QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | (Brixmor Property Group Inc.) | 45-2433192 | |
Delaware | (Brixmor Operating Partnership LP) | 80-0831163 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.01 per share | BRX | New York Stock Exchange |
Brixmor Property Group Inc. | Brixmor Operating Partnership LP | ||||||||
Large accelerated filer | Non-accelerated filer | ☐ | Large accelerated filer | ☐ | Non-accelerated filer | ||||
Smaller reporting company | ☐ | Accelerated filer | ☐ | Smaller reporting company | ☐ | Accelerated filer | ☐ | ||
Emerging growth company | ☐ | Emerging growth company | ☐ |
Item No. | Page | Page | Part I - FINANCIAL INFORMATION | |
1. | Financial Statements | Financial Statements | ||
Brixmor Property Group Inc. (unaudited) | Brixmor Property Group Inc. (unaudited) | |||
Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 | Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 | |||
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2019 and 2018 | Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2019 and 2018 | |||
Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2019 and 2018 | Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2019 and 2018 | |||
Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2019 and 2018 | Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2019 and 2018 | |||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018 | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018 | |||
Brixmor Operating Partnership LP (unaudited) | Brixmor Operating Partnership LP (unaudited) | |||
Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 | Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 | |||
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2019 and 2018 | Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2019 and 2018 | |||
Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2019 and 2018 | Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2019 and 2018 | |||
Condensed Consolidated Statements of Changes in Capital for the Three Months Ended March 31, 2019 and 2018 | Condensed Consolidated Statements of Changes in Capital for the Three and Nine Months Ended September 30, 2019 and 2018 | |||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018 | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018 | |||
Brixmor Property Group Inc. and Brixmor Operating Partnership LP (unaudited) | Brixmor Property Group Inc. and Brixmor Operating Partnership LP (unaudited) | |||
Notes to Condensed Consolidated Financial Statements | Notes to Condensed Consolidated Financial Statements | |||
2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
3. | Quantitative and Qualitative Disclosures about Market Risk | Quantitative and Qualitative Disclosures about Market Risk | ||
4. | Controls and Procedures | Controls and Procedures | Part II - OTHER INFORMATION | |
1. | Legal Proceedings | Legal Proceedings | ||
1A. | Risk Factors | Risk Factors | ||
2. | Unregistered Sales of Equity Securities and Use of Proceeds | Unregistered Sales of Equity Securities and Use of Proceeds | ||
3. | Defaults Upon Senior Securities | Defaults Upon Senior Securities | ||
4. | Mine Safety Disclosures | Mine Safety Disclosures | ||
5. | Other Information | Other Information | ||
6. | Exhibits | Exhibits |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATED BALANCE SHEETS | (Unaudited, in thousands, except share information) | ||||||||||||
March 31, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||
Assets | ||||||||||||||
Real estate | ||||||||||||||
Land | $ | 1,794,709 | $ | 1,804,504 | $ | 1,779,161 | $ | 1,804,504 | ||||||
Buildings and improvements | 8,279,076 | 8,294,273 | 8,342,194 | 8,294,273 | ||||||||||
10,073,785 | 10,098,777 | 10,121,355 | 10,098,777 | |||||||||||
Accumulated depreciation and amortization | (2,386,092 | ) | (2,349,127 | ) | (2,452,678 | ) | (2,349,127 | ) | ||||||
Real estate, net | 7,687,693 | 7,749,650 | 7,668,677 | 7,749,650 | ||||||||||
Cash and cash equivalents | 349 | 41,745 | 29,072 | 41,745 | ||||||||||
Restricted cash | 3,057 | 9,020 | 2,409 | 9,020 | ||||||||||
Marketable securities | 29,634 | 30,243 | 19,109 | 30,243 | ||||||||||
Receivables, net | 236,391 | 228,297 | 223,323 | 228,297 | ||||||||||
Deferred charges and prepaid expenses, net | 143,535 | 145,662 | 151,125 | 145,662 | ||||||||||
Real estate assets held for sale | 9,093 | 2,901 | 6,186 | 2,901 | ||||||||||
Other assets | 74,178 | 34,903 | 60,260 | 34,903 | ||||||||||
Total assets | $ | 8,183,930 | $ | 8,242,421 | $ | 8,160,161 | $ | 8,242,421 | ||||||
Liabilities | ||||||||||||||
Debt obligations, net | $ | 4,873,065 | $ | 4,885,863 | $ | 4,852,510 | $ | 4,885,863 | ||||||
Accounts payable, accrued expenses and other liabilities | 518,094 | 520,459 | 548,288 | 520,459 | ||||||||||
Total liabilities | 5,391,159 | 5,406,322 | 5,400,798 | 5,406,322 | ||||||||||
Commitments and contingencies (Note 15) | — | — | — | — | ||||||||||
Equity | ||||||||||||||
Common stock, $0.01 par value; authorized 3,000,000,000 shares; 305,289,535 and 305,130,472 shares issued and 297,987,158 and 298,488,516 shares outstanding | 2,980 | 2,985 | ||||||||||||
Common stock, $0.01 par value; authorized 3,000,000,000 shares; 305,323,128 and 305,130,472 shares issued and 297,846,251 and 298,488,516 shares outstanding | 2,978 | 2,985 | ||||||||||||
Additional paid-in capital | 3,222,844 | 3,233,329 | 3,226,531 | 3,233,329 | ||||||||||
Accumulated other comprehensive income | 6,048 | 15,973 | ||||||||||||
Accumulated other comprehensive income (loss) | (13,207 | ) | 15,973 | |||||||||||
Distributions in excess of net income | (439,101 | ) | (416,188 | ) | (456,939 | ) | (416,188 | ) | ||||||
Total equity | 2,792,771 | 2,836,099 | 2,759,363 | 2,836,099 | ||||||||||
Total liabilities and equity | $ | 8,183,930 | $ | 8,242,421 | $ | 8,160,161 | $ | 8,242,421 | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | (Unaudited, in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Revenues | ||||||||||||||||||||||
Rental income | $ | 289,955 | $ | 316,797 | $ | 292,732 | $ | 306,172 | $ | 873,424 | $ | 935,689 | ||||||||||
Other revenues | 1,184 | 378 | 233 | 308 | 1,685 | 996 | ||||||||||||||||
Total revenues | 291,139 | 317,175 | 292,965 | 306,480 | 875,109 | 936,685 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Operating costs | 31,258 | 35,490 | 29,573 | 31,969 | 90,138 | 101,340 | ||||||||||||||||
Real estate taxes | 43,326 | 45,725 | 43,688 | 44,711 | 130,203 | 135,383 | ||||||||||||||||
Depreciation and amortization | 85,395 | 90,383 | 82,837 | 85,183 | 249,825 | 266,900 | ||||||||||||||||
Provision for doubtful accounts | — | 2,415 | — | 3,094 | — | 6,458 | ||||||||||||||||
Impairment of real estate assets | 3,112 | 15,902 | 8,170 | 16,372 | 17,468 | 44,201 | ||||||||||||||||
General and administrative | 25,443 | 22,426 | 24,550 | 21,209 | 75,168 | 64,955 | ||||||||||||||||
Total operating expenses | 188,534 | 212,341 | 188,818 | 202,538 | 562,802 | 619,237 | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||||
Dividends and interest | 147 | 96 | 128 | 156 | 575 | 356 | ||||||||||||||||
Interest expense | (46,666 | ) | (55,171 | ) | (47,698 | ) | (55,364 | ) | (142,839 | ) | (165,735 | ) | ||||||||||
Gain on sale of real estate assets | 7,602 | 11,448 | 25,621 | 119,333 | 46,266 | 159,043 | ||||||||||||||||
Gain (loss) on extinguishment of debt, net | 30 | (132 | ) | |||||||||||||||||||
Loss on extinguishment of debt, net | (943 | ) | (19,759 | ) | (1,620 | ) | (20,182 | ) | ||||||||||||||
Other | (818 | ) | (53 | ) | (401 | ) | (962 | ) | (1,975 | ) | (2,200 | ) | ||||||||||
Total other expense | (39,705 | ) | (43,812 | ) | ||||||||||||||||||
Total other income (expense) | (23,293 | ) | 43,404 | (99,593 | ) | (28,718 | ) | |||||||||||||||
Net income | $ | 62,900 | $ | 61,022 | $ | 80,854 | $ | 147,346 | $ | 212,714 | $ | 288,730 | ||||||||||
Per common share: | ||||||||||||||||||||||
Net income: | ||||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.20 | $ | 0.27 | $ | 0.49 | $ | 0.71 | $ | 0.95 | ||||||||||
Diluted | $ | 0.21 | $ | 0.20 | $ | 0.27 | $ | 0.49 | $ | 0.71 | $ | 0.95 | ||||||||||
Weighted average shares: | ||||||||||||||||||||||
Basic | 298,599 | 304,158 | 298,031 | 302,170 | 298,257 | 303,031 | ||||||||||||||||
Diluted | 299,029 | 304,278 | 298,879 | 302,382 | 298,927 | 303,213 | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | (Unaudited, in thousands) | ||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net income | $ | 62,900 | $ | 61,022 | $ | 80,854 | $ | 147,346 | $ | 212,714 | $ | 288,730 | ||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||
Change in unrealized gain (loss) on interest rate swaps, net (Note 6) | (10,057 | ) | 4,773 | (5,332 | ) | (1,242 | ) | (29,373 | ) | 2,950 | ||||||||||||
Change in unrealized gain (loss) on marketable securities | 132 | (86 | ) | 12 | — | 193 | (40 | ) | ||||||||||||||
Total other comprehensive income (loss) | (9,925 | ) | 4,687 | (5,320 | ) | (1,242 | ) | (29,180 | ) | 2,910 | ||||||||||||
Comprehensive income | $ | 52,975 | $ | 65,709 | $ | 75,534 | $ | 146,104 | $ | 183,534 | $ | 291,640 | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||||||||||||||||||||||
(Unaudited, in thousands, except per share data) | (Unaudited, in thousands, except per share data) | (Unaudited, in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||
Number | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Distributions in Excess of Net Income | Total | |||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2018 | 304,620 | $ | 3,046 | $ | 3,330,466 | $ | 24,211 | $ | (449,375 | ) | $ | 2,908,348 | ||||||||||||||||||||||||||||||||
Common stock dividends ($0.275 per common share) | — | — | — | — | (83,479 | ) | (83,479 | ) | ||||||||||||||||||||||||||||||||||||
Equity based compensation expense | — | — | 2,484 | — | — | 2,484 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 4,687 | — | 4,687 | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock and OP Units | 128 | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (1,922 | ) | (19 | ) | (29,746 | ) | — | — | (29,765 | ) | ||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | — | — | (1,722 | ) | — | — | (1,722 | ) | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 61,022 | 61,022 | ||||||||||||||||||||||||||||||||||||||
Ending balance, March 31, 2018 | 302,826 | $ | 3,028 | $ | 3,301,482 | $ | 28,898 | $ | (471,832 | ) | $ | 2,861,576 | ||||||||||||||||||||||||||||||||
Number | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Net Income | Total | |||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2019 | 298,489 | $ | 2,985 | $ | 3,233,329 | $ | 15,973 | $ | (416,188 | ) | $ | 2,836,099 | 298,489 | $ | 2,985 | $ | 3,233,329 | $ | 15,973 | $ | (416,188 | ) | $ | 2,836,099 | ||||||||||||||||||||
ASC 842 cumulative adjustment | — | — | — | — | (1,974 | ) | (1,974 | ) | — | — | — | — | (1,974 | ) | (1,974 | ) | ||||||||||||||||||||||||||||
Common stock dividends ($0.28 per common share) | — | — | — | — | (83,839 | ) | (83,839 | ) | — | — | — | — | (83,839 | ) | (83,839 | ) | ||||||||||||||||||||||||||||
Equity based compensation expense | — | — | 2,641 | — | — | 2,641 | — | — | 2,641 | — | — | 2,641 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (9,925 | ) | — | (9,925 | ) | — | — | — | (9,925 | ) | — | (9,925 | ) | ||||||||||||||||||||||||||||
Issuance of common stock and OP Units | 158 | 2 | — | — | — | 2 | 158 | 2 | — | — | — | 2 | ||||||||||||||||||||||||||||||||
Repurchases of common stock | (660 | ) | (7 | ) | (11,579 | ) | — | — | (11,586 | ) | (660 | ) | (7 | ) | (11,579 | ) | — | — | (11,586 | ) | ||||||||||||||||||||||||
Share-based awards retained for taxes | — | — | (1,547 | ) | — | — | (1,547 | ) | — | — | (1,547 | ) | — | — | (1,547 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | 62,900 | 62,900 | — | — | — | — | 62,900 | 62,900 | ||||||||||||||||||||||||||||||||
Ending balance, March 31, 2019 | 297,987 | $ | 2,980 | $ | 3,222,844 | $ | 6,048 | $ | (439,101 | ) | $ | 2,792,771 | 297,987 | 2,980 | 3,222,844 | 6,048 | (439,101 | ) | 2,792,771 | |||||||||||||||||||||||||
Common stock dividends ($0.28 per common share) | — | — | — | — | (83,827 | ) | (83,827 | ) | ||||||||||||||||||||||||||||||||||||
Equity based compensation expense | — | — | 3,353 | — | — | 3,353 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (13,935 | ) | — | (13,935 | ) | ||||||||||||||||||||||||||||||||||||
Issuance of common stock and OP Units | 34 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (175 | ) | (2 | ) | (2,975 | ) | — | — | (2,977 | ) | ||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | — | — | (164 | ) | — | — | (164 | ) | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 68,960 | 68,960 | ||||||||||||||||||||||||||||||||||||||
Ending balance, June 30, 2019 | 297,846 | 2,978 | 3,223,058 | (7,887 | ) | (453,968 | ) | 2,764,181 | ||||||||||||||||||||||||||||||||||||
Common stock dividends ($0.28 per common share) | — | — | — | — | (83,825 | ) | (83,825 | ) | ||||||||||||||||||||||||||||||||||||
Equity based compensation expense | — | — | 3,473 | — | — | 3,473 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (5,320 | ) | — | (5,320 | ) | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 80,854 | 80,854 | ||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2019 | 297,846 | $ | 2,978 | $ | 3,226,531 | $ | (13,207 | ) | $ | (456,939 | ) | $ | 2,759,363 | |||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating activities: | |||||||
Net income | $ | 62,900 | $ | 61,022 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 85,395 | 90,383 | |||||
Debt premium and discount amortization | 468 | (952 | ) | ||||
Deferred financing cost amortization | 1,787 | 1,682 | |||||
Accretion of above- and below-market leases, net | (4,898 | ) | (6,824 | ) | |||
Provisions for impairment | 3,112 | 15,902 | |||||
Gain on disposition of operating properties | (7,602 | ) | (11,448 | ) | |||
Equity based compensation | 2,641 | 2,484 | |||||
Other | 827 | 824 | |||||
(Gain) loss on extinguishment of debt, net | (30 | ) | 132 | ||||
Changes in operating assets and liabilities: | |||||||
Receivables | (816 | ) | 12,171 | ||||
Deferred charges and prepaid expenses | (6,829 | ) | (5,309 | ) | |||
Other assets | 82 | 40 | |||||
Accounts payable, accrued expenses and other liabilities | (40,199 | ) | (35,657 | ) | |||
Net cash provided by operating activities | 96,838 | 124,450 | |||||
Investing activities: | |||||||
Improvements to and investments in real estate assets | (77,725 | ) | (76,803 | ) | |||
Proceeds from sales of real estate assets | 45,160 | 104,198 | |||||
Purchase of marketable securities | (5,246 | ) | (3,655 | ) | |||
Proceeds from sale of marketable securities | 5,977 | 4,496 | |||||
Net cash provided by (used in) investing activities | (31,834 | ) | 28,236 | ||||
Financing activities: | |||||||
Repayment of secured debt obligations | — | (4,858 | ) | ||||
Repayment of borrowings under unsecured revolving credit facility | (65,000 | ) | — | ||||
Proceeds from borrowings under unsecured revolving credit facility | 50,000 | — | |||||
Repayment of borrowings under unsecured term loans | — | (50,000 | ) | ||||
Deferred financing and debt extinguishment costs | (133 | ) | (184 | ) | |||
Distributions to common stockholders | (84,097 | ) | (84,165 | ) | |||
Repurchases of common shares | (11,586 | ) | (29,765 | ) | |||
Repurchases of common shares in conjunction with equity award plans | (1,547 | ) | (1,722 | ) | |||
Net cash used in financing activities | (112,363 | ) | (170,694 | ) | |||
Net change in cash, cash equivalents and restricted cash | (47,359 | ) | (18,008 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 50,765 | 110,777 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 3,406 | $ | 92,769 | |||
Reconciliation to consolidated balance sheets: | |||||||
Cash and cash equivalents | $ | 349 | $ | 27,332 | |||
Restricted cash | 3,057 | 65,437 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 3,406 | $ | 92,769 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of amount capitalized of $626 and $654 | $ | 51,168 | $ | 63,646 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | ||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Number | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Distributions in Excess of Net Income | Total | |||||||||||||||||
Beginning balance, January 1, 2018 | 304,620 | $ | 3,046 | $ | 3,330,466 | $ | 24,211 | $ | (449,375 | ) | $ | 2,908,348 | ||||||||||
Common stock dividends ($0.275 per common share) | — | — | — | — | (83,479 | ) | (83,479 | ) | ||||||||||||||
Equity based compensation expense | — | — | 2,484 | — | — | 2,484 | ||||||||||||||||
Other comprehensive income | — | — | — | 4,687 | — | 4,687 | ||||||||||||||||
Issuance of common stock and OP Units | 128 | 1 | — | — | — | 1 | ||||||||||||||||
Repurchases of common stock | (1,922 | ) | (19 | ) | (29,746 | ) | — | — | (29,765 | ) | ||||||||||||
Share-based awards retained for taxes | — | — | (1,722 | ) | — | — | (1,722 | ) | ||||||||||||||
Net income | — | — | — | — | 61,022 | 61,022 | ||||||||||||||||
Ending balance, March 31, 2018 | 302,826 | 3,028 | 3,301,482 | 28,898 | (471,832 | ) | 2,861,576 | |||||||||||||||
Common stock dividends ($0.275 per common share) | — | — | — | — | (83,584 | ) | (83,584 | ) | ||||||||||||||
Equity based compensation expense | — | — | 2,784 | — | — | 2,784 | ||||||||||||||||
Other comprehensive loss | — | — | — | (535 | ) | — | (535 | ) | ||||||||||||||
Issuance of common stock and OP Units | 42 | 1 | — | — | — | 1 | ||||||||||||||||
Repurchases of common stock | (241 | ) | (3 | ) | (3,497 | ) | — | — | (3,500 | ) | ||||||||||||
Share-based awards retained for taxes | — | — | (133 | ) | — | — | (133 | ) | ||||||||||||||
Net income | — | — | — | — | 80,362 | 80,362 | ||||||||||||||||
Ending balance, June 30, 2018 | 302,627 | 3,026 | 3,300,636 | 28,363 | (475,054 | ) | 2,856,971 | |||||||||||||||
Common stock dividends ($0.275 per common share) | — | — | — | — | (82,872 | ) | (82,872 | ) | ||||||||||||||
Equity based compensation expense | — | — | 2,738 | — | — | 2,738 | ||||||||||||||||
Other comprehensive loss | — | — | — | (1,242 | ) | — | (1,242 | ) | ||||||||||||||
Issuance of common stock and OP Units | 2 | — | — | — | — | — | ||||||||||||||||
Repurchases of common stock | (2,737 | ) | (27 | ) | (48,643 | ) | — | — | (48,670 | ) | ||||||||||||
Share-based awards retained for taxes | — | — | (9 | ) | — | — | (9 | ) | ||||||||||||||
Net income | — | — | — | — | 147,346 | 147,346 | ||||||||||||||||
Ending balance, September 30, 2018 | 299,892 | $ | 2,999 | $ | 3,254,722 | $ | 27,121 | $ | (410,580 | ) | $ | 2,874,262 | ||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited, in thousands, except unit information) | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Real estate | |||||||
Land | $ | 1,794,709 | $ | 1,804,504 | |||
Buildings and improvements | 8,279,076 | 8,294,273 | |||||
10,073,785 | 10,098,777 | ||||||
Accumulated depreciation and amortization | (2,386,092 | ) | (2,349,127 | ) | |||
Real estate, net | 7,687,693 | 7,749,650 | |||||
Cash and cash equivalents | 99 | 41,619 | |||||
Restricted cash | 3,057 | 9,020 | |||||
Marketable securities | 29,413 | 30,023 | |||||
Receivables, net | 236,391 | 228,297 | |||||
Deferred charges and prepaid expenses, net | 143,535 | 145,662 | |||||
Real estate assets held for sale | 9,093 | 2,901 | |||||
Other assets | 74,178 | 34,903 | |||||
Total assets | $ | 8,183,459 | $ | 8,242,075 | |||
Liabilities | |||||||
Debt obligations, net | $ | 4,873,065 | $ | 4,885,863 | |||
Accounts payable, accrued expenses and other liabilities | 518,094 | 520,459 | |||||
Total liabilities | 5,391,159 | 5,406,322 | |||||
Commitments and contingencies (Note 15) | — | — | |||||
Capital | |||||||
Partnership common units; 305,289,535 and 305,130,472 units issued and 297,987,158 and 298,488,516 units outstanding | 2,786,242 | 2,819,770 | |||||
Accumulated other comprehensive income | 6,058 | 15,983 | |||||
Total capital | 2,792,300 | 2,835,753 | |||||
Total liabilities and capital | $ | 8,183,459 | $ | 8,242,075 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Operating activities: | |||||||
Net income | $ | 212,714 | $ | 288,730 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 249,825 | 266,900 | |||||
Debt premium and discount amortization | 1,053 | (2,804 | ) | ||||
Deferred financing cost amortization | 5,299 | 4,909 | |||||
Accretion of above- and below-market leases, net | (14,125 | ) | (20,644 | ) | |||
Impairment of real estate assets | 17,468 | 44,201 | |||||
Gain on sale of real estate assets | (46,266 | ) | (159,043 | ) | |||
Equity based compensation, net | 8,847 | 8,006 | |||||
Other | 2,694 | 2,587 | |||||
Loss on extinguishment of debt, net | 1,620 | 20,182 | |||||
Changes in operating assets and liabilities: | |||||||
Receivables, net | (13,532 | ) | 1,416 | ||||
Deferred charges and prepaid expenses | (30,138 | ) | (35,840 | ) | |||
Other assets | (74 | ) | 3,637 | ||||
Accounts payable, accrued expenses and other liabilities | 4,548 | (22,055 | ) | ||||
Net cash provided by operating activities | 399,933 | 400,182 | |||||
Investing activities: | |||||||
Improvements to and investments in real estate assets | (282,211 | ) | (185,048 | ) | |||
Acquisitions of real estate assets | (79,634 | ) | (8,994 | ) | |||
Proceeds from sales of real estate assets | 239,838 | 676,959 | |||||
Purchase of marketable securities | (36,045 | ) | (27,923 | ) | |||
Proceeds from sale of marketable securities | 47,509 | 25,076 | |||||
Net cash provided by (used in) investing activities | (110,543 | ) | 480,070 | ||||
Financing activities: | |||||||
Repayment of secured debt obligations | — | (518,308 | ) | ||||
Repayment of borrowings under unsecured revolving credit facility | (541,000 | ) | (74,000 | ) | |||
Proceeds from borrowings under unsecured revolving credit facility | 235,000 | 215,000 | |||||
Proceeds from unsecured notes | 771,623 | 250,000 | |||||
Repayment of borrowings under unsecured term loans | (500,000 | ) | (435,000 | ) | |||
Deferred financing and debt extinguishment costs | (6,689 | ) | (29,017 | ) | |||
Distributions to common stockholders | (251,334 | ) | (250,886 | ) | |||
Repurchases of common shares | (14,563 | ) | (81,935 | ) | |||
Repurchases of common shares in conjunction with equity award plans | (1,711 | ) | (1,864 | ) | |||
Net cash used in financing activities | (308,674 | ) | (926,010 | ) | |||
Net change in cash, cash equivalents and restricted cash | (19,284 | ) | (45,758 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 50,765 | 110,777 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 31,481 | $ | 65,019 | |||
Reconciliation to consolidated balance sheets: | |||||||
Cash and cash equivalents | $ | 29,072 | $ | 19,607 | |||
Restricted cash | 2,409 | 45,412 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 31,481 | $ | 65,019 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of amount capitalized of $2,401 and $1,798 | $ | 134,507 | $ | 173,079 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited, in thousands, except per share data) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenues | |||||||
Rental income | $ | 289,955 | $ | 316,797 | |||
Other revenues | 1,184 | 378 | |||||
Total revenues | 291,139 | 317,175 | |||||
Operating expenses | |||||||
Operating costs | 31,258 | 35,490 | |||||
Real estate taxes | 43,326 | 45,725 | |||||
Depreciation and amortization | 85,395 | 90,383 | |||||
Provision for doubtful accounts | — | 2,415 | |||||
Impairment of real estate assets | 3,112 | 15,902 | |||||
General and administrative | 25,443 | 22,426 | |||||
Total operating expenses | 188,534 | 212,341 | |||||
Other income (expense) | |||||||
Dividends and interest | 147 | 96 | |||||
Interest expense | (46,666 | ) | (55,171 | ) | |||
Gain on sale of real estate assets | 7,602 | 11,448 | |||||
Gain (loss) on extinguishment of debt, net | 30 | (132 | ) | ||||
Other | (818 | ) | (53 | ) | |||
Total other expense | (39,705 | ) | (43,812 | ) | |||
Net income | $ | 62,900 | $ | 61,022 | |||
Per common unit: | |||||||
Net income: | |||||||
Basic | $ | 0.21 | $ | 0.20 | |||
Diluted | $ | 0.21 | $ | 0.20 | |||
Weighted average units: | |||||||
Basic | 298,599 | 304,158 | |||||
Diluted | 299,029 | 304,278 | |||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited, in thousands, except unit information) | |||||||
September 30, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Real estate | |||||||
Land | $ | 1,779,161 | $ | 1,804,504 | |||
Buildings and improvements | 8,342,194 | 8,294,273 | |||||
10,121,355 | 10,098,777 | ||||||
Accumulated depreciation and amortization | (2,452,678 | ) | (2,349,127 | ) | |||
Real estate, net | 7,668,677 | 7,749,650 | |||||
Cash and cash equivalents | 29,054 | 41,619 | |||||
Restricted cash | 2,409 | 9,020 | |||||
Marketable securities | 18,886 | 30,023 | |||||
Receivables, net | 223,323 | 228,297 | |||||
Deferred charges and prepaid expenses, net | 151,125 | 145,662 | |||||
Real estate assets held for sale | 6,186 | 2,901 | |||||
Other assets | 60,260 | 34,903 | |||||
Total assets | $ | 8,159,920 | $ | 8,242,075 | |||
Liabilities | |||||||
Debt obligations, net | $ | 4,852,510 | $ | 4,885,863 | |||
Accounts payable, accrued expenses and other liabilities | 548,288 | 520,459 | |||||
Total liabilities | 5,400,798 | 5,406,322 | |||||
Commitments and contingencies (Note 15) | — | — | |||||
Capital | |||||||
Partnership common units; 305,323,128 and 305,130,472 units issued and 297,846,251 and 298,488,516 units outstanding | 2,772,321 | 2,819,770 | |||||
Accumulated other comprehensive income (loss) | (13,199 | ) | 15,983 | ||||
Total capital | 2,759,122 | 2,835,753 | |||||
Total liabilities and capital | $ | 8,159,920 | $ | 8,242,075 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||
(Unaudited, in thousands) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net income | $ | 62,900 | $ | 61,022 | |||
Other comprehensive income (loss) | |||||||
Change in unrealized gain (loss) on interest rate swaps, net (Note 6) | (10,057 | ) | 4,773 | ||||
Change in unrealized gain (loss) on marketable securities | 132 | (85 | ) | ||||
Total other comprehensive income (loss) | (9,925 | ) | 4,688 | ||||
Comprehensive income | $ | 52,975 | $ | 65,710 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | |||||||||||||||
Rental income | $ | 292,732 | $ | 306,172 | $ | 873,424 | $ | 935,689 | |||||||
Other revenues | 233 | 308 | 1,685 | 996 | |||||||||||
Total revenues | 292,965 | 306,480 | 875,109 | 936,685 | |||||||||||
Operating expenses | |||||||||||||||
Operating costs | 29,573 | 31,969 | 90,138 | 101,340 | |||||||||||
Real estate taxes | 43,688 | 44,711 | 130,203 | 135,383 | |||||||||||
Depreciation and amortization | 82,837 | 85,183 | 249,825 | 266,900 | |||||||||||
Provision for doubtful accounts | — | 3,094 | — | 6,458 | |||||||||||
Impairment of real estate assets | 8,170 | 16,372 | 17,468 | 44,201 | |||||||||||
General and administrative | 24,550 | 21,209 | 75,168 | 64,955 | |||||||||||
Total operating expenses | 188,818 | 202,538 | 562,802 | 619,237 | |||||||||||
Other income (expense) | |||||||||||||||
Dividends and interest | 128 | 156 | 575 | 356 | |||||||||||
Interest expense | (47,698 | ) | (55,364 | ) | (142,839 | ) | (165,735 | ) | |||||||
Gain on sale of real estate assets | 25,621 | 119,333 | 46,266 | 159,043 | |||||||||||
Loss on extinguishment of debt, net | (943 | ) | (19,759 | ) | (1,620 | ) | (20,182 | ) | |||||||
Other | (401 | ) | (962 | ) | (1,975 | ) | (2,200 | ) | |||||||
Total other income (expense) | (23,293 | ) | 43,404 | (99,593 | ) | (28,718 | ) | ||||||||
Net income | $ | 80,854 | $ | 147,346 | $ | 212,714 | $ | 288,730 | |||||||
Per common unit: | |||||||||||||||
Net income: | |||||||||||||||
Basic | $ | 0.27 | $ | 0.49 | $ | 0.71 | $ | 0.95 | |||||||
Diluted | $ | 0.27 | $ | 0.49 | $ | 0.71 | $ | 0.95 | |||||||
Weighted average units: | |||||||||||||||
Basic | 298,031 | 302,170 | 298,257 | 303,031 | |||||||||||
Diluted | 298,879 | 302,382 | 298,927 | 303,213 | |||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL | |||||||||||
(Unaudited, in thousands) | |||||||||||
Partnership Common Units | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||
Beginning balance, January 1, 2018 | $ | 2,883,875 | $ | 24,224 | $ | 2,908,099 | |||||
Distributions to partners | (83,479 | ) | — | (83,479 | ) | ||||||
Equity based compensation expense | 2,484 | — | 2,484 | ||||||||
Other comprehensive income | — | 4,688 | 4,688 | ||||||||
Issuance of OP Units | 1 | — | 1 | ||||||||
Repurchases of OP Units | (29,765 | ) | — | (29,765 | ) | ||||||
Share-based awards retained for taxes | (1,722 | ) | — | (1,722 | ) | ||||||
Net income | 61,022 | — | 61,022 | ||||||||
Ending balance, March 31, 2018 | $ | 2,832,416 | $ | 28,912 | $ | 2,861,328 | |||||
Beginning balance, January 1, 2019 | $ | 2,819,770 | $ | 15,983 | $ | 2,835,753 | |||||
ASC 842 cumulative adjustment | (1,974 | ) | — | (1,974 | ) | ||||||
Distributions to partners | (83,964 | ) | — | (83,964 | ) | ||||||
Equity based compensation expense | 2,641 | — | 2,641 | ||||||||
Other comprehensive loss | — | (9,925 | ) | (9,925 | ) | ||||||
Issuance of OP Units | 2 | — | 2 | ||||||||
Repurchases of OP Units | (11,586 | ) | — | (11,586 | ) | ||||||
Share-based awards retained for taxes | (1,547 | ) | — | (1,547 | ) | ||||||
Net income | 62,900 | — | 62,900 | ||||||||
Ending balance, March 31, 2019 | $ | 2,786,242 | $ | 6,058 | $ | 2,792,300 | |||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 80,854 | $ | 147,346 | $ | 212,714 | $ | 288,730 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Change in unrealized gain (loss) on interest rate swaps, net (Note 6) | (5,332 | ) | (1,242 | ) | (29,373 | ) | 2,950 | ||||||||
Change in unrealized gain (loss) on marketable securities | 11 | (4 | ) | 191 | (42 | ) | |||||||||
Total other comprehensive income (loss) | (5,321 | ) | (1,246 | ) | (29,182 | ) | 2,908 | ||||||||
Comprehensive income | $ | 75,533 | $ | 146,100 | $ | 183,532 | $ | 291,638 | |||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating activities: | |||||||
Net income | $ | 62,900 | $ | 61,022 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 85,395 | 90,383 | |||||
Debt premium and discount amortization | 468 | (952 | ) | ||||
Deferred financing cost amortization | 1,787 | 1,682 | |||||
Accretion of above- and below-market leases, net | (4,898 | ) | (6,824 | ) | |||
Provisions for impairment | 3,112 | 15,902 | |||||
Gain on disposition of operating properties | (7,602 | ) | (11,448 | ) | |||
Equity based compensation | 2,641 | 2,484 | |||||
Other | 827 | 824 | |||||
(Gain) loss on extinguishment of debt, net | (30 | ) | 132 | ||||
Changes in operating assets and liabilities: | |||||||
Receivables | (816 | ) | 12,171 | ||||
Deferred charges and prepaid expenses | (6,829 | ) | (5,309 | ) | |||
Other assets | 82 | 40 | |||||
Accounts payable, accrued expenses and other liabilities | (40,199 | ) | (35,657 | ) | |||
Net cash provided by operating activities | 96,838 | 124,450 | |||||
Investing activities: | |||||||
Improvements to and investments in real estate assets | (77,725 | ) | (76,803 | ) | |||
Proceeds from sales of real estate assets | 45,160 | 104,198 | |||||
Purchase of marketable securities | (5,245 | ) | (3,654 | ) | |||
Proceeds from sale of marketable securities | 5,977 | 4,496 | |||||
Net cash provided by (used in) investing activities | (31,833 | ) | 28,237 | ||||
Financing activities: | |||||||
Repayment of secured debt obligations | — | (4,858 | ) | ||||
Repayment of borrowings under unsecured revolving credit facility | (65,000 | ) | — | ||||
Proceeds from borrowings under unsecured revolving credit facility | 50,000 | — | |||||
Repayment of borrowings under unsecured term loans | — | (50,000 | ) | ||||
Deferred financing and debt extinguishment costs | (133 | ) | (184 | ) | |||
Partner distributions | (97,355 | ) | (115,652 | ) | |||
Net cash used in financing activities | (112,488 | ) | (170,694 | ) | |||
Net change in cash, cash equivalents and restricted cash | (47,483 | ) | (18,007 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 50,639 | 110,747 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 3,156 | $ | 92,740 | |||
Reconciliation to consolidated balance sheets: | |||||||
Cash and cash equivalents | $ | 99 | $ | 27,303 | |||
Restricted cash | 3,057 | 65,437 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 3,156 | $ | 92,740 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of amount capitalized of $626 and $654 | $ | 51,168 | $ | 63,646 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL | |||||||||||
(Unaudited, in thousands) | |||||||||||
Partnership Common Units | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||
Beginning balance, January 1, 2019 | $ | 2,819,770 | $ | 15,983 | $ | 2,835,753 | |||||
ASC 842 cumulative adjustment | (1,974 | ) | — | (1,974 | ) | ||||||
Distributions to partners | (83,964 | ) | — | (83,964 | ) | ||||||
Equity based compensation expense | 2,641 | — | 2,641 | ||||||||
Other comprehensive loss | — | (9,925 | ) | (9,925 | ) | ||||||
Issuance of OP Units | 2 | — | 2 | ||||||||
Repurchases of OP Units | (11,586 | ) | — | (11,586 | ) | ||||||
Share-based awards retained for taxes | (1,547 | ) | — | (1,547 | ) | ||||||
Net income | 62,900 | — | 62,900 | ||||||||
Ending balance, March 31, 2019 | 2,786,242 | 6,058 | 2,792,300 | ||||||||
Distributions to partners | (83,597 | ) | — | (83,597 | ) | ||||||
Equity based compensation expense | 3,353 | — | 3,353 | ||||||||
Other comprehensive loss | — | (13,936 | ) | (13,936 | ) | ||||||
Issuance of OP Units | — | — | — | ||||||||
Repurchases of OP Units | (2,977 | ) | — | (2,977 | ) | ||||||
Share-based awards retained for taxes | (164 | ) | — | (164 | ) | ||||||
Net income | 68,960 | — | 68,960 | ||||||||
Ending balance, June 30, 2019 | 2,771,817 | (7,878 | ) | 2,763,939 | |||||||
Distributions to partners | (83,823 | ) | — | (83,823 | ) | ||||||
Equity based compensation expense | 3,473 | — | 3,473 | ||||||||
Other comprehensive loss | — | (5,321 | ) | (5,321 | ) | ||||||
Net income | 80,854 | — | 80,854 | ||||||||
Ending balance, September 30, 2019 | $ | 2,772,321 | $ | (13,199 | ) | $ | 2,759,122 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | |||||||||||
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL | |||||||||||
(Unaudited, in thousands) | |||||||||||
Partnership Common Units | Accumulated Other Comprehensive Income | Total | |||||||||
Beginning balance, January 1, 2018 | $ | 2,883,875 | $ | 24,224 | $ | 2,908,099 | |||||
Distributions to partners | (83,479 | ) | — | (83,479 | ) | ||||||
Equity based compensation expense | 2,484 | — | 2,484 | ||||||||
Other comprehensive income | — | 4,688 | 4,688 | ||||||||
Issuance of OP Units | 1 | — | 1 | ||||||||
Repurchases of OP Units | (29,765 | ) | — | (29,765 | ) | ||||||
Share-based awards retained for taxes | (1,722 | ) | — | (1,722 | ) | ||||||
Net income | 61,022 | — | 61,022 | ||||||||
Ending balance, March 31, 2018 | 2,832,416 | 28,912 | 2,861,328 | ||||||||
Distributions to partners | (83,584 | ) | — | (83,584 | ) | ||||||
Equity based compensation expense | 2,784 | — | 2,784 | ||||||||
Other comprehensive loss | — | (534 | ) | (534 | ) | ||||||
Issuance of OP Units | 1 | — | 1 | ||||||||
Repurchases of OP Units | (3,500 | ) | — | (3,500 | ) | ||||||
Share-based awards retained for taxes | (133 | ) | — | (133 | ) | ||||||
Net income | 80,362 | — | 80,362 | ||||||||
Ending balance, June 30, 2018 | 2,828,346 | 28,378 | 2,856,724 | ||||||||
Distributions to partners | (82,865 | ) | — | (82,865 | ) | ||||||
Equity based compensation expense | 2,738 | — | 2,738 | ||||||||
Other comprehensive loss | — | (1,246 | ) | (1,246 | ) | ||||||
Repurchases of OP Units | (48,670 | ) | — | (48,670 | ) | ||||||
Share-based awards retained for taxes | (9 | ) | — | (9 | ) | ||||||
Net income | 147,346 | — | 147,346 | ||||||||
Ending balance, September 30, 2018 | $ | 2,846,886 | $ | 27,132 | $ | 2,874,018 | |||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Operating activities: | |||||||
Net income | $ | 212,714 | $ | 288,730 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 249,825 | 266,900 | |||||
Debt premium and discount amortization | 1,053 | (2,804 | ) | ||||
Deferred financing cost amortization | 5,299 | 4,909 | |||||
Accretion of above- and below-market leases, net | (14,125 | ) | (20,644 | ) | |||
Impairment of real estate assets | 17,468 | 44,201 | |||||
Gain on sale of real estate assets | (46,266 | ) | (159,043 | ) | |||
Equity based compensation, net | 8,847 | 8,006 | |||||
Other | 2,694 | 2,587 | |||||
Loss on extinguishment of debt, net | 1,620 | 20,182 | |||||
Changes in operating assets and liabilities: | |||||||
Receivables, net | (13,532 | ) | 1,416 | ||||
Deferred charges and prepaid expenses | (30,138 | ) | (35,840 | ) | |||
Other assets | (74 | ) | 3,637 | ||||
Accounts payable, accrued expenses and other liabilities | 4,548 | (22,055 | ) | ||||
Net cash provided by operating activities | 399,933 | 400,182 | |||||
Investing activities: | |||||||
Improvements to and investments in real estate assets | (282,211 | ) | (185,048 | ) | |||
Acquisitions of real estate assets | (79,634 | ) | (8,994 | ) | |||
Proceeds from sales of real estate assets | 239,838 | 676,959 | |||||
Purchase of marketable securities | (36,042 | ) | (27,922 | ) | |||
Proceeds from sale of marketable securities | 47,509 | 25,076 | |||||
Net cash provided by (used in) investing activities | (110,540 | ) | 480,071 | ||||
Financing activities: | |||||||
Repayment of secured debt obligations | — | (518,308 | ) | ||||
Repayment of borrowings under unsecured revolving credit facility | (541,000 | ) | (74,000 | ) | |||
Proceeds from borrowings under unsecured revolving credit facility | 235,000 | 215,000 | |||||
Proceeds from unsecured notes | 771,623 | 250,000 | |||||
Repayment of borrowings under unsecured term loans | (500,000 | ) | (435,000 | ) | |||
Deferred financing and debt extinguishment costs | (6,689 | ) | (29,017 | ) | |||
Partner distributions and repurchases of OP Units | (267,503 | ) | (334,681 | ) | |||
Net cash used in financing activities | (308,569 | ) | (926,006 | ) | |||
Net change in cash, cash equivalents and restricted cash | (19,176 | ) | (45,753 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 50,639 | 110,747 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 31,463 | $ | 64,994 | |||
Reconciliation to consolidated balance sheets: | |||||||
Cash and cash equivalents | $ | 29,054 | $ | 19,582 | |||
Restricted cash | 2,409 | 45,412 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 31,463 | $ | 64,994 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of amount capitalized of $2,401 and $1,798 | $ | 134,507 | $ | 173,079 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
Description(1) | Location | Month Acquired | GLA | Aggregate Purchase Price(2) | |||||||
Land adjacent to Parmer Crossing | Austin, TX | Apr-19 | N/A | $ | 2,197 | ||||||
Centennial Shopping Center | Englewood, CO | Apr-19 | 113,682 | 18,011 | |||||||
Plymouth Square Shopping Center(3) | Conshohocken, PA | May-19 | 235,728 | 56,909 | |||||||
Leases at Baytown Shopping Center | Baytown, TX | Jun-19 | N/A | 2,517 | |||||||
349,410 | $ | 79,634 |
(1) | No debt was assumed related to any of the listed acquisitions. |
(2) | Aggregate purchase price includes $1.2 million of transaction costs. |
(3) | GLA excludes square footage related to the anticipated relocation of the Company's regional office. Total acquired GLA is 288,718 square feet. |
Description(1) | Location | Month Acquired | GLA | Aggregate Purchase Price(2) | |||||||
Land adjacent to Arborland Center | Ann Arbor, MI | Jun-18 | N/A | $ | 5,554 | ||||||
Outparcel adjacent to Lehigh Shopping Center | Bethlehem, PA | Jun-18 | 12,739 | 1,899 | |||||||
Outparcel building adjacent to Beneva Village Shoppes | Sarasota, FL | Jul-18 | 3,710 | 1,541 | |||||||
16,449 | $ | 8,994 |
(1) | No debt was assumed related to any of the listed acquisitions. |
(2) | Aggregate purchase price includes $0.2 million of transaction costs. |
Nine Months Ended September 30, | |||||||||
Assets | 2019 | 2018 | |||||||
Land | $ | 25,953 | $ | 6,078 | |||||
Buildings | 45,781 | 2,448 | |||||||
Building and tenant improvements | 5,832 | 238 | |||||||
Above-market leases(1) | 155 | — | |||||||
In-place leases(2) | 6,923 | 304 | |||||||
Total assets | 84,644 | 9,068 | |||||||
Liabilities | |||||||||
Below-market leases(3) | 5,010 | 74 | |||||||
Other liabilities | — | — | |||||||
Total liabilities | 5,010 | 74 | |||||||
Net assets acquired | $ | 79,634 | $ | 8,994 |
(1) | The weighted average amortization period at the time of acquisition for above-market leases related to assets acquired during the nine months ended September 30, 2019 was 10.4 years. |
(2) | The weighted average amortization period at the time of acquisition for in-place leases related to assets acquired during the nine months ended September 30, 2019 and 2018 was 8.8 years and 4.8 years, respectively. |
(3) | The weighted average amortization period at the time of acquisition for below-market leases related to assets acquired during the nine months ended September 30, 2019 and 2018 was 24.3 years and 4.8 years, respectively. |
Assets | September 30, 2019 | December 31, 2018 | |||||||
Land | $ | 1,720 | $ | 1,220 | |||||
Buildings and improvements | 6,372 | 2,927 | |||||||
Accumulated depreciation and amortization | (2,124 | ) | (1,334 | ) | |||||
Real estate, net | 5,968 | 2,813 | |||||||
Other assets | 218 | 88 | |||||||
Assets associated with real estate assets held for sale | $ | 6,186 | $ | 2,901 |
Assets | March 31, 2019 | December 31, 2018 | |||||||
Land | $ | 1,412 | $ | 1,220 | |||||
Buildings and improvements | 10,935 | 2,927 | |||||||
Accumulated depreciation and amortization | (3,356 | ) | (1,334 | ) | |||||
Real estate, net | 8,991 | 2,813 | |||||||
Other assets | 102 | 88 | |||||||
Assets associated with real estate assets held for sale | $ | 9,093 | $ | 2,901 | |||||
Liabilities | |||||||||
Below-market leases | $ | 444 | $ | — | |||||
Liabilities associated with real estate assets held for sale(1) | $ | 444 | $ | — |
March 31, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||
Land | $ | 1,794,709 | $ | 1,804,504 | $ | 1,779,161 | $ | 1,804,504 | ||||||
Buildings and improvements: | ||||||||||||||
Buildings and tenant improvements(1) | 7,626,515 | 7,626,363 | 7,712,129 | 7,626,363 | ||||||||||
Lease intangibles(2) | 652,561 | 667,910 | 630,065 | 667,910 | ||||||||||
10,073,785 | 10,098,777 | 10,121,355 | 10,098,777 | |||||||||||
Accumulated depreciation and amortization(3) | (2,386,092 | ) | (2,349,127 | ) | (2,452,678 | ) | (2,349,127 | ) | ||||||
Total | $ | 7,687,693 | $ | 7,749,650 | $ | 7,668,677 | $ | 7,749,650 |
(1) | As of |
(2) | As of |
(3) | As of |
Year ending December 31, | Below-market lease accretion (income), net of above-market lease amortization | In-place lease amortization expense | ||||||
2019 (remaining three months) | $ | (4,204 | ) | $ | 5,801 | |||
2020 | (14,406 | ) | 18,708 | |||||
2021 | (11,820 | ) | 13,696 | |||||
2022 | (9,814 | ) | 9,556 | |||||
2023 | (8,471 | ) | 6,928 |
Year ending December 31, | Below-market lease accretion (income), net of above-market lease amortization | In-place lease amortization expense | ||||||
2019 (remaining nine months) | $ | (13,278 | ) | $ | 17,382 | |||
2020 | (14,757 | ) | 17,615 | |||||
2021 | (11,982 | ) | 12,711 | |||||
2022 | (9,869 | ) | 9,353 | |||||
2023 | (8,473 | ) | 6,846 |
Three Months Ended March 31, 2019 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
Brice Park | Reynoldsburg, OH | 158,565 | $ | 3,112 | |||||
158,565 | $ | 3,112 |
Three Months Ended September 30, 2019 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
Parcel at Mansell Crossing(2) | Alpharetta, GA | 51,615 | $ | 5,777 | |||||
Glendale Galleria(2) | Glendale, AZ | 119,525 | 2,197 | ||||||
Westview Center(2) | Hanover Park, IL | 321,382 | 170 | ||||||
North Hills Village(2) | Haltom City, TX | 43,299 | 26 | ||||||
535,821 | $ | 8,170 |
(1) |
Three Months Ended March 31, 2018 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
Southland Shopping Plaza(2) | Toledo, OH | 285,278 | $ | 6,942 | |||||
Roundtree Place(2) | Ypsilanti, MI | 246,620 | 3,772 | ||||||
Skyway Plaza | St. Petersburg, FL | 110,799 | 3,639 | ||||||
Pensacola Square(2) | Pensacola, FL | 142,767 | 1,345 | ||||||
Crossroads Centre(2) | Fairview Heights, IL | 242,752 | 204 | ||||||
1,028,216 | $ | 15,902 |
The Company recognized impairment charges based upon a change in the |
(2) | The Company disposed of this property during the three months ended September 30, 2019. |
Nine Months Ended September 30, 2019 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
Westview Center(2) | Hanover Park, IL | 321,382 | $ | 6,356 | |||||
Parcel at Mansell Crossing(2) | Alpharetta, GA | 51,615 | 5,777 | ||||||
Brice Park | Reynoldsburg, OH | 158,565 | 3,112 | ||||||
Glendale Galleria(2) | Glendale, AZ | 119,525 | 2,197 | ||||||
North Hills Village(2) | Haltom City, TX | 43,299 | 26 | ||||||
694,386 | $ | 17,468 |
(1) | The Company recognized impairment charges based upon a change in the anticipated hold period of these properties and/or offers from third-party buyers in connection with the Company’s capital recycling program. |
(2) | The Company disposed of this property during the nine months ended September 30, 2019. |
Three Months Ended September 30, 2018 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
Westview Center(2) | Hanover Park, IL | 321,382 | $ | 5,916 | |||||
Wadsworth Crossings(3) | Wadsworth, OH | 118,145 | 3,411 | ||||||
Brooksville Square(3) | Brooksville, FL | 96,361 | 2,740 | ||||||
Sterling Bazaar(3) | Peoria, IL | 87,359 | 1,531 | ||||||
Plantation Plaza(3) | Clute, TX | 99,141 | 1,228 | ||||||
Smith’s(3) | Socorro, NM | 48,000 | 1,200 | ||||||
Shops of Riverdale(3) | Riverdale, GA | 16,808 | 155 | ||||||
Dover Park Plaza(3) | Yardville, NJ | 56,638 | 117 | ||||||
Klein Square(3) | Spring, TX | 80,636 | 49 | ||||||
Parcel at Elk Grove Town Center(3) | Elk Grove Village, IL | 72,385 | 19 | ||||||
Mount Carmel Plaza(3) | Glenside, PA | 14,504 | 6 | ||||||
1,011,359 | $ | 16,372 |
(1) | The Company recognized impairment charges based upon a change in the anticipated hold period of these properties in connection with the Company’s capital recycling program. |
(2) | The Company disposed of this property during the nine months ended September 30, 2019. |
(3) | The Company disposed of this property during the year ended December 31, 2018. |
Nine Months Ended September 30, 2018 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
County Line Plaza(2) | Jackson, MS | 221,127 | $ | 10,181 | |||||
Southland Shopping Plaza(2) | Toledo, OH | 285,278 | 7,077 | ||||||
Westview Center(3) | Hanover Park, IL | 321,382 | 5,916 | ||||||
Roundtree Place(2) | Ypsilanti, MI | 246,620 | 4,317 | ||||||
Skyway Plaza | St. Petersburg, FL | 110,799 | 3,639 | ||||||
Wadsworth Crossings(2) | Wadsworth, OH | 118,145 | 3,411 | ||||||
Brooksville Square(2) | Brooksville, FL | 96,361 | 2,740 | ||||||
Sterling Bazaar(2) | Peoria, IL | 87,359 | 1,531 | ||||||
Pensacola Square(2) | Pensacola, FL | 142,767 | 1,345 | ||||||
Plantation Plaza(2) | Clute, TX | 99,141 | 1,228 | ||||||
Smith’s(2) | Socorro, NM | 48,000 | 1,200 | ||||||
Dover Park Plaza(2) | Yardville, NJ | 56,638 | 555 | ||||||
Parcel at Elk Grove Town Center(2) | Elk Grove Village, IL | 72,385 | 538 | ||||||
Crossroads Centre(2) | Fairview Heights, IL | 242,752 | 204 | ||||||
Shops of Riverdale(2) | Riverdale, GA | 16,808 | 155 | ||||||
Mount Carmel Plaza(2) | Glenside, PA | 14,504 | 115 | ||||||
Klein Square(2) | Spring, TX | 80,636 | 49 | ||||||
2,260,702 | $ | 44,201 |
(1) | The Company recognized impairment charges based upon a change in the anticipated hold period of these properties in connection with the Company’s capital recycling program. |
(2) | The Company disposed of this property during the year ended December 31, 2018. |
(3) | The Company disposed of this property during the nine months ended September 30, 2019. |
Number of Instruments | Notional Amount | |||||||||||
September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||
Interest Rate Swaps | 7 | 10 | $ | 800,000 | $ | 1,200,000 |
Number of Instruments | Notional Amount | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2019 | December 31, 2018 | |||||||||
Interest Rate Swaps | 7 | 10 | $ | 800,000 | $ | 1,200,000 |
Fair Value of Derivative Instruments | ||||||||
Interest rate swaps classified as: | September 30, 2019 | December 31, 2018 | ||||||
Gross derivative assets | $ | 3,810 | $ | 18,630 | ||||
Gross derivative liabilities | (17,124 | ) | (2,571 | ) | ||||
Net derivative assets (liabilities) | $ | (13,314 | ) | $ | 16,059 |
Fair Value of Derivative Instruments | ||||||||
Interest rate swaps classified as: | March 31, 2019 | December 31, 2018 | ||||||
Gross derivative assets | $ | 12,788 | $ | 18,630 | ||||
Gross derivative liabilities | (6,786 | ) | (2,571 | ) | ||||
Net derivative assets | $ | 6,002 | $ | 16,059 |
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Change in unrealized gain (loss) on interest rate swaps | $ | (4,125 | ) | $ | 1,868 | $ | (23,375 | ) | $ | 12,103 | ||||||
Accretion of interest rate swaps to interest expense | (1,207 | ) | (3,110 | ) | (5,998 | ) | (9,153 | ) | ||||||||
Change in unrealized gain (loss) on interest rate swaps, net | $ | (5,332 | ) | $ | (1,242 | ) | $ | (29,373 | ) | $ | 2,950 |
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps) | Three Months Ended March 31, | |||||||
2019 | 2018 | |||||||
Change in unrealized gain (loss) on interest rate swaps | $ | (6,944 | ) | $ | 7,234 | |||
Accretion of interest rate swaps to interest expense | (3,113 | ) | (2,461 | ) | ||||
Change in unrealized gain (loss) on interest rate swaps, net | $ | (10,057 | ) | $ | 4,773 |
Carrying Value as of | ||||||||||||
September 30, 2019 | December 31, 2018 | Stated Interest Rate(1) | Scheduled Maturity Date | |||||||||
Secured loan | ||||||||||||
Secured loan(2) | $ | 7,000 | $ | 7,000 | 4.40% | 2024 | ||||||
Net unamortized premium | 224 | 262 | ||||||||||
Net unamortized debt issuance costs | (39 | ) | (45 | ) | ||||||||
Total secured loan, net | $ | 7,185 | $ | 7,217 | ||||||||
Notes payable | ||||||||||||
Unsecured notes(3)(4) | $ | 4,218,453 | $ | 3,468,453 | 3.25% – 7.97% | 2022 – 2029 | ||||||
Net unamortized premium (discount) | 11,152 | (11,562 | ) | |||||||||
Net unamortized debt issuance costs | (24,726 | ) | (20,877 | ) | ||||||||
Total notes payable, net | $ | 4,204,879 | $ | 3,436,014 | ||||||||
Unsecured Credit Facility and term loans | ||||||||||||
Unsecured Credit Facility - $500 Million Term Loan | $ | — | $ | 500,000 | — | 2021 | ||||||
Unsecured Credit Facility - Revolving Facility | — | 306,000 | — | 2023 | ||||||||
Unsecured $350 Million Term Loan(4) | 350,000 | 350,000 | 3.35% | 2023 | ||||||||
Unsecured $300 Million Term Loan(5) | 300,000 | 300,000 | 3.35% | 2024 | ||||||||
Net unamortized debt issuance costs | (9,554 | ) | (13,368 | ) | ||||||||
Total Unsecured Credit Facility and term loans | $ | 640,446 | $ | 1,442,632 | ||||||||
Total debt obligations, net | $ | 4,852,510 | $ | 4,885,863 |
Carrying Value as of | ||||||||||||
March 31, 2019 | December 31, 2018 | Stated Interest Rate(1) | Scheduled Maturity Date | |||||||||
Secured loan | ||||||||||||
Secured loan(2) | $ | 7,000 | $ | 7,000 | 4.40% | 2024 | ||||||
Net unamortized premium | 250 | 262 | ||||||||||
Net unamortized debt issuance costs | (43 | ) | (45 | ) | ||||||||
Total secured loan, net | $ | 7,207 | $ | 7,217 | ||||||||
Notes payable | ||||||||||||
Unsecured notes(3) | $ | 3,468,453 | $ | 3,468,453 | 3.25% – 7.97% | 2022 – 2029 | ||||||
Net unamortized discount | (11,082 | ) | (11,562 | ) | ||||||||
Net unamortized debt issuance costs | (19,902 | ) | (20,877 | ) | ||||||||
Total notes payable, net | $ | 3,437,469 | $ | 3,436,014 | ||||||||
Unsecured Credit Facility and term loans | ||||||||||||
Unsecured Credit Facility - $500 Million Term Loan(4) | $ | 500,000 | $ | 500,000 | 3.74% | 2021 | ||||||
Unsecured Credit Facility - Revolving Facility | 291,000 | 306,000 | 3.59% | 2023 | ||||||||
Unsecured $350 Million Term Loan | 350,000 | 350,000 | 3.74% | 2023 | ||||||||
Unsecured $300 Million Term Loan(5) | 300,000 | 300,000 | 4.39% | 2024 | ||||||||
Net unamortized debt issuance costs | (12,611 | ) | (13,368 | ) | ||||||||
Total Unsecured Credit Facility and term loans | $ | 1,428,389 | $ | 1,442,632 | ||||||||
Total debt obligations, net | $ | 4,873,065 | $ | 4,885,863 |
(1) |
(2) | The Company’s secured loan is collateralized by a property with a carrying value of approximately |
(3) | The weighted average stated interest rate on the Company’s unsecured notes was |
(4) | Effective November 1, 2016, the Company has in place |
(5) | Effective January 2, 2019, the Company has in place |
Year ending December 31, | ||||
2019 (remaining three months) | $ | — | ||
2020 | — | |||
2021 | — | |||
2022 | 750,000 | |||
2023 | 850,000 | |||
Thereafter | 3,275,453 | |||
Total debt maturities | 4,875,453 | |||
Net unamortized premium | 11,376 | |||
Net unamortized debt issuance costs | (34,319 | ) | ||
Total debt obligations, net | $ | 4,852,510 |
Year ending December 31, | ||||
2019 (remaining nine months) | $ | — | ||
2020 | — | |||
2021 | 500,000 | |||
2022 | 750,000 | |||
2023 | 1,141,000 | |||
Thereafter | 2,525,453 | |||
Total debt maturities | 4,916,453 | |||
Net unamortized discount | (10,832 | ) | ||
Net unamortized debt issuance costs | (32,556 | ) | ||
Total debt obligations, net | $ | 4,873,065 |
September 30, 2019 | December 31, 2018 | |||||||||||||||
Carrying Amounts | Fair Value | Carrying Amounts | Fair Value | |||||||||||||
Secured loans | $ | 7,185 | $ | 7,309 | $ | 7,217 | $ | 7,072 | ||||||||
Notes payable | 4,204,879 | 4,415,073 | 3,436,014 | 3,372,418 | ||||||||||||
Unsecured Credit Facility and term loans | 640,446 | 652,515 | 1,442,632 | 1,452,382 | ||||||||||||
Total debt obligations, net | $ | 4,852,510 | $ | 5,074,897 | $ | 4,885,863 | $ | 4,831,872 | ||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||
Carrying Amounts | Fair Value | Carrying Amounts | Fair Value | |||||||||||||
Secured loans | $ | 7,207 | $ | 7,172 | $ | 7,217 | $ | 7,072 | ||||||||
Notes payable | 3,437,469 | 3,462,929 | 3,436,014 | 3,372,418 | ||||||||||||
Unsecured Credit Facility and term loans | 1,428,389 | 1,436,953 | 1,442,632 | 1,452,382 | ||||||||||||
Total debt obligations, net | $ | 4,873,065 | $ | 4,907,054 | $ | 4,885,863 | $ | 4,831,872 | ||||||||
Fair Value Measurements as of March 31, 2019 | Fair Value Measurements as of September 30, 2019 | |||||||||||||||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||
Marketable securities(1) | $ | 29,634 | $ | 1,535 | $ | 28,099 | $ | — | $ | 19,109 | $ | 1,074 | $ | 18,035 | $ | — | ||||||||||||||
Interest rate derivatives | $ | 12,788 | $ | — | $ | 12,788 | $ | — | $ | 3,810 | $ | — | $ | 3,810 | $ | — | ||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Interest rate derivatives | $ | (6,786 | ) | $ | — | $ | (6,786 | ) | $ | — | $ | (17,124 | ) | $ | — | $ | (17,124 | ) | $ | — | ||||||||||
Fair Value Measurements as of December 31, 2018 | Fair Value Measurements as of December 31, 2018 | |||||||||||||||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||
Marketable securities(1) | $ | 30,243 | $ | 1,756 | $ | 28,487 | $ | — | $ | 30,243 | $ | 1,756 | $ | 28,487 | $ | — | ||||||||||||||
Interest rate derivatives | $ | 18,630 | $ | — | $ | 18,630 | $ | — | $ | 18,630 | $ | — | $ | 18,630 | $ | — | ||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Interest rate derivatives | $ | (2,571 | ) | $ | — | $ | (2,571 | ) | $ | — | $ | (2,571 | ) | $ | — | $ | (2,571 | ) | $ | — |
(1) | As of |
Fair Value Measurements as of September 30, 2019 | |||||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Impairment of Real Estate Assets | |||||||||||||||
Assets: | |||||||||||||||||||
Properties(1)(2) | $ | 9,700 | $ | — | $ | — | $ | 9,700 | $ | 3,112 | |||||||||
Fair Value Measurements as of December 31, 2018 | |||||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Impairment of Real Estate Assets | |||||||||||||||
Assets: | |||||||||||||||||||
Properties(3)(4)(5) | $ | 31,725 | $ | — | $ | — | $ | 31,725 | $ | 16,303 |
Fair Value Measurements as of March 31, 2019 | |||||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Impairment of Real Estate Assets | |||||||||||||||
Assets: | |||||||||||||||||||
Properties(1) | $ | 9,700 | $ | — | $ | — | $ | 9,700 | $ | 3,112 | |||||||||
Fair Value Measurements as of December 31, 2018 | |||||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Impairment of Real Estate Assets | |||||||||||||||
Assets: | |||||||||||||||||||
Properties(2)(3)(4) | $ | 31,725 | $ | — | $ | — | $ | 31,725 | $ | 16,303 |
(1) | Excludes properties disposed of prior to September 30, 2019. |
(2) | The carrying value of |
Excludes properties disposed of prior to December 31, 2018. |
The carrying value of properties remeasured to fair value based upon offers from third-party buyers during the year ended December 31, 2018 includes $26.1 million related to Westview Center. |
The carrying value of properties remeasured to fair value based upon a discounted cash flow analysis during the year ended December 31, 2018 includes: (i) $2.9 million related to Skyway Plaza and (ii) $2.7 million related to Covington Gallery. The capitalization rates (ranging from 9.0% to 9.3%) and discount rates (ranging from 6.0% to 10.4%) which were utilized in the discounted cash flow analyses were based upon unobservable rates that the Company believes to be within a reasonable range of current market rates for each respective investment. |
Year ending December 31, | Operating Leases | |||
2019 (remaining three months) | $ | 212,057 | ||
2020 | 811,776 | |||
2021 | 711,393 | |||
2022 | 601,482 | |||
2023 | 502,045 | |||
Thereafter | 1,753,242 |
Year ending December 31, | Operating Leases | |||
2019 (remaining nine months) | $ | 626,724 | ||
2020 | 751,081 | |||
2021 | 640,651 | |||
2022 | 529,569 | |||
2023 | 430,870 | |||
Thereafter | 1,501,400 |
Year ending December 31, | Operating Leases | |||
2019 | $ | 811,381 | ||
2020 | 709,230 | |||
2021 | 599,367 | |||
2022 | 490,087 | |||
2023 | 392,892 | |||
Thereafter | 1,368,278 |
Year ending December 31, | Operating Leases | |||
2019 | $ | 811,381 | ||
2020 | 709,230 | |||
2021 | 599,367 | |||
2022 | 490,087 | |||
2023 | 392,892 | |||
Thereafter | 1,368,278 |
Supplemental Statements of Operations Information | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||
Operating lease costs | $ | 1,705 | $ | 5,121 | ||||
Short-term lease costs | 9 | 29 | ||||||
Variable lease costs | 80 | 336 | ||||||
Total lease costs | $ | 1,794 | $ | 5,486 | ||||
Supplemental Statements of Cash Flows Information | Nine Months Ended September 30, 2019 | |||||||
Operating cash outflows from operating leases | $ | 5,226 | ||||||
ROU assets obtained in exchange for operating lease liabilities | $ | 44,354 | ||||||
Operating Lease Liabilities | As of September 30, 2019 | |||||||
Future minimum operating lease payments: | ||||||||
2019 (remaining three months) | $ | 1,725 | ||||||
2020 | 6,916 | |||||||
2021 | 6,942 | |||||||
2022 | 6,999 | |||||||
2023 | 5,611 | |||||||
Thereafter | 30,807 | |||||||
Total future minimum operating lease payments | 59,000 | |||||||
Less: imputed interest | (13,396 | ) | ||||||
Operating lease liabilities | $ | 45,604 | ||||||
Supplemental Balance Sheets Information | As of September 30, 2019 | |||||||
Operating lease liabilities(1)(2) | $ | 45,604 | ||||||
ROU assets(1)(3) | $ | 40,599 |
Three Months Ended March 31, 2019 | ||||
Supplemental Statements of Operations Information | ||||
Operating lease costs | $ | 1,711 | ||
Short-term lease costs | 10 | |||
Variable lease costs | 142 | |||
Total lease costs | $ | 1,863 | ||
Three Months Ended March 31, 2019 | ||||
Supplemental Statements of Cash Flows Information | ||||
Operating cash outflows from operating leases | $ | 1,797 | ||
ROU assets obtained in exchange for operating lease liabilities | $ | 44,324 | ||
Operating Lease Liabilities | As of March 31, 2019 | |||
Future minimum operating lease payments: | ||||
2019 (remaining nine months) | $ | 5,180 | ||
2020 | 6,924 | |||
2021 | 6,964 | |||
2022 | 7,022 | |||
2023 | 5,635 | |||
Thereafter | 30,912 | |||
Total future minimum operating lease payments | 62,637 | |||
Less: imputed interest | (14,441 | ) | ||
Operating lease liabilities | $ | 48,196 | ||
Supplemental Balance Sheets Information | As of March 31, 2019 | |||
Operating lease liabilities(1)(2)(3) | $ | 48,196 | ||
ROU assets(1)(2)(4) | $ | 43,146 |
(1) | As of |
These amounts are included in Accounts payable, accrued expenses and other liabilities on the Company’s unaudited Condensed Consolidated Balance Sheets. |
These amounts are included in Other assets on the Company’s unaudited Condensed Consolidated Balance Sheets. |
Year ending December 31, | ||||
2019 | $ | 6,929 | ||
2020 | 6,948 | |||
2021 | 7,157 | |||
2022 | 7,233 | |||
2023 | 5,827 | |||
Thereafter | 43,876 | |||
Total minimum annual rental commitments | $ | 77,970 |
Year ending December 31, | ||||
2019 | $ | 6,929 | ||
2020 | 6,948 | |||
2021 | 7,157 | |||
2022 | 7,233 | |||
2023 | 5,827 | |||
Thereafter | 43,876 | |||
Total minimum annual rental commitments | $ | 77,970 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Computation of Basic Earnings Per Share: | |||||||||||||||
Net income | $ | 80,854 | $ | 147,346 | $ | 212,714 | $ | 288,730 | |||||||
Non-forfeitable dividends on unvested restricted shares | (176 | ) | (162 | ) | (484 | ) | (264 | ) | |||||||
Net income attributable to the Company’s common stockholders for basic earnings per share | $ | 80,678 | $ | 147,184 | $ | 212,230 | $ | 288,466 | |||||||
Weighted average number shares outstanding – basic | 298,031 | 302,170 | 298,257 | 303,031 | |||||||||||
Basic earnings per share attributable to the Company’s common stockholders: | |||||||||||||||
Net income per share | $ | 0.27 | $ | 0.49 | $ | 0.71 | $ | 0.95 | |||||||
Computation of Diluted Earnings Per Share: | |||||||||||||||
Net income attributable to the Company’s common stockholders for diluted earnings per share | $ | 80,678 | $ | 147,184 | $ | 212,230 | $ | 288,466 | |||||||
Weighted average shares outstanding – basic | 298,031 | 302,170 | 298,257 | 303,031 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Equity awards | 848 | 212 | 670 | 182 | |||||||||||
Weighted average shares outstanding – diluted | 298,879 | 302,382 | 298,927 | 303,213 | |||||||||||
Diluted earnings per share attributable to the Company’s common stockholders: | |||||||||||||||
Net income per share | $ | 0.27 | $ | 0.49 | $ | 0.71 | $ | 0.95 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Computation of Basic Earnings Per Share: | |||||||
Net income | $ | 62,900 | $ | 61,022 | |||
Non-forfeitable dividends on unvested restricted shares | (144 | ) | (56 | ) | |||
Net income attributable to the Company’s common stockholders for basic earnings per share | $ | 62,756 | $ | 60,966 | |||
Weighted average number shares outstanding – basic | 298,599 | 304,158 | |||||
Basic earnings per share attributable to the Company’s common stockholders: | |||||||
Net income per share | $ | 0.21 | $ | 0.20 | |||
Computation of Diluted Earnings Per Share: | |||||||
Net income attributable to the Company’s common stockholders for diluted earnings per share | $ | 62,756 | $ | 60,966 | |||
Weighted average shares outstanding – basic | 298,599 | 304,158 | |||||
Effect of dilutive securities: | |||||||
Equity awards | 430 | 120 | |||||
Weighted average shares outstanding – diluted | 299,029 | 304,278 | |||||
Diluted earnings per share attributable to the Company’s common stockholders: | |||||||
Net income per share | $ | 0.21 | $ | 0.20 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Computation of Basic Earnings Per Unit: | |||||||||||||||
Net income | $ | 80,854 | $ | 147,346 | $ | 212,714 | $ | 288,730 | |||||||
Non-forfeitable dividends on unvested restricted units | (176 | ) | (162 | ) | (484 | ) | (264 | ) | |||||||
Net income attributable to the Operating Partnership’s common units for basic earnings per unit | $ | 80,678 | $ | 147,184 | $ | 212,230 | $ | 288,466 | |||||||
Weighted average number common units outstanding – basic | 298,031 | 302,170 | 298,257 | 303,031 | |||||||||||
Basic earnings per unit attributable to the Operating Partnership’s common units: | |||||||||||||||
Net income per unit | $ | 0.27 | $ | 0.49 | $ | 0.71 | $ | 0.95 | |||||||
Computation of Diluted Earnings Per Unit: | |||||||||||||||
Net income attributable to the Operating Partnership’s common units for diluted earnings per unit | $ | 80,678 | $ | 147,184 | $ | 212,230 | $ | 288,466 | |||||||
Weighted average common units outstanding – basic | 298,031 | 302,170 | 298,257 | 303,031 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Equity awards | 848 | 212 | 670 | 182 | |||||||||||
Weighted average common units outstanding – diluted | 298,879 | 302,382 | 298,927 | 303,213 | |||||||||||
Diluted earnings per unit attributable to the Operating Partnership’s common units: | |||||||||||||||
Net income per unit | $ | 0.27 | $ | 0.49 | $ | 0.71 | $ | 0.95 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Computation of Basic Earnings Per Unit: | |||||||
Net income | $ | 62,900 | $ | 61,022 | |||
Non-forfeitable dividends on unvested restricted units | (144 | ) | (56 | ) | |||
Net income attributable to the Operating Partnership’s common units for basic earnings per unit | $ | 62,756 | $ | 60,966 | |||
Weighted average number common units outstanding – basic | 298,599 | 304,158 | |||||
Basic earnings per unit attributable to the Operating Partnership’s common units: | |||||||
Net income per unit | $ | 0.21 | $ | 0.20 | |||
Computation of Diluted Earnings Per Unit: | |||||||
Net income attributable to the Operating Partnership’s common units for diluted earnings per unit | $ | 62,756 | $ | 60,966 | |||
Weighted average common units outstanding – basic | 298,599 | 304,158 | |||||
Effect of dilutive securities: | |||||||
Equity awards | 430 | 120 | |||||
Weighted average common units outstanding – diluted | 299,029 | 304,278 | |||||
Diluted earnings per unit attributable to the Operating Partnership’s common units: | |||||||
Net income per unit | $ | 0.21 | $ | 0.20 |
For the Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2019 | For the Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||
Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF | Third Party Leasing Commissions PSF | Rent Spread(1) | Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF | Third Party Leasing Commissions PSF | Rent Spread(1) | |||||||||||||||||||||||||||||
New, renewal and option leases | 395 | 3,184,376 | $ | 13.48 | $ | 4.79 | $ | 1.34 | 9.8 | % | 509 | 3,623,347 | $ | 13.95 | $ | 6.92 | $ | 1.38 | 11.1 | % | ||||||||||||||||||||
New and renewal leases | 325 | 1,722,634 | 16.33 | 8.85 | 2.47 | 12.3 | % | 438 | 2,252,432 | 16.63 | 11.12 | 2.22 | 13.3 | % | ||||||||||||||||||||||||||
New leases | 147 | 694,443 | 18.79 | 19.21 | 6.12 | 32.7 | % | 160 | 948,964 | 15.63 | 23.97 | 5.07 | 30.5 | % | ||||||||||||||||||||||||||
Renewal leases | 178 | 1,028,191 | 14.67 | 1.85 | 0.01 | 6.8 | % | 278 | 1,303,468 | 17.36 | 1.77 | 0.15 | 9.4 | % | ||||||||||||||||||||||||||
Option leases | 70 | 1,461,742 | 10.13 | — | — | 6.7 | % | 71 | 1,370,915 | 9.55 | — | — | 6.5 | % | ||||||||||||||||||||||||||
For the Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2018 | For the Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||||
Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF | Third Party Leasing Commissions PSF | Rent Spread(1) | Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF | Third Party Leasing Commissions PSF | Rent Spread(1) | |||||||||||||||||||||||||||||
New, renewal and option leases | 440 | 2,745,080 | $ | 14.43 | $ | 8.90 | $ | 1.63 | 14.5 | % | 509 | 3,135,370 | $ | 14.54 | $ | 6.97 | $ | 1.31 | 12.1 | % | ||||||||||||||||||||
New and renewal leases | 395 | 2,046,088 | 15.19 | 11.94 | 2.19 | 16.7 | % | 436 | 2,238,581 | 15.43 | 9.76 | 1.84 | 13.4 | % | ||||||||||||||||||||||||||
New leases | 151 | 1,042,526 | 14.47 | 21.11 | 4.29 | 36.7 | % | 157 | 875,425 | 14.78 | 21.76 | 4.53 | 39.7 | % | ||||||||||||||||||||||||||
Renewal leases | 244 | 1,003,562 | 15.94 | 2.40 | — | 8.4 | % | 279 | 1,363,156 | 15.84 | 2.06 | 0.10 | 6.7 | % | ||||||||||||||||||||||||||
Option leases | 45 | 698,992 | 12.19 | — | — | 8.5 | % | 73 | 896,789 | 12.32 | — | — | 8.6 | % |
(1) | Based on comparable leases |
For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||
Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF | Third Party Leasing Commissions PSF | Rent Spread(1) | |||||||||||||||
New, renewal and option leases | 1,360 | 10,107,597 | $ | 13.82 | $ | 6.88 | $ | 1.44 | 10.9 | % | ||||||||||
New and renewal leases | 1,155 | 6,188,294 | 15.93 | 11.20 | 2.34 | 13.3 | % | |||||||||||||
New leases | 483 | 2,669,762 | 16.42 | 23.75 | 5.27 | 31.0 | % | |||||||||||||
Renewal leases | 672 | 3,518,532 | 15.56 | 1.68 | 0.12 | 8.3 | % | |||||||||||||
Option leases | 205 | 3,919,303 | 10.48 | 0.05 | — | 7.2 | % | |||||||||||||
For the Nine Months Ended September 30, 2018 | ||||||||||||||||||||
Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF | Third Party Leasing Commissions PSF | Rent Spread(1) | |||||||||||||||
New, renewal and option leases | 1,525 | 9,276,924 | $ | 14.61 | $ | 7.77 | $ | 1.43 | 12.4 | % | ||||||||||
New and renewal leases | 1,295 | 6,362,370 | 15.74 | 11.27 | 2.06 | 14.7 | % | |||||||||||||
New leases | 484 | 2,931,627 | 14.71 | 22.14 | 4.42 | 35.2 | % | |||||||||||||
Renewal leases | 811 | 3,430,743 | 16.62 | 1.98 | 0.05 | 8.4 | % | |||||||||||||
Option leases | 230 | 2,914,554 | 12.14 | 0.14 | 0.03 | 7.6 | % |
(1) | Based on comparable leases only, which includes new leases executed on units that were occupied within the prior 12 months and renewals executed with the same tenant in all or a portion of the same location to extend the term of an expiring lease. |
Three Months Ended March 31, | Three Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | $ Change | 2019 | 2018 | $ Change | |||||||||||||||||
Revenues | ||||||||||||||||||||||
Rental income | $ | 289,955 | $ | 316,797 | $ | (26,842 | ) | $ | 292,732 | $ | 306,172 | $ | (13,440 | ) | ||||||||
Other revenues | 1,184 | 378 | 806 | 233 | 308 | (75 | ) | |||||||||||||||
Total revenues | $ | 291,139 | $ | 317,175 | $ | (26,036 | ) | $ | 292,965 | $ | 306,480 | $ | (13,515 | ) |
Three Months Ended March 31, | Three Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | $ Change | 2019 | 2018 | $ Change | |||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Operating costs | $ | 31,258 | $ | 35,490 | $ | (4,232 | ) | $ | 29,573 | $ | 31,969 | $ | (2,396 | ) | ||||||||
Real estate taxes | 43,326 | 45,725 | (2,399 | ) | 43,688 | 44,711 | (1,023 | ) | ||||||||||||||
Depreciation and amortization | 85,395 | 90,383 | (4,988 | ) | 82,837 | 85,183 | (2,346 | ) | ||||||||||||||
Provision for doubtful accounts | — | 2,415 | (2,415 | ) | — | 3,094 | (3,094 | ) | ||||||||||||||
Impairment of real estate assets | 3,112 | 15,902 | (12,790 | ) | 8,170 | 16,372 | (8,202 | ) | ||||||||||||||
General and administrative | 25,443 | 22,426 | 3,017 | 24,550 | 21,209 | 3,341 | ||||||||||||||||
Total operating expenses | $ | 188,534 | $ | 212,341 | $ | (23,807 | ) | $ | 188,818 | $ | 202,538 | $ | (13,720 | ) |
Three Months Ended March 31, | Three Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | $ Change | 2019 | 2018 | $ Change | |||||||||||||||||
Other income (expense) | ||||||||||||||||||||||
Dividends and interest | $ | 147 | $ | 96 | $ | 51 | $ | 128 | $ | 156 | $ | (28 | ) | |||||||||
Interest expense | (46,666 | ) | (55,171 | ) | 8,505 | (47,698 | ) | (55,364 | ) | 7,666 | ||||||||||||
Gain on sale of real estate assets | 7,602 | 11,448 | (3,846 | ) | 25,621 | 119,333 | (93,712 | ) | ||||||||||||||
Gain (loss) on extinguishment of debt, net | 30 | (132 | ) | 162 | ||||||||||||||||||
Loss on extinguishment of debt, net | (943 | ) | (19,759 | ) | 18,816 | |||||||||||||||||
Other | (818 | ) | (53 | ) | (765 | ) | (401 | ) | (962 | ) | 561 | |||||||||||
Total other expense | $ | (39,705 | ) | $ | (43,812 | ) | $ | 4,107 | ||||||||||||||
Total other income (expense) | $ | (23,293 | ) | $ | 43,404 | $ | (66,697 | ) |
Nine Months Ended September 30, | |||||||||||
2019 | 2018 | $ Change | |||||||||
Revenues | |||||||||||
Rental income | $ | 873,424 | $ | 935,689 | $ | (62,265 | ) | ||||
Other revenues | 1,685 | 996 | 689 | ||||||||
Total revenues | $ | 875,109 | $ | 936,685 | $ | (61,576 | ) |
Nine Months Ended September 30, | |||||||||||
2019 | 2018 | $ Change | |||||||||
Operating expenses | |||||||||||
Operating costs | $ | 90,138 | $ | 101,340 | $ | (11,202 | ) | ||||
Real estate taxes | 130,203 | 135,383 | (5,180 | ) | |||||||
Depreciation and amortization | 249,825 | 266,900 | (17,075 | ) | |||||||
Provision for doubtful accounts | — | 6,458 | (6,458 | ) | |||||||
Impairment of real estate assets | 17,468 | 44,201 | (26,733 | ) | |||||||
General and administrative | 75,168 | 64,955 | 10,213 | ||||||||
Total operating expenses | $ | 562,802 | $ | 619,237 | $ | (56,435 | ) |
Nine Months Ended September 30, | |||||||||||
2019 | 2018 | $ Change | |||||||||
Other income (expense) | |||||||||||
Dividends and interest | $ | 575 | $ | 356 | $ | 219 | |||||
Interest expense | (142,839 | ) | (165,735 | ) | 22,896 | ||||||
Gain on sale of real estate assets | 46,266 | 159,043 | (112,777 | ) | |||||||
Loss on extinguishment of debt, net | (1,620 | ) | (20,182 | ) | 18,562 | ||||||
Other | (1,975 | ) | (2,200 | ) | 225 | ||||||
Total other expense | $ | (99,593 | ) | $ | (28,718 | ) | $ | (70,875 | ) |
Three Months Ended March 31 | Nine Months Ended September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cash flows provided by operating activities | $ | 96,838 | $ | 124,450 | $ | 399,933 | $ | 400,182 | ||||||||
Cash flows provided by (used in) investing activities | (31,834 | ) | 28,236 | (110,543 | ) | 480,070 | ||||||||||
Cash flows used in financing activities | (112,363 | ) | (170,694 | ) | (308,674 | ) | (926,010 | ) |
Three Months Ended March 31 | Nine Months Ended September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cash flows provided by operating activities | $ | 96,838 | $ | 124,450 | $ | 399,933 | $ | 400,182 | ||||||||
Cash flows provided by (used in) investing activities | (31,833 | ) | 28,237 | (110,540 | ) | 480,071 | ||||||||||
Cash flows used in financing activities | (112,488 | ) | (170,694 | ) | (308,569 | ) | (926,006 | ) |
Contractual Obligations (in thousands) | Payment due by period | Payment due by period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||
Debt(1) | $ | — | $ | — | $ | 500,000 | $ | 750,000 | $ | 1,141,000 | $ | 2,525,453 | $ | 4,916,453 | $ | — | $ | — | $ | — | $ | 750,000 | $ | 850,000 | $ | 3,275,453 | $ | 4,875,453 | ||||||||||||||||||||||||||||
Interest payments(2) | 126,072 | 179,173 | 174,262 | 158,776 | 129,135 | 178,319 | 945,737 | 40,547 | 180,277 | 182,412 | 177,803 | 157,094 | 348,475 | 1,086,608 | ||||||||||||||||||||||||||||||||||||||||||
Operating leases | 5,180 | 6,924 | 6,964 | 7,022 | 5,635 | 30,912 | 62,637 | 1,725 | 6,916 | 6,942 | 6,999 | 5,611 | 30,807 | 59,000 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 131,252 | $ | 186,097 | $ | 681,226 | $ | 915,798 | $ | 1,275,770 | $ | 2,734,684 | $ | 5,924,827 | $ | 42,272 | $ | 187,193 | $ | 189,354 | $ | 934,802 | $ | 1,012,705 | $ | 3,654,735 | $ | 6,021,061 | ||||||||||||||||||||||||||||
(1) | Debt includes scheduled maturities for unsecured notes payable, unsecured credit facilities and a secured loan. |
(2) | As of |
Three Months Ended March 31, 2019 | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net income | $ | 62,900 | $ | 61,022 | $ | 80,854 | $ | 147,346 | $ | 212,714 | $ | 288,730 | ||||||||||
Gain on disposition of operating properties | (7,602 | ) | (11,448 | ) | ||||||||||||||||||
Depreciation and amortization- real estate related | 84,397 | 89,352 | ||||||||||||||||||||
Impairment of operating properties | 3,112 | 15,902 | ||||||||||||||||||||
Depreciation and amortization related to real estate | 81,869 | 84,028 | 246,887 | 263,616 | ||||||||||||||||||
Gain on sale of real estate assets | (25,621 | ) | (119,333 | ) | (46,266 | ) | (159,043 | ) | ||||||||||||||
Impairment of real estate assets | 8,170 | 16,372 | 17,468 | 44,201 | ||||||||||||||||||
NAREIT FFO | $ | 142,807 | $ | 154,828 | $ | 145,272 | $ | 128,413 | $ | 430,803 | $ | 437,504 | ||||||||||
NAREIT FFO per diluted share | $ | 0.48 | $ | 0.51 | $ | 0.49 | $ | 0.42 | $ | 1.44 | $ | 1.44 | ||||||||||
Weighted average diluted shares outstanding | 299,029 | 304,278 | 298,879 | 302,382 | 298,927 | 303,213 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||
Number of properties | Number of properties | 420 | 420 | — | Number of properties | 403 | 403 | — | 402 | 402 | — | |||||||||||||||||||||||||||||
Percent billed | Percent billed | 87.5 | % | 89.5 | % | (2.0 | %) | Percent billed | 88.9 | % | 89.4 | % | (0.5 | %) | 88.9 | % | 89.4 | % | (0.5 | %) | ||||||||||||||||||||
Percent leased | Percent leased | 91.1 | % | 92.0 | % | (0.9 | %) | Percent leased | 92.3 | % | 92.6 | % | (0.3 | %) | 92.2 | % | 92.6 | % | (0.4 | %) | ||||||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||||||||||||||||||||
Rental income | $ | 278,131 | $ | 276,929 | $ | 1,202 | Rental income | $ | 274,934 | $ | 268,240 | $ | 6,694 | $ | 814,629 | $ | 803,526 | $ | 11,103 | |||||||||||||||||||||
Other revenues | 1,184 | 378 | 806 | Other revenues | 221 | 261 | (40 | ) | 1,664 | 892 | 772 | |||||||||||||||||||||||||||||
279,315 | 277,307 | 2,008 | 275,155 | 268,501 | 6,654 | 816,293 | 804,418 | 11,875 | ||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | Operating expenses | ||||||||||||||||||||||||||||||||||||||
Operating costs | (30,888 | ) | (31,930 | ) | 1,042 | Operating costs | (28,258 | ) | (29,027 | ) | 769 | (86,704 | ) | (89,981 | ) | 3,277 | ||||||||||||||||||||||||
Real estate taxes | (43,001 | ) | (41,900 | ) | (1,101 | ) | Real estate taxes | (42,576 | ) | (41,071 | ) | (1,505 | ) | (125,496 | ) | (121,593 | ) | (3,903 | ) | |||||||||||||||||||||
Provision for doubtful accounts | — | (2,153 | ) | 2,153 | Provision for doubtful accounts | — | (2,665 | ) | 2,665 | — | (5,300 | ) | 5,300 | |||||||||||||||||||||||||||
(73,889 | ) | (75,983 | ) | 2,094 | (70,834 | ) | (72,763 | ) | 1,929 | (212,200 | ) | (216,874 | ) | 4,674 | ||||||||||||||||||||||||||
Same property NOI | Same property NOI | $ | 205,426 | $ | 201,324 | $ | 4,102 | Same property NOI | $ | 204,321 | $ | 195,738 | $ | 8,583 | $ | 604,093 | $ | 587,544 | $ | 16,549 | ||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net income | $ | 62,900 | $ | 61,022 | $ | 80,854 | $ | 147,346 | $ | 212,714 | $ | 288,730 | ||||||||||
Adjustments: | ||||||||||||||||||||||
Non-same property NOI | (1,239 | ) | (21,568 | ) | (4,538 | ) | (20,414 | ) | (18,621 | ) | (73,551 | ) | ||||||||||
Lease termination fees | (769 | ) | (1,531 | ) | (423 | ) | (467 | ) | (2,706 | ) | (2,363 | ) | ||||||||||
Straight-line rental income, net | (5,036 | ) | (3,097 | ) | (6,831 | ) | (5,015 | ) | (18,051 | ) | (11,896 | ) | ||||||||||
Accretion of above- and below-market leases and tenant inducements, net | (4,116 | ) | (6,055 | ) | (3,622 | ) | (5,112 | ) | (11,391 | ) | (18,250 | ) | ||||||||||
Straight-line ground rent expense | 31 | 30 | 31 | 40 | 94 | 100 | ||||||||||||||||
Depreciation and amortization | 85,395 | 90,383 | 82,837 | 85,183 | 249,825 | 266,900 | ||||||||||||||||
Impairment of real estate assets | 3,112 | 15,902 | 8,170 | 16,372 | 17,468 | 44,201 | ||||||||||||||||
General and administrative | 25,443 | 22,426 | 24,550 | 21,209 | 75,168 | 64,955 | ||||||||||||||||
Total other expense | 39,705 | 43,812 | ||||||||||||||||||||
Total other income (expense) | 23,293 | (43,404 | ) | 99,593 | 28,718 | |||||||||||||||||
Same property NOI | $ | 205,426 | $ | 201,324 | $ | 204,321 | $ | 195,738 | $ | 604,093 | $ | 587,544 |
Period | Total Number of Shares Repurchased | Average Price Paid Per Share | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Repurchased (in millions) | ||||||||||
January 1, 2019 to January 31, 2019 | — | $ | — | — | $ | 289.5 | ||||||||
February 1, 2019 to February 28, 2019 | 226,832 | 17.62 | 226,832 | 285.5 | ||||||||||
March 1, 2019 to March 31, 2019 | 433,589 | 17.48 | 433,589 | 278.0 | ||||||||||
Total | 660,421 | $ | 17.53 | 660,421 |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Date of Filing | Exhibit Number | Filed Herewith | ||||||
First Amendment to Employment Agreement, dated March 7, 2019, by and between Brixmor Property Group Inc. and Angela Aman | 8-K | 001-36160 | 3/8/2019 | 10.1 | ||||||||
First Amendment to Employment Agreement, dated March 7, 2019, by and between Brixmor Property Group Inc. and Mark T. Horgan | 8-K | 001-36160 | 3/8/2019 | 10.2 | ||||||||
First Amendment to Employment Agreement, dated February 26, 2019, by and between Brixmor Property Group Inc. and Steven F. Siegel | — | — | — | — | x | |||||||
Second Amendment to Employment Agreement, dated April 26, 2019, by and between Brixmor Property Group Inc. and Steven F. Siegel | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
101.INS | XBRL Instance Document | — | — | — | — | x | ||||||
101.SCH | XBRL Taxonomy Extension Schema Document | — | — | — | — | x |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Date of Filing | Exhibit Number | Filed Herewith | ||||||
Second Amended and Restated Agreement of Limited Partnership of Brixmor Operating Partnership LP, dated as of October 28, 2019, by and among Brixmor OP GP LLC, as General Partner, BPG Subsidiary Inc., as a Limited Partner, BPG Sub LLC, as a Limited Partner, and the other limited partners from time to time party thereto | — | — | — | — | x | |||||||
Amendment No. 1 to the Eighth Supplemental Indenture, dated August 15, 2019, between Brixmor Operating Partnership LP, as issuer, and The Bank of New York Mellon, as trustee | 8-K | 001-36160 | 8/15/2019 | 4.3 | ||||||||
Form of Global Note representing the 4.125% Senior Notes due 2029 (included in Exhibit 4.1) | 8-K | 001-36160 | 8/15/2019 | 4.4 | ||||||||
Brixmor Property Group Inc. Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
101.INS | Inline XBRL Taxonomy Extension Instance Document | — | — | — | — | x |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Date of Filing | Exhibit Number | Filed Herewith | ||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | — | — | — | — | x | ||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | — | — | — | — | x | ||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | — | — | — | — | x | ||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | — | — | — | — | x | ||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | — | — | — | — | x | ||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101) | x |
BRIXMOR PROPERTY GROUP INC. | ||
Date: | By: | /s/ James M. Taylor |
James M. Taylor | ||
Chief Executive Officer and President | ||
(Principal Executive Officer) | ||
Date: | By: | /s/ Angela Aman |
Angela Aman | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: | By: | /s/ Steven Gallagher |
Steven Gallagher | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) | ||
BRIXMOR OPERATING PARTNERSHIP LP | ||
Date: | By: | /s/ James M. Taylor |
James M. Taylor | ||
Chief Executive Officer and President | ||
(Principal Executive Officer) | ||
Date: | By: | /s/ Angela Aman |
Angela Aman | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: | By: | /s/ Steven Gallagher |
Steven Gallagher | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) | ||