Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
Entity Information | ' | ' |
Entity Registrant Name | 'RETAIL PROPERTIES OF AMERICA, INC. | ' |
Entity Central Index Key | '0001222840 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 236,561,796 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment properties: | ' | ' |
Land | $1,177,572 | $1,174,065 |
Building and other improvements | 4,558,670 | 4,586,657 |
Developments in progress | 45,395 | 43,796 |
Gross investment properties | 5,781,637 | 5,804,518 |
Less accumulated depreciation | -1,360,637 | -1,330,474 |
Net investment properties | 4,421,000 | 4,474,044 |
Cash and cash equivalents | 62,667 | 58,190 |
Investment in unconsolidated joint ventures | 14,268 | 15,776 |
Accounts and notes receivable (net of allowances of $7,270 and $8,197, respectively) | 76,046 | 80,818 |
Acquired lease intangible assets, net | 121,026 | 129,561 |
Assets associated with investment properties held for sale | 48,742 | 8,616 |
Other assets, net | 104,212 | 110,571 |
Total assets | 4,847,961 | 4,877,576 |
Liabilities: | ' | ' |
Mortgages payable, net | 1,612,442 | 1,684,633 |
Unsecured term loan | 450,000 | 450,000 |
Unsecured revolving line of credit | 230,000 | 165,000 |
Accounts payable and accrued expenses | 42,131 | 54,457 |
Distributions payable | 39,181 | 39,138 |
Acquired lease intangible liabilities, net | 90,973 | 91,881 |
Liabilities associated with investment properties held for sale | 31,258 | 6,603 |
Other liabilities | 70,022 | 77,030 |
Total liabilities | 2,566,007 | 2,568,742 |
Commitments and contingencies (Note 14) | ' | ' |
Equity: | ' | ' |
Additional paid-in capital | 4,920,185 | 4,919,633 |
Accumulated distributions in excess of earnings | -2,639,211 | -2,611,796 |
Accumulated other comprehensive loss | -756 | -738 |
Total shareholders' equity | 2,280,460 | 2,307,340 |
Noncontrolling interests | 1,494 | 1,494 |
Total equity | 2,281,954 | 2,308,834 |
Total liabilities and equity | 4,847,961 | 4,877,576 |
7.00% Series A cumulative redeemable preferred stock | ' | ' |
Equity: | ' | ' |
Preferred stock | 5 | 5 |
Class A common stock | ' | ' |
Equity: | ' | ' |
Common stock | $237 | $236 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts and notes receivable, allowances (in dollars) | $7,270 | $8,197 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000 | 10,000 |
7.00% Series A cumulative redeemable preferred stock | ' | ' |
Preferred stock, dividend rate | 7.00% | 7.00% |
Preferred stock, shares issued | 5,400 | 5,400 |
Preferred stock, shares outstanding | 5,400 | 5,400 |
Preferred stock, liquidation preference | $135,000 | $135,000 |
Class A common stock | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 475,000 | 475,000 |
Common stock, shares issued | 236,564 | 236,302 |
Common stock, shares outstanding | 236,564 | 236,302 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues: | ' | ' | ||
Rental income | $117,128 | $106,295 | ||
Tenant recovery income | 29,748 | 23,322 | ||
Other property income | 1,912 | 2,444 | ||
Total revenues | 148,788 | 132,061 | ||
Expenses: | ' | ' | ||
Property operating expenses | 26,526 | 22,583 | ||
Real estate taxes | 18,414 | 16,811 | ||
Depreciation and amortization | 53,596 | 51,008 | ||
Provision for impairment of investment properties | 394 | 0 | ||
(Gain) loss on lease terminations | -169 | 211 | ||
General and administrative expenses | 8,450 | 8,055 | ||
Total expenses | 107,211 | 98,668 | ||
Operating income | 41,577 | 33,393 | ||
Gain on extinguishment of other liabilities | 4,258 | 0 | ||
Equity in loss of unconsolidated joint ventures, net | -778 | -401 | ||
Interest expense (Note 8) | -31,863 | -45,697 | ||
Other income, net | 427 | 1,076 | ||
Income (loss) from continuing operations | 13,621 | -11,629 | ||
Discontinued operations: | ' | ' | ||
(Loss) income, net | -148 | 576 | ||
Gain on sales of investment properties | 655 | 4,909 | ||
Income from discontinued operations | 507 | 5,485 | ||
Gain on sales of investment properties | 0 | 4,264 | ||
Net income (loss) | 14,128 | -1,880 | ||
Net income (loss) attributable to the Company | 14,128 | -1,880 | ||
Preferred stock dividends | -2,362 | -2,362 | ||
Net income (loss) attributable to common shareholders | 11,766 | -4,242 | ||
Earnings (loss) per common share - basic and diluted: | ' | ' | ||
Continuing operations | $0.05 | ($0.04) | ||
Discontinued operations | $0 | $0.02 | ||
Net income (loss) per common share attributable to common shareholders | $0.05 | ($0.02) | ||
Net income (loss) | 14,128 | -1,880 | ||
Other comprehensive income (loss): | ' | ' | ||
Net unrealized (loss) gain on derivative instruments (Note 8) | -18 | 466 | ||
Comprehensive income (loss) | 14,110 | -1,414 | ||
Comprehensive income (loss) attributable to common shareholders | $14,110 | ($1,414) | ||
Weighted average number of common shares outstanding b basic | 236,151 | [1] | 230,611 | [2] |
Weighted average number of common shares outstanding b diluted | 236,153 | 230,611 | ||
[1] | Excluded from this weighted average amount are 414 shares of restricted common stock, which equate to 264 shares on a weighted average basis for the three months ended MarchB 31, 2014. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. | |||
[2] | Excluded from this weighted average amount are 95 shares of restricted common stock, which equate to 67 shares on a weighted average basis for the three months ended MarchB 31, 2013. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Equity (USD $) | Total | Preferred stock | Common stock | Common stock | Additional paid-in capital | Accumulated distributions in excess of earnings | Accumulated other comprehensive income (loss) | Total shareholders' equity | Noncontrolling interests |
In Thousands, unless otherwise specified | 7.00% Series A cumulative redeemable preferred stock | Class A common stock | Class B common stock | ||||||
Balance at Dec. 31, 2012 | $2,375,753 | $5 | $133 | $98 | $4,835,370 | ($2,460,093) | ($1,254) | $2,374,259 | $1,494 |
Balance (in shares) at Dec. 31, 2012 | ' | 5,400 | 133,606 | 97,037 | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -1,880 | ' | ' | ' | ' | -1,880 | ' | -1,880 | ' |
Other comprehensive income (loss) | 466 | ' | ' | ' | ' | ' | 466 | 466 | ' |
Distributions declared to preferred shareholders | -2,625 | ' | ' | ' | ' | -2,625 | ' | -2,625 | ' |
Distributions declared to common shareholders | -38,218 | ' | ' | ' | ' | -38,218 | ' | -38,218 | ' |
Issuance of common stock, net of offering costs | 688 | ' | ' | ' | 688 | ' | ' | 688 | ' |
Issuance of common stock, net of offering costs (in shares) | ' | ' | 56 | ' | ' | ' | ' | ' | ' |
Issuance of restricted common stock (in shares) | ' | ' | 49 | ' | ' | ' | ' | ' | ' |
Stock based compensation expense, net of shares withheld for employee taxes and forfeitures | 70 | ' | ' | ' | 70 | ' | ' | 70 | ' |
Balance at Mar. 31, 2013 | 2,334,254 | 5 | 133 | 98 | 4,836,128 | -2,502,816 | -788 | 2,332,760 | 1,494 |
Balance (in shares) at Mar. 31, 2013 | ' | 5,400 | 133,711 | 97,037 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 2,308,834 | 5 | 236 | ' | 4,919,633 | -2,611,796 | -738 | 2,307,340 | 1,494 |
Balance (in shares) at Dec. 31, 2013 | ' | 5,400 | 236,302 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 14,128 | ' | ' | ' | ' | 14,128 | ' | 14,128 | ' |
Other comprehensive income (loss) | -18 | ' | ' | ' | ' | ' | -18 | -18 | ' |
Distributions declared to preferred shareholders | -2,362 | ' | ' | ' | ' | -2,362 | ' | -2,362 | ' |
Distributions declared to common shareholders | -39,181 | ' | ' | ' | ' | -39,181 | ' | -39,181 | ' |
Issuance of common stock, net of offering costs | -37 | ' | ' | ' | -37 | ' | ' | -37 | ' |
Issuance of restricted common stock | 1 | ' | 1 | ' | ' | ' | ' | 1 | ' |
Issuance of restricted common stock (in shares) | ' | ' | 262 | ' | ' | ' | ' | ' | ' |
Stock based compensation expense, net of shares withheld for employee taxes and forfeitures | 589 | ' | ' | ' | 589 | ' | ' | 589 | ' |
Balance at Mar. 31, 2014 | $2,281,954 | $5 | $237 | ' | $4,920,185 | ($2,639,211) | ($756) | $2,280,460 | $1,494 |
Balance (in shares) at Mar. 31, 2014 | ' | 5,400 | 236,564 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Equity (parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Distributions declared to preferred shareholders (in dollars per share) | $0.44 | $0.49 |
Distributions declared to common shareholders (in dollars per share) | $0.17 | $0.17 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $14,128 | ($1,880) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities (including discontinued operations): | ' | ' |
Depreciation and amortization | 53,596 | 54,464 |
Provision for impairment of investment properties | 394 | 0 |
Gain on sales of investment properties | -655 | -9,173 |
Gain on extinguishment of other liabilities | -4,258 | 0 |
(Gain) loss on lease terminations | -169 | 211 |
Amortization of loan fees, mortgage debt premium and discount on debt assumed, net | 1,599 | 4,412 |
Equity in loss of unconsolidated joint ventures, net | 778 | 401 |
Distributions on investments in unconsolidated joint ventures | 755 | 2,154 |
Payment of leasing fees and inducements | -2,277 | -4,960 |
Changes in accounts receivable, net | 5,945 | 8,506 |
Changes in accounts payable and accrued expenses, net | -10,808 | -10,314 |
Changes in other operating assets and liabilities, net | -1,164 | -15,714 |
Other, net | 287 | 2,383 |
Net cash provided by operating activities | 58,151 | 30,490 |
Cash flows from investing activities: | ' | ' |
Changes in restricted escrows, net | 1,499 | 2,867 |
Purchase of investment properties | -28,324 | 0 |
Capital expenditures and tenant improvements | -9,558 | -9,784 |
Proceeds from sales of investment properties | 9,204 | 31,136 |
Investment in developments in progress | -1,441 | -212 |
Investment in unconsolidated joint ventures | -25 | -630 |
Net cash (used in) provided by investing activities | -28,645 | 23,377 |
Cash flows from financing activities: | ' | ' |
Proceeds from mortgages and notes payable | 1,622 | 0 |
Principal payments on mortgages and notes payable | -50,114 | -171,674 |
Proceeds from credit facility | 101,000 | 140,000 |
Repayments of credit facility | -36,000 | -55,000 |
Proceeds from issuance of common stock | 0 | 830 |
Distributions paid | -41,500 | -38,200 |
Other, net | -37 | -446 |
Net cash used in financing activities | -25,029 | -124,490 |
Net increase (decrease) in cash and cash equivalents | 4,477 | -70,623 |
Cash and cash equivalents, at beginning of period | 58,190 | 138,069 |
Cash and cash equivalents, at end of period | 62,667 | 67,446 |
Supplemental cash flow disclosure, including non-cash activities: | ' | ' |
Cash paid for interest | 26,813 | 37,391 |
Distributions payable | 39,181 | 40,843 |
Accrued capital expenditures and tenant improvements | 5,217 | 5,270 |
Accrued leasing fees and inducements | 338 | 667 |
Accrued development expenditures | 429 | 121 |
Purchase of investment properties (after credits at closing): | ' | ' |
Land, building and other improvements, net | -28,112 | 0 |
Accounts receivable, acquired lease intangible and other assets | -1,492 | 0 |
Accounts payable, acquired lease intangible and other liabilities | 1,280 | 0 |
Purchase of investment properties (after credits at closing) | -28,324 | 0 |
Proceeds from sales of investment properties: | ' | ' |
Land, building and other improvements, net | 8,079 | 18,233 |
Accounts receivable, acquired lease intangible and other assets | 494 | 2,826 |
Accounts payable, acquired lease intangible and other liabilities | -24 | 0 |
Deferred gain | 0 | 904 |
Gain on sales of investment properties | 655 | 9,173 |
Proceeds from sales of investment properties | $9,204 | $31,136 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Organization and Basis of Presentation | ' | ||||||||
Organization and Basis of Presentation | |||||||||
Retail Properties of America, Inc. (the Company) was formed on March 5, 2003 to own and operate high quality, strategically located shopping centers in the United States. | |||||||||
All share amounts and dollar amounts in this Quarterly Report are stated in thousands with the exception of per share amounts and per square foot amounts. | |||||||||
The Company has elected to be taxed as a real estate investment trust (REIT) under the Internal Revenue Code of 1986, as amended (the Code). The Company believes it qualifies for taxation as a REIT and, as such, the Company generally will not be subject to U.S. federal income tax on taxable income that is distributed to shareholders. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal income tax on its taxable income at regular corporate tax rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income, property or net worth and U.S. federal income and excise taxes on its undistributed income. The Company has one wholly-owned subsidiary that has jointly elected to be treated as a taxable REIT subsidiary (TRS) for U.S. federal income tax purposes. A TRS is taxed on its taxable income at regular corporate tax rates. The income tax expense incurred as a result of the TRS did not have a material impact on the Company’s accompanying condensed consolidated financial statements. | |||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. For example, significant estimates and assumptions have been made with respect to useful lives of assets, capitalization of development and leasing costs, fair value measurements, provision for impairment, including estimates of holding periods, capitalization rates and discount rates (where applicable), provision for income taxes, recoverable amounts of receivables, deferred taxes and initial valuations and related amortization periods of deferred costs and intangibles, particularly with respect to property acquisitions. Actual results could differ from those estimates. | |||||||||
The accompanying condensed consolidated financial statements include the accounts of the Company, as well as all wholly-owned subsidiaries and consolidated joint venture investments. Wholly-owned subsidiaries generally consist of limited liability companies (LLCs), limited partnerships (LPs) and statutory trusts. | |||||||||
The Company’s property ownership as of March 31, 2014 is summarized below: | |||||||||
Wholly-owned | Consolidated | Unconsolidated | |||||||
Joint Ventures (a) | Joint Ventures (b) | ||||||||
Operating properties (c) | 230 | — | 6 | ||||||
Development properties | 2 | 1 | — | ||||||
(a) | The Company has a 50% ownership interest in one LLC. | ||||||||
(b) | The Company has a 20% ownership interest in one LLC. | ||||||||
(c) | Excludes one wholly-owned property classified as held for sale as of March 31, 2014. | ||||||||
Noncontrolling interest is the portion of equity in a consolidated subsidiary not attributable, directly or indirectly, to the Company. In the condensed consolidated statements of operations and other comprehensive income (loss), revenues, expenses and net income or loss from less-than-wholly-owned consolidated subsidiaries are reported at the consolidated amounts, including both the amounts attributable to common shareholders and noncontrolling interests. Condensed consolidated statements of equity are included in the quarterly financial statements, including beginning balances, activity for the period and ending balances for total shareholders’ equity, noncontrolling interests and total equity. Noncontrolling interests are adjusted for additional contributions from and distributions to noncontrolling interest holders, as well as the noncontrolling interest holders’ share of the net income or loss of each respective entity, as applicable. As of March 31, 2014, the Company is the controlling member in one less-than-wholly-owned consolidated entity. | |||||||||
The Company evaluates the classification and presentation of noncontrolling interests associated with its consolidated joint venture investments on an ongoing basis as facts and circumstances necessitate. No adjustment to the carrying value of the noncontrolling interests in the Company’s consolidated joint venture investments was made during the three months ended March 31, 2014 and 2013. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Except as disclosed below, there have been no changes to the Company’s significant accounting policies in the three months ended March 31, 2014. Refer to the Company’s 2013 Annual Report on Form 10-K for a summary of the Company’s remaining significant accounting policies. | |
Recent Accounting Pronouncements | |
Effective January 1, 2014, companies are required to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. To the extent none of these are available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of this pronouncement did not have any effect on the Company’s condensed consolidated financial statements. | |
Effective January 1, 2015, with early adoption permitted effective January 1, 2014, the definition of discontinued operations has been revised to limit what qualifies for this classification and presentation to disposals of components of a company that represent strategic shifts that have (or will have) a major effect on a company’s operations and financial results. Required expanded disclosures for disposals or disposal groups that qualify for discontinued operations are intended to provide users of financial statements with enhanced information about the assets, liabilities, revenues and expenses of such discontinued operations. In addition, in accordance with this pronouncement, companies are required to disclose the pretax profit or loss of an individually significant component that does not qualify for discontinued operations treatment. While the threshold for a disposal or disposal group to qualify for discontinued operations treatment has been revised, this pronouncement retains the held for sale classification and presentation concepts of previous authoritative literature. Accordingly, under this pronouncement, a disposal or disposal group may qualify for held for sale classification but not meet the threshold for discontinued operations treatment. The Company has elected to early adopt this pronouncement effective January 1, 2014. The adoption, which is applied prospectively, is anticipated to substantially reduce the number of the Company’s transactions, going forward, that qualify for discontinued operations as compared to historical results. Upon adoption of this pronouncement effective January 1, 2014, the investment property that was classified as held for sale as of March 31, 2014, which would have qualified for discontinued operations treatment under the previous standard, did not qualify for discontinued operations and, as such, is reflected in continuing operations on the condensed consolidated statements of operations and other comprehensive income (loss). |
Acquisitions
Acquisitions | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Acquisitions | ' | ||||
Acquisitions | |||||
During the three months ended March 31, 2014, the Company acquired a 100% interest in Heritage Square, a 53,100 square foot multi-tenant retail property located in Issaquah, Washington, for a purchase price of $18,022 using proceeds from its unsecured revolving line of credit. In addition, the Company paid $10,350 to acquire the fee interest in the Company’s 97,500 square foot Bed Bath & Beyond Plaza consolidated multi-tenant retail operating property located in Miami, Florida that was previously subject to a ground lease with a third party. The Company did not acquire any properties during the three months ended March 31, 2013. | |||||
The following table summarizes the acquisition date fair values, before prorations, the Company recorded in conjunction with the acquisitions discussed above: | |||||
Land | $ | 16,727 | |||
Building and other improvements | 11,385 | ||||
Acquired lease intangible assets | 1,492 | ||||
Acquired lease intangible liabilities | (1,232 | ) | |||
Net assets acquired | $ | 28,372 | |||
Transaction costs, which were not material, were expensed as incurred and included within “General and administrative expenses” in the accompanying condensed consolidated statements of operations and other comprehensive income (loss). In conjunction with the Bed Bath & Beyond Plaza transaction, the Company reversed a straight-line ground rent liability of $4,258, which is presented in “Gain on extinguishment of other liabilities” in the accompanying condensed consolidated statements of operations and other comprehensive income (loss). |
Dispositions
Dispositions | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||||||||||
Dispositions | ' | |||||||||||||||||||||||
Dispositions | ||||||||||||||||||||||||
The Company monitors its investment properties to ensure that each property continues to meet financial and strategic objectives. This approach results in the sale of certain non-core and non-strategic assets that no longer meet the Company’s investment criteria. | ||||||||||||||||||||||||
The Company sold one property during the three months ended March 31, 2014, as summarized below: | ||||||||||||||||||||||||
Date | Property Name | Property Type | Square | Consideration | Aggregate | Mortgage | Gain | |||||||||||||||||
Footage | Proceeds, Net | Debt | ||||||||||||||||||||||
Extinguished | ||||||||||||||||||||||||
March 11, 2014 | Riverpark Phase IIA | Single-user retail | 64,300 | $ | 9,269 | $ | 9,204 | $ | — | (a) | $ | 655 | ||||||||||||
(a) | The Company repaid the $6,435 mortgage payable prior to the disposition of the property. | |||||||||||||||||||||||
During the year ended December 31, 2013, the Company sold 20 properties, three of which were sold during the three months ended March 31, 2013. The dispositions and additional transactions, including condemnation awards and earnouts, during the three months ended March 31, 2013 resulted in aggregate proceeds, net of transaction costs, to the Company of $31,136 with aggregate gains of $9,173. | ||||||||||||||||||||||||
As of March 31, 2014, the Company had entered into a contract to sell Midtown Center, a 408,500 square foot multi-tenant retail property located in Milwaukee, Wisconsin. This property qualified for held for sale accounting treatment upon meeting all applicable GAAP criteria on or prior to March 31, 2014, at which time depreciation and amortization were ceased. As such, the assets and liabilities associated with this property are separately classified as held for sale in the condensed consolidated balance sheet as of March 31, 2014. However, the anticipated disposition of Midtown Center did not qualify for discontinued operations treatment and, therefore, the operations for all periods presented continue to be classified within continuing operations in the condensed consolidated statements of operations and other comprehensive income (loss). Riverpark Phase IIA was classified as held for sale as of December 31, 2013. The following table presents the assets and liabilities associated with the held for sale properties: | ||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Land, building and other improvements | $ | 45,182 | $ | 10,285 | ||||||||||||||||||||
Accumulated depreciation | — | (2,206 | ) | |||||||||||||||||||||
Net investment properties | 45,182 | 8,079 | ||||||||||||||||||||||
Other assets | 3,560 | 537 | ||||||||||||||||||||||
Assets associated with investment properties held for sale | $ | 48,742 | $ | 8,616 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Mortgages payable | $ | 30,124 | $ | 6,435 | ||||||||||||||||||||
Other liabilities | 1,134 | 168 | ||||||||||||||||||||||
Liabilities associated with investment properties held for sale | $ | 31,258 | $ | 6,603 | ||||||||||||||||||||
The Company does not allocate general corporate interest expense to discontinued operations. The results of operations for the investment properties that are accounted for as discontinued operations, which population consists of investment properties sold and classified as held for sale on or prior to December 31, 2013, including Riverpark Phase IIA, are presented in the table below: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Rental income | $ | (123 | ) | $ | 6,913 | |||||||||||||||||||
Tenant recovery income | 144 | 1,612 | ||||||||||||||||||||||
Other property income | 23 | 108 | ||||||||||||||||||||||
Total revenues | 44 | 8,633 | ||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Property operating expenses | 121 | 1,649 | ||||||||||||||||||||||
Real estate taxes | 3 | 1,572 | ||||||||||||||||||||||
Depreciation and amortization | — | 3,456 | ||||||||||||||||||||||
Interest expense | 68 | 1,430 | ||||||||||||||||||||||
Other income, net | — | (50 | ) | |||||||||||||||||||||
Total expenses | 192 | 8,057 | ||||||||||||||||||||||
(Loss) income from discontinued operations, net | $ | (148 | ) | $ | 576 | |||||||||||||||||||
Compensation_Plans
Compensation Plans | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Compensation Plans | ' | ||||||
Compensation Plans | |||||||
The Company’s Equity Compensation Plan (Equity Plan), subject to certain conditions, authorizes the issuance of stock options, restricted stock, stock appreciation rights and other similar awards to the Company’s employees in connection with compensation and incentive arrangements that may be established by the Company’s board of directors or executive management. In addition, the Company has an Independent Director Stock Option and Incentive Plan (Director Plan) which authorizes the issuance of stock options, restricted stock awards, restricted stock units, unrestricted stock awards and dividend equivalent rights to the Company’s non-employee directors. | |||||||
The following table represents a summary of the Company’s unvested restricted shares, which were granted to either the Company’s employees pursuant to the Equity Plan or to non-employee directors pursuant to the Director Plan, as of and for the three months ended March 31, 2014: | |||||||
Unvested | Weighted Average | ||||||
Restricted | Grant Date Fair | ||||||
Shares | Value per | ||||||
Restricted Share | |||||||
Balance at January 1, 2014 | 152 | $ | 15.11 | ||||
Shares granted (a) | 262 | $ | 13.71 | ||||
Shares vested | — | $ | — | ||||
Shares forfeited | — | $ | — | ||||
Balance at March 31, 2014 | 414 | $ | 14.22 | ||||
(a) | Shares granted will vest ratably over periods ranging from one to three years in accordance with the terms of applicable award documents. | ||||||
During the three months ended March 31, 2014 and 2013, the Company recorded compensation expense of $587 and $63, respectively, related to unvested restricted shares. As of March 31, 2014, total unrecognized compensation expense related to unvested restricted shares was $4,341, which is expected to be amortized over a weighted average term of 1.5 years. | |||||||
Under the Company’s Director Plan, prior to 2013, non-employee directors had been granted options to acquire shares. As of March 31, 2014, options to purchase 84 shares of common stock had been granted, of which options to purchase one share had been exercised and options to purchase five shares had expired. Compensation expense of $2 and $7 related to these options was recorded during the three months ended March 31, 2014 and 2013, respectively. The Company did not grant any options in 2013 or 2014. |
Mortgages_Payable
Mortgages Payable | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Mortgages Payable | ' | |||||||||||||||||||||||||||
Mortgages Payable | ||||||||||||||||||||||||||||
The following table summarizes the Company’s mortgages payable: | ||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Aggregate Principal Balance | Weighted Average Interest Rate | Weighted Average Years to Maturity | Aggregate Principal Balance | Weighted Average Interest Rate | Weighted Average Years to Maturity | |||||||||||||||||||||||
Fixed rate mortgages payable (a) | $ | 1,599,277 | 6.15 | % | 4.8 | $ | 1,673,080 | 6.15 | % | 4.9 | ||||||||||||||||||
Variable rate construction loan (b) | 12,981 | 2.44 | % | 0.6 | 11,359 | 2.44 | % | 0.8 | ||||||||||||||||||||
Mortgages payable | 1,612,258 | 6.12 | % | 4.8 | 1,684,439 | 6.13 | % | 4.9 | ||||||||||||||||||||
Premium, net of accumulated amortization | 1,037 | 1,175 | ||||||||||||||||||||||||||
Discount, net of accumulated amortization | (853 | ) | (981 | ) | ||||||||||||||||||||||||
Mortgages payable, net | $ | 1,612,442 | 6.12 | % | 4.8 | $ | 1,684,633 | 6.13 | % | 4.9 | ||||||||||||||||||
(a) | Includes $8,284 and $8,337 of variable rate mortgage debt that was swapped to a fixed rate as of March 31, 2014 and December 31, 2013, respectively, and excludes mortgages payable of $30,124 and $6,435 associated with properties classified as held for sale as of March 31, 2014 and December 31, 2013, respectively. The fixed rate mortgages had interest rates ranging from 3.50% to 8.00% as of March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
(b) | The variable rate construction loan bears interest at a floating rate of London Interbank Offered Rate (LIBOR) plus 2.25%. | |||||||||||||||||||||||||||
Mortgages Payable | ||||||||||||||||||||||||||||
During the three months ended March 31, 2014, the Company made mortgages payable repayments in the total amount of $46,178 (excluding scheduled principal payments of $3,936 related to amortizing loans). The loans repaid during the three months ended March 31, 2014 had fixed interest rates with a weighted average interest rate of 5.87%. | ||||||||||||||||||||||||||||
The majority of the Company’s mortgages payable require monthly payments of principal and interest, as well as reserves for real estate taxes and certain other costs. The Company’s properties and the related tenant leases are pledged as collateral for the fixed rate mortgages payable while a consolidated joint venture property and the related tenant leases are pledged as collateral for the construction loan. Although the mortgage loans obtained by the Company are generally non-recourse, occasionally, the Company may guarantee all or a portion of the debt on a full-recourse basis. As of March 31, 2014, the Company had guaranteed $7,264 of the outstanding mortgage and construction loans with maturity dates ranging from November 2, 2014 through September 30, 2016 (see Note 14). At times, the Company has borrowed funds financed as part of a cross-collateralized package, with cross-default provisions, in order to enhance the financial benefits of a transaction. In those circumstances, one or more of the properties may secure the debt of another of the Company’s properties. As of March 31, 2014, the most significant cross-collateralized mortgage was the IW JV 2009, LLC mortgage in the amount of $480,265, which is cross-collateralized by 55 properties. | ||||||||||||||||||||||||||||
Debt Maturities | ||||||||||||||||||||||||||||
The following table shows the scheduled maturities and required principal payments of the Company’s mortgages payable and credit facility (as described in Note 7) as of March 31, 2014 for the remainder of 2014, each of the next four years and thereafter and does not reflect the impact of any debt activity that occurred after March 31, 2014: | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||
Fixed rate debt: | ||||||||||||||||||||||||||||
Mortgages payable (a) | $ | 17,509 | $ | 384,557 | $ | 46,172 | $ | 296,019 | $ | 12,369 | $ | 842,651 | $ | 1,599,277 | ||||||||||||||
Unsecured credit facility - fixed rate portion of term loan (b) | — | — | — | — | 300,000 | — | 300,000 | |||||||||||||||||||||
Total fixed rate debt | 17,509 | 384,557 | 46,172 | 296,019 | 312,369 | 842,651 | 1,899,277 | |||||||||||||||||||||
Variable rate debt: | ||||||||||||||||||||||||||||
Construction loan | 12,981 | — | — | — | — | — | 12,981 | |||||||||||||||||||||
Unsecured credit facility | — | — | — | 230,000 | 150,000 | — | 380,000 | |||||||||||||||||||||
Total variable rate debt | 12,981 | — | — | 230,000 | 150,000 | — | 392,981 | |||||||||||||||||||||
Total debt (c) | $ | 30,490 | $ | 384,557 | $ | 46,172 | $ | 526,019 | $ | 462,369 | $ | 842,651 | $ | 2,292,258 | ||||||||||||||
Weighted average interest rate on debt: | ||||||||||||||||||||||||||||
Fixed rate debt | 6.68 | % | 5.7 | % | 5.86 | % | 5.66 | % | 2.19 | % | 6.52 | % | 5.49 | % | ||||||||||||||
Variable rate debt | 2.44 | % | — | — | 1.66 | % | 1.61 | % | — | 1.67 | % | |||||||||||||||||
Total | 4.87 | % | 5.7 | % | 5.86 | % | 3.91 | % | 2 | % | 6.52 | % | 4.84 | % | ||||||||||||||
(a) | Excludes mortgage premium of $1,037 and discount of $(853), net of accumulated amortization, which was outstanding as of March 31, 2014 and mortgages payable of $30,124 associated with one investment property classified as held for sale as of March 31, 2014. Includes $8,284 of variable rate mortgage debt that was swapped to a fixed rate as of March 31, 2014. | |||||||||||||||||||||||||||
(b) | In July 2012, the Company entered into an interest rate swap transaction to convert the variable rate portion of $300,000 of LIBOR-based debt to a fixed rate through February 24, 2016. The swap effectively converts one-month floating rate LIBOR to a fixed rate of 0.53875% over the term of the swap. | |||||||||||||||||||||||||||
(c) | As of March 31, 2014, the weighted average years to maturity of consolidated indebtedness was 4.5 years. | |||||||||||||||||||||||||||
The Company plans on addressing its mortgages payable maturities by using proceeds from its unsecured revolving line of credit and capital markets transactions. |
Credit_Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2014 | |
Line of Credit Facility [Abstract] | ' |
Credit Facility | ' |
Credit Facility | |
On May 13, 2013, the Company entered into its third amended and restated unsecured credit agreement with a syndicate of financial institutions led by KeyBank National Association and Wells Fargo Securities LLC to provide for an unsecured credit facility aggregating to $1,000,000. The third amended and restated credit facility consists of a $550,000 unsecured revolving line of credit and a $450,000 unsecured term loan (collectively, the credit facility). The Company has the ability to increase available borrowings up to $1,450,000 in certain circumstances. The unsecured revolving line of credit matures on May 12, 2017 and the unsecured term loan matures on May 11, 2018. The Company has a one year extension option on the unsecured revolving line of credit which it may exercise as long as it is in compliance with the terms of the unsecured credit agreement and it pays an extension fee equal to 0.15% of the commitment amount being extended. | |
The credit facility is currently priced on a leverage grid at a rate of LIBOR plus a margin ranging from 1.50% to 2.05% for the unsecured revolving line of credit and LIBOR plus a margin ranging from 1.45% to 2.00% for the unsecured term loan, along with a quarterly unused fee ranging from 0.25% to 0.30% depending on the undrawn amount. On January 27, 2014, the Company received an investment grade credit rating. In accordance with the unsecured credit agreement, the Company may elect to convert to an investment grade pricing grid. Upon making such an election and depending on the Company’s credit rating, the interest rate for the unsecured revolving line of credit would equal LIBOR plus a margin ranging from 0.90% to 1.70%, plus a facility fee ranging from 0.15% to 0.35%, and for the unsecured term loan, LIBOR plus a margin ranging from 1.05% to 2.05%. | |
The unsecured credit agreement contains customary representations, warranties and covenants, and events of default. Pursuant to the terms of the unsecured credit agreement, the Company is subject to various financial covenants, including the requirement to maintain the following: (i) maximum unsecured, secured and total leverage ratios; (ii) minimum fixed charge and unencumbered interest coverage ratios; and (iii) a minimum consolidated net worth. As of March 31, 2014, management believes the Company was in compliance with the financial covenants and default provisions under the unsecured credit agreement. | |
The Company has an interest rate swap with one of the financial institutions associated with the credit facility to convert the variable rate portion of $300,000 of LIBOR-based debt to a fixed rate of 0.53875% through February 24, 2016. As of March 31, 2014, the weighted average interest rate on the unsecured revolving line of credit was 1.66% and the weighted average interest rate on the unsecured term loan was 1.86%. Upon closing the amended unsecured credit agreement, the Company borrowed the full amount of the unsecured term loan, which, as of March 31, 2014, remains outstanding. As of March 31, 2014, the Company had borrowed $230,000 under the unsecured revolving line of credit. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
The Company’s objective in using interest rate derivatives is to manage its exposure to interest rate movements and add stability to interest expense. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreement without exchange of the underlying notional amount. | |||||||||||||||||||||||||||||
The Company utilizes two interest rate swaps to hedge the variable cash flows associated with variable rate debt. The effective portion of changes in the fair value of derivatives that are designated and that qualify as cash flow hedges is recorded in “Accumulated other comprehensive loss” and is subsequently reclassified to interest expense as interest payments are made on the Company’s variable rate debt. Over the next 12 months, the Company estimates that an additional $1,096 will be reclassified as an increase to interest expense. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. | |||||||||||||||||||||||||||||
The Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk: | |||||||||||||||||||||||||||||
Number of Instruments | Notional | ||||||||||||||||||||||||||||
Interest Rate Derivatives | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Interest rate swap | 2 | 2 | $ | 308,284 | $ | 308,337 | |||||||||||||||||||||||
The table below presents the estimated fair value of the Company’s derivative financial instruments, which are presented within “Other liabilities” in the condensed consolidated balance sheets. The valuation techniques utilized are described in Note 13 to the condensed consolidated financial statements. | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 756 | $ | 751 | |||||||||||||||||||||||||
The table below presents the effect of the Company’s derivative financial instruments on the condensed consolidated statements of operations and other comprehensive income (loss) for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Derivatives in | Amount of Loss | Location of Loss | Amount of Loss | Location of | Amount of (Gain) Loss | ||||||||||||||||||||||||
Cash Flow | Recognized in Other Comprehensive Income | Reclassified from | Reclassified from | (Gain) Loss | Recognized in Income | ||||||||||||||||||||||||
Hedging | on Derivative | Accumulated Other | AOCI into Income | Recognized In | on Derivative | ||||||||||||||||||||||||
Relationships | (Effective Portion) | Comprehensive Income (AOCI) into Income | (Effective Portion) | Income on Derivative | (Ineffective Portion and | ||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion and Amount | Amount Excluded from | |||||||||||||||||||||||||||
Excluded from | Effectiveness Testing) | ||||||||||||||||||||||||||||
Effectiveness Testing) | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Interest rate swaps | $ | 309 | $ | 51 | Interest expense | $ | 291 | $ | 517 | Other income, net | $ | (13 | ) | $ | 153 | ||||||||||||||
Investment_in_Unconsolidated_J
Investment in Unconsolidated Joint Ventures | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Investment in Unconsolidated Joint Ventures | ' | ||||||||||||||||||||||||||||||||
Investment in Unconsolidated Joint Ventures | |||||||||||||||||||||||||||||||||
Investment Summary | |||||||||||||||||||||||||||||||||
The following table summarizes the Company’s investments in unconsolidated joint ventures: | |||||||||||||||||||||||||||||||||
Ownership Interest | Investment at | ||||||||||||||||||||||||||||||||
Joint Venture | Date of | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||||||||||
Investment | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
MS Inland Fund, LLC (a) | 4/27/07 | 20 | % | 20 | % | $ | 6,403 | $ | 6,915 | ||||||||||||||||||||||||
Oak Property and Casualty LLC (b) | 10/1/06 | 20 | % | 20 | % | 7,865 | 8,861 | ||||||||||||||||||||||||||
$ | 14,268 | $ | 15,776 | ||||||||||||||||||||||||||||||
(a) | The MS Inland Fund, LLC (MS Inland) joint venture was formed with a large state pension fund; the Company is the managing member of the venture and earns fees for providing property management and leasing services. The Company has the ability to exercise significant influence, but does not have financial or operating control over this joint venture, and as a result the Company accounts for its investment pursuant to the equity method of accounting. Subsequent to March 31, 2014, the Company entered into an agreement to dissolve its joint venture arrangement with its partner in MS Inland through the acquisition of its partner’s 80% interest in the six multi-tenant retail properties owned by the joint venture. The transaction is expected to close in June 2014, subject to customary closing conditions. | ||||||||||||||||||||||||||||||||
(b) | Oak Property & Casualty LLC (the Captive) is an insurance association owned by the Company and four other unaffiliated parties. The Captive was formed to insure/reimburse the members’ deductible obligations for property and general liability insurance claims subject to certain limitations. The Company entered into the Captive to stabilize insurance costs, manage exposures and recoup expenses through the function of the Captive. It has been determined that the Captive is a VIE, but because the Company does not hold the power to most significantly impact the Captive’s performance, the Company is not considered the primary beneficiary. Accordingly, the Company’s investment in the Captive is accounted for pursuant to the equity method of accounting. The Company’s risk of loss is limited to its investment and the Company is not required to fund additional capital to the Captive. | ||||||||||||||||||||||||||||||||
Under the equity method of accounting, the net equity investment of the Company is reflected in the accompanying condensed consolidated balance sheets and the Company’s share of net income or loss from each unconsolidated joint venture is reflected in the accompanying condensed consolidated statements of operations and other comprehensive income (loss). Distributions from these investments that are related to income from operations are included as operating activities and distributions that are related to capital transactions are included as investing activities in the accompanying condensed consolidated statements of cash flows. | |||||||||||||||||||||||||||||||||
Combined condensed financial information of the Company’s joint ventures (at 100%) for the periods attributable to the Company’s ownership is summarized as follows: | |||||||||||||||||||||||||||||||||
Combined | |||||||||||||||||||||||||||||||||
Condensed Total | |||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Real estate assets | $ | 270,930 | $ | 270,916 | |||||||||||||||||||||||||||||
Less accumulated depreciation | (54,647 | ) | (52,624 | ) | |||||||||||||||||||||||||||||
Real estate, net | 216,283 | 218,292 | |||||||||||||||||||||||||||||||
Other assets, net | 44,239 | 49,227 | |||||||||||||||||||||||||||||||
Total assets | $ | 260,522 | $ | 267,519 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Mortgage debt | $ | 142,183 | $ | 142,537 | |||||||||||||||||||||||||||||
Other liabilities, net | 19,992 | 22,725 | |||||||||||||||||||||||||||||||
Total liabilities | 162,175 | 165,262 | |||||||||||||||||||||||||||||||
Total equity | 98,347 | 102,257 | |||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 260,522 | $ | 267,519 | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
RioCan (a) | Hampton (b) | Other Joint Ventures | Combined | ||||||||||||||||||||||||||||||
Condensed Total | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||
Property related income | $ | — | $ | 12,350 | $ | — | $ | — | $ | 6,886 | $ | 6,760 | $ | 6,886 | $ | 19,110 | |||||||||||||||||
Other income | — | — | — | — | 2,118 | 2,022 | 2,118 | 2,022 | |||||||||||||||||||||||||
Total revenues | — | 12,350 | — | — | 9,004 | 8,782 | 9,004 | 21,132 | |||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||
Property operating expenses | — | 1,682 | — | — | 929 | 863 | 929 | 2,545 | |||||||||||||||||||||||||
Real estate taxes | — | 2,043 | — | — | 1,312 | 1,307 | 1,312 | 3,350 | |||||||||||||||||||||||||
Depreciation and amortization | — | 7,355 | — | — | 2,418 | 2,475 | 2,418 | 9,830 | |||||||||||||||||||||||||
Loss (gain) on lease terminations | — | 539 | — | — | (179 | ) | 6 | (179 | ) | 545 | |||||||||||||||||||||||
General and administrative expenses | — | 144 | — | 2 | 78 | 98 | 78 | 244 | |||||||||||||||||||||||||
Interest expense, net | — | 2,474 | — | (1,526 | ) | 1,770 | 1,783 | 1,770 | 2,731 | ||||||||||||||||||||||||
Other expense, net | — | — | — | — | 3,078 | 1,956 | 3,078 | 1,956 | |||||||||||||||||||||||||
Total expenses | — | 14,237 | — | (1,524 | ) | 9,406 | 8,488 | 9,406 | 21,201 | ||||||||||||||||||||||||
(Loss) income from continuing operations | — | (1,887 | ) | — | 1,524 | (402 | ) | 294 | (402 | ) | (69 | ) | |||||||||||||||||||||
(Loss) income from discontinued operations (c) | — | (452 | ) | — | (48 | ) | 3 | 47 | 3 | (453 | ) | ||||||||||||||||||||||
Gain on sales of investment properties - discontinued operations | — | — | — | 1,019 | — | — | — | 1,019 | |||||||||||||||||||||||||
Net (loss) income | $ | — | $ | (2,339 | ) | $ | — | $ | 2,495 | $ | (399 | ) | $ | 341 | $ | (399 | ) | $ | 497 | ||||||||||||||
(a) | On October 1, 2013, the Company dissolved its joint venture arrangement with its partner in RC Inland L.P. (RioCan). | ||||||||||||||||||||||||||||||||
(b) | During 2013, the Company dissolved its joint venture arrangement with its partner in Hampton Retail Colorado, L.L.C. (Hampton). | ||||||||||||||||||||||||||||||||
(c) | Included within “(Loss) income from discontinued operations” are the following: property-level operating results attributable to the five properties the Company acquired from its RioCan unconsolidated joint venture on October 1, 2013; all property-level operating results attributable to the Hampton unconsolidated joint venture; and, the property-level operating results recognized by the Company’s MS Inland unconsolidated joint venture related to a property sold to the Company’s RioCan unconsolidated joint venture. The property-level operating results of the eight RioCan properties in which the Company’s partner acquired the Company’s 20% interest are presented within “(Loss) income from continuing operations” above given the continuity of the controlling financial interest before and after the dissolution transaction. | ||||||||||||||||||||||||||||||||
Profits, Losses and Capital Activity | |||||||||||||||||||||||||||||||||
The following table summarizes the Company’s share of net income (loss) as well as net cash distributions from (contributions to) each unconsolidated joint venture: | |||||||||||||||||||||||||||||||||
The Company’s Share | Net Cash Distributions from/ | Fees Earned by the | |||||||||||||||||||||||||||||||
of Net Income (Loss) | (Contributions to) Joint | Company for the Three | |||||||||||||||||||||||||||||||
for the Three Months | Ventures for the Three | Months Ended March 31, | |||||||||||||||||||||||||||||||
Ended March 31, | Months Ended March 31, | ||||||||||||||||||||||||||||||||
Joint Venture | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
MS Inland | $ | 173 | $ | 124 | $ | 755 | $ | 952 | $ | 211 | $ | 228 | |||||||||||||||||||||
Captive | (1,021 | ) | (921 | ) | (25 | ) | — | — | — | ||||||||||||||||||||||||
Hampton (a) | — | 2,409 | — | 16 | — | 1 | |||||||||||||||||||||||||||
RioCan (b) | — | (322 | ) | — | 556 | — | 583 | ||||||||||||||||||||||||||
$ | (848 | ) | $ | 1,290 | $ | 730 | $ | 1,524 | $ | 211 | $ | 812 | |||||||||||||||||||||
(a) | During the three months ended March 31, 2013, Hampton determined that the carrying value of certain of its assets was not recoverable and, accordingly, recorded property level impairment charges in the amount of $234, of which the Company’s share was $224. The joint venture’s estimate of fair value relating to this impairment assessment was based upon a bona fide purchase offer. During 2013, the Company dissolved its joint venture arrangement with its partner in Hampton. | ||||||||||||||||||||||||||||||||
(b) | On October 1, 2013, the Company dissolved its joint venture arrangement with its partner in RioCan. | ||||||||||||||||||||||||||||||||
In addition to the Company’s share of net income (loss) for each unconsolidated joint venture, amortization of basis differences resulting from the Company’s previous contributions of investment properties to its unconsolidated joint ventures is recorded within “Equity in loss of unconsolidated joint ventures, net” in the condensed consolidated statements of operations and other comprehensive income (loss). Such basis differences resulted from the differences between the historical cost net book values and fair values of the contributed properties and are amortized over the depreciable lives of the joint ventures’ real estate assets and liabilities. The Company recorded amortization of $70 and $9, which were accretive to net income, related to these differences during the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
The Company’s investments in unconsolidated joint ventures are reviewed for potential impairment, in addition to impairment evaluations of the individual assets underlying these investments, whenever events or changes in circumstances warrant such an evaluation. To determine whether impairment, if any, is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until the carrying value is fully recovered. As a result of such evaluations, an impairment charge of $1,700 was recorded during the three months ended March 31, 2013 to write down the carrying value of the Company’s investment in Hampton. The Company’s Hampton joint venture arrangement was dissolved during the year ended December 31, 2013. No impairment charges to the Company’s investments in unconsolidated joint ventures were considered necessary during the three months ended March 31, 2014. |
Equity
Equity | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Equity | ' | |||||||||||
Equity | ||||||||||||
On March 7, 2013, the Company established an at-the-market (ATM) equity program under which it may sell shares of its Class A common stock, having an aggregate offering price of up to $200,000, from time to time. Actual sales may depend on a variety of factors, including, among others, market conditions and the trading price of the Company’s Class A common stock. The net proceeds are expected to be used for general corporate purposes, which may include repaying debt, including the Company's revolving line of credit, and funding acquisitions. | ||||||||||||
The Company did not sell any shares under its ATM equity program during the three months ended March 31, 2014. | ||||||||||||
The following table presents activity under the Company’s ATM equity program: | ||||||||||||
Number of common shares sold | Total net consideration | Average price per share | ||||||||||
Three months ended March 31, 2013 | 56 | $ | 688 | $ | 14.94 | |||||||
Three months ended March 31, 2014 | — | $ | — | $ | — | |||||||
As of March 31, 2014, the Company had common shares having an aggregate offering price of up to $115,165 remaining available for sale under its ATM equity program. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Earnings per Share | ' | |||||||||
Earnings per Share | ||||||||||
The following is a reconciliation between weighted average shares used in the basic and diluted earnings per share (EPS) calculations, excluding amounts attributable to noncontrolling interests: | ||||||||||
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Numerator: | ||||||||||
Income (loss) from continuing operations | $ | 13,621 | $ | (11,629 | ) | |||||
Gain on sales of investment properties | — | 4,264 | ||||||||
Preferred stock dividends | (2,362 | ) | (2,362 | ) | ||||||
Income (loss) from continuing operations attributable to common shareholders | 11,259 | (9,727 | ) | |||||||
Income from discontinued operations | 507 | 5,485 | ||||||||
Net income (loss) attributable to common shareholders | 11,766 | (4,242 | ) | |||||||
Distributions paid on unvested restricted shares | (25 | ) | (8 | ) | ||||||
Net income (loss) attributable to common shareholders excluding amounts | $ | 11,741 | $ | (4,250 | ) | |||||
attributable to unvested restricted shares | ||||||||||
Denominator: | ||||||||||
Denominator for earnings (loss) per common share — basic: | ||||||||||
Weighted average number of common shares outstanding | 236,151 | (a) | 230,611 | (b) | ||||||
Effect of dilutive securities — stock options | 2 | (c) | — | (c) | ||||||
Denominator for earnings (loss) per common share — diluted: | ||||||||||
Weighted average number of common and common equivalent shares outstanding | 236,153 | 230,611 | ||||||||
(a) | Excluded from this weighted average amount are 414 shares of restricted common stock, which equate to 264 shares on a weighted average basis for the three months ended March 31, 2014. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. | |||||||||
(b) | Excluded from this weighted average amount are 95 shares of restricted common stock, which equate to 67 shares on a weighted average basis for the three months ended March 31, 2013. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. | |||||||||
(c) | There were outstanding options to purchase 78 and 80 shares of common stock as of March 31, 2014 and 2013, respectively, at a weighted average exercise price of $19.10 and $19.17, respectively. Of these outstanding options, 64 and 80 shares of common stock as of March 31, 2014 and 2013, respectively, at a weighted average exercise price of $20.71 and $19.17, respectively, have been excluded from the common shares used in calculating diluted earnings per share as including them would be anti-dilutive. |
Provision_for_Impairment_of_In
Provision for Impairment of Investment Properties | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | ' | |||||||||||
Provision for Impairment of Investment Properties | ' | |||||||||||
Provision for Impairment of Investment Properties | ||||||||||||
As of March 31, 2014, the Company identified certain indicators of impairment for 12 of its properties, one of which was classified as held for sale as of March 31, 2014. Such indicators included a low occupancy rate, difficulty in leasing space and related cost of re-leasing, financially troubled tenants or reduced anticipated holding periods. The Company performed cash flow analyses during the three months ended March 31, 2014 and determined it necessary to record an impairment charge to write down the carrying value of its investment in the property that was classified as held for sale as of March 31, 2014 to its estimated fair value. For the remaining 11 properties, the Company determined that the projected undiscounted cash flows based upon the estimated holding period for each asset exceeded its respective carrying value by a weighted average of 19%. | ||||||||||||
The investment property impairment charge recorded by the Company during the three months ended March 31, 2014 is summarized below: | ||||||||||||
Property Name | Property Type | Impairment Date | Approximate | Provision for | ||||||||
Square | Impairment of | |||||||||||
Footage | Investment | |||||||||||
Properties | ||||||||||||
Midtown Center | Multi-tenant retail | 31-Mar-14 | 408,500 | $ | 394 | |||||||
Estimated fair value of impaired property as of impairment date | $ | 47,150 | ||||||||||
As part of its analyses performed during the three months ended March 31, 2013, the Company identified certain indicators of impairment at 10 of its properties (three of which were subsequently sold). The Company performed cash flow analyses during the three months ended March 31, 2013 and determined that the projected undiscounted cash flows based upon the estimated holding period for each asset with identified impairment indicators exceeded its respective carrying value by a weighted average of 49%. Therefore, no investment property impairment charges were recorded during the three months ended March 31, 2013. | ||||||||||||
The Company can provide no assurance that material impairment charges with respect to the Company’s investment properties will not occur in future periods. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
The following table presents the carrying value and estimated fair value of the Company’s financial instruments. | ||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Mortgages payable, net | $ | 1,612,442 | $ | 1,767,509 | $ | 1,684,633 | $ | 1,827,638 | ||||||||||||
Credit facility | $ | 680,000 | $ | 682,534 | $ | 615,000 | $ | 617,478 | ||||||||||||
Derivative liability | $ | 756 | $ | 756 | $ | 751 | $ | 751 | ||||||||||||
The carrying values of mortgages payable, net shown in the table are included in the condensed consolidated balance sheets under the indicated caption. Credit facility is comprised of the “Unsecured term loan” and the “Unsecured revolving line of credit” and derivative liability is included in “Other liabilities” in the condensed consolidated balance sheets. | ||||||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||||||
The following table presents the Company’s financial instruments, which are measured at fair value on a recurring basis, by the level in the fair value hierarchy within which those measurements fall. Methods and assumptions used to estimate the fair value of these instruments are described after the table. | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Derivative liability | $ | — | $ | 756 | $ | — | $ | 756 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Derivative liability | $ | — | $ | 751 | $ | — | $ | 751 | ||||||||||||
Derivative liability: The fair value of the derivative liability is determined using a discounted cash flow analysis on the expected future cash flows of each derivative. This analysis utilizes observable market data including forward yield curves and implied volatilities to determine the market’s expectation of the future cash flows of the variable component. The fixed and variable components of the derivative are then discounted using calculated discount factors developed based on the LIBOR swap rate and are aggregated to arrive at a single valuation for the period. The Company also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2014 and December 31, 2013, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation. As a result, the Company has determined that its derivative valuations in their entirety are classified within Level 2 of the fair value hierarchy. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered any applicable credit enhancements. The Company’s derivative instruments are further described in Note 8. | ||||||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||||||
The following table presents the Company’s assets measured on a nonrecurring basis at March 31, 2014 and December 31, 2013, aggregated by the level within the fair value hierarchy in which those measurements fall. Methods and assumptions used to estimate the fair value of these assets are described after the table. | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Provision for | ||||||||||||||||
Impairment (a) | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Investment properties (b) | $ | — | $ | 47,150 | $ | — | $ | 47,150 | $ | 394 | ||||||||||
December 31, 2013 | ||||||||||||||||||||
Investment properties (c) | $ | — | $ | — | $ | 75,000 | $ | 75,000 | $ | 59,486 | ||||||||||
(a) | Excludes impairment charges recorded on investment properties sold prior to March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
(b) | Represents an impairment charge recorded during the three months ended March 31, 2014 for Midtown Center, the property that was classified as held for sale as of March 31, 2014. Such charge, calculated as the expected sales price from the executed purchase documents less estimated transaction costs as compared to the Company’s carrying value of its investment, was determined to be a Level 2 input. The estimated transaction costs totaling $602 are not reflected as a reduction to the fair value disclosed in the table above. | |||||||||||||||||||
(c) | Includes impairment charges to write down the carrying value of the Company’s Aon Hewitt East Campus, Four Peaks Plaza and Lake Mead Crossing investment properties to estimated fair value. The estimated fair value of Aon Hewitt East Campus of $18,000 was based upon a bona fide purchase offer received by the Company from an unaffiliated third party (a Level 3 input). A change in the Company’s estimated holding period was the primary driver of the impairment charges recorded to the Company’s investments in Four Peaks Plaza and Lake Mead Crossing. The estimated fair value of Four Peaks Plaza of $14,000 and Lake Mead Crossing of $43,000 was determined using the income approach. The income approach involves an estimate of the income stream for a property over a designated holding period; such income stream plus a reversion (presumed sale) value is discounted to a present value at a risk-adjusted rate. Discount rates and growth assumptions utilized in this approach are derived from property-specific information, market transactions and other financial and industry data. The terminal capitalization rate and discount rate are significant inputs to this valuation. The following are the key Level 3 inputs used in estimating the fair value of Four Peaks Plaza and Lake Mead Crossing as of December 31, 2013. | |||||||||||||||||||
2013 | ||||||||||||||||||||
Low | High | |||||||||||||||||||
Rental growth rates | Varies (i) | Varies (i) | ||||||||||||||||||
Operating expense growth rates | 3.27% | 3.56% | ||||||||||||||||||
Discount rates | 7.29% | 8.45% | ||||||||||||||||||
Terminal capitalization rates | 6.79% | 8.49% | ||||||||||||||||||
(i) | Since cash flow models are established at the tenant level, projected rental revenue growth rates fluctuate over the course of the estimated holding period based upon the timing of lease rollover, amount of available space and other property and space-specific factors. | |||||||||||||||||||
Fair Value Disclosures | ||||||||||||||||||||
The following table presents the Company’s financial liabilities, which are measured at fair value for disclosure purposes, by the level in the fair value hierarchy within which they fall. Methods and assumptions used to estimate the fair value of these instruments are described after the table. | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Mortgages payable, net | $ | — | $ | — | $ | 1,767,509 | $ | 1,767,509 | ||||||||||||
Credit facility | $ | — | $ | — | $ | 682,534 | $ | 682,534 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Mortgages payable, net | $ | — | $ | — | $ | 1,827,638 | $ | 1,827,638 | ||||||||||||
Credit facility | $ | — | $ | — | $ | 617,478 | $ | 617,478 | ||||||||||||
Mortgages payable, net: The Company estimates the fair value of its mortgages payable by discounting the future cash flows of each instrument at rates currently offered to the Company for similar debt instruments of comparable maturities by the Company’s lenders. The rates used are not directly observable in the marketplace and judgment is used in determining the appropriate rate for each of the Company’s individual mortgages payable based upon the specific terms of the agreement, including the term to maturity, the quality and nature of the underlying property and its leverage ratio. The rates used range from 2.4% to 5.1% and 2.4% to 5.6% at March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
Credit facility: The Company estimates the fair value of its credit facility by discounting the future cash flows related to the credit spreads at rates currently offered to the Company for comparable facilities by the Company’s lenders. The rates used are not directly observable in the marketplace and judgment is used in determining the appropriate rate. The Company used discount rates of 1.35% and 1.40% for the unsecured term loan and unsecured revolving line of credit, respectively, as of both March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
There were no transfers of liabilities between the levels of the fair value hierarchy during the three months ended March 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Although the mortgage loans obtained by the Company are generally non-recourse, occasionally the Company may guarantee all or a portion of the debt on a full-recourse basis. As of March 31, 2014, the Company has guaranteed $7,264 of its outstanding mortgage and construction loans, with maturity dates ranging from November 2, 2014 through September 30, 2016. |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2014 | |
Litigation Disclosure [Abstract] | ' |
Legal Matters and Contingencies | ' |
Litigation | |
As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, in 2012, certain shareholders of the Company filed putative class action lawsuits against the Company and certain of its officers and directors, which are currently pending in the U.S. District Court in the Northern District of Illinois. The lawsuits allege, among other things, that the Company’s directors and officers breached their fiduciary duties to the shareholders and, as a result, unjustly enriched the Company and the individual defendants. The lawsuits further allege that the breaches of fiduciary duty led certain shareholders to acquire additional stock and caused the shareholders to suffer a loss in share value, all measured in some manner by reference to the Company’s 2012 offering price when it listed its shares on the New York Stock Exchange. The lawsuits seek unspecified damages and other relief. Based on its review of the complaints, the Company believes the lawsuits to be without merit and intends to defend the actions vigorously. While the resolution of these matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcomes of these matters will not have a material effect on the financial statements of the Company. On April 19, 2013, the defendants filed motions to dismiss the shareholder complaints, which remain pending before the court. | |
The Company is subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of such matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material effect on the financial statements of the Company. |
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Mar. 31, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
Subsequent Events | ||
Subsequent to March 31, 2014, the Company: | ||
• | drew $5,000, net of repayments, on its unsecured revolving line of credit; | |
• | repaid mortgages payable with an aggregate principal balance of $34,928 and a weighted average interest rate of 6.54%, which includes the mortgage payable that encumbered Midtown Center, the investment property that was classified as held for sale as of March 31, 2014. The Company incurred a prepayment fee of $1,897 related to the payoff of the mortgage on Midtown Center; and | |
• | closed on the sale of Midtown Center, a 408,500 square foot multi-tenant retail property located in Milwaukee, Wisconsin, which was classified as held for sale as of March 31, 2014, for a sales price of $47,150 and no significant gain or loss on sale due to previously recognized impairment charges. | |
On April 22, 2014, the Company’s board of directors declared the cash dividend for the second quarter of 2014 for the Company’s 7.00% Series A cumulative redeemable preferred stock. The dividend of $0.4375 per preferred share will be paid on June 30, 2014 to preferred shareholders of record at the close of business on June 19, 2014. | ||
On April 22, 2014, the Company’s board of directors declared the distribution for the second quarter of 2014 of $0.165625 per share on the Company’s outstanding Class A common stock, which will be paid on July 10, 2014 to Class A common shareholders of record at the close of business on June 27, 2014. | ||
The Company entered into an agreement with its partner in the MS Inland joint venture to dissolve the joint venture arrangement. The Company will acquire its partner’s 80% ownership interest in the six investment properties owned by the joint venture. The properties have an agreed upon value of $292,500, with the Company’s partner’s 80% interest valued at $234,000. The Company will also assume the joint venture’s approximately $142,200 of in-place mortgage financing, as of March 31, 2014, at a weighted average interest rate of 4.79%. The transaction is expected to close in June 2014, subject to customary closing conditions. | ||
The Company agreed in principle to the pricing of a $250,000 private placement of senior unsecured notes (the Notes) to be issued to institutional investors, consisting of $150,000 of notes with a ten-year term, priced at a fixed interest rate of 4.58%, and $100,000 of notes with a seven-year term, priced at a fixed interest rate of 4.12%, resulting in a weighted average fixed interest rate of 4.40%. Borrowings are expected to be drawn on June 30, 2014. The issuance of the Notes is subject to conditions, including, among others, the negotiation and execution of definitive documentation. There can be no assurance that these conditions will be satisfied or that the issuance of the Notes will occur on the terms described herein, or at all. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Effective January 1, 2014, companies are required to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. To the extent none of these are available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of this pronouncement did not have any effect on the Company’s condensed consolidated financial statements. | |
Effective January 1, 2015, with early adoption permitted effective January 1, 2014, the definition of discontinued operations has been revised to limit what qualifies for this classification and presentation to disposals of components of a company that represent strategic shifts that have (or will have) a major effect on a company’s operations and financial results. Required expanded disclosures for disposals or disposal groups that qualify for discontinued operations are intended to provide users of financial statements with enhanced information about the assets, liabilities, revenues and expenses of such discontinued operations. In addition, in accordance with this pronouncement, companies are required to disclose the pretax profit or loss of an individually significant component that does not qualify for discontinued operations treatment. While the threshold for a disposal or disposal group to qualify for discontinued operations treatment has been revised, this pronouncement retains the held for sale classification and presentation concepts of previous authoritative literature. Accordingly, under this pronouncement, a disposal or disposal group may qualify for held for sale classification but not meet the threshold for discontinued operations treatment. The Company has elected to early adopt this pronouncement effective January 1, 2014. The adoption, which is applied prospectively, is anticipated to substantially reduce the number of the Company’s transactions, going forward, that qualify for discontinued operations as compared to historical results. Upon adoption of this pronouncement effective January 1, 2014, the investment property that was classified as held for sale as of March 31, 2014, which would have qualified for discontinued operations treatment under the previous standard, did not qualify for discontinued operations and, as such, is reflected in continuing operations on the condensed consolidated statements of operations and other comprehensive income (loss). |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Summary of property ownership | ' | ||||||||
The Company’s property ownership as of March 31, 2014 is summarized below: | |||||||||
Wholly-owned | Consolidated | Unconsolidated | |||||||
Joint Ventures (a) | Joint Ventures (b) | ||||||||
Operating properties (c) | 230 | — | 6 | ||||||
Development properties | 2 | 1 | — | ||||||
(a) | The Company has a 50% ownership interest in one LLC. | ||||||||
(b) | The Company has a 20% ownership interest in one LLC. | ||||||||
(c) | Excludes one wholly-owned property classified as held for sale as of March 31, 2014. |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule of acquisition date fair values | ' | ||||
The following table summarizes the acquisition date fair values, before prorations, the Company recorded in conjunction with the acquisitions discussed above: | |||||
Land | $ | 16,727 | |||
Building and other improvements | 11,385 | ||||
Acquired lease intangible assets | 1,492 | ||||
Acquired lease intangible liabilities | (1,232 | ) | |||
Net assets acquired | $ | 28,372 | |||
Dispositions_Tables
Dispositions (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||||||||||
Schedule of real estate properties sold | ' | |||||||||||||||||||||||
The Company sold one property during the three months ended March 31, 2014, as summarized below: | ||||||||||||||||||||||||
Date | Property Name | Property Type | Square | Consideration | Aggregate | Mortgage | Gain | |||||||||||||||||
Footage | Proceeds, Net | Debt | ||||||||||||||||||||||
Extinguished | ||||||||||||||||||||||||
March 11, 2014 | Riverpark Phase IIA | Single-user retail | 64,300 | $ | 9,269 | $ | 9,204 | $ | — | (a) | $ | 655 | ||||||||||||
(a) | The Company repaid the $6,435 mortgage payable prior to the disposition of the property. | |||||||||||||||||||||||
Schedule of assets and liabilities associated with investment properties held for sale | ' | |||||||||||||||||||||||
The following table presents the assets and liabilities associated with the held for sale properties: | ||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Land, building and other improvements | $ | 45,182 | $ | 10,285 | ||||||||||||||||||||
Accumulated depreciation | — | (2,206 | ) | |||||||||||||||||||||
Net investment properties | 45,182 | 8,079 | ||||||||||||||||||||||
Other assets | 3,560 | 537 | ||||||||||||||||||||||
Assets associated with investment properties held for sale | $ | 48,742 | $ | 8,616 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Mortgages payable | $ | 30,124 | $ | 6,435 | ||||||||||||||||||||
Other liabilities | 1,134 | 168 | ||||||||||||||||||||||
Liabilities associated with investment properties held for sale | $ | 31,258 | $ | 6,603 | ||||||||||||||||||||
Schedule of results of operations for investment properties that are accounted for as discontinued operations | ' | |||||||||||||||||||||||
The results of operations for the investment properties that are accounted for as discontinued operations, which population consists of investment properties sold and classified as held for sale on or prior to December 31, 2013, including Riverpark Phase IIA, are presented in the table below: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Rental income | $ | (123 | ) | $ | 6,913 | |||||||||||||||||||
Tenant recovery income | 144 | 1,612 | ||||||||||||||||||||||
Other property income | 23 | 108 | ||||||||||||||||||||||
Total revenues | 44 | 8,633 | ||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Property operating expenses | 121 | 1,649 | ||||||||||||||||||||||
Real estate taxes | 3 | 1,572 | ||||||||||||||||||||||
Depreciation and amortization | — | 3,456 | ||||||||||||||||||||||
Interest expense | 68 | 1,430 | ||||||||||||||||||||||
Other income, net | — | (50 | ) | |||||||||||||||||||||
Total expenses | 192 | 8,057 | ||||||||||||||||||||||
(Loss) income from discontinued operations, net | $ | (148 | ) | $ | 576 | |||||||||||||||||||
Compensation_Plans_Tables
Compensation Plans (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Summary of unvested restricted shares | ' | ||||||
The following table represents a summary of the Company’s unvested restricted shares, which were granted to either the Company’s employees pursuant to the Equity Plan or to non-employee directors pursuant to the Director Plan, as of and for the three months ended March 31, 2014: | |||||||
Unvested | Weighted Average | ||||||
Restricted | Grant Date Fair | ||||||
Shares | Value per | ||||||
Restricted Share | |||||||
Balance at January 1, 2014 | 152 | $ | 15.11 | ||||
Shares granted (a) | 262 | $ | 13.71 | ||||
Shares vested | — | $ | — | ||||
Shares forfeited | — | $ | — | ||||
Balance at March 31, 2014 | 414 | $ | 14.22 | ||||
(a) | Shares granted will vest ratably over periods ranging from one to three years in accordance with the terms of applicable award documents. |
Mortgages_Payable_Tables
Mortgages Payable (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Summary of mortgages payable | ' | |||||||||||||||||||||||||||
The following table summarizes the Company’s mortgages payable: | ||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Aggregate Principal Balance | Weighted Average Interest Rate | Weighted Average Years to Maturity | Aggregate Principal Balance | Weighted Average Interest Rate | Weighted Average Years to Maturity | |||||||||||||||||||||||
Fixed rate mortgages payable (a) | $ | 1,599,277 | 6.15 | % | 4.8 | $ | 1,673,080 | 6.15 | % | 4.9 | ||||||||||||||||||
Variable rate construction loan (b) | 12,981 | 2.44 | % | 0.6 | 11,359 | 2.44 | % | 0.8 | ||||||||||||||||||||
Mortgages payable | 1,612,258 | 6.12 | % | 4.8 | 1,684,439 | 6.13 | % | 4.9 | ||||||||||||||||||||
Premium, net of accumulated amortization | 1,037 | 1,175 | ||||||||||||||||||||||||||
Discount, net of accumulated amortization | (853 | ) | (981 | ) | ||||||||||||||||||||||||
Mortgages payable, net | $ | 1,612,442 | 6.12 | % | 4.8 | $ | 1,684,633 | 6.13 | % | 4.9 | ||||||||||||||||||
(a) | Includes $8,284 and $8,337 of variable rate mortgage debt that was swapped to a fixed rate as of March 31, 2014 and December 31, 2013, respectively, and excludes mortgages payable of $30,124 and $6,435 associated with properties classified as held for sale as of March 31, 2014 and December 31, 2013, respectively. The fixed rate mortgages had interest rates ranging from 3.50% to 8.00% as of March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
(b) | The variable rate construction loan bears interest at a floating rate of London Interbank Offered Rate (LIBOR) plus 2.25%. | |||||||||||||||||||||||||||
Scheduled maturities of mortgages payable and credit facility | ' | |||||||||||||||||||||||||||
The following table shows the scheduled maturities and required principal payments of the Company’s mortgages payable and credit facility (as described in Note 7) as of March 31, 2014 for the remainder of 2014, each of the next four years and thereafter and does not reflect the impact of any debt activity that occurred after March 31, 2014: | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||
Fixed rate debt: | ||||||||||||||||||||||||||||
Mortgages payable (a) | $ | 17,509 | $ | 384,557 | $ | 46,172 | $ | 296,019 | $ | 12,369 | $ | 842,651 | $ | 1,599,277 | ||||||||||||||
Unsecured credit facility - fixed rate portion of term loan (b) | — | — | — | — | 300,000 | — | 300,000 | |||||||||||||||||||||
Total fixed rate debt | 17,509 | 384,557 | 46,172 | 296,019 | 312,369 | 842,651 | 1,899,277 | |||||||||||||||||||||
Variable rate debt: | ||||||||||||||||||||||||||||
Construction loan | 12,981 | — | — | — | — | — | 12,981 | |||||||||||||||||||||
Unsecured credit facility | — | — | — | 230,000 | 150,000 | — | 380,000 | |||||||||||||||||||||
Total variable rate debt | 12,981 | — | — | 230,000 | 150,000 | — | 392,981 | |||||||||||||||||||||
Total debt (c) | $ | 30,490 | $ | 384,557 | $ | 46,172 | $ | 526,019 | $ | 462,369 | $ | 842,651 | $ | 2,292,258 | ||||||||||||||
Weighted average interest rate on debt: | ||||||||||||||||||||||||||||
Fixed rate debt | 6.68 | % | 5.7 | % | 5.86 | % | 5.66 | % | 2.19 | % | 6.52 | % | 5.49 | % | ||||||||||||||
Variable rate debt | 2.44 | % | — | — | 1.66 | % | 1.61 | % | — | 1.67 | % | |||||||||||||||||
Total | 4.87 | % | 5.7 | % | 5.86 | % | 3.91 | % | 2 | % | 6.52 | % | 4.84 | % | ||||||||||||||
(a) | Excludes mortgage premium of $1,037 and discount of $(853), net of accumulated amortization, which was outstanding as of March 31, 2014 and mortgages payable of $30,124 associated with one investment property classified as held for sale as of March 31, 2014. Includes $8,284 of variable rate mortgage debt that was swapped to a fixed rate as of March 31, 2014. | |||||||||||||||||||||||||||
(b) | In July 2012, the Company entered into an interest rate swap transaction to convert the variable rate portion of $300,000 of LIBOR-based debt to a fixed rate through February 24, 2016. The swap effectively converts one-month floating rate LIBOR to a fixed rate of 0.53875% over the term of the swap. | |||||||||||||||||||||||||||
(c) | As of March 31, 2014, the weighted average years to maturity of consolidated indebtedness was 4.5 years. |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of outstanding interest rate swaps designated as cash flow hedges | ' | ||||||||||||||||||||||||||||
The Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk: | |||||||||||||||||||||||||||||
Number of Instruments | Notional | ||||||||||||||||||||||||||||
Interest Rate Derivatives | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Interest rate swap | 2 | 2 | $ | 308,284 | $ | 308,337 | |||||||||||||||||||||||
Schedule of estimated fair value of derivative instruments | ' | ||||||||||||||||||||||||||||
The table below presents the estimated fair value of the Company’s derivative financial instruments, which are presented within “Other liabilities” in the condensed consolidated balance sheets. The valuation techniques utilized are described in Note 13 to the condensed consolidated financial statements. | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 756 | $ | 751 | |||||||||||||||||||||||||
Schedule of effect of derivative instruments on the statements of operations | ' | ||||||||||||||||||||||||||||
The table below presents the effect of the Company’s derivative financial instruments on the condensed consolidated statements of operations and other comprehensive income (loss) for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Derivatives in | Amount of Loss | Location of Loss | Amount of Loss | Location of | Amount of (Gain) Loss | ||||||||||||||||||||||||
Cash Flow | Recognized in Other Comprehensive Income | Reclassified from | Reclassified from | (Gain) Loss | Recognized in Income | ||||||||||||||||||||||||
Hedging | on Derivative | Accumulated Other | AOCI into Income | Recognized In | on Derivative | ||||||||||||||||||||||||
Relationships | (Effective Portion) | Comprehensive Income (AOCI) into Income | (Effective Portion) | Income on Derivative | (Ineffective Portion and | ||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion and Amount | Amount Excluded from | |||||||||||||||||||||||||||
Excluded from | Effectiveness Testing) | ||||||||||||||||||||||||||||
Effectiveness Testing) | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Interest rate swaps | $ | 309 | $ | 51 | Interest expense | $ | 291 | $ | 517 | Other income, net | $ | (13 | ) | $ | 153 | ||||||||||||||
Investment_in_Unconsolidated_J1
Investment in Unconsolidated Joint Ventures (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of investments in unconsolidated joint ventures | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the Company’s investments in unconsolidated joint ventures: | |||||||||||||||||||||||||||||||||
Ownership Interest | Investment at | ||||||||||||||||||||||||||||||||
Joint Venture | Date of | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||||||||||
Investment | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
MS Inland Fund, LLC (a) | 4/27/07 | 20 | % | 20 | % | $ | 6,403 | $ | 6,915 | ||||||||||||||||||||||||
Oak Property and Casualty LLC (b) | 10/1/06 | 20 | % | 20 | % | 7,865 | 8,861 | ||||||||||||||||||||||||||
$ | 14,268 | $ | 15,776 | ||||||||||||||||||||||||||||||
(a) | The MS Inland Fund, LLC (MS Inland) joint venture was formed with a large state pension fund; the Company is the managing member of the venture and earns fees for providing property management and leasing services. The Company has the ability to exercise significant influence, but does not have financial or operating control over this joint venture, and as a result the Company accounts for its investment pursuant to the equity method of accounting. Subsequent to March 31, 2014, the Company entered into an agreement to dissolve its joint venture arrangement with its partner in MS Inland through the acquisition of its partner’s 80% interest in the six multi-tenant retail properties owned by the joint venture. The transaction is expected to close in June 2014, subject to customary closing conditions. | ||||||||||||||||||||||||||||||||
(b) | Oak Property & Casualty LLC (the Captive) is an insurance association owned by the Company and four other unaffiliated parties. The Captive was formed to insure/reimburse the members’ deductible obligations for property and general liability insurance claims subject to certain limitations. The Company entered into the Captive to stabilize insurance costs, manage exposures and recoup expenses through the function of the Captive. It has been determined that the Captive is a VIE, but because the Company does not hold the power to most significantly impact the Captive’s performance, the Company is not considered the primary beneficiary. Accordingly, the Company’s investment in the Captive is accounted for pursuant to the equity method of accounting. The Company’s risk of loss is limited to its investment and the Company is not required to fund additional capital to the Captive. | ||||||||||||||||||||||||||||||||
Schedule of condensed balance sheets of unconsolidated joint ventures | ' | ||||||||||||||||||||||||||||||||
Combined condensed financial information of the Company’s joint ventures (at 100%) for the periods attributable to the Company’s ownership is summarized as follows: | |||||||||||||||||||||||||||||||||
Combined | |||||||||||||||||||||||||||||||||
Condensed Total | |||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Real estate assets | $ | 270,930 | $ | 270,916 | |||||||||||||||||||||||||||||
Less accumulated depreciation | (54,647 | ) | (52,624 | ) | |||||||||||||||||||||||||||||
Real estate, net | 216,283 | 218,292 | |||||||||||||||||||||||||||||||
Other assets, net | 44,239 | 49,227 | |||||||||||||||||||||||||||||||
Total assets | $ | 260,522 | $ | 267,519 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Mortgage debt | $ | 142,183 | $ | 142,537 | |||||||||||||||||||||||||||||
Other liabilities, net | 19,992 | 22,725 | |||||||||||||||||||||||||||||||
Total liabilities | 162,175 | 165,262 | |||||||||||||||||||||||||||||||
Total equity | 98,347 | 102,257 | |||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 260,522 | $ | 267,519 | |||||||||||||||||||||||||||||
Schedule of condensed statements of operations of unconsolidated joint ventures | ' | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
RioCan (a) | Hampton (b) | Other Joint Ventures | Combined | ||||||||||||||||||||||||||||||
Condensed Total | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||
Property related income | $ | — | $ | 12,350 | $ | — | $ | — | $ | 6,886 | $ | 6,760 | $ | 6,886 | $ | 19,110 | |||||||||||||||||
Other income | — | — | — | — | 2,118 | 2,022 | 2,118 | 2,022 | |||||||||||||||||||||||||
Total revenues | — | 12,350 | — | — | 9,004 | 8,782 | 9,004 | 21,132 | |||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||
Property operating expenses | — | 1,682 | — | — | 929 | 863 | 929 | 2,545 | |||||||||||||||||||||||||
Real estate taxes | — | 2,043 | — | — | 1,312 | 1,307 | 1,312 | 3,350 | |||||||||||||||||||||||||
Depreciation and amortization | — | 7,355 | — | — | 2,418 | 2,475 | 2,418 | 9,830 | |||||||||||||||||||||||||
Loss (gain) on lease terminations | — | 539 | — | — | (179 | ) | 6 | (179 | ) | 545 | |||||||||||||||||||||||
General and administrative expenses | — | 144 | — | 2 | 78 | 98 | 78 | 244 | |||||||||||||||||||||||||
Interest expense, net | — | 2,474 | — | (1,526 | ) | 1,770 | 1,783 | 1,770 | 2,731 | ||||||||||||||||||||||||
Other expense, net | — | — | — | — | 3,078 | 1,956 | 3,078 | 1,956 | |||||||||||||||||||||||||
Total expenses | — | 14,237 | — | (1,524 | ) | 9,406 | 8,488 | 9,406 | 21,201 | ||||||||||||||||||||||||
(Loss) income from continuing operations | — | (1,887 | ) | — | 1,524 | (402 | ) | 294 | (402 | ) | (69 | ) | |||||||||||||||||||||
(Loss) income from discontinued operations (c) | — | (452 | ) | — | (48 | ) | 3 | 47 | 3 | (453 | ) | ||||||||||||||||||||||
Gain on sales of investment properties - discontinued operations | — | — | — | 1,019 | — | — | — | 1,019 | |||||||||||||||||||||||||
Net (loss) income | $ | — | $ | (2,339 | ) | $ | — | $ | 2,495 | $ | (399 | ) | $ | 341 | $ | (399 | ) | $ | 497 | ||||||||||||||
(a) | On October 1, 2013, the Company dissolved its joint venture arrangement with its partner in RC Inland L.P. (RioCan). | ||||||||||||||||||||||||||||||||
(b) | During 2013, the Company dissolved its joint venture arrangement with its partner in Hampton Retail Colorado, L.L.C. (Hampton). | ||||||||||||||||||||||||||||||||
(c) | Included within “(Loss) income from discontinued operations” are the following: property-level operating results attributable to the five properties the Company acquired from its RioCan unconsolidated joint venture on October 1, 2013; all property-level operating results attributable to the Hampton unconsolidated joint venture; and, the property-level operating results recognized by the Company’s MS Inland unconsolidated joint venture related to a property sold to the Company’s RioCan unconsolidated joint venture. The property-level operating results of the eight RioCan properties in which the Company’s partner acquired the Company’s 20% interest are presented within “(Loss) income from continuing operations” above given the continuity of the controlling financial interest before and after the dissolution transaction. | ||||||||||||||||||||||||||||||||
Summary of profits, losses and capital activity related to unconsolidated joint ventures | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the Company’s share of net income (loss) as well as net cash distributions from (contributions to) each unconsolidated joint venture: | |||||||||||||||||||||||||||||||||
The Company’s Share | Net Cash Distributions from/ | Fees Earned by the | |||||||||||||||||||||||||||||||
of Net Income (Loss) | (Contributions to) Joint | Company for the Three | |||||||||||||||||||||||||||||||
for the Three Months | Ventures for the Three | Months Ended March 31, | |||||||||||||||||||||||||||||||
Ended March 31, | Months Ended March 31, | ||||||||||||||||||||||||||||||||
Joint Venture | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
MS Inland | $ | 173 | $ | 124 | $ | 755 | $ | 952 | $ | 211 | $ | 228 | |||||||||||||||||||||
Captive | (1,021 | ) | (921 | ) | (25 | ) | — | — | — | ||||||||||||||||||||||||
Hampton (a) | — | 2,409 | — | 16 | — | 1 | |||||||||||||||||||||||||||
RioCan (b) | — | (322 | ) | — | 556 | — | 583 | ||||||||||||||||||||||||||
$ | (848 | ) | $ | 1,290 | $ | 730 | $ | 1,524 | $ | 211 | $ | 812 | |||||||||||||||||||||
(a) | During the three months ended March 31, 2013, Hampton determined that the carrying value of certain of its assets was not recoverable and, accordingly, recorded property level impairment charges in the amount of $234, of which the Company’s share was $224. The joint venture’s estimate of fair value relating to this impairment assessment was based upon a bona fide purchase offer. During 2013, the Company dissolved its joint venture arrangement with its partner in Hampton. | ||||||||||||||||||||||||||||||||
(b) | On October 1, 2013, the Company dissolved its joint venture arrangement with its partner in RioCan. |
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Summary of activity under ATM equity program | ' | |||||||||||
The following table presents activity under the Company’s ATM equity program: | ||||||||||||
Number of common shares sold | Total net consideration | Average price per share | ||||||||||
Three months ended March 31, 2013 | 56 | $ | 688 | $ | 14.94 | |||||||
Three months ended March 31, 2014 | — | $ | — | $ | — | |||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Schedule of reconciliation between weighted average shares used in the basic and diluted EPS calculations | ' | |||||||||
The following is a reconciliation between weighted average shares used in the basic and diluted earnings per share (EPS) calculations, excluding amounts attributable to noncontrolling interests: | ||||||||||
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Numerator: | ||||||||||
Income (loss) from continuing operations | $ | 13,621 | $ | (11,629 | ) | |||||
Gain on sales of investment properties | — | 4,264 | ||||||||
Preferred stock dividends | (2,362 | ) | (2,362 | ) | ||||||
Income (loss) from continuing operations attributable to common shareholders | 11,259 | (9,727 | ) | |||||||
Income from discontinued operations | 507 | 5,485 | ||||||||
Net income (loss) attributable to common shareholders | 11,766 | (4,242 | ) | |||||||
Distributions paid on unvested restricted shares | (25 | ) | (8 | ) | ||||||
Net income (loss) attributable to common shareholders excluding amounts | $ | 11,741 | $ | (4,250 | ) | |||||
attributable to unvested restricted shares | ||||||||||
Denominator: | ||||||||||
Denominator for earnings (loss) per common share — basic: | ||||||||||
Weighted average number of common shares outstanding | 236,151 | (a) | 230,611 | (b) | ||||||
Effect of dilutive securities — stock options | 2 | (c) | — | (c) | ||||||
Denominator for earnings (loss) per common share — diluted: | ||||||||||
Weighted average number of common and common equivalent shares outstanding | 236,153 | 230,611 | ||||||||
(a) | Excluded from this weighted average amount are 414 shares of restricted common stock, which equate to 264 shares on a weighted average basis for the three months ended March 31, 2014. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. | |||||||||
(b) | Excluded from this weighted average amount are 95 shares of restricted common stock, which equate to 67 shares on a weighted average basis for the three months ended March 31, 2013. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. | |||||||||
(c) | There were outstanding options to purchase 78 and 80 shares of common stock as of March 31, 2014 and 2013, respectively, at a weighted average exercise price of $19.10 and $19.17, respectively. Of these outstanding options, 64 and 80 shares of common stock as of March 31, 2014 and 2013, respectively, at a weighted average exercise price of $20.71 and $19.17, respectively, have been excluded from the common shares used in calculating diluted earnings per share as including them would be anti-dilutive. |
Provision_for_Impairment_of_In1
Provision for Impairment of Investment Properties (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of investment property impairment charges | ' | |||||||||||
The investment property impairment charge recorded by the Company during the three months ended March 31, 2014 is summarized below: | ||||||||||||
Property Name | Property Type | Impairment Date | Approximate | Provision for | ||||||||
Square | Impairment of | |||||||||||
Footage | Investment | |||||||||||
Properties | ||||||||||||
Midtown Center | Multi-tenant retail | 31-Mar-14 | 408,500 | $ | 394 | |||||||
Estimated fair value of impaired property as of impairment date | $ | 47,150 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Schedule of carrying value and estimated fair value of financial instruments | ' | |||||||||||||||||||
The following table presents the carrying value and estimated fair value of the Company’s financial instruments. | ||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Mortgages payable, net | $ | 1,612,442 | $ | 1,767,509 | $ | 1,684,633 | $ | 1,827,638 | ||||||||||||
Credit facility | $ | 680,000 | $ | 682,534 | $ | 615,000 | $ | 617,478 | ||||||||||||
Derivative liability | $ | 756 | $ | 756 | $ | 751 | $ | 751 | ||||||||||||
Schedule of financial instruments measured at fair value on a recurring basis | ' | |||||||||||||||||||
The following table presents the Company’s financial instruments, which are measured at fair value on a recurring basis, by the level in the fair value hierarchy within which those measurements fall. Methods and assumptions used to estimate the fair value of these instruments are described after the table. | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Derivative liability | $ | — | $ | 756 | $ | — | $ | 756 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Derivative liability | $ | — | $ | 751 | $ | — | $ | 751 | ||||||||||||
Schedule of assets measured at fair value on a nonrecurring basis | ' | |||||||||||||||||||
The following table presents the Company’s assets measured on a nonrecurring basis at March 31, 2014 and December 31, 2013, aggregated by the level within the fair value hierarchy in which those measurements fall. Methods and assumptions used to estimate the fair value of these assets are described after the table. | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Provision for | ||||||||||||||||
Impairment (a) | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Investment properties (b) | $ | — | $ | 47,150 | $ | — | $ | 47,150 | $ | 394 | ||||||||||
December 31, 2013 | ||||||||||||||||||||
Investment properties (c) | $ | — | $ | — | $ | 75,000 | $ | 75,000 | $ | 59,486 | ||||||||||
(a) | Excludes impairment charges recorded on investment properties sold prior to March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
(b) | Represents an impairment charge recorded during the three months ended March 31, 2014 for Midtown Center, the property that was classified as held for sale as of March 31, 2014. Such charge, calculated as the expected sales price from the executed purchase documents less estimated transaction costs as compared to the Company’s carrying value of its investment, was determined to be a Level 2 input. The estimated transaction costs totaling $602 are not reflected as a reduction to the fair value disclosed in the table above. | |||||||||||||||||||
(c) | Includes impairment charges to write down the carrying value of the Company’s Aon Hewitt East Campus, Four Peaks Plaza and Lake Mead Crossing investment properties to estimated fair value. The estimated fair value of Aon Hewitt East Campus of $18,000 was based upon a bona fide purchase offer received by the Company from an unaffiliated third party (a Level 3 input). A change in the Company’s estimated holding period was the primary driver of the impairment charges recorded to the Company’s investments in Four Peaks Plaza and Lake Mead Crossing. The estimated fair value of Four Peaks Plaza of $14,000 and Lake Mead Crossing of $43,000 was determined using the income approach. The income approach involves an estimate of the income stream for a property over a designated holding period; such income stream plus a reversion (presumed sale) value is discounted to a present value at a risk-adjusted rate. Discount rates and growth assumptions utilized in this approach are derived from property-specific information, market transactions and other financial and industry data. The terminal capitalization rate and discount rate are significant inputs to this valuation. The following are the key Level 3 inputs used in estimating the fair value of Four Peaks Plaza and Lake Mead Crossing as of December 31, 2013. | |||||||||||||||||||
2013 | ||||||||||||||||||||
Low | High | |||||||||||||||||||
Rental growth rates | Varies (i) | Varies (i) | ||||||||||||||||||
Operating expense growth rates | 3.27% | 3.56% | ||||||||||||||||||
Discount rates | 7.29% | 8.45% | ||||||||||||||||||
Terminal capitalization rates | 6.79% | 8.49% | ||||||||||||||||||
(i) | Since cash flow models are established at the tenant level, projected rental revenue growth rates fluctuate over the course of the estimated holding period based upon the timing of lease rollover, amount of available space and other property and space-specific factors. | |||||||||||||||||||
Schedule of financial liabilities measured at fair value | ' | |||||||||||||||||||
The following table presents the Company’s financial liabilities, which are measured at fair value for disclosure purposes, by the level in the fair value hierarchy within which they fall. Methods and assumptions used to estimate the fair value of these instruments are described after the table. | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Mortgages payable, net | $ | — | $ | — | $ | 1,767,509 | $ | 1,767,509 | ||||||||||||
Credit facility | $ | — | $ | — | $ | 682,534 | $ | 682,534 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Mortgages payable, net | $ | — | $ | — | $ | 1,827,638 | $ | 1,827,638 | ||||||||||||
Credit facility | $ | — | $ | — | $ | 617,478 | $ | 617,478 | ||||||||||||
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Details) | Mar. 31, 2014 | Dec. 31, 2013 | |
property | |||
Organization and Basis of Presentation | ' | ' | |
Number of wholly-owned subsidiaries jointly elected to be treated as a TRS | 1 | ' | |
Number of wholly-owned properties classified as held for sale | 1 | ' | |
Number of less-than-wholly-owned consolidated entities in which Company has controlling interest | 1 | ' | |
MS Inland Fund, LLC | ' | ' | |
Organization and Basis of Presentation | ' | ' | |
Number of real estate properties owned | 6 | ' | |
Ownership interest of unconsolidated joint ventures (as a percent) | 20.00% | 20.00% | |
Wholly-owned | Operating properties | ' | ' | |
Organization and Basis of Presentation | ' | ' | |
Number of real estate properties owned | 230 | [1] | ' |
Number of wholly-owned properties classified as held for sale | 1 | ' | |
Wholly-owned | Development properties | ' | ' | |
Organization and Basis of Presentation | ' | ' | |
Number of real estate properties owned | 2 | ' | |
Consolidated joint ventures | Operating properties | ' | ' | |
Organization and Basis of Presentation | ' | ' | |
Number of real estate properties owned | ' | ' | |
Consolidated joint ventures | Development properties | ' | ' | |
Organization and Basis of Presentation | ' | ' | |
Number of real estate properties owned | 1 | [2] | ' |
Ownership interest of consolidated joint venture (as a percent) | 50.00% | ' | |
Number of consolidated LLCs in which Company has ownership interest | 1 | ' | |
Unconsolidated joint ventures | Operating properties | ' | ' | |
Organization and Basis of Presentation | ' | ' | |
Number of real estate properties owned | 6 | [3] | ' |
Ownership interest of unconsolidated joint ventures (as a percent) | 20.00% | ' | |
Number of LLCs in which Company has ownership interest | 1 | ' | |
Unconsolidated joint ventures | Development properties | ' | ' | |
Organization and Basis of Presentation | ' | ' | |
Number of real estate properties owned | ' | ' | |
[1] | Excludes one wholly-owned property classified as held for sale as of MarchB 31, 2014. | ||
[2] | The Company has a 50% ownership interest in one LLC. | ||
[3] | The Company has a 20% ownership interest in one LLC. |
Acquisitions_Summary_of_Acquis
Acquisitions - Summary of Acquisitions (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
sqft | |
Heritage Square | ' |
Acquisitions | ' |
Equity interest acquired (as a percent) | 100.00% |
Square footage | 53,100 |
Purchase price | $18,022 |
Bed Bath & Beyond Plaza | ' |
Acquisitions | ' |
Square footage | 97,500 |
Purchase price | 10,350 |
Straight line ground rent liability | 4,258 |
Heritage Square and Bed Bath & Beyond acquisitions | ' |
Acquisition date fair values: | ' |
Land | 16,727 |
Building and other improvements | 11,385 |
Acquired lease intangible assets | 1,492 |
Acquired lease intangible liabilities | -1,232 |
Net assets acquired | $28,372 |
Dispositions_Summary_of_Dispos
Dispositions - Summary of Dispositions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 11, 2014 | |
property | property | property | Riverpark Phase IIA | Riverpark Phase IIA | ||
sqft | ||||||
Dispositions | ' | ' | ' | ' | ' | |
Number of real estate properties sold | 1 | 3 | 20 | ' | ' | |
Square footage | ' | ' | ' | ' | 64,300 | |
Consideration | ' | ' | ' | $9,269 | ' | |
Aggregate proceeds, net | ' | ' | ' | 9,204 | ' | |
Mortgage debt extinguished | ' | ' | ' | 0 | [1] | ' |
Gain | ' | ' | ' | 655 | ' | |
Repayment of mortgages payable | 50,114 | 171,674 | ' | 6,435 | ' | |
Proceeds and gains from disposition of real estate | ' | ' | ' | ' | ' | |
Aggregate net proceeds from property sales and additional transactions | 9,204 | 31,136 | ' | ' | ' | |
Aggregate gains from property sales | $655 | $9,173 | ' | ' | ' | |
[1] | The Company repaid the $6,435 mortgage payable prior to the disposition of the property. |
Dispositions_Assets_and_Liabil
Dispositions - Assets and Liabilities of Properties Held for Sale (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Accumulated depreciation | ($1,360,637) | ($1,330,474) |
Assets associated with investment properties held for sale | 48,742 | 8,616 |
Liabilities | ' | ' |
Liabilities associated with investment properties held for sale | 31,258 | 6,603 |
Investment properties held for sale | ' | ' |
Assets | ' | ' |
Land, building and other improvements | 45,182 | 10,285 |
Accumulated depreciation | 0 | -2,206 |
Net investment properties | 45,182 | 8,079 |
Other assets | 3,560 | 537 |
Assets associated with investment properties held for sale | 48,742 | 8,616 |
Liabilities | ' | ' |
Mortgages payable | 30,124 | 6,435 |
Other liabilities | 1,134 | 168 |
Liabilities associated with investment properties held for sale | $31,258 | $6,603 |
Midtown Center | Investment properties held for sale | ' | ' |
Investment properties held for sale | ' | ' |
Square footage | 408,500 | ' |
Dispositions_Results_of_Operat
Dispositions - Results of Operations of Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Rental income | ($123) | $6,913 |
Tenant recovery income | 144 | 1,612 |
Other property income | 23 | 108 |
Total revenues | 44 | 8,633 |
Expenses: | ' | ' |
Property operating expenses | 121 | 1,649 |
Real estate taxes | 3 | 1,572 |
Depreciation and amortization | 0 | 3,456 |
Interest expense | 68 | 1,430 |
Other income, net | 0 | -50 |
Total expenses | 192 | 8,057 |
(Loss) income from discontinued operations, net | ($148) | $576 |
Compensation_Plans_Unvested_Re
Compensation Plans - Unvested Restricted Shares (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Minimum | ' | ' | |
Compensation Plans | ' | ' | |
Vesting period for shares granted | '1 year | ' | |
Maximum | ' | ' | |
Compensation Plans | ' | ' | |
Vesting period for shares granted | '3 years | ' | |
Restricted shares | ' | ' | |
Compensation Plans | ' | ' | |
Compensation expense | $587 | $63 | |
Unvested Restricted Shares | ' | ' | |
Balance at the beginning of the period (in shares) | 152 | ' | |
Shares granted (in shares) | 262 | [1] | ' |
Shares vested (in shares) | 0 | ' | |
Shares forfeited (in shares) | 0 | ' | |
Balance at the end of the period (in shares) | 414 | ' | |
Weighted Average Grant Date Fair Value per Restricted Share | ' | ' | |
Balance at the beginning of the period (in dollars per share) | $15.11 | ' | |
Shares granted (in dollars per share) | $13.71 | ' | |
Shares vested (in dollars per share) | $0 | ' | |
Shares forfeited (in dollars per share) | $0 | ' | |
Balance at the end of the period (in dollars per share) | $14.22 | ' | |
Unrecognized compensation expense | ' | ' | |
Unrecognized compensation expense | $4,341 | ' | |
Unrecognized compensation expense, period for recognition (in years) | '1 year 6 months | ' | |
[1] | Shares granted will vest ratably over periods ranging from one to three years in accordance with the terms of applicable award documents. |
Compensation_Plans_Stock_Optio
Compensation Plans - Stock Options (Details) (Stock options, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock options | ' | ' |
Director Plan | ' | ' |
Compensation expense | $2 | $7 |
Stock options | ' | ' |
Options granted (in shares) | 84 | ' |
Options exercised (in shares) | 1 | ' |
Options expired (in shares) | 5 | ' |
Mortgages_Payable_Summary_Deta
Mortgages Payable - Summary (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |||||
Weighted average | Fixed rate debt | Variable rate debt | Variable rate debt | Mortgages payable | Mortgages payable | Mortgages payable | Mortgages payable | Mortgages payable | Mortgages payable | Mortgages payable | Mortgages payable | Mortgages payable | Mortgages payable | Construction loan | Construction loan | Secured debt | Secured debt | Mortgages payable, net | Mortgages payable, net | IW JV 2009 LLC | ||||||||
Debt repaid | Fixed rate debt | Fixed rate debt | Fixed rate debt | Fixed rate debt | Fixed rate debt | Fixed rate debt | Fixed rate debt | Fixed rate debt | Variable rate debt | Variable rate debt | property | |||||||||||||||||
Minimum | Minimum | Maximum | Maximum | Weighted average | Weighted average | |||||||||||||||||||||||
Mortgages Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Mortgages payable | $2,292,258 | [1] | ' | ' | $1,899,277 | $392,981 | ' | ' | ' | $1,599,277 | [2],[3] | $1,673,080 | [2] | ' | ' | ' | ' | ' | ' | $12,981 | [4] | $11,359 | [4] | $1,612,258 | $1,684,439 | ' | ' | ' |
Premium, net of accumulated amortization | 1,037 | ' | ' | ' | ' | ' | ' | ' | 1,037 | 1,175 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Discount, net of accumulated amortization | -853 | ' | ' | ' | ' | ' | ' | ' | -853 | -981 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Mortgages payable, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,612,442 | 1,684,633 | ' | |||||
Variable rate debt swapped to fixed rate debt | 300,000 | ' | ' | ' | ' | 300,000 | 8,284 | 8,337 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Mortgages payable associated with investment properties held for sale | ' | ' | ' | ' | ' | ' | ' | ' | 30,124 | 6,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Fixed interest rate (as a percent) | ' | ' | 5.87% | ' | ' | ' | ' | ' | ' | ' | 3.50% | 3.50% | 8.00% | 8.00% | 6.15% | 6.15% | ' | ' | ' | ' | ' | ' | ' | |||||
Variable interest rate spread (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | ' | ' | ' | ' | ' | ' | |||||
Variable interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.44% | 2.44% | ' | ' | ' | ' | ' | |||||
Weighted average interest rate (as a percent) | 4.84% | ' | ' | 5.49% | 1.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.12% | 6.13% | 6.12% | 6.13% | ' | |||||
Weighted average years to maturity | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 10 months | '4 years 11 months | ' | ' | ' | ' | ' | ' | '7 months 10 days | '10 months | '4 years 10 months | '4 years 11 months | '4 years 10 months | '4 years 11 months | ' | |||||
Mortgages payable repayments | 36,000 | 55,000 | ' | ' | ' | ' | 46,178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Scheduled principal payments related to amortizing loans | ' | ' | ' | ' | ' | ' | 3,936 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Amount of mortgage and construction loans guaranteed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,264 | ' | ' | ' | ' | |||||
Cross-collateralized mortgage loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $480,265 | |||||
Number of properties in cross-collateralized mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | |||||
[1] | As of MarchB 31, 2014, the weighted average years to maturity of consolidated indebtedness was 4.5 years. | |||||||||||||||||||||||||||
[2] | Includes $8,284 and $8,337 of variable rate mortgage debt that was swapped to a fixed rate as of MarchB 31, 2014 and DecemberB 31, 2013, respectively, and excludes mortgages payable of $30,124 and $6,435 associated with properties classified as held for sale as of MarchB 31, 2014 and DecemberB 31, 2013, respectively. The fixed rate mortgages had interest rates ranging from 3.50% to 8.00% as of MarchB 31, 2014 and DecemberB 31, 2013, respectively. | |||||||||||||||||||||||||||
[3] | Excludes mortgage premium of $1,037 and discount of $(853), net of accumulated amortization, which was outstanding as of MarchB 31, 2014 and mortgages payable of $30,124 associated with one investment property classified as held for sale as of MarchB 31, 2014. Includes $8,284 of variable rate mortgage debt that was swapped to a fixed rate as of MarchB 31, 2014. | |||||||||||||||||||||||||||
[4] | The variable rate construction loan bears interest at a floating rate of London Interbank Offered Rate (LIBOR) plus 2.25%. |
Mortgages_Payable_Scheduled_De
Mortgages Payable - Scheduled Debt Maturities (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jul. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | ||||||
property | Fixed rate debt | Variable rate debt | Variable rate debt | Mortgages payable | Mortgages payable | Mortgages payable | Mortgages payable | Unsecured credit facility | Unsecured credit facility | Construction loan | Construction loan | Consolidated indebtedness | ||||||||
Fixed rate debt | Fixed rate debt | Fixed rate debt | Variable rate debt | Variable rate debt | Variable rate debt | |||||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
2014 | $30,490 | ' | $17,509 | $12,981 | ' | ' | ' | $17,509 | ' | $0 | $0 | $12,981 | ' | ' | ||||||
2015 | 384,557 | ' | 384,557 | 0 | ' | ' | ' | 384,557 | ' | 0 | 0 | 0 | ' | ' | ||||||
2016 | 46,172 | ' | 46,172 | 0 | ' | ' | ' | 46,172 | ' | 0 | 0 | 0 | ' | ' | ||||||
2017 | 526,019 | ' | 296,019 | 230,000 | ' | ' | ' | 296,019 | ' | 0 | 230,000 | 0 | ' | ' | ||||||
2018 | 462,369 | ' | 312,369 | 150,000 | ' | ' | ' | 12,369 | ' | 300,000 | 150,000 | 0 | ' | ' | ||||||
Thereafter | 842,651 | ' | 842,651 | 0 | ' | ' | ' | 842,651 | ' | 0 | 0 | 0 | ' | ' | ||||||
Total | 2,292,258 | [1] | ' | 1,899,277 | 392,981 | ' | ' | ' | 1,599,277 | [2],[3] | 1,673,080 | [3] | 300,000 | [4] | 380,000 | 12,981 | [5] | 11,359 | [5] | ' |
Weighted average interest rate on debt (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
2014 | 4.87% | ' | 6.68% | 2.44% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
2015 | 5.70% | ' | 5.70% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
2016 | 5.86% | ' | 5.86% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
2017 | 3.91% | ' | 5.66% | 1.66% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
2018 | 2.00% | ' | 2.19% | 1.61% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Thereafter | 6.52% | ' | 6.52% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Total | 4.84% | ' | 5.49% | 1.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Premium, net of accumulated amortization | 1,037 | ' | ' | ' | ' | ' | ' | 1,037 | 1,175 | ' | ' | ' | ' | ' | ||||||
Discount, net of accumulated amortization | -853 | ' | ' | ' | ' | ' | ' | -853 | -981 | ' | ' | ' | ' | ' | ||||||
Mortgages payable associated with investment properties held for sale | ' | ' | ' | ' | ' | ' | ' | 30,124 | 6,435 | ' | ' | ' | ' | ' | ||||||
Number of properties held for sale with mortgages payable | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Variable rate debt swapped to fixed rate debt | $300,000 | ' | ' | ' | $300,000 | $8,284 | $8,337 | ' | ' | ' | ' | ' | ' | ' | ||||||
Derivative reference rate | 'one-month floating rate LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Fixed interest rate (as a percent) | 0.54% | 0.54% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Weighted average maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 6 months | ||||||
[1] | As of MarchB 31, 2014, the weighted average years to maturity of consolidated indebtedness was 4.5 years. | |||||||||||||||||||
[2] | Excludes mortgage premium of $1,037 and discount of $(853), net of accumulated amortization, which was outstanding as of MarchB 31, 2014 and mortgages payable of $30,124 associated with one investment property classified as held for sale as of MarchB 31, 2014. Includes $8,284 of variable rate mortgage debt that was swapped to a fixed rate as of MarchB 31, 2014. | |||||||||||||||||||
[3] | Includes $8,284 and $8,337 of variable rate mortgage debt that was swapped to a fixed rate as of MarchB 31, 2014 and DecemberB 31, 2013, respectively, and excludes mortgages payable of $30,124 and $6,435 associated with properties classified as held for sale as of MarchB 31, 2014 and DecemberB 31, 2013, respectively. The fixed rate mortgages had interest rates ranging from 3.50% to 8.00% as of MarchB 31, 2014 and DecemberB 31, 2013, respectively. | |||||||||||||||||||
[4] | In July 2012, the Company entered into an interest rate swap transaction to convert the variable rate portion of $300,000 of LIBOR-based debt to a fixed rate through February 24, 2016. The swap effectively converts one-month floating rate LIBOR to a fixed rate of 0.53875% over the term of the swap. | |||||||||||||||||||
[5] | The variable rate construction loan bears interest at a floating rate of London Interbank Offered Rate (LIBOR) plus 2.25%. |
Credit_Facility_Details
Credit Facility (Details) (USD $) | Mar. 31, 2014 | Jul. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 13-May-13 | 13-May-13 | 13-May-13 |
In Thousands, unless otherwise specified | financial_institutions | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured revolving line of credit | Unsecured term loan | Unsecured term loan | Unsecured term loan | Unsecured term loan | Unsecured term loan | Unsecured term loan | Unsecured term loan | KeyBank and Wells Fargo Syndicate | KeyBank and Wells Fargo Syndicate | KeyBank and Wells Fargo Syndicate | |
Minimum | Maximum | Weighted average | Investment grade rated | Investment grade rated | LIBOR | LIBOR | LIBOR | LIBOR | LIBOR | LIBOR | Weighted average | LIBOR | LIBOR | LIBOR | LIBOR | LIBOR | LIBOR | Unsecured credit facility | Unsecured revolving line of credit | Unsecured term loan | ||||
Minimum | Maximum | Minimum | Maximum | Investment grade rated | Investment grade rated | Investment grade rated | Minimum | Maximum | Investment grade rated | Investment grade rated | Investment grade rated | |||||||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||||
Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | $550,000 | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,000 |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,450,000 | ' | ' |
Period of extension of maturity (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' |
Extension fee as a percentage of commitment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | ' |
Reference rate for variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | ' | ' | 'LIBOR | ' | ' | ' | ' | ' |
Variable interest rate spread (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.05% | ' | 0.90% | 1.70% | ' | ' | 1.45% | 2.00% | ' | 1.05% | 2.05% | ' | ' | ' |
Quarterly unused fees (as a percent) | ' | ' | ' | 0.25% | 0.30% | ' | 0.15% | 0.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of financial institutions associated with credit facility that is counterparty to the interest rate swap | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate debt swapped to fixed rate debt | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate (as a percent) | 0.54% | 0.54% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as percent) | ' | ' | ' | ' | ' | 1.66% | ' | ' | ' | ' | ' | ' | ' | ' | 1.86% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed | ' | ' | $230,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Interes
Derivative Instruments - Interest Rate Swaps Designated as Cash Flow Hedges (Details) (Interest rate swaps, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
instrument | instrument | |
Interest rate swaps | ' | ' |
Derivative Financial Instruments | ' | ' |
Number of interest rate swaps utilized to hedge variable cash flows | 2 | 2 |
Amount of gain (loss) on cash flow hedges expected to be reclassified to interest expense over the next 12 months | $1,096 | ' |
Interest Rate Derivatives | ' | ' |
Number of instruments | 2 | 2 |
Notional | $308,284 | $308,337 |
Derivative_Instruments_Estimat
Derivative Instruments - Estimated Fair Value (Details) (Interest rate swaps, Derivatives designated as cash flow hedges, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest rate swaps | Derivatives designated as cash flow hedges | ' | ' |
Derivative Financial Instruments | ' | ' |
Fair value of derivative liability | $756 | $751 |
Derivative_Instruments_Effect_
Derivative Instruments - Effect on Statements of Operations (Details) (Interest rate swaps, Cash flow hedges, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest rate swaps | Cash flow hedges | ' | ' |
Derivative Financial Instruments | ' | ' |
Amount of loss recognized in other comprehensive income on derivative (effective portion) | $309 | $51 |
Amount of loss reclassified from AOCI into income (effective portion) | 291 | 517 |
Amount of (gain) loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ($13) | $153 |
Investment_in_Unconsolidated_J2
Investment in Unconsolidated Joint Ventures - Summary (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
third_party | |||||
Investment Summary | ' | ' | ' | ||
Investment in unconsolidated joint ventures | $14,268 | ' | $15,776 | ||
Number of unaffiliated parties that are co-owners in Captive | 4 | ' | ' | ||
Percent of combined condensed financial information | 100.00% | ' | ' | ||
Profits, Losses and Capital Activity | ' | ' | ' | ||
Company's share of net income (loss) | -848 | 1,290 | ' | ||
Net cash distributions from/(contributions to) joint ventures | 730 | 1,524 | ' | ||
Fees earned by the Company | 211 | 812 | ' | ||
Amortization of basis differences in joint venture properties | 70 | 9 | ' | ||
MS Inland Fund, LLC | ' | ' | ' | ||
Investment Summary | ' | ' | ' | ||
Ownership interest of unconsolidated joint ventures (as a percent) | 20.00% | ' | 20.00% | ||
Investment in unconsolidated joint ventures | 6,403 | [1] | ' | 6,915 | |
Number of real estate properties owned | 6 | ' | ' | ||
Profits, Losses and Capital Activity | ' | ' | ' | ||
Company's share of net income (loss) | 173 | 124 | ' | ||
Net cash distributions from/(contributions to) joint ventures | 755 | 952 | ' | ||
Fees earned by the Company | 211 | 228 | ' | ||
Oak Property and Casualty LLC | ' | ' | ' | ||
Investment Summary | ' | ' | ' | ||
Ownership interest of unconsolidated joint ventures (as a percent) | 20.00% | ' | 20.00% | ||
Investment in unconsolidated joint ventures | 7,865 | [2] | ' | 8,861 | |
Profits, Losses and Capital Activity | ' | ' | ' | ||
Company's share of net income (loss) | -1,021 | -921 | ' | ||
Net cash distributions from/(contributions to) joint ventures | -25 | 0 | ' | ||
Fees earned by the Company | 0 | 0 | ' | ||
Hampton Retail Colorado, L.L.C. | ' | ' | ' | ||
Profits, Losses and Capital Activity | ' | ' | ' | ||
Company's share of net income (loss) | 0 | 2,409 | [3] | ' | |
Net cash distributions from/(contributions to) joint ventures | 0 | 16 | ' | ||
Fees earned by the Company | 0 | 1 | ' | ||
Impairment of investment in unconsolidated joint ventures | ' | 1,700 | ' | ||
Hampton Retail Colorado, L.L.C. | Ownership Percentage - 100% | ' | ' | ' | ||
Profits, Losses and Capital Activity | ' | ' | ' | ||
Impairment charges | ' | 234 | ' | ||
Hampton Retail Colorado, L.L.C. | Ownership Percentage - Pro Rata | ' | ' | ' | ||
Profits, Losses and Capital Activity | ' | ' | ' | ||
Impairment charges | ' | 224 | ' | ||
RioCan | ' | ' | ' | ||
Profits, Losses and Capital Activity | ' | ' | ' | ||
Company's share of net income (loss) | 0 | -322 | [4] | ' | |
Net cash distributions from/(contributions to) joint ventures | 0 | 556 | ' | ||
Fees earned by the Company | $0 | $583 | ' | ||
MS Inland joint venture partner | ' | ' | ' | ||
Investment Summary | ' | ' | ' | ||
Ownership interest of joint venture partner in joint venture | 80.00% | ' | ' | ||
[1] | The MS Inland Fund,B LLC (MS Inland) joint venture was formed with a large state pension fund; the Company is the managing member of the venture and earns fees for providing property management and leasing services. The Company has the ability to exercise significant influence, but does not have financial or operating control over this joint venture, and as a result the Company accounts for its investment pursuant to the equity method of accounting. Subsequent to March 31, 2014, the Company entered into an agreement to dissolve its joint venture arrangement with its partner in MS Inland through the acquisition of its partnerbs 80% interest in the six multi-tenant retail properties owned by the joint venture. The transaction is expected to close in June 2014, subject to customary closing conditions. | ||||
[2] | Oak PropertyB & CasualtyB LLC (the Captive) is an insurance association owned by the Company and four other unaffiliated parties. The Captive was formed to insure/reimburse the membersb deductible obligations for property and general liability insurance claims subject to certain limitations. The Company entered into the Captive to stabilize insurance costs, manage exposures and recoup expenses through the function of the Captive. It has been determined that the Captive is a VIE, but because the Company does not hold the power to most significantly impact the Captivebs performance, the Company is not considered the primary beneficiary. Accordingly, the Companybs investment in the Captive is accounted for pursuant to the equity method of accounting. The Companybs risk of loss is limited to its investment and the Company is not required to fund additional capital to the Captive. | ||||
[3] | During the three months ended MarchB 31, 2013, Hampton determined that the carrying value of certain of its assets was not recoverable and, accordingly, recorded property level impairment charges in the amount of $234, of which the Companybs share was $224. The joint venturebs estimate of fair value relating to this impairment assessment was based upon a bona fide purchase offer. During 2013, the Company dissolved its joint venture arrangement with its partner in Hampton. | ||||
[4] | On October 1, 2013, the Company dissolved its joint venture arrangement with its partner in RioCan. |
Investment_in_Unconsolidated_J3
Investment in Unconsolidated Joint Ventures - Combined Condensed Balance Sheets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Combined Condensed Financial Information | ' | ' |
Real estate assets | $270,930 | $270,916 |
Less accumulated depreciation | -54,647 | -52,624 |
Real estate, net | 216,283 | 218,292 |
Other assets, net | 44,239 | 49,227 |
Total assets | 260,522 | 267,519 |
Mortgage debt | 142,183 | 142,537 |
Other liabilities, net | 19,992 | 22,725 |
Total liabilities | 162,175 | 165,262 |
Total equity | 98,347 | 102,257 |
Total liabilities and equity | $260,522 | $267,519 |
Investment_in_Unconsolidated_J4
Investment in Unconsolidated Joint Ventures - Combined Condensed Statements of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Oct. 02, 2013 | Oct. 02, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
property | property | property | RioCan | RioCan | RioCan | RioCan | Hampton | Hampton | Other Joint Ventures | Other Joint Ventures | |
RioCan dispositions | RioCan acquisitions | ||||||||||
property | property | ||||||||||
Combined Condensed Financial Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property related income | $6,886 | $19,110 | ' | $0 | $12,350 | ' | ' | $0 | $0 | $6,886 | $6,760 |
Other income | 2,118 | 2,022 | ' | 0 | 0 | ' | ' | 0 | 0 | 2,118 | 2,022 |
Total revenues | 9,004 | 21,132 | ' | 0 | 12,350 | ' | ' | 0 | 0 | 9,004 | 8,782 |
Property operating expenses | 929 | 2,545 | ' | 0 | 1,682 | ' | ' | 0 | 0 | 929 | 863 |
Real estate taxes | 1,312 | 3,350 | ' | 0 | 2,043 | ' | ' | 0 | 0 | 1,312 | 1,307 |
Depreciation and amortization | 2,418 | 9,830 | ' | 0 | 7,355 | ' | ' | 0 | 0 | 2,418 | 2,475 |
Loss (gain) on lease terminations | -179 | 545 | ' | 0 | 539 | ' | ' | 0 | 0 | -179 | 6 |
General and administrative expenses | 78 | 244 | ' | 0 | 144 | ' | ' | 0 | 2 | 78 | 98 |
Interest expense, net | 1,770 | 2,731 | ' | 0 | 2,474 | ' | ' | 0 | -1,526 | 1,770 | 1,783 |
Other expense, net | 3,078 | 1,956 | ' | 0 | 0 | ' | ' | 0 | 0 | 3,078 | 1,956 |
Total expenses | 9,406 | 21,201 | ' | 0 | 14,237 | ' | ' | 0 | -1,524 | 9,406 | 8,488 |
(Loss) income from continuing operations | -402 | -69 | ' | 0 | -1,887 | ' | ' | 0 | 1,524 | -402 | 294 |
(Loss) income from discontinued operations | 3 | -453 | ' | 0 | -452 | ' | ' | 0 | -48 | 3 | 47 |
Gain on sales of investment properties - discontinued operations | 0 | 1,019 | ' | 0 | 0 | ' | ' | 0 | 1,019 | 0 | 0 |
Net (loss) income | ($399) | $497 | ' | $0 | ($2,339) | ' | ' | $0 | $2,495 | ($399) | $341 |
Number of real estate properties acquired | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' |
Number of real estate properties sold | 1 | 3 | 20 | ' | ' | 8 | ' | ' | ' | ' | ' |
Ownership interest sold to joint venture partner in joint venture | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity | ' | ' |
Total net consideration | ($37) | $688 |
2013 ATM Equity Program | ' | ' |
Equity | ' | ' |
Maximum aggregate offering price | 200,000 | ' |
Number of common shares sold | 0 | 56 |
Total net consideration | 0 | 688 |
Average price per share | $0 | $14.94 |
Aggregate offering price of remaining common shares available for sale | $115,165 | ' |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Numerator: | ' | ' | ||
Income (loss) from continuing operations | $13,621 | ($11,629) | ||
Gain on sales of investment properties | 0 | 4,264 | ||
Preferred stock dividends | -2,362 | -2,362 | ||
Income (loss) from continuing operations attributable to common shareholders | 11,259 | -9,727 | ||
Income from discontinued operations | 507 | 5,485 | ||
Net income (loss) attributable to common shareholders | 11,766 | -4,242 | ||
Distributions paid on unvested restricted shares | -25 | -8 | ||
Net income (loss) attributable to common shareholders excluding amounts attributable to unvested restricted shares | $11,741 | ($4,250) | ||
Denominator for earnings (loss) per common share - basic: | ' | ' | ||
Weighted average number of common shares outstanding | 236,151 | [1] | 230,611 | [2] |
Effect of dilutive securities - stock options | 2 | [3] | 0 | [3] |
Denominator for earnings (loss) per common share - diluted: | ' | ' | ||
Weighted average number of common and common equivalent shares outstanding | 236,153 | 230,611 | ||
Shares excluded from computation of earnings per share | ' | ' | ||
Shares of restricted stock excluded from weighted average shares outstanding | 414 | 95 | ||
Weighted average number of shares of restricted stock | 264 | 67 | ||
Stock options | ' | ' | ||
Anti-dilutive securities excluded from computation of earnings per share | ' | ' | ||
Number of outstanding options to purchase shares of common stock | 78 | 80 | ||
Weighted average exercise price of outstanding options to purchase shares of common stock (in dollars per share) | $19.10 | $19.17 | ||
Number of outstanding options to purchase shares of common stock, the effect of which would be anti-dilutive | 64 | 80 | ||
Weighted average exercise price of outstanding options to purchase shares of common stock excluded from diluted EPS calculation (in dollars per share) | $20.71 | $19.17 | ||
[1] | Excluded from this weighted average amount are 414 shares of restricted common stock, which equate to 264 shares on a weighted average basis for the three months ended MarchB 31, 2014. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. | |||
[2] | Excluded from this weighted average amount are 95 shares of restricted common stock, which equate to 67 shares on a weighted average basis for the three months ended MarchB 31, 2013. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. | |||
[3] | There were outstanding options to purchase 78 and 80 shares of common stock as of MarchB 31, 2014 and 2013, respectively, at a weighted average exercise price of $19.10 and $19.17, respectively. Of these outstanding options, 64 and 80 shares of common stock as of MarchB 31, 2014 and 2013, respectively, at a weighted average exercise price of $20.71 and $19.17, respectively, have been excluded from the common shares used in calculating diluted earnings per share as including them would be anti-dilutive. |
Provision_for_Impairment_of_In2
Provision for Impairment of Investment Properties (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
property | property | |
Provision for Impairment of Investment Properties | ' | ' |
Number of properties with impairment indicators | 12 | 10 |
Number of wholly-owned properties classified as held for sale | 1 | ' |
Number of properties with impairment indicators whose undiscounted cash flows exceeded its carrying value | 11 | ' |
Weighted average rate in which undiscounted cash flows exceeded carrying value | 19.00% | 49.00% |
Provision for impairment of investment properties | $394 | $0 |
Number of properties with impairment indicators that were subsequently sold | ' | 3 |
Midtown Center | ' | ' |
Provision for Impairment of Investment Properties | ' | ' |
Square footage | 408,500 | ' |
Provision for impairment of investment properties | 394 | ' |
Estimated fair value of impaired properties as of impairment date | $47,150 | ' |
Fair_Value_Measurements_Carryi
Fair Value Measurements - Carrying Value and Estimated Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial liabilities: | ' | ' |
Mortgages payable, net | $1,612,442 | $1,684,633 |
Carrying value | ' | ' |
Financial liabilities: | ' | ' |
Mortgages payable, net | 1,612,442 | 1,684,633 |
Credit facility | 680,000 | 615,000 |
Derivative liability | 756 | 751 |
Fair value | ' | ' |
Financial liabilities: | ' | ' |
Mortgages payable, net | 1,767,509 | 1,827,638 |
Credit facility | 682,534 | 617,478 |
Derivative liability | $756 | $751 |
Fair_Value_Measurements_Recurr
Fair Value Measurements - Recurring Fair Value Measurements (Details) (Recurring Fair Value Measurements, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 2 | ' | ' |
Fair Value Measurements | ' | ' |
Derivative liability | $756 | $751 |
Total | ' | ' |
Fair Value Measurements | ' | ' |
Derivative liability | $756 | $751 |
Fair_Value_Measurements_Nonrec
Fair Value Measurements - Nonrecurring Fair Value Measurements (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | ||||
Aon Hewitt East Campus | Four Peaks Plaza | Lake Mead Crossing | Investment properties held for sale | Minimum | Maximum | Nonrecurring Fair Value Measurements | Nonrecurring Fair Value Measurements | Nonrecurring Fair Value Measurements | Nonrecurring Fair Value Measurements | Nonrecurring Fair Value Measurements | Nonrecurring Fair Value Measurements | |||||||
Operating properties | Investment properties held for sale | Level 2 | Level 3 | Total | Total | |||||||||||||
Investment properties held for sale | Operating properties | Operating properties | Investment properties held for sale | |||||||||||||||
Fair Value Measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Fair value of investment properties | ' | ' | $18,000 | $14,000 | $43,000 | ' | ' | ' | ' | ' | $47,150 | [1] | $75,000 | [2] | $75,000 | $47,150 | ||
Provision for impairment | 394 | 0 | ' | ' | ' | ' | ' | ' | 59,486 | [3] | 394 | [3] | ' | ' | ' | ' | ||
Transaction costs | ' | ' | ' | ' | ' | $602 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating expense growth rates | ' | ' | ' | ' | ' | ' | 3.27% | 3.56% | ' | ' | ' | ' | ' | ' | ||||
Discount rates | ' | ' | ' | ' | ' | ' | 7.29% | 8.45% | ' | ' | ' | ' | ' | ' | ||||
Terminal capitalization rates | ' | ' | ' | ' | ' | ' | 6.79% | 8.49% | ' | ' | ' | ' | ' | ' | ||||
[1] | Represents an impairment charge recorded during the three months ended MarchB 31, 2014 for Midtown Center, the property that was classified as held for sale as of March 31, 2014. Such charge, calculated as the expected sales price from the executed purchase documents less estimated transaction costs as compared to the Companybs carrying value of its investment, was determined to be a Level 2 input. The estimated transaction costs totaling $602 are not reflected as a reduction to the fair value disclosed in the table above. | |||||||||||||||||
[2] | Includes impairment charges to write down the carrying value of the Companybs Aon Hewitt East Campus, Four Peaks Plaza and Lake Mead Crossing investment properties to estimated fair value. The estimated fair value of Aon Hewitt East Campus of $18,000 was based upon a bona fide purchase offer received by the Company from an unaffiliated third party (a Level 3 input). A change in the Companybs estimated holding period was the primary driver of the impairment charges recorded to the Companybs investments in Four Peaks Plaza and Lake Mead Crossing. The estimated fair value of Four Peaks Plaza of $14,000 and Lake Mead Crossing of $43,000 was determined using the income approach. The income approach involves an estimate of the income stream for a property over a designated holding period; such income stream plus a reversion (presumed sale) value is discounted to a present value at a risk-adjusted rate. Discount rates and growth assumptions utilized in this approach are derived from property-specific information, market transactions and other financial and industry data. The terminal capitalization rate and discount rate are significant inputs to this valuation. The following are the key Level 3 inputs used in estimating the fair value of Four Peaks Plaza and Lake Mead Crossing as of December 31, 2013. 2013 LowB HighRental growth ratesB Varies (i)B Varies (i)Operating expense growth ratesB 3.27%B 3.56%Discount ratesB 7.29%B 8.45%Terminal capitalization ratesB 6.79%B 8.49%(i)Since cash flow models are established at the tenant level, projected rental revenue growth rates fluctuate over the course of the estimated holding period based upon the timing of lease rollover, amount of available space and other property and space-specific factors. | |||||||||||||||||
[3] | Excludes impairment charges recorded on investment properties sold prior to MarchB 31, 2014 and DecemberB 31, 2013, respectively. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Disclosures (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurements | ' | ' |
Mortgages payable, net | 1,612,442 | 1,684,633 |
Minimum | ' | ' |
Fair Value Measurements | ' | ' |
Discount rate (as a percent) | ' | 7.29% |
Maximum | ' | ' |
Fair Value Measurements | ' | ' |
Discount rate (as a percent) | ' | 8.45% |
Mortgages payable | Minimum | ' | ' |
Fair Value Measurements | ' | ' |
Discount rate (as a percent) | 2.40% | 2.40% |
Mortgages payable | Maximum | ' | ' |
Fair Value Measurements | ' | ' |
Discount rate (as a percent) | 5.10% | 5.60% |
Unsecured term loan | ' | ' |
Fair Value Measurements | ' | ' |
Discount rate (as a percent) | 1.35% | 1.35% |
Unsecured revolving line of credit | ' | ' |
Fair Value Measurements | ' | ' |
Discount rate (as a percent) | 1.40% | 1.40% |
Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Mortgages payable, net | 1,767,509 | 1,827,638 |
Credit facility | 682,534 | 617,478 |
Total | ' | ' |
Fair Value Measurements | ' | ' |
Mortgages payable, net | 1,767,509 | 1,827,638 |
Credit facility | 682,534 | 617,478 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Guarantees, Mortgage and construction loans, USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Guarantees | Mortgage and construction loans | ' |
Commitments and Contingencies | ' |
Amount of mortgage and construction loans guaranteed | $7,264 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | Apr. 22, 2014 | Apr. 22, 2014 | 6-May-14 | 6-May-14 |
MS Inland joint venture partner | 7.00% Series A cumulative redeemable preferred stock | 7.00% Series A cumulative redeemable preferred stock | Midtown Center | Subsequent events | Subsequent events | Subsequent events | Subsequent events | Subsequent events | Subsequent events | Subsequent events | Subsequent events | Subsequent events | Subsequent events | Subsequent events | |||
sqft | Senior Notes Due 2024 | Senior Notes Due 2021 | Mortgages payable | Senior Notes | MS Inland joint venture partner | MS Inland Fund, LLC | MS Inland Fund, LLC | 7.00% Series A cumulative redeemable preferred stock | Common stock | Midtown Center | Unsecured revolving line of credit | ||||||
property | Ownership Percentage - 100% | sqft | |||||||||||||||
Subsequent Events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount drawn on unsecured revolving line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000 |
Repayment of mortgages payable | 50,114 | 171,674 | ' | ' | ' | ' | ' | ' | 34,928 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | 4.84% | ' | ' | ' | ' | ' | ' | ' | 6.54% | 4.40% | ' | 4.79% | ' | ' | ' | ' | ' |
Prepayment fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,897 | ' |
Square footage | ' | ' | ' | ' | ' | 408,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 408,500 | ' |
Consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,150 | ' |
Preferred stock, dividend rate | ' | ' | ' | 7.00% | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' |
Preferred stock dividends declared (per share) | $0.44 | $0.49 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.44 | ' | ' | ' |
Common stock dividends declared (per share) | $0.17 | $0.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.17 | ' | ' |
Ownership interest acquired by joint venture partner in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' |
Number of properties that will be acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' |
Fair value of assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 234,000 | ' | 292,500 | ' | ' | ' | ' |
Ownership interest of joint venture partner in joint venture | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' |
Mortgage financing assumed on acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 142,200 | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | $150,000 | $100,000 | ' | $250,000 | ' | ' | ' | ' | ' | ' | ' |
Term of notes (in years) | ' | ' | ' | ' | ' | ' | '10 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 4.58% | 4.12% | ' | ' | ' | ' | ' | ' | ' | ' | ' |