Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | BRT REALTY TRUST | |
Entity Central Index Key | 14846 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 14,101,056 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Real estate properties, net of accumulated depreciation and amortization of $34,380 and $27,424 | $682,774 | $635,612 |
Cash and cash equivalents | 18,011 | 23,181 |
Deferred costs, net | 14,760 | 13,515 |
Deposits and escrows | 8,829 | 12,273 |
Other assets, net | 12,301 | 15,632 |
Assets of discontinued operations | 0 | 2,017 |
Total Assets | 760,129 | 734,620 |
Liabilities: | ||
Mortgages payable | 516,519 | 482,406 |
Junior subordinated notes | 37,400 | 37,400 |
Accounts payable and accrued liabilities | 19,481 | 15,185 |
Deferred income | 30,990 | 30,990 |
Total Liabilities | 604,390 | 565,981 |
Commitments and contingencies | 0 | 0 |
BRT Realty Trust shareholders’ equity: | ||
Preferred shares | 0 | 0 |
Shares of beneficial interest | 40,283 | 40,965 |
Additional paid-in capital | 161,879 | 166,209 |
Accumulated other comprehensive (loss) | -56 | -8 |
Accumulated deficit | -80,272 | -77,026 |
Total BRT Realty Trust shareholders’ equity | 121,834 | 130,140 |
Non-controlling interests | 33,905 | 38,499 |
Total Equity | 155,739 | 168,639 |
Total Liabilities and Equity | 760,129 | 734,620 |
Variable Interest Entity Primary Beneficiary [Member] | RBHTRB Newark Holdings LLC [Member] | ||
ASSETS | ||
Restricted cash | 16,673 | 22,835 |
Multi-Family Real Estate [Member] | ||
ASSETS | ||
Total Assets | 583,438 | |
Multi-Family Real Estate [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
ASSETS | ||
Restricted cash | $6,781 | $9,555 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Real estate properties, accumulated depreciation (in Dollars) | $34,380 | $27,424 |
Preferred shares, par value (in dollars per share) | $1 | $1 |
Preferred shares authorized (in shares) | 10,000 | 10,000 |
Preferred shares issued (in shares) | 0 | 0 |
Shares of beneficial interest, par value (in dollars per share) | $3 | $3 |
Shares of beneficial interest issued (shares) | 13,428 | 13,655 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||||
Rental and other revenues from real estate | $20,186 | $14,877 | $39,667 | $28,684 |
Other income | 286 | 280 | 582 | 551 |
Total revenues | 20,472 | 15,157 | 40,249 | 29,235 |
Expenses: | ||||
Real estate operating expenses | 10,314 | 8,395 | 20,723 | 16,029 |
Interest expense | 5,865 | 4,949 | 12,066 | 9,633 |
Advisor’s fees, related party | 605 | 414 | 1,189 | 776 |
Property acquisition costs | 0 | 292 | 295 | 1,528 |
General and administrative—including $206 and $134 to related party for the three months ended and $282 and $347 for the six months ended | 1,736 | 1,596 | 3,393 | 3,170 |
Depreciation and amortization | 5,115 | 3,384 | 9,273 | 6,574 |
Total expenses | 23,635 | 19,030 | 46,939 | 37,710 |
Total revenues less total expenses | -3,163 | -3,873 | -6,690 | -8,475 |
Gain on sale of real estate | 2,777 | 0 | 2,777 | 0 |
Total revenues less total expenses | -386 | -3,873 | -3,913 | -8,475 |
Discontinued operations: | ||||
Income from discontinued operations | 0 | 362 | 0 | 1,213 |
Net loss | -386 | -3,511 | -3,913 | -7,262 |
Plus: net (income) loss attributable to non- controlling interests | -362 | 919 | 667 | 1,937 |
Net loss attributable to common shareholders | -748 | -2,592 | -3,246 | -5,325 |
Basic and diluted per share amounts attributable to common shareholders: | ||||
Loss from continuing operations | ($0.05) | ($0.21) | ($0.23) | ($0.46) |
Discontinued operations | $0 | $0.03 | $0 | $0.09 |
Basic and diluted loss per share | ($0.05) | ($0.18) | ($0.23) | ($0.37) |
Amounts attributable to BRT Realty Trust: | ||||
Loss from continuing operations | -748 | -2,954 | -3,246 | -6,538 |
Discontinued operations | 0 | 362 | 0 | 1,213 |
Net loss attributable to BRT Realty Trust | ($748) | ($2,592) | ($3,246) | ($5,325) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted (in shares) | 14,086,761 | 14,294,022 | 14,165,826 | 14,227,734 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||||
General and administrative, related party | $206 | $134 | $282 | $347 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | ($386) | ($3,511) | ($3,913) | ($7,262) |
Other comprehensive (loss) income: | ||||
Unrealized (loss) gain on derivative instruments | -23 | -17 | -48 | 10 |
Other comprehensive (loss) income | -23 | -17 | -48 | 10 |
Comprehensive loss | -409 | -3,528 | -3,961 | -7,252 |
Comprehensive (income) loss attributable to non-controlling interests | -359 | 926 | 667 | 1,937 |
Comprehensive loss attributable to common shareholders | ($768) | ($2,602) | ($3,294) | ($5,315) |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
In Thousands, unless otherwise specified | ||||||
Beginning balance at Sep. 30, 2014 | $168,639 | $40,965 | $166,209 | ($8) | ($77,026) | $38,499 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock vesting | 353 | -353 | ||||
Compensation expense –restricted stock | 444 | 444 | ||||
Contributions from non-controlling interests | 292 | 292 | ||||
Distributions to non-controlling interests | -3,367 | -3,367 | ||||
Purchase of non-controlling interests | -3,886 | -3,034 | -852 | |||
Shares repurchased - 345,081 shares | -2,422 | -1,035 | -1,387 | |||
Net loss | -3,913 | -3,246 | -667 | |||
Other comprehensive loss | -48 | -48 | ||||
Comprehensive loss | -3,961 | |||||
Ending balance at Mar. 31, 2015 | $155,739 | $40,283 | $161,879 | ($56) | ($80,272) | $33,905 |
CONSOLIDATED_STATEMENT_OF_EQUI1
CONSOLIDATED STATEMENT OF EQUITY - Parenthetical | 6 Months Ended |
Mar. 31, 2015 | |
Stock repurchased (shares) | 345,081 |
Common Stock [Member] | |
Stock repurchased (shares) | 345,081 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($3,913) | ($7,262) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 10,492 | 7,529 |
Amortization of deferred fee income | 0 | -297 |
Amortization of restricted stock | 444 | 394 |
Gain on sale of real estate | -2,777 | 0 |
Increases and decreases from changes in other assets and liabilities: | ||
Change in straight-line rent | -201 | -268 |
Decrease in interest and dividends receivable | 17 | 116 |
Increase in prepaid expenses | -1,503 | -483 |
Decrease in prepaid interest | 598 | 432 |
Decrease (increase) in deposits and escrows | 3,285 | -1,495 |
Decrease (increase) in other assets | 4,588 | -734 |
Increase in accounts payable and accrued liabilities | 4,248 | 1,831 |
Other | 3 | 3 |
Net cash provided by (used in) operating activities | 15,281 | -234 |
Cash flows from investing activities: | ||
Collections from real estate loans | 2,000 | 18,727 |
Additions to real estate loans | 0 | -5,532 |
Additions to real estate properties | -10,777 | -107,320 |
Net costs capitalized to real estate properties | -35,307 | -15,272 |
Collection of loan fees | 0 | 180 |
Purchase of non controlling interests | -3,886 | 0 |
Proceeds from the sale of real estate properties | 9,605 | 0 |
Net cash used in investing activities | -29,429 | -100,079 |
Cash flows from financing activities: | ||
Proceeds from mortgages payable | 24,549 | 80,535 |
Mortgage principal payments | -7,609 | -530 |
Increase in deferred borrowing costs | -2,465 | -1,493 |
Capital contributions from non-controlling interests | 292 | 11,504 |
Capital distribution to non-controlling interests | -3,367 | -1,984 |
Repurchase of shares of beneficial interest | -2,422 | 0 |
Net cash provided by financing activities | 8,978 | 88,032 |
Net decrease in cash and cash equivalents | -5,170 | -12,281 |
Cash and cash equivalents at beginning of period | 23,181 | 60,265 |
Cash and cash equivalents at end of period | 18,011 | 47,984 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 12,230 | 8,646 |
Taxes paid | 21 | 158 |
Acquisition of real estate through assumption of debt | 17,173 | 0 |
RBHTRB Newark Holdings LLC [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
Cash flows from investing activities: | ||
Net change in restricted cash | 6,162 | 9,138 |
Multi-Family Real Estate [Member] | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Gain on sale of real estate | -2,777 | |
Multi-Family Real Estate [Member] | Variable Interest Entity Primary Beneficiary [Member] | ||
Cash flows from investing activities: | ||
Net change in restricted cash | $2,774 | $0 |
Organization_and_Background
Organization and Background | 6 Months Ended |
Mar. 31, 2015 | |
Organization and Background [Abstract] | |
Organization and Background | Organization and Background |
BRT Realty Trust (“BRT” or the “Trust”) is a business trust organized in Massachusetts. BRT owns, operates and develops (i) multi‑family properties and (ii) commercial and mixed-use real estate assets. | |
The multi‑family properties are generally acquired with venture partners in transactions in which the Trust contributes 80% of the equity. | |
BRT conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes. |
Basis_of_Preparation
Basis of Preparation | 6 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation |
The accompanying interim unaudited consolidated financial statements as of March 31, 2015, and for the three and six months ended March 31, 2015 and 2014, reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the results for such interim periods. The results of operations for the three and six months ended March 31, 2015 and 2014, are not necessarily indicative of the results for the full year. The consolidated balance sheet as of September 30, 2014, has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. | |
The consolidated financial statements include the accounts and operations of BRT Realty Trust, its wholly owned subsidiaries, and its majority owned or controlled real estate entities and its interests in variable interest entities in which the Trust is determined to be the primary beneficiary. Material intercompany balances and transactions have been eliminated. | |
RBH‑TRB Newark Holdings LLC, referred to herein as the Newark Joint Venture, was determined to be a variable interest entity (“VIE”) because the total equity investment at risk is not sufficient to permit it to finance its activities without additional subordinated financial support by its equity holders. The Trust was determined to be the primary beneficiary of this joint venture because it has a controlling interest in that it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits from the entity that could potentially be significant to the entity. | |
The Trust’s consolidated joint ventures that own multi‑family properties, other than the joint venture which owns a multi-family property in Kennesaw, GA, were determined to be VIE’s because the voting rights of some equity investors are not proportional to their obligations to absorb the expected losses of the entity and their right to receive the expected residual returns. In addition, substantially all of the entity’s activities either involved or are conducted on behalf of an investor that has disproportionately fewer voting rights. It was determined that the Trust is the primary beneficiary of these joint ventures because it has a controlling interest in that it has the power to direct the activities that most significantly impact the economic performance and it has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the entity. | |
The joint venture that owns the Kennesaw, GA property was determined not to be a VIE but is consolidated because the Trust has a controlling financial interest in the entity due to its substantive participating rights. | |
With respect to its unconsolidated joint ventures, as (i) the Trust is primarily the managing member but does not exercise substantial operating control over these entities or the Trust is not the managing member and (ii) such entities are not VIE’s, the Trust has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. | |
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. |
Equity
Equity | 6 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Equity | Equity |
Common Share Dividend Distribution | |
During the quarter ended March 31, 2015, the Trust did not declare a dividend on its shares. | |
Restricted Shares | |
The Trust’s 2012 Incentive Plan, approved by its shareholders in March 2012, permits the Trust to grant stock options, restricted stock, restricted stock units, performance shares awards and any one or more of the foregoing, up to a maximum of 600,000 shares. In January 2015, the Trust granted 142,950 shares of restricted stock pursuant to this plan. As of March 31, 2015, 414,925 shares of unvested restricted stock are outstanding pursuant to this plan and 258,450 shares of unvested restricted stock are outstanding pursuant to the Trust’s 2009 equity incentive plan (the "Prior Plan"). No additional awards may be granted under the Prior Plan. The restricted shares granted under the 2012 Incentive Plan and the Prior Plan vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For accounting purposes, the restricted shares are not included in the outstanding shares shown on the consolidated balance sheets until they vest, but are included in the earnings per share computation. For the three months ended March 31, 2015 and 2014, the Trust recorded $ 238,000 and $214,000, respectively, of compensation expense. For the six months ended March 31, 2015 and 2014, the Trust recorded $444,000, and $394,000, respectively of compensation expense related to the amortization of unearned compensation. At March 31, 2015, $2,646,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods. The weighted average vesting period is 2.8 years. | |
Share Repurchase | |
In the six months ended March 31, 2015, the Trust purchased 345,081 of its shares of beneficial interest at a price of $7.02 for a total of $2,422,000. | |
Per Share Data | |
Basic loss per share was determined by dividing net loss applicable to common shareholders for the applicable period by the weighted average number of shares of beneficial interest (including unvested restricted stock), outstanding during such period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue shares of beneficial interest were exercised or converted into shares of beneficial interest or resulted in the issuance of shares of beneficial interest that share in the earnings of the Trust. Diluted earnings per share was determined by dividing net income applicable to common shareholders for the applicable period by the total of the weighted average number of shares of beneficial interest outstanding. The Trust does not have any dilutive securities outstanding. | |
Basic and diluted shares outstanding for the three months ended March 31, 2015 and 2014, were 14,086,761 and 14,294,022, respectively and for six months ended March 31, 2015 and 2014 were 14,165,826 and 14,227,734, respectively. |
Real_Estate_Properties
Real Estate Properties | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||
Real Estate Properties | Real Estate Properties | |||||||||||||||||||||||
A summary of real estate properties owned is as follows (dollars in thousands): | ||||||||||||||||||||||||
Additions (a) | Capitalized Costs and Improvements | Sales and other reductions | Depreciation and | |||||||||||||||||||||
30-Sep-14 | Amortization | 31-Mar-15 | ||||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||
Multi-family | $ | 511,866 | $ | 27,950 | $ | 17,938 | $ | (6,753 | ) | $ | (8,142 | ) | $ | 542,859 | ||||||||||
Commercial/mixed use (b) | 113,021 | — | 17,365 | — | (1,072 | ) | 129,314 | |||||||||||||||||
Land | 7,972 | — | — | — | — | 7,972 | ||||||||||||||||||
Shopping centers/Retail | 2,678 | — | 4 | — | (53 | ) | 2,629 | |||||||||||||||||
Co-op/condo apartments | 75 | — | — | (75 | ) | — | — | |||||||||||||||||
Total real estate properties | $ | 635,612 | $ | 27,950 | $ | 35,307 | $ | (6,828 | ) | $ | (9,267 | ) | $ | 682,774 | ||||||||||
_________________ | ||||||||||||||||||||||||
(a) | In December 2014, the Trust purchased a 276 unit multi-family property located in Pensacola, FL. The contract price was $27,950,000. The Trust assumed $17,173,000 in mortgage debt, provided equity of $11,380,000, incurred $295,000 in acquisition costs and $308,000 of closing adjustments. | |||||||||||||||||||||||
(b) | Represents the real estate assets of RBH‑TRB Newark Holdings LLC, a consolidated VIE (the "Newark Joint Venture") which owns operating and development properties in Newark, New Jersey. These properties contain a mix of office, retail space, charter schools and surface parking totaling approximately 690,000 square feet of commercial space and 61 residential apartment units (excluding 26,000 square feet of commercial space and 143 residential apartments currently under construction). Certain of these assets are subject to a mortgage with a principal balance of $19,500,000 held by the Trust, which is eliminated in consolidation. Several of the assets are also encumbered by other mortgages. | |||||||||||||||||||||||
During the six months ended March 31, 2015, the Trust increased its ownership interest in a (i) joint venture that owns two multi-family properties in Houston, TX from 80% to 91% by purchasing its partner's interest in the venture for $2,036,000; and (ii) joint venture that owns a multi-family property in Decatur, GA from 80% to 100% by purchasing its partner's interest in the venture for $1,850,000. The Trust incurred $153,000 in professional fees related to these transactions. | ||||||||||||||||||||||||
On February 5, 2015, the Trust sold its Lawrenceville, GA multi-family property for a gross sales price of $9,700,000. The Trust recognized a gain on the sale of $2,654,000, of which approximately $1,140,000 represents the non-controlling partner's share of the gain. | ||||||||||||||||||||||||
On April 9, 2015, a consolidated joint venture that owns a property in Houston, TX, entered into a contract to sell the property for $39,900,000, including the assumption of the existing mortgage debt of $24,100,000. The Trust anticipates that the transaction, which is subject to the satisfaction of customary closings conditions ( including the mortgage lender's approval of the purchaser's assumption of the mortgage debt) will close in the quarter ending September 30, 2015. The Trust estimates it will record a gain of approximately $5,300,000 on the sale. | ||||||||||||||||||||||||
Note 4 ‑ Real Estate Properties - continued | ||||||||||||||||||||||||
During the six months ended March 31, 2015, the Trust finalized the allocation of purchase prices on four properties purchased in the prior fiscal year. The following table summarizes the preliminary allocation of the purchase price of properties as recorded on September 30, 2014 and the finalized allocation of the purchase price, as adjusted, as of March 31, 2015 (dollars in thousands): | ||||||||||||||||||||||||
Preliminary Purchase Price Allocation | Adjustments | Finalized Purchase Price Allocation | ||||||||||||||||||||||
Land | $ | 21,324 | $ | (61 | ) | $ | 21,263 | |||||||||||||||||
Building and Improvements | 34,096 | (326 | ) | 33,770 | ||||||||||||||||||||
Acquisition-related intangible assets (in acquired lease intangibles, net) | — | 387 | 387 | |||||||||||||||||||||
Total Consideration | $ | 55,420 | $ | — | $ | 55,420 | ||||||||||||||||||
Debt_Obligations
Debt Obligations | 6 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt Obligations | ligations consist of the following (dollars in thousands): | |||||||||||
March 31, 2015 | September 30, 2014 | |||||||||||
Mortgages payable | $ | 516,519 | $ | 482,406 | ||||||||
Junior subordinated notes | 37,400 | 37,400 | ||||||||||
Total debt obligations | $ | 553,919 | $ | 519,806 | ||||||||
Mortgages Payable | ||||||||||||
The Trust assumed mortgage debt of $17,173,000 in connection with the Trust's purchase, in December 2014, of a multi-family property located in Pensacola, FL. The mortgage bears interest at 4.85%, is interest only for 12 months and matures in October 2018. | ||||||||||||
Contemporaneously with the Trust's increased ownership interest in a joint venture that owns multi-family properties in Houston, TX, the Trust refinanced a $6,494,000 adjustable rate mortgage and obtained a $7,500,000 fixed rate mortgage bearing interest at 4.19%. The new mortgage is interest only until November 2015 and matures in November 2024. | ||||||||||||
During the six months ended March 31, 2015, the Trust obtained additional mortgage financing as set forth in the table below (dollars in thousands): | ||||||||||||
Location | Closing Date | Additional Mortgage Debt | Interest Rate | Maturity Date | ||||||||
Melbourne, FL | 1/23/15 | $ | 1,907 | 4.17 | % | Apr-19 | ||||||
West Palm Beach, FL | 3/20/15 | $ | 4,000 | 4.35 | % | Apr-19 | ||||||
Note 5 – Debt Obligations - continued | ||||||||||||
Junior Subordinated Notes | ||||||||||||
At March 31, 2015 and September 30, 2014, the Trust's junior subordinated notes had an outstanding principal balance of $37,400,000. The interest rates on the outstanding notes is set forth in the table below: | ||||||||||||
Interest Period | Interest Rate | |||||||||||
August 1, 2012 through April 29, 2016 | 4.9 | % | ||||||||||
April 30, 2016 through April 30, 2036 | Libor + 2.00% | |||||||||||
Interest expense relating to the junior subordinated notes was $458,000 for each of the three months ended March 31, 2015 and 2014, and $916,000 for each of the six months ended March 31, 2015 and 2014. Amortization of the deferred costs, a component of interest expense, was $5,000 for each of the three months ended March 31, 2015 and 2014, and $10,000 for each of the six months ended March 31, 2015 and 2014. |
Deferred_Income_New_Markets_Ta
Deferred Income (New Markets Tax Credit Transaction) | 6 Months Ended |
Mar. 31, 2015 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Income (New Markets Tax Credit Transaction) | Deferred Income (New Markets Tax Credit Transaction) |
In connection with the Newark Joint Venture's Teachers Village project, on September 30, 2014, affiliates of JP Morgan Chase (“Chase”) contributed $5,100,000, and on September 12, 2012 and February 3, 2012, affiliates of Goldman Sachs (“ Goldman”) contributed $16,400,000 and $11,200,000, respectively, to special purpose subsidiaries of the Newark Joint Venture and these subsidiaries received the proceeds from the sale of New Markets Tax Credits (“NMTC”) for which the project qualified. Chase and Goldman are entitled to receive tax credits against their qualified investments in the project over seven years commencing as of the dates of their respective contributions. At the end of the seven years, the Newark Joint Venture subsidiaries have the option to acquire the special purpose entities for a nominal fee. | |
The NMTC program was enacted by Congress to serve low-income and distressed communities by providing investors with tax credit incentives to make capital investments in those communities. The program permits taxpayers to claim credits against their Federal income tax for up to 39% of qualified investments. | |
The deferred income on the Trust’s consolidated balance sheets at March 31, 2015 and September 30, 2014 in the amount of $30,990,000 represents the Chase and Goldman contributions, which are net of fees of the NMTC transactions and Newark Joint Venture financing transactions. These amounts will be recognized into income when the obligations to comply with the requirements of the NMTC program as set forth in the applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”), are satisfied. The failure of the Newark Joint Venture to comply with the requirements of the NMTC program may result in the reversal of the tax credit benefits and the related obligation of the Newark Joint Venture to indemnify the beneficiaries of such credits. The tax credits are subject to recapture for a seven year period as provided in the Code. | |
Costs incurred in structuring these transactions are deferred and will be recognized as an expense based on the maturities of the various mortgage financings, including the debt financing obtained by the Newark Joint Venture contemporaneously with the NMTC transactions. At March 31, 2015 and September 30, 2014, these costs totaled $10.2 million and $8.7 million, respectively, and are included in deferred costs on the consolidated balance sheets. | |
The Trust determined that the special purpose subsidiaries are VIEs. The VIEs ongoing activities, which include collecting and remitting interest and fees and NMTC compliance, were all considered in the design of the special purpose entities and are not anticipated to affect the economic performance during the life of the VIEs. | |
Management considered the obligation to deliver tax benefits, provide guarantees to Chase and Goldman and the Trust’s obligation to absorb the losses of the VIE. Management also considered Chase’s and Goldman’s lack of a material interest in the underlying economics of the project. Management concluded that the Newark Joint Venture (a consolidated subsidiary of the Trust) is the primary beneficiary and has therefore consolidated the VIEs. |
Segment_Reporting
Segment Reporting | 6 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting | Segment Reporting | ||||||||||||
Management determined that it operates in two reportable segments: a multi-family property segment which includes the ownership, operation and developing of its multi-family properties; and an other real estate segment which includes the ownership, operation and developing of the its other real estate assets and, in particular, the Newark Joint Venture. In the period ended March 31, 2014, the Trust also operated a third segment - the origination and servicing of a loan portfolio. The Trust no longer operates the third segment and the operations of the segment are reported as discontinued operations. | |||||||||||||
The following tables summarize our segment reporting for the periods indicated (dollars in thousands): | |||||||||||||
Three months ended March 31, 2015 | |||||||||||||
Multi-Family | Other | Total | |||||||||||
Real Estate | Real Estate | ||||||||||||
Revenues: | |||||||||||||
Rental and other revenues from real estate | $ | 18,795 | $ | 1,391 | $ | 20,186 | |||||||
Other income | — | 286 | 286 | ||||||||||
Total revenues | 18,795 | 1,677 | 20,472 | ||||||||||
Expenses: | |||||||||||||
Real estate operating expenses | 9,105 | 1,209 | 10,314 | ||||||||||
Interest expense | 4,686 | 1,179 | 5,865 | ||||||||||
Advisor’s fee, related party | 518 | 87 | 605 | ||||||||||
General and administrative | 1,632 | 104 | 1,736 | ||||||||||
Depreciation and amortization | 4,514 | 601 | 5,115 | ||||||||||
Total expenses | 20,455 | 3,180 | 23,635 | ||||||||||
Total revenues less total expenses | (1,660 | ) | (1,503 | ) | (3,163 | ) | |||||||
Gain on sale of real estate | 2,777 | — | 2,777 | ||||||||||
Net income (loss) | 1,117 | (1,503 | ) | (386 | ) | ||||||||
Plus: net (income) loss attributable to non-controlling interests | (1,212 | ) | 850 | (362 | ) | ||||||||
Net loss attributable to common shareholders | $ | (95 | ) | $ | (653 | ) | $ | (748 | ) | ||||
Segment assets at March 31, 2015 | $ | 583,438 | $ | 176,691 | $ | 760,129 | |||||||
Note 7 - Segment Reporting - continued | |||||||||||||
Three months ended March 31, 2014 | |||||||||||||
Multi-Family | Other | Total | |||||||||||
Real Estate | Real Estate | ||||||||||||
Revenues: | |||||||||||||
Rental and other revenues from real estate | $ | 13,718 | $ | 1,159 | $ | 14,877 | |||||||
Other income | — | 280 | 280 | ||||||||||
Total revenues | 13,718 | 1,439 | 15,157 | ||||||||||
Expenses: | |||||||||||||
Real estate operating expenses | 7,336 | 1,059 | 8,395 | ||||||||||
Interest expense | 3,759 | 1,190 | 4,949 | ||||||||||
Advisor’s fees, related party | 326 | 88 | 414 | ||||||||||
Property acquisition costs | 292 | — | 292 | ||||||||||
General and administrative | 1,485 | 111 | 1,596 | ||||||||||
Depreciation and amortization | 2,942 | 442 | 3,384 | ||||||||||
Total expenses | 16,140 | 2,890 | 19,030 | ||||||||||
Loss from continuing operations | (2,422 | ) | (1,451 | ) | (3,873 | ) | |||||||
Plus: net loss attributable to non-controlling interests | 81 | 838 | 919 | ||||||||||
Net loss attributable to common shareholders before reconciling items | $ | (2,341 | ) | $ | (613 | ) | $ | (2,954 | ) | ||||
Reconciling adjustments: | |||||||||||||
Discontinued operations | 362 | ||||||||||||
Net loss attributable to common shareholders | $ | (2,592 | ) | ||||||||||
Segment assets at March 31, 2014 (a) | $ | 397,718 | $ | 176,634 | $ | 574,352 | |||||||
_______________________________ | |||||||||||||
(a) Excludes $59,637 of assets related to discontinued operations. | |||||||||||||
Note 7 – Segment Reporting - continued | |||||||||||||
Six Months Ended March 31, 2015 | |||||||||||||
Multi-Family | Other | ||||||||||||
Real Estate | Real Estate | Total | |||||||||||
Revenues: | |||||||||||||
Rental and other revenues from real estate | $ | 36,956 | $ | 2,711 | $ | 39,667 | |||||||
Other income | — | 582 | 582 | ||||||||||
Total revenues | 36,956 | 3,293 | 40,249 | ||||||||||
Expenses: | |||||||||||||
Real estate operating expenses | 18,320 | 2,403 | 20,723 | ||||||||||
Interest expense | 9,395 | 2,671 | 12,066 | ||||||||||
Advisor’s fee, related party | 1,003 | 186 | 1,189 | ||||||||||
Property acquisition costs | 295 | — | 295 | ||||||||||
General and administrative | 3,190 | 203 | 3,393 | ||||||||||
Depreciation and amortization | 8,144 | 1,129 | 9,273 | ||||||||||
Total expenses | 40,347 | 6,592 | 46,939 | ||||||||||
Total revenues less total expenses | (3,391 | ) | (3,299 | ) | (6,690 | ) | |||||||
Gain on sale of real estate | 2,777 | — | 2,777 | ||||||||||
Net loss | (614 | ) | (3,299 | ) | (3,913 | ) | |||||||
Plus: net (income) loss attributable to non-controlling interests | (1,015 | ) | 1,682 | 667 | |||||||||
Net (loss) income attributable to common shareholders | $ | (1,629 | ) | $ | (1,617 | ) | $ | (3,246 | ) | ||||
Segment assets at March 31, 2015 | $ | 583,438 | $ | 176,691 | $ | 760,129 | |||||||
Note 7 – Segment Reporting - continued | |||||||||||||
Six Months Ended March 31, 2014 | |||||||||||||
Multi-Family | Other | ||||||||||||
Real Estate | Real Estate | Total | |||||||||||
Revenues: | |||||||||||||
Rental and other revenues from real estate | $ | 26,325 | $ | 2,359 | $ | 28,684 | |||||||
Other income | — | 551 | 551 | ||||||||||
Total revenues | 26,325 | 2,910 | 29,235 | ||||||||||
Expenses: | |||||||||||||
Real estate operating expenses | 13,896 | 2,133 | 16,029 | ||||||||||
Interest expense | 7,244 | 2,389 | 9,633 | ||||||||||
Advisor’s fees, related party | 619 | 157 | 776 | ||||||||||
Property acquisition costs | 1,528 | — | 1,528 | ||||||||||
General and administrative | 2,942 | 228 | 3,170 | ||||||||||
Depreciation and amortization | 5,706 | 868 | 6,574 | ||||||||||
Total expenses | 31,935 | 5,775 | 37,710 | ||||||||||
Loss from continuing operations | (5,610 | ) | (2,865 | ) | (8,475 | ) | |||||||
Plus: net loss attributable to non-controlling interests | 268 | 1,669 | 1,937 | ||||||||||
Net loss attributable to common shareholders before reconciling items | $ | (5,342 | ) | $ | (1,196 | ) | $ | (6,538 | ) | ||||
Reconciling adjustments: | |||||||||||||
Discontinued operations | 1,213 | ||||||||||||
Net loss attributable to common shareholders | $ | (5,325 | ) | ||||||||||
Segment assets at March 31, 2014 (a) | $ | 397,718 | $ | 176,634 | $ | 574,352 | |||||||
_______________________________ | |||||||||||||
(a) Excludes $59,637 of assets related to discontinued operations. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||
Financial Instruments Not Measured at Fair Value | |||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments that are not recorded at fair value on the consolidated balance sheets: | |||||||||||
Cash and cash equivalents, restricted cash, accounts receivable (included in other assets), accounts payable and accrued liabilities: The carrying amounts reported in the consolidated balance sheets for these instruments approximate their fair value due to the short term nature of these accounts. | |||||||||||
Junior subordinated notes: At March 31, 2015 and 2014, the estimated fair value of the Trust’s junior subordinated notes is lower than their carrying value by approximately $21,000,000 and $24,300,000 based on a market interest rate of 6.15% and 6.84%, respectively. | |||||||||||
Mortgages payable: At March 31, 2015, the estimated fair value of the Trust’s mortgages payable is greater than their carrying value by approximately $7,000,000 assuming market interest rates between 2.79% and 8.79% and | |||||||||||
at March 31, 2014, the estimated fair value of the Trust's mortgages payable was lower than their carrying value by approximately $12,000,000 assuming market interest rates between 2.42% and 9.58% . Market interest rates were determined using rates which the Trust believes reflects institutional lender yield requirements. | |||||||||||
Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value assumptions. | |||||||||||
Financial Instruments Measured at Fair Value | |||||||||||
The Trust’s fair value measurements are 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, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. The Trust does not currently own any financial instruments that are classified as Level 3. | |||||||||||
Set forth below is information regarding the Trust’s financial liabilities measured at fair value as of March 31, 2015 (dollars in thousands): | |||||||||||
Carrying and Fair Value | Fair Value Measurements | ||||||||||
Using Fair Value Hierarchy | |||||||||||
Level 1 | Level 2 | ||||||||||
Financial Liabilities: | |||||||||||
Interest rate swap | $ | 56 | — | $ | 56 | ||||||
Derivative financial instrument: Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. At March 31, 2015, this derivative is included in other accounts payable and accrued liabilities on the consolidated balance sheet. | |||||||||||
Note 8 – Fair Value of Financial Instruments - continued | |||||||||||
Although the Trust has determined that the majority of the inputs used to value its derivative fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with it utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparty. As of March 31, 2015, the Trust assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and determined that the credit valuation adjustments are not significant to the overall valuation of its derivative. As a result, the Trust determined that its derivative valuation is classified in Level 2 of the fair value hierarchy. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | |||||||||||||||
Cash Flow Hedges of Interest Rate Risk | ||||||||||||||||
The Trust’s objective in using interest rate derivatives is to add stability to variable rate interest payments and expense by managing its exposure to interest rate movements. To accomplish this objective, the Trust primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt | ||||||||||||||||
of variable amounts from a counterparty in exchange for the Trust making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. | ||||||||||||||||
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) on our consolidated balance sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. | ||||||||||||||||
As of March 31, 2015, the Trust had the following outstanding interest rate derivative that was designated as a cash flow hedge of interest rate risk (dollars in thousands): | ||||||||||||||||
Interest Rate Derivative | Notional | Rate | Maturity | |||||||||||||
Interest rate swap | $ | 1,718 | 5.25 | % | 1-Apr-22 | |||||||||||
The table below presents the fair value of the Trust’s derivative financial instrument as well as its classification on the consolidated balance sheets as of the dates indicated (amounts in thousands): | ||||||||||||||||
Derivatives as of: | ||||||||||||||||
March 31, 2015 | 30-Sep-14 | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
Accounts payable and accrued liabilities | $ | 56 | Accounts payable and accrued liabilities | $ | 8 | |||||||||||
As of March 31, 2015, the Trust did not have any derivative instruments that were considered to be ineffective and does not use derivative instruments for trading or speculative purposes. | ||||||||||||||||
Note 9 – Derivative Financial Instruments - continued | ||||||||||||||||
The following table presents the effect of the Trust’s interest rate swap on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Amount of loss recognized on derivative in Other Comprehensive Income | $ | (28 | ) | $ | (25 | ) | $ | (60 | ) | $ | (7 | ) | ||||
Amount of loss reclassified from Accumulated | $ | (8 | ) | $ | (8 | ) | $ | (17 | ) | $ | (17 | ) | ||||
Other Comprehensive Income into Interest Expense | ||||||||||||||||
No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Trust’s cash flow hedges during the three and six months ended March 31, 2015 and March 31, 2014. The Trust estimates an additional $30,000 will be reclassified from other comprehensive income (loss) as an increase to interest expense over the next twelve months. | ||||||||||||||||
Credit-risk-related Contingent Features | ||||||||||||||||
The agreement between the Trust and its derivatives counterparty provides that if the Trust defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Trust could be declared in default on its derivative obligation. | ||||||||||||||||
As of March 31, 2015, the fair value of the derivative in a net liability position, which includes accrued interest, but excludes any adjustment for nonperformance risk related to this agreement, was $56,000. As of March 31, 2015, the Trust has not posted any collateral related to this agreement. If the Trust had been in breach of this agreement at March 31, 2015, it could have been required to settle its obligations thereunder at its termination value of $56,000. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Subsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of March 31, 2015 that warrant additional disclosure, have been included in the notes to the consolidated financial statements |
New_Accounting_Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03 Interest - Imputation of Interest, which amends the balance sheet presentation for debt issuance costs. Under the amended guidance, a company will present unamortized debt issuance costs as a direct deduction from the carrying amount of that debt liability. The guidance is to be applied on a retrospective basis, and is effective for annual reporting periods beginning after December 15, 2015, with early adoption being permitted. The Trust is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which simplifies income statement presentation by eliminating extraordinary items from US GAAP. The ASU retains current presentation and disclosure requirements for an event or transaction that is of an unusual nature or of a type that indicates infrequency of occurrence. Transactions that meet both criteria would now also follow such presentation and disclosure requirements. The ASU is effective in annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted; however, adoption must occur at the beginning of an annual period. An entity can elect to apply the guidance prospectively or retrospectively. The Trust elected early adoption for the fiscal year beginning October 1, 2014, and its adoption did not have a material effect on its consolidated financial statements. |
Basis_of_Preparation_Policies
Basis of Preparation (Policies) | 6 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03 Interest - Imputation of Interest, which amends the balance sheet presentation for debt issuance costs. Under the amended guidance, a company will present unamortized debt issuance costs as a direct deduction from the carrying amount of that debt liability. The guidance is to be applied on a retrospective basis, and is effective for annual reporting periods beginning after December 15, 2015, with early adoption being permitted. The Trust is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which simplifies income statement presentation by eliminating extraordinary items from US GAAP. The ASU retains current presentation and disclosure requirements for an event or transaction that is of an unusual nature or of a type that indicates infrequency of occurrence. Transactions that meet both criteria would now also follow such presentation and disclosure requirements. The ASU is effective in annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted; however, adoption must occur at the beginning of an annual period. An entity can elect to apply the guidance prospectively or retrospectively. The Trust elected early adoption for the fiscal year beginning October 1, 2014, and its adoption did not have a material effect on its consolidated financial statements. | |
Basis of Preparation | The accompanying interim unaudited consolidated financial statements as of March 31, 2015, and for the three and six months ended March 31, 2015 and 2014, reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the results for such interim periods. The results of operations for the three and six months ended March 31, 2015 and 2014, are not necessarily indicative of the results for the full year. The consolidated balance sheet as of September 30, 2014, has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. |
Consolidated Financial Statements and Variable Interest Entities | The consolidated financial statements include the accounts and operations of BRT Realty Trust, its wholly owned subsidiaries, and its majority owned or controlled real estate entities and its interests in variable interest entities in which the Trust is determined to be the primary beneficiary. Material intercompany balances and transactions have been eliminated. |
RBH‑TRB Newark Holdings LLC, referred to herein as the Newark Joint Venture, was determined to be a variable interest entity (“VIE”) because the total equity investment at risk is not sufficient to permit it to finance its activities without additional subordinated financial support by its equity holders. The Trust was determined to be the primary beneficiary of this joint venture because it has a controlling interest in that it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits from the entity that could potentially be significant to the entity. | |
The Trust’s consolidated joint ventures that own multi‑family properties, other than the joint venture which owns a multi-family property in Kennesaw, GA, were determined to be VIE’s because the voting rights of some equity investors are not proportional to their obligations to absorb the expected losses of the entity and their right to receive the expected residual returns. In addition, substantially all of the entity’s activities either involved or are conducted on behalf of an investor that has disproportionately fewer voting rights. It was determined that the Trust is the primary beneficiary of these joint ventures because it has a controlling interest in that it has the power to direct the activities that most significantly impact the economic performance and it has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the entity. | |
The joint venture that owns the Kennesaw, GA property was determined not to be a VIE but is consolidated because the Trust has a controlling financial interest in the entity due to its substantive participating rights. | |
With respect to its unconsolidated joint ventures, as (i) the Trust is primarily the managing member but does not exercise substantial operating control over these entities or the Trust is not the managing member and (ii) such entities are not VIE’s, the Trust has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. | |
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. |
Real_Estate_Properties_Tables
Real Estate Properties (Tables) | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||
Summary of real estate properties owned | A summary of real estate properties owned is as follows (dollars in thousands): | |||||||||||||||||||||||
Additions (a) | Capitalized Costs and Improvements | Sales and other reductions | Depreciation and | |||||||||||||||||||||
30-Sep-14 | Amortization | 31-Mar-15 | ||||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||
Multi-family | $ | 511,866 | $ | 27,950 | $ | 17,938 | $ | (6,753 | ) | $ | (8,142 | ) | $ | 542,859 | ||||||||||
Commercial/mixed use (b) | 113,021 | — | 17,365 | — | (1,072 | ) | 129,314 | |||||||||||||||||
Land | 7,972 | — | — | — | — | 7,972 | ||||||||||||||||||
Shopping centers/Retail | 2,678 | — | 4 | — | (53 | ) | 2,629 | |||||||||||||||||
Co-op/condo apartments | 75 | — | — | (75 | ) | — | — | |||||||||||||||||
Total real estate properties | $ | 635,612 | $ | 27,950 | $ | 35,307 | $ | (6,828 | ) | $ | (9,267 | ) | $ | 682,774 | ||||||||||
_________________ | ||||||||||||||||||||||||
(a) | In December 2014, the Trust purchased a 276 unit multi-family property located in Pensacola, FL. The contract price was $27,950,000. The Trust assumed $17,173,000 in mortgage debt, provided equity of $11,380,000, incurred $295,000 in acquisition costs and $308,000 of closing adjustments. | |||||||||||||||||||||||
(b) | Represents the real estate assets of RBH‑TRB Newark Holdings LLC, a consolidated VIE (the "Newark Joint Venture") which owns operating and development properties in Newark, New Jersey. These properties contain a mix of office, retail space, charter schools and surface parking totaling approximately 690,000 square feet of commercial space and 61 residential apartment units (excluding 26,000 square feet of commercial space and 143 residential apartments currently under construction). Certain of these assets are subject to a mortgage with a principal balance of $19,500,000 held by the Trust, which is eliminated in consolidation. Several of the assets are also encumbered by other mortgages. | |||||||||||||||||||||||
Schedule of real estate properties purchased | The following table summarizes the preliminary allocation of the purchase price of properties as recorded on September 30, 2014 and the finalized allocation of the purchase price, as adjusted, as of March 31, 2015 (dollars in thousands): | |||||||||||||||||||||||
Preliminary Purchase Price Allocation | Adjustments | Finalized Purchase Price Allocation | ||||||||||||||||||||||
Land | $ | 21,324 | $ | (61 | ) | $ | 21,263 | |||||||||||||||||
Building and Improvements | 34,096 | (326 | ) | 33,770 | ||||||||||||||||||||
Acquisition-related intangible assets (in acquired lease intangibles, net) | — | 387 | 387 | |||||||||||||||||||||
Total Consideration | $ | 55,420 | $ | — | $ | 55,420 | ||||||||||||||||||
Debt_Obligations_Tables
Debt Obligations (Tables) | 6 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of debt obligations | Debt obligations consist of the following (dollars in thousands): | |||||||||||
March 31, 2015 | September 30, 2014 | |||||||||||
Mortgages payable | $ | 516,519 | $ | 482,406 | ||||||||
Junior subordinated notes | 37,400 | 37,400 | ||||||||||
Total debt obligations | $ | 553,919 | $ | 519,806 | ||||||||
Schedule of debt information | During the six months ended March 31, 2015, the Trust obtained additional mortgage financing as set forth in the table below (dollars in thousands): | |||||||||||
Location | Closing Date | Additional Mortgage Debt | Interest Rate | Maturity Date | ||||||||
Melbourne, FL | 1/23/15 | $ | 1,907 | 4.17 | % | Apr-19 | ||||||
West Palm Beach, FL | 3/20/15 | $ | 4,000 | 4.35 | % | Apr-19 | ||||||
The interest rates on the outstanding notes is set forth in the table below: | ||||||||||||
Interest Period | Interest Rate | |||||||||||
August 1, 2012 through April 29, 2016 | 4.9 | % | ||||||||||
April 30, 2016 through April 30, 2036 | Libor + 2.00% | |||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Summary of segment reporting | The following tables summarize our segment reporting for the periods indicated (dollars in thousands): | ||||||||||||
Three months ended March 31, 2015 | |||||||||||||
Multi-Family | Other | Total | |||||||||||
Real Estate | Real Estate | ||||||||||||
Revenues: | |||||||||||||
Rental and other revenues from real estate | $ | 18,795 | $ | 1,391 | $ | 20,186 | |||||||
Other income | — | 286 | 286 | ||||||||||
Total revenues | 18,795 | 1,677 | 20,472 | ||||||||||
Expenses: | |||||||||||||
Real estate operating expenses | 9,105 | 1,209 | 10,314 | ||||||||||
Interest expense | 4,686 | 1,179 | 5,865 | ||||||||||
Advisor’s fee, related party | 518 | 87 | 605 | ||||||||||
General and administrative | 1,632 | 104 | 1,736 | ||||||||||
Depreciation and amortization | 4,514 | 601 | 5,115 | ||||||||||
Total expenses | 20,455 | 3,180 | 23,635 | ||||||||||
Total revenues less total expenses | (1,660 | ) | (1,503 | ) | (3,163 | ) | |||||||
Gain on sale of real estate | 2,777 | — | 2,777 | ||||||||||
Net income (loss) | 1,117 | (1,503 | ) | (386 | ) | ||||||||
Plus: net (income) loss attributable to non-controlling interests | (1,212 | ) | 850 | (362 | ) | ||||||||
Net loss attributable to common shareholders | $ | (95 | ) | $ | (653 | ) | $ | (748 | ) | ||||
Segment assets at March 31, 2015 | $ | 583,438 | $ | 176,691 | $ | 760,129 | |||||||
Note 7 - Segment Reporting - continued | |||||||||||||
Three months ended March 31, 2014 | |||||||||||||
Multi-Family | Other | Total | |||||||||||
Real Estate | Real Estate | ||||||||||||
Revenues: | |||||||||||||
Rental and other revenues from real estate | $ | 13,718 | $ | 1,159 | $ | 14,877 | |||||||
Other income | — | 280 | 280 | ||||||||||
Total revenues | 13,718 | 1,439 | 15,157 | ||||||||||
Expenses: | |||||||||||||
Real estate operating expenses | 7,336 | 1,059 | 8,395 | ||||||||||
Interest expense | 3,759 | 1,190 | 4,949 | ||||||||||
Advisor’s fees, related party | 326 | 88 | 414 | ||||||||||
Property acquisition costs | 292 | — | 292 | ||||||||||
General and administrative | 1,485 | 111 | 1,596 | ||||||||||
Depreciation and amortization | 2,942 | 442 | 3,384 | ||||||||||
Total expenses | 16,140 | 2,890 | 19,030 | ||||||||||
Loss from continuing operations | (2,422 | ) | (1,451 | ) | (3,873 | ) | |||||||
Plus: net loss attributable to non-controlling interests | 81 | 838 | 919 | ||||||||||
Net loss attributable to common shareholders before reconciling items | $ | (2,341 | ) | $ | (613 | ) | $ | (2,954 | ) | ||||
Reconciling adjustments: | |||||||||||||
Discontinued operations | 362 | ||||||||||||
Net loss attributable to common shareholders | $ | (2,592 | ) | ||||||||||
Segment assets at March 31, 2014 (a) | $ | 397,718 | $ | 176,634 | $ | 574,352 | |||||||
_______________________________ | |||||||||||||
(a) Excludes $59,637 of assets related to discontinued operations. | |||||||||||||
Note 7 – Segment Reporting - continued | |||||||||||||
Six Months Ended March 31, 2015 | |||||||||||||
Multi-Family | Other | ||||||||||||
Real Estate | Real Estate | Total | |||||||||||
Revenues: | |||||||||||||
Rental and other revenues from real estate | $ | 36,956 | $ | 2,711 | $ | 39,667 | |||||||
Other income | — | 582 | 582 | ||||||||||
Total revenues | 36,956 | 3,293 | 40,249 | ||||||||||
Expenses: | |||||||||||||
Real estate operating expenses | 18,320 | 2,403 | 20,723 | ||||||||||
Interest expense | 9,395 | 2,671 | 12,066 | ||||||||||
Advisor’s fee, related party | 1,003 | 186 | 1,189 | ||||||||||
Property acquisition costs | 295 | — | 295 | ||||||||||
General and administrative | 3,190 | 203 | 3,393 | ||||||||||
Depreciation and amortization | 8,144 | 1,129 | 9,273 | ||||||||||
Total expenses | 40,347 | 6,592 | 46,939 | ||||||||||
Total revenues less total expenses | (3,391 | ) | (3,299 | ) | (6,690 | ) | |||||||
Gain on sale of real estate | 2,777 | — | 2,777 | ||||||||||
Net loss | (614 | ) | (3,299 | ) | (3,913 | ) | |||||||
Plus: net (income) loss attributable to non-controlling interests | (1,015 | ) | 1,682 | 667 | |||||||||
Net (loss) income attributable to common shareholders | $ | (1,629 | ) | $ | (1,617 | ) | $ | (3,246 | ) | ||||
Segment assets at March 31, 2015 | $ | 583,438 | $ | 176,691 | $ | 760,129 | |||||||
Note 7 – Segment Reporting - continued | |||||||||||||
Six Months Ended March 31, 2014 | |||||||||||||
Multi-Family | Other | ||||||||||||
Real Estate | Real Estate | Total | |||||||||||
Revenues: | |||||||||||||
Rental and other revenues from real estate | $ | 26,325 | $ | 2,359 | $ | 28,684 | |||||||
Other income | — | 551 | 551 | ||||||||||
Total revenues | 26,325 | 2,910 | 29,235 | ||||||||||
Expenses: | |||||||||||||
Real estate operating expenses | 13,896 | 2,133 | 16,029 | ||||||||||
Interest expense | 7,244 | 2,389 | 9,633 | ||||||||||
Advisor’s fees, related party | 619 | 157 | 776 | ||||||||||
Property acquisition costs | 1,528 | — | 1,528 | ||||||||||
General and administrative | 2,942 | 228 | 3,170 | ||||||||||
Depreciation and amortization | 5,706 | 868 | 6,574 | ||||||||||
Total expenses | 31,935 | 5,775 | 37,710 | ||||||||||
Loss from continuing operations | (5,610 | ) | (2,865 | ) | (8,475 | ) | |||||||
Plus: net loss attributable to non-controlling interests | 268 | 1,669 | 1,937 | ||||||||||
Net loss attributable to common shareholders before reconciling items | $ | (5,342 | ) | $ | (1,196 | ) | $ | (6,538 | ) | ||||
Reconciling adjustments: | |||||||||||||
Discontinued operations | 1,213 | ||||||||||||
Net loss attributable to common shareholders | $ | (5,325 | ) | ||||||||||
Segment assets at March 31, 2014 (a) | $ | 397,718 | $ | 176,634 | $ | 574,352 | |||||||
_______________________________ | |||||||||||||
(a) Excludes $59,637 of assets related to discontinued operations. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Schedule of financial assets measured at fair value | Set forth below is information regarding the Trust’s financial liabilities measured at fair value as of March 31, 2015 (dollars in thousands): | ||||||||||
Carrying and Fair Value | Fair Value Measurements | ||||||||||
Using Fair Value Hierarchy | |||||||||||
Level 1 | Level 2 | ||||||||||
Financial Liabilities: | |||||||||||
Interest rate swap | $ | 56 | — | $ | 56 | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Schedule of outstanding interest rate derivatives | As of March 31, 2015, the Trust had the following outstanding interest rate derivative that was designated as a cash flow hedge of interest rate risk (dollars in thousands): | |||||||||||||||
Interest Rate Derivative | Notional | Rate | Maturity | |||||||||||||
Interest rate swap | $ | 1,718 | 5.25 | % | 1-Apr-22 | |||||||||||
Schedule of fair value of derivative financial instruments and classification on consolidated balance sheets | The table below presents the fair value of the Trust’s derivative financial instrument as well as its classification on the consolidated balance sheets as of the dates indicated (amounts in thousands): | |||||||||||||||
Derivatives as of: | ||||||||||||||||
March 31, 2015 | 30-Sep-14 | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
Accounts payable and accrued liabilities | $ | 56 | Accounts payable and accrued liabilities | $ | 8 | |||||||||||
Schedule of effect of derivative financial instrument on consolidated statements of comprehensive (loss) income | The following table presents the effect of the Trust’s interest rate swap on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Amount of loss recognized on derivative in Other Comprehensive Income | $ | (28 | ) | $ | (25 | ) | $ | (60 | ) | $ | (7 | ) | ||||
Amount of loss reclassified from Accumulated | $ | (8 | ) | $ | (8 | ) | $ | (17 | ) | $ | (17 | ) | ||||
Other Comprehensive Income into Interest Expense |
Organization_and_Background_De
Organization and Background (Details) (Corporate Joint Venture [Member], Property Acquisition [Member], Apartment Building [Member], Maximum [Member]) | 6 Months Ended |
Mar. 31, 2015 | |
Corporate Joint Venture [Member] | Property Acquisition [Member] | Apartment Building [Member] | Maximum [Member] | |
Organization, background and significant accounting policies | |
Equity contribution in each transaction (as a percent) | 80.00% |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 |
Restricted Shares | |||||
Stock repurchased (shares) | 345,081 | ||||
Price per share | $7.02 | ||||
Value of shares repurchased and retired | $2,422 | ||||
Per Share Data | |||||
Basic and diluted shares outstanding | 14,086,761 | 14,294,022 | 14,165,826 | 14,227,734 | |
Restricted Stock [Member] | |||||
Restricted Shares | |||||
Compensation expense | 238 | 214 | 444 | 394 | |
Unearned compensation | 2,646 | $2,646 | |||
Remaining weighted average vesting period | 2 years 9 months 18 days | ||||
Stock Incentive Plan2012 [Member] | |||||
Restricted Shares | |||||
Shares authorized for issuance (in shares) | 600,000 | 600,000 | |||
Stock Incentive Plan2012 [Member] | Restricted Stock [Member] | |||||
Restricted Shares | |||||
Issued (in shares) | 142,950 | ||||
Shares outstanding (in shares) | 414,925 | 414,925 | |||
Vesting period for shares issued | 5 years | ||||
Equity Incentive Plan2003 And Equity Incentive Plan2009 [Member] | |||||
Restricted Shares | |||||
Number of additional awards available for grant (shares) | 0 | 0 | |||
Equity Incentive Plan2003 And Equity Incentive Plan2009 [Member] | Restricted Stock [Member] | |||||
Restricted Shares | |||||
Shares outstanding (in shares) | 258,450 | 258,450 | |||
Vesting period for shares issued | 5 years |
Real_Estate_Properties_Details
Real Estate Properties (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Balance at the beginning of the period | $635,612,000 | ||||
Additions | 27,950,000 | ||||
Capitalized Costs and Improvements | 35,307,000 | ||||
Sales and other reductions | -6,828,000 | ||||
Depreciation and Amortization | -9,267,000 | ||||
Balance at the end of the period | 682,774,000 | 682,774,000 | |||
Property acquisition costs | 0 | 292,000 | 295,000 | 1,528,000 | |
Apartment Building [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Balance at the beginning of the period | 511,866,000 | ||||
Additions | 27,950,000 | ||||
Capitalized Costs and Improvements | 17,938,000 | ||||
Sales and other reductions | -6,753,000 | ||||
Depreciation and Amortization | -8,142,000 | ||||
Balance at the end of the period | 542,859,000 | 542,859,000 | |||
Commercial Mixed Use Property [Member] | Variable Interest Entity Primary Beneficiary [Member] | RBHTRB Newark Holdings LLC [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Balance at the beginning of the period | 113,021,000 | ||||
Additions | 0 | ||||
Capitalized Costs and Improvements | 17,365,000 | ||||
Sales and other reductions | 0 | ||||
Depreciation and Amortization | -1,072,000 | ||||
Balance at the end of the period | 129,314,000 | 129,314,000 | |||
Land [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Balance at the beginning of the period | 7,972,000 | ||||
Additions | 0 | ||||
Capitalized Costs and Improvements | 0 | ||||
Sales and other reductions | 0 | ||||
Depreciation and Amortization | 0 | ||||
Balance at the end of the period | 7,972,000 | 7,972,000 | |||
Retail Site [Member] | Variable Interest Entity Primary Beneficiary [Member] | RBHTRB Newark Holdings LLC [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Balance at the beginning of the period | 2,678,000 | ||||
Additions | 0 | ||||
Capitalized Costs and Improvements | 4,000 | ||||
Sales and other reductions | 0 | ||||
Depreciation and Amortization | -53,000 | ||||
Balance at the end of the period | 2,629,000 | 2,629,000 | |||
Co Op Condominium Apartment Building [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Balance at the beginning of the period | 75,000 | ||||
Additions | 0 | ||||
Capitalized Costs and Improvements | 0 | ||||
Sales and other reductions | -75,000 | ||||
Depreciation and Amortization | 0 | ||||
Balance at the end of the period | 0 | 0 | |||
Newark NJ [Member] | Commercial Mixed Use Property [Member] | Variable Interest Entity Primary Beneficiary [Member] | RBHTRB Newark Holdings LLC [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Number of units (properties) | 61 | 61 | |||
Areas of real estate (in sqft) | 690,000 | 690,000 | |||
Mortgages [Member] | Pensacola, FL [Member] | Property Acquisition [Member] | Apartment Building [Member] | Affiliated Entity [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Number of units (properties) | 276 | ||||
Contract purchase price | 27,950,000 | ||||
Debt note | 17,173,000 | ||||
Payments to acquire interest in property | 11,380,000 | ||||
Property acquisition costs | 295,000 | ||||
Closing adjustments | 308,000 | ||||
Mortgages [Member] | Newark NJ [Member] | Commercial Mixed Use Property [Member] | Variable Interest Entity Primary Beneficiary [Member] | RBHTRB Newark Holdings LLC [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Notes payable | $19,500,000 | $19,500,000 | |||
Construction in Progress [Member] | Newark NJ [Member] | Commercial Mixed Use Property [Member] | Variable Interest Entity Primary Beneficiary [Member] | RBHTRB Newark Holdings LLC [Member] | |||||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||||
Number of units (properties) | 143 | 143 | |||
Areas of real estate (in sqft) | 26,000 | 26,000 |
Real_Estate_Properties_Additio
Real Estate Properties - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Feb. 05, 2015 | Apr. 09, 2015 |
Real Estate Properties | |||||||
Proceeds from the sale of real estate properties | $9,605 | $0 | |||||
Gain on sale of real estate | 2,777 | 0 | 2,777 | 0 | |||
Corporate Joint Venture [Member] | Houston TX [Member] | |||||||
Real Estate Properties | |||||||
Interest in joint venture (as a percent) | 91.00% | 80.00% | |||||
Payments to Acquire Interest in Joint Venture | 2,036 | ||||||
Corporate Joint Venture [Member] | Decatur, GA [Member] | |||||||
Real Estate Properties | |||||||
Interest in joint venture (as a percent) | 100.00% | 80.00% | |||||
Payments to Acquire Interest in Joint Venture | 1,850 | ||||||
Corporate Joint Venture [Member] | Houston, TX and Decatur, GA [Member] | |||||||
Real Estate Properties | |||||||
Professional fees | 153 | ||||||
Apartment Building [Member] | Lawrenceville, GA [Member] | |||||||
Real Estate Properties | |||||||
Proceeds from the sale of real estate properties | 9,700 | ||||||
Gain on sale of real estate | 2,654 | ||||||
Noncontrolling Interest [Member] | Apartment Building [Member] | Lawrenceville, GA [Member] | |||||||
Real Estate Properties | |||||||
Gain on sale of real estate | 1,140 | ||||||
Subsequent Event [Member] | Apartment Building [Member] | Corporate Joint Venture [Member] | Houston TX [Member] | |||||||
Real Estate Properties | |||||||
Proceeds from the sale of real estate properties | 39,900 | ||||||
Gain on sale of real estate | $5,300 |
Real_Estate_Properties_Propert
Real Estate Properties - Property Acquisition, Purchase Price Allocation (Details) (Series Of Real Estate Property Acquisitions Year2014 [Member], USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Allocation of purchase prices of assets acquired and liabilities assumed | |
Total consideration | $55,420 |
Adjustments to preliminary allocations of purchase price of properties | |
Total consideration | 0 |
Scenario, Previously Reported [Member] | |
Allocation of purchase prices of assets acquired and liabilities assumed | |
Total consideration | 55,420 |
Building and Building Improvements [Member] | |
Allocation of purchase prices of assets acquired and liabilities assumed | |
Real estate property | 33,770 |
Adjustments to preliminary allocations of purchase price of properties | |
Real estate property | -326 |
Building and Building Improvements [Member] | Scenario, Previously Reported [Member] | |
Allocation of purchase prices of assets acquired and liabilities assumed | |
Real estate property | 34,096 |
Land [Member] | |
Allocation of purchase prices of assets acquired and liabilities assumed | |
Real estate property | 21,263 |
Adjustments to preliminary allocations of purchase price of properties | |
Real estate property | -61 |
Land [Member] | Scenario, Previously Reported [Member] | |
Allocation of purchase prices of assets acquired and liabilities assumed | |
Real estate property | 21,324 |
Leases Acquired In Place Including Market Adjustment, Intangible Assets, Gross [Member] | |
Allocation of purchase prices of assets acquired and liabilities assumed | |
Acquisition related intangibles | 387 |
Adjustments to preliminary allocations of purchase price of properties | |
Acquisition related intangibles | 387 |
Leases Acquired In Place Including Market Adjustment, Intangible Assets, Gross [Member] | Scenario, Previously Reported [Member] | |
Allocation of purchase prices of assets acquired and liabilities assumed | |
Acquisition related intangibles | $0 |
Debt_Obligations_Details
Debt Obligations (Details) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Debt Obligations | ||
Total debt obligations | $553,919 | $519,806 |
Mortgages [Member] | ||
Debt Obligations | ||
Total debt obligations | 516,519 | 482,406 |
Junior Subordinated Debt [Member] | ||
Debt Obligations | ||
Total debt obligations | $37,400 | $37,400 |
Debt_Obligations_Mortgage_Paya
Debt Obligations - Mortgage Payable (Details) (Mortgages [Member], USD $) | 0 Months Ended | |||
Dec. 31, 2014 | Jan. 23, 2015 | Mar. 20, 2015 | Oct. 04, 2013 | |
Mortgages Maturing in October 2018 [Member] | Pensacola, FL [Member] | ||||
Debt Obligations | ||||
Acquisition Mortgage Debt | $17,173,000 | |||
Interest Rate | 4.85% | |||
Interest rate term | 12 months | |||
Mortgages Maturing In April 2019 [Member] | Melbourne, FL [Member] | ||||
Debt Obligations | ||||
Acquisition Mortgage Debt | 1,907,000 | |||
Interest Rate | 4.17% | |||
Mortgages Maturing In April 2019 [Member] | Pensacola, FL [Member] | ||||
Debt Obligations | ||||
Acquisition Mortgage Debt | 4,000,000 | |||
Interest Rate | 4.35% | |||
Adjustable Rate Residential Mortgage [Member] | Mortgage Maturing in November 2014 [Member] | Houston TX [Member] | ||||
Debt Obligations | ||||
Acquisition Mortgage Debt | 6,494,000 | |||
Fixed Rate Residential Mortgage [Member] | Mortgage Maturing in November 2014 [Member] | Houston TX [Member] | ||||
Debt Obligations | ||||
Acquisition Mortgage Debt | $7,500,000 | |||
Interest Rate | 4.19% |
Debt_Obligations_Junior_Subord
Debt Obligations - Junior Subordinated Notes (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Debt Instrument [Line Items] | |||||
Total debt obligations | $553,919 | $553,919 | 553,919 | 519,806 | |
Junior Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Total debt obligations | 37,400 | 37,400 | 37,400 | 37,400 | |
Interest Expense | 458 | 458 | 916 | ||
Amortization of deferred costs included in interest expense | $5 | $5 | $10 | ||
Debt Instrument, Interest Rate 30 April, 2016 Through 30 April, 2036 [Member] | Junior Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | LIBOR | |||
Basis spread on variable rate | 2.00% | 2.00% | |||
Debt Instrument, Interest Rate 1 August, 2012 Through 29 April, 2016 [Member] | Junior Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 4.90% | 4.90% | 4.90% | 4.90% |
Deferred_Income_New_Markets_Ta1
Deferred Income (New Markets Tax Credit Transaction) (Details) (USD $) | 0 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 11, 2012 | Feb. 03, 2012 | Sep. 30, 2014 | Mar. 31, 2015 |
Deferred Income (New Markets Tax Credit Transaction) | ||||
Deferred income | $30,990 | 30,990 | ||
Deferred costs, net | 13,515 | 14,760 | ||
New Markets Tax Credit Program Special Purpose Entity [Member] | Federal New Markets Tax Credit Transaction [Member] | ||||
Deferred Income (New Markets Tax Credit Transaction) | ||||
Maximum percentage of qualified investment permitted in NMTC to claim credits against Federal income tax | 39.00% | |||
Variable Interest Entity Primary Beneficiary [Member] | Investor [Member] | New Markets Tax Credit Program Special Purpose Entity [Member] | Federal New Markets Tax Credit Transaction [Member] | ||||
Deferred Income (New Markets Tax Credit Transaction) | ||||
Tax Credit Receivable Term | 7 years | 7 years | ||
Deferred income | 30,990 | |||
Variable Interest Entity Primary Beneficiary [Member] | RBHTRB Newark Holdings LLC [Member] | Investor [Member] | New Markets Tax Credit Program Special Purpose Entity [Member] | Federal New Markets Tax Credit Transaction [Member] | ||||
Deferred Income (New Markets Tax Credit Transaction) | ||||
Amount contributed to effect financing transaction | 16,400 | 11,200 | 5,100 | |
Deferred costs, net | $8,700 | 10,200 | ||
Variable Interest Entity Primary Beneficiary [Member] | RBHTRB Newark Holdings LLC [Member] | Subsidiaries [Member] | New Markets Tax Credit Program Special Purpose Entity [Member] | ||||
Deferred Income (New Markets Tax Credit Transaction) | ||||
Period after which option to acquire special purpose entity may be exercised | 7 years |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 |
segment | |||||
Segment Reporting [Abstract] | |||||
Number of reportable segments | 2 | ||||
Revenues: | |||||
Rental and other revenues from real estate | $20,186 | $14,877 | $39,667 | $28,684 | |
Other income | 286 | 280 | 582 | 551 | |
Total revenues | 20,472 | 15,157 | 40,249 | 29,235 | |
Expenses: | |||||
Real estate operating expenses | 10,314 | 8,395 | 20,723 | 16,029 | |
Interest expense | 5,865 | 4,949 | 12,066 | 9,633 | |
Advisor’s fees, related party | 605 | 414 | 1,189 | 776 | |
Property acquisition costs | 0 | 292 | 295 | 1,528 | |
General and Administrative Expense | 1,736 | 1,596 | 3,393 | 3,170 | |
Depreciation and amortization | 5,115 | 3,384 | 9,273 | 6,574 | |
Total expenses | 23,635 | 19,030 | 46,939 | 37,710 | |
Total revenues less total expenses | -3,163 | -3,873 | -6,690 | -8,475 | |
Gain on sale of real estate | 2,777 | 0 | 2,777 | 0 | |
Net income (loss) | -386 | -3,873 | -3,913 | -8,475 | |
Plus: net (income) loss attributable to non-controlling interests | -362 | 919 | 667 | 1,937 | |
Loss from continuing operations | -748 | -2,954 | -3,246 | -6,538 | |
Discontinued operations | 0 | 362 | 0 | 1,213 | |
Net loss attributable to common shareholders | -748 | -2,592 | -3,246 | -5,325 | |
Total Assets | 760,129 | 574,352 | 760,129 | 574,352 | 734,620 |
Assets of discontinued operations | 0 | 0 | 2,017 | ||
Multi-Family Real Estate [Member] | |||||
Revenues: | |||||
Rental and other revenues from real estate | 18,795 | 13,718 | 36,956 | 26,325 | |
Other income | 0 | 0 | 0 | 0 | |
Total revenues | 18,795 | 13,718 | 36,956 | 26,325 | |
Expenses: | |||||
Real estate operating expenses | 9,105 | 7,336 | 18,320 | 13,896 | |
Interest expense | 4,686 | 3,759 | 9,395 | 7,244 | |
Advisor’s fees, related party | 518 | 326 | 1,003 | 619 | |
Property acquisition costs | 292 | 295 | 1,528 | ||
General and Administrative Expense | 1,632 | 1,485 | 3,190 | 2,942 | |
Depreciation and amortization | 4,514 | 2,942 | 8,144 | 5,706 | |
Total expenses | 20,455 | 16,140 | 40,347 | 31,935 | |
Total revenues less total expenses | -1,660 | -3,391 | |||
Gain on sale of real estate | 2,777 | 2,777 | |||
Net income (loss) | 1,117 | -2,422 | -614 | -5,610 | |
Plus: net (income) loss attributable to non-controlling interests | -1,212 | 81 | -1,015 | 268 | |
Loss from continuing operations | -2,341 | -5,342 | |||
Net loss attributable to common shareholders | -95 | -1,629 | |||
Total Assets | 583,438 | 397,718 | 583,438 | 397,718 | |
Other Real Estate [Member] | |||||
Revenues: | |||||
Rental and other revenues from real estate | 1,391 | 1,159 | 2,711 | 2,359 | |
Other income | 286 | 280 | 582 | 551 | |
Total revenues | 1,677 | 1,439 | 3,293 | 2,910 | |
Expenses: | |||||
Real estate operating expenses | 1,209 | 1,059 | 2,403 | 2,133 | |
Interest expense | 1,179 | 1,190 | 2,671 | 2,389 | |
Advisor’s fees, related party | 87 | 88 | 186 | 157 | |
Property acquisition costs | 0 | 0 | 0 | ||
General and Administrative Expense | 104 | 111 | 203 | 228 | |
Depreciation and amortization | 601 | 442 | 1,129 | 868 | |
Total expenses | 3,180 | 2,890 | 6,592 | 5,775 | |
Total revenues less total expenses | -1,503 | -3,299 | |||
Gain on sale of real estate | 0 | 0 | |||
Net income (loss) | -1,503 | -1,451 | -3,299 | -2,865 | |
Plus: net (income) loss attributable to non-controlling interests | 850 | 838 | 1,682 | 1,669 | |
Loss from continuing operations | -613 | -1,196 | |||
Net loss attributable to common shareholders | -653 | -1,617 | |||
Total Assets | 176,691 | 176,634 | 176,691 | 176,634 | |
Loan and Investment [Member] | |||||
Expenses: | |||||
Assets of discontinued operations | $59,637 | $59,637 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Fair Value Inputs Level2 [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Market Approach Valuation Technique [Member] | Junior Subordinated Debt [Member] | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 6.15% | 6.84% |
Market Approach Valuation Technique [Member] | Mortgages [Member] | Minimum [Member] | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 2.79% | 2.42% |
Market Approach Valuation Technique [Member] | Mortgages [Member] | Maximum [Member] | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 8.79% | 9.58% |
Estimate of Fair Value Measurement [Member] | Junior Subordinated Debt [Member] | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value lower than carrying value | 21 | 24.3 |
Estimate of Fair Value Measurement [Member] | Mortgages [Member] | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value lower than carrying value | 7 | 12 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) (Fair Value Measurements Recurring [Member], Interest Rate Swap [Member], USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Fair Value Inputs Level2 [Member] | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Derivative financial instruments | $56 |
Fair Value Inputs Level1 [Member] | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Derivative financial instruments | 0 |
Estimate of Fair Value Measurement [Member] | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Derivative financial instruments | $56 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | |
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||||
Amount of loss recognized on derivative in Other Comprehensive Income | ($28,000) | ($25,000) | ($60,000) | ($7,000) | |
Gain or loss recognized related to hedge ineffectiveness | 0 | 0 | 0 | 0 | |
Gain from components excluded from assessment of cash flow hedge effectiveness | 0 | 0 | 0 | 0 | |
Estimated amount to be reclassified from Accumulated other comprehensive income (loss) as an increase to interest expense | 30,000 | 30,000 | |||
Credit-risk-related Contingent Features | |||||
Fair value of the derivative in a net asset position | 56,000 | 56,000 | |||
Termination value for settlement of obligation | 56,000 | 56,000 | |||
Interest Expense [Member] | |||||
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||||
Amount of loss reclassified from Accumulated Other Comprehensive Income into Interest Expense | -8,000 | -8,000 | -17,000 | -17,000 | |
Accounts Payable And Accrued Liabilities [Member] | |||||
Fair value of derivative financial instruments | |||||
Fair value of derivative financial instrument liability | 56,000 | 56,000 | 8,000 | ||
Designated As Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Interest Rate Derivatives | |||||
Notional Amount | $1,718,000 | $1,718,000 | |||
Rate (as a percent) | 5.25% | 5.25% |