New York REIT, Inc.
Table of Contents
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Forward-looking Statements:
This supplemental package includes “forward looking statements”. Forward-looking statements may be identified by the use of words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the factors included in (i) the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, including those set forth under the headings “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” and (ii) in future periodic reports filed by the Company under the Securities Exchange Act of 1934, as amended. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. For a further discussion of these and other factors that could impact the Company’s future results, performance or transactions, see the section entitled “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2015, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).
New York REIT, Inc.
Company Overview
OVERVIEW
New York REIT, Inc. (NYSE: NYRT) (the “Company”) is a publicly traded real estate investment trust focused on acquiring and operating commercial real estate in New York City. The Company seeks to provide its shareholders with both stable dividend income and appreciation potential. The Company’s focused strategy enhances its effectiveness and provides investors with a pure play investment opportunity in New York City, one of the world's most dynamic real estate markets.
SNAPSHOT (December 31, 2015)
|
| | | | |
New York City Focus(1) | 100% | | Enterprise Value(3) | $3.2 billion |
Manhattan Focus(1) | 97% | | Combined Debt/Enterprise Value(4) | 40% |
Square Feet(2) | 3.4 million | | Monthly Dividend per Share | $0.038 |
| Number of Buildings | 22 | | Annualized Dividend per Share | $0.46 |
Q4 2015 Ending Occupancy(5) | 95.2% | | Dividend Yield(6) | 4.0% |
| Weighted Average Remaining Lease Term | 9.6 years | | Fully Diluted Shares and Units Outstanding | 167.9 million |
| Company Website | www.nyrt.com | | | |
______________
| |
| (1) | Based on square footage. |
| |
| (2) | Includes pro rata share of unconsolidated joint venture. |
| |
| (3) | Based on the December 31, 2015 closing price of $11.50 per share and December 31, 2015 fully diluted share count and combined debt balances. |
| |
| (4) | Based on combined debt, which includes pro rata share of unconsolidated debt, as a percentage of enterprise value. |
| |
| (5) | Inclusive of leases signed but not yet commenced. |
| |
| (6) | Based on the December 31, 2015 closing price of $11.50 per share. |
New York REIT, Inc.
Key Financial Metrics - As of and for the quarter ended December 31, 2015
(dollar amounts in thousands, except per share information)
|
| | | | | | | | |
| | Q4 2015 | | | Q4 2015 |
| OPERATING RESULTS | | | COMMON SHARE PRICE AND DIVIDENDS | |
| Revenues | $ | 44,387 |
| | At the end of the period | $ | 11.50 |
|
| NOI | $ | 36,265 |
| | High during period | 11.90 |
|
| Cash NOI | $ | 32,045 |
| | Low during period | 10.28 |
|
Adjusted Cash NOI(1) | $ | 33,381 |
| | Annualized dividend per share | 0.46 |
|
| Adjusted EBITDA | $ | 23,589 |
| | Annualized dividend yield(3) | 4.0 | % |
| | | | | |
| Monthly dividends paid per share | $ | 0.038 |
| | LEVERAGE INFORMATION | |
| | | | Combined basis(4) | |
| Core FFO | $ | 7,600 |
| | Total debt | $ | 1,301,311 |
|
| Core FFO per diluted share | $ | 0.05 |
| | Cash | (98,604 | ) |
| | | | Net debt | 1,202,707 |
|
| AFFO | $ | 13,380 |
| | Debt/enterprise value | 40 | % |
| AFFO per diluted share | $ | 0.08 |
| | Interest coverage ratio on combined debt | 2.0 X |
|
| | | | Fixed charge coverage ratio on combined debt | 2.0 X |
|
| MARKET CAPITALIZATION | | | Weighted average interest rate | 3.5 | % |
Share price(2) | $ | 11.50 |
| | Weighted average remaining debt term (years) | 4.1 |
|
| Fully diluted common shares and units outstanding | 167,929,123 |
| | Weighted average remaining debt term - including extensions (years) | 4.4 |
| Total equity market capitalization | $ | 1,931,185 |
| | | |
| Consolidated debt | $ | 873,436 |
| | LIQUIDITY | |
| Proportionate share of unconsolidated joint venture mortgage debt | $ | 427,875 |
| | Cash | $ | 98,604 |
|
| Enterprise value | $ | 3,232,496 |
| | Credit Facility availability(5) | $ | 63,008 |
|
______________
| |
| (1) | Adjusted for free rent. |
| |
| (2) | Closing price on December 31, 2015. |
| |
| (3) | Based on the December 31, 2015 closing price of $11.50 per share. |
| |
| (4) | Combined metrics include pro rata share of unconsolidated joint venture debt. |
| |
| (5) | Availability of borrowings is based on a pool of eligible unencumbered real estate assets. Total maximum undrawn commitments as of December 31, 2015 was $220.0 million. |
NOTE: A reconciliation of Net Income (Loss) to FFO, Core FFO, AFFO, Adjusted EBITDA, NOI, Cash NOI and Adjusted Cash NOI, which are non-GAAP measures, appears on pages 6 and 7 of this supplemental information package.
New York REIT, Inc.
Consolidated Balance Sheets
(in thousands)
|
| | | | | | | | | | | | | | | | | | | |
| | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
| ASSETS | | | | | | | | | |
| Real estate investments, at cost | | | | | | | | | |
| Land | $ | 477,171 |
| | $ | 487,808 |
| | $ | 494,065 |
| | $ | 494,065 |
| | $ | 494,065 |
|
| Buildings, fixtures and improvements | 1,208,138 |
| | 1,231,204 |
| | 1,247,070 |
| | 1,243,412 |
| | 1,235,918 |
|
| Acquired intangible assets | 137,594 |
| | 156,609 |
| | 156,657 |
| | 158,383 |
| | 158,383 |
|
| Total real estate investments, at cost | 1,822,903 |
| | 1,875,621 |
| | 1,897,792 |
| | 1,895,860 |
| | 1,888,366 |
|
| Less: accumulated depreciation and amortization | (172,668 | ) | | (183,775 | ) | | (166,680 | ) | | (146,445 | ) | | (124,178 | ) |
| Total real estate investments, net | 1,650,235 |
| | 1,691,846 |
| | 1,731,112 |
| | 1,749,415 |
| | 1,764,188 |
|
| Cash and cash equivalents | 98,604 |
| | 20,423 |
| | 27,486 |
| | 49,360 |
| | 22,512 |
|
Funds Held in Escrow(1) | — |
| | 48,768 |
| | — |
| | — |
| | — |
|
| Investment in unconsolidated joint venture | 215,370 |
| | 223,229 |
| | 226,306 |
| | 225,736 |
| | 225,501 |
|
| Preferred equity investment | — |
| | — |
| | — |
| | — |
| | 35,100 |
|
| Real estate assets held for sale | 29,268 |
| | 27,482 |
| | — |
| | — |
| | — |
|
| Other assets | 78,278 |
| | 84,271 |
| | 76,745 |
| | 68,312 |
| | 73,534 |
|
| Total assets | $ | 2,071,755 |
| | $ | 2,096,019 |
| | $ | 2,061,649 |
| | $ | 2,092,823 |
| | $ | 2,120,835 |
|
| LIABILITIES AND EQUITY | | | | | | | | | |
| Mortgage notes payable | $ | 388,436 |
| | $ | 388,537 |
| | $ | 171,998 |
| | $ | 172,121 |
| | $ | 172,242 |
|
| Credit facility | 485,000 |
| | 485,000 |
| | 635,000 |
| | 635,000 |
| | 635,000 |
|
| Market lease intangibles, net | 73,083 |
| | 75,385 |
| | 77,921 |
| | 80,456 |
| | 84,220 |
|
Other liabilities(2) | 31,701 |
| | 32,633 |
| | 33,689 |
| | 35,834 |
| | 32,420 |
|
| Derivatives, at fair value | 1,266 |
| | 2,320 |
| | 1,751 |
| | 2,175 |
| | 1,276 |
|
| Total liabilities | 979,486 |
| | 983,875 |
| | 920,359 |
| | 925,586 |
| | 925,158 |
|
| | | | | | | | | | |
| Common stock | 1,626 |
| | 1,626 |
| | 1,626 |
| | 1,625 |
| | 1,622 |
|
| Additional paid-in capital | 1,403,624 |
| | 1,402,990 |
| | 1,402,791 |
| | 1,401,635 |
| | 1,401,619 |
|
| Accumulated other comprehensive loss | (1,237 | ) | | (2,301 | ) | | (1,570 | ) | | (1,805 | ) | | (816 | ) |
Accumulated deficit(2) | (369,273 | ) | | (341,110 | ) | | (309,669 | ) | | (282,323 | ) | | (255,478 | ) |
| Total stockholders' equity | 1,034,740 |
| | 1,061,205 |
| | 1,093,178 |
| | 1,119,132 |
| | 1,146,947 |
|
| Non-controlling interests | 57,529 |
| | 50,939 |
| | 48,112 |
| | 48,105 |
| | 48,730 |
|
| Total equity | 1,092,269 |
| | 1,112,144 |
| | 1,141,290 |
| | 1,167,237 |
| | 1,195,677 |
|
| Total liabilities and equity | $ | 2,071,755 |
| | $ | 2,096,019 |
| | $ | 2,061,649 |
| | $ | 2,092,823 |
| | $ | 2,120,835 |
|
_____________________
| |
| (1) | Funds held in escrow were received on October 1, 2015, related to amounts due as a result of financing transactions which closed on September 30, 2015. |
| |
| (2) | Certain prior quarter amounts have been revised to correct immaterial errors identified in Q4 2015. |
New York REIT, Inc.
Consolidated Statements of Operations
(in thousands, except for share and per share information)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
| Revenues | | | | | | | | | |
| | Rental income | $ | 31,000 |
| | $ | 32,510 |
| | $ | 32,130 |
| | $ | 33,478 |
| | $ | 33,700 |
|
| | Hotel revenue | 7,499 |
| | 7,054 |
| | 7,363 |
| | 4,209 |
| | 7,244 |
|
| | Operating expense reimbursements and other revenue | 5,888 |
| | 5,044 |
| | 4,184 |
| | 4,162 |
| | 4,568 |
|
| | Total revenues | 44,387 |
| | 44,608 |
| | 43,677 |
| | 41,849 |
| | 45,512 |
|
| Operating expenses | | | | | | | | | |
| | Property operating | 11,488 |
| | 11,197 |
| | 10,098 |
| | 10,969 |
| | 10,750 |
|
| | Hotel operating | 6,676 |
| | 6,525 |
| | 6,495 |
| | 5,670 |
| | 6,554 |
|
| | Operating fees incurred from the Advisor | 3,099 |
| | 3,121 |
| | 3,101 |
| | 3,144 |
| | 3,143 |
|
| | Acquisition and transaction related | 700 |
| | 2,850 |
| | 96 |
| | 125 |
| | 1 |
|
| | Change in value of listing promote(1) | — |
| | — |
| | — |
| | — |
| | 20,079 |
|
| | General and administrative | 2,946 |
| | 2,438 |
| | 3,014 |
| | 3,702 |
| | 1,676 |
|
| | Equity-based compensation(2) | 8,727 |
| | 4,081 |
| | 2,189 |
| | 248 |
| | 3,203 |
|
| | Depreciation and amortization | 18,398 |
| | 20,484 |
| | 22,154 |
| | 21,680 |
| | 21,907 |
|
| | Total operating expenses | 52,034 |
| | 50,696 |
| | 47,147 |
| | 45,538 |
| | 67,313 |
|
| Operating loss | (7,647 | ) | | (6,088 | ) | | (3,470 | ) | | (3,689 | ) | | (21,801 | ) |
| Other income (expense) | | | | | | | | | |
| | Interest expense(3) | (9,271 | ) | | (7,495 | ) | | (6,347 | ) | | (6,249 | ) | | (6,561 | ) |
| | Income (loss) from unconsolidated joint venture | 661 |
| | 473 |
| | 570 |
| | 235 |
| | (378 | ) |
| | Income from preferred equity investment, investment securities and interest | 24 |
| | 141 |
| | 8 |
| | 930 |
| | 836 |
|
| | Gain on sale of real estate investment, net | 7,523 |
| | — |
| | — |
| | — |
| | — |
|
| | Loss on derivative instruments | (34 | ) | | (540 | ) | | — |
| | (4 | ) | | — |
|
| | Total other expense(3) | (1,097 | ) | | (7,421 | ) | | (5,769 | ) | | (5,088 | ) | | (6,103 | ) |
Net loss(3) | (8,744 | ) | | (13,509 | ) | | (9,239 | ) | | (8,777 | ) | | (27,904 | ) |
| | Net loss attributable to non-controlling interests(4) | 236 |
| | 434 |
| | 257 |
| | 261 |
| | 574 |
|
| | Net loss attributable to stockholders(3) | $ | (8,508 | ) | | $ | (13,075 | ) | | $ | (8,982 | ) | | $ | (8,516 | ) | | $ | (27,330 | ) |
| | Basic weighted average shares(3) | 162,208,672 |
| | 162,203,065 |
| | 162,156,470 |
| | 162,092,424 |
| | 162,019,399 |
|
| | Adjustments to fully diluted shares(3)(5)(6) | 5,720,451 |
| | 5,712,992 |
| | 5,745,381 |
| | 5,253,186 |
| | 3,721,376 |
|
| | Fully diluted weighted average shares(3) | 167,929,123 |
| | 167,916,057 |
| | 167,901,851 |
| | 167,345,610 |
| | 165,740,775 |
|
| | | | | | | | | | | |
| | Net loss per basic and diluted share attributable to stockholders(3)(6) | $ | (0.05 | ) | | $ | (0.08 | ) | | $ | (0.06 | ) | | $ | (0.05 | ) | | $ | (0.17 | ) |
______________
| |
| (1) | The final value of the listing promote was determined in the fourth quarter of 2014. This non-cash expense was settled in OP units. |
| |
| (2) | Amounts represent the portion of non-cash expense related to the outperformance plan which vests over five years and other non-cash equity-based compensation. |
| |
| (3) | Certain prior quarter amounts have been revised to correct immaterial errors identified in Q4 2015. |
| |
| (4) | Includes amounts allocated to minority interest holders of 163 Washington Street (which was sold on October 21, 2015), OP unitholders and participating LTIP unitholders. |
| |
| (5) | Includes LTIP units at their participation rate beginning in Q4 2014. |
| |
| (6) | Adjustments to fully diluted shares are excluded from the calculation of diluted loss per share attributable to stockholders if their effect would have been antidilutive. |
New York REIT, Inc.
Unconsolidated Joint Venture — Summary Balance Sheets and Income Statements
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
| Unconsolidated Joint Venture Condensed Balance Sheet | | | | | | | | | | |
| Real estate assets, at cost | | $ | 714,642 |
| | $ | 714,875 |
| | $ | 713,339 |
| | $ | 704,257 |
| | $ | 704,143 |
|
| Less accumulated depreciation and amortization | | (117,092 | ) | | (112,046 | ) | | (107,075 | ) | | (102,127 | ) | | (97,181 | ) |
| Total real estate assets, net | | 597,550 |
| | 602,829 |
| | 606,264 |
| | 602,130 |
| | 606,962 |
|
| Cash and cash equivalents | | 9,036 |
| | 11,951 |
| | 11,918 |
| | 7,901 |
| | 3,784 |
|
| Other assets | | 259,894 |
| | 258,529 |
| | 257,087 |
| | 253,797 |
| | 252,000 |
|
| Total assets | | $ | 866,480 |
| | $ | 873,309 |
| | $ | 875,269 |
| | $ | 863,828 |
| | $ | 862,746 |
|
| | | | | | | | | | | |
| Debt | | $ | 875,000 |
| | $ | 875,000 |
| | $ | 875,000 |
| | $ | 875,000 |
| | $ | 875,000 |
|
| Other liabilities | | 15,515 |
| | 17,240 |
| | 18,807 |
| | 10,765 |
| | 12,442 |
|
| Total liabilities | | 890,515 |
| | 892,240 |
| | 893,807 |
| | 885,765 |
| | 887,442 |
|
| Deficit | | (24,035 | ) | | (18,931 | ) | | (18,538 | ) | | (21,937 | ) | | (24,696 | ) |
| Total liabilities and deficit | | $ | 866,480 |
| | $ | 873,309 |
| | $ | 875,269 |
| | $ | 863,828 |
| | $ | 862,746 |
|
| | | | | | | | | | | |
| Company's basis | | $ | 215,370 |
| | $ | 223,229 |
| | $ | 226,306 |
| | $ | 225,736 |
| | $ | 225,501 |
|
| | | | | | | | | | | |
| Unconsolidated Joint Venture Condensed Statement of Operations | | | | | | | | | | |
| Revenue: | | | | | | | | | | |
| Rental income | | $ | 31,326 |
| | $ | 30,771 |
| | $ | 30,751 |
| | $ | 30,514 |
| | $ | 29,237 |
|
| Other revenue | | 1,246 |
| | 1,245 |
| | 1,232 |
| | 1,217 |
| | 1,246 |
|
| Total revenue | | 32,572 |
| | 32,016 |
| | 31,983 |
| | 31,731 |
| | 30,483 |
|
| Operating expenses: | | | | | | | | | | |
| Operating expense | | 12,036 |
| | 11,812 |
| | 11,727 |
| | 12,241 |
| | 12,212 |
|
| Depreciation and amortization | | 7,018 |
| | 6,945 |
| | 6,864 |
| | 6,850 |
| | 7,946 |
|
| Total operating expenses | | 19,054 |
| | 18,757 |
| | 18,591 |
| | 19,091 |
| | 20,158 |
|
| Operating income | | 13,518 |
| | 13,259 |
| | 13,392 |
| | 12,640 |
| | 10,325 |
|
| Interest expense | | (10,101 | ) | | (10,102 | ) | | (9,992 | ) | | (9,882 | ) | | (10,101 | ) |
| Net income | | 3,417 |
| | 3,157 |
| | 3,400 |
| | 2,758 |
| | 224 |
|
| Preferred return | | (4,055 | ) | | (3,936 | ) | | (3,894 | ) | | (3,851 | ) | | (3,936 | ) |
| Net loss to members | | $ | (638 | ) | | $ | (779 | ) | | $ | (494 | ) | | $ | (1,093 | ) | | $ | (3,712 | ) |
| | | | | | | | | | | |
| Company's preferred return | | $ | 4,055 |
| | $ | 3,936 |
| | $ | 3,894 |
| | $ | 3,851 |
| | $ | 3,936 |
|
| Company's share of net loss | | (313 | ) | | (381 | ) | | (242 | ) | | (534 | ) | | (1,816 | ) |
| Amortization of difference in basis | | (3,081 | ) | | (3,082 | ) | | (3,082 | ) | | (3,082 | ) | | (2,498 | ) |
| Company's income (loss) from Worldwide Plaza | | $ | 661 |
| | $ | 473 |
| | $ | 570 |
| | $ | 235 |
| | $ | (378 | ) |
| | | | | | | | | | | |
| Supplemental information: | | | | | | | | | | |
| Straight-line rent included in rental income above | | $ | 1,809 |
| | $ | 2,021 |
| | $ | 1,581 |
| | $ | 1,460 |
| | $ | 1,628 |
|
New York REIT, Inc.
Reconciliation of Net Loss to FFO and AFFO
(in thousands, except share and per share information)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
Net loss(1) | | $ | (8,744 | ) | | $ | (13,509 | ) | | $ | (9,239 | ) | | $ | (8,777 | ) | | $ | (27,904 | ) |
| Gain on sale of real estate investment, net | | (7,523 | ) | | — |
| | — |
| | — |
| | — |
|
Depreciation and amortization, net of adjustments related to joint venture(2) | | 18,398 |
| | 20,477 |
| | 22,140 |
| | 21,671 |
| | 21,899 |
|
Depreciation and amortization related to unconsolidated joint venture(3) | | 6,512 |
| | 6,478 |
| | 6,443 |
| | 6,431 |
| | 6,384 |
|
| Funds from operations (FFO) | | 8,643 |
| | 13,446 |
| | 19,344 |
| | 19,325 |
| | 379 |
|
Acquisition and transaction related expenses(4) | | 700 |
| | 2,850 |
| | 96 |
| | 125 |
| | 1 |
|
| Change in value of listing promote | | — |
| | — |
| | — |
| | — |
| | 20,079 |
|
| Gain on sale of investment securities | | (7 | ) | | (54 | ) | | — |
| | (48 | ) | | — |
|
| Non-core revenue and other income | | (1,795 | ) | | — |
| | — |
| | (158 | ) | | (702 | ) |
Non-core general and administrative expense(5) | | — |
| | — |
| | 1,500 |
| | 500 |
| | — |
|
Non-core write-off of below market lease(2) | | — |
| | — |
| | — |
| | (947 | ) | | — |
|
| Non-core straight-line rent bad debt expense | | 19 |
| | — |
| | 8 |
| | 529 |
| | — |
|
Non-core deferred financing cost expense(6) | | 40 |
| | 1,060 |
| | — |
| | — |
| | 492 |
|
| Non-core derivative losses | | — |
| | 423 |
| | — |
| | — |
| | — |
|
| Non-core non-cash compensation expense | | — |
| | — |
| | — |
| | — |
| | 1,160 |
|
| Core FFO | | 7,600 |
| | 17,725 |
| | 20,948 |
| | 19,326 |
| | 21,409 |
|
Non-cash compensation expense(7) | | 8,727 |
| | 4,081 |
| | 2,189 |
| | 248 |
| | 2,042 |
|
| Non-cash portion of interest expense | | 2,457 |
| | 1,179 |
| | 1,162 |
| | 1,138 |
| | 1,159 |
|
| Seller free rent credit | | — |
| | 197 |
| | 872 |
| | 3,679 |
| | 3,679 |
|
| Amortization of market lease intangibles | | (1,610 | ) | | (1,843 | ) | | (1,842 | ) | | (2,124 | ) | | (2,724 | ) |
| Mark-to-market adjustments | | 34 |
| | 117 |
| | — |
| | 4 |
| | — |
|
| Straight-line rent | | (2,431 | ) | | (2,525 | ) | | (2,856 | ) | | (5,870 | ) | | (7,616 | ) |
| Straight-line ground rent | | 686 |
| | 719 |
| | 787 |
| | 987 |
| | 1,087 |
|
| Tenant improvements - second generation | | (43 | ) | | — |
| | — |
| | — |
| | (102 | ) |
| Leasing commissions - second generation | | (194 | ) | | (12 | ) | | (3 | ) | | (3 | ) | | (110 | ) |
| Building improvements - second generation | | (962 | ) | | (201 | ) | | (51 | ) | | (9 | ) | | — |
|
| Proportionate share of straight-line rent related to unconsolidated joint venture | | (884 | ) | | (988 | ) | | (773 | ) | | (714 | ) | | (796 | ) |
| Adjusted funds from operations (AFFO) | | $ | 13,380 |
| | $ | 18,449 |
| | $ | 20,433 |
| | $ | 16,662 |
| | $ | 18,028 |
|
| | | | | | | | | | | |
Fully diluted shares(1) | | 167,929,123 |
| | 167,916,057 |
| | 167,901,851 |
| | 167,345,610 |
| | 165,740,775 |
|
FFO per diluted share(1) | | $ | 0.05 |
| | $ | 0.08 |
| | $ | 0.12 |
| | $ | 0.12 |
| | $ | — |
|
Core FFO per diluted share(1) | | $ | 0.05 |
| | $ | 0.11 |
| | $ | 0.12 |
| | $ | 0.12 |
| | $ | 0.13 |
|
AFFO per diluted share(1) | | $ | 0.08 |
| | $ | 0.11 |
| | $ | 0.12 |
| | $ | 0.10 |
| | $ | 0.11 |
|
______________________
| |
| (1) | Certain prior quarter amounts have been revised to correct immaterial errors identified in Q4 2015. |
| |
| (2) | During the fourth quarter of 2015, we reclassified the write-off of a terminated below-market lease from depreciation and amortization expense to revenue, which impacted the first quarter of 2015. Depreciation and amortization for the quarter ended March 31, 2015 has been revised to reflect this reclassification. The impact of the below-market lease write-off was deeemed to be non-core to our business and is now being included in the reconciliation to Core FFO. |
| |
| (3) | Proportionate share of depreciation and amortization related to unconsolidated joint venture and amortization of difference in basis. |
| |
| (4) | Acquisition and transaction-related expenses in the third quarter 2015 primarily represent costs associated with third quarter 2015 mortgage payoffs and Credit Facility amendment. |
| |
| (5) | Estimated portion of audit fee that is non-core. |
| |
| (6) | Represents deferred financing costs that were written off as a result of paying off mortgages in advance of their scheduled maturity dates as well as amendments to the Credit Facility. |
| |
| (7) | During the second quarter of 2015, the Company excluded equity-based compensation from its calculation of Core FFO for the first time. During the third quarter of 2015, the Company reverted to its previous practice of excluding the impact of non-cash compensation expense from the reconciliation to Core FFO to the reconciliation to AFFO. |
We have calculated our FFO, Core FFO and AFFO based on our Net Loss, which is before adjusting for the Net Loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture.
New York REIT, Inc.
Reconciliation of Net Loss to Adjusted EBITDA, NOI and Cash NOI
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
| Combined: | | | | | | | | | | |
Net loss(1) | | $ | (8,744 | ) | | $ | (13,509 | ) | | $ | (9,239 | ) | | $ | (8,777 | ) | | $ | (27,904 | ) |
| Gain on sale of real estate investment, net | | (7,523 | ) | | — |
| | — |
| — |
| — |
| | — |
|
Acquisition and transaction related expenses(2) | | 700 |
| | 2,850 |
| | 96 |
| | 125 |
| | 1 |
|
| Depreciation and amortization | | 18,398 |
| | 20,484 |
| | 22,154 |
| | 21,680 |
| | 21,907 |
|
Interest expense(1) | | 9,271 |
| | 7,495 |
| | 6,347 |
| | 6,249 |
| | 6,561 |
|
| Loss on derivative instruments | | 34 |
| | 540 |
| | — |
| | 4 |
| | — |
|
| Change in value of listing promote | | — |
| | — |
| | — |
| | — |
| | 20,079 |
|
Adjustments related to unconsolidated joint venture(3) | | 11,453 |
| | 11,418 |
| | 11,324 |
| | 11,264 |
| | 11,323 |
|
| Adjusted EBITDA | | 23,589 |
| | 29,278 |
| | 30,682 |
| | 30,545 |
| | 31,967 |
|
| General and administrative | | 2,946 |
| | 2,438 |
| | 3,014 |
| | 3,702 |
| | 1,676 |
|
| Equity-based compensation | | 8,727 |
| | 4,081 |
| | 2,189 |
| | 248 |
| | 3,203 |
|
| Asset management fee to the Advisor | | 3,099 |
| | 3,121 |
| | 3,101 |
| | 3,144 |
| | 3,143 |
|
| Income from preferred equity investment, investment securities and interest | | (24 | ) | | (141 | ) | | (8 | ) | | (930 | ) | | (836 | ) |
| Preferred return on unconsolidated joint venture | | (4,055 | ) | | (3,936 | ) | | (3,894 | ) | | (3,851 | ) | | (3,936 | ) |
| Proportionate share of other adjustments related to unconsolidated joint venture | | 1,983 |
| | 1,924 |
| | 1,905 |
| | 1,883 |
| | 1,925 |
|
| NOI | | 36,265 |
| | 36,765 |
| | 36,989 |
| | 34,741 |
| | 37,142 |
|
| Amortization of above/below market lease assets and liabilities | | (1,610 | ) | | (1,843 | ) | | (1,842 | ) | | (3,071 | ) | | (2,724 | ) |
| Straight-line rent | | (2,412 | ) | | (2,525 | ) | | (2,848 | ) | | (5,341 | ) | | (7,616 | ) |
| Straight-line ground rent | | 686 |
| | 719 |
| | 787 |
| | 987 |
| | 1,087 |
|
| Proportionate share of straight-line rent related to unconsolidated joint venture | | (884 | ) | | (988 | ) | | (773 | ) | | (714 | ) | | (796 | ) |
| Cash NOI | | $ | 32,045 |
| | $ | 32,128 |
| | $ | 32,313 |
| | $ | 26,602 |
| | $ | 27,093 |
|
______________
| |
| (1) | Certain prior quarter amounts have been revised to correct immaterial errors identified in Q4 2015. |
| |
| (2) | Acquisition and transaction-related expenses in the third quarter 2015 primarily represent costs associated with third quarter 2015 mortgage payoffs and Credit Facility amendment. |
| |
| (3) | Proportionate share of adjustments related to unconsolidated joint venture and amortization of difference in basis. |
Consolidated adjusted EBITDA for the fourth quarter 2015 was $11,475, reflecting net loss of $8,744 increased by depreciation and amortization of $18,398, interest expense of $9,271, acquisition and transaction related costs of $700 and loss on derivative instruments of $34. Consolidated adjusted EBITDA was decreased by the gain on sale of real estate investment, net of $7,523 and the Company's share of income in its joint venture of $661.
We have calculated our Adjusted EBITDA, NOI, Cash NOI and Adjusted Cash NOI based on our Net Loss, which is before adjusting for the Net Loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture.
New York REIT, Inc.
Supplemental Cash NOI Information
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
| Supplemental information: | | | | | | | | | | |
Cash NOI - Office(1) | | $ | 27,893 |
| | $ | 27,837 |
| | $ | 27,578 |
| | $ | 24,074 |
| | $ | 22,206 |
|
| Cash NOI - Stand-alone retail | | 2,627 |
| | 2,700 |
| | 2,727 |
| | 2,660 |
| | 2,785 |
|
| Cash NOI - Hotel | | 1,397 |
| | 1,135 |
| | 1,543 |
| | (586 | ) | | 1,665 |
|
Cash NOI - Other(2) | | 128 |
| | 456 |
| | 465 |
| | 454 |
| | 437 |
|
| Cash NOI | | $ | 32,045 |
| | $ | 32,128 |
| | $ | 32,313 |
| | $ | 26,602 |
| | $ | 27,093 |
|
| Cash NOI - Excluding Hotel | | $ | 30,648 |
| | $ | 30,993 |
| | $ | 30,770 |
| | $ | 27,188 |
| | $ | 25,428 |
|
| Free rent | | 1,336 |
| | 1,808 |
| | 1,880 |
| | 4,498 |
| | 6,269 |
|
| Adjusted Cash NOI | | $ | 33,381 |
| | $ | 33,936 |
| | $ | 34,193 |
| | $ | 31,100 |
| | $ | 33,362 |
|
| Adjusted Cash NOI - Excluding Hotel | | $ | 31,984 |
| | $ | 32,801 |
| | $ | 32,650 |
| | $ | 31,686 |
| | $ | 31,697 |
|
| | | | | | | | | | | |
Annualized Cash NOI(3) | | $ | 128,180 |
| | $ | 128,512 |
| | $ | 129,252 |
| | $ | 106,408 |
| | $ | 108,372 |
|
Annualized Cash NOI - Excluding Hotel(3) | | $ | 122,592 |
| | $ | 123,972 |
| | $ | 123,080 |
| | $ | 108,752 |
| | $ | 101,712 |
|
| | | | | | | | | | | |
Annualized Adjusted Cash NOI(3) | | $ | 133,524 |
| | $ | 135,744 |
| | $ | 136,772 |
| | $ | 124,400 |
| | $ | 133,448 |
|
Annualized Adjusted Cash NOI - Excluding Hotel(3) | | $ | 127,936 |
| | $ | 131,204 |
| | $ | 130,600 |
| | $ | 126,744 |
| | $ | 126,788 |
|
______________
| |
| (1) | Includes retail suites associated with office properties and the Company's pro rata share of its unconsolidated joint venture. |
| |
| (2) | Includes 163 Washington Street multi-family residential property, which was sold in October 2015, and parking garages. |
| |
| (3) | Annualized metrics calculated by multiplying current quarter amounts by four. |
We have calculated our Adjusted EBITDA, NOI, Cash NOI and Adjusted Cash NOI based on our Net Loss, which is before adjusting for the Net Loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture.
New York REIT, Inc.
Same Store Statistics — Sequential Quarters(1)
(dollar amounts in thousands)
|
| | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Change | | % change |
| Total portfolio square footage / total buildings | | 3,374,238(2) / 22 |
| | 3,414,710(2) / 23 |
| | | | |
| Same store square footage / same store buildings | | 3,245,626(2) / 22 |
| | 3,244,485(2) / 22 |
| | | | |
Same store occupancy at quarter end(3) | | 95.2 | % | | 97.3 | % | | | | |
| | | | | | | | | |
| Total GAAP operating revenue | | $ | 52,710 |
| | $ | 52,722 |
| | $ | (12 | ) | | — | % |
| Less: Straight line rent adjustment | | (3,314 | ) | | (3,512 | ) | | | | |
| Less: Above/below market lease amortization | | (1,498 | ) | | (1,731 | ) | | | | |
| Total cash operating revenue | | $ | 47,898 |
| | $ | 47,479 |
| | $ | 419 |
| | 0.9 | % |
| | | | | | | | | |
| Total operating expenses | | $ | 17,285 |
| | $ | 16,846 |
| | $ | 439 |
| | 2.6 | % |
| | | | | | | | | |
| Same store NOI | | $ | 35,425 |
| | $ | 35,876 |
| | $ | (451 | ) | | (1.3 | )% |
| Same store Cash NOI | | $ | 30,613 |
| | $ | 30,633 |
| | $ | (20 | ) | | (0.1 | )% |
| | | | | | | | | |
| Same store Cash NOI — Including Hotel | | $ | 32,010 |
| | $ | 31,768 |
| | $ | 242 |
| | 0.8 | % |
_______________
| |
| (1) | Same store portfolio excludes the Viceroy Hotel unless otherwise noted and consists of only those properties owned and operated for the entire current and prior periods presented. |
| |
| (2) | Square footage may change due to reconfiguration of tenants' occupied space. |
| |
| (3) | Inclusive of leases signed but not yet commenced. |
Note: Amounts above include our pro rata share of investment in our unconsolidated joint venture.
Note: We have calculated our Adjusted EBITDA, NOI, Cash NOI and Adjusted Cash NOI based on our Net Loss, which is before adjusting for the Net Loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture. A reconciliation of Net Loss to NOI and Cash NOI, non-GAAP measures, appears on page 7 of this supplemental information package.
New York REIT, Inc.
Same Store Statistics — Year Over Year(1)
(dollar amounts in thousands)
|
| | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q4 2014 | | Change | | % change |
| Total portfolio square footage / total buildings | | 3,374,238(2) / 22 |
| | 3,423,080(2) / 24 |
| | | | |
| Same store square footage / same store buildings | | 3,245,626(2) / 22 |
| | 3,245,324(2) / 22 |
| | | | |
Same store occupancy at quarter end(3) | | 95.2 | % | | 94.5 | % | | | | |
| | | | | | | | | |
| Total GAAP operating revenue | | $ | 52,710 |
| | $ | 52,654 |
| | $ | 56 |
| | 0.1 | % |
| Less: Straight line rent adjustment | | (3,314 | ) | | (8,411 | ) | | | | |
| Less: Above/below market lease amortization | | (1,498 | ) | | (2,610 | ) | | | | |
| Total cash operating revenue | | $ | 47,898 |
| | $ | 41,633 |
| | $ | 6,265 |
| | 15.0 | % |
| | | | | | | | | |
| Total operating expenses | | $ | 17,285 |
| | $ | 16,553 |
| | $ | 732 |
| | 4.4 | % |
| | | | | | | | | |
| Same store NOI | | $ | 35,425 |
| | $ | 36,101 |
| | $ | (676 | ) | | (1.9 | )% |
| Same store cash NOI | | $ | 30,613 |
| | $ | 25,080 |
| | $ | 5,533 |
| | 22.1 | % |
| | | | | | | | | |
| Same store Cash NOI — Including Hotel | | $ | 32,010 |
| | $ | 26,745 |
| | $ | 5,265 |
| | 19.7 | % |
_______________
| |
| (1) | Same store portfolio excludes the Viceroy Hotel unless otherwise noted and consists of only those properties owned and operated for the entire current and prior periods presented. |
| |
| (2) | Square footage may change due to reconfiguration of tenants' occupied space. |
| |
| (3) | Inclusive of leases signed but not yet commenced. |
Note: Amounts above include our pro rata share of investment in our unconsolidated joint venture.
Note: We have calculated our Adjusted EBITDA, NOI, Cash NOI and Adjusted Cash NOI based on our Net Loss, which is before adjusting for the Net Loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture. A reconciliation of Net Loss to NOI and Cash NOI, non-GAAP measures, appears on page 7 of this supplemental information package.
New York REIT, Inc.
Dividends and Payout Ratios
(dollar amounts in thousands, except per share information)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
| Dividends paid in cash | | $ | 18,652 |
| | $ | 18,653 |
| | $ | 18,645 |
| | $ | 18,634 |
| | $ | 18,629 |
|
| LTIP distributions paid | | 140 |
| | 140 |
| | 280 |
| | 102 |
| | 102 |
|
| OP distributions paid | | 481 |
| | 481 |
| | 488 |
| | 491 |
| | 265 |
|
| Restricted stock dividends paid | | 39 |
| | 58 |
| | 6 |
| | 20 |
| | 35 |
|
| Total dividends and distributions paid | | $ | 19,312 |
| | $ | 19,332 |
| | $ | 19,419 |
| | $ | 19,247 |
| | $ | 19,031 |
|
| | | | | | | | | | | |
Weighted average fully diluted shares(1) | | 167,929,123 |
| | 167,916,057 |
| | 167,901,851 |
| | 167,345,610 |
| | 165,740,775 |
|
| | | | | | | | | | | |
Dividends per fully diluted share(1) | | $ | 0.1150 |
| | $ | 0.1151 |
| | $ | 0.1157 |
| | $ | 0.1150 |
| | $ | 0.1148 |
|
| | | | | | | | | | | |
Core FFO per fully diluted share(1) | | $ | 0.05 |
| | $ | 0.11 |
| | $ | 0.12 |
| | $ | 0.12 |
| | $ | 0.13 |
|
AFFO per fully diluted share(1) | | $ | 0.08 |
| | $ | 0.11 |
| | $ | 0.12 |
| | $ | 0.10 |
| | $ | 0.11 |
|
| | | | | | | | | | | |
| Payout ratios | | | | | | | | | | |
| Quarterly dividend per share | | $ | 0.115 |
| | $ | 0.115 |
| | $ | 0.115 |
| | $ | 0.115 |
| | $ | 0.115 |
|
Core FFO payout ratio(1) | | 254 | % | | 109 | % | | 93 | % | | 100 | % | | 89 | % |
AFFO payout ratio(1) | | 144 | % | | 105 | % | | 95 | % | | 116 | % | | 106 | % |
______________
| |
| (1) | Certain prior quarter amounts have been revised to correct immaterial errors identified in Q4 2015. |
New York REIT, Inc.
Debt Analysis
(dollar amounts in thousands)
|
| | | | | | | | | | | | |
| | | Q4 2015 | | Weighted Average Remaining Term (in Years)(1) | | Weighted Average Rate | | % of Total Debt |
| Consolidated mortgage debt | | $ | 388,436 |
| | 3.5 | | 3.8 | % | | 29.9 | % |
| Consolidated credit facility term debt - fixed rate | | 80,000 |
| | 2.6 | | 3.6 | % | | 6.1 | % |
| Consolidated credit facility term debt - floating rate | | 225,000 |
| | 2.6 | | 2.1 | % | | 17.3 | % |
| Consolidated credit facility revolving debt - floating rate | | 180,000 |
| | 0.6 | | 2.2 | % | | 13.8 | % |
| Total consolidated debt | | 873,436 |
| | 2.6 | | 3.0 | % | | 67.1 | % |
| | | | | | | | | |
| Company's share of unconsolidated joint venture mortgage debt | | 427,875 |
| | 7.2 | | 4.6 | % | | 32.9 | % |
| Combined debt | | $ | 1,301,311 |
| | 4.1 | | 3.5 | % | | 100.0 | % |
| | | | | | | | | |
| Fixed rate debt (including pro rata share of unconsolidated debt) | | $ | 591,311 |
| | | | | | |
| Floating rate debt | | $ | 710,000 |
| | | | | | |
| | | | | | | | | |
| % fixed rate debt (including pro rata share of unconsolidated debt) | | 45 | % | | | | | | |
| % floating rate debt | | 55 | % | | | | | | |
| | | | | | | | | |
| Average fixed rate (including pro rata share of unconsolidated debt) | | 4.3 | % | | | | | | |
| Average floating rate | | 2.9 | % | | | | | | |
___________________________
| |
| (1) | Excludes extension options. The weighted-average remaining term of combined debt, including extension options, is 4.4 years. |
New York REIT, Inc.
Mortgage Debt Summary
(dollar amounts in thousands)
|
| | | | | | | | |
| As of December 31, 2015 | | Debt amount | | Maturity | | Effective interest rate |
| Consolidated mortgages: | | | | | | |
| 256 West 38th Street | | $ | 24,500 |
| | 12/26/2017 | | 3.1% |
| Design Center | | 19,798 |
| | 12/1/2021 | | 4.4% |
| 1100 Kings Highway | | 20,200 |
| | 8/1/2017 | | 3.4% |
Duane Reade(1) | | 8,400 |
| | 11/1/2016 | | 3.6% |
1623 Kings Highway(1) | | 7,288 |
| | 11/1/2017 | | 3.3% |
| Foot Locker | | 3,250 |
| | 6/6/2016 | | 4.6% |
| 1440 Broadway | | 305,000 |
| | 10/5/2019 | | 3.9% |
| Consolidated mortgage debt | | 388,436 |
| | | | 3.8% |
| | | | | | | |
| Pro rata share of unconsolidated joint venture mortgage debt: | | | | | | |
| One Worldwide Plaza | | 427,875 |
| | 3/6/2023 | | 4.6% |
| | | | | | | |
| Combined mortgage debt | | $ | 816,311 |
| | | | 4.2% |
___________________________
| |
| (1) | Property sold and mortgage repaid in February 2016. |
Note: All but two of our properties not otherwise subject to mortgage loans collateralize the borrowing base of our Credit Facility and have mortgages recorded for that purpose.
New York REIT, Inc.
Leverage Metrics
(dollar amounts in thousands)
|
| | | | | | | |
| | Q4 2015 |
| | Consolidated Basis | | Combined Basis |
| Interest coverage ratio | | | |
Interest expense(1) | $ | 9,271 |
| | $ | 9,271 |
|
| Non-cash interest expense | (2,457 | ) | | (2,457 | ) |
| Non-core deferred financing cost expense | (40 | ) | | (40 | ) |
| Interest expense related to unconsolidated joint venture | — |
| | 4,940 |
|
| Total interest | $ | 6,774 |
| | $ | 11,714 |
|
| Adjusted EBITDA | $ | 11,475 |
| | $ | 23,589 |
|
| Interest coverage ratio | 1.7 | X | | 2.0 | X |
| | | | |
| Fixed charge coverage ratio | | | |
| Total interest | $ | 6,774 |
| | $ | 11,714 |
|
| Secured debt principal amortization | (102 | ) | | (102 | ) |
| Total fixed charges | $ | 6,672 |
| | $ | 11,612 |
|
| Adjusted EBITDA | $ | 11,475 |
| | $ | 23,589 |
|
| Fixed charge coverage ratio | 1.7 | X | | 2.0 | X |
| | | | |
| Net debt to adjusted EBITDA ratio | | | |
| Company's pro rata share of total debt | $ | 873,436 |
| | $ | 1,301,311 |
|
| Less: cash and cash equivalents | (98,604 | ) | | (98,604 | ) |
| Net debt | $ | 774,832 |
| | $ | 1,202,707 |
|
Adjusted EBITDA annualized(2) | $ | 45,900 |
| | $ | 94,356 |
|
| Net debt to adjusted EBITDA ratio | 16.9 | X | | 12.7 | X |
| | | | |
| Debt to enterprise value | | | |
| Company's pro rata share of debt | $ | 873,436 |
| | $ | 1,301,311 |
|
Equity(3) | 1,931,185 |
| | 1,931,185 |
|
Enterprise value(3) | $ | 2,804,621 |
| | $ | 3,232,496 |
|
| Debt as % of enterprise value | 31.1 | % | | 40.3 | % |
| | | | |
| Unencumbered real estate assets/total real estate assets: | | | |
Unencumbered real estate assets(4) | $ | 1,074,149 |
| |
|
| Total real estate assets | $ | 2,401,667 |
| |
|
| Unencumbered real estate assets/total real estate assets | 44.7 | % | | |
__________________
| |
| (1) | Excludes the Company’s share of unconsolidated joint venture debt. |
| |
| (2) | Adjusted EBITDA during Q4 2015 annualized (multiplied by 4). |
| |
| (3) | Based on the December 31, 2015 closing price of $11.50 per share and December 31, 2015 debt balances and share count. |
| |
| (4) | Properties not financed by mortgage. All but two of our properties not otherwise subject to mortgage loans collateralize the borrowing base of our Credit Facility and have mortgages recorded for that purpose. |
New York REIT, Inc.
Credit Facility and Liquidity Analysis(1)
(dollar amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
| Credit facility availability: | | | | | | | | | | |
| Credit facility commitments | | $ | 705,000 |
| | $ | 705,000 |
| | $ | 705,000 |
| | $ | 705,000 |
| | $ | 705,000 |
|
| Outstanding balance on credit facility | | 485,000 |
| | 485,000 |
| | 635,000 |
| | 635,000 |
| | 635,000 |
|
Undrawn credit facility commitments(2) | | $ | 220,000 |
| | $ | 220,000 |
| | $ | 70,000 |
| | $ | 70,000 |
| | $ | 70,000 |
|
| | | | | | | | | | | |
| Outstanding balance - term debt | | $ | 305,000 |
| | $ | 305,000 |
| | $ | 305,000 |
| | $ | 305,000 |
| | $ | 305,000 |
|
| Outstanding balance - revolving debt | | 180,000 |
| | 180,000 |
| | 330,000 |
| | 330,000 |
| | 330,000 |
|
| Total outstanding balance | | $ | 485,000 |
| | $ | 485,000 |
| | $ | 635,000 |
| | $ | 635,000 |
| | $ | 635,000 |
|
| | | | | | | | | | | |
| Liquidity: | | | | | | | | | | |
| Cash | | $ | 98,604 |
| | $ | 20,423 |
| | $ | 27,486 |
| | $ | 49,360 |
| | $ | 22,512 |
|
| Credit Facility availability | | 63,008 |
| | 65,314 |
| | 20,198 |
| | 18,063 |
| | 6,027 |
|
|
| | | | | | |
| | | | | Actual - as of |
| | | Required | | December 31, 2015 |
Credit facility covenant ratios(1): | | | | |
| Consolidated leverage ratio | | < 60% | | 52 | % |
| Fixed charge coverage ratio | | > 1.5X | | 2.5 X |
|
| Tangible net worth | | > $900,000 | | $ | 1,207,408 |
|
| Secured leverage ratio | | < 60% | | 32.7 | % |
| Borrowing base advance rate | | < 60% | | 38.5 | % |
| Debt service coverage ratio | | > 1.3X | | 1.47 X |
|
_______________
| |
| (1) | The Company’s credit facility covenant ratios are computed in accordance with the terms of the Company’s credit facility. The methodology for these computations may differ significantly from similarly titled ratios of other companies and throughout the Company’s supplemental. |
New York REIT, Inc.
Debt Maturities
(dollar amounts in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total | | 2016 | | 2017 | | 2018 | | 2019 | | 2020 | | Thereafter |
| Consolidated mortgage debt | $ | 388,436 |
| | $ | 12,068 |
| | $ | 55,533 |
| | $ | 3,703 |
| | $ | 308,869 |
| | $ | 4,041 |
| | $ | 4,222 |
|
| Proportionate share of unconsolidated joint venture mortgage debt | 427,875 |
| | — |
| | — |
| | — |
| | 4,860 |
| | 6,837 |
| | 416,178 |
|
| Combined mortgage debt | 816,311 |
| | 12,068 |
| | 55,533 |
| | 3,703 |
| | 313,729 |
| | 10,878 |
| | 420,400 |
|
| | | | | | | | | | | | | | |
| Credit facility - revolving | 180,000 |
| | 180,000 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Credit facility - term | 305,000 |
| | — |
| | — |
| | 305,000 |
| | — |
| | — |
| | — |
|
| Total credit facility | 485,000 |
| | 180,000 |
| | — |
| | 305,000 |
| | — |
| | — |
| | — |
|
| Total combined debt | $ | 1,301,311 |
| | $ | 192,068 |
| | $ | 55,533 |
| | $ | 308,703 |
| | $ | 313,729 |
| | $ | 10,878 |
| | $ | 420,400 |
|
| % Expiring | 100.0 | % | | 14.8 | % | | 4.3 | % | | 23.7 | % | | 24.1 | % | | 0.8 | % | | 32.3 | % |
% Expiring with extensions(1) | 100.0 | % | | 0.9 | % | | 4.3 | % | | 37.6 | % | | 24.1 | % | | 0.8 | % | | 32.3 | % |
| | | | | | | | | | | | | | |
| Weighted average remaining term - excluding extensions (years) | 4.1 |
| | | | | | | | | | | | |
| Weighted average remaining term - including extensions (years) | 4.4 |
| | | | | | | | | | | | |
| Weighted average remaining term (years) (excluding credit facility) | 5.4 |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Debt maturing | $ | 1,301,311 |
| | $ | 192,068 |
| | $ | 55,533 |
| | $ | 308,703 |
| | $ | 313,729 |
| | $ | 10,878 |
| | $ | 420,400 |
|
| Weighted average interest rate expiring | 3.5 | % | | 2.3 | % | | 3.3 | % | | 2.6 | % | | 3.9 | % | | 4.5 | % | | 4.6 | % |
| | | | | | | | | | | | | | |
| Debt maturing (excluding credit facility) | $ | 816,311 |
| | $ | 12,068 |
| | $ | 55,533 |
| | $ | 3,703 |
| | $ | 313,729 |
| | $ | 10,878 |
| | $ | 420,400 |
|
| Weighted average interest rate expiring | 4.2 | % | | 3.9 | % | | 3.3 | % | | 4.4 | % | | 3.9 | % | | 4.5 | % | | 4.6 | % |
_________________________
| |
| (1) | The Company has, subject to certain conditions as outlined in its credit facility, the option to extend the maturity date of the revolving portion of its credit facility from August 2016 to August 2018. |
Note: All but two of our properties not otherwise subject to mortgage loans collateralize the borrowing base of our Credit Facility and have mortgages recorded for that purpose.
New York REIT, Inc.
Square Footage Summary
|
| | | | | | | | | | | | | |
| As of December 31, 2015 | | Total | | Manhattan | | Brooklyn | | Queens |
| Total square feet by property type: | | | | | | | | |
| | Office | | 2,779,259 |
| | 2,749,768 |
| | 29,491 |
| | — |
|
| | Retail (1) | | 328,101 |
| | 260,429 |
| | 57,905 |
| | 9,767 |
|
| | Hotel | | 128,612 |
| | 128,612 |
| | — |
| | — |
|
| | Parking | | 120,589 |
| | 120,589 |
| | — |
| | — |
|
| | Storage | | 17,677 |
| | 17,677 |
| | — |
| | — |
|
Total owned square feet (end of period) (2) | | 3,374,238 |
| | 3,277,075 |
| | 87,396 |
| | 9,767 |
|
| | | | | | | | | | |
| % of total square feet by property type: | | | | | | | | |
| | Office | | 82 | % | | 84 | % | | 34 | % | | — | % |
| | Retail (1) | | 10 | % | | 8 | % | | 66 | % | | 100 | % |
| | Hotel | | 4 | % | | 4 | % | | — | % | | — | % |
| | Parking | | 3 | % | | 3 | % | | — | % | | — | % |
| | Storage | | 1 | % | | 1 | % | | — | % | | — | % |
Total owned square feet (end of period) (2) | | 100 | % | | 97.1 | % | | 2.6 | % | | 0.3 | % |
_____________
| |
| (1) | Includes 105,514 square feet of stand-alone retail and 222,587 square feet of retail associated with the Company’s office portfolio. |
| |
| (2) | Excludes 15,055 square foot parking garage at 416 Washington Street, which is being operated under a management agreement with a third party. |
All figures above include the Company’s proportionate share of its investment in an unconsolidated joint venture.
New York REIT, Inc.
Major Tenant Summary
(dollar amounts in thousands)
|
| | | | | | | | | | | | | | | |
| Top Ten Office Tenants as a % of Total Annualized Cash Rent | | Property | | Total Square Feet | | Annualized Cash Rent | | % of Annualized Cash Rent |
| 1 | | | Cravath, Swaine & Moore, LLP | | One Worldwide Plaza | | 301,779 |
| | $ | 29,273 |
| | 16.0 | % |
| 2 | | | Nomura Holding America Inc. | | One Worldwide Plaza | | 400,934 |
| | 19,330 |
| | 10.6 | % |
| 3 | | | Twitter, Inc. | | 245-249 West 17th Street | | 214,666 |
| | 14,842 |
| | 8.1 | % |
| 4 | | | Macy's, Inc. | | 1440 Broadway | | 203,196 |
| | 11,064 |
| | 6.1 | % |
| 5 | | | The Segal Company (Eastern States) Inc. | | 333 West 34th Street | | 144,307 |
| | 8,701 |
| | 4.8 | % |
| 6 | | | Spring Studios New York LLC | | 50 Varick Street | | 158,574 |
| | 7,623 |
| | 4.2 | % |
| 7 | | | Metropolitan Transportation Authority (MTA) | | 333 West 34th Street | | 130,443 |
| | 4,079 |
| | 2.2 | % |
| 8 | | | Advance Magazine | | 1440 Broadway | | 72,194 |
| | 3,594 |
| | 2.0 | % |
| 9 | | | Liz Claiborne, Inc. | | 1440 Broadway | | 67,213 |
| | 3,193 |
| | 1.7 | % |
| 10 | | | Red Bull North America, Inc. | | 218 West 18th Street | | 41,642 |
| | 2,745 |
| | 1.5 | % |
| | Total top ten office tenants | | | | 1,734,948 |
| | $ | 104,444 |
| | 57.2 | % |
|
| | | | | | | | | | | | | | | |
| Top Ten Retail Tenants as a % of Total Annualized Cash Rent | | Property | | Total Square Feet | | Annualized Cash Rent | | % of Annualized Cash Rent |
| 1 | | | Room & Board, Inc. | | 245-249 West 17th Street | | 60,161 |
| | $ | 4,658 |
| | 2.6 | % |
| 2 | | | Sam Ash New York Megastores, LLC | | 333 West 34th Street | | 29,688 |
| | 1,446 |
| | 0.8 | % |
| 3 | | | Dodger Stage Holding Theatricals, Inc. | | One Worldwide Plaza | | 27,841 |
| | 1,217 |
| | 0.7 | % |
| 4 | | | TD Bank, N.A. | | One Jackson Square | | 4,158 |
| | 1,145 |
| | 0.6 | % |
| 5 | | | Duane Reade | | Duane Reade | | 9,767 |
| | 1,094 |
| | 0.6 | % |
| 6 | | | Burberry Limited | | 367-387 Bleecker Street | | 4,726 |
| | 1,050 |
| | 0.6 | % |
| 7 | | | Early Bird Delivery Systems LLC, d/b/a Urban Express | | 229 West 36th Street | | 20,132 |
| | 1,012 |
| | 0.6 | % |
| 8 | | | 99th Avenue Holdings, LLC | | One Worldwide Plaza | | 17,233 |
| | 880 |
| | 0.5 | % |
| 9 | | | JPMorgan Chase Bank, N.A. | | 1100 Kings Highway | | 6,385 |
| | 814 |
| | 0.4 | % |
| 10 | | | The Dress Barn, Inc. | | 1100 Kings Highway | | 14,200 |
| | 780 |
| | 0.4 | % |
| | Total top ten retail tenants | | | | 194,291 |
| | $ | 14,096 |
| | 7.8 | % |
New York REIT, Inc.
Tenant Industry Concentration
|
| | | |
| | | |
| | | |
| | | % of Annualized Cash Rent |
| Technology, Advertising, Media & Information ("TAMI") | | 22 | % |
| Retail | | 18 | % |
| Legal Services | | 17 | % |
| Finance, Insurance, Real Estate | | 14 | % |
| Professional Services | | 13 | % |
| Consumer Goods | | 3 | % |
| Education | | 3 | % |
| Food and Beverage | | 3 | % |
| Government | | 2 | % |
| Health Services | | 2 | % |
| Parking | | 2 | % |
| Other | | 1 | % |
| | | 100 | % |
New York REIT, Inc.
Lease Expirations — Next Five Years
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Total | | 2016 | | 2017 | | 2018 | | 2019 | | 2020 | | Thereafter |
Combined:(1) | | | | | | | | | | | | | | |
| | Leases expiring | | 137 |
| | 10 |
| | 17 |
| | 17 |
| | 6 |
| | 8 |
| | 79 |
|
| | Expiring Annualized Cash Rent (in thousands)(2)(3) | | $ | 214,905 |
| | $ | 6,488 |
| | $ | 7,296 |
| | $ | 9,440 |
| | $ | 1,238 |
| | $ | 6,153 |
| | $ | 184,290 |
|
| | Expiring square feet(3) | | 3,096,255 |
| | 102,541 |
| | 106,379 |
| | 159,320 |
| | 32,077 |
| | 83,945 |
| | 2,611,993 |
|
| | % of total square feet expiring | | 100.0 | % | | 3.3 | % | | 3.4 | % | | 5.1 | % | | 1.0 | % | | 2.7 | % | | 84.5 | % |
| | | | | | | | | | | | | | | | |
| | Annualized Cash Rent per square foot(2) (3) | | $ | 69.41 |
| | $ | 63.28 |
| | $ | 68.58 |
| | $ | 59.25 |
| | $ | 38.62 |
| | $ | 73.30 |
| | $ | 70.56 |
|
| | | | | | | | | | | | | | | | |
| Consolidated properties: | | | | | | | | | | | | | | |
| | Leases expiring | | 103 |
| | 7 |
| | 16 |
| | 13 |
| | 5 |
| | 7 |
| | 55 |
|
| | Expiring Annualized Cash Rent (in thousands)(2)(3) | | $ | 142,792 |
| | $ | 6,436 |
| | $ | 6,284 |
| | $ | 9,096 |
| | $ | 1,227 |
| | $ | 5,805 |
| | $ | 113,944 |
|
| | Expiring square feet(3)(4) | | 2,094,428 |
| | 102,394 |
| | 89,959 |
| | 157,487 |
| | 32,077 |
| | 82,800 |
| | 1,629,711 |
|
| | % of total square feet expiring | | 100.0 | % | | 4.9 | % | | 4.3 | % | | 7.5 | % | | 1.5 | % | | 4.0 | % | | 77.8 | % |
| | | | | | | | | | | | | | | | |
| | Annualized Cash Rent per square foot(2) (3)(4) | | $ | 68.18 |
| | $ | 62.86 |
| | $ | 69.85 |
| | $ | 57.75 |
| | $ | 38.27 |
| | $ | 70.10 |
| | $ | 69.92 |
|
| | | | | | | | | | | | | | | | |
| Unconsolidated joint ventures: | | | | | | | | | | | | | | |
| | Leases expiring | | 34 |
| | 3 |
| | 1 |
| | 4 |
| | 1 |
| | 1 |
| | 24 |
|
| | Expiring Annualized Cash Rent (in thousands)(2)(4) | | $ | 72,113 |
| | $ | 52 |
| | $ | 1,012 |
| | $ | 344 |
| | $ | 11 |
| | $ | 348 |
| | $ | 70,346 |
|
| | Expiring square feet(5) | | 1,001,827 |
| | 147 |
| | 16,420 |
| | 1,833 |
| | — |
| | 1,145 |
| | 982,282 |
|
| | % of total square feet expiring | | 100.0 | % | | — | % | | 1.6 | % | | 0.2 | % | | — | % | | 0.1 | % | | 98.1 | % |
| | | | | | | | | | | | | | | | |
| | Annualized Cash Rent per square foot(2)(4) | | $ | 71.98 |
| | $ | 354.97 |
| | $ | 61.61 |
| | $ | 187.58 |
| | $ | — |
| | $ | 304.17 |
| | $ | 71.61 |
|
_________________
| |
| (1) | Combined reflects 100% of consolidated properties plus the Company’s pro rata share of unconsolidated properties. |
| |
| (2) | Expiring Annualized Cash Rent represents contractual cash base rents at the time of lease expiration and reimbursements from tenants, excluding electric reimbursements and free rent. |
| |
| (3) | Excludes 122,896 square feet of the hotel (which excludes 5,716 square feet leased to the hotel restaurant tenant). Total vacant square footage at December 31, 2015 was 155,087 square feet. |
| |
| (4) | Reflects the Company's pro rata share of its unconsolidated joint venture. |
New York REIT, Inc.
Lease Expirations — Quarterly Through 2016
|
| | | | | | | | | | | | | | | | | |
| | | | Q1 2016(1) | | Q2 2016 | | Q3 2016 | | Q4 2016 |
Combined:(2) | | | | | | | | |
| | Leases expiring | | 1 |
| | 3 |
| | 3 |
| | 3 |
|
| | Expiring Annualized Cash Rent (in thousands)(3) | | $ | 6 |
| | $ | 3,921 |
| | $ | 1,057 |
| | $ | 1,505 |
|
| | Expiring square feet | | — |
| | 72,986 |
| | 23,353 |
| | 6,202 |
|
| | % of total square feet expiring | | — | % | | 2.4 | % | | 0.8 | % | | 0.2 | % |
| | | | | | | | | | |
| | Annualized Cash Rent per square foot(3) | | $ | — |
| | $ | 53.72 |
| | $ | 45.26 |
| | $ | 242.66 |
|
| | | | | | | | | | |
| Consolidated properties: | | | | | | | | |
| | Leases expiring | | — |
| | 2 |
| | 2 |
| | 3 |
|
| | Expiring Annualized Cash Rent (in thousands)(3) | | $ | — |
| | $ | 3,907 |
| | $ | 1,024 |
| | $ | 1,505 |
|
| | Expiring square feet | | — |
| | 72,986 |
| | 23,206 |
| | 6,202 |
|
| | % of total square feet expiring | | — | % | | 3.5 | % | | 1.1 | % | | 0.3 | % |
| | | | | | | | | | |
| | Annualized Cash Rent per square foot(3) | | $ | — |
| | $ | 53.53 |
| | $ | 44.14 |
| | $ | 242.66 |
|
| | | | | | | | | | |
| Unconsolidated joint ventures: | | | | | | | | |
| | Leases expiring | | 1 |
| | 1 |
| (1) | 1 |
| | — |
|
| | Expiring Annualized Cash Rent (in thousands)(3)(4) | | $ | 6 |
| | $ | 14 |
| (1) | $ | 33 |
| | $ | — |
|
| | Expiring square feet(4) | | — |
| | — |
| | 147 |
| | — |
|
| | % of total square feet expiring | | — | % | | — | % | | — | % | | — | % |
| | | | | | | | | | |
| | Annualized Cash Rent per square foot(3) | | $ | — |
| | $ | — |
| | $ | 222.65 |
| | $ | — |
|
_________________
| |
| (1) | Reflects an expiring antenna lease with no square footage associated. |
| |
| (2) | Combined reflects 100% of consolidated properties plus the Company’s pro rata share of unconsolidated properties. |
| |
| (3) | Expiring Annualized Cash Rent represents contractual cash base rents at the time of lease expiration and reimbursements from tenants, excluding electric reimbursements and free rent. |
| |
| (4) | Reflects the Company's pro rata share of its unconsolidated joint venture. |
New York REIT, Inc.
Leasing Activity
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
| Leasing activity: | | | | | | | | | | |
| | Leases executed | | 5 |
| | 1 |
| | 7 |
| | 1 |
| | 2 |
|
| | Total square feet leased | | 129,889 |
| | 2,811 |
| | 185,247 |
| | 22,185 |
| | 21,868 |
|
| | Company's share of square feet leased | | 125,727 |
| | 2,811 |
| | 114,548 |
| | 22,185 |
| | 21,868 |
|
| | Initial rent | | $ | 62.14 |
| | $ | 158.42 |
| | $ | 56.51 |
| | $ | 157.76 |
| | $ | 58.31 |
|
| | Weighted average lease term (years) | | 4.2 |
| | 10 |
| | 12.9 |
| | 15.5 |
| | 7.7 |
|
| | | | | | | | | | | | |
| | Replacement leases:(1) | | | | | | | | | | |
| | Replacement leases executed | | 4 |
| | — |
| | 3 |
| | 1 |
| | 1 |
|
| | Square feet | | 123,002 |
| | — |
| | 30,579 |
| | 5,058 |
| (2) | 8,364 |
|
| | | | | | | | | | | | |
| | Cash basis: | | | | | | | | | | |
| | Initial rent | | $ | 67.09 |
| | $ | — |
| | $ | 48.70 |
| | $ | 356.79 |
| | $ | 53.97 |
|
| | Prior escalated rent (3) | | $ | 54.62 |
| | $ | — |
| | $ | 36.64 |
| | $ | 250.90 |
| | $ | 45.99 |
|
| | Percentage increase | | 23 | % | | — | % | | 33 | % | | 42 | % | | 17 | % |
| | | | | | | | | | | | |
| | GAAP basis: | | | | | | | | | | |
| | Initial rent | | $ | 69.61 |
| | $ | — |
| | $ | 51.75 |
| | $ | 381.19 |
| | $ | 61.88 |
|
| | Prior escalated rent (3) | | $ | 54.66 |
| | $ | — |
| | $ | 40.69 |
| | $ | 249.32 |
| | $ | 43.67 |
|
| | Percentage increase | | 27 | % | | — | % | | 27 | % | | 53 | % | | 42 | % |
| | | | | | | | | | | | |
| | Tenant improvements on replacement leases per square foot(4) | | $ | 17.40 |
| | $ | — |
| | $ | 98.62 |
| | $ | 78.88 |
| | $ | 17.00 |
|
| | Leasing commissions on replacement leases per square foot(4) | | $ | 11.92 |
| | $ | — |
| | $ | 31.61 |
| | $ | 178.40 |
| | $ | 20.82 |
|
_______________
| |
| (1) | Replacement leases are for spaces that were leased during the period and also have been leased at some time during the prior twelve months. |
| |
| (2) | This tenant leased multiple floors and the 5,058 square feet of replacement leasing represents the space that was not previously vacant and was comparable retail space. |
| |
| (3) | Prior escalated rent is calculated as total annualized income less electric charges. It includes base rent, excluding recoveries. |
| |
| (4) | Presented as if tenant improvements and leasing commissions were incurred in the period in which the lease was signed, which may be different than the period in which these amounts were actually paid. |
New York REIT, Inc.
Tenant Improvements, Leasing Commissions and Capital Expenditures
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 |
Capital expenditures (accrual basis):(1) | | | | | | | | | | |
| First generation tenant improvements | | $ | 3,449 |
| | $ | 9,175 |
| | $ | 3,994 |
| | $ | 8,196 |
| | $ | 6,270 |
|
| First generation leasing commissions | | 695 |
| | 620 |
| | 3,312 |
| | — |
| | 1,362 |
|
| First generation building improvements | | 2,828 |
| | 1,594 |
| | 1,289 |
| | 579 |
| | 4,487 |
|
| Total first generation tenant improvements, leasing commissions and capital expenditures | | $ | 6,972 |
| | $ | 11,389 |
| | $ | 8,595 |
| | $ | 8,775 |
| | $ | 12,119 |
|
| | | | | | | | | | | |
| Second generation tenant improvements | | $ | 43 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 102 |
|
| Second generation leasing commissions | | 194 |
| | 12 |
| | 3 |
| | 3 |
| | 110 |
|
| Second generation building improvements | | 962 |
| | 201 |
| | 51 |
| | 9 |
| | — |
|
| Total second generation tenant improvements, leasing commissions and capital expenditures | | 1,199 |
| | 213 |
| | 54 |
| | 12 |
| | 212 |
|
| Total tenant improvements, leasing commissions and capital expenditures | | $ | 8,171 |
| | $ | 11,602 |
| | $ | 8,649 |
| | $ | 8,787 |
| | $ | 12,331 |
|
____________
| |
| (1) | Amounts incurred presented on a combined basis, including our pro rata share of our unconsolidated joint venture. |
New York REIT, Inc.
Property Table
|
| | | | | | | | | | | | | | | | | | | |
| Property | | Ownership | | Rentable Square Feet(1) | | Percent Occupied(2) | | Annualized Cash Rent (in thousands) | | Annualized Cash Rent Per Square Foot | | Number of Leases |
| Manhattan Office Properties - Office | | | | | | | | | | | | |
| Design Center | | 100.0% | | 81,082 |
| | 100.0 | % | | $ | 4,130 |
| | $ | 50.94 |
| | 17 |
|
| 416 Washington Street | | 100.0% | | 1,565 |
| | 100.0 | % | | 58 |
| | 37.10 |
| | 1 |
|
| 256 West 38th Street | | 100.0% | | 89,763 |
| | 66.7 | % | | 2,418 |
| | 40.38 |
| | 9 |
|
| 229 West 36th Street | | 100.0% | | 129,436 |
| | 90.3 | % | | 5,179 |
| | 44.33 |
| | 7 |
|
| 218 West 18th Street | | 100.0% | | 165,670 |
| | 100.0 | % | | 9,337 |
| | 56.36 |
| | 7 |
|
| 50 Varick Street | | 100.0% | | 158,574 |
| | 100.0 | % | | 7,623 |
| | 48.07 |
| | 1 |
|
| 333 West 34th Street | | 100.0% | | 317,040 |
| | 100.0 | % | | 14,402 |
| | 45.43 |
| | 3 |
|
| 1440 Broadway | | 100.0% | | 711,800 |
| | 84.7 | % | | 32,854 |
| | 54.47 |
| | 11 |
|
| One Worldwide Plaza | | 48.9% | | 878,614 |
| | 100.0 | % | | 58,485 |
| | 66.57 |
| | 9 |
|
| 245-249 West 17th Street | | 100.0% | | 214,666 |
| | 100.0 | % | | 14,842 |
| | 69.14 |
| | 1 |
|
| Manhattan Office Properties - Office Total | | | | 2,748,210 |
| | 94.5 | % | | 149,328 |
| | 57.50 |
| | 66 |
|
| | | | | | | | | | | | | |
| Manhattan Office Properties - Retail | | | | | | | | | | | | |
| 256 West 38th Street | | 100.0% | | 27,280 |
| | 100.0 | % | | 1,179 |
| | 43.22 |
| | 3 |
|
| 229 West 36th Street | | 100.0% | | 20,132 |
| | 100.0 | % | | 1,012 |
| | 50.28 |
| | 1 |
|
| 333 West 34th Street | | 100.0% | | 29,688 |
| | 100.0 | % | | 1,446 |
| | 48.72 |
| | 1 |
|
| 1440 Broadway | | 100.0% | | 37,619 |
| | 95.5 | % | | 5,004 |
| | 139.27 |
| | 7 |
|
| One Worldwide Plaza | | 48.9% | | 123,213 |
| | 100.0 | % | | 5,009 |
| | 40.65 |
| | 20 |
|
| 245-249 West 17th Street | | 100.0% | | 66,628 |
| | 100.0 | % | | 5,552 |
| | 83.33 |
| | 3 |
|
| Manhattan Office Properties - Retail Total | | | | 304,560 |
| | 99.4 | % | | 19,202 |
| | 63.40 |
| | 35 |
|
| Sub-Total/Weighted Average Manhattan Office Properties - Office and Retail | | | | 3,052,770 |
| | 95.0 | % | | $ | 168,530 |
| | $ | 58.12 |
| | 101 |
|
__________________
| |
| (1) | Does not include 128,612 square feet at the Viceroy Hotel, antenna leases at Worldwide Plaza or 15,055 square feet at the garage at 416 Washington Street, which is being operated under a management contract with a third party. Includes pro rata share of our investment in Worldwide Plaza. |
| |
| (2) | Inclusive of leases signed but not yet commenced. |
New York REIT, Inc.
Property Table (continued)
|
| | | | | | | | | | | | | | | | | | | |
| Property | | Ownership | | Rentable Square Feet(1) | | Percent Occupied(2) | | Annualized Cash Rent (in thousands) | | Annualized Cash Rent Per Square Foot | | Number of Leases |
| Manhattan Stand Alone Retail | | | | | | | | | | | | |
| 367-387 Bleecker Street | | 100.0% | | 9,724 |
| | 100.0 | % | | $ | 2,733 |
| | $ | 281.02 |
| | 5 |
|
| 33 West 56th Street (garage) | | 100.0% | | 12,856 |
| | 100.0 | % | | 460 |
| | 35.81 |
| | 1 |
|
| 416 Washington Street | | 100.0% | | 7,436 |
| | 100.0 | % | | 469 |
| | 63.12 |
| | 2 |
|
| One Jackson Square | | 100.0% | | 8,392 |
| | 100.0 | % | | 1,676 |
| | 199.72 |
| | 4 |
|
| 350 West 42nd Street | | 100.0% | | 42,774 |
| | 100.0 | % | | 1,769 |
| | 41.36 |
| | 4 |
|
| 350 Bleecker Street | | 100.0% | | 14,511 |
| | 84.6 | % | | 733 |
| | 59.68 |
| | 2 |
|
| Sub-Total/Weighted Average Manhattan Stand Alone Retail | | | | 95,693 |
| | 97.7 | % | | 7,840 |
| | 83.89 |
| | 18 |
|
| | | | | | | | | | | | | |
| Outer-Borough Properties | | | | | | | | | | | | |
| Foot Locker | | 100.0% | | 6,118 |
| | 100.0 | % | | 497 |
| | 81.14 |
| | 1 |
|
Duane Reade(3) | | 100.0% | | 9,767 |
| | 100.0 | % | | 1,094 |
| | 112.02 |
| | 1 |
|
| 1100 Kings Highway | | 100.0% | | 61,318 |
| | 100.0 | % | | 2,807 |
| | 45.78 |
| | 5 |
|
1623 Kings Highway(3) | | 100.0% | | 19,960 |
| | 100.0 | % | | 1,132 |
| | 56.71 |
| | 3 |
|
| Sub-Total/Weighted Average Outer-Borough Properties | | | | 97,163 |
| | 100.0 | % | | 5,530 |
| | 56.91 |
| | 10 |
|
| Portfolio Total | | | | 3,245,626 |
| | 95.2 | % | | $ | 181,900 |
| | $ | 58.86 |
| | 129 |
|
__________________
| |
| (1) | Does not include 128,612 square feet at the Viceroy Hotel, antenna leases at Worldwide Plaza or 15,055 square feet at the garage at 416 Washington Street, which is being operated under a management contract with a third party. |
| |
| (2) | Inclusive of leases signed but not yet commenced. |
| |
| (3) | Property was sold in February 2016. |
New York REIT, Inc.
Selected Viceroy Hotel Metrics
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, | | Quarterly |
| | | 2015 | | 2014 | | % Change | | Q4 2015 | | Q4 2014 | | % Change |
| Average occupancy | | 80.5 | % | | 68.8 | % | | 17.0 | % | | 84.2 | % | | 77.2 | % | | 9.1 | % |
| Average daily rate | | $ | 343.76 |
| | $ | 351.04 |
| | (2.1 | )% | | $ | 383.24 |
| | $ | 402.46 |
| | (4.8 | )% |
| REVPAR | | $ | 276.70 |
| | $ | 241.39 |
| | 14.6 | % | | $ | 322.75 |
| | $ | 310.72 |
| | 3.9 | % |
NOI (in thousands) | | $ | 759 |
| | $ | (994 | ) | | 176.4 | % | | $ | 823 |
| | $ | 690 |
| | 19.3 | % |
Cash NOI (in thousands) | | $ | 3,489 |
| | $ | 2,905 |
| | 20.1 | % | | $ | 1,397 |
| | $ | 1,665 |
| | (16.1 | )% |
New York REIT, Inc.
Definitions
Definitions
This section contains an explanation of certain non-GAAP financial measures we provide in other sections of this document, as well as the reasons why management believes these measures provide useful information to investors about the Company’s financial condition or results of operations. Additional detail can be found in the Company’s most recent annual report on Form 10-K as well as other documents filed with or furnished to the SEC from time to time.
Adjusted Cash NOI
Adjusted Cash NOI is Cash NOI (as defined below) after eliminating the effects of free rent.
Adjusted funds from operations (AFFO)
AFFO is Core FFO, excluding certain income or expense items that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities that are not a fundamental attribute of our business plan. These items include unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments, gains or losses on contingent valuation rights and gains and losses on investments. In addition, by excluding non-cash income and expense items such as amortization of above and below market leases, equity-based compensation expenses, amortization of deferred financing costs and straight-line rent from AFFO we believe we provide useful information regarding income and expense items which have no cash impact and do not provide liquidity to the Company or require capital resources of the Company. We exclude certain interest expenses related to securities that are convertible to common stock as the shares are assumed to have converted to common stock in our calculation of weighted average common shares-fully diluted, if applicable. Furthermore we include certain cash inflows and outflows that are reflective of operating activities including preferred returns on joint ventures, second generation tenant improvements and leasing commissions (included in the period in which the lease commences) and recurring capital expenditures. We also include items such as free rent credits paid by sellers because these funds are paid to us during the free rent period and therefore improve our liquidity and ability to pay dividends.
Although our AFFO may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash dividends to stockholders. In addition, we believe that to further understand our liquidity, AFFO should be compared with our cash flows determined in accordance with GAAP, as presented in our consolidated financial statements. AFFO does not represent cash generated from operating activities determined in accordance with GAAP, and AFFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.
Annualized Cash Rent
Cash rent at the end of the reporting period, including operating expense reimbursements, excluding electric. Real estate tax reimbursements are typically multiplied by two because they are paid semi-annually. Free rent periods are excluded from annualized cash rent.
Cash net operating income (Cash NOI)
NOI, presented on a cash basis, which is NOI after eliminating the effects of straight-lining of rent and fair value lease revenue.
Core funds from operations (Core FFO)
Core FFO is FFO, excluding acquisition and transaction related costs and certain other costs that management deems to be non-core to our business. The purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our business plan to generate operational income and cash flows in order to make dividends to investors. In evaluating investments in real estate, management differentiates the costs to acquire the investment from the operations derived from the investment. By excluding expensed acquisition costs, management believes Core FFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties.
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)
Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization, acquisition and transaction-related expenses and other non-cash items, including our pro rata share of investments in unconsolidated joint ventures. We believe Adjusted EBITDA is an appropriate measure of our ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate adjusted EBITDA differently and our calculation should not be compared to that of other REITs. Adjusted EBITDA is adjusted to include our pro rata share of Adjusted EBITDA from unconsolidated joint ventures.
Effective interest rate
The annualized rate, on a 365-day basis, at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums and deferred financing costs. For instance, the stated interest rate in a loan agreement may be based on a 360 day year. Therefore, the effective interest rate would be the stated rate divided by 360 x 365 days in the year.
First generation building improvements
Capital expenditures on first generation space, as defined below, that are not tenant improvement or leasing commission related.
First generation space
Space that is vacant at acquisition or space that was not consistent with the Company’s operating standards.
First generation tenant improvements and leasing commissions
Tenant improvements and leasing commissions incurred on first generation space as defined above.
Funds from operations (FFO)
Pursuant to the revised definition of funds from operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate funds from operations (FFO), by adjusting net income (loss) (computed in accordance with GAAP, including non-recurring items) for gains (or losses) from sales of properties, impairment losses on depreciable real estate of consolidated real estate, impairment losses on investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure. The use of FFO, combined with the required GAAP presentations, has been fundamentally beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses related to asset sales (land and property), impairment losses and real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not a measure of liquidity or an indicator of our ability to make cash dividends. We believe that to further understand our performance, FFO should be compared with our reported net income and considered in addition to cash flows determined in accordance with GAAP, as presented in our consolidated financial statements.
LTIP units
Long-term Incentive Plan units of the OP (defined below) issued in connection with the 2014 Advisor Multi-Year Outperformance Agreement.
Net operating income (NOI)
Net operating income (NOI) is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, less discontinued operations, plus corporate general and administrative expense, acquisition and transaction costs, depreciation and amortization and interest expense, income from unconsolidated joint ventures, interest, other non-cash items and other income and gains from investments in securities. NOI is adjusted to include our pro rata share of NOI from unconsolidated joint ventures. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income, as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make dividends.
OP
New York Recovery Operating Partnership, L.P., a Delaware Limited Partnership.
OP units
Limited partnership units of the OP
Replacement leases
Leases signed during the current period for space that had been previously leased at any point during the previous twelve months.
Prior escalated rent
Cash rent at expiration of the lease, including real estate tax and other operating expense reimbursements, multiplied by twelve.
Second generation capital expenditures
Represents building investments to maintain current revenues. These capital expenditures which may occur on a regular basis, may relate to repairs and maintenance that extend the useful life of an asset and are therefore capitalized. These costs are included in our calculation of AFFO.
Second generation space
Any space that is not first generation space.
Second generation tenant improvements and leasing commissions
Tenant improvements, leasing commissions, and other leasing costs incurred during leasing of second generation space.
Stated interest rate
The rate at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums and deferred financing costs.
New York REIT, Inc.
Management/Board of Directors
|
| | | | | |
| Executive Management Team | | Board of Directors | |
| Michael A. Happel | Chief Executive Officer | | Randolph C. Read | Non-Executive Chairman of the Board of Directors |
| | | and President | | President and Chief Executive Officer |
| | | | | Nevada Strategic Credit Investments, LLC |
| Nicholas Radesca | Interim Chief Financial Officer, | | | |
| | | Treasurer and Secretary | | | |
| | | | | P. Sue Perrotty | Independent Director, Audit Committee Chair, Nominating and Corporate Governance Committee Chair |
| Patrick O'Malley | | Chief Investment Officer | | President and Chief Executive Officer |
| | | | | AFM Financial Services |
| | | | | | |
| | | | | William M. Kahane | Director |
| | | | | Former Chief Executive Officer |
| | | | | RCS Capital Corp. |
| | | | | | |
| | | | | Robert H. Burns | Independent Director, Compensation Committee Chair |
| | | | | Former Chairman and Chief Executive Officer |
| | | | | Regent International Hotels |
| | | | | | |
| | | | | Keith Locker
| Independent Director |
| | | | | CEO, Inlet Capital |
| | | | | Former Chair and Director, Sunstone Hotel Investors, Inc |
| | | | | | |
| | | | | James Nelson | Independent Director, Conflicts Committee Chair |
| | | | | Director |
| | | | | Icahn Enterprises GP |
| Company Information | | | |
| Address: | | 405 Park Avenue, 14th floor | | | |
| | | New York, NY 10022 | | | |
| Phone: | | 212-415-6500 | | | |
| Website: | | www.nyrt.com | | | |
