Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 | 2021 | |
Document Fiscal Period Focus | Q2 | |
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, $0.001 par value | |
Trading Symbol | RPAI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 214,797,869 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investment properties: | ||
Land | $ 1,073,449 | $ 1,075,037 |
Building and other improvements | 3,610,901 | 3,590,495 |
Developments in progress | 182,979 | 188,556 |
Gross investment properties | 4,867,329 | 4,854,088 |
Less: accumulated depreciation | (1,572,604) | (1,514,440) |
Net investment properties (includes $93,186 and $74,314 from consolidated variable interest entities, respectively) | 3,294,725 | 3,339,648 |
Cash and cash equivalents | 67,245 | 41,785 |
Accounts receivable, net | 69,494 | 73,983 |
Acquired lease intangible assets, net | 60,666 | 66,799 |
Right-of-use lease assets | 41,855 | 42,768 |
Assets associated with investment properties held for sale | 13,800 | 0 |
Other assets, net (includes $647 and $354 from consolidated variable interest entities, respectively) | 67,973 | 72,220 |
Total assets | 3,615,758 | 3,637,203 |
Liabilities: | ||
Mortgages payable, net | 90,374 | 91,514 |
Unsecured notes payable, net | 1,187,044 | 1,186,000 |
Unsecured term loans, net | 467,895 | 467,559 |
Unsecured revolving line of credit | 0 | 0 |
Accounts payable and accrued expenses | 64,912 | 78,692 |
Distributions payable | 16,110 | 12,855 |
Acquired lease intangible liabilities, net | 58,687 | 61,698 |
Lease liabilities | 84,095 | 84,628 |
Liabilities associated with investment properties held for sale | 526 | 0 |
Other liabilities (includes $3,103 and $3,890 from consolidated variable interest entities, respectively) | 62,854 | 72,127 |
Total liabilities | 2,032,497 | 2,055,073 |
Commitments and contingencies (Note 13) | ||
Equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized, none issued or outstanding | 0 | 0 |
Class A common stock | 215 | 214 |
Additional paid-in capital | 4,522,790 | 4,519,522 |
Accumulated distributions in excess of earnings | (2,921,415) | (2,910,383) |
Accumulated other comprehensive loss | (22,827) | (31,730) |
Total shareholders' equity | 1,578,763 | 1,577,623 |
Noncontrolling interests | 4,498 | 4,507 |
Total equity | 1,583,261 | 1,582,130 |
Total liabilities and equity | $ 3,615,758 | $ 3,637,203 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Net investment properties (in dollars) | $ 3,294,725 | $ 3,339,648 |
Other assets, net (in dollars) | 67,973 | 72,220 |
Other liabilities (in dollars) | $ 62,854 | $ 72,127 |
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 |
VIEs | ||
Net investment properties (in dollars) | $ 93,186 | $ 74,314 |
Other assets, net (in dollars) | 647 | 354 |
Other liabilities (in dollars) | $ 3,103 | $ 3,890 |
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 | 214,798 | 214,168 |
Common stock, shares outstanding | 214,798 | 214,168 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Lease income | $ 121,239 | $ 96,803 | $ 240,619 | $ 215,498 |
Expenses: | ||||
Operating expenses | 17,180 | 14,843 | 35,245 | 31,257 |
Real estate taxes | 17,799 | 17,916 | 36,733 | 36,449 |
Depreciation and amortization | 41,815 | 43,755 | 89,682 | 83,928 |
Provision for impairment of investment properties | 0 | 0 | 0 | 346 |
General and administrative expenses | 10,374 | 8,491 | 21,492 | 17,656 |
Total expenses | 87,168 | 85,005 | 183,152 | 169,636 |
Other (expense) income: | ||||
Interest expense | (18,776) | (19,360) | (37,528) | (36,406) |
Gain on litigation settlement | 0 | 0 | 0 | 6,100 |
Other income (expense), net | 92 | 215 | 161 | (546) |
Net income (loss) | 15,387 | (7,347) | 20,100 | 15,010 |
Net loss attributable to noncontrolling interests | 9 | 0 | 9 | 0 |
Net income (loss) attributable to common shareholders | $ 15,396 | $ (7,347) | $ 20,109 | $ 15,010 |
Earnings (loss) per common share – basic and diluted: | ||||
Net income (loss) per common share attributable to common shareholders | $ 0.07 | $ (0.04) | $ 0.09 | $ 0.07 |
Net income (loss) | $ 15,387 | $ (7,347) | $ 20,100 | $ 15,010 |
Other comprehensive income (loss): | ||||
Net unrealized gain (loss) on derivative instruments (Note 8) | 784 | 694 | 8,903 | (26,888) |
Comprehensive income (loss) | 16,171 | (6,653) | 29,003 | (11,878) |
Comprehensive loss attributable to noncontrolling interests | 9 | 0 | 9 | 0 |
Comprehensive income (loss) attributable to the Company | $ 16,180 | $ (6,653) | $ 29,012 | $ (11,878) |
Weighted average number of common shares outstanding – basic | 213,813 | 213,337 | 213,732 | 213,276 |
Weighted average number of common shares outstanding – diluted | 214,069 | 213,337 | 214,209 | 213,276 |
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 (loss) income | Total shareholders' equity | Noncontrolling interests |
Balance (in shares) at Dec. 31, 2019 | 213,600 | ||||||
Balance at Dec. 31, 2019 | $ 1,636,073 | $ 214 | $ 4,510,484 | $ (2,865,933) | $ (12,288) | $ 1,632,477 | $ 3,596 |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Net income (loss) | 15,010 | 15,010 | 15,010 | ||||
Other comprehensive income (loss) | (26,888) | (26,888) | (26,888) | ||||
Contributions from noncontrolling interests | 2,339 | 2,339 | |||||
Termination of consolidated joint ventures | 2,217 | 2,217 | (2,217) | ||||
Distributions declared to common shareholders | (35,464) | (35,464) | (35,464) | ||||
Issuance of common stock, net of offering costs (in shares) | 148 | ||||||
Issuance of restricted shares (in shares) | 624 | ||||||
Stock-based compensation expense | 4,454 | 4,454 | 4,454 | ||||
Shares withheld for employee taxes (in shares) | (119) | ||||||
Shares withheld for employee taxes | (1,439) | (1,439) | (1,439) | ||||
Balance (in shares) at Jun. 30, 2020 | 214,253 | ||||||
Balance at Jun. 30, 2020 | 1,594,085 | $ 214 | 4,515,716 | (2,886,387) | (39,176) | 1,590,367 | 3,718 |
Balance (in shares) at Mar. 31, 2020 | 214,122 | ||||||
Balance at Mar. 31, 2020 | 1,597,301 | $ 214 | 4,512,939 | (2,879,040) | (39,870) | 1,594,243 | 3,058 |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Net income (loss) | (7,347) | (7,347) | (7,347) | ||||
Other comprehensive income (loss) | 694 | 694 | 694 | ||||
Contributions from noncontrolling interests | 1,216 | 1,216 | |||||
Termination of consolidated joint ventures | 556 | 556 | (556) | ||||
Issuance of restricted shares (in shares) | 131 | ||||||
Stock-based compensation expense | 2,221 | 2,221 | 2,221 | ||||
Balance (in shares) at Jun. 30, 2020 | 214,253 | ||||||
Balance at Jun. 30, 2020 | 1,594,085 | $ 214 | 4,515,716 | (2,886,387) | (39,176) | 1,590,367 | 3,718 |
Balance (in shares) at Dec. 31, 2020 | 214,168 | ||||||
Balance at Dec. 31, 2020 | 1,582,130 | $ 214 | 4,519,522 | (2,910,383) | (31,730) | 1,577,623 | 4,507 |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Net income (loss) | 20,100 | 20,109 | 20,109 | (9) | |||
Other comprehensive income (loss) | 8,903 | 8,903 | 8,903 | ||||
Distributions declared to common shareholders | (31,141) | (31,141) | (31,141) | ||||
Issuance of common stock, net of offering costs (in shares) | 151 | ||||||
Issuance of common stock, net of offering costs | (249) | (249) | (249) | ||||
Issuance of restricted shares (in shares) | 608 | ||||||
Issuance of restricted shares | 1 | $ 1 | 1 | ||||
Stock-based compensation expense | 4,776 | 4,776 | 4,776 | ||||
Shares withheld for employee taxes (in shares) | (129) | ||||||
Shares withheld for employee taxes | (1,259) | (1,259) | (1,259) | ||||
Balance (in shares) at Jun. 30, 2021 | 214,798 | ||||||
Balance at Jun. 30, 2021 | 1,583,261 | $ 215 | 4,522,790 | (2,921,415) | (22,827) | 1,578,763 | 4,498 |
Balance (in shares) at Mar. 31, 2021 | 214,733 | ||||||
Balance at Mar. 31, 2021 | 1,581,477 | $ 215 | 4,521,067 | (2,920,701) | (23,611) | 1,576,970 | 4,507 |
Increase (decrease) in shareholders' equity [roll forward] | |||||||
Net income (loss) | 15,387 | 15,396 | 15,396 | (9) | |||
Other comprehensive income (loss) | 784 | 784 | 784 | ||||
Distributions declared to common shareholders | (16,110) | (16,110) | (16,110) | ||||
Issuance of common stock, net of offering costs | (247) | (247) | (247) | ||||
Issuance of restricted shares (in shares) | 65 | ||||||
Stock-based compensation expense | 1,970 | 1,970 | 1,970 | ||||
Balance (in shares) at Jun. 30, 2021 | 214,798 | ||||||
Balance at Jun. 30, 2021 | $ 1,583,261 | $ 215 | $ 4,522,790 | $ (2,921,415) | $ (22,827) | $ 1,578,763 | $ 4,498 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Distributions declared to common shareholders (in dollars per share) | $ 0.075 | $ 0.145 | $ 0.165625 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||||
Net income | $ 15,387 | $ (7,347) | $ 20,100 | $ 15,010 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 89,682 | 83,928 | |||
Provision for impairment of investment properties | 0 | 0 | 0 | 346 | $ 2,279 |
Amortization of loan fees and debt discount, net | 2,409 | 1,912 | |||
Amortization of stock-based compensation | 4,776 | 4,454 | |||
Payment of leasing fees and inducements | (4,067) | (4,356) | |||
Changes in accounts receivable, net | 4,334 | (17,670) | |||
Changes in right-of-use lease assets | 913 | 928 | |||
Changes in accounts payable and accrued expenses, net | (15,413) | (21,899) | |||
Changes in lease liabilities | (533) | 33 | |||
Changes in other operating assets and liabilities, net | 6,616 | 2,696 | |||
Other, net | (2,471) | (957) | |||
Net cash provided by operating activities | 106,346 | 64,425 | |||
Cash flows from investing activities: | |||||
Purchase of investment properties | 0 | (54,970) | |||
Capital expenditures and tenant improvements | (20,070) | (30,778) | |||
Proceeds from sales of investment properties | 0 | 11,369 | |||
Investment in developments in progress | (29,943) | (32,499) | |||
Net cash used in investing activities | (50,013) | (106,878) | |||
Cash flows from financing activities: | |||||
Principal payments on mortgages payable | (1,194) | (1,242) | |||
Proceeds from unsecured revolving line of credit | 7,000 | 937,704 | |||
Repayments of unsecured revolving line of credit | (7,000) | (820,704) | |||
Payment of loan fees and deposits | (3) | (151) | |||
Distributions paid | (27,886) | (70,851) | |||
Other, net | (1,458) | 900 | |||
Net cash (used in) provided by financing activities | (30,541) | 45,656 | |||
Net increase in cash, cash equivalents and restricted cash | 25,792 | 3,203 | |||
Cash, cash equivalents and restricted cash, at beginning of period | 45,329 | 14,447 | 14,447 | ||
Cash, cash equivalents and restricted cash, at end of period | 71,121 | 17,650 | 71,121 | 17,650 | 45,329 |
Supplemental cash flow disclosure, including non-cash activities: | |||||
Cash paid for interest, net of interest capitalized | 36,237 | 34,234 | |||
Cash paid for amounts included in the measurement of operating lease liabilities | 2,972 | 2,505 | |||
Distributions payable | 16,110 | 0 | 16,110 | 0 | 12,855 |
Accrued capital expenditures and tenant improvements | 4,577 | 8,938 | |||
Accrued leasing fees and inducements | 2,523 | 1,127 | |||
Accrued redevelopment costs | 1,937 | 2,531 | |||
Amounts reclassified to developments in progress | 0 | 305 | |||
Developments in progress placed in service | 36,053 | 0 | |||
Change in noncontrolling interest due to termination of joint ventures | 0 | 2,217 | |||
Lease liabilities arising from obtaining right-of-use lease assets | 0 | 383 | |||
Purchase of investment properties (after credits at closing): | |||||
Net investment properties | 0 | (58,760) | |||
Right-of-use lease assets | 0 | 5,999 | |||
Accounts receivable, acquired lease intangibles and other assets | 0 | (1,801) | |||
Lease liabilities | 0 | (5,942) | |||
Accounts payable, acquired lease intangibles and other liabilities | 0 | 5,534 | |||
Purchase of investment properties (after credits at closing) | 0 | (54,970) | |||
Proceeds from sales of investment properties: | |||||
Net investment properties | 0 | 11,307 | |||
Accounts receivable, acquired lease intangibles and other assets | 0 | 167 | |||
Accounts payable, acquired lease intangibles and other liabilities | 0 | (105) | |||
Proceeds from sales of investment properties | 0 | 11,369 | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||||
Cash and cash equivalents, at beginning of period | 41,785 | 9,989 | 9,989 | ||
Restricted cash, at beginning of period (included within “Other assets, net”) | 3,544 | 4,458 | 4,458 | ||
Cash, cash equivalents and restricted cash, at beginning of period | 45,329 | 14,447 | 14,447 | ||
Cash and cash equivalents, at end of period | 67,245 | 12,563 | 67,245 | 12,563 | 41,785 |
Restricted cash, at end of period (included within “Other assets, net”) | 3,876 | 5,087 | 3,876 | 5,087 | 3,544 |
Cash, cash equivalents and restricted cash, at end of period | $ 71,121 | $ 17,650 | $ 71,121 | $ 17,650 | $ 45,329 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021, the Company owned 100 retail operating properties in the United States. On July 18, 2021, the Company entered into a definitive Agreement and Plan of Merger (Merger Agreement) with Kite Realty Group Trust (Kite) and KRG Oak, LLC, a wholly owned subsidiary of Kite (Merger Sub). Upon the terms and subject to the conditions set forth in the Merger Agreement, the Company will merge with and into Merger Sub, with Merger Sub surviving the merger (Merger). At the effective time of the Merger (Effective Time), each share of Class A common stock of the Company issued and outstanding immediately prior to the Effective Time will be converted into the right to receive 0.623 common shares of Kite, plus the right, if any, to receive cash in lieu of fractional common shares of Kite. During the period from the date of the Merger Agreement until the completion of the Merger, the Company is subject to certain restrictions on its ability to engage with third parties regarding alternative acquisition proposals and on the conduct of the Company’s business. The board of directors of the Company and the board of trustees of Kite each have unanimously approved the transaction. The closing of the Merger is expected to occur in the fourth quarter of 2021, subject to the satisfaction of certain closing conditions, including the approval of both Kite’s and the Company’s shareholders. There can be no assurance that the Merger will be completed on the terms or timeline currently contemplated or at all. 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 (i) the reserve for uncollectible lease income, (ii) provision for impairment, including estimates of holding periods, capitalization rates and discount rates (where applicable), and (iii) 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 the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 205, Presentation of Financial Statements , certain prior year balances in the accompanying condensed consolidated statements of cash flows have been reclassified in order to conform to the current period presentation. Specifically, for the six months ended June 30, 2020, the reserve for bad debt of $13,977 has been presented as a component of “Changes in accounts receivable, net” rather than the previous presentation where it was included as a single line item, “Reserve for bad debt” within “Cash flows from operating activities.” There has been no change to “Net cash provided by operating activities” for the six months ended June 30, 2020 as a result of this reclassification. All dollar amounts and share 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 June 30, 2021 is summarized below: Property Count Retail operating properties (a) 100 Expansion and redevelopment projects: Circle East 1 One Loudoun Downtown – Pads G & H (b) — Carillon 1 The Shoppes at Quarterfield 1 Total number of properties 103 (a) Excludes two retail operating properties classified as held for sale as of June 30, 2021. (b) 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 | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESRefer to the Company’s 2020 Annual Report on Form 10-K for a summary of its significant accounting policies. There have been no changes to the Company’s significant accounting policies in the six months ended June 30, 2021. |
Acquisitions and Developments i
Acquisitions and Developments in Progress | 6 Months Ended |
Jun. 30, 2021 | |
Asset Acquisition [Abstract] | |
Acquisitions and Developments in Progress | ACQUISITIONS AND DEVELOPMENTS IN PROGRESS Acquisitions The Company did not acquire any properties during the six months ended June 30, 2021. The Company closed on the following acquisition during the six months ended June 30, 2020: Date Property Name Metropolitan Property Type Square Acquisition February 6, 2020 Fullerton Metrocenter Los Angeles Fee interest (a) 154,700 $ 55,000 154,700 $ 55,000 (b) (a) The Company acquired the fee interest in an existing multi-tenant retail operating property. In connection with this acquisition, the Company also assumed the lessor position in a ground lease with a shadow anchor. (b) Acquisition price does not include capitalized closing costs and adjustments totaling $240. The following table summarizes the acquisition date values, before prorations, the Company recorded in conjunction with the acquisition discussed above: Six Months Ended June 30, 2020 Land $ 57,137 Building and other improvements, net 1,623 Acquired lease intangible assets (a) 2,014 Acquired lease intangible liabilities (b) (5,534) Net assets acquired $ 55,240 (a) The weighted average amortization period for acquired lease intangible assets is 17 years for the acquisition completed during the six months ended June 30, 2020. (b) The weighted average amortization period for acquired lease intangible liabilities is 17 years for the acquisition completed during the six months ended June 30, 2020. The acquisition was funded using a combination of available cash on hand, proceeds from dispositions and proceeds from the Company’s unsecured revolving line of credit. The acquisition completed during 2020 was considered an asset acquisition and, as such, transaction costs were capitalized upon closing. In addition, the Company capitalized $771 and $1,487 of internal salaries and related benefits of personnel directly involved in capital upgrades and tenant improvements during the three and six months ended June 30, 2021, respectively, and $641 and $1,267 during the three and six months ended June 30, 2020, respectively. The Company also capitalized internal leasing incentives of $106 and $163 during the three and six months ended June 30, 2021, respectively, and $42 and $102 during the three and six months ended June 30, 2020, respectively, all of which were incremental to signed leases. Subsequent to June 30, 2021, the Company acquired Arcadia Village, a 37,000 square foot multi-tenant retail operating property located in the Phoenix MSA, for a gross purchase price of $21,000. Developments in Progress The carrying amount of the Company’s developments in progress are as follows: Property Name MSA June 30, 2021 December 31, 2020 Expansion and redevelopment projects Circle East (a) Baltimore $ 34,336 $ 38,180 One Loudoun Downtown (b) Washington, D.C. 86,030 89,103 Carillon Washington, D.C. 33,660 33,463 The Shoppes at Quarterfield Baltimore 1,349 865 Pad development projects Southlake Town Square Dallas 2,154 1,495 157,529 163,106 Land held for future development One Loudoun Uptown Washington, D.C. 25,450 25,450 Total developments in progress $ 182,979 $ 188,556 (a) During the six months ended June 30, 2021, 10,500 square feet of the project’s gross leasable area were placed in service and reclassified into “Land” and “Building and other improvements” in the accompanying condensed consolidated balance sheets. (b) During the three months ended June 30, 2021, the 99 multi-family rental units at One Loudoun Downtown – Pad G were placed in service and reclassified into “Land” and “Building and other improvements” in the accompanying condensed consolidated balance sheets. In response to macroeconomic conditions related to the novel coronavirus (COVID-19) pandemic, the Company halted plans for vertical construction at its Carillon redevelopment during 2020 and materially reduced the planned scope and spend for the project. During the three months ended June 30, 2021, the Company announced plans to commence construction on a medical office building at Carillon in the second half of 2021. The Company capitalized $2,020 and $3,831 of indirect project costs related to redevelopment projects during the three and six months ended June 30, 2021, including, among other costs, $359 and $768 of internal salaries and related benefits of personnel directly involved in the redevelopment projects and $1,254 and $2,546 of interest, respectively. The Company capitalized $1,347 and $2,663 of indirect project costs related to redevelopment projects during the three and six months ended June 30, 2020, including, among other costs, $329 and $701 of internal salaries and related benefits of personnel directly involved in the redevelopment projects and $736 and $1,521 of interest, respectively. Variable Interest Entities As of June 30, 2021, the Company had one joint venture related to the development, ownership and operation of the multi-family rental portion of the expansion project at One Loudoun Downtown – Pads G & H, of which joint venture the Company owns 90%. The joint venture is considered a VIE primarily because the Company’s joint venture partner does 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 the joint venture. As such, the Company has consolidated the joint venture and presented the joint venture partner’s interest as noncontrolling interests. As of June 30, 2021 and December 31, 2020, the Company recorded the following related to the One Loudoun Downtown – Pads G & H consolidated joint venture: One Loudoun Downtown – Pads G & H June 30, 2021 December 31, 2020 Net investment properties $ 93,186 $ 74,314 Other assets, net $ 647 $ 354 Other liabilities $ 3,103 $ 3,890 Noncontrolling interests $ 4,498 $ 4,507 As of June 30, 2021, the Company has funded $4,580 of the partner’s development costs related to One Loudoun Downtown – Pads G & H through a loan provided by the Company to the joint venture. The loan, secured by the joint venture project, is required to be repaid subsequent to the completion of construction and stabilization of the project and is eliminated upon consolidation. Under terms defined in the joint venture agreement, after construction completion and stabilization of the 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 joint venture at fair value. During the six months ended June 30, 2021, a $9 loss was attributed to the noncontrolling interests. There was no income attributed to the noncontrolling interests during the six months ended June 30, 2020. |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | DISPOSITIONS The Company did not sell any properties during the six months ended June 30, 2021. The Company closed on the following disposition during the six months ended June 30, 2020: Date Property Name Property Type Square Consideration Aggregate Gain February 13, 2020 King Philip’s Crossing Multi-tenant retail 105,900 $ 13,900 $ 11,343 $ — 105,900 $ 13,900 $ 11,343 $ — (a) Aggregate proceeds are net of transaction costs and exclude $26 of condemnation proceeds, which did not result in recognition of a gain. The disposition completed during the six months ended June 30, 2020 did not qualify for discontinued operations treatment and is not considered individually significant. As of June 30, 2021, the Company had entered into contracts to sell (i) Streets of Yorktown, an 85,200 square foot multi-tenant retail operating property located in Houston, Texas, and (ii) HQ Shopping Center, a 116,400 square foot multi-tenant retail operating property located in San Antonio, Texas. These properties qualified for held for sale accounting treatment upon meeting all applicable GAAP criteria during the quarter ended June 30, 2021, at which time depreciation and amortization were ceased. In addition, the assets and liabilities associated with these properties are separately classified as held for sale in the accompanying condensed consolidated balance sheet as of June 30, 2021. No properties qualified for held for sale accounting treatment as of December 31, 2020. The following table presents the assets and liabilities associated with the investment properties classified as held for sale: June 30, 2021 Assets Land, building and other improvements $ 22,173 Less: accumulated depreciation (8,778) Net investment properties 13,395 Other assets 405 Assets associated with investment properties held for sale $ 13,800 Liabilities Other liabilities $ 526 Liabilities associated with investment properties held for sale $ 526 |
Equity Compensation Plans
Equity Compensation Plans | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021: Unvested Weighted Average Balance as of January 1, 2021 685 $ 10.81 Shares granted (a) 608 $ 11.31 Shares vested (389) $ 10.27 Balance as of June 30, 2021 (b) 904 $ 11.38 (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 June 30, 2021, total unrecognized compensation expense related to unvested restricted shares was $3,661, which is expected to be amortized over a weighted average term of 1.3 years. The following table summarizes the Company’s unvested performance restricted stock units (RSUs) as of and for the six months ended June 30, 2021: Unvested Weighted Average RSUs eligible for future conversion as of January 1, 2021 974 $ 12.81 RSUs granted (a) 452 $ 10.06 Conversion of RSUs to common stock and restricted shares (b) (260) $ 14.39 RSUs eligible for future conversion as of June 30, 2021 (c) 1,166 $ 11.39 (a) Assumptions and inputs as of the grant date included a risk-free interest rate of 0.16%, 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 projected common stock dividend yield of 4.08%. Subject to continued employment, in 2024, following the performance period which concludes on December 31, 2023, 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 8, 2021, 260 RSUs converted into 102 shares of common stock and 197 restricted shares that will vest on December 31, 2021, subject to continued employment through such date, after applying a conversion rate of 115% 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, 2020. An additional 49 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 June 30, 2021, total unrecognized compensation expense related to unvested RSUs was $7,110, which is expected to be amortized over a weighted average term of 2.1 years. During the three months ended June 30, 2021 and 2020, the Company recorded compensation expense of $1,970 and $2,221, respectively, related to the amortization of unvested restricted shares and RSUs. During the six months ended June 30, 2021 and 2020, the Company recorded compensation expense of $4,776 and $4,454, respectively, related to the amortization of unvested restricted shares and RSUs. The total fair value of restricted shares that vested during the six months ended June 30, 2021 was $4,078. In addition, the total fair value of RSUs that converted into common stock during the six months ended June 30, 2021 was $1,002. 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 June 30, 2021 and 2020, options to purchase 10 and 16 shares of common stock, respectively, remained outstanding and exercisable. The Company did not grant any options in 2021 or 2020 and no compensation expense related to stock options was recorded during the six months ended June 30, 2021 and 2020. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | LEASES Leases as Lessor Lease income related to the Company’s operating leases is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease income related to fixed and variable lease payments Base rent (a) (b) $ 87,944 $ 90,670 $ 174,018 $ 181,103 Percentage and specialty rent (c) 633 450 1,157 1,325 Tenant recoveries (b) (c) 24,413 23,823 50,441 49,565 Lease termination fee income (c) 759 252 1,438 376 Other lease-related income (c) 1,468 1,044 2,777 2,549 Straight-line rental income, net (d) 787 (1,284) 1,207 (943) Other Uncollectible lease income, net (e) 4,773 (19,495) 8,317 (20,377) Amortization of above and below market lease intangibles and lease inducements 462 1,343 1,264 1,900 Lease income $ 121,239 $ 96,803 $ 240,619 $ 215,498 (a) Base rent primarily consists of fixed lease payments; however, it also includes the net impact of variable lease payments related to lease concessions granted as relief due to COVID-19 in accordance with the Company’s policy elections related to the accounting treatment of such lease concessions. The impact of these lease concessions includes an increase of $905 and $0 for the three months ended June 30, 2021 and 2020, respectively, and $2,146 and $0 for the six months ended June 30, 2021 and 2020, respectively, in base rent related to the repayment of amounts previously deferred under lease concessions that did not meet deferral accounting treatment; as a result, lease income was reduced for the deferral in previous periods, however recognized as variable lease income upon receipt of payment, partially offset by a decrease of $700 and $28 for the three months ended June 30, 2021 and 2020, respectively, and more than offset by $3,309 and $28 for the six months ended June 30, 2021 and 2020, respectively, in base rent related to executed lease concession agreements that did not meet deferral accounting treatment and for which payment has not been received. Of the aggregate $700 and $3,309 decrease from lease concession agreements, $310 and $1,585 were associated with billed base rent from prior periods for the three and six months ended June 30, 2021, respectively. (b) Base rent and tenant recoveries are presented gross of any uncollected amounts related to cash-basis tenants. Such uncollected amounts are reflected within “Uncollectible lease income, net.” (c) Represents lease income related to variable lease payments. (d) Represents lease income related to fixed lease payments. Straight-line rental income, net includes changes in the reserve for straight-line receivables related to tenants accounted for on the cash basis of $484 and $(1,636) for the three months ended June 30, 2021 and 2020, respectively, and $(2,127) and $(2,671) for the six months ended June 30, 2021 and 2020, respectively. (e) Uncollectible lease income, net includes (i) the change in reserve related to receivables associated with tenants accounted for on the cash basis of accounting, (ii) the impact of executed lease concessions that did not meet deferral accounting treatment, however, were agreed in previous periods; as a result, the impact of these anticipated concessions was included within the reserve for uncollectible lease income until executed, (iii) the net change in the general reserve for those receivables that are not considered probable of collection, and (iv) the estimated impact for lease concessions that have been agreed in principle with the tenant that are not expected to meet deferral accounting treatment, however, such agreements were not executed as of period end. In response to COVID-19 and its related impact on many of the Company’s tenants, the Company reached agreements with tenants regarding lease concessions. The majority of the amounts addressed by the lease concessions are base rent, although certain concessions also address tenant recoveries and other charges. The majority of these concessions were agreed to and, in the majority of these circumstances, executed during the year ended December 31, 2020. As of June 30, 2021, the Company has agreed in principle and/or executed additional lease concessions to defer, without an extension of the lease term, $54 of previously uncollected base rent charges and to address an additional $694 of previously uncollected base rent charges through abatement, a combination of deferral and abatement or a concession with the extension of the lease term. As of June 30, 2021, $3,771 of executed lease concessions to defer rental payment without an extension of the lease term, net of related reserves, remain outstanding within “Accounts receivable, net” in the accompanying condensed consolidated balance sheets. Further, as of June 30, 2021, the amounts that have been deferred to future periods under executed lease concessions, on a weighted average basis, will be received over a period of approximately six months. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 Balance Weighted Weighted Balance Weighted Weighted Fixed rate mortgages payable (a) $ 90,962 4.37 % 3.5 $ 92,156 4.36 % 4.1 Discount, net of accumulated amortization (428) (450) Capitalized loan fees, net of accumulated amortization (160) (192) Mortgages payable, net $ 90,374 $ 91,514 (a) The fixed rate mortgages had interest rates ranging from 3.75% to 4.82% as of June 30, 2021 and December 31, 2020. During the six months ended June 30, 2021, the Company made scheduled principal payments of $1,194 related to amortizing loans. Unsecured Notes Payable The following table summarizes the Company’s unsecured notes payable: June 30, 2021 December 31, 2020 Unsecured Notes Payable Maturity Date Balance Interest Rate/ Balance Interest Rate/ 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 350,000 4.00 % 350,000 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 % 100,000 4.82 % Senior notes – 4.75% due 2030 September 15, 2030 400,000 4.75 % 400,000 4.75 % 1,200,000 4.42 % 1,200,000 4.42 % Discount, net of accumulated amortization (6,044) (6,473) Capitalized loan fees, net of accumulated amortization (6,912) (7,527) Total $ 1,187,044 $ 1,186,000 Unsecured Term Loans and Revolving Line of Credit The following table summarizes the Company’s term loans and revolving line of credit: June 30, 2021 December 31, 2020 Maturity Date Balance Interest Balance Interest Unsecured term loan due 2023 – fixed rate (a) November 22, 2023 $ 200,000 4.10 % $ 200,000 4.10 % Unsecured term loan due 2024 – fixed rate (b) July 17, 2024 120,000 2.88 % 120,000 2.88 % Unsecured term loan due 2026 – fixed rate (c) (d) July 17, 2026 150,000 3.37 % 150,000 3.37 % Subtotal 470,000 470,000 Capitalized loan fees, net of accumulated amortization (2,105) (2,441) Term loans, net $ 467,895 $ 467,559 Unsecured credit facility revolving line of credit – variable rate (e) April 22, 2022 (f) $ — 1.20 % $ — 1.25 % (a) $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 1.25% as of June 30, 2021 and December 31, 2020. (b) $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 June 30, 2021 and December 31, 2020. (c) $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 1.60% as of June 30, 2021 and December 31, 2020. (d) Subsequent to June 30, 2021, the Company amended the pricing terms of the unsecured term loan due 2026, which will bear interest at a rate of LIBOR plus a credit spread based on a leverage grid ranging from 1.20% to 1.70%. In accordance with the amended unsecured term loan agreement, the Company may elect to convert to an investment grade pricing grid. (e) Excludes capitalized loan fees, which are included within “Other assets, net” in the accompanying condensed consolidated balance sheets. (f) Subsequent to June 30, 2021, the Company entered into its sixth amended and restated unsecured credit agreement that extended the maturity date of the unsecured revolving line of credit to January 8, 2026 with the option to extend for two additional six Unsecured Credit Facility On April 23, 2018, the Company entered into its fifth amended and restated unsecured credit agreement with a syndicate of financial institutions to provide for an unsecured credit facility aggregating $1,100,000, consisting of an $850,000 unsecured revolving line of credit that matures on April 22, 2022 and a $250,000 unsecured term loan that was scheduled to mature on January 5, 2021 and was repaid during 2020 (Unsecured Credit Facility). The unsecured revolving line of credit is priced on a leverage grid at a rate of LIBOR plus a credit spread. In accordance with the unsecured credit agreement, the credit spread set forth in the leverage grid resets quarterly based on the Company’s leverage, as calculated at the previous quarter end, and the Company has the option to make an irrevocable election to convert to an investment grade pricing grid. As of June 30, 2021, 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 revolving line of credit as of June 30, 2021: Leverage-Based Pricing Investment Grade Pricing Unsecured Credit Facility Maturity Date Extension Option Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee $850,000 unsecured revolving line of credit 4/22/2022 2 six 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 $1,350,000, 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. Subsequent to June 30, 2021, the Company entered into its sixth amended and restated unsecured credit agreement with a syndicate of financial institutions to provide for an $850,000 unsecured revolving line of credit that will be priced on a leverage grid at a rate of LIBOR plus a credit spread. The following table summarizes the key terms of the sixth amended and restated unsecured credit agreement: Leverage-Based Pricing Investment Grade Pricing Sixth Amended and Restated Maturity Date Extension Option Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee $850,000 unsecured revolving line of credit 1/8/2026 2 six 0.075% 1.05%–1.50% 0.15%–0.30% 0.725%–1.40% 0.125%–0.30% The sixth amended and restated unsecured credit agreement has a $750,000 accordion that allows the Company, at its election, to increase the total unsecured revolving line of credit 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 amended unsecured credit agreement and (ii) the Company’s ability to obtain additional lender commitments. The sixth amended and restated unsecured credit agreement also includes a sustainability metric based on targeted greenhouse gas emission reductions, which permits the Company to reduce the applicable grid-based spread by one basis point annually upon attainment. Unsecured Term Loans As of June 30, 2021, the Company has the following unsecured term loans: (i) a seven five seven The following table summarizes the key terms of the unsecured term loans as of June 30, 2021: Unsecured Term Loans Maturity Date Leverage-Based Pricing Investment Grade Pricing $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 term loan agreement and (ii) the Company’s ability to obtain additional lender commitments. Subsequent to June 30, 2021, the Company amended the pricing terms of the Term Loan Due 2026 as follows: Term Loan Due 2026 Maturity Date Leverage-Based Pricing Investment Grade Pricing $150,000 unsecured term loan due 2026 7/17/2026 1.20 % – 1.70% 0.75 % – 1.60% The amendment to the Term Loan Due 2026 also includes a sustainability metric based on targeted greenhouse gas emission reductions, which permits the Company to reduce the applicable grid-based spread on the Term Loan Due 2026 by one basis point annually upon attainment. Debt Maturities The following table summarizes the scheduled maturities and principal amortization of the Company’s indebtedness as of June 30, 2021 for the remainder of 2021, each of the next four years and thereafter, and the weighted average interest rates by year. 2021 2022 2023 2024 2025 Thereafter Total Debt: Fixed rate debt: Mortgages payable (a) $ 1,215 $ 26,641 $ 31,758 $ 1,737 $ 1,809 $ 27,802 $ 90,962 Fixed rate term loans (b) — — 200,000 120,000 — 150,000 470,000 Unsecured notes payable (c) — — — 150,000 350,000 700,000 1,200,000 Total fixed rate debt 1,215 26,641 231,758 271,737 351,809 877,802 1,760,962 Variable rate debt: Variable rate revolving line of credit (d) — — — — — — — Total debt (e) $ 1,215 $ 26,641 $ 231,758 $ 271,737 $ 351,809 $ 877,802 $ 1,760,962 Weighted average interest rate on debt: Fixed rate debt 4.08 % 4.81 % 4.10 % 3.83 % 4.00 % 4.37 % 4.19 % Variable rate debt (f) — 1.20 % — — — — 1.20 % Total 4.08 % 4.81 % 4.10 % 3.83 % 4.00 % 4.37 % 4.19 % (a) Excludes mortgage discount of $(428) and capitalized loan fees of $(160), net of accumulated amortization, as of June 30, 2021. (b) Excludes capitalized loan fees of $(2,105), net of accumulated amortization, as of June 30, 2021. The following variable rate term loans have been swapped to fixed rate debt: (i) $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; (ii) $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 (iii) $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 June 30, 2021, the applicable credit spread for (i) 1.25%, for (ii) was 1.20% and for (iii) was 1.60%. (c) Excludes discount of $(6,044) and capitalized loan fees of $(6,912), net of accumulated amortization, as of June 30, 2021. (d) Subsequent to June 30, 2021, the Company entered into its sixth amended and restated unsecured credit agreement that extended the maturity date of the unsecured revolving line of credit to January 8, 2026. (e) The weighted average years to maturity of consolidated indebtedness was 5.4 years as of June 30, 2021. (f) Represents interest rate as of June 30, 2021, however, the revolving line of credit was not drawn as of June 30, 2021. The Company’s unsecured debt agreements, consisting of the (i) unsecured credit agreement, as amended, governing the Unsecured Credit Facility, (ii) term loan agreement, as amended, governing the Term Loan Due 2023, (iii) term loan agreement, as amended, governing the Term Loan Due 2024 and Term Loan Due 2026, (iv) note purchase agreement governing the 4.58% senior unsecured notes due 2024 (Notes Due 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), (vii) note purchase agreement governing the 4.82% senior unsecured notes due 2029 (Notes Due 2029) and (viii) indenture, as supplemented, governing the 4.75% senior unsecured notes due 2030 (Notes Due 2030), 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) a minimum debt service coverage ratio; and (vi) a minimum unencumbered assets to unsecured debt ratio. All financial covenants that include operating results, or derivations thereof, in their calculations are based on the most recent four fiscal quarters of activity. As of June 30, 2021, the Company believes it was in compliance with the financial covenants and default provisions under the unsecured debt agreements. The Company plans on addressing its debt maturities, subject to the restrictions set forth in the Merger Agreement, through a combination of (i) cash flows generated from operations, (ii) working capital, (iii) capital markets transactions and (iv) its unsecured revolving line of credit. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021, the Company has eight 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 within “Accumulated other comprehensive loss” 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 $9,789 will be reclassified as an increase to interest expense. The following table summarizes the Company’s interest rate swaps as of June 30, 2021, which effectively convert one-month floating rate LIBOR to a fixed rate: Number of Instruments Effective Date Aggregate Fixed Maturity Date 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 Company previously had three interest rate swaps with notional amounts totaling $250,000 and a maturity date of January 5, 2021 that were terminated during 2020 in conjunction with the repayment of the Company’s $250,000 unsecured term loan due 2021. At termination, these interest rate swaps were in a liability position and had a fair value of $1,699. The associated other comprehensive income was amortized into expense through the original maturity date. As a result, the Company recognized $64 of interest expense, which is included within “Interest expense” in the accompanying condensed consolidated statements of operations and other comprehensive income (loss), in connection with the termination of these swaps during the six months ended June 30, 2021. 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 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Interest rate swaps 8 8 $ 470,000 $ 470,000 The table below presents the estimated fair value of the Company’s derivative financial instruments, which are presented within “Other liabilities” in the accompanying condensed consolidated balance sheets. The valuation techniques used are described in Note 12 to the condensed consolidated financial statements. Fair Value June 30, 2021 December 31, 2020 Derivatives designated as cash flow hedges: Interest rate swaps $ 22,827 $ 31,666 The following table presents the effect of the Company’s derivative financial instruments on the accompanying condensed consolidated statements of operations and other comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020: Derivatives in Amount of Loss (Gain) Location of Loss Amount of Loss Total Interest Expense Three Months Ended Six Months Ended Three Months Ended Six Months Ended Three Months Ended Six Months Ended 2021 $ 1,717 $ (3,889) Interest expense $ 2,501 $ 5,014 $ 18,776 $ 37,528 2020 $ 2,301 $ 30,954 Interest expense $ 2,995 $ 4,066 $ 19,360 $ 36,406 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021 and 2020. As of June 30, 2021, $189,105 remained available for repurchases of shares of the Company’s common stock under its common stock repurchase program. Subsequent to June 30, 2021, in connection with the Merger Agreement, the Company suspended its common stock repurchase program. On April 1, 2021, the Company established an at-the-market (ATM) equity program under which it may issue and sell shares of its Class A common stock, having an aggregate offering price of up to $250,000, from time to time. Actual sales may depend on a variety of factors, including, among others, market conditions and the trading price of the Company’s Class A common stock. Any net proceeds are expected to be used for general corporate purposes, which may include funding acquisitions and redevelopment activities and repaying debt. The Company did not sell any shares under its ATM equity program during the six months ended June 30, 2021. As of June 30, 2021, the Company had Class A common shares having an aggregate offering price of up to $250,000 remaining available for sale under its ATM equity program. Subsequent to June 30, 2021, in connection with the Merger Agreement, the Company suspended its ATM equity program. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net income (loss) $ 15,387 $ (7,347) $ 20,100 $ 15,010 Net loss attributable to noncontrolling interests 9 — 9 — Net income (loss) attributable to common shareholders 15,396 (7,347) 20,109 15,010 Earnings allocated to unvested restricted shares (69) (135) (119) (244) Net income (loss) attributable to common shareholders excluding amounts attributable to unvested restricted shares $ 15,327 $ (7,482) $ 19,990 $ 14,766 Denominator: Denominator for earnings (loss) per common share – basic: Weighted average number of common shares outstanding 213,813 (a) 213,337 (b) 213,732 (a) 213,276 (b) Effect of dilutive securities: Stock options — (c) — (c) — (c) — (c) RSUs 256 (d) — (e) 477 (d) — (e) Denominator for earnings (loss) per common share – diluted: Weighted average number of common and common equivalent shares outstanding 214,069 213,337 214,209 213,276 (a) Excludes 904 shares of unvested restricted common stock as of June 30, 2021, which equate to 939 and 909 shares for the three and six months ended June 30, 2021, respectively, on a weighted average basis. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. (b) Excludes 868 shares of unvested restricted common stock as of June 30, 2020, which equate to 825 and 751 shares for the three and six months ended June 30, 2020, respectively, on a weighted average basis. 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 10 and 16 shares of common stock as of June 30, 2021 and 2020, respectively, at a weighted average exercise price of $15.12 and $15.87, respectively. Of these totals, outstanding options to purchase 10 and 16 shares of common stock as of June 30, 2021 and 2020, respectively, at a weighted average exercise price of $15.12 and $15.87, respectively, have been excluded from the common shares used in calculating diluted EPS as including them would be anti-dilutive. (d) As of June 30, 2021, there were 1,166 RSUs eligible for future conversion upon completion of the performance periods (see Note 5 to the condensed consolidated financial statements), which equate to 1,166 and 1,162 RSUs for the three and six months ended June 30, 2021, respectively, on a weighted average basis. These contingently issuable shares are a component of calculating diluted EPS. (e) As of June 30, 2020, there were 974 RSUs eligible for future conversion upon completion of the performance periods, which equate to 974 and 971 RSUs for the three and six months ended June 30, 2020, respectively, on a weighted average basis. These contingently issuable shares have been excluded from the common shares used in calculating diluted EPS as including them would be anti-dilutive. |
Provision for Impairment of Inv
Provision for Impairment of Investment Properties | 6 Months Ended |
Jun. 30, 2021 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |
Provision for Impairment of Investment Properties | PROVISION FOR IMPAIRMENT OF INVESTMENT PROPERTIES As of June 30, 2021 and 2020, the Company identified indicators of impairment at certain of its properties and took into consideration the most current information available and expectations at the time of the assessment. Such indicators included a low occupancy rate, expected sustained difficulty in leasing space and related cost of re-leasing, significant exposure to financially troubled tenants or reduced anticipated holding periods. The following table summarizes the results of these analyses as of June 30, 2021 and 2020: June 30, 2021 June 30, 2020 Number of properties for which indicators of impairment were identified 6 2 Less: number of properties for which an impairment charge was recorded — — 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 2 — Remaining properties for which indicators of impairment were identified but no impairment charge was considered necessary 4 2 Weighted average percentage by which the projected undiscounted cash flows exceeded its respective carrying value for each of the remaining properties (a) 172 % 166 % (a) Based upon the estimated holding period for each asset where an undiscounted cash flow analysis was performed. The Company did not record any investment property impairment charges during the six months ended June 30, 2021. The Company recorded the following investment property impairment charge during the six months ended June 30, 2020: Property Name Property Type Impairment Date Square Provision for King Philip’s Crossing (a) Multi-tenant retail February 13, 2020 105,900 $ 346 $ 346 Estimated fair value of impaired property as of impairment date $ 11,644 (a) The Company recorded an impairment charge on December 31, 2019 based upon the terms and conditions of an executed sales contract. This property was sold on February 13, 2020, at which time additional impairment was recognized pursuant to the terms and conditions of an executed sales contract. The extent to which COVID-19 impacts the Company and its tenants will depend, in part, on future developments, which are highly uncertain. If the effects of COVID-19 cause economic and market conditions to deteriorate, which, consequently, result in deterioration of operating conditions, and/or if the Company’s expected holding period for assets change, subsequent tests for impairment could result in impairment charges in the future. Indications of a tenant’s inability to continue as a going concern, changes in the Company’s view or strategy relative to a tenant’s business or industry, or changes in the Company’s long-term hold strategies could change in future periods. The Company will continue to monitor circumstances and events in future periods and can provide no assurance that material impairment charges with respect to its investment properties will not occur in future periods. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Financial liabilities: Mortgages payable, net $ 90,374 $ 91,982 $ 91,514 $ 93,664 Unsecured notes payable, net $ 1,187,044 $ 1,295,501 $ 1,186,000 $ 1,253,928 Unsecured term loans, net $ 467,895 $ 470,238 $ 467,559 $ 464,072 Unsecured revolving line of credit $ — $ — $ — $ — Derivative liability $ 22,827 $ 22,827 $ 31,666 $ 31,666 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 June 30, 2021 Derivative liability $ — $ 22,827 $ — $ 22,827 December 31, 2020 Derivative liability $ — $ 31,666 $ — $ 31,666 Derivatives: The fair value of the derivative liability is determined using a discounted cash flow analysis on the expected future cash flows of each derivative. This analysis 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 June 30, 2021 and December 31, 2020, 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 Company did not remeasure any assets to fair value on a nonrecurring basis as of June 30, 2021. The following table presents the Company’s assets measured at fair value on a nonrecurring basis as of December 31, 2020, aggregated by the level within the fair value hierarchy in which those measurements fall. The table includes information related to a properties remeasured to fair value as a result of impairment charges recorded during the year ended December 31, 2020, except for those properties sold prior to December 31, 2020. Methods and assumptions used to estimate the fair value of this asset is described after the table. Fair Value Level 1 Level 2 Level 3 Total Provision for December 31, 2020 Investment property $ — $ — $ 2,500 (a) $ 2,500 $ 2,279 (a) Represents the fair value of the Company’s Streets of Yorktown investment property as of September 30, 2020, the date the asset was measured at fair value. The estimated fair value of Streets of Yorktown was based upon third-party comparable sales prices, derived from property-specific information, market transactions and other industry data and are considered significant unobservable inputs. 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 June 30, 2021 Mortgages payable, net $ — $ — $ 91,982 $ 91,982 Unsecured notes payable, net $ 817,633 $ — $ 477,868 $ 1,295,501 Unsecured term loans, net $ — $ — $ 470,238 $ 470,238 Unsecured revolving line of credit $ — $ — $ — $ — December 31, 2020 Mortgages payable, net $ — $ — $ 93,664 $ 93,664 Unsecured notes payable, net $ 790,379 $ — $ 463,549 $ 1,253,928 Unsecured term loans, net $ — $ — $ 464,072 $ 464,072 Unsecured revolving line of credit $ — $ — $ — $ — 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: June 30, 2021 December 31, 2020 Mortgages payable, net – range of discount rates used 3.2% to 4.4% 3.5% to 4.2% Unsecured notes payable, net – weighted average discount rate used 3.14% 3.84% Unsecured term loans, net – weighted average credit spread portion of discount rate used 1.33% 1.71% Unsecured revolving line of credit – credit spread portion of discount rate used 1.10% 1.68% There were no transfers between the levels of the fair value hierarchy during the six months ended June 30, 2021 and the year ended December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES As of June 30, 2021, the Company had letters of credit outstanding totaling $291 that serve as collateral for certain capital improvements at one of its properties and reduce the available borrowings on its unsecured revolving line of credit. The following table summarizes the Company’s active expansion and redevelopment projects as of June 30, 2021: Estimated Net Investment Net Investment as of June 30, 2021 Project Name MSA Low High Circle East (a) Baltimore $ 46,000 $ 48,000 $ 28,929 One Loudoun Downtown – Pads G & H (b) Washington, D.C. $ 125,000 $ 135,000 $ 95,546 The Shoppes at Quarterfield Baltimore $ 9,700 $ 10,700 $ 4,266 Southlake Town Square – Pad Dallas $ 2,000 $ 2,500 $ 2,154 (a) Investment amounts are net of proceeds of $11,820 received from the sale of air rights. (b) Investment amounts are net of expected contributions from the Company’s joint venture partner. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2021 | |
Litigation Settlement [Abstract] | |
Legal Matters and Contingencies | LITIGATIONThe 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. During the six months ended June 30, 2020, the Company entered into a settlement agreement related to litigation with a former tenant and received $6,100 in proceeds. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to June 30, 2021, the Company: • entered into its sixth amended and restated unsecured credit agreement with a syndicate of financial institutions to provide for an $850,000 unsecured revolving line of credit and amended the pricing terms of the Term Loan Due 2026. See Note 7 to the condensed consolidated financial statements for further details; • closed on the acquisition of Arcadia Village, a 37,000 square foot multi-tenant retail operating property located in Phoenix, Arizona, for a gross purchase price of $21,000; • paid the cash dividend for the second quarter of 2021 of $0.075 per share on its outstanding Class A common stock, which was paid on July 9, 2021 to Class A common shareholders of record at the close of business on June 25, 2021; and • declared the cash dividend for the third quarter of 2021 of $0.075 per share on its outstanding Class A common stock, which will be paid on October 8, 2021 to Class A common shareholders of record at the close of business on October 1, 2021. Proposed Merger with Kite Realty Group Trust On July 18, 2021, the Company entered into a definitive Merger Agreement with Kite and Merger Sub. Upon the terms and subject to the conditions set forth in the Merger Agreement, the Company will merge with and into Merger Sub, with Merger Sub surviving the Merger. At the Effective Time, each share of Class A common stock of the Company issued and outstanding immediately prior to the Effective Time will be converted into the right to receive 0.623 common shares of Kite, plus the right, if any, to receive cash in lieu of fractional common shares of Kite. During the period from the date of the Merger Agreement until the completion of the Merger, the Company is subject to certain restrictions on its ability to engage with third parties regarding alternative acquisition proposals and on the conduct of the Company’s business. The board of directors of the Company and the board of trustees of Kite each have unanimously approved the transaction. The closing of the Merger is expected to occur in the fourth quarter of 2021, subject to the satisfaction of certain closing conditions, including the approval of both Kite and the Company’s shareholders. There can be no assurance that the Merger will be completed on the terms or timeline currently contemplated or at all. In connection with the Merger Agreement, the Company suspended its common stock repurchase program and ATM equity program. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Income taxes | 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. |
Use of estimates | 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 (i) the reserve for uncollectible lease income, (ii) provision for impairment, including estimates of holding periods, capitalization rates and discount rates (where applicable), and (iii) 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. |
Consolidation | 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. |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of property ownership | The Company’s property ownership as of June 30, 2021 is summarized below: Property Count Retail operating properties (a) 100 Expansion and redevelopment projects: Circle East 1 One Loudoun Downtown – Pads G & H (b) — Carillon 1 The Shoppes at Quarterfield 1 Total number of properties 103 (a) Excludes two retail operating properties classified as held for sale as of June 30, 2021. (b) 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) | 6 Months Ended |
Jun. 30, 2021 | |
Asset Acquisition [Abstract] | |
Schedule of acquisitions | The Company closed on the following acquisition during the six months ended June 30, 2020: Date Property Name Metropolitan Property Type Square Acquisition February 6, 2020 Fullerton Metrocenter Los Angeles Fee interest (a) 154,700 $ 55,000 154,700 $ 55,000 (b) (a) The Company acquired the fee interest in an existing multi-tenant retail operating property. In connection with this acquisition, the Company also assumed the lessor position in a ground lease with a shadow anchor. (b) Acquisition price does not include capitalized closing costs and adjustments totaling $240. |
Schedule of acquisition date fair values | The following table summarizes the acquisition date values, before prorations, the Company recorded in conjunction with the acquisition discussed above: Six Months Ended June 30, 2020 Land $ 57,137 Building and other improvements, net 1,623 Acquired lease intangible assets (a) 2,014 Acquired lease intangible liabilities (b) (5,534) Net assets acquired $ 55,240 (a) The weighted average amortization period for acquired lease intangible assets is 17 years for the acquisition completed during the six months ended June 30, 2020. (b) The weighted average amortization period for acquired lease intangible liabilities is 17 years for the acquisition completed during the six months ended June 30, 2020. |
Schedule of developments in progress | The carrying amount of the Company’s developments in progress are as follows: Property Name MSA June 30, 2021 December 31, 2020 Expansion and redevelopment projects Circle East (a) Baltimore $ 34,336 $ 38,180 One Loudoun Downtown (b) Washington, D.C. 86,030 89,103 Carillon Washington, D.C. 33,660 33,463 The Shoppes at Quarterfield Baltimore 1,349 865 Pad development projects Southlake Town Square Dallas 2,154 1,495 157,529 163,106 Land held for future development One Loudoun Uptown Washington, D.C. 25,450 25,450 Total developments in progress $ 182,979 $ 188,556 |
Schedule of variable interest entities | As of June 30, 2021 and December 31, 2020, the Company recorded the following related to the One Loudoun Downtown – Pads G & H consolidated joint venture: One Loudoun Downtown – Pads G & H June 30, 2021 December 31, 2020 Net investment properties $ 93,186 $ 74,314 Other assets, net $ 647 $ 354 Other liabilities $ 3,103 $ 3,890 Noncontrolling interests $ 4,498 $ 4,507 |
Dispositions (Tables)
Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of property dispositions | The Company closed on the following disposition during the six months ended June 30, 2020: Date Property Name Property Type Square Consideration Aggregate Gain February 13, 2020 King Philip’s Crossing Multi-tenant retail 105,900 $ 13,900 $ 11,343 $ — 105,900 $ 13,900 $ 11,343 $ — (a) Aggregate proceeds are net of transaction costs and exclude $26 of condemnation proceeds, which did not result in recognition of a gain. |
Schedule of assets and liabilities associated with properties held for sale | June 30, 2021 Assets Land, building and other improvements $ 22,173 Less: accumulated depreciation (8,778) Net investment properties 13,395 Other assets 405 Assets associated with investment properties held for sale $ 13,800 Liabilities Other liabilities $ 526 Liabilities associated with investment properties held for sale $ 526 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021: Unvested Weighted Average Balance as of January 1, 2021 685 $ 10.81 Shares granted (a) 608 $ 11.31 Shares vested (389) $ 10.27 Balance as of June 30, 2021 (b) 904 $ 11.38 (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 June 30, 2021, total unrecognized compensation expense related to unvested restricted shares was $3,661, which is expected to be amortized over a weighted average term of 1.3 years. The following table summarizes the Company’s unvested performance restricted stock units (RSUs) as of and for the six months ended June 30, 2021: Unvested Weighted Average RSUs eligible for future conversion as of January 1, 2021 974 $ 12.81 RSUs granted (a) 452 $ 10.06 Conversion of RSUs to common stock and restricted shares (b) (260) $ 14.39 RSUs eligible for future conversion as of June 30, 2021 (c) 1,166 $ 11.39 (a) Assumptions and inputs as of the grant date included a risk-free interest rate of 0.16%, 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 projected common stock dividend yield of 4.08%. Subject to continued employment, in 2024, following the performance period which concludes on December 31, 2023, 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 8, 2021, 260 RSUs converted into 102 shares of common stock and 197 restricted shares that will vest on December 31, 2021, subject to continued employment through such date, after applying a conversion rate of 115% 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, 2020. An additional 49 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 June 30, 2021, total unrecognized compensation expense related to unvested RSUs was $7,110, which is expected to be amortized over a weighted average term of 2.1 years. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of lease income | Lease income related to the Company’s operating leases is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease income related to fixed and variable lease payments Base rent (a) (b) $ 87,944 $ 90,670 $ 174,018 $ 181,103 Percentage and specialty rent (c) 633 450 1,157 1,325 Tenant recoveries (b) (c) 24,413 23,823 50,441 49,565 Lease termination fee income (c) 759 252 1,438 376 Other lease-related income (c) 1,468 1,044 2,777 2,549 Straight-line rental income, net (d) 787 (1,284) 1,207 (943) Other Uncollectible lease income, net (e) 4,773 (19,495) 8,317 (20,377) Amortization of above and below market lease intangibles and lease inducements 462 1,343 1,264 1,900 Lease income $ 121,239 $ 96,803 $ 240,619 $ 215,498 (a) Base rent primarily consists of fixed lease payments; however, it also includes the net impact of variable lease payments related to lease concessions granted as relief due to COVID-19 in accordance with the Company’s policy elections related to the accounting treatment of such lease concessions. The impact of these lease concessions includes an increase of $905 and $0 for the three months ended June 30, 2021 and 2020, respectively, and $2,146 and $0 for the six months ended June 30, 2021 and 2020, respectively, in base rent related to the repayment of amounts previously deferred under lease concessions that did not meet deferral accounting treatment; as a result, lease income was reduced for the deferral in previous periods, however recognized as variable lease income upon receipt of payment, partially offset by a decrease of $700 and $28 for the three months ended June 30, 2021 and 2020, respectively, and more than offset by $3,309 and $28 for the six months ended June 30, 2021 and 2020, respectively, in base rent related to executed lease concession agreements that did not meet deferral accounting treatment and for which payment has not been received. Of the aggregate $700 and $3,309 decrease from lease concession agreements, $310 and $1,585 were associated with billed base rent from prior periods for the three and six months ended June 30, 2021, respectively. (b) Base rent and tenant recoveries are presented gross of any uncollected amounts related to cash-basis tenants. Such uncollected amounts are reflected within “Uncollectible lease income, net.” (c) Represents lease income related to variable lease payments. (d) Represents lease income related to fixed lease payments. Straight-line rental income, net includes changes in the reserve for straight-line receivables related to tenants accounted for on the cash basis of $484 and $(1,636) for the three months ended June 30, 2021 and 2020, respectively, and $(2,127) and $(2,671) for the six months ended June 30, 2021 and 2020, respectively. (e) Uncollectible lease income, net includes (i) the change in reserve related to receivables associated with tenants accounted for on the cash basis of accounting, (ii) the impact of executed lease concessions that did not meet deferral accounting treatment, however, were agreed in previous periods; as a result, the impact of these anticipated concessions was included within the reserve for uncollectible lease |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of mortgages payable | The following table summarizes the Company’s mortgages payable: June 30, 2021 December 31, 2020 Balance Weighted Weighted Balance Weighted Weighted Fixed rate mortgages payable (a) $ 90,962 4.37 % 3.5 $ 92,156 4.36 % 4.1 Discount, net of accumulated amortization (428) (450) Capitalized loan fees, net of accumulated amortization (160) (192) Mortgages payable, net $ 90,374 $ 91,514 (a) The fixed rate mortgages had interest rates ranging from 3.75% to 4.82% as of June 30, 2021 and December 31, 2020. |
Summary of unsecured notes payable | The following table summarizes the Company’s unsecured notes payable: June 30, 2021 December 31, 2020 Unsecured Notes Payable Maturity Date Balance Interest Rate/ Balance Interest Rate/ 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 350,000 4.00 % 350,000 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 % 100,000 4.82 % Senior notes – 4.75% due 2030 September 15, 2030 400,000 4.75 % 400,000 4.75 % 1,200,000 4.42 % 1,200,000 4.42 % Discount, net of accumulated amortization (6,044) (6,473) Capitalized loan fees, net of accumulated amortization (6,912) (7,527) Total $ 1,187,044 $ 1,186,000 |
Summary of term loans and revolving line of credit | The following table summarizes the Company’s term loans and revolving line of credit: June 30, 2021 December 31, 2020 Maturity Date Balance Interest Balance Interest Unsecured term loan due 2023 – fixed rate (a) November 22, 2023 $ 200,000 4.10 % $ 200,000 4.10 % Unsecured term loan due 2024 – fixed rate (b) July 17, 2024 120,000 2.88 % 120,000 2.88 % Unsecured term loan due 2026 – fixed rate (c) (d) July 17, 2026 150,000 3.37 % 150,000 3.37 % Subtotal 470,000 470,000 Capitalized loan fees, net of accumulated amortization (2,105) (2,441) Term loans, net $ 467,895 $ 467,559 Unsecured credit facility revolving line of credit – variable rate (e) April 22, 2022 (f) $ — 1.20 % $ — 1.25 % (a) $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 1.25% as of June 30, 2021 and December 31, 2020. (b) $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 June 30, 2021 and December 31, 2020. (c) $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 1.60% as of June 30, 2021 and December 31, 2020. (d) Subsequent to June 30, 2021, the Company amended the pricing terms of the unsecured term loan due 2026, which will bear interest at a rate of LIBOR plus a credit spread based on a leverage grid ranging from 1.20% to 1.70%. In accordance with the amended unsecured term loan agreement, the Company may elect to convert to an investment grade pricing grid. (e) Excludes capitalized loan fees, which are included within “Other assets, net” in the accompanying condensed consolidated balance sheets. (f) Subsequent to June 30, 2021, the Company entered into its sixth amended and restated unsecured credit agreement that extended the maturity date of the unsecured revolving line of credit to January 8, 2026 with the option to extend for two additional six |
Summary of unsecured revolving line of credit | The following table summarizes the key terms of the unsecured revolving line of credit as of June 30, 2021: Leverage-Based Pricing Investment Grade Pricing Unsecured Credit Facility Maturity Date Extension Option Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee $850,000 unsecured revolving line of credit 4/22/2022 2 six 0.075% 1.05%–1.50% 0.15%–0.30% 0.825%–1.55% 0.125%–0.30% The following table summarizes the key terms of the sixth amended and restated unsecured credit agreement: Leverage-Based Pricing Investment Grade Pricing Sixth Amended and Restated Maturity Date Extension Option Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee $850,000 unsecured revolving line of credit 1/8/2026 2 six 0.075% 1.05%–1.50% 0.15%–0.30% 0.725%–1.40% 0.125%–0.30% |
Summary of unsecured term loans | The following table summarizes the key terms of the unsecured term loans as of June 30, 2021: Unsecured Term Loans Maturity Date Leverage-Based Pricing Investment Grade Pricing $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% Subsequent to June 30, 2021, the Company amended the pricing terms of the Term Loan Due 2026 as follows: Term Loan Due 2026 Maturity Date Leverage-Based Pricing Investment Grade Pricing $150,000 unsecured term loan due 2026 7/17/2026 1.20 % – 1.70% 0.75 % – 1.60% |
Summary of scheduled maturities and principal amortization of indebtedness | The following table summarizes the scheduled maturities and principal amortization of the Company’s indebtedness as of June 30, 2021 for the remainder of 2021, each of the next four years and thereafter, and the weighted average interest rates by year. 2021 2022 2023 2024 2025 Thereafter Total Debt: Fixed rate debt: Mortgages payable (a) $ 1,215 $ 26,641 $ 31,758 $ 1,737 $ 1,809 $ 27,802 $ 90,962 Fixed rate term loans (b) — — 200,000 120,000 — 150,000 470,000 Unsecured notes payable (c) — — — 150,000 350,000 700,000 1,200,000 Total fixed rate debt 1,215 26,641 231,758 271,737 351,809 877,802 1,760,962 Variable rate debt: Variable rate revolving line of credit (d) — — — — — — — Total debt (e) $ 1,215 $ 26,641 $ 231,758 $ 271,737 $ 351,809 $ 877,802 $ 1,760,962 Weighted average interest rate on debt: Fixed rate debt 4.08 % 4.81 % 4.10 % 3.83 % 4.00 % 4.37 % 4.19 % Variable rate debt (f) — 1.20 % — — — — 1.20 % Total 4.08 % 4.81 % 4.10 % 3.83 % 4.00 % 4.37 % 4.19 % (a) Excludes mortgage discount of $(428) and capitalized loan fees of $(160), net of accumulated amortization, as of June 30, 2021. (b) Excludes capitalized loan fees of $(2,105), net of accumulated amortization, as of June 30, 2021. The following variable rate term loans have been swapped to fixed rate debt: (i) $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; (ii) $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 (iii) $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 June 30, 2021, the applicable credit spread for (i) 1.25%, for (ii) was 1.20% and for (iii) was 1.60%. (c) Excludes discount of $(6,044) and capitalized loan fees of $(6,912), net of accumulated amortization, as of June 30, 2021. (d) Subsequent to June 30, 2021, the Company entered into its sixth amended and restated unsecured credit agreement that extended the maturity date of the unsecured revolving line of credit to January 8, 2026. (e) The weighted average years to maturity of consolidated indebtedness was 5.4 years as of June 30, 2021. (f) Represents interest rate as of June 30, 2021, however, the revolving line of credit was not drawn as of June 30, 2021. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The following table summarizes the Company’s interest rate swaps as of June 30, 2021, which effectively convert one-month floating rate LIBOR to a fixed rate: Number of Instruments Effective Date Aggregate Fixed Maturity Date 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 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Interest rate swaps 8 8 $ 470,000 $ 470,000 |
Schedule of estimated fair value of derivative instruments | The table below presents the estimated fair value of the Company’s derivative financial instruments, which are presented within “Other liabilities” in the accompanying condensed consolidated balance sheets. The valuation techniques used are described in Note 12 to the condensed consolidated financial statements. Fair Value June 30, 2021 December 31, 2020 Derivatives designated as cash flow hedges: Interest rate swaps $ 22,827 $ 31,666 |
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 income (loss) for the three and six months ended June 30, 2021 and 2020: Derivatives in Amount of Loss (Gain) Location of Loss Amount of Loss Total Interest Expense Three Months Ended Six Months Ended Three Months Ended Six Months Ended Three Months Ended Six Months Ended 2021 $ 1,717 $ (3,889) Interest expense $ 2,501 $ 5,014 $ 18,776 $ 37,528 2020 $ 2,301 $ 30,954 Interest expense $ 2,995 $ 4,066 $ 19,360 $ 36,406 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net income (loss) $ 15,387 $ (7,347) $ 20,100 $ 15,010 Net loss attributable to noncontrolling interests 9 — 9 — Net income (loss) attributable to common shareholders 15,396 (7,347) 20,109 15,010 Earnings allocated to unvested restricted shares (69) (135) (119) (244) Net income (loss) attributable to common shareholders excluding amounts attributable to unvested restricted shares $ 15,327 $ (7,482) $ 19,990 $ 14,766 Denominator: Denominator for earnings (loss) per common share – basic: Weighted average number of common shares outstanding 213,813 (a) 213,337 (b) 213,732 (a) 213,276 (b) Effect of dilutive securities: Stock options — (c) — (c) — (c) — (c) RSUs 256 (d) — (e) 477 (d) — (e) Denominator for earnings (loss) per common share – diluted: Weighted average number of common and common equivalent shares outstanding 214,069 213,337 214,209 213,276 (a) Excludes 904 shares of unvested restricted common stock as of June 30, 2021, which equate to 939 and 909 shares for the three and six months ended June 30, 2021, respectively, on a weighted average basis. These shares will continue to be excluded from the computation of basic EPS until contingencies are resolved and the shares are released. (b) Excludes 868 shares of unvested restricted common stock as of June 30, 2020, which equate to 825 and 751 shares for the three and six months ended June 30, 2020, respectively, on a weighted average basis. 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 10 and 16 shares of common stock as of June 30, 2021 and 2020, respectively, at a weighted average exercise price of $15.12 and $15.87, respectively. Of these totals, outstanding options to purchase 10 and 16 shares of common stock as of June 30, 2021 and 2020, respectively, at a weighted average exercise price of $15.12 and $15.87, respectively, have been excluded from the common shares used in calculating diluted EPS as including them would be anti-dilutive. (d) As of June 30, 2021, there were 1,166 RSUs eligible for future conversion upon completion of the performance periods (see Note 5 to the condensed consolidated financial statements), which equate to 1,166 and 1,162 RSUs for the three and six months ended June 30, 2021, respectively, on a weighted average basis. These contingently issuable shares are a component of calculating diluted EPS. (e) As of June 30, 2020, there were 974 RSUs eligible for future conversion upon completion of the performance periods, which equate to 974 and 971 RSUs for the three and six months ended June 30, 2020, respectively, on a weighted average basis. These contingently issuable shares have been excluded from the common shares used in calculating diluted EPS as including them would be anti-dilutive. |
Provision for Impairment of I_2
Provision for Impairment of Investment Properties (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |
Schedule of identified impairment indicators | The following table summarizes the results of these analyses as of June 30, 2021 and 2020: June 30, 2021 June 30, 2020 Number of properties for which indicators of impairment were identified 6 2 Less: number of properties for which an impairment charge was recorded — — 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 2 — Remaining properties for which indicators of impairment were identified but no impairment charge was considered necessary 4 2 Weighted average percentage by which the projected undiscounted cash flows exceeded its respective carrying value for each of the remaining properties (a) 172 % 166 % (a) 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 six months ended June 30, 2020: Property Name Property Type Impairment Date Square Provision for King Philip’s Crossing (a) Multi-tenant retail February 13, 2020 105,900 $ 346 $ 346 Estimated fair value of impaired property as of impairment date $ 11,644 (a) The Company recorded an impairment charge on December 31, 2019 based upon the terms and conditions of an executed sales contract. This property was sold on February 13, 2020, at which time additional impairment was recognized pursuant to the terms and conditions of an executed sales contract. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Financial liabilities: Mortgages payable, net $ 90,374 $ 91,982 $ 91,514 $ 93,664 Unsecured notes payable, net $ 1,187,044 $ 1,295,501 $ 1,186,000 $ 1,253,928 Unsecured term loans, net $ 467,895 $ 470,238 $ 467,559 $ 464,072 Unsecured revolving line of credit $ — $ — $ — $ — Derivative liability $ 22,827 $ 22,827 $ 31,666 $ 31,666 |
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 June 30, 2021 Derivative liability $ — $ 22,827 $ — $ 22,827 December 31, 2020 Derivative liability $ — $ 31,666 $ — $ 31,666 |
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 December 31, 2020, aggregated by the level within the fair value hierarchy in which those measurements fall. The table includes information related to a properties remeasured to fair value as a result of impairment charges recorded during the year ended December 31, 2020, except for those properties sold prior to December 31, 2020. Methods and assumptions used to estimate the fair value of this asset is described after the table. Fair Value Level 1 Level 2 Level 3 Total Provision for December 31, 2020 Investment property $ — $ — $ 2,500 (a) $ 2,500 $ 2,279 (a) Represents the fair value of the Company’s Streets of Yorktown investment property as of September 30, 2020, the date the asset was measured at fair value. The estimated fair value of Streets of Yorktown was based upon third-party comparable sales prices, derived from property-specific information, market transactions and other industry data and are considered significant unobservable inputs. |
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 June 30, 2021 Mortgages payable, net $ — $ — $ 91,982 $ 91,982 Unsecured notes payable, net $ 817,633 $ — $ 477,868 $ 1,295,501 Unsecured term loans, net $ — $ — $ 470,238 $ 470,238 Unsecured revolving line of credit $ — $ — $ — $ — December 31, 2020 Mortgages payable, net $ — $ — $ 93,664 $ 93,664 Unsecured notes payable, net $ 790,379 $ — $ 463,549 $ 1,253,928 Unsecured term loans, net $ — $ — $ 464,072 $ 464,072 Unsecured revolving line of credit $ — $ — $ — $ — 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: June 30, 2021 December 31, 2020 Mortgages payable, net – range of discount rates used 3.2% to 4.4% 3.5% to 4.2% Unsecured notes payable, net – weighted average discount rate used 3.14% 3.84% Unsecured term loans, net – weighted average credit spread portion of discount rate used 1.33% 1.71% Unsecured revolving line of credit – credit spread portion of discount rate used 1.10% 1.68% There were no transfers between the levels of the fair value hierarchy during the six months ended June 30, 2021 and the year ended December 31, 2020. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of expansion and redevelopment projects | The following table summarizes the Company’s active expansion and redevelopment projects as of June 30, 2021: Estimated Net Investment Net Investment as of June 30, 2021 Project Name MSA Low High Circle East (a) Baltimore $ 46,000 $ 48,000 $ 28,929 One Loudoun Downtown – Pads G & H (b) Washington, D.C. $ 125,000 $ 135,000 $ 95,546 The Shoppes at Quarterfield Baltimore $ 9,700 $ 10,700 $ 4,266 Southlake Town Square – Pad Dallas $ 2,000 $ 2,500 $ 2,154 (a) Investment amounts are net of proceeds of $11,820 received from the sale of air rights. (b) Investment amounts are net of expected contributions from the Company’s joint venture partner. |
Organization and Basis of Pre_4
Organization and Basis of Presentation (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jul. 18, 2021shares | Jun. 30, 2021propertysubsidiary | Dec. 31, 2020property | |
Real Estate Properties [Line Items] | ||||
Number of real estate properties owned | 103 | |||
Number of wholly owned subsidiaries jointly elected to be treated as a TRS | subsidiary | 1 | |||
Reserve for bad debt, net | $ | $ 13,977 | |||
Retail | Operating properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties owned | 100 | |||
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 | |||
The Shoppes at Quarterfield | Redevelopment properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties owned | 1 | |||
Investment properties held for sale | ||||
Real Estate Properties [Line Items] | ||||
Number of properties classified as held for sale | 2 | 0 | ||
Subsequent events | Kite Realty Group Trust | RPAI | ||||
Real Estate Properties [Line Items] | ||||
Common share conversion rate per Merger Agreement (in shares) | shares | 0.623 |
Acquisitions and Developments_3
Acquisitions and Developments in Progress - Summary of Acquisitions (Details) $ in Thousands | Feb. 06, 2020USD ($)ft² | Aug. 04, 2021USD ($)ft² | Jun. 30, 2020USD ($)ft² |
Fullerton Metrocenter - Fee Interest | |||
Asset Acquisition [Line Items] | |||
Square footage | ft² | 154,700 | ||
Acquisition price | $ 55,000 | ||
2020 acquisitions | |||
Asset Acquisition [Line Items] | |||
Square footage | ft² | 154,700 | ||
Acquisition price | $ 55,000 | ||
Capitalized closing costs and adjustments | $ 240 | ||
Subsequent events | Arcadia Village | |||
Asset Acquisition [Line Items] | |||
Square footage | ft² | 37,000 | ||
Acquisition price | $ 21,000 |
Acquisitions and Developments_4
Acquisitions and Developments in Progress - Acquisition Date Fair Values (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
2020 acquisitions | ||||
Acquisition Date Fair Values | ||||
Land | $ 57,137 | $ 57,137 | ||
Building and other improvements, net | 1,623 | 1,623 | ||
Acquired lease intangible assets | 2,014 | 2,014 | ||
Acquired lease intangible liabilities | (5,534) | (5,534) | ||
Net assets acquired | 55,240 | $ 55,240 | ||
Weighted average amortization period, acquired lease intangible assets | 17 years | |||
Weighted average amortization period, acquired lease intangible liabilities | 17 years | |||
Building and associated improvements | ||||
Asset Acquisition [Line Items] | ||||
Capitalized internal salaries and related benefits | $ 771 | 641 | $ 1,487 | $ 1,267 |
Internal leasing incentives | ||||
Asset Acquisition [Line Items] | ||||
Capitalized internal leasing incentives | $ 106 | $ 42 | $ 163 | $ 102 |
Acquisitions and Developments_5
Acquisitions and Developments in Progress - Summary of Developments in Progress (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)unit | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)ft² | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | $ 182,979 | $ 182,979 | $ 188,556 | ||
Circle East | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 34,336 | $ 34,336 | 38,180 | ||
GLA placed in service | ft² | 10,500 | ||||
One Loudoun Downtown | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | $ 86,030 | $ 86,030 | 89,103 | ||
Number of multi-family rental units placed in service | unit | 99 | ||||
Carillon | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | $ 33,660 | 33,660 | 33,463 | ||
The Shoppes at Quarterfield | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 1,349 | 1,349 | 865 | ||
Southlake Town Square | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 2,154 | 2,154 | 1,495 | ||
One Loudoun Uptown | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Land held for future development | 25,450 | 25,450 | 25,450 | ||
Redevelopment properties | |||||
Capitalized Costs of Properties Excluded from Amortization [Line Items] | |||||
Developments in progress | 157,529 | 157,529 | $ 163,106 | ||
Capitalized indirect project costs | 2,020 | $ 1,347 | 3,831 | $ 2,663 | |
Capitalized internal salaries and related benefits | 359 | 329 | 768 | 701 | |
Capitalized interest | $ 1,254 | $ 736 | $ 2,546 | $ 1,521 |
Acquisitions and Developments_6
Acquisitions and Developments in Progress - Variable Interest Entities (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)agreements | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)agreements | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | |||||
Net loss attributable to noncontrolling interests | $ 9 | $ 0 | $ 9 | $ 0 | |
One Loudoun Downtown - Pads G & H | |||||
Variable Interest Entity [Line Items] | |||||
Development costs funded through a loan to the joint venture | $ 4,580 | $ 4,580 | |||
Multi-family | One Loudoun Downtown - Pads G & H | |||||
Variable Interest Entity [Line Items] | |||||
Number of joint venture agreements | agreements | 1 | 1 | |||
Multi-family | RPAI | One Loudoun Downtown - Pads G & H | |||||
Variable Interest Entity [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 90.00% | 90.00% | |||
Net investment properties | One Loudoun Downtown - Pads G & H | |||||
Variable Interest Entity [Line Items] | |||||
Development costs incurred | $ 93,186 | $ 93,186 | $ 74,314 | ||
Other assets, net | One Loudoun Downtown - Pads G & H | |||||
Variable Interest Entity [Line Items] | |||||
Development costs incurred | 647 | 647 | 354 | ||
Other liabilities | One Loudoun Downtown - Pads G & H | |||||
Variable Interest Entity [Line Items] | |||||
Development costs incurred | 3,103 | 3,103 | 3,890 | ||
Noncontrolling interests | One Loudoun Downtown - Pads G & H | |||||
Variable Interest Entity [Line Items] | |||||
Development costs incurred | $ 4,498 | $ 4,498 | $ 4,507 |
Dispositions - Summary of Dispo
Dispositions - Summary of Dispositions (Details) $ in Thousands | Feb. 13, 2020USD ($)ft² | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)ft² |
Property Dispositions [Line Items] | |||
Aggregate proceeds, net | $ 0 | $ 11,369 | |
King Philip's Crossing | |||
Property Dispositions [Line Items] | |||
Square footage | ft² | 105,900 | ||
Consideration | $ 13,900 | ||
Aggregate proceeds, net | 11,343 | ||
Gain | $ 0 | ||
2020 dispositions | |||
Property Dispositions [Line Items] | |||
Square footage | ft² | 105,900 | ||
Consideration | $ 13,900 | ||
Aggregate proceeds, net | 11,343 | ||
Gain | 0 | ||
Condemnation proceeds | $ 26 |
Dispositions - Assets and Liabi
Dispositions - Assets and Liabilities of Properties Held for Sale (Details) $ in Thousands | Jun. 30, 2021USD ($)ft²property | Dec. 31, 2020USD ($)property |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets associated with investment properties held for sale | $ 13,800 | $ 0 |
Liabilities associated with investment properties held for sale | $ 526 | $ 0 |
Streets of Yorktown | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Square footage | ft² | 85,200 | |
HQ Shopping Center | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Square footage | ft² | 116,400 | |
Investment properties held for sale | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Land, building and other improvements | $ 22,173 | |
Less: accumulated depreciation | (8,778) | |
Net investment properties | 13,395 | |
Other assets | 405 | |
Assets associated with investment properties held for sale | 13,800 | |
Other liabilities | 526 | |
Liabilities associated with investment properties held for sale | $ 526 | |
Number of properties classified as held for sale | property | 2 | 0 |
Equity Compensation Plans (Deta
Equity Compensation Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 30, 2021 | Feb. 08, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options outstanding | 10 | 10 | 16 | 10 | 16 | |
Number of options granted | 0 | 0 | ||||
Restricted shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued | 197 | |||||
Fair value of restricted shares/RSUs vested | $ 4,078 | |||||
Equity Instruments, Nonvested [Roll Forward] | ||||||
Balance at the beginning of the period (in shares) | 685 | |||||
Shares/RSUs granted (in shares) | 608 | |||||
Shares/RSUs vested (in shares) | (389) | |||||
Balance at the end of the period (in shares) | 904 | 904 | 868 | 904 | 868 | |
Equity Instruments, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Balance at the beginning of the period (in dollars per share) | $ 10.81 | |||||
Shares/RSUs granted (in dollars per share) | 11.31 | |||||
Shares/RSUs vested (in dollars per share) | 10.27 | |||||
Balance at the end of the period (in dollars per share) | $ 11.38 | $ 11.38 | $ 11.38 | |||
Compensation Cost Not Yet Recognized | ||||||
Total unrecognized compensation expense | $ 3,661 | $ 3,661 | $ 3,661 | |||
Unrecognized compensation expense, period for recognition (in years) | 1 year 3 months 18 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) | 0.16% | |||||
Common stock dividend yield (as a percent) | 4.08% | |||||
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 | 260 | |||||
Conversion rate (as a percent) | 115.00% | |||||
Fair value of restricted shares/RSUs vested | $ 1,002 | |||||
Equity Instruments, Nonvested [Roll Forward] | ||||||
Balance at the beginning of the period (in shares) | 974 | |||||
Shares/RSUs granted (in shares) | 452 | |||||
Shares/RSUs vested (in shares) | (260) | |||||
Balance at the end of the period (in shares) | 1,166 | 1,166 | 1,166 | |||
Equity Instruments, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Balance at the beginning of the period (in dollars per share) | $ 12.81 | |||||
Shares/RSUs granted (in dollars per share) | 10.06 | |||||
Shares/RSUs vested (in dollars per share) | 14.39 | |||||
Balance at the end of the period (in dollars per share) | $ 11.39 | $ 11.39 | $ 11.39 | |||
Compensation Cost Not Yet Recognized | ||||||
Total unrecognized compensation expense | $ 7,110 | $ 7,110 | $ 7,110 | |||
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 | $ 1,970 | $ 2,221 | 4,776 | $ 4,454 | ||
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 | 102 | |||||
Dividends | Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued | 49 |
Leases - Summary of Leases as L
Leases - Summary of Leases as Lessor (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Lessor, Lease, Description [Line Items] | |||||
Reserve for straight-line receivables | $ 484 | $ (1,636) | $ (2,127) | $ (2,671) | |
Operating Leases, Lease Income | |||||
Base rent | 87,944 | 90,670 | 174,018 | 181,103 | |
Percentage and specialty rent | 633 | 450 | 1,157 | 1,325 | |
Tenant recoveries | 24,413 | 23,823 | 50,441 | 49,565 | |
Lease termination fee income | 759 | 252 | 1,438 | 376 | |
Other lease-related income | 1,468 | 1,044 | 2,777 | 2,549 | |
Straight-line rental income, net | 787 | (1,284) | 1,207 | (943) | |
Uncollectible lease income, net | 4,773 | (19,495) | 8,317 | (20,377) | |
Amortization of above and below market lease intangibles and lease inducements | 462 | 1,343 | 1,264 | 1,900 | |
Lease income | 121,239 | 96,803 | 240,619 | 215,498 | |
COVID-19 | |||||
Lessor, Lease, Description [Line Items] | |||||
Variable lease income from lease concessions | 905 | 0 | 2,146 | 0 | |
Decrease in base rent from lease concessions | 700 | $ 28 | 3,309 | $ 28 | |
Base rent from lease concessions related to prior periods | 310 | 1,585 | |||
Lease concessions to defer base rent executed during the period | $ 54 | ||||
Lease concessions to abate and/or defer base rent executed during the period | 694 | ||||
Deferred lease concessions outstanding | $ 3,771 | $ 3,771 | $ 3,771 | ||
Weighted average repayment period | 6 months |
Debt - Summary of Mortgages Pay
Debt - Summary of Mortgages Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 |
Debt Instrument [Line Items] | |||
Mortgages payable | $ 1,760,962 | $ 1,760,962 | |
Weighted average interest rate (as a percent) | 4.19% | 4.19% | |
Mortgages payable | |||
Debt Instrument [Line Items] | |||
Discount, net of accumulated amortization | $ (428) | $ (450) | $ (428) |
Capitalized loan fees, net of accumulated amortization | (160) | (192) | (160) |
Mortgages payable, net | 90,374 | 91,514 | 90,374 |
Scheduled principal payments related to amortizing loans | 1,194 | ||
Fixed rate debt | |||
Debt Instrument [Line Items] | |||
Mortgages payable | $ 1,760,962 | $ 1,760,962 | |
Weighted average interest rate (as a percent) | 4.19% | 4.19% | |
Fixed rate debt | Mortgages payable | |||
Debt Instrument [Line Items] | |||
Mortgages payable | $ 90,962 | $ 92,156 | $ 90,962 |
Weighted average interest rate (as a percent) | 4.37% | 4.36% | 4.37% |
Weighted average years to maturity | 3 years 6 months | 4 years 1 month 6 days | |
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) | 4.82% | 4.82% | 4.82% |
Debt - Summary of Unsecured Not
Debt - Summary of Unsecured Notes Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal balance | $ 1,187,044 | $ 1,186,000 |
Weighted average interest rate (as a percent) | 4.19% | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 1,200,000 | 1,200,000 |
Discount, net of accumulated amortization | (6,044) | (6,473) |
Capitalized loan fees, net of accumulated amortization | $ (6,912) | $ (7,527) |
Weighted average interest rate (as a percent) | 4.42% | 4.42% |
4.58% Notes Due 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 150,000 | $ 150,000 |
Stated interest rate (as a percent) | 4.58% | 4.58% |
4.00% Notes Due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 350,000 | $ 350,000 |
Stated interest rate (as a percent) | 4.00% | 4.00% |
4.08% Notes Due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 100,000 | $ 100,000 |
Stated interest rate (as a percent) | 4.08% | 4.08% |
4.24% Notes Due 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 100,000 | $ 100,000 |
Stated interest rate (as a percent) | 4.24% | 4.24% |
4.82% Notes Due 2029 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 100,000 | $ 100,000 |
Stated interest rate (as a percent) | 4.82% | 4.82% |
4.75% Notes Due 2030 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 400,000 | $ 400,000 |
Stated interest rate (as a percent) | 4.75% | 4.75% |
Debt - Summary of Term Loans an
Debt - Summary of Term Loans and Revolving Line of Credit (Details) $ in Thousands | Jun. 30, 2021USD ($)property | Dec. 31, 2020USD ($) | Aug. 04, 2021USD ($)property | Dec. 31, 2020USD ($) | Apr. 23, 2018USD ($) |
Term Loans and Line of Credit Facility [Line Items] | |||||
Unsecured term loans | $ 467,895 | $ 467,559 | $ 467,559 | ||
Unsecured revolving line of credit | 0 | 0 | 0 | ||
Unsecured term loans | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Unsecured term loans | 470,000 | 470,000 | 470,000 | ||
Capitalized loan fees, net of accumulated amortization | (2,105) | (2,441) | (2,441) | ||
Term loans, net | 467,895 | 467,559 | 467,559 | ||
Unsecured credit facility term loan due 2021 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Repayment of unsecured term loan | 250,000 | ||||
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 | Term Loan Due 2023 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Unsecured term loans | $ 200,000 | $ 200,000 | 200,000 | ||
Interest rate on term loans (as a percent) | 4.10% | 4.10% | |||
Fixed rate debt | Term Loan Due 2024 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Unsecured term loans | $ 120,000 | $ 120,000 | 120,000 | ||
Interest rate on term loans (as a percent) | 2.88% | 2.88% | |||
Fixed rate debt | Term Loan Due 2026 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Unsecured term loans | $ 150,000 | $ 150,000 | 150,000 | ||
Interest rate on term loans (as a percent) | 3.37% | 3.37% | |||
Variable rate debt | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Unsecured revolving line of credit | $ 0 | $ 0 | $ 0 | ||
Interest rate on revolving line of credit (as a percent) | 1.20% | 1.25% | 1.25% | ||
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 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Reference rate for variable interest rate | LIBOR | ||||
LIBOR | Term Loan Due 2023 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.25% | 1.25% | |||
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% | |||
LIBOR | Term Loan Due 2026 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.60% | 1.60% | |||
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) | 1.25% | ||||
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) | 1.60% | ||||
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 | Term Loan Due 2023 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Variable interest rate spread (as a percent) | 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% | ||||
Minimum | LIBOR | Term Loan Due 2026 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.50% | ||||
Maximum | LIBOR | Term Loan Due 2023 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Variable interest rate spread (as a percent) | 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% | ||||
Maximum | LIBOR | Term Loan Due 2026 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Variable interest rate spread (as a percent) | 2.20% | ||||
Fifth Amended and Restated Credit Agreement | 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 | $ 1,350,000 | ||||
Fifth Amended and Restated Credit Agreement | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Revolving line of credit, number of extension options | property | 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% | ||||
Aggregate borrowing capacity | $ 850,000 | 850,000 | |||
Fifth Amended and Restated Credit Agreement | Unsecured credit facility term loan due 2021 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Principal amount | $ 250,000 | ||||
Fifth Amended and Restated Credit Agreement | Minimum | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Facility fee (as a percent) | 0.15% | ||||
Fifth Amended and Restated Credit Agreement | 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% | ||||
Fifth Amended and Restated Credit Agreement | Maximum | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Facility fee (as a percent) | 0.30% | ||||
Fifth Amended and Restated Credit Agreement | 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 | Fifth Amended and Restated Credit Agreement | 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 | Fifth Amended and Restated Credit Agreement | 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 | Fifth Amended and Restated Credit Agreement | 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 | Fifth Amended and Restated Credit Agreement | 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% | ||||
Subsequent events | Term Loan Due 2026 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Principal amount | $ 150,000 | ||||
Subsequent events | Minimum | LIBOR | Term Loan Due 2026 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.20% | ||||
Subsequent events | Maximum | LIBOR | Term Loan Due 2026 | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Variable interest rate spread (as a percent) | 1.70% | ||||
Subsequent events | Sixth Amended and Restated Credit Agreement | Unsecured Credit Facility | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Additional borrowing capacity | $ 750,000 | ||||
Maximum borrowing capacity | $ 1,600,000 | ||||
Subsequent events | Sixth Amended and Restated Credit Agreement | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Revolving line of credit, number of extension options | property | 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% | ||||
Aggregate borrowing capacity | $ 850,000 | ||||
Subsequent events | Sixth Amended and Restated Credit Agreement | Minimum | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Facility fee (as a percent) | 0.15% | ||||
Subsequent events | Sixth Amended and Restated Credit Agreement | 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% | ||||
Subsequent events | Sixth Amended and Restated Credit Agreement | Maximum | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Facility fee (as a percent) | 0.30% | ||||
Subsequent events | Sixth Amended and Restated Credit Agreement | 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% | ||||
Subsequent events | 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) | 0.75% | ||||
Subsequent events | 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) | 1.60% | ||||
Subsequent events | Investment grade rated | Sixth Amended and Restated Credit Agreement | Minimum | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Facility fee (as a percent) | 0.125% | ||||
Subsequent events | Investment grade rated | Sixth Amended and Restated Credit Agreement | 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) | 0.725% | ||||
Subsequent events | Investment grade rated | Sixth Amended and Restated Credit Agreement | Maximum | Unsecured credit facility revolving line of credit | |||||
Term Loans and Line of Credit Facility [Line Items] | |||||
Facility fee (as a percent) | 0.30% | ||||
Subsequent events | Investment grade rated | Sixth Amended and Restated Credit Agreement | 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) | 1.40% |
Debt - Summary of Unsecured Ter
Debt - Summary of Unsecured Term Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Aug. 04, 2021 |
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 | |||
Debt Instrument [Line Items] | |||
Reference rate for variable interest rate | LIBOR | ||
LIBOR | Term Loan Due 2023 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.25% | 1.25% | |
LIBOR | Term Loan Due 2024 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.20% | 1.20% | |
LIBOR | Term Loan Due 2026 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.60% | 1.60% | |
Minimum | LIBOR | Term Loan Due 2023 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.20% | ||
Minimum | LIBOR | Term Loan Due 2024 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.20% | ||
Minimum | LIBOR | Term Loan Due 2026 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.50% | ||
Maximum | LIBOR | Term Loan Due 2023 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.85% | ||
Maximum | LIBOR | Term Loan Due 2024 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.70% | ||
Maximum | LIBOR | Term Loan Due 2026 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 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% | ||
Subsequent events | Term Loan Due 2026 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 150,000 | ||
Subsequent events | Minimum | LIBOR | Term Loan Due 2026 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.20% | ||
Subsequent events | Maximum | LIBOR | Term Loan Due 2026 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.70% | ||
Subsequent events | Investment grade rated | Minimum | LIBOR | Term Loan Due 2026 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 0.75% | ||
Subsequent events | Investment grade rated | Maximum | LIBOR | Term Loan Due 2026 | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread (as a percent) | 1.60% |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Long-term Debt, Fiscal Year Maturity | ||
2021 | $ 1,215 | |
2022 | 26,641 | |
2023 | 231,758 | |
2024 | 271,737 | |
2025 | 351,809 | |
Thereafter | 877,802 | |
Total | $ 1,760,962 | |
Long-term Debt, Weighted Average Interest Rate | ||
2021 | 4.08% | |
2022 | 4.81% | |
2023 | 4.10% | |
2024 | 3.83% | |
2025 | 4.00% | |
Thereafter | 4.37% | |
Total | 4.19% | |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Discount, net of accumulated amortization | $ (428) | $ (450) |
Capitalized loan fees, net of accumulated amortization | (160) | (192) |
Unsecured term loans | ||
Debt Instrument [Line Items] | ||
Capitalized loan fees, net of accumulated amortization | (2,105) | |
Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Discount, net of accumulated amortization | (6,044) | (6,473) |
Capitalized loan fees, net of accumulated amortization | $ (6,912) | $ (7,527) |
Long-term Debt, Weighted Average Interest Rate | ||
Total | 4.42% | 4.42% |
Consolidated indebtedness | ||
Debt Instrument [Line Items] | ||
Weighted average years to maturity | 5 years 4 months 24 days | |
Fixed rate debt | ||
Long-term Debt, Fiscal Year Maturity | ||
2021 | $ 1,215 | |
2022 | 26,641 | |
2023 | 231,758 | |
2024 | 271,737 | |
2025 | 351,809 | |
Thereafter | 877,802 | |
Total | $ 1,760,962 | |
Long-term Debt, Weighted Average Interest Rate | ||
2021 | 4.08% | |
2022 | 4.81% | |
2023 | 4.10% | |
2024 | 3.83% | |
2025 | 4.00% | |
Thereafter | 4.37% | |
Total | 4.19% | |
Fixed rate debt | Mortgages payable | ||
Debt Instrument [Line Items] | ||
Weighted average years to maturity | 3 years 6 months | 4 years 1 month 6 days |
Long-term Debt, Fiscal Year Maturity | ||
2021 | $ 1,215 | |
2022 | 26,641 | |
2023 | 31,758 | |
2024 | 1,737 | |
2025 | 1,809 | |
Thereafter | 27,802 | |
Total | $ 90,962 | $ 92,156 |
Long-term Debt, Weighted Average Interest Rate | ||
Total | 4.37% | 4.36% |
Fixed rate debt | Unsecured term loans | ||
Long-term Debt, Fiscal Year Maturity | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 200,000 | |
2024 | 120,000 | |
2025 | 0 | |
Thereafter | 150,000 | |
Total | 470,000 | |
Fixed rate debt | Unsecured notes payable | ||
Long-term Debt, Fiscal Year Maturity | ||
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 150,000 | |
2025 | 350,000 | |
Thereafter | 700,000 | |
Total | $ 1,200,000 | |
Variable rate debt | ||
Long-term Debt, Weighted Average Interest Rate | ||
2021 | 0.00% | |
2022 | 1.20% | |
2023 | 0.00% | |
2024 | 0.00% | |
2025 | 0.00% | |
Thereafter | 0.00% | |
Total | 1.20% | |
Variable rate debt | Unsecured revolving line of credit | ||
Long-term Debt, Fiscal Year Maturity | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total | $ 0 | |
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% |
4.82% Notes Due 2029 | Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.82% | 4.82% |
4.75% Notes Due 2030 | Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.75% | 4.75% |
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 | ||
Debt Instrument [Line Items] | ||
Reference rate for variable interest rate | LIBOR | |
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) | 1.25% | |
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) | 1.60% |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Details) $ in Thousands | Jun. 30, 2021USD ($)instrument | Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)instrument |
Derivative [Line Items] | ||||||
Interest expense | $ 18,776 | $ 19,360 | $ 37,528 | $ 36,406 | ||
Two $100,000 interest rate swaps maturing in 2023 | ||||||
Derivative [Line Items] | ||||||
Notional | $ 200,000 | $ 200,000 | $ 200,000 | |||
Fixed interest rate (as a percent) | 2.85% | 2.85% | 2.85% | |||
Three $40,000 interest rate swaps maturing in 2024 | ||||||
Derivative [Line Items] | ||||||
Notional | $ 120,000 | $ 120,000 | $ 120,000 | |||
Fixed interest rate (as a percent) | 1.68% | 1.68% | 1.68% | |||
Three $50,000 interest rate swaps maturing in 2026 | ||||||
Derivative [Line Items] | ||||||
Notional | $ 150,000 | $ 150,000 | $ 150,000 | |||
Fixed interest rate (as a percent) | 1.77% | 1.77% | 1.77% | |||
Cash flow hedges | Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Number of instruments | instrument | 8 | 8 | 8 | 8 | ||
Amount expected to be reclassified to interest expense over the next 12 months | $ 9,789 | |||||
Notional | 470,000 | $ 470,000 | $ 470,000 | $ 470,000 | ||
Fair value of derivative liability | $ 22,827 | 22,827 | 22,827 | $ 31,666 | ||
Interest expense | $ 18,776 | $ 19,360 | $ 37,528 | $ 36,406 | ||
Cash flow hedges | Two $100,000 interest rate swaps maturing in 2023 | ||||||
Derivative [Line Items] | ||||||
Number of instruments | instrument | 2 | 2 | 2 | |||
Notional | $ 200,000 | $ 200,000 | $ 200,000 | |||
Fixed interest rate (as a percent) | 2.85% | 2.85% | 2.85% | |||
Cash flow hedges | Three $40,000 interest rate swaps maturing in 2024 | ||||||
Derivative [Line Items] | ||||||
Number of instruments | instrument | 3 | 3 | 3 | |||
Notional | $ 120,000 | $ 120,000 | $ 120,000 | |||
Fixed interest rate (as a percent) | 1.68% | 1.68% | 1.68% | |||
Cash flow hedges | Three $50,000 interest rate swaps maturing in 2026 | ||||||
Derivative [Line Items] | ||||||
Number of instruments | instrument | 3 | 3 | 3 | |||
Notional | $ 150,000 | $ 150,000 | $ 150,000 | |||
Fixed interest rate (as a percent) | 1.77% | 1.77% | 1.77% | |||
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 | |||||
Fair value of derivative liability | 1,699 | |||||
Interest expense | $ 64 | |||||
LIBOR | ||||||
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 | |||||
Unsecured credit facility term loan due 2021 | ||||||
Derivative [Line Items] | ||||||
Repayment of unsecured term loan | $ 250,000 |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Interest rate swaps - Cash flow hedges $ in Thousands | Jun. 30, 2021USD ($)instrument | Dec. 31, 2020USD ($)instrument |
Derivative [Line Items] | ||
Number of instruments | instrument | 8 | 8 |
Notional | $ | $ 470,000 | $ 470,000 |
Derivatives - Estimated Fair Va
Derivatives - Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Interest rate swaps | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $ 22,827 | $ 31,666 |
Derivatives - Effect on Stateme
Derivatives - Effect on Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Interest expense presented in the Statements of Operations in which the effects of cash flow hedges are recorded | $ 18,776 | $ 19,360 | $ 37,528 | $ 36,406 |
Interest rate swaps | Cash flow hedges | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Amount of loss (gain) recognized in other comprehensive income on derivative | 1,717 | 2,301 | (3,889) | 30,954 |
Amount of loss reclassified from AOCI into income | 2,501 | 2,995 | 5,014 | 4,066 |
Interest expense presented in the Statements of Operations in which the effects of cash flow hedges are recorded | $ 18,776 | $ 19,360 | $ 37,528 | $ 36,406 |
Equity (Details)
Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Apr. 01, 2021 | |
2015 Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Maximum authorized amount for stock repurchases | $ 500,000 | ||
Number of common shares repurchased | 0 | 0 | |
Remaining authorized repurchase amount | $ 189,105 | ||
2021 ATM Equity Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Maximum aggregate offering price | $ 250,000 | ||
Number of common shares sold | 0 | ||
Aggregate offering price of remaining shares available for sale | $ 250,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Numerator: | |||||||
Net income (loss) | $ 15,387 | $ (7,347) | $ 20,100 | $ 15,010 | |||
Net loss attributable to noncontrolling interests | 9 | 0 | 9 | 0 | |||
Net income (loss) attributable to common shareholders | 15,396 | (7,347) | 20,109 | 15,010 | |||
Earnings allocated to unvested restricted shares | (69) | (135) | (119) | (244) | |||
Net income (loss) attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ 15,327 | $ (7,482) | $ 19,990 | $ 14,766 | |||
Denominator for earnings (loss) per common share – basic: | |||||||
Weighted average number of common shares outstanding | 213,813 | 213,337 | 213,732 | 213,276 | |||
Effect of dilutive securities: | |||||||
Stock options | 0 | 0 | 0 | 0 | |||
RSUs | 256 | 0 | 477 | 0 | |||
Denominator for earnings (loss) per common share – diluted: | |||||||
Weighted average number of common and common equivalent shares outstanding | 214,069 | 213,337 | 214,209 | 213,276 | |||
Earnings Per Share, Other Disclosures | |||||||
Weighted average number of shares of restricted common stock | 939 | 825 | 909 | 751 | |||
Antidilutive Securities Excluded from Computation of Earnings per Share [Line Items] | |||||||
Number of options outstanding | 10 | 16 | 10 | 16 | 10 | 16 | |
Weighted average exercise price of outstanding options (in dollars per share) | $ 15.12 | $ 15.87 | $ 15.12 | $ 15.87 | $ 15.12 | $ 15.87 | |
Weighted average number of RSUs | 1,166 | 974 | 1,162 | 971 | |||
Restricted shares | |||||||
Earnings Per Share, Other Disclosures | |||||||
Unvested restricted common stock | 904 | 868 | 904 | 868 | 904 | 868 | 685 |
Stock options | |||||||
Antidilutive Securities Excluded from Computation of Earnings per Share [Line Items] | |||||||
Number of outstanding options that would be anti-dilutive | 10 | 16 | |||||
Weighted average exercise price of outstanding options excluded from diluted EPS (in dollars per share) | $ 15.12 | $ 15.87 | $ 15.12 | $ 15.87 | $ 15.12 | $ 15.87 | |
RSUs | |||||||
Earnings Per Share, Other Disclosures | |||||||
Unvested restricted common stock | 1,166 | 1,166 | 1,166 | 974 | |||
Antidilutive Securities Excluded from Computation of Earnings per Share [Line Items] | |||||||
Number of RSUs eligible for future conversion | 1,166 | 974 | 1,166 | 974 | 1,166 | 974 |
Provision for Impairment of I_3
Provision for Impairment of Investment Properties - Impairment Indicators (Details) - property | Jun. 30, 2021 | Jun. 30, 2020 |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Number of properties for which indicators of impairment were identified | 6 | 2 |
Number of properties for which an impairment charge was recorded | 0 | 0 |
Number of properties held for sale with impairment indicators but not impaired | 2 | 0 |
Remaining properties with impairment indicators but not impaired | 4 | 2 |
Weighted average percentage by which projected undiscounted cash flows exceeded carrying value for remaining properties | 172.00% | 166.00% |
Provision for Impairment of I_4
Provision for Impairment of Investment Properties - Impairment Charges (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)ft² | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)ft² | Dec. 31, 2020USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Provision for impairment of investment properties | $ 0 | $ 0 | $ 0 | $ 346 | $ 2,279 |
Estimated fair value of impaired property as of impairment date | $ 11,644 | ||||
King Philip's Crossing | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Square footage | ft² | 105,900 | 105,900 | |||
Provision for impairment of investment properties | $ 346 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial liabilities: | ||
Mortgages payable, net | $ 90,374 | $ 91,514 |
Unsecured notes payable, net | 1,187,044 | 1,186,000 |
Unsecured term loans, net | 467,895 | 467,559 |
Unsecured revolving line of credit | 0 | 0 |
Carrying Value | ||
Financial liabilities: | ||
Mortgages payable, net | 90,374 | 91,514 |
Unsecured notes payable, net | 1,187,044 | 1,186,000 |
Unsecured term loans, net | 467,895 | 467,559 |
Unsecured revolving line of credit | 0 | 0 |
Derivative liability | 22,827 | 31,666 |
Fair Value | ||
Financial liabilities: | ||
Mortgages payable, net | 91,982 | 93,664 |
Unsecured notes payable, net | 1,295,501 | 1,253,928 |
Unsecured term loans, net | 470,238 | 464,072 |
Unsecured revolving line of credit | 0 | 0 |
Derivative liability | $ 22,827 | $ 31,666 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 22,827 | $ 31,666 |
Fair value, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 22,827 | $ 31,666 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Provision for impairment | $ 0 | $ 0 | $ 0 | $ 346 | $ 2,279 |
Nonrecurring Fair Value Measurements | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of investment property | 2,500 | ||||
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 | $ 2,500 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Disclosures (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgages payable, net | $ 90,374 | $ 91,514 |
Unsecured notes payable, net | 1,187,044 | 1,186,000 |
Unsecured term loans, net | 467,895 | 467,559 |
Unsecured revolving line of credit | 0 | 0 |
Fair Value, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unsecured notes payable, net | 817,633 | 790,379 |
Fair Value, Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgages payable, net | 91,982 | 93,664 |
Unsecured notes payable, net | 477,868 | 463,549 |
Unsecured term loans, net | 470,238 | 464,072 |
Unsecured revolving line of credit | 0 | 0 |
Fair Value, Total | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgages payable, net | 91,982 | 93,664 |
Unsecured notes payable, net | 1,295,501 | 1,253,928 |
Unsecured term loans, net | 470,238 | 464,072 |
Unsecured revolving line of credit | 0 | 0 |
Unsecured notes payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unsecured notes payable, net | $ 1,200,000 | $ 1,200,000 |
Discount rate | Unsecured revolving line of credit | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.0110 | 0.0168 |
Minimum | Discount rate | Mortgages payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.032 | 0.035 |
Maximum | Discount rate | Mortgages payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.044 | 0.042 |
Weighted average | Discount rate | Unsecured notes payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.0314 | 0.0384 |
Weighted average | Discount rate | Unsecured term loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Input for measuring debt | 0.0133 | 0.0171 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Jun. 30, 2021USD ($)property | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($) |
Commitments and Contingencies [Line Items] | |||
Amount of letters of credit outstanding | $ 291 | $ 291 | |
Number of properties with letters of credit | property | 1 | 1 | |
Aggregate proceeds, net | $ 0 | $ 11,369 | |
Circle East | |||
Commitments and Contingencies [Line Items] | |||
Redevelopment costs incurred | $ 28,929 | 28,929 | |
Circle East | Minimum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 46,000 | 46,000 | |
Circle East | Maximum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 48,000 | 48,000 | |
One Loudoun Downtown - Pads G & H | |||
Commitments and Contingencies [Line Items] | |||
Redevelopment costs incurred | 95,546 | 95,546 | |
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 | |
The Shoppes at Quarterfield | |||
Commitments and Contingencies [Line Items] | |||
Redevelopment costs incurred | 4,266 | 4,266 | |
The Shoppes at Quarterfield | Minimum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 9,700 | 9,700 | |
The Shoppes at Quarterfield | Maximum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 10,700 | 10,700 | |
Southlake Town Square - Pad | |||
Commitments and Contingencies [Line Items] | |||
Redevelopment costs incurred | 2,154 | 2,154 | |
Southlake Town Square - Pad | Minimum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 2,000 | 2,000 | |
Southlake Town Square - Pad | Maximum | |||
Commitments and Contingencies [Line Items] | |||
Net estimated redevelopment costs | 2,500 | $ 2,500 | |
Circle East, air rights | |||
Commitments and Contingencies [Line Items] | |||
Aggregate proceeds, net | $ 11,820 |
Litigation (Details)
Litigation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Litigation Settlement [Abstract] | ||||
Gain on litigation settlement | $ 0 | $ 0 | $ 0 | $ 6,100 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Jul. 09, 2021$ / shares | Aug. 04, 2021USD ($)ft²$ / shares | Jun. 30, 2021$ / shares | Jun. 30, 2021$ / shares | Jun. 30, 2020$ / shares | Jul. 18, 2021shares |
Subsequent Event [Line Items] | ||||||
Dividends declared to common shareholders (in dollars per share) | $ 0.075 | $ 0.145 | $ 0.165625 | |||
Subsequent events | Sixth Amended and Restated Credit Agreement | Unsecured credit facility revolving line of credit | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate borrowing capacity | $ | $ 850,000 | |||||
Subsequent events | Arcadia Village | ||||||
Subsequent Event [Line Items] | ||||||
Square footage | ft² | 37,000 | |||||
Acquisition price | $ | $ 21,000 | |||||
Subsequent events | Class A common stock | ||||||
Subsequent Event [Line Items] | ||||||
Dividends paid to common shareholders (in dollars per share) | $ 0.075 | |||||
Dividends declared to common shareholders (in dollars per share) | $ 0.075 | |||||
Subsequent events | Kite Realty Group Trust | RPAI | ||||||
Subsequent Event [Line Items] | ||||||
Common share conversion rate per Merger Agreement (in shares) | shares | 0.623 |