☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR | |||||
☐ | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from _________ to __________ |
VEREIT, Inc. | ||
VEREIT Operating Partnership, L.P. | ||
(Exact name of registrant as specified in its charter) |
Maryland | (VEREIT, Inc.) | 45-2482685 | ||||||||||||
Delaware | (VEREIT Operating Partnership, L.P.) | 45-1255683 | ||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
2325 E. Camelback Road, 9th Floor | Phoenix | AZ | 85016 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
(800) | 606-3610 | ||||
(Registrant’s telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: | ||||||||||||||
Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: | ||||||||||||
Common Stock | $0.01 par value per share (VEREIT, Inc.) | VER | New York Stock Exchange | |||||||||||
6.70% Series F Cumulative Redeemable Preferred Stock | $0.01 par value per share (VEREIT, Inc.) | VER PRF | New York Stock Exchange |
VEREIT, Inc. | Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
VEREIT Operating Partnership, L.P. | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☒ | ||||||||||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | |||||
PART I | |||||
March 31, 2021 | December 31, 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate investments, at cost: | ||||||||||||||
Land | $ | 2,698,232 | $ | 2,699,110 | ||||||||||
Buildings, fixtures and improvements | 9,941,903 | 10,032,055 | ||||||||||||
Intangible lease assets | 1,883,826 | 1,872,461 | ||||||||||||
Total real estate investments, at cost | 14,523,961 | 14,603,626 | ||||||||||||
Less: accumulated depreciation and amortization | 3,861,411 | 3,833,084 | ||||||||||||
Total real estate investments, net | 10,662,550 | 10,770,542 | ||||||||||||
Operating lease right-of-use assets | 191,443 | 195,518 | ||||||||||||
Investment in unconsolidated entities | 80,513 | 81,639 | ||||||||||||
Cash and cash equivalents | 318,561 | 523,539 | ||||||||||||
Restricted cash | 12,704 | 13,842 | ||||||||||||
Rent and tenant receivables and other assets, net | 368,926 | 366,620 | ||||||||||||
Goodwill | 1,337,773 | 1,337,773 | ||||||||||||
Real estate assets held for sale, net | 4,888 | 65,583 | ||||||||||||
Total assets | $ | 12,977,358 | $ | 13,355,056 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Mortgage notes payable, net | $ | 1,035,328 | $ | 1,328,835 | ||||||||||
Corporate bonds, net | 4,586,252 | 4,584,230 | ||||||||||||
Below-market lease liabilities, net | 117,121 | 120,938 | ||||||||||||
Accounts payable and accrued expenses | 116,486 | 117,015 | ||||||||||||
Deferred rent and other liabilities | 62,944 | 63,204 | ||||||||||||
Distributions payable | 106,989 | 89,514 | ||||||||||||
Operating lease liabilities | 202,024 | 209,104 | ||||||||||||
Total liabilities | 6,227,144 | 6,512,840 | ||||||||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized and 14,871,246 and 18,871,246 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 149 | 189 | ||||||||||||
Common stock, $0.01 par value, 1,500,000,000 shares authorized and 229,129,954 and 228,881,547 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 2,291 | 2,289 | ||||||||||||
Additional paid-in capital | 13,350,661 | 13,449,412 | ||||||||||||
Accumulated other comprehensive income | 634 | 536 | ||||||||||||
Accumulated deficit | (6,610,678) | (6,617,380) | ||||||||||||
Total stockholders’ equity | 6,743,057 | 6,835,046 | ||||||||||||
Non-controlling interests | 7,157 | 7,170 | ||||||||||||
Total equity | 6,750,214 | 6,842,216 | ||||||||||||
Total liabilities and equity | $ | 12,977,358 | $ | 13,355,056 |
June 30, 2020 | December 31, 2019 | |||||||
ASSETS | ||||||||
Real estate investments, at cost: | ||||||||
Land | $ | 2,705,149 | $ | 2,738,679 | ||||
Buildings, fixtures and improvements | 10,117,636 | 10,200,550 | ||||||
Intangible lease assets | 1,891,831 | 1,904,641 | ||||||
Total real estate investments, at cost | 14,714,616 | 14,843,870 | ||||||
Less: accumulated depreciation and amortization | 3,756,132 | 3,594,247 | ||||||
Total real estate investments, net | 10,958,484 | 11,249,623 | ||||||
Operating lease right-of-use assets | 208,037 | 215,227 | ||||||
Investment in unconsolidated entities | 86,300 | 68,825 | ||||||
Cash and cash equivalents | 278,883 | 12,921 | ||||||
Restricted cash | 21,203 | 20,959 | ||||||
Rent and tenant receivables and other assets, net | 382,409 | 348,395 | ||||||
Goodwill | 1,337,773 | 1,337,773 | ||||||
Real estate assets held for sale, net | 48,093 | 26,957 | ||||||
Total assets | $ | 13,321,182 | $ | 13,280,680 | ||||
LIABILITIES AND EQUITY | ||||||||
Mortgage notes payable, net | $ | 1,393,652 | $ | 1,528,134 | ||||
Corporate bonds, net | 3,404,935 | 2,813,739 | ||||||
Convertible debt, net | 270,152 | 318,183 | ||||||
Credit facility, net | 896,314 | 1,045,669 | ||||||
Below-market lease liabilities, net | 130,208 | 143,583 | ||||||
Accounts payable and accrued expenses | 112,551 | 126,320 | ||||||
Derivative, deferred rent and other liabilities | 161,538 | 90,349 | ||||||
Distributions payable | 85,231 | 150,364 | ||||||
Operating lease liabilities | 215,322 | 221,061 | ||||||
Total liabilities | 6,669,903 | 6,437,402 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized and 30,871,246 issued and outstanding as of each of June 30, 2020 and December 31, 2019, respectively | 309 | 309 | ||||||
Common stock, $0.01 par value, 1,500,000,000 shares authorized and 1,077,848,554 and 1,076,845,984 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 10,779 | 10,768 | ||||||
Additional paid-in capital | 13,256,288 | 13,251,962 | ||||||
Accumulated other comprehensive loss | (106,109 | ) | (27,670 | ) | ||||
Accumulated deficit | (6,517,303 | ) | (6,399,626 | ) | ||||
Total stockholders’ equity | 6,643,964 | 6,835,743 | ||||||
Non-controlling interests | 7,315 | 7,535 | ||||||
Total equity | 6,651,279 | 6,843,278 | ||||||
Total liabilities and equity | $ | 13,321,182 | $ | 13,280,680 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Rental | $ | 278,576 | $ | 312,043 | $ | 577,162 | $ | 628,886 | Rental | $ | 290,309 | $ | 298,586 | |||||||||||||||||||||||||||||||||||
Fees from managed partnerships | 421 | 145 | 1,017 | 182 | Fees from managed partnerships | 500 | 596 | |||||||||||||||||||||||||||||||||||||||||
Total revenues | 278,997 | 312,188 | 578,179 | 629,068 | Total revenues | 290,809 | 299,182 | |||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related | 1,169 | 985 | 2,692 | 1,970 | Acquisition-related | 1,354 | 1,523 | |||||||||||||||||||||||||||||||||||||||||
Litigation and non-routine costs, net | (118 | ) | (3,769 | ) | (8,682 | ) | (25,261 | ) | Litigation and non-routine costs, net | 68 | (8,564) | |||||||||||||||||||||||||||||||||||||
Property operating | 29,098 | 32,503 | 59,588 | 64,881 | Property operating | 30,605 | 30,490 | |||||||||||||||||||||||||||||||||||||||||
General and administrative | 16,120 | 16,416 | 31,176 | 31,262 | General and administrative | 14,526 | 15,056 | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 110,599 | 118,022 | 234,679 | 254,577 | Depreciation and amortization | 108,075 | 124,080 | |||||||||||||||||||||||||||||||||||||||||
Impairments | 12,094 | 8,308 | 20,474 | 20,296 | Impairments | 31,849 | 8,380 | |||||||||||||||||||||||||||||||||||||||||
Restructuring | — | 290 | — | 9,366 | ||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 168,962 | 172,755 | 339,927 | 357,091 | Total operating expenses | 186,477 | 170,965 | |||||||||||||||||||||||||||||||||||||||||
Other (expenses) income: | ||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expenses): | Other income (expenses): | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (65,613 | ) | (69,803 | ) | (130,309 | ) | (141,057 | ) | Interest expense | (60,736) | (64,696) | |||||||||||||||||||||||||||||||||||||
Loss on extinguishment and forgiveness of debt, net | (200 | ) | (1,472 | ) | (1,480 | ) | (1,472 | ) | Loss on extinguishment and forgiveness of debt, net | (2,132) | (1,280) | |||||||||||||||||||||||||||||||||||||
Other income, net | 778 | 3,030 | 953 | 2,591 | Other income, net | 3,666 | 175 | |||||||||||||||||||||||||||||||||||||||||
Equity in income of unconsolidated entities | 1,497 | 505 | 1,743 | 1,005 | Equity in income of unconsolidated entities | 447 | 246 | |||||||||||||||||||||||||||||||||||||||||
Gain on disposition of real estate and real estate assets held for sale, net | 8,795 | 221,755 | 34,044 | 232,586 | Gain on disposition of real estate and real estate assets held for sale, net | 76,074 | 25,249 | |||||||||||||||||||||||||||||||||||||||||
Total other (expenses) income, net | (54,743 | ) | 154,015 | (95,049 | ) | 93,653 | ||||||||||||||||||||||||||||||||||||||||||
Total other income (expenses), net | Total other income (expenses), net | 17,319 | (40,306) | |||||||||||||||||||||||||||||||||||||||||||||
Income before taxes | 55,292 | 293,448 | 143,203 | 365,630 | Income before taxes | 121,651 | 87,911 | |||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | (1,053 | ) | (1,164 | ) | (2,101 | ) | (2,375 | ) | Provision for income taxes | (928) | (1,048) | |||||||||||||||||||||||||||||||||||||
Net income | 54,239 | 292,284 | 141,102 | 363,255 | Net income | 120,723 | 86,863 | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests (1) | (31 | ) | (6,626 | ) | (86 | ) | (8,293 | ) | Net income attributable to non-controlling interests (1) | (76) | (55) | |||||||||||||||||||||||||||||||||||||
Net income attributable to the General Partner | $ | 54,208 | $ | 285,658 | $ | 141,016 | $ | 354,962 | Net income attributable to the General Partner | $ | 120,647 | $ | 86,808 | |||||||||||||||||||||||||||||||||||
Basic and diluted net income per share attributable to common stockholders | $ | 0.04 | $ | 0.27 | $ | 0.11 | $ | 0.33 | Basic and diluted net income per share attributable to common stockholders | $ | 0.50 | $ | 0.34 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 54,239 | $ | 292,284 | $ | 141,102 | $ | 363,255 | Net income | $ | 120,723 | $ | 86,863 | |||||||||||||||||||||||||||||||||||
Total other comprehensive loss | ||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on interest rate derivatives | (6,497 | ) | (16,308 | ) | (85,047 | ) | (27,594 | ) | ||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on interest rate derivatives | Unrealized gain (loss) on interest rate derivatives | 0 | (78,550) | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of previous unrealized loss on interest rate derivatives into net income | 4,604 | 99 | 6,552 | 196 | Reclassification of previous unrealized loss on interest rate derivatives into net income | 98 | 1,948 | |||||||||||||||||||||||||||||||||||||||||
Total other comprehensive loss | (1,893 | ) | (16,209 | ) | (78,495 | ) | (27,398 | ) | ||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | 98 | (76,602) | |||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | 52,346 | 276,075 | 62,607 | 335,857 | Total comprehensive income | 120,821 | 10,261 | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to non-controlling interests(1) | (30 | ) | (6,241 | ) | (30 | ) | (7,641 | ) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive (income) loss attributable to non-controlling interests (1) | Comprehensive (income) loss attributable to non-controlling interests (1) | (76) | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income attributable to the General Partner | $ | 52,316 | $ | 269,834 | $ | 62,577 | $ | 328,216 | Total comprehensive income attributable to the General Partner | $ | 120,745 | $ | 10,261 |
(1)Represents comprehensive (income) loss attributable to limited partners and a consolidated joint venture partner. |
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stock-holders’ Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | 18,871,246 | $ | 189 | 228,881,547 | $ | 2,289 | $ | 13,449,412 | $ | 536 | $ | (6,617,380) | $ | 6,835,046 | $ | 7,170 | $ | 6,842,216 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Stock, net | — | — | 35,710 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | (4,000,000) | (40) | — | — | (99,960) | — | — | (100,000) | — | (100,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of Common Stock to settle tax obligation | — | — | (49,237) | — | (1,681) | — | — | (1,681) | — | (1,681) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation, net | — | — | 261,934 | 2 | 2,890 | — | — | 2,892 | — | 2,892 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions declared on Common Stock — $0.4620 per common share | — | — | — | — | — | — | (105,858) | (105,858) | — | (105,858) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | — | — | (70) | (70) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | — | (1,581) | (1,581) | — | (1,581) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to preferred shareholders and unitholders | — | — | — | — | — | — | (6,506) | (6,506) | (19) | (6,525) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 120,647 | 120,647 | 76 | 120,723 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 98 | — | 98 | — | 98 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 14,871,246 | $ | 149 | 229,129,954 | $ | 2,291 | $ | 13,350,661 | $ | 634 | $ | (6,610,678) | $ | 6,743,057 | $ | 7,157 | $ | 6,750,214 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stock-holders’ Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 | 30,871,246 | $ | 309 | 215,369,197 | $ | 2,153 | $ | 13,260,577 | $ | (27,670) | $ | (6,372,711) | $ | 6,862,658 | $ | 7,535 | $ | 6,870,193 | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of OP Units to Common Stock | — | — | 910 | — | 45 | — | — | 45 | (45) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | — | — | — | — | (27) | — | — | (27) | — | (27) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of Common Stock to settle tax obligation | — | — | (48,218) | — | (2,378) | — | — | (2,378) | — | (2,378) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation, net | — | — | 234,408 | 2 | 2,853 | — | — | 2,855 | — | 2,855 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions declared on Common Stock — $0.6875 per common share | — | — | — | — | — | — | (148,194) | (148,194) | — | (148,194) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | — | — | (105) | (105) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | — | (1,628) | (1,628) | — | (1,628) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to preferred shareholders and unitholders | — | — | — | — | — | — | (12,928) | (12,928) | (19) | (12,947) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 86,808 | 86,808 | 55 | 86,863 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (76,547) | — | (76,547) | (55) | (76,602) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 30,871,246 | $ | 309 | 215,556,297 | $ | 2,155 | $ | 13,261,070 | $ | (104,217) | $ | (6,448,653) | $ | 6,710,664 | $ | 7,366 | $ | 6,718,030 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stock-holders’ Equity | Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 | 30,871,246 | $ | 309 | 1,076,845,984 | $ | 10,768 | $ | 13,251,962 | $ | (27,670 | ) | $ | (6,399,626 | ) | $ | 6,835,743 | $ | 7,535 | $ | 6,843,278 | |||||||||||||||||||||||||||
Conversion of OP Units to Common Stock | — | — | 4,549 | 1 | 44 | — | — | 45 | (45 | ) | — | ||||||||||||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | — | — | — | — | (27 | ) | — | — | (27 | ) | — | (27 | ) | ||||||||||||||||||||||||||||||||||
Repurchases of Common Stock to settle tax obligation | — | — | (241,092 | ) | (2 | ) | (2,376 | ) | — | — | (2,378 | ) | — | (2,378 | ) | ||||||||||||||||||||||||||||||||
Equity-based compensation, net | — | — | 1,172,038 | 11 | 2,844 | — | — | 2,855 | — | 2,855 | |||||||||||||||||||||||||||||||||||||
Distributions declared on Common Stock — $0.1375 per common share | — | — | — | — | — | — | (148,194 | ) | (148,194 | ) | — | (148,194 | ) | ||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | — | — | (105 | ) | (105 | ) | |||||||||||||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | — | (1,628 | ) | (1,628 | ) | — | (1,628 | ) | ||||||||||||||||||||||||||||||||||
Distributions to preferred shareholders and unitholders | — | — | — | — | — | — | (12,928 | ) | (12,928 | ) | (19 | ) | (12,947 | ) | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 86,808 | 86,808 | 55 | 86,863 | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (76,547 | ) | — | (76,547 | ) | (55 | ) | (76,602 | ) | |||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 30,871,246 | $ | 309 | 1,077,781,479 | $ | 10,778 | $ | 13,252,447 | $ | (104,217 | ) | $ | (6,475,568 | ) | $ | 6,683,749 | $ | 7,366 | $ | 6,691,115 | |||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | — | — | — | — | (25 | ) | — | — | (25 | ) | — | (25 | ) | ||||||||||||||||||||||||||||||||||
Equity-based compensation, net | — | — | 67,075 | 1 | 4,070 | — | — | 4,071 | — | 4,071 | |||||||||||||||||||||||||||||||||||||
Distributions declared on Common Stock — $0.077 per common share | — | — | — | — | — | — | (82,997 | ) | (82,997 | ) | — | (82,997 | ) | ||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | — | — | (61 | ) | (61 | ) | |||||||||||||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | — | (18 | ) | (18 | ) | — | (18 | ) | ||||||||||||||||||||||||||||||||||
Distributions to preferred shareholders and unitholders | — | — | — | — | — | — | (12,928 | ) | (12,928 | ) | (20 | ) | (12,948 | ) | |||||||||||||||||||||||||||||||||
Repurchase of convertible notes | — | — | — | — | — | — | — | — | (204 | ) | — | — | — | — | — | (204 | ) | — | — | — | (204 | ) | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 54,208 | 54,208 | 31 | 54,239 | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (1,892 | ) | — | (1,892 | ) | (1 | ) | (1,893 | ) | |||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | 30,871,246 | $ | 309 | 1,077,848,554 | $ | 10,779 | $ | 13,256,288 | $ | (106,109 | ) | $ | (6,517,303 | ) | $ | 6,643,964 | $ | 7,315 | $ | 6,651,279 |
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stock-holders’ Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||
Balance, January 1, 2019 | 42,834,138 | $ | 428 | 967,515,165 | $ | 9,675 | $ | 12,615,472 | $ | (1,280 | ) | $ | (5,467,236 | ) | $ | 7,157,059 | $ | 143,085 | $ | 7,300,144 | ||||||||||||||||||
Issuance of Common Stock, net | — | — | 3,309,808 | 33 | 27,511 | — | — | 27,544 | — | 27,544 | ||||||||||||||||||||||||||||
Conversion of OP Units to Common Stock | — | — | — | — | (26 | ) | — | — | (26 | ) | 26 | — | ||||||||||||||||||||||||||
Conversion of Series F Preferred Units to Series F Preferred Stock | 37,108 | 1 | — | — | 922 | — | — | 923 | (923 | ) | — | |||||||||||||||||||||||||||
Repurchases of Common Stock to settle tax obligation | — | — | (199,083 | ) | (2 | ) | (1,593 | ) | — | — | (1,595 | ) | — | (1,595 | ) | |||||||||||||||||||||||
Equity-based compensation, net | — | — | 950,487 | 10 | 2,862 | — | — | 2,872 | — | 2,872 | ||||||||||||||||||||||||||||
Contributions from non-controlling interest holders | — | — | — | — | — | — | — | — | 64 | 64 | ||||||||||||||||||||||||||||
Distributions declared on Common Stock — $0.1375 per common share | — | — | — | — | — | — | (133,480 | ) | (133,480 | ) | — | (133,480 | ) | |||||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | — | — | (3,262 | ) | (3,262 | ) | ||||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | — | (1,222 | ) | (1,222 | ) | — | (1,222 | ) | |||||||||||||||||||||||||
Distributions to preferred shareholders and unitholders | — | — | — | — | — | — | (17,940 | ) | (17,940 | ) | (33 | ) | (17,973 | ) | ||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 69,304 | 69,304 | 1,667 | 70,971 | ||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (10,922 | ) | — | (10,922 | ) | (267 | ) | (11,189 | ) | ||||||||||||||||||||||||
Balance, March 31, 2019 | 42,871,246 | $ | 429 | 971,576,377 | $ | 9,716 | $ | 12,645,148 | $ | (12,202 | ) | $ | (5,550,574 | ) | $ | 7,092,517 | $ | 140,357 | $ | 7,232,874 | ||||||||||||||||||
Issuance of Common Stock, net | — | — | 1,773,456 | 18 | 14,516 | — | — | 14,534 | — | 14,534 | ||||||||||||||||||||||||||||
Repurchases of Common Stock to settle tax obligation | — | — | — | — | (9 | ) | — | — | (9 | ) | — | (9 | ) | |||||||||||||||||||||||||
Equity-based compensation, net | — | — | 36,066 | — | 3,883 | — | — | 3,883 | — | 3,883 | ||||||||||||||||||||||||||||
Distributions declared on Common Stock — $0.1375 per common share | — | — | — | — | — | — | (133,841 | ) | (133,841 | ) | — | (133,841 | ) | |||||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | — | — | (3,264 | ) | (3,264 | ) | ||||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | — | (44 | ) | (44 | ) | — | (44 | ) | |||||||||||||||||||||||||
Distributions to preferred shareholders and unitholders | — | — | — | — | — | — | (17,958 | ) | (17,958 | ) | (15 | ) | (17,973 | ) | ||||||||||||||||||||||||
Distributions payable relinquished | — | — | — | — | — | — | — | — | 6,429 | 6,429 | ||||||||||||||||||||||||||||
Surrender of Limited Partner OP Units | — | — | — | — | (8,520 | ) | — | — | (8,520 | ) | (18,017 | ) | (26,537 | ) | ||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 285,658 | 285,658 | 6,626 | 292,284 | ||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (15,824 | ) | — | (15,824 | ) | (385 | ) | (16,209 | ) | ||||||||||||||||||||||||
Balance, June 30, 2019 | 42,871,246 | $ | 429 | 973,385,899 | $ | 9,734 | $ | 12,655,018 | $ | (28,026 | ) | $ | (5,416,759 | ) | $ | 7,220,396 | $ | 131,731 | $ | 7,352,127 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||
Net income | $ | 120,723 | $ | 86,863 | ||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 112,265 | 126,980 | ||||||||||||||||||||||||||||||
Gain on real estate assets, net | (78,177) | (25,508) | ||||||||||||||||||||||||||||||
Impairments | 31,849 | 8,380 | ||||||||||||||||||||||||||||||
Equity-based compensation | 2,892 | 2,855 | ||||||||||||||||||||||||||||||
Equity in income of unconsolidated entities | (447) | (246) | ||||||||||||||||||||||||||||||
Distributions from unconsolidated entities | 447 | 259 | ||||||||||||||||||||||||||||||
(Gain) loss on other investments | (695) | 541 | ||||||||||||||||||||||||||||||
Loss on extinguishment and forgiveness of debt, net | 2,132 | 1,280 | ||||||||||||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||||||||||
Investment in direct financing leases | 366 | 364 | ||||||||||||||||||||||||||||||
Rent and tenant receivables, operating lease right-of-use and other assets, net | (2,000) | (4,462) | ||||||||||||||||||||||||||||||
Accounts payable and accrued expenses | (7,019) | (2,749) | ||||||||||||||||||||||||||||||
Deferred rent, operating lease and other liabilities | (2,245) | (22,546) | ||||||||||||||||||||||||||||||
Net cash provided by operating activities | 180,091 | 172,011 | ||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||
Investments in real estate assets | (139,964) | (147,121) | ||||||||||||||||||||||||||||||
Capital expenditures and leasing costs | (4,500) | (9,502) | ||||||||||||||||||||||||||||||
Real estate developments | (3,553) | (3,231) | ||||||||||||||||||||||||||||||
Investments in unconsolidated entities | 0 | (2,669) | ||||||||||||||||||||||||||||||
Return of investment from unconsolidated entities | 1,124 | 257 | ||||||||||||||||||||||||||||||
Proceeds from disposition of real estate | 253,503 | 140,428 | ||||||||||||||||||||||||||||||
Investment in leasehold improvements and other assets | 36 | (87) | ||||||||||||||||||||||||||||||
Deposits for real estate assets | (3,171) | (895) | ||||||||||||||||||||||||||||||
Uses and refunds of deposits for real estate assets | 2,454 | 3,130 | ||||||||||||||||||||||||||||||
Proceeds from the settlement of property-related insurance claims | 713 | 38 | ||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 106,642 | (19,652) | ||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||
Proceeds from mortgage notes payable | 0 | 913 | ||||||||||||||||||||||||||||||
Payments on mortgage notes payable and other debt, including debt extinguishment costs | (295,869) | (123,574) | ||||||||||||||||||||||||||||||
Proceeds from credit facility | 0 | 831,313 | ||||||||||||||||||||||||||||||
Payments on credit facility, including swap termination payments | 0 | (110,000) | ||||||||||||||||||||||||||||||
Extinguishment costs related to the redemption of corporate bonds | 0 | (26) | ||||||||||||||||||||||||||||||
Extinguishment costs related to the repurchases of convertible notes | 0 | (13) | ||||||||||||||||||||||||||||||
Payments of deferred financing costs | (356) | (35) | ||||||||||||||||||||||||||||||
Refunds of deferred financing costs | 280 | 0 | ||||||||||||||||||||||||||||||
Repurchases of Common Stock to settle tax obligations | (1,681) | (2,378) | ||||||||||||||||||||||||||||||
Proceeds from the issuance of Common Stock, net of underwriters’ discount and offering expenses | 1,336 | 0 | ||||||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | (100,000) | (27) | ||||||||||||||||||||||||||||||
Distributions paid | (96,559) | (162,747) | ||||||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | (492,849) | 433,426 | ||||||||||||||||||||||||||||||
Net change in cash and cash equivalents and restricted cash | $ | (206,116) | $ | 585,785 | ||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 141,102 | $ | 363,255 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 240,902 | 260,771 | ||||||
Gain on real estate assets, net | (34,303 | ) | (232,597 | ) | ||||
Impairments | 20,474 | 20,296 | ||||||
Equity-based compensation | 6,926 | 6,755 | ||||||
Equity in income of unconsolidated entities | (1,743 | ) | (1,005 | ) | ||||
Distributions from unconsolidated entities | 861 | — | ||||||
Loss on investments | 683 | 464 | ||||||
Loss on derivative instruments | — | 58 | ||||||
Non-cash restructuring expense | — | 4,048 | ||||||
Loss on extinguishment and forgiveness of debt, net | 1,480 | 1,472 | ||||||
Surrender of Limited Partner OP Units | — | (26,536 | ) | |||||
Changes in assets and liabilities: | ||||||||
Investment in direct financing leases | 736 | 821 | ||||||
Rent and tenant receivables, operating lease right-of-use and other assets, net | (30,158 | ) | (9,596 | ) | ||||
Accounts payable and accrued expenses | (13,870 | ) | (13,104 | ) | ||||
Deferred rent, operating lease and other liabilities | (12,138 | ) | (27,084 | ) | ||||
Net cash provided by operating activities | 320,952 | 348,018 | ||||||
Cash flows from investing activities: | ||||||||
Investments in real estate assets | (147,121 | ) | (191,550 | ) | ||||
Capital expenditures and leasing costs | (15,665 | ) | (19,695 | ) | ||||
Real estate developments | (6,469 | ) | (10,537 | ) | ||||
Principal repayments received on mortgage notes receivable | — | 88 | ||||||
Investments in unconsolidated entities | (10,066 | ) | (2,767 | ) | ||||
Return of investment from unconsolidated entities | 970 | — | ||||||
Proceeds from disposition of real estate | 204,114 | 739,873 | ||||||
Investment in leasehold improvements and other assets | (314 | ) | (798 | ) | ||||
Deposits for real estate assets | (1,420 | ) | (3,072 | ) | ||||
Investments in mezzanine position | (9,959 | ) | — | |||||
Proceeds from sale of investments and other assets | — | 8,199 | ||||||
Uses and refunds of deposits for real estate assets | 4,036 | 2,946 | ||||||
Proceeds from the settlement of property-related insurance claims | 48 | 334 | ||||||
Net cash provided by investing activities | 18,154 | 523,021 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from mortgage notes payable | 1,032 | — | ||||||
Payments on mortgage notes payable and other debt, including debt extinguishment costs | (135,036 | ) | (175,962 | ) | ||||
Proceeds from credit facility | 902,000 | 1,034,000 | ||||||
Payments on credit facility | (1,052,000 | ) | (537,000 | ) | ||||
Proceeds from corporate bonds | 594,864 | — | ||||||
Redemptions of corporate bonds, including extinguishment costs | (26 | ) | (750,000 | ) | ||||
Repurchases of convertible notes, including extinguishment costs | (50,326 | ) | — | |||||
Payments of deferred financing costs | (6,946 | ) | (182 | ) | ||||
Repurchases of Common Stock to settle tax obligations | (2,378 | ) | (1,604 | ) | ||||
Proceeds from the issuance of Common Stock, net of underwriters’ discount and offering expenses | — | 42,078 | ||||||
Series F Preferred Stock redemption expenses | (52 | ) | — | |||||
Contributions from non-controlling interest holders | — | 64 | ||||||
Distributions paid | (324,032 | ) | (303,894 | ) | ||||
Net cash used in financing activities | (72,900 | ) | (692,500 | ) | ||||
Net change in cash and cash equivalents and restricted cash | $ | 266,206 | $ | 178,539 | ||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash, beginning of period | $ | 537,381 | $ | 33,880 | ||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 331,265 | $ | 619,665 | ||||||||||||||||||||||||||||
Reconciliation of Cash and Cash Equivalents and Restricted Cash | ||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | $ | 523,539 | $ | 12,921 | ||||||||||||||||||||||||||||
Restricted cash at beginning of period | 13,842 | 20,959 | ||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | 537,381 | 33,880 | ||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | 318,561 | 600,945 | ||||||||||||||||||||||||||||||
Restricted cash at end of period | 12,704 | 18,720 | ||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 331,265 | $ | 619,665 |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash and cash equivalents and restricted cash, beginning of period | $ | 33,880 | $ | 53,663 | ||||
Cash and cash equivalents and restricted cash, end of period | $ | 300,086 | $ | 232,202 | ||||
Reconciliation of Cash and Cash Equivalents and Restricted Cash | ||||||||
Cash and cash equivalents at beginning of period | $ | 12,921 | $ | 30,758 | ||||
Restricted cash at beginning of period | 20,959 | 22,905 | ||||||
Cash and cash equivalents and restricted cash at beginning of period | 33,880 | 53,663 | ||||||
Cash and cash equivalents at end of period | 278,883 | 211,510 | ||||||
Restricted cash at end of period | 21,203 | 20,692 | ||||||
Cash and cash equivalents and restricted cash at end of period | $ | 300,086 | $ | 232,202 |
March 31, 2021 | December 31, 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate investments, at cost: | ||||||||||||||
Land | $ | 2,698,232 | $ | 2,699,110 | ||||||||||
Buildings, fixtures and improvements | 9,941,903 | 10,032,055 | ||||||||||||
Intangible lease assets | 1,883,826 | 1,872,461 | ||||||||||||
Total real estate investments, at cost | 14,523,961 | 14,603,626 | ||||||||||||
Less: accumulated depreciation and amortization | 3,861,411 | 3,833,084 | ||||||||||||
Total real estate investments, net | 10,662,550 | 10,770,542 | ||||||||||||
Operating lease right-of-use assets | 191,443 | 195,518 | ||||||||||||
Investment in unconsolidated entities | 80,513 | 81,639 | ||||||||||||
Cash and cash equivalents | 318,561 | 523,539 | ||||||||||||
Restricted cash | 12,704 | 13,842 | ||||||||||||
Rent and tenant receivables and other assets, net | 368,926 | 366,620 | ||||||||||||
Goodwill | 1,337,773 | 1,337,773 | ||||||||||||
Real estate assets held for sale, net | 4,888 | 65,583 | ||||||||||||
Total assets | $ | 12,977,358 | $ | 13,355,056 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Mortgage notes payable, net | $ | 1,035,328 | $ | 1,328,835 | ||||||||||
Corporate bonds, net | 4,586,252 | 4,584,230 | ||||||||||||
Below-market lease liabilities, net | 117,121 | 120,938 | ||||||||||||
Accounts payable and accrued expenses | 116,486 | 117,015 | ||||||||||||
Deferred rent and other liabilities | 62,944 | 63,204 | ||||||||||||
Distributions payable | 106,989 | 89,514 | ||||||||||||
Operating lease liabilities | 202,024 | 209,104 | ||||||||||||
Total liabilities | 6,227,144 | 6,512,840 | ||||||||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||||||||
General Partner's preferred equity, 14,871,246 and 18,871,246 General Partner Series F Preferred Units issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 147,788 | 254,294 | ||||||||||||
General Partner's common equity, 229,129,954 and 228,881,547 General Partner OP Units issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 6,595,269 | 6,580,752 | ||||||||||||
Limited Partner's preferred equity, 49,766 Limited Partner Series F Preferred Units issued and outstanding as of each of March 31, 2021 and December 31, 2020, respectively | 1,768 | 1,787 | ||||||||||||
Limited Partner's common equity, 152,033 Limited Partner OP Units issued and outstanding as of each of March 31, 2021 and December 31, 2020, respectively | 4,218 | 4,209 | ||||||||||||
Total partners’ equity | 6,749,043 | 6,841,042 | ||||||||||||
Non-controlling interests | 1,171 | 1,174 | ||||||||||||
Total equity | 6,750,214 | 6,842,216 | ||||||||||||
Total liabilities and equity | $ | 12,977,358 | $ | 13,355,056 |
June 30, 2020 | December 31, 2019 | |||||||
ASSETS | ||||||||
Real estate investments, at cost: | ||||||||
Land | $ | 2,705,149 | $ | 2,738,679 | ||||
Buildings, fixtures and improvements | 10,117,636 | 10,200,550 | ||||||
Intangible lease assets | 1,891,831 | 1,904,641 | ||||||
Total real estate investments, at cost | 14,714,616 | 14,843,870 | ||||||
Less: accumulated depreciation and amortization | 3,756,132 | 3,594,247 | ||||||
Total real estate investments, net | 10,958,484 | 11,249,623 | ||||||
Operating lease right-of-use assets | 208,037 | 215,227 | ||||||
Investment in unconsolidated entities | 86,300 | 68,825 | ||||||
Cash and cash equivalents | 278,883 | 12,921 | ||||||
Restricted cash | 21,203 | 20,959 | ||||||
Rent and tenant receivables and other assets, net | 382,409 | 348,395 | ||||||
Goodwill | 1,337,773 | 1,337,773 | ||||||
Real estate assets held for sale, net | 48,093 | 26,957 | ||||||
Total assets | $ | 13,321,182 | $ | 13,280,680 | ||||
LIABILITIES AND EQUITY | ||||||||
Mortgage notes payable, net | $ | 1,393,652 | $ | 1,528,134 | ||||
Corporate bonds, net | 3,404,935 | 2,813,739 | ||||||
Convertible debt, net | 270,152 | 318,183 | ||||||
Credit facility, net | 896,314 | 1,045,669 | ||||||
Below-market lease liabilities, net | 130,208 | 143,583 | ||||||
Accounts payable and accrued expenses | 112,551 | 126,320 | ||||||
Derivative, deferred rent and other liabilities | 161,538 | 90,349 | ||||||
Distributions payable | 85,231 | 150,364 | ||||||
Operating lease liabilities | 215,322 | 221,061 | ||||||
Total liabilities | 6,669,903 | 6,437,402 | ||||||
Commitments and contingencies (Note 10) | ||||||||
General Partner's preferred equity, 30,871,246 General Partner Series F Preferred Units issued and outstanding as of each of June 30, 2020 and December 31, 2019, respectively | 434,596 | 460,504 | ||||||
General Partner's common equity, 1,077,848,554 and 1,076,845,984 General Partner OP Units issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 6,209,368 | 6,375,239 | ||||||
Limited Partner's preferred equity, 49,766 Limited Partner Series F Preferred Units issued and outstanding as of each of June 30, 2020 and December 31, 2019, respectively | 1,830 | 1,869 | ||||||
Limited Partner's common equity, 782,170 and 786,719 Limited Partner OP Units issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 4,267 | 4,433 | ||||||
Total partners’ equity | 6,650,061 | 6,842,045 | ||||||
Non-controlling interests | 1,218 | 1,233 | ||||||
Total equity | 6,651,279 | 6,843,278 | ||||||
Total liabilities and equity | $ | 13,321,182 | $ | 13,280,680 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Rental | $ | 290,309 | $ | 298,586 | ||||||||||||||||||||||||||||
Fees from managed partnerships | 500 | 596 | ||||||||||||||||||||||||||||||
Total revenues | 290,809 | 299,182 | ||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Acquisition-related | 1,354 | 1,523 | ||||||||||||||||||||||||||||||
Litigation and non-routine costs, net | 68 | (8,564) | ||||||||||||||||||||||||||||||
Property operating | 30,605 | 30,490 | ||||||||||||||||||||||||||||||
General and administrative | 14,526 | 15,056 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 108,075 | 124,080 | ||||||||||||||||||||||||||||||
Impairments | 31,849 | 8,380 | ||||||||||||||||||||||||||||||
Total operating expenses | 186,477 | 170,965 | ||||||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Interest expense | (60,736) | (64,696) | ||||||||||||||||||||||||||||||
Loss on extinguishment and forgiveness of debt, net | (2,132) | (1,280) | ||||||||||||||||||||||||||||||
Other income, net | 3,666 | 175 | ||||||||||||||||||||||||||||||
Equity in income of unconsolidated entities | 447 | 246 | ||||||||||||||||||||||||||||||
Gain on disposition of real estate and real estate assets held for sale, net | 76,074 | 25,249 | ||||||||||||||||||||||||||||||
Total other income (expense), net | 17,319 | (40,306) | ||||||||||||||||||||||||||||||
Income before taxes | 121,651 | 87,911 | ||||||||||||||||||||||||||||||
Provision for income taxes | (928) | (1,048) | ||||||||||||||||||||||||||||||
Net income | 120,723 | 86,863 | ||||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests (1) | 3 | 7 | ||||||||||||||||||||||||||||||
Net income attributable to the OP | $ | 120,726 | $ | 86,870 | ||||||||||||||||||||||||||||
Basic and diluted net income per unit attributable to common unitholders | $ | 0.50 | $ | 0.34 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Rental | $ | 278,576 | $ | 312,043 | $ | 577,162 | $ | 628,886 | ||||||||
Fees from managed partnerships | 421 | 145 | 1,017 | 182 | ||||||||||||
Total revenues | 278,997 | 312,188 | 578,179 | 629,068 | ||||||||||||
Operating expenses: | ||||||||||||||||
Acquisition-related | 1,169 | 985 | 2,692 | 1,970 | ||||||||||||
Litigation and non-routine costs, net | (118 | ) | (3,769 | ) | (8,682 | ) | (25,261 | ) | ||||||||
Property operating | 29,098 | 32,503 | 59,588 | 64,881 | ||||||||||||
General and administrative | 16,120 | 16,416 | 31,176 | 31,262 | ||||||||||||
Depreciation and amortization | 110,599 | 118,022 | 234,679 | 254,577 | ||||||||||||
Impairments | 12,094 | 8,308 | 20,474 | 20,296 | ||||||||||||
Restructuring | — | 290 | — | 9,366 | ||||||||||||
Total operating expenses | 168,962 | 172,755 | 339,927 | 357,091 | ||||||||||||
Other (expenses) income: | ||||||||||||||||
Interest expense | (65,613 | ) | (69,803 | ) | (130,309 | ) | (141,057 | ) | ||||||||
Loss on extinguishment and forgiveness of debt, net | (200 | ) | (1,472 | ) | (1,480 | ) | (1,472 | ) | ||||||||
Other income, net | 778 | 3,030 | 953 | 2,591 | ||||||||||||
Equity in income of unconsolidated entities | 1,497 | 505 | 1,743 | 1,005 | ||||||||||||
Gain on disposition of real estate and real estate assets held for sale, net | 8,795 | 221,755 | 34,044 | 232,586 | ||||||||||||
Total other (expenses) income, net | (54,743 | ) | 154,015 | (95,049 | ) | 93,653 | ||||||||||
Income before taxes | 55,292 | 293,448 | 143,203 | 365,630 | ||||||||||||
Provision for income taxes | (1,053 | ) | (1,164 | ) | (2,101 | ) | (2,375 | ) | ||||||||
Net income | 54,239 | 292,284 | 141,102 | 363,255 | ||||||||||||
Net loss attributable to non-controlling interests (1) | 8 | 30 | 15 | 58 | ||||||||||||
Net income attributable to the OP | $ | 54,247 | $ | 292,314 | $ | 141,117 | $ | 363,313 | ||||||||
Basic and diluted net income per unit attributable to common unitholders | $ | 0.04 | $ | 0.27 | $ | 0.11 | $ | 0.33 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||
Net income | $ | 54,239 | $ | 292,284 | $ | 141,102 | $ | 363,255 | Net income | $ | 120,723 | $ | 86,863 | |||||||||||||||||||||||
Total other comprehensive loss | ||||||||||||||||||||||||||||||||||||
Unrealized loss on interest rate derivatives | (6,497 | ) | (16,308 | ) | (85,047 | ) | (27,594 | ) | ||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on interest rate derivatives | Unrealized gain (loss) on interest rate derivatives | 0 | (78,550) | |||||||||||||||||||||||||||||||||
Reclassification of previous unrealized loss on interest rate derivatives into net income | 4,604 | 99 | 6,552 | 196 | Reclassification of previous unrealized loss on interest rate derivatives into net income | 98 | 1,948 | |||||||||||||||||||||||||||||
Total other comprehensive loss | (1,893 | ) | (16,209 | ) | (78,495 | ) | (27,398 | ) | ||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | 98 | (76,602) | |||||||||||||||||||||||||||||||||
Total comprehensive income | 52,346 | 276,075 | 62,607 | 335,857 | Total comprehensive income | 120,821 | 10,261 | |||||||||||||||||||||||||||||
Comprehensive loss attributable to non-controlling interests(1) | 8 | 30 | 15 | 58 | Comprehensive loss attributable to non-controlling interests (1) | 3 | 7 | |||||||||||||||||||||||||||||
Total comprehensive income attributable to the OP | $ | 52,354 | $ | 276,105 | $ | 62,622 | $ | 335,915 | Total comprehensive income attributable to the OP | $ | 120,824 | $ | 10,268 |
Preferred Units | Common Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partner | General Partner | Limited Partner | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Units | Capital | Number of Units | Capital | Number of Units | Capital | Number of Units | Capital | Total Partners' Capital | Non-Controlling Interests | Total Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | 18,871,246 | $ | 254,294 | 49,766 | $ | 1,787 | 228,881,547 | $ | 6,580,752 | 152,033 | $ | 4,209 | $ | 6,841,042 | $ | 1,174 | $ | 6,842,216 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common OP Units, net | — | — | — | — | 35,710 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | (4,000,000) | (100,000) | — | — | — | — | — | — | (100,000) | — | (100,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common OP Units to settle tax obligation | — | — | — | — | (49,237) | (1,681) | — | — | (1,681) | — | (1,681) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation, net | — | — | — | — | 261,934 | 2,892 | — | — | 2,892 | — | 2,892 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to Common OP Units and non-controlling interests —$0.4620 per common unit | — | — | — | — | — | (105,858) | — | (70) | (105,928) | — | (105,928) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | (1,581) | — | — | (1,581) | — | (1,581) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to Series F Preferred Units | — | (6,506) | — | (19) | — | — | — | — | (6,525) | — | (6,525) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 120,647 | — | 79 | 120,726 | (3) | 120,723 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 98 | — | — | 98 | — | 98 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 14,871,246 | $ | 147,788 | 49,766 | $ | 1,768 | 229,129,954 | $ | 6,595,269 | 152,033 | $ | 4,218 | $ | 6,749,043 | $ | 1,171 | $ | 6,750,214 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Units | Common Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partner | General Partner | Limited Partner | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Units | Capital | Number of Units | Capital | Number of Units | Capital | Number of Units | Capital | Total Partners' Capital | Non-Controlling Interests | Total Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 | 30,871,246 | $ | 460,504 | 49,766 | $ | 1,869 | 215,369,197 | $ | 6,402,154 | 157,343 | $ | 4,433 | $ | 6,868,960 | $ | 1,233 | $ | 6,870,193 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Limited Partners' Common OP Units to General Partner's Common OP Units | — | — | — | — | 910 | 45 | (910) | (45) | — | — | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | — | (27) | — | — | — | — | — | — | (27) | — | (27) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common OP Units to settle tax obligation | — | — | — | — | (48,218) | (2,378) | — | — | (2,378) | — | (2,378) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation, net | — | — | — | — | 234,408 | 2,855 | — | — | 2,855 | — | 2,855 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to Common OP Units and non-controlling interests —$0.6875 per common unit | — | — | — | — | — | (148,194) | — | (105) | (148,299) | — | (148,299) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | (1,628) | — | — | (1,628) | — | (1,628) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to Series F Preferred Units | — | (12,928) | — | (19) | — | — | — | — | (12,947) | — | (12,947) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 86,808 | — | 62 | 86,870 | (7) | 86,863 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (76,547) | — | (55) | (76,602) | — | (76,602) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 30,871,246 | $ | 447,549 | 49,766 | $ | 1,850 | 215,556,297 | $ | 6,263,115 | 156,433 | $ | 4,290 | $ | 6,716,804 | $ | 1,226 | $ | 6,718,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Units | Common Units | |||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partner | General Partner | Limited Partner | |||||||||||||||||||||||||||||||||||||
Number of Units | Capital | Number of Units | Capital | Number of Units | Capital | Number of Units | Capital | Total Partners' Capital | Non-Controlling Interests | Total Capital | ||||||||||||||||||||||||||||||
Balance, January 1, 2020 | 30,871,246 | $ | 460,504 | 49,766 | $ | 1,869 | 1,076,845,984 | $ | 6,375,239 | 786,719 | $ | 4,433 | $ | 6,842,045 | $ | 1,233 | $ | 6,843,278 | ||||||||||||||||||||||
Conversion of Limited Partners' Common OP Units to General Partner's Common OP Units | — | — | — | — | 4,549 | 45 | (4,549 | ) | (45 | ) | — | — | — | |||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | — | (27 | ) | — | — | — | — | — | — | (27 | ) | — | (27 | ) | ||||||||||||||||||||||||||
Repurchases of common OP Units to settle tax obligation | — | — | — | — | (241,092 | ) | (2,378 | ) | — | — | (2,378 | ) | — | (2,378 | ) | |||||||||||||||||||||||||
Equity-based compensation, net | — | — | — | — | 1,172,038 | 2,855 | — | — | 2,855 | — | 2,855 | |||||||||||||||||||||||||||||
Distributions to Common OP Units and non-controlling interests —$0.1375 per common unit | — | — | — | — | — | (148,194 | ) | — | (105 | ) | (148,299 | ) | — | (148,299 | ) | |||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | (1,628 | ) | — | — | (1,628 | ) | — | (1,628 | ) | ||||||||||||||||||||||||||
Distributions to Series F Preferred Units | — | (12,928 | ) | — | (19 | ) | — | — | — | — | (12,947 | ) | — | (12,947 | ) | |||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 86,808 | — | 62 | 86,870 | (7 | ) | 86,863 | ||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (76,547 | ) | — | (55 | ) | (76,602 | ) | — | (76,602 | ) | |||||||||||||||||||||||||
Balance, March 31, 2020 | 30,871,246 | $ | 447,549 | 49,766 | $ | 1,850 | 1,077,781,479 | $ | 6,236,200 | 782,170 | $ | 4,290 | $ | 6,689,889 | $ | 1,226 | $ | 6,691,115 | ||||||||||||||||||||||
Redemption of Series F Preferred Stock | — | (25 | ) | — | — | — | — | — | — | (25 | ) | — | (25 | ) | ||||||||||||||||||||||||||
Equity-based compensation, net | — | — | — | — | 67,075 | 4,071 | — | — | 4,071 | — | 4,071 | |||||||||||||||||||||||||||||
Distributions to Common OP Units and non-controlling interests —$0.077 per common unit | — | — | — | — | — | (82,997 | ) | — | (61 | ) | (83,058 | ) | — | (83,058 | ) | |||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | (18 | ) | — | — | (18 | ) | — | (18 | ) | ||||||||||||||||||||||||||
Distributions to Series F Preferred Units | — | (12,928 | ) | — | (20 | ) | — | — | — | — | (12,948 | ) | — | (12,948 | ) | |||||||||||||||||||||||||
Repurchase of convertible notes | — | — | — | — | — | (204 | ) | — | — | (204 | ) | — | (204 | ) | ||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 54,208 | — | 39 | 54,247 | (8 | ) | 54,239 | ||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (1,892 | ) | — | (1 | ) | (1,893 | ) | — | (1,893 | ) | |||||||||||||||||||||||||
Balance, June 30, 2020 | 30,871,246 | $ | 434,596 | 49,766 | $ | 1,830 | 1,077,848,554 | $ | 6,209,368 | 782,170 | $ | 4,267 | $ | 6,650,061 | $ | 1,218 | $ | 6,651,279 |
Preferred Units | Common Units | |||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partner | General Partner | Limited Partner | |||||||||||||||||||||||||||||||||||||
Number of Units | Capital | Number of Units | Capital | Number of Units | Capital | Number of Units | Capital | Total Partners' Capital | Non-Controlling Interests | Total Capital | ||||||||||||||||||||||||||||||
Balance, January 1, 2019 | 42,834,138 | $ | 710,325 | 86,874 | $ | 2,883 | 967,515,165 | $ | 6,446,734 | 23,715,908 | $ | 138,931 | $ | 7,298,873 | $ | 1,271 | $ | 7,300,144 | ||||||||||||||||||||||
Issuance of common OP Units, net | — | — | — | — | 3,309,808 | 27,544 | — | — | 27,544 | — | 27,544 | |||||||||||||||||||||||||||||
Conversion of Limited Partners' Common OP Units to General Partner's Common OP Units | — | — | — | — | — | (26 | ) | — | 26 | — | — | — | ||||||||||||||||||||||||||||
Conversion of Limited Partner Series F Preferred Units to Series F Preferred Stock | 37,108 | 923 | (37,108 | ) | (923 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Repurchases of common OP Units to settle tax obligation | — | — | — | — | (199,083 | ) | (1,595 | ) | — | — | (1,595 | ) | — | (1,595 | ) | |||||||||||||||||||||||||
Equity-based compensation, net | — | — | — | — | 950,487 | 2,872 | — | — | 2,872 | — | 2,872 | |||||||||||||||||||||||||||||
Contributions from non-controlling interest holders | — | — | — | — | — | — | — | — | — | 64 | 64 | |||||||||||||||||||||||||||||
Distributions to Common OP Units and non-controlling interests —$0.1375 per common unit | — | — | — | — | — | (133,480 | ) | — | (3,262 | ) | (136,742 | ) | — | (136,742 | ) | |||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | (1,222 | ) | — | — | (1,222 | ) | — | (1,222 | ) | ||||||||||||||||||||||||||
Distributions to Series F Preferred Units | — | (17,940 | ) | — | (33 | ) | — | — | — | — | (17,973 | ) | — | (17,973 | ) | |||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 69,304 | — | 1,695 | 70,999 | (28 | ) | 70,971 | ||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (10,922 | ) | — | (267 | ) | (11,189 | ) | — | (11,189 | ) | |||||||||||||||||||||||||
Balance, March 31, 2019 | 42,871,246 | $ | 693,308 | 49,766 | $ | 1,927 | 971,576,377 | $ | 6,399,209 | 23,715,908 | $ | 137,123 | $ | 7,231,567 | $ | 1,307 | $ | 7,232,874 | ||||||||||||||||||||||
Issuance of common OP Units, net | — | — | — | — | 1,773,456 | 14,534 | — | — | 14,534 | — | 14,534 | |||||||||||||||||||||||||||||
Repurchases of common OP Units to settle tax obligation | — | — | — | — | — | (9 | ) | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||||||||||||
Equity-based compensation, net | — | — | — | — | 36,066 | 3,883 | — | — | 3,883 | — | 3,883 | |||||||||||||||||||||||||||||
Distributions to Common OP Units and non-controlling interests —$0.1375 per common unit | — | — | — | — | — | (133,841 | ) | — | (3,264 | ) | (137,105 | ) | — | (137,105 | ) | |||||||||||||||||||||||||
Dividend equivalents on awards granted under the Equity Plan | — | — | — | — | — | (44 | ) | — | — | (44 | ) | — | (44 | ) | ||||||||||||||||||||||||||
Distributions to Series F Preferred Units | — | (17,958 | ) | — | (15 | ) | — | — | — | — | (17,973 | ) | — | (17,973 | ) | |||||||||||||||||||||||||
Distributions payable relinquished | — | — | — | — | — | — | — | 6,429 | 6,429 | — | 6,429 | |||||||||||||||||||||||||||||
Surrender of Limited Partner OP Units | — | — | — | — | — | (8,520 | ) | (2,922,445 | ) | (18,017 | ) | (26,537 | ) | — | (26,537 | ) | ||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 285,658 | — | 6,656 | 292,314 | (30 | ) | 292,284 | ||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (15,824 | ) | — | (385 | ) | (16,209 | ) | — | (16,209 | ) | |||||||||||||||||||||||||
Balance, June 30, 2019 | 42,871,246 | $ | 675,350 | 49,766 | $ | 1,912 | 973,385,899 | $ | 6,545,046 | 20,793,463 | $ | 128,542 | $ | 7,350,850 | $ | 1,277 | $ | 7,352,127 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||
Net income | $ | 120,723 | $ | 86,863 | ||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 112,265 | 126,980 | ||||||||||||||||||||||||||||||
Gain on real estate assets, net | (78,177) | (25,508) | ||||||||||||||||||||||||||||||
Impairments | 31,849 | 8,380 | ||||||||||||||||||||||||||||||
Equity-based compensation | 2,892 | 2,855 | ||||||||||||||||||||||||||||||
Equity in income of unconsolidated entities | (447) | (246) | ||||||||||||||||||||||||||||||
Distributions from unconsolidated entities | 447 | 259 | ||||||||||||||||||||||||||||||
(Gain) loss on other investments | (695) | 541 | ||||||||||||||||||||||||||||||
Loss on extinguishment and forgiveness of debt, net | 2,132 | 1,280 | ||||||||||||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||||||||||
Investment in direct financing leases | 366 | 364 | ||||||||||||||||||||||||||||||
Rent and tenant receivables, operating lease right-of-use and other assets, net | (2,000) | (4,462) | ||||||||||||||||||||||||||||||
Accounts payable and accrued expenses | (7,019) | (2,749) | ||||||||||||||||||||||||||||||
Deferred rent, operating lease and other liabilities | (2,245) | (22,546) | ||||||||||||||||||||||||||||||
Net cash provided by operating activities | 180,091 | 172,011 | ||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||
Investments in real estate assets | (139,964) | (147,121) | ||||||||||||||||||||||||||||||
Capital expenditures and leasing costs | (4,500) | (9,502) | ||||||||||||||||||||||||||||||
Real estate developments | (3,553) | (3,231) | ||||||||||||||||||||||||||||||
Investments in unconsolidated entities | 0 | (2,669) | ||||||||||||||||||||||||||||||
Return of investment from unconsolidated entities | 1,124 | 257 | ||||||||||||||||||||||||||||||
Proceeds from disposition of real estate | 253,503 | 140,428 | ||||||||||||||||||||||||||||||
Investment in leasehold improvements and other assets | 36 | (87) | ||||||||||||||||||||||||||||||
Deposits for real estate assets | (3,171) | (895) | ||||||||||||||||||||||||||||||
Uses and refunds of deposits for real estate assets | 2,454 | 3,130 | ||||||||||||||||||||||||||||||
Proceeds from the settlement of property-related insurance claims | 713 | 38 | ||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 106,642 | (19,652) | ||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||
Proceeds from mortgage notes payable | 0 | 913 | ||||||||||||||||||||||||||||||
Payments on mortgage notes payable and other debt, including debt extinguishment costs | (295,869) | (123,574) | ||||||||||||||||||||||||||||||
Proceeds from credit facility | 0 | 831,313 | ||||||||||||||||||||||||||||||
Payments on credit facility, including swap termination payments | 0 | (110,000) | ||||||||||||||||||||||||||||||
Extinguishment costs related to the redemption of corporate bonds | 0 | (26) | ||||||||||||||||||||||||||||||
Extinguishment costs related to the repurchases of convertible notes | 0 | (13) | ||||||||||||||||||||||||||||||
Payments of deferred financing costs | (356) | (35) | ||||||||||||||||||||||||||||||
Refunds of deferred financing costs | 280 | 0 | ||||||||||||||||||||||||||||||
Repurchases of Common Stock to settle tax obligations | (1,681) | (2,378) | ||||||||||||||||||||||||||||||
Proceeds from the issuance of Common Stock, net of underwriters’ discount and offering expenses | 1,336 | 0 | ||||||||||||||||||||||||||||||
Redemption of Series F Preferred Stock | (100,000) | (27) | ||||||||||||||||||||||||||||||
Distributions paid | (96,559) | (162,747) | ||||||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | (492,849) | 433,426 | ||||||||||||||||||||||||||||||
Net change in cash and cash equivalents and restricted cash | $ | (206,116) | $ | 585,785 | ||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 141,102 | $ | 363,255 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 240,902 | 260,771 | ||||||
Gain on real estate assets, net | (34,303 | ) | (232,597 | ) | ||||
Impairments | 20,474 | 20,296 | ||||||
Equity based compensation | 6,926 | 6,755 | ||||||
Equity in income of unconsolidated entities | (1,743 | ) | (1,005 | ) | ||||
Distributions from unconsolidated entities | 861 | — | ||||||
Loss on investments | 683 | 464 | ||||||
Loss on derivative instruments | — | 58 | ||||||
Non-cash restructuring expense | — | 4,048 | ||||||
Loss on extinguishment and forgiveness of debt, net | 1,480 | 1,472 | ||||||
Surrender of Limited Partner OP Units | — | (26,536 | ) | |||||
Changes in assets and liabilities: | ||||||||
Investment in direct financing leases | 736 | 821 | ||||||
Rent and tenant receivables, operating lease right-of-use and other assets, net | (30,158 | ) | (9,596 | ) | ||||
Accounts payable and accrued expenses | (13,870 | ) | (13,104 | ) | ||||
Deferred rent, operating lease and other liabilities | (12,138 | ) | (27,084 | ) | ||||
Net cash provided by operating activities | 320,952 | 348,018 | ||||||
Cash flows from investing activities: | ||||||||
Investments in real estate assets | (147,121 | ) | (191,550 | ) | ||||
Capital expenditures and leasing costs | (15,665 | ) | (19,695 | ) | ||||
Real estate developments | (6,469 | ) | (10,537 | ) | ||||
Principal repayments received on mortgage notes receivable | — | 88 | ||||||
Investments in unconsolidated entities | (10,066 | ) | (2,767 | ) | ||||
Return of investment from unconsolidated entities | 970 | — | ||||||
Proceeds from disposition of real estate | 204,114 | 739,873 | ||||||
Investment in leasehold improvements and other assets | (314 | ) | (798 | ) | ||||
Deposits for real estate assets | (1,420 | ) | (3,072 | ) | ||||
Investments in mezzanine position | (9,959 | ) | — | |||||
Proceeds from sale of investments and other assets | — | 8,199 | ||||||
Uses and refunds of deposits for real estate assets | 4,036 | 2,946 | ||||||
Proceeds from the settlement of property-related insurance claims | 48 | 334 | ||||||
Net cash provided by investing activities | 18,154 | 523,021 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from mortgage notes payable | 1,032 | — | ||||||
Payments on mortgage notes payable and other debt, including debt extinguishment costs | (135,036 | ) | (175,962 | ) | ||||
Proceeds from credit facility | 902,000 | 1,034,000 | ||||||
Payments on credit facility | (1,052,000 | ) | (537,000 | ) | ||||
Proceeds from corporate bonds | 594,864 | — | ||||||
Redemptions of corporate bonds, including extinguishment costs | (26 | ) | (750,000 | ) | ||||
Repurchases of convertible notes, including extinguishment costs | (50,326 | ) | — | |||||
Payments of deferred financing costs | (6,946 | ) | (182 | ) | ||||
Repurchases of Common Stock to settle tax obligations | (2,378 | ) | (1,604 | ) | ||||
Proceeds from the issuance of Common Stock, net of underwriters’ discount and offering expenses | — | 42,078 | ||||||
Series F Preferred Stock redemption expenses | (52 | ) | — | |||||
Contributions from non-controlling interest holders | — | 64 | ||||||
Distributions paid | (324,032 | ) | (303,894 | ) | ||||
Net cash used in financing activities | (72,900 | ) | (692,500 | ) | ||||
Net change in cash and cash equivalents and restricted cash | $ | 266,206 | $ | 178,539 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash, beginning of period | $ | 537,381 | $ | 33,880 | ||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 331,265 | $ | 619,665 | ||||||||||||||||||||||||||||
Reconciliation of Cash and Cash Equivalents and Restricted Cash | ||||||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | $ | 523,539 | $ | 12,921 | ||||||||||||||||||||||||||||
Restricted cash at beginning of period | 13,842 | 20,959 | ||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | 537,381 | 33,880 | ||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | 318,561 | 600,945 | ||||||||||||||||||||||||||||||
Restricted cash at end of period | 12,704 | 18,720 | ||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 331,265 | $ | 619,665 |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash and cash equivalents and restricted cash, beginning of period | $ | 33,880 | $ | 53,663 | ||||
Cash and cash equivalents and restricted cash, end of period | $ | 300,086 | $ | 232,202 | ||||
Reconciliation of Cash and Cash Equivalents and Restricted Cash | ||||||||
Cash and cash equivalents at beginning of period | $ | 12,921 | $ | 30,758 | ||||
Restricted cash at beginning of period | 20,959 | 22,905 | ||||||
Cash and cash equivalents and restricted cash at beginning of period | 33,880 | 53,663 | ||||||
Cash and cash equivalents at end of period | 278,883 | 211,510 | ||||||
Restricted cash at end of period | 21,203 | 20,692 | ||||||
Cash and cash equivalents and restricted cash at end of period | $ | 300,086 | $ | 232,202 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Litigation and non-routine costs, net: | ||||||||||||||||||||||||||||||||
Legal fees, costs and settlements (1) (2) | $ | 68 | $ | (6,093) | ||||||||||||||||||||||||||||
Insurance recoveries | 0 | (2,471) | ||||||||||||||||||||||||||||||
Total | $ | 68 | $ | (8,564) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Litigation and non-routine costs, net: | ||||||||||||||||
Audit Committee Investigation and related matters (1) (2) | $ | (118 | ) | $ | 22,767 | $ | (6,211 | ) | $ | 37,458 | ||||||
Legal fees and expenses | — | — | — | 2 | ||||||||||||
Litigation settlements | — | — | — | 12,235 | ||||||||||||
Total costs | (118 | ) | 22,767 | (6,211 | ) | 49,695 | ||||||||||
Insurance recoveries | — | — | (2,471 | ) | (48,420 | ) | ||||||||||
Other recoveries (3) | — | (26,536 | ) | — | (26,536 | ) | ||||||||||
Total | $ | (118 | ) | $ | (3,769 | ) | $ | (8,682 | ) | $ | (25,261 | ) |
(2)The negative balance for the three months ended March 31, 2020 is a result of estimated costs accrued in prior periods that exceeded actual expenses incurred. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Restricted Shares | $ | — | $ | — | $ | — | $ | 77 | ||||||||
Time-Based Restricted Stock Units (1) | 1,397 | 1,234 | 2,782 | 2,484 | ||||||||||||
Long-Term Incentive-Based Restricted Stock Units | 1,401 | 1,383 | 2,500 | 2,612 | ||||||||||||
Deferred Stock Units | 947 | 947 | 1,019 | 1,018 | ||||||||||||
Stock Options | 326 | 319 | 625 | 564 | ||||||||||||
Total | $ | 4,071 | $ | 3,883 | $ | 6,926 | $ | 6,755 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Time-Based Restricted Stock Units (1) | $ | 1,438 | $ | 1,386 | ||||||||||||||||||||||||||||
Long-Term Incentive-Based Restricted Stock Units | 1,115 | 1,098 | ||||||||||||||||||||||||||||||
Deferred Stock Units | 85 | 72 | ||||||||||||||||||||||||||||||
Stock Options | 254 | 299 | ||||||||||||||||||||||||||||||
Total | $ | 2,892 | $ | 2,855 |
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Real estate investments, at cost: | ||||||||||||||||||||
Land | $ | 19,729 | $ | 19,953 | ||||||||||||||||
Buildings, fixtures and improvements | 79,257 | 95,728 | ||||||||||||||||||
Total tangible assets | 98,986 | 115,681 |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Real estate investments, at cost: | ||||||||
Land | $ | 19,953 | $ | 40,460 | ||||
Buildings, fixtures and improvements | 95,728 | 135,182 | ||||||
Total tangible assets | 115,681 | 175,642 | ||||||
Acquired intangible assets: | ||||||||
In-place leases and other intangibles (1) | 15,739 | 24,817 | ||||||
Above-market leases (2) | 15,701 | — | ||||||
Total purchase price of assets acquired | $ | 147,121 | $ | 200,459 |
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Acquired intangible assets: | ||||||||||||||||||||
In-place leases and other intangibles (1) | 12,090 | 15,739 | ||||||||||||||||||
Above-market leases (2) | 29,008 | 15,701 | ||||||||||||||||||
Total purchase price of assets acquired | $ | 140,084 | $ | 147,121 |
Weighted-Average Useful Life | March 31, 2021 | December 31, 2020 | ||||||||||||||||||
Intangible lease assets: | ||||||||||||||||||||
In-place leases and other intangibles, net of accumulated amortization of $815,131 and $810,597, respectively | 17.0 | $ | 723,695 | $ | 745,026 | |||||||||||||||
Leasing commissions, net of accumulated amortization of $8,013 and $7,565, respectively | 9.2 | 16,536 | 16,042 | |||||||||||||||||
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $128,850 and $125,455, respectively | 23.6 | 191,601 | 167,776 | |||||||||||||||||
Total intangible lease assets, net | $ | 931,832 | $ | 928,844 | ||||||||||||||||
Intangible lease liabilities: | ||||||||||||||||||||
Below-market leases, net of accumulated amortization of $108,537 and $106,504, respectively | 19.8 | $ | 117,121 | $ | 120,938 |
Weighted-Average Useful Life | June 30, 2020 | December 31, 2019 | ||||||||
Intangible lease assets: | ||||||||||
In-place leases and other intangibles, net of accumulated amortization of $787,231 and $748,689, respectively | 16.1 | $ | 788,686 | $ | 854,196 | |||||
Leasing commissions, net of accumulated amortization of $6,409 and $6,027, respectively | 7.5 | 18,790 | 17,808 | |||||||
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $120,510 and $112,438, respectively | 16.8 | 170,205 | 165,483 | |||||||
Total intangible lease assets, net | $ | 977,681 | $ | 1,037,487 | ||||||
Intangible lease liabilities: | ||||||||||
Below-market leases, net of accumulated amortization of $106,116 and $99,315, respectively | 19.2 | $ | 130,208 | $ | 143,583 |
Remainder of 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |||||||||||||||||||
In-place leases and other intangibles: | ||||||||||||||||||||||||
Total projected to be included in amortization expense | $ | 57,571 | $ | 107,490 | $ | 93,814 | $ | 83,671 | $ | 73,403 | $ | 61,429 | ||||||||||||
Leasing commissions: | ||||||||||||||||||||||||
Total projected to be included in amortization expense | 1,317 | 2,461 | 2,360 | 2,085 | 1,867 | 1,599 | ||||||||||||||||||
Above-market lease assets and deferred lease incentives: | ||||||||||||||||||||||||
Total projected to be deducted from rental revenue | 9,962 | 19,519 | 18,708 | 17,764 | 16,393 | 14,921 | ||||||||||||||||||
Below-market lease liabilities: | ||||||||||||||||||||||||
Total projected to be included in rental revenue | 8,320 | 14,947 | 13,255 | 12,533 | 10,686 | 9,467 |
Remainder of 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |||||||||||||||||||||||||||||||||
In-place leases and other intangibles: | ||||||||||||||||||||||||||||||||||||||
Total projected to be included in amortization expense | $ | 79,608 | $ | 93,873 | $ | 84,023 | $ | 74,892 | $ | 62,809 | $ | 56,470 | ||||||||||||||||||||||||||
Leasing commissions: | ||||||||||||||||||||||||||||||||||||||
Total projected to be included in amortization expense | 2,015 | 2,485 | 2,194 | 1,979 | 1,721 | 1,498 | ||||||||||||||||||||||||||||||||
Above-market lease assets and deferred lease incentives: | ||||||||||||||||||||||||||||||||||||||
Total projected to be deducted from rental revenue | 15,679 | 20,388 | 19,449 | 18,055 | 16,488 | 14,413 | ||||||||||||||||||||||||||||||||
Below-market lease liabilities: | ||||||||||||||||||||||||||||||||||||||
Total projected to be included in rental revenue | 10,480 | 13,108 | 12,388 | 10,591 | 9,372 | 8,848 |
Ownership % (1) | Number of Properties | Carrying Amount of Investment | Equity in Income | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Investment | March 31, 2021 | March 31, 2021 | December 31, 2020 | March 31, 2021 | March 31, 2020 | |||||||||||||||||||||||||||||||||||||||
Industrial Partnership | 20% | 7 | $ | 44,570 | $ | 45,378 | $ | 245 | 180 | |||||||||||||||||||||||||||||||||||
Office Partnership | 20% | 4 | 13,117 | 13,435 | 202 | 73 | ||||||||||||||||||||||||||||||||||||||
Faison JV Bethlehem GA (2) | 0% | 0 | 0 | 0 | 0 | (7) | ||||||||||||||||||||||||||||||||||||||
Total unconsolidated joint ventures | $ | 57,687 | $ | 58,813 | $ | 447 | $ | 246 | ||||||||||||||||||||||||||||||||||||
Preferred equity (3) | 22,826 | 22,826 | — | — | ||||||||||||||||||||||||||||||||||||||||
Total investment in unconsolidated entities | $ | 80,513 | $ | 81,639 | $ | 447 | $ | 246 | ||||||||||||||||||||||||||||||||||||
Carrying Amount of Investment | Equity in Income | |||||||||||||||||||
Six Months Ended | ||||||||||||||||||||
Investment | Ownership % (1) | Number of Properties | June 30, 2020 | December 31, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||||
Faison JV Bethlehem GA (2) | 90% | 1 | $ | 41,076 | $ | 40,416 | $ | 1,197 | $ | 1,035 | ||||||||||
Industrial Partnership (3) | 20% | 6 | 35,257 | 28,409 | 347 | (30 | ) | |||||||||||||
Office Partnership (4) | 20% | 3 | 9,967 | — | 199 | — |
The |
March 31, 2021 | December 31, 2020 | |||||||||||||
Straight-line rent receivable, net | $ | 278,871 | $ | 278,831 | ||||||||||
Accounts receivable, net | 52,000 | 53,051 | ||||||||||||
Deferred costs, net (1) | 4,339 | 5,185 | ||||||||||||
Investment in direct financing leases, net | 6,181 | 6,547 | ||||||||||||
Investment in Retained REITs (2) | 7,951 | 7,255 | ||||||||||||
Prepaid expenses | 7,633 | 3,850 | ||||||||||||
Leasehold improvements, property and equipment, net (3) | 3,740 | 3,991 | ||||||||||||
Other assets, net | 8,211 | 7,910 | ||||||||||||
Total | $ | 368,926 | $ | 366,620 |
June 30, 2020 | December 31, 2019 | |||||||
Straight-line rent receivable | $ | 266,823 | $ | 266,195 | ||||
Accounts receivable | 64,791 | 41,556 | ||||||
Mezzanine position | 9,959 | — | ||||||
Deferred costs, net (1) | 6,927 | 7,208 | ||||||
Investment in direct financing leases, net | 8,579 | 9,341 | ||||||
Investment in Cole REITs (2) | 6,867 | 7,552 | ||||||
Prepaid expenses | 6,538 | 3,453 | ||||||
Leasehold improvements, property and equipment, net (3) | 4,317 | 4,809 | ||||||
Other assets, net | 7,608 | 8,281 | ||||||
Total | $ | 382,409 | $ | 348,395 |
Level 1 | Level 2 | Level 3 | Balance as of June 30, 2020 | |||||||||||||
Assets: | ||||||||||||||||
Investment in Cole REITs | $ | — | $ | — | $ | 6,867 | $ | 6,867 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | — | $ | (106,520 | ) | $ | — | $ | (106,520 | ) | ||||||
Level 1 | Level 2 | Level 3 | Balance as of December 31, 2019 | |||||||||||||
Assets: | ||||||||||||||||
Derivative assets | $ | — | $ | 250 | $ | — | $ | 250 | ||||||||
Investment in Cole REITs | — | — | 7,552 | 7,552 | ||||||||||||
Total assets | $ | — | $ | 250 | $ | 7,552 | $ | 7,802 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | — | $ | (28,081 | ) | $ | — | $ | (28,081 | ) |
Investment in Cole REITs | ||||
Beginning balance, January 1, 2020 | $ | 7,552 | ||
Unrealized loss included in other income, net | (685 | ) | ||
Ending Balance, June 30, 2020 | $ | 6,867 | ||
Beginning balance, January 1, 2019 | $ | 7,844 | ||
Unrealized loss included in other income, net | (292 | ) | ||
Ending Balance, June 30, 2019 | $ | 7,552 |
Investment in Retained REITs | ||||||||||||||
Beginning balance, January 1, 2021 | $ | 7,255 | ||||||||||||
Unrealized gain included in other income (loss), net | 696 | |||||||||||||
Ending Balance, March 31, 2021 | $ | 7,951 | ||||||||||||
Beginning balance, January 1, 2020 | $ | 7,552 | ||||||||||||
Unrealized loss included in other income (loss), net | (543) | |||||||||||||
Ending Balance, March 31, 2020 | $ | 7,009 |
Level | Carrying Amount at March 31, 2021 | Fair Value at March 31, 2021 | Carrying Amount at December 31, 2020 | Fair Value at December 31, 2020 | ||||||||||||||||||||||||||||
Liabilities (1): | ||||||||||||||||||||||||||||||||
Mortgage notes payable and other debt, net | 2 | $ | 1,040,386 | $ | 1,096,403 | $ | 1,334,689 | $ | 1,384,490 | |||||||||||||||||||||||
Corporate bonds, net | 2 | 4,623,698 | 4,925,246 | 4,622,951 | 5,123,588 | |||||||||||||||||||||||||||
Total liabilities | $ | 5,664,084 | $ | 6,021,649 | $ | 5,957,640 | $ | 6,508,078 |
Level | Carrying Amount at June 30, 2020 | Fair Value at June 30, 2020 | Carrying Amount at December 31, 2019 | Fair Value at December 31, 2019 | ||||||||||||||
Liabilities (1): | ||||||||||||||||||
Mortgage notes payable and other debt, net | 2 | $ | 1,400,317 | $ | 1,446,194 | $ | 1,535,918 | $ | 1,590,915 | |||||||||
Corporate bonds, net | 2 | 3,435,016 | 3,575,898 | 2,839,581 | 3,022,087 | |||||||||||||
Convertible debt, net | 2 | 270,872 | 269,512 | 319,947 | 327,237 | |||||||||||||
Credit facility | 2 | 900,000 | 900,000 | 1,050,000 | 1,050,000 | |||||||||||||
Total liabilities | $ | 6,006,205 | $ | 6,191,604 | $ | 5,745,446 | $ | 5,990,239 |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | Debt Issuances | Repayments, Extinguishment and Assumptions | Accretion and Amortization | Balance as of March 31, 2021 | |||||||||||||||||||||||||||||||
Mortgage notes payable: | |||||||||||||||||||||||||||||||||||
Outstanding balance | $ | 1,333,195 | $ | 0 | $ | (292,806) | $ | — | $ | 1,040,389 | |||||||||||||||||||||||||
Net premiums (discounts) (1) | 1,495 | — | (1,005) | (493) | (3) | ||||||||||||||||||||||||||||||
Deferred costs | (5,855) | 0 | 353 | 444 | (5,058) | ||||||||||||||||||||||||||||||
Mortgage notes payable, net | 1,328,835 | 0 | (293,458) | (49) | 1,035,328 | ||||||||||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||||||
Outstanding balance | 4,650,000 | 0 | — | — | 4,650,000 | ||||||||||||||||||||||||||||||
Discount (2) | (27,049) | 0 | — | 747 | (26,302) | ||||||||||||||||||||||||||||||
Deferred costs | (38,721) | 0 | — | 1,275 | (37,446) | ||||||||||||||||||||||||||||||
Corporate bonds, net | 4,584,230 | 0 | — | 2,022 | 4,586,252 | ||||||||||||||||||||||||||||||
Total debt | $ | 5,913,065 | $ | 0 | $ | (293,458) | $ | 1,973 | $ | 5,621,580 |
Six Months Ended June 30, 2020 | |||||||||||||||||||||
Balance as of December 31, 2019 | Debt Issuances | Repayments, Extinguishment and Assumptions | Accretion and Amortization | Balance as of June 30, 2020 | |||||||||||||||||
Mortgage notes payable: | |||||||||||||||||||||
Outstanding balance | $ | 1,529,057 | $ | 1,032 | $ | (133,657 | ) | $ | — | $ | 1,396,432 | ||||||||||
Net premiums (1) | 6,861 | — | (216 | ) | (2,760 | ) | 3,885 | ||||||||||||||
Deferred costs | (7,784 | ) | — | 65 | 1,054 | (6,665 | ) | ||||||||||||||
Mortgages notes payable, net | 1,528,134 | 1,032 | (133,808 | ) | (1,706 | ) | 1,393,652 | ||||||||||||||
Corporate bonds: | |||||||||||||||||||||
Outstanding balance | 2,850,000 | 600,000 | — | — | 3,450,000 | ||||||||||||||||
Discount (2) | (10,419 | ) | (5,136 | ) | — | 571 | (14,984 | ) | |||||||||||||
Deferred costs | (25,842 | ) | (5,908 | ) | — | 1,669 | (30,081 | ) | |||||||||||||
Corporate bonds, net | 2,813,739 | 588,956 | — | 2,240 | 3,404,935 | ||||||||||||||||
Convertible debt: | |||||||||||||||||||||
Outstanding balance | 321,802 | — | (50,169 | ) | — | 271,633 | |||||||||||||||
Discount (2) | (1,855 | ) | — | 140 | 954 | (761 | ) | ||||||||||||||
Deferred costs | (1,764 | ) | — | 133 | 911 | (720 | ) | ||||||||||||||
Convertible debt, net | 318,183 | — | (49,896 | ) | 1,865 | 270,152 | |||||||||||||||
Credit facility: | |||||||||||||||||||||
Outstanding balance | 1,050,000 | 902,000 | (1,052,000 | ) | — | 900,000 | |||||||||||||||
Deferred costs (3) | (4,331 | ) | — | — | 645 | (3,686 | ) | ||||||||||||||
Credit facility, net | 1,045,669 | 902,000 | (1,052,000 | ) | 645 | 896,314 | |||||||||||||||
Total debt | $ | 5,705,725 | $ | 1,491,988 | $ | (1,235,704 | ) | $ | 3,044 | $ | 5,965,053 |
Encumbered Properties | Net Carrying Value of Collateralized Properties (1) | Outstanding Balance | Weighted-Average Interest Rate (2) | Weighted-Average Years to Maturity (3) | ||||||||||||
Fixed-rate debt | 313 | $ | 1,877,744 | $ | 1,381,184 | 5.02 | % | 2.5 | ||||||||
Variable-rate debt | 1 | 30,018 | 15,248 | 3.50 | % | (4) | 0.1 | |||||||||
Total (5) | 314 | $ | 1,907,762 | $ | 1,396,432 | 5.00 | % | 2.5 |
Encumbered Properties | Net Carrying Value of Collateralized Properties (1) | Outstanding Balance | Weighted-Average Interest Rate (2) | Weighted-Average Years to Maturity (3) | ||||||||||||||||||||||||||||
Fixed-rate debt | 218 | $ | 1,239,657 | $ | 1,025,413 | 4.89 | % | 2.3 | ||||||||||||||||||||||||
Variable-rate debt | 1 | 28,698 | 14,976 | 3.75 | % | (4) | 0.4 | |||||||||||||||||||||||||
Total (5) | 219 | $ | 1,268,355 | $ | 1,040,389 | 4.87 | % | 2.3 |
Total | ||||
July 1, 2020 - December 31, 2020 | $ | 78,261 | ||
2021 | 299,015 | |||
2022 | 266,951 | |||
2023 | 124,217 | |||
2024 | 621,021 | |||
2025 | 1,078 | |||
Thereafter | 5,889 | |||
Total | $ | 1,396,432 |
Total | ||||||||
April 1, 2021 - December 31, 2021 | $ | 48,985 | ||||||
2022 | 239,201 | |||||||
2023 | 124,217 | |||||||
2024 | 621,021 | |||||||
2025 | 1,078 | |||||||
2026 | 1,138 | |||||||
Thereafter | 4,749 | |||||||
Total | $ | 1,040,389 |
Outstanding Balance June 30, 2020 | Interest Rate | Maturity Date | |||||||
2024 Senior Notes | $ | 500,000 | 4.600 | % | February 6, 2024 | ||||
2025 Senior Notes | 550,000 | 4.625 | % | November 1, 2025 | |||||
2026 Senior Notes | 600,000 | 4.875 | % | June 1, 2026 | |||||
2027 Senior Notes | 600,000 | 3.950 | % | August 15, 2027 | |||||
2028 Senior Notes | 600,000 | 3.400 | % | January 15, 2028 | |||||
2029 Senior Notes | 600,000 | 3.100 | % | December 15, 2029 | |||||
Total balance and weighted-average interest rate | $ | 3,450,000 | 4.069 | % |
Outstanding Balance March 31, 2021 | Interest Rate | Maturity Date | ||||||||||||||||||
Senior Notes due 2024 | $ | 500,000 | 4.600 | % | February 6, 2024 | |||||||||||||||
Senior Notes due 2025 | 550,000 | 4.625 | % | November 1, 2025 | ||||||||||||||||
Senior Notes due 2026 | 600,000 | 4.875 | % | June 1, 2026 | ||||||||||||||||
Senior Notes due 2027 | 600,000 | 3.950 | % | August 15, 2027 | ||||||||||||||||
Senior Notes due January, 2028 | 600,000 | 3.400 | % | January 15, 2028 | ||||||||||||||||
Senior Notes due June, 2028 | 500,000 | 2.200 | % | June 15, 2028 | ||||||||||||||||
Senior Notes due 2029 | 600,000 | 3.100 | % | December 15, 2029 | ||||||||||||||||
Senior Notes due 2032 | 700,000 | 2.850 | % | December 15, 2032 | ||||||||||||||||
Total balance and weighted-average interest rate | $ | 4,650,000 | 3.685 | % |
Derivatives Designated as Hedging Instruments | Balance Sheet Location | June 30, 2020 | December 31, 2019 | |||||||
Interest rate swaps | Rent and tenant receivables and other assets, net | $ | — | $ | 250 | |||||
Interest rate swaps | Derivative, deferred rent and other liabilities | $ | (106,520 | ) | $ | (28,081 | ) |
Offsetting of Derivative Assets and Liabilities | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||||||||
June 30, 2020 | $ | — | $ | (106,520 | ) | $ | — | $ | — | $ | (106,520 | ) | $ | — | $ | — | $ | (106,520 | ) | |||||||||||||
December 31, 2019 | $ | 250 | $ | (28,081 | ) | $ | — | $ | 250 | $ | (28,081 | ) | $ | — | $ | — | $ | (27,831 | ) |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Supplemental disclosures: | ||||||||||||||||||||||||||||||||
Cash paid for interest | $ | 51,169 | $ | 50,638 | ||||||||||||||||||||||||||||
Cash paid for income taxes | $ | 456 | $ | 1,404 | ||||||||||||||||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||||||||||||||||
Accrued capital expenditures, tenant improvements and real estate developments | $ | 7,030 | $ | 14,856 | ||||||||||||||||||||||||||||
Accrued deferred financing costs | $ | 0 | $ | 345 | ||||||||||||||||||||||||||||
Real estate contributions to industrial partnership and office partnership | $ | 0 | $ | 7,494 | ||||||||||||||||||||||||||||
Distributions declared and unpaid | $ | 106,989 | $ | 150,493 | ||||||||||||||||||||||||||||
Real estate investments received from lease related transactions | $ | 2,103 | $ | 259 | ||||||||||||||||||||||||||||
Note receivable for disposal of real estate investments | $ | 4,500 | $ | 0 | ||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Supplemental disclosures: | ||||||||
Cash paid for interest | $ | 126,173 | $ | 147,317 | ||||
Cash paid for income taxes | $ | 3,885 | $ | 3,962 | ||||
Non-cash investing and financing activities: | ||||||||
Accrued capital expenditures, tenant improvements and real estate developments | $ | 13,513 | $ | 8,551 | ||||
Real estate contributions to industrial partnership and office partnership | $ | 7,494 | $ | 29,577 | ||||
Distributions declared and unpaid | $ | 85,231 | $ | 143,306 | ||||
Distributions payable relinquished | $ | — | $ | 6,429 | ||||
Real estate investments received from lease related transactions | $ | 259 | $ | — | ||||
Exchange of real estate investments | $ | — | $ | 8,900 |
June 30, 2020 | December 31, 2019 | |||||||
Accrued interest | $ | 31,695 | $ | 31,925 | ||||
Accrued real estate and other taxes | 28,174 | 25,320 | ||||||
Accrued legal fees and litigation settlements | 8,586 | 25,571 | ||||||
Accounts payable | 5,697 | 1,779 | ||||||
Accrued other | 38,399 | 41,725 | ||||||
Total | $ | 112,551 | $ | 126,320 |
March 31, 2021 | December 31, 2020 | |||||||||||||
Accrued interest | $ | 51,813 | $ | 44,164 | ||||||||||
Accrued real estate and other taxes | 25,914 | 27,689 | ||||||||||||
Accrued legal fees and litigation settlements | 5,604 | 11,245 | ||||||||||||
Accounts payable | 1,454 | 1,895 | ||||||||||||
Accrued other | 31,701 | 32,022 | ||||||||||||
Total | $ | 116,486 | $ | 117,015 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Fixed: | ||||||||||||||||||||||||||||||||
Cash rent | $ | 263,342 | $ | 269,583 | ||||||||||||||||||||||||||||
Straight-line rent | 4,219 | 2,055 | ||||||||||||||||||||||||||||||
Lease intangible amortization | (1,547) | (748) | ||||||||||||||||||||||||||||||
Property operating cost reimbursements | 1,387 | 1,428 | ||||||||||||||||||||||||||||||
Sub-lease (1) | 4,969 | 5,263 | ||||||||||||||||||||||||||||||
Total fixed | 272,370 | 277,581 | ||||||||||||||||||||||||||||||
Variable (2) | 17,806 | 20,815 | ||||||||||||||||||||||||||||||
Income from direct financing leases | 133 | 190 | ||||||||||||||||||||||||||||||
Total rental revenue | $ | 290,309 | $ | 298,586 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Fixed: | ||||||||||||||||
Cash rent (1) | $ | 253,117 | $ | 277,324 | $ | 522,702 | $ | 559,899 | ||||||||
Straight-line rent (2) | 3,404 | 8,043 | 5,458 | 15,455 | ||||||||||||
Lease intangible amortization | (788 | ) | (611 | ) | (1,536 | ) | (1,342 | ) | ||||||||
Property operating cost reimbursements | 1,363 | 1,422 | 2,791 | 2,886 | ||||||||||||
Sub-lease (3) | 5,279 | 5,282 | 10,543 | 10,771 | ||||||||||||
Total fixed | 262,375 | 291,460 | 539,958 | 587,669 | ||||||||||||
Variable (4) | 16,039 | 20,372 | 36,852 | 40,789 | ||||||||||||
Income from direct financing leases | 162 | 211 | 352 | 428 | ||||||||||||
Total rental revenue | $ | 278,576 | $ | 312,043 | $ | 577,162 | $ | 628,886 |
The Company’s tenants are generally sub-tenants under certain ground leases |
Future Minimum Operating Lease Payments | Future Minimum Direct Financing Lease Payments (1) | |||||||||||||||||||||
Future Minimum Operating Lease Payments | Future Minimum Direct Financing Lease Payments (1) | |||||||||||||||||||||
July 1, 2020 - December 31, 2020 | $ | 509,142 | $ | 1,068 | ||||||||||||||||||
2021 | 1,046,102 | 2,014 | ||||||||||||||||||||
April 1, 2021 - December 31, 2021 | April 1, 2021 - December 31, 2021 | $ | 772,883 | $ | 1,501 | |||||||||||||||||
2022 | 984,711 | 1,925 | 2022 | 990,905 | 1,925 | |||||||||||||||||
2023 | 920,421 | 1,565 | 2023 | 929,394 | 1,565 | |||||||||||||||||
2024 | 848,833 | 510 | 2024 | 860,798 | 510 | |||||||||||||||||
2025 | 743,217 | 169 | 2025 | 756,324 | 169 | |||||||||||||||||
2026 | 2026 | 694,793 | 171 | |||||||||||||||||||
Thereafter | 4,556,368 | 655 | Thereafter | 4,177,260 | 484 | |||||||||||||||||
Total | $ | 9,608,794 | $ | 7,906 | Total | $ | 9,182,357 | $ | 6,325 |
(1)Related to 18 properties which are subject to direct financing leases and, therefore, revenue is recognized as rental income on the discounted cash flows of the lease payments. Amounts reflect undiscounted cash flows to be received by the Company under the lease agreements on these respective properties. |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Operating lease cost (1) | $ | 5,750 | $ | 7,575 | ||||||||||||||||||||||
Sublease income (2) | $ | (4,969) | $ | (5,263) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating lease cost (1) | $ | 6,135 | $ | 5,418 | $ | 13,710 | $ | 12,396 | ||||||||
Sublease income (2) | $ | (5,279 | ) | $ | (5,282 | ) | $ | (10,543 | ) | $ | (10,771 | ) |
(2)The Company’s tenants are generally sub-tenants under certain ground leases |
Future Minimum Lease Payments | ||||
July 1, 2020 - December 31, 2020 | $ | 10,751 | ||
2021 | 22,092 | |||
2022 | 21,936 | |||
2023 | 21,590 | |||
2024 | 21,048 | |||
2025 | 20,569 | |||
Thereafter | 206,547 | |||
Total | 324,533 | |||
Less: imputed interest | 109,211 | |||
Total | $ | 215,322 |
Future Minimum Lease Payments | ||||||||
April 1, 2021 - December 31, 2021 | $ | 16,140 | ||||||
2022 | 21,016 | |||||||
2023 | 20,601 | |||||||
2024 | 19,973 | |||||||
2025 | 19,659 | |||||||
2026 | 18,229 | |||||||
Thereafter | 187,189 | |||||||
Total | 302,807 | |||||||
Less: imputed interest | 100,783 | |||||||
Total | $ | 202,024 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income | $ | 54,239 | $ | 292,284 | $ | 141,102 | $ | 363,255 | ||||||||
Net income attributable to non-controlling interests | (31 | ) | (6,626 | ) | (86 | ) | (8,293 | ) | ||||||||
Net income attributable to the General Partner | 54,208 | 285,658 | 141,016 | 354,962 | ||||||||||||
Dividends to preferred shares and units | (12,948 | ) | (17,973 | ) | (25,896 | ) | (35,946 | ) | ||||||||
Net income available to common stockholders used in basic net income per share | 41,260 | 267,685 | 115,120 | 319,016 | ||||||||||||
Income attributable to limited partners | 39 | 6,656 | 101 | 8,351 | ||||||||||||
Net income used in diluted net income per share | $ | 41,299 | $ | 274,341 | $ | 115,221 | $ | 327,367 | ||||||||
Weighted average number of Common Stock outstanding - basic | 1,078,366,566 | 973,723,139 | 1,078,152,183 | 971,106,256 | ||||||||||||
Effect of Limited Partner OP Units and dilutive securities | 1,186,500 | 26,054,596 | 1,370,957 | 25,636,664 | ||||||||||||
Weighted average number of common shares - diluted | 1,079,553,066 | 999,777,735 | 1,079,523,140 | 996,742,920 | ||||||||||||
Basic and diluted net income per share attributable to common stockholders | $ | 0.04 | $ | 0.27 | $ | 0.11 | $ | 0.33 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Net income | $ | 120,723 | $ | 86,863 | ||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | (76) | (55) | ||||||||||||||||||||||||||||||
Net income attributable to the General Partner | 120,647 | 86,808 | ||||||||||||||||||||||||||||||
Dividends to preferred shares and units | (6,525) | (12,948) | ||||||||||||||||||||||||||||||
Net income available to common stockholders used in basic net income per share | 114,122 | 73,860 | ||||||||||||||||||||||||||||||
Income attributable to limited partners | 79 | 62 | ||||||||||||||||||||||||||||||
Net income used in diluted net income per share | $ | 114,201 | $ | 73,922 | ||||||||||||||||||||||||||||
Weighted average number of Common Stock outstanding - basic | 229,159,472 | 215,587,560 | ||||||||||||||||||||||||||||||
Effect of Limited Partner OP Units and dilutive securities | 270,395 | 362,688 | ||||||||||||||||||||||||||||||
Weighted average number of common shares - diluted | 229,429,867 | 215,950,248 | ||||||||||||||||||||||||||||||
Basic and diluted net income per share attributable to common stockholders | $ | 0.50 | $ | 0.34 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Net income | $ | 120,723 | $ | 86,863 | ||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests | 3 | 7 | ||||||||||||||||||||||||||||||
Net income attributable to the Operating Partnership | 120,726 | 86,870 | ||||||||||||||||||||||||||||||
Dividends to preferred units | (6,525) | (12,948) | ||||||||||||||||||||||||||||||
Net income used in basic and diluted net income per unit | $ | 114,201 | $ | 73,922 | ||||||||||||||||||||||||||||
Weighted average number of common units outstanding - basic | 229,311,506 | 215,744,224 | ||||||||||||||||||||||||||||||
Effect of dilutive securities | 118,361 | 206,024 | ||||||||||||||||||||||||||||||
Weighted average number of common units - diluted | 229,429,867 | 215,950,248 | ||||||||||||||||||||||||||||||
Basic and diluted net income per unit attributable to common unitholders | $ | 0.50 | $ | 0.34 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income | $ | 54,239 | $ | 292,284 | $ | 141,102 | $ | 363,255 | ||||||||
Net loss attributable to non-controlling interests | 8 | 30 | 15 | 58 | ||||||||||||
Net income attributable to the Operating Partnership | 54,247 | 292,314 | 141,117 | 363,313 | ||||||||||||
Dividends to preferred units | (12,948 | ) | (17,973 | ) | (25,896 | ) | (35,946 | ) | ||||||||
Net income used in basic and diluted net income per unit | $ | 41,299 | $ | 274,341 | $ | 115,221 | $ | 327,367 | ||||||||
Weighted average number of common units outstanding - basic | 1,079,148,736 | 997,406,933 | 1,078,934,928 | 994,806,018 | ||||||||||||
Effect of dilutive securities | 404,330 | 2,370,802 | 588,212 | 1,936,902 | ||||||||||||
Weighted average number of common units - diluted | 1,079,553,066 | 999,777,735 | 1,079,523,140 | 996,742,920 | ||||||||||||
Basic and diluted net income per unit attributable to common unitholders | $ | 0.04 | $ | 0.27 | $ | 0.11 | $ | 0.33 |
Period | Record Date | Payment Date | ||||||||||||||||
June 15, 2021 - July 14, 2021 | July 1, 2021 | July 15, 2021 | ||||||||||||||||
July 15, 2021 - August 14, 2021 | August 1, 2021 | August 16, 2021 | ||||||||||||||||
August 15, 2021 - September 14, 2021 | September 1, 2021 | September 15, | ||||||||||||||||
•Total secured debt decreased by$292.8 million, from $1.3 billion to $1.0 billion, which includes prepayment of $213.1 million of mortgage notes during the first quarter of 2021. |
June 30, 2020 | June 30, 2019 | |||
Portfolio Metrics | ||||
Operating properties | 3,836 | 3,950 | ||
Rentable square feet (in millions) (1) | 88.9 | 90.6 | ||
Economic occupancy rate (1)(2) | 98.8% | 99.0% | ||
Investment-grade tenants (1)(3) | 37.0% | 39.6% |
March 31, 2021 | March 31, 2020 | |||||||||||||
Portfolio Metrics | ||||||||||||||
Operating properties | 3,855 | 3,853 | ||||||||||||
Rentable square feet (in millions) | 88.7 | 89.5 | ||||||||||||
Economic occupancy rate (1) | 98.0% | 99.1% | ||||||||||||
Investment-grade tenants (2) | 37.8% | 36.7% | ||||||||||||
Weighted-average lease term (in years) | 8.4 | 8.3 | ||||||||||||
Lease rollover: (3) | ||||||||||||||
Annual average | 6.5% | 6.6% | ||||||||||||
Maximum for a single year | 11.1% | 10.9% |
(1)Economic occupancy rate equals the sum of square feet leased (including space subject to month-to-month agreements) divided by rentable square feet. (2)Based on annualized rental income |
June 30, 2020 | June 30, 2019 | |||
Economic Metrics | ||||
Weighted-average lease term (in years) | 8.5 | 8.6 | ||
Lease rollover: (1) | ||||
Annual average | 6.0% | 5.8% | ||
Maximum for a single year | 10.9% | 7.7% |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Financial Metrics | ||||||||||||||||||||||||||
Total revenues | $ | 290,809 | $ | 299,182 | ||||||||||||||||||||||
Net income | $ | 120,723 | $ | 86,863 | ||||||||||||||||||||||
Basic and diluted net income per share attributable to common stockholders | $ | 0.50 | $ | 0.34 | ||||||||||||||||||||||
FFO attributable to common stockholders and limited partners (1) | $ | 178,988 | $ | 181,822 | ||||||||||||||||||||||
AFFO attributable to common stockholders and limited partners (1) | $ | 183,047 | $ | 180,974 | ||||||||||||||||||||||
AFFO attributable to common stockholders and limited partners per diluted share (1) | $ | 0.80 | $ | 0.84 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Financial Metrics | ||||||||||||||||
Total revenues | $ | 278,997 | $ | 312,188 | $ | 578,179 | $ | 629,068 | ||||||||
Net income | $ | 54,239 | $ | 292,284 | $ | 141,102 | $ | 363,255 | ||||||||
Basic and diluted net income per share attributable to common stockholders | $ | 0.04 | $ | 0.27 | $ | 0.11 | $ | 0.33 | ||||||||
FFO attributable to common stockholders and limited partners (1) | $ | 155,943 | $ | 179,038 | $ | 337,765 | $ | 369,342 | ||||||||
AFFO attributable to common stockholders and limited partners (1) | $ | 161,083 | $ | 177,099 | $ | 342,057 | $ | 355,502 | ||||||||
AFFO attributable to common stockholders and limited partners per diluted share (1) | $ | 0.15 | $ | 0.18 | $ | 0.32 | $ | 0.36 |
April | May | June | July (1) | ||||
Rent collection | 86% | 85% | 86% | 91% |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 vs 2019 Increase/(Decrease) | 2020 | 2019 | 2020 vs 2019 Increase/(Decrease) | 2021 | 2020 | 2021 vs 2020 Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental | $ | 278,576 | $ | 312,043 | $ | (33,467 | ) | $ | 577,162 | $ | 628,886 | $ | (51,724 | ) | Rental | $ | 290,309 | $ | 298,586 | $ | (8,277) | |||||||||||||||||||||||||||||||||||||||||
Fees from managed partnerships | 421 | 145 | 276 | 1,017 | 182 | 835 | Fees from managed partnerships | 500 | 596 | (96) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 278,997 | $ | 312,188 | $ | (33,191 | ) | $ | 578,179 | $ | 629,068 | $ | (50,889 | ) | Total revenues | $ | 290,809 | $ | 299,182 | $ | (8,373) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 vs 2019 Increase/(Decrease) | 2020 | 2019 | 2020 vs 2019 Increase/(Decrease) | 2021 | 2020 | 2021 vs 2020 Increase/(Decrease) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related | $ | 1,169 | $ | 985 | $ | 184 | $ | 2,692 | $ | 1,970 | $ | 722 | Acquisition-related | $ | 1,354 | $ | 1,523 | $ | (169) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Litigation and non-routine costs, net | (118 | ) | (3,769 | ) | 3,651 | (8,682 | ) | (25,261 | ) | 16,579 | Litigation and non-routine costs, net | 68 | (8,564) | 8,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property operating | 29,098 | 32,503 | (3,405 | ) | 59,588 | 64,881 | (5,293 | ) | Property operating | 30,605 | 30,490 | 115 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 16,120 | 16,416 | (296 | ) | 31,176 | 31,262 | (86 | ) | General and administrative | 14,526 | 15,056 | (530) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 110,599 | 118,022 | (7,423 | ) | 234,679 | 254,577 | (19,898 | ) | Depreciation and amortization | 108,075 | 124,080 | (16,005) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairments | 12,094 | 8,308 | 3,786 | 20,474 | 20,296 | 178 | Impairments | 31,849 | 8,380 | 23,469 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | — | 290 | (290 | ) | — | 9,366 | (9,366 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 168,962 | $ | 172,755 | $ | (3,793 | ) | $ | 339,927 | $ | 357,091 | $ | (17,164 | ) | Total operating expenses | $ | 186,477 | $ | 170,965 | $ | 15,512 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 vs 2019 Increase/(Decrease) | 2020 | 2019 | 2020 vs 2019 Increase/(Decrease) | 2021 | 2020 | 2021 vs 2020 Increase/(Decrease) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | (65,613 | ) | $ | (69,803 | ) | $ | (4,190 | ) | $ | (130,309 | ) | $ | (141,057 | ) | $ | (10,748 | ) | Interest expense | $ | (60,736) | $ | (64,696) | $ | (3,960) | |||||||||||||||||||||||||||||||||||||
Loss on extinguishment and forgiveness of debt, net | $ | (200 | ) | $ | (1,472 | ) | $ | (1,272 | ) | $ | (1,480 | ) | $ | (1,472 | ) | $ | 8 | Loss on extinguishment and forgiveness of debt, net | $ | (2,132) | $ | (1,280) | $ | 852 | ||||||||||||||||||||||||||||||||||||||
Other income, net | $ | 778 | $ | 3,030 | $ | (2,252 | ) | $ | 953 | $ | 2,591 | $ | (1,638 | ) | Other income, net | $ | 3,666 | $ | 175 | $ | 3,491 | |||||||||||||||||||||||||||||||||||||||||
Equity in income of unconsolidated entities | $ | 1,497 | $ | 505 | $ | 992 | $ | 1,743 | $ | 1,005 | $ | 738 | Equity in income of unconsolidated entities | $ | 447 | $ | 246 | $ | 201 | |||||||||||||||||||||||||||||||||||||||||||
Gain on disposition of real estate and real estate assets held for sale, net | $ | 8,795 | $ | 221,755 | $ | (212,960 | ) | $ | 34,044 | $ | 232,586 | $ | (198,542 | ) | Gain on disposition of real estate and real estate assets held for sale, net | $ | 76,074 | $ | 25,249 | $ | 50,825 | |||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | (1,053 | ) | $ | (1,164 | ) | $ | (111 | ) | $ | (2,101 | ) | $ | (2,375 | ) | $ | (274 | ) | Provision for income taxes | $ | (928) | $ | (1,048) | $ | (120) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 54,239 | $ | 292,284 | $ | 141,102 | $ | 363,255 | Net income | $ | 120,723 | $ | 86,863 | |||||||||||||||||||||||||||||||||||
Dividends on Series F Preferred Stock | (12,948 | ) | (17,973 | ) | (25,896 | ) | (35,946 | ) | Dividends on Series F Preferred Stock | (6,525) | (12,948) | |||||||||||||||||||||||||||||||||||||
Gain on disposition of real estate assets and interests in unconsolidated joint ventures, net | (8,795 | ) | (221,762 | ) | (34,044 | ) | (232,593 | ) | Gain on disposition of real estate assets and interests in unconsolidated joint ventures, net | (76,074) | (25,249) | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 110,207 | 117,616 | 233,852 | 253,477 | Depreciation and amortization of real estate assets | 107,700 | 123,645 | |||||||||||||||||||||||||||||||||||||||||
Impairment of real estate | 12,094 | 8,308 | 20,474 | 20,296 | Impairment of real estate | 31,849 | 8,380 | |||||||||||||||||||||||||||||||||||||||||
Proportionate share of adjustments for unconsolidated entities | 1,146 | 565 | 2,277 | 853 | Proportionate share of adjustments for unconsolidated entities | 1,315 | 1,131 | |||||||||||||||||||||||||||||||||||||||||
FFO attributable to common stockholders and limited partners | 155,943 | 179,038 | 337,765 | 369,342 | FFO attributable to common stockholders and limited partners | 178,988 | 181,822 | |||||||||||||||||||||||||||||||||||||||||
Acquisition-related expenses | 1,169 | 985 | 2,692 | 1,970 | Acquisition-related expenses | 1,354 | 1,523 | |||||||||||||||||||||||||||||||||||||||||
Litigation and non-routine costs, net | (118 | ) | (3,769 | ) | (8,682 | ) | (25,261 | ) | Litigation and non-routine costs, net | 68 | (8,564) | |||||||||||||||||||||||||||||||||||||
Loss (gain) on investments | 142 | (5 | ) | 683 | 465 | |||||||||||||||||||||||||||||||||||||||||||
Loss on derivative instruments, net | — | 24 | — | 58 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of premiums and discounts on debt and investments, net | (362 | ) | (1,392 | ) | (1,051 | ) | (2,656 | ) | ||||||||||||||||||||||||||||||||||||||||
(Gain) loss on investments | (Gain) loss on investments | (695) | 541 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of premiums (discounts) on debt and investments, net | Amortization of premiums (discounts) on debt and investments, net | 87 | (689) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities | 788 | 611 | 1,536 | 1,342 | Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities | 1,547 | 748 | |||||||||||||||||||||||||||||||||||||||||
Net direct financing lease adjustments | 372 | 410 | 737 | 819 | Net direct financing lease adjustments | 366 | 365 | |||||||||||||||||||||||||||||||||||||||||
Amortization and write-off of deferred financing costs | 2,898 | 3,346 | 5,739 | 6,840 | Amortization and write-off of deferred financing costs | 2,555 | 2,841 | |||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment and forgiveness of debt, net | 200 | 1,472 | 1,480 | 1,472 | Loss on extinguishment and forgiveness of debt, net | 2,132 | 1,280 | |||||||||||||||||||||||||||||||||||||||||
Straight-line rent | (3,404 | ) | (8,043 | ) | (5,458 | ) | (15,455 | ) | Straight-line rent | (4,219) | (2,054) | |||||||||||||||||||||||||||||||||||||
Equity-based compensation | 3,857 | 3,706 | 6,459 | 6,393 | Equity-based compensation | 2,669 | 2,602 | |||||||||||||||||||||||||||||||||||||||||
Restructuring expenses | — | 290 | — | 9,366 | ||||||||||||||||||||||||||||||||||||||||||||
Other adjustments, net | 441 | 617 | 669 | 1,186 | Other adjustments, net | (1,661) | 228 | |||||||||||||||||||||||||||||||||||||||||
Proportionate share of adjustments for unconsolidated entities | (843 | ) | (196 | ) | (512 | ) | (384 | ) | Proportionate share of adjustments for unconsolidated entities | (144) | 331 | |||||||||||||||||||||||||||||||||||||
Adjustments for Excluded Properties | — | 5 | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||
AFFO attributable to common stockholders and limited partners (1) | $ | 161,083 | $ | 177,099 | $ | 342,057 | $ | 355,502 | ||||||||||||||||||||||||||||||||||||||||
AFFO attributable to common stockholders and limited partners | AFFO attributable to common stockholders and limited partners | $ | 183,047 | $ | 180,974 | |||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares of Common Stock outstanding - basic | 1,078,366,566 | 973,723,139 | 1,078,152,183 | 971,106,256 | Weighted-average shares of Common Stock outstanding - basic | 229,159,472 | 215,587,560 | |||||||||||||||||||||||||||||||||||||||||
Effect of weighted-average Limited Partner OP Units and dilutive securities (2) | 1,186,500 | 26,054,596 | 1,370,957 | 25,636,664 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares of Common Stock outstanding - diluted (3) | 1,079,553,066 | 999,777,735 | 1,079,523,140 | 996,742,920 | ||||||||||||||||||||||||||||||||||||||||||||
Effect of weighted-average Limited Partner OP Units and dilutive securities (1) | Effect of weighted-average Limited Partner OP Units and dilutive securities (1) | 270,395 | 362,688 | |||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares of Common Stock outstanding - diluted (2) | Weighted-average shares of Common Stock outstanding - diluted (2) | 229,429,867 | 215,950,248 | |||||||||||||||||||||||||||||||||||||||||||||
AFFO attributable to common stockholders and limited partners per diluted share | $ | 0.15 | $ | 0.18 | $ | 0.32 | $ | 0.36 | AFFO attributable to common stockholders and limited partners per diluted share | $ | 0.80 | $ | 0.84 |
(1) | (2)Weighted-average shares for all periods presented exclude the effect of the convertible debt, which was fully repaid in cash as of December 31, 2020 and the underlying Restricted Stock Units that would not have met the vesting criteria based on certain performance targets as of the end of the respective reporting period. 44 |
Unsecured Credit Facility Key Covenants | Required | |||||||||||||
Ratio of total indebtedness to total asset value | ≤ 60% | |||||||||||||
Ratio of adjusted EBITDA to fixed charges | ≥ 1.5x | |||||||||||||
Ratio of secured indebtedness to total asset value | ≤ 45% | |||||||||||||
Ratio of unsecured indebtedness to unencumbered asset value | ≤ 60% | |||||||||||||
Ratio of unencumbered adjusted NOI to unsecured interest expense | ≥ 1.75x |
Corporate Bond Key Covenants | Required | |||||||||||||
Limitation on incurrence of total debt | ≤ 65% | |||||||||||||
Limitation on incurrence of secured debt | ≤ 40% | |||||||||||||
Debt service coverage ratio | ≥ 1.5x | |||||||||||||
Maintenance of total unencumbered assets | ≥ 150% |
Payments due by period | ||||||||||||||||||||||||||||||||
Total | Less than 1 year | 1-3 years | 4-5 years | More than 5 years | ||||||||||||||||||||||||||||
Principal payments - mortgage notes | $ | 1,040,389 | $ | 48,985 | $ | 984,439 | $ | 2,216 | $ | 4,749 | ||||||||||||||||||||||
Interest payments - mortgage notes (1) | 114,468 | 37,219 | 76,122 | 640 | 487 | |||||||||||||||||||||||||||
Principal payments - corporate bonds | 4,650,000 | — | 500,000 | 1,150,000 | 3,000,000 | |||||||||||||||||||||||||||
Interest payments - corporate bonds | 1,097,662 | 128,503 | 493,250 | 249,936 | 225,973 | |||||||||||||||||||||||||||
Operating and ground lease commitments | 302,807 | 16,140 | 61,590 | 37,888 | 187,189 | |||||||||||||||||||||||||||
Other commitments (2) | 10,426 | 10,426 | — | — | — | |||||||||||||||||||||||||||
Total | $ | 7,215,752 | $ | 241,273 | $ | 2,115,401 | $ | 1,440,680 | $ | 3,418,398 |
Payments due by period | ||||||||||||||||||||
Total | Less than 1 year | 1-3 years | 4-5 years | More than 5 years | ||||||||||||||||
Principal payments - mortgage notes | $ | 1,396,432 | $ | 78,261 | $ | 565,966 | $ | 745,238 | $ | 6,967 | ||||||||||
Interest payments - mortgage notes (1) | 170,026 | 35,200 | 100,545 | 33,154 | 1,127 | |||||||||||||||
Principal payments - Credit Facility | 900,000 | — | — | 900,000 | — | |||||||||||||||
Interest payments - Credit Facility (1) (2) | 88,217 | 16,504 | 65,479 | 6,234 | — | |||||||||||||||
Principal payments - corporate bonds | 3,450,000 | — | — | 500,000 | 2,950,000 | |||||||||||||||
Interest payments - corporate bonds | 890,167 | 70,194 | 280,776 | 260,012 | 279,185 | |||||||||||||||
Principal payments - convertible debt | 271,633 | 271,633 | — | — | — | |||||||||||||||
Interest payments - convertible debt | 4,640 | 4,640 | — | — | — | |||||||||||||||
Operating and ground lease commitments | 324,533 | 10,751 | 44,028 | 42,638 | 227,116 | |||||||||||||||
Build-to-suit commitments | 21,421 | 21,421 | — | — | — | |||||||||||||||
Total | $ | 7,517,069 | $ | 508,604 | $ | 1,056,794 | $ | 2,487,276 | $ | 3,464,395 |
Period | Total Number of Shares/ Units Redeemed (1) | Redemption Price Per Share/Unit | ||||||||||||
January 1, 2021 - January 31, 2021 | 4,000,000 | $ | 25.00 | |||||||||||
February 1, 2021 - February 28, 2021 | — | — | ||||||||||||
March 1, 2021 - March 31, 2021 | — | — | ||||||||||||
Total | 4,000,000 | $ | 25.00 |
Exhibit No. | Description | |||||||||
3.1 | ||||||||||
3.2 | ||||||||||
3.3 | ||||||||||
3.4 | ||||||||||
3.5 | ||||||||||
3.6 | ||||||||||
3.7 | ||||||||||
3.8 | ||||||||||
3.9 | ||||||||||
3.10 | ||||||||||
3.11 | ||||||||||
3.12 | ||||||||||
3.13 | ||||||||||
3.15 | ||||||||||
4.1 | ||||||||||
4.2 | ||||||||||
4.3 | ||||||||||
4.4 |
Exhibit No. | Description | |||||||
4.5 | ||||||||
4.7 | ||||||||
4.8 | ||||||||
4.21 | ||||||||
Exhibit No. | Description | |||||||
31.1* | ||||||||
31.2* | ||||||||
31.3* | ||||||||
31.4* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
32.3** | ||||||||
32.4** | ||||||||
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 (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*). |
* Filed herewith |
VEREIT, INC. | ||||||||
By: | /s/ Michael J. Bartolotta | |||||||
Michael J. Bartolotta | ||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
VEREIT OPERATING PARTNERSHIP, L.P. | ||||||||
By: VEREIT, Inc., its sole general partner | ||||||||
By: | /s/ Michael J. Bartolotta | |||||||
Michael J. Bartolotta | ||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |