Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Feb. 06, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | BRT REALTY TRUST | |
Entity Central Index Key | 14,846 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 14,045,135 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
ASSETS | ||
Real estate properties, net of accumulated depreciation and amortization of $45,371 and $41,995 | $ 746,183,000 | $ 759,576,000 |
Real estate loan | 5,900,000 | 19,500,000 |
Cash and cash equivalents | 51,231,000 | 27,399,000 |
Restricted cash | 6,683,000 | 7,383,000 |
Deposits and escrows | 18,283,000 | 18,972,000 |
Investment in unconsolidated joint ventures | 14,672,000 | 298,000 |
Other assets | 6,122,000 | 7,775,000 |
Real estate properties held for sale | 0 | 33,996,000 |
Total Assets | 849,074,000 | 874,899,000 |
Liabilities: | ||
Mortgages payable, net of deferred costs of $5,191 and $5,873 | 573,577,000 | 588,457,000 |
Junior subordinated notes, net of deferred costs of $397 and $402 | 37,003,000 | 36,998,000 |
Accounts payable and accrued liabilities | 18,873,000 | 20,716,000 |
Mortgage payable held for sale | 0 | 27,052,000 |
Total Liabilities | 629,453,000 | 673,223,000 |
Commitments and contingencies | ||
Preferred shares, $1 par value: | ||
Authorized 10,000 shares, none issued | 0 | 0 |
Shares of beneficial interest, $3 par value: | ||
Authorized number of shares, unlimited, 13,231 and 13,232 issued | 39,693,000 | 39,696,000 |
Additional paid-in capital | 161,639,000 | 161,321,000 |
Accumulated other comprehensive income (loss) | 1,666,000 | (1,602,000) |
Accumulated deficit | (32,355,000) | (48,125,000) |
Total BRT Realty Trust shareholders’ equity | 170,643,000 | 151,290,000 |
Non-controlling interests | 48,978,000 | 50,386,000 |
Total Equity | 219,621,000 | 201,676,000 |
Total Liabilities and Equity | $ 849,074,000 | $ 874,899,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Mortgage payable and junior subordinated notes, deferred costs | $ 5,588 | $ 6,275 |
Accumulated depreciation | $ 45,371 | $ 41,995 |
Preferred shares, par value (in dollars per share) | $ 1 | $ 1 |
Preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Shares of beneficial interest, par value (in dollars per share) | $ 3 | $ 3 |
Shares of beneficial interest, issued (in shares) | 13,231,000 | 13,232,000 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Mortgage payable and junior subordinated notes, deferred costs | $ 5,191 | $ 5,873 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Mortgage payable and junior subordinated notes, deferred costs | $ 397 | $ 402 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | ||
Rental and other revenues from real estate properties | $ 25,029 | $ 22,319 |
Other income | 611 | 7 |
Total revenues | 25,640 | 22,326 |
Expenses: | ||
Real estate operating expenses - including $610 and $433 to related parties | 12,446 | 11,094 |
Interest expense - including $0 and $24 to related party | 6,687 | 5,531 |
Advisor’s fees, related party | 0 | 693 |
Property acquisition costs | 0 | 57 |
General and administrative - including $79 and $26 to related parties | 2,597 | 1,749 |
Provision for Federal tax | 350 | 0 |
Depreciation | 6,297 | 4,984 |
Total expenses | 28,377 | 24,108 |
Total revenue less total expenses | (2,737) | (1,782) |
Gain on sale of real estate | 35,838 | 609 |
Loss on extinguishment of debt | (799) | 0 |
Income (loss) from continuing operations | 32,302 | (1,173) |
Loss from discontinued operations | 0 | (1,600) |
Net income (loss) | 32,302 | (2,773) |
Net (income) loss attributable to non-controlling interests | (16,532) | 739 |
Net income (loss) attributable to common shareholders | $ 15,770 | $ (2,034) |
Basic and diluted per share amounts attributable to common shareholders: | ||
Income (loss) from continuing operations (in dollars per share) | $ 1.13 | $ (0.09) |
(Loss) income from discontinued operations (in dollars per share) | 0 | (0.05) |
Basic and diluted earnings (loss) per share (in dollars per share) | $ 1.13 | $ (0.14) |
Amounts attributable to BRT Realty Trust: | ||
Income (loss) from continuing operations | $ 15,770 | $ (1,393) |
Loss from discontinued operations | 0 | (641) |
Net income (loss) attributable to common shareholders | $ 15,770 | $ (2,034) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (in shares) | 13,898,626 | 14,101,056 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Related party - real estate operating expenses | $ 610 | $ 433 |
Related party - interest expense | 0 | 24 |
Related party - general and administrative | $ 79 | $ 26 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 32,302 | $ (2,773) |
Other comprehensive income: | ||
Unrealized gain on derivative instruments | 3,268 | 20 |
Other comprehensive income | 3,268 | 20 |
Comprehensive income (loss) | 35,570 | (2,753) |
Comprehensive income (loss) attributable to non-controlling interests | 17,531 | (736) |
Comprehensive income (loss) attributable to common shareholders | $ 18,039 | $ (2,017) |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - 3 months ended Dec. 31, 2016 - USD ($) $ in Thousands | Total | Shares of Beneficial Interest | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) | Accumulated Deficit | Non- Controlling Interest |
Beginning balance at Sep. 30, 2016 | $ 201,676 | $ 39,696 | $ 161,321 | $ (1,602) | $ (48,125) | $ 50,386 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Compensation expense - restricted stock and restricted stock units | 324 | 324 | ||||
Contributions from non-controlling interests | 3,786 | 3,786 | ||||
Distributions to non-controlling interests | (21,726) | (21,726) | ||||
Shares repurchased - 1,200 shares | (9) | (3) | (6) | |||
Net income | 32,302 | 15,770 | 16,532 | |||
Other comprehensive income | 3,268 | 3,268 | ||||
Comprehensive income (loss) | 35,570 | |||||
Ending balance at Dec. 31, 2016 | $ 219,621 | $ 39,693 | $ 161,639 | $ 1,666 | $ (32,355) | $ 48,978 |
CONSOLIDATED STATEMENT OF EQUI8
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) | 3 Months Ended |
Dec. 31, 2016shares | |
Statement of Stockholders' Equity [Abstract] | |
Shares repurchased (in shares) | 1,200 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 32,302 | $ (2,773) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 6,604 | 6,351 |
Amortization of restricted stock | 324 | 230 |
Gain on sale of real estate | (35,838) | (609) |
Loss on extinguishment of debt | 799 | 0 |
Increases and decreases from changes in other assets and liabilities: | ||
Change in straight-line rent | 22 | 62 |
Decrease in interest receivable | 2,362 | 0 |
Decrease (increase) in deposits and escrows | 688 | (1,610) |
Decrease in other assets | 849 | 981 |
Decrease in accounts payable and accrued liabilities | (260) | (591) |
Net cash provided by operating activities | 7,808 | 1,917 |
Cash flows from investing activities: | ||
Collections from real estate loans | 13,600 | 0 |
Additions to real estate properties | (20,335) | (10,373) |
Net costs capitalized to real estate properties | (2,971) | (15,398) |
Proceeds from the sale of real estate properties | 127,859 | 609 |
Investments in unconsolidated joint ventures | (14,335) | 0 |
Net cash provided by (used in) investing activities | 104,518 | (26,515) |
Cash flows from financing activities: | ||
Proceeds from mortgages payable | 9,369 | 20,531 |
Increase in other borrowed funds | 0 | 14,001 |
Mortgage payoffs | (78,417) | (5,613) |
Mortgage amortization | (1,206) | (1,205) |
Increase in deferred borrowing costs | (291) | (1,262) |
Capital contributions from non-controlling interests | 3,786 | 3,531 |
Capital distribution to non-controlling interests | (21,726) | (2,308) |
Proceeds from sale of New Market Tax Credits | 0 | 2,746 |
Repurchase of shares of beneficial interest | (9) | 0 |
Net cash (used in) provided by financing activities | (88,494) | 30,421 |
Net increase in cash and cash equivalents | 23,832 | 5,823 |
Cash and cash equivalents at beginning of period | 27,399 | 15,556 |
Cash and cash equivalents at end of period | 51,231 | 21,379 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest, net of capitalized interest of $84 and $117 respectively | 6,372 | 7,221 |
Taxes paid | 0 | 11 |
Acquisition of real estate through assumption of debt | 27,638 | 16,051 |
RBHTRB Newark Holdings LLC | Variable Interest Entity, Primary Beneficiary | ||
Cash flows from investing activities: | ||
Net change in restricted cash | 0 | (1,952) |
Multi-Family Real Estate | Variable Interest Entity, Primary Beneficiary | ||
Cash flows from investing activities: | ||
Net change in restricted cash | $ 700 | $ 599 |
CONSOLIDATED STATEMENT OF CAS10
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 84 | $ 117 |
Organization and Background
Organization and Background | 3 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 multi‑family properties and owns and operates other assets, including real estate and a real estate loan. BRT conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes. Generally, the multi‑family properties are acquired with venture partners in transactions in which the Trust contributes 80% of the equity. At December 31, 2016 , the Trust owns: (a) 30 multi-family properties with 8,624 units located in 11 states (including 271 units at a property in the lease up stage) with a net book value of $735,596,000 ; and (b) interests in two unconsolidated joint ventures with a net book value of $14,373,000 . The Trust also owns and operates various other real estate assets. At December 31, 2016 , the net book value of the real property included in these other real estate assets was $16,487,000 , including a real estate loan of $5,900,000 . |
Basis of Preparation
Basis of Preparation | 3 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying interim unaudited consolidated financial statements as of December 31, 2016 , and for the three months ended December 31, 2016 and 2015 , reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three months ended December 31, 2016 and 2015 , are not necessarily indicative of the results for the full year. The consolidated balance sheet as of September 30, 2016 , 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 ("VIE's") in which the Trust is determined to be the primary beneficiary. Material inter-company balances and transactions have been eliminated. The Trust’s consolidated joint ventures that own multi‑family properties, 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 involve 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 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 that could potentially be significant to the VIE. The joint venture that owns a property in Dallas, TX was determined not to be a VIE but is consolidated because the Trust has substantive participating rights in the entity owning the property. 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 VIEs, the Trust has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture. For the three months ended December 31, 2015 , the Trust reclassified approximately $921,000 of tenant utility reimbursements from real estate operating expenses to rental and other revenues from real estate properties to conform with the current period presentation. This reclassification increased total revenues and expenses by $921,000 , and had no effect on the Trust's financial position, results of operations or cash flows. 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 | 3 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | Equity Common Share Dividend Distribution During the three months ended December 31, 2016 , the Trust did not declare a dividend on its shares. Stock Based Compensation The Trust's Amended and Restated 2016 Incentive Plan (the "Plan") permits the Trust to grant: (i) 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; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units and certain performance based awards. Pursuant to the Plan, in June 2016, the Trust issued restricted stock units (the "Units") to acquire up to 450,000 common shares (the "Pay for Performance Program") . Recipients of the Units are entitled to receive (i) the underlying shares if certain performance metrics are satisfied at the vesting date and (ii) cash dividends paid with respect to the common shares underlying the Units if, when, and to the extent, the related Units vest. Because the Units are not participating securities, for accounting purposes, the shares underlying the Units are excluded in the outstanding shares reflected on the balance sheet and from the calculation of basic earnings per share. The shares are contingently issuable shares but have not been included in the diluted earnings per share as the performance and market criteria have not been met. Expense is recognized, over a five year vesting period on the Units which the Trust expects to vest. The Trust recorded $110,000 of compensation expense related to the amortization of unearned compensation with respect to the Units in the three months ended December 31, 2016 . At December 31, 2016 and September 30, 2016, $1,862,000 and $1,972,000 , respectively, has been deferred and will be charged to expense over the vesting period. In January 2017 , the Trust granted 147,050 shares of restricted stock pursuant to the Plan. As of December 31, 2016 , an aggregate of 666,775 shares of unvested restricted stock are outstanding pursuant to the 2012 Incentive Plan and the 2009 Incentive Plan (collectively the "Prior Plans"). No additional awards may be granted under the Prior Plans. All restricted shares 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 December 31, 2016 and 2015 , the Trust recorded $ 214,000 and $230,000 , respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted share awards. At December 31, 2016 and September 30, 2016, $ 1,875,000 and $2,089,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods of these restricted share awards. The weighted average vesting period of these restricted shares is 2.6 years. Share Buyback On March 11, 2016, the Board of Trustees approved a share repurchase program authorizing the Trust to repurchase up to $5,000,000 of shares of beneficial interest through September 30, 2017. During the quarter ended December 31, 2016, the Trust purchased 1,200 shares of beneficial interest at an average market price of $8.21 for a purchase price, including commissions, of $9,000 . Per Share Data Basic earnings (loss) per share is determined by dividing net income (loss) applicable to common shareholders for the applicable period by the weighted average number of shares of beneficial interest outstanding during such period. The Units are excluded from the basic earnings per share calculation, as they are not participating securities. 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 (loss) per share is determined by dividing net income (loss) applicable to common shareholders for the applicable period by the weighted average number of shares of beneficial interest outstanding during such period. For the three months ended December 31, 2016, none of the Units are included in the diluted weighted average as they did not meet the applicable performance metrics during such periods. Basic and diluted shares outstanding for the three months ended December 31, 2016 and 2015 , were 13,898,626 and 14,101,056 , respectively. |
Real Estate Properties
Real Estate Properties | 3 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties Real estate properties (including properties held for sale) consist of the following: December 31, 2016 September 30, 2016 Land $ 126,242 $ 128,409 Building 638,348 684,133 Building improvements 26,964 25,717 Real estate properties 791,554 838,259 Accumulated depreciation (45,371 ) (44,687 ) Total real estate properties, net $ 746,183 $ 793,572 A summary of real estate properties owned (including properties held for sale) follows (dollars in thousands): Depreciation Sales Multi-family $ 783,085 $ 47,974 $ 2,845 $ (6,270 ) $ (92,037 ) $ 735,597 Land - Daytona, FL 8,021 — — — — 8,021 Shopping centers/Retail - Yonkers, NY 2,466 — 126 (27 ) — 2,565 Total real estate properties $ 793,572 $ 47,974 $ 2,971 $ (6,297 ) $ (92,037 ) $ 746,183 The table below summarizes the preliminary allocations of the purchase prices of assets acquired during the three months ended December 31, 2016 (dollars in thousands): Preliminary Purchase Price Allocation Land $ 8,957 Buildings and Improvements 29,601 Acquisition-related intangible assets 575 Total Consideration $ 39,133 Real Estate Property Held For Sale At September 30, 2016, the Sandtown Vista property in Atlanta, GA and the Spring Valley property in Panama City, FL were held for sale. The Sandtown Vista property, which had a book value of $27,102,000 , was sold on November 21, 2016. The Spring Valley property, which had a book value $6,920,000 , was sold on October 26, 2016. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Property Acquisitions The table below provides information for the three months ended December 31, 2016 regarding the Trust's purchases of multi-family properties (dollars in thousands): Location Purchase Date No. of Units Contract Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Fredricksburg, VA 11/4/2016 220 $ 38,490 $ 29,940 $ 8,720 80 % $ 643 _______________________________ (a) See Note 15. Property Dispositions The following table is a summary of the real estate properties disposed of by the Trust in the three months ended December 31, 2016 (dollars in thousands): Location Sale No. of Sales Price Gain on Sale Non-controlling partner portion of gain Greenville, NC 10/19/2016 350 $ 68,000 $ 18,483 $ 9,329 Panama City, FL 10/26/2016 160 14,720 7,393 3,478 Atlanta, GA 11/21/2016 350 36,750 8,905 4,166 Hixson, TN 11/30/2016 156 10,775 608 152 New York, NY 12/21/2016 1 465 449 — 1,017 $ 130,710 $ 35,838 $ 17,125 |
Real Estate Loan
Real Estate Loan | 3 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Real Estate Loan | Real Estate Loan As a result of the sale of our interest in the Newark Joint Venture in February 2016, the mortgage loan owed to the Trust by the venture (the "NJV Loan Receivable"), which was, prior to the sale, eliminated in consolidation, is reflected as a real estate loan on the consolidated balance sheets. At December 31, 2016 and September 30, 2016, the NJV Loan Receivable was in the principal amount of $5,900,000 and $19,500,000 , respectively. During the quarter ended December 31, 2016, the Trust received (i) a $13,600,000 principal paydown of the NJV Loan Receivable and (ii) $2,606,000 , representing all the interest ( i.e. , current and deferred) due through the repayment date. In connection with this transaction, the Trust released certain properties from the mortgages securing the NJV Loan Receivable. The remaining $5,900,000 of principal balance of this receivable matures in June 2017, bears interest, payable monthly, at a rate of 11% per year, and is secured by several properties in Newark, New Jersey. |
Real Estate Property Held For S
Real Estate Property Held For Sale | 3 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Real Estate Property Held For Sale | Real Estate Properties Real estate properties (including properties held for sale) consist of the following: December 31, 2016 September 30, 2016 Land $ 126,242 $ 128,409 Building 638,348 684,133 Building improvements 26,964 25,717 Real estate properties 791,554 838,259 Accumulated depreciation (45,371 ) (44,687 ) Total real estate properties, net $ 746,183 $ 793,572 A summary of real estate properties owned (including properties held for sale) follows (dollars in thousands): Depreciation Sales Multi-family $ 783,085 $ 47,974 $ 2,845 $ (6,270 ) $ (92,037 ) $ 735,597 Land - Daytona, FL 8,021 — — — — 8,021 Shopping centers/Retail - Yonkers, NY 2,466 — 126 (27 ) — 2,565 Total real estate properties $ 793,572 $ 47,974 $ 2,971 $ (6,297 ) $ (92,037 ) $ 746,183 The table below summarizes the preliminary allocations of the purchase prices of assets acquired during the three months ended December 31, 2016 (dollars in thousands): Preliminary Purchase Price Allocation Land $ 8,957 Buildings and Improvements 29,601 Acquisition-related intangible assets 575 Total Consideration $ 39,133 Real Estate Property Held For Sale At September 30, 2016, the Sandtown Vista property in Atlanta, GA and the Spring Valley property in Panama City, FL were held for sale. The Sandtown Vista property, which had a book value of $27,102,000 , was sold on November 21, 2016. The Spring Valley property, which had a book value $6,920,000 , was sold on October 26, 2016. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash Restricted cash represents funds that are being held for specific purposes and are therefore not generally available for general corporate purposes. As reflected on the consolidated balance sheets, Restricted cash represents funds that are held by or on behalf of the Trust specifically for capital improvements at certain multi-family properties. |
Investments in Unconsolidated V
Investments in Unconsolidated Ventures | 3 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Ventures | Investment in Unconsolidated Ventures In the quarter ended December 31, 2016, the Trust purchased interests in two unconsolidated joint ventures in Columbia, SC: (i) a $5,670,000 investment for a 32% interest in a venture which owns a 374 unit multi-family property and (ii) an $8,665,000 investment for a 46% interest in a venture in which the Trust contemplates the construction of 339 multi-family units. Construction financing for this development project has been secured. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consist of the following (dollars in thousands): December 31, 2016 September 30, 2016 Mortgages payable (a) $ 578,768 $ 621,382 Junior subordinated notes 37,400 37,400 Deferred mortgage costs (5,588 ) (6,275 ) Total debt obligations $ 610,580 $ 652,507 _____________________________________ (a) Excludes mortgages payable held for sale of $27,052,000 at September 30, 2016. Mortgages Payable During the three months ended December 31, 2016, the Trust incurred the following fixed rate mortgage debt in connection with the following acquisition (dollars in thousands): Location Closing Date Acquisition Mortgage Debt Interest Rate Interest only period Maturity Date Fredricksburg, VA 11/4/16 $ 27,638 3.68 % N/A February 2027 During the three months ended December 31, 2016 , the Trust obtained supplemental fixed rate mortgage financing as set forth in the table below (dollars in thousands): Location Closing Date Supplemental Mortgage Debt Interest Rate Maturity Date Fredricksburg, VA 11/4/16 $ 2,261 4.84 % February 2027 During the three months ended December 31, 2016, $7,107,000 was advanced on the construction loan that financed the N. Charleston, SC (Factory at Garco) development. There is $9,614,000 remaining to be drawn on the facility. Junior Subordinated Notes At December 31, 2016 and September 30, 2016 , the Trust's junior subordinated notes had an outstanding principal balance of $37,400,000 , before deferred costs of $397,000 . At December 31, 2016, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 2.89% . The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended December 31, 2016 and 2015 , which includes amortization of deferred costs, was $274,000 and $463,000 , respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Majestic Property Management Corp., a related party, provides management services to the Trust for certain properties owned by the Trust and joint ventures in which the Trust participates. These fees amounted to $8,000 and $11,000 for the three months ended December 31, 2016 and 2015, respectively. The allocation of expenses for the shared facilities, personnel and other resources used by the Trust is determined in accordance with a shared services agreement by and among the Trust and related parties. Amounts paid pursuant to the agreement are included in general and administrative expenses on the consolidated statement of operations. The Trust reimbursed Gould Investors L.P., a related party, $79,000 and $51,000 , in the three months ended December 31, 2016 and 2015, respectively, for services provided under the agreement. Management of many of the Trust's multi-family properties is performed by the Trust's joint venture partners or their affiliates (none of these joint venture partners is Gould Investors L.P. or its affiliates). In addition, the Trust may pay an acquisition fee to a joint venture partner in connection with a property purchased by such joint venture. Management and acquisition fees to these related parties for the three months ended December 31, 2016 and 2015 was $924,000 and $422,000 , respectively. During the quarter ended December 31, 2015, the Trust paid REIT Management, a related party, advisory fees pursuant to an advisory agreement of $693,000 . The advisory agreement terminated effective December 31, 2015. In the quarter ended December 31, 2015, the Trust borrowed $8,000,000 from Gould Investors L.P., a related party. Interest for the quarter ended December 31, 2015 was $24,000 . |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Management determined that the Trust operates in two reportable segments: a multi-family property segment which includes the ownership, operation and development of multi-family properties; and an other assets segment which includes the ownership and operation of the Trust's other real estate assets and a real estate loan. The following tables summarize our segment reporting for the periods indicated (dollars in thousands): Three Months Ended December 31, 2016 Multi-Family Real Estate Other Assets Total Revenues: Rental and other revenues from real estate properties $ 24,643 $ 386 $ 25,029 Other income — 611 611 Total revenues 24,643 997 25,640 Expenses: Real estate operating expenses 12,349 97 12,446 Interest expense 6,092 595 6,687 General and administrative 2,544 53 2,597 Provision for Federal Tax 343 7 350 Depreciation 6,270 27 6,297 Total expenses 27,598 779 28,377 Total revenue less total expenses (2,955 ) 218 (2,737 ) Gain on sale of real estate 35,389 449 35,838 Loss on extinguishment of debt (799 ) — (799 ) Income from continuing operations 31,635 667 32,302 Net (income) attributable to non-controlling interests (16,497 ) (35 ) (16,532 ) Net income attributable to common shareholders before reconciling items $ 15,138 $ 632 $ 15,770 Segment Assets at December 31, 2016 $ 832,265 $ 16,809 $ 849,074 Note 12- Segment Reporting - continued Three Months Ended December 31, 2015 Multi-Family Real Estate Other Assets Total Revenues: Rental and other revenues from real estate properties $ 22,003 $ 316 $ 22,319 Other income — 7 7 Total revenues 22,003 323 22,326 Expenses: Real estate operating expenses 10,944 150 11,094 Interest expense 5,459 72 5,531 Advisor's fee, related party 594 99 693 Property acquisition costs 57 — 57 General and administrative 1,661 88 1,749 Depreciation and amortization 4,957 27 4,984 Total expenses 23,672 436 24,108 Total revenues less total expenses (1,669 ) (113 ) (1,782 ) Gain on sale of real estate assets — 609 609 Net income (1,669 ) 496 (1,173 ) Net (income) loss attributable to non-controlling interests (199 ) (21 ) (220 ) Net (loss) income attributable to common shareholders before reconciling items $ (1,868 ) $ 475 $ (1,393 ) Reconciling adjustment: Discontinued operations, net of (641 ) Net loss attributable to common shareholders $ (2,034 ) Segment Assets at December 31, 2015 $ 689,231 $ 191,251 $ 880,482 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Dec. 31, 2016 | |
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 balance sheets for these instruments approximate their fair value due to the short term nature of these accounts. Junior subordinated notes: At December 31, 2016 and September 30, 2016 the estimated fair value of the notes is lower than their carrying value by approximately $16,408,000 and $16,549,000 based on a market interest rate of 6.48% and 6.37% , respectively. Mortgages payable: At December 31, 2016 , the estimated fair value of the Trust’s mortgages payable is greater than their carrying value by approximately $13,734,000 assuming market interest rates between 3.81% and 5.01% and at September 30, 2016 , the estimated fair value of the Trust's mortgages payable was greater than their carrying value by approximately $10,629,000 assuming market interest rates between 3.05% and 4.25% . 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 December 31, 2016 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Financial Assets: Interest rate swap $ 1,666 — $ 1,666 Derivative financial instruments: 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 December 31, 2016 , these derivatives are included in other accounts payable and accrued liabilities on the consolidated balance sheet. Although the Trust has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with them utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of December 31, 2016 , 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 derivatives. As a result, the Trust determined that its derivatives valuation is classified in Level 2 of the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2016 | |
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 manage 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. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Trust's variable-rate debt. As of December 31, 2016 , the Trust had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands): Interest Rate Derivative Notional Amount Rate Maturity Interest rate swap $ 1,531 5.25 % April 1, 2022 Interest rate swap $ 26,400 3.61 % May 6, 2023 Interest rate swap $ 27,000 4.05 % September 19, 2026 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: December 31, 2016 September 30, 2016 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Other Assets $ 1,666 Accounts payable and accrued liabilities $ 1,602 As of December 31, 2016 , 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. The following table presents the effect of the Trust’s interest rate swaps on the consolidated statements of comprehensive loss for the dates indicated (dollars in thousands): Three Months Ended 2016 2015 Amount of gain recognized on derivative in Other Comprehensive Income (loss) $ 3,123 $ 12 Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income (loss) into Interest Expense $ (145 ) $ (8 ) 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 months ended December 31, 2016 and December 31, 2015 . During the twelve months ending September 30, 2017 , the Trust estimates an additional $343,000 will be reclassified from other comprehensive income (loss) as an increase to interest expense. Credit-risk-related Contingent Features The agreement between the Trust and its derivatives counterparties 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 obligations. As of December 31, 2016 , the fair value of the derivatives in a net liability position, which includes accrued interest, but excludes any adjustment for nonperformance risk related to these agreement, was $24,000 . As of December 31, 2016 , the Trust has not posted any collateral related to these agreements. If the Trust had been in breach of these agreements at December 31, 2016 , it could have been required to settle its obligations thereunder at its termination value of $24,000 . |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or business combinations. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted. The Trust elected early adoption effective for the quarter ended December 31, 2016. The Trust's net income was favorably impacted as a result of the capitalization of acquisition costs - in prior periods, property acquisition costs were expensed during the period incurred. During the three months ended December 31, 2016, capitalized acquisition costs were $643,000 , without giving effect to non-controlling interests. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all excess tax benefits or deficiencies to be recognized as income tax expense or benefit in the income statement. In addition, excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows. Application of the standard is required for the annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The Trust is currently evaluating the impact of this new standard on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. The guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those periods, with early adoption permitted. The Trust adopted this guidance in the quarter December 31, 2016 and its adoption did not have a material effect on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods thereafter, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of December 31, 2016 that warrant additional disclosure, have been included in the notes to the consolidated financial statements. |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | The accompanying interim unaudited consolidated financial statements as of December 31, 2016 , and for the three months ended December 31, 2016 and 2015 , reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three months ended December 31, 2016 and 2015 , are not necessarily indicative of the results for the full year. The consolidated balance sheet as of September 30, 2016 , 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 ("VIE's") in which the Trust is determined to be the primary beneficiary. Material inter-company balances and transactions have been eliminated. The Trust’s consolidated joint ventures that own multi‑family properties, 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 involve 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 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 that could potentially be significant to the VIE. The joint venture that owns a property in Dallas, TX was determined not to be a VIE but is consolidated because the Trust has substantive participating rights in the entity owning the property. 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 VIEs, the Trust has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture. |
New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or business combinations. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted. The Trust elected early adoption effective for the quarter ended December 31, 2016. The Trust's net income was favorably impacted as a result of the capitalization of acquisition costs - in prior periods, property acquisition costs were expensed during the period incurred. During the three months ended December 31, 2016, capitalized acquisition costs were $643,000 , without giving effect to non-controlling interests. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all excess tax benefits or deficiencies to be recognized as income tax expense or benefit in the income statement. In addition, excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows. Application of the standard is required for the annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The Trust is currently evaluating the impact of this new standard on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. The guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those periods, with early adoption permitted. The Trust adopted this guidance in the quarter December 31, 2016 and its adoption did not have a material effect on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods thereafter, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018. |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Summary of real estate properties owned | Real estate properties (including properties held for sale) consist of the following: December 31, 2016 September 30, 2016 Land $ 126,242 $ 128,409 Building 638,348 684,133 Building improvements 26,964 25,717 Real estate properties 791,554 838,259 Accumulated depreciation (45,371 ) (44,687 ) Total real estate properties, net $ 746,183 $ 793,572 A summary of real estate properties owned (including properties held for sale) follows (dollars in thousands): Depreciation Sales Multi-family $ 783,085 $ 47,974 $ 2,845 $ (6,270 ) $ (92,037 ) $ 735,597 Land - Daytona, FL 8,021 — — — — 8,021 Shopping centers/Retail - Yonkers, NY 2,466 — 126 (27 ) — 2,565 Total real estate properties $ 793,572 $ 47,974 $ 2,971 $ (6,297 ) $ (92,037 ) $ 746,183 |
Schedule of assets acquired and liabilities assumed | The table below summarizes the preliminary allocations of the purchase prices of assets acquired during the three months ended December 31, 2016 (dollars in thousands): Preliminary Purchase Price Allocation Land $ 8,957 Buildings and Improvements 29,601 Acquisition-related intangible assets 575 Total Consideration $ 39,133 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of real estate acquisitions | The table below provides information for the three months ended December 31, 2016 regarding the Trust's purchases of multi-family properties (dollars in thousands): Location Purchase Date No. of Units Contract Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Fredricksburg, VA 11/4/2016 220 $ 38,490 $ 29,940 $ 8,720 80 % $ 643 _______________________________ (a) See Note 15. |
Schedule of property dispositions | The following table is a summary of the real estate properties disposed of by the Trust in the three months ended December 31, 2016 (dollars in thousands): Location Sale No. of Sales Price Gain on Sale Non-controlling partner portion of gain Greenville, NC 10/19/2016 350 $ 68,000 $ 18,483 $ 9,329 Panama City, FL 10/26/2016 160 14,720 7,393 3,478 Atlanta, GA 11/21/2016 350 36,750 8,905 4,166 Hixson, TN 11/30/2016 156 10,775 608 152 New York, NY 12/21/2016 1 465 449 — 1,017 $ 130,710 $ 35,838 $ 17,125 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | Debt obligations consist of the following (dollars in thousands): December 31, 2016 September 30, 2016 Mortgages payable (a) $ 578,768 $ 621,382 Junior subordinated notes 37,400 37,400 Deferred mortgage costs (5,588 ) (6,275 ) Total debt obligations $ 610,580 $ 652,507 _____________________________________ (a) Excludes mortgages payable held for sale of $27,052,000 at September 30, 2016. |
Schedule of debt information | During the three months ended December 31, 2016 , the Trust obtained supplemental fixed rate mortgage financing as set forth in the table below (dollars in thousands): Location Closing Date Supplemental Mortgage Debt Interest Rate Maturity Date Fredricksburg, VA 11/4/16 $ 2,261 4.84 % February 2027 During the three months ended December 31, 2016, the Trust incurred the following fixed rate mortgage debt in connection with the following acquisition (dollars in thousands): Location Closing Date Acquisition Mortgage Debt Interest Rate Interest only period Maturity Date Fredricksburg, VA 11/4/16 $ 27,638 3.68 % N/A February 2027 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of segment reporting | The following tables summarize our segment reporting for the periods indicated (dollars in thousands): Three Months Ended December 31, 2016 Multi-Family Real Estate Other Assets Total Revenues: Rental and other revenues from real estate properties $ 24,643 $ 386 $ 25,029 Other income — 611 611 Total revenues 24,643 997 25,640 Expenses: Real estate operating expenses 12,349 97 12,446 Interest expense 6,092 595 6,687 General and administrative 2,544 53 2,597 Provision for Federal Tax 343 7 350 Depreciation 6,270 27 6,297 Total expenses 27,598 779 28,377 Total revenue less total expenses (2,955 ) 218 (2,737 ) Gain on sale of real estate 35,389 449 35,838 Loss on extinguishment of debt (799 ) — (799 ) Income from continuing operations 31,635 667 32,302 Net (income) attributable to non-controlling interests (16,497 ) (35 ) (16,532 ) Net income attributable to common shareholders before reconciling items $ 15,138 $ 632 $ 15,770 Segment Assets at December 31, 2016 $ 832,265 $ 16,809 $ 849,074 Note 12- Segment Reporting - continued Three Months Ended December 31, 2015 Multi-Family Real Estate Other Assets Total Revenues: Rental and other revenues from real estate properties $ 22,003 $ 316 $ 22,319 Other income — 7 7 Total revenues 22,003 323 22,326 Expenses: Real estate operating expenses 10,944 150 11,094 Interest expense 5,459 72 5,531 Advisor's fee, related party 594 99 693 Property acquisition costs 57 — 57 General and administrative 1,661 88 1,749 Depreciation and amortization 4,957 27 4,984 Total expenses 23,672 436 24,108 Total revenues less total expenses (1,669 ) (113 ) (1,782 ) Gain on sale of real estate assets — 609 609 Net income (1,669 ) 496 (1,173 ) Net (income) loss attributable to non-controlling interests (199 ) (21 ) (220 ) Net (loss) income attributable to common shareholders before reconciling items $ (1,868 ) $ 475 $ (1,393 ) Reconciling adjustment: Discontinued operations, net of (641 ) Net loss attributable to common shareholders $ (2,034 ) Segment Assets at December 31, 2015 $ 689,231 $ 191,251 $ 880,482 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Financial Assets: Interest rate swap $ 1,666 — $ 1,666 |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding interest rate derivatives | As of December 31, 2016 , the Trust had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands): Interest Rate Derivative Notional Amount Rate Maturity Interest rate swap $ 1,531 5.25 % April 1, 2022 Interest rate swap $ 26,400 3.61 % May 6, 2023 Interest rate swap $ 27,000 4.05 % September 19, 2026 |
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: December 31, 2016 September 30, 2016 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Other Assets $ 1,666 Accounts payable and accrued liabilities $ 1,602 |
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 swaps on the consolidated statements of comprehensive loss for the dates indicated (dollars in thousands): Three Months Ended 2016 2015 Amount of gain recognized on derivative in Other Comprehensive Income (loss) $ 3,123 $ 12 Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income (loss) into Interest Expense $ (145 ) $ (8 ) |
Organization and Background (De
Organization and Background (Details) | 3 Months Ended | |
Dec. 31, 2016USD ($)statepropertyinvestmentproperty_unit | Sep. 30, 2016USD ($) | |
Organization, background and significant accounting policies | ||
Number of properties | property | 30 | |
Number of units | property_unit | 8,624 | |
Number of states | state | 11 | |
Number of units under construction | property | 271 | |
Number of investments | investment | 2 | |
Investment in unconsolidated joint ventures | $ 14,672,000 | $ 298,000 |
Real estate properties, net | 746,183,000 | 759,576,000 |
Real estate investments, other | 16,487,000 | |
Real estate loan | 5,900,000 | $ 19,500,000 |
Multi-family | ||
Organization, background and significant accounting policies | ||
Real estate properties, net | $ 735,596,000 | |
Corporate Joint Venture | Property Acquisition | Multi-family | ||
Organization, background and significant accounting policies | ||
Equity contribution in each transaction (as a percent) | 80.00% | |
Two Unconsolidated Joint Ventures | ||
Organization, background and significant accounting policies | ||
Number of investments | investment | 2 | |
Investment in unconsolidated joint ventures | $ 14,373,000 |
Basis of Presentation - (Detail
Basis of Presentation - (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Real Estate [Line Items] | ||
Operating expenses | $ (28,377) | $ (24,108) |
Total revenues | $ 25,640 | 22,326 |
Restatement Adjustment | ||
Real Estate [Line Items] | ||
Operating expenses | 921 | |
Other revenues from rental and real estate properties | 921 | |
Total revenues | 921 | |
Total expenses | $ 921 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Jan. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Mar. 11, 2016 | |
Equity incentive plans | ||||||
Dividends declared per share (in dollars per share) | $ 0 | |||||
Share Buyback | ||||||
Shares repurchased (in shares) | 1,200 | |||||
Beneficial interest purchased, price per share (in dollars per share) | $ 8.21 | |||||
Beneficial interest purchased, value | $ 9,000 | |||||
Per Share Data | ||||||
Basic and diluted shares outstanding (in shares) | 13,898,626 | 14,101,056 | ||||
New Share Repurchase Program | ||||||
Share Buyback | ||||||
Beneficial interest purchased authorized amount | $ 5,000,000 | |||||
Restricted Stock | ||||||
Restricted Shares | ||||||
Compensation expense | $ 214,000 | $ 230,000 | ||||
Deferred unearned compensation | $ 1,875,000 | $ 2,089,000 | ||||
Remaining weighted average vesting period | 2 years 7 months 18 days | |||||
Incentive Plan 2016 | ||||||
Restricted Shares | ||||||
Shares authorized for issuance (up to) (in shares) | 600,000 | |||||
Incentive Plan 2016 | Restricted Stock Units (RSUs) | ||||||
Restricted Shares | ||||||
Issued (in shares) | 450,000 | |||||
Vesting period for shares issued | 5 years | |||||
Compensation expense | $ 110,000 | |||||
Deferred unearned compensation | $ 1,862,000 | $ 1,972,000 | ||||
Incentive Plan 2016 | Restricted Stock | ||||||
Restricted Shares | ||||||
Vesting period for shares issued | 5 years | |||||
Incentive Plan 2012 and Incentive Plan 2009 | ||||||
Restricted Shares | ||||||
Number of additional awards available for grant (in shares) | 0 | |||||
Incentive Plan 2012 and Incentive Plan 2009 | Restricted Stock | ||||||
Restricted Shares | ||||||
Shares outstanding (in shares) | 666,775 | |||||
Subsequent Event | Incentive Plan 2016 | Restricted Stock | ||||||
Restricted Shares | ||||||
Issued (in shares) | 147,050 |
Real Estate Properties (Details
Real Estate Properties (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | |
Real Estate Properties | |||
Land | $ 126,242,000 | $ 128,409,000 | |
Building | 638,348,000 | 684,133,000 | |
Building improvements | 26,964,000 | 25,717,000 | |
Real estate properties | 791,554,000 | 838,259,000 | |
Accumulated depreciation | (45,371,000) | (44,687,000) | |
Real estate loan | 5,900,000 | 19,500,000 | |
Total real estate properties, net | $ 793,572,000 | 746,183,000 | 793,572,000 |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Real estate properties, beginning balance | 793,572,000 | ||
Additions | 47,974,000 | ||
Capitalized Costs and Improvements | 2,971,000 | ||
Depreciation | (6,297,000) | ||
Sales | (92,037,000) | ||
Real estate properties, ending balance | 746,183,000 | ||
Multi-family | |||
Real Estate Properties | |||
Total real estate properties, net | 783,085,000 | 735,597,000 | 783,085,000 |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Real estate properties, beginning balance | 783,085,000 | ||
Additions | 47,974,000 | ||
Capitalized Costs and Improvements | 2,845,000 | ||
Depreciation | (6,270,000) | ||
Sales | (92,037,000) | ||
Real estate properties, ending balance | 735,597,000 | ||
Land | |||
Real Estate Properties | |||
Total real estate properties, net | 8,021,000 | 8,021,000 | 8,021,000 |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Real estate properties, beginning balance | 8,021,000 | ||
Additions | 0 | ||
Capitalized Costs and Improvements | 0 | ||
Depreciation | 0 | ||
Sales | 0 | ||
Real estate properties, ending balance | 8,021,000 | ||
Shopping centers/Retail | Variable Interest Entity, Primary Beneficiary | RBHTRB Newark Holdings LLC | |||
Real Estate Properties | |||
Total real estate properties, net | 2,466,000 | 2,565,000 | 2,466,000 |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Real estate properties, beginning balance | 2,466,000 | ||
Additions | 0 | ||
Capitalized Costs and Improvements | 126,000 | ||
Depreciation | (27,000) | ||
Sales | 0 | ||
Real estate properties, ending balance | $ 2,565,000 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | RBHTRB Newark Holdings LLC | |||
Real Estate Properties | |||
Real estate loan | $ 5,900,000 | $ 19,500,000 |
Real Estate Properties - Assets
Real Estate Properties - Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |
Total consideration | $ 39,133 |
Land | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |
Real estate property | 8,957 |
Buildings and Improvements | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |
Real estate property | 29,601 |
Acquisition-related intangible assets | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |
Acquisition-related intangibles | $ 575 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Schedule of Property Acquisitions (Details) | Nov. 04, 2016USD ($)property_unit | Dec. 31, 2016USD ($)property_unit | Dec. 31, 2015USD ($) |
Real Estate Properties | |||
No. of Units | property_unit | 8,624 | ||
Capitalized Acquisition Costs | $ 0 | $ 57,000 | |
Corporate Joint Venture | Variable Interest Entity, Primary Beneficiary | Fredricksburg, VA | Multi-family | Property Acquisition | |||
Real Estate Properties | |||
No. of Units | property_unit | 220 | ||
Contract Purchase Price | $ 38,490,000 | ||
Initial BRT Equity | $ 8,720,000 | ||
Ownership Percentage | 80.00% | ||
Capitalized Acquisition Costs | $ 643,000 | ||
Corporate Joint Venture | Variable Interest Entity, Primary Beneficiary | Fredricksburg, VA | Multi-family | Property Acquisition | Mortgages | |||
Real Estate Properties | |||
Acquisition Mortgage Debt | $ 29,940,000 |
Acquisitions and Dispositions40
Acquisitions and Dispositions - Property Dispositions (Details) $ in Thousands | Dec. 21, 2016USD ($)property_unit | Nov. 30, 2016USD ($)property_unit | Nov. 21, 2016USD ($)property_unit | Oct. 26, 2016USD ($)property_unit | Oct. 19, 2016USD ($)property_unit | Dec. 31, 2016USD ($)property_unit |
Business Acquisition [Line Items] | ||||||
No. of Units | property_unit | 8,624 | |||||
Discontinued Operations, Disposed of by Sale | ||||||
Business Acquisition [Line Items] | ||||||
No. of Units | property_unit | 1,017 | |||||
Sales Price | $ 130,710 | |||||
Gain on Sale | 35,838 | |||||
Non-controlling partner portion of gain | $ 17,125 | |||||
Discontinued Operations, Disposed of by Sale | Greenville, SC | ||||||
Business Acquisition [Line Items] | ||||||
No. of Units | property_unit | 350 | |||||
Sales Price | $ 68,000 | |||||
Gain on Sale | 18,483 | |||||
Non-controlling partner portion of gain | $ 9,329 | |||||
Discontinued Operations, Disposed of by Sale | Panama City, FL | ||||||
Business Acquisition [Line Items] | ||||||
No. of Units | property_unit | 160 | |||||
Sales Price | $ 14,720 | |||||
Gain on Sale | 7,393 | |||||
Non-controlling partner portion of gain | $ 3,478 | |||||
Discontinued Operations, Disposed of by Sale | Atlanta, GA | ||||||
Business Acquisition [Line Items] | ||||||
No. of Units | property_unit | 350 | |||||
Sales Price | $ 36,750 | |||||
Gain on Sale | 8,905 | |||||
Non-controlling partner portion of gain | $ 4,166 | |||||
Discontinued Operations, Disposed of by Sale | Hixon, TN | ||||||
Business Acquisition [Line Items] | ||||||
No. of Units | property_unit | 156 | |||||
Sales Price | $ 10,775 | |||||
Gain on Sale | 608 | |||||
Non-controlling partner portion of gain | $ 152 | |||||
Discontinued Operations, Disposed of by Sale | New York, NY | ||||||
Business Acquisition [Line Items] | ||||||
No. of Units | property_unit | 1 | |||||
Sales Price | $ 465 | |||||
Gain on Sale | 449 | |||||
Non-controlling partner portion of gain | $ 0 |
Real Estate Loan (Details)
Real Estate Loan (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Mortgage Loans on Real Estate [Line Items] | |||
Collections from real estate loans | $ 13,600,000 | $ 0 | |
Real estate loan | 5,900,000 | $ 19,500,000 | |
Stated rate | 11.00% | ||
RBHTRB Newark Holdings LLC | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Mortgage Loans on Real Estate [Line Items] | |||
Collections from real estate loans | 13,600,000 | ||
Proceeds from interest received | 2,606,000 | ||
Real estate loan | $ 5,900,000 | $ 19,500,000 |
Real Estate Property Held For42
Real Estate Property Held For Sale - Narrative (Details) - USD ($) $ in Thousands | Nov. 21, 2016 | Oct. 26, 2016 |
Atlanta, GA | ||
Real Estate [Line Items] | ||
Real estate held for sale | $ 27,102 | |
Panama City, FL | ||
Real Estate [Line Items] | ||
Real estate held for sale | $ 6,920 |
Investments in Unconsolidated43
Investments in Unconsolidated Ventures (Details) | 3 Months Ended | |
Dec. 31, 2016USD ($)propertyinvestment | Dec. 31, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Number of investments | investment | 2 | |
Contributions of unconsolidated joint ventures | $ | $ 14,335,000 | $ 0 |
Number of properties | property | 30 | |
Joint Venture, Thirty Two Percent Ownership | ||
Schedule of Equity Method Investments [Line Items] | ||
Contributions of unconsolidated joint ventures | $ | $ 5,670,000 | |
Joint ventures ownership percentage | 32.00% | |
Number of properties | property | 374 | |
Joint Venture, Forty Six Percent Ownership | ||
Schedule of Equity Method Investments [Line Items] | ||
Contributions of unconsolidated joint ventures | $ | $ 8,665,000 | |
Joint ventures ownership percentage | 46.00% | |
Number of real estate properties, to be constructed | property | 339 |
Debt Obligations (Details)
Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Debt Obligations | ||
Mortgage payable held for sale | $ 0 | $ 27,052 |
Total debt obligations | 610,580 | 652,507 |
Deferred mortgage costs | (5,588) | (6,275) |
Mortgages payable | ||
Debt Obligations | ||
Total debt obligations | 578,768 | 621,382 |
Deferred mortgage costs | (5,191) | (5,873) |
Junior subordinated notes | ||
Debt Obligations | ||
Total debt obligations | 37,400 | 37,400 |
Deferred mortgage costs | $ (397) | $ (402) |
Debt Obligations - Mortgage Pay
Debt Obligations - Mortgage Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Nov. 04, 2016 | |
Southridge Financing | ||
Debt Obligations | ||
Advances on construction loans | $ 7,107 | |
Debt instrument, unused borrowing capacity | 9,614 | |
Mortgages | Mortgages Maturing in February 2027 | ||
Debt Obligations | ||
Acquisition Mortgage Debt | ||
Mortgages | Mortgages Maturing in February 2027 | Fredricksburg, VA | ||
Debt Obligations | ||
Acquisition Mortgage Debt | $ 27,638 | |
Interest Rate | 3.68% | |
Mortgages | Additional Mortgages Obtained | Fredricksburg, VA | ||
Debt Obligations | ||
Acquisition Mortgage Debt | $ 2,261 | |
Interest Rate | 4.84% |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | |||
Debt issuance, costs | $ 5,588,000 | $ 6,275,000 | |
Junior subordinated notes | |||
Debt Instrument [Line Items] | |||
Total debt obligations | 37,400,000 | 37,400,000 | |
Debt issuance, costs | 397,000 | $ 402,000 | |
Interest expense | $ 274,000 | $ 463,000 | |
London Interbank Offered Rate (LIBOR) | Debt Instrument, Interest Rate 30 April, 2016 Through 30 April, 2036 | Junior subordinated notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.89% | ||
Basis spread on variable rate | 2.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Related party - general and administrative | $ 79,000 | $ 26,000 |
Related party - interest expense | 0 | 24,000 |
Real Property Management Real Estate Brokerage And Construction Supervision Services | Majestic Property Management Corporation | ||
Related Party Transaction [Line Items] | ||
Related party expense | 8,000 | 11,000 |
Shared Services Agreement | Gould Investors Limited Partnership | ||
Related Party Transaction [Line Items] | ||
Related party - general and administrative | 79,000 | 51,000 |
Affiliated Entity | Payment Of Acquisition Fee | ||
Related Party Transaction [Line Items] | ||
Related party expense | 924,000 | 422,000 |
Amended And Restated Advisory Agreement January 2012 | Real Estate Investment Trust Management Corporation | ||
Related Party Transaction [Line Items] | ||
Related party expense | 693,000 | |
Unsecured Short Term Borrowing From Gould Investors L.P. | Notes Payable, Other Payables | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Debt instrument, face amount | $ 8,000,000 | |
Related party - interest expense | $ 24,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Revenues: | |||
Rental and other revenues from real estate properties | $ 25,029 | $ 22,319 | |
Other income | 611 | 7 | |
Total revenues | 25,640 | 22,326 | |
Expenses: | |||
Real estate operating expenses | 12,446 | 11,094 | |
Interest expense | 6,687 | 5,531 | |
Advisor’s fees, related party | 0 | 693 | |
Property acquisition costs | 0 | 57 | |
General and administrative | 2,597 | 1,749 | |
Provision for Federal Tax | 350 | 0 | |
Depreciation | 6,297 | 4,984 | |
Total expenses | 28,377 | 24,108 | |
Total revenue less total expenses | (2,737) | (1,782) | |
Gain on sale of real estate | 35,838 | 609 | |
Net income (loss) | 32,302 | (2,773) | |
Income (loss) from continuing operations | 32,302 | (1,173) | |
Net (income) attributable to non-controlling interests | (16,532) | 739 | |
Net income attributable to common shareholders before reconciling items | 15,770 | (1,393) | |
Reconciling adjustment: | |||
Discontinued operations | 0 | (641) | |
Net income (loss) attributable to common shareholders | 15,770 | (2,034) | |
Total Assets | 849,074 | 880,482 | $ 874,899 |
Multi-Family Real Estate | |||
Reconciling adjustment: | |||
Total Assets | 832,265 | 689,231 | |
Other Real Estate | |||
Reconciling adjustment: | |||
Total Assets | 16,809 | 191,251 | |
Operating Segments | |||
Revenues: | |||
Rental and other revenues from real estate properties | 25,029 | 22,319 | |
Other income | 611 | 7 | |
Total revenues | 25,640 | 22,326 | |
Expenses: | |||
Real estate operating expenses | 12,446 | 11,094 | |
Interest expense | 6,687 | 5,531 | |
Advisor’s fees, related party | 693 | ||
Property acquisition costs | 57 | ||
General and administrative | 2,597 | 1,749 | |
Provision for Federal Tax | 350 | ||
Depreciation | 6,297 | 4,984 | |
Total expenses | 28,377 | 24,108 | |
Total revenue less total expenses | (2,737) | (1,782) | |
Gain on sale of real estate | 35,838 | 609 | |
Net income (loss) | (1,173) | ||
Loss on extinguishment of debt | (799) | ||
Income (loss) from continuing operations | 32,302 | ||
Net (income) attributable to non-controlling interests | (16,532) | (220) | |
Net income attributable to common shareholders before reconciling items | 15,770 | (1,393) | |
Operating Segments | Multi-Family Real Estate | |||
Revenues: | |||
Rental and other revenues from real estate properties | 24,643 | 22,003 | |
Other income | 0 | 0 | |
Total revenues | 24,643 | 22,003 | |
Expenses: | |||
Real estate operating expenses | 12,349 | 10,944 | |
Interest expense | 6,092 | 5,459 | |
Advisor’s fees, related party | 594 | ||
Property acquisition costs | 57 | ||
General and administrative | 2,544 | 1,661 | |
Provision for Federal Tax | 343 | ||
Depreciation | 6,270 | 4,957 | |
Total expenses | 27,598 | 23,672 | |
Total revenue less total expenses | (2,955) | (1,669) | |
Gain on sale of real estate | 35,389 | 0 | |
Net income (loss) | (1,669) | ||
Loss on extinguishment of debt | (799) | ||
Income (loss) from continuing operations | 31,635 | ||
Net (income) attributable to non-controlling interests | (16,497) | (199) | |
Net income attributable to common shareholders before reconciling items | 15,138 | (1,868) | |
Operating Segments | Other Real Estate | |||
Revenues: | |||
Rental and other revenues from real estate properties | 386 | 316 | |
Other income | 611 | 7 | |
Total revenues | 997 | 323 | |
Expenses: | |||
Real estate operating expenses | 97 | 150 | |
Interest expense | 595 | 72 | |
Advisor’s fees, related party | 99 | ||
Property acquisition costs | 0 | ||
General and administrative | 53 | 88 | |
Provision for Federal Tax | 7 | ||
Depreciation | 27 | 27 | |
Total expenses | 779 | 436 | |
Total revenue less total expenses | 218 | (113) | |
Gain on sale of real estate | 449 | 609 | |
Net income (loss) | 496 | ||
Loss on extinguishment of debt | 0 | ||
Income (loss) from continuing operations | 667 | ||
Net (income) attributable to non-controlling interests | (35) | (21) | |
Net income attributable to common shareholders before reconciling items | $ 632 | 475 | |
Segment Reconciling Items | |||
Reconciling adjustment: | |||
Discontinued operations | $ (641) |
Fair Value of Financial Instr49
Fair Value of Financial Instruments (Details) - Level 2 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Sep. 30, 2016 | |
Market Approach Valuation Technique | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 6.48% | 6.37% |
Market Approach Valuation Technique | Mortgages | Minimum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 3.81% | 3.05% |
Market Approach Valuation Technique | Mortgages | Maximum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 5.01% | 4.25% |
Carrying and Fair Value | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value lower than carrying value | $ 16,408 | $ 16,549 |
Carrying and Fair Value | Mortgages | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value lower than carrying value | $ 13,734 | $ 10,629 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) - Fair Value Measurements Recurring - Interest rate swap $ in Thousands | Dec. 31, 2016USD ($) |
Level 1 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Derivative financial instruments | $ 0 |
Level 2 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Derivative financial instruments | 1,666 |
Carrying and Fair Value | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Derivative financial instruments | $ 1,666 |
Derivative Financial Instrume51
Derivative Financial Instruments (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||
Amount of gain recognized on derivative in Other Comprehensive Income (loss) | $ 3,123,000 | $ 12,000 | |
Gain or loss recognized related to hedge ineffectiveness | 0 | 0 | |
Gain from components excluded from assessment of cash flow hedge effectiveness | 0 | 0 | |
Estimated amount to be reclassified from Accumulated other comprehensive income (loss) as an increase to interest expense | 343,000 | ||
Interest Expense | |||
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||
Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income (loss) into Interest Expense | (145,000) | $ (8,000) | |
Accounts Payable And Accrued Liabilities | |||
Fair value of derivative financial instruments | |||
Fair value of derivative financial instrument liability | 1,666,000 | $ 1,602,000 | |
Designated As Hedging Instrument | Interest Rate Swap, Maturity Date April 1, 2022 | |||
Interest Rate Derivatives | |||
Notional Amount | $ 1,531,000 | ||
Rate (as a percent) | 5.25% | ||
Designated As Hedging Instrument | Interest Rate Swap, Maturity Date May 6, 2023 | |||
Interest Rate Derivatives | |||
Notional Amount | $ 26,400,000 | ||
Rate (as a percent) | 3.61% | ||
Designated As Hedging Instrument | Interest Rate Swap, Maturity Date September 19, 2026 | |||
Interest Rate Derivatives | |||
Notional Amount | $ 27,000,000 | ||
Rate (as a percent) | 4.05% |
Derivative Financial Instrume52
Derivative Financial Instruments - Credit-Risk-Related Contingent Features (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivatives in a liability position | $ 24 |
Assets needed if breach of agreement | $ 24 |
New Accounting Pronouncements -
New Accounting Pronouncements - (Details) $ in Thousands | Dec. 31, 2016USD ($) |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2017-01 | Retained earnings | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 643 |