Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2014 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' |
Condensed Consolidating Financial Information | ' |
Note 13 – Condensed Consolidating Financial Information |
During October 2013, we issued $275.0 million aggregate principal amount of 4.50% senior notes at 99.038% of face value in a private placement. The senior notes are jointly and severally, fully and unconditionally guaranteed by DCT and certain of the Company’s wholly owned subsidiaries. During May 2014, we completed the exchange of these notes for SEC registered notes having substantially identical terms. |
The following tables present the condensed consolidating financial information for (a) DCT Industrial Trust, Inc. (“Parent” and a guarantor), (b) DCT Industrial Operating Partnership LP (“Subsidiary Issuer”), (c) on a combined basis, the guarantor subsidiaries (“Subsidiary Guarantors”), and (d) on a combined basis, the non-guarantor subsidiaries (“Non-Guarantor Subsidiaries”). Additional columns present consolidating adjustments and consolidated totals as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013. |
As the guarantees were made in connection with our note offering in October 2013, the Subsidiary Guarantors’ condensed consolidating information as of December 31, 2013 and for the period ended September 30, 2013 is presented based on the guarantors as of December 31, 2013. Subsequent to December 31, 2013, certain of our subsidiaries may be released from their guarantees, primarily due to the disposition of properties. These changes in guarantors are reflected prospectively. |
Separate financial statements of the Subsidiary Guarantors are not presented because the guarantee by each 100% owned Subsidiary Guarantor is full and unconditional, joint and several. Furthermore, there are no significant legal restrictions on the Parent’s ability to obtain funds from its subsidiaries by dividend or loan. |
Investments in consolidated subsidiaries are accounted for using the equity method for purposes of the combined presentation. The consolidating adjustments principally relate to the elimination of investments in consolidated subsidiaries and intercompany balances and transactions. |
Condensed Consolidated Balance Sheets |
September 30, 2014 |
(in thousands) |
(unaudited) |
|
| Parent | | | Subsidiary | | | Subsidiary | | | Non-Guarantor | | | Consolidating | | | Total | |
Issuer | Guarantors | Subsidiaries | Adjustments | Consolidated |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | |
Land | $ | - | | | $ | - | | | $ | 766,443 | | | $ | 151,184 | | | $ | - | | | $ | 917,627 | |
Buildings and improvements | | - | | | | - | | | | 2,246,895 | | | | 414,557 | | | | - | | | | 2,661,452 | |
Intangible lease assets | | - | | | | - | | | | 63,950 | | | | 21,782 | | | | - | | | | 85,732 | |
Construction in progress | | - | | | | - | | | | 121,492 | | | | 9,387 | | | | - | | | | 130,879 | |
Total investment in properties | | - | | | | - | | | | 3,198,780 | | | | 596,910 | | | | - | | | | 3,795,690 | |
Less accumulated depreciation and amortization | | - | | | | - | | | | (563,113 | ) | | | (115,627 | ) | | | - | | | | (678,740 | ) |
Net investment in properties | | - | | | | - | | | | 2,635,667 | | | | 481,283 | | | | - | | | | 3,116,950 | |
Investments in and advances to unconsolidated joint ventures | | - | | | | 98,623 | | | | 606 | | | | - | | | | - | | | | 99,229 | |
Net investment in real estate | | - | | | | 98,623 | | | | 2,636,273 | | | | 481,283 | | | | - | | | | 3,216,179 | |
Cash and cash equivalents | | - | | | | 21,651 | | | | 9,528 | | | | - | | | | (4,853 | ) | | | 26,326 | |
Restricted cash | | - | | | | - | | | | 162 | | | | 3,364 | | | | - | | | | 3,526 | |
Deferred loan costs, net | | - | | | | 8,121 | | | | - | | | | 463 | | | | - | | | | 8,584 | |
Straight-line rent and other receivables, net | | - | | | | 526 | | | | 42,415 | | | | 8,047 | | | | - | | | | 50,988 | |
Other assets, net | | - | | | | 4,369 | | | | 9,155 | | | | 4,560 | | | | - | | | | 18,084 | |
Intercompany receivables, net | | 23,517 | | | | 154,788 | | | | 4,126 | | | | - | | | | (182,431 | ) | | | - | |
Investment in subsidiaries | | 1,606,886 | | | | 2,716,116 | | | | 2,715 | | | | - | | | | (4,325,717 | ) | | | - | |
Assets held for sale | | - | | | | - | | | | 99,550 | | | | 15,896 | | | | - | | | | 115,446 | |
Total assets | $ | 1,630,403 | | | $ | 3,004,194 | | | $ | 2,803,924 | | | $ | 513,613 | | | $ | (4,513,001 | ) | | $ | 3,439,133 | |
| | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | $ | - | | | $ | 13,230 | | | $ | 58,353 | | | $ | 18,766 | | | $ | (4,853 | ) | | $ | 85,496 | |
Intercompany payables, net | | - | | | | 23,517 | | | | 35,622 | | | | 123,292 | | | | (182,431 | ) | | | - | |
Distributions payable | | 23,517 | | | | 1,290 | | | | - | | | | - | | | | - | | | | 24,807 | |
Tenant prepaids and security deposits | | - | | | | - | | | | 22,729 | | | | 3,649 | | | | - | | | | 26,378 | |
Other liabilities | | - | | | | 45 | | | | 7,678 | | | | 4,151 | | | | - | | | | 11,874 | |
Intangible lease liabilities, net | | - | | | | - | | | | 20,059 | | | | 2,732 | | | | - | | | | 22,791 | |
Line of credit | | - | | | | 132,000 | | | | - | | | | - | | | | - | | | | 132,000 | |
Senior unsecured notes | | - | | | | 1,122,566 | | | | - | | | | - | | | | - | | | | 1,122,566 | |
Mortgage notes | | - | | | | - | | | | 33,951 | | | | 252,339 | | | | - | | | | 286,290 | |
Liabilities related to assets held for sale | | - | | | | - | | | | 2,725 | | | | 648 | | | | - | | | | 3,373 | |
Total liabilities | | 23,517 | | | | 1,292,648 | | | | 181,117 | | | | 405,577 | | | | (187,284 | ) | | | 1,715,575 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders' equity | | 1,606,886 | | | | 1,711,546 | | | | 2,622,807 | | | | 108,036 | | | | (4,442,389 | ) | | | 1,606,886 | |
Noncontrolling interests | | - | | | | - | | | | - | | | | - | | | | 116,672 | | | | 116,672 | |
Total equity | | 1,606,886 | | | | 1,711,546 | | | | 2,622,807 | | | | 108,036 | | | | (4,325,717 | ) | | | 1,723,558 | |
Total liabilities and equity | $ | 1,630,403 | | | $ | 3,004,194 | | | $ | 2,803,924 | | | $ | 513,613 | | | $ | (4,513,001 | ) | | $ | 3,439,133 | |
|
|
|
|
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) |
For the Three Months Ended September 30, 2014 |
(in thousands) |
(unaudited) |
|
| Parent | | | Subsidiary | | | Subsidiary | | | Non-Guarantor | | | Consolidating | | | Total | |
Issuer | Guarantors | Subsidiaries | Adjustments | Consolidated |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | | |
Rental revenues | $ | - | | | $ | - | | | $ | 65,876 | | | $ | 18,409 | | | $ | - | | | $ | 84,285 | |
Institutional capital management and other fees | | - | | | | 25 | | | | - | | | | 367 | | | | (70 | ) | | | 322 | |
Total revenues | | - | | | | 25 | | | | 65,876 | | | | 18,776 | | | | (70 | ) | | | 84,607 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | |
Rental expenses | | - | | | | - | | | | 7,538 | | | | 2,134 | | | | - | | | | 9,672 | |
Real estate taxes | | - | | | | - | | | | 10,684 | | | | 2,604 | | | | - | | | | 13,288 | |
Real estate related depreciation and amortization | | - | | | | - | | | | 30,442 | | | | 7,400 | | | | - | | | | 37,842 | |
General and administrative | | - | | | | 6,347 | | | | 73 | | | | 307 | | | | - | | | | 6,727 | |
Impairment losses | | - | | | | - | | | | 201 | | | | 699 | | | | - | | | | 900 | |
Casualty and involuntary conversion loss | | - | | | | - | | | | 14 | | | | - | | | | - | | | | 14 | |
Total operating expenses | | - | | | | 6,347 | | | | 48,952 | | | | 13,144 | | | | - | | | | 68,443 | |
Operating income (loss) | | - | | | | (6,322 | ) | | | 16,924 | | | | 5,632 | | | | (70 | ) | | | 16,164 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OTHER INCOME (EXPENSE): | | | | | | | | | | | | | | | | | | | | | | | |
Equity in earnings (loss) of unconsolidated | | - | | | | 824 | | | | (2 | ) | | | - | | | | 70 | | | | 892 | |
joint ventures, net |
Gain on dispositions of real estate interests | | - | | | | - | | | | - | | | | 10,230 | | | | - | | | | 10,230 | |
Interest expense | | - | | | | (12,493 | ) | | | (972 | ) | | | (3,195 | ) | | | 582 | | | | (16,078 | ) |
Interest and other income (expense) | | - | | | | 2,156 | | | | (17 | ) | | | (18 | ) | | | (544 | ) | | | 1,577 | |
Income tax benefit (expense) and other taxes | | - | | | | (160 | ) | | | 270 | | | | (37 | ) | | | - | | | | 73 | |
Income (loss) from continuing operations | | - | | | | (15,995 | ) | | | 16,203 | | | | 12,612 | | | | 38 | | | | 12,858 | |
Income from discontinued operations | | - | | | | - | | | | - | | | | 390 | | | | (38 | ) | | | 352 | |
Equity in earnings of consolidated subsidiaries | | 12,409 | | | | 29,057 | | | | 39 | | | | - | | | | (41,505 | ) | | | - | |
Consolidated net income | | 12,409 | | | | 13,062 | | | | 16,242 | | | | 13,002 | | | | (41,505 | ) | | | 13,210 | |
Net income attributable to noncontrolling interests | | - | | | | - | | | | - | | | | - | | | | (801 | ) | | | (801 | ) |
Net income attributable to common stockholders | | 12,409 | | | | 13,062 | | | | 16,242 | | | | 13,002 | | | | (42,306 | ) | | | 12,409 | |
Distributed and undistributed earnings allocated to | | - | | | | (171 | ) | | | - | | | | - | | | | - | | | | (171 | ) |
participating securities |
Adjusted net income attributable to | $ | 12,409 | | | $ | 12,891 | | | $ | 16,242 | | | $ | 13,002 | | | $ | (42,306 | ) | | $ | 12,238 | |
common stockholders |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 12,409 | | | $ | 13,062 | | | $ | 16,242 | | | $ | 13,002 | | | $ | (41,505 | ) | | $ | 13,210 | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative gain (loss) on cash flow hedging instruments | | - | | | | 159 | | | | - | | | | (24 | ) | | | - | | | | 135 | |
Net reclassification adjustment on cash flow hedging | | - | | | | 1,124 | | | | - | | | | 39 | | | | - | | | | 1,163 | |
instruments |
Other comprehensive income | | - | | | | 1,283 | | | | - | | | | 15 | | | | - | | | | 1,298 | |
Comprehensive income | | 12,409 | | | | 14,345 | | | | 16,242 | | | | 13,017 | | | | (41,505 | ) | | | 14,508 | |
Comprehensive income attributable to noncontrolling | | - | | | | - | | | | - | | | | - | | | | (881 | ) | | | (881 | ) |
interests |
Comprehensive income attributable to common | $ | 12,409 | | | $ | 14,345 | | | $ | 16,242 | | | $ | 13,017 | | | $ | (42,386 | ) | | $ | 13,627 | |
stockholders |
|
|
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) |
For the Nine Months Ended September 30, 2014 |
(in thousands) |
(unaudited) |
|
| Parent | | | Subsidiary | | | Subsidiary | | | Non-Guarantor | | | Consolidating | | | Total | |
Issuer | Guarantors | Subsidiaries | Adjustments | Consolidated |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | | |
Rental revenues | $ | - | | | $ | - | | | $ | 204,840 | | | $ | 45,366 | | | $ | - | | | $ | 250,206 | |
Institutional capital management and other fees | | - | | | | 479 | | | | - | | | | 1,185 | | | | (270 | ) | | | 1,394 | |
Total revenues | | - | | | | 479 | | | | 204,840 | | | | 46,551 | | | | (270 | ) | | | 251,600 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | |
Rental expenses | | - | | | | - | | | | 26,586 | | | | 4,921 | | | | - | | | | 31,507 | |
Real estate taxes | | - | | | | - | | | | 33,033 | | | | 7,163 | | | | - | | | | 40,196 | |
Real estate related depreciation and amortization | | - | | | | - | | | | 92,049 | | | | 19,496 | | | | - | | | | 111,545 | |
General and administrative | | - | | | | 20,129 | | | | 253 | | | | 677 | | | | - | | | | 21,059 | |
Impairment losses | | - | | | | - | | | | 1,193 | | | | 4,442 | | | | - | | | | 5,635 | |
Casualty and involuntary conversion gain | | - | | | | - | | | | (326 | ) | | | - | | | | - | | | | (326 | ) |
Total operating expenses | | - | | | | 20,129 | | | | 152,788 | | | | 36,699 | | | | - | | | | 209,616 | |
Operating income (loss) | | - | | | | (19,650 | ) | | | 52,052 | | | | 9,852 | | | | (270 | ) | | | 41,984 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OTHER INCOME (EXPENSE): | | | | | | | | | | | | | | | | | | | | | | | |
Development profit, net of taxes | | - | | | | - | | | | - | | | | 1,966 | | | | 50 | | | | 2,016 | |
Equity in earnings (loss) of unconsolidated joint | | - | | | | 5,014 | | | | (32 | ) | | | - | | | | 220 | | | | 5,202 | |
ventures, net |
Gain on business combination | | - | | | | 1,000 | | | | - | | | | - | | | | - | | | | 1,000 | |
Gain on dispositions of real estate interests | | - | | | | 1,175 | | | | - | | | | 10,472 | | | | - | | | | 11,647 | |
Interest expense | | - | | | | (37,626 | ) | | | (3,009 | ) | | | (9,549 | ) | | | 1,868 | | | | (48,316 | ) |
Interest and other income (expense) | | - | | | | 3,480 | | | | (52 | ) | | | 22 | | | | (1,868 | ) | | | 1,582 | |
Income tax benefit (expense) and other taxes | | - | | | | (296 | ) | | | 734 | | | | (181 | ) | | | - | | | | 257 | |
Income (loss) from continuing operations | | - | | | | (46,903 | ) | | | 49,693 | | | | 12,582 | | | | - | | | | 15,372 | |
Income from discontinued operations | | - | | | | - | | | | - | | | | 5,576 | | | | - | | | | 5,576 | |
Equity in earnings of consolidated subsidiaries | | 19,527 | | | | 67,466 | | | | 2,018 | | | | - | | | | (89,011 | ) | | | - | |
Consolidated net income | | 19,527 | | | | 20,563 | | | | 51,711 | | | | 18,158 | | | | (89,011 | ) | | | 20,948 | |
Net income attributable to noncontrolling interests | | - | | | | - | | | | - | | | | - | | | | (1,421 | ) | | | (1,421 | ) |
Net income attributable to common | | 19,527 | | | | 20,563 | | | | 51,711 | | | | 18,158 | | | | (90,432 | ) | | | 19,527 | |
stockholders |
Distributed and undistributed earnings allocated to | | - | | | | (507 | ) | | | - | | | | - | | | | - | | | | (507 | ) |
participating securities |
Adjusted net income attributable to | $ | 19,527 | | | $ | 20,056 | | | $ | 51,711 | | | $ | 18,158 | | | $ | (90,432 | ) | | $ | 19,020 | |
common stockholders |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 19,527 | | | $ | 20,563 | | | $ | 51,711 | | | $ | 18,158 | | | $ | (89,011 | ) | | $ | 20,948 | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative loss on cash flow hedging instruments | | - | | | | (360 | ) | | | - | | | | (351 | ) | | | - | | | | (711 | ) |
Net reclassification adjustment on cash flow hedging | | - | | | | 3,375 | | | | - | | | | 116 | | | | - | | | | 3,491 | |
instruments |
Other comprehensive income (loss) | | - | | | | 3,015 | | | | - | | | | (235 | ) | | | - | | | | 2,780 | |
Comprehensive income | | 19,527 | | | | 23,578 | | | | 51,711 | | | | 17,923 | | | | (89,011 | ) | | | 23,728 | |
Comprehensive income attributable to noncontrolling | | - | | | | - | | | | - | | | | - | | | | (1,659 | ) | | | (1,659 | ) |
interests |
Comprehensive income attributable to | $ | 19,527 | | | $ | 23,578 | | | $ | 51,711 | | | $ | 17,923 | | | $ | (90,670 | ) | | $ | 22,069 | |
common stockholders |
|
|
Condensed Consolidated Statements of Cash Flows |
For the Nine Months Ended September 30, 2014 |
(in thousands) |
(unaudited) |
|
| Parent | | | Subsidiary | | | Subsidiary | | | Non-Guarantor | | | Consolidating | | | Total | |
Issuer | Guarantors | Subsidiaries | Adjustments | Consolidated |
OPERATING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | $ | - | | | $ | (38,439 | ) | | $ | 135,396 | | | $ | 37,005 | | | $ | (4,853 | ) | | $ | 129,109 | |
| | | | | | | | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | |
Real estate acquisitions | | - | | | | - | | | | (242,455 | ) | | | (14,643 | ) | | | - | | | | (257,098 | ) |
Capital expenditures and development activities | | - | | | | - | | | | (126,100 | ) | | | (8,765 | ) | | | - | | | | (134,865 | ) |
Proceeds from dispositions of real estate investments | | - | | | | 1,988 | | | | 4,825 | | | | 119,347 | | | | - | | | | 126,160 | |
Investments in unconsolidated joint ventures | | - | | | | (754 | ) | | | - | | | | - | | | | - | | | | (754 | ) |
Proceeds from casualties and involuntary conversion | | - | | | | - | | | | 562 | | | | 42 | | | | - | | | | 604 | |
Distributions of investments in unconsolidated joint ventures | | - | | | | 17,043 | | | | - | | | | - | | | | - | | | | 17,043 | |
Other investing activities | | - | | | | 6,247 | | | | 6 | | | | (283 | ) | | | - | | | | 5,970 | |
Net cash provided by (used in) investing activities | | - | | | | 24,524 | | | | (363,162 | ) | | | 95,698 | | | | - | | | | (242,940 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from senior unsecured revolving line of credit | | - | | | | 135,000 | | | | - | | | | - | | | | - | | | | 135,000 | |
Repayments of senior unsecured revolving line of credit | | - | | | | (42,000 | ) | | | - | | | | - | | | | - | | | | (42,000 | ) |
Principal payments on mortgage notes | | - | | | | - | | | | (494 | ) | | | (13,952 | ) | | | - | | | | (14,446 | ) |
Proceeds from issuance of common stock | | 104,733 | | | | 104,733 | | | | - | | | | - | | | | (104,733 | ) | | | 104,733 | |
Offering costs for issuance of common stock and OP Units | | (1,392 | ) | | | (1,392 | ) | | | - | | | | - | | | | 1,392 | | | | (1,392 | ) |
Net payments relating to intercompany financing | | (34,636 | ) | | | (115,365 | ) | | | 237,847 | | | | (122,482 | ) | | | 34,636 | | | | - | |
Redemption of noncontrolling interests | | - | | | | (800 | ) | | | - | | | | - | | | | - | | | | (800 | ) |
Dividends to common stockholders | | (68,705 | ) | | | (68,705 | ) | | | - | | | | - | | | | 68,705 | | | | (68,705 | ) |
Distributions to noncontrolling interests | | - | | | | (4,048 | ) | | | - | | | | (498 | ) | | | - | | | | (4,546 | ) |
Contributions from noncontrolling interests | | - | | | | - | | | | - | | | | 101 | | | | - | | | | 101 | |
Other financing activity | | - | | | | 45 | | | | (59 | ) | | | - | | | | - | | | | (14 | ) |
Net cash provided by (used in) financing activities | | - | | | | 7,468 | | | | 237,294 | | | | (136,831 | ) | | | - | | | | 107,931 | |
Net change in cash and cash equivalents | | - | | | | (6,447 | ) | | | 9,528 | | | | (4,128 | ) | | | (4,853 | ) | | | (5,900 | ) |
Cash and cash equivalents, beginning of period | | - | | | | 28,098 | | | | - | | | | 4,128 | | | | - | | | | 32,226 | |
Cash and cash equivalents, end of period | $ | - | | | $ | 21,651 | | | $ | 9,528 | | | $ | - | | | $ | (4,853 | ) | | $ | 26,326 | |
|
|
|
|
Condensed Consolidated Balance Sheets |
December 31, 2013 |
(in thousands) |
|
| Parent | | | Subsidiary | | | Subsidiary | | | Non-Guarantor | | | Consolidating | | | Total | |
Issuer | Guarantors | Subsidiaries | Adjustments | Consolidated |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | |
Land | $ | - | | | $ | - | | | $ | 728,556 | | | $ | 155,248 | | | $ | - | | | $ | 883,804 | |
Buildings and improvements | | - | | | | - | | | | 2,192,623 | | | | 423,256 | | | | - | | | | 2,615,879 | |
Intangible lease assets | | - | | | | - | | | | 56,429 | | | | 26,329 | | | | - | | | | 82,758 | |
Construction in progress | | - | | | | - | | | | 75,235 | | | | 13,375 | | | | - | | | | 88,610 | |
Total investment in properties | | - | | | | - | | | | 3,052,843 | | | | 618,208 | | | | - | | | | 3,671,051 | |
Less accumulated depreciation and amortization | | - | | | | - | | | | (543,781 | ) | | | (110,316 | ) | | | - | | | | (654,097 | ) |
Net investment in properties | | - | | | | - | | | | 2,509,062 | | | | 507,892 | | | | - | | | | 3,016,954 | |
Investments in and advances to unconsolidated joint ventures | | - | | | | 124,285 | | | | 638 | | | | - | | | | - | | | | 124,923 | |
Net investment in real estate | | - | | | | 124,285 | | | | 2,509,700 | | | | 507,892 | | | | - | | | | 3,141,877 | |
Cash and cash equivalents | | - | | | | 28,098 | | | | - | | | | 4,128 | | | | - | | | | 32,226 | |
Restricted cash | | - | | | | 8,841 | | | | 340 | | | | 3,440 | | | | - | | | | 12,621 | |
Deferred loan costs, net | | - | | | | 9,737 | | | | - | | | | 514 | | | | - | | | | 10,251 | |
Straight-line rent and other receivables, net | | - | | | | 82 | | | | 37,800 | | | | 8,365 | | | | - | | | | 46,247 | |
Other assets, net | | - | | | | 3,313 | | | | 7,343 | | | | 3,889 | | | | - | | | | 14,545 | |
Intercompany receivables, net | | 22,472 | | | | 137,000 | | | | - | | | | - | | | | (159,472 | ) | | | - | |
Investment in subsidiaries | | 1,543,806 | | | | 2,540,233 | | | | 11,965 | | | | - | | | | (4,096,004 | ) | | | - | |
Assets held for sale | | - | | | | - | | | | 8,196 | | | | - | | | | - | | | | 8,196 | |
Total assets | $ | 1,566,278 | | | $ | 2,851,589 | | | $ | 2,575,344 | | | $ | 528,228 | | | $ | (4,255,476 | ) | | $ | 3,265,963 | |
| | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | $ | - | | | $ | 11,140 | | | $ | 36,985 | | | $ | 15,156 | | | $ | - | | | $ | 63,281 | |
Intercompany payables, net | | - | | | | 22,472 | | | | 44,448 | | | | 92,552 | | | | (159,472 | ) | | | - | |
Distributions payable | | 22,472 | | | | 1,320 | | | | - | | | | - | | | | - | | | | 23,792 | |
Tenant prepaids and security deposits | | - | | | | - | | | | 24,289 | | | | 4,253 | | | | - | | | | 28,542 | |
Other liabilities | | - | | | | 93 | | | | 7,177 | | | | 2,852 | | | | - | | | | 10,122 | |
Intangible lease liabilities, net | | - | | | | - | | | | 17,646 | | | | 2,743 | | | | - | | | | 20,389 | |
Line of credit | | - | | | | 39,000 | | | | - | | | | - | | | | - | | | | 39,000 | |
Senior unsecured notes | | - | | | | 1,122,407 | | | | - | | | | - | | | | - | | | | 1,122,407 | |
Mortgage notes | | - | | | | - | | | | 34,480 | | | | 256,480 | | | | - | | | | 290,960 | |
Liabilities related to assets held for sale | | - | | | | - | | | | 278 | | | | - | | | | - | | | | 278 | |
Total liabilities | | 22,472 | | | | 1,196,432 | | | | 165,303 | | | | 374,036 | | | | (159,472 | ) | | | 1,598,771 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders' equity | | 1,543,806 | | | | 1,655,157 | | | | 2,410,041 | | | | 154,192 | | | | (4,219,390 | ) | | | 1,543,806 | |
Noncontrolling interests | | - | | | | - | | | | - | | | | - | | | | 123,386 | | | | 123,386 | |
Total equity | | 1,543,806 | | | | 1,655,157 | | | | 2,410,041 | | | | 154,192 | | | | (4,096,004 | ) | | | 1,667,192 | |
Total liabilities and equity | $ | 1,566,278 | | | $ | 2,851,589 | | | $ | 2,575,344 | | | $ | 528,228 | | | $ | (4,255,476 | ) | | $ | 3,265,963 | |
|
|
|
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) |
For the Three Months Ended September 30, 2013 |
(in thousands) |
(unaudited) |
|
| Parent | | | Subsidiary | | | Subsidiary | | | Non-Guarantor | | | Consolidating | | | Total | |
Issuer | Guarantors | Subsidiaries | Adjustments | Consolidated |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | | |
Rental revenues | $ | - | | | $ | - | | | $ | 60,073 | | | $ | 13,038 | | | $ | - | | | $ | 73,111 | |
Institutional capital management and other fees | | - | | | | 205 | | | | - | | | | 490 | | | | (76 | ) | | | 619 | |
Total revenues | | - | | | | 205 | | | | 60,073 | | | | 13,528 | | | | (76 | ) | | | 73,730 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | |
Rental expenses | | - | | | | - | | | | 7,462 | | | | 1,317 | | | | - | | | | 8,779 | |
Real estate taxes | | - | | | | - | | | | 8,914 | | | | 2,118 | | | | - | | | | 11,032 | |
Real estate related depreciation and amortization | | - | | | | - | | | | 26,637 | | | | 6,206 | | | | - | | | | 32,843 | |
General and administrative | | - | | | | 5,190 | | | | 98 | | | | 832 | | | | - | | | | 6,120 | |
Casualty and involuntary conversion gain | | - | | | | - | | | | (294 | ) | | | - | | | | - | | | | (294 | ) |
Total operating expenses | | - | | | | 5,190 | | | | 42,817 | | | | 10,473 | | | | - | | | | 58,480 | |
Operating income (loss) | | - | | | | (4,985 | ) | | | 17,256 | | | | 3,055 | | | | (76 | ) | | | 15,250 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OTHER INCOME (EXPENSE): | | | | | | | | | | | | | | | | | | | | | | | |
Equity in earnings of unconsolidated joint ventures, net | | - | | | | 672 | | | | 11 | | | | - | | | | 76 | | | | 759 | |
Interest expense | | - | | | | (11,114 | ) | | | (1,307 | ) | | | (3,287 | ) | | | 567 | | | | (15,141 | ) |
Interest and other income | | - | | | | 571 | | | | 2 | | | | 1,820 | | | | (2,310 | ) | | | 83 | |
Income tax benefit (expense) and other taxes | | - | | | | (187 | ) | | | 261 | | | | (15 | ) | | | - | | | | 59 | |
Income (loss) from continuing operations | | - | | | | (15,043 | ) | | | 16,223 | | | | 1,573 | | | | (1,743 | ) | | | 1,010 | |
Income (loss) from discontinued operations | | - | | | | - | | | | 254 | | | | (13,790 | ) | | | 1,743 | | | | (11,793 | ) |
Equity in earnings (loss) of consolidated subsidiaries | | (10,157 | ) | | | 4,174 | | | | 3 | | | | - | | | | 5,980 | | | | - | |
Consolidated net income (loss) | | (10,157 | ) | | | (10,869 | ) | | | 16,480 | | | | (12,217 | ) | | | 5,980 | | | | (10,783 | ) |
Net loss attributable to noncontrolling interests | | - | | | | - | | | | - | | | | - | | | | 626 | | | | 626 | |
Net income (loss) attributable to common | | (10,157 | ) | | | (10,869 | ) | | | 16,480 | | | | (12,217 | ) | | | 6,606 | | | | (10,157 | ) |
stockholders |
Distributed and undistributed earnings allocated to | | - | | | | (173 | ) | | | - | | | | - | | | | - | | | | (173 | ) |
participating securities |
Adjusted net income (loss) attributable to | $ | (10,157 | ) | | $ | (11,042 | ) | | $ | 16,480 | | | $ | (12,217 | ) | | $ | 6,606 | | | $ | (10,330 | ) |
common stockholders |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (10,157 | ) | | $ | (10,869 | ) | | $ | 16,480 | | | $ | (12,217 | ) | | $ | 5,980 | | | $ | (10,783 | ) |
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative gain (loss) on cash flow hedging instruments | | - | | | | (254 | ) | | | - | | | | 8 | | | | - | | | | (246 | ) |
Net reclassification adjustment on cash flow hedging | | - | | | | 1,000 | | | | - | | | | - | | | | - | | | | 1,000 | |
instruments |
Other comprehensive income | | - | | | | 746 | | | | - | | | | 8 | | | | - | | | | 754 | |
Comprehensive income (loss) | | (10,157 | ) | | | (10,123 | ) | | | 16,480 | | | | (12,209 | ) | | | 5,980 | | | | (10,029 | ) |
Comprehensive income attributable to noncontrolling | | - | | | | - | | | | - | | | | - | | | | 376 | | | | 376 | |
interests |
Comprehensive income (loss) attributable to common | $ | (10,157 | ) | | $ | (10,123 | ) | | $ | 16,480 | | | $ | (12,209 | ) | | $ | 6,356 | | | $ | (9,653 | ) |
stockholders |
|
|
Condensed Consolidated Statements of Operations and Comprehensive Income |
For the Nine Months Ended September 30, 2013 |
(in thousands) |
(unaudited) |
|
| Parent | | | Subsidiary | | | Subsidiary | | | Non-Guarantor | | | Consolidating | | | Total | |
Issuer | Guarantors | Subsidiaries | Adjustments | Consolidated |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | | |
Rental revenues | $ | - | | | $ | - | | | $ | 170,089 | | | $ | 39,655 | | | $ | - | | | $ | 209,744 | |
Institutional capital management and other fees | | - | | | | 768 | | | | - | | | | 1,622 | | | | (251 | ) | | | 2,139 | |
Total revenues | | - | | | | 768 | | | | 170,089 | | | | 41,277 | | | | (251 | ) | | | 211,883 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | |
Rental expenses | | - | | | | - | | | | 22,201 | | | | 3,872 | | | | - | | | | 26,073 | |
Real estate taxes | | - | | | | - | | | | 26,475 | | | | 6,743 | | | | - | | | | 33,218 | |
Real estate related depreciation and amortization | | - | | | | - | | | | 75,698 | | | | 18,936 | | | | - | | | | 94,634 | |
General and administrative | | - | | | | 19,516 | | | | 279 | | | | 28 | | | | - | | | | 19,823 | |
Casualty and involuntary conversion (gain) loss | | - | | | | - | | | | (353 | ) | | | 57 | | | | - | | | | (296 | ) |
Total operating expenses | | - | | | | 19,516 | | | | 124,300 | | | | 29,636 | | | | - | | | | 173,452 | |
Operating income (loss) | | - | | | | (18,748 | ) | | | 45,789 | | | | 11,641 | | | | (251 | ) | | | 38,431 | |
| | | | | | | | | | | | | | | | | | | | | | | |
OTHER INCOME (EXPENSE): | | | | | | | | | | | | | | | | | | | | | | | |
Development profit, net of taxes | | - | | | | - | | | | - | | | | 268 | | | | - | | | | 268 | |
Equity in earnings of unconsolidated joint ventures, net | | - | | | | 1,453 | | | | 17 | | | | - | | | | 251 | | | | 1,721 | |
Interest expense | | - | | | | (35,335 | ) | | | (3,926 | ) | | | (10,058 | ) | | | 1,991 | | | | (47,328 | ) |
Interest and other income | | - | | | | 2,000 | | | | 12 | | | | 5,416 | | | | (7,118 | ) | | | 310 | |
Income tax benefit (expense) and other taxes | | - | | | | (489 | ) | | | 342 | | | | (226 | ) | | | - | | | | (373 | ) |
Income (loss) from continuing operations | | - | | | | (51,119 | ) | | | 42,234 | | | | 7,041 | | | | (5,127 | ) | | | (6,971 | ) |
Income from discontinued operations | | - | | | | - | | | | 612 | | | | 3,752 | | | | 5,127 | | | | 9,491 | |
Equity in earnings of consolidated subsidiaries | | 1,931 | | | | 53,180 | | | | 195 | | | | - | | | | (55,306 | ) | | | - | |
Consolidated net income | | 1,931 | | | | 2,061 | | | | 43,041 | | | | 10,793 | | | | (55,306 | ) | | | 2,520 | |
Net income attributable to noncontrolling interests | | - | | | | - | | | | - | | | | - | | | | (589 | ) | | | (589 | ) |
Net income attributable to common stockholders | | 1,931 | | | | 2,061 | | | | 43,041 | | | | 10,793 | | | | (55,895 | ) | | | 1,931 | |
Distributed and undistributed earnings allocated to | | - | | | | (519 | ) | | | - | | | | - | | | | - | | | | (519 | ) |
participating securities |
Adjusted net income attributable to common | $ | 1,931 | | | $ | 1,542 | | | $ | 43,041 | | | $ | 10,793 | | | $ | (55,895 | ) | | $ | 1,412 | |
stockholders |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 1,931 | | | $ | 2,061 | | | $ | 43,041 | | | $ | 10,793 | | | $ | (55,306 | ) | | $ | 2,520 | |
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative gain on cash flow hedging instruments | | - | | | | 803 | | | | - | | | | 61 | | | | - | | | | 864 | |
Net reclassification adjustment on cash flow hedging | | - | | | | 3,000 | | | | - | | | | - | | | | - | | | | 3,000 | |
instruments |
Other comprehensive income | | - | | | | 3,803 | | | | - | | | | 61 | | | | - | | | | 3,864 | |
Comprehensive income | | 1,931 | | | | 5,864 | | | | 43,041 | | | | 10,854 | | | | (55,306 | ) | | | 6,384 | |
Comprehensive income attributable to noncontrolling | | - | | | | - | | | | - | | | | - | | | | (1,224 | ) | | | (1,224 | ) |
interests |
Comprehensive income attributable to common stockholders | $ | 1,931 | | | $ | 5,864 | | | $ | 43,041 | | | $ | 10,854 | | | $ | (56,530 | ) | | $ | 5,160 | |
|
Condensed Consolidated Statements of Cash Flows |
For the Nine Months Ended September 30, 2013 |
(in thousands) |
(unaudited) |
|
| Parent | | | Subsidiary | | | Subsidiary | | | Non-Guarantor | | | Consolidating | | | Total | |
Issuer | Guarantors | Subsidiaries | Adjustments | Consolidated |
OPERATING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | $ | - | | | $ | (38,884 | ) | | $ | 117,754 | | | $ | 24,110 | | | $ | - | | | $ | 102,980 | |
| | | | | | | | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | |
Real estate acquisitions | | - | | | | - | | | | (242,619 | ) | | | (16,583 | ) | | | - | | | | (259,202 | ) |
Capital expenditures and development activities | | - | | | | - | | | | (97,490 | ) | | | (10,139 | ) | | | - | | | | (107,629 | ) |
Proceeds from dispositions of real estate investments | | - | | | | - | | | | - | | | | 112,362 | | | | - | | | | 112,362 | |
Investments in unconsolidated joint ventures | | - | | | | (1,784 | ) | | | - | | | | - | | | | - | | | | (1,784 | ) |
Proceeds from casualties and involuntary conversion | | - | | | | - | | | | 5,999 | | | | 1,820 | | | | - | | | | 7,819 | |
Distributions of investments in unconsolidated joint ventures | | - | | | | 1,659 | | | | - | | | | - | | | | - | | | | 1,659 | |
Other investing activities | | - | | | | (7,514 | ) | | | 5 | | | | (281 | ) | | | - | | | | (7,790 | ) |
Net cash provided by (used in) investing activities | | - | | | | (7,639 | ) | | | (334,105 | ) | | | 87,179 | | | | - | | | | (254,565 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from senior unsecured revolving line of credit | | - | | | | 255,000 | | | | - | | | | - | | | | - | | | | 255,000 | |
Repayments of senior unsecured revolving line of credit | | - | | | | (313,000 | ) | | | - | | | | - | | | | - | | | | (313,000 | ) |
Proceeds from senior unsecured notes | | - | | | | 225,000 | | | | - | | | | - | | | | - | | | | 225,000 | |
Repayments of senior unsecured notes | | - | | | | (175,000 | ) | | | - | | | | - | | | | - | | | | (175,000 | ) |
Proceeds from mortgage notes | | - | | | | - | | | | 9,303 | | | | 7,195 | | | | - | | | | 16,498 | |
Principal payments on mortgage notes | | - | | | | - | | | | (10,988 | ) | | | (6,485 | ) | | | - | | | | (17,473 | ) |
Proceeds from issuance of common stock | | 241,704 | | | | 241,704 | | | | - | | | | - | | | | (241,704 | ) | | | 241,704 | |
Offering costs for issuance of common stock and OP Units | | (8,467 | ) | | | (8,467 | ) | | | - | | | | - | | | | 8,467 | | | | (8,467 | ) |
Net payments relating to intercompany financing | | (172,958 | ) | | | (105,891 | ) | | | 217,996 | | | | (112,105 | ) | | | 172,958 | | | | - | |
Redemption of noncontrolling interests | | - | | | | (933 | ) | | | - | | | | - | | | | - | | | | (933 | ) |
Dividends to common stockholders | | (60,279 | ) | | | (60,279 | ) | | | - | | | | - | | | | 60,279 | | | | (60,279 | ) |
Distributions to noncontrolling interests | | - | | | | (4,522 | ) | | | - | | | | (960 | ) | | | - | | | | (5,482 | ) |
Contributions from noncontrolling interests | | - | | | | - | | | | - | | | | 723 | | | | - | | | | 723 | |
Other financing activity | | - | | | | (1,538 | ) | | | (57 | ) | | | 1,555 | | | | - | | | | (40 | ) |
Net cash provided by (used in) financing activities | | - | | | | 52,074 | | | | 216,254 | | | | (110,077 | ) | | | - | | | | 158,251 | |
Net change in cash and cash equivalents | | - | | | | 5,551 | | | | (97 | ) | | | 1,212 | | | | - | | | | 6,666 | |
Cash and cash equivalents, beginning of period | | - | | | | 11,162 | | | | 97 | | | | 1,437 | | | | - | | | | 12,696 | |
Cash and cash equivalents, end of period | $ | - | | | $ | 16,713 | | | $ | - | | | $ | 2,649 | | | $ | - | | | $ | 19,362 | |
|