Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Aug. 31, 2016 | Sep. 30, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | GRIFFIN INDUSTRIAL REALTY, INC. | |
Entity Central Index Key | 1,037,390 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,092,708 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2016 | Nov. 30, 2015 |
ASSETS | ||
Real estate assets, net | $ 173,995 | $ 166,455 |
Real estate held for sale | 1,587 | 1,418 |
Cash and cash equivalents | 13,960 | 18,271 |
Deferred income taxes | 7,005 | 5,838 |
Available for sale securities - Investment in Centaur Media plc | 1,058 | 1,970 |
Other assets | 17,928 | 15,349 |
Total assets | 215,533 | 209,301 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Mortgage loans | 99,838 | 90,436 |
Deferred revenue | 10,618 | 10,790 |
Accounts payable and accrued liabilities | 3,987 | 3,348 |
Dividend payable | 1,546 | |
Other liabilities | 10,582 | 8,372 |
Total liabilities | 125,025 | 114,492 |
Commitments and Contingencies (Note 9) | ||
Stockholders' Equity | ||
Common stock, par value $0.01 per share, 10,000,000 shares authorized, 5,541,029 shares issued and 5,092,708 and 5,152,708 shares outstanding, respectively | 55 | 55 |
Additional paid-in capital | 108,373 | 108,188 |
Retained earnings | 354 | 1,117 |
Accumulated other comprehensive loss, net of tax | (2,857) | (1,085) |
Treasury stock, at cost, 448,321 and 388,321 shares, respectively | (15,417) | (13,466) |
Total stockholders' equity | 90,508 | 94,809 |
Total liabilities and stockholders' equity | $ 215,533 | $ 209,301 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2016 | Nov. 30, 2015 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,541,029 | 5,541,029 |
Common stock, shares outstanding | 5,092,708 | 5,152,708 |
Treasury stock, shares | 448,321 | 388,321 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Consolidated Statements of Operations | ||||
Rental revenue | $ 6,514 | $ 6,608 | $ 19,998 | $ 17,966 |
Revenue from property sales | 751 | 1,576 | 473 | 2,647 |
Total revenue | 7,265 | 8,184 | 20,471 | 20,613 |
Operating expenses of rental properties | 1,982 | 2,125 | 6,140 | 6,410 |
Depreciation and amortization expense | 2,226 | 1,923 | 6,540 | 5,627 |
Costs related to property sales | 193 | 162 | 193 | 484 |
General and administrative expenses | 1,775 | 1,333 | 5,435 | 5,191 |
Total expenses | 6,176 | 5,543 | 18,308 | 17,712 |
Operating income | 1,089 | 2,641 | 2,163 | 2,901 |
Interest expense | (1,162) | (801) | (3,315) | (2,645) |
Gain on sale of assets | 122 | |||
Investment income | 6 | 62 | 111 | |
(Loss) income before income tax benefit (provision) | (73) | 1,846 | (968) | 367 |
Income tax benefit (provision) | 24 | (643) | 205 | (106) |
Net loss | $ (49) | $ 1,203 | $ (763) | $ 261 |
Basic net income (loss) per common share: | ||||
Basic net loss per common share (in dollars per share) | $ (0.01) | $ 0.23 | $ (0.15) | $ 0.05 |
Diluted net income (loss) per common share: | ||||
Diluted net loss per common share (in dollars per share) | $ (0.01) | $ 0.23 | $ (0.15) | $ 0.05 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net (loss) income | $ (49) | $ 1,203 | $ (763) | $ 261 |
Other comprehensive (loss) income, net of tax: | ||||
Reclassifications included in net (loss) income | 219 | 189 | 646 | 557 |
(Decrease) increase in fair value of Centaur Media plc | (254) | 123 | (593) | 414 |
Unrealized loss on cash flow hedges | (710) | (54) | (1,825) | (512) |
Total other comprehensive (loss) income, net of tax | (745) | 258 | (1,772) | 459 |
Total comprehensive (loss) income | $ (794) | $ 1,461 | $ (2,535) | $ 720 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at beginning of period at Nov. 30, 2014 | $ 55 | $ 107,887 | $ 2,238 | $ (835) | $ (13,466) | $ 95,879 |
Balance (in shares) at Nov. 30, 2014 | 5,537,895 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock-based compensation | 192 | 192 | ||||
Exercise of stock options | 80 | 80 | ||||
Exercise of stock options (shares) | 3,134 | |||||
Net income (loss) | 261 | 261 | ||||
Total other comprehensive loss, net of tax | 459 | 459 | ||||
Balance at end of period at Aug. 31, 2015 | $ 55 | 108,159 | 2,499 | (376) | (13,466) | 96,871 |
Balance (in shares) at Aug. 31, 2015 | 5,541,029 | |||||
Balance at beginning of period at Nov. 30, 2015 | $ 55 | 108,188 | 1,117 | (1,085) | (13,466) | 94,809 |
Balance (in shares) at Nov. 30, 2015 | 5,541,029 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock-based compensation | 185 | 185 | ||||
Repurchase of common stock | (1,951) | (1,951) | ||||
Net income (loss) | (763) | (763) | ||||
Total other comprehensive loss, net of tax | (1,772) | (1,772) | ||||
Balance at end of period at Aug. 31, 2016 | $ 55 | $ 108,373 | $ 354 | $ (2,857) | $ (15,417) | $ 90,508 |
Balance (in shares) at Aug. 31, 2016 | 5,541,029 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Operating activities: | ||
Net income (loss) | $ (763) | $ 261 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,540 | 5,627 |
Gain on sales of properties | (280) | (2,163) |
Deferred income taxes | (154) | 106 |
Stock-based compensation expense | 185 | 192 |
Amortization of debt issuance costs | 222 | 174 |
Gain on sale of assets | (122) | |
Accretion of discount on note receivable | (49) | |
Changes in assets and liabilities: | ||
Other assets | (3,065) | (631) |
Accounts payable and accrued liabilities | 346 | 442 |
Deferred revenue | 301 | 5,478 |
Other liabilities | 337 | 477 |
Net cash provided by operating activities | 3,547 | 9,914 |
Investing activities: | ||
Additions to real estate assets | (13,365) | (26,461) |
Deferred leasing costs and other | (564) | (836) |
Proceeds from collection of note receivable | 1,500 | |
Proceeds from sales of property | 400 | |
Net cash used in investing activities | (13,929) | (25,397) |
Financing activities: | ||
Proceeds from debt | 18,800 | 28,891 |
Payments of debt | (9,398) | (19,531) |
Repurchase of common stock | (1,951) | |
Dividends paid to stockholders | (1,546) | (1,030) |
Mortgage proceeds held in escrow | 600 | (3,125) |
Debt issuance costs | (434) | (511) |
Exercise of stock options | 80 | |
Net cash provided by financing activities | 6,071 | 4,774 |
Net decrease in cash and cash equivalents | (4,311) | (10,709) |
Cash and cash equivalents at beginning of period | 18,271 | 17,059 |
Cash and cash equivalents at end of period | $ 13,960 | $ 6,350 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Aug. 31, 2016 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation Griffin Industrial Realty, Inc. ("Griffin") is a real estate business principally engaged in developing, managing and leasing industrial and, to a lesser extent, commercial properties. Periodically, Griffin may also sell certain portions of its undeveloped land that it has owned for an extended time period and the use of which is not consistent with Griffin's core development and leasing strategy. These financial statements have been prepared in conformity with the standards of accounting measurement set forth by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 270, “Interim Reporting” and in accordance with the accounting policies stated in Griffin’s audited consolidated financial statements for the fiscal year ended November 30, 2015 (“fiscal 2015”) included in Griffin’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 12, 2016. These financial statements should be read in conjunction with the Notes to Consolidated Financial Statements appearing in that report. All adjustments, comprising only normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of results for the interim periods, have been reflected and all intercompany transactions have been eliminated. The consolidated balance sheet data as of November 30, 2015 was derived from Griffin’s audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. Griffin regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, stock-based compensation expense, deferred income tax asset valuations, valuation of derivative instruments and the estimated costs to complete required offsite improvements related to land sold. Griffin bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by Griffin may differ materially and adversely from Griffin’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. As of August 31, 2016, Griffin was a party to several interest rate swap agreements to hedge its interest rate exposure. Griffin does not use derivatives for speculative purposes. Griffin applies FASB ASC 815, “Derivatives and Hedging,” (“ASC 815”) as amended, which establishes accounting and reporting standards for derivative instruments and hedging activities. ASC 815 requires Griffin to recognize all derivatives as either assets or liabilities on its consolidated balance sheet and measure those instruments at fair value. The changes in the fair values of the interest rate swap agreements are measured in accordance with ASC 815 and reflected in the carrying values of the interest rate swap agreements on Griffin’s consolidated balance sheet. The estimated fair values are based primarily on projected future swap rates. Griffin applies cash flow hedge accounting to its interest rate swap agreements that are designated as hedges of the variability of future cash flows from floating rate liabilities based on the benchmark interest rates. Changes in the fair values of Griffin’s interest rate swap agreements are recorded as components of accumulated other comprehensive income (loss) in stockholders’ equity to the extent they are effective. Any ineffective portions of the changes in fair values of these instruments would be recorded as interest expense or interest income. The results of operations for the three months ended August 31, 2016 (the “2016 third quarter”) and the nine months ended August 31, 2016 (the “2016 nine month period”) are not necessarily indicative of the results to be expected for the full year. The three and nine months ended August 31, 2015 are referred to herein as the “2015 third quarter” and “2015 nine month period,” respectively. Prior to May 13, 2015, Griffin was known as Griffin Land & Nurseries, Inc. On May 13, 2015, Griffin changed its name to better reflect its ongoing real estate business after Griffin sold the growing operations of its wholly-owned subsidiary in the landscape nursery business, Imperial Nurseries, Inc. (“Imperial”), to Monrovia Connecticut LLC (“Monrovia”) in the fiscal 2014 first quarter and entered into a long-term lease of Imperial’s Connecticut farm to Monrovia. Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases,” which establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. The accounting applied by lessors under this Update is largely unchanged from that applied under current U.S. GAAP. Leases will be either classified as finance or operating, with classification affecting the pattern of expense recognition in the income statement. This Update also requires significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This Update will become effective for Griffin in fiscal 2020 using a modified restatement approach for leases in effect as of and after the date of adoption. Early adoption and practical expedients to measure the effect of adoption will also be allowed. Griffin is evaluating the impact that the application of this Update will have on its consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, “Financial Instruments - Overall,” which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This Update also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This Update eliminates the requirement for an entity to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. In addition, entities must assess the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. This Update will be effective for Griffin in fiscal 2019. Early adoption is permitted for certain provisions. Upon adoption, changes in the fair value of Griffin's available-for-sale securities will be recognized through net income. In August 2015, the FASB issued Accounting Standards Update No. 2015-15, “Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting,” which addresses line-of-credit arrangements that were omitted from Accounting Standards Update No. 2015-03 (see below). This Update states that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing those costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of this Update is not expected to have a material impact on Griffin's financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, “Interest-Imputation of Interest,” which requires that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct reduction from the carrying amount of the associated debt liability, consistent with debt discounts. This Update must be applied on a retrospective basis and will be effective for Griffin in fiscal 2017. Early adoption is permitted. The adoption of this Update is not expected to have a material impact on Griffin's financial position or results of operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. This standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Additionally, the Update requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. The Update permits the use of either the retrospective or cumulative effect transition method. This Update will be effective for Griffin in fiscal 2019 and early adoption is not permitted. Certain aspects of this new standard may affect revenue recognition of Griffin. Griffin is evaluating the impact that the application of this Update will have on its consolidated financial statements. |
Fair Value
Fair Value | 9 Months Ended |
Aug. 31, 2016 | |
Fair Value | |
Fair Value | 2. Fair Value Griffin applies the provisions of FASB ASC 820, “Fair Value Measurement” (“ASC 820”), which establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value, as follows: Level 1 applies to assets or liabilities for which there are quoted market prices in active markets for identical assets or liabilities. Griffin’s available-for-sale securities are considered Level 1 within the fair value hierarchy. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 2 liabilities include Griffin’s interest rate swap derivatives (see Note 5). These inputs are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, Griffin has categorized these derivative instruments as Level 2 within the fair value hierarchy. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. During the 2016 nine month period, Griffin did not transfer any assets or liabilities into or out of Levels 1 or 2. The following are Griffin’s financial assets and liabilities carried at fair value and measured at fair value on a recurring basis: August 31, 2016 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Marketable equity securities $ $ — $ — Interest rate swap liabilities $ — $ $ — November 30, 2015 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Marketable equity securities $ $ — $ — Interest rate swap liabilities $ — $ $ — The carrying and estimated fair values of Griffin’s financial instruments are as follows: Fair Value August 31, 2016 November 30, 2015 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value Financial assets: Cash and cash equivalents 1 $ $ $ $ Marketable equity securities 1 Financial liabilities: Mortgage loans 2 $ $ $ $ Interest rate swap liabilities 2 The amounts included in the financial statements for cash and cash equivalents, leasing receivables and accounts payable and accrued liabilities approximate their fair values because of the short-term maturity of these instruments. The fair value of the available-for-sale securities is based on quoted market prices. The fair values of the mortgage loans are estimated based on current rates offered to Griffin for similar debt of the same remaining maturities and, additionally, Griffin considers its credit worthiness in determining the fair value of its mortgage loans. The fair values of the interest rate swaps (used for purposes other than trading) are determined based on discounted cash flow models that incorporate the cash flows of the derivatives as well as the current OIS rate and swap curve along with other market data, taking into account current interest rates and the credit worthiness of the counterparty for assets and the credit worthiness of Griffin for liabilities. |
Real Estate Assets
Real Estate Assets | 9 Months Ended |
Aug. 31, 2016 | |
Real Estate Assets | |
Real Estate Assets | 3. Real Estate Assets Real estate assets, net consist of: Estimated Useful Lives Aug. 31, 2016 Nov. 30, 2015 Land $ $ Land improvements 10 to 30 years Buildings and improvements 10 to 40 years Tenant improvements Shorter of useful life or terms of related lease Machinery and equipment 3 to 20 years Construction in progress Development costs Accumulated depreciation $ $ Total depreciation expense and capitalized interest related to real estate assets were as follows: For the Three Months Ended For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Aug. 31, 2016 Aug. 31, 2015 Depreciation expense $ $ $ $ Capitalized interest $ $ $ $ In the fiscal 2013 fourth quarter, Griffin completed the sale of approximately 90 acres of undeveloped land for $8,968 in cash, before transaction costs (the “Windsor Land Sale”). The land sold is located in Windsor, Connecticut and is part of an approximately 253 acre parcel of undeveloped land that straddles the town line between Windsor and Bloomfield, Connecticut. Under the terms of the Windsor Land Sale, Griffin and the buyer were each required to construct roadways connecting the land parcel sold with existing town roads. The roads constructed by the buyer and the road being constructed by Griffin will become new town roads, thereby providing public access to the remaining acreage in Griffin’s land parcel. As a result of Griffin's continuing involvement with the land sold, the Windsor Land Sale is being accounted for under the percentage of completion method. Accordingly, the revenue and pretax gain on the sale are being recognized on a pro rata basis in a ratio equal to the percentage of the total costs incurred to the total anticipated costs of sale, including costs of the required roadwork. Costs included in determining the percentage of completion include the cost of the land sold, allocated master planning costs and the cost of road construction. As of August 31, 2016, approximately 97% of the total costs related to the Windsor Land Sale have been incurred; therefore, from the date of the Windsor Land Sale through August 31, 2016, approximately 97% of the total revenue and pretax gain on the sale have been recognized in Griffin’s consolidated statements of operations. In the 2016 second quarter, Griffin increased its estimate of the total costs to complete the required road improvements attributed to the Windsor Land Sale by $79, based upon changes received from the state of Connecticut’s Department of Transportation in the 2016 second quarter that increased the scope of roadwork required to be completed by Griffin. The effect of the estimated additional roadwork cost is expected to reduce the estimated total pretax gain on the Windsor Land Sale from approximately $6,765 to approximately $6,686 after all costs are incurred. From the time the Windsor Land Sale closed in fiscal 2013 through August 31, 2016, Griffin’s consolidated statements of operations reflected total revenue of $8,729 and a total pretax gain of $6,508 from the Windsor Land Sale. Griffin's consolidated statements of operations for the 2015 third quarter and 2015 nine month period included revenue of $1,176 and $2,247, respectively, and a pretax gain of $1,014 and $1,763, respectively, from the Windsor Land Sale. The balance of the revenue and pretax gain on sale will be recognized when the remaining costs are incurred, which is expected to be in the fourth quarter of fiscal 2016. Deferred revenue on Griffin's consolidated balance sheet as of August 31, 2016 includes $239 related to the Windsor Land Sale that will be recognized as the remaining costs are incurred. While management has used its best estimates, based on industry knowledge and experience, in projecting the total costs of the required roadways being constructed, increases or decreases in future costs as compared with current estimated amounts would reduce or increase the gain recognized in future periods. Real estate assets held for sale consist of: Aug. 31, 2016 Nov. 30, 2015 Land $ $ Development costs $ $ |
Investment in Centaur Media plc
Investment in Centaur Media plc | 9 Months Ended |
Aug. 31, 2016 | |
Investment in Centaur Media plc | |
Investment in Centaur Media plc | 4. Investment in Centaur Media plc As of August 31, 2016, Griffin held 1,952,462 shares of common stock in Centaur Media plc (“Centaur Media”). Griffin's investment in the common stock of Centaur Media is accounted for as an available-for-sale security under ASC 320, “Investments – Debt and Equity Securities.” Accordingly, changes in the fair value of Centaur Media, reflecting both changes in the stock price and changes in the foreign currency exchange rate, are included, net of income taxes, in accumulated other comprehensive loss (see Note 7). Griffin did not sell any of its Centaur Media common stock in the 2016 nine month period or in the 2015 nine month period. The fair value, cost and unrealized gain of Griffin’s investment in Centaur Media are as follows: Aug. 31, 2016 Nov. 30, 2015 Fair value $ $ Cost Unrealized gain $ $ |
Mortgage Loans
Mortgage Loans | 9 Months Ended |
Aug. 31, 2016 | |
Mortgage Loans | |
Mortgage Loans | 5. Mortgage Loans Griffin’s mortgage loans, which are nonrecourse, consist of: Aug. 31, 2016 Nov. 30, 2015 Variable rate, due October 2, 2017 * $ $ Variable rate, due February 1, 2019 * Variable rate, due August 1, 2019 * — Variable rate, due January 27, 2020 * Variable rate, due January 2, 2025 * Variable rate, due September 1, 2025 * Variable rate, due May 1, 2026 * — 5.09%, due July 1, 2029 5.09%, due July 1, 2029 4.33%, due August 1, 2030 Total nonrecourse mortgage loans $ $ *Griffin entered into interest rate swap agreements effectively to fix the interest rates on these loans (see below). On April 26, 2016, Griffin closed on a nonrecourse mortgage (“the 2016 PUB Mortgage”) with People’s United Bank, N.A. (“PUB”) for $14,350, before transaction costs. The 2016 PUB Mortgage refinanced an existing mortgage (the “2009 PUB Mortgage”) with PUB that was due on August 1, 2019 and was collateralized by four industrial/warehouse buildings totaling approximately 240,000 square feet (14, 15, 16 and 40 International Drive) in New England Tradeport (“NE Tradeport”), Griffin’s industrial park located in Windsor and East Granby, Connecticut. The 2009 PUB Mortgage had a balance of $7,418 at the time of the refinancing and a variable interest rate of the one month LIBOR rate plus 3.08%. At the time Griffin completed the 2009 PUB Mortgage, Griffin entered into an interest rate swap agreement with PUB to effectively fix the rate on the 2009 PUB Mortgage at 6.58% for the term of that loan. The 2016 PUB Mortgage is collateralized by the same four properties that collateralized the 2009 PUB Mortgage along with another approximately 98,000 square foot industrial/warehouse building (35 International Drive) in NE Tradeport. At the closing of the 2016 PUB Mortgage, Griffin received net mortgage proceeds of $6,932 (before transaction costs), which was net of the $7,418 used to repay the 2009 PUB Mortgage. The 2016 PUB Mortgage has a ten year term with monthly principal payments based on a twenty-five year amortization schedule. The interest rate for the 2016 PUB Mortgage is a floating rate of the one month LIBOR rate plus 2.0%. At the time the 2016 PUB Mortgage closed, Griffin entered into another interest rate swap agreement with PUB that, combined with the existing interest rate swap agreement with PUB, effectively fixes the interest rate of the 2016 PUB Mortgage at 4.17% over the term of the loan. The terms of the 2016 PUB Mortgage require that if either the tenant that leases approximately 58,000 square feet in 40 International Drive or the tenant that leases approximately 40,000 square feet in 14 International Drive does not extend its respective lease when it expires in fiscal 2021, a subsidiary of Griffin will enter into a master lease of the vacated space. The master lease would be guaranteed by Griffin and be in effect until either the vacated space is re-leased to a new tenant or the due date of the 2016 PUB Mortgage Loan, whichever occurs first. On December 10, 2015, Griffin received proceeds of $2,600 (the “Webster Earn-Out”) related to the mortgage (the “2015 Webster Mortgage”) obtained by one of its subsidiaries with Webster Bank, N.A (“Webster Bank”) on its property at 5220 Jaindl Boulevard (“5220 Jaindl”), an approximately 280,000 square foot industrial/warehouse building in the Lehigh Valley of Pennsylvania. The 2015 Webster Mortgage closed on September 1, 2015, at which time initial proceeds of $11,500 (before transaction costs) were received. At the time of the mortgage closing, Griffin had leased approximately 196,000 square feet of 5220 Jaindl. The Webster Earn-Out was subsequently received by Griffin when the tenant that leased that space exercised its option to lease the balance of the building. Griffin agreed that it would enter into a master lease with its subsidiary that owns 5220 Jaindl should the lease at 5220 Jaindl expire and not be renewed. The master lease would be co-terminus with the 2015 Webster Mortgage. The 2015 Webster Mortgage has a ten year term with monthly principal payments based on a twenty-five year amortization schedule. The interest rate for the 2015 Webster Mortgage is a floating rate of the one month LIBOR rate plus 1.65%. At the time the 2015 Webster Mortgage closed, Griffin also entered into an interest rate swap agreement with Webster Bank for a notional principal amount of $11,500 at inception to fix the interest rate at 3.77% on the initial funds advanced under the 2015 Webster Mortgage. At the time the Webster Earn-Out was received, Griffin entered into another interest rate swap agreement with Webster Bank for a notional principal amount of $2,600 to fix the interest rate on the Webster Earn-Out at 3.67%. The two interest rate swap agreements effectively fix the interest rate on the 2015 Webster Mortgage at 3.75% over the remainder of the mortgage loan’s ten year term. On September 13, 2016, Griffin and Webster Bank agreed to terms on a refinancing of the 2015 Webster Mortgage that would increase the loan amount up to an additional $13,000 and add 5210 Jaindl Boulevard (“5210 Jaindl”) to the mortgage collateral, subject to entry into definitive agreements. The refinanced loan would have a new ten year term with principal payments based on a twenty-five year amortization schedule, and interest at the one month LIBOR rate plus 1.70%. Griffin expects to enter into a new interest rate swap agreement with Webster Bank that, when combined with the existing interest rate swap agreements related to the 2015 Webster Mortgage, would fix the rate on the entire balance of the refinanced mortgage loan for its full term. There is no guarantee that the refinancing of the 2015 Webster Mortgage will be completed in accordance with the current terms, or at all. On December 11, 2015, Griffin received proceeds of $1,850 (the “First Niagara Earn-Out”) related to the mortgage obtained by two of its subsidiaries with First Niagara Bank (the “2025 First Niagara Mortgage”) on its properties at 4270 Fritch Drive (“4270 Fritch”) and 4275 Fritch Drive (“4275 Fritch”) in the Lehigh Valley. The 2025 First Niagara Mortgage closed on December 31, 2014, at which time proceeds of $10,891 (before transaction costs) were received, in addition to $8,859 used to refinance the existing mortgage on 4275 Fritch with First Niagara Bank. The 2025 First Niagara Mortgage is collateralized by 4270 Fritch, an approximately 303,000 square foot industrial/warehouse building, and 4275 Fritch, an adjacent approximately 228,000 square foot industrial/warehouse building in Lower Nazareth, Pennsylvania. At the time of the mortgage closing, approximately 201,000 square feet of 4270 Fritch was leased. The First Niagara Earn-Out was subsequently received by Griffin when the remaining vacant space of approximately 102,000 square feet was leased. Griffin agreed to enter into a master lease with its subsidiaries that own 4270 Fritch and 4275 Fritch in order to maintain a minimum net rent equal to the debt service on the 2025 First Niagara Mortgage. The master lease would be co-terminus with the 2025 First Niagara Mortgage. The 2025 First Niagara Mortgage has a ten year term with monthly principal payments based on a twenty-five year amortization schedule. The interest rate for the 2025 First Niagara Mortgage is a floating rate of the one month LIBOR rate plus 1.95%. At the time the 2025 First Niagara Mortgage closed, Griffin entered into an interest rate swap agreement with First Niagara Bank that, combined with an existing interest rate swap agreement with First Niagara Bank, effectively fixed the rate of the 2025 First Niagara Mortgage at 4.43% over the mortgage loan’s ten year term. At the time the First Niagara Earn-Out was received, Griffin entered into another interest rate swap agreement with First Niagara Bank for a notional principal amount of $1,850 to fix the interest rate on the First Niagara Earn-Out at 3.88%. The combination of the three interest rate swap agreements effectively fixes the interest rate on the 2025 First Niagara Mortgage at 4.39% over the remainder of the mortgage loan’s ten year term . On July 29, 2015, a subsidiary of Griffin closed on a new nonrecourse mortgage with 40|86 Mortgage Capital, Inc. (“the 40|86 Mortgage”) for $18,000. The 40|86 Mortgage refinanced an existing 5.73% nonrecourse mortgage which was due on August 1, 2015 and was collateralized by three industrial/warehouse buildings totaling approximately 392,000 square feet (“75 International,” “754 Rainbow” and “758 Rainbow”) in NE Tradeport. The 40|86 Mortgage is collateralized by the same three properties. Griffin received proceeds of $14,875 at closing (before transaction costs), which were applied to the payoff of the maturing 5.73% nonrecourse mortgage of $17,891. The remaining $3,125 of loan proceeds was placed in escrow at closing. In the fiscal 2015 fourth quarter, as per the terms of the 40|86 Mortgage, $2,500 of the escrowed proceeds was released to Griffin when the tenant that was leasing approximately 88,000 square feet on a month-to-month basis in 754 Rainbow extended into a long-term lease for that space and $25 of the escrowed proceeds was also released to Griffin upon renewal of insurance coverage on the mortgaged properties. The remaining $600 of mortgage proceeds deposited into escrow at closing was released to Griffin in the fiscal 2016 second quarter when tenant improvement work for the full building tenant in 758 Rainbow was completed. The 40|86 Mortgage has a fifteen year term with monthly principal payments based on a thirty year amortization schedule. The interest rate for the 40|86 Mortgage is 4.33%. As of August 31, 2016, Griffin was a party to several interest rate swap agreements related to its variable rate nonrecourse mortgages on certain of its real estate assets. Griffin accounts for its interest rate swap agreements as effective cash flow hedges (see Note 2). No ineffectiveness on the cash flow hedges was recognized as of August 31, 2016 and none is anticipated over the term of the agreements. Amounts in accumulated other comprehensive income (loss) will be reclassified into interest expense over the term of the swap agreements to achieve fixed rates on each mortgage. None of the interest rate swap agreements contain any credit risk related contingent features. In the 2016 and 2015 nine month periods, Griffin recognized losses (included in other comprehensive loss) before taxes of $2,898 and $812, respectively, on its interest rate swap agreements. As of August 31, 2016, $1,199 was expected to be reclassified over the next twelve months from accumulated other comprehensive loss to interest expense. As of August 31, 2016, the net fair value of Griffin’s interest rate swap agreements was $4,639 and is included in other liabilities on Griffin’s consolidated balance sheet. |
Revolving Credit Agreement
Revolving Credit Agreement | 9 Months Ended |
Aug. 31, 2016 | |
Revolving Credit Agreement | |
Revolving Credit Agreement | 6. Revolving Credit Agreement On July 22, 2016, Griffin entered into an amendment (the “Amendment”) to its revolving credit line (the “Webster Credit Line”) with Webster Bank, N.A. that extends the Webster Credit Line for two years through July 31, 2018. The Amendment increases the amount of the Webster Credit Line from $12,500 to $15,000 and enables Griffin to further extend the term of the Webster Credit Line for an additional year through July 31, 2019, provided there is no default at the time such extension is requested. Per the terms of the Amendment, the interest rate on the Webster Credit Line will remain at the one month LIBOR rate plus 2.75% and the collateral for the Webster Credit Line, Griffin’s properties in Griffin Center South, aggregating approximately 235,000 square feet, and an approximately 48,000 square foot single-story office building in Griffin Center, will remain the same. There have been no borrowings under the Webster Credit Line since its inception in fiscal 2013. However, the Webster Credit Line does secure certain unused standby letters of credit aggregating $4,117 that are related to Griffin's development activities. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Aug. 31, 2016 | |
Stockholders' Equity | |
Stockholders' Equity | 7. Stockholders’ Equity Per Share Results Basic and diluted per share results were based on the following: For the Three Months Ended For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Aug. 31, 2016 Aug. 31, 2015 Net (loss) income $ $ $ $ Weighted average shares outstanding for computation of basic per share results Incremental shares from assumed exercise of Griffin stock options (a) — — Adjusted weighted average shares for computation of diluted per share results (a) Incremental shares from the assumed exercise of Griffin stock options are not included in periods where the inclusion of such shares would be anti-dilutive. The incremental shares from the assumed exercise of stock options for the 2016 third quarter and 2016 nine month period would have been 23,000 and 2,000, respectively. Griffin Stock Option Plan Stock options are granted by Griffin under the Griffin Industrial Realty, Inc. 2009 Stock Option Plan (the “2009 Stock Option Plan”). Options granted under the 2009 Stock Option Plan may be either incentive stock options or non-qualified stock options issued at fair market value on the date approved by Griffin’s Compensation Committee. Vesting of all of Griffin's stock options is solely based upon service requirements and does not contain market or performance conditions. Stock options issued will expire ten years from the grant date. In accordance with the 2009 Stock Option Plan, stock options issued to non-employee directors upon their initial election to the board of directors are fully exercisable immediately upon the date of the option grant. Stock options issued to non-employee directors upon their re-election to the board of directors vest on the second anniversary from the date of grant. Stock options issued to employees vest in equal installments on the third, fourth and fifth anniversaries from the date of grant. None of the stock options outstanding at August 31, 2016 may be exercised as stock appreciation rights. The following options were granted by Griffin under the 2009 Stock Option Plan to Griffin employees and to non-employee directors either upon their initial election or their re-election to Griffin’s Board of Directors: For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Fair Value per Fair Value per Number of Option at Number of Option at Shares Grant Date Shares Grant Date Employees $ 7.51 - 11.65 - $ - Non-employee directors $ $ The fair values of all options granted were estimated as of the grant date using the Black-Scholes option-pricing model. Assumptions used in determining the fair value of the stock options granted in the 2016 and 2015 nine month periods were as follows: For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Expected volatility 32.9% to 41.1% 40.8% Risk free interest rates 1.2% to 1.5% 2.0% Expected option term (in years) 5 to 8.5 8.5 Annual dividend yield 0.9% 0.7% Number of option holders at August 31, 2016 Compensation expense and related tax benefits for stock options were as follows: For the Three Months Ended For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Aug. 31, 2016 Aug. 31, 2015 Net compensation expense $ $ $ $ Net related tax benefit $ $ $ $ For all periods presented, the forfeiture rate for directors was 0%, forfeiture rates for executives ranged from 17.9% to 22.6% and forfeiture rates for employees ranged from 38.3% to 41.1%. These rates were utilized based on the historical activity of the grantees. As of August 31, 2016, the unrecognized compensation expense related to nonvested stock options that will be recognized during future periods is as follows: Balance of Fiscal 2016 $ Fiscal 2017 $ Fiscal 2018 $ Fiscal 2019 $ Fiscal 2020 $ Fiscal 2021 $ A summary of the activity under the 2009 Griffin Stock Option Plan is as follows: For the Nine Months Ended August 31, 2016 August 31, 2015 Weighted Weighted Avg. Avg. Number of Exercise Number of Exercise Shares Price Shares Price Outstanding at beginning of period $ $ Granted $ $ Exercised — $ — $ Forfeited $ $ Outstanding at end of period $ $ Weighted Avg. Remaining Range of Exercise Prices for Outstanding at Weighted Avg. Contractual Life Total Intrinsic Vested and Nonvested Options August 31, 2016 Exercise Price (in years) Value $23.00 - $28.00 $ $ $28.00 - $32.00 $ $32.00 - $39.00 $ — $ $ Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax, is comprised of the following: For the Nine Months Ended Aug. 31, 2016 Unrealized gain Unrealized loss on on investment in cash flow hedges Centaur Media Total Balance November 30, 2015 $ $ $ Other comprehensive loss before reclassifications Amounts reclassified — Net activity for other comprehensive loss Balance August 31, 2016 $ $ $ For the Nine Months Ended Aug. 31, 2015 Unrealized gain Unrealized loss on on investment in cash flow hedges Centaur Media Total Balance November 30, 2014 $ $ $ Other comprehensive (loss) income before reclassifications Amounts reclassified — Net activity for other comprehensive loss Balance August 31, 2015 $ $ $ The components of other comprehensive loss are as follows: For the Three Months Ended August 31, 2016 August 31, 2015 Tax Tax (Expense) Net-of (Expense) Net-of Pre-Tax Benefit Tax Pre-Tax Benefit Tax Reclassifications included in net (loss) income: Loss on cash flow hedges (interest expense) $ $ $ $ $ $ Total reclassifications included in net (loss) income Mark to market adjustment on Centaur Media for a (decrease) increase in the foreign currency exchange rate Mark to market adjustment on Centaur Media for a (decrease) increase in fair value Decrease in fair value adjustments on Griffin’s cash flow hedges Total change in other comprehensive (loss) income Other comprehensive (loss) income $ $ $ $ $ $ For the Nine Months Ended August 31, 2016 August 31, 2015 Tax Tax (Expense) Net-of (Expense) Net-of Pre-Tax Benefit Tax Pre-Tax Benefit Tax Reclassifications included in net (loss) income: Loss on cash flow hedges (interest expense) $ $ $ $ $ $ Total reclassifications included in net (loss) income Mark to market adjustment on Centaur Media for a decrease in the foreign currency exchange rate Mark to market adjustment on Centaur Media for a (decrease) increase in fair value Decrease in fair value adjustments on Griffin’s cash flow hedges Total change in other comprehensive (loss) income Other comprehensive (loss) income $ $ $ $ $ $ Stock Repurchases On March 31, 2016, Griffin’s Board of Directors authorized a stock repurchase program whereby Griffin may repurchase up to $5,000 in outstanding shares of its common stock over a twelve month period in privately negotiated transactions. This repurchase program does not obligate Griffin to repurchase any specific number of shares, and may be suspended at any time at management’s discretion. On May 27, 2016, Griffin repurchased 60,000 shares of its outstanding common stock for approximately $1,951. Cash Dividend Griffin did not declare a cash dividend in the 2016 or 2015 nine month periods. During the 2016 first quarter, Griffin paid $1,546 for the cash dividend declared in the 2015 fourth quarter. During the 2015 first quarter, Griffin paid $1,030 for the cash dividend declared in the 2014 fourth quarter. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 9 Months Ended |
Aug. 31, 2016 | |
Supplemental Financial Statement Information | |
Supplemental Financial Statement Information | 8. Supplemental Financial Statement Information Other Assets Griffin's other assets are comprised of the following: Aug. 31, 2016 Nov. 30, 2015 Deferred rent receivable $ $ Deferred leasing costs Prepaid expenses Mortgage escrows Deferred financing costs Lease receivables from tenants Deposits on real estate acquisitions — Property and equipment, net Intangible assets, net Other Total other assets $ $ Accounts Payable and Accrued Liabilities Griffin's accounts payable and accrued liabilities are comprised of the following: Aug. 31, 2016 Nov. 30, 2015 Accrued construction costs and retainage $ $ Trade payables Accrued salaries, wages and other compensation Accrued interest payable Other Total accounts payable and accrued liabilities $ $ Other Liabilities Griffin's other liabilities are comprised of the following: Aug. 31, 2016 Nov. 30, 2015 Interest rate swap agreements $ $ Deferred compensation plan Prepaid rent from tenants Security deposits Conditional asset retirement obligations Other Total other liabilities $ $ Supplemental Cash Flow Information A decrease of $912 in the 2016 nine month period and an increase of $638 in the 2015 nine month period in Griffin’s Investment in Centaur Media reflect the mark to market adjustments of this investment and did not affect Griffin’s cash. Accounts payable and accrued liabilities related to additions to real estate assets increased by $293 and $1,256 in the 2016 nine month period and 2015 nine month period, respectively. Interest payments were as follows: For the Three Months Ended For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Aug. 31, 2016 Aug. 31, 2015 $ $ $ $ Income Taxes Griffin’s effective income tax benefit rate was 21.2% for the 2016 nine month period as compared to an income tax provision rate of 28.9% for the 2015 nine month period. The income tax benefit for the 2016 nine month period includes a charge of approximately $163 for the effect of a change in Connecticut tax law, effective for Griffin in fiscal 2016, whereby, prospectively, the usage of state net operating loss carryforwards will be limited to 50% of taxable income. Therefore, in the 2016 first quarter, Griffin decreased its expected realization of the tax benefit related to its Connecticut state net operating loss carryforwards. The effect of the charge reduced Griffin’s effective tax benefit rate by approximately 16.8%. The decrease of the realization rate is based on management's current projections of taxable income in Connecticut in future years that would generate income taxes in excess of capital based taxes. The effective tax rate in the 2016 nine month period is based on management’s projections of pretax results for the balance of the year. To the extent that actual results differ from current projections, the effective income tax rate may change. As of August 31, 2016, Griffin’s consolidated balance sheet includes a net deferred tax asset of $7,005. Although Griffin has incurred a cumulative pretax loss (excluding nonrecurring items) for the three fiscal years ended November 30, 2015, management has concluded that a valuation allowance against its net deferred tax assets is not required. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Aug. 31, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | 9. Commitments and Contingencies As of August 31, 2016, Griffin had committed purchase obligations of approximately $1,024, principally related to the development of Griffin’s real estate assets. On January 25, 2016, Griffin entered into an Option Purchase Agreement (the “Option Agreement”) whereby Griffin granted the buyer an exclusive option, which may be extended for up to three years upon payment of additional option fees, to purchase approximately 280 acres of land for approximately $7,700. The land subject to the Option Agreement is undeveloped and does not have any of the approvals that would be required for the buyer’s planned use of the land. A closing on the land sale contemplated by the Option Agreement is subject to several significant contingencies, including the buyer securing contracts under a competitive bidding process that would require changes in the use of the land and obtaining local and state approvals for that planned use. There is no guarantee that the sale of land as contemplated under the Option Agreement will be completed under its current terms, or at all. On March 23, 2016, Griffin entered into an Agreement of Sale and Purchase (the “East Allen Purchase Agreement”) to acquire, for a purchase price of $6,200, an approximately 31 acre site in East Allen Township, Northampton County, Pennsylvania for development of an industrial/warehouse building. A closing on the land acquisition contemplated by the East Allen Purchase Agreement is subject to several significant contingencies, including satisfactory completion of due diligence on the land that would be acquired. There is no guarantee that the land acquisition as contemplated under the East Allen Purchase Agreement will be completed under its current terms, or at all. On May 4, 2016, Griffin entered into an Agreement of Sale and Purchase, as amended (the “Macungie Purchase Agreement”), to acquire, for a purchase price of $1,800, an approximately 14 acre site in Upper Macungie Township, Lehigh County, Pennsylvania for development of an industrial/warehouse building. A closing on the land acquisition contemplated by the Macungie Purchase Agreement is subject to significant contingencies, including Griffin obtaining all governmental approvals for its planned development of the land that would be acquired. There is no guarantee that the land acquisition as contemplated under the Macungie Purchase Agreement will be completed under its current terms, or at all. As of August 31, 2016, Griffin is authorized to repurchase, from time to time, up to $3,049 in outstanding shares of its common stock through private transactions. The program to repurchase common stock expires on May 10, 2017, does not obligate Griffin to repurchase any specific number of shares, and may be suspended at any time at management’s discretion. Griffin is involved, as a defendant, in various litigation matters arising in the ordinary course of business. In the opinion of management, based on the advice of legal counsel, the ultimate liability, if any, with respect to these matters is not expected to be material, individually or in the aggregate, to Griffin's consolidated financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Aug. 31, 2016 | |
Subsequent Events. | |
Subsequent Events | 10. Subsequent Events In accordance with FASB ASC 855, “Subsequent Events,” Griffin has evaluated all events or transactions occurring after August 31, 2016, the balance sheet date, and noted that there have been no such events or transactions which would require recognition or disclosure in the consolidated financial statements as of and for the quarter ended August 31, 2016, other than the disclosures herein. On September 13, 2016, Griffin and Webster Bank agreed to terms on a refinancing of the 2015 Webster Mortgage that would increase the loan amount up to an additional $13,000 and add 5210 Jaindl to the mortgage collateral, subject to the entry into definitive agreements. The refinanced mortgage loan would have a new ten year term with principal payments based on a twenty-five year amortization schedule, and interest at the one month LIBOR rate plus 1.70%. Griffin expects to enter into a new interest rate swap agreement with Webster Bank that, when combined with the existing interest rate swap agreements related to the 2015 Webster Mortgage, would fix the rate on the entire balance of the refinanced mortgage loan for its full term. There is no guarantee that the refinancing of the 2015 Webster Mortgage will be completed in accordance with the current terms, or at all. On September 22, 2016, Griffin closed on the previously contracted sale of approximately 29 acres of an approximately 45 acre land parcel in Griffin Center in Bloomfield, Connecticut for approximately $3,750 and an estimated pretax gain of approximately $3,100. An additional approximately 15 acres of that land parcel, much of which is wetlands with very limited development potential, was donated to an affiliate of the purchaser at the time of the closing. Griffin retained approximately one acre, which is adjacent to other undeveloped land owned by Griffin. The net cash proceeds from the sale of approximately $3,500 were placed in escrow for the potential acquisition of a replacement property as part of a Section 1031 like-kind exchange for income tax purposes. If a replacement property is not purchased with the proceeds from this land sale within the time frame required under IRS regulations regarding Section 1031 like-kind exchanges, the proceeds placed in escrow would be returned to Griffin. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Aug. 31, 2016 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation Griffin Industrial Realty, Inc. ("Griffin") is a real estate business principally engaged in developing, managing and leasing industrial and, to a lesser extent, commercial properties. Periodically, Griffin may also sell certain portions of its undeveloped land that it has owned for an extended time period and the use of which is not consistent with Griffin's core development and leasing strategy. These financial statements have been prepared in conformity with the standards of accounting measurement set forth by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 270, “Interim Reporting” and in accordance with the accounting policies stated in Griffin’s audited consolidated financial statements for the fiscal year ended November 30, 2015 (“fiscal 2015”) included in Griffin’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 12, 2016. These financial statements should be read in conjunction with the Notes to Consolidated Financial Statements appearing in that report. All adjustments, comprising only normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of results for the interim periods, have been reflected and all intercompany transactions have been eliminated. The consolidated balance sheet data as of November 30, 2015 was derived from Griffin’s audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. Griffin regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, stock-based compensation expense, deferred income tax asset valuations, valuation of derivative instruments and the estimated costs to complete required offsite improvements related to land sold. Griffin bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by Griffin may differ materially and adversely from Griffin’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. As of August 31, 2016, Griffin was a party to several interest rate swap agreements to hedge its interest rate exposure. Griffin does not use derivatives for speculative purposes. Griffin applies FASB ASC 815, “Derivatives and Hedging,” (“ASC 815”) as amended, which establishes accounting and reporting standards for derivative instruments and hedging activities. ASC 815 requires Griffin to recognize all derivatives as either assets or liabilities on its consolidated balance sheet and measure those instruments at fair value. The changes in the fair values of the interest rate swap agreements are measured in accordance with ASC 815 and reflected in the carrying values of the interest rate swap agreements on Griffin’s consolidated balance sheet. The estimated fair values are based primarily on projected future swap rates. Griffin applies cash flow hedge accounting to its interest rate swap agreements that are designated as hedges of the variability of future cash flows from floating rate liabilities based on the benchmark interest rates. Changes in the fair values of Griffin’s interest rate swap agreements are recorded as components of accumulated other comprehensive income (loss) in stockholders’ equity to the extent they are effective. Any ineffective portions of the changes in fair values of these instruments would be recorded as interest expense or interest income. The results of operations for the three months ended August 31, 2016 (the “2016 third quarter”) and the nine months ended August 31, 2016 (the “2016 nine month period”) are not necessarily indicative of the results to be expected for the full year. The three and nine months ended August 31, 2015 are referred to herein as the “2015 third quarter” and “2015 nine month period,” respectively. Prior to May 13, 2015, Griffin was known as Griffin Land & Nurseries, Inc. On May 13, 2015, Griffin changed its name to better reflect its ongoing real estate business after Griffin sold the growing operations of its wholly-owned subsidiary in the landscape nursery business, Imperial Nurseries, Inc. (“Imperial”), to Monrovia Connecticut LLC (“Monrovia”) in the fiscal 2014 first quarter and entered into a long-term lease of Imperial’s Connecticut farm to Monrovia. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases,” which establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. The accounting applied by lessors under this Update is largely unchanged from that applied under current U.S. GAAP. Leases will be either classified as finance or operating, with classification affecting the pattern of expense recognition in the income statement. This Update also requires significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This Update will become effective for Griffin in fiscal 2020 using a modified restatement approach for leases in effect as of and after the date of adoption. Early adoption and practical expedients to measure the effect of adoption will also be allowed. Griffin is evaluating the impact that the application of this Update will have on its consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, “Financial Instruments - Overall,” which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This Update also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This Update eliminates the requirement for an entity to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. In addition, entities must assess the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. This Update will be effective for Griffin in fiscal 2019. Early adoption is permitted for certain provisions. Upon adoption, changes in the fair value of Griffin's available-for-sale securities will be recognized through net income. In August 2015, the FASB issued Accounting Standards Update No. 2015-15, “Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting,” which addresses line-of-credit arrangements that were omitted from Accounting Standards Update No. 2015-03 (see below). This Update states that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing those costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of this Update is not expected to have a material impact on Griffin's financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, “Interest-Imputation of Interest,” which requires that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct reduction from the carrying amount of the associated debt liability, consistent with debt discounts. This Update must be applied on a retrospective basis and will be effective for Griffin in fiscal 2017. Early adoption is permitted. The adoption of this Update is not expected to have a material impact on Griffin's financial position or results of operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. This standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Additionally, the Update requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. The Update permits the use of either the retrospective or cumulative effect transition method. This Update will be effective for Griffin in fiscal 2019 and early adoption is not permitted. Certain aspects of this new standard may affect revenue recognition of Griffin. Griffin is evaluating the impact that the application of this Update will have on its consolidated financial statements. |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
Fair Value | |
Schedule of financial assets and liabilities carried at fair value and measured at fair value on a recurring basis: | August 31, 2016 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Marketable equity securities $ $ — $ — Interest rate swap liabilities $ — $ $ — November 30, 2015 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Marketable equity securities $ $ — $ — Interest rate swap liabilities $ — $ $ — |
Schedule of carrying and estimated fair values of financial instruments | Fair Value August 31, 2016 November 30, 2015 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value Financial assets: Cash and cash equivalents 1 $ $ $ $ Marketable equity securities 1 Financial liabilities: Mortgage loans 2 $ $ $ $ Interest rate swap liabilities 2 |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
Real Estate Assets | |
Schedule of real estate assets, excluding those held for sale | Estimated Useful Lives Aug. 31, 2016 Nov. 30, 2015 Land $ $ Land improvements 10 to 30 years Buildings and improvements 10 to 40 years Tenant improvements Shorter of useful life or terms of related lease Machinery and equipment 3 to 20 years Construction in progress Development costs Accumulated depreciation $ $ |
Schedule of total depreciation expense and capitalized interest related to real estate assets | For the Three Months Ended For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Aug. 31, 2016 Aug. 31, 2015 Depreciation expense $ $ $ $ Capitalized interest $ $ $ $ |
Schedule of real estate held for sale | Aug. 31, 2016 Nov. 30, 2015 Land $ $ Development costs $ $ |
Investment in Centaur Media p21
Investment in Centaur Media plc (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
Investment in Centaur Media plc | |
Schedule of fair value, cost and unrealized gain of Griffin's investment in Centaur Media | Aug. 31, 2016 Nov. 30, 2015 Fair value $ $ Cost Unrealized gain $ $ |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
Mortgage Loans | |
Schedule of mortgage loans | Aug. 31, 2016 Nov. 30, 2015 Variable rate, due October 2, 2017 * $ $ Variable rate, due February 1, 2019 * Variable rate, due August 1, 2019 * — Variable rate, due January 27, 2020 * Variable rate, due January 2, 2025 * Variable rate, due September 1, 2025 * Variable rate, due May 1, 2026 * — 5.09%, due July 1, 2029 5.09%, due July 1, 2029 4.33%, due August 1, 2030 Total nonrecourse mortgage loans $ $ *Griffin entered into interest rate swap agreements effectively to fix the interest rates on these loans (see below). |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
Stockholders' Equity | |
Schedule of basic and diluted per share results | For the Three Months Ended For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Aug. 31, 2016 Aug. 31, 2015 Net (loss) income $ $ $ $ Weighted average shares outstanding for computation of basic per share results Incremental shares from assumed exercise of Griffin stock options (a) — — Adjusted weighted average shares for computation of diluted per share results (a) Incremental shares from the assumed exercise of Griffin stock options are not included in periods where the inclusion of such shares would be anti-dilutive. The incremental shares from the assumed exercise of stock options for the 2016 third quarter and 2016 nine month period would have been 23,000 and 2,000, respectively. |
Schedule Of Share Based Compensation Arrangement by Share Based Payment Award Options Grants In Period Grant Date Fair Value [Table TextBlock] | For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Fair Value per Fair Value per Number of Option at Number of Option at Shares Grant Date Shares Grant Date Employees $ 7.51 - 11.65 - $ - Non-employee directors $ $ |
Schedule of assumptions used in determining fair values of options | For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Expected volatility 32.9% to 41.1% 40.8% Risk free interest rates 1.2% to 1.5% 2.0% Expected option term (in years) 5 to 8.5 8.5 Annual dividend yield 0.9% 0.7% |
Schedule of option holders | Number of option holders at August 31, 2016 |
Schedule of compensation expense and related tax benefits for stock options | For the Three Months Ended For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Aug. 31, 2016 Aug. 31, 2015 Net compensation expense $ $ $ $ Net related tax benefit $ $ $ $ |
Schedule of unrecognized compensation expense related to nonvested stock options | Balance of Fiscal 2016 $ Fiscal 2017 $ Fiscal 2018 $ Fiscal 2019 $ Fiscal 2020 $ Fiscal 2021 $ |
Summary of the activity under the Griffin Stock Option Plan | For the Nine Months Ended August 31, 2016 August 31, 2015 Weighted Weighted Avg. Avg. Number of Exercise Number of Exercise Shares Price Shares Price Outstanding at beginning of period $ $ Granted $ $ Exercised — $ — $ Forfeited $ $ Outstanding at end of period $ $ |
Schedule of options by range of exercise prices | Weighted Avg. Remaining Range of Exercise Prices for Outstanding at Weighted Avg. Contractual Life Total Intrinsic Vested and Nonvested Options August 31, 2016 Exercise Price (in years) Value $23.00 - $28.00 $ $ $28.00 - $32.00 $ $32.00 - $39.00 $ — $ $ |
Schedule of accumulated other comprehensive loss | For the Nine Months Ended Aug. 31, 2016 Unrealized gain Unrealized loss on on investment in cash flow hedges Centaur Media Total Balance November 30, 2015 $ $ $ Other comprehensive loss before reclassifications Amounts reclassified — Net activity for other comprehensive loss Balance August 31, 2016 $ $ $ For the Nine Months Ended Aug. 31, 2015 Unrealized gain Unrealized loss on on investment in cash flow hedges Centaur Media Total Balance November 30, 2014 $ $ $ Other comprehensive (loss) income before reclassifications Amounts reclassified — Net activity for other comprehensive loss Balance August 31, 2015 $ $ $ |
Schedule of components of accumulated other comprehensive income (loss) | For the Three Months Ended August 31, 2016 August 31, 2015 Tax Tax (Expense) Net-of (Expense) Net-of Pre-Tax Benefit Tax Pre-Tax Benefit Tax Reclassifications included in net (loss) income: Loss on cash flow hedges (interest expense) $ $ $ $ $ $ Total reclassifications included in net (loss) income Mark to market adjustment on Centaur Media for a (decrease) increase in the foreign currency exchange rate Mark to market adjustment on Centaur Media for a (decrease) increase in fair value Decrease in fair value adjustments on Griffin’s cash flow hedges Total change in other comprehensive (loss) income Other comprehensive (loss) income $ $ $ $ $ $ For the Nine Months Ended August 31, 2016 August 31, 2015 Tax Tax (Expense) Net-of (Expense) Net-of Pre-Tax Benefit Tax Pre-Tax Benefit Tax Reclassifications included in net (loss) income: Loss on cash flow hedges (interest expense) $ $ $ $ $ $ Total reclassifications included in net (loss) income Mark to market adjustment on Centaur Media for a decrease in the foreign currency exchange rate Mark to market adjustment on Centaur Media for a (decrease) increase in fair value Decrease in fair value adjustments on Griffin’s cash flow hedges Total change in other comprehensive (loss) income Other comprehensive (loss) income $ $ $ $ $ $ |
Supplemental Financial Statem24
Supplemental Financial Statement Information (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
Supplemental Financial Statement Information | |
Schedule of other assets | Aug. 31, 2016 Nov. 30, 2015 Deferred rent receivable $ $ Deferred leasing costs Prepaid expenses Mortgage escrows Deferred financing costs Lease receivables from tenants Deposits on real estate acquisitions — Property and equipment, net Intangible assets, net Other Total other assets $ $ |
Schedule of accounts payable and accrued liabilities | Aug. 31, 2016 Nov. 30, 2015 Accrued construction costs and retainage $ $ Trade payables Accrued salaries, wages and other compensation Accrued interest payable Other Total accounts payable and accrued liabilities $ $ |
Schedule of other liabilities | Aug. 31, 2016 Nov. 30, 2015 Interest rate swap agreements $ $ Deferred compensation plan Prepaid rent from tenants Security deposits Conditional asset retirement obligations Other Total other liabilities $ $ |
Schedule of interest payments | For the Three Months Ended For the Nine Months Ended Aug. 31, 2016 Aug. 31, 2015 Aug. 31, 2016 Aug. 31, 2015 $ $ $ $ |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Nov. 30, 2015 |
Financial assets and liabilities carried at fair value and measured at fair value on a recurring basis: | ||
Marketable equity securities | $ 1,058 | $ 1,970 |
Interest rate swap agreements | 4,639 | 2,766 |
Recurring basis | Level 1 | ||
Financial assets and liabilities carried at fair value and measured at fair value on a recurring basis: | ||
Marketable equity securities | 1,058 | |
Interest rate swap agreements | 1,970 | |
Recurring basis | Level 2 | ||
Financial assets and liabilities carried at fair value and measured at fair value on a recurring basis: | ||
Interest rate swap agreements | $ 4,639 | $ 2,766 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Nov. 30, 2015 |
Financial assets: | ||
Available-for-sale securities | $ 1,058 | $ 1,970 |
Financial liabilities: | ||
Interest rate swap agreements | 4,639 | 2,766 |
Carrying Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 13,960 | 18,271 |
Available-for-sale securities | 1,058 | 1,970 |
Carrying Value | Level 2 | ||
Financial liabilities: | ||
Mortgage loans | 99,838 | 90,436 |
Interest rate swap agreements | 4,639 | 2,766 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 13,960 | 18,271 |
Available-for-sale securities | 1,058 | 1,970 |
Estimated Fair Value | Level 2 | ||
Financial liabilities: | ||
Mortgage loans | 101,349 | 91,406 |
Interest rate swap agreements | $ 4,639 | $ 2,766 |
Real Estate Assets (Details)
Real Estate Assets (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | 36 Months Ended | ||||
Aug. 31, 2016USD ($)a | May 31, 2016USD ($) | Aug. 31, 2015USD ($) | Nov. 30, 2013USD ($)a | May 31, 2016USD ($) | Aug. 31, 2016USD ($)a | Aug. 31, 2015USD ($) | Nov. 30, 2015USD ($) | Aug. 31, 2016USD ($)a | Aug. 31, 2016USD ($)a | |
Real Estate Assets | ||||||||||
Land | $ 17,989 | $ 17,989 | $ 18,157 | $ 17,989 | $ 17,989 | |||||
Land improvements | 27,486 | 27,486 | 22,440 | 27,486 | 27,486 | |||||
Buildings and improvements | 163,438 | 163,438 | 149,111 | 163,438 | 163,438 | |||||
Tenant improvements | 21,498 | 21,498 | 19,611 | 21,498 | 21,498 | |||||
Machinery and equipment | 11,022 | 11,022 | 11,810 | 11,022 | 11,022 | |||||
Construction in progress | 1,446 | 1,446 | 10,240 | 1,446 | 1,446 | |||||
Development costs | 16,156 | 16,156 | 15,870 | 16,156 | 16,156 | |||||
Real estate assets, gross | 259,035 | 259,035 | 247,239 | 259,035 | 259,035 | |||||
Accumulated depreciation | (85,040) | (85,040) | (80,784) | (85,040) | (85,040) | |||||
Real estate assets, net | 173,995 | 173,995 | 166,455 | 173,995 | 173,995 | |||||
Depreciation expense | 1,974 | $ 1,619 | 5,756 | $ 4,765 | ||||||
Capitalized interest | 57 | 290 | 274 | 657 | ||||||
Sales | ||||||||||
Revenue from property sales | 751 | 1,576 | 473 | 2,647 | ||||||
Proceeds from Sale of Real Estate Assets | 400 | |||||||||
Deferred revenue | 10,618 | 10,618 | 10,790 | 10,618 | 10,618 | |||||
Real estate held for sale | $ 1,587 | $ 1,587 | 1,418 | $ 1,587 | $ 1,587 | |||||
Windsor undeveloped land sale | ||||||||||
Sales | ||||||||||
Number of acres sold | a | 90 | |||||||||
Proceeds from sale of undeveloped land | $ 8,968 | |||||||||
Number of acres | a | 253 | 253 | 253 | 253 | ||||||
Increase in estimated project cost | $ 79 | |||||||||
Percentage of cost incurred on sale of land | 97.00% | 97.00% | 97.00% | 97.00% | ||||||
Percentage of total revenue and pretax gain on sale have been recognized | 97.00% | 97.00% | 97.00% | 97.00% | ||||||
Revenue from property sales | 1,176 | 2,247 | $ 8,729 | |||||||
Estimated total pre-tax gain | $ 6,765 | $ 6,686 | ||||||||
Pretax gain on land sale | $ 1,014 | $ 1,763 | 6,508 | |||||||
Deferred revenue | $ 239 | 239 | $ 239 | 239 | ||||||
Land. | ||||||||||
Sales | ||||||||||
Real estate held for sale | 246 | $ 246 | $ 78 | $ 246 | 246 | |||||
Land improvements | Minimum | ||||||||||
Real Estate Assets | ||||||||||
Estimated Useful Lives | 10 years | |||||||||
Land improvements | Maximum | ||||||||||
Real Estate Assets | ||||||||||
Estimated Useful Lives | 30 years | 30 years | ||||||||
Buildings and improvements | Minimum | ||||||||||
Real Estate Assets | ||||||||||
Estimated Useful Lives | 10 years | 10 years | ||||||||
Buildings and improvements | Maximum | ||||||||||
Real Estate Assets | ||||||||||
Estimated Useful Lives | 40 years | 40 years | ||||||||
Machinery and equipment. | Minimum | ||||||||||
Real Estate Assets | ||||||||||
Estimated Useful Lives | 3 years | 3 years | ||||||||
Machinery and equipment. | Maximum | ||||||||||
Real Estate Assets | ||||||||||
Estimated Useful Lives | 20 years | 20 years | ||||||||
Development costs | ||||||||||
Sales | ||||||||||
Real estate held for sale | $ 1,341 | $ 1,341 | $ 1,340 | $ 1,341 | $ 1,341 |
Investment - Centaur Media plc
Investment - Centaur Media plc (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Nov. 30, 2015 |
Investment in Centaur Media plc | ||
Shares of common stock held in Centaur Media | 1,952,462 | |
Investment in Centaur Media | ||
Fair value | $ 1,058 | $ 1,970 |
Cost | 1,014 | 1,014 |
Unrealized gain | $ 44 | $ 956 |
Mortgage Loan (Details)
Mortgage Loan (Details) $ in Thousands | Sep. 13, 2016USD ($) | Apr. 26, 2016USD ($)ft²building | Dec. 11, 2015USD ($)subsidiary | Sep. 01, 2015USD ($)ft²derivativesubsidiary | Jul. 29, 2015USD ($)ft²building | Dec. 31, 2014USD ($)ft²derivative | May 31, 2016USD ($) | Feb. 29, 2016USD ($) | Nov. 30, 2015USD ($)ft² | Aug. 31, 2016USD ($)item | Aug. 31, 2015USD ($) | Dec. 10, 2015USD ($) |
Long-Term Debt | ||||||||||||
Mortgage loans | $ 90,436 | $ 99,838 | ||||||||||
Debt disclosures | ||||||||||||
Proceeds from issuance of debt | 18,800 | $ 28,891 | ||||||||||
Ineffectiveness on cash flow hedges | 0 | |||||||||||
Anticipated ineffectiveness on cash flow hedges | 0 | |||||||||||
Net fair values of interest rate swap agreements included in other liabilities | 2,766 | 4,639 | ||||||||||
Other liabilities caption | ||||||||||||
Debt disclosures | ||||||||||||
Net fair values of interest rate swap agreements included in other liabilities | 4,639 | |||||||||||
Nonrecourse variable rate loans, due October 2, 2017 | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | 6,217 | 6,081 | ||||||||||
Nonrecourse variable rate loans, due February 1, 2019 | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | 10,610 | 10,389 | ||||||||||
Nonrecourse variable rate loans, due August 1, 2019 | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | $ 7,418 | 7,501 | ||||||||||
Debt disclosures | ||||||||||||
Number of buildings used as collateral | building | 4 | |||||||||||
Area of collateralized properties (in square feet) | ft² | 240,000 | |||||||||||
Nonrecourse variable rate loans, due January 27, 2020 | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | 3,729 | 3,637 | ||||||||||
Nonrecourse variable rate loans, due January 2, 2025 | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | 19,385 | 20,869 | ||||||||||
Debt disclosures | ||||||||||||
Proceeds from issuance of debt | $ 10,891 | |||||||||||
Term of debt | 10 years | |||||||||||
Amortization period of debt | 25 years | |||||||||||
Number of subsidiaries which are party to the mortgage | subsidiary | 2 | |||||||||||
Debt amount refinanced | $ 8,859 | |||||||||||
Nonrecourse variable rate loans, due January 2, 2025 | Location 1 | ||||||||||||
Debt disclosures | ||||||||||||
Area of collateralized properties (in square feet) | ft² | 303,000 | |||||||||||
Leased space | ft² | 201,000 | |||||||||||
Nonrecourse variable rate loans, due January 2, 2025 | Location 2 | ||||||||||||
Debt disclosures | ||||||||||||
Area of collateralized properties (in square feet) | ft² | 228,000 | |||||||||||
Nonrecourse variable rate mortgage, due September 1, 2025 | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | 11,457 | 13,809 | ||||||||||
Debt disclosures | ||||||||||||
Area of collateralized properties (in square feet) | ft² | 280,000 | |||||||||||
Term of debt | 10 years | |||||||||||
Amortization period of debt | 25 years | |||||||||||
Leased space | ft² | 196,000 | |||||||||||
Number of subsidiaries which are party to the mortgage | subsidiary | 1 | |||||||||||
Nonrecourse Variable Rate Mortgage, Refinanced, Due In September 2026 [Member] | Subsequent events | ||||||||||||
Debt disclosures | ||||||||||||
Term of debt | 10 years | |||||||||||
Amortization period of debt | 25 years | |||||||||||
Loan amount increase | $ 13,000 | |||||||||||
Nonrecourse Variable Rate Mortgage Due On 1 May 2026 [Member] | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | 14,269 | |||||||||||
Debt disclosures | ||||||||||||
New mortgage | $ 14,350 | |||||||||||
Number of buildings used as collateral | building | 4 | |||||||||||
Proceeds from issuance of debt | $ 6,932 | |||||||||||
Term of debt | 10 years | |||||||||||
Amortization period of debt | 25 years | |||||||||||
Additional area serving as collateral | ft² | 98,000 | |||||||||||
Nonrecourse Variable Rate Mortgage Due On 1 May 2026 [Member] | Location 1 | ||||||||||||
Debt disclosures | ||||||||||||
Leased space | ft² | 58,000 | |||||||||||
Nonrecourse Variable Rate Mortgage Due On 1 May 2026 [Member] | Location 2 | ||||||||||||
Debt disclosures | ||||||||||||
Leased space | ft² | 40,000 | |||||||||||
5.09%, due July 1, 2029 GCD mortgage loan | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | $ 7,385 | $ 7,099 | ||||||||||
Interest rate (as a percent) | 5.09% | 5.09% | ||||||||||
5.09%, due July 1, 2029 TD mortgage Loan | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | $ 6,226 | $ 5,984 | ||||||||||
Interest rate (as a percent) | 5.09% | 5.09% | ||||||||||
4.33%, due August 1, 2030 mortgage loan | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | $ 17,926 | $ 17,701 | ||||||||||
Interest rate (as a percent) | 4.33% | 4.33% | ||||||||||
Debt disclosures | ||||||||||||
New mortgage | $ 18,000 | |||||||||||
Number of buildings used as collateral | building | 3 | |||||||||||
Proceeds from issuance of debt | $ 14,875 | |||||||||||
Term of debt | 15 years | |||||||||||
Amortization period of debt | 30 years | |||||||||||
Nonrecourse mortgages: 5.73%, due August 1, 2015 | ||||||||||||
Long-Term Debt | ||||||||||||
Mortgage loans | $ 17,891 | |||||||||||
Interest rate (as a percent) | 5.73% | |||||||||||
Debt disclosures | ||||||||||||
Number of buildings used as collateral | building | 3 | |||||||||||
Area of collateralized properties (in square feet) | ft² | 392,000 | |||||||||||
Interest rate swap agreement | ||||||||||||
Debt disclosures | ||||||||||||
Number of agreements containing credit risk related contingent features | item | 0 | |||||||||||
Recognized net losses (included in other comprehensive loss), before taxes, on interest rate swap agreements | $ 2,898 | $ 812 | ||||||||||
Loss expected to be reclassified over next twelve months from accumulated other comprehensive loss to interest expense | $ 1,199 | |||||||||||
Interest rate swap agreement | Nonrecourse variable rate loans, due August 1, 2019 | ||||||||||||
Debt disclosures | ||||||||||||
Fixed interest rate pursuant to interest rate swap agreement (as a percent) | 6.58% | |||||||||||
Interest rate swap agreement | Nonrecourse variable rate loans, due January 2, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Fixed interest rate pursuant to interest rate swap agreement (as a percent) | 4.39% | |||||||||||
Number of interest rate swap derivatives | derivative | 3 | |||||||||||
Interest rate swap agreement | Nonrecourse variable rate mortgage, due September 1, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Fixed interest rate pursuant to interest rate swap agreement (as a percent) | 3.75% | |||||||||||
Number of interest rate swap derivatives | derivative | 2 | |||||||||||
Interest rate swap agreement | Nonrecourse Variable Rate Mortgage Due On 1 May 2026 [Member] | ||||||||||||
Debt disclosures | ||||||||||||
Fixed interest rate pursuant to interest rate swap agreement (as a percent) | 4.17% | |||||||||||
Nonrecourse Mortgage, Proceeds Excluding Contingent Portion [Member] | Nonrecourse variable rate mortgage, due September 1, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Proceeds from issuance of debt | $ 11,500 | |||||||||||
Nonrecourse Mortgage, Proceeds Excluding Contingent Portion [Member] | Interest rate swap agreement | Nonrecourse variable rate loans, due January 2, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Fixed interest rate pursuant to interest rate swap agreement (as a percent) | 4.43% | |||||||||||
Nonrecourse Mortgage, Proceeds Excluding Contingent Portion [Member] | Interest rate swap agreement | Nonrecourse variable rate mortgage, due September 1, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Fixed interest rate pursuant to interest rate swap agreement (as a percent) | 3.77% | |||||||||||
Notional amount of interest rate swap agreement | $ 11,500 | |||||||||||
Nonrecourse Mortgage, Contingent Portion [Member] | Nonrecourse variable rate loans, due January 2, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Proceeds held in escrow | $ 1,850 | |||||||||||
Nonrecourse Mortgage, Contingent Portion [Member] | Nonrecourse variable rate loans, due January 2, 2025 | Location 1 | ||||||||||||
Debt disclosures | ||||||||||||
Leased space | ft² | 102,000 | |||||||||||
Nonrecourse Mortgage, Contingent Portion [Member] | Nonrecourse variable rate mortgage, due September 1, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Proceeds held in escrow | $ 2,600 | |||||||||||
Nonrecourse Mortgage, Contingent Portion [Member] | 4.33%, due August 1, 2030 mortgage loan | ||||||||||||
Debt disclosures | ||||||||||||
Proceeds from issuance of debt | $ 25 | $ 600 | $ 25 | $ 2,500 | ||||||||
Leased space | ft² | 88,000 | |||||||||||
Proceeds held in escrow | $ 3,125 | |||||||||||
Nonrecourse Mortgage, Contingent Portion [Member] | Interest rate swap agreement | Nonrecourse variable rate loans, due January 2, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Fixed interest rate pursuant to interest rate swap agreement (as a percent) | 3.88% | |||||||||||
Notional amount of interest rate swap agreement | $ 1,850 | |||||||||||
Nonrecourse Mortgage, Contingent Portion [Member] | Interest rate swap agreement | Nonrecourse variable rate mortgage, due September 1, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Fixed interest rate pursuant to interest rate swap agreement (as a percent) | 3.67% | |||||||||||
Notional amount of interest rate swap agreement | $ 2,600 | |||||||||||
LIBOR | Nonrecourse variable rate loans, due August 1, 2019 | ||||||||||||
Debt disclosures | ||||||||||||
Variable interest rate margin (as a percent) | 3.08% | |||||||||||
LIBOR | Nonrecourse variable rate loans, due January 2, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Variable interest rate margin (as a percent) | 1.95% | |||||||||||
LIBOR | Nonrecourse variable rate mortgage, due September 1, 2025 | ||||||||||||
Debt disclosures | ||||||||||||
Variable interest rate margin (as a percent) | 1.65% | |||||||||||
LIBOR | Nonrecourse Variable Rate Mortgage, Refinanced, Due In September 2026 [Member] | Subsequent events | ||||||||||||
Debt disclosures | ||||||||||||
Variable interest rate margin (as a percent) | 1.70% | |||||||||||
LIBOR | Nonrecourse Variable Rate Mortgage Due On 1 May 2026 [Member] | ||||||||||||
Debt disclosures | ||||||||||||
Variable interest rate margin (as a percent) | 2.00% |
Revolving Credit Agreement (Det
Revolving Credit Agreement (Details) - Webster Credit Line | Jul. 22, 2016USD ($) | Aug. 31, 2016USD ($)ft² | Jul. 21, 2016USD ($) |
Revolving credit agreement | |||
Maximum borrowing capacity | $ 15,000,000 | $ 12,500,000 | |
Extension period | 2 years | ||
Proceeds from Lines of Credit | $ 0 | ||
Standby letters of credit aggregate amount | $ 4,117,000 | ||
Griffin Center South, Bloomfield, CT | |||
Revolving credit agreement | |||
Area of collateralized properties (in square feet) | ft² | 235,000 | ||
Single-story office building in Griffin Center | |||
Revolving credit agreement | |||
Area of collateralized properties (in square feet) | ft² | 48,000 | ||
LIBOR | |||
Revolving credit agreement | |||
Variable interest rate margin (as a percent) | 2.75% |
Stockholders' Equity - Per Shar
Stockholders' Equity - Per Share Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Per Share Results | ||||
Net loss | $ (49) | $ 1,203 | $ (763) | $ 261 |
Weighted average shares outstanding for computation of basic per share results | 5,093,000 | 5,153,000 | 5,132,000 | 5,151,000 |
Incremental shares from assumed exercise of Griffin stock options | 23,000 | 21,000 | ||
Adjusted weighted average shares for computation of diluted per share results | 5,093,000 | 5,176,000 | 5,132,000 | 5,172,000 |
Incremental shares from assumed exercise of stock options excluded due to anti-dilutive effect | 23,000 | 2,000 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Grants, Activity And Expense (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016USD ($)individual$ / sharesshares | Aug. 31, 2015USD ($)$ / sharesshares | Aug. 31, 2016USD ($)individual$ / sharesshares | Aug. 31, 2015USD ($)$ / sharesshares | |
Other Disclosures | ||||
Number of option holders | individual | 31 | 31 | ||
Compensation expense for stock options | ||||
Compensation expense (benefit) | $ | $ 71 | $ 30 | $ 185 | $ 192 |
Related tax benefit (expense) | $ | 17 | $ 8 | 41 | $ 49 |
Unrecognized compensation expense related to non-vested stock options that will be recognized during future periods | ||||
Balance of fiscal 2016 | $ | 82 | 82 | ||
Fiscal 2017 | $ | 311 | 311 | ||
Fiscal 2018 | $ | 279 | 279 | ||
Fiscal 2019 | $ | 198 | 198 | ||
Fiscal 2020 | $ | 102 | 102 | ||
Fiscal 2021 | $ | $ 28 | $ 28 | ||
Non-employee directors | ||||
2009 Stock Option Plan | ||||
Fair values of stock options granted (in dollars per share) | $ / shares | $ 11.30 | |||
2009 Stock Option Plan | ||||
2009 Stock Option Plan | ||||
Expiration term | 10 years | |||
Granted (in shares) | 109,859 | 8,282 | ||
Assumptions used in determining the fair value of the stock options granted | ||||
Expected volatility (as a percent) | 40.80% | |||
Range of risk free interest rate (as a percent) | 2.00% | |||
Expected option term (in years) | 8 years 6 months | |||
Annual dividend yield (as a percent) | 0.90% | 0.70% | ||
Activity under the 2009 Stock Option Plan | ||||
Outstanding at beginning of period (in shares) | 225,727 | 222,001 | ||
Granted (in shares) | 109,859 | 8,282 | ||
Exercised (in shares) | (3,134) | |||
Forfeited (in shares) | (11,040) | (1,422) | ||
Outstanding at end of period (in shares) | 324,546 | 225,727 | 324,546 | 225,727 |
Weighted Avg. Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 30.47 | $ 30.35 | ||
Granted (in dollars per share) | $ / shares | 26.83 | 31.38 | ||
Exercised (in dollars per share) | $ / shares | 25.53 | |||
Forfeited (in dollars per share) | $ / shares | 30.73 | 28.12 | ||
Outstanding at end of period (in dollars per share) | $ / shares | $ 29.23 | $ 30.47 | $ 29.23 | $ 30.47 |
2009 Stock Option Plan | Non-employee directors | ||||
2009 Stock Option Plan | ||||
Granted (in shares) | 8,409 | 8,282 | ||
Fair values of stock options granted (in dollars per share) | $ / shares | $ 14.39 | |||
Compensation expense for stock options | ||||
Forfeiture rates (as a percent) | 0.00% | 0.00% | ||
Activity under the 2009 Stock Option Plan | ||||
Granted (in shares) | 8,409 | 8,282 | ||
2009 Stock Option Plan | Employee [Member] | ||||
2009 Stock Option Plan | ||||
Granted (in shares) | 101,450 | |||
Activity under the 2009 Stock Option Plan | ||||
Granted (in shares) | 101,450 | |||
Minimum | 2009 Stock Option Plan | ||||
Assumptions used in determining the fair value of the stock options granted | ||||
Expected volatility (as a percent) | 32.90% | |||
Range of risk free interest rate (as a percent) | 1.20% | |||
Expected option term (in years) | 5 years | |||
Minimum | 2009 Stock Option Plan | Executives | ||||
Compensation expense for stock options | ||||
Forfeiture rates (as a percent) | 17.90% | 17.90% | ||
Minimum | 2009 Stock Option Plan | Employee [Member] | ||||
2009 Stock Option Plan | ||||
Fair values of stock options granted (in dollars per share) | $ / shares | $ 7.51 | |||
Compensation expense for stock options | ||||
Forfeiture rates (as a percent) | 38.30% | 38.30% | ||
Maximum | 2009 Stock Option Plan | ||||
Assumptions used in determining the fair value of the stock options granted | ||||
Expected volatility (as a percent) | 41.10% | |||
Range of risk free interest rate (as a percent) | 1.50% | |||
Expected option term (in years) | 8 years 6 months | |||
Maximum | 2009 Stock Option Plan | Executives | ||||
Compensation expense for stock options | ||||
Forfeiture rates (as a percent) | 22.60% | 22.60% | ||
Maximum | 2009 Stock Option Plan | Employee [Member] | ||||
2009 Stock Option Plan | ||||
Fair values of stock options granted (in dollars per share) | $ / shares | $ 11.65 | |||
Compensation expense for stock options | ||||
Forfeiture rates (as a percent) | 41.10% | 41.10% |
Stockholders' Equity - Range Of
Stockholders' Equity - Range Of Exercise Prices (Details) - 2009 Stock Option Plan $ / shares in Units, $ in Thousands | 9 Months Ended |
Aug. 31, 2016USD ($)$ / sharesshares | |
2009 Stock Option Plan | |
Outstanding at ending of the year (in shares) | shares | 324,546 |
Weighted Avg. Exercise Price (in dollars per share) | $ 29.23 |
Weighted Avg. Remaining Contractual Life | 5 years 9 months 18 days |
Total Intrinsic Value | $ | $ 984 |
$23.00-$28.00 | |
2009 Stock Option Plan | |
Exercise prices, low end of range (in dollars per share) | $ 23 |
Exercise prices, high end of range (in dollars per share) | $ 28 |
Outstanding at ending of the year (in shares) | shares | 124,793 |
Weighted Avg. Exercise Price (in dollars per share) | $ 26.67 |
Weighted Avg. Remaining Contractual Life | 9 years 2 months 12 days |
Total Intrinsic Value | $ | $ 644 |
$28.00-$32.00 | |
2009 Stock Option Plan | |
Exercise prices, low end of range (in dollars per share) | $ 28 |
Exercise prices, high end of range (in dollars per share) | $ 32 |
Outstanding at ending of the year (in shares) | shares | 116,678 |
Weighted Avg. Exercise Price (in dollars per share) | $ 28.92 |
Weighted Avg. Remaining Contractual Life | 4 years 9 months 18 days |
Total Intrinsic Value | $ | $ 340 |
$32.00-$39.00 | |
2009 Stock Option Plan | |
Exercise prices, low end of range (in dollars per share) | $ 32 |
Exercise prices, high end of range (in dollars per share) | $ 39 |
Outstanding at ending of the year (in shares) | shares | 83,075 |
Weighted Avg. Exercise Price (in dollars per share) | $ 33.52 |
Weighted Avg. Remaining Contractual Life | 2 years 1 month 6 days |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Change in accumulated other comprehensive loss, net of tax | ||||
Balance at beginning of period | $ 94,809 | $ 95,879 | ||
Other comprehensive (loss) income before reclassifications | $ (964) | $ 69 | (2,418) | (98) |
Reclassifications included in net (loss) income | 219 | 189 | 646 | 557 |
Total other comprehensive (loss) income, net of tax | (745) | 258 | (1,772) | 459 |
Balance at end of period | 90,508 | 96,871 | 90,508 | 96,871 |
Accumulated Other Comprehensive Income (Loss) | ||||
Change in accumulated other comprehensive loss, net of tax | ||||
Balance at beginning of period | (1,085) | (835) | ||
Other comprehensive (loss) income before reclassifications | (2,418) | (98) | ||
Reclassifications included in net (loss) income | 646 | 557 | ||
Total other comprehensive (loss) income, net of tax | (745) | 258 | (1,772) | 459 |
Balance at end of period | (2,857) | (376) | (2,857) | (376) |
Unrealized loss on cash flow hedges | ||||
Change in accumulated other comprehensive loss, net of tax | ||||
Balance at beginning of period | (1,744) | (1,464) | ||
Other comprehensive (loss) income before reclassifications | (710) | (54) | (1,825) | (512) |
Reclassifications included in net (loss) income | 646 | 557 | ||
Total other comprehensive (loss) income, net of tax | (1,179) | 45 | ||
Balance at end of period | (2,923) | (1,419) | (2,923) | (1,419) |
Accumulated Net Unrealized Gain From Change In Fair Value And Foreign Currency [Member] | ||||
Change in accumulated other comprehensive loss, net of tax | ||||
Balance at beginning of period | 659 | 629 | ||
Other comprehensive (loss) income before reclassifications | (593) | 414 | ||
Total other comprehensive (loss) income, net of tax | (593) | 414 | ||
Balance at end of period | $ 66 | $ 1,043 | $ 66 | $ 1,043 |
Stockholders' Equity - AOCI T2
Stockholders' Equity - AOCI T2 rows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Accumulated other comprehensive loss | ||||
Reclassifications, before tax | $ (348) | $ (300) | $ (1,025) | $ (884) |
Reclassifications, tax (expense) benefit | (129) | (111) | (379) | (327) |
Reclassifications, net of tax | (219) | (189) | (646) | (557) |
Other changes, before reclassifications, before tax | (1,520) | 104 | (3,810) | (174) |
Other changes, before reclassifications, tax (expense) benefit | 556 | (35) | 1,392 | 76 |
Total other changes before reclassifications, net of tax | (964) | 69 | (2,418) | (98) |
Total other comprehensive (loss) income, before tax | (2,785) | 710 | ||
Total other comprehensive (loss) income, tax | 1,013 | (251) | ||
Total other comprehensive (loss) income, net of tax | (745) | 258 | (1,772) | 459 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive loss | ||||
Reclassifications, net of tax | (646) | (557) | ||
Total other changes before reclassifications, net of tax | (2,418) | (98) | ||
Total other comprehensive (loss) income, before tax | (1,172) | 404 | ||
Total other comprehensive (loss) income, tax | 427 | (146) | ||
Total other comprehensive (loss) income, net of tax | (745) | 258 | (1,772) | 459 |
Mark-to-market foreign currency adjustment | ||||
Accumulated other comprehensive loss | ||||
Other changes, before reclassifications, before tax | (108) | 10 | (181) | (39) |
Other changes, before reclassifications, tax (expense) benefit | 37 | (4) | 63 | 13 |
Total other changes before reclassifications, net of tax | (71) | 6 | (118) | (26) |
Mark-to-market fair value adjustment | ||||
Accumulated other comprehensive loss | ||||
Other changes, before reclassifications, before tax | (283) | 179 | (731) | 677 |
Other changes, before reclassifications, tax (expense) benefit | 100 | (62) | 256 | (237) |
Total other changes before reclassifications, net of tax | (183) | 117 | (475) | 440 |
Unrealized loss on cash flow hedges | ||||
Accumulated other comprehensive loss | ||||
Reclassifications, net of tax | (646) | (557) | ||
Other changes, before reclassifications, before tax | (1,129) | (85) | (2,898) | (812) |
Other changes, before reclassifications, tax (expense) benefit | 419 | 31 | 1,073 | 300 |
Total other changes before reclassifications, net of tax | (710) | (54) | (1,825) | (512) |
Total other comprehensive (loss) income, net of tax | (1,179) | 45 | ||
Unrealized loss on cash flow hedges | Interest Expense [Member] | ||||
Accumulated other comprehensive loss | ||||
Reclassifications, before tax | (348) | (300) | (1,025) | (884) |
Reclassifications, tax (expense) benefit | (129) | (111) | (379) | (327) |
Reclassifications, net of tax | $ (219) | $ (189) | $ (646) | $ (557) |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchases, Cash Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | May 27, 2016 | Feb. 29, 2016 | Feb. 28, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Mar. 31, 2016 |
Stock Repurchases | ||||||
Stock repurchased | $ 1,951 | |||||
Cash Dividend | ||||||
Cash dividend paid | $ 1,546 | $ 1,030 | $ 1,546 | $ 1,030 | ||
Cash dividends declared (in dollars per share) | $ 0 | $ 0 | ||||
Common Stock | ||||||
Stock Repurchases | ||||||
Stock repurchase program, authorized amount | $ 5,000 | |||||
Stock repurchased (in shares) | 60,000 | |||||
Stock repurchased | $ 1,951 |
Supplemental Financial Statem37
Supplemental Financial Statement Information - Other And Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Nov. 30, 2015 |
Other Assets | ||
Deferred rent receivable | $ 4,485 | $ 4,087 |
Deferred leasing costs | 4,213 | 4,376 |
Prepaid expenses | 3,566 | 2,157 |
Mortgage escrows | 1,603 | 2,229 |
Deferred financing costs | 1,476 | 1,264 |
Lease receivables from tenants | 978 | 401 |
Deposits on real estate acquisitions | 450 | |
Property and equipment, net | 283 | 221 |
Intangible assets, net | 253 | 305 |
Other | 621 | 309 |
Total other assets | $ 17,928 | $ 15,349 |
Supplemental Financial Statem38
Supplemental Financial Statement Information - Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Nov. 30, 2015 |
Supplemental Financial Statement Information | ||
Deferred revenue | $ 10,618 | $ 10,790 |
Accounts Payable and Accrued Liabilities | ||
Accrued construction costs and retainage | 1,571 | 1,278 |
Trade payables | 528 | 422 |
Accrued salaries, wages and other compensation | 513 | 615 |
Accrued interest payable | 394 | 361 |
Other | 981 | 672 |
Total accounts payable and accrued liabilities | 3,987 | 3,348 |
Other Liabilities | ||
Interest rate swap agreements | 4,639 | 2,766 |
Deferred compensation plan | 4,223 | 3,981 |
Prepaid rent from tenants | 979 | 944 |
Security deposits | 384 | 286 |
Conditional asset retirement obligations | 288 | 288 |
Other | 69 | 107 |
Total other liabilities | $ 10,582 | $ 8,372 |
Supplemental Financial Statem39
Supplemental Financial Statement Information - Cash flow, etc. (Details) - USD ($) $ in Thousands | May 27, 2016 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Nov. 30, 2015 |
Supplemental Cash Flow Information | ||||||
Increase in value of available-for-sale securities: Investment in Centaur Media Plc | $ (912) | $ 638 | ||||
Increase (decrease) in accounts payable and accrued liabilities related to additions to real estate assets | 293 | 1,256 | ||||
Interest paid | ||||||
Interest payments | $ 1,098 | $ 1,070 | $ 3,334 | $ 3,119 | ||
Income Taxes | ||||||
Effective income tax rate (as a percent) | 21.20% | 28.90% | ||||
Effect of change in state law | $ 163 | |||||
Reduction in effective tax rate, as a percent | 16.80% | |||||
Deferred income taxes | $ 7,005 | $ 7,005 | $ 5,838 | |||
Number of years of cumulative pretax losses | 3 years | |||||
Common Stock | ||||||
Supplemental Cash Flow Information | ||||||
Stock repurchased (in shares) | 60,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Jan. 25, 2016USD ($)a | Aug. 31, 2016USD ($) | May 04, 2016USD ($)a | Mar. 23, 2016USD ($)a |
Commitments and Contingencies | ||||
Common stock repurchase program, remaining authorized amount | $ 3,049 | |||
Purchase agreement | ||||
Commitments and Contingencies | ||||
Purchase obligations | $ 1,800 | $ 6,200 | ||
Number of acres | a | 14 | 31 | ||
Undeveloped Land | Agreement to sell | ||||
Commitments and Contingencies | ||||
Purchase obligations | $ 7,700 | |||
Number of acres | a | 280 | |||
Agreement Term of Extension | 3 years | |||
Committed purchase obligations | ||||
Commitments and Contingencies | ||||
Purchase obligations | $ 1,024 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Sep. 22, 2016USD ($)a | Sep. 13, 2016USD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) |
Subsequent events | ||||
Estimated pretax gain on sale | $ 280 | $ 2,163 | ||
Subsequent events | ||||
Subsequent events | ||||
Number of acres sold | a | 29 | |||
Area of Land | a | 45 | |||
Sale price | $ 3,750 | |||
Estimated pretax gain on sale | $ 3,100 | |||
Acres donated | a | 15 | |||
Acres retained | a | 1 | |||
Proceeds placed in escrow | $ 3,500 | |||
Subsequent events | Nonrecourse Variable Rate Mortgage, Refinanced, Due In September 2026 [Member] | ||||
Subsequent events | ||||
Loan amount increase | $ 13,000 | |||
Term of debt | 10 years | |||
Amortization period of debt | 25 years | |||
Subsequent events | Nonrecourse Variable Rate Mortgage, Refinanced, Due In September 2026 [Member] | LIBOR | ||||
Subsequent events | ||||
Variable interest rate (as a percent) | 1.70% |