Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2013 | Feb. 05, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'BRT REALTY TRUST | ' |
Entity Central Index Key | '0000014846 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 14,303,487 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Real estate properties, net of accumulated depreciation and amortization of $14,685 and $11,862 | $479,681 | $396,021 |
Real estate loans, net, all earning interest | 20,250 | 30,300 |
Cash and cash equivalents | 52,306 | 60,265 |
Restricted cash - construction holdbacks | 25,074 | 29,279 |
Deferred costs | 13,058 | 12,767 |
Prepaid expenses | 4,102 | 3,955 |
Assets of discontinued operations | 7,095 | 7,155 |
Other assets | 12,005 | 9,749 |
Total Assets | 613,571 | 549,491 |
Liabilities: | ' | ' |
Mortgages payable | 369,795 | 308,529 |
Junior subordinated notes | 37,400 | 37,400 |
Accounts payable and accrued liabilities | 7,817 | 6,319 |
Deposits payable | 1,424 | 1,258 |
Deferred income | 25,848 | 25,848 |
Liabilities of discontinued operations | 4,768 | 4,879 |
Total Liabilities | 447,052 | 384,233 |
Commitments and contingencies | ' | ' |
BRT Realty Trust shareholders' equity: | ' | ' |
Preferred shares, $1 par value: Authorized 10,000 shares, none issued | ' | ' |
Shares of beneficial interest, $3 par value: Authorized number of shares, unlimited, 13,535 issued in both periods | 40,606 | 40,606 |
Additional paid-in capital | 165,943 | 165,763 |
Accumulated other comprehensive income (loss) | 21 | -6 |
Accumulated deficit | -70,305 | -67,572 |
Total BRT Realty Trust shareholders' equity | 136,265 | 138,791 |
Non-controlling interests | 30,254 | 26,467 |
Total Equity | 166,519 | 165,258 |
Total Liabilities and Equity | $613,571 | $549,491 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Real estate properties, accumulated depreciation (in dollars) | $14,685 | $11,862 |
Preferred shares, par value (in dollars per share) | $1 | $1 |
Preferred shares, Authorized shares | 10,000 | 10,000 |
Preferred shares, issued shares | 0 | 0 |
Shares of beneficial interest, par value (in dollars per share) | $3 | $3 |
Shares of beneficial interest, issued shares | 13,535 | 13,535 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | ' | ' |
Rental and other revenue from real estate properties | $13,439 | $5,299 |
Interest and fees on real estate loans | 1,138 | 1,879 |
Other income | 271 | 732 |
Total revenues | 14,848 | 7,910 |
Expenses: | ' | ' |
Operating expenses relating to real estate properties | 7,442 | 2,911 |
Interest expense | 4,700 | 2,891 |
Advisor's fees, related party | 449 | 374 |
Property acquisition costs | 1,181 | 878 |
General and administrative-including $213 and $205 to related party | 1,756 | 1,863 |
Depreciation and amortization | 3,141 | 1,238 |
Total expenses | 18,669 | 10,155 |
Total revenues less total expenses | -3,821 | -2,245 |
Equity in earnings of unconsolidated ventures | ' | 61 |
Loss income from continuing operations | -3,821 | -2,184 |
Discontinued operations: | ' | ' |
Income from operations | 70 | 2 |
Net loss | -3,751 | -2,182 |
Plus: net loss attributable to non- controlling interests | 1,018 | 878 |
Net loss attributable to common shareholders | -2,733 | -1,304 |
Basic and diluted per share amounts attributable to common shareholders: | ' | ' |
Loss from continuing operations (in dollars per share) | ($0.19) | ($0.09) |
Basic and diluted loss per share (in dollars per share) | ($0.19) | ($0.09) |
Amounts attributable to BRT Realty Trust: | ' | ' |
Loss from continuing operations | -2,803 | -1,306 |
Discontinued operations | 70 | 2 |
Net loss | ($2,733) | ($1,304) |
Weighted average number of common shares outstanding: | ' | ' |
Basic and diluted (in shares) | 14,162,887 | 14,053,362 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' |
General and administrative, related party | $213 | $205 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ' | ' |
Net loss | ($3,751) | ($2,182) |
Other comprehensive income (loss): | ' | ' |
Net unrealized loss on available-for-sale securities | ' | -23 |
Unrealized gain on derivative instruments | 27 | 11 |
Other comprehensive income (loss) | 27 | -12 |
Comprehensive loss | -3,724 | -2,194 |
Comprehensive loss attributable to non-controlling interests | 1,014 | 880 |
Comprehensive loss attributable to common shareholders | ($2,710) | ($1,314) |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Shares of Beneficial Interest | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Non Controlling Interests | Comprehensive loss |
In Thousands, unless otherwise specified | |||||||
Balances at Sep. 30, 2013 | $165,258 | $40,606 | $165,763 | ($6) | ($67,572) | $26,467 | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Compensation expense-restricted stock | 180 | ' | 180 | ' | ' | ' | ' |
Contributions from non-controlling interests | 5,300 | ' | ' | ' | ' | 5,300 | ' |
Distributions to non-controlling interests | -495 | ' | ' | ' | ' | -495 | ' |
Net loss | -3,751 | ' | ' | ' | -2,733 | -1,018 | -3,751 |
Other comprehensive income | 27 | ' | ' | 27 | ' | ' | 27 |
Comprehensive loss | -3,724 | ' | ' | ' | ' | ' | -3,724 |
Balances at Dec. 31, 2013 | $166,519 | $40,606 | $165,943 | $21 | ($70,305) | $30,254 | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($3,751) | ($2,182) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' |
Recovery of previously provided allowances | ' | -422 |
Amortization and depreciation | 3,646 | 1,683 |
Amortization of deferred fee income | -224 | -333 |
Amortization of restricted stock | 180 | 193 |
Equity in earnings of unconsolidated joint ventures | ' | -61 |
Distribution of earnings of unconsolidated joint ventures | 4 | 45 |
Increases and decreases from changes in other assets and liabilities: | ' | ' |
Change in straight-line rent | -135 | 3 |
Decrease (increase) in interest and dividends receivable | 92 | -44 |
Increase in prepaid expenses | -488 | -406 |
Decrease in prepaid interest | 341 | 814 |
Increase in accounts payable and accrued liabilities | 1,560 | 376 |
Increase in deferred costs | ' | -152 |
(Increase) decrease in security deposits and other receivable | -2,203 | 567 |
Other | 40 | 214 |
Net cash (used in) provided by operating activities | -938 | 295 |
Cash flows from investing activities: | ' | ' |
Collections from real estate loans | 15,244 | 8,657 |
Additions to real estate loans | -5,103 | -42,818 |
Loan loss recoveries | ' | 422 |
Additions to real estate properties | -81,520 | -57,400 |
Net costs capitalized to real estate owned | -5,305 | -8,791 |
Net change in restricted cash - construction holdbacks | 4,205 | 5,655 |
Collection of loan fees | 132 | 877 |
Proceeds from the sale of real estate owned | ' | 6 |
Net cash used in investing activities | -72,347 | -93,392 |
Cash flows from financing activities: | ' | ' |
Increase in mortgages payable | 61,611 | 46,010 |
Mortgage principal payments | -345 | -484 |
Increase in deferred borrowing costs | -744 | -558 |
Capital contributions from non-controlling interests | 5,300 | 2,894 |
Capital distribution to non-controlling interests | -496 | -397 |
Net cash provided by financing activities | 65,326 | 47,465 |
Net decrease in cash and cash equivalents | -7,959 | -45,632 |
Cash and cash equivalents at beginning of period | 60,265 | 78,245 |
Cash and cash equivalents at end of period | 52,306 | 32,613 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid during the period for interest | 4,158 | 2,316 |
Taxes paid | 11 | 3 |
Real estate property reclassified to assets of discontinued operations | $6,853 | $6,875 |
Organization_and_Background
Organization and Background | 3 Months Ended |
Dec. 31, 2013 | |
Organization and Background | ' |
Organization and Background | ' |
Note 1 — Organization and Background | |
BRT Realty Trust (“BRT” or the “Trust”) is a business trust organized in Massachusetts. BRT owns and operates multi-family properties, originates and holds for investment senior mortgage loans secured by commercial and multi-family real estate property and owns and operates commercial and mixed use real estate assets. All of the properties owned or securing mortgage loans are located in the United States. | |
The multi-family properties are generally acquired with venture partners in transactions in which the Trust contributes 50% to 90% 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 | 3 Months Ended |
Dec. 31, 2013 | |
Basis of Preparation | ' |
Basis of Preparation | ' |
Note 2 - Basis of Preparation | |
The accompanying interim unaudited consolidated financial statements as of December 31, 2013 and for the three months ended December 31, 2013 and 2012 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 months ended December 31, 2013 are not necessarily indicative of the results for the full year. The balance sheet as of September 30, 2013 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 for complete financial statements. | |
Certain items on the consolidated financial statements for the preceding period have been reclassified to conform with the current period’s presentation, primarily to reclassify the assets and liabilities of a property held for sale to assets and liabilities of discontinued operations and to reclassify the operations of this property to discontinued operations. | |
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 VIE. | |
The Trust’s consolidated joint ventures that own multi-family properties, with the exception of its Mountain Park joint venture, 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. The Trust was determined to be 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 from the entity that could potentially be significant to the VIE. | |
The joint venture that owns the Mountain Park property was determined not to be a VIE but is consolidated because the Trust has substantive participating rights in the entity giving it a controlling financial interest in the entity. | |
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 | 3 Months Ended |
Dec. 31, 2013 | |
Equity | ' |
Equity | ' |
Note 3 - Equity | |
Common Share Dividend Distribution | |
During the quarter ended December 31, 2013, 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. As of December 31, 2013, 131,525 shares were issued pursuant to this plan of which 50 shares had vested and 131,475 shares are outstanding. In January 2014, the Trust granted 140,600 shares of restricted stock pursuant to this plan. An aggregate of 495,950 shares of restricted stock are outstanding pursuant to the Trust’s 2003 and 2009 equity incentive plans (collectively, the “Prior Plans”) and have not yet vested. No additional awards may be granted under the Prior Plans. The restricted shares that have been granted under the 2012 Incentive Plan and the Prior Plans 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, 2013 and 2012, the Trust recorded $180,000 and $193,000 of compensation expense respectively. At December 31, 2013, $1,704,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods. The weighted average vesting period is 2.4 years. | |
Per Share Data | |
Basic earnings (loss) per share was determined by dividing net income (loss) applicable to common shareholders for the applicable year by the weighted average number of shares of beneficial interest 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 plus the dilutive effect of the Trust’s unvested restricted stock and outstanding options and warrants using the treasury stock method. | |
Basic and diluted shares outstanding for the three months ended December 31, 2013 and 2012, were 14,162,887 and 14,053,362, respectively. |
Real_Estate_Properties
Real Estate Properties | 3 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Real Estate Properties | ' | |||||||||||||||||
Real Estate Properties | ' | |||||||||||||||||
Note 4 - Real Estate Properties | ||||||||||||||||||
A summary of real estate properties owned is as follows (dollars in thousands): | ||||||||||||||||||
September | Additions (a) | Capitalized | Depreciation, | December 31, | ||||||||||||||
30, 2013 | Costs and | Amortization | 2013 | |||||||||||||||
Balance | Improvements | and other | Balance | |||||||||||||||
reductions | ||||||||||||||||||
Multi-family | $ | 292,917 | $ | 81,520 | $ | 1,077 | $ | (2,716 | ) | $ | 372,798 | |||||||
Commercial / mixed use (b) | 92,354 | — | 4,205 | (397 | ) | 96,162 | ||||||||||||
Vacant land | 7,972 | — | — | — | 7,972 | |||||||||||||
Retail/Shopping centers | 2,645 | — | — | (25 | ) | 2,620 | ||||||||||||
Coop/condo apartments | 133 | — | — | (4 | ) | 129 | ||||||||||||
Total real estate properties | $ | 396,021 | $ | 81,520 | $ | 5,282 | $ | (3,142 | ) | $ | 479,681 | |||||||
(a) In the quarter ended December 31, 2013, the Trust purchased, through consolidated joint ventures in which the Trust has an 80% equity interest (except for the Columbus, Ohio property which is wholly owned), the following multi-family properties (dollars in thousands): | ||||||||||||||||||
Location | Purchase | No of | Contract | Acquisition | BRT | Property | ||||||||||||
Date | Units | Purchase | Mortgage | Equity | Acquisition | |||||||||||||
Price | Debt | Costs | ||||||||||||||||
Houston, TX | 10/4/13 | 798 | $ | 32,800 | $ | 24,100 | $ | 10,525 | $ | 474 | ||||||||
Pasadena, TX | 10/15/13 | 144 | 5,420 | 4,065 | 1,687 | 125 | ||||||||||||
Humble, TX | 10/15/13 | 260 | 10,500 | 7,875 | 3,129 | 180 | ||||||||||||
Humble, TX | 10/15/13 | 160 | 6,700 | 5,025 | 1,908 | 129 | ||||||||||||
Huntsville, AL | 10/18/13 | 208 | 12,050 | 9,573 | 3,950 | 176 | ||||||||||||
Columbus, OH | 11/21/13 | 264 | 14,050 | 10,651 | 3,734 | 97 | ||||||||||||
1,834 | $ | 81,520 | $ | 61,289 | $ | 24,933 | $ | 1,181 | ||||||||||
(b) Represents the real estate assets of RBH-TRB Newark Holdings LLC, a consolidated VIE 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, which includes 190,000 square feet currently under construction. Certain of these assets are subject to mortgages in the aggregate principal balance of $20,100,000 held by the Trust, which are eliminated in consolidation. Several of the assets are also encumbered by other mortgages which are discussed in Note 7—Debt Obligations. The Trust contributed capital of $1,729,000 to this venture in the year ended September 30, 2013, representing its proportionate share of capital required to fund the operations of the venture for the venture’s current fiscal year and to purchase additional land parcels. | ||||||||||||||||||
On January 21, 2014, the Trust purchased, through a consolidated joint venture in which it has an 80% equity interest, a 400 unit multi- family property in Indianapolis, IN. The purchase price was $18,830,000, including $14,500,000 of mortgage debt. The Trust contributed $5,300,000 of equity to this venture. | ||||||||||||||||||
In January 2014, the Trust’s wholly-owned subsidiary entered into a joint venture with affiliates of The Beach Company. The joint venture paid approximately $7 million for a vacant parcel of land located in Greenville, South Carolina and obtained access to construction financing of up to $38.6 million. The construction loan, which is to be funded as and when customary construction financing conditions are met, is secured by a first mortgage on the property. The Trust contributed approximately $6.4 million (subject to additional capital contributions of up to $3.3 million through May 2014) to the joint venture in exchange for a 74.4% equity interest therein. |
Assets_of_Discontinued_Operati
Assets of Discontinued Operations | 3 Months Ended |
Dec. 31, 2013 | |
Assets of Discontinued Operations | ' |
Assets of Discontinued Operations | ' |
Note 5 — Assets of Discontinued Operations | |
At December 31, 2013 the Trust classified the assets and liabilities of a property to assets and liabilities of discontinued operations. The property is located in Lawrenceville, GA and is under contract for sale. The property has a book value of $4,102,000. The Trust estimates that an approximate $1,300,000 gain will be realized on the sale. |
Real_Estate_Loans
Real Estate Loans | 3 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Real Estate Loans | ' | |||||||||||
Real Estate Loans | ' | |||||||||||
Note 6 - Real Estate Loans | ||||||||||||
Information relating to real estate loans, all of which are earning interest, is summarized as follows (dollars in thousands): | ||||||||||||
December 31, 2013 | September 30, 2013 | |||||||||||
Property Type | Real Estate | Percent | Real Estate | Percent | ||||||||
Loans | Loans | |||||||||||
Multi-family residential | $ | 12,200 | 60 | % | $ | 16,772 | 55 | % | ||||
Hotel | 1,680 | 8 | % | 1,680 | 6 | % | ||||||
Land | — | — | 8,000 | 26 | % | |||||||
Retail | 6,491 | 32 | % | 3,100 | 10 | % | ||||||
Single family | — | — | 961 | 3 | % | |||||||
20,371 | 100 | % | 30,513 | 100 | % | |||||||
Deferred fee income | (121 | ) | (213 | ) | ||||||||
Real estate loans, net | $ | 20,250 | $ | 30,300 | ||||||||
Substantially all of the Trust’s loan portfolio consists of senior mortgage loans secured by real properties, 63% of which are located in New York, 22% in Maryland, 8% in Tennessee, and 7% in Florida. |
Debt_Obligations
Debt Obligations | 3 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Debt Obligations | ' | ||||||||||||
Debt Obligations | ' | ||||||||||||
Note 7 — Debt Obligations | |||||||||||||
Debt obligations consist of the following (dollars in thousands): | |||||||||||||
December 31, 2013 | September 30, 2013 | ||||||||||||
Junior subordinated notes | $ | 37,400 | $ | 37,400 | |||||||||
Mortgages payable | 369,795 | 308,529 | |||||||||||
Mortgage payable — property held for sale | 4,687 | 4,687 | |||||||||||
Total debt obligations | $ | 411,882 | $ | 350,616 | |||||||||
Junior Subordinated Notes | |||||||||||||
At December 31, 2013 and September 30, 2013, 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 | 4.90% | ||||||||||||
April 30, 2016 through April 30, 2036 | Libor + 2.00% | ||||||||||||
Interest expense relating to the junior subordinated notes was $458,000, in each of the three month periods ended December 31, 2013 and 2012. Amortization of the deferred costs, which is a component of interest expense was $5,000 for each of the three months ended December 31, 2013 and 2012. | |||||||||||||
Mortgages Payable | |||||||||||||
In the quarter ended December 31, 2013, the Trust purchased six additional properties (five through joint ventures and one wholly-owned) and incurred the following debt (dollars in thousands): | |||||||||||||
Location | Purchase | Acquisition | Interest | Interest Only | Maturity Date | ||||||||
Date | Mortgage | Rate | Period | ||||||||||
Debt | |||||||||||||
Houston, TX | 10/4/13 | $ | 24,100 | 4.85 | % | 12 months | October 2018 | ||||||
Pasadena, TX | 10/15/13 | 4,065 | 4.9 | % | 12 months | November 2018 | |||||||
Humble, TX | 10/15/13 | 7,875 | 4.9 | % | 12 months | November 2018 | |||||||
Humble, TX | 10/15/13 | 5,025 | 4.9 | % | 12 months | November 2018 | |||||||
Huntsville, AL | 10/18/13 | 9,573 | 4.99 | % | 24 months | November 2023 | |||||||
Columbus, OH | 11/21/13 | 10,651 | 4.35 | % | — | February 2045 | |||||||
$ | 61,289 |
Deferred_Income_New_Markets_Ta
Deferred Income (New Markets Tax Credit Transaction) | 3 Months Ended |
Dec. 31, 2013 | |
Deferred Income (New Markets Tax Credit Transaction) | ' |
Deferred Income (New Markets Tax Credit Transaction) | ' |
Note 8 — Deferred Income (New Markets Tax Credit Transaction) | |
On September 11, 2012 and February 3, 2012, special purpose subsidiaries of the Newark Joint Venture entered into transactions with affiliates of Goldman Sachs (“Goldman”) related to the Teacher’s Village project and received proceeds related to New Market Tax Credits (“NMTC”) program for which the project qualified. 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. | |
Goldman contributed $16,400,000 and $11,200,000 to the projects through special-purpose entities created to effect the financing transaction and is entitled to receive tax credits against its qualified investment in the project over the next seven years. 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. | |
Deferred income on the Trust’s consolidated balance sheet at December 31, 2013 and September 30, 2013 represents the Goldman contribution, which is net of fees. This amount will be recognized into income when the obligation 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”), is eliminated. Risks of non-compliance include recapture (i.e. reversal of the benefit of the tax credit and the related indemnity obligation of the Newark Joint Venture). 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 related to the NMTC transaction. At December 31, 2013 and September 30, 2013 these costs totaled $9.3 million and $9.6 million, respectively, and are included in deferred costs on the consolidated balance sheets. | |
The Trust determined that these special purpose entities are VIE’s. The VIE’s 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 and provide guarantees to Goldman and the Trust’s obligations to absorb the losses of the VIE. Management also considered Goldman’s lack of a material interest in the underlying economics of the project. Management concluded that the Trust is the primary beneficiary and has therefore consolidated the VIE’s. |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Segment Reporting | ' | |||||||||||||
Note 9 - Segment Reporting | ||||||||||||||
Management has determined that it operates in three reportable segments: a multi-family property segment which includes the ownership and operation of its multi-family properties; a loan and investment segment which includes the origination and servicing of our loan portfolio and its investments; and an other real estate segment which includes the operation and disposition of the its other real estate assets and, in particular, the Newark Joint Venture. | ||||||||||||||
The following table summarizes our segment reporting for the periods indicated (dollars in thousands): | ||||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||
Multi- | Loan and | Other | Total | |||||||||||
Family | Investment | Real Estate | ||||||||||||
Real Estate | ||||||||||||||
Rental and other revenues from real estate properties | $ | 12,239 | — | $ | 1,200 | $ | 13,439 | |||||||
Interest and fees on real estate loans | — | $ | 1,138 | — | 1,138 | |||||||||
Other income | — | 6 | 265 | 271 | ||||||||||
Total revenues | 12,239 | 1,144 | 1,465 | 14,848 | ||||||||||
Operating expenses relating to real estate properties | 6,368 | — | 1,074 | 7,442 | ||||||||||
Interest expense | 3,429 | 72 | 1,199 | 4,700 | ||||||||||
Advisor’s fee, related party | 293 | 87 | 69 | 449 | ||||||||||
Property acquisition costs | 1,181 | — | — | 1,181 | ||||||||||
General and administrative | 1,507 | 132 | 117 | 1,756 | ||||||||||
Depreciation and amortization | 2,715 | — | 426 | 3,141 | ||||||||||
Total expenses | 15,493 | 291 | 2,885 | 18,669 | ||||||||||
(Loss) income from continuing operations | (3,254 | ) | 853 | (1,420 | ) | (3,821 | ) | |||||||
Discontinued operations: | ||||||||||||||
Income from operations | 70 | — | — | 70 | ||||||||||
Net (loss) income | (3,184 | ) | 853 | (1,420 | ) | (3,751 | ) | |||||||
Plus: net loss attributable to non- controlling interests | 187 | — | 831 | 1,018 | ||||||||||
Net (loss) income attributable to common shareholders | $ | (2,997 | ) | $ | 853 | $ | (589 | ) | $ | (2,733 | ) | |||
Segment assets at December 31, 2013 | $ | 397,618 | $ | 66,678 | $ | 149,275 | $ | 613,571 | ||||||
The following table summarizes our segment reporting for the periods indicated (dollars in thousands): | ||||||||||||||
Three Months Ended December 31, 2012 | ||||||||||||||
Multi-Family | Loan and | Other | Total | |||||||||||
Real Estate | Investment | Real Estate | ||||||||||||
Rental and other revenues from real estate properties | $ | 4,609 | — | $ | 690 | $ | 5,299 | |||||||
Interest and fees on real estate loans | — | $ | 1,879 | — | 1,879 | |||||||||
Other income | — | 442 | 290 | 732 | ||||||||||
Total revenues | 4,609 | 2,321 | 980 | 7,910 | ||||||||||
Operating expenses related to real estate properties | 2,065 | — | 846 | 2,911 | ||||||||||
Interest expense | 1,686 | 126 | 1,079 | 2,891 | ||||||||||
Advisor’s fees, related party | 134 | 186 | 54 | 374 | ||||||||||
Property acquisition costs | 878 | — | — | 878 | ||||||||||
General and administrative | 1,416 | 354 | 93 | 1,863 | ||||||||||
Depreciation and amortization | 1,055 | — | 183 | 1,238 | ||||||||||
Total expenses | 7,234 | 666 | 2,255 | 10,155 | ||||||||||
Total revenues less total expenses | (2,625 | ) | 1,655 | (1,275 | ) | (2,245 | ) | |||||||
Equity in earnings of unconsolidated ventures | — | — | 61 | 61 | ||||||||||
(Loss) income from continuing operations | (2,625 | ) | 1,655 | (1,214 | ) | (2,184 | ) | |||||||
Discontinued operations: | ||||||||||||||
Income from operations | 2 | — | — | 2 | ||||||||||
Net (loss) income | (2,623 | ) | 1,655 | (1,214 | ) | (2,182 | ) | |||||||
Plus net loss attributable to non-controlling interests | 111 | — | 767 | 878 | ||||||||||
Net (loss) income attributable to common shareholders | (2,512 | ) | 1,655 | (447 | ) | (1,304 | ) | |||||||
Segment assets at December 31, 2012 | $ | 183,485 | $ | 102,255 | $ | 146,603 | $ | 432,343 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Fair Value of Financial Instruments | ' | |||||||||
Fair Value of Financial Instruments | ' | |||||||||
Note 10 — 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. | ||||||||||
Real estate loans: The earning mortgage loans of the Trust which have variable rate provisions, based upon a margin over prime rate, have an estimated fair value which is equal to their carrying value assuming market interest rates between 11% and 12%. The earning mortgage loan of the Trust which has a fixed rate provision has an estimated fair value of $16,000 greater than its carrying value assuming a market rate of interest of 11% which we believe reflect institutional lender yield requirements. | ||||||||||
Junior subordinated notes: At December 31, 2013, the estimated fair value of the Trust’s junior subordinated notes is lower than their carrying value by approximately $24.3 million based on a market interest rate of 7.53%. | ||||||||||
Mortgages payable: At December 31, 2013, the estimated fair value of the Trust’s mortgages payable is lower than their carrying value by approximately $17.8 million assuming market interest rates between 2.42% and 9.64%. Market interest rates were determined using rates which the Trust believes reflects institutional lender yields 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 assets measured at fair value as of December 31, 2013 (dollars in thousands): | ||||||||||
Carrying and | Fair Value Measurements | |||||||||
Using Fair Value Hierarchy | ||||||||||
Fair Value | Level 1 | Level 2 | ||||||||
Financial Assets: | ||||||||||
Interest rate swap | $ | 21 | — | $ | 21 | |||||
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 December 31, 2013, this derivative is included in other assets 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 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 December 31, 2013, the Trust assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions 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 derivative valuation is classified in Level 2 of the fair value hierarchy. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Derivative Financial Instruments | ' | |||||||||
Derivative Financial Instruments | ' | |||||||||
Note 11 — Derivative Financial Instruments | ||||||||||
Cash Flow Hedges of Interest Rate Risk | ||||||||||
The Trust’s objectives in using interest rate derivatives are to add stability to interest expense and 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. In March 2012, the Trust entered into an interest rate swap agreement used to hedge the variable cash flows associated with existing variable-rate debt. | ||||||||||
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, 2013, 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 | $ | 1,839 | 5.25 | % | April 1, 2022 | |||||
Non-designated Hedges | ||||||||||
Derivatives not designated as hedges are not speculative and are used to manage the Trust’s exposure to interest rate movements and other identified risks but do not meet the hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and were equal to a loss of $500 and $4,500 for the three months ended December 31, 2013 and December 31, 2012, respectively. As of December 31, 2013, the Trust had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands): | ||||||||||
Notional | ||||||||||
Interest Rate Derivative | Amount | Rate | Maturity | |||||||
Interest Rate Caps | $ | 24,700 | 1 | % | October 1, 2014 | |||||
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, 2013 | September 30, 2013 | |||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||
Other assets | $ | 21 | Other assets | $ | 1 | |||||
Accounts payable and accrued liabilities | $ | — | Accounts payable and accrued liabilities | $ | 6 | |||||
The following table presents the effect of the Trust’s derivative financial instrument on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands): | ||||||||||
Three Months Ended | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Amount of gain recognized on derivative in Other Comprehensive Income | $ | 18 | $ | 2 | ||||||
Amount of loss reclassified from Accumulated Other Comprehensive Income into Interest Expense | (9 | ) | $ | (9 | ) | |||||
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, 2013 and December 31, 2012. During the twelve months ending December 31, 2014, the Trust estimates an additional $34,000 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 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 December 31, 2013, the fair value of the derivative in a net asset position, which includes accrued interest, but excludes any adjustment for nonperformance risk related to this agreement, was $21,000. As of December 31, 2013, the Trust has not posted any collateral related to this agreement. If the Trust had been in breach of this agreement at December 31, 2013, it could have been required to settle it obligations thereunder at its termination value of $21,000. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
Note 12 — Subsequent Events | |
Subsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of December 31, 2013 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, 2013 | |
Basis of Preparation | ' |
Basis of Preparation | ' |
The accompanying interim unaudited consolidated financial statements as of December 31, 2013 and for the three months ended December 31, 2013 and 2012 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 months ended December 31, 2013 are not necessarily indicative of the results for the full year. The balance sheet as of September 30, 2013 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 for complete financial statements. | |
Reclassification Items | ' |
Certain items on the consolidated financial statements for the preceding period have been reclassified to conform with the current period’s presentation, primarily to reclassify the assets and liabilities of a property held for sale to assets and liabilities of discontinued operations and to reclassify the operations of this property to discontinued operations. | |
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 VIE. | |
The Trust’s consolidated joint ventures that own multi-family properties, with the exception of its Mountain Park joint venture, 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. The Trust was determined to be 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 from the entity that could potentially be significant to the VIE. | |
The joint venture that owns the Mountain Park property was determined not to be a VIE but is consolidated because the Trust has substantive participating rights in the entity giving it a controlling financial interest in the entity. | |
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. | |
Estimates | ' |
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) | 3 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Real Estate Properties | ' | |||||||||||||||||
Summary of in real estate properties owned | ' | |||||||||||||||||
A summary of real estate properties owned is as follows (dollars in thousands): | ||||||||||||||||||
September | Additions (a) | Capitalized | Depreciation, | December 31, | ||||||||||||||
30, 2013 | Costs and | Amortization | 2013 | |||||||||||||||
Balance | Improvements | and other | Balance | |||||||||||||||
reductions | ||||||||||||||||||
Multi-family | $ | 292,917 | $ | 81,520 | $ | 1,077 | $ | (2,716 | ) | $ | 372,798 | |||||||
Commercial / mixed use (b) | 92,354 | — | 4,205 | (397 | ) | 96,162 | ||||||||||||
Vacant land | 7,972 | — | — | — | 7,972 | |||||||||||||
Retail/Shopping centers | 2,645 | — | — | (25 | ) | 2,620 | ||||||||||||
Coop/condo apartments | 133 | — | — | (4 | ) | 129 | ||||||||||||
Total real estate properties | $ | 396,021 | $ | 81,520 | $ | 5,282 | $ | (3,142 | ) | $ | 479,681 | |||||||
(a) In the quarter ended December 31, 2013, the Trust purchased, through consolidated joint ventures in which the Trust has an 80% equity interest (except for the Columbus, Ohio property which is wholly owned), the following multi-family properties (dollars in thousands): | ||||||||||||||||||
Location | Purchase | No of | Contract | Acquisition | BRT | Property | ||||||||||||
Date | Units | Purchase | Mortgage | Equity | Acquisition | |||||||||||||
Price | Debt | Costs | ||||||||||||||||
Houston, TX | 10/4/13 | 798 | $ | 32,800 | $ | 24,100 | $ | 10,525 | $ | 474 | ||||||||
Pasadena, TX | 10/15/13 | 144 | 5,420 | 4,065 | 1,687 | 125 | ||||||||||||
Humble, TX | 10/15/13 | 260 | 10,500 | 7,875 | 3,129 | 180 | ||||||||||||
Humble, TX | 10/15/13 | 160 | 6,700 | 5,025 | 1,908 | 129 | ||||||||||||
Huntsville, AL | 10/18/13 | 208 | 12,050 | 9,573 | 3,950 | 176 | ||||||||||||
Columbus, OH | 11/21/13 | 264 | 14,050 | 10,651 | 3,734 | 97 | ||||||||||||
1,834 | $ | 81,520 | $ | 61,289 | $ | 24,933 | $ | 1,181 | ||||||||||
(b) Represents the real estate assets of RBH-TRB Newark Holdings LLC, a consolidated VIE 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, which includes 190,000 square feet currently under construction. Certain of these assets are subject to mortgages in the aggregate principal balance of $20,100,000 held by the Trust, which are eliminated in consolidation. Several of the assets are also encumbered by other mortgages which are discussed in Note 7—Debt Obligations. The Trust contributed capital of $1,729,000 to this venture in the year ended September 30, 2013, representing its proportionate share of capital required to fund the operations of the venture for the venture’s current fiscal year and to purchase additional land parcels. | ||||||||||||||||||
Schedule of multi-family properties purchased by the Trust through joint ventures | ' | |||||||||||||||||
In the quarter ended December 31, 2013, the Trust purchased, through consolidated joint ventures in which the Trust has an 80% equity interest (except for the Columbus, Ohio property which is wholly owned), the following multi-family properties (dollars in thousands): | ||||||||||||||||||
Location | Purchase | No of | Contract | Acquisition | BRT | Property | ||||||||||||
Date | Units | Purchase | Mortgage | Equity | Acquisition | |||||||||||||
Price | Debt | Costs | ||||||||||||||||
Houston, TX | 10/4/13 | 798 | $ | 32,800 | $ | 24,100 | $ | 10,525 | $ | 474 | ||||||||
Pasadena, TX | 10/15/13 | 144 | 5,420 | 4,065 | 1,687 | 125 | ||||||||||||
Humble, TX | 10/15/13 | 260 | 10,500 | 7,875 | 3,129 | 180 | ||||||||||||
Humble, TX | 10/15/13 | 160 | 6,700 | 5,025 | 1,908 | 129 | ||||||||||||
Huntsville, AL | 10/18/13 | 208 | 12,050 | 9,573 | 3,950 | 176 | ||||||||||||
Columbus, OH | 11/21/13 | 264 | 14,050 | 10,651 | 3,734 | 97 | ||||||||||||
1,834 | $ | 81,520 | $ | 61,289 | $ | 24,933 | $ | 1,181 |
Real_Estate_Loans_Tables
Real Estate Loans (Tables) | 3 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Real Estate Loans | ' | |||||||||||
Schedule of real estate loans | ' | |||||||||||
Information relating to real estate loans, all of which are earning interest, is summarized as follows (dollars in thousands): | ||||||||||||
December 31, 2013 | September 30, 2013 | |||||||||||
Property Type | Real Estate | Percent | Real Estate | Percent | ||||||||
Loans | Loans | |||||||||||
Multi-family residential | $ | 12,200 | 60 | % | $ | 16,772 | 55 | % | ||||
Hotel | 1,680 | 8 | % | 1,680 | 6 | % | ||||||
Land | — | — | 8,000 | 26 | % | |||||||
Retail | 6,491 | 32 | % | 3,100 | 10 | % | ||||||
Single family | — | — | 961 | 3 | % | |||||||
20,371 | 100 | % | 30,513 | 100 | % | |||||||
Deferred fee income | (121 | ) | (213 | ) | ||||||||
Real estate loans, net | $ | 20,250 | $ | 30,300 |
Debt_Obligations_Tables
Debt Obligations (Tables) | 3 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Debt Obligations | ' | ||||||||||||
Schedule of debt obligations | ' | ||||||||||||
Debt obligations consist of the following (dollars in thousands): | |||||||||||||
December 31, 2013 | September 30, 2013 | ||||||||||||
Junior subordinated notes | $ | 37,400 | $ | 37,400 | |||||||||
Mortgages payable | 369,795 | 308,529 | |||||||||||
Mortgage payable — property held for sale | 4,687 | 4,687 | |||||||||||
Total debt obligations | $ | 411,882 | $ | 350,616 | |||||||||
Junior subordinated notes | ' | ||||||||||||
Debt obligations | ' | ||||||||||||
Schedule of outstanding debt | ' | ||||||||||||
Interest Period | Interest Rate | ||||||||||||
August 1, 2012 through April 29, 2016 | 4.90% | ||||||||||||
April 30, 2016 through April 30, 2036 | Libor + 2.00% | ||||||||||||
Mortgages payable | ' | ||||||||||||
Debt obligations | ' | ||||||||||||
Schedule of outstanding debt | ' | ||||||||||||
In the quarter ended December 31, 2013, the Trust purchased six additional properties (five through joint ventures and one wholly-owned) and incurred the following debt (dollars in thousands): | |||||||||||||
Location | Purchase | Acquisition | Interest | Interest Only | Maturity Date | ||||||||
Date | Mortgage | Rate | Period | ||||||||||
Debt | |||||||||||||
Houston, TX | 10/4/13 | $ | 24,100 | 4.85 | % | 12 months | October 2018 | ||||||
Pasadena, TX | 10/15/13 | 4,065 | 4.9 | % | 12 months | November 2018 | |||||||
Humble, TX | 10/15/13 | 7,875 | 4.9 | % | 12 months | November 2018 | |||||||
Humble, TX | 10/15/13 | 5,025 | 4.9 | % | 12 months | November 2018 | |||||||
Huntsville, AL | 10/18/13 | 9,573 | 4.99 | % | 24 months | November 2023 | |||||||
Columbus, OH | 11/21/13 | 10,651 | 4.35 | % | — | February 2045 | |||||||
$ | 61,289 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Schedule of segment reporting | ' | |||||||||||||
The following table summarizes our segment reporting for the periods indicated (dollars in thousands): | ||||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||
Multi- | Loan and | Other | Total | |||||||||||
Family | Investment | Real Estate | ||||||||||||
Real Estate | ||||||||||||||
Rental and other revenues from real estate properties | $ | 12,239 | — | $ | 1,200 | $ | 13,439 | |||||||
Interest and fees on real estate loans | — | $ | 1,138 | — | 1,138 | |||||||||
Other income | — | 6 | 265 | 271 | ||||||||||
Total revenues | 12,239 | 1,144 | 1,465 | 14,848 | ||||||||||
Operating expenses relating to real estate properties | 6,368 | — | 1,074 | 7,442 | ||||||||||
Interest expense | 3,429 | 72 | 1,199 | 4,700 | ||||||||||
Advisor’s fee, related party | 293 | 87 | 69 | 449 | ||||||||||
Property acquisition costs | 1,181 | — | — | 1,181 | ||||||||||
General and administrative | 1,507 | 132 | 117 | 1,756 | ||||||||||
Depreciation and amortization | 2,715 | — | 426 | 3,141 | ||||||||||
Total expenses | 15,493 | 291 | 2,885 | 18,669 | ||||||||||
(Loss) income from continuing operations | (3,254 | ) | 853 | (1,420 | ) | (3,821 | ) | |||||||
Discontinued operations: | ||||||||||||||
Income from operations | 70 | — | — | 70 | ||||||||||
Net (loss) income | (3,184 | ) | 853 | (1,420 | ) | (3,751 | ) | |||||||
Plus: net loss attributable to non- controlling interests | 187 | — | 831 | 1,018 | ||||||||||
Net (loss) income attributable to common shareholders | $ | (2,997 | ) | $ | 853 | $ | (589 | ) | $ | (2,733 | ) | |||
Segment assets at December 31, 2013 | $ | 397,618 | $ | 66,678 | $ | 149,275 | $ | 613,571 | ||||||
The following table summarizes our segment reporting for the periods indicated (dollars in thousands): | ||||||||||||||
Three Months Ended December 31, 2012 | ||||||||||||||
Multi-Family | Loan and | Other | Total | |||||||||||
Real Estate | Investment | Real Estate | ||||||||||||
Rental and other revenues from real estate properties | $ | 4,609 | — | $ | 690 | $ | 5,299 | |||||||
Interest and fees on real estate loans | — | $ | 1,879 | — | 1,879 | |||||||||
Other income | — | 442 | 290 | 732 | ||||||||||
Total revenues | 4,609 | 2,321 | 980 | 7,910 | ||||||||||
Operating expenses related to real estate properties | 2,065 | — | 846 | 2,911 | ||||||||||
Interest expense | 1,686 | 126 | 1,079 | 2,891 | ||||||||||
Advisor’s fees, related party | 134 | 186 | 54 | 374 | ||||||||||
Property acquisition costs | 878 | — | — | 878 | ||||||||||
General and administrative | 1,416 | 354 | 93 | 1,863 | ||||||||||
Depreciation and amortization | 1,055 | — | 183 | 1,238 | ||||||||||
Total expenses | 7,234 | 666 | 2,255 | 10,155 | ||||||||||
Total revenues less total expenses | (2,625 | ) | 1,655 | (1,275 | ) | (2,245 | ) | |||||||
Equity in earnings of unconsolidated ventures | — | — | 61 | 61 | ||||||||||
(Loss) income from continuing operations | (2,625 | ) | 1,655 | (1,214 | ) | (2,184 | ) | |||||||
Discontinued operations: | ||||||||||||||
Income from operations | 2 | — | — | 2 | ||||||||||
Net (loss) income | (2,623 | ) | 1,655 | (1,214 | ) | (2,182 | ) | |||||||
Plus net loss attributable to non-controlling interests | 111 | — | 767 | 878 | ||||||||||
Net (loss) income attributable to common shareholders | (2,512 | ) | 1,655 | (447 | ) | (1,304 | ) | |||||||
Segment assets at December 31, 2012 | $ | 183,485 | $ | 102,255 | $ | 146,603 | $ | 432,343 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Fair Value of Financial Instruments | ' | |||||||||
Schedule of financial assets measured at fair value | ' | |||||||||
Set forth below is information regarding the Trust’s financial assets measured at fair value as of December 31, 2013 (dollars in thousands): | ||||||||||
Carrying and | Fair Value Measurements | |||||||||
Using Fair Value Hierarchy | ||||||||||
Fair Value | Level 1 | Level 2 | ||||||||
Financial Assets: | ||||||||||
Interest rate swap | $ | 21 | — | $ | 21 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Interest Rate Derivatives | ' | |||||||||
Schedule of fair value of derivative financial instruments and classification on the 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, 2013 | September 30, 2013 | |||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||
Other assets | $ | 21 | Other assets | $ | 1 | |||||
Accounts payable and accrued liabilities | $ | — | Accounts payable and accrued liabilities | $ | 6 | |||||
Schedule of effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | ' | |||||||||
The following table presents the effect of the Trust’s derivative financial instrument on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands): | ||||||||||
Three Months Ended | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Amount of gain recognized on derivative in Other Comprehensive Income | $ | 18 | $ | 2 | ||||||
Amount of loss reclassified from Accumulated Other Comprehensive Income into Interest Expense | (9 | ) | $ | (9 | ) | |||||
Derivative designated as a cash flow hedge | ' | |||||||||
Interest Rate Derivatives | ' | |||||||||
Schedule of outstanding interest rate derivatives | ' | |||||||||
As of December 31, 2013, 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 | $ | 1,839 | 5.25 | % | April 1, 2022 | |||||
Derivatives not designated as hedges | ' | |||||||||
Interest Rate Derivatives | ' | |||||||||
Schedule of outstanding interest rate derivatives | ' | |||||||||
As of December 31, 2013, the Trust had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands): | ||||||||||
Notional | ||||||||||
Interest Rate Derivative | Amount | Rate | Maturity | |||||||
Interest Rate Caps | $ | 24,700 | 1 | % | October 1, 2014 | |||||
Organization_and_Background_De
Organization and Background (Details) (Joint ventures, Purchase of properties, Multi-family residential) | 3 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Organization, background and significant accounting policies | ' |
Equity contribution in each transaction (as a percent) | 50.00% |
Maximum | ' |
Organization, background and significant accounting policies | ' |
Equity contribution in each transaction (as a percent) | 90.00% |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
Restricted Shares | Restricted Shares | 2012 Incentive Plan | 2012 Incentive Plan | Prior Plans | Prior Plans | |||
Subsequent event | Restricted Shares | |||||||
Equity incentive plans | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance | ' | ' | ' | ' | 600,000 | ' | ' | ' |
Number of shares issued | ' | ' | ' | ' | 131,525 | ' | ' | ' |
Restricted Shares | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vested | ' | ' | ' | ' | 50 | ' | ' | ' |
Issued (in shares) | ' | ' | ' | ' | ' | 140,600 | ' | ' |
Shares outstanding | ' | ' | ' | ' | 131,475 | ' | ' | 495,950 |
Number of additional awards available for grant | ' | ' | ' | ' | ' | ' | 0 | ' |
Vesting period for shares issued | ' | ' | '5 years | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | $180,000 | $193,000 | ' | ' | ' | ' |
Unearned compensation | ' | ' | $1,704,000 | ' | ' | ' | ' | ' |
Remaining weighted average vesting period | ' | ' | '2 years 4 months 24 days | ' | ' | ' | ' | ' |
Per Share Data | ' | ' | ' | ' | ' | ' | ' | ' |
Basic and diluted shares outstanding | 14,162,887 | 14,053,362 | ' | ' | ' | ' | ' | ' |
Real_Estate_Properties_Details
Real Estate Properties (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Multi-family | Commercial/mixed use properties | Vacant land | Vacant land | Retail/Shopping centers | Coop condo apartments | ||
Primary beneficiary | |||||||
RBH-TRB Newark Holdings LLC | |||||||
Activity in real estate properties | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $396,021,000 | $292,917,000 | $92,354,000 | $7,972,000 | $7,972,000 | $2,645,000 | $133,000 |
Additions | 81,520,000 | 81,520,000 | ' | ' | ' | ' | ' |
Capitalized Costs and Improvements | 5,282,000 | 1,077,000 | 4,205,000 | ' | ' | ' | ' |
Depreciation, Amortization and other reductions | -3,142,000 | -2,716,000 | -397,000 | ' | ' | -25,000 | -4,000 |
Balance at the end of the period | $479,681,000 | $372,798,000 | $96,162,000 | $7,972,000 | $7,972,000 | $2,620,000 | $129,000 |
Real_Estate_Properties_Details1
Real Estate Properties (Details 2) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Jan. 21, 2014 | Oct. 04, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 18, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 21, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | |
Primary beneficiary | Consolidated joint ventures | Consolidated joint ventures | Consolidated joint ventures | Consolidated joint ventures | Consolidated joint ventures | Newark Joint Venture | Newark Joint Venture | Newark Joint Venture | Wholly owned subsidiary | Wholly owned subsidiary | Wholly owned subsidiary | Consolidated joint ventures and wholly owned subsidiary | |||
Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Primary beneficiary | Primary beneficiary | Primary beneficiary | Purchase of properties | Primary beneficiary | Primary beneficiary | Purchase of properties | |||
Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Commercial/mixed use properties | Commercial/mixed use properties | Commercial/mixed use properties | Multi Family | Purchase of properties | Purchase of properties | Multi Family | |||
Indianapolis, IN | Houston, TX | Pasadena, TX | Humble, TX, first location | Humble, TX, second location | Huntsville, AL | Newark, New Jersey | Newark, New Jersey | Newark, New Jersey | Columbus, OH | Vacant land | Vacant land | acre | |||
item | item | item | item | item | acre | sqft | Mortgages Payable | item | Greenville, South Carolina | Greenville, South Carolina | |||||
Maximum | |||||||||||||||
Real Estate Properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest in joint venture (as a percent) | ' | ' | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | ' | ' | ' | ' | 74.40% | ' | ' |
Number of Units | ' | ' | 400 | 798 | 144 | 260 | 160 | 208 | ' | ' | ' | 264 | ' | ' | 1,834 |
Contract Purchase Price | ' | ' | $18,830,000 | $32,800,000 | $5,420,000 | $10,500,000 | $6,700,000 | $12,050,000 | ' | ' | ' | $14,050,000 | ' | ' | $81,520,000 |
Acquisition Mortgage Debt | 61,289,000 | ' | 14,500,000 | 24,100,000 | 4,065,000 | 7,875,000 | 5,025,000 | 9,573,000 | ' | ' | ' | 10,651,000 | 38,600,000 | ' | 61,289,000 |
BRT Equity | ' | ' | 5,300,000 | ' | ' | ' | ' | ' | ' | 1,729,000 | ' | ' | 6,400,000 | ' | ' |
BRT Equity | ' | ' | ' | 10,525,000 | 1,687,000 | 3,129,000 | 1,908,000 | 3,950,000 | ' | ' | ' | 3,734,000 | ' | ' | 24,933,000 |
Property Acquisition Costs | 1,181,000 | 878,000 | ' | 474,000 | 125,000 | 180,000 | 129,000 | 176,000 | ' | ' | ' | 97,000 | ' | ' | 1,181,000 |
Area of real estate properties (in square feet) | ' | ' | ' | ' | ' | ' | ' | ' | 690,000 | ' | ' | ' | ' | ' | ' |
Area of real estate property under construction (in square feet) | ' | ' | ' | ' | ' | ' | ' | ' | 190,000 | ' | ' | ' | ' | ' | ' |
Mortgage on assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,100,000 | ' | ' | ' | ' |
Payments for acquisition of property | 81,520,000 | 57,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' |
Additional capital contributions through May 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,300,000 | ' |
Assets_of_Discontinued_Operati1
Assets of Discontinued Operations (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Lawrenceville, GA property under contract for sale | Lawrenceville, GA property under contract for sale | |||
Estimate | ||||
Assets of discontinued operations | ' | ' | ' | ' |
Book value | $479,681,000 | $396,021,000 | $4,102,000 | ' |
Realized gain on sale of property | ' | ' | ' | $1,300,000 |
Real_Estate_Loans_Details
Real Estate Loans (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Loans | ' | ' |
Real Estate Loans, gross | $20,371 | $30,513 |
Deferred fee income | -121 | -213 |
Real Estate Loans, Net | 20,250 | 30,300 |
Percent of real estate loans | 100.00% | 100.00% |
Multi-family residential | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | 12,200 | 16,772 |
Percent of real estate loans | 60.00% | 55.00% |
Hotels | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | 1,680 | 1,680 |
Percent of real estate loans | 8.00% | 6.00% |
Land | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | ' | 8,000 |
Percent of real estate loans | ' | 26.00% |
Retail | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | 6,491 | 3,100 |
Percent of real estate loans | 32.00% | 10.00% |
Single family | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | ' | $961 |
Percent of real estate loans | ' | 3.00% |
Real_Estate_Loans_Details_2
Real Estate Loans (Details 2) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Real properties | Real properties | Real properties | Real properties | ||
Geographic concentration | Geographic concentration | Geographic concentration | Geographic concentration | |||
New York | Maryland | Tennessee | Florida | |||
Senior mortgage loans | Senior mortgage loans | Senior mortgage loans | Senior mortgage loans | |||
Concentration of loans | ' | ' | ' | ' | ' | ' |
Percentage of total | ' | ' | 63.00% | 22.00% | 8.00% | 7.00% |
Real estate loans receivable scheduled to mature in fiscal 2013 | ' | ' | ' | ' | ' | ' |
Principal balance of loan | $20,371 | $30,513 | ' | ' | ' | ' |
Debt_Obligations_Details
Debt Obligations (Details) (USD $) | 3 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
Debt Obligations | ' | ' | ' |
Total debt obligations | $411,882,000 | ' | $350,616,000 |
Junior subordinated notes | ' | ' | ' |
Debt Obligations | ' | ' | ' |
Total debt obligations | 37,400,000 | ' | 37,400,000 |
Other disclosures | ' | ' | ' |
Interest expense | 458,000 | 458,000 | ' |
Amortization of deferred costs included in interest expense | 5,000 | 5,000 | ' |
Junior subordinated notes | August 1, 2012 through April 29, 2016 | ' | ' | ' |
Debt Obligations | ' | ' | ' |
Interest Rate (as a percent) | 4.90% | ' | ' |
Junior subordinated notes | April 30, 2016 through April 30, 2036 | ' | ' | ' |
Debt Obligations | ' | ' | ' |
Reference rate | 'LIBOR | ' | ' |
Margin interest above reference rate (as a percent) | 2.00% | ' | ' |
Mortgages payable | ' | ' | ' |
Debt Obligations | ' | ' | ' |
Total debt obligations | 369,795,000 | ' | 308,529,000 |
Mortgages payable | Lawrenceville, GA property under contract for sale | ' | ' | ' |
Debt Obligations | ' | ' | ' |
Total debt obligations | $4,687,000 | ' | $4,687,000 |
Debt_Obligations_Details_2
Debt Obligations (Details 2) (USD $) | 3 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 04, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Nov. 21, 2013 | Oct. 18, 2013 | Nov. 21, 2013 | |
item | Joint ventures | Wholly owned | Mortgages payable maturing in October 2018 | Mortgages payable maturing in November 2018, mortgage one | Mortgages payable maturing in November 2018, mortgage two | Mortgages payable maturing in November 2018, mortgage three | Mortgages payable maturing in November 2018, mortgage three | Mortgages payable maturing in November 2023 | Mortgages payable maturing in November 2023 | Mortgages payable maturing in February 2045 | |
item | item | Houston, TX | Pasadena, TX | Humble, TX, first location | Humble, TX, first location | Humble, TX, second location | Huntsville, AL | Huntsville, AL | Columbus, OH | ||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional properties purchased | 6 | 5 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition Mortgage Debt | $61,289,000 | ' | ' | $24,100,000 | $4,065,000 | $7,875,000 | ' | $5,025,000 | ' | $9,573,000 | $10,651,000 |
Interest rate (as a percent) | ' | ' | ' | 4.85% | 4.90% | 4.90% | ' | 4.90% | ' | 4.99% | 4.35% |
Interest Only Period (as a percent) | ' | ' | ' | '12 months | '12 months | '12 months | '12 months | ' | '24 months | ' | ' |
Deferred_Income_New_Markets_Ta1
Deferred Income (New Markets Tax Credit Transaction) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 11, 2012 | Feb. 03, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
New Markets Tax Credit Transaction | Primary beneficiary | Primary beneficiary | Primary beneficiary | Primary beneficiary | Primary beneficiary | |||
Investor | Investor | Newark Joint Venture | Newark Joint Venture | Newark Joint Venture | ||||
NMTC program special-purpose entity | NMTC program special-purpose entity | Subsidiaries | Subsidiaries | Subsidiaries | ||||
New Markets Tax Credit Transaction | New Markets Tax Credit Transaction | New Markets Tax Credit Transaction | New Markets Tax Credit Transaction | NMTC program special-purpose entity | ||||
Deferred Income (New Markets Tax Credit Transaction) | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of qualified investment permitted in NMTC to claim credits against Federal income tax | ' | ' | 39.00% | ' | ' | ' | ' | ' |
Amount contributed to effect financing transaction | ' | ' | ' | $16,400,000 | $11,200,000 | ' | ' | ' |
Period over which tax credits is receivable | ' | ' | ' | '7 years | '7 years | ' | ' | ' |
Period after which option to acquire special purpose entity may be exercised | ' | ' | ' | ' | ' | ' | ' | '7 years |
Recapture period | ' | ' | '7 years | ' | ' | ' | ' | ' |
Deferred costs, net | $13,058,000 | $12,767,000 | ' | ' | ' | $9,300,000 | $9,600,000 | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
item | Multi-Family Real Estate | Multi-Family Real Estate | Loan and Investment | Loan and Investment | Other Real Estate | Other Real Estate | |||
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental and other revenues from real estate properties | $13,439 | $5,299 | ' | $12,239 | $4,609 | ' | ' | $1,200 | $690 |
Interest and fees on real estate loans | 1,138 | 1,879 | ' | ' | ' | 1,138 | 1,879 | ' | ' |
Other income | 271 | 732 | ' | ' | ' | 6 | 442 | 265 | 290 |
Total revenues | 14,848 | 7,910 | ' | 12,239 | 4,609 | 1,144 | 2,321 | 1,465 | 980 |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating expenses relating to real estate properties | 7,442 | 2,911 | ' | 6,368 | 2,065 | ' | ' | 1,074 | 846 |
Interest expense | 4,700 | 2,891 | ' | 3,429 | 1,686 | 72 | 126 | 1,199 | 1,079 |
Advisor's fee, related party | 449 | 374 | ' | 293 | 134 | 87 | 186 | 69 | 54 |
Property acquisition costs | 1,181 | 878 | ' | 1,181 | 878 | ' | ' | ' | ' |
General and administrative | 1,756 | 1,863 | ' | 1,507 | 1,416 | 132 | 354 | 117 | 93 |
Depreciation and amortization | 3,141 | 1,238 | ' | 2,715 | 1,055 | ' | ' | 426 | 183 |
Total expenses | 18,669 | 10,155 | ' | 15,493 | 7,234 | 291 | 666 | 2,885 | 2,255 |
Total revenues less total expenses | -3,821 | -2,245 | ' | ' | -2,625 | ' | 1,655 | ' | -1,275 |
Equity in earnings of unconsolidated ventures | ' | 61 | ' | ' | ' | ' | ' | ' | 61 |
Loss income from continuing operations | -3,821 | -2,184 | ' | -3,254 | -2,625 | 853 | 1,655 | -1,420 | -1,214 |
Discontinued operations: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | 70 | 2 | ' | 70 | 2 | ' | ' | ' | ' |
Net loss | -3,751 | -2,182 | ' | -3,184 | -2,623 | 853 | 1,655 | -1,420 | -1,214 |
Plus: net loss attributable to non-controlling interests | 1,018 | 878 | ' | 187 | 111 | ' | ' | 831 | 767 |
Net loss attributable to common shareholders | -2,733 | -1,304 | ' | -2,997 | -2,512 | 853 | 1,655 | -589 | -447 |
Segment assets | $613,571 | $432,343 | $549,491 | $397,618 | $183,485 | $66,678 | $102,255 | $149,275 | $146,603 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Level 2, USD $) | 3 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Market valuation | Market valuation | Market valuation | Market valuation | Market valuation | Market valuation | Estimated fair value | Estimated fair value | Estimated fair value | |
Real estate loans | Real estate loans | Real estate loans | Junior subordinated notes | Mortgages payable | Mortgages payable | Real estate loans | Junior subordinated notes | Mortgages payable | |
Minimum | Maximum | Minimum | Maximum | ||||||
Financial Instruments Not Measured at Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable market interest rate (as a percent) | ' | 11.00% | 12.00% | ' | ' | ' | ' | ' | ' |
Fixed market rate of interest (as a percent) | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value lower than carrying value | ' | ' | ' | ' | ' | ' | ' | ($24,300,000) | ($17,800,000) |
Market interest rate (as a percent) | ' | ' | ' | 7.53% | 2.42% | 9.64% | ' | ' | ' |
Estimated fair value greater than carrying value | ' | ' | ' | ' | ' | ' | $16,000 | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (Fair value on a recurring basis, Interest rate swap, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Carrying and Fair Value | ' |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | ' |
Derivative financial instruments | $21 |
Level 2 | ' |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | ' |
Derivative financial instruments | $21 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Interest Expense | Interest Expense | Other assets | Other assets | Accounts payable and accrued liabilities | Derivative designated as a cash flow hedge | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | |||
Interest rate swap | Interest Rate Caps | ||||||||||
Interest Rate Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | ' | ' | ' | ' | ' | ' | ' | $1,839,000 | ' | ' | $24,700,000 |
Rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.25% | ' | ' | 1.00% |
Loss on change in fair value of derivatives | ' | ' | ' | ' | ' | ' | ' | ' | 500 | 4,500 | ' |
Fair value of derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative financial instrument asset | ' | ' | ' | ' | 21,000 | 1,000 | ' | ' | ' | ' | ' |
Fair value of derivative financial instrument liability | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' |
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of gain recognized on derivative in Other Comprehensive Income | 18,000 | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loss reclassified from Accumulated Other Comprehensive Income into Interest Expense | ' | ' | -9,000 | -9,000 | ' | ' | ' | ' | ' | ' | ' |
Gain or loss recognized related to hedge ineffectiveness | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain or loss recognized related to amounts excluded from effectiveness testing | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated amount to be reclassified from Accumulated other comprehensive income (loss) as an increase to interest expense | 34,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit-risk-related Contingent Features | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the derivative in a net asset position | 21,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination value for settlement of obligation | $21,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |