Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'BRT REALTY TRUST | ' |
Entity Central Index Key | '0000014846 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
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 | ' | 14,303,237 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Real estate properties, net of accumulated depreciation and amortization of $18,427 and $11,862 | $518,924 | $402,896 |
Real estate loans, net, all earning interest | 17,222 | 30,300 |
Cash and cash equivalents | 47,984 | 60,265 |
Restricted cash - construction holdbacks | 20,142 | 29,279 |
Deferred costs, net | 13,371 | 12,833 |
Prepaid expenses | 4,006 | 3,955 |
Other assets | 12,340 | 9,963 |
Total Assets | 633,989 | 549,491 |
Liabilities: | ' | ' |
Mortgage payables | 393,221 | 313,216 |
Junior subordinated notes | 37,400 | 37,400 |
Accounts payable and accrued liabilities | 8,273 | 6,511 |
Deposits payable | 1,327 | 1,258 |
Deferred income | 25,848 | 25,848 |
Total Liabilities | 466,069 | 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 | 40,965 | 40,606 |
Additional paid-in capital | 165,798 | 165,763 |
Accumulated other comprehensive income (loss) | 4 | -6 |
Accumulated deficit | -72,897 | -67,572 |
Total BRT Realty Trust shareholders' equity | 133,870 | 138,791 |
Non-controlling interests | 34,050 | 26,467 |
Total Equity | 167,920 | 165,258 |
Total Liabilities and Equity | $633,989 | $549,491 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Real estate properties, accumulated depreciation and amortization (in dollars) | $18,427 | $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 | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' | ' | ' |
Rental and other revenue from real estate properties | $14,877 | $6,866 | $28,684 | $12,506 |
Interest and fees on real estate loans | 631 | 2,966 | 1,769 | 4,845 |
Other income | 276 | 314 | 547 | 1,046 |
Total revenues | 15,784 | 10,146 | 31,000 | 18,397 |
Expenses: | ' | ' | ' | ' |
Operating expenses relating to real estate properties | 8,395 | 3,417 | 16,029 | 6,563 |
Interest expense | 5,022 | 2,661 | 9,778 | 5,607 |
Advisor's fees, related party | 481 | 443 | 930 | 817 |
Property acquisition costs | 292 | 160 | 1,528 | 1,065 |
General and administrative-including $134 and $198 to related party for the three months ended and $347and $403 for the six months ended | 1,726 | 1,721 | 3,427 | 3,557 |
Depreciation and amortization | 3,383 | 1,618 | 6,574 | 2,905 |
Total expenses | 19,299 | 10,020 | 38,266 | 20,514 |
Total revenues less total expenses | -3,515 | 126 | -7,266 | -2,117 |
Equity in earnings of unconsolidated ventures | 4 | 68 | 4 | 129 |
Gain on sale of available-for-sale securities | ' | 482 | ' | 482 |
Net (loss) income | -3,511 | 676 | -7,262 | -1,506 |
Plus: net loss attributable to non- controlling interests | 919 | 334 | 1,937 | 1,212 |
Net (loss) income attributable to common shareholders | ($2,592) | $1,010 | ($5,325) | ($294) |
Basic and diluted per share amounts attributable to common shareholders: | ' | ' | ' | ' |
Basic and diluted (loss) earnings per share (in dollars per share) | ($0.18) | $0.07 | ($0.37) | ($0.02) |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic and diluted (in shares) | 14,294,022 | 14,170,229 | 14,227,734 | 14,111,153 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
General and administrative, related party | $134 | $198 | $347 | $403 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ' | ' | ' | ' |
Net (loss) income | ($3,511) | $676 | ($7,262) | ($1,506) |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Net unrealized loss on available-for-sale securities | ' | -392 | ' | -415 |
Unrealized (loss) gain on derivative instruments | -17 | 18 | 10 | 29 |
Other comprehensive (loss) income | -17 | -374 | 10 | -386 |
Comprehensive (loss) income | -3,528 | 302 | -7,252 | -1,892 |
Comprehensive loss attributable to non-controlling interests | 926 | 337 | 1,937 | 1,216 |
Comprehensive (loss) income attributable to common shareholders | ($2,602) | $639 | ($5,315) | ($676) |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Shares of Beneficial Interest | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-Controlling Interest |
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 | ' | ' | ' | ' | ' | ' |
Restricted stock vesting | ' | 359 | -359 | ' | ' | ' |
Compensation expense - restricted stock | 394 | ' | 394 | ' | ' | ' |
Contributions from non-controlling interests | 11,504 | ' | ' | ' | ' | 11,504 |
Distributions to non-controlling interests | -1,984 | ' | ' | ' | ' | -1,984 |
Net loss | -7,262 | ' | ' | ' | -5,325 | -1,937 |
Other comprehensive income | 10 | ' | ' | 10 | ' | ' |
Comprehensive (loss) income | -7,252 | ' | ' | ' | ' | ' |
Balances at Mar. 31, 2014 | $167,920 | $40,965 | $165,798 | $4 | ($72,897) | $34,050 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($7,262) | ($1,506) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' |
Recovery of previously provided allowances | ' | -422 |
Amortization and depreciation | 7,529 | 3,727 |
Amortization of deferred fee income | -297 | -791 |
Amortization of restricted stock | 394 | 330 |
Gain on sale of available-for-sale securities | ' | -482 |
Equity in earnings of unconsolidated joint ventures | -4 | -129 |
Distribution of earnings of unconsolidated joint ventures | 2 | 90 |
Increases and decreases from changes in other assets and liabilities: | ' | ' |
Change in straight-line rent | -268 | 7 |
Decrease (increase) in interest and dividends receivable | 116 | -550 |
(Increase) decrease in prepaid expenses | -483 | 7 |
Decrease in prepaid interest | 432 | 1,507 |
Increase (decrease) in accounts and deposits payable and accrued liabilities | 1,831 | -113 |
Increase in deferred costs | ' | -430 |
Increase in security deposits and other receivables | -2,229 | -286 |
Other | 5 | 282 |
Net cash (used in) provided by operating activities | -234 | 1,241 |
Cash flows from investing activities: | ' | ' |
Collections from real estate loans | 18,727 | 8,658 |
Additions to real estate loans | -5,532 | -63,038 |
Loan loss recoveries | ' | 422 |
Additions to real estate properties | -107,320 | -64,600 |
Net costs capitalized to real estate owned | -15,272 | -16,559 |
Net change in restricted cash - construction holdbacks | 9,138 | 14,665 |
Collection of loan fees | 180 | 1,330 |
Proceeds from the sale of real estate owned | ' | 24 |
Proceeds from the sale of available-for-sale securities | ' | 991 |
Net cash used in investing activities | -100,079 | -118,107 |
Cash flows from financing activities: | ' | ' |
Proceeds from mortgage financings | 80,535 | 52,248 |
Mortgage principal payments | -530 | -777 |
Increase in deferred borrowing costs | -1,493 | -718 |
Capital contributions from non-controlling interests | 11,504 | 5,191 |
Capital distribution to non-controlling interests | -1,984 | -689 |
Net cash provided by financing activities | 88,032 | 55,255 |
Net decrease in cash and cash equivalents | -12,281 | -61,611 |
Cash and cash equivalents at beginning of period | 60,265 | 78,245 |
Cash and cash equivalents at end of period | 47,984 | 16,634 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid during the period for interest | 8,646 | 4,669 |
Taxes paid | $158 | $80 |
Organization_and_Background
Organization and Background | 6 Months Ended |
Mar. 31, 2014 | |
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 (i) owns, operates and develops multi-family properties, (ii) owns, operates and develops commercial and mixed-use real estate assets, and (iii) holds for investment senior mortgage loans secured by commercial and multi-family real estate properties. | |
The multi-family properties are generally acquired with venture partners in transactions in which the Trust contributes 50% to 90% of the equity. | |
All of the properties owned or securing mortgage loans are located in the United States. | |
BRT conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes. |
Basis_of_Preparation
Basis of Preparation | 6 Months Ended |
Mar. 31, 2014 | |
Basis of Preparation | ' |
Basis of Preparation | ' |
Note 2 - Basis of Preparation | |
The accompanying interim unaudited consolidated financial statements as of March 31, 2014, and for the three and six months ended March 31, 2014 and 2013, reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the results for such interim periods. The results of operations for the three and six months ended March 31, 2014 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 previously classified as held for sale to real estate assets and liabilities and to reclassify the operations of this property to continuing operations and the reclassification of certain professional fees to property acquisition costs. | |
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 | 6 Months Ended |
Mar. 31, 2014 | |
Equity | ' |
Equity | ' |
Note 3 - Equity | |
Common Share Dividend Distribution | |
During the quarter ended March 31, 2014, 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 March 31, 2014, 272,025 shares were issued pursuant to this plan of which 50 shares have vested and 271,975 shares are outstanding and have not vested. An aggregate of 376,300 shares of restricted stock are outstanding pursuant to the Trust’s 2009 equity incentive plan (the “Prior Plan”) and have not yet vested. No additional awards may be granted under the Prior Plan. The restricted shares that have been granted under the 2012 Incentive Plan and the Prior Plan vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For accounting purposes, the restricted shares are not included in the outstanding shares shown on the consolidated balance sheets until they vest, but are included in the earnings per share computation. For the three months ended March 31, 2014 and 2013, the Trust recorded $214,000 and $137,000 of compensation expense, respectively, and for the six months ended March 31, 2014 and 2013 recorded $394,000 and $330,000 of compensation expense, respectively. At March 31, 2014, $2,489,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods. The weighted average vesting period is 2.87 years. | |
Per Share Data | |
Basic (loss) earnings per share was determined by dividing net (loss) income applicable to common shareholders for the applicable period 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 (loss) 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 March 31, 2014 and 2013, were 14,294,022 and 14,170,229, respectively, and for the six months ended March 31, 2014 and 2013, were 14,227,734 and 14,111,153, respectively. |
Real_Estate_Properties
Real Estate Properties | 6 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
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, | March 31, | ||||||||||||||
30, 2013 | Costs and | Amortization | 2014 | |||||||||||||||
Balance | Improvements | and other | Balance | |||||||||||||||
changes | ||||||||||||||||||
Multi-family | $ | 299,792 | $ | 107,320 | $ | 5,093 | $ | (5,710 | ) | $ | 406,495 | |||||||
Commercial / mixed use (b) | 92,354 | — | 10,163 | (807 | ) | 101,710 | ||||||||||||
Vacant land | 7,972 | — | — | — | 7,972 | |||||||||||||
Retail/Shopping centers | 2,645 | — | — | (51 | ) | 2,594 | ||||||||||||
Coop/condo apartments | 133 | — | 6 | 14 | 153 | |||||||||||||
Total real estate properties | $ | 402,896 | $ | 107,320 | $ | 15,262 | $ | (6,554 | ) | $ | 518,924 | |||||||
(a) During the six months ended March 31, 2014, 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 and the Greenville, SC venture in which the Trust has a 74.4% equity interest), the following multi-family properties (dollars in thousands): | ||||||||||||||||||
Location | Purchase | No of | Contract | Acquisition | Initial | Property | ||||||||||||
Date | Units | Purchase | Mortgage | BRT | Acquisition | |||||||||||||
Price | Debt | Equity | Costs | |||||||||||||||
Houston, TX | 10/4/13 | 798 | $ | 32,800 | $ | 24,100 | $ | 10,525 | $ | 483 | ||||||||
Pasadena, TX | 10/15/13 | 144 | 5,420 | 4,065 | 1,687 | 134 | ||||||||||||
Humble, TX | 10/15/13 | 260 | 10,500 | 7,875 | 3,129 | 189 | ||||||||||||
Humble, TX | 10/15/13 | 160 | 6,700 | 5,025 | 1,908 | 138 | ||||||||||||
Huntsville, AL | 10/18/13 | 208 | 12,050 | 9,573 | 3,950 | 202 | ||||||||||||
Columbus, OH | 11/21/13 | 264 | 14,050 | 10,651 | 3,734 | 97 | ||||||||||||
Greenville, SC (i) | 1/14/14 | N/A | 7,000 | — | 6,400 | — | ||||||||||||
Indianapolis, IN | 1/21/14 | 400 | 18,800 | 14,500 | 5,300 | 230 | ||||||||||||
Other | — | — | — | — | 55 | |||||||||||||
2,234 | $ | 107,320 | $ | 75,789 | $ | 36,633 | $ | 1,528 | ||||||||||
(i) The Greenville, SC joint venture is developing a 360 unit multi-family property with ground floor retail of approximately 10,000 square feet. In connection therewith, the Trust is obligated to fund additional capital contributions of $3,300,000 through May 2014. See Note 6 — Debt Obligations - Mortgages Payable. | ||||||||||||||||||
(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 as mortgagee, which are eliminated in consolidation. Several of the assets are also encumbered by third party mortgages aggregating $80,185,000 at March 31, 2014. The Trust contributed $2,473,000 to this venture in the six months ended March 31, 2014, representing its proportionate share of capital required to fund the operations of the venture for the ventures current fiscal year and to obtain options on additional land parcels. 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 2013 fiscal year and to purchase additional land parcels. | ||||||||||||||||||
Subsequent to March 31, 2014, the Trust purchased, through a joint venture in which it has an 80% equity interest, the following multi-family properties (dollars in thousands): | ||||||||||||||||||
Location | Purchase | No. of | Contract | Acquisition | Initial | Estimated | ||||||||||||
Date | Units | Purchase Price | Mortgage Debt | BRT | Acquisition | |||||||||||||
Equity | Costs | |||||||||||||||||
Nashville, TN | 4/2/14 | 300 | $ | 26,750 | $ | 17,300 | $ | 8,420 | $ | 278 | ||||||||
Little Rock, AK | 4/2/14 | 172 | 6,750 | 4,101 | 2,372 | 97 | ||||||||||||
Witchita, KS | 4/2/14 | 496 | 20,750 | 13,863 | 6,932 | 160 | ||||||||||||
968 | $ | 54,250 | $ | 35,264 | $ | 17,724 | $ | 535 | ||||||||||
The contract to sell a multi-family property located in Lawrenceville, GA was terminated in March 2014 due to the buyer’s inability to assume the mortgage debt on a timely basis. The property is no longer being marketed for sale. |
Real_Estate_Loans
Real Estate Loans | 6 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Real Estate Loans | ' | |||||||||||
Real Estate Loans | ' | |||||||||||
Note 5 - Real Estate Loans | ||||||||||||
Information relating to all five of the Trust’s real estate loans, all of which are earning interest, is summarized as follows (dollars in thousands): | ||||||||||||
March 31, 2014 | September 30, 2013 | |||||||||||
Property Type | Real Estate | Percent | Real Estate | Percent | ||||||||
Loans | Loans | |||||||||||
Multi-family residential | $ | 9,161 | 53 | % | $ | 16,772 | 55 | % | ||||
Retail | 6,476 | 37 | % | 3,100 | 10 | % | ||||||
Hotel | 1,680 | 10 | % | 1,680 | 6 | % | ||||||
Land | — | — | 8,000 | 26 | % | |||||||
Single family | — | — | 961 | 3 | % | |||||||
17,317 | 100 | % | 30,513 | 100 | % | |||||||
Deferred fee income | (95 | ) | (213 | ) | ||||||||
Real estate loans, net | $ | 17,222 | $ | 30,300 | ||||||||
The Trust’s loan portfolio consists of senior mortgage loans secured by real properties, 56% of which are located in New York, 26% in Maryland, 10% in Tennessee, and 8% in Florida. |
Debt_Obligations
Debt Obligations | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Debt Obligations | ' | ||||||||||||
Debt Obligations | ' | ||||||||||||
Note 6 — Debt Obligations | |||||||||||||
Debt obligations consist of the following (dollars in thousands): | |||||||||||||
March 31, 2014 | September 30, 2013 | ||||||||||||
Junior subordinated notes | $ | 37,400 | $ | 37,400 | |||||||||
Mortgages payable | 393,221 | 313,216 | |||||||||||
Total debt obligations | $ | 430,621 | $ | 350,616 | |||||||||
Junior Subordinated Notes | |||||||||||||
At March 31, 2014 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 | 4.9 | % | |||||||||||
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 months ended March 31, 2014 and 2013 and $916,000 for each of the six months ended March 31, 2014 and 2013, respectively. Amortization of the deferred costs, which is a component of interest expense, was $5,000 for each of the three months ended March 31, 2014 and 2013 and was $10,000 for each of the six months ended March 31, 2014 and 2013, respectively. | |||||||||||||
Mortgages Payable | |||||||||||||
During the six months ended March 31, 2014, the Trust purchased the following properties 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 | |||||||
Indianapolis, IN | 1/21/14 | 14,500 | 4.77 | % | 36 months | February 2024 | |||||||
$ | 75,789 | ||||||||||||
The joint venture that acquired the Greenville, SC development property has also obtained access to construction financing of up to $38,600,000. 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, bears an annual interest rate of one month LIBOR + 1.95%, is interest only until July 2017 and matures in January 2019. At March 31, 2014 and May 5, 2014, no borrowings were outstanding on this loan. This loan, which is subject to customary carve-outs, is non-recourse to the Trust and the Trust’s subsidiary owning the interest in the joint venture. | |||||||||||||
In the quarter ended March 31, 2014, the Trust also obtained supplemental financing on two multi-family properties on the following terms (dollars in thousands): | |||||||||||||
Location | Amount | Interest Rate | Maturity Date | ||||||||||
Lawrenceville, GA | $ | 1,613 | 5.46 | % | March 2022 | ||||||||
Decatur, GA | 2,489 | 5.74 | % | December 2022 | |||||||||
$ | 4,102 |
Deferred_Income_New_Markets_Ta
Deferred Income (New Markets Tax Credit Transaction) | 6 Months Ended |
Mar. 31, 2014 | |
Deferred Income (New Markets Tax Credit Transaction) | ' |
Deferred Income (New Markets Tax Credit Transaction) | ' |
Note 7 — 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 sheets at March 31, 2014 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 interest expense based on the maturities of the various mortgage financings related to the NMTC transaction. At March 31, 2014 and September 30, 2013 these costs totaled $9.1 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 VIEs. The VIEs ongoing activities, which include collecting and remitting interest and fees and NMTC compliance, were all considered in the design of the special purpose entities and are not anticipated to affect the economic performance during the life of the VIEs. | |
Management considered the obligation to deliver tax benefits 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 VIEs. |
Segment_Reporting
Segment Reporting | 6 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Segment Reporting | ' | |||||||||||||
Note 8 - Segment Reporting | ||||||||||||||
Management has determined that the Trust operates in three reportable segments: a multi-family property segment which includes the ownership, operation and development of multi-family properties; an other real estate segment which includes the ownership, operation and development of the Trust’s other real estate assets and, in particular, the Newark Joint Venture; and a loan and investment segment which includes the origination and servicing of the Trust’s loan portfolio and its investments. | ||||||||||||||
The following table summarizes the Trust’s segment reporting for the period indicated (dollars in thousands): | ||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||
Multi- | Other | Loan and | Total | |||||||||||
Family | Real Estate | Investment | ||||||||||||
Real Estate | ||||||||||||||
Revenues: | ||||||||||||||
Rental and other revenues from real estate properties | $ | 13,718 | $ | 1,159 | — | $ | 14,877 | |||||||
Interest and fees on real estate loans | — | — | $ | 631 | 631 | |||||||||
Other income | — | 270 | 6 | 276 | ||||||||||
Total revenues | 13,718 | 1,429 | 637 | 15,784 | ||||||||||
Expenses: | ||||||||||||||
Operating expenses relating to real estate properties | 7,336 | 1,059 | — | 8,395 | ||||||||||
Interest expense | 3,759 | 1,190 | 73 | 5,022 | ||||||||||
Advisor’s fee, related party | 326 | 88 | 67 | 481 | ||||||||||
Property acquisition costs | 292 | — | — | 292 | ||||||||||
General and administrative | 1,481 | 115 | 130 | 1,726 | ||||||||||
Depreciation and amortization | 2,941 | 442 | — | 3,383 | ||||||||||
Total expenses | 16,135 | 2,894 | 270 | 19,299 | ||||||||||
Total revenues less total expenses | (2,417 | ) | (1,465 | ) | 367 | (3,515 | ) | |||||||
Equity in earnings of unconsolidated joint ventures | — | 4 | — | 4 | ||||||||||
Net (loss) income | (2,417 | ) | (1,461 | ) | 367 | (3,511 | ) | |||||||
Plus: net loss attributable to non- controlling interests | 81 | 838 | — | 919 | ||||||||||
Net (loss) income attributable to common shareholders | $ | (2,336 | ) | $ | (623 | ) | $ | 367 | $ | (2,592 | ) | |||
Segment assets at March 31, 2014 | $ | 397,718 | $ | 176,634 | $ | 59,637 | $ | 633,989 | ||||||
The following table summarizes the Trust’s segment reporting for the period indicated (dollars in thousands): | ||||||||||||||
Six Months Ended March 31, 2014 | ||||||||||||||
Multi- | Other | Loan and | Total | |||||||||||
Family | Real Estate | Investment | ||||||||||||
Real Estate | ||||||||||||||
Revenues: | ||||||||||||||
Rental and other revenues from real estate properties | $ | 26,325 | $ | 2,359 | — | $ | 28,684 | |||||||
Interest and fees on real estate loans | — | — | $ | 1,769 | 1,769 | |||||||||
Other income | — | 535 | 12 | 547 | ||||||||||
Total revenues | 26,325 | 2,894 | 1,781 | 31,000 | ||||||||||
Expenses: | ||||||||||||||
Operating expenses relating to real estate properties | 13,896 | 2,133 | — | 16,029 | ||||||||||
Interest expense | 7,244 | 2,389 | 145 | 9,778 | ||||||||||
Advisor’s fee, related party | 619 | 157 | 154 | 930 | ||||||||||
Property acquisition costs | 1,528 | — | — | 1,528 | ||||||||||
General and administrative | 2,942 | 228 | 257 | 3,427 | ||||||||||
Depreciation and amortization | 5,706 | 868 | — | 6,574 | ||||||||||
Total expenses | 31,935 | 5,775 | 556 | 38,266 | ||||||||||
Total revenues less total expenses | (5,610 | ) | (2,881 | ) | 1,225 | (7,266 | ) | |||||||
Equity in earnings of unconsolidated joint ventures | — | 4 | — | 4 | ||||||||||
Net (loss) income | (5,610 | ) | (2,877 | ) | 1,225 | (7,262 | ) | |||||||
Plus: net loss attributable to non- controlling interests | 268 | 1,669 | — | 1,937 | ||||||||||
Net (loss) income attributable to common shareholders | $ | (5,342 | ) | $ | (1,208 | ) | $ | 1,225 | $ | (5,325 | ) | |||
Segment assets at March 31, 2014 | $ | 397,718 | $ | 176,634 | $ | 59,637 | $ | 633,989 | ||||||
The following table summarizes the Trust’s segment reporting for the period indicated (dollars in thousands): | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||
Multi-Family | Other | Loan and | Total | |||||||||||
Real Estate | Real Estate | Investment | ||||||||||||
Revenues: | ||||||||||||||
Rental and other revenues from real estate properties | $ | 6,122 | $ | 744 | — | $ | 6,866 | |||||||
Interest and fees on real estate loans | — | — | $ | 2,966 | 2,966 | |||||||||
Other income | — | 283 | 31 | 344 | ||||||||||
Total revenues | 6,122 | 1,027 | 2,997 | 10,146 | ||||||||||
Expenses: | ||||||||||||||
Operating expenses related to real estate properties | 2,992 | 425 | — | 3,417 | ||||||||||
Interest expense | 1,824 | 711 | 126 | 2,661 | ||||||||||
Advisor’s fees, related party | 166 | 37 | 240 | 443 | ||||||||||
Property acquisition costs | 160 | — | — | 160 | ||||||||||
General and administrative | 1,308 | 86 | 327 | 1,721 | ||||||||||
Depreciation and amortization | 1,435 | 183 | — | 1,618 | ||||||||||
Total expenses | 7,885 | 1,442 | 693 | 10,020 | ||||||||||
Total revenues less total expenses | (1,763 | ) | (415 | ) | 2,304 | 126 | ||||||||
Equity in earnings of unconsolidated ventures | — | 68 | — | 68 | ||||||||||
Gain on sale of available-for-sale securities | — | — | 482 | 482 | ||||||||||
Net (loss) income | (1,763 | ) | (347 | ) | 2,786 | 676 | ||||||||
Plus net (income) loss attributable to non-controlling interests | (21 | ) | 355 | — | 334 | |||||||||
Net (loss) income attributable to common shareholders | $ | (1,784 | ) | $ | 8 | $ | 2,786 | $ | 1,010 | |||||
Segment assets at March 31, 2013 | $ | 188,301 | $ | 151,474 | $ | 100,450 | $ | 440,225 | ||||||
The following table summarizes the Trust’s segment reporting for the period indicated (dollars in thousands): | ||||||||||||||
Six Months Ended March 31, 2013 | ||||||||||||||
Multi-Family | Other | Loan and | Total | |||||||||||
Real Estate | Real Estate | Investment | ||||||||||||
Revenues: | ||||||||||||||
Rental and other revenues from real estate properties | $ | 11,072 | $ | 1,434 | — | $ | 12,506 | |||||||
Interest and fees on real estate loans | — | — | $ | 4,845 | 4,845 | |||||||||
Other income | — | 573 | 473 | 1,046 | ||||||||||
Total revenues | 11,072 | 2,007 | 5,318 | 18,397 | ||||||||||
Expenses: | ||||||||||||||
Operating expenses related to real estate properties | 5,292 | 1,271 | — | 6,563 | ||||||||||
Interest expense | 3,565 | 1,791 | 251 | 5,607 | ||||||||||
Advisor’s fees, related party | 300 | 91 | 426 | 817 | ||||||||||
Property acquisition costs | 1,065 | — | — | 1,065 | ||||||||||
General and administrative | 2,703 | 178 | 676 | 3,557 | ||||||||||
Depreciation and amortization | 2,539 | 366 | — | 2,905 | ||||||||||
Total expenses | 15,464 | 3,697 | 1,353 | 20,514 | ||||||||||
Total revenues less total expenses | (4,392 | ) | (1,690 | ) | 3,965 | (2,117 | ) | |||||||
Equity in earnings of unconsolidated ventures | — | 129 | — | 129 | ||||||||||
Gain on sale of available-for-sale securities | — | — | 482 | 482 | ||||||||||
Net (loss) income | (4,392 | ) | (1,561 | ) | 4,447 | (1,506 | ) | |||||||
Plus net loss attributable to non-controlling interests | 90 | 1,122 | — | 1,212 | ||||||||||
Net (loss) income attributable to common shareholders | $ | (4,302 | ) | $ | (439 | ) | $ | 4,447 | $ | (294 | ) | |||
Segment assets at March 31, 2013 | $ | 188,301 | $ | 151,474 | $ | 100,450 | $ | 440,225 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Fair Value of Financial Instruments | ' | |||||||||
Fair Value of Financial Instruments | ' | |||||||||
Note 9 — 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 13%. The earning mortgage loan of the Trust which has a fixed rate provision has an estimated fair value of $12,000 greater than its carrying value assuming a market rate of interest of 11% which we believe reflects current institutional lender yield requirements. | ||||||||||
Junior subordinated notes: At March 31, 2014, the estimated fair value of the Trust’s junior subordinated notes is lower than their carrying value by approximately $22.3 million based on a market interest rate of 6.84%. | ||||||||||
Mortgage payables: At March 31, 2014, the estimated fair value of the Trust’s mortgage payables is lower than their carrying value by approximately $12.0 million assuming market interest rates between 2.31% and 9.58%. Market interest rates were determined using rates which the Trust believes reflects current 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 March 31, 2014 (dollars in thousands): | ||||||||||
Carrying and | Fair Value Measurements | |||||||||
Using Fair Value Hierarchy | ||||||||||
Fair Value | Level 1 | Level 2 | ||||||||
Financial Assets: | ||||||||||
Interest rate swap | $ | 4 | — | $ | 4 | |||||
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 March 31, 2014, 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 March 31, 2014, 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 | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
Note 10 — 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. | |||||||||||||
As of March 31, 2014, 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 $26 and $1,100 for the three months ended March 31, 2014 and March 31, 2013, respectively and $550 and $5,700 for the six months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, 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 (dollars in thousands): | |||||||||||||
Derivatives as of: | |||||||||||||
March 31, 2014 | September 30, 2013 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Other assets | $ | 4 | 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 periods indicated (dollars in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Amount of gain (loss) recognized on derivative in Other Comprehensive (loss) income | $ | (25 | ) | $ | 9 | (7 | ) | $ | 11 | ||||
Amount of loss reclassified from Accumulated Other Comprehensive (loss) income into Interest Expense | (8 | ) | (9 | ) | (17 | ) | (18 | ) | |||||
No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Trust’s cash flow hedges during the three and six months ended March 31, 2014 and March 31, 2013. During the twelve months ending March 31, 2015, 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 Trust has an agreement with one of its derivative counterparties that contains a provision whereby 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 March 31, 2014, the Company had no derivatives in a liability position. |
New_Accounting_Pronouncement
New Accounting Pronouncement | 6 Months Ended |
Mar. 31, 2014 | |
New Accounting Pronouncement | ' |
New Accounting Pronouncement | ' |
Note 11 — New Accounting Pronouncement | |
In April 2014, the Financial Accounting Standards Board issued updated guidance that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The guidance is effective prospectively as of the first quarter of 2015, with early adoption permitted for new disposals or new classifications as held-for-sale. The Trust early adopted this new guidance in the second quarter of fiscal 2014 and it did not have any effect on the Trust’s consolidated financial statements. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014 that warrant additional disclosure, have been included in the notes to the consolidated financial statements |
Basis_of_Preparation_Policies
Basis of Preparation (Policies) | 6 Months Ended |
Mar. 31, 2014 | |
Basis of Preparation | ' |
Basis of Preparation | ' |
The accompanying interim unaudited consolidated financial statements as of March 31, 2014, and for the three and six months ended March 31, 2014 and 2013, reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the results for such interim periods. The results of operations for the three and six months ended March 31, 2014 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 previously classified as held for sale to real estate assets and liabilities and to reclassify the operations of this property to continuing operations and the reclassification of certain professional fees to property acquisition costs. | |
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) | 6 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Real Estate Properties | ' | |||||||||||||||||
Summary of real estate properties owned | ' | |||||||||||||||||
A summary of real estate properties owned is as follows (dollars in thousands): | ||||||||||||||||||
September | Additions (a) | Capitalized | Depreciation, | March 31, | ||||||||||||||
30, 2013 | Costs and | Amortization | 2014 | |||||||||||||||
Balance | Improvements | and other | Balance | |||||||||||||||
changes | ||||||||||||||||||
Multi-family | $ | 299,792 | $ | 107,320 | $ | 5,093 | $ | (5,710 | ) | $ | 406,495 | |||||||
Commercial / mixed use (b) | 92,354 | — | 10,163 | (807 | ) | 101,710 | ||||||||||||
Vacant land | 7,972 | — | — | — | 7,972 | |||||||||||||
Retail/Shopping centers | 2,645 | — | — | (51 | ) | 2,594 | ||||||||||||
Coop/condo apartments | 133 | — | 6 | 14 | 153 | |||||||||||||
Total real estate properties | $ | 402,896 | $ | 107,320 | $ | 15,262 | $ | (6,554 | ) | $ | 518,924 | |||||||
(a) During the six months ended March 31, 2014, 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 and the Greenville, SC venture in which the Trust has a 74.4% equity interest), the following multi-family properties (dollars in thousands): | ||||||||||||||||||
Location | Purchase | No of | Contract | Acquisition | Initial | Property | ||||||||||||
Date | Units | Purchase | Mortgage | BRT | Acquisition | |||||||||||||
Price | Debt | Equity | Costs | |||||||||||||||
Houston, TX | 10/4/13 | 798 | $ | 32,800 | $ | 24,100 | $ | 10,525 | $ | 483 | ||||||||
Pasadena, TX | 10/15/13 | 144 | 5,420 | 4,065 | 1,687 | 134 | ||||||||||||
Humble, TX | 10/15/13 | 260 | 10,500 | 7,875 | 3,129 | 189 | ||||||||||||
Humble, TX | 10/15/13 | 160 | 6,700 | 5,025 | 1,908 | 138 | ||||||||||||
Huntsville, AL | 10/18/13 | 208 | 12,050 | 9,573 | 3,950 | 202 | ||||||||||||
Columbus, OH | 11/21/13 | 264 | 14,050 | 10,651 | 3,734 | 97 | ||||||||||||
Greenville, SC (i) | 1/14/14 | N/A | 7,000 | — | 6,400 | — | ||||||||||||
Indianapolis, IN | 1/21/14 | 400 | 18,800 | 14,500 | 5,300 | 230 | ||||||||||||
Other | — | — | — | — | 55 | |||||||||||||
2,234 | $ | 107,320 | $ | 75,789 | $ | 36,633 | $ | 1,528 | ||||||||||
(i) The Greenville, SC joint venture is developing a 360 unit multi-family property with ground floor retail of approximately 10,000 square feet. In connection therewith, the Trust is obligated to fund additional capital contributions of $3,300,000 through May 2014. See Note 6 — Debt Obligations - Mortgages Payable. | ||||||||||||||||||
(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 as mortgagee, which are eliminated in consolidation. Several of the assets are also encumbered by third party mortgages aggregating $80,185,000 at March 31, 2014. The Trust contributed $2,473,000 to this venture in the six months ended March 31, 2014, representing its proportionate share of capital required to fund the operations of the venture for the ventures current fiscal year and to obtain options on additional land parcels. 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 2013 fiscal year and to purchase additional land parcels. | ||||||||||||||||||
Schedule of multi-family properties purchased through joint ventures | ' | |||||||||||||||||
During the six months ended March 31, 2014, 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 and the Greenville, SC venture in which the Trust has a 74.4% equity interest), the following multi-family properties (dollars in thousands): | ||||||||||||||||||
Location | Purchase | No of | Contract | Acquisition | Initial | Property | ||||||||||||
Date | Units | Purchase | Mortgage | BRT | Acquisition | |||||||||||||
Price | Debt | Equity | Costs | |||||||||||||||
Houston, TX | 10/4/13 | 798 | $ | 32,800 | $ | 24,100 | $ | 10,525 | $ | 483 | ||||||||
Pasadena, TX | 10/15/13 | 144 | 5,420 | 4,065 | 1,687 | 134 | ||||||||||||
Humble, TX | 10/15/13 | 260 | 10,500 | 7,875 | 3,129 | 189 | ||||||||||||
Humble, TX | 10/15/13 | 160 | 6,700 | 5,025 | 1,908 | 138 | ||||||||||||
Huntsville, AL | 10/18/13 | 208 | 12,050 | 9,573 | 3,950 | 202 | ||||||||||||
Columbus, OH | 11/21/13 | 264 | 14,050 | 10,651 | 3,734 | 97 | ||||||||||||
Greenville, SC (i) | 1/14/14 | N/A | 7,000 | — | 6,400 | — | ||||||||||||
Indianapolis, IN | 1/21/14 | 400 | 18,800 | 14,500 | 5,300 | 230 | ||||||||||||
Other | — | — | — | — | 55 | |||||||||||||
2,234 | $ | 107,320 | $ | 75,789 | $ | 36,633 | $ | 1,528 | ||||||||||
(i) The Greenville, SC joint venture is developing a 360 unit multi-family property with ground floor retail of approximately 10,000 square feet. In connection therewith, the Trust is obligated to fund additional capital contributions of $3,300,000 through May 2014. See Note 6 — Debt Obligations - Mortgages Payable. | ||||||||||||||||||
Schedule of multi-family properties purchased through a joint venture subsequent to end of period | ' | |||||||||||||||||
Subsequent to March 31, 2014, the Trust purchased, through a joint venture in which it has an 80% equity interest, the following multi-family properties (dollars in thousands): | ||||||||||||||||||
Location | Purchase | No. of | Contract | Acquisition | Initial | Estimated | ||||||||||||
Date | Units | Purchase Price | Mortgage Debt | BRT | Acquisition | |||||||||||||
Equity | Costs | |||||||||||||||||
Nashville, TN | 4/2/14 | 300 | $ | 26,750 | $ | 17,300 | $ | 8,420 | $ | 278 | ||||||||
Little Rock, AK | 4/2/14 | 172 | 6,750 | 4,101 | 2,372 | 97 | ||||||||||||
Witchita, KS | 4/2/14 | 496 | 20,750 | 13,863 | 6,932 | 160 | ||||||||||||
968 | $ | 54,250 | $ | 35,264 | $ | 17,724 | $ | 535 |
Real_Estate_Loans_Tables
Real Estate Loans (Tables) | 6 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Real Estate Loans | ' | |||||||||||
Summary information relating to real estate loans | ' | |||||||||||
Information relating to all five of the Trust’s real estate loans, all of which are earning interest, is summarized as follows (dollars in thousands): | ||||||||||||
March 31, 2014 | September 30, 2013 | |||||||||||
Property Type | Real Estate | Percent | Real Estate | Percent | ||||||||
Loans | Loans | |||||||||||
Multi-family residential | $ | 9,161 | 53 | % | $ | 16,772 | 55 | % | ||||
Retail | 6,476 | 37 | % | 3,100 | 10 | % | ||||||
Hotel | 1,680 | 10 | % | 1,680 | 6 | % | ||||||
Land | — | — | 8,000 | 26 | % | |||||||
Single family | — | — | 961 | 3 | % | |||||||
17,317 | 100 | % | 30,513 | 100 | % | |||||||
Deferred fee income | (95 | ) | (213 | ) | ||||||||
Real estate loans, net | $ | 17,222 | $ | 30,300 |
Debt_Obligations_Tables
Debt Obligations (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Debt Obligations | ' | ||||||||||||
Schedule of debt obligations | ' | ||||||||||||
Debt obligations consist of the following (dollars in thousands): | |||||||||||||
March 31, 2014 | September 30, 2013 | ||||||||||||
Junior subordinated notes | $ | 37,400 | $ | 37,400 | |||||||||
Mortgages payable | 393,221 | 313,216 | |||||||||||
Total debt obligations | $ | 430,621 | $ | 350,616 | |||||||||
Junior subordinated notes | ' | ||||||||||||
Debt obligations | ' | ||||||||||||
Schedule of debt information | ' | ||||||||||||
Interest Period | Interest Rate | ||||||||||||
August 1, 2012 through April 29, 2016 | 4.9 | % | |||||||||||
April 30, 2016 through April 30, 2036 | Libor + 2.00 | % | |||||||||||
Mortgages payable | ' | ||||||||||||
Debt obligations | ' | ||||||||||||
Schedule of debt information | ' | ||||||||||||
During the six months ended March 31, 2014, the Trust purchased the following properties 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 | |||||||
Indianapolis, IN | 1/21/14 | 14,500 | 4.77 | % | 36 months | February 2024 | |||||||
$ | 75,789 | ||||||||||||
Supplemental financing | ' | ||||||||||||
Debt obligations | ' | ||||||||||||
Schedule of debt information | ' | ||||||||||||
In the quarter ended March 31, 2014, the Trust also obtained supplemental financing on two multi-family properties on the following terms (dollars in thousands): | |||||||||||||
Location | Amount | Interest Rate | Maturity Date | ||||||||||
Lawrenceville, GA | $ | 1,613 | 5.46 | % | March 2022 | ||||||||
Decatur, GA | 2,489 | 5.74 | % | December 2022 | |||||||||
$ | 4,102 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Summary of segment reporting | ' | |||||||||||||
The following table summarizes the Trust’s segment reporting for the period indicated (dollars in thousands): | ||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||
Multi- | Other | Loan and | Total | |||||||||||
Family | Real Estate | Investment | ||||||||||||
Real Estate | ||||||||||||||
Revenues: | ||||||||||||||
Rental and other revenues from real estate properties | $ | 13,718 | $ | 1,159 | — | $ | 14,877 | |||||||
Interest and fees on real estate loans | — | — | $ | 631 | 631 | |||||||||
Other income | — | 270 | 6 | 276 | ||||||||||
Total revenues | 13,718 | 1,429 | 637 | 15,784 | ||||||||||
Expenses: | ||||||||||||||
Operating expenses relating to real estate properties | 7,336 | 1,059 | — | 8,395 | ||||||||||
Interest expense | 3,759 | 1,190 | 73 | 5,022 | ||||||||||
Advisor’s fee, related party | 326 | 88 | 67 | 481 | ||||||||||
Property acquisition costs | 292 | — | — | 292 | ||||||||||
General and administrative | 1,481 | 115 | 130 | 1,726 | ||||||||||
Depreciation and amortization | 2,941 | 442 | — | 3,383 | ||||||||||
Total expenses | 16,135 | 2,894 | 270 | 19,299 | ||||||||||
Total revenues less total expenses | (2,417 | ) | (1,465 | ) | 367 | (3,515 | ) | |||||||
Equity in earnings of unconsolidated joint ventures | — | 4 | — | 4 | ||||||||||
Net (loss) income | (2,417 | ) | (1,461 | ) | 367 | (3,511 | ) | |||||||
Plus: net loss attributable to non- controlling interests | 81 | 838 | — | 919 | ||||||||||
Net (loss) income attributable to common shareholders | $ | (2,336 | ) | $ | (623 | ) | $ | 367 | $ | (2,592 | ) | |||
Segment assets at March 31, 2014 | $ | 397,718 | $ | 176,634 | $ | 59,637 | $ | 633,989 | ||||||
The following table summarizes the Trust’s segment reporting for the period indicated (dollars in thousands): | ||||||||||||||
Six Months Ended March 31, 2014 | ||||||||||||||
Multi- | Other | Loan and | Total | |||||||||||
Family | Real Estate | Investment | ||||||||||||
Real Estate | ||||||||||||||
Revenues: | ||||||||||||||
Rental and other revenues from real estate properties | $ | 26,325 | $ | 2,359 | — | $ | 28,684 | |||||||
Interest and fees on real estate loans | — | — | $ | 1,769 | 1,769 | |||||||||
Other income | — | 535 | 12 | 547 | ||||||||||
Total revenues | 26,325 | 2,894 | 1,781 | 31,000 | ||||||||||
Expenses: | ||||||||||||||
Operating expenses relating to real estate properties | 13,896 | 2,133 | — | 16,029 | ||||||||||
Interest expense | 7,244 | 2,389 | 145 | 9,778 | ||||||||||
Advisor’s fee, related party | 619 | 157 | 154 | 930 | ||||||||||
Property acquisition costs | 1,528 | — | — | 1,528 | ||||||||||
General and administrative | 2,942 | 228 | 257 | 3,427 | ||||||||||
Depreciation and amortization | 5,706 | 868 | — | 6,574 | ||||||||||
Total expenses | 31,935 | 5,775 | 556 | 38,266 | ||||||||||
Total revenues less total expenses | (5,610 | ) | (2,881 | ) | 1,225 | (7,266 | ) | |||||||
Equity in earnings of unconsolidated joint ventures | — | 4 | — | 4 | ||||||||||
Net (loss) income | (5,610 | ) | (2,877 | ) | 1,225 | (7,262 | ) | |||||||
Plus: net loss attributable to non- controlling interests | 268 | 1,669 | — | 1,937 | ||||||||||
Net (loss) income attributable to common shareholders | $ | (5,342 | ) | $ | (1,208 | ) | $ | 1,225 | $ | (5,325 | ) | |||
Segment assets at March 31, 2014 | $ | 397,718 | $ | 176,634 | $ | 59,637 | $ | 633,989 | ||||||
The following table summarizes the Trust’s segment reporting for the period indicated (dollars in thousands): | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||
Multi-Family | Other | Loan and | Total | |||||||||||
Real Estate | Real Estate | Investment | ||||||||||||
Revenues: | ||||||||||||||
Rental and other revenues from real estate properties | $ | 6,122 | $ | 744 | — | $ | 6,866 | |||||||
Interest and fees on real estate loans | — | — | $ | 2,966 | 2,966 | |||||||||
Other income | — | 283 | 31 | 344 | ||||||||||
Total revenues | 6,122 | 1,027 | 2,997 | 10,146 | ||||||||||
Expenses: | ||||||||||||||
Operating expenses related to real estate properties | 2,992 | 425 | — | 3,417 | ||||||||||
Interest expense | 1,824 | 711 | 126 | 2,661 | ||||||||||
Advisor’s fees, related party | 166 | 37 | 240 | 443 | ||||||||||
Property acquisition costs | 160 | — | — | 160 | ||||||||||
General and administrative | 1,308 | 86 | 327 | 1,721 | ||||||||||
Depreciation and amortization | 1,435 | 183 | — | 1,618 | ||||||||||
Total expenses | 7,885 | 1,442 | 693 | 10,020 | ||||||||||
Total revenues less total expenses | (1,763 | ) | (415 | ) | 2,304 | 126 | ||||||||
Equity in earnings of unconsolidated ventures | — | 68 | — | 68 | ||||||||||
Gain on sale of available-for-sale securities | — | — | 482 | 482 | ||||||||||
Net (loss) income | (1,763 | ) | (347 | ) | 2,786 | 676 | ||||||||
Plus net (income) loss attributable to non-controlling interests | (21 | ) | 355 | — | 334 | |||||||||
Net (loss) income attributable to common shareholders | $ | (1,784 | ) | $ | 8 | $ | 2,786 | $ | 1,010 | |||||
Segment assets at March 31, 2013 | $ | 188,301 | $ | 151,474 | $ | 100,450 | $ | 440,225 | ||||||
The following table summarizes the Trust’s segment reporting for the period indicated (dollars in thousands): | ||||||||||||||
Six Months Ended March 31, 2013 | ||||||||||||||
Multi-Family | Other | Loan and | Total | |||||||||||
Real Estate | Real Estate | Investment | ||||||||||||
Revenues: | ||||||||||||||
Rental and other revenues from real estate properties | $ | 11,072 | $ | 1,434 | — | $ | 12,506 | |||||||
Interest and fees on real estate loans | — | — | $ | 4,845 | 4,845 | |||||||||
Other income | — | 573 | 473 | 1,046 | ||||||||||
Total revenues | 11,072 | 2,007 | 5,318 | 18,397 | ||||||||||
Expenses: | ||||||||||||||
Operating expenses related to real estate properties | 5,292 | 1,271 | — | 6,563 | ||||||||||
Interest expense | 3,565 | 1,791 | 251 | 5,607 | ||||||||||
Advisor’s fees, related party | 300 | 91 | 426 | 817 | ||||||||||
Property acquisition costs | 1,065 | — | — | 1,065 | ||||||||||
General and administrative | 2,703 | 178 | 676 | 3,557 | ||||||||||
Depreciation and amortization | 2,539 | 366 | — | 2,905 | ||||||||||
Total expenses | 15,464 | 3,697 | 1,353 | 20,514 | ||||||||||
Total revenues less total expenses | (4,392 | ) | (1,690 | ) | 3,965 | (2,117 | ) | |||||||
Equity in earnings of unconsolidated ventures | — | 129 | — | 129 | ||||||||||
Gain on sale of available-for-sale securities | — | — | 482 | 482 | ||||||||||
Net (loss) income | (4,392 | ) | (1,561 | ) | 4,447 | (1,506 | ) | |||||||
Plus net loss attributable to non-controlling interests | 90 | 1,122 | — | 1,212 | ||||||||||
Net (loss) income attributable to common shareholders | $ | (4,302 | ) | $ | (439 | ) | $ | 4,447 | $ | (294 | ) | |||
Segment assets at March 31, 2013 | $ | 188,301 | $ | 151,474 | $ | 100,450 | $ | 440,225 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
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 March 31, 2014 (dollars in thousands): | ||||||||||
Carrying and | Fair Value Measurements | |||||||||
Using Fair Value Hierarchy | ||||||||||
Fair Value | Level 1 | Level 2 | ||||||||
Financial Assets: | ||||||||||
Interest rate swap | $ | 4 | — | $ | 4 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Interest Rate Derivatives | ' | ||||||||||||
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 (dollars in thousands): | |||||||||||||
Derivatives as of: | |||||||||||||
March 31, 2014 | September 30, 2013 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Other assets | $ | 4 | Other assets | $ | 1 | ||||||||
Accounts payable and accrued liabilities | $ | — | Accounts payable and accrued liabilities | $ | 6 | ||||||||
Schedule of effect of derivative financial instrument on 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 periods indicated (dollars in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Amount of gain (loss) recognized on derivative in Other Comprehensive (loss) income | $ | (25 | ) | $ | 9 | (7 | ) | $ | 11 | ||||
Amount of loss reclassified from Accumulated Other Comprehensive (loss) income into Interest Expense | (8 | ) | (9 | ) | (17 | ) | (18 | ) | |||||
Derivative designated as a cash flow hedge | ' | ||||||||||||
Interest Rate Derivatives | ' | ||||||||||||
Schedule of outstanding interest rate derivatives | ' | ||||||||||||
As of March 31, 2014, 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 March 31, 2014, 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) | 6 Months Ended |
Mar. 31, 2014 | |
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 | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 15 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Restricted Shares | Restricted Shares | Restricted Shares | Restricted Shares | 2012 Incentive Plan | 2012 Incentive Plan | 2012 Incentive Plan | Prior Plans | Prior Plans | |||||
Restricted Shares | Restricted Shares | Restricted Shares | |||||||||||
Equity incentive plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' |
Restricted Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 272,025 | ' | ' |
Shares vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' |
Shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 271,975 | 271,975 | ' | 376,300 |
Number of additional awards available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Vesting period for shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '5 years |
Compensation expense | ' | ' | ' | ' | $214,000 | $137,000 | $394,000 | $330,000 | ' | ' | ' | ' | ' |
Unearned compensation | ' | ' | ' | ' | $2,489,000 | ' | $2,489,000 | ' | ' | ' | ' | ' | ' |
Remaining weighted average vesting period | ' | ' | ' | ' | ' | ' | '2 years 10 months 13 days | ' | ' | ' | ' | ' | ' |
Per Share Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic and diluted shares outstanding | 14,294,022 | 14,170,229 | 14,227,734 | 14,111,153 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real_Estate_Properties_Details
Real Estate Properties (Details) (USD $) | 6 Months Ended | 6 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
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 | $402,896 | $299,792 | $92,354 | $7,972 | $7,972 | $2,645 | $133 |
Additions | 107,320 | 107,320 | ' | ' | ' | ' | ' |
Capitalized Costs and Improvements | 15,262 | 5,093 | 10,163 | ' | ' | ' | 6 |
Depreciation, Amortization and other changes | -6,554 | -5,710 | -807 | ' | ' | -51 | 14 |
Balance at the end of the period | $518,924 | $406,495 | $101,710 | $7,972 | $7,972 | $2,594 | $153 |
Real_Estate_Properties_Details1
Real Estate Properties (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Oct. 04, 2013 | Oct. 04, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 18, 2013 | Oct. 18, 2013 | Jan. 21, 2014 | Jan. 21, 2014 | Mar. 31, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Jan. 14, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Nov. 21, 2013 | Nov. 21, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Mortgages | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint ventures | Consolidated joint ventures | Consolidated joint ventures | Newark Joint Venture | Newark Joint Venture | Newark Joint Venture | Wholly owned subsidiary | Wholly owned subsidiary | Consolidated joint ventures and 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 | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Property development | Property development | Property development | Purchase of properties | Purchase of properties | Purchase of properties | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | |||||||
Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Vacant land | Multi Family | Vacant land | Retail/Shopping centers | Multi Family | Multi Family | Multi Family | Commercial/mixed use properties | Commercial/mixed use properties | Commercial/mixed use properties | Multi Family | Multi Family | Multi Family | Multi Family | |||||||
Houston, TX | Houston, TX | Pasadena, TX | Pasadena, TX | Humble, TX, first location | Humble, TX, first location | Humble, TX, second location | Humble, TX, second location | Huntsville, AL | Huntsville, AL | Indianapolis, IN | Indianapolis, IN | Other | Nashville, TN | Nashville, TN | Nashville, TN | Little Rock, AK | Little Rock, AK | Little Rock, AK | Wichita, KS | Wichita, KS | Wichita, KS | Greenville, South Carolina | Greenville, South Carolina | Greenville, South Carolina | Greenville, South Carolina | unit | Estimate | Mortgages | Newark, New Jersey | Newark, New Jersey | Newark, New Jersey | Columbus, OH | Columbus, OH | unit | Mortgages | |||||||
unit | Mortgages | unit | Mortgages | unit | Mortgages | unit | Mortgages | unit | Mortgages | unit | Mortgages | unit | Estimate | Mortgages | unit | Estimate | Mortgages | unit | Estimate | Mortgages | unit | sqft | sqft | Mortgages | unit | Mortgages | ||||||||||||||||
Real Estate Properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest in joint venture (as a percent) | ' | ' | ' | ' | ' | ' | 80.00% | ' | 80.00% | ' | 80.00% | ' | 80.00% | ' | 80.00% | ' | 80.00% | ' | ' | 80.00% | ' | ' | 80.00% | ' | ' | 80.00% | ' | ' | 74.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units | ' | ' | ' | ' | ' | ' | 798 | ' | 144 | ' | 260 | ' | 160 | ' | 208 | ' | 400 | ' | ' | 300 | ' | ' | 172 | ' | ' | 496 | ' | ' | ' | 360 | ' | ' | 968 | ' | ' | ' | ' | ' | 264 | ' | 2,234 | ' |
Contract Purchase Price | ' | ' | ' | ' | ' | ' | $32,800,000 | ' | $5,420,000 | ' | $10,500,000 | ' | $6,700,000 | ' | $12,050,000 | ' | $18,800,000 | ' | ' | $26,750,000 | ' | ' | $6,750,000 | ' | ' | $20,750,000 | ' | ' | $7,000,000 | ' | ' | ' | $54,250,000 | ' | ' | ' | ' | ' | $14,050,000 | ' | $107,320,000 | ' |
Acquisition Debt | ' | ' | ' | ' | ' | 75,789,000 | ' | 24,100,000 | ' | 4,065,000 | ' | 7,875,000 | ' | 5,025,000 | ' | 9,573,000 | ' | 14,500,000 | ' | ' | ' | 17,300,000 | ' | ' | 4,101,000 | ' | ' | 13,863,000 | ' | ' | ' | ' | ' | ' | 35,264,000 | ' | ' | ' | ' | 10,651,000 | ' | 75,789,000 |
Initial BRT Equity | ' | ' | ' | ' | ' | ' | 10,525,000 | ' | 1,687,000 | ' | 3,129,000 | ' | 1,908,000 | ' | 3,950,000 | ' | 5,300,000 | ' | ' | 8,420,000 | ' | ' | 2,372,000 | ' | ' | 6,932,000 | ' | ' | 6,400,000 | ' | ' | ' | 17,724,000 | ' | ' | 2,473,000 | 1,729,000 | ' | ' | ' | ' | ' |
BRT Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,734,000 | ' | 36,633,000 | ' |
Property Acquisition Costs | 292,000 | 160,000 | 1,528,000 | 1,065,000 | ' | ' | 483,000 | ' | 134,000 | ' | 189,000 | ' | 138,000 | ' | 202,000 | ' | 230,000 | ' | 55,000 | ' | 278,000 | ' | ' | 97,000 | ' | ' | 160,000 | ' | ' | ' | ' | ' | ' | 535,000 | ' | ' | ' | ' | 97,000 | ' | 1,528,000 | ' |
Additional capital contributions through May 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of real estate properties (in square feet) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 690,000 | ' | ' | ' | ' | ' | ' |
Area of real estate property under construction (in square feet) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | 190,000 | ' | ' | ' | ' | ' | ' |
Aggregate principal of related party mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,100,000 | ' | ' | ' | ' |
Mortgages | $393,221,000 | ' | $393,221,000 | ' | $313,216,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $80,185,000 | ' | ' | ' | ' | ' | ' |
Real_Estate_Loans_Details
Real Estate Loans (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Loans | ' | ' |
Real Estate Loans, gross | $17,317 | $30,513 |
Deferred fee income | -95 | -213 |
Real Estate Loans, Net | 17,222 | 30,300 |
Percent of real estate loans | 100.00% | 100.00% |
Multi-family residential | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | 9,161 | 16,772 |
Percent of real estate loans | 53.00% | 55.00% |
Retail | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | 6,476 | 3,100 |
Percent of real estate loans | 37.00% | 10.00% |
Hotels | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | 1,680 | 1,680 |
Percent of real estate loans | 10.00% | 6.00% |
Land | ' | ' |
Real Estate Loans | ' | ' |
Real Estate Loans, gross | ' | 8,000 |
Percent of real estate loans | ' | 26.00% |
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) (Real properties, Geographic concentration, Senior mortgage loans) | 6 Months Ended |
Mar. 31, 2014 | |
New York | ' |
Concentration of loans | ' |
Percentage of total | 56.00% |
Maryland | ' |
Concentration of loans | ' |
Percentage of total | 26.00% |
Tennessee | ' |
Concentration of loans | ' |
Percentage of total | 10.00% |
Florida | ' |
Concentration of loans | ' |
Percentage of total | 8.00% |
Debt_Obligations_Details
Debt Obligations (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | |
Debt Obligations | ' | ' | ' | ' | ' |
Total debt obligations | $430,621,000 | ' | $430,621,000 | ' | $350,616,000 |
Junior subordinated notes | ' | ' | ' | ' | ' |
Debt Obligations | ' | ' | ' | ' | ' |
Total debt obligations | 37,400,000 | ' | 37,400,000 | ' | 37,400,000 |
Other disclosures | ' | ' | ' | ' | ' |
Interest expense | 458,000 | 458,000 | 916,000 | 916,000 | ' |
Amortization of deferred costs included in interest expense | 5,000 | 5,000 | 10,000 | 10,000 | ' |
Junior subordinated notes | August 1, 2012 through April 29, 2016 | ' | ' | ' | ' | ' |
Debt Obligations | ' | ' | ' | ' | ' |
Interest Rate (as a percent) | 4.90% | ' | 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 | $393,221,000 | ' | $393,221,000 | ' | $313,216,000 |
Debt_Obligations_Details_2
Debt Obligations (Details 2) (USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | 5-May-14 | Oct. 04, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 18, 2013 | Nov. 21, 2013 | Jan. 21, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Oct. 04, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 15, 2013 | Oct. 18, 2013 | Jan. 21, 2014 | |
Greenville, South Carolina | Greenville, South Carolina | 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 2023 | Mortgages payable maturing in February 2045 | Mortgages payable maturing in February 2024 | Mortgages payable maturing in March 2022 | Mortgages payable maturing in December 2022 | Supplemental financing | Mortgages | Mortgages | Mortgages | Mortgages | Mortgages | Mortgages | Mortgages | |||
Multi Family | Multi Family | Houston, TX | Pasadena, TX | Humble, TX, first location | Humble, TX, second location | Huntsville, AL | Columbus, OH | Indianapolis, IN | Lawrenceville, GA | Decatur, GA | Multi Family | Houston, TX | Pasadena, TX | Humble, TX, first location | Humble, TX, second location | Huntsville, AL | Indianapolis, IN | ||||
Consolidated joint venture | Consolidated joint venture | Multi Family | Multi Family | property | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | Multi Family | |||||||||||
Property development | Property development | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | Consolidated joint venture | ||||||||||||||
Construction loan | Construction loan | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | Purchase of properties | ||||||||||||||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition Mortgage Debt | ' | ' | ' | ' | $24,100,000 | $4,065,000 | $7,875,000 | $5,025,000 | $9,573,000 | $10,651,000 | $14,500,000 | ' | ' | ' | $75,789,000 | $24,100,000 | $4,065,000 | $7,875,000 | $5,025,000 | $9,573,000 | $14,500,000 |
Interest rate (as a percent) | ' | ' | ' | ' | 4.85% | 4.90% | 4.90% | 4.90% | 4.99% | 4.35% | 4.77% | 5.46% | 5.74% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Only Period | ' | ' | ' | ' | '12 months | '12 months | '12 months | '12 months | '24 months | ' | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum financing | ' | ' | 38,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reference rate | ' | ' | 'one month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin interest above reference rate (as a percent) | ' | ' | 1.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties on which supplemental financing was obtained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from mortgage financings | $80,535,000 | $52,248,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,613,000 | $2,489,000 | $4,102,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred_Income_New_Markets_Ta1
Deferred Income (New Markets Tax Credit Transaction) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 11, 2012 | Feb. 03, 2012 | Mar. 31, 2014 | 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 | $13,371,000 | $12,833,000 | ' | ' | ' | $9,100,000 | $9,600,000 | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 |
item | |||||
Segment Reporting | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 3 | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Rental and other revenues from real estate properties | $14,877 | $6,866 | $28,684 | $12,506 | ' |
Interest and fees on real estate loans | 631 | 2,966 | 1,769 | 4,845 | ' |
Other income | 276 | 314 | 547 | 1,046 | ' |
Total revenues | 15,784 | 10,146 | 31,000 | 18,397 | ' |
Expenses: | ' | ' | ' | ' | ' |
Operating expenses relating to real estate properties | 8,395 | 3,417 | 16,029 | 6,563 | ' |
Interest expense | 5,022 | 2,661 | 9,778 | 5,607 | ' |
Advisor's fees, related party | 481 | 443 | 930 | 817 | ' |
Property acquisition costs | 292 | 160 | 1,528 | 1,065 | ' |
General and administrative | 1,726 | 1,721 | 3,427 | 3,557 | ' |
Depreciation and amortization | 3,383 | 1,618 | 6,574 | 2,905 | ' |
Total expenses | 19,299 | 10,020 | 38,266 | 20,514 | ' |
Total revenues less total expenses | -3,515 | 126 | -7,266 | -2,117 | ' |
Equity in earnings of unconsolidated joint ventures | 4 | 68 | 4 | 129 | ' |
Gain on sale of available-for-sale securities | ' | 482 | ' | 482 | ' |
Net (loss) income | -3,511 | 676 | -7,262 | -1,506 | ' |
Plus: net (income) loss attributable to non-controlling interests | 919 | 334 | 1,937 | 1,212 | ' |
Net (loss) income attributable to common shareholders | -2,592 | 1,010 | -5,325 | -294 | ' |
Segment assets | 633,989 | 440,225 | 633,989 | 440,225 | 549,491 |
Multi-Family Real Estate | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Rental and other revenues from real estate properties | 13,718 | 6,122 | 26,325 | 11,072 | ' |
Total revenues | 13,718 | 6,122 | 26,325 | 11,072 | ' |
Expenses: | ' | ' | ' | ' | ' |
Operating expenses relating to real estate properties | 7,336 | 2,992 | 13,896 | 5,292 | ' |
Interest expense | 3,759 | 1,824 | 7,244 | 3,565 | ' |
Advisor's fees, related party | 326 | 166 | 619 | 300 | ' |
Property acquisition costs | 292 | 160 | 1,528 | 1,065 | ' |
General and administrative | 1,481 | 1,308 | 2,942 | 2,703 | ' |
Depreciation and amortization | 2,941 | 1,435 | 5,706 | 2,539 | ' |
Total expenses | 16,135 | 7,885 | 31,935 | 15,464 | ' |
Total revenues less total expenses | -2,417 | -1,763 | -5,610 | -4,392 | ' |
Net (loss) income | -2,417 | -1,763 | -5,610 | -4,392 | ' |
Plus: net (income) loss attributable to non-controlling interests | 81 | -21 | 268 | 90 | ' |
Net (loss) income attributable to common shareholders | -2,336 | -1,784 | -5,342 | -4,302 | ' |
Segment assets | 397,718 | 188,301 | 397,718 | 188,301 | ' |
Other Real Estate | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Rental and other revenues from real estate properties | 1,159 | 744 | 2,359 | 1,434 | ' |
Other income | 270 | 283 | 535 | 573 | ' |
Total revenues | 1,429 | 1,027 | 2,894 | 2,007 | ' |
Expenses: | ' | ' | ' | ' | ' |
Operating expenses relating to real estate properties | 1,059 | 425 | 2,133 | 1,271 | ' |
Interest expense | 1,190 | 711 | 2,389 | 1,791 | ' |
Advisor's fees, related party | 88 | 37 | 157 | 91 | ' |
General and administrative | 115 | 86 | 228 | 178 | ' |
Depreciation and amortization | 442 | 183 | 868 | 366 | ' |
Total expenses | 2,894 | 1,442 | 5,775 | 3,697 | ' |
Total revenues less total expenses | -1,465 | -415 | -2,881 | -1,690 | ' |
Equity in earnings of unconsolidated joint ventures | 4 | 68 | 4 | 129 | ' |
Net (loss) income | -1,461 | -347 | -2,877 | -1,561 | ' |
Plus: net (income) loss attributable to non-controlling interests | 838 | 355 | 1,669 | 1,122 | ' |
Net (loss) income attributable to common shareholders | -623 | 8 | -1,208 | -439 | ' |
Segment assets | 176,634 | 151,474 | 176,634 | 151,474 | ' |
Loan and Investment | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest and fees on real estate loans | 631 | 2,966 | 1,769 | 4,845 | ' |
Other income | 6 | 31 | 12 | 473 | ' |
Total revenues | 637 | 2,997 | 1,781 | 5,318 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 73 | 126 | 145 | 251 | ' |
Advisor's fees, related party | 67 | 240 | 154 | 426 | ' |
General and administrative | 130 | 327 | 257 | 676 | ' |
Total expenses | 270 | 693 | 556 | 1,353 | ' |
Total revenues less total expenses | 367 | 2,304 | 1,225 | 3,965 | ' |
Gain on sale of available-for-sale securities | ' | 482 | ' | 482 | ' |
Net (loss) income | 367 | 2,786 | 1,225 | 4,447 | ' |
Net (loss) income attributable to common shareholders | 367 | 2,786 | 1,225 | 4,447 | ' |
Segment assets | $59,637 | $100,450 | $59,637 | $100,450 | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Level 2, USD $) | 6 Months Ended | 0 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
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% | 13.00% | ' | ' | ' | ' | ' | ' |
Estimated fair value greater than carrying value | ' | ' | ' | ' | ' | ' | $12,000 | ' | ' |
Fixed market rate of interest (as a percent) | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value lower than carrying value | ' | ' | ' | ' | ' | ' | ' | $22,300,000 | $12,000,000 |
Market interest rate (as a percent) | ' | ' | ' | 6.84% | 2.31% | 9.58% | ' | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (Fair value on a recurring basis, Interest rate swap, USD $) | Mar. 31, 2014 |
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 | $4 |
Level 2 | ' |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | ' |
Derivative financial instruments | $4 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
Interest Expense | Interest Expense | 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 | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -26 | -1,100 | -550 | -5,700 | ' |
Fair value of derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative financial instrument asset | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | 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 (loss) recognized on derivative in Other Comprehensive (loss) income | -25,000 | 9,000 | -7,000 | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loss reclassified from Accumulated Other Comprehensive (loss) income | ' | ' | ' | ' | -8,000 | -9,000 | -17,000 | -18,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain or loss recognized related to hedge ineffectiveness | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain or loss recognized related to amounts excluded from effectiveness testing | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated amount to be reclassified from Accumulated other comprehensive income (loss) as an increase to interest expense | 34,000 | ' | 34,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit-risk-related Contingent Features | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives in a liability position | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |