Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 06, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'EXL | ' |
Entity Registrant Name | 'EXCEL TRUST, INC. | ' |
Entity Central Index Key | '0001478950 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 48,172,773 |
Excel Trust, L.P. | ' | ' |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'EXCEL TRUST, L.P. | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Property: | ' | ' | ||
Land | $355,509 | $320,289 | ||
Buildings | 620,840 | 564,352 | ||
Site improvements | 60,459 | 51,875 | ||
Tenant improvements | 52,254 | 42,903 | ||
Construction in progress | 3,297 | 1,709 | ||
Less accumulated depreciation | -54,409 | -36,765 | ||
Property, net | 1,037,950 | 944,363 | ||
Cash and cash equivalents | 3,483 | 5,596 | ||
Restricted cash | 41,139 | 5,657 | ||
Tenant receivables, net | 3,500 | 5,376 | ||
Lease intangibles, net | 80,273 | 85,646 | ||
Deferred rent receivable | 8,462 | 5,983 | ||
Other assets | 18,944 | 17,618 | ||
Investment in unconsolidated entities | 8,371 | 9,015 | ||
Total assets | 1,202,122 | [1] | 1,079,254 | [1] |
Liabilities: | ' | ' | ||
Mortgages payable, net | 308,365 | 333,935 | ||
Notes payable | 193,500 | 75,000 | ||
Accounts payable and other liabilities | 25,893 | 25,319 | ||
Lease intangibles, net | 27,884 | 26,455 | ||
Dividends/distributions payable | 10,684 | 9,773 | ||
Total liabilities | 566,326 | [2] | 470,482 | [2] |
Commitments and contingencies | ' | ' | ||
Stockholders' equity | ' | ' | ||
Common stock, $.01 par value, 200,000,000 shares authorized; 48,172,773 and 44,905,683 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 480 | 448 | ||
Additional paid-in capital | 469,034 | 459,151 | ||
Retained Earnings (cumulative deficit) | 15,732 | -1,414 | ||
Stockholders Equity Before Accumulated Other Comprehensive Loss | 621,669 | 594,608 | ||
Accumulated other comprehensive loss | -107 | -572 | ||
Total stockholders' equity | 621,562 | 594,036 | ||
Non-controlling interests | 14,234 | 14,736 | ||
Total equity | 635,796 | 608,772 | ||
Partners' capital: | ' | ' | ||
Accumulated other comprehensive loss | -107 | -572 | ||
Non-controlling interests | 14,234 | 14,736 | ||
Total liabilities and equity | 1,202,122 | 1,079,254 | ||
7.00% Series A cumulative convertible perpetual preferred stock | ' | ' | ||
Stockholders' equity | ' | ' | ||
Preferred Stock | 47,703 | 47,703 | ||
8.125% Series B cumulative redeemable preferred stock | ' | ' | ||
Stockholders' equity | ' | ' | ||
Preferred Stock | 88,720 | 88,720 | ||
Excel Trust, L.P. | ' | ' | ||
Property: | ' | ' | ||
Land | 355,509 | 320,289 | ||
Buildings | 620,840 | 564,352 | ||
Site improvements | 60,459 | 51,875 | ||
Tenant improvements | 52,254 | 42,903 | ||
Construction in progress | 3,297 | 1,709 | ||
Less accumulated depreciation | -54,409 | -36,765 | ||
Property, net | 1,037,950 | 944,363 | ||
Cash and cash equivalents | 3,483 | 5,596 | ||
Restricted cash | 41,139 | 5,657 | ||
Tenant receivables, net | 3,500 | 5,376 | ||
Lease intangibles, net | 80,273 | 85,646 | ||
Deferred rent receivable | 8,462 | 5,983 | ||
Other assets | 18,944 | 17,618 | ||
Investment in unconsolidated entities | 8,371 | 9,015 | ||
Total assets | 1,202,122 | [3] | 1,079,254 | [3] |
Liabilities: | ' | ' | ||
Mortgages payable, net | 308,365 | 333,935 | ||
Notes payable | 193,500 | 75,000 | ||
Accounts payable and other liabilities | 25,893 | 25,319 | ||
Lease intangibles, net | 27,884 | 26,455 | ||
Dividends/distributions payable | 10,684 | 9,773 | ||
Total liabilities | 566,326 | [4] | 470,482 | [4] |
Commitments and contingencies | ' | ' | ||
Stockholders' equity | ' | ' | ||
Accumulated other comprehensive loss | -144 | -620 | ||
Non-controlling interests | 1,728 | 1,845 | ||
Partners' capital: | ' | ' | ||
Limited partners' capital | 4,893 | 5,512 | ||
General partner's capital | 492,896 | 465,612 | ||
Partners Capital Excluding Accumulated Other Comprehensive Income Loss | 634,212 | 607,547 | ||
Accumulated other comprehensive loss | -144 | -620 | ||
Total partners' capital | 634,068 | 606,927 | ||
Non-controlling interests | 1,728 | 1,845 | ||
Total capital | 635,796 | 608,772 | ||
Total liabilities and capital | 1,202,122 | 1,079,254 | ||
Excel Trust, L.P. | 7.0% Series A cumulative convertible perpetual preferred units | ' | ' | ||
Partners' capital: | ' | ' | ||
Preferred units | 47,703 | 47,703 | ||
Excel Trust, L.P. | 8.125% Series B cumulative redeemable preferred units | ' | ' | ||
Partners' capital: | ' | ' | ||
Preferred units | $88,720 | $88,720 | ||
[1] | Excel Trust, Inc.'s consolidated total assets at September 30, 2013 and December 31, 2012 include $15,596 and $15,871, respectively, of assets (primarily real estate assets) of a variable interest entity ("VIE") that can only be used to settle the liabilities of that VIE. | |||
[2] | Excel Trust, Inc.'s consolidated total liabilities at September 30, 2013 and December 31, 2012 include $185 and $154 of accounts payable and other liabilities of a VIE, respectively, that do not have recourse to Excel Trust, Inc. | |||
[3] | Excel Trust, L.P.'s consolidated total assets at September 30, 2013 and December 31, 2012 include $15,596 and $15,871, respectively, of assets (primarily real estate assets) of a VIE that can only be used to settle the liabilities of that VIE. | |||
[4] | Excel Trust, L.P.'s consolidated total liabilities at September 30, 2013 and December 31, 2012 include $185 and $154 of accounts payable and other liabilities of a VIE, respectively, that do not have recourse to Excel Trust, L.P. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, except Share data, unless otherwise specified | ||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ||
Common stock, par value | $0.01 | $0.01 | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 | ||
Common stock, shares issued | 48,172,773 | 44,905,683 | ||
Common stock, shares outstanding | 48,172,773 | 44,905,683 | ||
Total Asset | $1,202,122 | [1] | $1,079,254 | [1] |
Total Liabilities | 566,326 | [2] | 470,482 | [2] |
7.00% Series A cumulative convertible perpetual preferred stock | ' | ' | ||
Preferred stock dividend rate percentage | 7.00% | 7.00% | ||
Liquidation preference | 50,000 | 50,000 | ||
Liquidation preference, per share | $25 | $25 | ||
Preferred stock, shares issued | 2,000,000 | 2,000,000 | ||
Preferred stock, shares outstanding | 2,000,000 | 2,000,000 | ||
8.125% Series B cumulative redeemable preferred stock | ' | ' | ||
Preferred stock dividend rate percentage | 8.13% | 8.13% | ||
Liquidation preference | 92,000 | 92,000 | ||
Liquidation preference, per share | $25 | $25 | ||
Preferred stock, shares issued | 3,680,000 | 3,680,000 | ||
Preferred stock, shares outstanding | 3,680,000 | 3,680,000 | ||
Variable Interest Entities | ' | ' | ||
Total Asset | 15,596 | 15,871 | ||
Variable Interest Entities | Accounts Payable And Other Liabilities | ' | ' | ||
Total Liabilities | 185 | 154 | ||
Excel Trust, L.P. | ' | ' | ||
Total Asset | 1,202,122 | [3] | 1,079,254 | [3] |
Total Liabilities | 566,326 | [4] | 470,482 | [4] |
Preferred units, units authorized | 50,000,000 | 50,000,000 | ||
Limited partners' capital, units issued | 1,225,115 | 1,245,019 | ||
Limited partners' capital, units outstanding | 1,225,115 | 1,245,019 | ||
General partner's capital, units issued | 48,172,773 | 44,905,683 | ||
General partner's capital, units outstanding | 48,172,773 | 44,905,683 | ||
Excel Trust, L.P. | 7.0% Series A cumulative convertible perpetual preferred units | ' | ' | ||
Preferred stock dividend rate percentage | 7.00% | 7.00% | ||
Liquidation preference | 50,000 | 50,000 | ||
Liquidation preference, per unit | 25 | 25 | ||
Preferred units, units issued | 2,000,000 | 2,000,000 | ||
Preferred units, units outstanding | 2,000,000 | 2,000,000 | ||
Excel Trust, L.P. | 8.125% Series B cumulative redeemable preferred units | ' | ' | ||
Preferred stock dividend rate percentage | 8.13% | 8.13% | ||
Liquidation preference | 92,000 | 92,000 | ||
Liquidation preference, per unit | 25 | 25 | ||
Preferred units, units issued | 3,680,000 | 3,680,000 | ||
Preferred units, units outstanding | 3,680,000 | 3,680,000 | ||
Excel Trust, L.P. | Variable Interest Entities | ' | ' | ||
Total Asset | 15,596 | 15,871 | ||
Excel Trust, L.P. | Variable Interest Entities | Accounts Payable And Other Liabilities | ' | ' | ||
Total Liabilities | $185 | $154 | ||
[1] | Excel Trust, Inc.'s consolidated total assets at September 30, 2013 and December 31, 2012 include $15,596 and $15,871, respectively, of assets (primarily real estate assets) of a variable interest entity ("VIE") that can only be used to settle the liabilities of that VIE. | |||
[2] | Excel Trust, Inc.'s consolidated total liabilities at September 30, 2013 and December 31, 2012 include $185 and $154 of accounts payable and other liabilities of a VIE, respectively, that do not have recourse to Excel Trust, Inc. | |||
[3] | Excel Trust, L.P.'s consolidated total assets at September 30, 2013 and December 31, 2012 include $15,596 and $15,871, respectively, of assets (primarily real estate assets) of a VIE that can only be used to settle the liabilities of that VIE. | |||
[4] | Excel Trust, L.P.'s consolidated total liabilities at September 30, 2013 and December 31, 2012 include $185 and $154 of accounts payable and other liabilities of a VIE, respectively, that do not have recourse to Excel Trust, L.P. |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations And Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Rental revenue | $23,556 | $16,800 | $67,685 | $48,800 |
Tenant recoveries | 5,022 | 4,000 | 14,099 | 10,297 |
Other income | 353 | 285 | 954 | 972 |
Total revenues | 28,931 | 21,085 | 82,738 | 60,069 |
Expenses: | ' | ' | ' | ' |
Maintenance and repairs | 1,821 | 1,411 | 5,239 | 4,020 |
Real estate taxes | 3,354 | 2,521 | 9,312 | 6,929 |
Management fees | 698 | 181 | 1,331 | 539 |
Other operating expenses | 1,845 | 977 | 4,707 | 2,735 |
Change in fair value of contingent consideration | -10 | -121 | -1,568 | -121 |
General and administrative | 3,399 | 3,318 | 10,536 | 10,155 |
Depreciation and amortization | 11,637 | 8,321 | 34,613 | 24,488 |
Total expenses | 22,744 | 16,608 | 64,170 | 48,745 |
Operating income | 6,187 | 4,477 | 18,568 | 11,324 |
Interest expense | -4,728 | -3,939 | -13,751 | -11,149 |
Interest income | 49 | 19 | 146 | 125 |
Loss from equity in unconsolidated entities | 12 | -158 | -13 | -158 |
Changes in fair value of financial instruments and gain on OP unit redemption | ' | 61 | 230 | 1,112 |
Income from continuing operations | 1,520 | 460 | 5,180 | 1,254 |
Income from discontinued operations before gain on sale of real estate assets | 345 | 43 | 481 | 39 |
Gain on sale of real estate assets | 11,974 | ' | 11,974 | ' |
Income from discontinued operations | 12,319 | 43 | 12,455 | 39 |
Net income | 13,839 | 503 | 17,635 | 1,293 |
Net (income) loss attributable to non-controlling interests | -356 | -2 | -489 | 14 |
Net income attributable to Parent | 13,483 | 501 | 17,146 | 1,307 |
Preferred stock dividends | -2,744 | -2,744 | -8,232 | -7,609 |
Net income (loss) attributable to the common stockholders | 10,739 | -2,243 | 8,914 | -6,302 |
Loss from continuing operations per share attributable to the common stockholders - basic and diluted | ($0.03) | ($0.07) | ($0.08) | ($0.21) |
Net income (loss) per share attributable to the common stockholders - basic and diluted | $0.22 | ($0.07) | $0.18 | ($0.21) |
Weighted-average common shares outstanding - basic and diluted | 47,496,811 | 33,293,772 | 46,674,386 | 32,616,052 |
Dividends declared per common share | $0.17 | $0.16 | $0.51 | $0.49 |
Net income | 13,839 | 503 | 17,635 | 1,293 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Change in unrealized gain on investment in equity securities | ' | -30 | ' | 73 |
Gain on sale of equity securities (reclassification adjustment) | ' | -1 | ' | -12 |
Change in unrealized loss on interest rate swaps | 163 | 72 | 476 | 180 |
Comprehensive income | 14,002 | 544 | 18,111 | 1,534 |
Comprehensive (income) loss attributable to non-controlling interests | -359 | -3 | -500 | 5 |
Comprehensive income attributable to Excel Trust, Inc. | 13,643 | 541 | 17,611 | 1,539 |
Excel Trust, L.P. | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Rental revenue | 23,556 | 16,800 | 67,685 | 48,800 |
Tenant recoveries | 5,022 | 4,000 | 14,099 | 10,297 |
Other income | 353 | 285 | 954 | 972 |
Total revenues | 28,931 | 21,085 | 82,738 | 60,069 |
Expenses: | ' | ' | ' | ' |
Maintenance and repairs | 1,821 | 1,411 | 5,239 | 4,020 |
Real estate taxes | 3,354 | 2,521 | 9,312 | 6,929 |
Management fees | 698 | 181 | 1,331 | 539 |
Other operating expenses | 1,845 | 977 | 4,707 | 2,735 |
Change in fair value of contingent consideration | -10 | -121 | -1,568 | -121 |
General and administrative | 3,399 | 3,318 | 10,536 | 10,155 |
Depreciation and amortization | 11,637 | 8,321 | 34,613 | 24,488 |
Total expenses | 22,744 | 16,608 | 64,170 | 48,745 |
Operating income | 6,187 | 4,477 | 18,568 | 11,324 |
Interest expense | -4,728 | -3,939 | -13,751 | -11,149 |
Interest income | 49 | 19 | 146 | 125 |
Loss from equity in unconsolidated entities | 12 | -158 | -13 | -158 |
Changes in fair value of financial instruments and gain on OP unit redemption | ' | 61 | 230 | 1,112 |
Income from continuing operations | 1,520 | 460 | 5,180 | 1,254 |
Income from discontinued operations before gain on sale of real estate assets | 345 | 43 | 481 | 39 |
Gain on sale of real estate assets | 11,974 | ' | 11,974 | ' |
Income from discontinued operations | 12,319 | 43 | 12,455 | 39 |
Net income | 13,839 | 503 | 17,635 | 1,293 |
Net (income) loss attributable to non-controlling interests | -77 | -75 | -249 | -216 |
Net income attributable to Parent | 13,762 | 428 | 17,386 | 1,077 |
Net income attributable to Parent | 13,762 | 428 | 17,386 | 1,077 |
Preferred operating partnership unit distributions | -2,744 | -2,744 | -8,232 | -7,609 |
Net income (loss) attributable to the unitholders | 11,018 | -2,316 | 9,154 | -6,532 |
Loss from continuing operations per unit attributable to the unitholders - basic and diluted | ($0.03) | ($0.07) | ($0.08) | ($0.21) |
Net income (loss) per unit attributable to the unitholders - basic and diluted | $0.22 | ($0.07) | $0.18 | ($0.21) |
Weighted-average common operating partnership units outstanding - basic and diluted | 48,721,926 | 34,350,666 | 47,904,824 | 33,833,784 |
Dividends declared per common operating partnership unit | $0.17 | $0.16 | $0.51 | $0.49 |
Net income | 13,839 | 503 | 17,635 | 1,293 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Change in unrealized gain on investment in equity securities | ' | -30 | ' | 73 |
Gain on sale of equity securities (reclassification adjustment) | ' | -1 | ' | -12 |
Change in unrealized loss on interest rate swaps | 163 | 72 | 476 | 180 |
Comprehensive income attributable to Excel Trust, Inc. | $14,002 | $544 | $18,111 | $1,534 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Equity (USD $) | Total | Common Stock Subject to Mandatory Redemption | Preferred Stock | Preferred Stock | Common Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Stockholders' Equity, Total | Stockholders' Equity, Total | Noncontrolling Interest | Noncontrolling Interest |
In Thousands, except Share data | 7.00% Series A cumulative convertible perpetual preferred stock | 8.125% Series B cumulative redeemable preferred stock | Common Stock Subject to Mandatory Redemption | Common Stock Subject to Mandatory Redemption | Common Stock Subject to Mandatory Redemption | Common Stock Subject to Mandatory Redemption | ||||||||
Balance at Dec. 31, 2011 | $380,986 | ' | $47,703 | ' | $302 | ' | $319,875 | ' | ($3,277) | ($811) | $363,792 | ' | $17,194 | ' |
Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | ' | 30,289,813 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of preferred stock | 88,720 | ' | ' | 88,720 | ' | ' | ' | ' | ' | ' | 88,720 | ' | ' | ' |
Net proceeds from sale of common stock (in shares) | ' | ' | ' | ' | 1,082,051 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock | 12,587 | ' | ' | ' | 11 | ' | 12,576 | ' | ' | ' | 12,587 | ' | ' | ' |
Issuance of restricted common stock awards | ' | ' | ' | ' | 18,356 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for acquisition (in shares) | ' | ' | ' | ' | 3,230,769 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of OP units for common stock and cash (in shares) | ' | ' | ' | ' | ' | 270,112 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for acquisition | 39,108 | ' | ' | ' | 32 | ' | 39,076 | ' | ' | ' | 39,108 | ' | ' | ' |
Redemption of OP units for common stock and cash | ' | -1,116 | ' | ' | ' | 3 | -3,200 | 3,196 | ' | ' | ' | 3,199 | ' | -4,315 |
Noncash amortization of share-based compensation | 2,406 | ' | ' | ' | ' | ' | 2,406 | ' | ' | ' | 2,406 | ' | ' | ' |
Common stock dividends | -16,619 | ' | ' | ' | ' | ' | -16,619 | ' | ' | ' | -16,619 | ' | ' | ' |
Distributions to non-controlling interests | -889 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -889 | ' |
Net income | 1,293 | ' | ' | ' | ' | ' | ' | ' | 1,307 | ' | 1,307 | ' | -14 | ' |
Preferred stock dividends | -7,609 | ' | ' | ' | ' | ' | -7,609 | ' | ' | ' | -7,609 | ' | ' | ' |
Change in unrealized gain on investment in equity securities | 73 | ' | ' | ' | ' | ' | ' | ' | ' | 70 | 70 | ' | 3 | ' |
Change in unrealized loss on interest rate swaps | 180 | ' | ' | ' | ' | ' | ' | ' | ' | 174 | 174 | ' | 6 | ' |
Adjustment for non-controlling interests | ' | ' | ' | ' | ' | ' | -619 | ' | ' | ' | -619 | ' | 619 | ' |
Balance at Sep. 30, 2012 | 499,120 | ' | 47,703 | 88,720 | 348 | ' | 352,282 | ' | -1,970 | -567 | 486,516 | ' | 12,604 | ' |
Balance (in shares) at Sep. 30, 2012 | ' | ' | ' | ' | 34,891,101 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 608,772 | ' | 47,703 | 88,720 | 448 | ' | 459,151 | ' | -1,414 | -572 | 594,036 | ' | 14,736 | ' |
Balance (in shares) at Dec. 31, 2012 | ' | ' | ' | ' | 44,905,683 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock (in shares) | ' | ' | ' | ' | 3,211,928 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock | 40,727 | ' | ' | ' | 32 | ' | 40,695 | ' | ' | ' | 40,727 | ' | ' | ' |
Issuance of restricted common stock awards | 1,133,130 | ' | ' | ' | 33,088 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of OP units for common stock and cash (in shares) | ' | ' | ' | ' | ' | 22,074 | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of OP units for common stock and cash | ' | 44 | ' | ' | ' | ' | -279 | 279 | ' | ' | ' | 279 | ' | -235 |
Noncash amortization of share-based compensation | 1,713 | ' | ' | ' | ' | ' | 1,713 | ' | ' | ' | 1,713 | ' | ' | ' |
Common stock dividends | -24,349 | ' | ' | ' | ' | ' | -24,349 | ' | ' | ' | -24,349 | ' | ' | ' |
Distributions to non-controlling interests | -990 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -990 | ' |
Net income | 17,635 | ' | ' | ' | ' | ' | ' | ' | 17,146 | ' | 17,146 | ' | 489 | ' |
Preferred stock dividends | -8,232 | ' | ' | ' | ' | ' | -8,232 | ' | ' | ' | -8,232 | ' | ' | ' |
Change in unrealized loss on interest rate swaps | 476 | ' | ' | ' | ' | ' | ' | ' | ' | 465 | 465 | ' | 11 | ' |
Adjustment for non-controlling interests | ' | ' | ' | ' | ' | ' | -223 | ' | ' | ' | -223 | ' | 223 | ' |
Balance at Sep. 30, 2013 | $635,796 | ' | $47,703 | $88,720 | $480 | ' | $469,034 | ' | $15,732 | ($107) | $621,562 | ' | $14,234 | ' |
Balance (in shares) at Sep. 30, 2013 | ' | ' | ' | ' | 48,172,773 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $17,635 | $1,293 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 35,306 | 25,432 |
Changes in fair value of financial instruments and gain on OP unit redemption | -230 | -1,112 |
Change in fair value of contingent consideration | -1,568 | -121 |
Gain on sale of real estate assets | -11,974 | ' |
Income from equity in unconsolidated entities | 13 | 158 |
Deferred rent receivable | -2,913 | -2,021 |
Amortization of above- and below-market leases | 205 | -12 |
Amortization of deferred balances | 1,127 | 1,461 |
Bad debt expense | 959 | 495 |
Share-based compensation expense | 1,713 | 2,406 |
Distributions from unconsolidated entities | 518 | ' |
Change in assets and liabilities (net of the effect of acquisitions): | ' | ' |
Tenant and other receivables | 1,295 | -517 |
Other assets | -1,289 | -1,196 |
Accounts payable and other liabilities | 2,198 | 2,562 |
Net cash provided by operating activities | 42,995 | 28,828 |
Cash flows from investing activities: | ' | ' |
Acquisitions of property | -121,175 | -99,306 |
Development of property and property improvements | -16,215 | -4,791 |
Proceeds from contribution of real estate assets | ' | 21,317 |
Investments in unconsolidated entities | -106 | ' |
Return of capital from unconsolidated entities | 139 | ' |
Disposition of real estate assets | 4,355 | ' |
Receipt of master lease payments | 384 | ' |
Capitalized leasing costs | -1,538 | -1,397 |
Advance of note receivable | ' | -750 |
Collection of mortgage loan receivable | ' | 2,000 |
Purchases of equity securities | ' | -125 |
Proceeds from sale of equity securities | ' | 4,241 |
Restricted cash | -3,439 | -1,585 |
Net cash used in investing activities | -137,595 | -80,396 |
Cash flows from financing activities: | ' | ' |
Issuance of common stock | 41,098 | 12,587 |
Issuance of preferred stock | ' | 89,102 |
Preferred stock offering costs | ' | -382 |
OP unit redemptions | ' | -1,915 |
Payments on mortgages payable | -33,771 | -3,326 |
Proceeds from mortgages payable | ' | 13,713 |
Payments on notes payable | -40,500 | -71,000 |
Proceeds from notes payable | 159,000 | 50,000 |
Payments of contingent consideration | ' | -1,613 |
Distribution to non-controlling interests | -971 | -946 |
Preferred stock dividends | -8,232 | -6,051 |
Common stock dividends | -23,457 | -15,796 |
Deferred financing costs | -680 | -2,060 |
Net cash provided by financing activities | 92,487 | 62,313 |
Net (decrease) increase | -2,113 | 10,745 |
Cash and cash equivalents, beginning of period | 5,596 | 5,292 |
Cash and cash equivalents, end of period | 3,483 | 16,037 |
Supplemental cash flow information: | ' | ' |
Cash payments for interest, net of amounts capitalized of $50 and $110 | 12,114 | 9,185 |
Non-cash investing and financing activity: | ' | ' |
Acquisition of real estate for common OP units | ' | 39,108 |
Assumption of net mortgage debt in connection with property acquisitions | 8,204 | 29,670 |
Assets received in connection with property acquisitions | ' | 3,784 |
Liabilities assumed in connection with property acquisitions | 140 | 1,445 |
Dispositions of real estate assets classified as a 1031 exchange (including gain on sale of real estate assets of $10,845) | 31,104 | ' |
Common stock dividends payable | 8,189 | 5,669 |
Preferred stock dividends payable | 2,287 | 2,287 |
OP unit distributions payable | 208 | 169 |
Accrued additions to operating and development properties | 3,356 | 948 |
Change in unrealized loss on interest rate swaps | 476 | 180 |
Change in unrealized gain on marketable securities | ' | 73 |
OP unit redemptions | 279 | 3,199 |
Investment in unconsolidated entities | ' | 1,348 |
Reclassification of offering costs | 364 | ' |
Reclassification of real estate to held for sale | 3,226 | ' |
Excel Trust, L.P. | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 17,635 | 1,293 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 35,306 | 25,432 |
Changes in fair value of financial instruments and gain on OP unit redemption | -230 | -1,112 |
Change in fair value of contingent consideration | -1,568 | -121 |
Gain on sale of real estate assets | -11,974 | ' |
Income from equity in unconsolidated entities | 13 | 158 |
Deferred rent receivable | -2,913 | -2,021 |
Amortization of above- and below-market leases | 205 | -12 |
Amortization of deferred balances | 1,127 | 1,461 |
Bad debt expense | 959 | 495 |
Share-based compensation expense | 1,713 | 2,406 |
Distributions from unconsolidated entities | 518 | ' |
Change in assets and liabilities (net of the effect of acquisitions): | ' | ' |
Tenant and other receivables | 1,295 | -517 |
Other assets | -1,289 | -1,196 |
Accounts payable and other liabilities | 2,198 | 2,562 |
Net cash provided by operating activities | 42,995 | 28,828 |
Cash flows from investing activities: | ' | ' |
Acquisitions of property | -121,175 | -99,306 |
Development of property and property improvements | -16,215 | -4,791 |
Proceeds from contribution of real estate assets | ' | 21,317 |
Investments in unconsolidated entities | -106 | ' |
Return of capital from unconsolidated entities | 139 | ' |
Disposition of real estate assets | 4,355 | ' |
Receipt of master lease payments | 384 | ' |
Capitalized leasing costs | -1,538 | -1,397 |
Advance of note receivable | ' | -750 |
Collection of mortgage loan receivable | ' | 2,000 |
Purchases of equity securities | ' | -125 |
Proceeds from sale of equity securities | ' | 4,241 |
Restricted cash | -3,439 | -1,585 |
Net cash used in investing activities | -137,595 | -80,396 |
Cash flows from financing activities: | ' | ' |
Issuance of common OP units | 41,098 | 12,587 |
Issuance of preferred OP units | ' | 89,102 |
Preferred stock offering costs | ' | -382 |
OP unit redemptions | ' | -1,915 |
Payments on mortgages payable | -33,771 | -3,326 |
Proceeds from mortgages payable | ' | 13,713 |
Payments on notes payable | -40,500 | -71,000 |
Proceeds from notes payable | 159,000 | 50,000 |
Payments of contingent consideration | ' | -1,613 |
Distribution to non-controlling interests | -366 | -946 |
Deferred financing costs | -680 | -2,060 |
Net cash provided by financing activities | 92,487 | 62,313 |
Net (decrease) increase | -2,113 | 10,745 |
Cash and cash equivalents, beginning of period | 5,596 | 5,292 |
Cash and cash equivalents, end of period | 3,483 | 16,037 |
Supplemental cash flow information: | ' | ' |
Cash payments for interest, net of amounts capitalized of $50 and $110 | 12,114 | 9,185 |
Non-cash investing and financing activity: | ' | ' |
Acquisition of real estate for common OP units | ' | 39,108 |
Assumption of net mortgage debt in connection with property acquisitions | 8,204 | 29,670 |
Assets received in connection with property acquisitions | ' | 3,784 |
Liabilities assumed in connection with property acquisitions | 140 | 1,445 |
Dispositions of real estate assets classified as a 1031 exchange (including gain on sale of real estate assets of $10,845) | 31,104 | ' |
Accrued additions to operating and development properties | 3,356 | 948 |
Change in unrealized loss on interest rate swaps | 476 | 180 |
Change in unrealized gain on marketable securities | ' | 73 |
OP unit redemptions | 279 | 3,199 |
Investment in unconsolidated entities | ' | 1,348 |
Reclassification of offering costs | 364 | ' |
Reclassification of real estate to held for sale | 3,226 | ' |
Excel Trust, L.P. | Preferred Stock | ' | ' |
Cash flows from financing activities: | ' | ' |
OP unit distributions | -8,232 | -6,051 |
Non-cash investing and financing activity: | ' | ' |
OP unit distributions payable | 2,287 | 2,287 |
Excel Trust, L.P. | Common Stock | ' | ' |
Cash flows from financing activities: | ' | ' |
OP unit distributions | -24,062 | -15,796 |
Non-cash investing and financing activity: | ' | ' |
OP unit distributions payable | $8,397 | $5,838 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Payments For Interest Amounts Capitalized | $50 | $110 |
1031 exchange gain on sale of real estate | 10,854 | ' |
Excel Trust, L.P. | ' | ' |
Cash Payments For Interest Amounts Capitalized | 50 | 110 |
1031 exchange gain on sale of real estate | $10,845 | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Capital (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net proceeds from sale of common stock | ' | ' | $40,727 | $12,587 |
Net income (loss) | 13,839 | 503 | 17,635 | 1,293 |
Change in unrealized gain on investment in equity securities | ' | -30 | ' | 73 |
Change in unrealized loss on interest rate swaps | 163 | 72 | 476 | 180 |
Excel Trust, L.P. | ' | ' | ' | ' |
Beginning balance | ' | ' | 608,772 | 380,986 |
Net proceeds from sale of common operating partnership units | ' | ' | 40,727 | 88,720 |
Net proceeds from sale of common stock | ' | ' | ' | 12,587 |
Issuance of restricted common operating partnership unit awards | ' | ' | ' | ' |
Redemption of common operating partnership units | ' | ' | 44 | -1,116 |
Issuance of common operating partnership units for acquisition | ' | ' | ' | 39,108 |
Noncash amortization of share-based compensation | ' | ' | 1,713 | 2,406 |
OP unit distributions | ' | ' | -33,571 | -25,117 |
Net income (loss) | 13,839 | 503 | 17,635 | 1,293 |
Change in unrealized gain on investment in equity securities | ' | -30 | ' | 73 |
Change in unrealized loss on interest rate swaps | 163 | 72 | 476 | 180 |
Ending balance | 635,796 | 499,120 | 635,796 | 499,120 |
Excel Trust, L.P. | Preferred Operating Partnership Units | 7.0% Series A cumulative convertible perpetual preferred units | ' | ' | ' | ' |
Beginning balance | ' | ' | 47,703 | 47,703 |
Issuance of restricted common operating partnership unit awards | ' | ' | ' | ' |
OP unit distributions | ' | ' | -2,625 | -2,625 |
Net income (loss) | ' | ' | 2,625 | 2,625 |
Ending balance | 47,703 | 47,703 | 47,703 | 47,703 |
Excel Trust, L.P. | Preferred Operating Partnership Units | 8.125% Series B cumulative redeemable preferred units | ' | ' | ' | ' |
Beginning balance | ' | ' | 88,720 | ' |
Net proceeds from sale of common operating partnership units | ' | ' | ' | 88,720 |
Issuance of restricted common operating partnership unit awards | ' | ' | ' | ' |
OP unit distributions | ' | ' | -5,607 | -4,984 |
Net income (loss) | ' | ' | 5,607 | 4,984 |
Ending balance | 88,720 | 88,720 | 88,720 | 88,720 |
Excel Trust, L.P. | Limited Partners | ' | ' | ' | ' |
Beginning balance | ' | ' | 5,512 | 8,230 |
Beginning balance (in units) | ' | ' | 1,245,019 | 1,405,405 |
Issuance of restricted common operating partnership unit awards | ' | ' | ' | ' |
Redemption of common operating partnership units | ' | ' | -235 | -4,315 |
Redemption of common operating partnership units ( in units) | ' | ' | -19,904 | -365,053 |
OP unit distributions | ' | ' | -624 | -558 |
Net income (loss) | ' | ' | 240 | -230 |
Ending balance | 4,893 | 3,127 | 4,893 | 3,127 |
Ending balance (in units) | 1,225,115 | 1,040,352 | 1,225,115 | 1,040,352 |
Excel Trust, L.P. | General Partner's Capital | ' | ' | ' | ' |
Beginning balance | ' | ' | 465,612 | 323,914 |
Beginning balance (in units) | ' | ' | 44,905,683 | 30,289,813 |
Net proceeds from sale of common operating partnership units | ' | ' | 40,727 | ' |
Net proceeds from sale of common operating partnership units (in units) | ' | ' | 3,211,928 | ' |
Net proceeds from sale of common stock | ' | ' | ' | 12,587 |
Net proceeds from sale of common stock (in shares) | ' | ' | ' | 1,082,051 |
Issuance of restricted common operating partnership unit awards | ' | ' | ' | ' |
Issuance of restricted common operating partnership unit awards ( in units) | ' | ' | 33,088 | 18,356 |
Redemption of common operating partnership units | ' | ' | 279 | 3,199 |
Redemption of common operating partnership units ( in units) | ' | ' | 22,074 | 270,112 |
Issuance of common operating partnership units for acquisition | ' | ' | ' | 39,108 |
Issuance of common operating partnership units for acquisition (in units) | ' | ' | ' | 3,230,769 |
Noncash amortization of share-based compensation | ' | ' | 1,713 | 2,406 |
OP unit distributions | ' | ' | -24,349 | -16,619 |
Net income (loss) | ' | ' | 8,914 | -6,302 |
Ending balance | 492,896 | 358,293 | 492,896 | 358,293 |
Ending balance (in units) | 48,172,773 | 34,891,101 | 48,172,773 | 34,891,101 |
Excel Trust, L.P. | Accumulated Other Comprehensive Loss | ' | ' | ' | ' |
Beginning balance | ' | ' | -620 | -872 |
Issuance of restricted common operating partnership unit awards | ' | ' | ' | ' |
Change in unrealized gain on investment in equity securities | ' | ' | ' | 73 |
Change in unrealized loss on interest rate swaps | ' | ' | 476 | 180 |
Ending balance | -144 | -619 | -144 | -619 |
Excel Trust, L.P. | Total Partners' Capital | ' | ' | ' | ' |
Beginning balance | ' | ' | 606,927 | 378,975 |
Net proceeds from sale of common operating partnership units | ' | ' | 40,727 | 88,720 |
Net proceeds from sale of common stock | ' | ' | ' | 12,587 |
Issuance of restricted common operating partnership unit awards | ' | ' | ' | ' |
Redemption of common operating partnership units | ' | ' | 44 | -1,116 |
Issuance of common operating partnership units for acquisition | ' | ' | ' | 39,108 |
Noncash amortization of share-based compensation | ' | ' | 1,713 | 2,406 |
OP unit distributions | ' | ' | -33,205 | -24,786 |
Net income (loss) | ' | ' | 17,386 | 1,077 |
Change in unrealized gain on investment in equity securities | ' | ' | ' | 73 |
Change in unrealized loss on interest rate swaps | ' | ' | 476 | 180 |
Ending balance | 634,068 | 497,224 | 634,068 | 497,224 |
Excel Trust, L.P. | Noncontrolling Interest | ' | ' | ' | ' |
Beginning balance | ' | ' | 1,845 | 2,011 |
Issuance of restricted common operating partnership unit awards | ' | ' | ' | ' |
OP unit distributions | ' | ' | -366 | -331 |
Net income (loss) | ' | ' | 249 | 216 |
Ending balance | $1,728 | $1,896 | $1,728 | $1,896 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2013 | |
Organization | ' |
1. Organization: | |
Excel Trust, Inc., a Maryland corporation (the “Parent Company”), is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing value oriented community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It conducts substantially all of its business through its subsidiary, Excel Trust, L.P., a Delaware limited partnership (the “Operating Partnership” and together with the Parent Company referred to as the “Company”). The Company seeks investment opportunities throughout the United States, but focuses on the Northeast, Northwest and Sunbelt regions. The Company generally leases anchor space to national and regional supermarket chains, big-box retailers and select national retailers that frequently offer necessity and value oriented items and generate regular consumer traffic. | |
The Parent Company is the sole general partner of the Operating Partnership and, as of September 30, 2013, owned a 97.5% interest in the Operating Partnership. The remaining 2.5% interest in the Operating Partnership is held by limited partners. Each partner’s percentage interest in the Operating Partnership is determined based on the number of common operating partnership units (“OP units”) owned as compared to total OP units (and potentially issuable OP units, as applicable) outstanding as of each period end and is used as the basis for the allocation of net income or loss to each partner. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||
Basis of Presentation: | |||||||||||||||||
The accompanying condensed consolidated financial statements of the Company include all the accounts of the Company and its subsidiaries. The financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements and have not been audited by independent registered public accountants. | |||||||||||||||||
The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto in the Parent Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and the Operating Partnership’s Registration Statement on Form 10. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements for the interim periods have been made. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents, for which cost approximates fair value, due to their short term maturities. | |||||||||||||||||
Restricted Cash: | |||||||||||||||||
Restricted cash is comprised of impound reserve accounts for property taxes, insurance, capital improvements and tenant improvements. The balance at September 30, 2013 also includes approximately $31.1 million of net proceeds from the disposition of the Grant Creek Town Center property on September 13, 2013 (see Note 15). The sale was classified as an exchange pursuant to section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”); therefore, the funds are restricted as to their usage. The Company subsequently utilized a portion of the funds to provide the purchase price for the acquisition of a retail center property located in San Diego, California on October 4, 2013 (see Note 20). | |||||||||||||||||
Accounts Payable and Other Liabilities: | |||||||||||||||||
Included in accounts payable and other liabilities are deferred rents in the amount of $3.5 million and $4.4 million at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||
Revenue Recognition: | |||||||||||||||||
The Company commences revenue recognition on its leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. In determining what constitutes the leased asset, the Company evaluates whether the Company or the lessee is the owner, for accounting purposes, of the tenant improvements. If the Company is the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If the Company concludes that it is not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives, which reduce revenue recognized on a straight-line basis over the remaining non-cancelable term of the respective lease. In these circumstances, the Company begins revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct improvements. The determination of who is the owner, for accounting purposes, of the tenant improvements is highly subjective and determines the nature of the leased asset and when revenue recognition under a lease begins. The Company considers a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include: | |||||||||||||||||
• | whether the lease stipulates how and on what a tenant improvement allowance may be spent; | ||||||||||||||||
• | whether the tenant or landlord retains legal title to the improvements; | ||||||||||||||||
• | the uniqueness of the improvements; | ||||||||||||||||
• | the expected economic life of the tenant improvements relative to the length of the lease; | ||||||||||||||||
• | the responsible party for construction cost overruns; and | ||||||||||||||||
• | who constructs or directs the construction of the improvements. | ||||||||||||||||
Minimum rental revenues are recognized on a straight-line basis over the terms of the related lease. The difference between the amount of cash rent due in a year and the amount recorded as rental income is referred to as the “straight-line rent adjustment.” Rental income increased by $937,000 and $632,000 in the three months ended September 30, 2013 and 2012, respectively, and $2.9 million and $2.0 million in the nine months ended September 30, 2013 and 2012, respectively, due to the straight-line rent adjustment. Percentage rent is recognized after tenant sales have exceeded defined thresholds (if applicable) and was $171,000 and $196,000 for the three months ended September 30, 2013 and 2012, respectively, and $741,000 and $557,000 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Estimated recoveries from certain tenants for their pro rata share of real estate taxes, insurance and other operating expenses are recognized as revenues in the period the applicable expenses are incurred or as specified in the leases. Other tenants pay a fixed rate and these tenant recoveries are recognized as revenue on a straight-line basis over the term of the related leases. | |||||||||||||||||
Property: | |||||||||||||||||
Costs incurred in connection with the development or construction of properties and improvements are capitalized. Capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes and related costs and other direct costs incurred during the period of development. The Company capitalizes costs on land and buildings under development until construction is substantially complete and the property is held available for occupancy. The determination of when a development project is substantially complete and when capitalization must cease involves a degree of judgment. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of landlord-owned tenant improvements or when the lessee takes possession of the unimproved space for construction of its own improvements, but no later than one year from cessation of major construction activity. The Company ceases capitalization on the portion substantially completed and occupied or held available for occupancy, and capitalizes only those costs associated with any remaining portion under construction. In March 2012, the Company reclassified the majority of construction in progress costs relating to two non-operating properties into the corresponding buildings, site improvements and tenant improvements financial statement line items upon substantial completion of development activities. | |||||||||||||||||
Maintenance and repairs expenses are charged to operations as incurred. Costs for major replacements and betterments, which include HVAC equipment, roofs, parking lots, etc., are capitalized and depreciated over their estimated useful lives. Gains and losses are recognized upon disposal or retirement of the related assets and are reflected in earnings. | |||||||||||||||||
Property is recorded at cost and is depreciated using the straight-line method over the estimated lives of the assets as follows: | |||||||||||||||||
Building and improvements | 15 to 40 years | ||||||||||||||||
Tenant improvements | Shorter of the useful lives or the terms of the related leases | ||||||||||||||||
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed: | |||||||||||||||||
The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. This assessment considers expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. Such factors include the tenants’ ability to perform their duties and pay rent under the terms of the leases. The determination of recoverability is made based upon the estimated undiscounted future net cash flows, excluding interest expense, expected to result from the long-lived asset’s use and eventual disposition. The Company’s evaluation as to whether impairment may exist, including estimates of future anticipated cash flows, are highly subjective and could differ materially from actual results in future periods. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flows analysis, with the carrying value of the related assets. Although the Company’s strategy is to hold its properties over a long-term period, if the strategy changes or market conditions dictate that the sale of properties at an earlier date would be preferable, a property may be classified as held for sale and an impairment loss may be recognized to reduce the property to the lower of the carrying amount or fair value less cost to sell. There was no impairment recorded for the nine months ended September 30, 2013 or 2012. | |||||||||||||||||
Investments in Partnerships and Limited Liability Companies: | |||||||||||||||||
The Company evaluates its investments in limited liability companies and partnerships to determine whether such entities may be a VIE and, if a VIE, whether the Company is the primary beneficiary. Generally, an entity is determined to be a VIE when either (1) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support provided by any parties or (2) as a group, the holders of the equity investment lack one or more of the essential characteristics of a controlling financial interest. The primary beneficiary is the entity that has both (1) the power to direct matters that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, the Company considers the form of ownership interest, voting interest, the size of the investment (including loans) and the rights of other investors to participate in policy making decisions, to replace or remove the manager and to liquidate or sell the entity. The obligation to absorb losses and the right to receive benefits when a reporting entity is affiliated with a VIE must be based on ownership, contractual, and/or other pecuniary interests in that VIE. | |||||||||||||||||
If the foregoing conditions do not apply, the Company considers whether a general partner or managing member controls a limited partnership or limited liability company. The general partner in a limited partnership or managing member in a limited liability company is presumed to control that limited partnership or limited liability company. The presumption may be overcome if the limited partners or members have either (1) the substantive ability to dissolve the limited partnership or limited liability company or otherwise remove the general partner or managing member without cause or (2) substantive participating rights, which provide the limited partners or members with the ability to effectively participate in significant decisions that would be expected to be made in the ordinary course of the limited partnership’s or limited liability company’s business and thereby preclude the general partner or managing member from exercising unilateral control over the partnership or company. If these criteria are not met and the Company is the general partner or the managing member, as applicable, the Company will consolidate the partnership or limited liability company. | |||||||||||||||||
Investments that are not consolidated, over which the Company exercises significant influence but does not control, are accounted for under the equity method of accounting. These investments are recorded initially at cost and subsequently adjusted for the Company’s portion of earnings or losses and for cash contributions and distributions. Under the equity method of accounting, the Company’s investment is reflected in the consolidated balance sheets and its share of net income or loss is included in the consolidated statements of operations and comprehensive income. | |||||||||||||||||
Share-Based Payments: | |||||||||||||||||
All share-based payments to employees are recognized in earnings based on their fair value on the date of grant. Through September 30, 2013, the Company has awarded only restricted stock awards under its incentive award plan, which are based on shares of the Parent Company’s common stock. The fair value of equity awards that include only service or performance vesting conditions is determined based on the closing market price of the underlying common stock on the date of grant. The fair value of equity awards that include one or more market vesting conditions is determined based on the use of a widely accepted valuation model. The fair value of equity grants is amortized to general and administrative expense ratably over the requisite service period for awards that include only service vesting conditions and utilizing a graded vesting method (an accelerated vesting method in which the majority of compensation expense is recognized in earlier periods) for awards that include one or more market vesting conditions, adjusted for anticipated forfeitures. | |||||||||||||||||
Purchase Accounting: | |||||||||||||||||
The Company, with the assistance of independent valuation specialists as needed, records the purchase price of acquired properties as tangible and identified intangible assets and liabilities based on their respective fair values. Tangible assets (building and land) are recorded based upon the Company’s determination of the value of the property as if it were vacant using discounted cash flow models similar to those used by independent appraisers. Factors considered include an estimate of carrying costs during the expected lease-up periods taking into account current market conditions and costs to execute similar leases. The fair value of land is derived from comparable sales of land within the same submarket and/or region. The fair value of buildings and improvements, tenant improvements, site improvements and leasing costs are based upon current market replacement costs and other relevant market rate information. Additionally, the purchase price of the applicable property is recorded as the above- or below-market value of in-place leases, the value of in-place leases and above- or below-market value of debt assumed, as applicable. | |||||||||||||||||
The value recorded as the above- or below-market component of the acquired in-place leases is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between: (1) the contractual amounts to be paid pursuant to the lease over its remaining term, and (2) the Company’s estimate of the amounts that would be paid using fair market rates at the time of acquisition over the remaining term of the lease. The amounts recorded as above-market leases are included in lease intangible assets, net in the Company’s accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term of the acquired leases with each property. The amounts recorded as below-market lease values are included in lease intangible liabilities, net in the Company’s accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term plus any below-market fixed price renewal options of the acquired leases with each property. | |||||||||||||||||
The value recorded as above- or below-market debt is determined based upon the present value of the difference between the cash flow stream of the assumed mortgage and the cash flow stream of a market rate mortgage. The amounts recorded as above- or below-market debt are included in mortgage payables, net in the Company’s accompanying condensed consolidated balance sheets and are amortized to interest expense over the remaining term of the assumed mortgage. | |||||||||||||||||
Tenant receivables: | |||||||||||||||||
Tenant receivables and deferred rent are carried net of the allowances for uncollectible current tenant receivables and deferred rent. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company maintains an allowance for deferred rent receivable arising from the straight-lining of rents. Such allowances are charged to bad debt expense which is included in other operating expenses on the accompanying condensed consolidated statement of operations. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees, current economic conditions and other relevant factors. At September 30, 2013 and December 31, 2012, the Company had $1.3 million and $719,000, respectively, in allowances for uncollectible accounts (including straight-line deferred rent receivables) as determined to be necessary to reduce receivables to the estimate of the amount recoverable. During the three months ended September 30, 2013 and 2012, $517,000 and $100,000, respectively, of receivables were charged to bad debt expense. During the nine months ended September 30, 2013 and 2012, $959,000 and $495,000, respectively, of receivables were charged to bad debt expense. | |||||||||||||||||
Non-controlling Interests: | |||||||||||||||||
Non-controlling interests on the consolidated balance sheets of the Parent Company relate to the OP units that are not owned by the Parent Company and the portion of consolidated joint ventures not owned by the Parent Company. The OP units not held by the Parent Company may be redeemed by the Parent Company at the holder’s option for cash. The Parent Company, at its option, may satisfy the redemption obligation with common stock on a one-for-one basis, which has been further evaluated to determine that permanent equity classification on the balance sheet is appropriate. | |||||||||||||||||
In October 2012, the Operating Partnership issued 411,184 OP units in connection with the Company’s acquisition of the West Broad Village property. During the three months ended March 31, 2013, a total of 19,904 OP units related to the Edwards Theatres acquisition were tendered to the Company for redemption, resulting in the issuance of 22,074 shares of common stock by the Parent Company (an equivalent number of OP units were issued by the Operating Partnership to the Parent Company). The OP units were redeemed for common stock on a one-for-one basis, with additional common stock provided as a result of the accompanying additional redemption obligation that guaranteed consideration equal to $14.00 per OP unit on the date of redemption. The remaining additional redemption obligation of $246,000 associated with the Edwards Theatres acquisition expired on March 11, 2013 and was reclassified and recognized as a gain in changes in fair value of financial instruments and gain on OP unit redemption (net of a loss of $16,000 on the OP unit redemption) on the accompanying condensed consolidated financial statements. At September 30, 2013, 172,869 OP units related to the Edwards Theatres acquisition remained outstanding, which continue to be redeemable by the OP unitholders for cash or common stock on a one-for-one basis (the determination of redemption for cash or common stock is at the Parent Company’s option). | |||||||||||||||||
Non-controlling interests on the consolidated balance sheets of the Operating Partnership represent the portion of equity that the Operating Partnership does not own in those entities it consolidates. | |||||||||||||||||
Concentration of Risk: | |||||||||||||||||
The Company maintains its cash accounts in a number of commercial banks. Accounts at these banks are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At various times during the periods, the Company had deposits in excess of the FDIC insurance limit. | |||||||||||||||||
In the three and nine months ended September 30, 2013 and 2012, no tenant accounted for more than 10% of revenues. | |||||||||||||||||
At September 30, 2013, the Company’s gross real estate assets in the states of California, Arizona, Virginia and Texas represented approximately 25.9%, 18.0%, 14.9% and 11.8% of the Company’s total assets, respectively. At December 31, 2012, the Company’s gross real estate assets in the states of Arizona, California and Virginia represented approximately 16.6%, 16.5% and 14.6% of the Company’s total assets, respectively. For the nine months ended September 30, 2013, the Company’s revenues derived from properties located in the states of California, Arizona, Virginia and Texas represented approximately 22.5%, 18.2%, 11.8% and 11.2% of the Company’s total revenues, respectively. For the nine months ended September 30, 2012, the Company’s revenues derived from properties located in the states of California and Arizona represented approximately 21.3% and 16.8% of the Company’s total revenues, respectively. | |||||||||||||||||
Management Estimates: | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||
The Company measures financial instruments and other items at fair value where required under GAAP, but has elected not to measure any additional financial instruments and other items at fair value as permitted under fair value option accounting guidance. | |||||||||||||||||
Fair value measurement is determined 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 (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | |||||||||||||||||
Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||||||||||
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||||||
The Company has used interest rate swaps to manage its interest rate risk (see Note 11). The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. | |||||||||||||||||
Although the Company has determined that the majority of the inputs used to value its derivatives classified as cash flow hedges fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2013, the Company has determined that the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company has determined that its valuations related to derivatives classified as cash flow hedges in their entirety are classified in Level 2 of the fair value hierarchy (see Note 19). | |||||||||||||||||
Changes in the fair value of financial instruments (other than derivative instruments for which an effective hedging relationship exists and available-for-sale securities) are recorded as a charge against earnings in the consolidated statements of operations in the period in which they occur. The Company estimates the fair value of financial instruments at least quarterly based on current facts and circumstances, projected cash flows, quoted market prices and other criteria (primarily utilizing Level 3 inputs). The Company may also utilize the services of independent third-party valuation experts to estimate the fair value of financial instruments, as necessary. | |||||||||||||||||
The Company’s investments in equity securities fall within Level 1 of the fair value hierarchy as the Company utilizes observable market-based inputs, based on the closing trading price of securities as of the balance sheet date, to determine the fair value of the investments. | |||||||||||||||||
Derivative Instruments: | |||||||||||||||||
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. Specifically, from time to time the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. | |||||||||||||||||
In addition, from time to time the Company may execute agreements in connection with business combinations that include embedded derivative instruments as part of the consideration provided to the sellers of the properties. Although these embedded derivative instruments are not intended as hedges of risks faced by the Company, they can provide additional consideration to the Company’s selling counterparties and may be a key component of negotiations. | |||||||||||||||||
The Company’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 Company 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 Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. | |||||||||||||||||
The Company records all derivative instruments on the consolidated balance sheets at their fair value. In determining the fair value of derivative instruments, the Company also considers the credit risk of its counterparties, which typically constitute larger financial institutions engaged in providing a wide variety of financial services. These financial institutions generally face similar risks regarding changes in market and economic conditions, including, but not limited to, changes in interest rates, exchange rates, equity and commodity pricing and credit spreads. | |||||||||||||||||
Accounting for changes in the fair value of derivative instruments depends on the intended use of the derivative, whether it has been designated as a hedging instrument and whether the hedging relationship has continued to satisfy the criteria to apply hedge accounting. For derivative instruments qualifying as cash flow hedges, the effective portion of changes in the fair value is initially recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in the cash flows of the derivative hedging instrument with the changes in the cash flows of the hedged item or transaction. | |||||||||||||||||
The Company formally documents the hedging relationship for all derivative instruments, has accounted for its interest rate swap agreements as cash flow hedges and does not utilize derivative instruments for trading or speculative purposes. | |||||||||||||||||
Changes in Accumulated Other Comprehensive Loss: | |||||||||||||||||
The following table reflects amounts that were reclassified from accumulated other comprehensive loss and included in earnings for the nine months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||
Parent Company | Operating Partnership | ||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance – January 1 | $ | (572 | ) | $ | (811 | ) | $ | (620 | ) | $ | (872 | ) | |||||
Unrealized loss on interest rate swaps: | |||||||||||||||||
Unrealized losses | (19 | ) | (304 | ) | (19 | ) | (304 | ) | |||||||||
Amount reclassified and recognized in net income(1) | 495 | 484 | 495 | 484 | |||||||||||||
Unrealized gain on investment in equity securities: | |||||||||||||||||
Unrealized gain | — | 85 | — | 85 | |||||||||||||
Amount reclassified and recognized in net income (2) | — | (12 | ) | — | (12 | ) | |||||||||||
Net change in other comprehensive income | 476 | 253 | 476 | 253 | |||||||||||||
Total other comprehensive loss allocable to non-controlling interests | (11 | ) | (9 | ) | — | — | |||||||||||
Balance – September 30 | $ | (107 | ) | $ | (567 | ) | $ | (144 | ) | $ | (619 | ) | |||||
-1 | Amounts reclassified from unrealized loss on derivative instruments are included in interest expense in the condensed consolidated statements of operations (interest expense of $171,000 and $164,000 was recognized in interest expense for the three months ended September 30, 2013 and 2012, respectively – see Note 11). | ||||||||||||||||
-2 | Amounts reclassified from unrealized gain on investments in equity securities are included in other income in the condensed consolidated statements of operations (a gain of $0 and $1,000 was recognized in other income for the three months ended September 30, 2013 and 2012, respectively). | ||||||||||||||||
Recent Accounting Pronouncements: | |||||||||||||||||
In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). The amendments in this update provide an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. ASU 2012-02 became effective for fiscal years and interim periods beginning after September 15, 2012. The adoption of ASU 2012-02 on January 1, 2013 did not have a material impact on the Company’s condensed consolidated financial position or results of operations. | |||||||||||||||||
In January 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). The amendments in this update require an entity to provide information about the amounts reclassified from accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the income statement or in the notes, significant amounts reclassified from accumulated other comprehensive income by the net income line item. The adoption of ASU 2013-02 on January 1, 2013 did not have a material impact on the Company’s condensed consolidated financial position or results of operations. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Acquisitions | ' | ||||||||||||||||||||||||||||||||
3. Acquisitions: | |||||||||||||||||||||||||||||||||
The Company completed the following property acquisition in the nine months ended September 30, 2013, which were acquired for cash unless specified below (dollars in thousands): | |||||||||||||||||||||||||||||||||
Property | Date Acquired | Location | Debt | ||||||||||||||||||||||||||||||
Assumed | |||||||||||||||||||||||||||||||||
Tracy Pavilion | January 24, 2013 | Tracy, CA | $ | — | |||||||||||||||||||||||||||||
Stadium Center | July 1, 2013 | Manteca, CA | $ | — | |||||||||||||||||||||||||||||
League City Towne Center | August 1, 2013 | League City, TX | $ | — | |||||||||||||||||||||||||||||
Living Spaces-Promenade | August 27, 2013 | Scottsdale, AZ | $ | 7,268 | |||||||||||||||||||||||||||||
The following summary provides an allocation of purchase price for each of the above acquisitions (dollars in thousands): | |||||||||||||||||||||||||||||||||
Building | Land | Above-Market | Below-Market | In-Place | Debt | Other | Purchase | ||||||||||||||||||||||||||
Leases | Leases | Leases | (Premium)/Discount | Price | |||||||||||||||||||||||||||||
Tracy Pavilion | $ | 22,611 | $ | 6,193 | $ | 163 | $ | (1,136 | ) | $ | 2,907 | $ | — | $ | — | $ | 30,738 | ||||||||||||||||
Stadium Center(1) | 28,988 | 10,309 | 931 | (3,197 | ) | 4,119 | — | — | 41,150 | ||||||||||||||||||||||||
League City Towne Center | 24,767 | 10,858 | 315 | (1,249 | ) | 4,809 | — | — | 39,500 | ||||||||||||||||||||||||
Living Spaces-Promenade(2) | 1,038 | 14,514 | — | (116 | ) | 1,500 | (936 | ) | — | 16,000 | |||||||||||||||||||||||
Total | $ | 77,404 | $ | 41,874 | $ | 1,409 | $ | (5,698 | ) | $ | 13,335 | $ | (936 | ) | $ | — | $ | 127,388 | |||||||||||||||
Remaining useful life(3) | 54 | 108 | 75 | 76 | |||||||||||||||||||||||||||||
-1 | As of September 30, 2013, the purchase price allocation related to the acquisition of the Stadium Center property was preliminary and the final purchase price allocation will be determined pending the receipt of information necessary to complete the valuation of assets and liabilities, which may result in a change from the intial estimates. | ||||||||||||||||||||||||||||||||
-2 | On August 27, 2013, the Company acquired a land parcel that was previously not owned at The Promenade retail property in Scottsdale, Arizona (not considered a separate property). The land parcel contains a building, which was constructed by the tenant and is subject to a ground lease. | ||||||||||||||||||||||||||||||||
-3 | Weighted-average remaining useful life (months) for recorded intangible assets and liabilities as of the date of acquisition. | ||||||||||||||||||||||||||||||||
The Company completed the following property acquisitions in the nine months ended September 30, 2012, which were acquired for cash unless specified below (dollars in thousands): | |||||||||||||||||||||||||||||||||
Consolidated Property | Date Acquired | Location | Debt | ||||||||||||||||||||||||||||||
Assumed | |||||||||||||||||||||||||||||||||
Promenade Corporate Center | January 23, 2012 | Scottsdale, AZ | $ | — | |||||||||||||||||||||||||||||
EastChase Market Center | February 17, 2012 | Montgomery, AL | $ | — | |||||||||||||||||||||||||||||
Lake Pleasant Pavilion | 16-May-12 | Peoria, AZ | $ | 28,250 | |||||||||||||||||||||||||||||
Chimney Rock | 31-Aug-12 | Odessa, TX | $ | — | |||||||||||||||||||||||||||||
Unconsolidated Property | Date Acquired | Location | Debt | ||||||||||||||||||||||||||||||
Assumed | |||||||||||||||||||||||||||||||||
La Costa Town Center | 29-Feb-12 | La Costa, CA | $ | — | |||||||||||||||||||||||||||||
The following summary provides an allocation of purchase price for the above acquisitions (dollars in thousands): | |||||||||||||||||||||||||||||||||
Consolidated Property | Building | Land | Above-Market | Below-Market | In-Place | Debt | Other | Purchase | |||||||||||||||||||||||||
Leases | Leases | Leases | (Premium)/Discount | Price | |||||||||||||||||||||||||||||
Promenade Corporate Center(1) | $ | 44,465 | $ | 4,477 | $ | 781 | $ | (749 | ) | $ | 3,279 | $ | — | $ | — | $ | 52,253 | ||||||||||||||||
EastChase Market Center | 19,567 | 4,215 | 360 | (1,296 | ) | 1,804 | — | — | 24,650 | ||||||||||||||||||||||||
Lake Pleasant Pavilion | 28,127 | 9,958 | 2,857 | (184 | ) | 2,412 | (1,420 | ) | — | 41,750 | |||||||||||||||||||||||
Chimney Rock(2) | 14,089 | 7,368 | — | (2,291 | ) | 2,532 | — | 2,106 | 23,804 | ||||||||||||||||||||||||
Total | $ | 106,248 | $ | 26,018 | $ | 3,998 | $ | (4,520 | ) | $ | 10,027 | $ | (1,420 | ) | $ | 2,106 | $ | 142,457 | |||||||||||||||
Unconsolidated Property | Building | Land | Above-Market | Below-Market | In-Place | Debt | Other | Purchase | |||||||||||||||||||||||||
Leases | Leases | Leases | (Premium)/Discount | Price | |||||||||||||||||||||||||||||
La Costa Town Center(3) | $ | 15,054 | $ | 8,383 | $ | 86 | $ | (2,069 | ) | $ | 2,046 | $ | — | $ | — | $ | 23,500 | ||||||||||||||||
Total | $ | 15,054 | $ | 8,383 | $ | 86 | $ | (2,069 | ) | $ | 2,046 | $ | — | $ | — | $ | 23,500 | ||||||||||||||||
-1 | The purchase price of $52.3 million reflects $13.9 million in cash paid and the issuance of 3,230,769 shares of common stock with a fair value of approximately $39.1 million based on a closing price of $12.11 per share on the date of acquisition. The purchase price noted above is net of master lease agreements between the Company and the seller in the amount of $772,000 (included in other assets on the accompanying condensed consolidated balance sheets) based on the estimated fair value of funds expected to be received from escrow in connection with the acquisition. Payments under the master lease agreements commenced upon the expiration of two existing leases in June 2012 and February 2013 (with terms through May 2013 and January 2015, respectively). In addition, the seller has agreed to reimburse the Company for any expenditures resulting from tenant improvements or leasing commissions related to the spaces to the extent that funds remain available pertaining to the master lease agreements. See Note 19 for a discussion of changes in the fair value of this asset after the initial acquisition. | ||||||||||||||||||||||||||||||||
-2 | The purchase price of $23.8 million noted above includes a long-term asset recognized at acquisition with a valuation of approximately $3.0 million (included in other assets) and a long-term liability with a preliminary valuation of approximately $906,000 (included in accounts payable and other liabilities). The long-term asset and the long-term liability reflect the estimated fair value of funds expected to be received pursuant to an economic development agreement executed between the previous owner of the property and the City of Odessa and the portion of such funds that is owed to a third party. As a result of the agreement, the Company is eligible to receive a refund of up to $5.1 million in municipal sales taxes generated by retail sales at the property over a period of up to 15 years. Both the long-term asset and the long-term liability will be accreted to their respective gross balances of $5.1 million and $1.0 million, respectively, over periods of 14 years and three years, respectively. | ||||||||||||||||||||||||||||||||
-3 | This property was originally purchased as a consolidated property. However, in September 2012 the La Costa Town Center property was contributed in exchange for proceeds of approximately $21.2 million to a newly-formed entity in which the Company holds a 20% ownership interest (see Note 14). The Company accounts for its remaining equity ownership in the property in a manner similar to the equity method of accounting, which is reflected in the accompanying condensed consolidated balance sheets as an investment in unconsolidated entities. | ||||||||||||||||||||||||||||||||
The Company recorded revenues and a net income for the three months ended September 30, 2013 of $2.6 million and $414,000, respectively, and for the nine months ended September 30, 2013 of $3.9 million and $401,000, respectively, related to the 2013 acquisitions. The Company recorded revenues and net income for the three months ended September 30, 2012 of $3.6 million and $153,000, respectively, and recorded revenues and a net loss for the nine months ended September 30, 2012 of $8.4 million and $413,000, respectively, related to the 2012 acquisitions. | |||||||||||||||||||||||||||||||||
The following unaudited pro forma information for the three and nine months ended September 30, 2013 and 2012 has been prepared to reflect the incremental effect of the properties acquired in 2013 and 2012, as if such acquisitions had occurred on January 1, 2012 and January 1, 2011, respectively (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||
Revenues | $ | 29,556 | $ | 24,581 | $ | 88,492 | $ | 73,235 | |||||||||||||||||||||||||
Net income (loss)(1) | $ | 14,056 | $ | 578 | $ | 18,282 | $ | 1,890 | |||||||||||||||||||||||||
-1 | Pro forma results for the three and nine months ended September 30, 2013 were adjusted to exclude non-recurring acquisition costs of approximately $109,000 and $166,000, respectively, related to the 2013 acquisitions. Pro forma results for the three and nine months ended September 30, 2012 were adjusted to exclude non-recurring acquisition costs of approximately $84,000 and $377,000, respectively, related to the 2012 acquisitions. The pro forma results for the three and nine months ended September 30, 2012 were adjusted to include these costs relating to the 2013 acquisitions. A portion of the 2012 acquisitions were funded with proceeds from the offering of 8.125% Series B Cumulative Redeemable Preferred Stock (“Series B preferred stock”) that closed in January 2012. However, pro forma net income for the three and nine months ended September 30, 2012 is not adjusted for this funding as the assumed Series B preferred stock quarterly dividends of approximately $1.9 million are not included in the determination of net income (included only as a reduction of net income (loss) attributable to the common stockholders). | ||||||||||||||||||||||||||||||||
As of September 30, 2013, the Company had completed the reconciliation of common area maintenance expenses related to periods prior to the acquisition of the West Broad Village property, resulting in no change to the original estimated credit received at the closing of the acquisition in the amount of $450,000 (recorded as a liability). |
Lease_Intangible_Assets_Net
Lease Intangible Assets, Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Lease Intangible Assets, Net | ' | ||||||||
4. Lease Intangible Assets, Net | |||||||||
Lease intangible assets, net consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
In-place leases, net of accumulated amortization of $24.9 million and $20.7 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 79 and 82 months as of September 30, 2013 and December 31, 2012, respectively) | $ | 48,276 | $ | 50,666 | |||||
Above-market leases, net of accumulated amortization of $7.0 million and $5.2 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 64 and 70 months as of September 30, 2013 and December 31, 2012, respectively) | 14,119 | 15,888 | |||||||
Leasing commissions, net of accumulated amortization of $6.5 million and $4.9 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 101 and 111 months as of September 30, 2013 and December 31, 2012, respectively) | 17,878 | 19,092 | |||||||
$ | 80,273 | $ | 85,646 | ||||||
Estimated amortization of lease intangible assets as of September 30, 2013 for each of the next five years and thereafter is as follows (dollars in thousands): | |||||||||
Year Ending December 31, | Amount | ||||||||
2013 (remaining three months) | $ | 4,966 | |||||||
2014 | 17,028 | ||||||||
2015 | 12,228 | ||||||||
2016 | 9,250 | ||||||||
2017 | 8,070 | ||||||||
Thereafter | 28,731 | ||||||||
Total | $ | 80,273 | |||||||
Amortization expense recorded on the lease intangible assets for the three months ended September 30, 2013 and 2012 was $5.5 million and $4.6 million, respectively. Included in these amounts are $1.0 million and $902,000, respectively, of amortization of above-market lease intangible assets recorded against rental revenue. Amortization expense recorded on the lease intangible assets for the nine months ended September 30, 2013 and 2012 was $18.3 million and $14.1 million, respectively. Included in these amounts are $3.6 million and $2.5 million, respectively, of amortization of above-market lease intangible assets recorded against rental revenue. |
Lease_Intangible_Liabilities_N
Lease Intangible Liabilities, Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Lease Intangible Liabilities, Net | ' | ||||||||
5. Lease Intangible Liabilities, Net | |||||||||
Lease intangible liabilities, net consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Below-market leases, net of accumulated amortization of $7.1 million and $5.0 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 123 and 134 months as of September 30, 2013 and December 31, 2012, respectively) | $ | 27,884 | $ | 26,455 | |||||
Amortization recorded on the lease intangible liabilities for the three months ended September 30, 2013 and 2012 was $1.1 million and $744,000, respectively. Amortization recorded on the lease intangible liabilities for the nine months ended September 30, 2013 and 2012 was $3.4 million and $2.5 million, respectively. These amounts were recorded as rental revenue in the Company’s condensed consolidated statements of operations. | |||||||||
Estimated amortization of lease intangible liabilities as of September 30, 2013 for each of the next five years and thereafter is as follows (dollars in thousands): | |||||||||
Year Ending December 31, | Amount | ||||||||
2013 (remaining three months) | $ | 995 | |||||||
2014 | 3,683 | ||||||||
2015 | 3,125 | ||||||||
2016 | 2,754 | ||||||||
2017 | 2,583 | ||||||||
Thereafter | 14,744 | ||||||||
Total | $ | 27,884 | |||||||
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2013 | |
Variable Interest Entities | ' |
6. Variable Interest Entities | |
Consolidated Variable Interest Entities | |
Included within the condensed consolidated financial statements is the 50% owned joint venture with AB Dothan, LLC, that is deemed a VIE, and for which the Company is the primary beneficiary as it has the power to direct activities that most significantly impact the economic performance of the VIE. The joint venture’s activities principally consist of owning and operating a neighborhood retail center with 171,670 square feet of gross leasable area (“GLA”) located in Dothan, Alabama. | |
As of September 30, 2013 and December 31, 2012, total carrying amount of assets was approximately $15.6 million and $15.9 million, respectively, which includes approximately $13.4 million and $13.6 million, respectively, of real estate assets at the end of each period. As of September 30, 2013 and December 31, 2012, the total carrying amount of liabilities was approximately $14.3 million. | |
Unconsolidated Variable Interest Entities | |
On December 9, 2010, the Company loaned $2.0 million to an unaffiliated borrower which has been identified as a VIE. In June 2012, the counterparty repaid the loan in full. The Company did not consolidate the VIE because it did not have the ability to control the activities that most significantly impacted the VIE’s economic performance. See Note 7 for an additional description of the nature, purposes and activities of the Company’s VIEs and interests therein. |
Mortgage_Loan_and_Note_Receiva
Mortgage Loan and Note Receivable | 9 Months Ended |
Sep. 30, 2013 | |
Mortgage Loan and Note Receivable | ' |
7. Mortgage Loan and Note Receivable | |
On December 9, 2010, the Company loaned $2.0 million to an unaffiliated borrower. The proceeds were used to facilitate the land acquisition and development of a shopping center anchored by Publix in Brandon, Florida. The loan was secured with a second mortgage trust deed on the property and was personally guaranteed by members of the borrower. In June 2012, the mortgage loan receivable was repaid in full, including interest accrued through the date of repayment. | |
In connection with the loan, the Company entered into a purchase and sale agreement to acquire this property upon completion of development, at the Company’s election. In June 2012, the Company executed an amendment whereby the closing date for the potential acquisition was extended through December 31, 2012. On October 1, 2012, the Company completed the acquisition of the retail shopping center with 68,000 square feet of GLA in Brandon, Florida for a purchase price of approximately $13.1 million. | |
In June 2012, the Company extended a note receivable in the amount of $750,000 to a third party. The note receivable bears interest at 10.0% per annum, with the principal and accrued interest due upon maturity in June 2014. The loan is recourse to the borrower. The balance is included in other assets on the accompanying condensed consolidated balance sheets. |
Debt_of_the_Operating_Partners
Debt of the Operating Partnership (Excel Trust, L.P.) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Excel Trust, L.P. | ' | ||||||||||||||||||||||||
Debt of the Operating Partnership | ' | ||||||||||||||||||||||||
8. Debt | |||||||||||||||||||||||||
Debt of the Parent Company | |||||||||||||||||||||||||
The Parent Company does not directly hold any indebtedness. All of the Company’s debt is held directly or indirectly by the Operating Partnership. However, the Parent Company has guaranteed the Operating Partnership’s mortgage loan secured by the Red Rock Commons property, a portion of the Operating Partnership’s mortgage loan secured by the Park West Place property and the Operating Partnership’s unsecured revolving credit facility (including the letter of credit that secures the redevelopment revenue bonds at the Northside Mall property). | |||||||||||||||||||||||||
Debt of the Operating Partnership | |||||||||||||||||||||||||
Mortgages Payable | |||||||||||||||||||||||||
Mortgages payable held by the Operating Partnership at September 30, 2013 and December 31, 2012 consist of the following (dollars in thousands): | |||||||||||||||||||||||||
Carrying Amount of | Contractual | Effective | Monthly | Maturity | |||||||||||||||||||||
Mortgage Notes | Interest Rate | Interest Rate | Payment(1) | Date | |||||||||||||||||||||
Property Pledged as Collateral | September 30, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Five Forks Place | $ | — | $ | 4,882 | — | — | $ | — | Jun-13 | ||||||||||||||||
Grant Creek Town Center | — | 15,342 | — | — | — | Jun-13 | |||||||||||||||||||
Park West Place(2) | 55,800 | 55,800 | 2.44 | % | 3.66 | % | 106 | December 2013 | |||||||||||||||||
Edwards Theatres | 11,605 | 11,859 | 6.74 | % | 5.5 | % | 95 | Feb-14 | |||||||||||||||||
Red Rock Commons(3) | 13,970 | 13,800 | 1.84 | % | 1.84 | % | 20 | Mar-14 | |||||||||||||||||
Excel Centre | 12,084 | 12,284 | 6.08 | % | 6.08 | % | 85 | May-14 | |||||||||||||||||
Merchant Central | 4,395 | 4,468 | 5.94 | % | 6.75 | % | 30 | Jul-14 | |||||||||||||||||
Gilroy Crossing | 46,037 | 46,646 | 5.01 | % | 5.01 | % | 263 | Oct-14 | |||||||||||||||||
The Promenade | 48,396 | 49,703 | 4.8 | % | 4.8 | % | 344 | Oct-15 | |||||||||||||||||
5000 South Hulen | 13,481 | 13,655 | 5.6 | % | 6.9 | % | 83 | Apr-17 | |||||||||||||||||
Lake Pleasant Pavilion | 27,933 | 28,176 | 6.09 | % | 5 | % | 143 | Oct-17 | |||||||||||||||||
Rite Aid — Vestavia Hills | 1,058 | 1,184 | 7.25 | % | 7.25 | % | 21 | Oct-18 | |||||||||||||||||
Living Spaces-Promenade(4) | 7,268 | — | 7.88 | % | 4.59 | % | 80 | Nov-19 | |||||||||||||||||
West Broad Village(5) | 39,700 | 50,000 | 3.33 | % | 3.33 | % | 110 | May-20 | |||||||||||||||||
Lowe’s, Shippensburg | 13,248 | 13,511 | 7.2 | % | 7.2 | % | 110 | Oct-31 | |||||||||||||||||
Northside Mall(6) | 12,000 | 12,000 | 0.08 | % | 1.08 | % | 1 | November 2035 | |||||||||||||||||
306,975 | 333,310 | ||||||||||||||||||||||||
Plus: premium(7) | 1,390 | 625 | |||||||||||||||||||||||
Mortgage notes payable, net | $ | 308,365 | $ | 333,935 | |||||||||||||||||||||
-1 | Amount represents the monthly payment of principal and interest at September 30, 2013. | ||||||||||||||||||||||||
-2 | The loan bears interest at a rate of LIBOR plus 2.25% (variable interest rate of 2.44% and 2.50% at September 30, 2013 and December 31, 2012, respectively). In December 2010, the Company entered into interest rate swap contracts, which fix LIBOR at an average of 1.41% for the term of the loan. The maturity date may be extended for an additional one-year period through December 2014 at the Company’s option and upon the satisfaction of conditions precedent and the payment of an extension fee. | ||||||||||||||||||||||||
-3 | The maturity date for the Red Rock Commons construction loan is March 2014, but may be extended for an additional one-year period through March 2015 at the Company’s option and upon the satisfaction of conditions precedent and the payment of an extension fee. As of September 30, 2013, the construction loan bore interest at the rate of LIBOR plus a margin of 165 to 225 basis points, depending on the Company’s leverage ratio (variable interest rate of 1.84% at September 30, 2013 and 2.45% at December 31, 2012). On October 9, 2013, the Company entered into an agreement that lowered the margin to 145 to 205 basis points (if in the future the Parent Company obtains an investment-grade credit rating from S&P, Fitch or Moody’s, the interest rate would be LIBOR plus a margin of 90 to 170 basis points, depending on the Parent Company’s credit rating). | ||||||||||||||||||||||||
-4 | The Company acquired an additional land parcel that it did not previously own at The Promenade retail property in August 2013 and in connection with such acquisition, the Company assumed a mortgage note with a fixed interest rate of 7.88% (see Note 3). | ||||||||||||||||||||||||
-5 | The loan at the West Broad Village property was refinanced in April 2013 and bears a fixed rate of 3.33% with a new maturity date of May 1, 2020. Debt payments are interest-only through May 2016. | ||||||||||||||||||||||||
-6 | The debt represents redevelopment revenue bonds to be used for the redevelopment of this property, which mature in November 2035. Interest is reset weekly and determined by the bond remarketing agent based on the market value of the bonds (interest rate of 0.08% at September 30, 2013 and 0.14% at December 31, 2012). The interest rate on the bonds is currently priced off of the Securities Industry and Financial Markets Association index but could change based on the credit of the bonds. The bonds are secured by a $12.1 million letter of credit issued by the Company from the Company’s unsecured revolving credit facility. An underwriter’s discount related to the original issuance of the bonds with a remaining balance of $106,000 and $110,000 at September 30, 2013 and December 31, 2012, respectively, is being amortized as additional interest expense through November 2035. | ||||||||||||||||||||||||
-7 | Represents (a) the fair value adjustment on assumed debt on acquired properties at the time of acquisition to account for below- or above-market interest rates and (b) an underwriter’s discount for the issuance of redevelopment bonds. | ||||||||||||||||||||||||
Total interest cost capitalized for the three months ended September 30, 2013 and 2012 was $34,000 and $0, respectively, and for the nine months ended September 30, 2013 and 2012 was $50,000 and $139,000, respectively. | |||||||||||||||||||||||||
The Company’s mortgage debt maturities at September 30, 2013 for each of the next five years and thereafter are as follows (dollars in thousands): | |||||||||||||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||||||||||||
2013 (remaining three months) | $ | 57,094 | |||||||||||||||||||||||
2014 | 91,130 | ||||||||||||||||||||||||
2015 | 47,920 | ||||||||||||||||||||||||
2016 | 2,364 | ||||||||||||||||||||||||
2017 | 41,415 | ||||||||||||||||||||||||
Thereafter | 67,052 | ||||||||||||||||||||||||
$ | 306,975 | ||||||||||||||||||||||||
Unsecured Revolving Credit Facility | |||||||||||||||||||||||||
On October 8, 2013, the Operating Partnership entered into an amended and restated credit agreement (the “2013 Amendment”), which provided for an increase in borrowings available under its existing credit facility from $250.0 million to $300.0 million, decreased the applicable interest rate and extended the maturity date. The Operating Partnership has the ability from time to time to increase the size of the unsecured revolving credit facility by up to an additional $200.0 million for a total borrowing capacity of $500.0 million, subject to receipt of lender commitments and other conditions precedent. The amended maturity date is April 6, 2018 and may be extended for an additional six months at the Operating Partnership’s option. The Operating Partnership, among other things, is subject to covenants requiring the maintenance of (1) maximum leverage ratios on unsecured, secured and overall debt and (2) minimum fixed coverage ratios. At September 30, 2013, the Operating Partnership believes that it was in compliance with all the covenants in the credit agreement. | |||||||||||||||||||||||||
As of September 30, 2013, the unsecured revolving credit facility bore interest at the rate of LIBOR plus a margin of 165 to 225 basis points (which was decreased pursuant to the 2013 Amendment to a margin of 145 to 205 basis points), depending on the Operating Partnership’s leverage ratio. Under the 2013 Amendment, if in the future the Parent Company obtains an investment-grade credit rating from S&P, Fitch or Moody’s, the interest rate would be LIBOR plus a margin of 90 to 170 basis points, depending on the Parent Company’s credit rating. As of September 30, 2013, the Operating Partnership was also responsible for paying a fee of 0.25% or 0.35% for any unused portion of the unsecured revolving credit facility, depending on the amount of the unused portion (or a fee of 0.25% or 0.30% pursuant to the 2013 Amendment on the full capacity of the facility in the future if the Parent Company obtains an investment-grade credit rating from S&P, Fitch or Moody’s). Borrowings from the unsecured revolving credit facility were $193.5 million at September 30, 2013 at a weighted-average interest rate of 1.83%. The Operating Partnership issued a $12.1 million letter of credit from the unsecured revolving credit facility, which secures an outstanding $12.0 million bond payable for the Northside Mall. This bond is included with the mortgages payable on the Company’s condensed consolidated balance sheets. At September 30, 2013, there was approximately $44.3 million available for borrowing under the unsecured revolving credit facility (amount available for borrowing increased subsequent to September 30, 2013 as a result of the 2013 amendment). |
Earnings_Per_ShareUnit
Earnings Per Share/Unit | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share/Unit | ' | ||||||||||||||||
9. Earnings Per Share of the Parent Company | |||||||||||||||||
Basic earnings (loss) per share is computed by dividing income (loss) applicable to common stockholders by the weighted average shares outstanding, as adjusted for the effect of participating securities. The Parent Company’s unvested restricted share awards are participating securities as they contain non-forfeitable rights to dividends. The impact of unvested restricted share awards on earnings (loss) per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends and the unvested restricted shares’ participation rights in undistributed earnings (losses). | |||||||||||||||||
The calculation of diluted earnings per share for the three and nine months ended September 30, 2013 does not include 657,873 and 683,922 shares, respectively, of unvested restricted common stock or 1,225,115 and 1,230,437 OP units, respectively, as the effect of including these equity securities was anti-dilutive to net income or net loss attributable to the common stockholders. The calculation of diluted earnings per share for the three and nine months ended September 30, 2012 does not include 905,433 and 942,810 shares, respectively, of unvested restricted common stock, 90,207 and 90,513 shares, respectively, of contingently issuable common stock related to the 2011 Edwards Theatres acquisition, or 1,056,894 and 1,217,732 OP units, respectively, as the effect of including these equity securities was anti-dilutive to net loss attributable to the common stockholders. In addition, 3,356,178 and 3,341,076 shares of common stock for the three and nine months ended September 30, 2013, respectively, and 3,333,400 shares of common stock for both the three and nine months ended September 30, 2012, respectively, which were issuable upon settlement of the conversion feature of the 7.00% Series A Cumulative Convertible Perpetual Preferred Stock (“Series A preferred stock”), were anti-dilutive and were not included in the calculation of diluted earnings per share based on the “if converted” method. | |||||||||||||||||
Computations of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 (in thousands, except share data) were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic earnings per share: | |||||||||||||||||
Income from continuing operations | $ | 1,520 | $ | 460 | $ | 5,180 | $ | 1,254 | |||||||||
Preferred dividends | (2,744 | ) | (2,744 | ) | (8,232 | ) | (7,609 | ) | |||||||||
Allocation to participating securities | (109 | ) | (144 | ) | (326 | ) | (432 | ) | |||||||||
Income from continuing operations attributable to non-controlling interests | (108 | ) | (8 | ) | (260 | ) | 7 | ||||||||||
Income (loss) from continuing operations applicable to the common stockholders | $ | (1,441 | ) | $ | (2,436 | ) | $ | (3,638 | ) | $ | (6,780 | ) | |||||
Net income (loss) attributable to the common stockholders | $ | 10,739 | $ | (2,243 | ) | $ | 8,914 | $ | (6,302 | ) | |||||||
Allocation to participating securities | (143 | ) | (144 | ) | (326 | ) | (432 | ) | |||||||||
Net income (loss) applicable to the common stockholders | $ | 10,596 | $ | (2,387 | ) | $ | 8,588 | $ | (6,734 | ) | |||||||
Weighted-average common shares outstanding: | |||||||||||||||||
Basic and diluted | 47,496,811 | 33,293,772 | 46,674,386 | 32,616,052 | |||||||||||||
Basic and diluted earnings per share: | |||||||||||||||||
Income (loss) from continuing operations per share attributable to the common stockholders | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.21 | ) | |||||
Income from discontinued operations per share attributable to the common stockholders | 0.25 | — | 0.26 | — | |||||||||||||
Net income (loss) per share attributable to the common stockholders | $ | 0.22 | $ | (0.07 | ) | $ | 0.18 | $ | (0.21 | ) | |||||||
Excel Trust, L.P. | ' | ||||||||||||||||
Earnings Per Share/Unit | ' | ||||||||||||||||
10. Earnings Per Unit of the Operating Partnership | |||||||||||||||||
Basic earnings (loss) per unit is computed by dividing income (loss) applicable to unitholders by the weighted average OP units outstanding, as adjusted for the effect of participating securities. The Operating Partnership’s unvested restricted OP unit awards are participating securities as they contain non-forfeitable rights to dividends. The impact of unvested restricted OP unit awards on earnings (loss) per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted OP unit awards based on distributions and the unvested restricted OP units’ participation rights in undistributed earnings (losses). | |||||||||||||||||
The calculation of diluted earnings per unit for the three and nine months ended September 30, 2013 does not include 657,873 and 683,922 units, respectively, of unvested restricted OP units, as the effect of including these equity securities was anti-dilutive to net income or net loss attributable to the unitholders. The calculation of diluted earnings per share for the three and nine months ended September 30, 2012 does not include 905,433 and 942,810 units, respectively, of unvested restricted OP units, or 90,207 and 90,513 units, respectively, of contingently issuable OP units related to the 2011 Edwards Theatres acquisition, respectively, as the effect of including these equity securities was anti-dilutive to net loss attributable to the common stockholders. In addition, 3,356,178 and 3,341,076 OP units for the three and nine months ended September 30, 2013, respectively, and 3,333,400 OP units for both the three and nine months ended September 30, 2012, respectively, which were issuable upon settlement of the conversion feature of the 7.00% Series A Cumulative Convertible Perpetual Preferred Units (“Series A preferred units”), were anti-dilutive and were not included in the calculation of diluted earnings per unit based on the “if converted” method. | |||||||||||||||||
Computations of basic and diluted earnings per unit for the three and nine months ended September 30, 2013 and 2012 (in thousands, except share data) were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic earnings per unit: | |||||||||||||||||
Income from continuing operations | $ | 1,520 | $ | 460 | $ | 5,180 | $ | 1,254 | |||||||||
Preferred distributions | (2,744 | ) | (2,744 | ) | (8,232 | ) | (7,609 | ) | |||||||||
Allocation to participating securities | (109 | ) | (144 | ) | (326 | ) | (432 | ) | |||||||||
Income from continuing operations attributable to non-controlling interests | (77 | ) | (75 | ) | (249 | ) | (216 | ) | |||||||||
Income (loss) from continuing operations applicable to the unitholders | $ | (1,410 | ) | $ | (2,503 | ) | $ | (3,627 | ) | $ | (7,003 | ) | |||||
Net income (loss) attributable to the unitholders | $ | 11,018 | $ | (2,316 | ) | $ | 9,154 | $ | (6,532 | ) | |||||||
Allocation to participating securities | (109 | ) | (144 | ) | (326 | ) | (432 | ) | |||||||||
Net income (loss) applicable to the unitholders | $ | 10,909 | $ | (2,460 | ) | $ | 8,828 | $ | (6,964 | ) | |||||||
Weighted-average common OP units outstanding: | |||||||||||||||||
Basic and diluted | 48,721,926 | 34,350,666 | 47,904,824 | 33,833,784 | |||||||||||||
Basic and diluted earnings per unit: | |||||||||||||||||
Income (loss) from continuing operations per unit attributable to the unitholders | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.21 | ) | |||||
Income from discontinued operations per unit attributable to the unitholders | 0.25 | — | 0.26 | — | |||||||||||||
Net income (loss) per unit attributable to the unitholders | $ | 0.22 | $ | (0.07 | ) | $ | 0.18 | $ | (0.21 | ) | |||||||
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivatives and Hedging Activities | ' | ||||||||||||||||||
11. Derivatives and Hedging Activities | |||||||||||||||||||
In December 2010, the Company executed two pay-fixed interest rate swaps with a notional value of $55.8 million (weighted average interest rate of 1.41%) to hedge the variable cash flows associated with one of the Company’s mortgage payables. As a result of the interest rate swaps, the Company either (1) receives the difference between a fixed interest rate (the “Strike Rate”) and one-month LIBOR if the Strike Rate is less than LIBOR or (2) pays such difference if the Strike Rate is greater than LIBOR. No initial investment was made to enter into either of the interest rate swap agreements. The Company had no derivative financial instruments prior to the execution of the two swaps. | |||||||||||||||||||
During the three months ended September 30, 2013 and 2012, the Company recorded no amounts in earnings attributable to hedge ineffectiveness. During the next twelve months, the Company estimates that an additional $144,000 will be reclassified from other comprehensive income as an increase to interest expense. | |||||||||||||||||||
As of September 30, 2013, the Company had the following outstanding interest rate swaps and other derivatives instruments (dollars in thousands): | |||||||||||||||||||
Fair Value(1) | Current Notional | Strike Rate | Expiration Date | ||||||||||||||||
Type of Derivative Instrument | September 30, | December 31, | Amount | ||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Interest rate swaps(2) | $ | 144 | $ | 620 | $ | 55,800 | 1.34% to 1.48% | December 2013 | |||||||||||
Other derivative instrument(3) | — | 274 | Mar-13 | ||||||||||||||||
Total derivative instruments | $ | 144 | $ | 894 | |||||||||||||||
-1 | Fair value of derivative instruments does not include any related accrued interest payable to the counterparty. | ||||||||||||||||||
-2 | The interest rate swaps are classified within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets. | ||||||||||||||||||
-3 | The Company’s purchase agreement executed in connection with the acquisition of the Edwards Theatres property in March 2011 contained a provision determined to be an embedded derivative instrument. The embedded derivative provided a guaranteed fair value for the OP units provided to the sellers of the property if redeemed for shares of the Parent Company’s common stock or cash, at the Company’s election, prior to its expiration in March 2013. The fair value of the embedded derivative at each period was calculated through the use of a Monte Carlo valuation model based on the historical volatility and closing price of the Parent Company’s common stock and a risk-free interest rate (see Note 19 for discussion of changes in the fair value of this derivative). The embedded derivative was classified within accounts payable and other liabilities in the accompanying condensed consolidated balance sheets. | ||||||||||||||||||
Tabular Disclosure of the Effect of Derivative Instruments on the Income Statement | |||||||||||||||||||
The tables below present the effect of the Company’s derivative financial instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Amount of unrealized loss recognized in OCI (effective portion): | |||||||||||||||||||
Interest rate swaps | $ | (7 | ) | $ | (92 | ) | $ | (19 | ) | $ | (304 | ) | |||||||
Other derivatives | — | — | — | — | |||||||||||||||
Total | $ | (7 | ) | $ | (92 | ) | $ | (19 | ) | $ | (304 | ) | |||||||
Amount of loss reclassified from accumulated OCI into income (effective portion): | |||||||||||||||||||
Interest rate swaps (interest expense) | $ | (171 | ) | $ | (164 | ) | $ | (495 | ) | $ | (484 | ) | |||||||
Other derivatives | — | — | — | — | |||||||||||||||
Total | $ | (171 | ) | $ | (164 | ) | $ | (495 | ) | $ | (484 | ) | |||||||
Amount of gain recognized in income (ineffective portion and amount excluded from effectiveness testing): | |||||||||||||||||||
Interest rate swaps (other income/expense) | $ | — | $ | — | $ | — | $ | — | |||||||||||
Other derivatives (changes in fair value of financial instruments and gain on OP unit redemption) | — | 61 | 230 | 1,112 | |||||||||||||||
Total | $ | — | $ | 61 | $ | 230 | $ | 1,112 | |||||||||||
Credit-risk-related Contingent Features | |||||||||||||||||||
Under the terms of the two interest rate swaps detailed above, the Company could be declared in default on its obligations under the swap agreements in the event that it defaults on any of its indebtedness, even if repayment of the indebtedness has not been accelerated by the lender. Additionally, because the Company’s derivative counterparty is also the lender for the hedged floating rate credit agreement, the swap agreements incorporate the loan covenant provisions of the Company’s indebtedness. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement. | |||||||||||||||||||
If the Company had breached any of these provisions at September 30, 2013, it could have been required to settle its obligations under the agreements at their termination value. As of September 30, 2013, the termination value defined as the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, was a liability of approximately $196,000. As of September 30, 2013, the Company has not posted any collateral related to these agreements. | |||||||||||||||||||
Although the Company’s derivative contracts are subject to a master netting arrangement, the Company does not net its derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheets. |
Equity_of_the_Parent_Company
Equity of the Parent Company | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity of the Parent Company | ' | ||||||||||||
12. Equity of the Parent Company | |||||||||||||
The Parent Company has issued restricted stock awards to senior executives, directors and employees totaling 1,133,130 shares of common stock (net of forfeitures of 23,000 shares), which are included in the total shares of common stock outstanding as of September 30, 2013. | |||||||||||||
As of September 30, 2013, the Parent Company had outstanding 2,000,000 shares of Series A preferred stock, with a liquidation preference of $25.00 per share. The Parent Company pays cumulative dividends on the Series A preferred stock when, as and if declared by the Parent Company’s board of directors, at a rate of 7.00% per annum, subject to adjustment in certain circumstances. The annual dividend on each share of Series A preferred stock is $1.75, payable quarterly in arrears on or about the 15th day of January, April, July and October of each year. Holders of the Series A preferred stock generally have no voting rights except for limited voting rights if the Parent Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances. The Series A preferred stock is convertible, at the holders’ option, at any time and from time to time, into common stock of the Parent Company. The initial conversion rate of the Series A preferred stock was 1.6667 shares of common stock per share of Series A preferred stock. Effective July 31, 2013, the conversion rate was adjusted to 1.6836 shares of common stock per share of Series A preferred stock as a result of the aggregate dividends that the Parent Company declared and paid on its common stock, beginning with the quarter ended September 30, 2011 and through the quarter ended September 30, 2013, being in excess of the reference dividend of $0.15 per share. The conversion rate will continue to be subject to customary adjustments in certain circumstances. On or after April 1, 2014, the Parent Company may, at its option, convert some or all of the Series A preferred stock if the closing price of the common stock equals or exceeds 140% of the conversion price for at least 20 of the 30 consecutive trading days ending the day before the notice of exercise of conversion is sent and the Parent Company has either declared and paid, or declared and set apart for payment, any unpaid dividends that are in arrears on the Series A preferred stock. | |||||||||||||
As of September 30, 2013, the Parent Company had outstanding 3,680,000 shares of Series B preferred stock, with a liquidation preference of $25.00 per share. The Parent Company pays cumulative dividends on the Series B preferred stock, when, as and if declared by the Parent Company’s board of directors, at a rate of 8.125% per annum, subject to adjustment in certain circumstances. The annual dividend on each share of Series B preferred stock is $2.03125, payable quarterly in arrears on or about the 15th day of January, April, July and October of each year. Holders of the Series B preferred stock generally have no voting rights except for limited voting rights if the Parent Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances. At any time on and after January 31, 2017, the Parent Company may, at its option, redeem the Series B preferred stock, in whole or from time to time in part, by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. In addition, upon the occurrence of a change of control, the Parent Company or a successor may, at its option, redeem the Series B preferred stock, in whole or in part and within 120 days after the first date on which such change of control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. | |||||||||||||
The Parent Company’s board of directors has authorized a stock repurchase program under which the Parent Company may acquire up to $30.0 million of its common stock in open market and negotiated purchases with no expiration date. As of September 30, 2013, approximately $23.3 million remained available under the stock repurchase program to acquire outstanding shares of the Parent Company’s common stock. | |||||||||||||
The Parent Company has entered into equity distribution agreements (the “Equity Distribution Agreements”) with four sales agents, under which it can issue and sell shares of the Parent Company’s common stock from time to time through, at its discretion, any of the sales agents. The Equity Distribution Agreements were initially entered into in March 2012 with an aggregate offering price of up to $50.0 million. The Equity Distribution Agreements were subsequently amended and restated in May 2013, permitting additional sales with an aggregate offering price of up to $100.0 million. The sales of common stock made under the Equity Distribution Agreements are made in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”). During the nine months ended September 30, 2013, the Parent Company completed the issuance of 3,211,928 shares pursuant to the Equity Distribution Agreements, resulting in net proceeds of approximately $40.7 million at an average stock issuance price of $13.05 per share. The Company used the net proceeds to repay outstanding indebtedness under its unsecured revolving credit facility and for other general corporate and working capital purposes. | |||||||||||||
Consolidated net income is reported in the Company’s consolidated financial statements at amounts that include the amounts attributable to both the common stockholders and the non-controlling interests. During the period from March 2012 to March 2013, a total of 591,474 OP units related to the Edwards Theatres acquisition were tendered to the Parent Company for redemption, resulting in the issuance of an additional 531,768 shares of common stock and cash payments totaling approximately $1.9 million to former unitholders (see Note 19 for further discussion). In October 2012, the Operating Partnership issued an additional 411,184 OP units in connection with the acquisition of the Company’s West Broad Village property. | |||||||||||||
A charge/credit is recorded each period in the consolidated statements of income for the non-controlling interests’ proportionate share of the Company’s net income (loss). Ownership interests held by the Company do not include unvested restricted stock. | |||||||||||||
2010 Equity Incentive Award Plan | |||||||||||||
The Company has established the 2010 Equity Incentive Award Plan of Excel Trust, Inc. and Excel Trust, L.P. (the “2010 Plan”), pursuant to which the Parent Company’s board of directors or a committee of its independent directors may make grants of stock options, restricted stock, stock appreciation rights and other stock-based awards to its non-employee directors, employees and consultants (an equivalent amount of common OP units are issued to the Parent Company for each such grant with similar terms and conditions). The maximum number of shares of the Parent Company’s common stock that may be issued pursuant to the 2010 Plan is 1,350,000 (of which 239,870 shares of common stock remain available for issuance as of September 30, 2013). | |||||||||||||
The following shares of restricted common stock were issued during the nine months ended September 30, 2013: | |||||||||||||
Grant Date | Price at Grant | Number | Vesting | ||||||||||
Date | Period (yrs.) | ||||||||||||
March 6, 2013(1) | $ | 13.43 | 41,500 | 4 | |||||||||
May 7, 2013(2) | $ | 15.11 | 10,588 | 1 | |||||||||
June 7, 2013(2) | $ | 13.36 | 1,000 | 4 | |||||||||
-1 | Shares issued to certain of the Company’s employees. These shares vest over four years with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments thereafter. | ||||||||||||
-2 | Shares issued to members of the Company’s board of directors. These shares vest in equal quarterly installments. | ||||||||||||
Shares of the Parent Company’s restricted common stock generally may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent of the administrator of the 2010 Plan, a domestic relations order, unless and until all restrictions applicable to such shares have lapsed. Such restrictions expire upon vesting. Shares of the Parent Company’s restricted common stock have full voting rights and rights to dividends upon grant. The Company recognized compensation expense during the three months ended September 30, 2013 and 2012 of $583,000 and $817,000, respectively, and during the nine months ended September 30, 2013 and 2012 of $1.7 million and $2.4 million, respectively, related to the restricted common stock grants ultimately expected to vest. ASC Topic 718, Compensation — Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has estimated $0 in forfeitures. Stock compensation expense is included in general and administrative expense in the accompanying condensed consolidated statements of operations. | |||||||||||||
As of September 30, 2013 and December 31, 2012, there was approximately $2.1 million and $3.4 million, respectively, of total unrecognized compensation expense related to the non-vested shares of the Parent Company’s restricted common stock. As of September 30, 2013 and December 31, 2012, this expense was expected to be recognized over a weighted-average remaining period of 1.3 and 2.0 years, respectively. | |||||||||||||
Number of Unvested | Weighted | ||||||||||||
Shares of | Average Grant | ||||||||||||
Restricted | Date Fair Value | ||||||||||||
Common Stock | |||||||||||||
Balance - January 1, 2013 | 701,396 | $ | 10.02 | ||||||||||
Grants | 53,088 | $ | 13.76 | ||||||||||
Forfeitures | (20,000 | ) | $ | 13.43 | |||||||||
Vested | (94,376 | ) | $ | 12.47 | |||||||||
Balance - September 30, 2013 | 640,108 | $ | 9.86 | ||||||||||
401(k) Retirement Plan | |||||||||||||
The Company maintains a 401(k) retirement plan covering substantially all employees, which permits participants to defer up to the maximum allowable amount of their eligible compensation as determined by the Internal Revenue Service. This deferred compensation, together with Company matching contributions equal to 100% of employee deferrals up to 3.0% of eligible compensation and 50% of employee deferrals for the next 2.0% of eligible compensation, is fully vested and funded as of September 30, 2013. Costs related to the matching portion of the plan for the three months ended September 30, 2013 and 2012 were approximately $39,000 and $30,000, respectively, and for the nine months ended September 30, 2013 and 2012 were approximately $113,000 and $87,000, respectively. |
Equity_of_the_Operating_Partne
Equity of the Operating Partnership (Excel Trust, L.P.) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Excel Trust, L.P. | ' | ||||||||||||||||
Equity of the Operating Partnership | ' | ||||||||||||||||
13. Equity of the Operating Partnership | |||||||||||||||||
As of September 30, 2013, the Operating Partnership had outstanding 49,397,888 OP units. The Parent Company owned 97.5% of the partnership interests in the Operating Partnership at September 30, 2013, is the Operating Partnership’s general partner and is responsible for the management of the Operating Partnership’s business. As the general partner of the Operating Partnership, the Parent Company effectively controls the ability to issue common stock of the Parent Company upon a limited partner’s notice of redemption. In addition, the Parent Company has generally acquired OP units upon a limited partner’s notice of redemption in exchange for shares of its common stock. The redemption provisions of OP units owned by limited partners that permit the Parent Company to settle in either cash or common stock at the option of the Parent Company are further evaluated in accordance with applicable accounting guidance to determine whether temporary or permanent equity classification on the balance sheet is appropriate. The Operating Partnership evaluated this guidance, including the requirement to settle in unregistered shares, and determined that these OP units meet the requirements to qualify for presentation as permanent equity. | |||||||||||||||||
In addition, as of September 30, 2013, the Operating Partnership had outstanding 2,000,000 7.00% Series A preferred units and 3,680,000 8.125% Series B Cumulative Redeemable Preferred Units (collectively referred to as the “Preferred Units”). The Preferred Units were issued to the Parent Company in exchange for the net proceeds from the issuance of preferred stock of the Parent Company and contain the same terms and conditions as the preferred stock instruments (including distribution rates, exchange or redemption provisions, etc.). | |||||||||||||||||
In connection with the Parent Company’s Equity Distribution Agreements, during the nine months ended September 30, 2013 the Operating Partnership issued 3,211,928 OP units to the Parent Company in exchange for net proceeds of approximately $40.7 million, which were used to repay outstanding indebtedness under its unsecured revolving credit facility and for other general corporate and working capital purposes. | |||||||||||||||||
Consolidated net income is reported in the Operating Partnership’s consolidated financial statements at amounts that include the amounts attributable to both the unitholders and the non-controlling interests in a consolidated joint venture property. During the period from March 2012 to March 2013, a total of 591,474 OP units related to the 2011 Edwards Theatres acquisition were tendered to the Parent Company for redemption, resulting in the issuance of an additional 531,768 shares of the Parent Company’s common stock (and the issuance of an equivalent number of OP units to the Parent Company) and cash payments totaling approximately $1.9 million to former unitholders (see Note 19 for further discussion). In October 2012, the Operating Partnership issued an additional 411,184 OP units in connection with the acquisition of the Company’s West Broad Village property. | |||||||||||||||||
The following table shows the vested partnership interests in the Operating Partnership as of September 30, 2013 and December 31, 2012: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
OP | Percentage | OP | Percentage | ||||||||||||||
Units | of Total | Units | of Total | ||||||||||||||
Excel Trust, Inc. | 47,532,665 | 97.5 | % | 44,204,287 | 97.3 | % | |||||||||||
Non-controlling interests consisting of: | |||||||||||||||||
OP units held by employees and third parties | 1,225,115 | 2.5 | % | 1,245,019 | 2.7 | % | |||||||||||
Total | 48,757,780 | 100 | % | 45,449,306 | 100 | % | |||||||||||
Investment_in_Unconsolidated_E
Investment in Unconsolidated Entities | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Investment in Unconsolidated Entities | ' | ||||||||||||
14. Investment in Unconsolidated Entities | |||||||||||||
On September 7, 2012, the Company contributed the La Costa Town Center property to a limited liability company (“La Costa LLC”) with GEM Realty Capital, Inc. (“GEM”) in which the Company and GEM hold 20% and 80% ownership interests, respectively. The Company received approximately $21.2 million in exchange for the 80% ownership interest acquired by GEM. The Company’s remaining interest is reflected in the accompanying balance sheets at the Company’s historical cost basis as an investment in a profit-sharing arrangement. The contribution was not considered a sale of real estate due to terms in the La Costa LLC formation documents that could require the Company’s continuing participation in the future under certain circumstances. La Costa LLC does not qualify as a VIE and consolidation is not required as the Company does not control the operations of the property and the majority owner will bear the majority of any losses incurred. The Company will receive 20% of the cash flow distributions and may receive a greater portion of cash distributions in the future based upon the performance of the property and the availability of cash for distribution. In addition, the Company receives fees in its role as the day-to-day property manager and for any development services that it provides. The Company’s interest in the income or losses of the underlying venture is reflected in a manner similar to the equity method of accounting. | |||||||||||||
On October 19, 2012, the Company acquired a 50% tenant-in-common ownership interest in a property (The Fountains at Bay Hill, or “Bay Hill”) for a purchase price of approximately $19.8 million as a part of a larger acquisition. The remaining 50% undivided interest in the Bay Hill property is held by MDC Fountains, LLC (“MDC”). The Bay Hill property does not qualify as a VIE and consolidation is not required as the Company does not control the operations of the property. The Company will receive 50% of the cash flow distributions and recognize 50% of the results of operations. In addition, the Company receives fees in its role as the day-to-day property manager. The Company’s 50% ownership interest is reflected in the accompanying balance sheets as an investment in unconsolidated entities and the Company’s interest in the income or losses of the property is recorded based on the equity method of accounting. | |||||||||||||
General information on the La Costa LLC and Bay Hill properties as of September 30, 2013 was as follows: | |||||||||||||
Unconsolidated Investment | Partner | Ownership Interest | Formation/ | Property | |||||||||
Acquisition Date | |||||||||||||
La Costa LLC(1) | GEM | 20 | % | September 7, 2012 | La Costa Town Center | ||||||||
Bay Hill(2) | MDC | 50 | % | October 19, 2012 | The Fountains at Bay Hill | ||||||||
(1) | At September 30, 2013, La Costa LLC had real estate assets of $23.4 million, total assets of $25.1 million, mortgages payable of $14.1 million and total liabilities of $15.1 million. At December 31, 2012, La Costa LLC had real estate assets of $23.4 million, total assets of $26.3 million, mortgages payable of $14.1 million and total liabilities of $16.0 million. For the three months ended September 30, 2013, total revenues were $430,000, total expenses were $798,000 (including interest expense) and net loss was $368,000. For the nine months ended September 30, 2013, total revenues were $2.7 million, total expenses were $3.3 million (including interest expense) and net loss was $632,000. The mortgage note was assumed with the contribution of the property. Total revenues were $165,000, total expenses were $955,000 (including interest expense) and net loss was $790,000 for both the three and nine months ended September 30, 2012 (representing only a partial month of operating activity after the contribution of the property on September 7, 2012) . The mortgage note bears interest at the rate of LIBOR plus a margin of 575 basis points (5.9% at September 30, 2013 and 6.0% at December 31, 2012). The mortgage note has a maturity date of October 1, 2014, which may be extended for three additional one-year periods at La Costa LLC’s election and upon the satisfaction of certain conditions (including the payment of an extension fee upon the exercise of the 2nd and 3rd renewal options, execution of an interest rate cap and the establishment of certain reserve accounts). La Costa LLC has also entered into an interest rate cap related to the mortgage note, which limits LIBOR to a maximum of 3.0% and expires on October 1, 2014. | ||||||||||||
(2) | At September 30, 2013 and December 31, 2012, there were $23.5 million and $23.9 million, respectively, in outstanding borrowings on the mortgage note assumed with the acquisition of the Bay Hill property. The mortgage note bears interest at the rate of LIBOR plus a margin of 325 basis points (3.4% at September 30, 2013 and 3.5% at December 31, 2012). The mortgage note has a maturity date of April 2, 2015, which may be extended for two additional one-year periods at the borrower’s election and upon the satisfaction of certain conditions. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
15. Discontinued Operations | |||||||||||||||||
On July 19, 2013, the Company completed the disposition of the Walgreens property, located in North Corbin, Kentucky, for a sales price of approximately $4.5 million, excluding closing costs. On September 13, 2013, the Company completed the disposition of the Grant Creek Town Center property, located in Missoula, Montana, for a sales price of approximately $32.3 million, excluding closing costs. The Grant Creek Town Center property sale was classified as an exchange pursuant to section 1031 of the Code; therefore, the funds are restricted as to their usage and are reflected as restricted cash on the accompany condensed consolidated balance sheets. The Company subsequently utilized a portion of the funds to provide the purchase price for the acquisition of a retail center property located in San Diego, California on October 4, 2013 (see Note 20). | |||||||||||||||||
Both properties were part of the retail properties segment – see Note 21. The following table provides information regarding the disposition of the properties: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Property | Sales Price | Gain on Sale | Date of Sale | Acquisition Date | |||||||||||||
Walgreens — North Corbin | $ | 4,514 | $ | 1,129 | 7/19/13 | 5/24/10 | |||||||||||
Grant Creek Town Center | $ | 32,343 | $ | 10,845 | 9/13/13 | 8/27/10 | |||||||||||
The results of operations for the properties are reported as discontinued operations for all periods presented in the accompanying condensed consolidated statements of operations. The following table summarizes the revenue and expense components that comprise income from discontinued operations (dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | $ | 559 | $ | 668 | $ | 1,815 | $ | 1,992 | |||||||||
Total expenses | 214 | 625 | 1,334 | 1,953 | |||||||||||||
Income before non-controlling interests and | 345 | 43 | 481 | 39 | |||||||||||||
gain on sale of real estate assets | |||||||||||||||||
Gain on sale of real estate assets | 11,974 | — | 11,974 | — | |||||||||||||
Non-controlling interest in discontinued operations(1) | (248 | ) | 6 | (229 | ) | 7 | |||||||||||
Income from discontinued operations available to the common stockholders | $ | 12,071 | $ | 49 | $ | 12,226 | $ | 46 | |||||||||
(1) | Amounts represent the portion of non-controlling interest related to OP units not held by the Parent Company that would be attributable to discontinued operations (no amounts would be allocable with respect to the consolidated financial statements of the Operating Partnership). |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions | ' |
16. Related Party Transactions | |
Many of the employees of Excel Realty Holdings, LLC (“ERH”) became employees of the Company subsequent to the Company’s initial public offering. ERH reimburses the Company for estimated time the Company employees spend on ERH related matters. In the three months ended September 30, 2013 and 2012, approximately $82,000 and $88,000, respectively, and in the nine months ended September 30, 2013 and 2012, approximately $230,000 and $236,000, respectively, was reimbursed to the Company from ERH and included in other income in the condensed consolidated statements of operations. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
17. Income Taxes | |
Income Taxes of the Parent Company | |
The Parent Company elected to be taxed as a REIT under the Code, beginning with the taxable year ended December 31, 2010. To qualify as a REIT, the Parent Company must meet a number of organizational and operational requirements, including the requirement that it distribute currently at least 90% of its REIT taxable income to its stockholders. It is the Parent Company’s intention to comply with these requirements and maintain the Parent Company’s REIT status. As a REIT, the Parent Company generally will not be subject to corporate federal, state or local income taxes on income it distributes currently (in accordance with the Code and applicable regulations) to its stockholders. If the Parent Company fails to qualify as a REIT in any taxable year, then it will be subject to federal, state and local income taxes at regular corporate rates and may not be able to qualify as a REIT for subsequent tax years. Even if the Parent Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income, properties and operations and to federal income and excise taxes on its taxable income not distributed in the amounts and in the time frames prescribed by the Code and applicable regulations thereunder and on the taxable income of any of its taxable REIT subsidiaries. | |
Income Taxes of the Operating Partnership | |
As a partnership, the allocated share of income of the Operating Partnership is included in the income tax returns of the general and limited partners. Accordingly, no accounting for income taxes is required in the accompanying consolidated financial statements. The Operating Partnership may be subject to certain state or local taxes on its income and property. | |
The Operating Partnership has formed a taxable REIT subsidiary (the “TRS”) on behalf of the general partner. In general, the TRS may perform non-customary services for tenants, hold assets that the general partner cannot hold directly and, except for the operation or management of health care facilities or lodging facilities or the providing of any person, under a franchise, license or otherwise, rights to any brand name under which any lodging facility or health care facility is operated, may engage in any real estate or non-real estate related business. The TRS is subject to corporate federal income taxes on its taxable income at regular corporate tax rates. There is no tax provision for the TRS for the periods presented in the accompanying consolidated statements of income due to net operating losses incurred. No tax benefits have been recorded since it is not considered more likely than not that the deferred tax asset related to the net operating loss carry-forwards will be utilized. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies | ' |
18. Commitments and Contingencies | |
Litigation: | |
The Company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against it which if determined unfavorably, would have a material effect on its condensed consolidated financial position, results of operations or cash flows. | |
Environmental Matters: | |
The Company follows the policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its condensed consolidated balance sheets, results of operations or cash flows. Further, the Company is not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that it believes would require additional disclosure or the recording of a loss contingency. | |
Other | |
The Company’s other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business. In management’s opinion, these matters are not expected to have a material adverse effect on its condensed consolidated balance sheets, results of operations or cash flows. In addition, the Company expects to incur construction costs relating to development projects on portions of existing operating properties (including the Company’s proportionate share of costs related to the redevelopment of the unconsolidated La Costa Town Center property). |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
19. Fair Value of Financial Instruments | |||||||||||||||||
The Company is required to disclose fair value information relating to financial instruments that are remeasured on a recurring basis and those that are only initially recognized at fair value (not required to be subsequently remeasured). The Company’s disclosures of estimated fair value of financial instruments were determined using available market information and appropriate valuation methods. The use of different assumptions or methods of estimation may have a material effect on the estimated fair value of financial instruments. | |||||||||||||||||
The following table reflects the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis (dollars in thousands): | |||||||||||||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
September 30, | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
2013 | (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||
Fair value measurements on a recurring basis: | |||||||||||||||||
Assets: | |||||||||||||||||
Other assets related to business | $ | 614 | $ | — | $ | — | $ | 614 | |||||||||
combinations(1) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Interest rate swaps (see Note 11) | $ | (144 | ) | $ | — | $ | (144 | ) | $ | — | |||||||
Contingent consideration related to | (205 | ) | $ | — | — | (205 | ) | ||||||||||
business combinations(2) | |||||||||||||||||
Total | $ | (349 | ) | $ | — | $ | (144 | ) | $ | (205 | ) | ||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
2012 | (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||
Fair value measurements on a recurring basis: | |||||||||||||||||
Assets: | |||||||||||||||||
Other assets related to business combinations(1) | $ | 992 | $ | — | $ | — | $ | 992 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swaps (see Note 11) | $ | (620 | ) | $ | — | $ | (620 | ) | $ | — | |||||||
Contingent consideration related to business combinations(2) | (1,787 | ) | $ | — | — | (1,787 | ) | ||||||||||
Derivative instrument related to business combinations (see Note 11)(3) | (274 | ) | — | — | (274 | ) | |||||||||||
Total | $ | (2,681 | ) | $ | — | $ | (620 | ) | $ | (2,061 | ) | ||||||
-1 | Amount reflects the fair value of funds expected to be received pursuant to master lease agreements executed in connection with the Promenade Corporate Center acquisition. The Company has estimated the fair value of the asset based on its expectations of the probability of leasing or releasing spaces within the term of the master lease agreements and corresponding estimates for time required to lease, lease rates and funds required for tenant improvements and lease commissions. This amount has been included in other assets in the accompanying condensed consolidated balance sheets, with subsequent changes in the fair value of the asset recorded as a gain (loss) in earnings in the period in which the change occurs. | ||||||||||||||||
-2 | Additional consideration was potentially due to the prior owners of two properties purchased in 2012 contingent upon their ability to lease-up vacant space at those properties during 2013. The balance of $1.8 million at December 31, 2012 represented the Company’s best estimate of the fair value of funds expected to be paid to the former owners. The earn-out period for one of the two properties expired at June 30, 2013, resulting in a reversal of the contingent liability of approximately $1.6 million based on a short-fall in the expected leasing. At September 30, 2013, a contingent liability with a fair value of approximately $205,000 was due to the previous owner of the other property acquired in 2012 based on the lease-up of vacant space subsequent to the acquisition of the property. The Company recognized a gain of approximately $10,000 in the three months ended September 30, 2013 due to an increase in the actual leasing costs as compared to the initial estimates. The earn-out period expired on September 30, 2013 and the balance of $205,000 was paid in full in October 2013. | ||||||||||||||||
-3 | Amount reflects the fair value of a provision within a purchase agreement that provides a guaranteed redemption value for OP units provided to the sellers of the Edwards Theatres property acquired in March 2011. The Company has estimated the fair value of the embedded derivative instrument using a Monte Carlo valuation model based on the historical volatility and closing price of the Parent Company’s common stock and a risk-free interest rate. This amount is included in accounts payable and other liabilities in the accompanying condensed consolidated balance sheets, with changes in the fair value of the embedded derivative recorded as gain (loss) on changes in fair value of financial instruments and gain on OP unit redemption in the condensed consolidated statements of operations. This embedded derivative instrument expired on March 11, 2013. | ||||||||||||||||
During the period from March 2012 to March 2013, 591,474 OP units were tendered to the Company for redemption, resulting in the issuance of 531,768 shares of common stock and cash payments totaling approximately $1.9 million. The Company has recognized the acquisition of non-controlling interests based on the fair value of shares issuable in connection with the one-for-one redemption right available to all holders of OP units. The Company recognized a loss of approximately $16,000 for the nine months ended September 30, 2013 as a result of the deficit of the fair value of the guarantee over the fair value of the consideration required to settle. The Company recognized gains of approximately $47,000 and $396,000 for the three and nine months ended September 30, 2012, respectively, as a result of the excess of the fair value of the guarantee over the fair value of the consideration required to settle. In total, the Company recognized increases in additional paid-in capital and common stock, par value, of approximately $279,000 and $3.2 million for the nine months ended September 30, 2013 and 2012, respectively. The Company also recognized additional gains of $246,000 and $716,000 in the nine months ended September 30, 2013 and 2012, respectively, as a result of revaluations of the redemption obligation. | |||||||||||||||||
The following table reconciles the beginning and ending balances of financial instruments that are remeasured on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2013 (dollars in thousands): | |||||||||||||||||
Other Assets | Contingent Consideration | Derivative Instruments | |||||||||||||||
Related to Business | Related to Business | Related to Business | |||||||||||||||
Combinations (1) | Combinations (2) | Combinations (3) | |||||||||||||||
Beginning balance, January 1, 2013 | $ | 992 | $ | (1,787 | ) | $ | (274 | ) | |||||||||
Total gains: | |||||||||||||||||
Included in earnings | 6 | 1,562 | 246 | ||||||||||||||
Purchases, issuances, or settlements | (384 | ) | 20 | 28 | |||||||||||||
Ending balance, September 30, 2013 | $ | 614 | $ | (205 | ) | $ | — | ||||||||||
-1 | The change of $378,000 for other assets related to business combinations during the nine months ended September 30, 2013 is comprised of payments received on the master lease assets of $384,000 and an increase in the estimated fair value of funds to be received from escrow of $6,000. | ||||||||||||||||
-2 | The change of $1.6 million for contingent consideration related to business combinations represents the reversal of a contingent liability related to the earn-out for one property as a result of a shortfall in expected leasing of vacant space at the property and a reduction in the contingent liability related to another property as a result of higher leasing costs than originally estimated (recognized as changes in fair value of contingent consideration in the condensed consolidated statements of operations). The remaining earn-out has a fair value of approximately $205,000 based on the funds due to the former owner, which were paid in full in October 2013. | ||||||||||||||||
-3 | The change of $274,000 for derivative instruments related to business combinations during the nine months ended September 30, 2013 is related to changes to the redemption provision for OP units issued in connection with the 2011 Edwards Theatres acquisition as a result of (a) a decrease of $246,000 due to recognition of a gain included in earnings related to changes in the fair value of the redemption obligation and (b) a decrease of $28,000 due to the redemption of corresponding OP units. | ||||||||||||||||
The following table reconciles the beginning and ending balances of financial instruments that are remeasured on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2012 (dollars in thousands): | |||||||||||||||||
Other Assets | Contingent Consideration | Derivative Instruments | |||||||||||||||
Related to Business | Related to Business | Related to Business | |||||||||||||||
Combinations (1) | Combinations (2) | Combinations (3) | |||||||||||||||
Beginning balance, January 1, 2012 | $ | — | $ | (1,613 | ) | $ | (3,050 | ) | |||||||||
Total gains: | |||||||||||||||||
Included in earnings | 121 | — | 1,112 | ||||||||||||||
Purchases, issuances, or settlements | 723 | 1,613 | 796 | ||||||||||||||
Ending balance, September 30, 2012 | $ | 844 | $ | — | $ | (1,142 | ) | ||||||||||
-1 | The change of $844,000 for other assets related to business combinations during the nine months ended September 30, 2012 is comprised of (a) an increase in the master lease asset of $121,000 due to changes in the Company’s initial estimates of the fair value of funds expected to be received from escrow that was included in earnings, (b) the recognition of a master lease asset of $772,000 related to the acquisition of the Promenade Corporate Center property and (c) a decrease in the master lease asset due to payments received in the amount of $49,000. | ||||||||||||||||
-2 | The change of $1.6 million for contingent consideration related to business combinations during the nine months ended September 30, 2012 is comprised of a decrease in the obligation due to the payment of approximately $1.6 million in earn-outs in January 2012. | ||||||||||||||||
-3 | The change of $1.9 million for derivative instruments related to business combinations during the nine months ended September 30, 2012 is related to changes to the redemption provision for OP units issued in connection with the 2011 Edwards Theatres acquisition and is comprised of (a) a decrease of $716,000 due to recognition of a gain related to changes in the fair value of the redemption obligation and a gain of $349,000 resulting from the redemption of OP units and (b) a decrease in the redemption obligation of $796,000 due to the redemption of corresponding OP units. | ||||||||||||||||
There were no additional gains or losses, purchases, sales, issuances, settlements, or transfers in or out related to any of the three levels of the fair value hierarchy during the three months ended September 30, 2013 and 2012. | |||||||||||||||||
The following table provides quantitative disclosure about significant unobservable inputs related to financial assets and liabilities measured on a recurring basis (Level 3 of the fair value hierarchy) as of September 30, 2013: | |||||||||||||||||
Fair Value at | Valuation | Unobservable Input | Range (Weighted | ||||||||||||||
September 30, 2013 | Technique(s) | Average) | |||||||||||||||
Other assets related to business combinations(1) | $ | 614 | Cash flow | Tenant improvement | $ | 12.00/sf - | |||||||||||
allowance | $ | 35.00/sf | |||||||||||||||
Lease commission | 6 | % | |||||||||||||||
TI construction period | 5-Feb | ||||||||||||||||
months | |||||||||||||||||
Contingent consideration related to business combinations(2) | $ | (205 | ) | Cash flow | Tenant improvement | $ | 37.50/sf | ||||||||||
allowance | 6 | % | |||||||||||||||
Lease commission | 2 months | ||||||||||||||||
TI construction period | |||||||||||||||||
-1 | The significant unobservable inputs used in the fair value measurement of the master lease agreement asset are any estimated tenant improvement allowances, leasing commissions and the construction periods associated with projected new leasing. Significant increases (decreases) in any of these inputs in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions. | ||||||||||||||||
-2 | The significant unobservable inputs used in the fair value measurement of the contingent consideration are any estimated tenant improvement allowances, construction periods, leasing commissions and lease rates. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions. | ||||||||||||||||
The Company has not elected the fair value measurement option for any of its other financial assets or liabilities. The Company has estimated the fair value of its financial assets using a discounted cash flow analysis based on an appropriate market rate for a similar type of instrument. The Company has estimated the fair value of its financial liabilities by using either (1) a discounted cash flow analysis using an appropriate market discount rate for similar types of instruments, or (2) a present value model and an interest rate that includes a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt. The fair values of financial instruments not included in this table are estimated to be equal to their carrying amounts. | |||||||||||||||||
The fair values of certain additional financial assets and liabilities at September 30, 2013 and December 31, 2012 (fair value measurements categorized as Level 3 of the fair value hierarchy) are as follows (dollars in thousands): | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Financial assets: | |||||||||||||||||
Note receivable (Other Assets) | $ | 750 | $ | 750 | $ | 750 | $ | 750 | |||||||||
Financial liabilities: | |||||||||||||||||
Mortgage notes payable | 308,365 | 312,834 | 333,935 | 341,288 | |||||||||||||
Notes payable | 193,500 | 193,024 | 75,000 | 74,862 |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
20. Subsequent Events | |
On October 4, 2013, the Company completed the acquisition of a retail center with 38,000 square feet of GLA located in San Diego, California for a contractual purchase price, excluding closing costs, of approximately $14.3 million. The purchase was funded by proceeds from the sale of the Company’s Grant Creek Town Center property in September 2013 (see Note 15). The sole tenant of the retail property is LA Fitness. An allocation of purchase price for the acquisition of the retail property has not yet been performed as the Company is continuing to collect the necessary information. | |
On October 8, 2013, the Operating Partnership entered into the 2013 Amendment, which provided an increase in borrowings available under its credit facility from $250.0 million to $300.0 million, decreased the applicable interest rate and extended the maturity date. The Operating Partnership has the ability from time to time to increase the size of the unsecured revolving credit facility by up to an additional $200.0 million for a total borrowing capacity of $500.0 million, subject to receipt of lender commitments and other conditions precedent. The amended maturity date is April 6, 2018 and may be extended for an additional six months at the Operating Partnership’s option (see Note 8). | |
On October 9, 2013, the Operating Partnership entered into an amendment to its Red Rock Commons construction loan, which decreased the applicable interest rate (see Note 8). | |
On October 14, 2013, the Company entered into a purchase agreement to acquire a retail shopping center with approximately 105,000 square feet of GLA, located in Las Vegas, Nevada for a contractual purchase price, excluding closing costs, of approximately $16.4 million. The purchase of the property is subject to due diligence and other customary closing conditions. |
Segment_Disclosure
Segment Disclosure | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Disclosure | ' | ||||||||||||||||
21. Segment Disclosure | |||||||||||||||||
The Company’s reportable segments consist of the three types of commercial real estate properties for which management internally evaluates operating performance and financial results: Office Properties, Multi-family Properties (new in 2012) and Retail Properties. The Company was formed for the primary purpose of owning and operating Retail Properties. As such, administrative costs are shown under the Retail Properties segment. The Retail Properties operating segment also includes undeveloped land which the Company intends to develop into retail properties. | |||||||||||||||||
The Company evaluates the performance of the operating segments based upon property operating income. “Property Operating Income” is defined as operating revenues (rental revenue and tenant recoveries) less property operating expenses (maintenance and repairs, real estate taxes, management fees, and other operating expenses). The Company also evaluates interest expense, interest income and depreciation and amortization by segment. Corporate general and administrative expense, interest expense related to corporate indebtedness and other non-recurring gains or losses are reflected within the Retail Properties operating segment as this constitutes the Company’s primary business objective and represents the majority of its operations. There is no intersegment activity. | |||||||||||||||||
The following tables reconcile the Company’s segment activity to its condensed consolidated results of operations and financial position for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Office Properties: | |||||||||||||||||
Total revenues | $ | 2,052 | $ | 2,261 | $ | 6,428 | $ | 6,367 | |||||||||
Property operating expenses | (906 | ) | (950 | ) | (2,593 | ) | (2,366 | ) | |||||||||
Property operating income, as defined | 1,146 | 1,311 | 3,835 | 4,001 | |||||||||||||
Changes in fair value of contingent consideration | — | 121 | 6 | 121 | |||||||||||||
General and administrative costs | (9 | ) | (1 | ) | (16 | ) | (98 | ) | |||||||||
Depreciation and amortization | (980 | ) | (973 | ) | (2,832 | ) | (2,822 | ) | |||||||||
Interest expense | (194 | ) | (198 | ) | (579 | ) | (593 | ) | |||||||||
Net income | $ | (37 | ) | $ | 260 | $ | 414 | $ | 609 | ||||||||
Multi-family Properties: | |||||||||||||||||
Total revenues | $ | 1,397 | $ | — | $ | 4,053 | $ | — | |||||||||
Property operating expenses | (675 | ) | — | (1,374 | ) | — | |||||||||||
Property operating income, as defined | 722 | — | 2,679 | — | |||||||||||||
General and administrative costs | 206 | — | (104 | ) | — | ||||||||||||
Depreciation and amortization | (460 | ) | — | (2,298 | ) | — | |||||||||||
Net income (loss) | $ | 468 | $ | — | $ | 277 | $ | — | |||||||||
Retail Properties: | |||||||||||||||||
Total revenues | $ | 25,482 | $ | 18,824 | $ | 72,257 | $ | 53,702 | |||||||||
Property operating expenses | (6,137 | ) | (4,140 | ) | (16,622 | ) | (11,857 | ) | |||||||||
Property operating income, as defined | 19,345 | 14,684 | 55,635 | 41,845 | |||||||||||||
Changes in fair value of contingent consideration | 10 | — | 1,562 | — | |||||||||||||
General and administrative costs | (3,596 | ) | (3,317 | ) | (10,416 | ) | (10,057 | ) | |||||||||
Depreciation and amortization | (10,197 | ) | (7,348 | ) | (29,483 | ) | (21,666 | ) | |||||||||
Interest expense | (4,534 | ) | (3,741 | ) | (13,172 | ) | (10,556 | ) | |||||||||
Interest income | 49 | 19 | 146 | 125 | |||||||||||||
Income (loss) from equity in unconsolidated entities | 12 | (158 | ) | (13 | ) | (158 | ) | ||||||||||
Changes in fair value of financial instruments and gain on OP unit redemption | — | 61 | 230 | 1,112 | |||||||||||||
Income from continuing operations | 1,089 | 200 | 4,489 | 645 | |||||||||||||
Income from discontinued operations | 12,319 | 43 | 12,455 | 39 | |||||||||||||
Net income | $ | 13,408 | $ | 243 | $ | 16,944 | $ | 684 | |||||||||
Total Reportable Segments: | |||||||||||||||||
Total revenues | $ | 28,931 | $ | 21,085 | $ | 82,738 | $ | 60,069 | |||||||||
Property operating expenses | (7,718 | ) | (5,090 | ) | (20,589 | ) | (14,223 | ) | |||||||||
Property operating income, as defined | 21,213 | 15,995 | 62,149 | 45,846 | |||||||||||||
Changes in fair value of contingent consideration | 10 | 121 | 1,568 | 121 | |||||||||||||
General and administrative costs | (3,399 | ) | (3,318 | ) | (10,536 | ) | (10,155 | ) | |||||||||
Depreciation and amortization | (11,637 | ) | (8,321 | ) | (34,613 | ) | (24,488 | ) | |||||||||
Interest expense | (4,728 | ) | (3,939 | ) | (13,751 | ) | (11,149 | ) | |||||||||
Interest income | 49 | 19 | 146 | 125 | |||||||||||||
Loss from equity in unconsolidated entities | 12 | (158 | ) | (13 | ) | (158 | ) | ||||||||||
Changes in fair value of financial instruments and gain on OP unit redemption | — | 61 | 230 | 1,112 | |||||||||||||
Income from continuing operations | 1,520 | 460 | 5,180 | 1,254 | |||||||||||||
Income from discontinued operations | 12,319 | 43 | 12,455 | 39 | |||||||||||||
Net income | $ | 13,839 | $ | 503 | $ | 17,635 | $ | 1,293 | |||||||||
Reconciliation to Condensed Consolidated Net Income Attributable to the Common | |||||||||||||||||
Stockholders (Parent Company): | |||||||||||||||||
Total net income for reportable segments | $ | 13,839 | $ | 503 | $ | 17,635 | $ | 1,293 | |||||||||
Net income attributable to non-controlling interests | (356 | ) | (2 | ) | (489 | ) | 14 | ||||||||||
Net income attributable to Excel Trust, Inc. | $ | 13,483 | $ | 501 | $ | 17,146 | $ | 1,307 | |||||||||
Reconciliation to Condensed Consolidated Net Income Attributable to the Unitholders | |||||||||||||||||
(Operating Partnership): | |||||||||||||||||
Total net income for reportable segments | $ | 13,839 | $ | 503 | $ | 17,635 | $ | 1,293 | |||||||||
Net income attributable to non-controlling interests | (77 | ) | (75 | ) | (249 | ) | (216 | ) | |||||||||
Net income attributable to Excel Trust, L.P. | $ | 13,762 | $ | 428 | $ | 17,386 | $ | 1,077 | |||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets: | |||||||||||||||||
Office Properties: | |||||||||||||||||
Total assets | $ | 67,772 | $ | 70,473 | |||||||||||||
Multi-family Properties: | |||||||||||||||||
Total assets | 71,164 | 72,627 | |||||||||||||||
Retail Properties: | |||||||||||||||||
Total assets | 1,063,186 | 936,154 | |||||||||||||||
Total Reportable Segments & Consolidated Assets: | |||||||||||||||||
Total assets | $ | 1,202,122 | $ | 1,079,254 | |||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation: | |||||||||||||||||
The accompanying condensed consolidated financial statements of the Company include all the accounts of the Company and its subsidiaries. The financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements and have not been audited by independent registered public accountants. | |||||||||||||||||
The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto in the Parent Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and the Operating Partnership’s Registration Statement on Form 10. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements for the interim periods have been made. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents, for which cost approximates fair value, due to their short term maturities. | |||||||||||||||||
Restricted Cash | ' | ||||||||||||||||
Restricted Cash: | |||||||||||||||||
Restricted cash is comprised of impound reserve accounts for property taxes, insurance, capital improvements and tenant improvements. The balance at September 30, 2013 also includes approximately $31.1 million of net proceeds from the disposition of the Grant Creek Town Center property on September 13, 2013 (see Note 15). The sale was classified as an exchange pursuant to section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”); therefore, the funds are restricted as to their usage. The Company subsequently utilized a portion of the funds to provide the purchase price for the acquisition of a retail center property located in San Diego, California on October 4, 2013 (see Note 20). | |||||||||||||||||
Accounts Payable and Other Liabilities | ' | ||||||||||||||||
Accounts Payable and Other Liabilities: | |||||||||||||||||
Included in accounts payable and other liabilities are deferred rents in the amount of $3.5 million and $4.4 million at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition: | |||||||||||||||||
The Company commences revenue recognition on its leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. In determining what constitutes the leased asset, the Company evaluates whether the Company or the lessee is the owner, for accounting purposes, of the tenant improvements. If the Company is the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If the Company concludes that it is not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives, which reduce revenue recognized on a straight-line basis over the remaining non-cancelable term of the respective lease. In these circumstances, the Company begins revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct improvements. The determination of who is the owner, for accounting purposes, of the tenant improvements is highly subjective and determines the nature of the leased asset and when revenue recognition under a lease begins. The Company considers a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include: | |||||||||||||||||
• | whether the lease stipulates how and on what a tenant improvement allowance may be spent; | ||||||||||||||||
• | whether the tenant or landlord retains legal title to the improvements; | ||||||||||||||||
• | the uniqueness of the improvements; | ||||||||||||||||
• | the expected economic life of the tenant improvements relative to the length of the lease; | ||||||||||||||||
• | the responsible party for construction cost overruns; and | ||||||||||||||||
• | who constructs or directs the construction of the improvements. | ||||||||||||||||
Minimum rental revenues are recognized on a straight-line basis over the terms of the related lease. The difference between the amount of cash rent due in a year and the amount recorded as rental income is referred to as the “straight-line rent adjustment.” Rental income increased by $937,000 and $632,000 in the three months ended September 30, 2013 and 2012, respectively, and $2.9 million and $2.0 million in the nine months ended September 30, 2013 and 2012, respectively, due to the straight-line rent adjustment. Percentage rent is recognized after tenant sales have exceeded defined thresholds (if applicable) and was $171,000 and $196,000 for the three months ended September 30, 2013 and 2012, respectively, and $741,000 and $557,000 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Estimated recoveries from certain tenants for their pro rata share of real estate taxes, insurance and other operating expenses are recognized as revenues in the period the applicable expenses are incurred or as specified in the leases. Other tenants pay a fixed rate and these tenant recoveries are recognized as revenue on a straight-line basis over the term of the related leases. | |||||||||||||||||
Property | ' | ||||||||||||||||
Property: | |||||||||||||||||
Costs incurred in connection with the development or construction of properties and improvements are capitalized. Capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes and related costs and other direct costs incurred during the period of development. The Company capitalizes costs on land and buildings under development until construction is substantially complete and the property is held available for occupancy. The determination of when a development project is substantially complete and when capitalization must cease involves a degree of judgment. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of landlord-owned tenant improvements or when the lessee takes possession of the unimproved space for construction of its own improvements, but no later than one year from cessation of major construction activity. The Company ceases capitalization on the portion substantially completed and occupied or held available for occupancy, and capitalizes only those costs associated with any remaining portion under construction. In March 2012, the Company reclassified the majority of construction in progress costs relating to two non-operating properties into the corresponding buildings, site improvements and tenant improvements financial statement line items upon substantial completion of development activities. | |||||||||||||||||
Maintenance and repairs expenses are charged to operations as incurred. Costs for major replacements and betterments, which include HVAC equipment, roofs, parking lots, etc., are capitalized and depreciated over their estimated useful lives. Gains and losses are recognized upon disposal or retirement of the related assets and are reflected in earnings. | |||||||||||||||||
Property is recorded at cost and is depreciated using the straight-line method over the estimated lives of the assets as follows: | |||||||||||||||||
Building and improvements | 15 to 40 years | ||||||||||||||||
Tenant improvements | Shorter of the useful lives or the terms of the related leases | ||||||||||||||||
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed | ' | ||||||||||||||||
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed: | |||||||||||||||||
The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. This assessment considers expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. Such factors include the tenants’ ability to perform their duties and pay rent under the terms of the leases. The determination of recoverability is made based upon the estimated undiscounted future net cash flows, excluding interest expense, expected to result from the long-lived asset’s use and eventual disposition. The Company’s evaluation as to whether impairment may exist, including estimates of future anticipated cash flows, are highly subjective and could differ materially from actual results in future periods. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flows analysis, with the carrying value of the related assets. Although the Company’s strategy is to hold its properties over a long-term period, if the strategy changes or market conditions dictate that the sale of properties at an earlier date would be preferable, a property may be classified as held for sale and an impairment loss may be recognized to reduce the property to the lower of the carrying amount or fair value less cost to sell. There was no impairment recorded for the nine months ended September 30, 2013 or 2012. | |||||||||||||||||
Investments in Equity Securities | ' | ||||||||||||||||
Investments in Partnerships and Limited Liability Companies: | |||||||||||||||||
The Company evaluates its investments in limited liability companies and partnerships to determine whether such entities may be a VIE and, if a VIE, whether the Company is the primary beneficiary. Generally, an entity is determined to be a VIE when either (1) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support provided by any parties or (2) as a group, the holders of the equity investment lack one or more of the essential characteristics of a controlling financial interest. The primary beneficiary is the entity that has both (1) the power to direct matters that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, the Company considers the form of ownership interest, voting interest, the size of the investment (including loans) and the rights of other investors to participate in policy making decisions, to replace or remove the manager and to liquidate or sell the entity. The obligation to absorb losses and the right to receive benefits when a reporting entity is affiliated with a VIE must be based on ownership, contractual, and/or other pecuniary interests in that VIE. | |||||||||||||||||
If the foregoing conditions do not apply, the Company considers whether a general partner or managing member controls a limited partnership or limited liability company. The general partner in a limited partnership or managing member in a limited liability company is presumed to control that limited partnership or limited liability company. The presumption may be overcome if the limited partners or members have either (1) the substantive ability to dissolve the limited partnership or limited liability company or otherwise remove the general partner or managing member without cause or (2) substantive participating rights, which provide the limited partners or members with the ability to effectively participate in significant decisions that would be expected to be made in the ordinary course of the limited partnership’s or limited liability company’s business and thereby preclude the general partner or managing member from exercising unilateral control over the partnership or company. If these criteria are not met and the Company is the general partner or the managing member, as applicable, the Company will consolidate the partnership or limited liability company. | |||||||||||||||||
Investments that are not consolidated, over which the Company exercises significant influence but does not control, are accounted for under the equity method of accounting. These investments are recorded initially at cost and subsequently adjusted for the Company’s portion of earnings or losses and for cash contributions and distributions. Under the equity method of accounting, the Company’s investment is reflected in the consolidated balance sheets and its share of net income or loss is included in the consolidated statements of operations and comprehensive income. | |||||||||||||||||
Share-Based Payments | ' | ||||||||||||||||
Share-Based Payments: | |||||||||||||||||
All share-based payments to employees are recognized in earnings based on their fair value on the date of grant. Through September 30, 2013, the Company has awarded only restricted stock awards under its incentive award plan, which are based on shares of the Parent Company’s common stock. The fair value of equity awards that include only service or performance vesting conditions is determined based on the closing market price of the underlying common stock on the date of grant. The fair value of equity awards that include one or more market vesting conditions is determined based on the use of a widely accepted valuation model. The fair value of equity grants is amortized to general and administrative expense ratably over the requisite service period for awards that include only service vesting conditions and utilizing a graded vesting method (an accelerated vesting method in which the majority of compensation expense is recognized in earlier periods) for awards that include one or more market vesting conditions, adjusted for anticipated forfeitures. | |||||||||||||||||
Purchase Accounting | ' | ||||||||||||||||
Purchase Accounting: | |||||||||||||||||
The Company, with the assistance of independent valuation specialists as needed, records the purchase price of acquired properties as tangible and identified intangible assets and liabilities based on their respective fair values. Tangible assets (building and land) are recorded based upon the Company’s determination of the value of the property as if it were vacant using discounted cash flow models similar to those used by independent appraisers. Factors considered include an estimate of carrying costs during the expected lease-up periods taking into account current market conditions and costs to execute similar leases. The fair value of land is derived from comparable sales of land within the same submarket and/or region. The fair value of buildings and improvements, tenant improvements, site improvements and leasing costs are based upon current market replacement costs and other relevant market rate information. Additionally, the purchase price of the applicable property is recorded as the above- or below-market value of in-place leases, the value of in-place leases and above- or below-market value of debt assumed, as applicable. | |||||||||||||||||
The value recorded as the above- or below-market component of the acquired in-place leases is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between: (1) the contractual amounts to be paid pursuant to the lease over its remaining term, and (2) the Company’s estimate of the amounts that would be paid using fair market rates at the time of acquisition over the remaining term of the lease. The amounts recorded as above-market leases are included in lease intangible assets, net in the Company’s accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term of the acquired leases with each property. The amounts recorded as below-market lease values are included in lease intangible liabilities, net in the Company’s accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term plus any below-market fixed price renewal options of the acquired leases with each property. | |||||||||||||||||
The value recorded as above- or below-market debt is determined based upon the present value of the difference between the cash flow stream of the assumed mortgage and the cash flow stream of a market rate mortgage. The amounts recorded as above- or below-market debt are included in mortgage payables, net in the Company’s accompanying condensed consolidated balance sheets and are amortized to interest expense over the remaining term of the assumed mortgage. | |||||||||||||||||
Tenant receivables | ' | ||||||||||||||||
Tenant receivables: | |||||||||||||||||
Tenant receivables and deferred rent are carried net of the allowances for uncollectible current tenant receivables and deferred rent. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company maintains an allowance for deferred rent receivable arising from the straight-lining of rents. Such allowances are charged to bad debt expense which is included in other operating expenses on the accompanying condensed consolidated statement of operations. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees, current economic conditions and other relevant factors. At September 30, 2013 and December 31, 2012, the Company had $1.3 million and $719,000, respectively, in allowances for uncollectible accounts (including straight-line deferred rent receivables) as determined to be necessary to reduce receivables to the estimate of the amount recoverable. During the three months ended September 30, 2013 and 2012, $517,000 and $100,000, respectively, of receivables were charged to bad debt expense. During the nine months ended September 30, 2013 and 2012, $959,000 and $495,000, respectively, of receivables were charged to bad debt expense. | |||||||||||||||||
Non-controlling Interests | ' | ||||||||||||||||
Non-controlling Interests: | |||||||||||||||||
Non-controlling interests on the consolidated balance sheets of the Parent Company relate to the OP units that are not owned by the Parent Company and the portion of consolidated joint ventures not owned by the Parent Company. The OP units not held by the Parent Company may be redeemed by the Parent Company at the holder’s option for cash. The Parent Company, at its option, may satisfy the redemption obligation with common stock on a one-for-one basis, which has been further evaluated to determine that permanent equity classification on the balance sheet is appropriate. | |||||||||||||||||
In October 2012, the Operating Partnership issued 411,184 OP units in connection with the Company’s acquisition of the West Broad Village property. During the three months ended March 31, 2013, a total of 19,904 OP units related to the Edwards Theatres acquisition were tendered to the Company for redemption, resulting in the issuance of 22,074 shares of common stock by the Parent Company (an equivalent number of OP units were issued by the Operating Partnership to the Parent Company). The OP units were redeemed for common stock on a one-for-one basis, with additional common stock provided as a result of the accompanying additional redemption obligation that guaranteed consideration equal to $14.00 per OP unit on the date of redemption. The remaining additional redemption obligation of $246,000 associated with the Edwards Theatres acquisition expired on March 11, 2013 and was reclassified and recognized as a gain in changes in fair value of financial instruments and gain on OP unit redemption (net of a loss of $16,000 on the OP unit redemption) on the accompanying condensed consolidated financial statements. At September 30, 2013, 172,869 OP units related to the Edwards Theatres acquisition remained outstanding, which continue to be redeemable by the OP unitholders for cash or common stock on a one-for-one basis (the determination of redemption for cash or common stock is at the Parent Company’s option). | |||||||||||||||||
Non-controlling interests on the consolidated balance sheets of the Operating Partnership represent the portion of equity that the Operating Partnership does not own in those entities it consolidates. | |||||||||||||||||
Concentration of Risk | ' | ||||||||||||||||
Concentration of Risk: | |||||||||||||||||
The Company maintains its cash accounts in a number of commercial banks. Accounts at these banks are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At various times during the periods, the Company had deposits in excess of the FDIC insurance limit. | |||||||||||||||||
In the three and nine months ended September 30, 2013 and 2012, no tenant accounted for more than 10% of revenues. | |||||||||||||||||
At September 30, 2013, the Company’s gross real estate assets in the states of California, Arizona, Virginia and Texas represented approximately 25.9%, 18.0%, 14.9% and 11.8% of the Company’s total assets, respectively. At December 31, 2012, the Company’s gross real estate assets in the states of Arizona, California and Virginia represented approximately 16.6%, 16.5% and 14.6% of the Company’s total assets, respectively. For the nine months ended September 30, 2013, the Company’s revenues derived from properties located in the states of California, Arizona, Virginia and Texas represented approximately 22.5%, 18.2%, 11.8% and 11.2% of the Company’s total revenues, respectively. For the nine months ended September 30, 2012, the Company’s revenues derived from properties located in the states of California and Arizona represented approximately 21.3% and 16.8% of the Company’s total revenues, respectively. | |||||||||||||||||
Management Estimates | ' | ||||||||||||||||
Management Estimates: | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||
The Company measures financial instruments and other items at fair value where required under GAAP, but has elected not to measure any additional financial instruments and other items at fair value as permitted under fair value option accounting guidance. | |||||||||||||||||
Fair value measurement is determined 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 (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | |||||||||||||||||
Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||||||||||
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||||||
The Company has used interest rate swaps to manage its interest rate risk (see Note 11). The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. | |||||||||||||||||
Although the Company has determined that the majority of the inputs used to value its derivatives classified as cash flow hedges fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2013, the Company has determined that the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company has determined that its valuations related to derivatives classified as cash flow hedges in their entirety are classified in Level 2 of the fair value hierarchy (see Note 19). | |||||||||||||||||
Changes in the fair value of financial instruments (other than derivative instruments for which an effective hedging relationship exists and available-for-sale securities) are recorded as a charge against earnings in the consolidated statements of operations in the period in which they occur. The Company estimates the fair value of financial instruments at least quarterly based on current facts and circumstances, projected cash flows, quoted market prices and other criteria (primarily utilizing Level 3 inputs). The Company may also utilize the services of independent third-party valuation experts to estimate the fair value of financial instruments, as necessary. | |||||||||||||||||
The Company’s investments in equity securities fall within Level 1 of the fair value hierarchy as the Company utilizes observable market-based inputs, based on the closing trading price of securities as of the balance sheet date, to determine the fair value of the investments. | |||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||
Derivative Instruments: | |||||||||||||||||
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. Specifically, from time to time the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. | |||||||||||||||||
In addition, from time to time the Company may execute agreements in connection with business combinations that include embedded derivative instruments as part of the consideration provided to the sellers of the properties. Although these embedded derivative instruments are not intended as hedges of risks faced by the Company, they can provide additional consideration to the Company’s selling counterparties and may be a key component of negotiations. | |||||||||||||||||
The Company’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 Company 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 Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. | |||||||||||||||||
The Company records all derivative instruments on the consolidated balance sheets at their fair value. In determining the fair value of derivative instruments, the Company also considers the credit risk of its counterparties, which typically constitute larger financial institutions engaged in providing a wide variety of financial services. These financial institutions generally face similar risks regarding changes in market and economic conditions, including, but not limited to, changes in interest rates, exchange rates, equity and commodity pricing and credit spreads. | |||||||||||||||||
Accounting for changes in the fair value of derivative instruments depends on the intended use of the derivative, whether it has been designated as a hedging instrument and whether the hedging relationship has continued to satisfy the criteria to apply hedge accounting. For derivative instruments qualifying as cash flow hedges, the effective portion of changes in the fair value is initially recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in the cash flows of the derivative hedging instrument with the changes in the cash flows of the hedged item or transaction. | |||||||||||||||||
The Company formally documents the hedging relationship for all derivative instruments, has accounted for its interest rate swap agreements as cash flow hedges and does not utilize derivative instruments for trading or speculative purposes. | |||||||||||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Changes in Accumulated Other Comprehensive Loss: | |||||||||||||||||
The following table reflects amounts that were reclassified from accumulated other comprehensive loss and included in earnings for the nine months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||
Parent Company | Operating Partnership | ||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance – January 1 | $ | (572 | ) | $ | (811 | ) | $ | (620 | ) | $ | (872 | ) | |||||
Unrealized loss on interest rate swaps: | |||||||||||||||||
Unrealized losses | (19 | ) | (304 | ) | (19 | ) | (304 | ) | |||||||||
Amount reclassified and recognized in net income(1) | 495 | 484 | 495 | 484 | |||||||||||||
Unrealized gain on investment in equity securities: | |||||||||||||||||
Unrealized gain | — | 85 | — | 85 | |||||||||||||
Amount reclassified and recognized in net income (2) | — | (12 | ) | — | (12 | ) | |||||||||||
Net change in other comprehensive income | 476 | 253 | 476 | 253 | |||||||||||||
Total other comprehensive loss allocable to non-controlling interests | (11 | ) | (9 | ) | — | — | |||||||||||
Balance – September 30 | $ | (107 | ) | $ | (567 | ) | $ | (144 | ) | $ | (619 | ) | |||||
-1 | Amounts reclassified from unrealized loss on derivative instruments are included in interest expense in the condensed consolidated statements of operations (interest expense of $171,000 and $164,000 was recognized in interest expense for the three months ended September 30, 2013 and 2012, respectively – see Note 11). | ||||||||||||||||
-2 | Amounts reclassified from unrealized gain on investments in equity securities are included in other income in the condensed consolidated statements of operations (a gain of $0 and $1,000 was recognized in other income for the three months ended September 30, 2013 and 2012, respectively). | ||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements: | |||||||||||||||||
In July 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). The amendments in this update provide an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. ASU 2012-02 became effective for fiscal years and interim periods beginning after September 15, 2012. The adoption of ASU 2012-02 on January 1, 2013 did not have a material impact on the Company’s condensed consolidated financial position or results of operations. | |||||||||||||||||
In January 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). The amendments in this update require an entity to provide information about the amounts reclassified from accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the income statement or in the notes, significant amounts reclassified from accumulated other comprehensive income by the net income line item. The adoption of ASU 2013-02 on January 1, 2013 did not have a material impact on the Company’s condensed consolidated financial position or results of operations. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Depreciation of Estimated Lives of Assets | ' | ||||||||||||||||
Property is recorded at cost and is depreciated using the straight-line method over the estimated lives of the assets as follows: | |||||||||||||||||
Building and improvements | 15 to 40 years | ||||||||||||||||
Tenant improvements | Shorter of the useful lives or the terms of the related leases | ||||||||||||||||
Reclassified from Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
The following table reflects amounts that were reclassified from accumulated other comprehensive loss and included in earnings for the nine months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||
Parent Company | Operating Partnership | ||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance – January 1 | $ | (572 | ) | $ | (811 | ) | $ | (620 | ) | $ | (872 | ) | |||||
Unrealized loss on interest rate swaps: | |||||||||||||||||
Unrealized losses | (19 | ) | (304 | ) | (19 | ) | (304 | ) | |||||||||
Amount reclassified and recognized in net income(1) | 495 | 484 | 495 | 484 | |||||||||||||
Unrealized gain on investment in equity securities: | |||||||||||||||||
Unrealized gain | — | 85 | — | 85 | |||||||||||||
Amount reclassified and recognized in net income (2) | — | (12 | ) | — | (12 | ) | |||||||||||
Net change in other comprehensive income | 476 | 253 | 476 | 253 | |||||||||||||
Total other comprehensive loss allocable to non-controlling interests | (11 | ) | (9 | ) | — | — | |||||||||||
Balance – September 30 | $ | (107 | ) | $ | (567 | ) | $ | (144 | ) | $ | (619 | ) | |||||
-1 | Amounts reclassified from unrealized loss on derivative instruments are included in interest expense in the condensed consolidated statements of operations (interest expense of $171,000 and $164,000 was recognized in interest expense for the three months ended September 30, 2013 and 2012, respectively – see Note 11). | ||||||||||||||||
-2 | Amounts reclassified from unrealized gain on investments in equity securities are included in other income in the condensed consolidated statements of operations (a gain of $0 and $1,000 was recognized in other income for the three months ended September 30, 2013 and 2012, respectively). |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Pro forma Information | ' | ||||||||||||||||||||||||||||||||
The following unaudited pro forma information for the three and nine months ended September 30, 2013 and 2012 has been prepared to reflect the incremental effect of the properties acquired in 2013 and 2012, as if such acquisitions had occurred on January 1, 2012 and January 1, 2011, respectively (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||
Revenues | $ | 29,556 | $ | 24,581 | $ | 88,492 | $ | 73,235 | |||||||||||||||||||||||||
Net income (loss)(1) | $ | 14,056 | $ | 578 | $ | 18,282 | $ | 1,890 | |||||||||||||||||||||||||
-1 | Pro forma results for the three and nine months ended September 30, 2013 were adjusted to exclude non-recurring acquisition costs of approximately $109,000 and $166,000, respectively, related to the 2013 acquisitions. Pro forma results for the three and nine months ended September 30, 2012 were adjusted to exclude non-recurring acquisition costs of approximately $84,000 and $377,000, respectively, related to the 2012 acquisitions. The pro forma results for the three and nine months ended September 30, 2012 were adjusted to include these costs relating to the 2013 acquisitions. A portion of the 2012 acquisitions were funded with proceeds from the offering of 8.125% Series B Cumulative Redeemable Preferred Stock (“Series B preferred stock”) that closed in January 2012. However, pro forma net income for the three and nine months ended September 30, 2012 is not adjusted for this funding as the assumed Series B preferred stock quarterly dividends of approximately $1.9 million are not included in the determination of net income (included only as a reduction of net income (loss) attributable to the common stockholders). | ||||||||||||||||||||||||||||||||
Acquisitions in 2013 | ' | ||||||||||||||||||||||||||||||||
Schedule of Acquisitions | ' | ||||||||||||||||||||||||||||||||
The Company completed the following property acquisition in the nine months ended September 30, 2013, which were acquired for cash unless specified below (dollars in thousands): | |||||||||||||||||||||||||||||||||
Property | Date Acquired | Location | Debt | ||||||||||||||||||||||||||||||
Assumed | |||||||||||||||||||||||||||||||||
Tracy Pavilion | January 24, 2013 | Tracy, CA | $ | — | |||||||||||||||||||||||||||||
Stadium Center | July 1, 2013 | Manteca, CA | $ | — | |||||||||||||||||||||||||||||
League City Towne Center | August 1, 2013 | League City, TX | $ | — | |||||||||||||||||||||||||||||
Living Spaces-Promenade | August 27, 2013 | Scottsdale, AZ | $ | 7,268 | |||||||||||||||||||||||||||||
Allocation of Purchase Price | ' | ||||||||||||||||||||||||||||||||
The following summary provides an allocation of purchase price for each of the above acquisitions (dollars in thousands): | |||||||||||||||||||||||||||||||||
Building | Land | Above-Market | Below-Market | In-Place | Debt | Other | Purchase | ||||||||||||||||||||||||||
Leases | Leases | Leases | (Premium)/Discount | Price | |||||||||||||||||||||||||||||
Tracy Pavilion | $ | 22,611 | $ | 6,193 | $ | 163 | $ | (1,136 | ) | $ | 2,907 | $ | — | $ | — | $ | 30,738 | ||||||||||||||||
Stadium Center(1) | 28,988 | 10,309 | 931 | (3,197 | ) | 4,119 | — | — | 41,150 | ||||||||||||||||||||||||
League City Towne Center | 24,767 | 10,858 | 315 | (1,249 | ) | 4,809 | — | — | 39,500 | ||||||||||||||||||||||||
Living Spaces-Promenade(2) | 1,038 | 14,514 | — | (116 | ) | 1,500 | (936 | ) | — | 16,000 | |||||||||||||||||||||||
Total | $ | 77,404 | $ | 41,874 | $ | 1,409 | $ | (5,698 | ) | $ | 13,335 | $ | (936 | ) | $ | — | $ | 127,388 | |||||||||||||||
Remaining useful life(3) | 54 | 108 | 75 | 76 | |||||||||||||||||||||||||||||
-1 | As of September 30, 2013, the purchase price allocation related to the acquisition of the Stadium Center property was preliminary and the final purchase price allocation will be determined pending the receipt of information necessary to complete the valuation of assets and liabilities, which may result in a change from the intial estimates. | ||||||||||||||||||||||||||||||||
-2 | On August 27, 2013, the Company acquired a land parcel that was previously not owned at The Promenade retail property in Scottsdale, Arizona (not considered a separate property). The land parcel contains a building, which was constructed by the tenant and is subject to a ground lease. | ||||||||||||||||||||||||||||||||
-3 | Weighted-average remaining useful life (months) for recorded intangible assets and liabilities as of the date of acquisition. | ||||||||||||||||||||||||||||||||
Acquisitions in 2012 | ' | ||||||||||||||||||||||||||||||||
Schedule of Acquisitions | ' | ||||||||||||||||||||||||||||||||
The Company completed the following property acquisitions in the nine months ended September 30, 2012, which were acquired for cash unless specified below (dollars in thousands): | |||||||||||||||||||||||||||||||||
Consolidated Property | Date Acquired | Location | Debt | ||||||||||||||||||||||||||||||
Assumed | |||||||||||||||||||||||||||||||||
Promenade Corporate Center | January 23, 2012 | Scottsdale, AZ | $ | — | |||||||||||||||||||||||||||||
EastChase Market Center | February 17, 2012 | Montgomery, AL | $ | — | |||||||||||||||||||||||||||||
Lake Pleasant Pavilion | 16-May-12 | Peoria, AZ | $ | 28,250 | |||||||||||||||||||||||||||||
Chimney Rock | 31-Aug-12 | Odessa, TX | $ | — | |||||||||||||||||||||||||||||
Unconsolidated Property | Date Acquired | Location | Debt | ||||||||||||||||||||||||||||||
Assumed | |||||||||||||||||||||||||||||||||
La Costa Town Center | 29-Feb-12 | La Costa, CA | $ | — | |||||||||||||||||||||||||||||
Allocation of Purchase Price | ' | ||||||||||||||||||||||||||||||||
The following summary provides an allocation of purchase price for the above acquisitions (dollars in thousands): | |||||||||||||||||||||||||||||||||
Consolidated Property | Building | Land | Above-Market | Below-Market | In-Place | Debt | Other | Purchase | |||||||||||||||||||||||||
Leases | Leases | Leases | (Premium)/Discount | Price | |||||||||||||||||||||||||||||
Promenade Corporate Center(1) | $ | 44,465 | $ | 4,477 | $ | 781 | $ | (749 | ) | $ | 3,279 | $ | — | $ | — | $ | 52,253 | ||||||||||||||||
EastChase Market Center | 19,567 | 4,215 | 360 | (1,296 | ) | 1,804 | — | — | 24,650 | ||||||||||||||||||||||||
Lake Pleasant Pavilion | 28,127 | 9,958 | 2,857 | (184 | ) | 2,412 | (1,420 | ) | — | 41,750 | |||||||||||||||||||||||
Chimney Rock(2) | 14,089 | 7,368 | — | (2,291 | ) | 2,532 | — | 2,106 | 23,804 | ||||||||||||||||||||||||
Total | $ | 106,248 | $ | 26,018 | $ | 3,998 | $ | (4,520 | ) | $ | 10,027 | $ | (1,420 | ) | $ | 2,106 | $ | 142,457 | |||||||||||||||
Unconsolidated Property | Building | Land | Above-Market | Below-Market | In-Place | Debt | Other | Purchase | |||||||||||||||||||||||||
Leases | Leases | Leases | (Premium)/Discount | Price | |||||||||||||||||||||||||||||
La Costa Town Center(3) | $ | 15,054 | $ | 8,383 | $ | 86 | $ | (2,069 | ) | $ | 2,046 | $ | — | $ | — | $ | 23,500 | ||||||||||||||||
Total | $ | 15,054 | $ | 8,383 | $ | 86 | $ | (2,069 | ) | $ | 2,046 | $ | — | $ | — | $ | 23,500 | ||||||||||||||||
-1 | The purchase price of $52.3 million reflects $13.9 million in cash paid and the issuance of 3,230,769 shares of common stock with a fair value of approximately $39.1 million based on a closing price of $12.11 per share on the date of acquisition. The purchase price noted above is net of master lease agreements between the Company and the seller in the amount of $772,000 (included in other assets on the accompanying condensed consolidated balance sheets) based on the estimated fair value of funds expected to be received from escrow in connection with the acquisition. Payments under the master lease agreements commenced upon the expiration of two existing leases in June 2012 and February 2013 (with terms through May 2013 and January 2015, respectively). In addition, the seller has agreed to reimburse the Company for any expenditures resulting from tenant improvements or leasing commissions related to the spaces to the extent that funds remain available pertaining to the master lease agreements. See Note 19 for a discussion of changes in the fair value of this asset after the initial acquisition. | ||||||||||||||||||||||||||||||||
-2 | The purchase price of $23.8 million noted above includes a long-term asset recognized at acquisition with a valuation of approximately $3.0 million (included in other assets) and a long-term liability with a preliminary valuation of approximately $906,000 (included in accounts payable and other liabilities). The long-term asset and the long-term liability reflect the estimated fair value of funds expected to be received pursuant to an economic development agreement executed between the previous owner of the property and the City of Odessa and the portion of such funds that is owed to a third party. As a result of the agreement, the Company is eligible to receive a refund of up to $5.1 million in municipal sales taxes generated by retail sales at the property over a period of up to 15 years. Both the long-term asset and the long-term liability will be accreted to their respective gross balances of $5.1 million and $1.0 million, respectively, over periods of 14 years and three years, respectively. | ||||||||||||||||||||||||||||||||
-3 | This property was originally purchased as a consolidated property. However, in September 2012 the La Costa Town Center property was contributed in exchange for proceeds of approximately $21.2 million to a newly-formed entity in which the Company holds a 20% ownership interest (see Note 14). The Company accounts for its remaining equity ownership in the property in a manner similar to the equity method of accounting, which is reflected in the accompanying condensed consolidated balance sheets as an investment in unconsolidated entities. |
Lease_Intangible_Assets_Net_Ta
Lease Intangible Assets, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Schedule of Lease Intangible Assets | ' | ||||||||
Lease intangible assets, net consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
In-place leases, net of accumulated amortization of $24.9 million and $20.7 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 79 and 82 months as of September 30, 2013 and December 31, 2012, respectively) | $ | 48,276 | $ | 50,666 | |||||
Above-market leases, net of accumulated amortization of $7.0 million and $5.2 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 64 and 70 months as of September 30, 2013 and December 31, 2012, respectively) | 14,119 | 15,888 | |||||||
Leasing commissions, net of accumulated amortization of $6.5 million and $4.9 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 101 and 111 months as of September 30, 2013 and December 31, 2012, respectively) | 17,878 | 19,092 | |||||||
$ | 80,273 | $ | 85,646 | ||||||
Schedule of Estimated Amortization of Lease Intangible Assets | ' | ||||||||
Estimated amortization of lease intangible assets as of September 30, 2013 for each of the next five years and thereafter is as follows (dollars in thousands): | |||||||||
Year Ending December 31, | Amount | ||||||||
2013 (remaining three months) | $ | 4,966 | |||||||
2014 | 17,028 | ||||||||
2015 | 12,228 | ||||||||
2016 | 9,250 | ||||||||
2017 | 8,070 | ||||||||
Thereafter | 28,731 | ||||||||
Total | $ | 80,273 | |||||||
Lease_Intangible_Liabilities_N1
Lease Intangible Liabilities, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Lease Intangible Liabilities Net | ' | ||||||||
Lease intangible liabilities, net consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Below-market leases, net of accumulated amortization of $7.1 million and $5.0 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 123 and 134 months as of September 30, 2013 and December 31, 2012, respectively) | $ | 27,884 | $ | 26,455 | |||||
Estimated Amortization of Lease Intangible Liabilities | ' | ||||||||
Estimated amortization of lease intangible liabilities as of September 30, 2013 for each of the next five years and thereafter is as follows (dollars in thousands): | |||||||||
Year Ending December 31, | Amount | ||||||||
2013 (remaining three months) | $ | 995 | |||||||
2014 | 3,683 | ||||||||
2015 | 3,125 | ||||||||
2016 | 2,754 | ||||||||
2017 | 2,583 | ||||||||
Thereafter | 14,744 | ||||||||
Total | $ | 27,884 | |||||||
Debt_of_the_Operating_Partners1
Debt of the Operating Partnership (Tables) (Excel Trust, L.P.) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Excel Trust, L.P. | ' | ||||||||||||||||||||||||
Schedule of Mortgages Payable | ' | ||||||||||||||||||||||||
Mortgages payable held by the Operating Partnership at September 30, 2013 and December 31, 2012 consist of the following (dollars in thousands): | |||||||||||||||||||||||||
Carrying Amount of | Contractual | Effective | Monthly | Maturity | |||||||||||||||||||||
Mortgage Notes | Interest Rate | Interest Rate | Payment(1) | Date | |||||||||||||||||||||
Property Pledged as Collateral | September 30, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Five Forks Place | $ | — | $ | 4,882 | — | — | $ | — | Jun-13 | ||||||||||||||||
Grant Creek Town Center | — | 15,342 | — | — | — | Jun-13 | |||||||||||||||||||
Park West Place(2) | 55,800 | 55,800 | 2.44 | % | 3.66 | % | 106 | December 2013 | |||||||||||||||||
Edwards Theatres | 11,605 | 11,859 | 6.74 | % | 5.5 | % | 95 | Feb-14 | |||||||||||||||||
Red Rock Commons(3) | 13,970 | 13,800 | 1.84 | % | 1.84 | % | 20 | Mar-14 | |||||||||||||||||
Excel Centre | 12,084 | 12,284 | 6.08 | % | 6.08 | % | 85 | May-14 | |||||||||||||||||
Merchant Central | 4,395 | 4,468 | 5.94 | % | 6.75 | % | 30 | Jul-14 | |||||||||||||||||
Gilroy Crossing | 46,037 | 46,646 | 5.01 | % | 5.01 | % | 263 | Oct-14 | |||||||||||||||||
The Promenade | 48,396 | 49,703 | 4.8 | % | 4.8 | % | 344 | Oct-15 | |||||||||||||||||
5000 South Hulen | 13,481 | 13,655 | 5.6 | % | 6.9 | % | 83 | Apr-17 | |||||||||||||||||
Lake Pleasant Pavilion | 27,933 | 28,176 | 6.09 | % | 5 | % | 143 | Oct-17 | |||||||||||||||||
Rite Aid — Vestavia Hills | 1,058 | 1,184 | 7.25 | % | 7.25 | % | 21 | Oct-18 | |||||||||||||||||
Living Spaces-Promenade(4) | 7,268 | — | 7.88 | % | 4.59 | % | 80 | Nov-19 | |||||||||||||||||
West Broad Village(5) | 39,700 | 50,000 | 3.33 | % | 3.33 | % | 110 | May-20 | |||||||||||||||||
Lowe’s, Shippensburg | 13,248 | 13,511 | 7.2 | % | 7.2 | % | 110 | Oct-31 | |||||||||||||||||
Northside Mall(6) | 12,000 | 12,000 | 0.08 | % | 1.08 | % | 1 | November 2035 | |||||||||||||||||
306,975 | 333,310 | ||||||||||||||||||||||||
Plus: premium(7) | 1,390 | 625 | |||||||||||||||||||||||
Mortgage notes payable, net | $ | 308,365 | $ | 333,935 | |||||||||||||||||||||
-1 | Amount represents the monthly payment of principal and interest at September 30, 2013. | ||||||||||||||||||||||||
-2 | The loan bears interest at a rate of LIBOR plus 2.25% (variable interest rate of 2.44% and 2.50% at September 30, 2013 and December 31, 2012, respectively). In December 2010, the Company entered into interest rate swap contracts, which fix LIBOR at an average of 1.41% for the term of the loan. The maturity date may be extended for an additional one-year period through December 2014 at the Company’s option and upon the satisfaction of conditions precedent and the payment of an extension fee. | ||||||||||||||||||||||||
-3 | The maturity date for the Red Rock Commons construction loan is March 2014, but may be extended for an additional one-year period through March 2015 at the Company’s option and upon the satisfaction of conditions precedent and the payment of an extension fee. As of September 30, 2013, the construction loan bore interest at the rate of LIBOR plus a margin of 165 to 225 basis points, depending on the Company’s leverage ratio (variable interest rate of 1.84% at September 30, 2013 and 2.45% at December 31, 2012). On October 9, 2013, the Company entered into an agreement that lowered the margin to 145 to 205 basis points (if in the future the Parent Company obtains an investment-grade credit rating from S&P, Fitch or Moody’s, the interest rate would be LIBOR plus a margin of 90 to 170 basis points, depending on the Parent Company’s credit rating). | ||||||||||||||||||||||||
-4 | The Company acquired an additional land parcel that it did not previously own at The Promenade retail property in August 2013 and in connection with such acquisition, the Company assumed a mortgage note with a fixed interest rate of 7.88% (see Note 3). | ||||||||||||||||||||||||
-5 | The loan at the West Broad Village property was refinanced in April 2013 and bears a fixed rate of 3.33% with a new maturity date of May 1, 2020. Debt payments are interest-only through May 2016. | ||||||||||||||||||||||||
-6 | The debt represents redevelopment revenue bonds to be used for the redevelopment of this property, which mature in November 2035. Interest is reset weekly and determined by the bond remarketing agent based on the market value of the bonds (interest rate of 0.08% at September 30, 2013 and 0.14% at December 31, 2012). The interest rate on the bonds is currently priced off of the Securities Industry and Financial Markets Association index but could change based on the credit of the bonds. The bonds are secured by a $12.1 million letter of credit issued by the Company from the Company’s unsecured revolving credit facility. An underwriter’s discount related to the original issuance of the bonds with a remaining balance of $106,000 and $110,000 at September 30, 2013 and December 31, 2012, respectively, is being amortized as additional interest expense through November 2035. | ||||||||||||||||||||||||
-7 | Represents (a) the fair value adjustment on assumed debt on acquired properties at the time of acquisition to account for below- or above-market interest rates and (b) an underwriter’s discount for the issuance of redevelopment bonds. | ||||||||||||||||||||||||
Mortgage Debt Maturities | ' | ||||||||||||||||||||||||
The Company’s mortgage debt maturities at September 30, 2013 for each of the next five years and thereafter are as follows (dollars in thousands): | |||||||||||||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||||||||||||
2013 (remaining three months) | $ | 57,094 | |||||||||||||||||||||||
2014 | 91,130 | ||||||||||||||||||||||||
2015 | 47,920 | ||||||||||||||||||||||||
2016 | 2,364 | ||||||||||||||||||||||||
2017 | 41,415 | ||||||||||||||||||||||||
Thereafter | 67,052 | ||||||||||||||||||||||||
$ | 306,975 | ||||||||||||||||||||||||
Earnings_Per_ShareUnit_Tables
Earnings Per Share/Unit (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Computations of Basic and Diluted Earnings Per Share/Unit | ' | ||||||||||||||||
Computations of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 (in thousands, except share data) were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic earnings per share: | |||||||||||||||||
Income from continuing operations | $ | 1,520 | $ | 460 | $ | 5,180 | $ | 1,254 | |||||||||
Preferred dividends | (2,744 | ) | (2,744 | ) | (8,232 | ) | (7,609 | ) | |||||||||
Allocation to participating securities | (109 | ) | (144 | ) | (326 | ) | (432 | ) | |||||||||
Income from continuing operations attributable to non-controlling interests | (108 | ) | (8 | ) | (260 | ) | 7 | ||||||||||
Income (loss) from continuing operations applicable to the common stockholders | $ | (1,441 | ) | $ | (2,436 | ) | $ | (3,638 | ) | $ | (6,780 | ) | |||||
Net income (loss) attributable to the common stockholders | $ | 10,739 | $ | (2,243 | ) | $ | 8,914 | $ | (6,302 | ) | |||||||
Allocation to participating securities | (143 | ) | (144 | ) | (326 | ) | (432 | ) | |||||||||
Net income (loss) applicable to the common stockholders | $ | 10,596 | $ | (2,387 | ) | $ | 8,588 | $ | (6,734 | ) | |||||||
Weighted-average common shares outstanding: | |||||||||||||||||
Basic and diluted | 47,496,811 | 33,293,772 | 46,674,386 | 32,616,052 | |||||||||||||
Basic and diluted earnings per share: | |||||||||||||||||
Income (loss) from continuing operations per share attributable to the common stockholders | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.21 | ) | |||||
Income from discontinued operations per share attributable to the common stockholders | 0.25 | — | 0.26 | — | |||||||||||||
Net income (loss) per share attributable to the common stockholders | $ | 0.22 | $ | (0.07 | ) | $ | 0.18 | $ | (0.21 | ) | |||||||
Excel Trust, L.P. | ' | ||||||||||||||||
Computations of Basic and Diluted Earnings Per Share/Unit | ' | ||||||||||||||||
Computations of basic and diluted earnings per unit for the three and nine months ended September 30, 2013 and 2012 (in thousands, except share data) were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic earnings per unit: | |||||||||||||||||
Income from continuing operations | $ | 1,520 | $ | 460 | $ | 5,180 | $ | 1,254 | |||||||||
Preferred distributions | (2,744 | ) | (2,744 | ) | (8,232 | ) | (7,609 | ) | |||||||||
Allocation to participating securities | (109 | ) | (144 | ) | (326 | ) | (432 | ) | |||||||||
Income from continuing operations attributable to non-controlling interests | (77 | ) | (75 | ) | (249 | ) | (216 | ) | |||||||||
Income (loss) from continuing operations applicable to the unitholders | $ | (1,410 | ) | $ | (2,503 | ) | $ | (3,627 | ) | $ | (7,003 | ) | |||||
Net income (loss) attributable to the unitholders | $ | 11,018 | $ | (2,316 | ) | $ | 9,154 | $ | (6,532 | ) | |||||||
Allocation to participating securities | (109 | ) | (144 | ) | (326 | ) | (432 | ) | |||||||||
Net income (loss) applicable to the unitholders | $ | 10,909 | $ | (2,460 | ) | $ | 8,828 | $ | (6,964 | ) | |||||||
Weighted-average common OP units outstanding: | |||||||||||||||||
Basic and diluted | 48,721,926 | 34,350,666 | 47,904,824 | 33,833,784 | |||||||||||||
Basic and diluted earnings per unit: | |||||||||||||||||
Income (loss) from continuing operations per unit attributable to the unitholders | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.21 | ) | |||||
Income from discontinued operations per unit attributable to the unitholders | 0.25 | — | 0.26 | — | |||||||||||||
Net income (loss) per unit attributable to the unitholders | $ | 0.22 | $ | (0.07 | ) | $ | 0.18 | $ | (0.21 | ) | |||||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Schedule of Outstanding Interest Rate Swaps and Other Derivatives Instruments | ' | ||||||||||||||||||
As of September 30, 2013, the Company had the following outstanding interest rate swaps and other derivatives instruments (dollars in thousands): | |||||||||||||||||||
Fair Value(1) | Current Notional | Strike Rate | Expiration Date | ||||||||||||||||
Type of Derivative Instrument | September 30, | December 31, | Amount | ||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Interest rate swaps(2) | $ | 144 | $ | 620 | $ | 55,800 | 1.34% to 1.48% | December 2013 | |||||||||||
Other derivative instrument(3) | — | 274 | Mar-13 | ||||||||||||||||
Total derivative instruments | $ | 144 | $ | 894 | |||||||||||||||
-1 | Fair value of derivative instruments does not include any related accrued interest payable to the counterparty. | ||||||||||||||||||
-2 | The interest rate swaps are classified within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets. | ||||||||||||||||||
-3 | The Company’s purchase agreement executed in connection with the acquisition of the Edwards Theatres property in March 2011 contained a provision determined to be an embedded derivative instrument. The embedded derivative provided a guaranteed fair value for the OP units provided to the sellers of the property if redeemed for shares of the Parent Company’s common stock or cash, at the Company’s election, prior to its expiration in March 2013. The fair value of the embedded derivative at each period was calculated through the use of a Monte Carlo valuation model based on the historical volatility and closing price of the Parent Company’s common stock and a risk-free interest rate (see Note 19 for discussion of changes in the fair value of this derivative). The embedded derivative was classified within accounts payable and other liabilities in the accompanying condensed consolidated balance sheets. | ||||||||||||||||||
Effect of Company's Derivative Financial Instruments on Consolidated Statements of Operations | ' | ||||||||||||||||||
The tables below present the effect of the Company’s derivative financial instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Amount of unrealized loss recognized in OCI (effective portion): | |||||||||||||||||||
Interest rate swaps | $ | (7 | ) | $ | (92 | ) | $ | (19 | ) | $ | (304 | ) | |||||||
Other derivatives | — | — | — | — | |||||||||||||||
Total | $ | (7 | ) | $ | (92 | ) | $ | (19 | ) | $ | (304 | ) | |||||||
Amount of loss reclassified from accumulated OCI into income (effective portion): | |||||||||||||||||||
Interest rate swaps (interest expense) | $ | (171 | ) | $ | (164 | ) | $ | (495 | ) | $ | (484 | ) | |||||||
Other derivatives | — | — | — | — | |||||||||||||||
Total | $ | (171 | ) | $ | (164 | ) | $ | (495 | ) | $ | (484 | ) | |||||||
Amount of gain recognized in income (ineffective portion and amount excluded from effectiveness testing): | |||||||||||||||||||
Interest rate swaps (other income/expense) | $ | — | $ | — | $ | — | $ | — | |||||||||||
Other derivatives (changes in fair value of financial instruments and gain on OP unit redemption) | — | 61 | 230 | 1,112 | |||||||||||||||
Total | $ | — | $ | 61 | $ | 230 | $ | 1,112 | |||||||||||
Equity_of_the_Parent_Company_T
Equity of the Parent Company (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Shares of Restricted Common Stock | ' | ||||||||||||
The following shares of restricted common stock were issued during the nine months ended September 30, 2013: | |||||||||||||
Grant Date | Price at Grant | Number | Vesting | ||||||||||
Date | Period (yrs.) | ||||||||||||
March 6, 2013(1) | $ | 13.43 | 41,500 | 4 | |||||||||
May 7, 2013(2) | $ | 15.11 | 10,588 | 1 | |||||||||
June 7, 2013(2) | $ | 13.36 | 1,000 | 4 | |||||||||
-1 | Shares issued to certain of the Company’s employees. These shares vest over four years with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments thereafter. | ||||||||||||
-2 | Shares issued to members of the Company’s board of directors. These shares vest in equal quarterly installments. | ||||||||||||
Non-Vested Shares of Company's Restricted Common Stock | ' | ||||||||||||
As of September 30, 2013 and December 31, 2012, there was approximately $2.1 million and $3.4 million, respectively, of total unrecognized compensation expense related to the non-vested shares of the Parent Company’s restricted common stock. As of September 30, 2013 and December 31, 2012, this expense was expected to be recognized over a weighted-average remaining period of 1.3 and 2.0 years, respectively. | |||||||||||||
Number of Unvested | Weighted | ||||||||||||
Shares of | Average Grant | ||||||||||||
Restricted | Date Fair Value | ||||||||||||
Common Stock | |||||||||||||
Balance - January 1, 2013 | 701,396 | $ | 10.02 | ||||||||||
Grants | 53,088 | $ | 13.76 | ||||||||||
Forfeitures | (20,000 | ) | $ | 13.43 | |||||||||
Vested | (94,376 | ) | $ | 12.47 | |||||||||
Balance - September 30, 2013 | 640,108 | $ | 9.86 | ||||||||||
Equity_of_the_Operating_Partne1
Equity of the Operating Partnership (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Vested Ownership Interests in Operating Partnership | ' | ||||||||||||||||
The following table shows the vested partnership interests in the Operating Partnership as of September 30, 2013 and December 31, 2012: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
OP | Percentage | OP | Percentage | ||||||||||||||
Units | of Total | Units | of Total | ||||||||||||||
Excel Trust, Inc. | 47,532,665 | 97.5 | % | 44,204,287 | 97.3 | % | |||||||||||
Non-controlling interests consisting of: | |||||||||||||||||
OP units held by employees and third parties | 1,225,115 | 2.5 | % | 1,245,019 | 2.7 | % | |||||||||||
Total | 48,757,780 | 100 | % | 45,449,306 | 100 | % | |||||||||||
Investment_in_Unconsolidated_E1
Investment in Unconsolidated Entities (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Summary of Unconsolidated Investment | ' | ||||||||||||
General information on the La Costa LLC and Bay Hill properties as of September 30, 2013 was as follows: | |||||||||||||
Unconsolidated Investment | Partner | Ownership Interest | Formation/ | Property | |||||||||
Acquisition Date | |||||||||||||
La Costa LLC(1) | GEM | 20 | % | September 7, 2012 | La Costa Town Center | ||||||||
Bay Hill(2) | MDC | 50 | % | October 19, 2012 | The Fountains at Bay Hill | ||||||||
(1) | At September 30, 2013, La Costa LLC had real estate assets of $23.4 million, total assets of $25.1 million, mortgages payable of $14.1 million and total liabilities of $15.1 million. At December 31, 2012, La Costa LLC had real estate assets of $23.4 million, total assets of $26.3 million, mortgages payable of $14.1 million and total liabilities of $16.0 million. For the three months ended September 30, 2013, total revenues were $430,000, total expenses were $798,000 (including interest expense) and net loss was $368,000. For the nine months ended September 30, 2013, total revenues were $2.7 million, total expenses were $3.3 million (including interest expense) and net loss was $632,000. The mortgage note was assumed with the contribution of the property. Total revenues were $165,000, total expenses were $955,000 (including interest expense) and net loss was $790,000 for both the three and nine months ended September 30, 2012 (representing only a partial month of operating activity after the contribution of the property on September 7, 2012) . The mortgage note bears interest at the rate of LIBOR plus a margin of 575 basis points (5.9% at September 30, 2013 and 6.0% at December 31, 2012). The mortgage note has a maturity date of October 1, 2014, which may be extended for three additional one-year periods at La Costa LLC’s election and upon the satisfaction of certain conditions (including the payment of an extension fee upon the exercise of the 2nd and 3rd renewal options, execution of an interest rate cap and the establishment of certain reserve accounts). La Costa LLC has also entered into an interest rate cap related to the mortgage note, which limits LIBOR to a maximum of 3.0% and expires on October 1, 2014. | ||||||||||||
(2) | At September 30, 2013 and December 31, 2012, there were $23.5 million and $23.9 million, respectively, in outstanding borrowings on the mortgage note assumed with the acquisition of the Bay Hill property. The mortgage note bears interest at the rate of LIBOR plus a margin of 325 basis points (3.4% at September 30, 2013 and 3.5% at December 31, 2012). The mortgage note has a maturity date of April 2, 2015, which may be extended for two additional one-year periods at the borrower’s election and upon the satisfaction of certain conditions. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
On July 19, 2013, the Company completed the disposition of the Walgreens property, located in North Corbin, Kentucky, for a sales price of approximately $4.5 million, excluding closing costs. On September 13, 2013, the Company completed the disposition of the Grant Creek Town Center property, located in Missoula, Montana, for a sales price of approximately $32.3 million, excluding closing costs. The Grant Creek Town Center property sale was classified as an exchange pursuant to section 1031 of the Code; therefore, the funds are restricted as to their usage and are reflected as restricted cash on the accompany condensed consolidated balance sheets. The Company subsequently utilized a portion of the funds to provide the purchase price for the acquisition of a retail center property located in San Diego, California on October 4, 2013 (see Note 20). | |||||||||||||||||
Both properties were part of the retail properties segment – see Note 21. The following table provides information regarding the disposition of the properties: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Property | Sales Price | Gain on Sale | Date of Sale | Acquisition Date | |||||||||||||
Walgreens — North Corbin | $ | 4,514 | $ | 1,129 | 7/19/13 | 5/24/10 | |||||||||||
Grant Creek Town Center | $ | 32,343 | $ | 10,845 | 9/13/13 | 8/27/10 | |||||||||||
The results of operations for the properties are reported as discontinued operations for all periods presented in the accompanying condensed consolidated statements of operations. The following table summarizes the revenue and expense components that comprise income from discontinued operations (dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | $ | 559 | $ | 668 | $ | 1,815 | $ | 1,992 | |||||||||
Total expenses | 214 | 625 | 1,334 | 1,953 | |||||||||||||
Income before non-controlling interests and | 345 | 43 | 481 | 39 | |||||||||||||
gain on sale of real estate assets | |||||||||||||||||
Gain on sale of real estate assets | 11,974 | — | 11,974 | — | |||||||||||||
Non-controlling interest in discontinued operations(1) | (248 | ) | 6 | (229 | ) | 7 | |||||||||||
Income from discontinued operations available to the common stockholders | $ | 12,071 | $ | 49 | $ | 12,226 | $ | 46 | |||||||||
(1) | Amounts represent the portion of non-controlling interest related to OP units not held by the Parent Company that would be attributable to discontinued operations (no amounts would be allocable with respect to the consolidated financial statements of the Operating Partnership). |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table reflects the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis (dollars in thousands): | |||||||||||||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
September 30, | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
2013 | (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||
Fair value measurements on a recurring basis: | |||||||||||||||||
Assets: | |||||||||||||||||
Other assets related to business | $ | 614 | $ | — | $ | — | $ | 614 | |||||||||
combinations(1) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Interest rate swaps (see Note 11) | $ | (144 | ) | $ | — | $ | (144 | ) | $ | — | |||||||
Contingent consideration related to | (205 | ) | $ | — | — | (205 | ) | ||||||||||
business combinations(2) | |||||||||||||||||
Total | $ | (349 | ) | $ | — | $ | (144 | ) | $ | (205 | ) | ||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
2012 | (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||
Fair value measurements on a recurring basis: | |||||||||||||||||
Assets: | |||||||||||||||||
Other assets related to business combinations(1) | $ | 992 | $ | — | $ | — | $ | 992 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swaps (see Note 11) | $ | (620 | ) | $ | — | $ | (620 | ) | $ | — | |||||||
Contingent consideration related to business combinations(2) | (1,787 | ) | $ | — | — | (1,787 | ) | ||||||||||
Derivative instrument related to business combinations (see Note 11)(3) | (274 | ) | — | — | (274 | ) | |||||||||||
Total | $ | (2,681 | ) | $ | — | $ | (620 | ) | $ | (2,061 | ) | ||||||
-1 | Amount reflects the fair value of funds expected to be received pursuant to master lease agreements executed in connection with the Promenade Corporate Center acquisition. The Company has estimated the fair value of the asset based on its expectations of the probability of leasing or releasing spaces within the term of the master lease agreements and corresponding estimates for time required to lease, lease rates and funds required for tenant improvements and lease commissions. This amount has been included in other assets in the accompanying condensed consolidated balance sheets, with subsequent changes in the fair value of the asset recorded as a gain (loss) in earnings in the period in which the change occurs. | ||||||||||||||||
-2 | Additional consideration was potentially due to the prior owners of two properties purchased in 2012 contingent upon their ability to lease-up vacant space at those properties during 2013. The balance of $1.8 million at December 31, 2012 represented the Company’s best estimate of the fair value of funds expected to be paid to the former owners. The earn-out period for one of the two properties expired at June 30, 2013, resulting in a reversal of the contingent liability of approximately $1.6 million based on a short-fall in the expected leasing. At September 30, 2013, a contingent liability with a fair value of approximately $205,000 was due to the previous owner of the other property acquired in 2012 based on the lease-up of vacant space subsequent to the acquisition of the property. The Company recognized a gain of approximately $10,000 in the three months ended September 30, 2013 due to an increase in the actual leasing costs as compared to the initial estimates. The earn-out period expired on September 30, 2013 and the balance of $205,000 was paid in full in October 2013. | ||||||||||||||||
-3 | Amount reflects the fair value of a provision within a purchase agreement that provides a guaranteed redemption value for OP units provided to the sellers of the Edwards Theatres property acquired in March 2011. The Company has estimated the fair value of the embedded derivative instrument using a Monte Carlo valuation model based on the historical volatility and closing price of the Parent Company’s common stock and a risk-free interest rate. This amount is included in accounts payable and other liabilities in the accompanying condensed consolidated balance sheets, with changes in the fair value of the embedded derivative recorded as gain (loss) on changes in fair value of financial instruments and gain on OP unit redemption in the condensed consolidated statements of operations. This embedded derivative instrument expired on March 11, 2013. | ||||||||||||||||
Statement of Reconciliation of Financial Instruments Remeasured on Recurring Basis | ' | ||||||||||||||||
The following table reconciles the beginning and ending balances of financial instruments that are remeasured on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2013 (dollars in thousands): | |||||||||||||||||
Other Assets | Contingent Consideration | Derivative Instruments | |||||||||||||||
Related to Business | Related to Business | Related to Business | |||||||||||||||
Combinations (1) | Combinations (2) | Combinations (3) | |||||||||||||||
Beginning balance, January 1, 2013 | $ | 992 | $ | (1,787 | ) | $ | (274 | ) | |||||||||
Total gains: | |||||||||||||||||
Included in earnings | 6 | 1,562 | 246 | ||||||||||||||
Purchases, issuances, or settlements | (384 | ) | 20 | 28 | |||||||||||||
Ending balance, September 30, 2013 | $ | 614 | $ | (205 | ) | $ | — | ||||||||||
-1 | The change of $378,000 for other assets related to business combinations during the nine months ended September 30, 2013 is comprised of payments received on the master lease assets of $384,000 and an increase in the estimated fair value of funds to be received from escrow of $6,000. | ||||||||||||||||
-2 | The change of $1.6 million for contingent consideration related to business combinations represents the reversal of a contingent liability related to the earn-out for one property as a result of a shortfall in expected leasing of vacant space at the property and a reduction in the contingent liability related to another property as a result of higher leasing costs than originally estimated (recognized as changes in fair value of contingent consideration in the condensed consolidated statements of operations). The remaining earn-out has a fair value of approximately $205,000 based on the funds due to the former owner, which were paid in full in October 2013. | ||||||||||||||||
-3 | The change of $274,000 for derivative instruments related to business combinations during the nine months ended September 30, 2013 is related to changes to the redemption provision for OP units issued in connection with the 2011 Edwards Theatres acquisition as a result of (a) a decrease of $246,000 due to recognition of a gain included in earnings related to changes in the fair value of the redemption obligation and (b) a decrease of $28,000 due to the redemption of corresponding OP units. | ||||||||||||||||
The following table reconciles the beginning and ending balances of financial instruments that are remeasured on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2012 (dollars in thousands): | |||||||||||||||||
Other Assets | Contingent Consideration | Derivative Instruments | |||||||||||||||
Related to Business | Related to Business | Related to Business | |||||||||||||||
Combinations (1) | Combinations (2) | Combinations (3) | |||||||||||||||
Beginning balance, January 1, 2012 | $ | — | $ | (1,613 | ) | $ | (3,050 | ) | |||||||||
Total gains: | |||||||||||||||||
Included in earnings | 121 | — | 1,112 | ||||||||||||||
Purchases, issuances, or settlements | 723 | 1,613 | 796 | ||||||||||||||
Ending balance, September 30, 2012 | $ | 844 | $ | — | $ | (1,142 | ) | ||||||||||
-1 | The change of $844,000 for other assets related to business combinations during the nine months ended September 30, 2012 is comprised of (a) an increase in the master lease asset of $121,000 due to changes in the Company’s initial estimates of the fair value of funds expected to be received from escrow that was included in earnings, (b) the recognition of a master lease asset of $772,000 related to the acquisition of the Promenade Corporate Center property and (c) a decrease in the master lease asset due to payments received in the amount of $49,000. | ||||||||||||||||
-2 | The change of $1.6 million for contingent consideration related to business combinations during the nine months ended September 30, 2012 is comprised of a decrease in the obligation due to the payment of approximately $1.6 million in earn-outs in January 2012. | ||||||||||||||||
-3 | The change of $1.9 million for derivative instruments related to business combinations during the nine months ended September 30, 2012 is related to changes to the redemption provision for OP units issued in connection with the 2011 Edwards Theatres acquisition and is comprised of (a) a decrease of $716,000 due to recognition of a gain related to changes in the fair value of the redemption obligation and a gain of $349,000 resulting from the redemption of OP units and (b) a decrease in the redemption obligation of $796,000 due to the redemption of corresponding OP units. | ||||||||||||||||
Quantitative Disclosure of Significant Unobservable Inputs Relating to Financial Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
The following table provides quantitative disclosure about significant unobservable inputs related to financial assets and liabilities measured on a recurring basis (Level 3 of the fair value hierarchy) as of September 30, 2013: | |||||||||||||||||
Fair Value at | Valuation | Unobservable Input | Range (Weighted | ||||||||||||||
September 30, 2013 | Technique(s) | Average) | |||||||||||||||
Other assets related to business combinations(1) | $ | 614 | Cash flow | Tenant improvement | $ | 12.00/sf - | |||||||||||
allowance | $ | 35.00/sf | |||||||||||||||
Lease commission | 6 | % | |||||||||||||||
TI construction period | 5-Feb | ||||||||||||||||
months | |||||||||||||||||
Contingent consideration related to business combinations(2) | $ | (205 | ) | Cash flow | Tenant improvement | $ | 37.50/sf | ||||||||||
allowance | 6 | % | |||||||||||||||
Lease commission | 2 months | ||||||||||||||||
TI construction period | |||||||||||||||||
-1 | The significant unobservable inputs used in the fair value measurement of the master lease agreement asset are any estimated tenant improvement allowances, leasing commissions and the construction periods associated with projected new leasing. Significant increases (decreases) in any of these inputs in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions. | ||||||||||||||||
-2 | The significant unobservable inputs used in the fair value measurement of the contingent consideration are any estimated tenant improvement allowances, construction periods, leasing commissions and lease rates. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions. | ||||||||||||||||
Fair Values of Certain Additional Financial Assets and Liabilities | ' | ||||||||||||||||
The fair values of certain additional financial assets and liabilities at September 30, 2013 and December 31, 2012 (fair value measurements categorized as Level 3 of the fair value hierarchy) are as follows (dollars in thousands): | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Financial assets: | |||||||||||||||||
Note receivable (Other Assets) | $ | 750 | $ | 750 | $ | 750 | $ | 750 | |||||||||
Financial liabilities: | |||||||||||||||||
Mortgage notes payable | 308,365 | 312,834 | 333,935 | 341,288 | |||||||||||||
Notes payable | 193,500 | 193,024 | 75,000 | 74,862 |
Segment_Disclosure_Tables
Segment Disclosure (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Reconciliation of Company's Segment Operations Activity | ' | ||||||||||||||||
The following tables reconcile the Company’s segment activity to its condensed consolidated results of operations and financial position for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Office Properties: | |||||||||||||||||
Total revenues | $ | 2,052 | $ | 2,261 | $ | 6,428 | $ | 6,367 | |||||||||
Property operating expenses | (906 | ) | (950 | ) | (2,593 | ) | (2,366 | ) | |||||||||
Property operating income, as defined | 1,146 | 1,311 | 3,835 | 4,001 | |||||||||||||
Changes in fair value of contingent consideration | — | 121 | 6 | 121 | |||||||||||||
General and administrative costs | (9 | ) | (1 | ) | (16 | ) | (98 | ) | |||||||||
Depreciation and amortization | (980 | ) | (973 | ) | (2,832 | ) | (2,822 | ) | |||||||||
Interest expense | (194 | ) | (198 | ) | (579 | ) | (593 | ) | |||||||||
Net income | $ | (37 | ) | $ | 260 | $ | 414 | $ | 609 | ||||||||
Multi-family Properties: | |||||||||||||||||
Total revenues | $ | 1,397 | $ | — | $ | 4,053 | $ | — | |||||||||
Property operating expenses | (675 | ) | — | (1,374 | ) | — | |||||||||||
Property operating income, as defined | 722 | — | 2,679 | — | |||||||||||||
General and administrative costs | 206 | — | (104 | ) | — | ||||||||||||
Depreciation and amortization | (460 | ) | — | (2,298 | ) | — | |||||||||||
Net income (loss) | $ | 468 | $ | — | $ | 277 | $ | — | |||||||||
Retail Properties: | |||||||||||||||||
Total revenues | $ | 25,482 | $ | 18,824 | $ | 72,257 | $ | 53,702 | |||||||||
Property operating expenses | (6,137 | ) | (4,140 | ) | (16,622 | ) | (11,857 | ) | |||||||||
Property operating income, as defined | 19,345 | 14,684 | 55,635 | 41,845 | |||||||||||||
Changes in fair value of contingent consideration | 10 | — | 1,562 | — | |||||||||||||
General and administrative costs | (3,596 | ) | (3,317 | ) | (10,416 | ) | (10,057 | ) | |||||||||
Depreciation and amortization | (10,197 | ) | (7,348 | ) | (29,483 | ) | (21,666 | ) | |||||||||
Interest expense | (4,534 | ) | (3,741 | ) | (13,172 | ) | (10,556 | ) | |||||||||
Interest income | 49 | 19 | 146 | 125 | |||||||||||||
Income (loss) from equity in unconsolidated entities | 12 | (158 | ) | (13 | ) | (158 | ) | ||||||||||
Changes in fair value of financial instruments and gain on OP unit redemption | — | 61 | 230 | 1,112 | |||||||||||||
Income from continuing operations | 1,089 | 200 | 4,489 | 645 | |||||||||||||
Income from discontinued operations | 12,319 | 43 | 12,455 | 39 | |||||||||||||
Net income | $ | 13,408 | $ | 243 | $ | 16,944 | $ | 684 | |||||||||
Total Reportable Segments: | |||||||||||||||||
Total revenues | $ | 28,931 | $ | 21,085 | $ | 82,738 | $ | 60,069 | |||||||||
Property operating expenses | (7,718 | ) | (5,090 | ) | (20,589 | ) | (14,223 | ) | |||||||||
Property operating income, as defined | 21,213 | 15,995 | 62,149 | 45,846 | |||||||||||||
Changes in fair value of contingent consideration | 10 | 121 | 1,568 | 121 | |||||||||||||
General and administrative costs | (3,399 | ) | (3,318 | ) | (10,536 | ) | (10,155 | ) | |||||||||
Depreciation and amortization | (11,637 | ) | (8,321 | ) | (34,613 | ) | (24,488 | ) | |||||||||
Interest expense | (4,728 | ) | (3,939 | ) | (13,751 | ) | (11,149 | ) | |||||||||
Interest income | 49 | 19 | 146 | 125 | |||||||||||||
Loss from equity in unconsolidated entities | 12 | (158 | ) | (13 | ) | (158 | ) | ||||||||||
Changes in fair value of financial instruments and gain on OP unit redemption | — | 61 | 230 | 1,112 | |||||||||||||
Income from continuing operations | 1,520 | 460 | 5,180 | 1,254 | |||||||||||||
Income from discontinued operations | 12,319 | 43 | 12,455 | 39 | |||||||||||||
Net income | $ | 13,839 | $ | 503 | $ | 17,635 | $ | 1,293 | |||||||||
Reconciliation to Condensed Consolidated Net Income Attributable to the Common | |||||||||||||||||
Stockholders (Parent Company): | |||||||||||||||||
Total net income for reportable segments | $ | 13,839 | $ | 503 | $ | 17,635 | $ | 1,293 | |||||||||
Net income attributable to non-controlling interests | (356 | ) | (2 | ) | (489 | ) | 14 | ||||||||||
Net income attributable to Excel Trust, Inc. | $ | 13,483 | $ | 501 | $ | 17,146 | $ | 1,307 | |||||||||
Reconciliation to Condensed Consolidated Net Income Attributable to the Unitholders | |||||||||||||||||
(Operating Partnership): | |||||||||||||||||
Total net income for reportable segments | $ | 13,839 | $ | 503 | $ | 17,635 | $ | 1,293 | |||||||||
Net income attributable to non-controlling interests | (77 | ) | (75 | ) | (249 | ) | (216 | ) | |||||||||
Net income attributable to Excel Trust, L.P. | $ | 13,762 | $ | 428 | $ | 17,386 | $ | 1,077 | |||||||||
Reconciliation of Company's Segment Financial Position Activity | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets: | |||||||||||||||||
Office Properties: | |||||||||||||||||
Total assets | $ | 67,772 | $ | 70,473 | |||||||||||||
Multi-family Properties: | |||||||||||||||||
Total assets | 71,164 | 72,627 | |||||||||||||||
Retail Properties: | |||||||||||||||||
Total assets | 1,063,186 | 936,154 | |||||||||||||||
Total Reportable Segments & Consolidated Assets: | |||||||||||||||||
Total assets | $ | 1,202,122 | $ | 1,079,254 | |||||||||||||
Organization_Additional_Inform
Organization - Additional Information (Detail) (Excel Trust, L.P.) | 9 Months Ended |
Sep. 30, 2013 | |
Excel Trust, Inc. | ' |
Percentage of ownership interest | 97.50% |
Limited Partners | ' |
Percentage of ownership interest | 2.50% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | |
Revenue | Revenue | Revenue | Revenue | Edwards Theatres property | California | California | California | Arizona | Arizona | Arizona | Richmond, Virginia | Richmond, Virginia | Texas | West Broad Village | Maximum | |||||||
Real Estate | Real Estate | Real Estate | Real Estate | Real Estate | Real Estate | Real Estate | Real Estate | Real Estate | ||||||||||||||
Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | ||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Highly liquid investments, maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months |
Disposition of assets | $31,100,000 | ' | $31,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred rents | 3,500,000 | ' | 3,500,000 | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in Rental income | 937,000 | 632,000 | 2,900,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Straight-line rent adjustment | 171,000 | 196,000 | 741,000 | 557,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowances for uncollectible accounts | 1,300,000 | ' | 1,300,000 | ' | ' | 719,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bad debt expense | 517,000 | 100,000 | 959,000 | 495,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of OP units issued in connection with acquisition | ' | ' | ' | ' | 591,474 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 411,184 | ' |
OP units tendered for redemption | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,904 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with redemption shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,074 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OP units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 172,869 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration Per OP unit | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional gains due to changes in fair value of financial instruments and gain on OP unit redemption | ' | ' | 246,000 | 716,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on OP unit redemption | ' | ' | 16,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee by Federal deposit insurance corporation | $250,000 | ' | $250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | 10.00% | ' | 16.60% | 25.90% | ' | 16.50% | 18.00% | ' | 14.60% | 14.90% | 11.80% | ' | ' |
Concentration risk percentage of revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22.50% | 21.30% | ' | 18.20% | 16.80% | ' | 11.80% | 11.20% | ' | ' |
Schedule_of_Estimated_Lives_of
Schedule of Estimated Lives of Assets (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' |
Tenant improvements | 'Shorter of the useful lives or the terms of the related leases |
Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Building and improvements | '40 years |
Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Building and improvements | '15 years |
Amount_Reclassified_from_Accum
Amount Reclassified from Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Beginning Balance | ' | ' | ($572) | ' | ||
Unrealized gain | ' | -30 | ' | 73 | ||
Unrealized losses | 163 | 72 | 476 | 180 | ||
Ending Balance | -107 | ' | -107 | ' | ||
Excel Trust, Inc. | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Beginning Balance | ' | ' | -572 | -811 | ||
Net change in other comprehensive income | ' | ' | 476 | 253 | ||
Total other comprehensive loss allocable to non-controlling interests | ' | ' | -11 | -9 | ||
Ending Balance | -107 | -567 | -107 | -567 | ||
Excel Trust, Inc. | Interest Rate Swaps | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Unrealized losses | ' | ' | -19 | -304 | ||
Amount reclassified and recognized in net income | ' | ' | 495 | [1] | 484 | [1] |
Excel Trust, Inc. | Available-for-sale Securities | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Unrealized gain | ' | ' | ' | 85 | ||
Amount reclassified and recognized in net income | ' | ' | ' | -12 | [2] | |
Excel Trust, L.P. | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Beginning Balance | ' | ' | -620 | -872 | ||
Unrealized gain | ' | -30 | ' | 73 | ||
Unrealized losses | 163 | 72 | 476 | 180 | ||
Net change in other comprehensive income | ' | ' | 476 | 253 | ||
Ending Balance | -144 | -619 | -144 | -619 | ||
Excel Trust, L.P. | Interest Rate Swaps | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Unrealized losses | ' | ' | -19 | -304 | ||
Amount reclassified and recognized in net income | ' | ' | 495 | [1] | 484 | [1] |
Excel Trust, L.P. | Available-for-sale Securities | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Unrealized gain | ' | ' | ' | 85 | ||
Amount reclassified and recognized in net income | ' | ' | ' | ($12) | [2] | |
[1] | Amounts reclassified from unrealized loss on derivative instruments are included in interest expense in the condensed consolidated statements of operations (interest expense of $171,000 and $164,000 was recognized in interest expense for the three months ended September 30, 2013 and 2012, respectively - see Note 11). | |||||
[2] | Amounts reclassified from unrealized gain on investments in equity securities are included in other income in the condensed consolidated statements of operations (a gain of $0 and $1,000 was recognized in other income for the three months ended September 30, 2013 and 2012, respectively). |
Amount_Reclassified_from_Accum1
Amount Reclassified from Accumulated Other Comprehensive Loss (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Intrest expense | $4,728 | $3,939 | $13,751 | $11,149 |
Other income | 353 | 285 | 954 | 972 |
Gains Losses Recognized | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Intrest expense | 171 | 164 | ' | ' |
Other income | $0 | $1 | ' | ' |
Acquisitions_Detail
Acquisitions (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Business Acquisition [Line Items] | ' | ' | |
Debt Assumed | $8,204 | $29,670 | |
Tracy Pavilion | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | 'Tracy Pavilion | ' | |
Date Acquired | 24-Jan-13 | ' | |
Location | 'Tracy, CA | ' | |
Stadium Center | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | 'Stadium Center | ' | |
Date Acquired | 1-Jul-13 | ' | |
Location | 'Manteca, CA | ' | |
League City Towne Center | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | 'League City Towne Center | ' | |
Date Acquired | 1-Aug-13 | ' | |
Location | 'League City, TX | ' | |
Living Spaces-Promenade | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | 'Living Spaces-Promenade | [1] | ' |
Date Acquired | 27-Aug-13 | [1] | ' |
Location | 'Scottsdale, AZ | [1] | ' |
Debt Assumed | 7,268 | [1] | ' |
Promenade Corporate Center | Consolidated Properties | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | ' | 'Promenade Corporate Center | |
Date Acquired | ' | 23-Jan-12 | |
Location | ' | 'Scottsdale, AZ | |
EastChase Market Center | Consolidated Properties | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | ' | 'EastChase Market Center | |
Date Acquired | ' | 17-Feb-12 | |
Location | ' | 'Montgomery, AL | |
Lake Pleasant Pavilion | Consolidated Properties | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | ' | 'Lake Pleasant Pavilion | |
Date Acquired | ' | 16-May-12 | |
Location | ' | 'Peoria, AZ | |
Debt Assumed | ' | $28,250 | |
Chimney Rock | Consolidated Properties | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | ' | 'Chimney Rock | |
Date Acquired | ' | 31-Aug-12 | |
Location | ' | 'Odessa, TX | |
La Costa Town Center | Unconsolidated Properties | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Property | ' | 'La Costa Town Center | |
Date Acquired | ' | 29-Feb-12 | |
Location | ' | 'La Costa, CA | |
[1] | On August 27, 2013, the Company acquired a land parcel that was previously not owned at The Promenade retail property in Scottsdale, Arizona (not considered a separate property). The land parcel contains a building, which was constructed by the tenant and is subject to a ground lease. |
Allocation_of_Purchase_Price_D
Allocation of Purchase Price (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | |||||||||
In Thousands, unless otherwise specified | In-Place Leases | In-Place Leases | Tracy Pavilion | Stadium Center | League City Towne Center | Purchase Price At Acquisitions | Purchase Price At Acquisitions | Purchase Price At Acquisitions | Purchase Price At Acquisitions | Living Spaces-Promenade | Consolidated Properties | Consolidated Properties | Consolidated Properties | Consolidated Properties | Consolidated Properties | Consolidated Properties | Unconsolidated Properties | Unconsolidated Properties | ||||||||||
Above Market Leases | In-Place Leases | Debt Discount | Promenade Corporate Center | Promenade Corporate Center | EastChase Market Center | Lake Pleasant Pavilion | Chimney Rock | La Costa Town Center | ||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Building | $77,404 | ' | ' | $22,611 | $28,988 | [1] | $24,767 | ' | ' | ' | ' | $1,038 | [2] | $106,248 | ' | $44,465 | [3] | $19,567 | $28,127 | $14,089 | [4] | $15,054 | $15,054 | [5] | ||||
Land | 41,874 | ' | ' | 6,193 | 10,309 | [1] | 10,858 | ' | ' | ' | ' | 14,514 | [2] | 26,018 | ' | 4,477 | [3] | 4,215 | 9,958 | 7,368 | [4] | 8,383 | 8,383 | [5] | ||||
Above Market Leases | 1,409 | ' | ' | 163 | 931 | [1] | 315 | ' | ' | ' | ' | ' | 3,998 | ' | 781 | [3] | 360 | 2,857 | ' | 86 | 86 | [5] | ||||||
Below Market Leases | -5,698 | ' | ' | -1,136 | -3,197 | [1] | -1,249 | ' | ' | ' | ' | -116 | [2] | -4,520 | ' | -749 | [3] | -1,296 | -184 | -2,291 | [4] | -2,069 | -2,069 | [5] | ||||
In-Place Leases | 13,335 | ' | ' | 2,907 | 4,119 | [1] | 4,809 | ' | ' | ' | ' | 1,500 | [2] | 10,027 | ' | 3,279 | [3] | 1,804 | 2,412 | 2,532 | [4] | 2,046 | 2,046 | [5] | ||||
Debt (Premium)/ Discount | -936 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -936 | [2] | -1,420 | ' | ' | ' | -1,420 | ' | ' | ' | ||||||||
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,106 | ' | ' | ' | ' | 2,106 | [4] | ' | ' | ||||||||
Purchase Price | $127,388 | ' | ' | $30,738 | $41,150 | [1] | $39,500 | ' | ' | ' | ' | $16,000 | [2] | $142,457 | $52,253 | $52,253 | [3] | $24,650 | $41,750 | $23,804 | [4] | $23,500 | $23,500 | [5] | ||||
Remaining useful life | ' | '79 months | '82 months | ' | ' | ' | ' | '54 months | [6] | '75 months | [6] | '76 months | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Below market lease, useful life | ' | ' | ' | ' | ' | ' | '108 months | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | As of September 30, 2013, the purchase price allocation related to the acquisition of the Stadium Center property was preliminary and the final purchase price allocation will be determined pending the receipt of information necessary to complete the valuation of assets and liabilities, which may result in a change from the intial estimates. | |||||||||||||||||||||||||||
[2] | On August 27, 2013, the Company acquired a land parcel that was previously not owned at The Promenade retail property in Scottsdale, Arizona (not considered a separate property). The land parcel contains a building, which was constructed by the tenant and is subject to a ground lease. | |||||||||||||||||||||||||||
[3] | The purchase price of $52.3 million reflects $13.9 million in cash paid and the issuance of 3,230,769 shares of common stock with a fair value of approximately $39.1 million based on a closing price of $12.11 per share on the date of acquisition. The purchase price noted above is net of master lease agreements between the Company and the seller in the amount of $772,000 (included in other assets on the accompanying condensed consolidated balance sheets) based on the estimated fair value of funds expected to be received from escrow in connection with the acquisition. Payments under the master lease agreements commenced upon the expiration of two existing leases in June 2012 and February 2013 (with terms through May 2013 and January 2015, respectively). In addition, the seller has agreed to reimburse the Company for any expenditures resulting from tenant improvements or leasing commissions related to the spaces to the extent that funds remain available pertaining to the master lease agreements. See Note 19 for a discussion of changes in the fair value of this asset after the initial acquisition. | |||||||||||||||||||||||||||
[4] | The purchase price of $23.8 million noted above includes a long-term asset recognized at acquisition with a valuation of approximately $3.0 million (included in other assets) and a long-term liability with a preliminary valuation of approximately $906,000 (included in accounts payable and other liabilities). The long-term asset and the long-term liability reflect the estimated fair value of funds expected to be received pursuant to an economic development agreement executed between the previous owner of the property and the City of Odessa and the portion of such funds that is owed to a third party. As a result of the agreement, the Company is eligible to receive a refund of up to $5.1 million in municipal sales taxes generated by retail sales at the property over a period of up to 15 years. Both the long-term asset and the long-term liability will be accreted to their respective gross balances of $5.1 million and $1.0 million, respectively, over periods of 14 years and three years, respectively. | |||||||||||||||||||||||||||
[5] | This property was originally purchased as a consolidated property. However, in September 2012 the La Costa Town Center property was contributed in exchange for proceeds of approximately $21.2 million to a newly-formed entity in which the Company holds a 20% ownership interest (see Note 14). The Company accounts for its remaining equity ownership in the property in a manner similar to the equity method of accounting, which is reflected in the accompanying condensed consolidated balance sheets as an investment in unconsolidated entities. | |||||||||||||||||||||||||||
[6] | Weighted-average remaining useful life (months) for recorded intangible assets and liabilities as of the date of acquisition. |
Allocation_of_Purchase_Price_P
Allocation of Purchase Price (Parenthetical) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 07, 2012 | Sep. 30, 2013 | |||
Consolidated Properties | Promenade Corporate Center | Promenade Corporate Center | La Costa LLC | La Costa LLC | ||||||
Consolidated Properties | Consolidated Properties | |||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||
Purchase Price | $127,388,000 | ' | ' | $142,457,000 | $52,253,000 | $52,253,000 | [1] | ' | ' | |
Cash paid to purchase entity | ' | ' | ' | ' | 13,900,000 | ' | 21,200,000 | ' | ||
Issuance of common stock for acquisition shares | ' | ' | 591,474 | ' | 3,230,769 | ' | ' | ' | ||
Fair value of the common stock related to acquisition | ' | ' | ' | ' | 39,100,000 | ' | ' | ' | ||
Closing price of shares on date of acquisition | ' | ' | ' | ' | $12.11 | ' | ' | ' | ||
Assets received in connection with property acquisitions | ' | 3,784,000 | ' | ' | 772,000 | ' | ' | ' | ||
Purchase price of net of a long term Assets | 23,804,000 | ' | ' | ' | ' | ' | ' | ' | ||
Fair value of funds of other assets | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Asset recognized along with a corresponding long-term liability | 906,000 | ' | ' | ' | ' | ' | ' | ' | ||
Refund in Municipal Sales Taxes | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ||
Period of Retail Sales | '15 years | ' | ' | ' | ' | ' | ' | ' | ||
Gross Balance of long term asset | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ||
Gross Balance of long term liability | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Period of gross balance of long term asset | '14 years | ' | ' | ' | ' | ' | ' | ' | ||
Period of Gross Balance of long term liability | '3 years | ' | ' | ' | ' | ' | ' | ' | ||
Percentage of ownership interest | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | [2] | |
[1] | The purchase price of $52.3 million reflects $13.9 million in cash paid and the issuance of 3,230,769 shares of common stock with a fair value of approximately $39.1 million based on a closing price of $12.11 per share on the date of acquisition. The purchase price noted above is net of master lease agreements between the Company and the seller in the amount of $772,000 (included in other assets on the accompanying condensed consolidated balance sheets) based on the estimated fair value of funds expected to be received from escrow in connection with the acquisition. Payments under the master lease agreements commenced upon the expiration of two existing leases in June 2012 and February 2013 (with terms through May 2013 and January 2015, respectively). In addition, the seller has agreed to reimburse the Company for any expenditures resulting from tenant improvements or leasing commissions related to the spaces to the extent that funds remain available pertaining to the master lease agreements. See Note 19 for a discussion of changes in the fair value of this asset after the initial acquisition. | |||||||||
[2] | At September 30, 2013, La Costa LLC had real estate assets of $23.4 million, total assets of $25.1 million, mortgages payable of $14.1 million and total liabilities of $15.1 million. At December 31, 2012, La Costa LLC had real estate assets of $23.4 million, total assets of $26.3 million, mortgages payable of $14.1 million and total liabilities of $16.0 million. For the three months ended September 30, 2013, total revenues were $430,000, total expenses were $798,000 (including interest expense) and net loss was $368,000. For the nine months ended September 30, 2013, total revenues were $2.7 million, total expenses were $3.3 million (including interest expense) and net loss was $632,000. The mortgage note was assumed with the contribution of the property. Total revenues were $165,000, total expenses were $955,000 (including interest expense) and net loss was $790,000 for both the three and nine months ended September 30, 2012 (representing only a partial month of operating activity after the contribution of the property on September 7, 2012) . The mortgage note bears interest at the rate of LIBOR plus a margin of 575 basis points (5.9% at September 30, 2013 and 6.0% at December 31, 2012). The mortgage note has a maturity date of October 1, 2014, which may be extended for three additional one-year periods at La Costa LLC's election and upon the satisfaction of certain conditions (including the payment of an extension fee upon the exercise of the 2nd and 3rd renewal options, execution of an interest rate cap and the establishment of certain reserve accounts). La Costa LLC has also entered into an interest rate cap related to the mortgage note, which limits LIBOR to a maximum of 3.0% and expires on October 1, 2014. |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Revenues | $2,600,000 | $3,600,000 | $3,900,000 | $8,400,000 |
Net (loss)/income | 414,000 | 153,000 | 401,000 | 413,000 |
A credit at closing for common area maintenance expenses | ' | ' | $450,000 | ' |
Pro_Forma_Information_Detail
Pro Forma Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ||||
Revenues | $29,556 | $24,581 | $88,492 | $73,235 | ||||
Net income (loss) | $14,056 | [1] | $578 | [1] | $18,282 | [1] | $1,890 | [1] |
[1] | Pro forma results for the three and nine months ended September 30, 2013 were adjusted to exclude non-recurring acquisition costs of approximately $109,000 and $166,000, respectively, related to the 2013 acquisitions. Pro forma results for the three and nine months ended September 30, 2012 were adjusted to exclude non-recurring acquisition costs of approximately $84,000 and $377,000, respectively, related to the 2012 acquisitions. The pro forma results for the three and nine months ended September 30, 2012 were adjusted to include these costs relating to the 2013 acquisitions. A portion of the 2012 acquisitions were funded with proceeds from the offering of 8.125% Series B Cumulative Redeemable Preferred Stock ("Series B preferred stock") that closed in January 2012. However, pro forma net income for the three and nine months ended September 30, 2012 is not adjusted for this funding as the assumed Series B preferred stock quarterly dividends of approximately $1.9 million are not included in the determination of net income (included only as a reduction of net income (loss) attributable to the common stockholders). |
Pro_Forma_Information_Parenthe
Pro Forma Information (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Nonrecurring Acquisition Cost | $109,000 | $84,000 | $166,000 | $377,000 |
8.125% Series B cumulative redeemable preferred stock | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Preferred stock, dividend rate, percentage | 8.13% | ' | 8.13% | ' |
Series B preferred stock quarterly dividend | ' | $1,900,000 | ' | $1,900,000 |
Lease_Intangible_Assets_Net_De
Lease Intangible Assets Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Lease intangibles, net | $80,273 | $85,646 |
In-Place Leases | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Lease intangibles, net | 48,276 | 50,666 |
Above Market Leases | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Lease intangibles, net | 14,119 | 15,888 |
Leasing Commissions | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Lease intangibles, net | $17,878 | $19,092 |
Lease_Intangible_Assets_Net_Pa
Lease Intangible Assets Net (Parenthetical) (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
In-Place Leases | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Net of accumulated amortization for lease intangible assets | $24.90 | $20.70 |
Weighted average remaining life of lease intangible assets (in months) | '79 months | '82 months |
Above Market Leases | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Net of accumulated amortization for lease intangible assets | 7 | 5.2 |
Weighted average remaining life of lease intangible assets (in months) | '64 months | '70 months |
Leasing Commissions | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Net of accumulated amortization for lease intangible assets | $6.50 | $4.90 |
Weighted average remaining life of lease intangible assets (in months) | '101 months | '111 months |
Estimated_Amortization_of_Leas
Estimated Amortization of Lease Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Expected Amortization Expense [Line Items] | ' | ' |
2013 (remaining three months) | $4,966 | ' |
2014 | 17,028 | ' |
2015 | 12,228 | ' |
2016 | 9,250 | ' |
2017 | 8,070 | ' |
Thereafter | 28,731 | ' |
Total | $80,273 | $85,646 |
Lease_Intangible_Assets_Net_Ad
Lease Intangible Assets Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense recorded on the lease intangible assets | ' | ' | $205 | ($12) |
Leasing Commissions | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense recorded on the lease intangible assets | 5,500 | 4,600 | 18,300 | 14,100 |
Above Market Leases | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense recorded on the lease intangible assets | $1,000 | $902 | $3,600 | $2,500 |
Lease_Intangible_Liabilities_N2
Lease Intangible Liabilities Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Lease Intangible Liabilities, Net [Line Items] | ' | ' |
Below-market leases, net of accumulated amortization of $7.1 million and $5.0 million as of September 30, 2013 and December 31, 2012, respectively (with a weighted average remaining life of 123 and 134 months as of September 30, 2013 and December 31, 2012, respectively) | $27,884 | $26,455 |
Lease_Intangible_Liabilities_N3
Lease Intangible Liabilities Net (Parenthetical) (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Lease Intangible Liabilities, Net [Line Items] | ' | ' |
Accumulated amortization of lease intangible liabilities | $7.10 | $5 |
Weighted average remaining life of lease intangible liabilities (in months) | '123 months | '134 months |
Lease_Intangible_Liabilities_N4
Lease Intangible Liabilities Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Lease Intangible Assets, Net [Line Items] | ' | ' | ' | ' |
Amortization of Lease Intangible Liabilities | $1,100,000 | $744,000 | $3,400,000 | $2,500,000 |
Estimated_Amortization_of_Leas1
Estimated Amortization of Lease Intangible Liabilities (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Estimated Amortization Expense for Intangible Assets and Unfavorable Lease Liability [Line Items] | ' | ' |
2013 (remaining three months) | $995 | ' |
2014 | 3,683 | ' |
2015 | 3,125 | ' |
2016 | 2,754 | ' |
2017 | 2,583 | ' |
Thereafter | 14,744 | ' |
Total | $27,884 | $26,455 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 09, 2010 |
sqft | |||
Variable Interest Entity [Line Items] | ' | ' | ' |
Joint venture ownership percentage | 50.00% | ' | ' |
Gross lease able area | 171,670 | ' | ' |
Total carrying amount of assets | $15.60 | $15.90 | ' |
Real estate assets | 13.4 | 13.6 | ' |
Total carrying amount of liabilities | 14.3 | 14.3 | ' |
Loan to unaffiliated borrower | ' | ' | $2 |
Mortgage_Loan_and_Note_Receiva1
Mortgage Loan and Note Receivable - Additional Information (Detail) (USD $) | 1 Months Ended | ||
Oct. 31, 2012 | Jun. 30, 2012 | Dec. 09, 2010 | |
sqft | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Mortgage loan receivable | ' | ' | $2,000,000 |
Area of retail shopping center acquired | 68,000 | ' | ' |
Purchase price of net of a long term Assets | 13,100,000 | ' | ' |
Amount of note receivable to an affiliate | ' | $750,000 | ' |
Interest rate for the note receivable | ' | 10.00% | ' |
Maturity date | ' | 'June 2014 | ' |
Mortgages_Payable_Net_Detail
Mortgages Payable Net (Detail) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Debt Instrument [Line Items] | ' | ' | ||
Mortgage notes payable, net | $308,365 | $333,935 | ||
Excel Trust, L.P. | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 306,975 | 333,310 | ||
Plus: (discount)/premium | 1,390 | [1] | 625 | [1] |
Mortgage notes payable, net | 308,365 | 333,935 | ||
Excel Trust, L.P. | Living Spaces-Promenade | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 7,268 | [2] | ' | |
Contractual Interest Rate | 7.88% | [2] | ' | |
Effective Interest Rate | 4.59% | [2] | ' | |
Monthly Payment | 80 | [2],[3] | ' | |
Maturity Date | '2019-11 | [2] | ' | |
Excel Trust, L.P. | Five Forks Place | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | ' | 4,882 | ||
Maturity Date | '2013-06 | ' | ||
Excel Trust, L.P. | Grant Creek Town Center | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | ' | 15,342 | ||
Maturity Date | '2013-06 | ' | ||
Excel Trust, L.P. | Park West Place | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 55,800 | [4] | 55,800 | [4] |
Contractual Interest Rate | 2.44% | [4] | ' | |
Effective Interest Rate | 3.66% | [4] | ' | |
Monthly Payment | 106 | [3],[4] | ' | |
Maturity Date | '2013-12 | [4] | ' | |
Excel Trust, L.P. | Edwards Theatres | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 11,605 | 11,859 | ||
Contractual Interest Rate | 6.74% | ' | ||
Effective Interest Rate | 5.50% | ' | ||
Monthly Payment | 95 | [3] | ' | |
Maturity Date | '2014-02 | ' | ||
Excel Trust, L.P. | Red Rock Commons | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 13,970 | [5] | 13,800 | [5] |
Contractual Interest Rate | 1.84% | [5] | ' | |
Effective Interest Rate | 1.84% | [5] | ' | |
Monthly Payment | 20 | [3],[5] | ' | |
Maturity Date | '2014-03 | [5] | ' | |
Excel Trust, L.P. | Excel Centre | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 12,084 | 12,284 | ||
Contractual Interest Rate | 6.08% | ' | ||
Effective Interest Rate | 6.08% | ' | ||
Monthly Payment | 85 | [3] | ' | |
Maturity Date | '2014-05 | ' | ||
Excel Trust, L.P. | Merchant Central | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 4,395 | 4,468 | ||
Contractual Interest Rate | 5.94% | ' | ||
Effective Interest Rate | 6.75% | ' | ||
Monthly Payment | 30 | [3] | ' | |
Maturity Date | '2014-07 | ' | ||
Excel Trust, L.P. | Gilroy Crossing | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 46,037 | 46,646 | ||
Contractual Interest Rate | 5.01% | ' | ||
Effective Interest Rate | 5.01% | ' | ||
Monthly Payment | 263 | [3] | ' | |
Maturity Date | '2014-10 | ' | ||
Excel Trust, L.P. | Promenade Corporate Center | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 48,396 | 49,703 | ||
Contractual Interest Rate | 4.80% | ' | ||
Effective Interest Rate | 4.80% | ' | ||
Monthly Payment | 344 | [3] | ' | |
Maturity Date | '2015-10 | ' | ||
Excel Trust, L.P. | 5000 South Hulen | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 13,481 | 13,655 | ||
Contractual Interest Rate | 5.60% | ' | ||
Effective Interest Rate | 6.90% | ' | ||
Monthly Payment | 83 | [3] | ' | |
Maturity Date | '2017-04 | ' | ||
Excel Trust, L.P. | Lake Pleasant Pavilion | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 27,933 | 28,176 | ||
Contractual Interest Rate | 6.09% | ' | ||
Effective Interest Rate | 5.00% | ' | ||
Monthly Payment | 143 | [3] | ' | |
Maturity Date | '2017-10 | ' | ||
Excel Trust, L.P. | Rite Aid - Vestavia Hills | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 1,058 | 1,184 | ||
Contractual Interest Rate | 7.25% | ' | ||
Effective Interest Rate | 7.25% | ' | ||
Monthly Payment | 21 | [3] | ' | |
Maturity Date | '2018-10 | ' | ||
Excel Trust, L.P. | West Broad Village | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 39,700 | [6] | 50,000 | [6] |
Contractual Interest Rate | 3.33% | [6] | ' | |
Effective Interest Rate | 3.33% | [6] | ' | |
Monthly Payment | 110 | [3],[6] | ' | |
Maturity Date | '2020-05 | [6] | ' | |
Excel Trust, L.P. | Lowe's, Shippensburg | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 13,248 | 13,511 | ||
Contractual Interest Rate | 7.20% | ' | ||
Effective Interest Rate | 7.20% | ' | ||
Monthly Payment | 110 | [3] | ' | |
Maturity Date | '2031-10 | ' | ||
Excel Trust, L.P. | Northside Mall | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying Amount of Mortgage Notes | 12,000 | [7] | 12,000 | [7] |
Contractual Interest Rate | 0.08% | [7] | ' | |
Effective Interest Rate | 1.08% | [7] | ' | |
Monthly Payment | $1 | [3],[7] | ' | |
Maturity Date | '2035-11 | [7] | ' | |
[1] | Represents (a) the fair value adjustment on assumed debt on acquired properties at the time of acquisition to account for below- or above-market interest rates and (b) an underwriter's discount for the issuance of redevelopment bonds. | |||
[2] | The Company acquired an additional land parcel that it did not previously own at The Promenade retail property in August 2013 and in connection with such acquisition, the Company assumed a mortgage note with a fixed interest rate of 7.88% (see Note 3). | |||
[3] | Amount represents the monthly payment of principal and interest at September 30, 2013. | |||
[4] | The loan bears interest at a rate of LIBOR plus 2.25% (variable interest rate of 2.44% and 2.50% at September 30, 2013 and December 31, 2012, respectively). In December 2010, the Company entered into interest rate swap contracts, which fix LIBOR at an average of 1.41% for the term of the loan. The maturity date may be extended for an additional one-year period through December 2014 at the Company's option and upon the satisfaction of conditions precedent and the payment of an extension fee. | |||
[5] | The maturity date for the Red Rock Commons construction loan is March 2014, but may be extended for an additional one-year period through March 2015 at the Company's option and upon the satisfaction of conditions precedent and the payment of an extension fee. As of September 30, 2013, the construction loan bore interest at the rate of LIBOR plus a margin of 165 to 225 basis points, depending on the Company's leverage ratio (variable interest rate of 1.84% at September 30, 2013 and 2.45% at December 31, 2012). On October 9, 2013, the Company entered into an agreement that lowered the margin to 145 to 205 basis points (if in the future the Parent Company obtains an investment-grade credit rating from S&P, Fitch or Moody's, the interest rate would be LIBOR plus a margin of 90 to 170 basis points, depending on the Parent Company's credit rating). | |||
[6] | The loan at the West Broad Village property was refinanced in April 2013 and bears a fixed rate of 3.33% with a new maturity date of May 1, 2020. Debt payments are interest-only through May 2016. | |||
[7] | The debt represents redevelopment revenue bonds to be used for the redevelopment of this property, which mature in November 2035. Interest is reset weekly and determined by the bond remarketing agent based on the market value of the bonds (interest rate of 0.08% at September 30, 2013 and 0.14% at December 31, 2012). The interest rate on the bonds is currently priced off of the Securities Industry and Financial Markets Association index but could change based on the credit of the bonds. The bonds are secured by a $12.1 million letter of credit issued by the Company from the Company's unsecured revolving credit facility. An underwriter's discount related to the original issuance of the bonds with a remaining balance of $106,000 and $110,000 at September 30, 2013 and December 31, 2012, respectively, is being amortized as additional interest expense through November 2035. |
Mortgages_Payable_Net_Parenthe
Mortgages Payable Net (Parenthetical) (Detail) (Excel Trust, L.P., USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Sep. 30, 2013 | |
Minimum | Maximum | Scenario, Forecast | Scenario, Forecast | Scenario, Forecast | Scenario, Forecast | Red Rock Commons | Promenade Corporate Center | West Broad Village | Mortgages | Mortgages | Mortgages | Redevelopment revenue bonds | |||
Minimum | Minimum | Maximum | Maximum | ||||||||||||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | 6-Apr-18 | ' | ' | ' | ' | ' | ' | ' | 31-Mar-15 | ' | 1-May-20 | 31-Dec-14 | ' | ' | 30-Nov-35 |
Loan bears interest rate of LIBOR plus | 1.84% | 2.45% | 1.65% | 2.25% | 1.45% | 0.90% | 2.05% | 1.70% | ' | ' | ' | 2.25% | ' | ' | ' |
Average of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.41% | ' |
Loan bears variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.44% | 2.50% | ' | ' |
Fixed interest rate of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.88% | 3.33% | ' | ' | ' | ' |
Market value of bonds interest rate | 0.08% | 0.14% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit issued under revolving credit facility | $12,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriter's discount related to original issuance of the bonds | $106,000 | $110,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_of_the_Operating_Partners2
Debt of the Operating Partnership - Additional Information (Detail) (Excel Trust, L.P., USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 08, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Minimum | Minimum | Maximum | Maximum | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | 2013 Amendment | 2013 Amendment | ||||||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Subsequent Event | Scenario, Adjustment | Minimum | Maximum | Minimum | Maximum | |||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total interest cost capitalized | $34,000 | $0 | $50,000 | $139,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in borrowings under the credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | 300,000,000 | 500,000,000 | ' | ' | ' | ' |
Increase in additional borrowings under revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' |
Maturity date | ' | ' | 6-Apr-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, covenants requiring the maintenance | ' | ' | ' | ' | ' | ' | ' | ' | ' | '(1) maximum leverage ratios on unsecured, secured and overall debt and (2) minimum fixed coverage ratios. | ' | ' | ' | ' | ' | ' |
Revolving credit facility bears interest (in basis points) | ' | ' | ' | ' | ' | '145 | '90 | '205 | '170 | ' | ' | ' | '165 | '225 | ' | ' |
Percentage of unused fee | ' | ' | ' | ' | ' | 0.25% | ' | 0.35% | ' | ' | ' | ' | ' | ' | 0.25% | 0.30% |
Borrowings from revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 193,500,000 | ' | ' | ' | ' | ' | ' |
Revolving credit facility, weighted-average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 183.00% | ' | ' | ' | ' | ' | ' |
Letter of credit from the unsecured revolving credit facility | 12,100,000 | ' | 12,100,000 | ' | ' | ' | ' | ' | ' | 12,100,000 | ' | ' | ' | ' | ' | ' |
Amount outstanding | 306,975,000 | ' | 306,975,000 | ' | 333,310,000 | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' |
Available for borrowing under the unsecured revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | $44,300,000 | ' | ' | ' | ' | ' | ' |
Mortgage_Debt_Maturities_Detai
Mortgage Debt Maturities (Detail) (Excel Trust, L.P., USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Excel Trust, L.P. | ' | ' |
Debt Instrument [Line Items] | ' | ' |
2013 (remaining three months) | $57,094 | ' |
2014 | 91,130 | ' |
2015 | 47,920 | ' |
2016 | 2,364 | ' |
2017 | 41,415 | ' |
Thereafter | 67,052 | ' |
Long-term Debt, Gross | $306,975 | $333,310 |
Earnings_Per_Share_of_the_Pare
Earnings Per Share of the Parent Company - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
7.00% Series A cumulative convertible perpetual preferred stock | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Dividend rate on preferred Series A stock | 7.00% | 7.00% | 7.00% | 7.00% |
Antidilutive securities excluded from computation of earnings per share | 3,356,178 | 3,333,400 | 3,341,076 | 3,333,400 |
Unvested Restricted Shares | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 657,873 | 905,433 | 683,922 | 942,810 |
Contingently Issuable Shares | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | 90,207 | ' | 90,513 |
Operating Partnership Units | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 1,225,115 | 1,056,894 | 1,230,437 | 1,217,732 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Share (Parent Company) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic earnings per Share: | ' | ' | ' | ' |
Income from continuing operations | $1,520 | $460 | $5,180 | $1,254 |
Preferred dividends | -2,744 | -2,744 | -8,232 | -7,609 |
Allocation to participating securities | -109 | -144 | -326 | -432 |
Income from continuing operations attributable to non-controlling interests | -108 | -8 | -260 | 7 |
Income (loss) from continuing operations applicable to the common stockholders | -1,441 | -2,436 | -3,638 | -6,780 |
Net income (loss) attributable to the common stockholders | 10,739 | -2,243 | 8,914 | -6,302 |
Allocation to participating securities | -143 | -144 | -326 | -432 |
Net income (loss) applicable to the common stockholders | $10,596 | ($2,387) | $8,588 | ($6,734) |
Weighted-average common shares outstanding: | ' | ' | ' | ' |
Basic and diluted | 47,496,811 | 33,293,772 | 46,674,386 | 32,616,052 |
Basic and diluted earnings per share: | ' | ' | ' | ' |
Income (loss) from continuing operations per share attributable to the common stockholders | ($0.03) | ($0.07) | ($0.08) | ($0.21) |
Income from discontinued operations per share attributable to the common stockholders | $0.25 | ' | $0.26 | ' |
Net income (loss) per share attributable to the common stockholders | $0.22 | ($0.07) | $0.18 | ($0.21) |
Earnings_Per_Unit_of_the_Opera
Earnings Per Unit of the Operating Partnership - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Unvested Restricted Shares | ' | ' | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 657,873 | 905,433 | 683,922 | 942,810 |
Contingently Issuable Shares | ' | ' | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | 90,207 | ' | 90,513 |
Excel Trust, L.P. | ' | ' | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Dividend rate on preferred Series A stock | 7.00% | 7.00% | 7.00% | 7.00% |
Excel Trust, L.P. | Unvested Restricted Shares | ' | ' | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 657,873 | 905,433 | 683,922 | 942,810 |
Excel Trust, L.P. | Contingently Issuable Shares | ' | ' | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | 90,207 | ' | 90,513 |
Excel Trust, L.P. | 7.0% Series A cumulative convertible perpetual preferred units | ' | ' | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 3,356,178 | 3,333,400 | 3,341,076 | 3,333,400 |
Computation_of_Basic_and_Dilut1
Computation of Basic and Diluted Earnings Per Share (Operating Partnership) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic earnings per unit: | ' | ' | ' | ' |
Income from continuing operations | $1,520 | $460 | $5,180 | $1,254 |
Allocation to participating securities | -143 | -144 | -326 | -432 |
Income from continuing operations attributable to non-controlling interests | -108 | -8 | -260 | 7 |
Income (loss) from continuing operations applicable to the common stockholders | -1,441 | -2,436 | -3,638 | -6,780 |
Allocation to participating securities | -143 | -144 | -326 | -432 |
Excel Trust, L.P. | ' | ' | ' | ' |
Basic earnings per unit: | ' | ' | ' | ' |
Income from continuing operations | 1,520 | 460 | 5,180 | 1,254 |
Preferred distributions | -2,744 | -2,744 | -8,232 | -7,609 |
Allocation to participating securities | -109 | -144 | -326 | -432 |
Income from continuing operations attributable to non-controlling interests | -77 | -75 | -249 | -216 |
Income (loss) from continuing operations applicable to the common stockholders | -1,410 | -2,503 | -3,627 | -7,003 |
Net income (loss) attributable to the unitholders | 11,018 | -2,316 | 9,154 | -6,532 |
Allocation to participating securities | -109 | -144 | -326 | -432 |
Net income (loss) applicable to the unitholders | $10,909 | ($2,460) | $8,828 | ($6,964) |
Weighted-average common OP units outstanding: | ' | ' | ' | ' |
Basic and diluted | 48,721,926 | 34,350,666 | 47,904,824 | 33,833,784 |
Basic and diluted earnings per unit: | ' | ' | ' | ' |
Income (loss) from continuing operations per unit attributable to the unitholders | ($0.03) | ($0.07) | ($0.08) | ($0.21) |
Income from discontinued operations per unit attributable to the unitholders | $0.25 | ' | $0.26 | ' |
Net income (loss) per unit attributable to the unitholders | $0.22 | ($0.07) | $0.18 | ($0.21) |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities - Additional Information (Detail) (USD $) | 3 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2010 | ||
Interest Rate Swaps | Interest Rate Swaps | ||||
Derivative | |||||
Derivative [Line Items] | ' | ' | ' | ' | |
Notional value of two pay-fixed interest rate swaps | ' | ' | $55,800,000 | [1] | $55,800,000 |
Weighted average interest rate | ' | ' | ' | 1.41% | |
Number of derivative instruments | ' | ' | ' | 2 | |
Additional reclassification from other comprehensive income as an increase to interest expense | 144,000 | ' | ' | ' | |
Amounts recorded as earnings attributable to hedge ineffectiveness | 0 | 0 | ' | ' | |
Fair value of derivatives in net liability position | $196,000 | ' | ' | ' | |
[1] | The interest rate swaps are classified within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets. |
Outstanding_Interest_Rate_Swap
Outstanding Interest Rate Swaps and Other Derivatives Instruments (Detail) (USD $) | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | ||
Derivative [Line Items] | ' | ' | ' | ||
Fair Value | $144 | [1] | $894 | [1] | ' |
Interest Rate Swaps | ' | ' | ' | ||
Derivative [Line Items] | ' | ' | ' | ||
Current Notional Amount | 55,800 | [2] | ' | 55,800 | |
Fair Value | 144 | [1],[2] | 620 | [1],[2] | ' |
Expiration Date | '2013-12 | [2] | ' | ' | |
Interest Rate Swaps | Minimum | ' | ' | ' | ||
Derivative [Line Items] | ' | ' | ' | ||
Strike Rate | 1.34% | [2] | ' | ' | |
Interest Rate Swaps | Maximum | ' | ' | ' | ||
Derivative [Line Items] | ' | ' | ' | ||
Strike Rate | 1.48% | [2] | ' | ' | |
Other derivatives instrument | ' | ' | ' | ||
Derivative [Line Items] | ' | ' | ' | ||
Fair Value | ' | $274 | [1],[3] | ' | |
Expiration Date | '2013-03 | [3] | ' | ' | |
[1] | Fair value of derivative instruments does not include any related accrued interest payable to the counterparty. | ||||
[2] | The interest rate swaps are classified within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets. | ||||
[3] | The Company's purchase agreement executed in connection with the acquisition of the Edwards Theatres property in March 2011 contained a provision determined to be an embedded derivative instrument. The embedded derivative provided a guaranteed fair value for the OP units provided to the sellers of the property if redeemed for shares of the Parent Company's common stock or cash, at the Company's election, prior to its expiration in March 2013. The fair value of the embedded derivative at each period was calculated through the use of a Monte Carlo valuation model based on the historical volatility and closing price of the Parent Company's common stock and a risk-free interest rate (see Note 19 for discussion of changes in the fair value of this derivative). The embedded derivative was classified within accounts payable and other liabilities in the accompanying condensed consolidated balance sheets. |
Companys_Derivative_Financial_
Company's Derivative Financial Instruments on Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative [Line Items] | ' | ' | ' | ' |
Amount of unrealized loss recognized in OCI (effective portion) | ($7) | ($92) | ($19) | ($304) |
Amount of loss reclassified from accumulated OCI into income (effective portion) | -171 | -164 | -495 | -484 |
Amount of gain recognized in income (ineffective portion and amount excluded from effectiveness testing) | ' | 61 | 230 | 1,112 |
Interest Rate Swaps | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Amount of unrealized loss recognized in OCI (effective portion) | -7 | -92 | -19 | -304 |
Interest Rate Swaps | Interest Expense | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Amount of loss reclassified from accumulated OCI into income (effective portion) | -171 | -164 | -495 | -484 |
Other derivatives instrument | changes in fair value of financial instruments and gain on OP unit redemption | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Amount of gain recognized in income (ineffective portion and amount excluded from effectiveness testing) | ' | $61 | $230 | $1,112 |
Equity_of_the_Parent_Company_A
Equity of the Parent Company - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Person | Operating Partnership Units | Edwards Theatres | West Broad Village | Amended And Restated | Common Stock | Common Stock | Contingently Issuable Shares | Hundred Percentage Employee Deferrals | Fifty Percentage Employee Deferrals | 8.125% Series B cumulative redeemable preferred stock | 8.125% Series B cumulative redeemable preferred stock | 8.125% Series B cumulative redeemable preferred stock | 7.00% Series A cumulative convertible perpetual preferred stock | 7.00% Series A cumulative convertible perpetual preferred stock | ||||||
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted common stock awards, shares | ' | ' | 1,133,130 | ' | ' | ' | ' | ' | ' | ' | 33,088 | 18,356 | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeitures of restricted common stock awards, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock dividend rate percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.13% | 8.13% | ' | 7.00% | ' |
Preferred stock, liquidation preference per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | $25 | $25 | $25 | $25 |
Annual dividend on preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.03 | ' | $1.75 | ' |
Outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,680,000 | 3,680,000 | 3,680,000 | 2,000,000 | 2,000,000 |
Preferred stock conversion rate | 1.6667 | ' | 1.6667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock conversion price per share, initial | ' | ' | $0.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing price of common stock as minimum percentage of conversion price for conversion of preferred stock | ' | ' | 140.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum trading days for calculating closing price of common stock | ' | ' | '20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of consecutive trading days | '30 days | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series B preferred stock redeemable price on and after January 31, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | $25 | ' | ' | ' |
Number of days to redeem the Series B preferred stock, in whole or in part | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | ' | ' | ' |
Stock repurchase program, authorized amount | ' | ' | $30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, remaining amount | ' | ' | 23,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock offering price | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial public offering shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,211,928 | 1,082,051 | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds of Equity Distribution Agreements | ' | ' | 40,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average stock issuance of Equity Distribution Agreements | ' | ' | $13.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of sales agents | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of OP units issued in connection with acquisition | ' | ' | ' | ' | 591,474 | ' | ' | 591,474 | 411,184 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of additional shares of common stock | ' | ' | ' | ' | ' | ' | 531,768 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments for number of OP Units issued | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares issued under equity incentive award plan | 1,350,000 | ' | 1,350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock available for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 239,870 | ' | ' | ' | ' | ' | ' | ' |
Compensation expense recognized | 583,000 | 817,000 | 1,713,000 | 2,406,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated forfeitures | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | 2,100,000 | ' | 2,100,000 | ' | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense, weighted-average | ' | ' | '1 year 3 months 18 days | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company matching contributions Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 50.00% | ' | ' | ' | ' | ' |
Eligible Compensation Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.00% | ' | ' | ' | ' | ' |
Costs related to the matching portion | $39,000 | $30,000 | $113,000 | $87,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares_of_Restricted_Common_St
Shares of Restricted Common Stock (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |||||
Jun. 07, 2013 | 7-May-13 | Mar. 06, 2013 | Sep. 30, 2013 | ||||
Members of Board of Directors | Members of Board of Directors | Restricted Stock | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |||
Price at Grant Date | $13.36 | [1] | $15.11 | [1] | $13.43 | [2] | $13.76 |
Number | 1,000 | [1] | 10,588 | [1] | 41,500 | [2] | 53,088 |
Vesting Period (yrs.) | '4 years | [1] | '1 year | [1] | '4 years | [2] | '4 years |
[1] | Shares issued to members of the Company's board of directors. These shares vest in equal quarterly installments. | ||||||
[2] | Shares issued to certain of the Company's employees. These shares vest over four years with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments thereafter. |
Shares_of_Restricted_Common_St1
Shares of Restricted Common Stock (Parenthetical) (Detail) (Restricted Stock) | 1 Months Ended | 9 Months Ended | |
Mar. 06, 2013 | Sep. 30, 2013 | ||
Restricted Stock | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Equity Incentive Award Plan shares vesting period | '4 years | [1] | '4 years |
Vesting percentage | ' | 25.00% | |
[1] | Shares issued to certain of the Company's employees. These shares vest over four years with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments thereafter. |
NonVested_Shares_of_Companys_R
Non-Vested Shares of Companys Restricted Common Stock (Detail) (Restricted Stock, USD $) | 1 Months Ended | 9 Months Ended | |
Mar. 06, 2013 | Sep. 30, 2013 | ||
Restricted Stock | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Number of Unvested Shares of Restricted Common Stock, Beginning Balance | ' | 701,396 | |
Number of Unvested Shares of Restricted Common Stock, Grants | 41,500 | [1] | 53,088 |
Number of Unvested Shares of Restricted Common Stock, Forfeitures | ' | -20,000 | |
Number of Unvested Shares of Restricted Common Stock, Vested | ' | -94,376 | |
Number of Unvested Shares of Restricted Common Stock, Ending Balance | ' | 640,108 | |
Weighted Average Grant Date Fair Value, Beginning Balance | ' | $10.02 | |
Weighted Average Grant Date Fair Value, Grants | $13.43 | [1] | $13.76 |
Weighted Average Grant Date Fair Value, Forfeitures | ' | $13.43 | |
Weighted Average Grant Date Fair Value, Vested | ' | $12.47 | |
Weighted Average Grant Date Fair Value, Ending Balance | ' | $9.86 | |
[1] | Shares issued to certain of the Company's employees. These shares vest over four years with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments thereafter. |
Equity_of_the_Operating_Partne2
Equity of the Operating Partnership - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2013 | Mar. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Edwards Theatres | West Broad Village | Excel Trust, L.P. | Excel Trust, L.P. | Excel Trust, L.P. | Excel Trust, L.P. | Excel Trust, L.P. | Excel Trust, L.P. | Excel Trust, L.P. | Excel Trust, L.P. | ||
7.0% Series A cumulative convertible perpetual preferred units | 7.0% Series A cumulative convertible perpetual preferred units | 8.125% Series B cumulative redeemable preferred units | 8.125% Series B cumulative redeemable preferred units | Excel Trust, Inc. | General Partner's Capital | ||||||
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Partnership, outstanding units | ' | ' | ' | 49,397,888 | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97.50% | ' |
Preferred units dividend rate percentage | ' | ' | ' | ' | ' | 7.00% | 7.00% | 8.13% | 8.13% | ' | ' |
Preferred units, units outstanding | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | 3,680,000 | 3,680,000 | ' | ' |
Operating partnership, units issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,211,928 |
Operating partnership, net proceeds from units issued | ' | ' | ' | $41,098,000 | $12,587,000 | ' | ' | ' | ' | ' | $40,700,000 |
Number of OP units issued in connection with acquisition | 591,474 | 591,474 | 411,184 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of additional shares of common stock | 531,768 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments for number of OP Units issued | $1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested_Ownership_Interests_in_
Vested Ownership Interests in Operating Partnership (Detail) | Sep. 30, 2013 | Dec. 31, 2012 |
Equity [Line Items] | ' | ' |
OP Units | 48,757,780 | 45,449,306 |
Percentage of Total | 100.00% | 100.00% |
Noncontrolling Interest | ' | ' |
Equity [Line Items] | ' | ' |
OP Units | 1,225,115 | 1,245,019 |
Percentage of Total | 2.50% | 2.70% |
Excel Trust, Inc. | ' | ' |
Equity [Line Items] | ' | ' |
OP Units | 47,532,665 | 44,204,287 |
Percentage of Total | 97.50% | 97.30% |
Investment_in_Unconsolidated_E2
Investment in Unconsolidated Entities - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Oct. 19, 2012 | ||
La Costa LLC | La Costa LLC | Other Affiliates | Bay Hill Property | Bay Hill Property | Bay Hill Property | Bay Hill Property | |||||
Retail Space | Retail Space | Retail Space | |||||||||
Investments in and Advances to Affiliates [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Ownership interests percentage holding by company | ' | ' | 20.00% | [1] | 20.00% | ' | 50.00% | [2] | ' | ' | 50.00% |
Ownership interests percentage holding by GEM Reality Capital Inc | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ||
Proceeds of investment in one limited liability company | ' | $21.20 | ' | ' | ' | ' | ' | ' | ' | ||
Ownership interests in GEM Reality Capital Inc | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ||
Investment in unconsolidated entity, percentage of cash flow distribution entitled to receive | ' | 20.00% | ' | ' | ' | ' | ' | 50.00% | ' | ||
Date of acquisition | ' | ' | ' | ' | ' | ' | ' | 19-Oct-12 | ' | ||
Purchase price of acquisition | $13.10 | ' | ' | ' | ' | ' | $19.80 | ' | ' | ||
Investment in unconsolidated entity, percentage of results of operations entitled to recognize | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ||
Remaining interest owned by third party | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ||
[1] | At September 30, 2013, La Costa LLC had real estate assets of $23.4 million, total assets of $25.1 million, mortgages payable of $14.1 million and total liabilities of $15.1 million. At December 31, 2012, La Costa LLC had real estate assets of $23.4 million, total assets of $26.3 million, mortgages payable of $14.1 million and total liabilities of $16.0 million. For the three months ended September 30, 2013, total revenues were $430,000, total expenses were $798,000 (including interest expense) and net loss was $368,000. For the nine months ended September 30, 2013, total revenues were $2.7 million, total expenses were $3.3 million (including interest expense) and net loss was $632,000. The mortgage note was assumed with the contribution of the property. Total revenues were $165,000, total expenses were $955,000 (including interest expense) and net loss was $790,000 for both the three and nine months ended September 30, 2012 (representing only a partial month of operating activity after the contribution of the property on September 7, 2012) . The mortgage note bears interest at the rate of LIBOR plus a margin of 575 basis points (5.9% at September 30, 2013 and 6.0% at December 31, 2012). The mortgage note has a maturity date of October 1, 2014, which may be extended for three additional one-year periods at La Costa LLC's election and upon the satisfaction of certain conditions (including the payment of an extension fee upon the exercise of the 2nd and 3rd renewal options, execution of an interest rate cap and the establishment of certain reserve accounts). La Costa LLC has also entered into an interest rate cap related to the mortgage note, which limits LIBOR to a maximum of 3.0% and expires on October 1, 2014. | ||||||||||
[2] | At September 30, 2013 and December 31, 2012, there were $23.5 million and $23.9 million, respectively, in outstanding borrowings on the mortgage note assumed with the acquisition of the Bay Hill property. The mortgage note bears interest at the rate of LIBOR plus a margin of 325 basis points (3.4% at September 30, 2013 and 3.5% at December 31, 2012). The mortgage note has a maturity date of April 2, 2015, which may be extended for two additional one-year periods at the borrower's election and upon the satisfaction of certain conditions. |
General_Information_on_La_Cost
General Information on La Costa LLC (Detail) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 07, 2012 | ||
La Costa LLC | ' | ' | |
Investments in and Advances to Affiliates [Line Items] | ' | ' | |
Ownership Interest | 20.00% | [1] | 20.00% |
Formation/ Acquisition Date | 7-Sep-12 | [1] | ' |
Property | 'La Costa Town Center | [1] | ' |
Bay Hill Property | ' | ' | |
Investments in and Advances to Affiliates [Line Items] | ' | ' | |
Ownership Interest | 50.00% | [2] | ' |
Formation/ Acquisition Date | 19-Oct-12 | [2] | ' |
Property | 'The Fountains at Bay Hill | [2] | ' |
[1] | At September 30, 2013, La Costa LLC had real estate assets of $23.4 million, total assets of $25.1 million, mortgages payable of $14.1 million and total liabilities of $15.1 million. At December 31, 2012, La Costa LLC had real estate assets of $23.4 million, total assets of $26.3 million, mortgages payable of $14.1 million and total liabilities of $16.0 million. For the three months ended September 30, 2013, total revenues were $430,000, total expenses were $798,000 (including interest expense) and net loss was $368,000. For the nine months ended September 30, 2013, total revenues were $2.7 million, total expenses were $3.3 million (including interest expense) and net loss was $632,000. The mortgage note was assumed with the contribution of the property. Total revenues were $165,000, total expenses were $955,000 (including interest expense) and net loss was $790,000 for both the three and nine months ended September 30, 2012 (representing only a partial month of operating activity after the contribution of the property on September 7, 2012) . The mortgage note bears interest at the rate of LIBOR plus a margin of 575 basis points (5.9% at September 30, 2013 and 6.0% at December 31, 2012). The mortgage note has a maturity date of October 1, 2014, which may be extended for three additional one-year periods at La Costa LLC's election and upon the satisfaction of certain conditions (including the payment of an extension fee upon the exercise of the 2nd and 3rd renewal options, execution of an interest rate cap and the establishment of certain reserve accounts). La Costa LLC has also entered into an interest rate cap related to the mortgage note, which limits LIBOR to a maximum of 3.0% and expires on October 1, 2014. | ||
[2] | At September 30, 2013 and December 31, 2012, there were $23.5 million and $23.9 million, respectively, in outstanding borrowings on the mortgage note assumed with the acquisition of the Bay Hill property. The mortgage note bears interest at the rate of LIBOR plus a margin of 325 basis points (3.4% at September 30, 2013 and 3.5% at December 31, 2012). The mortgage note has a maturity date of April 2, 2015, which may be extended for two additional one-year periods at the borrower's election and upon the satisfaction of certain conditions. |
General_Information_on_La_Cost1
General Information on La Costa LLC (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
La Costa LLC | ' | ' | ' | ' | ' |
Investments in and Advances to Affiliates [Line Items] | ' | ' | ' | ' | ' |
Real estate assets | $23,400,000 | ' | $23,400,000 | ' | $23,400,000 |
Total assets | 25,100,000 | ' | 25,100,000 | ' | 26,300,000 |
Mortgages payable | 14,100,000 | ' | 14,100,000 | ' | 14,100,000 |
Total liabilities | 15,100,000 | ' | 15,100,000 | ' | 16,000,000 |
Total revenues | 430,000 | 165,000 | 2,700,000 | 165,000 | ' |
Total expenses | 798,000 | 955,000 | 3,300,000 | 955,000 | ' |
Net loss | 368,000 | 790,000 | 632,000 | 790,000 | ' |
The mortgage note bears interest at the rate of LIBOR | 5.90% | ' | ' | ' | 6.00% |
The mortgage note bears interest at the rate of LIBOR plus a margin of 325 basis points | 5.90% | ' | 5.90% | ' | 6.00% |
Mortgage note expires | 1-Oct-14 | ' | ' | ' | ' |
Mortgage note, number of maturity date extension options | 3 | ' | ' | ' | ' |
Mortgage note, potential maturity date extension period | '1 year | ' | ' | ' | ' |
Interest rate cap related to mortgage note maximum | 3.00% | ' | ' | ' | ' |
Bay Hill Property | ' | ' | ' | ' | ' |
Investments in and Advances to Affiliates [Line Items] | ' | ' | ' | ' | ' |
The mortgage note bears interest at the rate of LIBOR | ' | ' | 3.40% | ' | 3.50% |
The mortgage note bears interest at the rate of LIBOR plus a margin of 325 basis points | 3.25% | ' | 3.25% | ' | 3.25% |
Mortgage note expires | ' | ' | 2-Apr-15 | ' | ' |
Mortgage note, number of maturity date extension options | ' | ' | 2 | ' | ' |
Mortgage note, potential maturity date extension period | ' | ' | '1 year | ' | ' |
Outstanding borrowings on mortgage note incurred | $23,500,000 | ' | $23,500,000 | ' | $23,900,000 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Jul. 19, 2013 | Sep. 13, 2013 |
Walgreens North Corbin | Missoula Montana | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Disposition of Asset | $4.50 | $32.30 |
Properties_Sold_as_Portfolio_D
Properties Sold as Portfolio (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Gain on Sale | $11,974 | $11,974 |
Retail Properties | Walgreens North Corbin | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Sales Price | ' | 4,514 |
Gain on Sale | ' | 1,129 |
Date of Sale | ' | 19-Jul-13 |
Acquisition Date | ' | 24-May-10 |
Retail Properties | Grant Creek Town Center | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Sales Price | ' | 32,343 |
Gain on Sale | ' | $10,845 |
Date of Sale | ' | 13-Sep-13 |
Acquisition Date | ' | 27-Aug-10 |
Revenue_and_Expense_from_Disco
Revenue and Expense from Discontinued Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ||||
Gain on sale of real estate assets | $11,974 | ' | $11,974 | ' | ||||
Retail Property | ' | ' | ' | ' | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ||||
Total revenues | 559 | 668 | 1,815 | 1,992 | ||||
Total expenses | 214 | 625 | 1,334 | 1,953 | ||||
Income before non-controlling interests and gain on sale of real estate assets | 345 | 43 | 481 | 39 | ||||
Gain on sale of real estate assets | 11,974 | ' | 11,974 | ' | ||||
Non-controlling interest in discontinued operations | -248 | [1] | 6 | [1] | -229 | [1] | 7 | [1] |
Income from discontinued operations available to the common stockholders | $12,071 | $49 | $12,226 | $46 | ||||
[1] | Amounts represent the portion of non-controlling interest related to OP units not held by the Parent Company that would be attributable to discontinued operations (no amounts would be allocable with respect to the consolidated financial statements of the Operating Partnership). |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Reimbursement to the related party | $82,000 | $88,000 | $230,000 | $236,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Line Items] | ' |
Percentage of REIT taxable income distributed to stockholders | 90.00% |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other assets related to business combinations | $3,000,000 | ' | ||
Interest rate swaps | -196,000 | ' | ||
Contingent consideration related to business combinations | -205,000 | -1,787,000 | ||
Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other assets related to business combinations | 614,000 | [1] | 992,000 | [1] |
Contingent consideration related to business combinations | -205,000 | [2] | -1,787,000 | [2] |
Total | -349,000 | -2,681,000 | ||
Derivative instrument related to business combinations | ' | -274,000 | [3] | |
Fair Value, Measurements, Recurring | Interest Rate Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps | -144,000 | -620,000 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total | -144,000 | -620,000 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Interest rate swaps | -144,000 | -620,000 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other assets related to business combinations | 614,000 | [1] | 992,000 | [1] |
Contingent consideration related to business combinations | -205,000 | [2] | -1,787,000 | [2] |
Total | -205,000 | -2,061,000 | ||
Derivative instrument related to business combinations | ' | ($274,000) | [3] | |
[1] | Amount reflects the fair value of funds expected to be received pursuant to master lease agreements executed in connection with the Promenade Corporate Center acquisition. The Company has estimated the fair value of the asset based on its expectations of the probability of leasing or releasing spaces within the term of the master lease agreements and corresponding estimates for time required to lease, lease rates and funds required for tenant improvements and lease commissions. This amount has been included in other assets in the accompanying condensed consolidated balance sheets, with subsequent changes in the fair value of the asset recorded as a gain (loss) in earnings in the period in which the change occurs. | |||
[2] | Additional consideration was potentially due to the prior owners of two properties purchased in 2012 contingent upon their ability to lease-up vacant space at those properties during 2013. The balance of $1.8 million at December 31, 2012 represented the Company's best estimate of the fair value of funds expected to be paid to the former owners. The earn-out period for one of the two properties expired at June 30, 2013, resulting in a reversal of the contingent liability of approximately $1.6 million based on a short-fall in the expected leasing. At September 30, 2013, a contingent liability with a fair value of approximately $205,000 was due to the previous owner of the other property acquired in 2012 based on the lease-up of vacant space subsequent to the acquisition of the property. The Company recognized a gain of approximately $10,000 in the three months ended September 30, 2013 due to an increase in the actual leasing costs as compared to the initial estimates. The earn-out period expired on September 30, 2013 and the balance of $205,000 was paid in full in October 2013. | |||
[3] | Amount reflects the fair value of a provision within a purchase agreement that provides a guaranteed redemption value for OP units provided to the sellers of the Edwards Theatres property acquired in March 2011. The Company has estimated the fair value of the embedded derivative instrument using a Monte Carlo valuation model based on the historical volatility and closing price of the Parent Company's common stock and a risk-free interest rate. This amount is included in accounts payable and other liabilities in the accompanying condensed consolidated balance sheets, with changes in the fair value of the embedded derivative recorded as gain (loss) on changes in fair value of financial instruments and gain on OP unit redemption in the condensed consolidated statements of operations. This embedded derivative instrument expired on March 11, 2013. |
Financial_Assets_and_Liabiliti1
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Contingent consideration related to business combinations | $205,000 | ' | $205,000 | $1,787,000 |
Reversal of Contingent Liability | ' | 1,600,000 | ' | ' |
Gain due to increase in actual leasing costs | $10,000 | ' | ' | ' |
Expiry date of earn-out period for contingent Consideration | ' | ' | 30-Sep-13 | ' |
Contingent consideration payable due date | '2013-10 | ' | '2013-10 | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Business Acquisition, Pro Forma Information [Line Items] | ' | ' | ' | ' |
Number of OP units issued in connection with acquisition | ' | ' | ' | 591,474 |
Gains / (loss) as a result of the excess of the fair value of the guarantee over the fair value of the consideration | $47,000 | ($16,000) | $396,000 | ' |
Additional gains due to changes in fair value of financial instruments and gain on OP unit redemption | ' | 246,000 | 716,000 | ' |
Additional Paid-in Capital | ' | ' | ' | ' |
Business Acquisition, Pro Forma Information [Line Items] | ' | ' | ' | ' |
Increase in additional paid in capital and common stock, par value | ' | 279,000 | 3,200,000 | ' |
Operating Partnership Units | ' | ' | ' | ' |
Business Acquisition, Pro Forma Information [Line Items] | ' | ' | ' | ' |
Issuance of additional shares of common stock | ' | ' | ' | 531,768 |
Cash payments for number of OP Units issued | ' | ' | ' | 1,900,000 |
Reconciliation_of_Financial_In
Reconciliation of Financial Instruments Remeasured on Recurring Basis (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Total gains: | ' | ' | ' | |||
Included in earnings | $47,000 | ($16,000) | $396,000 | |||
Ending balance | 772,000 | ' | 772,000 | |||
Other Assets Related to Business Combinations | ' | ' | ' | |||
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | ' | ' | ' | |||
Beginning balance | ' | 992,000 | [1] | ' | ||
Total gains: | ' | ' | ' | |||
Included in earnings | ' | 6,000 | [1] | 121,000 | [2] | |
Purchases, issuances, or settlements | ' | -384,000 | [1] | 723,000 | [2] | |
Ending balance | 844,000 | [2] | 614,000 | [1] | 844,000 | [2] |
Contingent Consideration Related to Business Combinations | ' | ' | ' | |||
Total gains: | ' | ' | ' | |||
Included in earnings | ' | 1,562,000 | [3] | ' | ||
Beginning balance | ' | -1,787,000 | [3] | -1,613,000 | [4] | |
Purchases, issuances, or settlements | ' | 20,000 | [3] | 1,613,000 | [4] | |
Ending balance | ' | -205,000 | [3] | ' | ||
Derivative Instruments Related to Business Combinations | ' | ' | ' | |||
Total gains: | ' | ' | ' | |||
Included in earnings | ' | 246,000 | [5] | 1,112,000 | [6] | |
Beginning balance | ' | -274,000 | [5] | -3,050,000 | [6] | |
Purchases, issuances, or settlements | ' | 28,000 | [5] | 796,000 | [6] | |
Ending balance | ($1,142,000) | [6] | ' | ($1,142,000) | [6] | |
[1] | The change of $378,000 for other assets related to business combinations during the nine months ended September 30, 2013 is comprised of payments received on the master lease assets of $384,000 and an increase in the estimated fair value of funds to be received from escrow of $6,000. | |||||
[2] | The change of $844,000 for other assets related to business combinations during the nine months ended September 30, 2012 is comprised of (a) an increase in the master lease asset of $121,000 due to changes in the Company's initial estimates of the fair value of funds expected to be received from escrow that was included in earnings, (b) the recognition of a master lease asset of $772,000 related to the acquisition of the Promenade Corporate Center property and (c) a decrease in the master lease asset due to payments received in the amount of $49,000. | |||||
[3] | The change of $1.6 million for contingent consideration related to business combinations represents the reversal of a contingent liability related to the earn-out for one property as a result of a shortfall in expected leasing of vacant space at the property and a reduction in the contingent liability related to another property as a result of higher leasing costs than originally estimated (recognized as changes in fair value of contingent consideration in the condensed consolidated statements of operations). The remaining earn-out has a fair value of approximately $205,000 based on the funds due to the former owner, which were paid in full in October 2013. | |||||
[4] | The change of $1.6 million for contingent consideration related to business combinations during the nine months ended September 30, 2012 is comprised of a decrease in the obligation due to the payment of approximately $1.6 million in earn-outs in January 2012. | |||||
[5] | The change of $274,000 for derivative instruments related to business combinations during the nine months ended September 30, 2013 is related to changes to the redemption provision for OP units issued in connection with the 2011 Edwards Theatres acquisition as a result of (a) a decrease of $246,000 due to recognition of a gain included in earnings related to changes in the fair value of the redemption obligation and (b) a decrease of $28,000 due to the redemption of corresponding OP units. | |||||
[6] | The change of $1.9 million for derivative instruments related to business combinations during the nine months ended September 30, 2012 is related to changes to the redemption provision for OP units issued in connection with the 2011 Edwards Theatres acquisition and is comprised of (a) a decrease of $716,000 due to recognition of a gain related to changes in the fair value of the redemption obligation and a gain of $349,000 resulting from the redemption of OP units and (b) a decrease in the redemption obligation of $796,000 due to the redemption of corresponding OP units. |
Reconciliation_of_Financial_In1
Reconciliation of Financial Instruments Remeasured on Recurring Basis (Parenthetical) (Detail) (USD $) | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | ' | ' | ' | ' |
Change in other asset related to business combinations | ' | $378,000 | ' | ' |
Change in master lease asset | ' | 384,000 | 49,000 | ' |
Increase in the estimated fair value of funds to be received from escrow | ' | 6,000 | ' | ' |
Reversal of Contingent Liability | ' | 1,600,000 | ' | ' |
Contingent Liability Fair Value | ' | 205,000 | ' | 1,787,000 |
Contingent consideration payable due date | ' | '2013-10 | ' | ' |
Changes on derivative instruments related to business combination | ' | 274,000 | 1,900,000 | ' |
Amount of gain included in earnings related to changes in fair value of derivative liability | ' | 246,000 | 716,000 | ' |
Decrease due to redemption of OP units | ' | 28,000 | 796,000 | ' |
Master lease asset related to the acquisition of the Promenade Corporate Center property | ' | ' | 772,000 | ' |
Change in contingent consideration | ' | ' | 1,600,000 | ' |
Earn-outs paid to a prior owner | 1,600,000 | ' | ' | ' |
Amount of gain included in earnings related to changes in fair value of derivative asset | ' | ' | 349,000 | ' |
Business Combination | ' | ' | ' | ' |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | ' | ' | ' | ' |
Change in other asset related to business combinations | ' | ' | 844,000 | ' |
Master Lease Asset | ' | ' | ' | ' |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | ' | ' | ' | ' |
Change in other asset related to business combinations | ' | ' | $121,000 | ' |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||||
Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | ||||||||
Cash flow | Other Assets Related to Business Combinations | Other Assets Related to Business Combinations | Other Assets Related to Business Combinations | Contingent Consideration Related to Business Combinations | ||||||||
Cash flow | Cash flow | Cash flow | Cash flow | |||||||||
Minimum | Maximum | |||||||||||
Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Other assets related to business combinations | $3,000,000 | ' | $614,000 | [1] | ' | ' | ' | ' | ||||
Contingent consideration related to business combinations | -205,000 | -1,787,000 | -205,000 | [2] | ' | ' | ' | ' | ||||
Unobservable Input, Tenant improvement allowance | ' | ' | ' | ' | $12 | [1] | $35 | [1] | $37.50 | [2] | ||
Unobservable Input, Lease commission | ' | ' | ' | 6.00% | [1] | ' | ' | 6.00% | [2] | |||
Unobservable Input, Tenant improvement allowance | ' | ' | ' | ' | '2 months | [1] | '5 months | [1] | '2 months | [2] | ||
[1] | The significant unobservable inputs used in the fair value measurement of the master lease agreement asset are any estimated tenant improvement allowances, leasing commissions and the construction periods associated with projected new leasing. Significant increases (decreases) in any of these inputs in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions. | |||||||||||
[2] | The significant unobservable inputs used in the fair value measurement of the contingent consideration are any estimated tenant improvement allowances, construction periods, leasing commissions and lease rates. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions. |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Note receivable (Other Assets), Carrying Amount | $750 | $750 |
Note receivable (Other Assets), Fair Value | 750 | 750 |
Financial liabilities: | ' | ' |
Mortgages notes payable, Carrying Amount | 308,365 | 333,935 |
Notes payable, Carrying Amount | 193,500 | 75,000 |
Mortgage notes payable, Fair Value | 312,834 | 341,288 |
Notes payable, Fair Value | $193,024 | $74,862 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 14, 2013 | Oct. 08, 2013 | Oct. 04, 2013 |
Excel Trust, L.P. | Excel Trust, L.P. | Subsequent Event | Subsequent Event | Subsequent Event | ||
Credit Agreement | Credit Agreement | Shopping Centers | Excel Trust, L.P. | Retail center | ||
Scenario, Adjustment | sqft | Credit Agreement | sqft | |||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Purchase Price of Business Acquired | $41,874,000 | ' | ' | ' | ' | $14,300,000 |
Land area acquired | ' | ' | ' | ' | ' | 38,000 |
Increase in borrowings under the credit facility | ' | 250,000,000 | 500,000,000 | ' | 300,000,000 | ' |
Increase in additional borrowings under revolving credit facility | ' | ' | 200,000,000 | ' | ' | ' |
Maturity date | ' | ' | 6-Apr-18 | ' | ' | ' |
Purchase price of acquisition | ' | ' | ' | $16,400,000 | ' | ' |
Square footage | ' | ' | ' | 105,000 | ' | ' |
Segment_Disclosure_Additional_
Segment Disclosure - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2012 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of real estate property held by segment | 3 |
Reconciliation_of_Companys_Seg
Reconciliation of Company's Segment Operations Activity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total revenues | $28,931 | $21,085 | $82,738 | $60,069 |
Property operating expenses | -22,744 | -16,608 | -64,170 | -48,745 |
Property operating income, as defined | 6,187 | 4,477 | 18,568 | 11,324 |
Changes in fair value of contingent consideration | 10 | 121 | 1,568 | 121 |
General and administrative costs | -3,399 | -3,318 | -10,536 | -10,155 |
Depreciation and amortization | -11,637 | -8,321 | -34,613 | -24,488 |
Interest expense | -4,728 | -3,939 | -13,751 | -11,149 |
Interest income | 49 | 19 | 146 | 125 |
Income (loss) from equity in unconsolidated entities | 12 | -158 | -13 | -158 |
Changes in fair value of financial instruments and gain on OP unit redemption | ' | 61 | 230 | 1,112 |
Income from continuing operations | 1,520 | 460 | 5,180 | 1,254 |
Income from discontinued operations | 345 | 43 | 481 | 39 |
Net income (loss) | 13,839 | 503 | 17,635 | 1,293 |
Net income attributable to non-controlling interests | -356 | -2 | -489 | 14 |
Net income attributable to Excel Trust, Inc. | 13,483 | 501 | 17,146 | 1,307 |
Office Properties | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total revenues | 2,052 | 2,261 | 6,428 | 6,367 |
Property operating expenses | -906 | -950 | -2,593 | -2,366 |
Property operating income, as defined | 1,146 | 1,311 | 3,835 | 4,001 |
Changes in fair value of contingent consideration | ' | 121 | 6 | 121 |
General and administrative costs | -9 | -1 | -16 | -98 |
Depreciation and amortization | -980 | -973 | -2,832 | -2,822 |
Interest expense | -194 | -198 | -579 | -593 |
Net income (loss) | -37 | 260 | 414 | 609 |
Multi Family | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total revenues | 1,397 | ' | 4,053 | ' |
Property operating expenses | -675 | ' | -1,374 | ' |
Property operating income, as defined | 722 | ' | 2,679 | ' |
General and administrative costs | 206 | ' | -104 | ' |
Depreciation and amortization | -460 | ' | -2,298 | ' |
Net income (loss) | 468 | ' | 277 | ' |
Retail Properties | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total revenues | 25,482 | 18,824 | 72,257 | 53,702 |
Property operating expenses | -6,137 | -4,140 | -16,622 | -11,857 |
Property operating income, as defined | 19,345 | 14,684 | 55,635 | 41,845 |
Changes in fair value of contingent consideration | 10 | ' | 1,562 | ' |
General and administrative costs | -3,596 | -3,317 | -10,416 | -10,057 |
Depreciation and amortization | -10,197 | -7,348 | -29,483 | -21,666 |
Interest expense | -4,534 | -3,741 | -13,172 | -10,556 |
Interest income | 49 | 19 | 146 | 125 |
Income (loss) from equity in unconsolidated entities | 12 | -158 | -13 | -158 |
Changes in fair value of financial instruments and gain on OP unit redemption | ' | 61 | 230 | 1,112 |
Income from continuing operations | 1,089 | 200 | 4,489 | 645 |
Income from discontinued operations | 12,319 | 43 | 12,455 | 39 |
Net income (loss) | 13,408 | 243 | 16,944 | 684 |
Total Reportable Segments | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total revenues | 28,931 | 21,085 | 82,738 | 60,069 |
Property operating expenses | -7,718 | -5,090 | -20,589 | -14,223 |
Property operating income, as defined | 21,213 | 15,995 | 62,149 | 45,846 |
Changes in fair value of contingent consideration | 10 | 121 | 1,568 | 121 |
General and administrative costs | -3,399 | -3,318 | -10,536 | -10,155 |
Depreciation and amortization | -11,637 | -8,321 | -34,613 | -24,488 |
Interest expense | -4,728 | -3,939 | -13,751 | -11,149 |
Interest income | 49 | 19 | 146 | 125 |
Income (loss) from equity in unconsolidated entities | 12 | -158 | -13 | -158 |
Changes in fair value of financial instruments and gain on OP unit redemption | ' | 61 | 230 | 1,112 |
Income from continuing operations | 1,520 | 460 | 5,180 | 1,254 |
Income from discontinued operations | 12,319 | 43 | 12,455 | 39 |
Net income (loss) | 13,839 | 503 | 17,635 | 1,293 |
Excel Trust, Inc. | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net income (loss) | 13,839 | 503 | 17,635 | 1,293 |
Net income attributable to non-controlling interests | -356 | -2 | -489 | 14 |
Net income attributable to Excel Trust, Inc. | 13,483 | 501 | 17,146 | 1,307 |
Excel Trust, L.P. | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total revenues | 28,931 | 21,085 | 82,738 | 60,069 |
Property operating expenses | -22,744 | -16,608 | -64,170 | -48,745 |
Property operating income, as defined | 6,187 | 4,477 | 18,568 | 11,324 |
Changes in fair value of contingent consideration | 10 | 121 | 1,568 | 121 |
General and administrative costs | -3,399 | -3,318 | -10,536 | -10,155 |
Depreciation and amortization | -11,637 | -8,321 | -34,613 | -24,488 |
Interest expense | -4,728 | -3,939 | -13,751 | -11,149 |
Interest income | 49 | 19 | 146 | 125 |
Income (loss) from equity in unconsolidated entities | 12 | -158 | -13 | -158 |
Changes in fair value of financial instruments and gain on OP unit redemption | ' | 61 | 230 | 1,112 |
Income from continuing operations | 1,520 | 460 | 5,180 | 1,254 |
Income from discontinued operations | 345 | 43 | 481 | 39 |
Net income (loss) | 13,839 | 503 | 17,635 | 1,293 |
Net income attributable to non-controlling interests | -77 | -75 | -249 | -216 |
Net income attributable to Excel Trust, Inc. | $13,762 | $428 | $17,386 | $1,077 |
Reconciliation_of_Companys_Seg1
Reconciliation of Company's Segment Financial Operations Activity (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ||
Total assets | $1,202,122 | [1] | $1,079,254 | [1] |
Office Properties | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ||
Total assets | 67,772 | 70,473 | ||
Multi-family Property | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ||
Total assets | 71,164 | 72,627 | ||
Retail Properties | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ||
Total assets | 1,063,186 | 936,154 | ||
Total Reportable Segments & Consolidated Assets | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ||
Total assets | $1,202,122 | $1,079,254 | ||
[1] | Excel Trust, Inc.'s consolidated total assets at September 30, 2013 and December 31, 2012 include $15,596 and $15,871, respectively, of assets (primarily real estate assets) of a variable interest entity ("VIE") that can only be used to settle the liabilities of that VIE. |