||||||||||
2019 | 106 | — | 176 | — | 245 | ||||||||||||||||
Restricted stock units: | |||||||||||||||||||||
2017 | 15 | 19 | 53 | 62 | 17 | ||||||||||||||||
2018 | 15 | 25 | 55 | 80 | 110 | ||||||||||||||||
2019 | 19 | — | 67 | — | 200 | ||||||||||||||||
Total | $ | 305 | $ | 796 | $ | 922 | $ | 2,881 | $ | 1,011 |
Service year | Shares | Fair value per share | Total compensation cost (in thousands) | |||||||||||||||||
2017 | 24,408 | $ | 14.75 | $ | 360 | |||||||||||||||
2018 | 24,810 | $ | 14.51 | $ | 360 | |||||||||||||||
2019 | 26,446 | $ | 15.88 | $ | 420 | |||||||||||||||
2020 | 66,114 | $ | 8.05 | $ | 532 |
Service year | Shares | Fair value per share | Total compensation cost (in thousands) | ||||||||
2017 | 24,408 | $ | 14.75 | $ | 360 | ||||||
2018 | 24,810 | $ | 14.51 | $ | 360 | ||||||
2019 | 26,446 | $ | 15.88 | $ | 420 |
Grant date | ||||||||||||||
1/2/2018 | 1/3/2017 | |||||||||||||
Units granted | 256,087 | 286,392 | ||||||||||||
Units forfeited: | ||||||||||||||
John A. Williams (1) | (38,284) | 0 | ||||||||||||
Voluntary forfeiture by senior executives (2) | (128,258) | 0 | ||||||||||||
Other | (24,237) | (5,334) | ||||||||||||
Total forfeitures | (190,779) | (5,334) | ||||||||||||
Units earned and converted into Class A Units | 0 | (281,058) | ||||||||||||
Class B Units outstanding at September 30, 2020 | 65,308 | 0 | ||||||||||||
Units unearned but vested | 48,678 | 0 | ||||||||||||
Units unearned and not yet vested | 16,630 | 0 | ||||||||||||
Class B Units outstanding at September 30, 2020 | 65,308 | 0 | ||||||||||||
(1) Pro rata modification of award on April 16, 2018, the date of Mr. Williams' passing. | ||||||||||||||
(2) Additional Class B OP units granted to senior executives other than Mr. Williams were voluntarily forfeited at the end of 2018. |
Grant date | ||||||
1/2/2018 | 1/3/2017 | |||||
Units granted | 256,087 | 286,392 | ||||
Units forfeited: | ||||||
John A. Williams (1) | (38,284 | ) | — | |||
Voluntary forfeiture by senior executives | (128,258 | ) | — | |||
Other | (22,722 | ) | (5,334 | ) | ||
Total forfeitures | (189,264 | ) | (5,334 | ) | ||
Units earned and converted into Class A Units | — | (254,730 | ) | |||
Class B Units outstanding at September 30, 2019 | 66,823 | 26,328 | ||||
Units unearned but vested | 32,575 | — | ||||
Units unearned and not yet vested | 34,248 | 26,328 | ||||
Class B Units outstanding at September 30, 2019 | 66,823 | 26,328 | ||||
(1) Pro rata modification of award on April 16, 2018, the date of Mr. Williams' passing. |
Grant date | 1/2/2018 | |||||||
Stock price | $ | 20.19 | ||||||
Dividend yield | 4.95 | % | ||||||
Expected volatility | 25.70 | % | ||||||
Risk-free interest rate | 2.71 | % | ||||||
Number of Units granted: | ||||||||
One year vesting period | 171,988 | |||||||
Three year vesting period | 84,099 | |||||||
256,087 | ||||||||
Calculated fair value per Unit | $ | 16.66 | ||||||
Total fair value of Units | $ | 4,266,409 | ||||||
Target market threshold increase | $ | 5,660,580 |
Grant dates | 1/2/2018 | |||
Stock price | $ | 20.19 | ||
Dividend yield | 4.95 | % | ||
Expected volatility | 25.70 | % | ||
Risk-free interest rate | 2.71 | % | ||
Number of Units granted: | ||||
One year vesting period | 171,988 | |||
Three year vesting period | 84,099 | |||
256,087 | ||||
Calculated fair value per Unit | $ | 16.66 | ||
Total fair value of Units | $ | 4,266,409 | ||
Target market threshold increase | $ | 5,660,580 |
Grant date | 1/2/2020 | 1/2/2019 | 1/2/2018 | ||||||||||||||
Service period | 2020-2022 | 2019-2021 | 2018-2020 | ||||||||||||||
RSU activity: | |||||||||||||||||
Granted | 21,400 | 27,760 | 20,720 | ||||||||||||||
Forfeited | (2,100) | (6,581) | (6,874) | ||||||||||||||
RSUs outstanding at September 30, 2020 | 19,300 | 21,179 | 13,846 | ||||||||||||||
RSUs unearned but vested | 0 | 7,141 | 9,306 | ||||||||||||||
RSUs unearned and not yet vested | 19,300 | 14,038 | 4,540 | ||||||||||||||
RSUs outstanding at September 30, 2020 | 19,300 | 21,179 | 13,846 | ||||||||||||||
Fair value per RSU | $ | 9.47 | $ | 10.77 | $ | 16.66 | |||||||||||
Total fair value of RSU grant | $ | 202,658 | $ | 298,975 | $ | 345,195 |
Grant date | 1/2/2019 | 1/2/2018 | 1/3/2017 | ||||||||
Service period | 2019-2021 | 2018-2020 | 2017-2019 | ||||||||
RSU activity: | |||||||||||
Granted | 27,760 | 20,720 | 26,900 | ||||||||
Forfeited | (2,960 | ) | (4,760 | ) | (6,971 | ) | |||||
Units earned and converted into common stock | — | — | (14,154 | ) | |||||||
RSUs outstanding at September 30, 2019 | 24,800 | 15,960 | 5,775 | ||||||||
RSUs unearned but vested | — | 5,345 | — | ||||||||
RSUs unearned but not yet vested | 24,800 | 10,615 | 5,775 | ||||||||
RSUs outstanding at September 30, 2019 | 24,800 | 15,960 | 5,775 | ||||||||
Fair value per RSU | $ | 10.77 | $ | 16.66 | $ | 11.92 | |||||
Total fair value of RSU grant | $ | 298,975 | $ | 345,195 | $ | 320,648 |
Property | Date | Initial principal amount (in thousands) | Fixed/Variable rate | Rate | Maturity date | ||||||||
Fairfield Shopping Center | 8/16/2019 | $ | 19,750 | Variable | 1 month LIBOR + 205 | 8/16/2026 | |||||||
Artisan at Viera | 8/8/2019 | 40,000 | Fixed | 3.93 | % | 9/1/2029 | |||||||
CAPTRUST Tower | 7/25/2019 | 82,650 | Fixed | 3.61 | % | 8/1/2029 | |||||||
Disston Plaza | 6/12/2019 | 18,038 | Fixed | 3.93 | % | 7/1/2034 | |||||||
Polo Grounds Mall | 6/12/2019 | 13,325 | Fixed | 3.93 | % | 7/1/2034 | |||||||
Free State Shopping Center | 5/28/2019 | 46,800 | Fixed | 3.99 | % | 6/1/2029 | |||||||
Haven49 (1) | 3/27/2019 | 41,550 | Variable | 1 month LIBOR + 375 | 12/22/2019 | ||||||||
Gayton Crossing | 1/17/2019 | 18,000 | Fixed | 4.71 | % | 2/1/2029 | |||||||
$ | 280,113 |
Property | Date | Initial principal amount (in thousands) | Fixed/Variable rate | Interest rate | Maturity date | |||||||||||||||||||||||||||
251 Armour Yards | 1/22/2020 | $ | 3,522 | Fixed | 4.50 | % | 1/22/2025 | |||||||||||||||||||||||||
Wakefield Crossing | 1/29/2020 | 7,891 | Fixed | 3.66 | % | 2/1/2032 | ||||||||||||||||||||||||||
Morrocroft Centre | 3/19/2020 | 70,000 | Fixed | 3.40 | % | 4/10/2033 | ||||||||||||||||||||||||||
Horizon at Wiregrass Ranch | 4/23/2020 | 52,000 | Fixed | 2.90 | % | 5/1/2030 | ||||||||||||||||||||||||||
Parkside at the Beach | 4/30/2020 | 45,037 | Fixed | 2.95 | % | 5/1/2030 | ||||||||||||||||||||||||||
$ | 178,450 |
Date | Property | Previous balance (millions) | Previous interest rate / spread over 1 month LIBOR | Loan refinancing costs expensed | New balance (millions) | New interest rate | Total deferred loan costs subsequent to refinancing | |||||||||||||||||
9/17/2019 | Spring Hill Plaza | $ | 9.1 | 3.36 | % | $ | — | $ | 8.2 | 3.72 | % | $ | 195,000 | |||||||||||
9/17/2019 | Parkway Town Centre | 6.6 | 3.36 | % | — | 8.1 | 3.72 | % | 195,000 | |||||||||||||||
8/16/2019 | Deltona Landings | 6.5 | 3.48 | % | 5,000 | 6.3 | 4.18 | % | 204,000 | |||||||||||||||
8/16/2019 | Barclay Crossing | 6.1 | 3.48 | % | 4,000 | 6.3 | 4.18 | % | 209,000 | |||||||||||||||
8/16/2019 | Parkway Center | 4.3 | 3.48 | % | 3,000 | 4.6 | 4.18 | % | 148,000 | |||||||||||||||
8/13/2019 | Powder Springs | 6.9 | 3.48 | % | 4,000 | 8.0 | 3.65 | % | 236,000 | |||||||||||||||
7/29/2019 | Citi Lakes | 41.1 | L + 217 | 155,000 | 41.3 | 3.66 | % | 668,000 | ||||||||||||||||
4/12/2019 | Royal Lakes Marketplace | 9.5 | L + 250 | 52,000 | 9.7 | 4.29 | % | 287,000 | ||||||||||||||||
4/12/2019 | Cherokee Plaza | 24.5 | L + 225 | 317,000 | 25.2 | 4.28 | % | 723,000 | ||||||||||||||||
2/28/2019 | Lenox Village Town Center | 29.2 | 3.82 | % | 17,000 | 39.3 | 4.34 | % | 1,153,000 | |||||||||||||||
$ | 143.8 | $ | 557,000 | $ | 157.0 | $ | 4,018,000 | |||||||||||||||||
9/28/2018 | Stone Rise | $ | 23.5 | 2.89 | % | $ | 119,000 | $ | — | N/A | $ | — | ||||||||||||
3/29/2018 | Sol | 37.5 | L + 200 | 41,000 | 37.5 | 4.71 | % | 649,000 | ||||||||||||||||
3/20/2018 | Lake Cameron | 19.7 | 3.13 | % | 402,000 | — | N/A | — | ||||||||||||||||
$ | 80.7 | $ | 562,000 | $ | 37.5 | $ | 649,000 |
Date | Property | Previous balance (millions) | Previous interest rate / spread over 1 month LIBOR | Loan refinancing costs expensed (thousands) | New balance (millions) | New interest rate | Additional deferred loan costs from refinancing (thousands) | |||||||||||||||||||||||||||||||||||||
1/3/2020 | Ursa | $ | 31.4 | L + 300 | $ | 0 | $ | 0 | n/a | $ | 0 | |||||||||||||||||||||||||||||||||
6/25/2020 | CityPark View | 19.8 | 3.27 | % | 1,314 | 29.0 | 2.75 | % | 314 | |||||||||||||||||||||||||||||||||||
6/29/2020 | Aster at Lely Resort | 30.7 | 3.84 | % | 293 | 50.4 | 2.95 | % | 2,777 | |||||||||||||||||||||||||||||||||||
6/29/2020 | Avenues at Northpointe | 26.0 | 3.16 | % | 166 | 33.5 | 2.79 | % | 1,247 | |||||||||||||||||||||||||||||||||||
6/30/2020 | Avenues at Cypress | 20.5 | 3.43 | % | 1,607 | 28.4 | 2.96 | % | 336 | |||||||||||||||||||||||||||||||||||
6/30/2020 | Venue at Lakewood Ranch | 27.8 | 3.55 | % | 2,457 | 36.6 | 2.99 | % | 384 | |||||||||||||||||||||||||||||||||||
6/30/2020 | Crosstown Walk | 29.9 | 3.90 | % | 248 | 46.5 | 2.92 | % | 2,841 | |||||||||||||||||||||||||||||||||||
6/30/2020 | Summit Crossing II | 13.1 | 4.49 | % | 779 | 20.7 | L + 278 | 136 | ||||||||||||||||||||||||||||||||||||
7/10/2020 | Citrus Village | 28.5 | 3.65 | % | 704 | 40.9 | 2.95 | % | 522 | |||||||||||||||||||||||||||||||||||
7/31/2020 | Village at Baldwin Park | 70.1 | 4.16 | % | 16 | 70.1 | 3.59 | % | 864 | |||||||||||||||||||||||||||||||||||
$ | 297.8 | $ | 7,584 | $ | 356.1 | $ | 9,421 | |||||||||||||||||||||||||||||||||||||
9/17/2019 | Spring Hill Plaza | $ | 9.1 | 3.36 | % | $ | 0 | $ | 8.2 | 3.72 | % | $ | 195 | |||||||||||||||||||||||||||||||
9/17/2019 | Parkway Town Centre | 6.6 | 3.36 | % | 0 | 8.1 | 3.72 | % | 195 | |||||||||||||||||||||||||||||||||||
8/16/2019 | Deltona Landings | 6.5 | 3.48 | % | 5 | 6.3 | 4.18 | % | 204 | |||||||||||||||||||||||||||||||||||
8/16/2019 | Barclay Crossing | 6.1 | 3.48 | % | 4 | 6.3 | 4.18 | % | 209 | |||||||||||||||||||||||||||||||||||
8/16/2019 | Parkway Center | 4.3 | 3.48 | % | 3 | 4.6 | 4.18 | % | 148 | |||||||||||||||||||||||||||||||||||
8/13/2019 | Powder Springs | 6.9 | 3.48 | % | 4 | 8.0 | 3.65 | % | 236 | |||||||||||||||||||||||||||||||||||
7/29/2019 | Citi Lakes | 41.1 | L + 217 | 155 | 41.3 | 3.66 | % | 668 | ||||||||||||||||||||||||||||||||||||
4/12/2019 | Royal Lakes Marketplace | 9.5 | L + 250 | 52 | 9.7 | 4.29 | % | 287 | ||||||||||||||||||||||||||||||||||||
4/12/2019 | Cherokee Plaza | 24.5 | L + 225 | 317 | 25.2 | 4.28 | % | 723 | ||||||||||||||||||||||||||||||||||||
2/28/2019 | Lenox Village Town Center | 29.2 | 3.82 | % | 17 | 39.3 | 4.34 | % | 1,153 | |||||||||||||||||||||||||||||||||||
$ | 143.8 | $ | 557 | $ | 157.0 | $ | 4,018 |
(In thousands) | ||||||||||||||||||||
Fixed rate mortgage debt: | Principal balances due | Weighted-average interest rate | Weighted average remaining life (years) | |||||||||||||||||
Residential Properties | $ | 1,442,905 | 3.68 | % | 8.8 | |||||||||||||||
New Market Properties | 571,320 | 4.00 | % | 7.6 | ||||||||||||||||
Preferred Office Properties | 634,876 | 4.13 | % | 12.7 | ||||||||||||||||
Total fixed rate mortgage debt | 2,649,101 | 3.86 | % | 9.5 | ||||||||||||||||
Variable rate mortgage debt: | ||||||||||||||||||||
Residential Properties | 117,917 | 3.76 | % | 3.3 | ||||||||||||||||
New Market Properties | 47,150 | 2.81 | % | 3.1 | ||||||||||||||||
Preferred Office Properties | 0 | 0 | % | — | ||||||||||||||||
Total variable rate mortgage debt | 165,067 | 3.49 | % | 3.3 | ||||||||||||||||
Total mortgage debt: | ||||||||||||||||||||
Residential Properties | 1,560,823 | 3.68 | % | 8.4 | ||||||||||||||||
New Market Properties | 618,470 | 3.91 | % | 7.2 | ||||||||||||||||
Preferred Office Properties | 634,876 | 4.13 | % | 12.7 | ||||||||||||||||
Total principal amount | 2,814,169 | 3.83 | % | 9.1 | ||||||||||||||||
Deferred loan costs | (44,338) | |||||||||||||||||||
Mark to market loan adjustment | (4,038) | |||||||||||||||||||
Mortgage notes payable, net | $ | 2,765,793 |
(In thousands) | ||||||||||
Fixed rate mortgage debt: | Principal balances due | Weighted-average interest rate | Weighted average remaining life (years) | |||||||
Multifamily communities | $ | 1,108,840 | 3.91 | % | 9.2 | |||||
New Market Properties | 551,371 | 3.97 | % | 8.0 | ||||||
Preferred Office Properties | 566,344 | 4.22 | % | 13.7 | ||||||
Student housing properties | 159,780 | 4.13 | % | 5.8 | ||||||
Total fixed rate mortgage debt | 2,386,335 | 4.01 | % | 9.8 | ||||||
Variable rate mortgage debt: | ||||||||||
Multifamily communities | 39,078 | 3.62 | % | 4.8 | ||||||
New Market Properties | 47,150 | 4.68 | % | 4.1 | ||||||
Preferred Office Properties | — | — | — | |||||||
Student housing properties | 131,916 | 5.55 | % | 1.0 | ||||||
Total variable rate mortgage debt | 218,144 | 5.01 | % | 2.3 | ||||||
Total mortgage debt: | ||||||||||
Multifamily communities | 1,147,918 | 3.90 | % | 9.1 | ||||||
New Market Properties | 598,521 | 4.02 | % | 7.7 | ||||||
Preferred Office Properties | 566,344 | 4.22 | % | 13.7 | ||||||
Student housing properties | 291,696 | 4.77 | % | 3.6 | ||||||
Total principal amount | 2,604,479 | 4.09 | % | 9.2 | ||||||
Deferred loan costs | (37,954 | ) | ||||||||
Mark to market loan adjustment | (4,688 | ) | ||||||||
Mortgage notes payable, net | $ | 2,561,837 |
Covenant (1) | Requirement | Result | |||||||||||||||
Net worth | Minimum $1.7 billion | $1.9 billion | (3) | ||||||||||||||
Debt yield | Minimum 8.25% | 9.89% | |||||||||||||||
Payout ratio | Maximum 95% | (2) | 88.1% | ||||||||||||||
Total leverage ratio | Maximum 65% | 63.7% | |||||||||||||||
Debt service coverage ratio | Minimum 1.50x | 1.74x |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Residential Properties | $ | 15,739 | $ | 16,108 | $ | 46,537 | $ | 46,729 | ||||||||||||||||||
New Market Properties | 6,539 | 6,422 | 19,876 | 18,123 | ||||||||||||||||||||||
Preferred Office Properties | 6,699 | 5,909 | 20,256 | 16,617 | ||||||||||||||||||||||
Interest paid to real estate loan participants | 0 | 0 | 0 | 110 | ||||||||||||||||||||||
Total | 28,977 | 28,439 | 86,669 | 81,579 | ||||||||||||||||||||||
Credit Facility and Acquisition Facility | 902 | 360 | 3,939 | 1,587 | ||||||||||||||||||||||
Interest Expense | $ | 29,879 | $ | 28,799 | $ | 90,608 | $ | 83,166 | ||||||||||||||||||
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Multifamily communities | $ | 12,162 | $ | 11,409 | $ | 35,434 | $ | 33,597 | ||||||||
New Market Properties | 6,422 | 5,071 | 18,123 | 14,056 | ||||||||||||
Preferred Office Properties | 5,909 | 3,489 | 16,617 | 8,696 | ||||||||||||
Student housing properties | 3,946 | 3,497 | 11,295 | 7,572 | ||||||||||||
Interest paid to real estate loan participants | — | 802 | 110 | 1,746 | ||||||||||||
Total | 28,439 | 24,268 | 81,579 | 65,667 | ||||||||||||
Credit Facility and Acquisition Facility | 360 | 1,389 | 1,587 | 3,305 | ||||||||||||
Interest Expense | $ | 28,799 | $ | 25,657 | $ | 83,166 | $ | 68,972 |
Period | Future principal payments (in thousands) | |||||||
2020 (1) | $ | 44,152 | ||||||
2021 | 166,730 | |||||||
2022 | 105,432 | |||||||
2023 | 117,605 | |||||||
2024 | 367,421 | |||||||
Thereafter | 2,045,829 | |||||||
Total | $ | 2,847,169 | ||||||
(1) Includes the principal amount due on our revolving line of credit of $33.0 million as of September 30, 2020. | ||||||||
Period | Future principal payments (in thousands) | ||||
2019 | $ | 120,117 | (1) | ||
2020 | 74,674 | ||||
2021 | 181,018 | ||||
2022 | 220,992 | ||||
2023 | 159,036 | ||||
Thereafter | 1,898,642 | ||||
Total | $ | 2,654,479 | |||
(dollars in thousands) | For the nine-month periods ended September 30, 2020 | Weighted average remaining lease term (years) | Weighted average discount rate | |||||||||||||||||||||||
Lease expense | Cash paid | |||||||||||||||||||||||||
Office space | $ | 1,942 | $ | 1,903 | 5.2 | 3.0 | % | |||||||||||||||||||
Ground leases | 44 | 38 | 35.7 | 4.4 | % | |||||||||||||||||||||
Office equipment | 282 | 282 | 2.3 | 3.0 | % | |||||||||||||||||||||
Total | $ | 2,268 | $ | 2,223 |
For the year ending December 31: | Future Minimum Rents as of September 30, 2020 | |||||||||||||||||||||||||
(in thousands) | Office space | Ground leases | Office equipment | Total | ||||||||||||||||||||||
2020 (1) | $ | 723 | $ | 13 | $ | 91 | $ | 827 | ||||||||||||||||||
2021 | 2,930 | 51 | 321 | 3,302 | ||||||||||||||||||||||
2022 | 2,855 | 51 | 149 | 3,055 | ||||||||||||||||||||||
2023 | 2,497 | 51 | 58 | 2,606 | ||||||||||||||||||||||
2024 | 3,139 | 51 | 39 | 3,229 | ||||||||||||||||||||||
Thereafter | 3,163 | 1,136 | 0 | 4,299 | ||||||||||||||||||||||
Total | $ | 15,307 | $ | 1,353 | $ | 658 | $ | 17,318 | ||||||||||||||||||
(1) Remaining three months |
For the year ending December 31: | Future Minimum Rents as of September 30, 2019 | |||||||||||
(In thousands) | New Market Properties | Preferred Office Properties | Total | |||||||||
2019 (1) | $ | 18,295 | $ | 16,728 | $ | 35,023 | ||||||
2020 | 70,420 | 71,934 | 142,354 | |||||||||
2021 | 62,035 | 71,636 | 133,671 | |||||||||
2022 | 52,462 | 70,030 | 122,492 | |||||||||
2023 | 44,366 | 68,602 | 112,968 | |||||||||
Thereafter | 134,191 | 362,308 | 496,499 | |||||||||
Total | $ | 381,769 | $ | 661,238 | $ | 1,043,007 | ||||||
(1) Remaining three months |
For the year ending December 31: | Future Minimum Rents as of December 31, 2018 | |||||||||||
(In thousands) | New Market Properties | Preferred Office Properties | Total | |||||||||
2019 | $ | 58,143 | $ | 56,564 | $ | 114,707 | ||||||
2020 | 51,949 | 61,704 | 113,653 | |||||||||
2021 | 43,152 | 58,805 | 101,957 | |||||||||
2022 | 35,218 | 58,108 | 93,326 | |||||||||
2023 | 29,562 | 57,343 | 86,905 | |||||||||
Thereafter | 79,747 | 298,469 | 378,216 | |||||||||
Total | $ | 297,771 | $ | 590,993 | $ | 888,764 |
(In thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets: | ||||||||||||||
Residential properties | $ | 2,146,061 | $ | 2,047,905 | ||||||||||
Financing | 354,130 | 409,226 | ||||||||||||
New Market Properties | 1,074,584 | 1,125,230 | ||||||||||||
Preferred Office Properties | 1,130,962 | 1,123,212 | ||||||||||||
Other | 25,325 | 64,987 | ||||||||||||
Consolidated assets | $ | 4,731,062 | $ | 4,770,560 | ||||||||||
(In thousands) | September 30, 2019 | December 31, 2018 | ||||||
Assets: | ||||||||
Multifamily communities | $ | 1,586,795 | $ | 1,503,648 | ||||
Student housing properties | 494,847 | 411,102 | ||||||
Financing | 518,947 | 448,617 | ||||||
New Market Properties | 1,053,920 | 883,594 | ||||||
Preferred Office Properties | 1,012,889 | 884,648 | ||||||
Other (1) | 600,249 | 279,349 | ||||||
Consolidated assets | $ | 5,267,647 | $ | 4,410,958 | ||||
(1) Other Assets includes $585,837 and $264,886 of assets owned by other pool participants within the Freddie Mac K Program that were consolidated by the Company. The Company's maximum exposure to loss from the combined mortgage pools from the Freddie Mac K Program is approximately $24.4 million. |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Capitalized expenditures: | ||||||||||||||||||||||||||
Residential properties | $ | 4,348 | $ | 4,709 | $ | 10,938 | $ | 11,377 | ||||||||||||||||||
New Market Properties | 2,017 | 2,699 | 4,557 | 5,703 | ||||||||||||||||||||||
Preferred Office Properties | 5,779 | 3,265 | 22,458 | 12,040 | ||||||||||||||||||||||
Total | $ | 12,144 | $ | 10,673 | $ | 37,953 | $ | 29,120 |
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Capitalized expenditures: | ||||||||||||||||
Multifamily communities | $ | 3,412 | $ | 3,452 | $ | 8,257 | $ | 14,150 | ||||||||
Student housing properties | 1,297 | 1,061 | 3,120 | 2,269 | ||||||||||||
New Market Properties | 2,699 | 3,163 | 5,703 | 4,950 | ||||||||||||
Total | $ | 7,408 | $ | 7,676 | $ | 17,080 | $ | 21,369 |
(In thousands) | Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Rental and other property revenues: | ||||||||||||||||||||||||||
Residential properties | $ | 60,643 | $ | 56,008 | $ | 180,325 | $ | 162,669 | ||||||||||||||||||
New Market Properties | 26,707 | 25,270 | 80,815 | 70,211 | ||||||||||||||||||||||
Preferred Office Properties (1) | 27,810 | 24,215 | 81,009 | 68,006 | ||||||||||||||||||||||
Total rental and other property revenues | 115,160 | 105,493 | 342,149 | 300,886 | ||||||||||||||||||||||
Financing revenues | 11,271 | 14,710 | 38,115 | 44,675 | ||||||||||||||||||||||
Miscellaneous revenues | 266 | 0 | 812 | 0 | ||||||||||||||||||||||
Consolidated revenues | $ | 126,697 | $ | 120,203 | $ | 381,076 | $ | 345,561 | ||||||||||||||||||
(1) Included in rental revenues for our Preferred Office Properties segment is the amortization of deferred revenue for tenant-funded leasehold improvements from a major tenant in our Three Ravinia and Westridge office buildings. As of September 30, 2020, the Company has recorded deferred revenue in an aggregate amount of $47.0 million in connection with such improvements. The remaining balance to be recognized is approximately $36.9 million which is included in the deferred revenues line on the consolidated balance sheets at September 30, 2020. These total costs will be amortized over the lesser of the useful lives of the improvements or the individual lease terms. The Company recorded non-cash revenue of approximately $2.8 million and $2.8 million for the nine-month periods ended September 30, 2020 and 2019, respectively. |
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Segment net operating income (Segment NOI) | ||||||||||||||||||||||||||
Residential Properties | $ | 33,267 | $ | 30,191 | $ | 103,414 | $ | 90,825 | ||||||||||||||||||
Financing | 11,245 | 14,710 | 38,089 | 44,675 | ||||||||||||||||||||||
New Market Properties | 19,235 | 18,211 | 57,381 | 50,441 | ||||||||||||||||||||||
Preferred Office Properties | 20,291 | 17,236 | 59,363 | 48,745 | ||||||||||||||||||||||
Miscellaneous revenues | 266 | 0 | 812 | 0 | ||||||||||||||||||||||
Consolidated segment net operating income | 84,304 | 80,348 | 259,059 | 234,686 | ||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Residential Properties | 15,739 | 16,108 | 46,537 | 46,729 | ||||||||||||||||||||||
New Market Properties | 6,539 | 6,422 | 19,876 | 18,123 | ||||||||||||||||||||||
Preferred Office Properties | 6,699 | 5,909 | 20,256 | 16,617 | ||||||||||||||||||||||
Financing | 902 | 360 | 3,939 | 1,697 | ||||||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||
Residential Properties | 26,516 | 23,869 | 77,745 | 74,304 | ||||||||||||||||||||||
New Market Properties | 12,688 | 11,677 | 39,410 | 32,644 | ||||||||||||||||||||||
Preferred Office Properties | 12,590 | 10,693 | 35,941 | 30,243 | ||||||||||||||||||||||
Equity compensation to directors and executives | 582 | 305 | 1,058 | 922 | ||||||||||||||||||||||
Management fees, net of waived fees | 0 | 5,530 | 1,963 | 16,144 | ||||||||||||||||||||||
Management Internalization | 577 | 818 | 179,828 | 1,143 | ||||||||||||||||||||||
Provision for expected credit losses | (152) | 0 | 5,463 | 0 | ||||||||||||||||||||||
Change in net assets of consolidated VIE | 0 | (591) | 0 | (1,316) | ||||||||||||||||||||||
(Gain) / loss on sale of real estate | (3,261) | 0 | (3,261) | 0 | ||||||||||||||||||||||
(Gain) / loss on trading investment, net | 0 | 0 | 0 | (4) | ||||||||||||||||||||||
(Gain) / loss on sale of real estate loan investment | 0 | 0 | 0 | (747) | ||||||||||||||||||||||
(Gain) / loss from land condemnation, net | (49) | 0 | (528) | 0 | ||||||||||||||||||||||
(Gain) / loss on extinguishment of debt | 518 | 15 | 6,674 | 84 | ||||||||||||||||||||||
Loss from unconsolidated joint venture | 120 | 0 | 120 | 0 | ||||||||||||||||||||||
Corporate G&A and Other | 7,898 | 1,370 | 23,113 | 4,197 | ||||||||||||||||||||||
Net income (loss) | $ | (3,602) | $ | (2,137) | $ | (199,075) | $ | (6,094) |
Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Revenues | |||||||||||||||
Rental revenues: | |||||||||||||||
Multifamily communities | $ | 41,999 | $ | 39,515 | $ | 123,161 | $ | 117,273 | |||||||
Student housing properties | 11,887 | 9,719 | 33,344 | 22,485 | |||||||||||
New Market Properties | 24,654 | 19,303 | 68,529 | 54,209 | |||||||||||
Preferred Office Properties (1) | 23,277 | 15,963 | 64,613 | 41,347 | |||||||||||
Total rental revenues | 101,817 | 84,500 | 289,647 | 235,314 | |||||||||||
Other revenues: | |||||||||||||||
Multifamily communities | 1,565 | 1,480 | 4,205 | 4,209 | |||||||||||
Student housing properties | 555 | 366 | 959 | 556 | |||||||||||
New Market Properties | 616 | 703 | 1,682 | 1,924 | |||||||||||
Preferred Office Properties | 939 | 401 | 3,393 | 607 | |||||||||||
Total other revenues | 3,675 | 2,950 | 10,239 | 7,296 | |||||||||||
Financing revenues | 14,711 | 16,782 | 44,652 | 48,381 | |||||||||||
Miscellaneous revenues | — | — | 1,023 | — | |||||||||||
Consolidated revenues | $ | 120,203 | $ | 104,232 | $ | 345,561 | $ | 290,991 | |||||||
(1) Included in rental revenues for our Preferred Office Properties segment is the amortization of deferred revenue for tenant-funded leasehold improvements from a major tenant in our Three Ravinia and Westridge office buildings. As of September 30, 2019, the Company has deferred revenue in an aggregate amount of $47 million in connection with such improvements. The remaining balance to be recognized is approximately $40.7 million which is included in the deferred revenues line on the consolidated balance sheets at September 30, 2019. These total costs will be amortized over the lesser of the useful lives of the improvements or the individual lease terms. The Company recorded non-cash revenue of approximately $2.8 million and $1.8 million for the nine-month periods ended September 30, 2019 and 2018, respectively. |
Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Segment net operating income (Segment NOI) | |||||||||||||||
Multifamily communities | $ | 24,824 | $ | 23,073 | $ | 73,178 | $ | 69,342 | |||||||
Student housing properties | 5,371 | 3,985 | 17,613 | 10,927 | |||||||||||
Financing | 14,710 | 16,782 | 44,675 | 48,381 | |||||||||||
New Market Properties | 18,070 | 14,521 | 50,299 | 40,005 | |||||||||||
Preferred Office Properties | 17,138 | 11,267 | 48,458 | 29,663 | |||||||||||
Consolidated segment net operating income | 80,113 | 69,628 | 234,223 | 198,318 | |||||||||||
Interest expense: | |||||||||||||||
Multifamily communities | 12,162 | 11,409 | 35,434 | 33,597 | |||||||||||
Student housing properties | 3,946 | 3,497 | 11,295 | 7,572 | |||||||||||
New Market Properties | 6,422 | 5,071 | 18,123 | 14,056 | |||||||||||
Preferred Office Properties | 5,909 | 3,489 | 16,617 | 8,696 | |||||||||||
Financing | 360 | 2,191 | 1,697 | 5,051 | |||||||||||
Depreciation and amortization: | |||||||||||||||
Multifamily communities | 18,647 | 18,802 | 57,449 | 60,825 | |||||||||||
Student housing properties | 5,222 | 7,135 | 16,855 | 19,736 | |||||||||||
New Market Properties | 11,677 | 10,462 | 32,644 | 28,519 | |||||||||||
Preferred Office Properties | 10,693 | 8,100 | 30,243 | 18,130 | |||||||||||
Professional fees | 1,575 | 560 | 3,349 | 1,803 | |||||||||||
Management fees, net of forfeitures | 5,530 | 5,300 | 16,144 | 15,513 | |||||||||||
Loan loss allowance | — | 3,029 | — | 3,029 | |||||||||||
Equity compensation to directors and executives | 305 | 796 | 922 | 2,881 | |||||||||||
Gain on sale of real estate | — | 18,605 | — | 38,961 | |||||||||||
Gain on non-cash net assets of consolidated VIEs | 591 | 131 | 1,316 | 185 | |||||||||||
Gain loss on sale of real estate loan investment | — | — | 747 | — | |||||||||||
Loss on extinguishment of debt | 15 | — | 84 | — | |||||||||||
Gain on trading investment, net | — | — | 4 | — | |||||||||||
Other | 378 | 169 | 1,528 | 717 | |||||||||||
Net income (loss) | $ | (2,137 | ) | $ | 8,354 | $ | (6,094 | ) | $ | 17,339 |
(In thousands, except per-share figures) | Three-month periods ended September 30, | Nine-month periods ended September 30, | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Operating (loss) income before gain on sale of real estate and loss from unconsolidated joint venture | $ | 23,605 | $ | 26,086 | $ | (105,462) | $ | 75,089 | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | 0 | (120) | 0 | |||||||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | 0 | 3,261 | 4 | |||||||||||||||||||||||||
Operating (loss) income | 26,746 | 26,086 | (102,321) | 75,093 | |||||||||||||||||||||||||
Interest expense | 29,879 | 28,799 | 90,608 | 83,166 | |||||||||||||||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | 0 | 591 | 0 | 1,316 | |||||||||||||||||||||||||
Less: loss on extinguishment of debt | (518) | (15) | (6,674) | (84) | |||||||||||||||||||||||||
Gains on land condemnation | 49 | 0 | 528 | 747 | |||||||||||||||||||||||||
Net loss | (3,602) | (2,137) | (199,075) | (6,094) | |||||||||||||||||||||||||
Consolidated net loss attributable to non-controlling interests | 108 | 59 | 3,515 | 138 | |||||||||||||||||||||||||
Net loss attributable to the Company | (3,494) | (2,078) | (195,560) | (5,956) | |||||||||||||||||||||||||
Dividends declared to preferred stockholders | (35,909) | (29,446) | (104,601) | (82,527) | |||||||||||||||||||||||||
Net loss attributable to unvested restricted stock | (96) | (5) | (109) | (14) | |||||||||||||||||||||||||
Net loss attributable to common stockholders | $ | (39,499) | $ | (31,529) | $ | (300,270) | $ | (88,497) | |||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average number of shares of Common Stock - basic | 49,689 | 44,703 | 48,351 | 43,703 | |||||||||||||||||||||||||
Effect of dilutive securities: (D) | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Weighted average number of shares of Common Stock - basic and diluted | 49,689 | 44,703 | 48,351 | 43,703 | |||||||||||||||||||||||||
Net loss per share of Common Stock attributable to | |||||||||||||||||||||||||||||
common stockholders, basic and diluted | $ | (0.79) | $ | (0.71) | $ | (6.21) | $ | (2.02) |
Three-month periods ended September 30, | Nine-month periods ended September 30, | ||||||||||||||||
(In thousands, except per-share figures) | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Numerator: | |||||||||||||||||
Operating income before gains on sales of real estate and trading investment | $ | 26,086 | $ | 15,275 | $ | 75,089 | $ | 47,165 | |||||||||
Gains on sales of real estate and trading investment | — | 18,605 | 4 | 38,961 | |||||||||||||
Operating income | 26,086 | 33,880 | 75,093 | 86,126 | |||||||||||||
Interest expense | 28,799 | 25,657 | 83,166 | 68,972 | |||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | 591 | 131 | 1,316 | 185 | |||||||||||||
Loss on extinguishment of debt | (15 | ) | — | (84 | ) | — | |||||||||||
Gain on sale of real estate loan investment | — | — | 747 | — | |||||||||||||
Net (loss) income | (2,137 | ) | 8,354 | (6,094 | ) | 17,339 | |||||||||||
Consolidated net loss (income) attributable to non-controlling interests | 59 | (216 | ) | 138 | (456 | ) | |||||||||||
Net (loss) income attributable to the Company | (2,078 | ) | 8,138 | (5,956 | ) | 16,883 | |||||||||||
Dividends declared to preferred stockholders | (29,446 | ) | (22,360 | ) | (82,527 | ) | (62,801 | ) | |||||||||
Earnings attributable to unvested restricted stock | (5 | ) | (5 | ) | (14 | ) | (13 | ) | |||||||||
Net loss attributable to common stockholders | $ | (31,529 | ) | $ | (14,227 | ) | $ | (88,497 | ) | $ | (45,931 | ) | |||||
Denominator: | |||||||||||||||||
Weighted average number of shares of Common Stock - basic | 44,703 | 40,300 | 43,703 | 39,598 | |||||||||||||
Effect of dilutive securities: (D) | — | — | — | — | |||||||||||||
Weighted average number of shares of Common Stock - basic and diluted | 44,703 | 40,300 | 43,703 | 39,598 | |||||||||||||
Net loss per share of Common Stock attributable to | |||||||||||||||||
common stockholders, basic and diluted | $ | (0.71 | ) | $ | (0.35 | ) | $ | (2.02 | ) | $ | (1.16 | ) |
As of September 30, 2020 | |||||||||||||||||||||||||||||
(In thousands) | Carrying value | Fair value measurements using fair value hierarchy | |||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Real estate loans | $ | 334,385 | $ | 348,608 | $ | 0 | $ | 0 | $ | 348,608 | |||||||||||||||||||
Notes receivable and line of credit receivable | 11,905 | 11,905 | 0 | 0 | 11,905 | ||||||||||||||||||||||||
$ | 346,290 | $ | 360,513 | $ | 0 | $ | 0 | $ | 360,513 | ||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Mortgage notes payable | $ | 2,814,169 | $ | 2,866,502 | $ | 0 | $ | 0 | $ | 2,866,502 | |||||||||||||||||||
Revolving credit facility | 33,000 | 33,000 | 0 | 0 | 33,000 | ||||||||||||||||||||||||
$ | 2,847,169 | $ | 2,899,502 | $ | 0 | $ | 0 | $ | 2,899,502 |
As of December 31, 2019 | |||||||||||||||||||||||||||||
(In thousands) | Carrying value | Fair value measurements using fair value hierarchy | |||||||||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Real estate loans | $ | 375,460 | $ | 382,373 | $ | 0 | $ | 0 | $ | 382,373 | |||||||||||||||||||
Notes receivable and line of credit receivable | 41,917 | 41,917 | 0 | 0 | 41,917 | ||||||||||||||||||||||||
$ | 417,377 | $ | 424,290 | $ | 0 | $ | 0 | $ | 424,290 | ||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Mortgage notes payable | $ | 2,609,829 | $ | 2,659,242 | $ | 0 | $ | 0 | $ | 2,659,242 | |||||||||||||||||||
Revolving line of credit | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Term note payable | 70,000 | 70,000 | 0 | 0 | 70,000 | ||||||||||||||||||||||||
$ | 2,679,829 | $ | 2,729,242 | $ | 0 | $ | 0 | $ | 2,729,242 |
As of September 30, 2019 | |||||||||||||||||||
Carrying value | Fair value measurements using fair value hierarchy | ||||||||||||||||||
(In thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial Assets: | |||||||||||||||||||
Real estate loans | $ | 381,486 | $ | 415,909 | $ | — | $ | — | $ | 415,909 | |||||||||
Notes receivable and line of credit receivable | 41,657 | 41,657 | — | — | 41,657 | ||||||||||||||
$ | 423,143 | $ | 457,566 | $ | — | $ | — | $ | 457,566 | ||||||||||
Financial Liabilities: | |||||||||||||||||||
Mortgage notes payable | $ | 2,604,479 | $ | 2,656,937 | $ | — | $ | — | $ | 2,656,937 | |||||||||
Revolving line of credit | 50,000 | 50,000 | — | — | 50,000 | ||||||||||||||
$ | 2,654,479 | $ | 2,706,937 | $ | — | $ | — | $ | 2,706,937 |
As of December 31, 2018 | |||||||||||||||||||
Carrying value | Fair value measurements using fair value hierarchy | ||||||||||||||||||
(In thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial Assets: | |||||||||||||||||||
Real estate loans (1) | $ | 334,211 | $ | 366,328 | $ | — | $ | — | $ | 366,328 | |||||||||
Notes receivable and line of credit receivable | 47,307 | 47,307 | — | — | 47,307 | ||||||||||||||
$ | 381,518 | $ | 413,635 | $ | — | $ | — | $ | 413,635 | ||||||||||
Financial Liabilities: | |||||||||||||||||||
Mortgage notes payable | $ | 2,339,752 | 2,313,405 | $ | — | $ | — | $ | 2,313,405 | ||||||||||
Revolving credit facility | 57,000 | 57,000 | — | — | 57,000 | ||||||||||||||
Loan participation obligations | 5,181 | 5,181 | — | — | 5,181 | ||||||||||||||
$ | 2,401,933 | $ | 2,375,586 | $ | — | $ | — | $ | 2,375,586 |
Assets | Liabilities | ||||||||||
(In thousands) | Multifamily mortgage loans held in VIEs at fair value | VIE liabilities, at fair value | Net | ||||||||
Balance as of December 31, 2018 | $ | 269,946 | $ | 264,886 | $ | 5,060 | |||||
Initial consolidation of ML-05 trust: | 289,325 | 270,670 | 18,655 | ||||||||
Gains (losses) included in net income due to change in fair value of net assets of VIE: | 56,001 | 55,305 | 696 | ||||||||
Repayments of underlying mortgage principal amounts and repayments to Class A holders: | (5,024 | ) | (5,024 | ) | — | ||||||
Balance as of September 30, 2019 | $ | 610,248 | $ | 585,837 | $ | 24,411 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Interest earned | $ | 310 | $ | — | $ | 620 | $ | — | |||||||
Unrealized gain | 281 | 131 | 696 | 185 | |||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | $ | 591 | $ | 131 | $ | 1,316 | $ | 185 |
(In thousands) | Fair value | Valuation methodology | Unobservable input | |||||||
Assets: | ||||||||||
Multifamily mortgage loans held in VIEs at fair value | $ | 610,248 | Discounted cash flow | Discount rate | 3.6 | % | ||||
Liabilities: | ||||||||||
VIE liabilities, at fair value | $ | 585,837 | Discounted cash flow | Discount rate | 3.6 | % |
As of September 30, 2019 | |||||||||||||||||||
Carrying value | Fair value measurements using fair value hierarchy | ||||||||||||||||||
(In thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial Assets: | |||||||||||||||||||
VIE assets from mortgage-backed pools | $ | 610,248 | $ | 610,248 | $ | — | $ | — | $ | 610,248 | |||||||||
Financial Liabilities: | |||||||||||||||||||
VIE liabilities from mortgage-backed pools | $ | 585,837 | $ | 585,837 | $ | — | $ | — | $ | 585,837 |
December 31, 2018 | |||||||||||||||||||
Carrying value | Fair value measurements using fair value hierarchy | ||||||||||||||||||
(In thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial Assets: | |||||||||||||||||||
VIE assets from mortgage-backed pools | $ | 269,946 | $ | 269,946 | $ | — | $ | — | $ | 269,946 | |||||||||
Financial Liabilities: | |||||||||||||||||||
VIE liabilities from mortgage-backed pools | $ | 264,886 | $ | 264,886 | $ | — | $ | — | $ | 264,886 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2019 | 2018 | % change | 2019 | 2018 | % change | ||||||||||||||||||
Revenues (in thousands) | $ | 120,203 | $ | 104,232 | 15.3 | % | $ | 345,561 | $ | 290,991 | 18.8 | % | |||||||||||
Per share data: | |||||||||||||||||||||||
Net income (loss) (1) | $ | (0.71 | ) | $ | (0.35 | ) | — | $ | (2.02 | ) | $ | (1.16 | ) | — | |||||||||
FFO (2) | $ | 0.31 | $ | 0.28 | 10.7 | % | $ | 1.06 | $ | 1.03 | 2.9 | % | |||||||||||
AFFO (2) | $ | 0.12 | $ | 0.21 | (42.9 | )% | $ | 0.66 | $ | 0.84 | (21.4 | )% | |||||||||||
Dividends (3) | $ | 0.2625 | $ | 0.255 | 2.9 | % | $ | 0.7850 | $ | 0.76 | 3.3 | % | |||||||||||
2020 Cash Collections of Recurring Rental Revenues (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Unadjusted for rent deferrals: | First quarter | April | May | June | July | August | September | October | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | 99.9 | % | 98.8 | % | 98.8 | % | 98.8 | % | 98.8 | % | 99.0 | % | 99.0 | % | 98.5 | % | ||||||||||||||||||||||||||||||||||
Student housing | 99.9 | % | 97.9 | % | 97.0 | % | 97.4 | % | 97.0 | % | 98.6 | % | 98.8 | % | 98.9 | % | ||||||||||||||||||||||||||||||||||
Office | 99.8 | % | 98.8 | % | 97.3 | % | 97.8 | % | 98.9 | % | 99.7 | % | 99.9 | % | 99.8 | % | ||||||||||||||||||||||||||||||||||
Grocery-anchored retail (2) | 99.4 | % | 91.5 | % | 89.7 | % | 91.5 | % | 94.1 | % | 95.0 | % | 96.4 | % | 95.6 | % | ||||||||||||||||||||||||||||||||||
2020 Cash Collections of Recurring Rental Revenues (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for rent deferrals: | First quarter | April | May | June | July | August | September | October | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | 99.9 | % | 99.7 | % | 99.5 | % | 98.9 | % | 98.9 | % | 99.0 | % | 99.0 | % | 98.5 | % | ||||||||||||||||||||||||||||||||||
Student housing | 99.9 | % | 98.4 | % | 97.4 | % | 97.4 | % | 97.0 | % | 98.6 | % | 98.8 | % | 98.9 | % | ||||||||||||||||||||||||||||||||||
Office | 99.8 | % | 99.7 | % | 99.8 | % | 99.9 | % | 99.8 | % | 99.7 | % | 99.9 | % | 99.8 | % | ||||||||||||||||||||||||||||||||||
Grocery-anchored retail (2) | 99.5 | % | 96.8 | % | 95.2 | % | 95.7 | % | 96.7 | % | 96.0 | % | 97.0 | % | 96.5 | % | ||||||||||||||||||||||||||||||||||
2020 Monthly Occupancy and Percentages Leased | ||||||||||||||||||||||||||||||||||||||||||||||||||
First quarter | April | May | June | July | August | September | October | |||||||||||||||||||||||||||||||||||||||||||
Occupancy: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily (stabilized) | 95.5 | % | 94.4 | % | 94.4 | % | 95.2 | % | 95.1 | % | 96.0 | % | 95.6 | % | 95.4 | % | ||||||||||||||||||||||||||||||||||
Student housing | 96.1 | % | 96.0 | % | 95.8 | % | 95.8 | % | 95.9 | % | 95.1 | % | 95.3 | % | 95.5 | % | ||||||||||||||||||||||||||||||||||
Percent leased: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Office | 96.7 | % | 95.9 | % | 96.2 | % | 96.2 | % | 96.1 | % | 95.9 | % | 95.5 | % | 95.4 | % | ||||||||||||||||||||||||||||||||||
Grocery-anchored retail (1) | 92.6 | % | 92.5 | % | 92.5 | % | 92.7 | % | 92.8 | % | 92.8 | % | 92.5 | % | 92.4 | % |
Total units upon | Purchase option window | |||||||||||||||||||||||||
Project/Property | Location | completion (1) | Begin | End | ||||||||||||||||||||||
Residential properties: | ||||||||||||||||||||||||||
V & Three | Charlotte, NC | 338 | S + 90 days (2) | S + 150 days (2) | ||||||||||||||||||||||
The Anson | Nashville, TN | 301 | S + 90 days (2) | S + 150 days (2) | ||||||||||||||||||||||
Southpoint | Fredericksburg, VA | 240 | S + 90 days (2) | S + 150 days (2) | ||||||||||||||||||||||
E-Town | Jacksonville, FL | 332 | S + 90 days (3) | S + 150 days (3) | ||||||||||||||||||||||
Vintage | Destin, FL | 282 | (4) | (4) | ||||||||||||||||||||||
Hidden River II | Tampa, FL | 204 | S + 90 days (2) | S + 150 days (2) | ||||||||||||||||||||||
Kennesaw Crossing | Atlanta, GA | 250 | (5) | (5) | ||||||||||||||||||||||
Vintage Horizon West | Orlando, FL | 340 | (4) | (4) | ||||||||||||||||||||||
Solis Chestnut Farm | Charlotte, NC | 256 | (5) | (5) | ||||||||||||||||||||||
Vintage Jones Franklin | Raleigh, NC | 277 | (4) | (4) | ||||||||||||||||||||||
Solis Kennesaw II | Atlanta, GA | 175 | (6) | (6) | ||||||||||||||||||||||
Solis Cumming | Atlanta, GA | 320 | (5) | (5) | ||||||||||||||||||||||
Office property: | ||||||||||||||||||||||||||
8West | Atlanta, GA | (7) | (7) | (7) | ||||||||||||||||||||||
3,315 | ||||||||||||||||||||||||||
(1) We evaluate each project individually and we make no assurance that we will acquire any of the underlying properties from our real estate loan investment portfolio. The purchase options held by us on the 464 Bishop, Haven Charlotte, Sanibel Straights, Wiregrass, Newbergh, Cameron Square, Solis Kennesaw and Falls at Forsyth projects were terminated, in exchange for an aggregate $17.2 million in termination fees from the developers. | ||||||||||||||||||||||||||
(2) The option period window begins and ends at the number of days indicated beyond the achievement of a 93% physical occupancy rate by the underlying property. | ||||||||||||||||||||||||||
(3) The option period window begins on the earlier of June 21, 2024 and the number of days indicated beyond the achievement of a 93% physical occupancy rate by the underlying property. | ||||||||||||||||||||||||||
(4) The option period window begins on the later of one year following receipt of final certificate of occupancy or 90 days beyond the achievement of a 93% physical occupancy rate by the underlying property and ends 60 days beyond the option period beginning date. | ||||||||||||||||||||||||||
(5) We hold a right of first offer on the property. | ||||||||||||||||||||||||||
(6) The option period begins on October 1 of the second academic year following project completion and ends on the following December 31. The developer may elect to expedite the option period to begin December 1, 2020 and end on December 31, 2020. | ||||||||||||||||||||||||||
(7) The project plans are for the construction of a class A office building consisting of approximately 195,000 rentable square feet; our purchase option window opens 90 days following the achievement of 90% lease commencement and ends on November 30, 2024 (subject to adjustment). Our purchase option is at the to-be-agreed-upon market value. In the event the property is sold to a third party, we would be due a fee based on a minimum multiple of 1.15 times the total commitment amount of the real estate loan investment, less the amounts actually paid by the borrower, up to and including payment of accrued interest and repayment of principal at the time of the sale. |
Preferred Apartment Communities, Inc. | Three-month periods ended September 30, | Change inc (dec) | ||||||||||||||||||||||||
2020 | 2019 | Amount | Percentage | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental and other property revenues | $ | 114,831 | $ | 105,049 | $ | 9,782 | 9.3 | % | ||||||||||||||||||
Interest income on loans and notes receivable | 10,649 | 12,608 | (1,959) | (15.5) | % | |||||||||||||||||||||
Interest income from related parties | 609 | 2,546 | (1,937) | (76.1) | % | |||||||||||||||||||||
Miscellaneous revenues | 608 | — | 608 | — | ||||||||||||||||||||||
Total revenues | 126,697 | 120,203 | 6,494 | 5.4 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating and maintenance | 19,278 | 16,493 | 2,785 | 16.9 | % | |||||||||||||||||||||
Property salary and benefits | 6,054 | 5,360 | 694 | 12.9 | % | |||||||||||||||||||||
Property management fees | 983 | 3,534 | (2,551) | (72.2) | % | |||||||||||||||||||||
Real estate taxes and insurance | 16,078 | 14,474 | 1,604 | 11.1 | % | |||||||||||||||||||||
General and administrative | 7,898 | 1,364 | 6,534 | 479.0 | % | |||||||||||||||||||||
Equity compensation to directors and executives | 582 | 305 | 277 | 90.8 | % | |||||||||||||||||||||
Depreciation and amortization | 51,794 | 46,239 | 5,555 | 12.0 | % | |||||||||||||||||||||
Asset management and general and administrative expense fees to related party | — | 8,611 | (8,611) | (100.0) | % | |||||||||||||||||||||
Provision for expected credit losses | (152) | — | (152) | — | ||||||||||||||||||||||
Management internalization expense | 577 | 818 | (241) | — | ||||||||||||||||||||||
Total operating expenses | 103,092 | 97,198 | 5,894 | 6.1 | % | |||||||||||||||||||||
Waived asset management and general and administrative expense fees | — | (3,081) | 3,081 | (100.0) | % | |||||||||||||||||||||
Net operating expenses | 103,092 | 94,117 | 8,975 | 9.5 | % | |||||||||||||||||||||
Operating (loss) income before gain on sale of real estate and loss from unconsolidated joint venture | 23,605 | 26,086 | (2,481) | (9.5) | % | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | — | (120) | — | % | |||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | — | 3,261 | — | ||||||||||||||||||||||
Operating income | 26,746 | 26,086 | 660 | 2.5 | % | |||||||||||||||||||||
Interest expense | 29,879 | 28,799 | 1,080 | 3.8 | % | |||||||||||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | — | 591 | (591) | — | ||||||||||||||||||||||
Loss on extinguishment of debt | (518) | (15) | (503) | — | ||||||||||||||||||||||
Gain on land condemnation | 49 | — | 49 | — | ||||||||||||||||||||||
Net loss | (3,602) | (2,137) | (1,465) | — | ||||||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | 108 | 59 | 49 | 83.1 | % | |||||||||||||||||||||
Net loss attributable to the Company | $ | (3,494) | $ | (2,078) | $ | (1,416) | — |
Preferred Apartment Communities, Inc. | Three months ended September 30, | Change inc (dec) | |||||||||||||
2019 | 2018 | Amount | Percentage | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 101,817 | $ | 84,500 | $ | 17,317 | 20.5 | % | |||||||
Other property revenues | 3,232 | 2,443 | 789 | 32.3 | % | ||||||||||
Interest income on loans and notes receivable | 12,608 | 13,618 | (1,010 | ) | (7.4 | )% | |||||||||
Interest income from related parties | 2,546 | 3,671 | (1,125 | ) | (30.6 | )% | |||||||||
Total revenues | 120,203 | 104,232 | 15,971 | 15.3 | % | ||||||||||
Operating expenses: | |||||||||||||||
Property operating and maintenance | 14,928 | 12,893 | 2,035 | 15.8 | % | ||||||||||
Property salary and benefits | 5,360 | 4,911 | 449 | 9.1 | % | ||||||||||
Property management fees | 3,534 | 2,998 | 536 | 17.9 | % | ||||||||||
Real estate taxes | 12,870 | 10,597 | 2,273 | 21.4 | % | ||||||||||
General and administrative | 1,898 | 2,221 | (323 | ) | (14.5 | )% | |||||||||
Equity compensation to directors and executives | 305 | 796 | (491 | ) | (61.7 | )% | |||||||||
Depreciation and amortization | 46,239 | 44,499 | 1,740 | 3.9 | % | ||||||||||
Asset management and general and administrative | |||||||||||||||
expense fees to related parties | 8,611 | 7,234 | 1,377 | 19.0 | % | ||||||||||
Loan loss allowance | — | 3,029 | (3,029 | ) | (100.0 | )% | |||||||||
Insurance, professional fees and other expenses | 3,453 | 1,713 | 1,740 | 101.6 | % | ||||||||||
Total operating expenses | 97,198 | 90,891 | 6,307 | 6.9 | % | ||||||||||
Waived asset management and general and administrative | |||||||||||||||
expense fees | (3,081 | ) | (1,934 | ) | (1,147 | ) | 59.3 | % | |||||||
Net operating expenses | 94,117 | 88,957 | 5,160 | 5.8 | % | ||||||||||
Operating income before gains on sales of | |||||||||||||||
real estate | 26,086 | 15,275 | 10,811 | 70.8 | % | ||||||||||
Gain on sale of real estate | — | 18,605 | (18,605 | ) | (100.0 | )% | |||||||||
Operating income | 26,086 | 33,880 | (7,794 | ) | (23.0 | )% | |||||||||
Interest expense | 28,799 | 25,657 | 3,142 | 12.2 | % | ||||||||||
Change in fair value of net assets of consolidated | |||||||||||||||
VIE from mortgage-backed pool | 591 | 131 | 460 | 351.1 | % | ||||||||||
Loss on debt extinguishment | (15 | ) | — | (15 | ) | — | % | ||||||||
Net (loss) income | (2,137 | ) | 8,354 | (10,491 | ) | (125.6 | )% | ||||||||
Consolidated net loss (income) attributable to non-controlling interests | 59 | (216 | ) | 275 | (127.3 | )% | |||||||||
Net (loss) income attributable to the Company | $ | (2,078 | ) | $ | 8,138 | $ | (10,216 | ) | (125.5 | )% | |||||
Preferred Apartment Communities, Inc. | Nine-month periods ended September 30, | Change inc (dec) | ||||||||||||||||||||||||
2020 | 2019 | Amount | Percentage | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental and other property revenues | $ | 338,271 | $ | 298,569 | $ | 39,702 | 13.3 | % | ||||||||||||||||||
Interest income on loans and notes receivable | 34,495 | 35,989 | (1,494) | (4.2) | % | |||||||||||||||||||||
Interest income from related parties | 3,750 | 9,980 | (6,230) | (62.4) | % | |||||||||||||||||||||
Miscellaneous revenues | 4,560 | 1,023 | 3,537 | 345.7 | % | |||||||||||||||||||||
Total revenues | 381,076 | 345,561 | 35,515 | 10.3 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating and maintenance | 52,919 | 43,236 | 9,683 | 22.4 | % | |||||||||||||||||||||
Property salary and benefits | 16,965 | 14,845 | 2,120 | 14.3 | % | |||||||||||||||||||||
Property management fees | 4,028 | 10,174 | (6,146) | (60.4) | % | |||||||||||||||||||||
Real estate taxes and insurance | 48,109 | 42,646 | 5,463 | 12.8 | % | |||||||||||||||||||||
General and administrative | 23,109 | 4,171 | 18,938 | 454.0 | % | |||||||||||||||||||||
Equity compensation to directors and executives | 1,058 | 922 | 136 | 14.8 | % | |||||||||||||||||||||
Depreciation and amortization | 153,096 | 137,191 | 15,905 | 11.6 | % | |||||||||||||||||||||
Asset management and general and administrative expense fees to related party | 3,099 | 24,649 | (21,550) | (87.4) | % | |||||||||||||||||||||
Provision for expected credit losses | 5,463 | — | 5,463 | — | ||||||||||||||||||||||
Management internalization expense | 179,828 | 1,143 | 178,685 | — | % | |||||||||||||||||||||
Total operating expenses | 487,674 | 278,977 | 208,697 | 74.8 | % | |||||||||||||||||||||
Waived asset management and general and administrative expense fees | (1,136) | (8,505) | 7,369 | (86.6) | % | |||||||||||||||||||||
Net operating expenses | 486,538 | 270,472 | 216,066 | 79.9 | % | |||||||||||||||||||||
Operating (loss) income before gain on sale of real estate and loss from unconsolidated joint venture | (105,462) | 75,089 | (180,551) | (240.4) | % | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | — | (120) | — | % | |||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | 4 | 3,257 | 81,425.0 | % | |||||||||||||||||||||
Operating (loss) income | (102,321) | 75,093 | (177,414) | (236.3) | % | |||||||||||||||||||||
Interest expense | 90,608 | 83,166 | 7,442 | 8.9 | % | |||||||||||||||||||||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools | — | 1,316 | (1,316) | — | ||||||||||||||||||||||
Loss on extinguishment of debt | (6,674) | (84) | (6,590) | — | ||||||||||||||||||||||
Gain on land condemnation | 528 | 747 | (219) | (29.3) | % | |||||||||||||||||||||
Net loss | (199,075) | (6,094) | (192,981) | — | ||||||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | 3,515 | 138 | 3,377 | 2,447.1 | % | |||||||||||||||||||||
Net loss attributable to the Company | $ | (195,560) | $ | (5,956) | $ | (189,604) | — | |||||||||||||||||||
Preferred Apartment Communities, Inc. | Nine months ended September 30, | Change inc (dec) | |||||||||||||
2019 | 2018 | Amount | Percentage | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 289,647 | $ | 235,314 | $ | 54,333 | 23.1 | % | |||||||
Other property revenues | 8,922 | 5,791 | 3,131 | 54.1 | % | ||||||||||
Interest income on loans and notes receivable | 35,989 | 37,576 | (1,587 | ) | (4.2 | )% | |||||||||
Interest income from related parties | 9,980 | 12,310 | (2,330 | ) | (18.9 | )% | |||||||||
Miscellaneous revenues | 1,023 | — | 1,023 | — | % | ||||||||||
Total revenues | 345,561 | 290,991 | 54,570 | 18.8 | % | ||||||||||
Operating expenses: | |||||||||||||||
Property operating and maintenance | 38,186 | 31,805 | 6,381 | 20.1 | % | ||||||||||
Property salary and benefits | 14,845 | 13,038 | 1,807 | 13.9 | % | ||||||||||
Property management fees | 10,174 | 8,530 | 1,644 | 19.3 | % | ||||||||||
Real estate taxes | 37,914 | 30,635 | 7,279 | 23.8 | % | ||||||||||
General and administrative | 6,425 | 6,019 | 406 | 6.7 | % | ||||||||||
Equity compensation to directors and executives | 922 | 2,881 | (1,959 | ) | (68.0 | )% | |||||||||
Depreciation and amortization | 137,191 | 127,210 | 9,981 | 7.8 | % | ||||||||||
Asset management and general and administrative | |||||||||||||||
expense fees to related parties | 24,649 | 20,096 | 4,553 | 22.7 | % | ||||||||||
Loan loss allowance | — | 3,029 | (3,029 | ) | (100.0 | )% | |||||||||
Insurance, professional fees and other expenses | 8,671 | 5,166 | 3,505 | 67.8 | % | ||||||||||
Total operating expenses | 278,977 | 248,409 | 30,568 | 12.3 | % | ||||||||||
Waived asset management and general and administrative | |||||||||||||||
expense fees | (8,505 | ) | (4,583 | ) | (3,922 | ) | 85.6 | % | |||||||
Net operating expenses | 270,472 | 243,826 | 26,646 | 10.9 | % | ||||||||||
Operating income before gains on sales of | |||||||||||||||
real estate and trading investments | 75,089 | 47,165 | 27,924 | 59.2 | % | ||||||||||
Gain on sale of real estate and trading investment | 4 | 38,961 | (38,957 | ) | — | ||||||||||
Operating income | 75,093 | 86,126 | (11,033 | ) | (12.8 | )% | |||||||||
Interest expense | 83,166 | 68,972 | 14,194 | 20.6 | % | ||||||||||
Change in fair value of net assets of consolidated | |||||||||||||||
VIE from mortgage-backed pool | 1,316 | 185 | 1,131 | 611.4 | % | ||||||||||
Loss on debt extinguishment | (84 | ) | — | (84 | ) | — | % | ||||||||
Gain on sale of real estate loan investment | 747 | — | 747 | — | % | ||||||||||
Net (loss) income | (6,094 | ) | 17,339 | (23,433 | ) | (135.1 | )% | ||||||||
Consolidated net loss (income) attributable to non-controlling interests | 138 | (456 | ) | 594 | (130.3 | )% | |||||||||
Net (loss) income attributable to the Company | $ | (5,956 | ) | $ | 16,883 | $ | (22,839 | ) | (135.3 | )% |
New Market Properties, LLC | Three-month periods ended September 30, | Change inc (dec) | ||||||||||||||||||||||||
2020 | 2019 | Amount | Percentage | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental revenues & other property revenues | $ | 26,707 | $ | 24,826 | $ | 1,881 | 7.6 | % | ||||||||||||||||||
Interest income on notes receivable | — | 444 | (444) | (100.0) | % | |||||||||||||||||||||
Total revenues | 26,707 | 25,270 | 1,437 | 5.7 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating and maintenance | 3,291 | $ | 2,730 | 561 | 20.5 | % | ||||||||||||||||||||
Property management fees | 528 | 824 | (296) | (35.9) | % | |||||||||||||||||||||
Real estate taxes and insurance | 3,653 | 3,511 | 142 | 4.0 | % | |||||||||||||||||||||
General and administrative | 794 | 261 | 533 | 204.2 | % | |||||||||||||||||||||
Equity compensation to directors and executives | 19 | 17 | 2 | 11.8 | % | |||||||||||||||||||||
Depreciation and amortization | 12,688 | 11,677 | 1,011 | 8.7 | % | |||||||||||||||||||||
Asset management and general and administrative | ||||||||||||||||||||||||||
expense fees to related parties | — | 1,892 | (1,892) | (100.0) | % | |||||||||||||||||||||
Total operating expenses | 20,973 | 20,912 | 61 | 0.3 | % | |||||||||||||||||||||
Waived asset management and general and administrative | ||||||||||||||||||||||||||
expense fees | — | (94) | 94 | (100.0) | % | |||||||||||||||||||||
Net operating expenses | 20,973 | 20,818 | 155 | 0.7 | % | |||||||||||||||||||||
Operating income before gain on sale of real estate and loss from unconsolidated joint venture | 5,734 | 4,452 | 1,282 | 28.8 | % | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | — | (120) | — | % | |||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | — | 3,261 | — | % | |||||||||||||||||||||
Operating income | 8,875 | 4,452 | 4,423 | 99.3 | % | |||||||||||||||||||||
Interest expense | 6,539 | 6,422 | 117 | 1.8 | % | |||||||||||||||||||||
Loss on extinguishment of debt | — | (16) | 16 | (100.0) | % | |||||||||||||||||||||
Gain on land condemnation | 49 | — | 49 | 100.0 | % | |||||||||||||||||||||
Net income (loss) | $ | 2,385 | $ | (1,986) | $ | 4,371 | (220.1) | % | ||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | $ | (43) | $ | (12) | (31) | 258.3 | % | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | 2,428 | $ | (1,974) | 4,402 | (223.0) | % |
New Market Properties, LLC | Three months ended September 30, | Change inc (dec) | |||||||||||||
2019 | 2018 | Amount | Percentage | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 24,654 | $ | 19,303 | $ | 5,351 | 27.7 | % | |||||||
Other property revenues | 172 | 196 | (24 | ) | (12.2 | )% | |||||||||
Interest income on loans and notes receivable | 444 | 507 | (63 | ) | (12.4 | )% | |||||||||
Total revenues | 25,270 | 20,006 | 5,264 | 26.3 | % | ||||||||||
Operating expenses: | |||||||||||||||
Property operating and maintenance | 2,619 | 2,234 | 385 | 17.2 | % | ||||||||||
Property management fees | 824 | 653 | 171 | 26.2 | % | ||||||||||
Real estate taxes | 3,158 | 2,090 | 1,068 | 51.1 | % | ||||||||||
General and administrative | 229 | 379 | (150 | ) | (39.6 | )% | |||||||||
Equity compensation to directors and executives | 17 | 150 | (133 | ) | (88.7 | )% | |||||||||
Depreciation and amortization | 11,677 | 10,462 | 1,215 | 11.6 | % | ||||||||||
Asset management and general and administrative | |||||||||||||||
expense fees to related parties | 1,892 | 1,522 | 370 | 24.3 | % | ||||||||||
Insurance, professional fees and other expenses | 496 | 298 | 198 | 66.4 | % | ||||||||||
Total operating expenses | 20,912 | 17,788 | 3,124 | 17.6 | % | ||||||||||
Waived asset management and general and administrative | |||||||||||||||
expense fees | (94 | ) | (128 | ) | 34 | (26.6 | )% | ||||||||
Net operating expenses | 20,818 | 17,660 | 3,158 | 17.9 | % | ||||||||||
Operating income | 4,452 | 2,346 | 2,106 | 89.8 | % | ||||||||||
Interest expense | 6,422 | 5,071 | 1,351 | 26.6 | % | ||||||||||
Loss on extinguishment of debt | 16 | — | 16 | — | % | ||||||||||
Net income (loss) | (1,986 | ) | (2,725 | ) | 739 | (27.1 | )% | ||||||||
Consolidated net (income) loss attributable to non-controlling | |||||||||||||||
interests | (12 | ) | — | (12 | ) | — | % | ||||||||
Net income (loss) attributable to the Company | $ | (1,974 | ) | $ | (2,725 | ) | $ | 751 | (27.6 | )% |
New Market Properties, LLC | Nine-month periods ended September 30, | Change inc (dec) | ||||||||||||||||||||||||
2020 | 2019 | Amount | Percentage | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental revenues & other property revenues | $ | 80,651 | $ | 68,894 | $ | 11,757 | 17.1 | % | ||||||||||||||||||
Interest income on notes receivable | 164 | 1,317 | (1,153) | (87.5) | % | |||||||||||||||||||||
Total revenues | 80,815 | 70,211 | 10,604 | 15.1 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating and maintenance | 9,831 | 7,409 | 2,422 | 32.7 | % | |||||||||||||||||||||
Property management fees | 1,921 | 2,345 | (424) | (18.1) | % | |||||||||||||||||||||
Real estate taxes and insurance | 11,685 | 10,041 | 1,644 | 16.4 | % | |||||||||||||||||||||
General and administrative | 2,680 | 577 | 2,103 | 364.5 | % | |||||||||||||||||||||
Equity compensation to directors and executives | 47 | 53 | (6) | (11.3) | % | |||||||||||||||||||||
Depreciation and amortization | 39,410 | 32,644 | 6,766 | 20.7 | % | |||||||||||||||||||||
Asset management and general and administrative | ||||||||||||||||||||||||||
expense fees to related parties | 720 | 5,274 | (4,554) | (86.3) | % | |||||||||||||||||||||
Total operating expenses | 66,294 | 58,343 | 7,951 | 13.6 | % | |||||||||||||||||||||
Waived asset management and general and administrative | ||||||||||||||||||||||||||
expense fees | (17) | (296) | 279 | (94.3) | % | |||||||||||||||||||||
Net operating expenses | 66,277 | 58,047 | 8,230 | 14.2 | % | |||||||||||||||||||||
Operating income before gain on sale of real estate and loss from unconsolidated joint venture | 14,538 | 12,164 | 2,374 | 19.5 | % | |||||||||||||||||||||
Loss from unconsolidated joint venture | (120) | — | (120) | — | % | |||||||||||||||||||||
Gain on sale of real estate, net | 3,261 | — | 3,261 | — | % | |||||||||||||||||||||
Operating income | 17,679 | 12,164 | 5,515 | 45.3 | % | |||||||||||||||||||||
Interest expense | 19,876 | 18,123 | 1,753 | 9.7 | % | |||||||||||||||||||||
Loss on extinguishment of debt | — | (68) | 68 | (100.0) | % | |||||||||||||||||||||
Gain on land condemnation | 528 | — | 528 | 100.0 | % | |||||||||||||||||||||
Net income (loss) | $ | (1,669) | $ | (6,027) | $ | 4,358 | (72.3) | % | ||||||||||||||||||
Consolidated net loss (income) attributable to non-controlling interests | $ | (82) | $ | (12) | (70) | 583.3 | % | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | (1,587) | $ | (6,015) | 4,428 | (73.6) | % |
New Market Properties, LLC | Nine months ended September 30, | Change inc (dec) | |||||||||||||
2019 | 2018 | Amount | Percentage | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 68,529 | $ | 54,209 | $ | 14,320 | 26.4 | % | |||||||
Other property revenues | 365 | 420 | (55 | ) | (13.1 | )% | |||||||||
Interest income on loans and notes receivable | 1,317 | 1,504 | (187 | ) | (12.4 | )% | |||||||||
Total revenues | 70,211 | 56,133 | 14,078 | 25.1 | % | ||||||||||
Operating expenses: | |||||||||||||||
Property operating and maintenance | 6,947 | 6,065 | 882 | 14.5 | % | ||||||||||
Property management fees | 2,345 | 2,013 | 332 | 16.5 | % | ||||||||||
Real estate taxes | 8,998 | 6,831 | 2,167 | 31.7 | % | ||||||||||
General and administrative | 893 | 689 | 204 | 29.6 | % | ||||||||||
Equity compensation to directors and executives | 53 | 446 | (393 | ) | (88.1 | )% | |||||||||
Depreciation and amortization | 32,644 | 28,519 | 4,125 | 14.5 | % | ||||||||||
Asset management and general and administrative | |||||||||||||||
expense fees to related parties | 5,274 | 4,201 | 1,073 | 25.5 | % | ||||||||||
Insurance, professional fees and other expenses | 1,189 | 814 | 375 | 46.1 | % | ||||||||||
Total operating expenses | 58,343 | 49,578 | 8,765 | 17.7 | % | ||||||||||
Waived asset management and general and administrative | |||||||||||||||
expense fees | (296 | ) | (251 | ) | (45 | ) | 17.9 | % | |||||||
Net operating expenses | 58,047 | 49,327 | 8,720 | 17.7 | % | ||||||||||
Operating income | 12,164 | 6,806 | 5,358 | 78.7 | % | ||||||||||
Interest expense | 18,123 | 14,056 | 4,067 | 28.9 | % | ||||||||||
Loss on extinguishment of debt | 68 | — | 68 | — | % | ||||||||||
Net income (loss) | (6,027 | ) | (7,250 | ) | 1,223 | (16.9 | )% | ||||||||
Consolidated net (income) loss attributable to non-controlling | |||||||||||||||
interests | (12 | ) | — | (12 | ) | — | % | ||||||||
Net income (loss) attributable to the Company | $ | (6,015 | ) | $ | (7,250 | ) | $ | 1,235 | (17.0 | )% |
Acquisition date | Property | Location | Units | Beds | Leasable square feet | |||||||||||||||||||||||||||||||||
Residential Properties: | ||||||||||||||||||||||||||||||||||||||
3/27/2019 | Haven49 | Charlotte, NC | 322 | 887 | - | |||||||||||||||||||||||||||||||||
8/8/2019 | Artisan at Viera | Melbourne, FL | 259 | - | - | |||||||||||||||||||||||||||||||||
9/18/2019 | Five Oaks at Westchase | Tampa, FL | 218 | - | - | |||||||||||||||||||||||||||||||||
3/31/2020 | Horizon at Wiregrass | Tampa, FL | 392 | - | - | |||||||||||||||||||||||||||||||||
4/30/2020 | Parkside at the Beach | Panama City Beach, FL | 288 | - | - | |||||||||||||||||||||||||||||||||
New Market Properties: | ||||||||||||||||||||||||||||||||||||||
1/17/2019 | Gayton Crossing | Richmond, VA | - | - | 158,316 | |||||||||||||||||||||||||||||||||
5/28/2019 | Free State Shopping Center | Washington, D.C. | - | - | 264,152 | |||||||||||||||||||||||||||||||||
6/12/2019 | Disston Plaza | Tampa - St. Petersburg, FL | - | - | 129,150 | |||||||||||||||||||||||||||||||||
6/12/2019 | Polo Grounds Mall | West Palm Beach, FL | - | - | 130,285 | |||||||||||||||||||||||||||||||||
8/16/2019 | Fairfield Shopping Center (1) | Virginia Beach, VA | - | - | 231,829 | |||||||||||||||||||||||||||||||||
11/14/2019 | Berry Town Center | Orlando, FL | - | - | 99,441 | |||||||||||||||||||||||||||||||||
12/19/2019 | Hanover Shopping Center (1) | Wilmington, NC | - | - | 305,346 | |||||||||||||||||||||||||||||||||
1/29/2020 | Wakefield Crossing | Raleigh, NC | - | - | 75,927 | |||||||||||||||||||||||||||||||||
3/19/2020 | Midway Market | Dallas, TX | - | - | 85,599 | |||||||||||||||||||||||||||||||||
Preferred Office Properties: | ||||||||||||||||||||||||||||||||||||||
7/25/2019 | CAPTRUST Tower (1) | Raleigh, NC | - | - | 300,000 | |||||||||||||||||||||||||||||||||
7/31/2019 | 251 Armour | Atlanta, GA | - | - | 35,000 | |||||||||||||||||||||||||||||||||
12/20/2019 | Morrocroft Centre (1) | Charlotte, NC | - | - | 291,000 | |||||||||||||||||||||||||||||||||
1,479 | 887 | 2,106,045 |
Acquisition date | Property | Location | Units | Beds | Leasable square feet | ||||||||||
Multifamily communities: | |||||||||||||||
1/9/2018 | The Lux at Sorrel | Jacksonville, FL | 265 | n/a | n/a | ||||||||||
2/28/2018 | Green Park | Atlanta, GA | 310 | n/a | n/a | ||||||||||
9/27/2018 | The Lodge at Hidden River | Tampa, FL | 300 | n/a | n/a | ||||||||||
11/9/2018 | Vestavia Reserve | Birmingham, AL | 272 | n/a | n/a | ||||||||||
11/15/2018 | CityPark View South (1) | Charlotte, NC | 200 | n/a | n/a | ||||||||||
8/8/2019 | Artisan at Viera | Melbourne, FL | 259 | n/a | n/a | ||||||||||
9/18/2019 | Five Oaks at Westchase | Tampa, FL | 218 | n/a | n/a | ||||||||||
New Market Properties: | |||||||||||||||
4/27/2018 | Greensboro Village | Nashville, TN | n/a | n/a | 70,203 | ||||||||||
4/27/2018 | Governors Towne Square | Atlanta, GA | n/a | n/a | 68,658 | ||||||||||
6/26/2018 | Neapolitan Way | Naples, FL | n/a | n/a | 137,580 | ||||||||||
6/29/2018 | Conway Plaza | Orlando, FL | n/a | n/a | 117,705 | ||||||||||
7/6/2018 | Brawley Commons | Charlotte, NC | n/a | n/a | 122,028 | ||||||||||
12/21/2018 | Hollymead Town Center | Charlottesville, VA | n/a | n/a | 158,807 | ||||||||||
1/17/2019 | Gayton Crossing | Richmond, VA | n/a | n/a | 158,316 | ||||||||||
5/28/2019 | Free State Shopping Center | Washington, D.C. | n/a | n/a | 264,152 | ||||||||||
6/12/2019 | Disston Plaza | Tampa - St. Petersburg, FL | n/a | n/a | 129,150 | ||||||||||
6/12/2019 | Polo Grounds Mall | West Palm Beach, FL | n/a | n/a | 130,285 | ||||||||||
8/16/2019 | Fairfield Shopping Center | Virginia Beach, VA | n/a | n/a | 231,829 | ||||||||||
Student housing properties: | |||||||||||||||
5/10/2018 | The Tradition | College Station, TX | 427 | 808 | n/a | ||||||||||
5/31/2018 | The Retreat at Orlando | Orlando, FL | 221 | 894 | n/a | ||||||||||
6/27/2018 | The Bloc | Lubbock, TX | 140 | 556 | n/a | ||||||||||
3/27/2019 | Haven49 | Charlotte, NC | 322 | 887 | n/a | ||||||||||
Preferred Office Properties: | |||||||||||||||
1/29/2018 | Armour Yards | Atlanta, GA | n/a | n/a | 187,000 | ||||||||||
7/31/2018 | 150 Fayetteville | Raleigh, NC | n/a | n/a | 560,000 | ||||||||||
12/20/2018 | Capitol Towers | Charlotte, NC | n/a | n/a | 479,000 | ||||||||||
7/25/2019 | CAPTRUST Tower | Raleigh, NC | n/a | n/a | 300,000 | ||||||||||
7/31/2019 | 251 Armour | Atlanta, GA | n/a | n/a | 35,000 | ||||||||||
2,934 | 3,145 | 3,149,713 |
Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||||||
2019 versus 2018 | 2019 versus 2018 | |||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||
Rental revenues | Amount (rounded to 000s): | Percent of increase | Amount (rounded to 000s): | Percent of increase | ||||||||||
Properties acquired since January 1, 2018 | $ | 20,132 | 116.3 | % | $ | 61,844 | 113.8 | % | ||||||
Properties sold since January 1, 2018 | (2,999 | ) | (17.3 | )% | (9,838 | ) | (18.1 | )% | ||||||
Properties acquired in 2011 - 2017 | 184 | 1.0 | % | 2,327 | 4.3 | % | ||||||||
Total | $ | 17,317 | 100.0 | % | $ | 54,333 | 100.0 | % |
Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||||||
2019 versus 2018 | 2019 versus 2018 | |||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||
Property operating and maintenance expense | Amount (rounded to 000s): | Percent of increase | Amount (rounded to 000s): | Percent of increase | ||||||||||
Properties acquired since January 1, 2018 | $ | 2,704 | 132.9 | % | $ | 8,569 | 134.3 | % | ||||||
Properties sold since January 1, 2018 | (521 | ) | (25.6 | )% | (1,741 | ) | (27.3 | )% | ||||||
Properties acquired in 2011 - 2017 | (148 | ) | (7.3 | )% | (447 | ) | (7.0 | )% | ||||||
Total | $ | 2,035 | 100.0 | % | $ | 6,381 | 100.0 | % |
Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||||||
2019 versus 2018 | 2019 versus 2018 | |||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||
Property salary and benefits | Amount (rounded to 000s): | Percent of increase | Amount (rounded to 000s): | Percent of increase | ||||||||||
Properties acquired since January 1, 2018 | $ | 729 | 162.4 | % | $ | 2,596 | 143.7 | % | ||||||
Properties sold since January 1, 2018 | (275 | ) | (61.2 | )% | (925 | ) | (51.2 | )% | ||||||
Properties acquired in 2011 - 2017 | (5 | ) | (1.2 | )% | 136 | 7.5 | % | |||||||
Total | $ | 449 | 100.0 | % | $ | 1,807 | 100.0 | % |
Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||||||
2019 versus 2018 | 2019 versus 2018 | |||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||
Property management fees | Amount (rounded to 000s): | Percent of increase | Amount (rounded to 000s): | Percent of increase | ||||||||||
Properties acquired since January 1, 2018 | $ | 584 | 109.0 | % | $ | 1,943 | 118.2 | % | ||||||
Properties sold since January 1, 2018 | (125 | ) | (23.4 | )% | (412 | ) | (25.1 | )% | ||||||
Properties acquired in 2011 - 2017 | 77 | 14.4 | % | 113 | 6.9 | % | ||||||||
Total | $ | 536 | 100.0 | % | $ | 1,644 | 100.0 | % |
Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||||||
2019 versus 2018 | 2019 versus 2018 | |||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||
Real estate taxes | Amount (rounded to 000s): | Percent of increase | Amount (rounded to 000s): | Percent of increase | ||||||||||
Properties acquired since January 1, 2018 | $ | 2,111 | 92.9 | % | $ | 7,038 | 96.7 | % | ||||||
Properties sold since January 1, 2018 | (415 | ) | (18.3 | )% | (1,215 | ) | (16.7 | )% | ||||||
Properties acquired in 2011 - 2017 | 577 | 25.4 | % | 1,456 | 20.0 | % | ||||||||
Total | $ | 2,273 | 100.0 | % | $ | 7,279 | 100.0 | % |
Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||||||
2019 versus 2018 | 2019 versus 2018 | |||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||
General and administrative expense | Amount (rounded to 000s): | Percent of increase | Amount (rounded to 000s): | Percent of increase | ||||||||||
Taxes, licenses and fees | $ | (11 | ) | 3.3 | % | $ | 414 | 102.0 | % | |||||
Properties acquired since January 1, 2018 | $ | (37 | ) | 11.5 | % | $ | 673 | 165.8 | % | |||||
Properties sold since January 1, 2018 | (59 | ) | 18.3 | % | (217 | ) | (53.5 | )% | ||||||
Properties acquired in 2011 - 2017 | (216 | ) | 66.9 | % | (464 | ) | (114.3 | )% | ||||||
Total | $ | (323 | ) | 100.0 | % | $ | 406 | 100.0 | % |
Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||||||
2019 versus 2018 | 2019 versus 2018 | |||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||
Insurance, professional fees and other expenses | Amount (rounded to 000s): | Percent of increase | Amount (rounded to 000s): | Percent of increase | ||||||||||
Audit and tax fees | $ | 143 | 8.2 | % | $ | 147 | 4.2 | % | ||||||
Insurance premiums and claims | 504 | 29.0 | % | 1,591 | 45.4 | % | ||||||||
Legal fees | 271 | 15.6 | % | 506 | 14.4 | % | ||||||||
Internalization costs | 818 | 47.0 | % | 1,143 | 32.6 | % | ||||||||
Other professional fees | 4 | 0.2 | % | 118 | 3.4 | % | ||||||||
Total | $ | 1,740 | 100.0 | % | $ | 3,505 | 100.0 | % |
Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||||||
2019 versus 2018 | 2019 versus 2018 | |||||||||||||
Increase (decrease) | Increase (decrease) | |||||||||||||
Interest expense | Amount (rounded to 000s): | Percent of increase | Amount (rounded to 000s): | Percent of increase | ||||||||||
Properties acquired since January 1, 2018 | $ | 5,901 | 187.8 | % | $ | 19,734 | 139.0 | % | ||||||
Properties sold since January 1, 2018 | (539 | ) | (17.2 | )% | (1,767 | ) | (12.4 | )% | ||||||
Properties acquired in 2011 - 2017 | (389 | ) | (12.4 | )% | (419 | ) | (3.0 | )% | ||||||
KeyBank operating LOC and Term Notes | (1,029 | ) | (32.7 | )% | (1,718 | ) | (12.1 | )% | ||||||
Loan participants | (802 | ) | (25.5 | )% | (1,636 | ) | (11.5 | )% | ||||||
Total | $ | 3,142 | 100.0 | % | $ | 14,194 | 100.0 | % |
Reconciliation of FFO Attributable to Common Stockholders and Unitholders and AFFO | |||||||||||
to Net (Loss) Income Attributable to Common Stockholders (A) | |||||||||||
Three months ended September 30, | |||||||||||
(In thousands, except per-share figures) | 2019 | 2018 | |||||||||
Net loss attributable to common stockholders (See note 1) | $ | (31,529 | ) | $ | (14,227 | ) | |||||
Add: | Depreciation of real estate assets | 37,381 | 33,037 | ||||||||
Amortization of acquired real estate intangible assets and deferred leasing costs | 8,386 | 11,058 | |||||||||
Net loss attributable to non-controlling interests (See note 2) | (59 | ) | 216 | ||||||||
Less: | (Gain) loss on sale of real estate | — | (18,605 | ) | |||||||
FFO attributable to common stockholders and unitholders | 14,179 | 11,479 | |||||||||
Add: | Loan cost amortization on acquisition term note | 19 | 19 | ||||||||
Amortization of loan coordination fees paid to the Manager (See note 3) | 492 | 673 | |||||||||
Payment of costs related to property refinancing | 170 | — | |||||||||
Weather-related property operating losses | — | 161 | |||||||||
Non-cash equity compensation to directors and executives | 305 | 796 | |||||||||
Amortization of loan closing costs (See note 4) | 1,168 | 1,309 | |||||||||
Depreciation/amortization of non-real estate assets | 472 | 404 | |||||||||
Net loan fees received (See note 5) | 148 | 248 | |||||||||
Accrued interest income received (See note 6) | — | 4,298 | |||||||||
Internalization costs (See note 7) | 818 | — | |||||||||
Loan loss allowance | — | 3,029 | |||||||||
Deemed dividends from cash redemptions of preferred stock | 5 | 2 | |||||||||
Amortization of lease inducements (See note 8) | 435 | 387 | |||||||||
Non-cash dividends on Preferred Stock | 147 | 63 | |||||||||
Less: | Non-cash loan interest income (See note 6) | (3,763 | ) | (4,104 | ) | ||||||
Non-cash revenues from mortgage-backed securities | (281 | ) | (131 | ) | |||||||
Cash paid for loan closing costs | (29 | ) | (25 | ) | |||||||
Amortization of purchase option termination revenues (See note 9) | (1,283 | ) | (4,478 | ) | |||||||
Amortization of acquired above and below market lease intangibles | |||||||||||
and straight-line rental revenues (See note 10) | (4,293 | ) | (3,353 | ) | |||||||
Amortization of deferred revenues (See note 11) | (940 | ) | (680 | ) | |||||||
Normally recurring capital expenditures and leasing costs (See note 12) | (2,379 | ) | (1,528 | ) | |||||||
AFFO | $ | 5,390 | $ | 8,569 | |||||||
Common Stock dividends and distributions to Unitholders declared: | |||||||||||
Common Stock dividends | $ | 11,823 | $ | 10,377 | |||||||
Distributions to Unitholders (See note 2) | 225 | 272 | |||||||||
Total | $ | 12,048 | $ | 10,649 | |||||||
Common Stock dividends and Unitholder distributions per share | $ | 0.2625 | $ | 0.255 | |||||||
FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.31 | $ | 0.28 | |||||||
AFFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.12 | $ | 0.21 | |||||||
Weighted average shares of Common Stock and Units outstanding: (A) | |||||||||||
Basic: | 44,703 | 40,300 | |||||||||
Common Stock | 868 | 1,069 | |||||||||
Class A Units | 45,571 | 41,369 | |||||||||
Common Stock and Class A Units | |||||||||||
Diluted Common Stock and Class A Units (B) | 45,768 | 42,890 | |||||||||
Actual shares of Common Stock outstanding, including 20 and 19 unvested shares | |||||||||||
of restricted Common Stock at September 30, 2019 and 2018, respectively. | 45,355 | 40,804 | |||||||||
Actual Class A Units outstanding at September 30, 2019 and 2018, respectively. | 856 | 1,068 | |||||||||
Total | 46,211 | 41,872 | |||||||||
(A) Units and Unitholders refer to Class A Units in our Operating Partnership (as defined in note 2), or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 1.90% weighted average non-controlling interest in the Operating Partnership for the three-month period ended September 30, 2019. | |||||||||||
(B) Since our FFO and AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. |
Reconciliation of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO | |||||||||||||||||||||||
to Net (Loss) Income Attributable to Common Stockholders (A) | |||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||
(In thousands, except per-share figures) | 2020 | 2019 | |||||||||||||||||||||
Net loss attributable to common stockholders (See note 1) | $ | (39,499) | $ | (31,529) | |||||||||||||||||||
Add: | Depreciation of real estate assets | 41,282 | 37,381 | ||||||||||||||||||||
Amortization of acquired intangible assets and deferred leasing costs | 9,978 | 8,386 | |||||||||||||||||||||
Net loss attributable to Class A Unitholders (See note 2) | (50) | (59) | |||||||||||||||||||||
Gain on sale of real estate | (3,261) | — | |||||||||||||||||||||
FFO attributable to common stockholders and unitholders | 8,450 | 14,179 | |||||||||||||||||||||
Aquisition and pursuit costs | 3 | — | |||||||||||||||||||||
Loan cost amortization on acquisition term notes and loan coordination fees (See note 3) | 505 | 511 | |||||||||||||||||||||
Payment of costs related to property refinancing | 509 | 170 | |||||||||||||||||||||
Internalization costs (See note 4) | 577 | 818 | |||||||||||||||||||||
Deemed dividends for redemptions of and non-cash dividends on preferred stock | 3,061 | 152 | |||||||||||||||||||||
Expenses incurred on the potential call of preferred stock (See note 5) | 46 | — | |||||||||||||||||||||
Expenses related to the COVID-19 global pandemic (See note 6) | 138 | — | |||||||||||||||||||||
Core FFO attributable to common stockholders and unitholders | 13,289 | 15,830 | |||||||||||||||||||||
Add: | Non-cash equity compensation to directors and executives | 582 | 305 | ||||||||||||||||||||
Noncash (income) expense for current expected credit losses (See note 7) | (761) | — | |||||||||||||||||||||
Amortization of loan closing costs (See note 8) | 1,288 | 1,168 | |||||||||||||||||||||
Depreciation/amortization of non-real estate assets | 621 | 472 | |||||||||||||||||||||
Net loan origination fees received (See note 9) | 415 | 148 | |||||||||||||||||||||
Deferred interest income received (See note 10) | 375 | — | |||||||||||||||||||||
Amortization of lease inducements (See note 11) | 448 | 435 | |||||||||||||||||||||
Less: | Amortization of purchase option termination revenues in excess of cash received (See note 12) | (421) | (1,283) | ||||||||||||||||||||
Non-cash loan interest income (See note 10) | (3,317) | (3,763) | |||||||||||||||||||||
Cash received for sale of K Program securities in excess of noncash revenues | — | (281) | |||||||||||||||||||||
Cash paid for loan closing costs | (106) | (29) | |||||||||||||||||||||
Amortization of acquired real estate intangible liabilities and SLR (See note 13) | (4,887) | (4,293) | |||||||||||||||||||||
Amortization of deferred revenues (See note 14) | (940) | (940) | |||||||||||||||||||||
Normally recurring capital expenditures (See note 15) | (2,983) | (2,379) | |||||||||||||||||||||
AFFO attributable to common stockholders and Unitholders | $ | 3,603 | $ | 5,390 | |||||||||||||||||||
Common Stock dividends and distributions to Unitholders declared: | |||||||||||||||||||||||
Common Stock dividends | $ | 8,780 | $ | 11,823 | |||||||||||||||||||
Distributions to Unitholders (See note 2) | 226 | 225 | |||||||||||||||||||||
Total | $ | 9,006 | $ | 12,048 | |||||||||||||||||||
Common Stock dividends and Unitholder distributions per share | $ | 0.1750 | $ | 0.2625 | |||||||||||||||||||
FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.17 | $ | 0.31 | |||||||||||||||||||
Core FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.26 | $ | 0.35 | |||||||||||||||||||
AFFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.07 | $ | 0.12 | |||||||||||||||||||
Weighted average shares of Common Stock and Units outstanding: (A) | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Common Stock | 49,689 | 44,703 | |||||||||||||||||||||
Class A Units | 742 | 868 | |||||||||||||||||||||
Common Stock and Class A Units | 50,431 | 45,571 | |||||||||||||||||||||
Diluted Common Stock and Class A Units (B) | 50,433 | 45,768 | |||||||||||||||||||||
Actual shares of Common Stock outstanding, including 548 and 20 unvested shares | |||||||||||||||||||||||
of restricted Common Stock at September 30, 2020 and 2019, respectively. | 50,449 | 45,355 | |||||||||||||||||||||
Actual Class A Units outstanding at September 30, 2020 and 2019, respectively. | 742 | 856 | |||||||||||||||||||||
Total | 51,191 | 46,211 | |||||||||||||||||||||
(A) Units and Unitholders refer to Class A Units in our Operating Partnership (as defined in note 2), or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 1.47% weighted average non-controlling interest in the Operating Partnership for the three-month period ended September 30, 2020. | |||||||||||||||||||||||
(B) Since our AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock and restricted stock units. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. |
Reconciliation of FFO Attributable to Common Stockholders and Unitholders and AFFO | ||||||||||||||||||||||||||||||||||
Reconciliation of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO | Reconciliation of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO | |||||||||||||||||||||||||||||||||
to Net (Loss) Income Attributable to Common Stockholders (A) | to Net (Loss) Income Attributable to Common Stockholders (A) | to Net (Loss) Income Attributable to Common Stockholders (A) | ||||||||||||||||||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||
(In thousands, except per-share figures) | (In thousands, except per-share figures) | 2019 | 2018 | (In thousands, except per-share figures) | 2020 | 2019 | ||||||||||||||||||||||||||||
Net loss attributable to common stockholders (See note 1) | Net loss attributable to common stockholders (See note 1) | $ | (88,497 | ) | $ | (45,931 | ) | Net loss attributable to common stockholders (See note 1) | $ | (300,270) | $ | (88,497) | ||||||||||||||||||||||
Add: | Depreciation of real estate assets | 109,408 | 90,190 | Add: | Depreciation of real estate assets | 122,053 | 109,408 | |||||||||||||||||||||||||||
Amortization of acquired real estate intangible assets and deferred leasing costs | 26,402 | 35,963 | Amortization of acquired intangible assets and deferred leasing costs | 28,933 | 26,402 | |||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests (See note 2) | (138 | ) | 456 | Net loss attributable to Class A Unitholders (See note 2) | (3,393) | (138) | ||||||||||||||||||||||||||||
Less: | (Gain) loss on sale of real estate | — | (38,961 | ) | ||||||||||||||||||||||||||||||
Gain on sale of real estate | (3,261) | — | ||||||||||||||||||||||||||||||||
FFO attributable to common stockholders and unitholders | FFO attributable to common stockholders and unitholders | 47,175 | 41,717 | FFO attributable to common stockholders and unitholders | (155,938) | 47,175 | ||||||||||||||||||||||||||||
Add: | Loan cost amortization on acquisition term note | 58 | 63 | |||||||||||||||||||||||||||||||
Amortization of loan coordination fees paid to the Manager (See note 3) | 1,433 | 1,780 | Acquisition and pursuit costs | 381 | — | |||||||||||||||||||||||||||||
Payment of costs related to property refinancing | 594 | 61 | Loan cost amortization on acquisition term notes and loan coordination fees (See note 3) | 1,711 | 1,491 | |||||||||||||||||||||||||||||
Weather-related property operating losses | — | (33 | ) | Payment of costs related to property refinancing | 7,372 | 594 | ||||||||||||||||||||||||||||
Non-cash equity compensation to directors and executives | 922 | 2,881 | Internalization costs (See note 4) | 179,828 | 1,143 | |||||||||||||||||||||||||||||
Amortization of loan closing costs (See note 4) | 3,458 | 3,567 | Deemed dividends for redemptions of and non-cash dividends on preferred stock | 6,377 | 371 | |||||||||||||||||||||||||||||
Expenses incurred on the potential call of preferred stock (See note 5) | 46 | — | ||||||||||||||||||||||||||||||||
Expenses related to the COVID-19 global pandemic (See note 6) | 586 | — | ||||||||||||||||||||||||||||||||
Earnest money forfeited by prospective asset purchaser | (2,750) | — | ||||||||||||||||||||||||||||||||
Core FFO attributable to common stockholders and unitholders | Core FFO attributable to common stockholders and unitholders | 37,613 | 50,774 | |||||||||||||||||||||||||||||||
Add: | Add: | Non-cash equity compensation to directors and executives | 1,058 | 922 | ||||||||||||||||||||||||||||||
Depreciation/amortization of non-real estate assets | 1,381 | 1,057 | Noncash (income) expense for current expected credit losses (See note 7) | 3,647 | — | |||||||||||||||||||||||||||||
Net loan fees received (See note 5) | 674 | 1,459 | Amortization of loan closing costs (See note 8) | 3,631 | 3,458 | |||||||||||||||||||||||||||||
Accrued interest income received (See note 6) | 5,078 | 8,410 | Depreciation/amortization of non-real estate assets | 1,793 | 1,381 | |||||||||||||||||||||||||||||
Internalization costs (See note 7) | 1,143 | — | Net loan origination fees received (See note 9) | 882 | 674 | |||||||||||||||||||||||||||||
Loan loss allowance | — | 3,029 | Deferred interest income received (See note 10) | 8,652 | 5,078 | |||||||||||||||||||||||||||||
Deemed dividends from cash redemptions of preferred stock | 12 | 522 | Amortization of lease inducements (See note 11) | 1,334 | 1,295 | |||||||||||||||||||||||||||||
Amortization of lease inducements (See note 8) | 1,295 | 955 | Amortization of purchase option termination revenues in excess of cash received (See note 12) | (96) | (2,370) | |||||||||||||||||||||||||||||
Non-cash dividends on Preferred Stock | 359 | 216 | Non-operating miscellaneous revenues | 2,750 | — | |||||||||||||||||||||||||||||
Less: | Non-cash loan interest income (See note 6) | (10,745 | ) | (14,726 | ) | Less: | Non-cash loan interest income (See note 10) | (9,445) | (10,745) | |||||||||||||||||||||||||
Non-cash revenues from mortgage-backed securities | (696 | ) | (185 | ) | Non-cash revenues from mortgage-backed securities | — | (696) | |||||||||||||||||||||||||||
Cash paid for loan closing costs | (37 | ) | (416 | ) | Cash paid for loan closing costs | (106) | (37) | |||||||||||||||||||||||||||
Amortization of purchase option termination revenues (See note 9) | (2,370 | ) | (1,964 | ) | Amortization of acquired real estate intangible liabilities and SLR (See note 13) | (13,684) | (12,375) | |||||||||||||||||||||||||||
Amortization of acquired above and below market lease intangibles | Amortization of deferred revenues (See note 14) | (2,821) | (2,821) | |||||||||||||||||||||||||||||||
and straight-line rental revenues (See note 10) | (12,375 | ) | (9,047 | ) | Normally recurring capital expenditures (See note 15) | (6,525) | (5,122) | |||||||||||||||||||||||||||
Amortization of deferred revenues (See note 11) | (2,821 | ) | (1,765 | ) | ||||||||||||||||||||||||||||||
Normally recurring capital expenditures and leasing costs (See note 12) | (5,122 | ) | (3,482 | ) | ||||||||||||||||||||||||||||||
AFFO | $ | 29,416 | $ | 34,099 | ||||||||||||||||||||||||||||||
AFFO attributable to common stockholders and Unitholders | AFFO attributable to common stockholders and Unitholders | $ | 28,683 | $ | 29,416 | |||||||||||||||||||||||||||||
Common Stock dividends and distributions to Unitholders declared: | Common Stock dividends and distributions to Unitholders declared: | Common Stock dividends and distributions to Unitholders declared: | ||||||||||||||||||||||||||||||||
Common Stock dividends | $ | 34,599 | $ | 30,283 | Common Stock dividends | 29,895 | 34,599 | |||||||||||||||||||||||||||
Distributions to Unitholders (See note 2) | 683 | 813 | Distributions to Unitholders (See note 2) | 559 | 683 | |||||||||||||||||||||||||||||
Total | $ | 35,282 | $ | 31,096 | Total | 30,454 | 35,282 | |||||||||||||||||||||||||||
Common Stock dividends and Unitholder distributions per share | Common Stock dividends and Unitholder distributions per share | $ | 0.7850 | $ | 0.76 | Common Stock dividends and Unitholder distributions per share | $ | 0.6125 | $ | 0.785 | ||||||||||||||||||||||||
FFO per weighted average basic share of Common Stock and Unit outstanding | FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 1.06 | $ | 1.03 | FFO per weighted average basic share of Common Stock and Unit outstanding | $ | (3.17) | $ | 1.06 | ||||||||||||||||||||||||
Core FFO per weighted average basic share of Common Stock and Unit outstanding | Core FFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.77 | $ | 1.14 | |||||||||||||||||||||||||||||
AFFO per weighted average basic share of Common Stock and Unit outstanding | AFFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.66 | $ | 0.84 | AFFO per weighted average basic share of Common Stock and Unit outstanding | $ | 0.58 | $ | 0.66 | ||||||||||||||||||||||||
Weighted average shares of Common Stock and Units outstanding: (A) | Weighted average shares of Common Stock and Units outstanding: (A) | Weighted average shares of Common Stock and Units outstanding: (A) | ||||||||||||||||||||||||||||||||
Basic: | 43,703 | 39,598 | Basic: | |||||||||||||||||||||||||||||||
Common Stock | 875 | 1,070 | Common Stock | 48,351 | 43,703 | |||||||||||||||||||||||||||||
Class A Units | 44,578 | 40,668 | Class A Units | 776 | 875 | |||||||||||||||||||||||||||||
Common Stock and Class A Units | Common Stock and Class A Units | 49,127 | 44,578 | |||||||||||||||||||||||||||||||
Diluted Common Stock and Class A Units (B) | 45,235 | 41,936 | Diluted Common Stock and Class A Units (B) | 49,144 | 45,235 | |||||||||||||||||||||||||||||
Actual shares of Common Stock outstanding, including 20 and 19 unvested shares | ||||||||||||||||||||||||||||||||||
of restricted Common Stock at September 30, 2019 and 2018, respectively. | 45,355 | 40,804 | ||||||||||||||||||||||||||||||||
Actual Class A Units outstanding at September 30, 2019 and 2018, respectively. | 856 | 1,068 | ||||||||||||||||||||||||||||||||
Actual shares of Common Stock outstanding, including 548 and 20 unvested shares | Actual shares of Common Stock outstanding, including 548 and 20 unvested shares | |||||||||||||||||||||||||||||||||
of restricted Common Stock at September 30, 2020 and 2019, respectively. | of restricted Common Stock at September 30, 2020 and 2019, respectively. | 50,449 | 45,355 | |||||||||||||||||||||||||||||||
Actual Class A Units outstanding at September 30, 2020 and 2019, respectively. | Actual Class A Units outstanding at September 30, 2020 and 2019, respectively. | 742 | 856 | |||||||||||||||||||||||||||||||
Total | 46,211 | 41,872 | Total | 51,191 | 46,211 | |||||||||||||||||||||||||||||
(A) Units and Unitholders refer to Class A Units in our Operating Partnership (as defined in note 2), or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 1.96% weighted average non-controlling interest in the Operating Partnership for the nine-month period ended September 30, 2019. | ||||||||||||||||||||||||||||||||||
(B) Since our FFO and AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. | ||||||||||||||||||||||||||||||||||
(A) Units and Unitholders refer to Class A Units in our Operating Partnership (as defined in note 2), or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 1.58% weighted average non-controlling interest in the Operating Partnership for the nine-month period ended September 30, 2020. | (A) Units and Unitholders refer to Class A Units in our Operating Partnership (as defined in note 2), or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 1.58% weighted average non-controlling interest in the Operating Partnership for the nine-month period ended September 30, 2020. | |||||||||||||||||||||||||||||||||
(B) Since our AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock and restricted stock units. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. | (B) Since our AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock and restricted stock units. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders. |
2)Non-controlling interests in Preferred Apartment Communities Operating Partnership, L.P., or our Operating Partnership, consisted of a total of 742,413 Class A Units as of September 30, 2020. Included in this total are 419,228 Class A Units which were granted as partial consideration to the seller in conjunction with theseller's contribution to us on February 29, 2016 of the Wade Green grocery-anchored shopping center. The remaining Class A units were awarded primarily to our key executive officers. The Class A Units are apportioned a percentage of our financial results as non-controlling interests. The weighted average ownership percentage of these holders of Class A Units was calculated to be 1.47% and 1.90% for the three-month periods ended September 30, 2020 and 2019, respectively. 3) We paid loan coordination fees to Preferred Apartment Advisors, LLC, or our Former Manager, to reflect the administrative effort involved in arranging debt financing for acquired properties prior to the Internalization. The fees were calculated as 0.6% of the amount of any mortgage indebtedness on newly-acquired properties or refinancing and are amortized over the lives of the respective mortgage loans. This non-cash amortization expense is an addition to FFO in the calculation of Core FFO and AFFO. At September 30, 2020, aggregate unamortized loan coordination fees were approximately $12.8 million, which will be amortized over a weighted average remaining loan life of approximately 10.2 years. 4) This adjustment reflects the add-back of (i) consideration paid to the owners of the Former Manager and Former Sub-Manager, (ii) accretion of the discount on the deferred liability payable to the owners of the Former Manager and (iii) due diligence and pursuit costs incurred by the Company related to the internalization of the functions performed by the Former Manager. 5) This adjustment adds back expenses incurred by us to effect an amendment of the Company's charter necessary to allow us to redeem outstanding shares of our Series A Preferred Stock beginning on the fifth anniversary of the date of issuance of the shares of Series A Preferred Stock, rather than the tenth anniversary. 6) This additive adjustment to FFO consists of one-time costs for signage, cleaning and supplies necessary to create and maintain work environments necessary to adhere to CDC guidelines during the current COVID-19 pandemic. Since we do not expect to incur similar costs once the COVID-19 pandemic has subsided, we add these costs back to FFO in our calculation of Core FFO. 7) Effective January 1, 2020, we adopted ASU 2016-03, which requires us to estimate the amount of future credit losses we expect to incur over the lives of our real estate loan investments at the inception of each loan. This loss reserve may be adjusted upward or downward over the lives of our loans and therefore the aggregate net adjustment for each period could be positive (removing the non-cash effect of a net increase in aggregate loss reserves) or negative (removing the non-cash effect of a net decrease in aggregate loss reserves) in these adjustments to FFO in calculating Core FFO. 8) We incur loan closing costs on our existing mortgage loans, which are secured on a property-by-property basis by each of our acquired real estate assets, and also for occasional amendments to our syndicated revolving line of credit with Key Bank National Association, or our Revolving Line of Credit. Effective April 13, 2018, the maximum borrowing capacity on the Revolving Line of Credit was increased from $150 million to $200 million. These loan closing costs are also amortized over the lives of the respective loans and the Revolving Line of Credit, and this non-cash amortization expense is an addition to FFO in the calculation of AFFO. Neither we nor the Operating Partnership have any recourse liability in connection with any of the mortgage loans, nor do we have any cross-collateralization arrangements with respect to the assets securing the mortgage loans, other than security interests in 49% of the equity interests of the subsidiaries owning such assets, granted in connection with our Revolving Line of Credit, which provides for full recourse liability. At September 30, 2020, unamortized loan costs on all the Company's indebtedness were approximately $32.3 million, which will be amortized over a weighted average remaining loan life of approximately 8.9 years. 9) We receive loan origination fees in conjunction with the origination of certain real estate loan investments. These fees are then recognized as revenue over the lives of the applicable loans as adjustments of yield using the effective interest method. The total fees received are additive adjustments in the calculation of AFFO. Correspondingly, the amortized non-cash income is a deduction in the calculation of AFFO. Over the lives of certain loans, we accrue additional interest amounts that become due to us at the time of repayment of the loan or refinancing of the property, or when the property is sold. This non-cash interest income is subtracted from Core FFO in our calculation of AFFO. The amount of additional accrued interest becomes an additive adjustment to FFO once received from the borrower (see note 10). 10) This adjustment reflects the receipt during the periods presented of additional interest income (described in note 9 above) which was earned and accrued on various real estate loans prior to those periods and previously deducted in our calculation of AFFO. 11) This adjustment removes the non-cash amortization of costs incurred to induce tenants to lease space in our office buildings and grocery-anchored shopping centers. 70 12) Effective March 6, 2020, our purchase option on the Falls at Forsyth multifamily community was extinguished in conjunction with the loan repayment; effective January 1, 2019, we terminated our purchase options on the Sanibel Straits, Newbergh, Wiregrass and Cameron Square multifamily communities and the Solis Kennesaw student housing property; on May 7, 2018, we terminated our purchase options on the Bishop Street multifamily community and the Haven Charlotte student housing property, both of which are (or were) partially supported by real estate loan investments held by us. In exchange, we arranged to receive termination fees aggregating approximately $17.2 million from the developers, which are recorded as revenue over the period beginning on the date of election until the earlier of (i) the maturity of the real estate loan investment and (ii) the sale of the property. The receipt of the cash termination fees are an additive adjustment in our calculation of AFFO and the removal of non-cash revenue from the recognition of the termination fees are a reduction to Core FFO in our calculation of AFFO; both of these adjustments are presented in a single net number within this line. For all periods presented, we had recognized termination fee revenues in excess of cash received, resulting in the negative adjustments shown to Core FFO in our calculation of AFFO. 13) This adjustment reflects straight-line rent adjustments and the reversal of the non-cash amortization of below-market and above-market lease intangibles, which were recognized in conjunction with our acquisitions and which are amortized over the estimated average remaining lease terms from the acquisition date for multifamily communities and over the remaining lease terms for grocery-anchored |
15) We deduct from Core FFO normally recurring capital expenditures that are necessary to maintain our assets’ revenue streams in the calculation of AFFO. This adjustment also deducts from Core FFO capitalized amounts for third party costs during the period to originate or renew leases in our grocery-anchored shopping centers and office buildings. This adjustment includes approximately $28,000 and $100,000 of recurring capitalized expenditures incurred at our corporate offices during the three-month and nine-month periods ended September 30, 2020, respectively. No adjustment is made in the calculation of AFFO for nonrecurring capital expenditures. See Capital Expenditures, Grocery-Anchored Shopping Center Portfolio, and Office Buildings Portfolio sections for definitions of these terms. |
(In thousands, except per-unit amounts) | Capital Expenditures | ||||||||||||||||||||||||||||||||||
Recurring | Non-recurring | Total | |||||||||||||||||||||||||||||||||
Amount | Per Unit | Amount | Per Unit | Amount | Per Unit | ||||||||||||||||||||||||||||||
Appliances | $ | 552 | $ | 51.77 | $ | — | $ | — | $ | 552 | $ | 51.77 | |||||||||||||||||||||||
Carpets | 1,246 | 116.78 | — | — | 1,246 | 116.78 | |||||||||||||||||||||||||||||
Wood flooring / vinyl | 89 | 8.36 | 368 | 34.56 | 457 | 42.92 | |||||||||||||||||||||||||||||
Blinds and ceiling fans | 158 | 14.79 | — | — | 158 | 14.79 | |||||||||||||||||||||||||||||
Fire safety | — | — | 411 | 38.57 | 411 | 38.57 | |||||||||||||||||||||||||||||
Furnace, air (HVAC) | 482 | 45.16 | — | — | 482 | 45.16 | |||||||||||||||||||||||||||||
Computers, equipment, misc. | 94 | 8.78 | 181 | 16.93 | 275 | 25.71 | |||||||||||||||||||||||||||||
Elevators | — | — | 75 | 7.00 | 75 | 7.00 | |||||||||||||||||||||||||||||
Exterior painting | — | — | 681 | 63.80 | 681 | 63.80 | |||||||||||||||||||||||||||||
Leasing office / common amenities | 78 | 7.36 | 670 | 62.80 | 748 | 70.16 | |||||||||||||||||||||||||||||
Major structural | — | — | 1,753 | 164.31 | 1,753 | 164.31 | |||||||||||||||||||||||||||||
Cabinets & countertops and unit upgrades | — | — | 770 | 72.21 | 770 | 72.21 | |||||||||||||||||||||||||||||
Landscaping & fencing | — | — | 310 | 29.07 | 310 | 29.07 | |||||||||||||||||||||||||||||
Parking lot | — | — | 84 | 7.90 | 84 | 7.90 | |||||||||||||||||||||||||||||
Signage and sanitation | — | — | 100 | 9.35 | 100 | 9.35 | |||||||||||||||||||||||||||||
$ | 2,699 | $ | 253.00 | $ | 5,403 | $ | 506.50 | $ | 8,102 | $ | 759.50 |
Capital Expenditures | |||||||||||||||||||||||
Recurring | Non-recurring | Total | |||||||||||||||||||||
(In thousands, except per-unit amounts) | Amount | Per Unit | Amount | Per Unit | Amount | Per Unit | |||||||||||||||||
Appliances | $ | 366 | $ | 36.52 | $ | — | $ | — | $ | 366 | $ | 36.52 | |||||||||||
Carpets | 1,116 | 111.40 | — | — | 1,116 | 111.40 | |||||||||||||||||
Wood flooring / vinyl | 240 | 24.00 | 91 | 9.09 | 331 | 33.09 | |||||||||||||||||
Blinds and ceiling fans | 149 | 14.79 | 15 | 1.48 | 164 | 16.27 | |||||||||||||||||
Fire safety | — | — | 146 | 14.54 | 146 | 14.54 | |||||||||||||||||
Furnace, air (HVAC) | 419 | 41.77 | 13 | 1.27 | 432 | 43.04 | |||||||||||||||||
Computers, equipment, misc. | 10 | 1.04 | 201 | 20.07 | 211 | 21.11 | |||||||||||||||||
Elevators | — | — | 33 | 3.33 | 33 | 3.33 | |||||||||||||||||
Exterior painting | — | — | 833 | 83.15 | 833 | 83.15 | |||||||||||||||||
Leasing office / common amenities | 281 | 28.02 | 971 | 96.93 | 1,252 | 124.95 | |||||||||||||||||
Major structural | — | — | 1,886 | 188.17 | 1,886 | 188.17 | |||||||||||||||||
Cabinets & countertop upgrades | — | — | 548 | 54.70 | 548 | 54.70 | |||||||||||||||||
Landscaping & fencing | — | — | 897 | 89.57 | 897 | 89.57 | |||||||||||||||||
Parking lot | — | — | 370 | 36.91 | 370 | 36.91 | |||||||||||||||||
Signage and sanitation | — | — | 94 | 9.39 | 94 | 9.39 | |||||||||||||||||
$ | 2,581 | $ | 257.54 | $ | 6,098 | $ | 608.60 | $ | 8,679 | $ | 866.14 |
Capital Expenditures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recurring | Non-recurring | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per-unit amounts) | Amount | Per Bed | Amount | Per Bed | Amount | Per Bed | (In thousands, except per-unit amounts) | Capital Expenditures | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per-unit amounts) | Recurring | Non-recurring | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Per Bed | Amount | Per Bed | Amount | Per Bed | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Appliances | $ | 64 | $ | 10.97 | $ | — | $ | — | $ | 64 | $ | 10.97 | Appliances | $ | 93 | $ | 15.31 | $ | — | $ | — | $ | 93 | $ | 15.31 | |||||||||||||||||||||||||||||||||
Carpets | 207 | 35.58 | — | — | 207 | 35.58 | Carpets | 207 | 34.00 | — | — | 207 | 34.00 | |||||||||||||||||||||||||||||||||||||||||||||
Wood flooring / vinyl | 5 | 0.81 | 30 | 5.14 | 35 | 5.95 | Wood flooring / vinyl | 9 | 1.50 | — | — | 9 | 1.50 | |||||||||||||||||||||||||||||||||||||||||||||
Blinds and ceiling fans | 26 | 4.50 | — | — | 26 | 4.50 | Blinds and ceiling fans | 20 | 3.25 | — | — | 20 | 3.25 | |||||||||||||||||||||||||||||||||||||||||||||
Fire safety | — | — | 151 | 26.04 | 151 | 26.04 | Fire safety | — | — | 68 | 11.13 | 68 | 11.13 | |||||||||||||||||||||||||||||||||||||||||||||
Furnace, air (HVAC) | 51 | 8.83 | 283 | 48.66 | 334 | 57.49 | Furnace, air (HVAC) | 148 | 24.29 | — | — | 148 | 24.29 | |||||||||||||||||||||||||||||||||||||||||||||
Computers, equipment, misc. | 9 | 1.61 | 141 | 24.23 | 150 | 25.84 | Computers, equipment, misc. | 46 | 7.59 | 79 | 12.94 | 125 | 20.53 | |||||||||||||||||||||||||||||||||||||||||||||
Elevators | — | — | — | — | — | — | Elevators | — | — | 15 | 2.51 | 15 | 2.51 | |||||||||||||||||||||||||||||||||||||||||||||
Exterior painting | — | — | 806 | 138.61 | 806 | 138.61 | Exterior painting | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Leasing office / common amenities | 26 | 4.39 | 314 | 54.03 | 340 | 58.42 | Leasing office / common amenities | 77 | 12.56 | 118 | 19.41 | 195 | 31.97 | |||||||||||||||||||||||||||||||||||||||||||||
Major structural | — | — | 1,888 | 324.60 | 1,888 | 324.60 | Major structural | — | — | 760 | 124.64 | 760 | 124.64 | |||||||||||||||||||||||||||||||||||||||||||||
Cabinets & countertop upgrades | 93 | 15.97 | 34 | 5.64 | 127 | 21.61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cabinets & countertops and unit upgrades | Cabinets & countertops and unit upgrades | — | — | 11 | 1.78 | 11 | 1.78 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Landscaping & fencing | — | — | 478 | 82.22 | 478 | 82.22 | Landscaping & fencing | — | — | 53 | 8.77 | 53 | 8.77 | |||||||||||||||||||||||||||||||||||||||||||||
Parking lot | — | — | 79 | 13.66 | 79 | 13.66 | Parking lot | — | — | 5 | 0.88 | 5 | 0.88 | |||||||||||||||||||||||||||||||||||||||||||||
Signage and sanitation | — | — | 139 | 23.95 | 139 | 23.95 | Signage and sanitation | — | — | 59 | 9.62 | 59 | 9.62 | |||||||||||||||||||||||||||||||||||||||||||||
Unit furniture | 291 | 50.06 | — | — | 291 | 50.06 | Unit furniture | 394 | 64.63 | — | — | 394 | 64.63 | |||||||||||||||||||||||||||||||||||||||||||||
$ | 772 | $ | 132.72 | $ | 4,343 | $ | 746.78 | $ | 5,115 | $ | 879.50 | $ | 994 | $ | 163.13 | $ | 1,168 | $ | 191.68 | $ | 2,162 | $ | 354.81 |
(In thousands) | Total | Less than one year | 1-3 years | 3-5 years | More than five years | |||||||||||||||||||||||||||
Principal payments: | ||||||||||||||||||||||||||||||||
Mortgage debt | $ | 2,814,169 | $ | 106,922 | $ | 280,773 | $ | 531,271 | $ | 1,895,203 | ||||||||||||||||||||||
Line of credit | 33,000 | 33,000 | — | — | — | |||||||||||||||||||||||||||
Total principal | $ | 2,847,169 | $ | 139,922 | $ | 280,773 | $ | 531,271 | $ | 1,895,203 | ||||||||||||||||||||||
Interest payments: | ||||||||||||||||||||||||||||||||
Mortgage debt | 837,570 | 107,107 | 196,677 | 182,397 | 351,389 | |||||||||||||||||||||||||||
Line of credit | 32 | 32 | — | — | — | |||||||||||||||||||||||||||
Total interest | $ | 837,602 | $ | 107,139 | $ | 196,677 | $ | 182,397 | $ | 351,389 |
(In thousands) | Total | Less than one year | 1-3 years | 3-5 years | More than five years | |||||||||||||||
Mortgage debt obligations: | ||||||||||||||||||||
Interest | 831,264 | 103,654 | 190,854 | 159,485 | 377,271 | |||||||||||||||
Principal | 2,604,479 | 133,288 | 336,580 | 371,061 | 1,763,550 | |||||||||||||||
Line of Credit: | ||||||||||||||||||||
Interest | 8 | 8 | — | — | — | |||||||||||||||
Principal | 50,000 | 50,000 | — | — | — | |||||||||||||||
Total | $ | 3,485,751 | $ | 286,950 | $ | 527,434 | $ | 530,546 | $ | 2,140,821 |
Balance (in thousands) | Percentage of total mortgage indebtedness | LIBOR Cap | All-in Cap | ||||||||||||||||||||
Avenues at Creekside | $ | 38,251 | 5.00 | % | 6.6 | % | |||||||||||||||||
The Tradition | 30,000 | 3.25 | % | 7.0 | % | ||||||||||||||||||
The Bloc | 28,966 | 3.25 | % | 6.8 | % | ||||||||||||||||||
Summit Crossing II | 20,700 | 2.47 | % | 5.3 | % | ||||||||||||||||||
Total capped floating-rate debt | 117,917 | 4.2 | % | ||||||||||||||||||||
Champions Village | 27,400 | ||||||||||||||||||||||
Fairfield Shopping Center | 19,750 | ||||||||||||||||||||||
Total uncapped floating-rate debt | 47,150 | 1.7 | % | ||||||||||||||||||||
Total floating-rate debt | $ | 165,067 | 5.9 | % |
Balance (in thousands) | Percentage of total mortgage indebtedness | LIBOR Cap | All-in Cap | |||||||||
Avenues at Creekside | $ | 39,077 | 5.0 | % | 6.6 | % | ||||||
The Tradition | 30,000 | 3.3 | % | 7.0 | % | |||||||
The Bloc | 28,966 | 3.3 | % | 6.8 | % | |||||||
Total capped floating-rate debt | 98,043 | 3.8 | % | |||||||||
Ursa | 31,400 | n/a | n/a | |||||||||
Haven 49 | 41,550 | n/a | n/a | |||||||||
Champions Village | 27,400 | n/a | n/a | |||||||||
Fairfield Shopping Center | 19,750 | |||||||||||
Total uncapped floating-rate debt | 120,100 | 4.6 | % | |||||||||
Total floating-rate debt | $ | 218,143 | 8.4 | % |
EXHIBIT INDEX | |||
Exhibit Number |
Description | ||||||||
+ | ||||||||
10.3 | + | |||||||
10.4 | + | |||||||
10.5 | * | |||||||
10.6 | * | |||||||
10.7 | * | |||||||
31.1 | * | |||||||
31.2 | * | |||||||
32.1 | * | |||||||
32.2 | * | |||||||
* | Inline XBRL | |||||||
101.SCH | * | Inline XBRL Taxonomy Extension Schema Document | ||||||
101.CAL | * | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||
101.DEF | * | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||
101.LAB | * | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||
101.PRE | * | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||
104 | * | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||||
* | Filed or Furnished herewith | |||||||
+ | Management contract or compensatory plan, contract or arrangement |
SIGNATURES | |||||||||||||||||||||||
Pursuant to the requirements | |||||||||||||||||||||||
PREFERRED APARTMENT COMMUNITIES, INC. | |||||||||||||||||||||||
Date: November | By: | /s/ | |||||||||||||||||||||
Chief Executive Officer | |||||||||||||||||||||||
(Principal Executive Officer) | |||||||||||||||||||||||
Date: November | By: | /s/ John A. Isakson | |||||||||||||||||||||
John A. Isakson | |||||||||||||||||||||||
Chief Financial Officer | |||||||||||||||||||||||
(Principal Financial Officer) |