Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35481 | |
Entity Registrant Name | RETAIL PROPERTIES OF AMERICA, INC. | |
Entity Central Index Key | 0001222840 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 42-1579325 | |
Entity Address, Address Line One | 2021 Spring Road | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Oak Brook | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60523 | |
City Area Code | 630 | |
Local Phone Number | 634-4200 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value | |
Trading Symbol | RPAI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 213,654,824 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investment properties: | ||
Land | $ 1,022,151 | $ 1,036,901 |
Building and other improvements | 3,527,330 | 3,607,484 |
Developments in progress | 100,079 | 48,369 |
Gross investment properties | 4,649,560 | 4,692,754 |
Less accumulated depreciation | (1,346,831) | (1,313,602) |
Net investment properties (includes $8,312 and $0 from consolidated variable interest entities, respectively) | 3,302,729 | 3,379,152 |
Cash and cash equivalents | 17,076 | 14,722 |
Accounts and notes receivable, net | 76,619 | 78,398 |
Acquired lease intangible assets, net | 84,639 | 97,090 |
Right-of-use lease assets | 50,405 | 0 |
Other assets, net (includes $287 and $1,264 from consolidated variable interest entities, respectively) | 69,072 | 78,108 |
Total assets | 3,600,540 | 3,647,470 |
Liabilities: | ||
Mortgages payable, net | 94,757 | 205,320 |
Unsecured notes payable, net | 796,074 | 696,362 |
Unsecured term loans, net | 716,254 | 447,367 |
Unsecured revolving line of credit | 24,000 | 273,000 |
Accounts payable and accrued expenses | 70,457 | 82,942 |
Distributions payable | 35,387 | 35,387 |
Acquired lease intangible liabilities, net | 65,415 | 86,543 |
Lease liabilities | 90,942 | 0 |
Other liabilities (includes $2,926 and $428 from consolidated variable interest entities, respectively) | 60,496 | 73,540 |
Total liabilities | 1,953,782 | 1,900,461 |
Commitments and contingencies (Note 13) | ||
Equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized, none issued or outstanding | 0 | 0 |
Additional paid-in capital | 4,509,337 | 4,504,702 |
Accumulated distributions in excess of earnings | (2,846,718) | (2,756,802) |
Accumulated other comprehensive loss | (18,495) | (1,522) |
Total shareholders’ equity | 1,644,338 | 1,746,591 |
Noncontrolling interests | 2,420 | 418 |
Total equity | 1,646,758 | 1,747,009 |
Total liabilities and equity | 3,600,540 | 3,647,470 |
Class A common stock | ||
Equity: | ||
Class A common stock | $ 214 | $ 213 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Net investment properties from VIEs (in dollars) | $ 8,312 | $ 0 |
Other assets, net from VIEs (in dollars) | 287 | 1,264 |
Other liabilities from VIEs (in dollars) | $ 2,926 | $ 428 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 475,000 | 475,000 |
Common stock, shares issued | 213,655 | 213,176 |
Common stock, shares outstanding | 213,655 | 213,176 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Lease income | $ 119,717 | $ 119,137 | $ 360,869 | $ 363,143 |
Expenses: | ||||
Operating expenses | 16,088 | 17,596 | 50,903 | 57,235 |
Real estate taxes | 18,583 | 18,037 | 55,520 | 56,206 |
Depreciation and amortization | 67,460 | 43,169 | 153,609 | 132,107 |
Provision for impairment of investment properties | 11,177 | 0 | 11,177 | 1,316 |
General and administrative expenses | 10,334 | 9,160 | 30,186 | 31,929 |
Total expenses | 123,642 | 87,962 | 301,395 | 278,793 |
Other (expense) income: | ||||
Interest expense | (25,084) | (21,336) | (59,877) | (56,918) |
Gain on sales of investment properties | 1,969 | 2,692 | 18,872 | 37,211 |
Other (expense) income, net | (1,113) | 303 | (2,244) | 853 |
Net (loss) income | (28,153) | 12,834 | 16,225 | 65,496 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net (loss) income attributable to common shareholders | $ (28,153) | $ 12,834 | $ 16,225 | $ 65,496 |
(Loss) earnings per common share – basic and diluted: | ||||
Net (loss) income per common share attributable to common shareholders | $ (0.13) | $ 0.06 | $ 0.07 | $ 0.30 |
Net (loss) income | $ (28,153) | $ 12,834 | $ 16,225 | $ 65,496 |
Other comprehensive (loss) income: | ||||
Net unrealized (loss) gain on derivative instruments (Note 8) | (7,152) | 863 | (16,973) | 4,476 |
Comprehensive (loss) income attributable to the Company | $ (35,305) | $ 13,697 | $ (748) | $ 69,972 |
Weighted average number of common shares outstanding – basic | 212,995 | 218,808 | 212,932 | 218,879 |
Weighted average number of common shares outstanding – diluted | 212,995 | 219,021 | 213,056 | 219,277 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stockClass A common stock | Additional paid-in capital | Accumulated distributions in excess of earnings | Accumulated other comprehensive income (loss) | Total shareholders' equity | Noncontrolling interests |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Cumulative effect of accounting change | $ (12) | $ 12 | |||||
Balance (in shares) at Dec. 31, 2017 | 219,237 | ||||||
Balance at Dec. 31, 2017 | $ 1,885,700 | $ 219 | $ 4,574,428 | (2,690,021) | 1,074 | $ 1,885,700 | $ 0 |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Net income (loss) | 65,496 | 65,496 | 65,496 | ||||
Other comprehensive income (loss) | 4,476 | 4,476 | 4,476 | ||||
Distributions declared to common shareholders | (109,022) | (109,022) | (109,022) | ||||
Issuance of common stock (in shares) | 59 | ||||||
Shares repurchased through common stock repurchase program (in shares) | (1,698) | ||||||
Shares repurchased through common stock repurchase program | (31,194) | $ (1) | (31,193) | (31,194) | |||
Issuance of restricted shares (in shares) | 382 | ||||||
Stock-based compensation expense, net of forfeitures (in shares) | (12) | ||||||
Stock-based compensation expense, net of forfeitures | 5,328 | 5,328 | 5,328 | ||||
Shares withheld for employee taxes (in shares) | (116) | ||||||
Shares withheld for employee taxes | (1,405) | (1,405) | (1,405) | ||||
Balance (in shares) at Sep. 30, 2018 | 217,852 | ||||||
Balance at Sep. 30, 2018 | 1,819,379 | $ 218 | 4,547,158 | (2,733,559) | 5,562 | 1,819,379 | 0 |
Balance (in shares) at Jun. 30, 2018 | 219,550 | ||||||
Balance at Jun. 30, 2018 | 1,871,589 | $ 219 | 4,576,752 | (2,710,081) | 4,699 | 1,871,589 | 0 |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Net income (loss) | 12,834 | 12,834 | 12,834 | ||||
Other comprehensive income (loss) | 863 | 863 | 863 | ||||
Distributions declared to common shareholders | (36,312) | (36,312) | (36,312) | ||||
Shares repurchased through common stock repurchase program (in shares) | (1,698) | ||||||
Shares repurchased through common stock repurchase program | (31,194) | $ (1) | (31,193) | (31,194) | |||
Stock-based compensation expense, net of forfeitures | 1,599 | 1,599 | 1,599 | ||||
Balance (in shares) at Sep. 30, 2018 | 217,852 | ||||||
Balance at Sep. 30, 2018 | 1,819,379 | $ 218 | 4,547,158 | (2,733,559) | 5,562 | 1,819,379 | 0 |
Balance (in shares) at Dec. 31, 2018 | 213,176 | ||||||
Balance at Dec. 31, 2018 | 1,747,009 | $ 213 | 4,504,702 | (2,756,802) | (1,522) | 1,746,591 | 418 |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Net income (loss) | 16,225 | 16,225 | 16,225 | ||||
Other comprehensive income (loss) | (16,973) | (16,973) | (16,973) | ||||
Contributions from noncontrolling interests | 2,002 | 2,002 | |||||
Distributions declared to common shareholders | (106,141) | (106,141) | (106,141) | ||||
Issuance of common stock (in shares) | 111 | ||||||
Issuance of restricted shares (in shares) | 469 | ||||||
Issuance of restricted shares | 1 | $ 1 | 1 | ||||
Stock-based compensation expense, net of forfeitures (in shares) | (16) | ||||||
Stock-based compensation expense, net of forfeitures | 5,672 | 5,672 | 5,672 | ||||
Shares withheld for employee taxes (in shares) | (85) | ||||||
Shares withheld for employee taxes | (1,037) | (1,037) | (1,037) | ||||
Balance (in shares) at Sep. 30, 2019 | 213,655 | ||||||
Balance at Sep. 30, 2019 | 1,646,758 | $ 214 | 4,509,337 | (2,846,718) | (18,495) | 1,644,338 | 2,420 |
Balance (in shares) at Jun. 30, 2019 | 213,662 | ||||||
Balance at Jun. 30, 2019 | 1,714,621 | $ 214 | 4,507,488 | (2,783,183) | (11,343) | 1,713,176 | 1,445 |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Net income (loss) | (28,153) | (28,153) | (28,153) | ||||
Other comprehensive income (loss) | (7,152) | (7,152) | (7,152) | ||||
Contributions from noncontrolling interests | 975 | 975 | |||||
Distributions declared to common shareholders | (35,382) | (35,382) | (35,382) | ||||
Stock-based compensation expense, net of forfeitures (in shares) | (7) | ||||||
Stock-based compensation expense, net of forfeitures | 1,849 | 1,849 | 1,849 | ||||
Balance (in shares) at Sep. 30, 2019 | 213,655 | ||||||
Balance at Sep. 30, 2019 | $ 1,646,758 | $ 214 | $ 4,509,337 | $ (2,846,718) | $ (18,495) | $ 1,644,338 | $ 2,420 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Distributions declared to common shareholders (in dollars per share) | $ 0.165625 | $ 0.165625 | $ 0.496875 | $ 0.496875 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||||
Net income | $ (28,153) | $ 12,834 | $ 16,225 | $ 65,496 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 153,609 | 132,107 | |||
Provision for impairment of investment properties | 11,177 | 0 | 11,177 | 1,316 | |
Gain on sales of investment properties | (18,872) | (37,211) | |||
Amortization of loan fees and debt premium and discount, net | 1,913 | 2,636 | |||
Amortization of stock-based compensation | 5,672 | 5,328 | |||
Debt prepayment fees | 8,151 | 5,791 | |||
Payment of leasing fees and inducements | (6,880) | (6,064) | |||
Changes in accounts receivable, net | 1,860 | (4,384) | |||
Changes in right-of-use lease assets | 1,438 | 0 | |||
Changes in accounts payable and accrued expenses, net | (4,222) | (8,344) | |||
Changes in lease liabilities | (496) | 0 | |||
Changes in other operating assets and liabilities, net | 6,156 | (28) | |||
Other, net | (5,043) | (4,935) | |||
Net cash provided by operating activities | 170,688 | 151,708 | |||
Cash flows from investing activities: | |||||
Purchase of investment properties | (29,891) | 0 | |||
Capital expenditures and tenant improvements | (59,971) | (51,259) | |||
Proceeds from sales of investment properties | 44,656 | 190,321 | |||
Investment in developments in progress | (17,817) | (9,337) | |||
Net cash (used in) provided by investing activities | (63,023) | 129,725 | |||
Cash flows from financing activities: | |||||
Principal payments on mortgages payable | (109,917) | (81,036) | |||
Proceeds from unsecured notes payable | 100,000 | 0 | |||
Proceeds from unsecured term loans | 270,000 | 0 | |||
Repayments of unsecured term loans | 0 | (100,000) | |||
Proceeds from unsecured revolving line of credit | 208,000 | 315,000 | |||
Repayments of unsecured revolving line of credit | (457,000) | (322,000) | |||
Payment of loan fees and deposits | (2,519) | (5,398) | |||
Debt prepayment fees | (8,151) | (5,791) | |||
Distributions paid | (106,141) | (109,021) | |||
Shares repurchased through common stock repurchase program | 0 | (20,681) | |||
Other, net | 965 | (1,405) | |||
Net cash used in financing activities | (104,763) | (330,332) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,902 | (48,899) | |||
Cash, cash equivalents and restricted cash, at beginning of period | 19,601 | 86,335 | $ 86,335 | ||
Cash, cash equivalents and restricted cash, at end of period | 22,503 | 37,436 | 22,503 | 37,436 | 19,601 |
Supplemental cash flow disclosure, including non-cash activities: | |||||
Cash paid for interest, net of interest capitalized | 56,950 | 54,554 | |||
Cash paid for amounts included in the measurement of operating lease liabilities | 4,523 | 0 | |||
Distributions payable | 35,387 | 36,312 | 35,387 | 36,312 | 35,387 |
Accrued shares repurchased through common stock repurchase program | 0 | 10,513 | |||
Accrued capital expenditures and tenant improvements | 6,048 | 10,631 | |||
Accrued leasing fees and inducements | 1,184 | 1,305 | |||
Accrued redevelopment costs | 565 | 511 | |||
Amounts reclassified to developments in progress | 34,746 | 0 | |||
Developments in progress placed in service | 1,377 | 9,389 | |||
Lease liabilities arising from obtaining right-of-use lease assets | 103,519 | 0 | |||
Straight-line ground rent liabilities reclassified to right-of-use lease asset | 31,030 | 0 | |||
Straight-line office rent liability reclassified to right-of-use lease asset | 507 | 0 | |||
Acquired ground lease intangible liability reclassified to right-of-use lease asset | 11,898 | 0 | |||
Purchase of investment properties (after credits at closing): | |||||
Net investment properties | (28,486) | 0 | |||
Accounts receivable, acquired lease intangibles and other assets | (1,792) | 0 | |||
Accounts payable, acquired lease intangibles and other liabilities | 387 | 0 | |||
Purchase of investment properties (after credits at closing) | (29,891) | 0 | |||
Proceeds from sales of investment properties: | |||||
Net investment properties | 30,119 | 148,952 | |||
Right-of-use lease assets | 8,242 | 0 | |||
Accounts receivable, acquired lease intangibles and other assets | 1,591 | 10,999 | |||
Lease liabilities | (11,326) | 0 | |||
Accounts payable, acquired lease intangibles and other liabilities | (2,842) | (6,841) | |||
Gain on sales of investment properties | 18,872 | 37,211 | |||
Proceeds from sales of investment properties | 44,656 | 190,321 | |||
Reconciliation of cash, cash equivalents and restricted cash reported on the Company’s condensed consolidated balance sheets to such amounts shown in the Company’s condensed consolidated statements of cash flows: | |||||
Cash and cash equivalents, at beginning of period | 14,722 | 25,185 | 25,185 | ||
Restricted cash, at beginning of period (included within “Other assets, net”) | 4,879 | 61,150 | 61,150 | ||
Cash, cash equivalents and restricted cash, at beginning of period | 19,601 | 86,335 | 86,335 | ||
Cash and cash equivalents, at end of period | 17,076 | 29,702 | 17,076 | 29,702 | 14,722 |
Restricted cash, at end of period (included within “Other assets, net”) | 5,427 | 7,734 | 5,427 | 7,734 | 4,879 |
Cash, cash equivalents and restricted cash, at end of period | $ 22,503 | $ 37,436 | $ 22,503 | $ 37,436 | $ 19,601 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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 and its primary purpose is to own and operate high quality, strategically located open-air shopping centers, including properties with a mixed-use component. As of September 30, 2019 , the Company owned 104 retail operating properties in the United States. 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 its 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. 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) and is subject to U.S. federal, state and local income taxes at regular corporate tax rates. The income tax expense incurred by 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 capitalization of development costs, provision for impairment, including estimates of holding periods, capitalization rates and discount rates (where applicable), and initial valuations and related amortization periods of deferred costs and intangibles, particularly with respect to property acquisitions and initial recognition of right-of-use lease assets and lease liabilities. Actual results could differ from these estimates. In accordance with Accounting Standards Codification Topic 205, Presentation of Financial Statements , certain prior year balances have been reclassified in order to conform to the current period presentation. Specifically, all lease-related revenues have been presented in a single line item, “Lease income,” rather than the previous presentation which separated revenues between “Rental income,” “Tenant recovery income” and “Other property income” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. All share amounts and dollar amounts in this Quarterly Report on Form 10-Q, including the condensed consolidated financial statements and notes thereto, are stated in thousands with the exception of per share, per square foot and per unit amounts. The accompanying condensed consolidated financial statements include the accounts of the Company, as well as all wholly-owned subsidiaries and consolidated variable interest entities (VIEs). All intercompany balances and transactions have been eliminated in consolidation. Wholly-owned subsidiaries generally consist of limited liability companies, limited partnerships and statutory trusts. The Company’s property ownership as of September 30, 2019 is summarized below: Property Count Retail operating properties 104 Development/redevelopment projects: Circle East 1 One Loudoun Downtown – Pads G & H (a) — Carillon 1 Total number of properties 106 (a) The operating portion of this property is included within the property count for retail operating properties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Refer to the Company’s 2018 Annual Report on Form 10-K for a summary of its significant accounting policies. Except as disclosed below, there have been no changes to the Company’s significant accounting policies in the nine months ended September 30, 2019 . Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, Leases . This new guidance, including related ASUs that were subsequently issued, requires lessees to recognize a liability to make lease payments and a right-of-use lease (ROU) asset, initially measured at the present value of lease payments, for both operating and financing leases. For leases with a term of 12 months or less, lessees are permitted to make an accounting policy election, by class of underlying asset, to not recognize lease liabilities and lease assets. The guidance allows lessees and lessors to make an accounting policy election, by class of underlying asset, to not separate non-lease components from lease components. The guidance also provides an optional transition method which would allow entities to initially apply the new guidance in the period of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings, if necessary, and provides a package of three practical expedients whereby companies are not required to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification (operating vs. capital/financing leases) for any expired or existing leases and (iii) initial direct costs for any existing leases (Package of Three Practical Expedients), as well as practical expedients whereby companies are not required to reassess whether land easements contain a lease and can use hindsight in determining the lease term and assessing impairment of the ROU asset. The guidance requires changes in collectibility of operating lease receivables to be presented as an adjustment to revenue rather than the previous presentation within “Operating expenses” on the condensed consolidated statements of operations and other comprehensive (loss) income. Finally, only incremental direct leasing costs may be capitalized under the new guidance, which is consistent with the Company’s previous policies. The Company adopted this new guidance on January 1, 2019, applied the requirements as of that date, made an accounting policy election to not separate non-lease components from lease components for all classes of assets, elected the Package of Three Practical Expedients as well as the practical expedient related to not reassessing whether land easements contain a lease. The Company did not elect the practical expedient related to hindsight for determining the lease term or assessing impairment of ROU assets. There was no retained earnings adjustment as a result of the adoption. The guidance regarding capitalization of leasing costs did not have any effect on the Company’s condensed consolidated financial statements. Upon adoption, the Company recognized lease liabilities and ROU assets of $103,432 for operating leases where it is the lessee related to long-term ground leases and office leases, which are presented as “Right-of-use lease assets” and “Lease liabilities” in the accompanying condensed consolidated balance sheets. The ROU assets are presented net of the Company’s existing straight-line ground rent liabilities of $31,030 and acquired ground lease intangible liability of $11,898 as of January 1, 2019. For leases with a term of 12 months or less, the Company made an accounting policy election to not recognize lease liabilities and lease assets. For leases where the Company is the lessor, as noted above, the Company made an accounting policy election to not separate non-lease components from lease components for all classes of assets and has presented all lease-related revenues in a single line item, “Lease income,” rather than the previous presentation which separated revenues between “Rental income,” “Tenant recovery income” and “Other property income” in the condensed consolidated statements of operations and other comprehensive (loss) income for the current and comparative period. This resulted in the reclassification of (i) $90,975 and $278,076 of revenue previously presented as “Rental income,” (ii) $26,817 and $80,090 of revenue previously presented as “Tenant recovery income” and (iii) $1,345 and $4,977 of revenue previously presented as “Other property income” for the three and nine months ended September 30, 2018 , respectively, into “Lease income” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. In addition, the Company began recording changes in collectibility of operating lease receivables as an adjustment to “Lease income” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. For the three and nine months ended September 30, 2018 , changes in collectibility of operating lease receivables are presented within “Operating expenses” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. Effective January 1, 2019, the Company adopted ASU 2018-16, Derivatives and Hedging , due to the Company’s early adoption of ASU 2017-12, Derivatives and Hedging . This new guidance permits use of the Overnight Index Swap (OIS) Rate based on the Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes. SOFR represents the fifth permissible U.S. benchmark rate in addition to the following current eligible benchmark interest rates: (i) direct Treasury obligations of the U.S. government (UST), (ii) the London Interbank Offered Rate (LIBOR) swap rate, (iii) the OIS Rate based on the Fed Funds Effective Rate and (iv) the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. The adoption of this pronouncement did not have any effect on the Company’s condensed consolidated financial statements as the Company did not change its benchmark rate. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments – Credit Losses . This new guidance is effective January 1, 2020, with early adoption permitted beginning January 1, 2019, and replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. Financial assets that are measured at amortized cost will be required to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. In addition, an entity must consider broader information in developing its expected credit loss estimate, including the use of forecasted information. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , which clarifies that receivables arising from operating leases are not within the scope of this new guidance. Generally, the pronouncement requires a modified retrospective method of adoption. The Company does not expect the adoption of this pronouncement will have a material effect on its condensed consolidated financial statements; however, it will continue to evaluate this assessment until the guidance becomes effective. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement . This new guidance is effective January 1, 2020, with early adoption permitted, and provides new, and in some cases eliminates or modifies the existing disclosure requirements on fair value measurements. Public entities will now be required to disclose the following: (i) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. In addition, public entities will no longer be required to disclose the following: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (ii) the policy for timing of transfers between levels and (iii) the valuation processes for Level 3 fair value measurements. The new pronouncement also clarifies and modifies certain existing provisions to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and clarifies that materiality is an appropriate consideration when evaluating disclosure requirements. As permitted by the new pronouncement, the Company removed the discussion of its valuation processes for Level 3 fair value measurements. No other disclosures were removed as the Company did not have any transfers between levels of the fair value hierarchy during the current and comparative periods. The Company expects to adopt the new disclosures on a prospective basis as of January 1, 2020. |
Acquisitions and Developments i
Acquisitions and Developments in Progress | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS AND DEVELOPMENTS IN PROGRESS Acquisitions The Company closed on the following acquisitions during the nine months ended September 30, 2019 : Date Property Name Metropolitan Property Type Square Footage Acquisition Price March 7, 2019 North Benson Center Seattle Multi-tenant retail 70,500 $ 25,340 June 10, 2019 Paradise Valley Marketplace – Parcel Phoenix Land (a) — 1,343 August 13, 2019 Southlake Town Square – Parcel Dallas Single-user parcel (b) 3,100 3,293 73,600 $ 29,976 (c) (a) The Company acquired a parcel adjacent to its Paradise Valley Marketplace multi-tenant retail operating property. The total number of properties in the Company’s portfolio was not affected by this transaction. (b) The Company acquired a single-user parcel at its Southlake Town Square multi-tenant retail operating property. The total number of properties in the Company’s portfolio was not affected by this transaction. (c) Acquisition price does not include capitalized closing costs and adjustments totaling $316 . The Company did not acquire any properties during the nine months ended September 30, 2018 . The following table summarizes the acquisition date values, before prorations, the Company recorded in conjunction with the acquisitions discussed above: Nine Months Ended September 30, 2019 Land $ 14,819 Building and other improvements, net 13,667 Acquired lease intangible assets (a) 2,040 Acquired lease intangible liabilities (b) (234 ) Net assets acquired $ 30,292 (a) The weighted average amortization period for acquired lease intangible assets is six years . (b) The weighted average amortization period for acquired lease intangible liabilities is five years . The above acquisitions were funded using a combination of available cash on hand, proceeds from dispositions and proceeds from the Company’s unsecured revolving line of credit. All of the acquisitions completed during 2019 were considered asset acquisitions and, as such, transaction costs were capitalized upon closing. Developments in Progress The Company’s developments in progress are as follows: Property Name MSA September 30, 2019 December 31, 2018 Active developments/redevelopments: Circle East (a) Baltimore $ 31,334 $ 22,383 Plaza del Lago (b) Chicago — 536 One Loudoun Downtown (c) Washington, D.C. 18,852 — Carillon (d) Washington, D.C. 24,443 — 74,629 22,919 Land held for future development: One Loudoun Uptown (e) Washington, D.C. 25,450 25,450 Total developments in progress $ 100,079 $ 48,369 (a) During the year ended December 31, 2018, the Company received net proceeds of $11,820 in connection with the sale of air rights to a third party to develop multi-family rental units at Circle East, which is shown net in the “Developments in progress” balance as of September 30, 2019 and December 31, 2018 in the accompanying condensed consolidated balance sheets. (b) During the three months ended September 30, 2019, the Company placed the Plaza del Lago multi-family rental redevelopment project in service and reclassified the related costs from “Developments in progress” into “Building and other improvements” in the accompanying condensed consolidated balance sheets. (c) During the three months ended June 30, 2019, the Company commenced the active development of Pads G & H at One Loudoun Downtown, at which time all predevelopment costs related to the development as well as the Company’s historical basis in the pads were reclassified from “Other assets, net” and “Investment properties,” respectively, to “Developments in progress” in the accompanying condensed consolidated balance sheets. (d) During the three months ended September 30, 2019, the Company commenced the active redevelopment at Carillon, at which time the Company (i) recorded $26,330 of accelerated depreciation related to the write-off of assets taken out of service due to the demolition of existing structures in connection with the redevelopment and (ii) reclassified all predevelopment costs related to the redevelopment as well as the Company’s historical basis in the phases to be developed from “Other assets, net” and “Investment properties,” respectively, to “Developments in progress” in the accompanying condensed consolidated balance sheets. (e) During the three months ended December 31, 2018, the Company acquired One Loudoun Uptown, a 58 -acre land parcel, of which 32 acres are developable. The Company capitalized $1,204 and $2,437 of indirect project costs related to redevelopment projects during the three and nine months ended September 30, 2019 , including, among other costs, $366 and $1,066 of internal salaries and related benefits of personnel directly involved in the redevelopment projects and $570 and $940 of interest, respectively. The Company capitalized $499 and $1,463 of indirect project costs related to redevelopment projects during the three and nine months ended September 30, 2018 , including, among other costs, $276 and $689 of internal salaries and related benefits of personnel directly involved in the redevelopment projects and $98 and $348 of interest, respectively. Variable Interest Entities During the nine months ended September 30, 2019, the Company entered into a joint venture related to the development, ownership and operation of the medical office building portion of the redevelopment project at Carillon, of which the Company owns 95% of the joint venture. During the year ended December 31, 2018, the Company entered into two joint ventures related to the development, ownership and operation of the (i) multi-family rental portion of the expansion project at One Loudoun Downtown – Pads G & H and (ii) multi-family rental redevelopment project at Carillon, of which joint ventures the Company owns 90% and 95% , respectively. The joint ventures are considered VIEs primarily because the Company’s joint venture partners do not have substantive kick-out rights or substantive participating rights. The Company is considered the primary beneficiary as it has a controlling financial interest in each joint venture. As such, the Company has consolidated these joint ventures and presented the joint venture partners’ interests as noncontrolling interests. As of September 30, 2019 and December 31, 2018 , the Company had recorded the following related to the consolidated joint ventures: September 30, 2019 December 31, 2018 One Loudoun Downtown – Pads G & H Carillon – Phase One Multi-family Rental Carillon – Phase One Medical Office Total One Loudoun Downtown – Pads G & H Carillon – Phase One Multi-family Rental Carillon – Phase One Medical Office Total Net investment properties $ 5,175 $ 2,736 $ 401 $ 8,312 $ — $ — $ — $ — Other assets, net $ 287 $ — $ — $ 287 $ 579 $ 685 $ — $ 1,264 Other liabilities $ 2,263 $ 568 $ 95 $ 2,926 $ 165 $ 263 $ — $ 428 Noncontrolling interests $ 1,183 $ 1,084 $ 153 $ 2,420 $ 207 $ 211 $ — $ 418 Development costs are funded by the partners, including the Company, and/or construction loan financing throughout the construction period. Under terms defined in the joint venture agreements, after construction completion and stabilization of the respective development project, the Company has the ability to call, and the joint venture partner has the ability to put to the Company, subject to certain conditions, the joint venture partner’s interest in the respective joint venture at fair value. The Company has not provided financial support to these VIEs in excess of any amounts that it is contractually required to provide. There was no income from the joint venture projects during the nine months ended September 30, 2019 and 2018 and, as such, no income was attributed to the noncontrolling interests. |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | DISPOSITIONS The Company closed on the following dispositions during the nine months ended September 30, 2019 : Date Property Name Property Type Square Footage Consideration Aggregate Proceeds, Net (a) Gain March 8, 2019 Edwards Multiplex – Fresno (b) Single-user retail 94,600 $ 25,850 $ 21,605 $ 8,449 June 28, 2019 North Rivers Towne Center Multi-tenant retail 141,500 18,900 17,989 6,881 236,100 $ 44,750 $ 39,594 $ 15,330 (a) Aggregate proceeds are net of transaction costs. (b) Prior to the disposition, the Company was subject to a ground lease whereby it leased the underlying land from a third party. The ground lease was assumed by the purchaser in connection with the disposition. During the nine months ended September 30, 2019, the Company also received net proceeds of $5,062 and recognized a gain of $3,542 in connection with the sale of the second and third phases of a land parcel, which included rights to develop 22 residential units, at One Loudoun Downtown. The aggregate proceeds from the property dispositions and other transactions during the nine months ended September 30, 2019 totaled $44,656 , with aggregate gains of $18,872 . The Company closed on the following dispositions during the nine months ended September 30, 2018: Date Property Name Property Type Square Footage Consideration Aggregate Proceeds, Net (a) Gain January 19, 2018 Crown Theater Single-user retail 74,200 $ 6,900 $ 6,350 $ 2,952 February 15, 2018 Cranberry Square Multi-tenant retail 195,200 23,500 23,163 10,174 March 7, 2018 Rite Aid Store (Eckerd)–Crossville, TN Single-user retail 13,800 1,800 1,768 157 March 20, 2018 Home Depot Plaza (b) Multi-tenant retail 135,600 16,250 15,873 — March 21, 2018 Governor's Marketplace (c) Multi-tenant retail 243,100 23,500 22,400 8,836 March 28, 2018 Stony Creek I & Stony Creek II (d) Multi-tenant retail 204,800 32,800 32,078 11,628 April 19, 2018 CVS Pharmacy – Lawton, OK Single-user retail 10,900 1,600 1,596 — May 31, 2018 Schaumburg Towers Office 895,400 86,600 73,315 — 1,773,000 $ 192,950 $ 176,543 $ 33,747 (a) Aggregate proceeds are net of transaction costs, as well as capital and tenant-related costs credited to the buyer at close, as applicable, and exclude $169 of condemnation proceeds, which did not result in any additional gain recognition. (b) The Company repaid a $10,750 mortgage payable in conjunction with the disposition of the property. (c) The Company recorded an additional gain on sale of $1,407 during the three months ended September 30, 2018 upon satisfaction of performance obligations associated with escrow agreements executed upon disposition of the property. (d) The terms of the disposition of Stony Creek I and Stony Creek II were negotiated as a single transaction. During the nine months ended September 30, 2018, the Company also received net proceeds of $11,820 and recognized a gain of $2,179 in connection with the sale of air rights at Circle East. In addition, the Company received net proceeds of $1,789 and recognized a gain of $1,285 in connection with the first phase of the sale of a land parcel, which included rights to develop eight residential units, at One Loudoun Downtown. The aggregate proceeds from the property dispositions and other transactions during the nine months ended September 30, 2018 totaled $190,321 , with aggregate gains of $37,211 . None of the dispositions completed during the nine months ended September 30, 2019 and 2018 qualified for discontinued operations treatment and none are considered individually significant. As of September 30, 2019 and December 31, 2018, no properties qualified for held for sale accounting treatment. |
Equity Compensation Plans
Equity Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plans | EQUITY COMPENSATION PLANS The Company’s Amended and Restated 2014 Long-Term Equity Compensation Plan, subject to certain conditions, authorizes the issuance of incentive and non-qualified stock options, restricted stock and restricted stock units, stock appreciation rights and other similar awards to the Company’s employees, non-employee directors, consultants and advisors in connection with compensation and incentive arrangements that may be established by the Company’s board of directors or executive management. The following table summarizes the Company’s unvested restricted shares as of and for the nine months ended September 30, 2019 : Unvested Weighted Average Balance as of January 1, 2019 440 $ 13.40 Shares granted (a) 469 $ 12.22 Shares vested (233 ) $ 13.31 Shares forfeited (16 ) $ 12.77 Balance as of September 30, 2019 (b) 660 $ 12.61 (a) Shares granted vest over periods ranging from 0.9 years to three years in accordance with the terms of applicable award agreements. (b) As of September 30, 2019 , total unrecognized compensation expense related to unvested restricted shares was $3,125 , which is expected to be amortized over a weighted average term of 1.2 years . The following table summarizes the Company’s unvested performance restricted stock units (RSUs) as of and for the nine months ended September 30, 2019 : Unvested RSUs Weighted Average Grant Date Fair Value per RSU RSUs eligible for future conversion as of January 1, 2019 649 $ 14.54 RSUs granted (a) 382 $ 10.98 Conversion of RSUs to common stock and restricted shares (b) (192 ) $ 13.74 RSUs eligible for future conversion as of September 30, 2019 (c) 839 $ 13.10 (a) Assumptions and inputs as of the grant date included a risk-free interest rate of 2.47% , the Company’s historical common stock performance relative to the peer companies within the National Association of Real Estate Investment Trusts (NAREIT) Shopping Center Index and the Company’s common stock dividend yield of 6.07% . Subject to continued employment, in 2022, following the performance period which concludes on December 31, 2021, one-third of the RSUs that are earned will convert into shares of common stock and two-thirds will convert into restricted shares with a one year vesting term. (b) On February 4, 2019, 192 RSUs converted into 82 shares of common stock and 125 restricted shares that will vest on December 31, 2019, subject to continued employment through such date, after applying a conversion rate of 107.5% based upon the Company’s Total Shareholder Return (TSR) relative to the TSRs of its peer companies, for the performance period that concluded on December 31, 2018. An additional 29 shares of common stock were also issued representing the dividends that would have been paid on the earned awards during the performance period. (c) As of September 30, 2019 , total unrecognized compensation expense related to unvested RSUs was $5,670 , which is expected to be amortized over a weighted average term of 2.1 years . During the three months ended September 30, 2019 and 2018 , the Company recorded compensation expense of $1,849 and $1,599 , respectively, related to the amortization of unvested restricted shares and RSUs. During the nine months ended September 30, 2019 and 2018 , the Company recorded compensation expense of $5,672 and $5,328 , respectively, related to the amortization of unvested restricted shares and RSUs. Included within the amortization of stock-based compensation expense recorded during the nine months ended September 30, 2018 is compensation expense of $330 related to the accelerated vesting of 23 restricted shares and remaining amortization related to the 29 RSUs that remained eligible for future conversion in conjunction with the departure of the Company’s former Executive Vice President, General Counsel and Secretary. The total fair value of restricted shares that vested during the nine months ended September 30, 2019 was $2,778 . In addition, the total fair value of RSUs that converted into common stock during the nine months ended September 30, 2019 was $1,052 . Prior to 2013, non-employee directors had been granted options to acquire shares under the Company’s Third Amended and Restated Independent Director Stock Option and Incentive Plan. As of September 30, 2019 , options to purchase 22 shares of common stock remained outstanding and exercisable. The Company did not grant any options in 2019 or 2018 and did not record any compensation expense related to stock options during the nine months ended September 30, 2019 and 2018 . |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES Leases as Lessor The majority of revenues from the Company’s properties consist of rents received under long-term operating leases, predominantly consisting of base rent. Also, certain leases provide for percentage rent based primarily on tenant sales volume. Also, most leases provide for reimbursement of the tenant’s pro rata share of certain operating expenses incurred by the landlord, including, among others, real estate taxes, insurance, utilities, common area maintenance and management fees, subject to the terms of the respective lease. Certain other tenants are subject to net leases where the tenant is responsible for paying base rent to the Company but is directly responsible for other costs associated with occupancy, such as real estate taxes. Expenses paid directly by the tenant rather than the landlord are not included in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. Expenses paid by the landlord, subject to reimbursement by the tenant, are included within “Operating expenses” or “Real estate taxes” and reimbursements are included within “Lease income” along with the associated base rent in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. The Company made an accounting policy election to not separate non-lease components (primarily reimbursement of common area maintenance costs) from the related lease components and has applied the guidance of ASC 842, Leases , to the combined component as (i) the fixed non-lease components have the same timing and pattern of transfer as the associated lease component, (ii) the lease component, if accounted for separately, would be classified as an operating lease and (iii) the Company considers the lease component to be the predominant component of the combined contract. In addition, the Company records lease termination fee income when (i) a termination letter agreement is signed, (ii) all of the conditions of such agreement have been fulfilled, (iii) the tenant is no longer occupying the property and (iv) collectibility is reasonably assured. Upon early lease termination, the Company provides for losses related to recognized tenant specific intangibles and other assets or adjusts the remaining useful life of the assets if determined to be appropriate. The Company recorded lease termination fee income of $331 and $1,751 for the three and nine months ended September 30, 2019 , respectively, and $196 and $1,423 for the three and nine months ended September 30, 2018 , respectively, which is included within “Lease income” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. In certain municipalities, the Company is required to remit sales taxes to governmental authorities based upon the rental income received from properties in those regions. These taxes are reimbursed by the tenant to the Company in accordance with the terms of the applicable tenant lease. The presentation of the remittance and reimbursement of these taxes is on a gross basis with sales tax expenses included within “Operating expenses” and sales tax reimbursements included within “Lease income” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. Such taxes remitted to governmental authorities, which are generally reimbursed by tenants, were $155 and $454 for the three and nine months ended September 30, 2019 , respectively, and $122 and $398 for the three and nine months ended September 30, 2018 , respectively. Lease income related to the Company’s operating leases is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Lease income related to fixed lease payments $ 90,335 $ 89,708 $ 270,520 $ 271,873 Lease income related to variable lease payments 28,824 29,148 87,838 88,268 Other (a) 558 281 2,511 3,002 Lease income $ 119,717 $ 119,137 $ 360,869 $ 363,143 (a) For the three and nine months ended September 30, 2019 , “Other” is comprised of revenue adjustments related to changes in collectibility and amortization of above and below market lease intangibles and lease inducements. For the three and nine months ended September 30, 2018 , “Other” is comprised of amortization of above and below market lease intangibles and lease inducements. As of September 30, 2019 , undiscounted lease payments to be received under operating leases, excluding additional percentage rent based on tenants’ sales volume and tenant reimbursements of certain operating expenses and assuming no exercise of renewal options or early termination rights, for the remainder of 2019 , the next five years and thereafter are as follows: Lease Payments 2019 $ 90,896 2020 350,666 2021 312,795 2022 264,906 2023 216,923 2024 162,135 Thereafter 504,545 Total $ 1,902,866 As of December 31, 2018, undiscounted lease payments to be received under operating leases, excluding additional percentage rent based on tenants’ sales volume and tenant reimbursements of certain operating expenses and assuming no exercise of renewal options or early termination rights, were as follows: Lease Payments 2019 $ 351,145 2020 314,081 2021 274,135 2022 227,417 2023 180,199 Thereafter 569,758 Total $ 1,916,735 The remaining lease terms range from less than one year to approximately 64 years as of September 30, 2019 and December 31, 2018. Many of the leases at the Company’s properties contain provisions that condition a tenant’s obligation to remain open, the amount of rent payable by the tenant or potentially the tenant’s obligation to remain in the lease, upon certain factors, including: (i) the presence and continued operation of a certain anchor tenant or tenants, (ii) minimum occupancy levels at the applicable property or (iii) tenant sales amounts. If such a provision is triggered by a failure of any of these or other applicable conditions, a tenant could have the right to cease operations at the applicable property, have its rent reduced or terminate its lease early. The Company does not expect that such provisions will have a material impact on its future operating results. The Company capitalized internal salaries and related benefits of personnel directly involved in capital upgrades and tenant improvements of $679 and $2,004 during the three and nine months ended September 30, 2019 , respectively, and $514 and $1,271 during the three and nine months ended September 30, 2018 , respectively. The Company also capitalized internal leasing incentives of $111 and $247 during the three and nine months ended September 30, 2019 , respectively, and $71 and $241 during the three and nine months ended September 30, 2018 , respectively, all of which were incremental to signed leases. Leases as Lessee The Company leases land under non-cancellable operating leases at certain of its properties expiring in various years from 2035 to 2073 , exclusive of any available option periods. In addition, the Company leases office space for certain management offices and its corporate offices expiring in various years from 2019 to 2023 , exclusive of any available option periods. Upon adoption of the new lease accounting standard (ASU 2016-02 and related amendments) on January 1, 2019, the Company recorded lease liabilities and ROU assets of $103,432 for long-term ground and office leases where it is the lessee, calculated by discounting future lease payments by the Company’s incremental borrowing rate as of January 1, 2019. The incremental borrowing rate was determined through consideration of (i) the Company’s entity-specific risk premium, (ii) observable market interest rates and (iii) lease term. The weighted average incremental borrowing rate used to discount the future payments was 5.91% and the Company’s operating leases had a weighted average remaining lease term of 44 years as of January 1, 2019. The Company did not include option terms in its future lease payments as they were not reasonably certain to be exercised. The Company’s existing straight-line ground rent liabilities of $31,030 and acquired ground lease intangible liability of $11,898 were reclassified as of January 1, 2019 to be presented net of the ROU assets. The following table summarizes total lease costs recognized during the period, including variable lease payments which were not significant, and non-cash rent expense. Lease costs recognized during the three and nine months ended September 30, 2019 are presented under the new lease accounting standard and lease costs recognized during the three and nine months ended September 30, 2018 are presented under the standard in effect prior to the Company’s adoption of ASU 2016-02. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Ground lease rent expense (a) $ 1,563 $ 1,893 $ 4,831 $ 5,745 Office rent expense (b) $ 278 $ 281 $ 849 $ 855 (a) Included within “Operating expenses” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. Includes non-cash ground rent expense of $333 and $1,023 for the three and nine months ended September 30, 2019 , respectively, and $580 and $1,825 for the three and nine months ended September 30, 2018 , respectively. (b) Office rent related to property management operations is included within “Operating expenses” and office rent related to corporate office operations is included within “General and administrative expenses” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. The Company has elected to not record a lease liability/ROU asset for leases with a term of less than 12 months. Office rent expense for the three and nine months ended September 30, 2019 includes $0 and $29 , respectively, of short-term lease costs. As of September 30, 2019 , undiscounted future rental obligations to be paid under the long-term ground and office leases, including fixed rental increases, for the remainder of 2019 , the next five years and thereafter are as follows: Lease Obligations 2019 $ 1,401 2020 6,076 2021 6,110 2022 6,140 2023 6,102 2024 5,698 Thereafter 247,795 Total $ 279,322 Adjustment for discounting (188,380 ) Lease liabilities as of September 30, 2019 $ 90,942 The Company’s operating leases for ground leases and office leases had a weighted average remaining lease term of 44 years and a weighted average discount rate of 5.93% as of September 30, 2019 . As of December 31, 2018 , future rental obligations to be paid under the ground and office leases, including fixed rental increases, were as follows: Lease Obligations 2019 $ 6,448 2020 6,656 2021 6,716 2022 6,761 2023 6,769 Thereafter 279,916 Total $ 313,266 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company has the following types of indebtedness: (i) mortgages payable, (ii) unsecured notes payable, (iii) unsecured term loans and (iv) an unsecured revolving line of credit. Mortgages Payable The following table summarizes the Company’s mortgages payable: September 30, 2019 December 31, 2018 Balance Weighted Average Interest Rate Weighted Average Years to Maturity Balance Weighted Average Interest Rate Weighted Average Years to Maturity Fixed rate mortgages payable (a) $ 95,533 4.37 % 5.4 $ 205,450 4.65 % 4.5 Premium, net of accumulated amortization — 775 Discount, net of accumulated amortization (504 ) (536 ) Capitalized loan fees, net of accumulated amortization (272 ) (369 ) Mortgages payable, net $ 94,757 $ 205,320 (a) The fixed rate mortgages had interest rates ranging from 3.75% to 7.48% as of September 30, 2019 and December 31, 2018 . During the nine months ended September 30, 2019 , the Company repaid mortgages payable in the total amount of $107,671 , which had a weighted average fixed rate of 4.91% , incurred $8,151 of debt prepayment fees and made scheduled principal payments of $2,246 related to amortizing loans. Unsecured Notes Payable The following table summarizes the Company’s unsecured notes payable: September 30, 2019 December 31, 2018 Unsecured Notes Payable Maturity Date Balance Interest Rate/ Weighted Average Interest Rate Balance Interest Rate/ Weighted Average Interest Rate Senior notes – 4.12% due 2021 June 30, 2021 $ 100,000 4.12 % $ 100,000 4.12 % Senior notes – 4.58% due 2024 June 30, 2024 150,000 4.58 % 150,000 4.58 % Senior notes – 4.00% due 2025 March 15, 2025 250,000 4.00 % 250,000 4.00 % Senior notes – 4.08% due 2026 September 30, 2026 100,000 4.08 % 100,000 4.08 % Senior notes – 4.24% due 2028 December 28, 2028 100,000 4.24 % 100,000 4.24 % Senior notes – 4.82% due 2029 June 28, 2029 100,000 4.82 % — — % 800,000 4.27 % 700,000 4.19 % Discount, net of accumulated amortization (645 ) (734 ) Capitalized loan fees, net of accumulated amortization (3,281 ) (2,904 ) Total $ 796,074 $ 696,362 Notes Due 2029 On June 28, 2019, the Company issued $100,000 of 10-year 4.82% senior unsecured notes due 2029 (Notes Due 2029) in a private placement transaction pursuant to a note purchase agreement it entered into with certain institutional investors on April 5, 2019. The proceeds were used to repay borrowings on the Company’s unsecured revolving line of credit. The note purchase agreement governing the Notes Due 2029 contains customary representations, warranties and covenants, and events of default. Pursuant to the terms of such note purchase agreement, the Company is subject to various financial covenants, which include the following: (i) maximum unencumbered, secured and consolidated leverage ratios; (ii) a minimum interest coverage ratio; (iii) a minimum unencumbered interest coverage ratio (as set forth in the Company’s unsecured credit facility and the note purchase agreements governing the Notes Due 2021 and 2024 and the Notes Due 2026 and 2028 defined below); and (iv) a minimum fixed charge coverage ratio (as set forth in the Company’s unsecured credit facility). Unsecured Term Loans and Revolving Line of Credit The following table summarizes the Company’s term loans and revolving line of credit: September 30, 2019 December 31, 2018 Maturity Date Balance Interest Rate Balance Interest Unsecured credit facility term loan due 2021 – fixed rate (a) January 5, 2021 $ 250,000 3.20 % $ 250,000 3.20 % Unsecured term loan due 2023 – fixed rate (b) November 22, 2023 200,000 4.05 % 200,000 4.05 % Unsecured term loan due 2024 – fixed rate (c) July 17, 2024 120,000 2.88 % — — % Unsecured term loan due 2026 – fixed rate (d) July 17, 2026 150,000 3.27 % — — % Subtotal 720,000 450,000 Capitalized loan fees, net of accumulated amortization (3,746 ) (2,633 ) Term loans, net $ 716,254 $ 447,367 Unsecured credit facility revolving line of credit – variable rate (e) April 22, 2022 $ 24,000 3.09 % $ 273,000 3.57 % (a) $250,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 2.00% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through January 5, 2021. The applicable credit spread was 1.20% as of September 30, 2019 and December 31, 2018 . (b) $200,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 2.85% plus a credit spread based on a leverage grid ranging from 1.20% to 1.85% through November 22, 2023. The applicable credit spread was 1.20% as of September 30, 2019 and December 31, 2018 . (c) $120,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 1.68% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2024. The applicable credit spread was 1.20% as of September 30, 2019 . (d) $150,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 1.77% plus a credit spread based on a leverage grid ranging from 1.50% to 2.20% through July 17, 2026. The applicable credit spread was 1.50% as of September 30, 2019 . (e) Excludes capitalized loan fees, which are included within “Other assets, net” in the accompanying condensed consolidated balance sheets. Unsecured Credit Facility On April 23, 2018, the Company entered into its fifth amended and restated unsecured credit agreement (Unsecured Credit Agreement) with a syndicate of financial institutions led by Wells Fargo Bank, National Association serving as syndication agent and KeyBank National Association serving as administrative agent to provide for an unsecured credit facility aggregating $1,100,000 (Unsecured Credit Facility). The Unsecured Credit Facility consists of an $850,000 unsecured revolving line of credit and a $250,000 unsecured term loan and is priced on a leverage grid at a rate of LIBOR plus a credit spread. In accordance with the Unsecured Credit Agreement, the Company may elect to convert to an investment grade pricing grid. As of September 30, 2019 , making such an election would have resulted in a higher interest rate and, as such, the Company has not made the election to convert to an investment grade pricing grid. The following table summarizes the key terms of the Unsecured Credit Facility: Leverage-Based Pricing Investment Grade Pricing Unsecured Credit Facility Maturity Date Extension Option Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee $250,000 unsecured term loan due 2021 1/5/2021 N/A N/A 1.20% - 1.70% N/A 0.90% - 1.75% N/A $850,000 unsecured revolving line of credit 4/22/2022 2-six month 0.075% 1.05% - 1.50% 0.15% - 0.30% 0.825%-1.55% 0.125% - 0.30% The Unsecured Credit Facility has a $500,000 accordion option that allows the Company, at its election, to increase the total Unsecured Credit Facility up to $1,600,000 , subject to (i) customary fees and conditions including, but not limited to, the absence of an event of default as defined in the Unsecured Credit Agreement and (ii) the Company’s ability to obtain additional lender commitments. Unsecured Term Loans On January 3, 2017, the Company received funding on a seven-year $200,000 unsecured term loan (Term Loan Due 2023) with a group of financial institutions, which closed during the year ended December 31, 2016 and was amended on November 20, 2018. The Term Loan Due 2023 is priced on a leverage grid at a rate of LIBOR plus a credit spread. In accordance with the amended term loan agreement (Amended Term Loan Agreement), the Company may elect to convert to an investment grade pricing grid. As of September 30, 2019 , making such an election would have resulted in a higher interest rate and, as such, the Company has not made the election to convert to an investment grade pricing grid. On July 17, 2019, the Company entered into a term loan agreement (2019 Term Loan Agreement) with a group of financial institutions for a five-year $120,000 unsecured term loan (Term Loan Due 2024) and a seven-year $150,000 unsecured term loan (Term Loan Due 2026). The Term Loan Due 2024 and Term Loan Due 2026 bear interest at a rate of LIBOR , adjusted based on applicable reserve percentages established by the Federal Reserve, plus a credit spread based on a leverage grid. In accordance with the 2019 Term Loan Agreement, the Company may elect to convert to an investment grade pricing grid. As of September 30, 2019 , making such an election would have resulted in a higher interest rate and, as such, the Company has not made the election to convert to an investment grade pricing grid. The proceeds were used to repay outstanding indebtedness and for general corporate purposes. The following table summarizes the key terms of the unsecured term loans: Unsecured Term Loans Maturity Date Leverage-Based Pricing Credit Spread Investment Grade Pricing Credit Spread $200,000 unsecured term loan due 2023 11/22/2023 1.20 % – 1.85% 0.85 % – 1.65% $120,000 unsecured term loan due 2024 7/17/2024 1.20 % – 1.70% 0.80 % – 1.65% $150,000 unsecured term loan due 2026 7/17/2026 1.50 % – 2.20% 1.35 % – 2.25% The Term Loan Due 2023 has a $100,000 accordion option that allows the Company, at its election, to increase the Term Loan Due 2023 up to $300,000 , subject to (i) customary fees and conditions, including the absence of an event of default as defined in the Amended Term Loan Agreement and (ii) the Company’s ability to obtain additional lender commitments. The Term Loan Due 2024 has a $130,000 accordion option and the Term Loan Due 2026 has a $100,000 accordion option that, collectively, allow the Company, at its election, to increase the total of the Term Loan Due 2024 and Term Loan Due 2026 up to $500,000 , subject to (i) customary fees and conditions, including the absence of an event of default as defined in the 2019 Term Loan Agreement and (ii) the Company’s ability to obtain additional lender commitments. Debt Maturities The following table shows the scheduled maturities and principal amortization of the Company’s indebtedness as of September 30, 2019 for the remainder of 2019 , each of the next four years and thereafter and the weighted average interest rates by year. The table does not reflect the impact of any debt activity that occurred after September 30, 2019 . 2019 2020 2021 2022 2023 Thereafter Total Debt: Fixed rate debt: Mortgages payable (a) $ 613 $ 2,510 $ 2,626 $ 26,678 $ 31,758 $ 31,348 $ 95,533 Fixed rate term loans (b) — — 250,000 — 200,000 270,000 720,000 Unsecured notes payable (c) — — 100,000 — — 700,000 800,000 Total fixed rate debt 613 2,510 352,626 26,678 231,758 1,001,348 1,615,533 Variable rate debt: Variable rate revolving line of credit — — — 24,000 — — 24,000 Total debt (d) $ 613 $ 2,510 $ 352,626 $ 50,678 $ 231,758 $ 1,001,348 $ 1,639,533 Weighted average interest rate on debt: Fixed rate debt 4.34 % 4.35 % 3.47 % 4.81 % 4.06 % 3.97 % 3.89 % Variable rate debt (e) — — — 3.09 % — — 3.09 % Total 4.34 % 4.35 % 3.47 % 4.00 % 4.06 % 3.97 % 3.88 % (a) Excludes mortgage discount of $(504) and capitalized loan fees of $(272) , net of accumulated amortization, as of September 30, 2019 . (b) Excludes capitalized loan fees of $(3,746) , net of accumulated amortization, as of September 30, 2019 . The following variable rate term loans have been swapped to fixed rate debt: (i) $250,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 2.00% plus a credit spread based on a leverage grid through January 5, 2021; (ii) $200,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 2.85% plus a credit spread based on a leverage grid through November 22, 2023; (iii) $120,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 1.68% plus a credit spread based on a leverage grid through July 17, 2024; and (iv) $150,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 1.77% plus a credit spread based on a leverage grid through July 17, 2026. As of September 30, 2019 , the applicable credit spread for (i), (ii) and (iii) was 1.20% and for (iv) was 1.50% . (c) Excludes discount of $(645) and capitalized loan fees of $(3,281) , net of accumulated amortization, as of September 30, 2019 . (d) The weighted average years to maturity of consolidated indebtedness was 5.0 years as of September 30, 2019 . (e) Represents interest rate as of September 30, 2019 . The Company’s unsecured debt agreements, consisting of the (i) Unsecured Credit Agreement, (ii) Amended Term Loan Agreement, (iii) 2019 Term Loan Agreement, (iv) note purchase agreement governing the 4.12% senior unsecured notes due 2021 and the 4.58% senior unsecured notes due 2024 (Notes Due 2021 and 2024), (v) indenture, as supplemented, governing the 4.00% senior unsecured notes due 2025 (Notes Due 2025), (vi) note purchase agreement governing the 4.08% senior unsecured notes due 2026 and the 4.24% senior unsecured notes due 2028 (Notes Due 2026 and 2028), and (vii) note purchase agreement governing the Notes Due 2029, contain customary representations, warranties and covenants, and events of default. These include financial covenants such as (i) maximum unencumbered, secured and consolidated leverage ratios; (ii) minimum interest coverage ratios; (iii) minimum fixed charge coverage ratios; (iv) minimum unencumbered interest coverage ratios; (v) minimum debt service coverage ratio; (vi) minimum unencumbered assets to unsecured debt ratio; and (vii) minimum consolidated net worth. As of September 30, 2019 , management believes the Company was in compliance with the financial covenants and default provisions under the unsecured debt agreements. The Company plans on addressing its debt maturities through a combination of cash flows generated from operations, working capital, capital markets transactions and its unsecured revolving line of credit. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES 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. As of September 30, 2019 , the Company used 11 interest rate swaps to hedge the variable cash flows associated with variable rate debt. Changes in fair value of the derivatives that are designated and that qualify as cash flow hedges are recorded in “Accumulated other comprehensive (loss) income” and are reclassified into 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 $3,555 will be reclassified as an increase to interest expense. The following table summarizes the Company’s interest rate swaps as of September 30, 2019 , which effectively convert one-month floating rate LIBOR to a fixed rate: Number of Instruments Effective Date Aggregate Notional Fixed Interest Rate Maturity Date Three December 29, 2017 $ 250,000 2.00 % January 5, 2021 Two November 23, 2018 $ 200,000 2.85 % November 22, 2023 Three August 15, 2019 $ 120,000 1.68 % July 17, 2024 Three August 15, 2019 $ 150,000 1.77 % July 17, 2026 The following table summarizes the Company’s interest rate swaps that were designated as cash flow hedges of interest rate risk: Number of Instruments Notional Interest Rate Derivatives September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Interest rate swaps 11 5 $ 720,000 $ 450,000 The table below presents the estimated fair value of the Company’s derivative financial instruments as well as their classification in the accompanying condensed consolidated balance sheets. The valuation techniques used are described in Note 12 to the condensed consolidated financial statements. Derivatives September 30, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as cash flow hedges: Interest rate swaps Other assets, net $ — Other assets, net $ 2,324 Interest rate swaps Other liabilities $ 18,495 Other liabilities $ 3,846 The following table presents the effect of the Company’s derivative financial instruments on the accompanying condensed consolidated statements of operations and other comprehensive (loss) income for the three and nine months ended September 30, 2019 and 2018 : Derivatives in Cash Flow Hedging Relationships Amount of Loss (Gain) Recognized in Other Comprehensive Income on Derivative Location of Loss (Gain) Reclassified from Accumulated Other Comprehensive Income (AOCI) into Income Amount of Loss (Gain) Reclassified from AOCI into Income Total Interest Expense Presented in the Statements of Operations in which the Effects of Cash Flow Hedges are Recorded Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended 2019 $ 7,159 $ 16,760 Interest expense $ 7 $ (213 ) $ 25,084 $ 59,877 2018 $ (1,336 ) $ (5,141 ) Interest expense $ (473 ) $ (665 ) $ 21,336 $ 56,918 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity | EQUITY The Company has an existing common stock repurchase program under which it may repurchase, from time to time, up to a maximum of $500,000 of shares of its Class A common stock. The shares may be repurchased in the open market or in privately negotiated transactions and are canceled upon repurchase. The timing and actual number of shares repurchased will depend on a variety of factors, including price in absolute terms and in relation to the value of the Company’s assets, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The common stock repurchase program may be suspended or terminated at any time without prior notice. The Company did not repurchase any shares during the nine months ended September 30, 2019 . During the three and nine months ended September 30, 2018, the Company repurchased 2,567 shares at an average price per share of $12.13 for a total of $31,194 . As of September 30, 2019 , $189,105 remained available for repurchases of shares of the Company’s common stock under its common stock repurchase program. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EARNINGS PER SHARE The following table summarizes the components used in the calculation of basic and diluted earnings per share (EPS): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net (loss) income attributable to common shareholders $ (28,153 ) $ 12,834 $ 16,225 $ 65,496 Earnings allocated to unvested restricted shares (105 ) (81 ) (295 ) (253 ) Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (28,258 ) $ 12,753 $ 15,930 $ 65,243 Denominator: Denominator for (loss) earnings per common share – basic: Weighted average number of common shares outstanding 212,995 (a) 218,808 (b) 212,932 (a) 218,879 (b) Effect of dilutive securities: Stock options — (c) — (c) — (c) — (c) RSUs — (d) 213 (e) 124 (d) 398 (e) Denominator for (loss) earnings per common share – diluted: Weighted average number of common and common equivalent shares outstanding 212,995 219,021 213,056 219,277 (a) Excludes 660 shares of unvested restricted common stock as of September 30, 2019 , which equate to 661 and 641 shares, respectively, on a weighted average basis for the three and nine months ended September 30, 2019 . These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. (b) Excludes 521 shares of unvested restricted common stock as of September 30, 2018 , which equate to 521 and 541 shares, respectively, on a weighted average basis for the three and nine months ended September 30, 2018 . These shares were excluded from the computation of basic EPS as the contingencies remained and the shares had not been released as of the end of the reporting period. (c) There were outstanding options to purchase 22 and 28 shares of common stock as of September 30, 2019 and 2018 , respectively, at a weighted average exercise price of $17.34 and $18.98 , respectively. Of these totals, outstanding options to purchase 18 and 24 shares of common stock as of September 30, 2019 and 2018 , respectively, at a weighted average exercise price of $18.58 and $20.19 , respectively, have been excluded from the common shares used in calculating diluted EPS as including them would be anti-dilutive. (d) As of September 30, 2019 , there were 839 RSUs eligible for future conversion upon completion of the performance periods (see Note 5 to the condensed consolidated financial statements), which equate to 839 and 836 RSUs, respectively, on a weighted average basis for the three and nine months ended September 30, 2019 . For the three months ended September 30, 2019, these contingently issuable shares have been excluded from the common shares used in calculating diluted EPS as including them would be anti-dilutive. For the nine months ended September 30, 2019, these contingently issuable shares are a component of calculating diluted EPS. (e) As of September 30, 2018 , there were 649 RSUs eligible for future conversion upon completion of the performance periods, which equate to 649 and 661 RSUs, respectively, on a weighted average basis for the three and nine months ended September 30, 2018 . These contingently issuable shares are a component of calculating diluted EPS. |
Provision for Impairment of Inv
Provision for Impairment of Investment Properties | 9 Months Ended |
Sep. 30, 2019 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |
Provision for Impairment of Investment Properties | PROVISION FOR IMPAIRMENT OF INVESTMENT PROPERTIES As of September 30, 2019 and 2018 , the Company identified indicators of impairment at certain of its properties. 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 following table summarizes the results of these analyses as of September 30, 2019 and 2018 : September 30, 2019 September 30, 2018 Number of properties for which indicators of impairment were identified 2 2 (a) Less: number of properties for which an impairment charge was recorded 1 — Less: number of properties that were held for sale as of the date the analysis was performed for which indicators of impairment were identified but no impairment charge was recorded — — Remaining properties for which indicators of impairment were identified but no impairment charge was considered necessary 1 2 Weighted average percentage by which the projected undiscounted cash flows exceeded its respective carrying value for each of the remaining properties (b) 20 % 33 % (a) Includes one property which has subsequently been sold as of September 30, 2019 . (b) Based upon the estimated holding period for each asset where an undiscounted cash flow analysis was performed. The Company recorded the following investment property impairment charge during the nine months ended September 30, 2019 .: Property Name Property Type Impairment Date Square Footage Provision for Impairment of Investment Properties Streets of Yorktown (a) Multi-tenant retail September 30, 2019 85,200 $ 11,177 $ 11,177 Estimated fair value of impaired property as of impairment date $ 5,300 (a) The Company recorded an impairment charge as a result of a combination of factors, including expected impact on future operating results stemming from anticipated changes in lease terms related to the tenant population and a re-evaluation of the strategic alternatives for the property. The Company recorded the following investment property impairment charges during the nine months ended September 30, 2018 : Property Name Property Type Impairment Date Square Footage Provision for Impairment of Investment Properties Schaumburg Towers (a) Office Various 895,400 $ 1,116 CVS Pharmacy – Lawton, OK (b) Single-user retail March 31, 2018 10,900 200 $ 1,316 Estimated fair value of impaired properties as of impairment date $ 76,871 (a) The Company recorded an impairment charge on March 31, 2018 based upon the terms and conditions of an executed sales contract. This property was classified as held for sale as of March 31, 2018 and was sold on May 31, 2018, at which time additional impairment was recognized pursuant to the terms and conditions of an executed sales contract. (b) The Company recorded an impairment charge based upon the terms and conditions of an executed sales contract. The property was sold on April 19, 2018. The Company provides no assurance that material impairment charges with respect to its investment properties will not occur in future periods. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Financial assets: Derivative asset $ — $ — $ 2,324 $ 2,324 Financial liabilities: Mortgages payable, net $ 94,757 $ 98,917 $ 205,320 $ 208,173 Unsecured notes payable, net $ 796,074 $ 823,016 $ 696,362 $ 671,492 Unsecured term loans, net $ 716,254 $ 720,000 $ 447,367 $ 449,266 Unsecured revolving line of credit $ 24,000 $ 24,000 $ 273,000 $ 272,553 Derivative liability $ 18,495 $ 18,495 $ 3,846 $ 3,846 The carrying value of the derivative asset is included within “Other assets, net” and the carrying value of the derivative liability is included within “Other liabilities” in the accompanying 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. Fair Value Level 1 Level 2 Level 3 Total September 30, 2019 Derivative liability $ — $ 18,495 $ — $ 18,495 December 31, 2018 Derivative asset $ — $ 2,324 $ — $ 2,324 Derivative liability $ — $ 3,846 $ — $ 3,846 Derivatives: The fair value of the derivative asset and derivative liability is determined using a discounted cash flow analysis on the expected future cash flows of each derivative. This analysis uses 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 use Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2019 and December 31, 2018 , 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 to the condensed consolidated financial statements. Nonrecurring Fair Value Measurements The following table presents the Company’s assets measured at fair value on a nonrecurring basis as of September 30, 2019 , aggregated by the level within the fair value hierarchy in which those measurements fall. The table includes information related to a property remeasured to fair value as a result of an impairment charge recorded during the nine months ended September 30, 2019 . Methods and assumptions used to estimate the fair value of this asset are described after the table. The Company did not remeasure any assets to fair value on a nonrecurring basis as of December 31, 2018 . Fair Value Level 1 Level 2 Level 3 Total Provision for Impairment September 30, 2019 Investment property $ — $ — $ 5,300 (a) $ 5,300 $ 11,177 (a) Represents the fair value of the Company’s Streets of Yorktown investment property. The estimated fair value of Streets of Yorktown was determined using the income approach. The income approach involves discounting the estimated income stream and reversion (presumed sale) value of a property over an estimated holding period to a present value at a risk-adjusted rate. The discount rates and third-party comparable sales prices used in this approach are derived from property-specific information, market transactions and other industry data and are considered significant inputs to this valuation. The reversion value of the property was based upon third-party comparable sales prices, which contain unobservable inputs used by these third parties. A weighted average discount rate of 6.89% was used to (i) present value the estimated income stream over the estimated holding period and (ii) present value the reversion value. 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 those measurements fall. Fair Value Level 1 Level 2 Level 3 Total September 30, 2019 Mortgages payable, net $ — $ — $ 98,917 $ 98,917 Unsecured notes payable, net $ 251,288 $ — $ 571,728 $ 823,016 Unsecured term loans, net $ — $ — $ 720,000 $ 720,000 Unsecured revolving line of credit $ — $ — $ 24,000 $ 24,000 December 31, 2018 Mortgages payable, net $ — $ — $ 208,173 $ 208,173 Unsecured notes payable, net $ 235,788 $ — $ 435,704 $ 671,492 Unsecured term loans, net $ — $ — $ 449,266 $ 449,266 Unsecured revolving line of credit $ — $ — $ 272,553 $ 272,553 The Company estimates the fair value of its Level 3 financial liabilities using a discounted cash flow model that incorporates future contractual principal and interest payments. The Company estimates the fair value of its mortgages payable, net and Level 3 unsecured notes payable, net by discounting the anticipated future cash flows of each instrument at rates currently offered to the Company by its lenders for similar debt instruments of comparable maturities. The Company estimates the fair value of its unsecured term loans, net and unsecured revolving line of credit by discounting the anticipated future cash flows at a reference rate, currently one-month LIBOR, plus an applicable credit spread currently offered to the Company by its lenders for similar instruments of comparable maturities. The following rates were used in the discounted cash flow model to calculate the fair value of the Company’s Level 3 financial liabilities: September 30, 2019 December 31, 2018 Mortgages payable, net – range of discount rates used 3.4% to 3.7% 4.2% to 4.4% Unsecured notes payable, net – weighted average discount rate used 3.84% 4.91% Unsecured term loans, net – weighted average credit spread portion of discount rate used 1.26% 1.25% Unsecured revolving line of credit – credit spread portion of discount rate used 1.05% 1.10% There were no transfers between the levels of the fair value hierarchy during the nine months ended September 30, 2019 and the year ended December 31, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES As of September 30, 2019 , the Company had letters of credit outstanding totaling $433 that serve as collateral for certain capital improvements at two of its properties and reduce the available borrowings on its unsecured revolving line of credit. As of September 30, 2019 , the Company had active redevelopment and expansion projects at Circle East, One Loudoun Downtown and Carillon. The Company estimates that it will incur net costs of approximately $36,000 to $38,000 related to the redevelopment at Circle East, approximately $125,000 to $135,000 related to the expansion project at One Loudoun Downtown – Pads G & H and approximately $194,000 to $215,000 related to the redevelopment at Carillon – phase one. As of September 30, 2019 , the Company has incurred (i) $19,466 , net of proceeds of $11,820 from the sale of air rights, related to the redevelopment at Circle East, (ii) $6,527 , net of contributions from the Company’s joint venture partner, related to the expansion project at One Loudoun Downtown – Pads G & H and (iii) $4,848 , net of contributions from the Company’s joint venture partners, related to the redevelopment at Carillon – phase one. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2019 | |
Litigation Disclosure [Abstract] | |
Legal Matters and Contingencies | LITIGATION 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 Company’s condensed consolidated financial statements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to September 30, 2019 , the Company: • declared the cash dividend for the fourth quarter of 2019 of $0.165625 per share on its outstanding Class A common stock, which will be paid on January 10, 2020 to Class A common shareholders of record at the close of business on December 26, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments – Credit Losses . This new guidance is effective January 1, 2020, with early adoption permitted beginning January 1, 2019, and replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. Financial assets that are measured at amortized cost will be required to be presented at the net amount expected to be collected with an allowance for credit losses deducted from the amortized cost basis. In addition, an entity must consider broader information in developing its expected credit loss estimate, including the use of forecasted information. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , which clarifies that receivables arising from operating leases are not within the scope of this new guidance. Generally, the pronouncement requires a modified retrospective method of adoption. The Company does not expect the adoption of this pronouncement will have a material effect on its condensed consolidated financial statements; however, it will continue to evaluate this assessment until the guidance becomes effective. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement . This new guidance is effective January 1, 2020, with early adoption permitted, and provides new, and in some cases eliminates or modifies the existing disclosure requirements on fair value measurements. Public entities will now be required to disclose the following: (i) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. In addition, public entities will no longer be required to disclose the following: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (ii) the policy for timing of transfers between levels and (iii) the valuation processes for Level 3 fair value measurements. The new pronouncement also clarifies and modifies certain existing provisions to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and clarifies that materiality is an appropriate consideration when evaluating disclosure requirements. As permitted by the new pronouncement, the Company removed the discussion of its valuation processes for Level 3 fair value measurements. No other disclosures were removed as the Company did not have any transfers between levels of the fair value hierarchy during the current and comparative periods. The Company expects to adopt the new disclosures on a prospective basis as of January 1, 2020. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of property ownership | The Company’s property ownership as of September 30, 2019 is summarized below: Property Count Retail operating properties 104 Development/redevelopment projects: Circle East 1 One Loudoun Downtown – Pads G & H (a) — Carillon 1 Total number of properties 106 (a) The operating portion of this property is included within the property count for retail operating properties. |
Acquisitions and Developments_2
Acquisitions and Developments in Progress (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of acquisitions | The Company closed on the following acquisitions during the nine months ended September 30, 2019 : Date Property Name Metropolitan Property Type Square Footage Acquisition Price March 7, 2019 North Benson Center Seattle Multi-tenant retail 70,500 $ 25,340 June 10, 2019 Paradise Valley Marketplace – Parcel Phoenix Land (a) — 1,343 August 13, 2019 Southlake Town Square – Parcel Dallas Single-user parcel (b) 3,100 3,293 73,600 $ 29,976 (c) (a) The Company acquired a parcel adjacent to its Paradise Valley Marketplace multi-tenant retail operating property. The total number of properties in the Company’s portfolio was not affected by this transaction. (b) The Company acquired a single-user parcel at its Southlake Town Square multi-tenant retail operating property. The total number of properties in the Company’s portfolio was not affected by this transaction. (c) Acquisition price does not include capitalized closing costs and adjustments totaling $316 . |
Schedule of acquisition date fair values | The following table summarizes the acquisition date values, before prorations, the Company recorded in conjunction with the acquisitions discussed above: Nine Months Ended September 30, 2019 Land $ 14,819 Building and other improvements, net 13,667 Acquired lease intangible assets (a) 2,040 Acquired lease intangible liabilities (b) (234 ) Net assets acquired $ 30,292 (a) The weighted average amortization period for acquired lease intangible assets is six years . (b) The weighted average amortization period for acquired lease intangible liabilities is five years . |
Schedule of developments in progress | The Company’s developments in progress are as follows: Property Name MSA September 30, 2019 December 31, 2018 Active developments/redevelopments: Circle East (a) Baltimore $ 31,334 $ 22,383 Plaza del Lago (b) Chicago — 536 One Loudoun Downtown (c) Washington, D.C. 18,852 — Carillon (d) Washington, D.C. 24,443 — 74,629 22,919 Land held for future development: One Loudoun Uptown (e) Washington, D.C. 25,450 25,450 Total developments in progress $ 100,079 $ 48,369 (a) During the year ended December 31, 2018, the Company received net proceeds of $11,820 in connection with the sale of air rights to a third party to develop multi-family rental units at Circle East, which is shown net in the “Developments in progress” balance as of September 30, 2019 and December 31, 2018 in the accompanying condensed consolidated balance sheets. (b) During the three months ended September 30, 2019, the Company placed the Plaza del Lago multi-family rental redevelopment project in service and reclassified the related costs from “Developments in progress” into “Building and other improvements” in the accompanying condensed consolidated balance sheets. (c) During the three months ended June 30, 2019, the Company commenced the active development of Pads G & H at One Loudoun Downtown, at which time all predevelopment costs related to the development as well as the Company’s historical basis in the pads were reclassified from “Other assets, net” and “Investment properties,” respectively, to “Developments in progress” in the accompanying condensed consolidated balance sheets. (d) During the three months ended September 30, 2019, the Company commenced the active redevelopment at Carillon, at which time the Company (i) recorded $26,330 of accelerated depreciation related to the write-off of assets taken out of service due to the demolition of existing structures in connection with the redevelopment and (ii) reclassified all predevelopment costs related to the redevelopment as well as the Company’s historical basis in the phases to be developed from “Other assets, net” and “Investment properties,” respectively, to “Developments in progress” in the accompanying condensed consolidated balance sheets. (e) During the three months ended December 31, 2018, the Company acquired One Loudoun Uptown, a 58 -acre land parcel, of which 32 acres are developable. |
Schedule of variable interest entities | As of September 30, 2019 and December 31, 2018 , the Company had recorded the following related to the consolidated joint ventures: September 30, 2019 December 31, 2018 One Loudoun Downtown – Pads G & H Carillon – Phase One Multi-family Rental Carillon – Phase One Medical Office Total One Loudoun Downtown – Pads G & H Carillon – Phase One Multi-family Rental Carillon – Phase One Medical Office Total Net investment properties $ 5,175 $ 2,736 $ 401 $ 8,312 $ — $ — $ — $ — Other assets, net $ 287 $ — $ — $ 287 $ 579 $ 685 $ — $ 1,264 Other liabilities $ 2,263 $ 568 $ 95 $ 2,926 $ 165 $ 263 $ — $ 428 Noncontrolling interests $ 1,183 $ 1,084 $ 153 $ 2,420 $ 207 $ 211 $ — $ 418 |
Dispositions (Tables)
Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of property dispositions | The Company closed on the following dispositions during the nine months ended September 30, 2018: Date Property Name Property Type Square Footage Consideration Aggregate Proceeds, Net (a) Gain January 19, 2018 Crown Theater Single-user retail 74,200 $ 6,900 $ 6,350 $ 2,952 February 15, 2018 Cranberry Square Multi-tenant retail 195,200 23,500 23,163 10,174 March 7, 2018 Rite Aid Store (Eckerd)–Crossville, TN Single-user retail 13,800 1,800 1,768 157 March 20, 2018 Home Depot Plaza (b) Multi-tenant retail 135,600 16,250 15,873 — March 21, 2018 Governor's Marketplace (c) Multi-tenant retail 243,100 23,500 22,400 8,836 March 28, 2018 Stony Creek I & Stony Creek II (d) Multi-tenant retail 204,800 32,800 32,078 11,628 April 19, 2018 CVS Pharmacy – Lawton, OK Single-user retail 10,900 1,600 1,596 — May 31, 2018 Schaumburg Towers Office 895,400 86,600 73,315 — 1,773,000 $ 192,950 $ 176,543 $ 33,747 (a) Aggregate proceeds are net of transaction costs, as well as capital and tenant-related costs credited to the buyer at close, as applicable, and exclude $169 of condemnation proceeds, which did not result in any additional gain recognition. (b) The Company repaid a $10,750 mortgage payable in conjunction with the disposition of the property. (c) The Company recorded an additional gain on sale of $1,407 during the three months ended September 30, 2018 upon satisfaction of performance obligations associated with escrow agreements executed upon disposition of the property. (d) The terms of the disposition of Stony Creek I and Stony Creek II were negotiated as a single transaction. The Company closed on the following dispositions during the nine months ended September 30, 2019 : Date Property Name Property Type Square Footage Consideration Aggregate Proceeds, Net (a) Gain March 8, 2019 Edwards Multiplex – Fresno (b) Single-user retail 94,600 $ 25,850 $ 21,605 $ 8,449 June 28, 2019 North Rivers Towne Center Multi-tenant retail 141,500 18,900 17,989 6,881 236,100 $ 44,750 $ 39,594 $ 15,330 (a) Aggregate proceeds are net of transaction costs. (b) Prior to the disposition, the Company was subject to a ground lease whereby it leased the underlying land from a third party. The ground lease was assumed by the purchaser in connection with the disposition. |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of unvested restricted shares and restricted stock units | The following table summarizes the Company’s unvested restricted shares as of and for the nine months ended September 30, 2019 : Unvested Weighted Average Balance as of January 1, 2019 440 $ 13.40 Shares granted (a) 469 $ 12.22 Shares vested (233 ) $ 13.31 Shares forfeited (16 ) $ 12.77 Balance as of September 30, 2019 (b) 660 $ 12.61 (a) Shares granted vest over periods ranging from 0.9 years to three years in accordance with the terms of applicable award agreements. (b) As of September 30, 2019 , total unrecognized compensation expense related to unvested restricted shares was $3,125 , which is expected to be amortized over a weighted average term of 1.2 years . The following table summarizes the Company’s unvested performance restricted stock units (RSUs) as of and for the nine months ended September 30, 2019 : Unvested RSUs Weighted Average Grant Date Fair Value per RSU RSUs eligible for future conversion as of January 1, 2019 649 $ 14.54 RSUs granted (a) 382 $ 10.98 Conversion of RSUs to common stock and restricted shares (b) (192 ) $ 13.74 RSUs eligible for future conversion as of September 30, 2019 (c) 839 $ 13.10 (a) Assumptions and inputs as of the grant date included a risk-free interest rate of 2.47% , the Company’s historical common stock performance relative to the peer companies within the National Association of Real Estate Investment Trusts (NAREIT) Shopping Center Index and the Company’s common stock dividend yield of 6.07% . Subject to continued employment, in 2022, following the performance period which concludes on December 31, 2021, one-third of the RSUs that are earned will convert into shares of common stock and two-thirds will convert into restricted shares with a one year vesting term. (b) On February 4, 2019, 192 RSUs converted into 82 shares of common stock and 125 restricted shares that will vest on December 31, 2019, subject to continued employment through such date, after applying a conversion rate of 107.5% based upon the Company’s Total Shareholder Return (TSR) relative to the TSRs of its peer companies, for the performance period that concluded on December 31, 2018. An additional 29 shares of common stock were also issued representing the dividends that would have been paid on the earned awards during the performance period. (c) As of September 30, 2019 , total unrecognized compensation expense related to unvested RSUs was $5,670 , which is expected to be amortized over a weighted average term of 2.1 years . |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of lease income | Lease income related to the Company’s operating leases is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Lease income related to fixed lease payments $ 90,335 $ 89,708 $ 270,520 $ 271,873 Lease income related to variable lease payments 28,824 29,148 87,838 88,268 Other (a) 558 281 2,511 3,002 Lease income $ 119,717 $ 119,137 $ 360,869 $ 363,143 (a) For the three and nine months ended September 30, 2019 , “Other” is comprised of revenue adjustments related to changes in collectibility and amortization of above and below market lease intangibles and lease inducements. For the three and nine months ended September 30, 2018 , “Other” is comprised of amortization of above and below market lease intangibles and lease inducements. |
Schedule of lease payments to be received under operating leases (new lease accounting standard) | As of September 30, 2019 , undiscounted lease payments to be received under operating leases, excluding additional percentage rent based on tenants’ sales volume and tenant reimbursements of certain operating expenses and assuming no exercise of renewal options or early termination rights, for the remainder of 2019 , the next five years and thereafter are as follows: Lease Payments 2019 $ 90,896 2020 350,666 2021 312,795 2022 264,906 2023 216,923 2024 162,135 Thereafter 504,545 Total $ 1,902,866 |
Schedule of lease payments to be received under operating leases (previous lease accounting standard) | As of December 31, 2018, undiscounted lease payments to be received under operating leases, excluding additional percentage rent based on tenants’ sales volume and tenant reimbursements of certain operating expenses and assuming no exercise of renewal options or early termination rights, were as follows: Lease Payments 2019 $ 351,145 2020 314,081 2021 274,135 2022 227,417 2023 180,199 Thereafter 569,758 Total $ 1,916,735 |
Schedule of rent expense | The following table summarizes total lease costs recognized during the period, including variable lease payments which were not significant, and non-cash rent expense. Lease costs recognized during the three and nine months ended September 30, 2019 are presented under the new lease accounting standard and lease costs recognized during the three and nine months ended September 30, 2018 are presented under the standard in effect prior to the Company’s adoption of ASU 2016-02. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Ground lease rent expense (a) $ 1,563 $ 1,893 $ 4,831 $ 5,745 Office rent expense (b) $ 278 $ 281 $ 849 $ 855 (a) Included within “Operating expenses” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. Includes non-cash ground rent expense of $333 and $1,023 for the three and nine months ended September 30, 2019 , respectively, and $580 and $1,825 for the three and nine months ended September 30, 2018 , respectively. (b) Office rent related to property management operations is included within “Operating expenses” and office rent related to corporate office operations is included within “General and administrative expenses” in the accompanying condensed consolidated statements of operations and other comprehensive (loss) income. The Company has elected to not record a lease liability/ROU asset for leases with a term of less than 12 months. Office rent expense for the three and nine months ended September 30, 2019 includes $0 and $29 , respectively, of short-term lease costs. |
Schedule of future rental obligations to be paid under ground and office leases (new lease accounting standard) | As of September 30, 2019 , undiscounted future rental obligations to be paid under the long-term ground and office leases, including fixed rental increases, for the remainder of 2019 , the next five years and thereafter are as follows: Lease Obligations 2019 $ 1,401 2020 6,076 2021 6,110 2022 6,140 2023 6,102 2024 5,698 Thereafter 247,795 Total $ 279,322 Adjustment for discounting (188,380 ) Lease liabilities as of September 30, 2019 $ 90,942 |
Schedule of future rental obligations to be paid under ground and office leases (previous lease accounting standard) | As of December 31, 2018 , future rental obligations to be paid under the ground and office leases, including fixed rental increases, were as follows: Lease Obligations 2019 $ 6,448 2020 6,656 2021 6,716 2022 6,761 2023 6,769 Thereafter 279,916 Total $ 313,266 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of mortgages payable | The following table summarizes the Company’s mortgages payable: September 30, 2019 December 31, 2018 Balance Weighted Average Interest Rate Weighted Average Years to Maturity Balance Weighted Average Interest Rate Weighted Average Years to Maturity Fixed rate mortgages payable (a) $ 95,533 4.37 % 5.4 $ 205,450 4.65 % 4.5 Premium, net of accumulated amortization — 775 Discount, net of accumulated amortization (504 ) (536 ) Capitalized loan fees, net of accumulated amortization (272 ) (369 ) Mortgages payable, net $ 94,757 $ 205,320 (a) The fixed rate mortgages had interest rates ranging from 3.75% to 7.48% as of September 30, 2019 and December 31, 2018 . |
Summary of unsecured notes payable | The following table summarizes the Company’s unsecured notes payable: September 30, 2019 December 31, 2018 Unsecured Notes Payable Maturity Date Balance Interest Rate/ Weighted Average Interest Rate Balance Interest Rate/ Weighted Average Interest Rate Senior notes – 4.12% due 2021 June 30, 2021 $ 100,000 4.12 % $ 100,000 4.12 % Senior notes – 4.58% due 2024 June 30, 2024 150,000 4.58 % 150,000 4.58 % Senior notes – 4.00% due 2025 March 15, 2025 250,000 4.00 % 250,000 4.00 % Senior notes – 4.08% due 2026 September 30, 2026 100,000 4.08 % 100,000 4.08 % Senior notes – 4.24% due 2028 December 28, 2028 100,000 4.24 % 100,000 4.24 % Senior notes – 4.82% due 2029 June 28, 2029 100,000 4.82 % — — % 800,000 4.27 % 700,000 4.19 % Discount, net of accumulated amortization (645 ) (734 ) Capitalized loan fees, net of accumulated amortization (3,281 ) (2,904 ) Total $ 796,074 $ 696,362 |
Summary of term loans and revolving line of credit | The following table summarizes the Company’s term loans and revolving line of credit: September 30, 2019 December 31, 2018 Maturity Date Balance Interest Rate Balance Interest Unsecured credit facility term loan due 2021 – fixed rate (a) January 5, 2021 $ 250,000 3.20 % $ 250,000 3.20 % Unsecured term loan due 2023 – fixed rate (b) November 22, 2023 200,000 4.05 % 200,000 4.05 % Unsecured term loan due 2024 – fixed rate (c) July 17, 2024 120,000 2.88 % — — % Unsecured term loan due 2026 – fixed rate (d) July 17, 2026 150,000 3.27 % — — % Subtotal 720,000 450,000 Capitalized loan fees, net of accumulated amortization (3,746 ) (2,633 ) Term loans, net $ 716,254 $ 447,367 Unsecured credit facility revolving line of credit – variable rate (e) April 22, 2022 $ 24,000 3.09 % $ 273,000 3.57 % (a) $250,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 2.00% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through January 5, 2021. The applicable credit spread was 1.20% as of September 30, 2019 and December 31, 2018 . (b) $200,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 2.85% plus a credit spread based on a leverage grid ranging from 1.20% to 1.85% through November 22, 2023. The applicable credit spread was 1.20% as of September 30, 2019 and December 31, 2018 . (c) $120,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 1.68% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2024. The applicable credit spread was 1.20% as of September 30, 2019 . (d) $150,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 1.77% plus a credit spread based on a leverage grid ranging from 1.50% to 2.20% through July 17, 2026. The applicable credit spread was 1.50% as of September 30, 2019 . (e) Excludes capitalized loan fees, which are included within “Other assets, net” in the accompanying condensed consolidated balance sheets. |
Summary of unsecured credit facility | The following table summarizes the key terms of the Unsecured Credit Facility: Leverage-Based Pricing Investment Grade Pricing Unsecured Credit Facility Maturity Date Extension Option Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee $250,000 unsecured term loan due 2021 1/5/2021 N/A N/A 1.20% - 1.70% N/A 0.90% - 1.75% N/A $850,000 unsecured revolving line of credit 4/22/2022 2-six month 0.075% 1.05% - 1.50% 0.15% - 0.30% 0.825%-1.55% 0.125% - 0.30% |
Summary of unsecured term loans | The following table summarizes the key terms of the unsecured term loans: Unsecured Term Loans Maturity Date Leverage-Based Pricing Credit Spread Investment Grade Pricing Credit Spread $200,000 unsecured term loan due 2023 11/22/2023 1.20 % – 1.85% 0.85 % – 1.65% $120,000 unsecured term loan due 2024 7/17/2024 1.20 % – 1.70% 0.80 % – 1.65% $150,000 unsecured term loan due 2026 7/17/2026 1.50 % – 2.20% 1.35 % – 2.25% |
Summary of scheduled maturities and principal amortization of indebtedness | The following table shows the scheduled maturities and principal amortization of the Company’s indebtedness as of September 30, 2019 for the remainder of 2019 , each of the next four years and thereafter and the weighted average interest rates by year. The table does not reflect the impact of any debt activity that occurred after September 30, 2019 . 2019 2020 2021 2022 2023 Thereafter Total Debt: Fixed rate debt: Mortgages payable (a) $ 613 $ 2,510 $ 2,626 $ 26,678 $ 31,758 $ 31,348 $ 95,533 Fixed rate term loans (b) — — 250,000 — 200,000 270,000 720,000 Unsecured notes payable (c) — — 100,000 — — 700,000 800,000 Total fixed rate debt 613 2,510 352,626 26,678 231,758 1,001,348 1,615,533 Variable rate debt: Variable rate revolving line of credit — — — 24,000 — — 24,000 Total debt (d) $ 613 $ 2,510 $ 352,626 $ 50,678 $ 231,758 $ 1,001,348 $ 1,639,533 Weighted average interest rate on debt: Fixed rate debt 4.34 % 4.35 % 3.47 % 4.81 % 4.06 % 3.97 % 3.89 % Variable rate debt (e) — — — 3.09 % — — 3.09 % Total 4.34 % 4.35 % 3.47 % 4.00 % 4.06 % 3.97 % 3.88 % (a) Excludes mortgage discount of $(504) and capitalized loan fees of $(272) , net of accumulated amortization, as of September 30, 2019 . (b) Excludes capitalized loan fees of $(3,746) , net of accumulated amortization, as of September 30, 2019 . The following variable rate term loans have been swapped to fixed rate debt: (i) $250,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 2.00% plus a credit spread based on a leverage grid through January 5, 2021; (ii) $200,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 2.85% plus a credit spread based on a leverage grid through November 22, 2023; (iii) $120,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 1.68% plus a credit spread based on a leverage grid through July 17, 2024; and (iv) $150,000 of LIBOR -based variable rate debt has been swapped to a fixed rate of 1.77% plus a credit spread based on a leverage grid through July 17, 2026. As of September 30, 2019 , the applicable credit spread for (i), (ii) and (iii) was 1.20% and for (iv) was 1.50% . (c) Excludes discount of $(645) and capitalized loan fees of $(3,281) , net of accumulated amortization, as of September 30, 2019 . (d) The weighted average years to maturity of consolidated indebtedness was 5.0 years as of September 30, 2019 . (e) Represents interest rate as of September 30, 2019 . |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The following table summarizes the Company’s interest rate swaps as of September 30, 2019 , which effectively convert one-month floating rate LIBOR to a fixed rate: Number of Instruments Effective Date Aggregate Notional Fixed Interest Rate Maturity Date Three December 29, 2017 $ 250,000 2.00 % January 5, 2021 Two November 23, 2018 $ 200,000 2.85 % November 22, 2023 Three August 15, 2019 $ 120,000 1.68 % July 17, 2024 Three August 15, 2019 $ 150,000 1.77 % July 17, 2026 |
Schedule of interest rate swaps designated as cash flow hedges | The following table summarizes the Company’s interest rate swaps that were designated as cash flow hedges of interest rate risk: Number of Instruments Notional Interest Rate Derivatives September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Interest rate swaps 11 5 $ 720,000 $ 450,000 |
Schedule of estimated fair value of derivative instruments | The table below presents the estimated fair value of the Company’s derivative financial instruments as well as their classification in the accompanying condensed consolidated balance sheets. The valuation techniques used are described in Note 12 to the condensed consolidated financial statements. Derivatives September 30, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as cash flow hedges: Interest rate swaps Other assets, net $ — Other assets, net $ 2,324 Interest rate swaps Other liabilities $ 18,495 Other liabilities $ 3,846 |
Schedule of effect of derivative instruments on the consolidated statements of operations | The following table presents the effect of the Company’s derivative financial instruments on the accompanying condensed consolidated statements of operations and other comprehensive (loss) income for the three and nine months ended September 30, 2019 and 2018 : Derivatives in Cash Flow Hedging Relationships Amount of Loss (Gain) Recognized in Other Comprehensive Income on Derivative Location of Loss (Gain) Reclassified from Accumulated Other Comprehensive Income (AOCI) into Income Amount of Loss (Gain) Reclassified from AOCI into Income Total Interest Expense Presented in the Statements of Operations in which the Effects of Cash Flow Hedges are Recorded Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended 2019 $ 7,159 $ 16,760 Interest expense $ 7 $ (213 ) $ 25,084 $ 59,877 2018 $ (1,336 ) $ (5,141 ) Interest expense $ (473 ) $ (665 ) $ 21,336 $ 56,918 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of components used in the calculation of basic and diluted EPS | The following table summarizes the components used in the calculation of basic and diluted earnings per share (EPS): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net (loss) income attributable to common shareholders $ (28,153 ) $ 12,834 $ 16,225 $ 65,496 Earnings allocated to unvested restricted shares (105 ) (81 ) (295 ) (253 ) Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (28,258 ) $ 12,753 $ 15,930 $ 65,243 Denominator: Denominator for (loss) earnings per common share – basic: Weighted average number of common shares outstanding 212,995 (a) 218,808 (b) 212,932 (a) 218,879 (b) Effect of dilutive securities: Stock options — (c) — (c) — (c) — (c) RSUs — (d) 213 (e) 124 (d) 398 (e) Denominator for (loss) earnings per common share – diluted: Weighted average number of common and common equivalent shares outstanding 212,995 219,021 213,056 219,277 (a) Excludes 660 shares of unvested restricted common stock as of September 30, 2019 , which equate to 661 and 641 shares, respectively, on a weighted average basis for the three and nine months ended September 30, 2019 . These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. (b) Excludes 521 shares of unvested restricted common stock as of September 30, 2018 , which equate to 521 and 541 shares, respectively, on a weighted average basis for the three and nine months ended September 30, 2018 . These shares were excluded from the computation of basic EPS as the contingencies remained and the shares had not been released as of the end of the reporting period. (c) There were outstanding options to purchase 22 and 28 shares of common stock as of September 30, 2019 and 2018 , respectively, at a weighted average exercise price of $17.34 and $18.98 , respectively. Of these totals, outstanding options to purchase 18 and 24 shares of common stock as of September 30, 2019 and 2018 , respectively, at a weighted average exercise price of $18.58 and $20.19 , respectively, have been excluded from the common shares used in calculating diluted EPS as including them would be anti-dilutive. (d) As of September 30, 2019 , there were 839 RSUs eligible for future conversion upon completion of the performance periods (see Note 5 to the condensed consolidated financial statements), which equate to 839 and 836 RSUs, respectively, on a weighted average basis for the three and nine months ended September 30, 2019 . For the three months ended September 30, 2019, these contingently issuable shares have been excluded from the common shares used in calculating diluted EPS as including them would be anti-dilutive. For the nine months ended September 30, 2019, these contingently issuable shares are a component of calculating diluted EPS. (e) As of September 30, 2018 , there were 649 RSUs eligible for future conversion upon completion of the performance periods, which equate to 649 and 661 RSUs, respectively, on a weighted average basis for the three and nine months ended September 30, 2018 . These contingently issuable shares are a component of calculating diluted EPS. |
Provision for Impairment of I_2
Provision for Impairment of Investment Properties (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |
Schedule of identified impairment indicators | As of September 30, 2019 and 2018 , the Company identified indicators of impairment at certain of its properties. 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 following table summarizes the results of these analyses as of September 30, 2019 and 2018 : September 30, 2019 September 30, 2018 Number of properties for which indicators of impairment were identified 2 2 (a) Less: number of properties for which an impairment charge was recorded 1 — Less: number of properties that were held for sale as of the date the analysis was performed for which indicators of impairment were identified but no impairment charge was recorded — — Remaining properties for which indicators of impairment were identified but no impairment charge was considered necessary 1 2 Weighted average percentage by which the projected undiscounted cash flows exceeded its respective carrying value for each of the remaining properties (b) 20 % 33 % (a) Includes one property which has subsequently been sold as of September 30, 2019 . (b) Based upon the estimated holding period for each asset where an undiscounted cash flow analysis was performed. |
Schedule of investment property impairment charges | The Company recorded the following investment property impairment charge during the nine months ended September 30, 2019 .: Property Name Property Type Impairment Date Square Footage Provision for Impairment of Investment Properties Streets of Yorktown (a) Multi-tenant retail September 30, 2019 85,200 $ 11,177 $ 11,177 Estimated fair value of impaired property as of impairment date $ 5,300 (a) The Company recorded an impairment charge as a result of a combination of factors, including expected impact on future operating results stemming from anticipated changes in lease terms related to the tenant population and a re-evaluation of the strategic alternatives for the property. The Company recorded the following investment property impairment charges during the nine months ended September 30, 2018 : Property Name Property Type Impairment Date Square Footage Provision for Impairment of Investment Properties Schaumburg Towers (a) Office Various 895,400 $ 1,116 CVS Pharmacy – Lawton, OK (b) Single-user retail March 31, 2018 10,900 200 $ 1,316 Estimated fair value of impaired properties as of impairment date $ 76,871 (a) The Company recorded an impairment charge on March 31, 2018 based upon the terms and conditions of an executed sales contract. This property was classified as held for sale as of March 31, 2018 and was sold on May 31, 2018, at which time additional impairment was recognized pursuant to the terms and conditions of an executed sales contract. (b) The Company recorded an impairment charge based upon the terms and conditions of an executed sales contract. The property was sold on April 19, 2018. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Financial assets: Derivative asset $ — $ — $ 2,324 $ 2,324 Financial liabilities: Mortgages payable, net $ 94,757 $ 98,917 $ 205,320 $ 208,173 Unsecured notes payable, net $ 796,074 $ 823,016 $ 696,362 $ 671,492 Unsecured term loans, net $ 716,254 $ 720,000 $ 447,367 $ 449,266 Unsecured revolving line of credit $ 24,000 $ 24,000 $ 273,000 $ 272,553 Derivative liability $ 18,495 $ 18,495 $ 3,846 $ 3,846 |
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. Fair Value Level 1 Level 2 Level 3 Total September 30, 2019 Derivative liability $ — $ 18,495 $ — $ 18,495 December 31, 2018 Derivative asset $ — $ 2,324 $ — $ 2,324 Derivative liability $ — $ 3,846 $ — $ 3,846 |
Schedule of assets measured at fair value on a nonrecurring basis | The following table presents the Company’s assets measured at fair value on a nonrecurring basis as of September 30, 2019 , aggregated by the level within the fair value hierarchy in which those measurements fall. The table includes information related to a property remeasured to fair value as a result of an impairment charge recorded during the nine months ended September 30, 2019 . Methods and assumptions used to estimate the fair value of this asset are described after the table. The Company did not remeasure any assets to fair value on a nonrecurring basis as of December 31, 2018 . Fair Value Level 1 Level 2 Level 3 Total Provision for Impairment September 30, 2019 Investment property $ — $ — $ 5,300 (a) $ 5,300 $ 11,177 (a) Represents the fair value of the Company’s Streets of Yorktown investment property. The estimated fair value of Streets of Yorktown was determined using the income approach. The income approach involves discounting the estimated income stream and reversion (presumed sale) value of a property over an estimated holding period to a present value at a risk-adjusted rate. The discount rates and third-party comparable sales prices used in this approach are derived from property-specific information, market transactions and other industry data and are considered significant inputs to this valuation. The reversion value of the property was based upon third-party comparable sales prices, which contain unobservable inputs used by these third parties. A weighted average discount rate of 6.89% was used to (i) present value the estimated income stream over the estimated holding period and (ii) present value the reversion value. |
Schedule of financial liabilities measured at fair value for disclosure purposes | 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 those measurements fall. Fair Value Level 1 Level 2 Level 3 Total September 30, 2019 Mortgages payable, net $ — $ — $ 98,917 $ 98,917 Unsecured notes payable, net $ 251,288 $ — $ 571,728 $ 823,016 Unsecured term loans, net $ — $ — $ 720,000 $ 720,000 Unsecured revolving line of credit $ — $ — $ 24,000 $ 24,000 December 31, 2018 Mortgages payable, net $ — $ — $ 208,173 $ 208,173 Unsecured notes payable, net $ 235,788 $ — $ 435,704 $ 671,492 Unsecured term loans, net $ — $ — $ 449,266 $ 449,266 Unsecured revolving line of credit $ — $ — $ 272,553 $ 272,553 The Company estimates the fair value of its Level 3 financial liabilities using a discounted cash flow model that incorporates future contractual principal and interest payments. The Company estimates the fair value of its mortgages payable, net and Level 3 unsecured notes payable, net by discounting the anticipated future cash flows of each instrument at rates currently offered to the Company by its lenders for similar debt instruments of comparable maturities. The Company estimates the fair value of its unsecured term loans, net and unsecured revolving line of credit by discounting the anticipated future cash flows at a reference rate, currently one-month LIBOR, plus an applicable credit spread currently offered to the Company by its lenders for similar instruments of comparable maturities. The following rates were used in the discounted cash flow model to calculate the fair value of the Company’s Level 3 financial liabilities: September 30, 2019 December 31, 2018 Mortgages payable, net – range of discount rates used 3.4% to 3.7% 4.2% to 4.4% Unsecured notes payable, net – weighted average discount rate used 3.84% 4.91% Unsecured term loans, net – weighted average credit spread portion of discount rate used 1.26% 1.25% Unsecured revolving line of credit – credit spread portion of discount rate used 1.05% 1.10% |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) | Sep. 30, 2019propertysubsidiary |
Real Estate Properties [Line Items] | |
Number of real estate properties owned | 106 |
Number of wholly-owned subsidiaries jointly elected to be treated as a TRS | subsidiary | 1 |
Operating properties | Retail | |
Real Estate Properties [Line Items] | |
Number of real estate properties owned | 104 |
Circle East | Redevelopment properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties owned | 1 |
One Loudoun Downtown - Pads G & H | Redevelopment properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties owned | 0 |
Carillon | Redevelopment properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties owned | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liabilities and ROU assets recognized upon adoption | $ 103,519 | $ 0 | ||
Straight-line ground rent liabilities | $ 31,030 | |||
Acquired ground lease intangible liability | 11,898 | |||
Rental income | $ 90,975 | 278,076 | ||
Tenant recovery income | 26,817 | 80,090 | ||
Other property income | $ 1,345 | $ 4,977 | ||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liabilities and ROU assets recognized upon adoption | $ 103,432 |
Acquisitions and Developments_3
Acquisitions and Developments in Progress - Summary of Acquisitions (Details) $ in Thousands | Aug. 13, 2019USD ($)ft² | Jun. 10, 2019USD ($)ft² | Mar. 07, 2019USD ($)ft² | Sep. 30, 2019USD ($)ft² |
North Benson Center | ||||
Business Acquisition [Line Items] | ||||
Square footage | ft² | 70,500 | |||
Purchase price of asset acquisition | $ 25,340 | |||
Paradise Valley Marketplace - Parcel | ||||
Business Acquisition [Line Items] | ||||
Square footage | ft² | 0 | |||
Purchase price of asset acquisition | $ 1,343 | |||
Southlake Town Square - Parcel | ||||
Business Acquisition [Line Items] | ||||
Square footage | ft² | 3,100 | |||
Purchase price of asset acquisition | $ 3,293 | |||
2019 acquisitions | ||||
Business Acquisition [Line Items] | ||||
Square footage | ft² | 73,600 | |||
Purchase price of asset acquisition | $ 29,976 | |||
Capitalized closing costs and adjustments | $ 316 |
Acquisitions and Developments_4
Acquisitions and Developments in Progress - Acquisition Date Fair Values (Details) - 2019 acquisitions $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Acquisition Date Fair Values | |
Land | $ 14,819 |
Building and other improvements, net | 13,667 |
Acquired lease intangible assets | 2,040 |
Acquired lease intangible liabilities | (234) |
Net assets acquired | $ 30,292 |
Weighted average amortization period, acquired lease intangible assets | 6 years |
Weighted average amortization period, acquired lease intangible liabilities | 5 years |
Acquisitions and Developments_5
Acquisitions and Developments in Progress - Summary of Developments in Progress (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)a | |
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | $ 100,079 | $ 100,079 | $ 48,369 | ||
Aggregate proceeds, net | 44,656 | $ 190,321 | |||
Circle East | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 31,334 | 31,334 | 22,383 | ||
Plaza del Lago | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 0 | 0 | 536 | ||
One Loudoun Downtown | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 18,852 | 18,852 | 0 | ||
Carillon | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 24,443 | 24,443 | 0 | ||
Accelerated depreciation | 26,330 | ||||
One Loudoun Uptown | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Land held for future development | 25,450 | 25,450 | $ 25,450 | ||
Acres of land | a | 58 | ||||
Acres of land that are developable | a | 32 | ||||
Redevelopment properties | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 74,629 | 74,629 | $ 22,919 | ||
Capitalized indirect project costs | 1,204 | $ 499 | 2,437 | 1,463 | |
Capitalized internal salaries and related benefits | 366 | 276 | 1,066 | 689 | |
Capitalized interest | $ 570 | $ 98 | $ 940 | 348 | |
Circle East, air rights | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Aggregate proceeds, net | $ 11,820 | $ 11,820 |
Acquisitions and Developments_6
Acquisitions and Developments in Progress - Variable Interest Entities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)agreements | Sep. 30, 2019USD ($) | |
One Loudoun Downtown and Carillon | ||
Variable Interest Entity [Line Items] | ||
Number of joint ventures | agreements | 2 | |
Medical office building | Carillon | ||
Variable Interest Entity [Line Items] | ||
Company's ownership percentage | 95.00% | |
Multi-family | Carillon | ||
Variable Interest Entity [Line Items] | ||
Company's ownership percentage | 95.00% | |
Multi-family | One Loudoun Downtown - Pads G & H | ||
Variable Interest Entity [Line Items] | ||
Company's ownership percentage | 90.00% | |
Net investment properties | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | $ 0 | $ 8,312 |
Net investment properties | One Loudoun Downtown - Pads G & H | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 0 | 5,175 |
Net investment properties | Medical office building | Carillon | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 0 | 401 |
Net investment properties | Multi-family | Carillon | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 0 | 2,736 |
Other assets, net | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 1,264 | 287 |
Other assets, net | One Loudoun Downtown - Pads G & H | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 579 | 287 |
Other assets, net | Medical office building | Carillon | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 0 | 0 |
Other assets, net | Multi-family | Carillon | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 685 | 0 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 428 | 2,926 |
Other liabilities | One Loudoun Downtown - Pads G & H | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 165 | 2,263 |
Other liabilities | Medical office building | Carillon | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 0 | 95 |
Other liabilities | Multi-family | Carillon | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 263 | 568 |
Noncontrolling interests | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 418 | 2,420 |
Noncontrolling interests | One Loudoun Downtown - Pads G & H | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 207 | 1,183 |
Noncontrolling interests | Medical office building | Carillon | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | 0 | 153 |
Noncontrolling interests | Multi-family | Carillon | ||
Variable Interest Entity [Line Items] | ||
Development costs incurred | $ 211 | $ 1,084 |
Dispositions - Summary of Dispo
Dispositions - Summary of Dispositions (Details) $ in Thousands | Jun. 28, 2019USD ($)ft² | Mar. 08, 2019USD ($)ft² | May 31, 2018USD ($)ft² | Apr. 19, 2018USD ($)ft² | Mar. 28, 2018USD ($)ft² | Mar. 21, 2018USD ($)ft² | Mar. 20, 2018USD ($)ft² | Mar. 07, 2018USD ($)ft² | Feb. 15, 2018USD ($)ft² | Jan. 19, 2018USD ($)ft² | Sep. 30, 2018USD ($)ft²unit | Sep. 30, 2019USD ($)ft²propertyunit | Sep. 30, 2018USD ($)ft²unit | Dec. 31, 2018USD ($)property |
Property Dispositions [Line Items] | ||||||||||||||
Aggregate proceeds, net | $ 44,656 | $ 190,321 | ||||||||||||
Gain | $ 18,872 | 37,211 | ||||||||||||
Number of properties classified as held for sale | property | 106 | |||||||||||||
Edwards Multiplex - Fresno, CA | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 94,600 | |||||||||||||
Consideration | $ 25,850 | |||||||||||||
Aggregate proceeds, net | 21,605 | |||||||||||||
Gain | $ 8,449 | |||||||||||||
North Rivers Towne Center | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 141,500 | |||||||||||||
Consideration | $ 18,900 | |||||||||||||
Aggregate proceeds, net | 17,989 | |||||||||||||
Gain | $ 6,881 | |||||||||||||
2019 dispositions | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 236,100 | |||||||||||||
Consideration | $ 44,750 | |||||||||||||
Aggregate proceeds, net | 39,594 | |||||||||||||
Gain | 15,330 | |||||||||||||
One Loudoun Downtown - Land | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Aggregate proceeds, net | 5,062 | 1,789 | ||||||||||||
Gain | $ 3,542 | $ 1,285 | ||||||||||||
Number of residential units with development rights | unit | 8 | 22 | 8 | |||||||||||
Crown Theater | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 74,200 | |||||||||||||
Consideration | $ 6,900 | |||||||||||||
Aggregate proceeds, net | 6,350 | |||||||||||||
Gain | $ 2,952 | |||||||||||||
Cranberry Square | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 195,200 | |||||||||||||
Consideration | $ 23,500 | |||||||||||||
Aggregate proceeds, net | 23,163 | |||||||||||||
Gain | $ 10,174 | |||||||||||||
Rite Aid Store (Eckerd) - Crossville, TN | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 13,800 | |||||||||||||
Consideration | $ 1,800 | |||||||||||||
Aggregate proceeds, net | 1,768 | |||||||||||||
Gain | $ 157 | |||||||||||||
Home Depot Plaza | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 135,600 | |||||||||||||
Consideration | $ 16,250 | |||||||||||||
Aggregate proceeds, net | 15,873 | |||||||||||||
Gain | 0 | |||||||||||||
Mortgage payable repaid | $ 10,750 | |||||||||||||
Governor's Marketplace | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 243,100 | |||||||||||||
Consideration | $ 23,500 | |||||||||||||
Aggregate proceeds, net | 22,400 | |||||||||||||
Gain | $ 8,836 | $ 1,407 | ||||||||||||
Stony Creek I & Stony Creek II | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 204,800 | |||||||||||||
Consideration | $ 32,800 | |||||||||||||
Aggregate proceeds, net | 32,078 | |||||||||||||
Gain | $ 11,628 | |||||||||||||
CVS Pharmacy - Lawton, OK | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 10,900 | |||||||||||||
Consideration | $ 1,600 | |||||||||||||
Aggregate proceeds, net | 1,596 | |||||||||||||
Gain | $ 0 | |||||||||||||
Schaumburg Towers | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 895,400 | |||||||||||||
Consideration | $ 86,600 | |||||||||||||
Aggregate proceeds, net | 73,315 | |||||||||||||
Gain | $ 0 | |||||||||||||
2018 dispositions | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Square footage | ft² | 1,773,000 | 1,773,000 | ||||||||||||
Consideration | $ 192,950 | $ 192,950 | ||||||||||||
Aggregate proceeds, net | 176,543 | |||||||||||||
Gain | 33,747 | |||||||||||||
Condemnation proceeds | 169 | |||||||||||||
Circle East, air rights | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Aggregate proceeds, net | 11,820 | $ 11,820 | ||||||||||||
Gain | $ 2,179 | |||||||||||||
Investment properties held for sale | ||||||||||||||
Property Dispositions [Line Items] | ||||||||||||||
Number of properties classified as held for sale | property | 0 | 0 |
Equity Compensation Plans (Deta
Equity Compensation Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Sep. 30, 2019 | Feb. 04, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options outstanding | 22 | 22 | 28 | 22 | 28 | |
Number of options granted | 0 | 0 | ||||
Restricted shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued | 125 | |||||
Number of shares/RSUs in which vesting was accelerated | 23 | |||||
Fair value of restricted shares/RSUs vested | $ 2,778 | |||||
Equity Instruments, Nonvested [Roll Forward] | ||||||
Balance at the beginning of the period (in shares) | 440 | |||||
Shares/RSUs granted (in shares) | 469 | |||||
Shares/RSUs vested (in shares) | (233) | |||||
Shares/RSUs forfeited (in shares) | (16) | |||||
Balance at the end of the period (in shares) | 660 | 660 | 521 | 660 | 521 | |
Equity Instruments, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Balance at the beginning of the period (in dollars per share) | $ 13.40 | |||||
Shares/RSUs granted (in dollars per share) | 12.22 | |||||
Shares/RSUs vested (in dollars per share) | 13.31 | |||||
Shares/RSUs forfeited (in dollars per share) | 12.77 | |||||
Balance at the end of the period (in dollars per share) | $ 12.61 | $ 12.61 | $ 12.61 | |||
Compensation Cost Not Yet Recognized | ||||||
Total unrecognized compensation expense | $ 3,125 | $ 3,125 | $ 3,125 | |||
Unrecognized compensation expense, period for recognition (in years) | 1 year 2 months 12 days | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for shares/RSUs granted | 1 year | |||||
Risk-free interest rate (as a percent) | 2.47% | |||||
Common stock dividend yield (as a percent) | 6.07% | |||||
Conversion rate of RSUs into shares of common stock (as a percent) | 33.00% | |||||
Conversion rate of RSUs into restricted shares (as a percent) | 67.00% | |||||
Number of RSUs converted | 192 | |||||
Conversion rate (as a percent) | 107.50% | |||||
Number of shares/RSUs in which vesting was accelerated | 29 | |||||
Fair value of restricted shares/RSUs vested | $ 1,052 | |||||
Equity Instruments, Nonvested [Roll Forward] | ||||||
Balance at the beginning of the period (in shares) | 649 | |||||
Shares/RSUs granted (in shares) | 382 | |||||
Shares/RSUs vested (in shares) | (192) | |||||
Balance at the end of the period (in shares) | 839 | 839 | 839 | |||
Equity Instruments, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Balance at the beginning of the period (in dollars per share) | $ 14.54 | |||||
Shares/RSUs granted (in dollars per share) | 10.98 | |||||
Shares/RSUs vested (in dollars per share) | 13.74 | |||||
Balance at the end of the period (in dollars per share) | $ 13.10 | $ 13.10 | $ 13.10 | |||
Compensation Cost Not Yet Recognized | ||||||
Total unrecognized compensation expense | $ 5,670 | $ 5,670 | $ 5,670 | |||
Unrecognized compensation expense, period for recognition (in years) | 2 years 1 month 6 days | |||||
Restricted shares and RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 1,849 | $ 1,599 | 5,672 | $ 5,328 | ||
Additional compensation expense | 330 | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 0 | $ 0 | ||||
Minimum | Restricted shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for shares/RSUs granted | 10 months 24 days | |||||
Maximum | Restricted shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for shares/RSUs granted | 3 years | |||||
Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued | 82 | |||||
Dividends | Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued | 29 |
Leases - Summary of Leases as L
Leases - Summary of Leases as Lessor (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Lessor, Lease, Description [Line Items] | |||||
Lease termination fee income | $ 331 | $ 196 | $ 1,751 | $ 1,423 | |
Taxes remitted to governmental authorities and reimbursed by tenants | 155 | 122 | 454 | 398 | |
Operating Leases, Lease Income | |||||
Lease income related to fixed lease payments | 90,335 | 89,708 | 270,520 | 271,873 | |
Lease income related to variable lease payments | 28,824 | 29,148 | 87,838 | 88,268 | |
Other | 558 | 281 | 2,511 | 3,002 | |
Lease income | 119,717 | 119,137 | 360,869 | 363,143 | |
Lessor, Operating Lease, Payments, Fiscal Year Maturity | |||||
Lease payments, remainder of 2019 | 90,896 | 90,896 | |||
Lease payments, 2020 | 350,666 | 350,666 | |||
Lease payments, 2021 | 312,795 | 312,795 | |||
Lease payments, 2022 | 264,906 | 264,906 | |||
Lease payments, 2023 | 216,923 | 216,923 | |||
Lease payments, 2024 | 162,135 | 162,135 | |||
Lease payments, thereafter | 504,545 | 504,545 | |||
Total lease payments | $ 1,902,866 | $ 1,902,866 | |||
Operating Leases, Future Minimum Payments Receivable | |||||
Lease payments, 2019 | $ 351,145 | ||||
Lease payments, 2020 | 314,081 | ||||
Lease payments, 2021 | 274,135 | ||||
Lease payments, 2022 | 227,417 | ||||
Lease payments, 2023 | 180,199 | ||||
Lease payments, thereafter | 569,758 | ||||
Total lease payments | $ 1,916,735 | ||||
Minimum | |||||
Lessor, Lease, Description [Line Items] | |||||
Remaining lease term | 1 year | 1 year | 1 year | ||
Maximum | |||||
Lessor, Lease, Description [Line Items] | |||||
Remaining lease term | 64 years | 64 years | 64 years | ||
Building and associated improvements | |||||
Lessor, Lease, Description [Line Items] | |||||
Capitalized internal salaries and related benefits | $ 679 | 514 | $ 2,004 | 1,271 | |
Internal leasing incentives | |||||
Lessor, Lease, Description [Line Items] | |||||
Capitalized internal leasing incentives | $ 111 | $ 71 | $ 247 | $ 241 |
Leases - Summary of Leases as_2
Leases - Summary of Leases as Lessee (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||||||
Lease liabilities and ROU assets recognized upon adoption | $ 103,519 | $ 0 | ||||
Weighted average incremental borrowing rate (as a percent) | 5.91% | 5.93% | 5.93% | |||
Weighted average remaining lease term | 44 years | 44 years | 44 years | |||
Straight-line ground rent liabilities | $ 31,030 | |||||
Acquired ground lease intangible liability | 11,898 | |||||
Operating Lease Liabilities, Payments Due | ||||||
Lease obligations, remainder of 2019 | $ 1,401 | $ 1,401 | ||||
Lease obligations, 2020 | 6,076 | 6,076 | ||||
Lease obligations, 2021 | 6,110 | 6,110 | ||||
Lease obligations, 2022 | 6,140 | 6,140 | ||||
Lease obligations, 2023 | 6,102 | 6,102 | ||||
Lease obligations, 2024 | 5,698 | 5,698 | ||||
Lease obligations, thereafter | 247,795 | 247,795 | ||||
Total lease obligations | 279,322 | 279,322 | ||||
Adjustment for discounting | (188,380) | (188,380) | ||||
Lease liabilities | 90,942 | 90,942 | $ 0 | |||
Operating Leases, Future Minimum Payments Due | ||||||
Lease obligations, 2019 | 6,448 | |||||
Lease obligations, 2020 | 6,656 | |||||
Lease obligations, 2021 | 6,716 | |||||
Lease obligations, 2022 | 6,761 | |||||
Lease obligations, 2023 | 6,769 | |||||
Lease obligations, thereafter | 279,916 | |||||
Total lease obligations | $ 313,266 | |||||
Accounting Standards Update 2016-02 | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lease liabilities and ROU assets recognized upon adoption | $ 103,432 | |||||
Ground lease | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Rent expense under new lease accounting standard | 1,563 | 4,831 | ||||
Rent expense under previous lease accounting standard | $ 1,893 | 5,745 | ||||
Office | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Rent expense under new lease accounting standard | 278 | 849 | ||||
Rent expense under previous lease accounting standard | 281 | 855 | ||||
Short-term lease costs | 0 | 29 | ||||
Non-cash ground rent | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Rent expense under new lease accounting standard | $ 333 | $ 1,023 | ||||
Rent expense under previous lease accounting standard | $ 580 | $ 1,825 |
Debt - Summary of Mortgages Pay
Debt - Summary of Mortgages Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,639,533 | $ 1,639,533 | ||
Weighted average interest rate (as a percent) | 3.88% | 3.88% | ||
Debt prepayment fees | $ 8,151 | $ 5,791 | ||
Fixed rate debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,615,533 | $ 1,615,533 | ||
Weighted average interest rate (as a percent) | 3.89% | 3.89% | ||
Mortgages payable | ||||
Debt Instrument [Line Items] | ||||
Premium, net of accumulated amortization | $ 0 | $ 775 | $ 0 | |
Discount, net of accumulated amortization | (504) | (536) | (504) | |
Capitalized loan fees, net of accumulated amortization | (272) | (369) | (272) | |
Mortgages payable, net | 94,757 | 205,320 | 94,757 | |
Amount of mortgages payable repaid | 107,671 | |||
Debt prepayment fees | 8,151 | |||
Scheduled principal payments related to amortizing loans | 2,246 | |||
Mortgages payable | Fixed rate debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 95,533 | $ 205,450 | $ 95,533 | |
Weighted average interest rate (as a percent) | 4.37% | 4.65% | 4.37% | |
Weighted average years to maturity | 5 years 4 months 24 days | 4 years 6 months | ||
Minimum | Mortgages payable | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |
Maximum | Mortgages payable | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate (as a percent) | 7.48% | 7.48% | 7.48% | |
Debt repaid | Weighted average | Mortgages payable | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate (as a percent) | 4.91% | 4.91% |
Debt - Summary of Unsecured Not
Debt - Summary of Unsecured Notes Payable (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Principal balance | $ 796,074 | $ 696,362 | |
Weighted average interest rate (as a percent) | 3.88% | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal balance | $ 800,000 | 700,000 | |
Discount, net of accumulated amortization | (645) | (734) | |
Capitalized loan fees, net of accumulated amortization | $ (3,281) | $ (2,904) | |
Weighted average interest rate (as a percent) | 4.27% | 4.19% | |
Senior Notes | 4.12% Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Principal balance | $ 100,000 | $ 100,000 | |
Stated interest rate (as a percent) | 4.12% | 4.12% | |
Senior Notes | 4.58% Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Principal balance | $ 150,000 | $ 150,000 | |
Stated interest rate (as a percent) | 4.58% | 4.58% | |
Senior Notes | 4.00% Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Principal balance | $ 250,000 | $ 250,000 | |
Stated interest rate (as a percent) | 4.00% | 4.00% | |
Senior Notes | 4.08% Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Principal balance | $ 100,000 | $ 100,000 | |
Stated interest rate (as a percent) | 4.08% | 4.08% | |
Senior Notes | 4.24% Notes Due 2028 | |||
Debt Instrument [Line Items] | |||
Principal balance | $ 100,000 | $ 100,000 | |
Stated interest rate (as a percent) | 4.24% | 4.24% | |
Senior Notes | 4.82% Notes Due 2029 | |||
Debt Instrument [Line Items] | |||
Principal balance | $ 100,000 | $ 0 | |
Stated interest rate (as a percent) | 4.82% | 4.82% | 0.00% |
Amount of debt issuance | $ 100,000 | ||
Term of debt issuance | 10 years |
Debt - Summary of Term Loans an
Debt - Summary of Term Loans and Revolving Line of Credit (Details) $ in Thousands | Sep. 30, 2019USD ($) | Jul. 17, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 20, 2018 | Apr. 23, 2018USD ($)extension_options | Jan. 03, 2017USD ($) |
Term Loans and Line of Credit Facility [Line Items] | ||||||
Unsecured term loans | $ 716,254 | $ 447,367 | ||||
Unsecured revolving line of credit | 24,000 | 273,000 | ||||
Unsecured term loans | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Unsecured term loans | 720,000 | 450,000 | ||||
Capitalized loan fees, net of accumulated amortization | (3,746) | (2,633) | ||||
Term loans, net | 716,254 | 447,367 | ||||
Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Principal amount | $ 200,000 | |||||
Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Principal amount | $ 120,000 | |||||
Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Principal amount | $ 150,000 | |||||
Fixed rate debt | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Unsecured term loans | $ 250,000 | $ 250,000 | ||||
Interest rate on credit facility (as a percent) | 3.20% | 3.20% | ||||
Fixed rate debt | Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Unsecured term loans | $ 200,000 | $ 200,000 | ||||
Interest rate on term loans (as a percent) | 4.05% | 4.05% | ||||
Fixed rate debt | Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Unsecured term loans | $ 120,000 | $ 0 | ||||
Interest rate on term loans (as a percent) | 2.88% | 0.00% | ||||
Fixed rate debt | Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Unsecured term loans | $ 150,000 | $ 0 | ||||
Interest rate on term loans (as a percent) | 3.27% | 0.00% | ||||
Variable rate debt | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Unsecured revolving line of credit | $ 24,000 | $ 273,000 | ||||
Interest rate on credit facility (as a percent) | 3.09% | 3.57% | ||||
Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable rate debt swapped to fixed rate | $ 250,000 | |||||
Fixed interest rate (as a percent) | 2.00% | |||||
Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable rate debt swapped to fixed rate | $ 250,000 | |||||
Fixed interest rate (as a percent) | 2.00% | |||||
Two $100,000 interest rate swaps maturing in 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable rate debt swapped to fixed rate | $ 200,000 | |||||
Fixed interest rate (as a percent) | 2.85% | |||||
Two $100,000 interest rate swaps maturing in 2023 | Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable rate debt swapped to fixed rate | $ 200,000 | |||||
Fixed interest rate (as a percent) | 2.85% | |||||
Three $40,000 interest rate swaps maturing in 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable rate debt swapped to fixed rate | $ 120,000 | |||||
Fixed interest rate (as a percent) | 1.68% | |||||
Three $40,000 interest rate swaps maturing in 2024 | Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable rate debt swapped to fixed rate | $ 120,000 | |||||
Fixed interest rate (as a percent) | 1.68% | |||||
Three $50,000 interest rate swaps maturing in 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable rate debt swapped to fixed rate | $ 150,000 | |||||
Fixed interest rate (as a percent) | 1.77% | |||||
Three $50,000 interest rate swaps maturing in 2026 | Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable rate debt swapped to fixed rate | $ 150,000 | |||||
Fixed interest rate (as a percent) | 1.77% | |||||
LIBOR | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.20% | 1.20% | ||||
LIBOR | Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
Variable interest rate spread (as a percent) | 1.20% | 1.20% | ||||
LIBOR | Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.20% | |||||
LIBOR | Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.50% | |||||
LIBOR | Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
Variable interest rate spread (as a percent) | 1.20% | |||||
LIBOR | Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
LIBOR | Two $100,000 interest rate swaps maturing in 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
Variable interest rate spread (as a percent) | 1.20% | |||||
LIBOR | Two $100,000 interest rate swaps maturing in 2023 | Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
LIBOR | Three $40,000 interest rate swaps maturing in 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
Variable interest rate spread (as a percent) | 1.20% | |||||
LIBOR | Three $40,000 interest rate swaps maturing in 2024 | Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
LIBOR | Three $50,000 interest rate swaps maturing in 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
Variable interest rate spread (as a percent) | 1.50% | |||||
LIBOR | Three $50,000 interest rate swaps maturing in 2026 | Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Reference rate for variable interest rate | LIBOR | |||||
Minimum | LIBOR | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.20% | |||||
Minimum | LIBOR | Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.20% | 1.20% | ||||
Minimum | LIBOR | Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.20% | 1.20% | ||||
Minimum | LIBOR | Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.50% | 1.50% | ||||
Maximum | LIBOR | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.70% | |||||
Maximum | LIBOR | Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.85% | 1.85% | ||||
Maximum | LIBOR | Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.70% | 1.70% | ||||
Maximum | LIBOR | Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 2.20% | 2.20% | ||||
2018 Wells Fargo and KeyBank syndicate | Unsecured Credit Facility | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Aggregate borrowing capacity | $ 1,100,000 | |||||
Additional borrowing capacity | 500,000 | |||||
Maximum borrowing capacity | 1,600,000 | |||||
2018 Wells Fargo and KeyBank syndicate | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Principal amount | 250,000 | |||||
2018 Wells Fargo and KeyBank syndicate | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Aggregate borrowing capacity | $ 850,000 | |||||
Number of extension options | extension_options | 2 | |||||
Revolving line of credit, period of extension of maturity (in years) | 6 months | |||||
Revolving line of credit, extension fee as a percentage of commitment amount | 0.075% | |||||
2018 Wells Fargo and KeyBank syndicate | Minimum | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Facility fee (as a percent) | 0.15% | |||||
2018 Wells Fargo and KeyBank syndicate | Minimum | LIBOR | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.20% | |||||
2018 Wells Fargo and KeyBank syndicate | Minimum | LIBOR | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.05% | |||||
2018 Wells Fargo and KeyBank syndicate | Maximum | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Facility fee (as a percent) | 0.30% | |||||
2018 Wells Fargo and KeyBank syndicate | Maximum | LIBOR | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.70% | |||||
2018 Wells Fargo and KeyBank syndicate | Maximum | LIBOR | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.50% | |||||
Investment grade rated | Minimum | LIBOR | Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 0.85% | |||||
Investment grade rated | Minimum | LIBOR | Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 0.80% | |||||
Investment grade rated | Minimum | LIBOR | Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.35% | |||||
Investment grade rated | Maximum | LIBOR | Term Loan Due 2023 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.65% | |||||
Investment grade rated | Maximum | LIBOR | Term Loan Due 2024 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.65% | |||||
Investment grade rated | Maximum | LIBOR | Term Loan Due 2026 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 2.25% | |||||
Investment grade rated | 2018 Wells Fargo and KeyBank syndicate | Minimum | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Facility fee (as a percent) | 0.125% | |||||
Investment grade rated | 2018 Wells Fargo and KeyBank syndicate | Minimum | LIBOR | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 0.90% | |||||
Investment grade rated | 2018 Wells Fargo and KeyBank syndicate | Minimum | LIBOR | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 0.825% | |||||
Investment grade rated | 2018 Wells Fargo and KeyBank syndicate | Maximum | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Facility fee (as a percent) | 0.30% | |||||
Investment grade rated | 2018 Wells Fargo and KeyBank syndicate | Maximum | LIBOR | Unsecured credit facility term loan due 2021 | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.75% | |||||
Investment grade rated | 2018 Wells Fargo and KeyBank syndicate | Maximum | LIBOR | Unsecured credit facility revolving line of credit | ||||||
Term Loans and Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread (as a percent) | 1.55% |
Debt - Summary of Unsecured Ter
Debt - Summary of Unsecured Term Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jul. 17, 2019 | Dec. 31, 2018 | Nov. 20, 2018 | Jan. 03, 2017 |
Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Term of debt issuance | 7 years | ||||
Principal amount | $ 200,000 | ||||
Additional borrowing capacity | 100,000 | ||||
Maximum borrowing capacity | $ 300,000 | ||||
Term Loan Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Term of debt issuance | 5 years | ||||
Principal amount | $ 120,000 | ||||
Additional borrowing capacity | $ 130,000 | ||||
Term Loan Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Term of debt issuance | 7 years | ||||
Principal amount | $ 150,000 | ||||
Additional borrowing capacity | 100,000 | ||||
Term Loan Due 2024 and Term Loan Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 500,000 | ||||
LIBOR | Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Reference rate for variable interest rate | LIBOR | ||||
Variable interest rate spread (as a percent) | 1.20% | 1.20% | |||
LIBOR | Term Loan Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.20% | ||||
LIBOR | Term Loan Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.50% | ||||
LIBOR | Term Loan Due 2024 and Term Loan Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Reference rate for variable interest rate | LIBOR | ||||
Minimum | LIBOR | Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.20% | 1.20% | |||
Minimum | LIBOR | Term Loan Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.20% | 1.20% | |||
Minimum | LIBOR | Term Loan Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.50% | 1.50% | |||
Maximum | LIBOR | Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.85% | 1.85% | |||
Maximum | LIBOR | Term Loan Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.70% | 1.70% | |||
Maximum | LIBOR | Term Loan Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 2.20% | 2.20% | |||
Investment grade rated | Minimum | LIBOR | Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 0.85% | ||||
Investment grade rated | Minimum | LIBOR | Term Loan Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 0.80% | ||||
Investment grade rated | Minimum | LIBOR | Term Loan Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.35% | ||||
Investment grade rated | Maximum | LIBOR | Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.65% | ||||
Investment grade rated | Maximum | LIBOR | Term Loan Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.65% | ||||
Investment grade rated | Maximum | LIBOR | Term Loan Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate spread (as a percent) | 2.25% |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Long-term Debt, Fiscal Year Maturity | ||
2019 | $ 613 | |
2020 | 2,510 | |
2021 | 352,626 | |
2022 | 50,678 | |
2023 | 231,758 | |
Thereafter | 1,001,348 | |
Total | $ 1,639,533 | |
Long-term Debt, Weighted Average Interest Rate | ||
2019 | 4.34% | |
2020 | 4.35% | |
2021 | 3.47% | |
2022 | 4.00% | |
2023 | 4.06% | |
Thereafter | 3.97% | |
Total | 3.88% | |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Discount, net of accumulated amortization | $ (504) | $ (536) |
Capitalized loan fees, net of accumulated amortization | (272) | (369) |
Unsecured term loans | ||
Debt Instrument [Line Items] | ||
Capitalized loan fees, net of accumulated amortization | (3,746) | |
Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Discount, net of accumulated amortization | (645) | (734) |
Capitalized loan fees, net of accumulated amortization | $ (3,281) | $ (2,904) |
Long-term Debt, Weighted Average Interest Rate | ||
Total | 4.27% | 4.19% |
Consolidated indebtedness | ||
Debt Instrument [Line Items] | ||
Weighted average years to maturity | 5 years | |
Fixed rate debt | ||
Long-term Debt, Fiscal Year Maturity | ||
2019 | $ 613 | |
2020 | 2,510 | |
2021 | 352,626 | |
2022 | 26,678 | |
2023 | 231,758 | |
Thereafter | 1,001,348 | |
Total | $ 1,615,533 | |
Long-term Debt, Weighted Average Interest Rate | ||
2019 | 4.34% | |
2020 | 4.35% | |
2021 | 3.47% | |
2022 | 4.81% | |
2023 | 4.06% | |
Thereafter | 3.97% | |
Total | 3.89% | |
Fixed rate debt | Mortgages payable | ||
Debt Instrument [Line Items] | ||
Weighted average years to maturity | 5 years 4 months 24 days | 4 years 6 months |
Long-term Debt, Fiscal Year Maturity | ||
2019 | $ 613 | |
2020 | 2,510 | |
2021 | 2,626 | |
2022 | 26,678 | |
2023 | 31,758 | |
Thereafter | 31,348 | |
Total | $ 95,533 | $ 205,450 |
Long-term Debt, Weighted Average Interest Rate | ||
Total | 4.37% | 4.65% |
Fixed rate debt | Unsecured term loans | ||
Long-term Debt, Fiscal Year Maturity | ||
2019 | $ 0 | |
2020 | 0 | |
2021 | 250,000 | |
2022 | 0 | |
2023 | 200,000 | |
Thereafter | 270,000 | |
Total | 720,000 | |
Fixed rate debt | Unsecured notes payable | ||
Long-term Debt, Fiscal Year Maturity | ||
2019 | 0 | |
2020 | 0 | |
2021 | 100,000 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 700,000 | |
Total | $ 800,000 | |
Variable rate debt | ||
Long-term Debt, Weighted Average Interest Rate | ||
2019 | 0.00% | |
2020 | 0.00% | |
2021 | 0.00% | |
2022 | 3.09% | |
2023 | 0.00% | |
Thereafter | 0.00% | |
Total | 3.09% | |
Variable rate debt | Unsecured revolving line of credit | ||
Long-term Debt, Fiscal Year Maturity | ||
2019 | $ 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 24,000 | |
2023 | 0 | |
Thereafter | 0 | |
Total | $ 24,000 | |
4.12% Notes Due 2021 | Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.12% | 4.12% |
4.58% Notes Due 2024 | Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.58% | 4.58% |
4.00% Notes Due 2025 | Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.00% | 4.00% |
4.08% Notes Due 2026 | Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.08% | 4.08% |
4.24% Notes Due 2028 | Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.24% | 4.24% |
Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | ||
Debt Instrument [Line Items] | ||
Variable rate debt swapped to fixed rate | $ 250,000 | |
Fixed interest rate (as a percent) | 2.00% | |
Two $100,000 interest rate swaps maturing in 2023 | ||
Debt Instrument [Line Items] | ||
Variable rate debt swapped to fixed rate | $ 200,000 | |
Fixed interest rate (as a percent) | 2.85% | |
Three $40,000 interest rate swaps maturing in 2024 | ||
Debt Instrument [Line Items] | ||
Variable rate debt swapped to fixed rate | $ 120,000 | |
Fixed interest rate (as a percent) | 1.68% | |
Three $50,000 interest rate swaps maturing in 2026 | ||
Debt Instrument [Line Items] | ||
Variable rate debt swapped to fixed rate | $ 150,000 | |
Fixed interest rate (as a percent) | 1.77% | |
LIBOR | Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | ||
Debt Instrument [Line Items] | ||
Reference rate for variable interest rate | LIBOR | |
Variable interest rate spread (as a percent) | 1.20% | |
LIBOR | Two $100,000 interest rate swaps maturing in 2023 | ||
Debt Instrument [Line Items] | ||
Reference rate for variable interest rate | LIBOR | |
Variable interest rate spread (as a percent) | 1.20% | |
LIBOR | Three $40,000 interest rate swaps maturing in 2024 | ||
Debt Instrument [Line Items] | ||
Reference rate for variable interest rate | LIBOR | |
Variable interest rate spread (as a percent) | 1.20% | |
LIBOR | Three $50,000 interest rate swaps maturing in 2026 | ||
Debt Instrument [Line Items] | ||
Reference rate for variable interest rate | LIBOR | |
Variable interest rate spread (as a percent) | 1.50% |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Details) $ in Thousands | Sep. 30, 2019USD ($)instrument | Aug. 15, 2019USD ($)instrument | Dec. 31, 2018USD ($)instrument | Nov. 23, 2018USD ($)instrument | Dec. 29, 2017USD ($)instrument |
Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | |||||
Derivative [Line Items] | |||||
Notional | $ 250,000 | ||||
Fixed interest rate (as a percent) | 2.00% | ||||
Two $100,000 interest rate swaps maturing in 2023 | |||||
Derivative [Line Items] | |||||
Notional | $ 200,000 | ||||
Fixed interest rate (as a percent) | 2.85% | ||||
Three $40,000 interest rate swaps maturing in 2024 | |||||
Derivative [Line Items] | |||||
Notional | $ 120,000 | ||||
Fixed interest rate (as a percent) | 1.68% | ||||
Three $50,000 interest rate swaps maturing in 2026 | |||||
Derivative [Line Items] | |||||
Notional | $ 150,000 | ||||
Fixed interest rate (as a percent) | 1.77% | ||||
Cash flow hedges | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Number of instruments | instrument | 11 | 5 | |||
Amount expected to be reclassified to interest expense over the next 12 months | $ 3,555 | ||||
Notional | $ 720,000 | $ 450,000 | |||
Cash flow hedges | Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | |||||
Derivative [Line Items] | |||||
Number of instruments | instrument | 3 | ||||
Notional | $ 250,000 | ||||
Fixed interest rate (as a percent) | 2.00% | ||||
Cash flow hedges | Two $100,000 interest rate swaps maturing in 2023 | |||||
Derivative [Line Items] | |||||
Number of instruments | instrument | 2 | ||||
Notional | $ 200,000 | ||||
Fixed interest rate (as a percent) | 2.85% | ||||
Cash flow hedges | Three $40,000 interest rate swaps maturing in 2024 | |||||
Derivative [Line Items] | |||||
Number of instruments | instrument | 3 | ||||
Notional | $ 120,000 | ||||
Fixed interest rate (as a percent) | 1.68% | ||||
Cash flow hedges | Three $50,000 interest rate swaps maturing in 2026 | |||||
Derivative [Line Items] | |||||
Number of instruments | instrument | 3 | ||||
Notional | $ 150,000 | ||||
Fixed interest rate (as a percent) | 1.77% | ||||
LIBOR | Two $100,000 and one $50,000 interest rate swaps maturing in 2021 | |||||
Derivative [Line Items] | |||||
Reference rate for variable interest rate | LIBOR | ||||
LIBOR | Two $100,000 interest rate swaps maturing in 2023 | |||||
Derivative [Line Items] | |||||
Reference rate for variable interest rate | LIBOR | ||||
LIBOR | Three $40,000 interest rate swaps maturing in 2024 | |||||
Derivative [Line Items] | |||||
Reference rate for variable interest rate | LIBOR | ||||
LIBOR | Three $50,000 interest rate swaps maturing in 2026 | |||||
Derivative [Line Items] | |||||
Reference rate for variable interest rate | LIBOR | ||||
LIBOR | Cash flow hedges | |||||
Derivative [Line Items] | |||||
Reference rate for variable interest rate | one-month floating rate LIBOR |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Interest rate swaps - Cash flow hedges $ in Thousands | Sep. 30, 2019USD ($)instrument | Dec. 31, 2018USD ($)instrument |
Derivative [Line Items] | ||
Number of instruments | instrument | 11 | 5 |
Notional | $ | $ 720,000 | $ 450,000 |
Derivatives - Estimated Fair Va
Derivatives - Estimated Fair Value (Details) - Interest rate swaps - Cash flow hedges - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | $ 0 | $ 2,324 |
Fair value of derivative liability | $ 18,495 | $ 3,846 |
Derivatives - Effect on Stateme
Derivatives - Effect on Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Interest expense presented in the Statements of Operations in which the effects of cash flow hedges are recorded | $ 25,084 | $ 21,336 | $ 59,877 | $ 56,918 |
Interest rate swaps | Cash flow hedges | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Amount of loss (gain) recognized in other comprehensive income on derivative | 7,159 | (1,336) | 16,760 | (5,141) |
Amount of loss (gain) reclassified from AOCI into income | 7 | (473) | (213) | (665) |
Interest expense presented in the Statements of Operations in which the effects of cash flow hedges are recorded | $ 25,084 | $ 21,336 | $ 59,877 | $ 56,918 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Maximum authorized amount for stock repurchases | $ 500,000 | ||
Amount paid for shares repurchased | 0 | $ 20,681 | |
Remaining authorized repurchase amount | $ 189,105 | ||
2015 Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of common shares repurchased | 2,567 | 0 | 2,567 |
Average repurchase price per share | $ 12.13 | $ 12.13 | |
Amount paid for shares repurchased | $ 31,194 | $ 31,194 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Numerator: | |||||||
Net (loss) income attributable to common shareholders | $ (28,153) | $ 12,834 | $ 16,225 | $ 65,496 | |||
Earnings allocated to unvested restricted shares | (105) | (81) | (295) | (253) | |||
Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ (28,258) | $ 12,753 | $ 15,930 | $ 65,243 | |||
Denominator for (loss) earnings per common share – basic: | |||||||
Weighted average number of common shares outstanding | 212,995 | 218,808 | 212,932 | 218,879 | |||
Effect of dilutive securities: | |||||||
Stock options | 0 | 0 | 0 | 0 | |||
RSUs | 0 | 213 | 124 | 398 | |||
Denominator for (loss) earnings per common share – diluted: | |||||||
Weighted average number of common and common equivalent shares outstanding | 212,995 | 219,021 | 213,056 | 219,277 | |||
Earnings Per Share, Other Disclosures | |||||||
Weighted average number of shares of restricted common stock | 661 | 521 | 641 | 541 | |||
Antidilutive Securities Excluded from Computation of Earnings per Share [Line Items] | |||||||
Number of outstanding options to purchase shares of common stock | 22 | 28 | 22 | 28 | 22 | 28 | |
Weighted average exercise price of outstanding options (in dollars per share) | $ 17.34 | $ 18.98 | $ 17.34 | $ 18.98 | $ 17.34 | $ 18.98 | |
Restricted shares | |||||||
Earnings Per Share, Other Disclosures | |||||||
Unvested restricted common stock | 660 | 521 | 660 | 521 | 660 | 521 | 440 |
Stock options | |||||||
Antidilutive Securities Excluded from Computation of Earnings per Share [Line Items] | |||||||
Number of outstanding options to purchase shares of common stock that would be anti-dilutive | 18 | 24 | |||||
Weighted average exercise price of outstanding options excluded from diluted EPS calculation (in dollars per share) | $ 18.58 | $ 20.19 | |||||
RSUs | |||||||
Earnings Per Share, Other Disclosures | |||||||
Unvested restricted common stock | 839 | 839 | 839 | 649 | |||
Antidilutive Securities Excluded from Computation of Earnings per Share [Line Items] | |||||||
Number of RSUs eligible for future conversion | 839 | 649 | 839 | 649 | 839 | 649 | |
Weighted average number of RSUs | 839 | 649 | 836 | 661 |
Provision for Impairment of I_3
Provision for Impairment of Investment Properties - Impairment Indicators (Details) - property | Sep. 30, 2019 | Sep. 30, 2018 |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Number of properties for which indicators of impairment were identified | 2 | 2 |
Number of properties for which an impairment charge was recorded | 1 | 0 |
Number of properties held for sale with impairment indicators but not impaired | 0 | 0 |
Remaining properties with impairment indicators but not impaired | 1 | 2 |
Weighted average percentage by which projected undiscounted cash flows exceeded carrying value for remaining properties | 20.00% | 33.00% |
Number of properties with impairment indicators which were subsequently sold | 1 |
Provision for Impairment of I_4
Provision for Impairment of Investment Properties - Impairment Charges (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)ft² | Sep. 30, 2018USD ($)ft² | Sep. 30, 2019USD ($)ft² | Sep. 30, 2018USD ($)ft² | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Provision for impairment of investment properties | $ 11,177 | $ 0 | $ 11,177 | $ 1,316 |
Estimated fair value of impaired properties as of impairment date | $ 5,300 | $ 76,871 | ||
Streets of Yorktown | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Square footage | ft² | 85,200 | 85,200 | ||
Provision for impairment of investment properties | $ 11,177 | |||
Schaumburg Towers | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Square footage | ft² | 895,400 | 895,400 | ||
Provision for impairment of investment properties | $ 1,116 | |||
CVS Pharmacy - Lawton, OK | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Square footage | ft² | 10,900 | 10,900 | ||
Provision for impairment of investment properties | $ 200 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial liabilities: | ||
Mortgages payable, net | $ 94,757 | $ 205,320 |
Unsecured notes payable, net | 796,074 | 696,362 |
Unsecured term loans, net | 716,254 | 447,367 |
Unsecured revolving line of credit | 24,000 | 273,000 |
Carrying Value | ||
Financial assets: | ||
Derivative asset | 0 | 2,324 |
Financial liabilities: | ||
Mortgages payable, net | 94,757 | 205,320 |
Unsecured notes payable, net | 796,074 | 696,362 |
Unsecured term loans, net | 716,254 | 447,367 |
Unsecured revolving line of credit | 24,000 | 273,000 |
Derivative liability | 18,495 | 3,846 |
Fair Value | ||
Financial assets: | ||
Derivative asset | 0 | 2,324 |
Financial liabilities: | ||
Mortgages payable, net | 98,917 | 208,173 |
Unsecured notes payable, net | 823,016 | 671,492 |
Unsecured term loans, net | 720,000 | 449,266 |
Unsecured revolving line of credit | 24,000 | 272,553 |
Derivative liability | $ 18,495 | $ 3,846 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 2,324 | |
Derivative liability | $ 18,495 | 3,846 |
Fair value, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2,324 | |
Derivative liability | $ 18,495 | $ 3,846 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Fair Value Measurements (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Provision for impairment | $ 11,177 | $ 0 | $ 11,177 | $ 1,316 |
Nonrecurring Fair Value Measurements | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of investment property | 5,300 | 5,300 | ||
Nonrecurring Fair Value Measurements | Fair Value, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of investment property | $ 5,300 | $ 5,300 | ||
Discount rate | Weighted average | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Input for measuring investment property | 0.0689 | 0.0689 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Disclosures (Details) $ in Thousands | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgages payable, net | $ 94,757 | $ 205,320 |
Unsecured notes payable, net | 796,074 | 696,362 |
Unsecured term loans, net | 716,254 | 447,367 |
Unsecured revolving line of credit | 24,000 | 273,000 |
Fair Value, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unsecured notes payable, net | 251,288 | 235,788 |
Fair Value, Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgages payable, net | 98,917 | 208,173 |
Unsecured notes payable, net | 571,728 | 435,704 |
Unsecured term loans, net | 720,000 | 449,266 |
Unsecured revolving line of credit | 24,000 | 272,553 |
Fair Value, Total | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgages payable, net | 98,917 | 208,173 |
Unsecured notes payable, net | 823,016 | 671,492 |
Unsecured term loans, net | 720,000 | 449,266 |
Unsecured revolving line of credit | 24,000 | 272,553 |
Unsecured notes payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unsecured notes payable, net | $ 800,000 | $ 700,000 |
Discount rate | Unsecured revolving line of credit | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.0105 | 0.0110 |
Discount rate | Minimum | Mortgages payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.034 | 0.042 |
Discount rate | Maximum | Mortgages payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.037 | 0.044 |
Discount rate | Weighted average | Unsecured notes payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.0384 | 0.0491 |
Discount rate | Weighted average | Unsecured term loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.0126 | 0.0125 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Sep. 30, 2019USD ($)property | Sep. 30, 2019USD ($)property | Sep. 30, 2018USD ($) |
Commitments and Contingencies [Line Items] | |||
Amount of letters of credit outstanding | $ 433 | $ 433 | |
Number of properties with letters of credit | property | 2 | 2 | |
Aggregate proceeds, net | $ 44,656 | $ 190,321 | |
Circle East | |||
Commitments and Contingencies [Line Items] | |||
Redevelopment costs incurred | $ 19,466 | 19,466 | |
Circle East | Minimum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 36,000 | 36,000 | |
Circle East | Maximum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 38,000 | 38,000 | |
One Loudoun Downtown - Pads G & H | |||
Commitments and Contingencies [Line Items] | |||
Redevelopment costs incurred | 6,527 | 6,527 | |
One Loudoun Downtown - Pads G & H | Minimum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 125,000 | 125,000 | |
One Loudoun Downtown - Pads G & H | Maximum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 135,000 | 135,000 | |
Carillon | |||
Commitments and Contingencies [Line Items] | |||
Redevelopment costs incurred | 4,848 | 4,848 | |
Carillon | Minimum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 194,000 | 194,000 | |
Carillon | Maximum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 215,000 | $ 215,000 | |
Circle East, air rights | |||
Commitments and Contingencies [Line Items] | |||
Aggregate proceeds, net | $ 11,820 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Subsequent Event [Line Items] | |||||
Common stock dividends declared (per share) | $ 0.165625 | $ 0.165625 | $ 0.496875 | $ 0.496875 | |
Subsequent events | Class A common stock | |||||
Subsequent Event [Line Items] | |||||
Common stock dividends declared (per share) | $ 0.165625 |