Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | ||||
Mar. 31, 2014 | 5-May-14 | 5-May-14 | 5-May-14 | 5-May-14 | |
Class E | Class A | Class W | Class I | ||
Document Information [Line Items] | ' | ' | ' | ' | ' |
Document Type | '10-Q | ' | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' | ' | ' |
Entity Registrant Name | 'Dividend Capital Diversified Property Fund Inc. | ' | ' | ' | ' |
Entity Central Index Key | '0001327978 | ' | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 170,864,860 | 813,619 | 569,607 | 5,112,079 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Investments in real property | $2,345,681 | $2,376,864 | ||
Accumulated depreciation and amortization | -466,047 | -452,222 | ||
Total net investments in real property | 1,879,634 | [1] | 1,924,642 | [1] |
Debt related investments, net | 94,180 | 123,935 | ||
Total net investments | 1,973,814 | 2,048,577 | ||
Cash and cash equivalents | 81,292 | 24,778 | ||
Restricted cash | 35,209 | 25,550 | ||
Other assets, net | 67,856 | 60,328 | ||
Assets held for sale | 3,301 | [2] | 146,176 | [2] |
Total Assets | 2,161,472 | 2,305,409 | ||
Liabilities: | ' | ' | ||
Mortgage notes and other secured borrowings | 918,716 | [3] | 943,045 | [3] |
Unsecured borrowings | 270,000 | 300,000 | ||
Intangible lease liabilities, net | 72,389 | 74,413 | ||
Other liabilities | 93,666 | 96,272 | ||
Liabilities associated with assets held for sale | 58 | [4] | 86,668 | [4] |
Total Liabilities | 1,354,829 | 1,500,398 | ||
Stockholders' equity: | ' | ' | ||
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 175,461,058 and 176,006,755 shares issued and outstanding, as of March 31, 2014 and December 31, 2013, respectively | 1,755 | [5] | 1,760 | [5] |
Additional paid-in capital | 1,576,970 | 1,582,886 | ||
Distributions in excess of earnings | -848,768 | -860,747 | ||
Accumulated other comprehensive loss | -10,586 | -10,794 | ||
Total stockholders' equity | 719,371 | 713,105 | ||
Noncontrolling interests | 87,272 | 91,906 | ||
Total Equity | 806,643 | 805,011 | ||
Total Liabilities and Equity | $2,161,472 | $2,305,409 | ||
[1] | Includes approximately $81.9 million and $82.4 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[2] | Includes approximately $0 and $143.0 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[3] | Includes approximately $60.4 million and $60.7 million in consolidated mortgage notes in variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[4] | Includes approximately $0 and $80.4 million in consolidated mortgage notes in variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[5] | Includes 170,144,935 shares of Class E common stock, 563,912 shares of ClassB A common stock, 407,416 shares of Class W common stock, and 4,344,795 shares of Class I common stock issued and outstanding as of March 31, 2014, and 171,254,036 shares of Class E common stock, 216,745 shares of ClassB A common stock, 208,889B shares of Class W common stock, and 4,327,085 shares of Class I common stock issued and outstanding as of DecemberB 31, 2013. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Common stock, par value | $0.01 | $0.01 | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common stock, shares issued | 175,461,058 | [1] | 176,006,755 | [1] |
Common stock, shares outstanding | 175,461,058 | [1] | 176,006,755 | [1] |
Investment in real property | $1,879,634,000 | [2] | $1,924,642,000 | [2] |
Class E | ' | ' | ||
Common stock, shares issued | 170,144,935 | 171,254,036 | ||
Class A | ' | ' | ||
Common stock, shares issued | 563,912 | 216,745 | ||
Class W | ' | ' | ||
Common stock, shares issued | 407,416 | 208,889 | ||
Class I | ' | ' | ||
Common stock, shares issued | 4,344,795 | 4,327,085 | ||
Variable interest entity investments | ' | ' | ||
Investment in real property | 81,900,000 | 82,400,000 | ||
Mortgage notes | 60,400,000 | 60,700,000 | ||
Variable interest entity investments | Assets Held for Sale [Member] | ' | ' | ||
Investment in real property | 0 | 143,000,000 | ||
Variable interest entity investments | Liabilities of Assets Held for Sale [Member] | ' | ' | ||
Mortgage notes | $0 | $80,400,000 | ||
[1] | Includes 170,144,935 shares of Class E common stock, 563,912 shares of ClassB A common stock, 407,416 shares of Class W common stock, and 4,344,795 shares of Class I common stock issued and outstanding as of March 31, 2014, and 171,254,036 shares of Class E common stock, 216,745 shares of ClassB A common stock, 208,889B shares of Class W common stock, and 4,327,085 shares of Class I common stock issued and outstanding as of DecemberB 31, 2013. | |||
[2] | Includes approximately $81.9 million and $82.4 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
REVENUE: | ' | ' | ||
Rental revenue | $55,060 | $50,636 | ||
Debt related income | 2,013 | 2,735 | ||
Total Revenue | 57,073 | 53,371 | ||
EXPENSES: | ' | ' | ||
Rental expense | 13,347 | 10,896 | ||
Real estate depreciation and amortization expense | 22,350 | 21,259 | ||
General and administrative expenses | 2,819 | [1] | 2,361 | [1] |
Advisory fees, related party | 3,743 | 3,684 | ||
Total Operating Expenses | 42,259 | 38,200 | ||
Other Income (Expenses): | ' | ' | ||
Interest and other income (expense) | -78 | -104 | ||
Interest expense | -16,168 | -16,550 | ||
Loss on extinguishment of debt and financing commitments | -63 | -270 | ||
Gain on sale of real property | 3,626 | ' | ||
Income (loss) from continuing operations | 2,131 | -1,753 | ||
Discontinued operations, net of taxes | 29,857 | [2] | -4,113 | [2] |
Net Income (loss) | 31,988 | -5,866 | ||
Net income attributable to noncontrolling interests | -4,550 | 499 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $27,438 | ($5,367) | ||
Net income (loss) per basic and diluted common share: | ' | ' | ||
Continuing operations | $0.01 | ($0.01) | ||
Discontinued operations | $0.14 | ($0.02) | ||
NET INCOME (LOSS) PER BASIC AND DILUTED COMMON SHARE | $0.15 | ($0.03) | ||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ' | ' | ||
Basic | 176,873 | 178,792 | ||
Diluted | 189,993 | 192,927 | ||
Distributions declared per common share | $0.09 | $0.09 | ||
[1] | Includes approximately $1.6 million and $1.0 million, paid to our Advisor and its affiliates for reimbursable expenses during the three months ended March 31, 2014 and 2013, respectively. | |||
[2] | Includes approximately $1.9 million and $85,000, paid to our Advisor for advisory fees associated with the disposition of real properties during the three months ended March 31, 2014 and 2013, respectively. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (Related Party [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
General and administrative expenses | $1,600 | $1,000 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS [Abstract] | ' | ' |
Net Income (Loss) | $31,988 | ($5,866) |
Other Comprehensive Income (Loss): | ' | ' |
Net unrealized change from available-for-sale securities | -211 | ' |
Unrealized change from cash flow hedging derivatives | 321 | 646 |
Comprehensive income (loss) | 32,098 | -5,220 |
Comprehensive (loss) income attributable to noncontrolling interests | -4,452 | 452 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $27,646 | ($4,768) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning Balances at Dec. 31, 2013 | $1,760 | $1,582,886 | ($860,747) | ($10,794) | $91,906 | $805,011 | |
Beginning Balances (in shares) at Dec. 31, 2013 | 176,007,000 | ' | ' | ' | ' | 176,006,755 | [1] |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | |
Net income | ' | ' | 27,438 | ' | 4,550 | 31,988 | |
Net unrealized change from available-for-sale securities | ' | ' | ' | -196 | -15 | -211 | |
Unrealized change from cash flow hedging derivatives | ' | ' | ' | 300 | 21 | 321 | |
Common stock: | ' | ' | ' | ' | ' | ' | |
Issuance of common stock, net of offering costs (in shares) | 1,332,000 | ' | ' | ' | ' | ' | |
Issuance of common stock, net of offering costs | 14 | 8,670 | ' | ' | ' | 8,684 | |
Redemptions of common stock (in shares) | -1,878,000 | ' | ' | ' | ' | ' | |
Redemptions of common stock | -19 | -13,082 | ' | ' | ' | -13,101 | |
Amortization of stock based compensation | ' | 7 | ' | ' | ' | 7 | |
Distributions declared on common stock | ' | ' | -15,459 | ' | ' | -15,459 | |
Noncontrolling interests: | ' | ' | ' | ' | ' | ' | |
Distributions declared to noncontrolling interests | ' | ' | ' | ' | -5,929 | -5,929 | |
Redemptions of noncontrolling interests | ' | -541 | ' | 104 | -2,445 | -2,882 | |
Buyout of noncontrolling interest | ' | -970 | ' | ' | -816 | -1,786 | |
Ending Balances at Mar. 31, 2014 | $1,755 | $1,576,970 | ($848,768) | ($10,586) | $87,272 | $806,643 | |
Ending Balances (in shares) at Mar. 31, 2014 | 175,461,000 | ' | ' | ' | ' | 175,461,058 | [1] |
[1] | Includes 170,144,935 shares of Class E common stock, 563,912 shares of ClassB A common stock, 407,416 shares of Class W common stock, and 4,344,795 shares of Class I common stock issued and outstanding as of March 31, 2014, and 171,254,036 shares of Class E common stock, 216,745 shares of ClassB A common stock, 208,889B shares of Class W common stock, and 4,327,085 shares of Class I common stock issued and outstanding as of DecemberB 31, 2013. |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
OPERATING ACTIVITIES: | ' | ' | ||
Net Income (Loss) | $31,988 | ($5,866) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ||
Real estate depreciation and amortization expense | 22,350 | 30,524 | ||
Gain on disposition of real property | -33,155 | -1,213 | ||
Loss on extinguishment of debt and financing commitments | 63 | 270 | ||
Other adjustments to reconcile loss to net cash provided by operating activities | 2,462 | 1,809 | ||
Changes in operating assets and liabilities | -6,686 | -8,072 | ||
Net cash provided by operating activities | 17,022 | 17,452 | ||
INVESTING ACTIVITIES: | ' | ' | ||
Capital expenditures in real property | -4,276 | -5,397 | ||
Proceeds from disposition of real property | 90,383 | 7,879 | ||
Investment in debt related investments | ' | -3,653 | ||
Principal collections on debt related investments | 18,415 | 15,512 | ||
Other investing activities | 1,214 | 638 | ||
Net cash provided by investing activities | 105,736 | 14,979 | ||
FINANCING ACTIVITIES: | ' | ' | ||
Mortgage note principal repayments | -3,418 | -18,513 | ||
Net (repayments of) proceeds from revolving line of credit borrowings | -30,000 | 25,000 | ||
Repayment of other secured borrowings | -303 | -13,666 | ||
Redemption of common shares | -14,109 | -11,430 | ||
Distributions on common stock | -10,287 | -10,210 | ||
Proceeds from sale of common stock | 4,072 | 795 | ||
Offering costs for issuance of common stock | -816 | -414 | ||
Distributions to noncontrolling interest holders | -5,955 | -1,495 | ||
Other financing activities | -5,428 | -2,577 | ||
Net cash used in financing activities | -66,244 | -32,510 | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 56,514 | -79 | ||
CASH AND CASH EQUIVALENTS, beginning of period | 24,778 | 36,872 | ||
CASH AND CASH EQUIVALENTS, end of period | 81,292 | 36,793 | ||
Supplemental Disclosure of Cash Flow Information: | ' | ' | ||
Cash paid for interest | 14,910 | 19,602 | ||
Amount issued pursuant to the distribution reinvestment plan | 5,238 | 5,505 | ||
Non-cash principal collection on debt related investments | 7,125 | [1] | 9,646 | [1] |
Non-cash disposition of real property | 94,011 | [1] | ' | |
Non-cash reduction of mortgage note and other secured borrowings | $101,136 | [1] | ' | |
[1] | Represents the amount of sales proceeds and debt repayments from the disposition of real property or the repayment of borrowings that we did not receive or pay in cash, primarily due to the repayment or assumption of related borrowings by the purchaser or borrower at closing. |
Organization
Organization | 3 Months Ended |
Mar. 31, 2014 | |
Organization [Abstract] | ' |
Organization | ' |
1. ORGANIZATION | |
Dividend Capital Diversified Property Fund Inc. is a Maryland corporation formed on April 11, 2005 to invest in a diverse portfolio of real property and real estate related investments. As used herein, “the Company,” “we,” “our” and “us” refer to Dividend Capital Diversified Property Fund Inc. and its consolidated subsidiaries and partnerships except where the context otherwise requires. | |
We believe we have operated in such a manner as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes, and we utilize an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) organizational structure to hold all or substantially all of our assets through our operating partnership, Dividend Capital Total Realty Operating Partnership, L.P. (our “Operating Partnership”). Furthermore, our Operating Partnership wholly owns a taxable REIT subsidiary, DCTRT Leasing Corp. (the “TRS”), through which we have executed certain business transactions that might otherwise have an adverse impact on our status as a REIT if such business transactions were to occur directly or indirectly through our Operating Partnership. | |
We are the sole general partner of our Operating Partnership. In addition, we have contributed 100% of the proceeds received from our offerings of common stock to our Operating Partnership in exchange for partnership units (“OP Units”) representing our interest as a limited partner of the Operating Partnership. As of March 31, 2014 and December 31, 2013, we owned approximately 93.2% and 93.0%, respectively, of the limited partnership interests in our Operating Partnership, and the remaining limited partnership interests in our Operating Partnership were owned by third-party investors. Our Operating Partnership has classes of OP Units that correspond to our four classes of common stock: Class E OP Units, Class A OP Units, Class W OP Units, and Class I OP Units. The OP Units held by third parties are all Class E OP Units. As of March 31, 2014 and December 31, 2013, our Operating Partnership had issued and outstanding approximately 12.9 million and 13.3 million Class E OP Units held by third party investors, respectively, which represent limited partnership interests issued in connection with its private placement offerings. | |
Dividend Capital Total Advisors LLC (our “Advisor”), a related party, manages our day-to-day activities under the terms and conditions of an advisory agreement (as amended from time to time, the “Advisory Agreement”). Our Advisor and its affiliates receive various forms of compensation, reimbursements and fees for services relating to the investment and management of our real estate assets. | |
On July 12, 2012, the Securities and Exchange Commission (the “Commission”) declared effective our Registration Statement on Form S-11 (Registration Number 333-175989) (as amended, the “Registration Statement”). The Registration Statement applies to the offer and sale (the “Offering”) of up to $3,000,000,000 of our shares of common stock, of which $2,250,000,000 of shares are expected to be offered to the public in a primary offering and $750,000,000 of shares are expected to be offered to our stockholders pursuant to an amended and restated distribution reinvestment plan (subject to our right to reallocate such amounts). In the Offering, we are offering to the public three classes of shares: Class A shares, Class W shares and Class I shares with net asset value (“NAV”) based pricing. See Part I, Item 2 of this Quarterly Report on Form 10-Q for a description of our valuation procedures and valuation components, including important disclosure regarding real property valuations provided by Altus Group U.S., Inc., an independent valuation firm. Our independent registered public accounting firm does not audit our NAV. Selling commissions, dealer manager fees, and distribution fees are allocated to Class A shares, Class W shares, and Class I shares on a class-specific basis and differ for each class, even when the NAV of each class is the same. We are offering to sell any combination of Class A shares, Class W shares and Class I shares with a dollar value up to the maximum offering amount. We also sell shares of our unclassified common stock, which we refer to as “Class E” shares, pursuant to our distribution reinvestment plan offering registered on our Registration Statement on Form S-3 (Registration Number 333-162636). In the event of a liquidation event, our assets, or the proceeds therefrom, will be distributed ratably in proportion to the respective NAV for each class until the NAV for each class has been paid. Other than differing allocable fees and expenses and liquidation rights, Class E shares, Class A shares, Class W shares, and Class I shares have identical rights and privileges. | |
As of March 31, 2014, we had raised gross proceeds of approximately $36.5 million from the sale of approximately 5.3 million shares in the Offering, including approximately $256,000 through our distribution reinvestment plan. As of March 31, 2014, approximately $2,963.5 million in shares remained available for sale pursuant to the Offering, including approximately $749.7 million in shares available for sale through our distribution reinvestment plan. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Interim Financial Statements | |
The accompanying interim condensed consolidated financial statements (herein referred to as “financial statements,” “balance sheets,” “statements of operations,” “statement of equity,” or “statements of comprehensive income and loss”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the Commission instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, these statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments and eliminations, consisting only of normal recurring items necessary for their fair presentation in conformity with GAAP. Interim results are not necessarily indicative of operating results for a full year. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with our audited financial statements and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Commission on March 10, 2014. There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2014 other than the updates described below. | |
Reclassifications | |
Certain amounts included in the accompanying financial statements for 2013 have been reclassified to conform to the 2014 financial statements presentation. Statement of operations amounts for properties disposed of or classified as held for sale as of December 31, 2013, have been reclassified to discontinued operations for all periods presented. Amounts in our segment disclosures in Note 10 reflect the reclassification of amounts related to properties that have been disposed of or classified as held for sale as of December 31, 2013. | |
New Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2014-08 (“ASU 2014-08”), which provides a revised definition of a discontinued operation. ASU 2014-08 requires additional disclosures for a discontinued operation and the disposal of an asset and component of the entity that is not a discontinued operation. Under ASU 2014-08, a discontinued operation is a component (or group of components) of the entity, the disposal of which would represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results, when such component (or group of components) have been disposed of or classified as held for sale. The amendments in the ASU should be applied prospectively and are effective for us beginning January 1, 2015, with early adoption permitted. We adopted this standard effective January 1, 2014. During the three months ended March 31, 2014, we disposed of or classified as held for sale three operating properties that we determined did not meet the definition of discontinued operations under the revised standard. As a result of our adoption of this ASU, we anticipate that fewer of our property dispositions made in the normal course of business will qualify for discontinued operations reporting. See Note 3 for additional information. | |
Investments_in_Real_Property
Investments in Real Property | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Investments in Real Property [Abstract] | ' | |||||||||||||||||
Investments in Real Property | ' | |||||||||||||||||
3. INVESTMENTS IN REAL PROPERTY | ||||||||||||||||||
Our consolidated investments in real property consist of investments in office, industrial and retail properties. The following tables summarize our consolidated investments in real property as of March 31, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||||
Real Property | Land | Building and Improvements | Intangible Lease Assets | Total Investment Amount | Intangible Lease Liabilities | Net Investment Amount | ||||||||||||
As of March 31, 2014: | ||||||||||||||||||
Office (1) | $ | 229,216 | $ | 757,463 | $ | 360,924 | $ | 1,347,603 | $ | -15,861 | $ | 1,331,742 | ||||||
Industrial | 30,619 | 202,528 | 51,999 | 285,146 | -41,011 | 244,135 | ||||||||||||
Retail | 225,408 | 417,957 | 76,287 | 719,652 | -48,966 | 670,686 | ||||||||||||
Total gross book value | 485,243 | 1,377,948 | 489,210 | 2,352,401 | -105,838 | 2,246,563 | ||||||||||||
Accumulated depreciation/amortization | - | -171,300 | -298,166 | -469,466 | 33,449 | -436,017 | ||||||||||||
Total net book value | $ | 485,243 | $ | 1,206,648 | $ | 191,044 | $ | 1,882,935 | $ | -72,389 | $ | 1,810,546 | ||||||
As of December 31, 2013: | ||||||||||||||||||
Office | $ | 232,117 | $ | 769,654 | $ | 365,314 | $ | 1,367,085 | $ | -15,861 | $ | 1,351,224 | ||||||
Industrial (2) | 51,678 | 359,800 | 66,877 | 478,355 | -46,626 | 431,729 | ||||||||||||
Retail | 227,218 | 420,070 | 77,752 | 725,040 | -51,059 | 673,981 | ||||||||||||
Total gross book value | 511,013 | 1,549,524 | 509,943 | 2,570,480 | -113,546 | 2,456,934 | ||||||||||||
Accumulated depreciation/amortization | - | -207,966 | -294,881 | -502,847 | 35,997 | -466,850 | ||||||||||||
Total net book value | $ | 511,013 | $ | 1,341,558 | $ | 215,062 | $ | 2,067,633 | $ | -77,549 | $ | 1,990,084 | ||||||
-1 | Includes $3.1 million in land, $195,000 in building and improvements, $3.4 million in intangible lease assets, and $62,000 in intangible lease liabilities, before accumulated depreciation on assets of $3.4 million and accumulated amortization of intangible lease liabilities of $62,000, related to an office property and a land parcel classified as held for sale in the accompanying balance sheet as of March 31, 2014. | |||||||||||||||||
-2 | Includes $21.1 million in land, $157.7 million in building and improvements, $14.9 million in intangible lease assets, and $5.6 million in intangible lease liabilities, before accumulated depreciation on assets of $50.6 million and accumulated amortization of intangible lease liabilities of $2.5 million, related to 12 industrial properties classified as held for sale in the accompanying balance sheet as of December 31, 2013. | |||||||||||||||||
Dispositions | ||||||||||||||||||
During the three months ended March 31, 2014, we disposed of or classified as held for sale the following properties (dollar amounts and square footage in thousands): | ||||||||||||||||||
Type of Property | Market | DPF Ownership | Building Square Feet | Disposition Date | Gain (Loss) | |||||||||||||
2014 Dispositions | ||||||||||||||||||
Industrial Portfolio | Various(1) | 92.50% | 3,387 | 22-Jan-14 | $ | 29,545 | ||||||||||||
Retail | Boston, MA | 100.00% | 110 | 18-Feb-14 | 2,276 | |||||||||||||
Office | Little Rock, AR | 100.00% | 102 | 25-Feb-14 | 1,350 | |||||||||||||
3,599 | $ | 33,171 | ||||||||||||||||
Assets held for sale | ||||||||||||||||||
Office | East Bay, CA | 100.00% | 60 | |||||||||||||||
Land Parcel | Denver, CO | 100.00% | - | |||||||||||||||
Total | 60 | |||||||||||||||||
(1)Industrial portfolio included twelve properties located in the following markets: Atlanta, GA, Central Pennsylvania, Cincinnati, OH, Columbus, OH, Dallas, TX, Indianapolis, IN, and Minneapolis/St. Paul, MN. | ||||||||||||||||||
Discontinued Operations | ||||||||||||||||||
We present the results of operations and the respective aggregate net gains (losses), of (i) any property or group of properties that were disposed or classified as held for sale as of December 31, 2013 when the operations and cash flows have been (or will be) eliminated from our ongoing operations and we will not have any significant continuing involvement, and (ii) any property or group of properties, the disposal of which would represent a strategic shift that has (or will have) a major effect on our operations and financial results, when such property (or group of properties) have been disposed of or classified as held for sale, as discontinued operations in our accompanying statements of operations. Interest expense is included in discontinued operations only if it is directly attributable to these operations or properties. Discontinued operations for the three months ended March 31, 2014 include the results of operations and net gain on the disposition of 12 properties classified as held for sale as of December 31, 2013. Discontinued operations for the three months ended March 31, 2013 include (i) the results of operations of the 13 properties disposed of during the year ended 2013, (ii) the results of operations of the 12 properties classified as held for sale as of December 31, 2013 and subsequently disposed of, and (iii) the aggregate net gain on dispositions recorded during the three months ended March 31, 2013. The following table summarizes amounts recorded as discontinued operations (amounts in thousands): | ||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Revenues | $ | 995 | $ | 16,038 | ||||||||||||||
Rental expense | -367 | -6,431 | ||||||||||||||||
Real estate depreciation and amortization expense | - | -9,264 | ||||||||||||||||
Interest expense | -296 | -5,601 | ||||||||||||||||
Other expenses | -20 | -68 | ||||||||||||||||
Income (loss) from discontinued operations | 312 | -5,326 | ||||||||||||||||
Gain on disposition, net of taxes | 29,545 | 1,213 | ||||||||||||||||
Discontinued operations, net of taxes | 29,857 | -4,113 | ||||||||||||||||
Discontinued operations attributable to noncontrolling interests | -4,433 | 355 | ||||||||||||||||
Discontinued operations attributable to common stockholders | $ | 25,424 | $ | -3,758 | ||||||||||||||
The following table summarizes capital expenditures and significant operating and investing noncash items related to our discontinued operations (amounts in thousands): | ||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Capital expenditures | $ | - | $ | 2,798 | ||||||||||||||
Noncash items: | ||||||||||||||||||
Straight-line rent adjustments | -41 | 1,283 | ||||||||||||||||
Amortization of above-market lease assets | - | -200 | ||||||||||||||||
Amortization of below-market lease liabilities | - | 482 | ||||||||||||||||
Non-cash disposition of real property | 80,361 | - | ||||||||||||||||
The following table summarizes the carrying amounts of the major classes of assets and liabilities included in our discontinued operations and classified as held for sale as of December 31, 2013, and the carrying amounts of the major classes of assets and liabilities classified as held for sale as of March 31, 2014. As of March 31, 2014, we classified as held for sale (i) an office property that we anticipate disposing of in May 2014, and (ii) a land parcel that was disposed of in April 2014. We did not have any discontinued operations classified as held for sale as of March 31, 2014 (amounts in thousands): | ||||||||||||||||||
As of | ||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||
Land | $ | 3,125 | $ | 21,060 | ||||||||||||||
Building and improvements | 195 | 157,679 | ||||||||||||||||
Intangible lease assets | 3,400 | 14,877 | ||||||||||||||||
Accumulated depreciation | -3,419 | -50,625 | ||||||||||||||||
Other assets, net | - | 3,185 | ||||||||||||||||
Assets held for sale | $ | 3,301 | $ | 146,176 | ||||||||||||||
Mortgage notes and other secured borrowings | $ | - | $ | 80,428 | ||||||||||||||
Intangible lease liabilities, net | - | 3,136 | ||||||||||||||||
Other liabilities | 58 | 3,104 | ||||||||||||||||
Liabilities related to assets held for sale | $ | 58 | $ | 86,668 | ||||||||||||||
Rental Revenue | ||||||||||||||||||
The following table summarizes the adjustments to rental revenue related to the amortization of above-market lease assets, below-market lease liabilities, and straight-line rental adjustments for the three months ended March 31, 2014 and 2013. In addition, the following table includes tenant recovery income received from tenants for real estate taxes, insurance and other property operating expenses and recognized as rental revenue (amounts in thousands): | ||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Straight-line rent adjustments | $ | 1,305 | $ | 2,968 | ||||||||||||||
Above-market lease assets | -1,724 | -1,926 | ||||||||||||||||
Below-market lease liabilities | 1,832 | 2,102 | ||||||||||||||||
Total increase to rental revenue | $ | 1,413 | $ | 3,144 | ||||||||||||||
Tenant recovery income | $ | 8,202 | $ | 8,789 | ||||||||||||||
Debt_Related_Investments
Debt Related Investments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Related Investments [Abstract] | ' | ||||||||
Debt Related Investments | ' | ||||||||
4. DEBT RELATED INVESTMENTS | |||||||||
As of March 31, 2014 and December 31, 2013, we had invested in 11 and 14 debt related investments, respectively. The weighted average maturity of our debt related investments as of March 31, 2014 was 2.8 years, based on our recorded net investment. The following table describes our debt related income for the three months ended March 31, 2014 and 2013 (dollar amounts in thousands): | |||||||||
For the Three Months Ended March 31, | Weighted Average Yield as of | ||||||||
Investment Type | 2014 | 2013 | March 31, 2014 (1) | ||||||
Mortgage notes(2) | $ | 1,351 | $ | 2,429 | 5.40% | ||||
B-notes | - | 51 | 0.00% | ||||||
Mezzanine debt | 662 | 255 | 16.70% | ||||||
Total | $ | 2,013 | $ | 2,735 | 7.30% | ||||
(1)Weighted average yield is calculated on an unlevered basis using the amount invested, current interest rates and accretion of premiums or discounts realized upon the initial investment for each investment type as of March 31, 2014. Yields for LIBOR-based, floating-rate investments have been calculated using the one-month LIBOR rate as of March 31, 2014 for purposes of this table. As of March 31, 2014, we had one debt related investment with a net investment amount of $25.0 million that bears interest at a floating rate indexed to LIBOR. All of our remaining debt related investments bear interest at fixed rates. We have assumed a yield of zero on the one debt related investment for which we have recognized a full allowance for loss as of March 31, 2014. | |||||||||
(2)We had three and two debt related investments repaid in full during the three months ended March 31, 2014 and 2013, respectively. During the three months ended March 31, 2014 and 2013, amounts recorded include early repayment fees received and accelerated amortization of origination fees offset by accelerated amortization of deferred due diligence costs related to certain of these repayments. | |||||||||
Repayments | |||||||||
During the three months ended March 31, 2014, we received full repayment of three debt related investments, all of which were structured as mortgage notes. We received cash proceeds from the repayments of approximately $22.6 million, which comprised principal repayment of $29.7 million (approximately $4.6 million of which was received subsequent to March 31, 2014), partially offset by the repayment of borrowings secured by the debt related investments of approximately $7.1 million. | |||||||||
Impairment | |||||||||
We review each of our debt related investments individually on a quarterly basis, and more frequently when such an evaluation is warranted, to determine if impairment exists. Accordingly, we do not group our debt related investments into classes by credit quality indicator. A debt related investment is impaired when, based on current information and events (including economic, industry and geographical factors), it is probable that we will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the agreement. When an investment is deemed impaired, the impairment is measured based on the expected future cash flows discounted at the investment’s effective interest rate. As a practical expedient, we may measure impairment based on the fair value of the collateral of an impaired collateral-dependent debt investment. Regardless of the measurement method, we measure impairment based on the fair value of the collateral when it is determined that foreclosure is probable. We had recorded a provision for loan loss of $3.0 million as of March 31, 2014 and December 31, 2013. We did not record any current period provision for loan loss, direct write-downs of the allowance, or recoveries of amounts previously charged off during the three months ended March 31, 2014. | |||||||||
We had one B-note debt investment on non-accrual status as of both March 31, 2014 and December 31, 2013. We have recorded a complete allowance for loan loss related to such debt related investment on non-accrual status. When a debt investment is on non-accrual status, we record income on the investment using the cash basis of accounting. The amount of income recorded on a cash basis of accounting was not significant during the three months ended March 31, 2014 or 2013. All of our debt related investments that were past due 90 days or more were on non-accrual status as of March 31, 2014 and December 31, 2013. | |||||||||
As of both March 31, 2014 and December 31, 2013, we had one impaired debt related investment with an unpaid principal balance of approximately $3.0 million. The following table describes our recorded investment in debt related investments before allowance for loan loss, and the related allowance for loan loss (amounts in thousands): | |||||||||
Debt Investments Individually Evaluated for Impairment as of | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Debt investments | $ | 97,180 | $ | 126,935 | |||||
Less: Allowance for loan losses | -3,000 | -3,000 | |||||||
Total | $ | 94,180 | $ | 123,935 | |||||
Our impaired debt investment is a subordinate debt investment. As of both March 31, 2014 and December 31, 2013, we had a gross recorded investment in impaired debt related investments of $3.0 million, with a related allowance for loan loss of $3.0 million. As of March 31, 2014 and December 31, 2013, we did not have any impaired loans for which we have not recorded an allowance for loan loss. | |||||||||
The following table describes our average recorded net investment in the impaired debt related investments and the related interest income recorded (amounts in thousands): | |||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Average Recorded Investment | $ | - | $ | 6,067 | |||||
Interest Income Recognized | $ | - | $ | 51 | |||||
Debt_Obligations
Debt Obligations | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Debt Obligations [Abstract] | ' | |||||||||||||||
Debt Obligations | ' | |||||||||||||||
5. DEBT OBLIGATIONS | ||||||||||||||||
The following table describes our borrowings as of March 31, 2014 and December 31, 2013 (dollar amounts in thousands): | ||||||||||||||||
Weighted Average Stated Interest Rate as of | Outstanding Balance as of (1) | Gross Investment Amount Securing Borrowings as of (2) | ||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||
Fixed-rate mortgages | 5.80% | 5.80% | $ | 872,354 | $ | 969,622 | $ | 1,709,338 | $ | 1,898,946 | ||||||
Floating-rate mortgages (3) | 3.90% | 3.90% | 8,520 | 8,580 | 15,673 | 15,571 | ||||||||||
Total mortgage notes | 5.70% | 5.80% | 880,874 | 978,202 | 1,725,011 | 1,914,517 | ||||||||||
Repurchase facilities (4) | 2.80% | 2.80% | 37,842 | 45,270 | 52,454 | 65,726 | ||||||||||
Total other secured borrowings | 2.80% | 2.80% | 37,842 | 45,270 | 52,454 | 65,726 | ||||||||||
Total secured borrowings | 5.60% | 5.60% | 918,716 | 1,023,472 | 1,777,465 | 1,980,243 | ||||||||||
Line of credit | N/A | 1.90% | - | 30,000 | N/A | N/A | ||||||||||
Term loan (5) | 2.20% | 2.20% | 270,000 | 270,000 | N/A | N/A | ||||||||||
Total unsecured borrowings | 2.20% | 2.20% | 270,000 | 300,000 | N/A | N/A | ||||||||||
Total borrowings | 4.80% | 4.90% | $ | 1,188,716 | $ | 1,323,472 | $ | 1,777,465 | $ | 1,980,243 | ||||||
(1)Amounts presented are net of (i) unamortized discounts to the face value of our outstanding fixed-rate mortgages of $2.8 million and $2.7 million as of March 31, 2014 and December 31, 2013, respectively, and (ii) GAAP principal amortization related to troubled debt restructurings of $1.7 million and $1.5 million as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||
(2)“Gross Investment Amount” as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i) includes the effect of intangible lease liabilities, (ii) excludes accumulated depreciation and amortization, and (iii) includes the impact of impairments. Amounts reported for debt related investments represent our net accounting basis of the debt investments, which includes (i) unpaid principal balances, (ii) unamortized discounts, premiums, and deferred charges, and (iii) allowances for loan loss. | ||||||||||||||||
(3)As of March 31, 2014 and December 31, 2013, our floating-rate mortgage note was subject to an interest rate spread of 3.75% over one-month LIBOR. | ||||||||||||||||
(4)As of March 31, 2014 and December 31, 2013, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings. | ||||||||||||||||
(5)As of March 31, 2014 and December 31, 2013, borrowings under our term loan were subject to interest at a floating rate of 1.70% over one-month LIBOR. However, we had effectively fixed the interest rate for $200.0 million of the total of $270.0 million in borrowings using interest rate swaps at 2.34%, resulting in a weighted average interest rate on the total term loan of 2.21%. | ||||||||||||||||
As of March 31, 2014, 10 mortgage notes were interest-only and 18 mortgage notes were fully amortizing with outstanding principal balances of approximately $288.1 million and $591.7 million, respectively. None of our mortgage notes are recourse to us. | ||||||||||||||||
As of March 31, 2014, we had outstanding borrowings of $270.0 million under the term loan component and $0 under the revolving credit facility component of our senior unsecured term loan and revolving line of credit (collectively, the “Facility”). As of March 31, 2014, the unused portion of the revolving credit facility component of the Facility was approximately $350.0 million, of which approximately $169.6 million was available. As of December 31, 2013, we had outstanding borrowings of $270.0 million and $30.0 million under the term loan and revolving credit facility components of the Facility, respectively, and $86.1 million was available for us to borrow under the revolving credit facility component of the Facility. | ||||||||||||||||
As of March 31, 2014, we had defaulted on a mortgage note with an outstanding principal balance of $14.3 million collateralized by an industrial property with a gross investment amount of $19.0 million, after impairment charges. Our default resulted from us not making monthly debt service payments as required by the loan agreement. We have requested that the lender restructure the loan terms; however, there are no assurances that we will be successful in our negotiation with the lender. We also have discussed with the lender placing the property in receivership pending resolution of the restructure negotiation. Pursuant to the terms of the loan agreement, should the lender enforce its rights, we may be subject to interest rates increasing to a higher default rate and/or the lender foreclosing on the underlying real property collateral. With the exception of customary “carve-outs” (none of which we believe currently apply to this loan), this loan is not recourse to us; therefore, our equity investment in this property is at risk of loss. This default does not impact our remaining debt covenants. | ||||||||||||||||
The following table reflects our contractual debt maturities as of March 31, 2014, specifically our obligations under secured borrowings and unsecured borrowings (dollar amounts in thousands): | ||||||||||||||||
As of March 31, 2014 | ||||||||||||||||
Mortgage Notes and Other Secured Borrowings | Unsecured Borrowings | Total | ||||||||||||||
Year Ending December 31, | Number of Borrowings Maturing | Outstanding Balance (1) | Number of Borrowings Maturing | Outstanding Balance (2) | Outstanding Balance (3)(4) | |||||||||||
2014 | 3 | $ | 95,049 | 0 | $ | - | $ | 95,049 | ||||||||
2015 | 4 | 97,742 | 0 | - | 97,742 | |||||||||||
2016 | 12 | 336,088 | 0 | - | 336,088 | |||||||||||
2017 | 6 | 209,721 | 0 | - | 209,721 | |||||||||||
2018 | 0 | 4,999 | 1 | 270,000 | 274,999 | |||||||||||
2019 | 0 | 5,292 | 0 | - | 5,292 | |||||||||||
2020 | 1 | 157,944 | 0 | - | 157,944 | |||||||||||
2021 | 0 | 1,707 | 0 | - | 1,707 | |||||||||||
2022 | 1 | 1,663 | 0 | - | 1,663 | |||||||||||
2023 | 0 | 978 | 0 | - | 978 | |||||||||||
Thereafter | 2 | 6,431 | 0 | - | 6,431 | |||||||||||
Total | 29 | $ | 917,614 | 1 | $ | 270,000 | $ | 1,187,614 | ||||||||
(1)Secured borrowings presented include (i) mortgage note borrowings of approximately $879.8 million with maturities ranging from 2014 to 2029, and (ii) borrowings under our repurchase facility of approximately $37.8 million, which matures in 2014 and is subject to three one-year extension options. | ||||||||||||||||
(2)Unsecured borrowings presented include term loan borrowings of $270.0 million which mature in 2018. Our revolving credit facility, under which we had no borrowings as of March 31, 2014, matures in 2016, and is subject to two one-year extension options. | ||||||||||||||||
(3)Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include (i) the mark-to-market adjustment on assumed debt of $2.8 million as of March 31, 2014, and (ii) the GAAP principal amortization of our restructured mortgage note of approximately $1.7 million that does not reduce the contractual amount due of the related mortgage note as of March 31, 2014. | ||||||||||||||||
(4)As of March 31, 2014, our mortgage notes and secured borrowings are secured by interests in real properties and debt investments totaling approximately $1.8 billion. | ||||||||||||||||
Hedging_Activities
Hedging Activities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Hedging Activities [Abstract] | ' | ||||||||||||||||
Hedging Activities | ' | ||||||||||||||||
6. HEDGING ACTIVITIES | |||||||||||||||||
Risk Management Objective of Using Derivatives | |||||||||||||||||
We maintain risk management control systems to monitor interest rate risk attributable to both our outstanding and forecasted debt obligations. We generally seek to limit the impact of interest rate changes on earnings and cash flows by selectively utilizing derivative instruments to hedge exposures to changes in interest rates on loans secured by our assets. While this hedging strategy is designed to minimize the impact on our net income (loss) and cash provided by operating activities from changes in interest rates, the overall returns on our investments may be reduced. Our board of directors has established policies and procedures regarding our use of derivative instruments for hedging or other purposes to achieve these risk management objectives. | |||||||||||||||||
Cash Flow Hedges of Interest Rate Risk | |||||||||||||||||
Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps and caps as part of our 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 us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium payment. Additionally, we have entered into and plan to enter into certain interest rate derivatives with the goal of mitigating our exposure to adverse fluctuations in the interest payments on our one-month LIBOR-indexed debt. Certain of our floating rate borrowings are not hedged and therefore, to an extent, we have ongoing exposure to interest rate movements. | |||||||||||||||||
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges under ASC Topic 815, Derivatives and Hedging (“ASC Topic 815”) is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the next 12 months, we estimate that approximately $1.8 million will be reclassified as an increase to interest expense related to effective forward started interest rate swaps where the hedging instrument has been terminated, and we estimate that approximately $1.1 million will be reclassified as an increase to interest expense related to active effective hedges of floating-rate debt issuances. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The table below presents a reconciliation of the beginning and ending balances, between December 31, 2013 and March 31, 2014, of our accumulated other comprehensive loss (“OCI”), net of amounts attributable to noncontrolling interests related to the effective portion of our cash flow hedges as presented on our financial statements, as well as amounts related to our available-for-sale securities (amounts in thousands): | |||||||||||||||||
Gains and Losses on Cash Flow Hedges | Unrealized Gains and Losses on Available-For-Sale Securities | Accumulated Other Comprehensive Loss | |||||||||||||||
Beginning balance as of December 31, 2013: | $ | -9,876 | $ | -918 | $ | -10,794 | |||||||||||
Other comprehensive income: | |||||||||||||||||
Amortization of OCI into interest expense (net of tax benefit of $0) | 749 | - | 749 | ||||||||||||||
Change in fair value recognized in OCI (net of tax benefit of $0) | -428 | -211 | -639 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||||
Losses reclassified into loss on extinguishment of debt and financing commitments upon discontinuance of cash flow hedges (net of tax benefit of $0) | - | - | - | ||||||||||||||
Net current-period other comprehensive income | 321 | -211 | 110 | ||||||||||||||
Attribution of and other adjustments to OCI attributable to noncontrolling interests | 31 | 67 | 98 | ||||||||||||||
Ending balance as of March 31, 2014 | $ | -9,524 | $ | -1,062 | $ | -10,586 | |||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||
The table below presents the gross fair value of our derivative financial instruments as well as their classification on our accompanying balance sheet as of March 31, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||||
Fair Value of Asset Derivatives as of | Fair Value of Liability Derivatives as of | ||||||||||||||||
Balance Sheet | March 31, | December 31, | Balance Sheet | March 31, | December 31, | ||||||||||||
Location | 2014 | 2013 | Location | 2014 | 2013 | ||||||||||||
Derivatives designated as hedging instruments under ASC Topic 815 | |||||||||||||||||
Interest rate contracts | Other assets, net (1) | $ | 651 | $ | 748 | Other liabilities (1) | $ | -74 | $ | -43 | |||||||
Total derivatives designated as hedging instruments under ASC Topic 815 | 651 | 748 | -74 | -43 | |||||||||||||
Derivatives not designated as hedging instruments under ASC Topic 815 | |||||||||||||||||
Interest rate contracts | Other assets, net (1) | - | - | Other liabilities (1) | - | - | |||||||||||
Total derivatives not designated as hedging instruments under ASC Topic 815 | - | - | - | - | |||||||||||||
Total derivatives | $ | 651 | $ | 748 | $ | -74 | $ | -43 | |||||||||
(1)Although our derivative contracts are subject to master netting arrangements which serve as credit mitigants to both us and our counterparties under certain situations, we do not net our derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet. | |||||||||||||||||
The majority of the inputs used to value our derivative instruments fall within Level 2 of the fair value hierarchy. However, the credit valuation adjustments associated with our derivative instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of potential default by us and our counterparties. As of March 31, 2014, we had assessed the significance of the impact of the credit valuation adjustments and had determined that it was not significant to the overall valuation of our derivative instruments. As a result, we have determined that the significant inputs for all of our derivative valuations are classified in Level 2 of the fair value hierarchy. | |||||||||||||||||
Designated Hedges | |||||||||||||||||
As of March 31, 2014, we had seven outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk, with a total notional amount of $255.1 million. As of December 31, 2013, we had seven outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk, with a total notional amount of $255.4 million. | |||||||||||||||||
Undesignated Hedges | |||||||||||||||||
Derivatives not designated as hedges are not speculative and are used to hedge our exposure to interest rate movements and other identified risks but do not meet hedge accounting requirements. As of both March 31, 2014 and December 31, 2013, we did not have any outstanding derivatives that were not designated as hedges. Changes in the fair value of derivatives not designated in hedging relationships did not result in any gain or loss during the three months ended March 31, 2014 and 2013. | |||||||||||||||||
Effect of Derivative Instruments on the Statements of Comprehensive Income and Loss | |||||||||||||||||
The table below presents the effect of our derivative financial instruments on our accompanying financial statements for the three months ended March 31, 2014 and 2013 (amounts in thousands): | |||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||
Derivative type | Interest rate contracts | Interest rate contracts | |||||||||||||||
Amount of gain or (loss) recognized in OCI (effective portion) | $ | -428 | $ | -28 | |||||||||||||
Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) | Interest expense | Interest expense | |||||||||||||||
Amount of loss reclassified from accumulated OCI into income (effective portion) | $ | -749 | $ | -645 | |||||||||||||
Location of gain or (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | N/A | Loss on extinguishment of debt and financing commitments | |||||||||||||||
Amount of loss recognized in income due to missed forecast (ineffective portion and amount excluded from effectiveness testing) | $ | - | $ | -27 | |||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||
Derivative type | Interest rate contracts | Interest rate contracts | |||||||||||||||
Location of loss recognized in income | N/A | N/A | |||||||||||||||
Amount of loss recognized in income | $ | - | $ | - | |||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
7. FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||
We are required to disclose the fair value of our financial instruments for which it is practicable to estimate the value. The fair value of a financial instrument is the amount at which such financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. For certain of our financial instruments, fair values are not readily available since there are no active trading markets as characterized by current exchanges between willing parties. Accordingly, we derive our estimated fair value using various valuation techniques, such as computing the present value of estimated future cash flows using discount rates commensurate with the risks involved. However, the determination of estimated cash flows may be subjective and imprecise and changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In that regard, the fair value estimates may not be substantiated by comparison to independent markets, and in many cases, may not be realized in immediate settlement of the instrument. | |||||||||||||
ASC Topic 820, Fair Value Measurement and Disclosures (“ASC Topic 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC Topic 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. | |||||||||||||
ASC Topic 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | |||||||||||||
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that | |||||||||||||
are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liabilities, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||
The fair values estimated below are indicative of certain interest rate and other assumptions as of March 31, 2014 and December 31, 2013, and may not take into consideration the effects of subsequent interest rate or other assumption fluctuations, or changes in the values of underlying collateral. The fair values of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses approximate their carrying values because of the short-term nature of these instruments. | |||||||||||||
The carrying amounts and estimated fair values of our other financial instruments as of March 31, 2014 and December 31, 2013 were as follows (amounts in thousands): | |||||||||||||
As of March 31, 2014 | As of December 31, 2013 | ||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||
Assets: | |||||||||||||
Investments in real estate securities | $ | 200 | $ | 200 | $ | 461 | $ | 461 | |||||
Fixed-rate debt related investments, net | 69,006 | 71,639 | 98,724 | 101,012 | |||||||||
Floating-rate debt related investments, net | 25,174 | 25,356 | 25,211 | 24,504 | |||||||||
Derivative instruments | 651 | 651 | 748 | 748 | |||||||||
Liabilities: | |||||||||||||
Fixed-rate mortgage notes | $ | 872,354 | $ | 915,607 | $ | 969,622 | $ | 1,010,085 | |||||
Floating-rate mortgage notes | 8,520 | 8,524 | 8,580 | 8,582 | |||||||||
Floating-rate other secured borrowings | 37,842 | 37,842 | 45,270 | 45,270 | |||||||||
Floating-rate unsecured borrowings | 270,000 | 271,003 | 300,000 | 301,690 | |||||||||
Derivative liabilities | 74 | 74 | 43 | 43 | |||||||||
The methodologies used and key assumptions made to estimate fair values of the other financial instruments described in the above table are as follows: | |||||||||||||
Debt Related Investments—The fair value of our performing debt investments are estimated using a discounted cash flow methodology. This method discounts estimated future cash flows using rates management determines best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Credit spreads and market interest rates used to determine the fair value of these instruments are based on unobservable Level 3 inputs which management has determined to be its best estimate of current market values. | |||||||||||||
Mortgage Notes and Other Secured Borrowings Carried at Amortized Cost—The fair value of our mortgage notes and other secured borrowings are estimated using a discounted cash flow analysis, based on our estimate of market interest rates. Credit spreads relating to the underlying instruments are based on unobservable Level 3 inputs, which we have determined to be our best estimate of current market spreads of similar instruments. | |||||||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Related Party Transactions [Abstract] | ' | ||||||
Related Party Transactions | ' | ||||||
8. RELATED PARTY TRANSACTIONS | |||||||
Our day-to-day activities are managed by our Advisor, a related party, under the terms and conditions of the Advisory Agreement. Our Advisor is considered to be a related party as certain indirect owners and employees of our Advisor serve as two of our directors and all of our executive officers. The responsibilities of our Advisor cover all facets of our business, and include the selection and underwriting of our real property and debt related investments, the negotiations for these investments, the asset management and financing of these investments and the oversight of real property dispositions. | |||||||
Dividend Capital Securities LLC, which we refer to as the “Dealer Manager,” is distributing the shares of our common stock in the Offering on a “best efforts” basis. The Dealer Manager is an entity related to the Advisor and is a member of the Financial Industry Regulatory Authority, Inc., or FINRA. The Dealer Manager coordinates our distribution effort and manages our relationships with participating broker-dealers and financial advisors and provides assistance in connection with compliance matters relating to marketing the Offering. | |||||||
As of March 31, 2014 and December 31, 2013, we owed approximately $1.4 million and $1.6 million, respectively, to our Advisor and affiliates of our Advisor for such services and reimbursement of certain expenses. Pursuant to the Advisory Agreement, we accrue the advisory fee on a daily basis and pay our Advisor amounts due subsequent to each month-end. | |||||||
The following table summarizes fees and other amounts earned by our Advisor and its related parties in connection with services performed for us during the three months ended March 31, 2014 and 2013 (amounts in thousands): | |||||||
For the Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Advisory fees | $ | 3,743 | $ | 3,684 | |||
Development management fee | 83 | 55 | |||||
Other reimbursements | 2,038 | 1,340 | |||||
Advisory fees related to the disposition of real properties | 1,908 | 85 | |||||
Dealer manager and distribution fees | 77 | - | |||||
Total | $ | 7,849 | $ | 5,164 | |||
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Net Income (Loss) Per Common Share [Abstract] | ' | |||||
Net Income (Loss) Per Common Share | ' | |||||
9. NET INCOME (LOSS) PER COMMON SHARE | ||||||
Reconciliations of the numerator and denominator used to calculate basic net loss per common share to the numerator and denominator used to calculate diluted net loss per common share for the three months ended March 31, 2014 and 2013 are described in the following table (amounts in thousands, except per share information): | ||||||
For the Three Months Ended March 31, | ||||||
Numerator | 2014 | 2013 | ||||
Income (loss) from continuing operations | $ | 2,131 | $ | -1,753 | ||
(Income) loss from continuing operations attributable to noncontrolling interests | -117 | 144 | ||||
Income (loss) from continuing operations attributable to common stockholders | 2,014 | -1,609 | ||||
Dilutive noncontrolling interests share of (income) loss from continuing operations | 149 | -127 | ||||
Numerator for diluted earnings per share – adjusted income (loss) from continuing operations | 2,163 | -1,736 | ||||
Income (loss) from discontinued operations | 29,857 | -4,113 | ||||
(Income) loss from discontinued operations attributable to noncontrolling interests | -4,433 | 355 | ||||
Income (loss) from discontinued operations attributable to common stockholders | 25,424 | -3,758 | ||||
Dilutive noncontrolling interests share of discontinued operations | 1,886 | -297 | ||||
Numerator for diluted earnings per share – adjusted income (loss) from discontinued operations | $ | 27,310 | $ | -4,055 | ||
Denominator | ||||||
Weighted average shares outstanding-basic | 176,873 | 178,792 | ||||
Incremental weighted average shares effect of conversion of OP units | 13,120 | 14,135 | ||||
Weighted average shares outstanding-diluted | 189,993 | 192,927 | ||||
INCOME (LOSS) PER COMMON SHARE-BASIC AND DILUTED | ||||||
Net income (loss) from continuing operations | $ | 0.01 | $ | -0.01 | ||
Net income (loss) from discontinued operations | 0.14 | -0.02 | ||||
Net income (loss) | $ | 0.15 | $ | -0.03 | ||
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
10. SEGMENT INFORMATION | |||||||||||||
We have four reportable operating segments, which include our three real property operating sectors (office, industrial, and retail) and debt related investments. We organize and analyze the operations and results of each of these segments independently, due to inherently different considerations for each segment. Such considerations include, but are not limited to, the nature and characteristics of the investment, and investment strategies and objectives. For example, the physical characteristics of our buildings, the related operating characteristics, the geographic markets, and the type of tenants are inherently different for each of our segments. The following table sets forth revenue and the components of net operating income (“NOI”) of our segments for the three months ended March 31, 2014 and 2013 (amounts in thousands): | |||||||||||||
For the Three Months Ended March 31, | |||||||||||||
Revenues | NOI | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Real property (1) | |||||||||||||
Office | $ | 34,202 | $ | 29,950 | $ | 25,323 | $ | 23,126 | |||||
Industrial | 5,814 | 6,619 | 4,986 | 6,131 | |||||||||
Retail | 15,044 | 14,067 | 11,404 | 10,483 | |||||||||
Debt related investments | 2,013 | 2,735 | 2,013 | 2,735 | |||||||||
Total | $ | 57,073 | $ | 53,371 | $ | 43,726 | $ | 42,475 | |||||
(1)Excludes results of operations of real properties categorized as discontinued operations. | |||||||||||||
We consider NOI to be an appropriate supplemental financial performance measure because NOI reflects the specific operating performance of our real properties and debt related investments, and excludes certain items that are not considered to be controllable in connection with the management of each property, such as depreciation and amortization, general and administrative expenses, asset management fees, interest expense and noncontrolling interests. However, NOI should not be viewed as an alternative measure of our financial performance as a whole, since it excludes such items that could materially impact our results of operations. Further, our NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating NOI. Therefore, we believe net income, as defined by GAAP, to be the most appropriate measure to evaluate our overall financial performance. | |||||||||||||
The following table is a reconciliation of our NOI to our reported net income (loss) attributable to common stockholders for the three months ended March 31, 2014 and 2013 (amounts in thousands): | |||||||||||||
For the Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Net operating income | $ | 43,726 | $ | 42,475 | |||||||||
Real estate depreciation and amortization expense | -22,350 | -21,259 | |||||||||||
General and administrative expenses | -2,819 | -2,361 | |||||||||||
Advisory fees, related party | -3,743 | -3,684 | |||||||||||
Interest and other income | -78 | -104 | |||||||||||
Interest expense | -16,168 | -16,550 | |||||||||||
Loss on extinguishment of debt and financing commitments | -63 | -270 | |||||||||||
Gain on sale of real property | 3,626 | - | |||||||||||
Discontinued operations, net of taxes | 29,857 | -4,113 | |||||||||||
Net income attributable to noncontrolling interests | -4,550 | 499 | |||||||||||
Net income (loss) attributable to common stockholders | $ | 27,438 | $ | -5,367 | |||||||||
The following table reflects our total assets by business segment as of March 31, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||
As of | |||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
Segment assets: | |||||||||||||
Net investments in real property | |||||||||||||
Office | $ | 1,057,115 | $ | 1,092,350 | |||||||||
Industrial | 227,221 | 229,787 | |||||||||||
Retail | 595,298 | 602,505 | |||||||||||
Debt related investments, net | 94,180 | 123,935 | |||||||||||
Total segment assets, net | 1,973,814 | 2,048,577 | |||||||||||
Non-segment assets: | |||||||||||||
Cash and cash equivalents | 81,292 | 24,778 | |||||||||||
Other non-segment assets (1) | 103,065 | 85,878 | |||||||||||
Assets held for sale | 3,301 | 146,176 | |||||||||||
Total assets | $ | 2,161,472 | $ | 2,305,409 | |||||||||
(1)Other non-segment assets primarily consist of corporate assets including restricted cash and receivables, including straight-line rent receivable. | |||||||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
11. SUBSEQUENT EVENTS | |
We have evaluated subsequent events for the period from March 31, 2014, the date of these financial statements, through the date these financial statements are issued. | |
Advisor RSU agreement | |
On April 7, 2014 (the “Effective Date”), we entered into a Restricted Stock Unit Agreement (the “Agreement”) with our Advisor. Pursuant to the terms of the Agreement, we have granted our Advisor 493,575 restricted stock units (“RSUs”), in return for offsets of future advisory fees and expenses. Each RSU will, upon vesting, entitle the Advisor to one Class I share of our common stock. The Advisor is expected to redistribute a significant portion of the RSUs and/or shares to senior level employees of the Advisor and its affiliates that provide services to us, although the terms of such redistributions (including the timing, amount and recipients) remain solely in the discretion of the Advisor. The purpose of the Agreement is intended to further promote an alignment of interests among our stockholders, the Advisor and the personnel of our Advisor and its affiliates, and is intended to promote retention of the personnel of our Advisor and its affiliates. | |
Departure of executive officer | |
Austin W. Lehr, who served as our Chief Operating Officer since 2010, resigned to pursue other opportunities effective April 30, 2014. Mr. Lehr’s primary duties will be assumed by the Company’s President, J. Michael Lynch. | |
Recovered_Sheet1
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ' |
Interim Financial Statements | ' |
Interim Financial Statements | |
The accompanying interim condensed consolidated financial statements (herein referred to as “financial statements,” “balance sheets,” “statements of operations,” “statement of equity,” or “statements of comprehensive income and loss”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the Commission instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, these statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments and eliminations, consisting only of normal recurring items necessary for their fair presentation in conformity with GAAP. Interim results are not necessarily indicative of operating results for a full year. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with our audited financial statements and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Commission on March 10, 2014. There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2014 other than the updates described below. | |
Reclassifications | ' |
Reclassifications | |
Certain amounts included in the accompanying financial statements for 2013 have been reclassified to conform to the 2014 financial statements presentation. Statement of operations amounts for properties disposed of or classified as held for sale as of December 31, 2013, have been reclassified to discontinued operations for all periods presented. Amounts in our segment disclosures in Note 10 reflect the reclassification of amounts related to properties that have been disposed of or classified as held for sale as of December 31, 2013. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2014-08 (“ASU 2014-08”), which provides a revised definition of a discontinued operation. ASU 2014-08 requires additional disclosures for a discontinued operation and the disposal of an asset and component of the entity that is not a discontinued operation. Under ASU 2014-08, a discontinued operation is a component (or group of components) of the entity, the disposal of which would represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results, when such component (or group of components) have been disposed of or classified as held for sale. The amendments in the ASU should be applied prospectively and are effective for us beginning January 1, 2015, with early adoption permitted. We adopted this standard effective January 1, 2014. During the three months ended March 31, 2014, we disposed of or classified as held for sale three operating properties that we determined did not meet the definition of discontinued operations under the revised standard. As a result of our adoption of this ASU, we anticipate that fewer of our property dispositions made in the normal course of business will qualify for discontinued operations reporting. See Note 3 for additional information. | |
Investments_in_Real_Property_T
Investments in Real Property (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Investments in Real Property [Abstract] | ' | |||||||||||||||||
Schedule of Consolidated Investments In Real Property | ' | |||||||||||||||||
Real Property | Land | Building and Improvements | Intangible Lease Assets | Total Investment Amount | Intangible Lease Liabilities | Net Investment Amount | ||||||||||||
As of March 31, 2014: | ||||||||||||||||||
Office (1) | $ | 229,216 | $ | 757,463 | $ | 360,924 | $ | 1,347,603 | $ | -15,861 | $ | 1,331,742 | ||||||
Industrial | 30,619 | 202,528 | 51,999 | 285,146 | -41,011 | 244,135 | ||||||||||||
Retail | 225,408 | 417,957 | 76,287 | 719,652 | -48,966 | 670,686 | ||||||||||||
Total gross book value | 485,243 | 1,377,948 | 489,210 | 2,352,401 | -105,838 | 2,246,563 | ||||||||||||
Accumulated depreciation/amortization | - | -171,300 | -298,166 | -469,466 | 33,449 | -436,017 | ||||||||||||
Total net book value | $ | 485,243 | $ | 1,206,648 | $ | 191,044 | $ | 1,882,935 | $ | -72,389 | $ | 1,810,546 | ||||||
As of December 31, 2013: | ||||||||||||||||||
Office | $ | 232,117 | $ | 769,654 | $ | 365,314 | $ | 1,367,085 | $ | -15,861 | $ | 1,351,224 | ||||||
Industrial (2) | 51,678 | 359,800 | 66,877 | 478,355 | -46,626 | 431,729 | ||||||||||||
Retail | 227,218 | 420,070 | 77,752 | 725,040 | -51,059 | 673,981 | ||||||||||||
Total gross book value | 511,013 | 1,549,524 | 509,943 | 2,570,480 | -113,546 | 2,456,934 | ||||||||||||
Accumulated depreciation/amortization | - | -207,966 | -294,881 | -502,847 | 35,997 | -466,850 | ||||||||||||
Total net book value | $ | 511,013 | $ | 1,341,558 | $ | 215,062 | $ | 2,067,633 | $ | -77,549 | $ | 1,990,084 | ||||||
-1 | Includes $3.1 million in land, $195,000 in building and improvements, $3.4 million in intangible lease assets, and $62,000 in intangible lease liabilities, before accumulated depreciation on assets of $3.4 million and accumulated amortization of intangible lease liabilities of $62,000, related to an office property and a land parcel classified as held for sale in the accompanying balance sheet as of March 31, 2014. | |||||||||||||||||
-2 | Includes $21.1 million in land, $157.7 million in building and improvements, $14.9 million in intangible lease assets, and $5.6 million in intangible lease liabilities, before accumulated depreciation on assets of $50.6 million and accumulated amortization of intangible lease liabilities of $2.5 million, related to 12 industrial properties classified as held for sale in the accompanying balance sheet as of December 31, 2013. | |||||||||||||||||
Schedule of Disposed Properties | ' | |||||||||||||||||
Type of Property | Market | DPF Ownership | Building Square Feet | Disposition Date | Gain (Loss) | |||||||||||||
2014 Dispositions | ||||||||||||||||||
Industrial Portfolio | Various(1) | 92.50% | 3,387 | 22-Jan-14 | $ | 29,545 | ||||||||||||
Retail | Boston, MA | 100.00% | 110 | 18-Feb-14 | 2,276 | |||||||||||||
Office | Little Rock, AR | 100.00% | 102 | 25-Feb-14 | 1,350 | |||||||||||||
3,599 | $ | 33,171 | ||||||||||||||||
Assets held for sale | ||||||||||||||||||
Office | East Bay, CA | 100.00% | 60 | |||||||||||||||
Land Parcel | Denver, CO | 100.00% | - | |||||||||||||||
Total | 60 | |||||||||||||||||
(1)Industrial portfolio included twelve properties located in the following markets: Atlanta, GA, Central Pennsylvania, Cincinnati, OH, Columbus, OH, Dallas, TX, Indianapolis, IN, and Minneapolis/St. Paul, MN. | ||||||||||||||||||
Schedule of Amounts Recorded as Discontinued Operations | ' | |||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Revenues | $ | 995 | $ | 16,038 | ||||||||||||||
Rental expense | -367 | -6,431 | ||||||||||||||||
Real estate depreciation and amortization expense | - | -9,264 | ||||||||||||||||
Interest expense | -296 | -5,601 | ||||||||||||||||
Other expenses | -20 | -68 | ||||||||||||||||
Income (loss) from discontinued operations | 312 | -5,326 | ||||||||||||||||
Gain on disposition, net of taxes | 29,545 | 1,213 | ||||||||||||||||
Discontinued operations, net of taxes | 29,857 | -4,113 | ||||||||||||||||
Discontinued operations attributable to noncontrolling interests | -4,433 | 355 | ||||||||||||||||
Discontinued operations attributable to common stockholders | $ | 25,424 | $ | -3,758 | ||||||||||||||
Capital Expenditures and Signficant Operating and Investing Noncash Items Related to Discontinued Operations | ' | |||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Capital expenditures | $ | - | $ | 2,798 | ||||||||||||||
Noncash items: | ||||||||||||||||||
Straight-line rent adjustments | -41 | 1,283 | ||||||||||||||||
Amortization of above-market lease assets | - | -200 | ||||||||||||||||
Amortization of below-market lease liabilities | - | 482 | ||||||||||||||||
Non-cash disposition of real property | 80,361 | - | ||||||||||||||||
Carrying Amounts of Major Classes of Assets and Liabilities Included in Discontinued Operations and Classified as Held For Sale | ' | |||||||||||||||||
As of | ||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||
Land | $ | 3,125 | $ | 21,060 | ||||||||||||||
Building and improvements | 195 | 157,679 | ||||||||||||||||
Intangible lease assets | 3,400 | 14,877 | ||||||||||||||||
Accumulated depreciation | -3,419 | -50,625 | ||||||||||||||||
Other assets, net | - | 3,185 | ||||||||||||||||
Assets held for sale | $ | 3,301 | $ | 146,176 | ||||||||||||||
Mortgage notes and other secured borrowings | $ | - | $ | 80,428 | ||||||||||||||
Intangible lease liabilities, net | - | 3,136 | ||||||||||||||||
Other liabilities | 58 | 3,104 | ||||||||||||||||
Liabilities related to assets held for sale | $ | 58 | $ | 86,668 | ||||||||||||||
Schedule of Adjustments to Rental Revenue Related to Amortization of Above-Market Lease Assets, Below-Market Lease Liabilities, and for Straight-Line Rental Adjustments | ' | |||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Straight-line rent adjustments | $ | 1,305 | $ | 2,968 | ||||||||||||||
Above-market lease assets | -1,724 | -1,926 | ||||||||||||||||
Below-market lease liabilities | 1,832 | 2,102 | ||||||||||||||||
Total increase to rental revenue | $ | 1,413 | $ | 3,144 | ||||||||||||||
Tenant recovery income | $ | 8,202 | $ | 8,789 | ||||||||||||||
Debt_Related_Investments_Table
Debt Related Investments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Related Investments [Abstract] | ' | ||||||||
Details of Debt Related Income | ' | ||||||||
For the Three Months Ended March 31, | Weighted Average Yield as of | ||||||||
Investment Type | 2014 | 2013 | March 31, 2014 (1) | ||||||
Mortgage notes(2) | $ | 1,351 | $ | 2,429 | 5.40% | ||||
B-notes | - | 51 | 0.00% | ||||||
Mezzanine debt | 662 | 255 | 16.70% | ||||||
Total | $ | 2,013 | $ | 2,735 | 7.30% | ||||
(1)Weighted average yield is calculated on an unlevered basis using the amount invested, current interest rates and accretion of premiums or discounts realized upon the initial investment for each investment type as of March 31, 2014. Yields for LIBOR-based, floating-rate investments have been calculated using the one-month LIBOR rate as of March 31, 2014 for purposes of this table. As of March 31, 2014, we had one debt related investment with a net investment amount of $25.0 million that bears interest at a floating rate indexed to LIBOR. All of our remaining debt related investments bear interest at fixed rates. We have assumed a yield of zero on the one debt related investment for which we have recognized a full allowance for loss as of March 31, 2014. | |||||||||
(2)We had three and two debt related investments repaid in full during the three months ended March 31, 2014 and 2013, respectively. During the three months ended March 31, 2014 and 2013, amounts recorded include early repayment fees received and accelerated amortization of origination fees offset by accelerated amortization of deferred due diligence costs related to certain of these repayments. | |||||||||
Repayments | |||||||||
During the three months ended March 31, 2014, we received full repayment of three debt related investments, all of which were structured as mortgage notes. We received cash proceeds from the repayments of approximately $22.6 million, which comprised principal repayment of $29.7 million (approximately $4.6 million of which was received subsequent to March 31, 2014), partially offset by the repayment of borrowings secured by the debt related investments of approximately $7.1 million. | |||||||||
Recorded Investment in Debt Related Investments before Allowance for Loan Loss, and Related Allowance for Loan Loss | ' | ||||||||
Debt Investments Individually Evaluated for Impairment as of | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Debt investments | $ | 97,180 | $ | 126,935 | |||||
Less: Allowance for loan losses | -3,000 | -3,000 | |||||||
Total | $ | 94,180 | $ | 123,935 | |||||
Average Recorded Net Investment in Impaired Debt Related Investments and Related Interest Income Recorded | ' | ||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Average Recorded Investment | $ | - | $ | 6,067 | |||||
Interest Income Recognized | $ | - | $ | 51 | |||||
Debt_Obligations_Tables
Debt Obligations (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Debt Obligations [Abstract] | ' | |||||||||||||||
Schedule of Borrowings | ' | |||||||||||||||
Weighted Average Stated Interest Rate as of | Outstanding Balance as of (1) | Gross Investment Amount Securing Borrowings as of (2) | ||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | |||||||||||
Fixed-rate mortgages | 5.80% | 5.80% | $ | 872,354 | $ | 969,622 | $ | 1,709,338 | $ | 1,898,946 | ||||||
Floating-rate mortgages (3) | 3.90% | 3.90% | 8,520 | 8,580 | 15,673 | 15,571 | ||||||||||
Total mortgage notes | 5.70% | 5.80% | 880,874 | 978,202 | 1,725,011 | 1,914,517 | ||||||||||
Repurchase facilities (4) | 2.80% | 2.80% | 37,842 | 45,270 | 52,454 | 65,726 | ||||||||||
Total other secured borrowings | 2.80% | 2.80% | 37,842 | 45,270 | 52,454 | 65,726 | ||||||||||
Total secured borrowings | 5.60% | 5.60% | 918,716 | 1,023,472 | 1,777,465 | 1,980,243 | ||||||||||
Line of credit | N/A | 1.90% | - | 30,000 | N/A | N/A | ||||||||||
Term loan (5) | 2.20% | 2.20% | 270,000 | 270,000 | N/A | N/A | ||||||||||
Total unsecured borrowings | 2.20% | 2.20% | 270,000 | 300,000 | N/A | N/A | ||||||||||
Total borrowings | 4.80% | 4.90% | $ | 1,188,716 | $ | 1,323,472 | $ | 1,777,465 | $ | 1,980,243 | ||||||
(1)Amounts presented are net of (i) unamortized discounts to the face value of our outstanding fixed-rate mortgages of $2.8 million and $2.7 million as of March 31, 2014 and December 31, 2013, respectively, and (ii) GAAP principal amortization related to troubled debt restructurings of $1.7 million and $1.5 million as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||
(2)“Gross Investment Amount” as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i) includes the effect of intangible lease liabilities, (ii) excludes accumulated depreciation and amortization, and (iii) includes the impact of impairments. Amounts reported for debt related investments represent our net accounting basis of the debt investments, which includes (i) unpaid principal balances, (ii) unamortized discounts, premiums, and deferred charges, and (iii) allowances for loan loss. | ||||||||||||||||
(3)As of March 31, 2014 and December 31, 2013, our floating-rate mortgage note was subject to an interest rate spread of 3.75% over one-month LIBOR. | ||||||||||||||||
(4)As of March 31, 2014 and December 31, 2013, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings. | ||||||||||||||||
(5)As of March 31, 2014 and December 31, 2013, borrowings under our term loan were subject to interest at a floating rate of 1.70% over one-month LIBOR. However, we had effectively fixed the interest rate for $200.0 million of the total of $270.0 million in borrowings using interest rate swaps at 2.34%, resulting in a weighted average interest rate on the total term loan of 2.21%. | ||||||||||||||||
Schedule of Borrowings Reflects Contractual Debt Maturities | ' | |||||||||||||||
As of March 31, 2014 | ||||||||||||||||
Mortgage Notes and Other Secured Borrowings | Unsecured Borrowings | Total | ||||||||||||||
Year Ending December 31, | Number of Borrowings Maturing | Outstanding Balance (1) | Number of Borrowings Maturing | Outstanding Balance (2) | Outstanding Balance (3)(4) | |||||||||||
2014 | 3 | $ | 95,049 | 0 | $ | - | $ | 95,049 | ||||||||
2015 | 4 | 97,742 | 0 | - | 97,742 | |||||||||||
2016 | 12 | 336,088 | 0 | - | 336,088 | |||||||||||
2017 | 6 | 209,721 | 0 | - | 209,721 | |||||||||||
2018 | 0 | 4,999 | 1 | 270,000 | 274,999 | |||||||||||
2019 | 0 | 5,292 | 0 | - | 5,292 | |||||||||||
2020 | 1 | 157,944 | 0 | - | 157,944 | |||||||||||
2021 | 0 | 1,707 | 0 | - | 1,707 | |||||||||||
2022 | 1 | 1,663 | 0 | - | 1,663 | |||||||||||
2023 | 0 | 978 | 0 | - | 978 | |||||||||||
Thereafter | 2 | 6,431 | 0 | - | 6,431 | |||||||||||
Total | 29 | $ | 917,614 | 1 | $ | 270,000 | $ | 1,187,614 | ||||||||
(1)Secured borrowings presented include (i) mortgage note borrowings of approximately $879.8 million with maturities ranging from 2014 to 2029, and (ii) borrowings under our repurchase facility of approximately $37.8 million, which matures in 2014 and is subject to three one-year extension options. | ||||||||||||||||
(2)Unsecured borrowings presented include term loan borrowings of $270.0 million which mature in 2018. Our revolving credit facility, under which we had no borrowings as of March 31, 2014, matures in 2016, and is subject to two one-year extension options. | ||||||||||||||||
(3)Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include (i) the mark-to-market adjustment on assumed debt of $2.8 million as of March 31, 2014, and (ii) the GAAP principal amortization of our restructured mortgage note of approximately $1.7 million that does not reduce the contractual amount due of the related mortgage note as of March 31, 2014. | ||||||||||||||||
(4)As of March 31, 2014, our mortgage notes and secured borrowings are secured by interests in real properties and debt investments totaling approximately $1.8 billion. | ||||||||||||||||
Hedging_Activities_Tables
Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Hedging Activities [Abstract] | ' | ||||||||||||||||
Reconciliation of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Gains and Losses on Cash Flow Hedges | Unrealized Gains and Losses on Available-For-Sale Securities | Accumulated Other Comprehensive Loss | |||||||||||||||
Beginning balance as of December 31, 2013: | $ | -9,876 | $ | -918 | $ | -10,794 | |||||||||||
Other comprehensive income: | |||||||||||||||||
Amortization of OCI into interest expense (net of tax benefit of $0) | 749 | - | 749 | ||||||||||||||
Change in fair value recognized in OCI (net of tax benefit of $0) | -428 | -211 | -639 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||||
Losses reclassified into loss on extinguishment of debt and financing commitments upon discontinuance of cash flow hedges (net of tax benefit of $0) | - | - | - | ||||||||||||||
Net current-period other comprehensive income | 321 | -211 | 110 | ||||||||||||||
Attribution of and other adjustments to OCI attributable to noncontrolling interests | 31 | 67 | 98 | ||||||||||||||
Ending balance as of March 31, 2014 | $ | -9,524 | $ | -1,062 | $ | -10,586 | |||||||||||
Gross Fair Value of Derivative Financial Instruments as Well as Their Classification | ' | ||||||||||||||||
Fair Value of Asset Derivatives as of | Fair Value of Liability Derivatives as of | ||||||||||||||||
Balance Sheet | March 31, | December 31, | Balance Sheet | March 31, | December 31, | ||||||||||||
Location | 2014 | 2013 | Location | 2014 | 2013 | ||||||||||||
Derivatives designated as hedging instruments under ASC Topic 815 | |||||||||||||||||
Interest rate contracts | Other assets, net (1) | $ | 651 | $ | 748 | Other liabilities (1) | $ | -74 | $ | -43 | |||||||
Total derivatives designated as hedging instruments under ASC Topic 815 | 651 | 748 | -74 | -43 | |||||||||||||
Derivatives not designated as hedging instruments under ASC Topic 815 | |||||||||||||||||
Interest rate contracts | Other assets, net (1) | - | - | Other liabilities (1) | - | - | |||||||||||
Total derivatives not designated as hedging instruments under ASC Topic 815 | - | - | - | - | |||||||||||||
Total derivatives | $ | 651 | $ | 748 | $ | -74 | $ | -43 | |||||||||
(1)Although our derivative contracts are subject to master netting arrangements which serve as credit mitigants to both us and our counterparties under certain situations, we do not net our derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet. | |||||||||||||||||
Effect of Derivative Financial Instruments on Financial Statements | ' | ||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||
Derivative type | Interest rate contracts | Interest rate contracts | |||||||||||||||
Amount of gain or (loss) recognized in OCI (effective portion) | $ | -428 | $ | -28 | |||||||||||||
Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) | Interest expense | Interest expense | |||||||||||||||
Amount of loss reclassified from accumulated OCI into income (effective portion) | $ | -749 | $ | -645 | |||||||||||||
Location of gain or (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | N/A | Loss on extinguishment of debt and financing commitments | |||||||||||||||
Amount of loss recognized in income due to missed forecast (ineffective portion and amount excluded from effectiveness testing) | $ | - | $ | -27 | |||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||
Derivative type | Interest rate contracts | Interest rate contracts | |||||||||||||||
Location of loss recognized in income | N/A | N/A | |||||||||||||||
Amount of loss recognized in income | $ | - | $ | - | |||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||
Schedule of Carrying Amount and Fair Values of Other Financial Instruments | ' | ||||||||||||
As of March 31, 2014 | As of December 31, 2013 | ||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||
Assets: | |||||||||||||
Investments in real estate securities | $ | 200 | $ | 200 | $ | 461 | $ | 461 | |||||
Fixed-rate debt related investments, net | 69,006 | 71,639 | 98,724 | 101,012 | |||||||||
Floating-rate debt related investments, net | 25,174 | 25,356 | 25,211 | 24,504 | |||||||||
Derivative instruments | 651 | 651 | 748 | 748 | |||||||||
Liabilities: | |||||||||||||
Fixed-rate mortgage notes | $ | 872,354 | $ | 915,607 | $ | 969,622 | $ | 1,010,085 | |||||
Floating-rate mortgage notes | 8,520 | 8,524 | 8,580 | 8,582 | |||||||||
Floating-rate other secured borrowings | 37,842 | 37,842 | 45,270 | 45,270 | |||||||||
Floating-rate unsecured borrowings | 270,000 | 271,003 | 300,000 | 301,690 | |||||||||
Derivative liabilities | 74 | 74 | 43 | 43 | |||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Related Party Transactions [Abstract] | ' | ||||||
Schedule of Fees and Other Amounts Earned by Advisor | ' | ||||||
For the Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Advisory fees | $ | 3,743 | $ | 3,684 | |||
Development management fee | 83 | 55 | |||||
Other reimbursements | 2,038 | 1,340 | |||||
Advisory fees related to the disposition of real properties | 1,908 | 85 | |||||
Dealer manager and distribution fees | 77 | - | |||||
Total | $ | 7,849 | $ | 5,164 | |||
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Net Income (Loss) Per Common Share [Abstract] | ' | |||||
Details of Numerator and Denominator Used to Calculate Diluted Net Loss Per Common Share | ' | |||||
For the Three Months Ended March 31, | ||||||
Numerator | 2014 | 2013 | ||||
Income (loss) from continuing operations | $ | 2,131 | $ | -1,753 | ||
(Income) loss from continuing operations attributable to noncontrolling interests | -117 | 144 | ||||
Income (loss) from continuing operations attributable to common stockholders | 2,014 | -1,609 | ||||
Dilutive noncontrolling interests share of (income) loss from continuing operations | 149 | -127 | ||||
Numerator for diluted earnings per share – adjusted income (loss) from continuing operations | 2,163 | -1,736 | ||||
Income (loss) from discontinued operations | 29,857 | -4,113 | ||||
(Income) loss from discontinued operations attributable to noncontrolling interests | -4,433 | 355 | ||||
Income (loss) from discontinued operations attributable to common stockholders | 25,424 | -3,758 | ||||
Dilutive noncontrolling interests share of discontinued operations | 1,886 | -297 | ||||
Numerator for diluted earnings per share – adjusted income (loss) from discontinued operations | $ | 27,310 | $ | -4,055 | ||
Denominator | ||||||
Weighted average shares outstanding-basic | 176,873 | 178,792 | ||||
Incremental weighted average shares effect of conversion of OP units | 13,120 | 14,135 | ||||
Weighted average shares outstanding-diluted | 189,993 | 192,927 | ||||
INCOME (LOSS) PER COMMON SHARE-BASIC AND DILUTED | ||||||
Net income (loss) from continuing operations | $ | 0.01 | $ | -0.01 | ||
Net income (loss) from discontinued operations | 0.14 | -0.02 | ||||
Net income (loss) | $ | 0.15 | $ | -0.03 | ||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Revenue and Components of Net Operating Income | ' | ||||||||||||
For the Three Months Ended March 31, | |||||||||||||
Revenues | NOI | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Real property (1) | |||||||||||||
Office | $ | 34,202 | $ | 29,950 | $ | 25,323 | $ | 23,126 | |||||
Industrial | 5,814 | 6,619 | 4,986 | 6,131 | |||||||||
Retail | 15,044 | 14,067 | 11,404 | 10,483 | |||||||||
Debt related investments | 2,013 | 2,735 | 2,013 | 2,735 | |||||||||
Total | $ | 57,073 | $ | 53,371 | $ | 43,726 | $ | 42,475 | |||||
(1)Excludes results of operations of real properties categorized as discontinued operations. | |||||||||||||
Reconciliation of Net Operating Income to Reported Net Income (Loss) | ' | ||||||||||||
For the Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Net operating income | $ | 43,726 | $ | 42,475 | |||||||||
Real estate depreciation and amortization expense | -22,350 | -21,259 | |||||||||||
General and administrative expenses | -2,819 | -2,361 | |||||||||||
Advisory fees, related party | -3,743 | -3,684 | |||||||||||
Interest and other income | -78 | -104 | |||||||||||
Interest expense | -16,168 | -16,550 | |||||||||||
Loss on extinguishment of debt and financing commitments | -63 | -270 | |||||||||||
Gain on sale of real property | 3,626 | - | |||||||||||
Discontinued operations, net of taxes | 29,857 | -4,113 | |||||||||||
Net income attributable to noncontrolling interests | -4,550 | 499 | |||||||||||
Net income (loss) attributable to common stockholders | $ | 27,438 | $ | -5,367 | |||||||||
Summary of Total Assets by Business Segment | ' | ||||||||||||
As of | |||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
Segment assets: | |||||||||||||
Net investments in real property | |||||||||||||
Office | $ | 1,057,115 | $ | 1,092,350 | |||||||||
Industrial | 227,221 | 229,787 | |||||||||||
Retail | 595,298 | 602,505 | |||||||||||
Debt related investments, net | 94,180 | 123,935 | |||||||||||
Total segment assets, net | 1,973,814 | 2,048,577 | |||||||||||
Non-segment assets: | |||||||||||||
Cash and cash equivalents | 81,292 | 24,778 | |||||||||||
Other non-segment assets (1) | 103,065 | 85,878 | |||||||||||
Assets held for sale | 3,301 | 146,176 | |||||||||||
Total assets | $ | 2,161,472 | $ | 2,305,409 | |||||||||
(1)Other non-segment assets primarily consist of corporate assets including restricted cash and receivables, including straight-line rent receivable. | |||||||||||||
Organization_Details
Organization (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jul. 12, 2012 | |
Operating Partnership Units | Operating Partnership Units | Class E OP Units [Member] | Class E OP Units [Member] | NAV Offering [Member] | NAV Offering [Member] | |||
Organization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of proceeds received from public offerings of common stock contributed to our Operating Partnership | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Limited partnership interest owned in Operating Partnership | ' | ' | 93.20% | 93.00% | ' | ' | ' | ' |
Operating Partnership units issued | ' | ' | ' | ' | 12,900,000 | 13,300,000 | ' | ' |
Operating Partnership units outstanding | ' | ' | ' | ' | 12,900,000 | 13,300,000 | ' | ' |
Maximum NAV share value total | ' | ' | ' | ' | ' | ' | $2,963,500,000 | $3,000,000,000 |
Maximum NAV share value primary offering | ' | ' | ' | ' | ' | ' | ' | 2,250,000,000 |
Maximum share value, DRIP | ' | ' | ' | ' | ' | ' | 749,700,000 | 750,000,000 |
Gross proceeds from sale of shares in the Offering | ' | ' | ' | ' | ' | ' | 36,500,000 | ' |
Shares issued | ' | ' | ' | ' | ' | ' | 5,300,000 | ' |
Proceeds from issuance, DRIP | $5,238,000 | $5,505,000 | ' | ' | ' | ' | $256,000 | ' |
Investments_in_Real_Property_N
Investments in Real Property (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
property | property | |
Discontinued Operations | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Number of properties sold | 12 | 13 |
Number of industrial properties classified as held for sale | ' | 12 |
Industrial | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Number of industrial properties classified as held for sale | ' | 12 |
Investments_In_Real_Property_C
Investments In Real Property (Consolidated Investments In Real Property) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Investments [Line Items] | ' | ' | ||
Investment in real property, Gross book value | $2,352,401,000 | $2,570,480,000 | ||
Intangible lease liabilities, Gross book value | -105,838,000 | -113,546,000 | ||
Real estate investments, Gross book value | 2,246,563,000 | 2,456,934,000 | ||
Accumulated depreciation and amortization | -469,466,000 | -502,847,000 | ||
Intangible lease liabilities, accumulated amortization | 33,449,000 | 35,997,000 | ||
Accumulated depreciation/amortization | -436,017,000 | -466,850,000 | ||
Investment in real property | 1,882,935,000 | 2,067,633,000 | ||
Intangible lease liabilities, Net book value | -72,389,000 | -77,549,000 | ||
Real estate investments, Net book value | 1,810,546,000 | 1,990,084,000 | ||
Land available-for-sale | 3,125,000 | 21,060,000 | ||
Building and improvements held-for-sale | 195,000 | 157,679,000 | ||
Intangible lease assets held-for-sale | 3,400,000 | 14,877,000 | ||
Intangible lease liabilities held-for-sale | ' | 3,136,000 | ||
Accumulated depreciation on assets | 3,419,000 | 50,625,000 | ||
Land | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Land | 485,243,000 | 511,013,000 | ||
Building and Building Improvements | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Building and Improvements | 1,377,948,000 | 1,549,524,000 | ||
Accumulated depreciation and amortization | -171,300,000 | -207,966,000 | ||
Real estate investments, Net book value | 1,206,648,000 | 1,341,558,000 | ||
Intangible Lease Assets | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Intangible Lease Assets | 489,210,000 | 509,943,000 | ||
Accumulated depreciation and amortization | -298,166,000 | -294,881,000 | ||
Intangible lease liabilities, Net book value | 191,044,000 | 215,062,000 | ||
Office | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Investment in real property, Gross book value | 1,347,603,000 | [1] | 1,367,085,000 | |
Intangible lease liabilities, Gross book value | -15,861,000 | [1] | -15,861,000 | |
Real estate investments, Net book value | 1,331,742,000 | [1] | 1,351,224,000 | |
Land available-for-sale | 3,100,000 | ' | ||
Building and improvements held-for-sale | 195,000 | ' | ||
Intangible lease assets held-for-sale | 3,400,000 | ' | ||
Intangible lease liabilities held-for-sale | 62,000 | ' | ||
Accumulated depreciation on assets | 3,400,000 | ' | ||
Accumulated amortization of intangible lease liabilities | 62,000 | ' | ||
Office | Land | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Land | 229,216,000 | [1] | 232,117,000 | |
Office | Building and Building Improvements | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Building and Improvements | 757,463,000 | [1] | 769,654,000 | |
Office | Intangible Lease Assets | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Intangible Lease Assets | 360,924,000 | [1] | 365,314,000 | |
Industrial | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Investment in real property, Gross book value | 285,146,000 | 478,355,000 | [2] | |
Intangible lease liabilities, Gross book value | -41,011,000 | -46,626,000 | [2] | |
Real estate investments, Net book value | 244,135,000 | 431,729,000 | [2] | |
Land available-for-sale | ' | 21,100,000 | ||
Building and improvements held-for-sale | ' | 157,700,000 | ||
Intangible lease assets held-for-sale | ' | 14,900,000 | ||
Intangible lease liabilities held-for-sale | ' | 5,600,000 | ||
Accumulated depreciation on assets | ' | 50,600,000 | ||
Accumulated amortization of intangible lease liabilities | ' | 2,500,000 | ||
Number of industrial properties classified as held for sale | ' | 12 | ||
Industrial | Land | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Land | 30,619,000 | 51,678,000 | [2] | |
Industrial | Building and Building Improvements | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Building and Improvements | 202,528,000 | 359,800,000 | [2] | |
Industrial | Intangible Lease Assets | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Intangible Lease Assets | 51,999,000 | 66,877,000 | [2] | |
Retail | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Investment in real property, Gross book value | 719,652,000 | 725,040,000 | ||
Intangible lease liabilities, Gross book value | -48,966,000 | -51,059,000 | ||
Real estate investments, Net book value | 670,686,000 | 673,981,000 | ||
Retail | Land | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Land | 225,408,000 | 227,218,000 | ||
Retail | Building and Building Improvements | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Building and Improvements | 417,957,000 | 420,070,000 | ||
Retail | Intangible Lease Assets | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Intangible Lease Assets | $76,287,000 | $77,752,000 | ||
[1] | Includes $3.1 million in land, $195,000 in building and improvements, $3.4 million in intangible lease assets, and $62,000 in intangible lease liabilities, before accumulated depreciation on assets of $3.4 million and accumulated amortization of intangible lease liabilities of $62,000, related to an office property and a land parcel classified as held for sale in the accompanying balance sheet as of March 31, 2014. | |||
[2] | Includes $21.1 million in land, $157.7 million in building and improvements, $14.9 million in intangible lease assets, and $5.6 million in intangible lease liabilities, before accumulated depreciation on assets of $50.6 million and accumulated amortization of intangible lease liabilities of $2.5 million, related to 12 industrial properties classified as held for sale in the accompanying balance sheet as of December 31, 2013. |
Investments_in_Real_Property_S
Investments in Real Property (Summary of Disposed Properties) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | |
sqft | ||
Significant Acquisitions and Disposals [Line Items] | ' | |
Square feet | 3,599,000 | |
Gain (Loss) | $33,171 | |
Industrial Portfolio Properties; Various Markets [Member] | ' | |
Significant Acquisitions and Disposals [Line Items] | ' | |
DPF Ownership | 92.50% | [1] |
Square feet | 3,387,000 | [1] |
Disposition Date | 22-Jan-14 | [1] |
Gain (Loss) | 29,545 | [1] |
Retail Property, Boston, MA Market [Member] | ' | |
Significant Acquisitions and Disposals [Line Items] | ' | |
DPF Ownership | 100.00% | |
Square feet | 110,000 | |
Disposition Date | 18-Feb-14 | |
Gain (Loss) | 2,276 | |
Office Property, Little Rock, AR Market [Member] | ' | |
Significant Acquisitions and Disposals [Line Items] | ' | |
DPF Ownership | 100.00% | |
Square feet | 102,000 | |
Disposition Date | 25-Feb-14 | |
Gain (Loss) | $1,350 | |
Office Property, East Bay, CA Market [Member] | ' | |
Significant Acquisitions and Disposals [Line Items] | ' | |
DPF Ownership | 100.00% | |
Square feet | 60,000 | |
Land Parcel Property, Denver, CO Market [Member] | ' | |
Significant Acquisitions and Disposals [Line Items] | ' | |
DPF Ownership | 100.00% | |
Assets Held for Sale [Member] | ' | |
Significant Acquisitions and Disposals [Line Items] | ' | |
Square feet | 60,000 | |
[1] | Industrial portfolio included twelve properties located in the following markets: Atlanta, GA, Central Pennsylvania, Cincinnati, OH, Columbus, OH, Dallas, TX, Indianapolis, IN, and Minneapolis/St. Paul, MN. |
Investments_in_Real_Property_S1
Investments in Real Property (Summary of Income and Expenses Attributable to Discontinued Operations) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Investments in Real Property [Abstract] | ' | ' | ||
Revenues | $995 | $16,038 | ||
Rental expense | -367 | -6,431 | ||
Real estate depreciation and amortization expense | ' | -9,264 | ||
Interest expense | -296 | -5,601 | ||
Other expenses | -20 | -68 | ||
Income (loss) from discontinued operations | 312 | -5,326 | ||
Gain on disposition, net of taxes | 29,545 | 1,213 | ||
Discontinued operations, net of taxes | 29,857 | [1] | -4,113 | [1] |
Discontinued operations attributable to noncontrolling interests | -4,433 | 355 | ||
Income from discontinued operations attributable to common stockholders | $25,424 | ($3,758) | ||
[1] | Includes approximately $1.9 million and $85,000, paid to our Advisor for advisory fees associated with the disposition of real properties during the three months ended March 31, 2014 and 2013, respectively. |
Investments_in_Real_Property_S2
Investments in Real Property (Summary of Capital Expenditures, Significant Operating and Investing Noncash Items Related to Discontinued Operations) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule Of Investments [Line Items] | ' | ' | |
Capital expenditures | $4,276 | $5,397 | |
Straight-line rent adjustments | 1,305 | 2,968 | |
Amortization of above-market lease assets | -1,724 | -1,926 | |
Amortization of below-market lease liabilities | 1,832 | 2,102 | |
Non-cash disposition of real property | 94,011 | [1] | ' |
Discontinued Operations | ' | ' | |
Schedule Of Investments [Line Items] | ' | ' | |
Capital expenditures | ' | 2,798 | |
Straight-line rent adjustments | -41 | 1,283 | |
Amortization of above-market lease assets | ' | -200 | |
Amortization of below-market lease liabilities | ' | 482 | |
Non-cash disposition of real property | $80,361 | ' | |
[1] | Represents the amount of sales proceeds and debt repayments from the disposition of real property or the repayment of borrowings that we did not receive or pay in cash, primarily due to the repayment or assumption of related borrowings by the purchaser or borrower at closing. |
Investments_in_Real_Property_S3
Investments in Real Property (Summary of Carrying Amounts of Major Classes of Assets and Liabilities) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Disclosure Summary Of Consolidated Investments In Real Property [Abstract] | ' | ' | ||
Land | $3,125 | $21,060 | ||
Building and improvements | 195 | 157,679 | ||
Intangible lease assets | 3,400 | 14,877 | ||
Accumulated depreciation | -3,419 | -50,625 | ||
Other assets, net | ' | 3,185 | ||
Assets held for sale | 3,301 | [1] | 146,176 | [1] |
Mortgage notes and other secured borrowings | ' | 80,428 | ||
Intangible lease liabilities, net | ' | 3,136 | ||
Other liabilities | 58 | 3,104 | ||
Liabilities related to assets held for sale | $58 | [2] | $86,668 | [2] |
[1] | Includes approximately $0 and $143.0 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[2] | Includes approximately $0 and $80.4 million in consolidated mortgage notes in variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. |
Investments_in_Real_Property_S4
Investments in Real Property (Summary of Adjustments to Rental Revenue Related to Amortization of Above-Market Lease Assets, Below-Market Lease Liabilities, and for Straight-Line Rental Adjustments) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Investments in Real Property [Abstract] | ' | ' |
Straight-line rent adjustments | $1,305 | $2,968 |
Amortization of above-market lease assets | -1,724 | -1,926 |
Amortization of below-market lease liabilities | 1,832 | 2,102 |
Total increase to rental revenue | 1,413 | 3,144 |
Tenant recovery income | $8,202 | $8,789 |
Debt_Related_Investments_Narra
Debt Related Investments (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |||
security | security | security | Subsequent Event | B-notes | B-notes | |||
security | security | |||||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | ||
Number of debt investments | 11 | ' | 14 | ' | ' | ' | ||
Weighted average maturity of our debt investments | '2 years 9 months 18 days | ' | ' | ' | ' | ' | ||
Number of debt investment repaid | 3 | 2 | ' | ' | ' | ' | ||
Net cash proceeds from repayment | $22,600,000 | ' | ' | ' | ' | ' | ||
Principal repayment | 29,700,000 | ' | ' | 4,600,000 | ' | ' | ||
Repayments of borrowings | 7,100,000 | ' | ' | ' | ' | ' | ||
Provision for loan loss | 3,000,000 | ' | 3,000,000 | ' | ' | ' | ||
Recorded Investment | 3,000,000 | ' | 3,000,000 | ' | ' | ' | ||
Investment in real property | 1,879,634,000 | [1] | ' | 1,924,642,000 | [1] | ' | ' | ' |
Number of Nonaccrual Loans Receivable | ' | ' | ' | ' | 1 | 1 | ||
Unpaid principal balance of impaired debt investments | $3,000,000 | ' | $3,000,000 | ' | ' | ' | ||
Number of impaired debt investments | 1 | ' | 1 | ' | ' | ' | ||
[1] | Includes approximately $81.9 million and $82.4 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. |
Debt_Related_Investments_Sched
Debt Related Investments (Schedule of Debt Related Income) (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
security | security | |||
Investment [Line Items] | ' | ' | ||
Debt related income | $2,013,000 | $2,735,000 | ||
Weighted Average Yield | 7.30% | [1] | ' | |
Number of variable interest loans receivable | 1 | ' | ||
Carrying amount of floating rate debt investments | 25,000,000 | ' | ||
Number of debt investment repaid | 3 | 2 | ||
Mortgage Notes | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Debt related income | 1,351,000 | [2] | 2,429,000 | [2] |
Weighted Average Yield | 5.40% | [1],[2] | ' | |
B-notes | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Debt related income | ' | 51,000 | ||
Weighted Average Yield | 0.00% | [1] | ' | |
Mezzanine loan | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Debt related income | $662,000 | $255,000 | ||
Weighted Average Yield | 16.70% | [1] | ' | |
Floating-rate debt related investments, net | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Weighted Average Yield | 0.00% | ' | ||
[1] | Weighted average yield is calculated on an unlevered basis using the amount invested, current interest rates and accretion of premiums or discounts realized upon the initial investment for each investment type as of March 31, 2014. Yields for LIBOR-based, floating-rate investments have been calculated using the one-month LIBOR rate as of March 31, 2014 for purposes of this table. As of March 31, 2014, we had one debt related investment with a net investment amount of $25.0 million that bears interest at a floating rate indexed to LIBOR. All of our remaining debt related investments bear interest at fixed rates. We have assumed a yield of zero on the one debt related investment for which we have recognized a full allowance for loss as of March 31, 2014. | |||
[2] | We had three and two debt related investments repaid in full during the three months ended March 31, 2014 and 2013, respectively. During the three months ended March 31, 2014 and 2013, amounts recorded include early repayment fees received and accelerated amortization of origination fees offset by accelerated amortization of deferred due diligence costs related to certain of these repayments. |
Debt_Related_Investments_Recor
Debt Related Investments (Recorded Investment in Debt Related Investments before Allowance for Loan Loss, and Related Allowance for Loan Loss) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disclosure Recorded Investment In Debt Related Investments Before Allowance For Loan Loss And Related Allowance For Loan Loss [Abstract] | ' | ' |
Debt investments | $97,180 | $126,935 |
Less: Allowance for loan losses | -3,000 | -3,000 |
Total | $94,180 | $123,935 |
Debt_Related_Investments_Avera
Debt Related Investments (Average Recorded Net Investment in Impaired Debt Related Investments and Related Interest Income Recorded) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Debt Related Investments [Abstract] | ' | ' |
Average Recorded Investment | ' | $6,067 |
Interest Income Recognized | ' | $51 |
Debt_Obligations_Narrative_Det
Debt Obligations (Narrative) (Details) (USD $) | 3 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |||
loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Number of interest-only mortgage notes | 10 | ' | ' | ||
Number of amortizing mortgage notes | 18 | ' | ' | ||
Interest-only mortgage notes, outstanding balance | $288,100,000 | ' | ' | ||
Amortizing mortgage notes outstanding balance | 591,700,000 | ' | ' | ||
Total unsecured borrowings | 270,000,000 | ' | 300,000,000 | ||
Line of credit, amount outstanding | 0 | ' | 30,000,000 | [1] | |
Current borrowing capacity | 350,000,000 | ' | ' | ||
Available borrowing under revolving credit facility | 169,600,000 | ' | 86,100,000 | ||
Notice of default description | 'As of March 31, 2014, we had defaulted on a mortgage note with an outstanding principal balance of $14.3 million collateralized by an industrial property with a gross investment amount of $19.0 million, after impairment charges. Our default resulted from us not making monthly debt service payments as required by the loan agreement. We have requested that the lender restructure the loan terms; however, there are no assurances that we will be successful in our negotiation with the lender. We also have discussed with the lender placing the property in receivership pending resolution of the restructure negotiation. Pursuant to the terms of the loan agreement, should the lender enforce its rights, we may be subject to interest rates increasing to a higher default rate and/or the lender foreclosing on the underlying real property collateral. With the exception of customary "carve-outs" (none of which we believe currently apply to this loan), this loan is not recourse to us; therefore, our equity investment in this property is at risk of loss. This default does not impact our remaining debt covenants. | ' | ' | ||
Borrowed Funds | 1,188,716,000 | ' | 1,323,472,000 | [1] | |
Real estate investment, gross | 2,352,401,000 | ' | 2,570,480,000 | ||
Line of credit, interest rate | ' | ' | 1.90% | ||
Repayment of outstanding borrowings | 3,418,000 | 18,513,000 | ' | ||
Outstanding Balance | 1,187,614,000 | [2],[3] | ' | ' | |
Gross Investment Amount Securing Borrowings | 1,777,465,000 | ' | 1,980,243,000 | [4] | |
Industrial | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Real estate investment, gross | 285,146,000 | ' | 478,355,000 | [5] | |
Repurchase Facility | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Gross Investment Amount Securing Borrowings | 52,454,000 | [6] | ' | 65,726,000 | [4],[6] |
Term Loan | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Total unsecured borrowings | 270,000,000 | ' | 270,000,000 | ||
Line of credit, amount outstanding | 270,000,000 | [7] | ' | 270,000,000 | [1],[7] |
Mortgage Note in Payment Default [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Borrowed Funds | 14,300,000 | ' | ' | ||
Mortgage Note in Payment Default [Member] | Industrial | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Real estate investment, gross | $19,000,000 | ' | ' | ||
[1] | Amounts presented are net of (i)B unamortized discounts to the face value of our outstanding fixed-rate mortgages of $2.8 million and $2.7 million as of March 31, 2014 and DecemberB 31, 2013, respectively, and (ii)B GAAP principal amortization related to troubled debt restructurings of $1.7 million and $1.5 million as of March 31, 2014 and DecemberB 31, 2013, respectively. | ||||
[2] | Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include (i)B the mark-to-market adjustment on assumed debt of $2.8 million as of March 31, 2014, and (ii)B the GAAP principal amortization of our restructured mortgage note of approximately $1.7 million that does not reduce the contractual amount due of the related mortgage note as of March 31, 2014. | ||||
[3] | As of March 31, 2014, our mortgage notes and secured borrowings are secured by interests in real properties and debt investments totaling approximately $1.8 billion. | ||||
[4] | bGross Investment Amountb as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i)B includes the effect of intangible lease liabilities, (ii)B excludes accumulated depreciation and amortization, and (iii)B includes the impact of impairments.B Amounts reported for debt related investments represent our net accounting basis of the debt investments, which includes (i)B unpaid principal balances, (ii)B unamortized discounts, premiums, and deferred charges, andB (iii) allowances for loan loss. | ||||
[5] | Includes $21.1 million in land, $157.7 million in building and improvements, $14.9 million in intangible lease assets, and $5.6 million in intangible lease liabilities, before accumulated depreciation on assets of $50.6 million and accumulated amortization of intangible lease liabilities of $2.5 million, related to 12 industrial properties classified as held for sale in the accompanying balance sheet as of December 31, 2013. | ||||
[6] | As of March 31, 2014 and December 31, 2013, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings. | ||||
[7] | As of March 31, 2014 and December 31, 2013, borrowings under our term loan were subject to interest at a floating rate of 1.70% over one-month LIBOR. However, we had effectively fixed the interest rate for $200.0 million of the total of $270.0 million in borrowings using interest rate swaps at 2.34%, resulting in a weighted average interest rate on the total term loan of 2.21%. |
Debt_Obligations_Summary_of_Bo
Debt Obligations (Summary of Borrowings) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 4.80% | 4.90% | ||
Outstanding Balance | $1,188,716,000 | $1,323,472,000 | [1] | |
Gross Investment Amount Securing Borrowings | 1,777,465,000 | 1,980,243,000 | [2] | |
Unamortized net discount at end of period on debt payable | 2,800,000 | 2,700,000 | ||
Troubled debt restructuring amortization | 1,700,000 | 1,500,000 | ||
Liabilities held for sale | 58,000 | [3] | 86,668,000 | [3] |
Line of credit, interest rate | ' | 1.90% | ||
Mortgage notes | 918,716,000 | [4] | 943,045,000 | [4] |
Total secured borrowings | 918,716,000 | 1,023,472,000 | [1] | |
Line of credit, amount outstanding | 0 | 30,000,000 | [1] | |
Total unsecured borrowings | 270,000,000 | 300,000,000 | ||
Fixed rate secured borrowings | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 5.80% | 5.80% | ||
Outstanding Balance | 872,354,000 | 969,622,000 | [1] | |
Gross Investment Amount Securing Borrowings | 1,709,338,000 | 1,898,946,000 | [2] | |
Floating-rate mortgage notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 3.90% | [5] | 3.90% | [5] |
Outstanding Balance | 8,520,000 | [5] | 8,580,000 | [1],[5] |
Gross Investment Amount Securing Borrowings | 15,673,000 | [5] | 15,571,000 | [2],[5] |
Outstanding borrowing spread over LIBOR | 3.75% | 3.75% | ||
Total mortgage notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 5.70% | 5.80% | ||
Outstanding Balance | 880,874,000 | 978,202,000 | [1] | |
Gross Investment Amount Securing Borrowings | 1,725,011,000 | 1,914,517,000 | [2] | |
Repurchase Facility | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 2.80% | [6] | 2.80% | [6] |
Gross Investment Amount Securing Borrowings | 52,454,000 | [6] | 65,726,000 | [2],[6] |
Mortgage notes | 37,800,000 | ' | ||
Total other secured borrowings | 37,842,000 | [6] | 45,270,000 | [1],[6] |
Total other secured borrowings | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 2.80% | 2.80% | ||
Gross Investment Amount Securing Borrowings | 52,454,000 | 65,726,000 | [2] | |
Total other secured borrowings | 37,842,000 | 45,270,000 | [1] | |
Total Secured Borrowings [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 5.60% | 5.60% | ||
Term Loan | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 2.21% | [7] | 2.21% | [7] |
Outstanding borrowing spread over LIBOR | 1.70% | 1.70% | ||
Line of credit, amount outstanding | 270,000,000 | [7] | 270,000,000 | [1],[7] |
Total unsecured borrowings | 270,000,000 | 270,000,000 | ||
Unsecured Borrowings | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Stated Interest Rate | 2.20% | 2.20% | ||
Outstanding Balance | 200,000,000 | 200,000,000 | ||
Interest rate | 2.34% | 2.34% | ||
Total unsecured borrowings | $270,000,000 | $300,000,000 | [1] | |
Fixed rate secured borrowings | Repurchase Facility | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 2.84% | 2.84% | ||
Minimum | Repurchase Facility | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding borrowing spread over LIBOR | 2.25% | 2.25% | ||
[1] | Amounts presented are net of (i)B unamortized discounts to the face value of our outstanding fixed-rate mortgages of $2.8 million and $2.7 million as of March 31, 2014 and DecemberB 31, 2013, respectively, and (ii)B GAAP principal amortization related to troubled debt restructurings of $1.7 million and $1.5 million as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[2] | bGross Investment Amountb as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i)B includes the effect of intangible lease liabilities, (ii)B excludes accumulated depreciation and amortization, and (iii)B includes the impact of impairments.B Amounts reported for debt related investments represent our net accounting basis of the debt investments, which includes (i)B unpaid principal balances, (ii)B unamortized discounts, premiums, and deferred charges, andB (iii) allowances for loan loss. | |||
[3] | Includes approximately $0 and $80.4 million in consolidated mortgage notes in variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[4] | Includes approximately $60.4 million and $60.7 million in consolidated mortgage notes in variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[5] | As of March 31, 2014 and December 31, 2013, our floating-rate mortgage note was subject to an interest rate spread of 3.75% over one-month LIBOR. | |||
[6] | As of March 31, 2014 and December 31, 2013, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings. | |||
[7] | As of March 31, 2014 and December 31, 2013, borrowings under our term loan were subject to interest at a floating rate of 1.70% over one-month LIBOR. However, we had effectively fixed the interest rate for $200.0 million of the total of $270.0 million in borrowings using interest rate swaps at 2.34%, resulting in a weighted average interest rate on the total term loan of 2.21%. |
Debt_Obligations_Summary_of_Bo1
Debt Obligations (Summary of Borrowings Reflects Contractual Debt Maturities Footnote) (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | $1,187,614,000 | [1],[2] | ' | |
Secured debt | 918,716,000 | [3] | 943,045,000 | [3] |
Line of credit, amount outstanding | 0 | 30,000,000 | [4] | |
Mark to market adjustment on assumed debt | 2,800,000 | ' | ||
Troubled debt restructuring amortization | 1,700,000 | 1,500,000 | ||
Gross Investment Amount Securing Borrowings | 1,777,465,000 | 1,980,243,000 | [5] | |
Borrowings | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Repurchase agreement borrowing maturity period | '2014 | ' | ||
2014 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 95,049,000 | [1],[2] | ' | |
2015 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 97,742,000 | [1],[2] | ' | |
2016 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 336,088,000 | [1],[2] | ' | |
2017 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 209,721,000 | [1],[2] | ' | |
2018 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 274,999,000 | [1],[2] | ' | |
2019 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 5,292,000 | [1],[2] | ' | |
2020 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 157,944,000 | [1],[2] | ' | |
2021 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 1,707,000 | [1],[2] | ' | |
2022 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 1,663,000 | [1],[2] | ' | |
2023 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 978,000 | [1],[2] | ' | |
Thereafter | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Balance | 6,431,000 | [1],[2] | ' | |
Repurchase Facility | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured debt | 37,800,000 | ' | ||
Gross Investment Amount Securing Borrowings | 52,454,000 | [6] | 65,726,000 | [5],[6] |
Mortgage Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Secured debt | 879,800,000 | ' | ||
Mortgage Notes | Minimum | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument maturity year | '2014 | ' | ||
Mortgage Notes | Maximum | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument maturity year | '2029 | ' | ||
Mortgage Notes and Other Secured Borrowings | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 29 | ' | ||
Outstanding Balance | 917,614,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2014 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 3 | ' | ||
Outstanding Balance | 95,049,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2015 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 4 | ' | ||
Outstanding Balance | 97,742,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2016 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 12 | ' | ||
Outstanding Balance | 336,088,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2017 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 6 | ' | ||
Outstanding Balance | 209,721,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2018 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Outstanding Balance | 4,999,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2019 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Outstanding Balance | 5,292,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2020 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 1 | ' | ||
Outstanding Balance | 157,944,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2021 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Outstanding Balance | 1,707,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2022 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 1 | ' | ||
Outstanding Balance | 1,663,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | 2023 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Outstanding Balance | 978,000 | [7] | ' | |
Mortgage Notes and Other Secured Borrowings | Thereafter | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 2 | ' | ||
Outstanding Balance | 6,431,000 | [7] | ' | |
Unsecured Borrowings | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 1 | ' | ||
Outstanding Balance | 270,000,000 | [8] | ' | |
Unsecured Borrowings | 2014 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | 2015 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | 2016 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | 2017 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | 2018 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 1 | ' | ||
Outstanding Balance | $270,000,000 | [8] | ' | |
Term Loan borrowings maturity period | '2018 | ' | ||
Unsecured Borrowings | 2019 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | 2020 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | 2021 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | 2022 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | 2023 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
Unsecured Borrowings | Thereafter | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Number of Borrowings Maturing | 0 | ' | ||
[1] | Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include (i)B the mark-to-market adjustment on assumed debt of $2.8 million as of March 31, 2014, and (ii)B the GAAP principal amortization of our restructured mortgage note of approximately $1.7 million that does not reduce the contractual amount due of the related mortgage note as of March 31, 2014. | |||
[2] | As of March 31, 2014, our mortgage notes and secured borrowings are secured by interests in real properties and debt investments totaling approximately $1.8 billion. | |||
[3] | Includes approximately $60.4 million and $60.7 million in consolidated mortgage notes in variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[4] | Amounts presented are net of (i)B unamortized discounts to the face value of our outstanding fixed-rate mortgages of $2.8 million and $2.7 million as of March 31, 2014 and DecemberB 31, 2013, respectively, and (ii)B GAAP principal amortization related to troubled debt restructurings of $1.7 million and $1.5 million as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||
[5] | bGross Investment Amountb as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i)B includes the effect of intangible lease liabilities, (ii)B excludes accumulated depreciation and amortization, and (iii)B includes the impact of impairments.B Amounts reported for debt related investments represent our net accounting basis of the debt investments, which includes (i)B unpaid principal balances, (ii)B unamortized discounts, premiums, and deferred charges, andB (iii) allowances for loan loss. | |||
[6] | As of March 31, 2014 and December 31, 2013, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings. | |||
[7] | Secured borrowings presented include (i)B mortgage note borrowings of approximately $879.8 million with maturities ranging from 2014 to 2029, and (ii)B borrowings under our repurchase facility of approximately $37.8 million, which matures in 2014 and is subject to three one-year extension options. | |||
[8] | Unsecured borrowings presented includeB term loan borrowings of $270.0 million which mature in 2018. Our revolving credit facility, under which we had no borrowings as of March 31, 2014, matures in 2016, and is subject to two one-year extension options. |
Hedging_Activities_Narrative_D
Hedging Activities (Narrative) (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Scenario, Forecast [Member] | Designated Hedges | Designated Hedges | Interest Rate Swap | Interest Rate Swap | Interest Rate Cap |
Scenario, Forecast [Member] | Designated Hedges | Designated Hedges | ||||
agreement | agreement | |||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated increase to interest expense related to termination of hedging instrument | ' | ' | ' | $1.80 | ' | ' |
Estimated increase to interest expense related to active effective hedges of floating rate debt | 1.1 | ' | ' | ' | ' | ' |
Total notional amount | ' | $255.10 | $255.40 | ' | ' | ' |
Number of outstanding derivatives | ' | ' | ' | ' | 7 | 7 |
Hedging_Activities_Reconciliat
Hedging Activities (Reconciliation of Accumulated Other Comprehensive Loss, Net of Amounts Attributable to Noncontrolling Interests) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance as of December 31, 2013 | ($10,794) |
Amortization of OCI into interest expense (net of tax benefit of $0) | 749 |
Change in fair value recognized in OCI (net of tax benefit of $0) | -639 |
Net current-period other comprehensive income | 110 |
Attribution of and other adjustments to OCI attributable to noncontrolling interests | 98 |
Ending balance as of March 31, 2014 | -10,586 |
Amortization of OCI into interest expense, Tax | 0 |
Change in fair value recognized in OCI, Tax | 0 |
Losses reclassified into loss on extinguishment of debt and financing commitments upon discontinuance of cash flow hedges, Tax | 0 |
Gains And Losses On Cash Flow Hedges [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance as of December 31, 2013 | -9,876 |
Amortization of OCI into interest expense (net of tax benefit of $0) | 749 |
Change in fair value recognized in OCI (net of tax benefit of $0) | -428 |
Net current-period other comprehensive income | 321 |
Attribution of and other adjustments to OCI attributable to noncontrolling interests | 31 |
Ending balance as of March 31, 2014 | -9,524 |
Unrealized Gains And Losses On Available-For-Sale Securities [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance as of December 31, 2013 | -918 |
Change in fair value recognized in OCI (net of tax benefit of $0) | -211 |
Net current-period other comprehensive income | -211 |
Attribution of and other adjustments to OCI attributable to noncontrolling interests | 67 |
Ending balance as of March 31, 2014 | ($1,062) |
Hedging_Activities_Gross_Fair_
Hedging Activities (Gross Fair Value of Derivative Financial Instruments as Well as Their Classification) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Derivatives, Fair value, Gross asset | $651 | [1] | $748 | [1] |
Other Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liability Derivatives, Fair value, Gross liability | -74 | [1] | -43 | [1] |
Designated Hedges | Other Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Derivatives, Fair value, Gross asset | 651 | 748 | ||
Designated Hedges | Other Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liability Derivatives, Fair value, Gross liability | -74 | -43 | ||
Designated Hedges | Interest Rate Contract | Other Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Derivatives, Fair value, Gross asset | 651 | 748 | ||
Designated Hedges | Interest Rate Contract | Other Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liability Derivatives, Fair value, Gross liability | -74 | -43 | ||
Undesignated hedges | Other Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Derivatives, Fair value, Gross asset | ' | ' | ||
Undesignated hedges | Other Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liability Derivatives, Fair value, Gross liability | ' | ' | ||
Undesignated hedges | Interest Rate Contract | Other Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Derivatives, Fair value, Gross asset | ' | ' | ||
Undesignated hedges | Interest Rate Contract | Other Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liability Derivatives, Fair value, Gross liability | ' | ' | ||
[1] | Although our derivative contracts are subject to master netting arrangements which serve as credit mitigants to both us and our counterparties under certain situations, we do not net our derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet. |
Hedging_Activities_Effect_of_D
Hedging Activities (Effect of Derivative Financial Instruments on Financial Statements) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Designated Hedges | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of loss recognized in income due to missed forecast (ineffective portion and amount excluded from effectiveness testing) | ' | ($27) |
Designated Hedges | Interest Expense | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of loss reclassified from accumulated OCI into income (effective portion) | -749 | -645 |
Designated Hedges | Interest Rate Contract | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of gain (loss) recognized in OCI (effective portion) | -428 | -28 |
Undesignated hedges | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of gain (loss) recognized in income | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying (Reported) Amount, Fair Value Disclosure | ' | ' |
Assets: | ' | ' |
Derivative instruments | $651 | $748 |
Liabilities: | ' | ' |
Fixed-rate mortgage notes carried at amortized cost | 872,354 | 969,622 |
Derivative liabilities | 74 | 43 |
Carrying (Reported) Amount, Fair Value Disclosure | Real Estate Securities | ' | ' |
Assets: | ' | ' |
Investments in real estate securities | 200 | 461 |
Carrying (Reported) Amount, Fair Value Disclosure | Fixed-rate debt related investments, net | ' | ' |
Assets: | ' | ' |
Fixed-rate debt related investments, net | 69,006 | 98,724 |
Carrying (Reported) Amount, Fair Value Disclosure | Floating-rate debt related investments, net | ' | ' |
Assets: | ' | ' |
Floating-rate debt related investments, net | 25,174 | 25,211 |
Carrying (Reported) Amount, Fair Value Disclosure | Floating-rate mortgage notes | ' | ' |
Liabilities: | ' | ' |
Floating-rate mortgage notes | 8,520 | 8,580 |
Carrying (Reported) Amount, Fair Value Disclosure | Floating rate mortgages | ' | ' |
Liabilities: | ' | ' |
Floating-rate other secured borrowings | 37,842 | 45,270 |
Carrying (Reported) Amount, Fair Value Disclosure | Floating Rate Un-Secured Borrowings | ' | ' |
Liabilities: | ' | ' |
Floating-rate unsecured borrowings | 270,000 | 300,000 |
Estimate of Fair Value, Fair Value Disclosure | ' | ' |
Assets: | ' | ' |
Derivative instruments | 651 | 748 |
Liabilities: | ' | ' |
Fixed-rate mortgage notes carried at amortized cost | 915,607 | 1,010,085 |
Derivative liabilities | 74 | 43 |
Estimate of Fair Value, Fair Value Disclosure | Real Estate Securities | ' | ' |
Assets: | ' | ' |
Investments in real estate securities | 200 | 461 |
Estimate of Fair Value, Fair Value Disclosure | Fixed-rate debt related investments, net | ' | ' |
Assets: | ' | ' |
Fixed-rate debt related investments, net | 71,639 | 101,012 |
Estimate of Fair Value, Fair Value Disclosure | Floating-rate debt related investments, net | ' | ' |
Assets: | ' | ' |
Floating-rate debt related investments, net | 25,356 | 24,504 |
Estimate of Fair Value, Fair Value Disclosure | Floating-rate mortgage notes | ' | ' |
Liabilities: | ' | ' |
Floating-rate mortgage notes | 8,524 | 8,582 |
Estimate of Fair Value, Fair Value Disclosure | Floating rate mortgages | ' | ' |
Liabilities: | ' | ' |
Floating-rate other secured borrowings | 37,842 | 45,270 |
Estimate of Fair Value, Fair Value Disclosure | Floating Rate Un-Secured Borrowings | ' | ' |
Liabilities: | ' | ' |
Floating-rate unsecured borrowings | $271,003 | $301,690 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transactions [Abstract] | ' | ' |
Amount owed to Advisor | $1.40 | $1.60 |
Related_Party_Transactions_Sum
Related Party Transactions (Summary of Fees and Other Amounts Earned by Advisor and Its Related Parties) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Total | $7,849 | $5,164 |
Asset Management And Advisory Fees. | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total | 3,743 | 3,684 |
Development Management Fees | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total | 83 | 55 |
Other Reimbursements | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total | 2,038 | 1,340 |
Advisory fees related to the disposition of real properties | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total | 1,908 | 85 |
Dealer Manager and Distribution Fees [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total | $77 | ' |
Net_Income_Loss_Per_Common_Sha2
Net Income (Loss) Per Common Share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Numerator | ' | ' | ||
Income (Loss) from continuing operations | $2,131 | ($1,753) | ||
(Income) loss from continuing operations attributable to noncontrolling interests | -117 | 144 | ||
Loss from continuing operations attributable to common stockholders | 2,014 | -1,609 | ||
Dilutive noncontrolling interests share of loss from continuing operations | 149 | -127 | ||
Numerator for diluted earnings per share - adjusted loss from continuing operations | 2,163 | -1,736 | ||
Income from discontinued operations | 29,857 | [1] | -4,113 | [1] |
Income from discontinued operations attributable to noncontrolling interests | -4,433 | 355 | ||
Income from discontinued operations attributable to common stockholders | 25,424 | -3,758 | ||
Dilutive noncontrolling interests share of discontinued operations | 1,886 | -297 | ||
Numerator for diluted earnings per share - adjusted income from discontinued operations | $27,310 | ($4,055) | ||
Denominator | ' | ' | ||
Weighted average shares outstanding-basic | 176,873 | 178,792 | ||
Incremental weighted average shares effect of conversion of OP units | 13,120 | 14,135 | ||
Weighted average shares outstanding-diluted | 189,993 | 192,927 | ||
INCOME (LOSS) PER COMMON SHARE-BASIC AND DILUTED | ' | ' | ||
Net loss from continuing operations | $0.01 | ($0.01) | ||
Net income from discontinued operations | $0.14 | ($0.02) | ||
Net income (loss) | $0.15 | ($0.03) | ||
[1] | Includes approximately $1.9 million and $85,000, paid to our Advisor for advisory fees associated with the disposition of real properties during the three months ended March 31, 2014 and 2013, respectively. |
Segment_Information_Revenue_an
Segment Information (Revenue and Components of Net Operating Income) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | $57,073 | $53,371 | ||
Net operating income | 43,726 | 42,475 | ||
Office | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 34,202 | [1] | 29,950 | [1] |
Net operating income | 25,323 | [1] | 23,126 | [1] |
Industrial | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 5,814 | [1] | 6,619 | [1] |
Net operating income | 4,986 | [1] | 6,131 | [1] |
Retail | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 15,044 | [1] | 14,067 | [1] |
Net operating income | 11,404 | [1] | 10,483 | [1] |
Debt Related Investments | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 2,013 | 2,735 | ||
Net operating income | $2,013 | $2,735 | ||
[1] | Excludes results of operations of real properties categorized as discontinued operations. |
Segment_Information_Reconcilia
Segment Information (Reconciliation of Net Operating Income to Reported Net Income (Loss)) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Reconciliation of net operating income attributable to common shareholders | ' | ' | ||
Net operating income | $43,726 | $42,475 | ||
Real estate depreciation and amortization expense | -22,350 | -21,259 | ||
General and administrative expenses | -2,819 | [1] | -2,361 | [1] |
Advisory fees, related party | -3,743 | -3,684 | ||
Interest and other income (expense) | -78 | -104 | ||
Interest expense | -16,168 | -16,550 | ||
Loss on extinguishment of debt and financing commitments | -63 | -270 | ||
Gain on sale of real property | 3,626 | ' | ||
Discontinued operations, net of taxes | 29,857 | [2] | -4,113 | [2] |
Net income attributable to noncontrolling interests | -4,550 | 499 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $27,438 | ($5,367) | ||
[1] | Includes approximately $1.6 million and $1.0 million, paid to our Advisor and its affiliates for reimbursable expenses during the three months ended March 31, 2014 and 2013, respectively. | |||
[2] | Includes approximately $1.9 million and $85,000, paid to our Advisor for advisory fees associated with the disposition of real properties during the three months ended March 31, 2014 and 2013, respectively. |
Segment_Information_Schedule_o
Segment Information (Schedule of Total Assets by Business Segment) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
Segment assets: | ' | ' | ' | ' | ||
Net investments in real property | $1,879,634,000 | [1] | $1,924,642,000 | [1] | ' | ' |
Debt related investments, net | 94,180,000 | 123,935,000 | ' | ' | ||
Total segment assets, net | 1,973,814,000 | 2,048,577,000 | ' | ' | ||
Non-segment assets: | ' | ' | ' | ' | ||
Cash and cash equivalents | 81,292,000 | 24,778,000 | 36,793,000 | 36,872,000 | ||
Other non-segment assets | 103,065,000 | [2] | 85,878,000 | [2] | ' | ' |
Assets held for sale | 3,301,000 | [3] | 146,176,000 | [3] | ' | ' |
Total Assets | 2,161,472,000 | 2,305,409,000 | ' | ' | ||
Office | ' | ' | ' | ' | ||
Segment assets: | ' | ' | ' | ' | ||
Net investments in real property | 1,057,115,000 | 1,092,350,000 | ' | ' | ||
Industrial | ' | ' | ' | ' | ||
Segment assets: | ' | ' | ' | ' | ||
Net investments in real property | 227,221,000 | 229,787,000 | ' | ' | ||
Retail | ' | ' | ' | ' | ||
Segment assets: | ' | ' | ' | ' | ||
Net investments in real property | 595,298,000 | 602,505,000 | ' | ' | ||
Debt Related Investments | ' | ' | ' | ' | ||
Segment assets: | ' | ' | ' | ' | ||
Debt related investments, net | $94,180,000 | $123,935,000 | ' | ' | ||
[1] | Includes approximately $81.9 million and $82.4 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. | |||||
[2] | Other non-segment assets primarily consist of corporate assets including restricted cash and receivables, including straight-line rent receivable. | |||||
[3] | Includes approximately $0 and $143.0 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of March 31, 2014 and DecemberB 31, 2013, respectively. |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (Subsequent Event, Restricted Stock Units (RSUs) [Member]) | 0 Months Ended |
Apr. 07, 2014 | |
Subsequent Event | Restricted Stock Units (RSUs) [Member] | ' |
Subsequent Event [Line Items] | ' |
Restricted stock units granted to Advisor | 493,575 |