Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 05, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Howard Hughes Corp | ' |
Entity Central Index Key | '0001498828 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 39,638,094 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment in real estate: | ' | ' |
Master Planned Community assets | $1,605,814 | $1,537,758 |
Land | 263,032 | 244,041 |
Buildings and equipment | 907,283 | 754,878 |
Less: accumulated depreciation | -138,176 | -111,728 |
Developments | 899,827 | 488,156 |
Net property and equipment | 3,537,780 | 2,913,105 |
Investment in Real Estate and Other Affiliates | 85,344 | 61,021 |
Net investment in real estate | 3,623,124 | 2,974,126 |
Cash and cash equivalents | 805,606 | 894,948 |
Accounts receivable, net | 25,827 | 21,409 |
Municipal Utility District receivables, net | 122,515 | 125,830 |
Notes receivable, net | 12,724 | 20,554 |
Tax indemnity receivable, including interest | 333,877 | 320,494 |
Deferred expenses, net | 73,230 | 36,567 |
Prepaid expenses and other assets, net | 314,266 | 173,940 |
Total assets | 5,311,169 | 4,567,868 |
Liabilities: | ' | ' |
Mortgages, notes and loans payable | 1,880,916 | 1,514,623 |
Deferred tax liabilities | 41,038 | 89,365 |
Warrant liabilities | 444,680 | 305,560 |
Uncertain tax position liability | 231,904 | 129,183 |
Accounts payable and accrued expenses | 516,461 | 283,991 |
Total liabilities | 3,114,999 | 2,322,722 |
Commitments and Contingencies (see Note 15) | ' | ' |
Equity: | ' | ' |
Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued | ' | ' |
Common stock: $.01 par value; 150,000,000 shares authorized, 39,638,094 shares issued and outstanding as of September 30, 2014 and 39,576,344 shares issued and outstanding as of December 31, 2013 | 396 | 396 |
Additional paid-in capital | 2,835,753 | 2,829,813 |
Accumulated deficit | -638,864 | -583,403 |
Accumulated other comprehensive loss | -7,677 | -8,222 |
Total stockholders' equity | 2,189,608 | 2,238,584 |
Noncontrolling interests | 6,562 | 6,562 |
Total equity | 2,196,170 | 2,245,146 |
Total liabilities and equity | $5,311,169 | $4,567,868 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 39,638,094 | 39,576,344 |
Common stock, shares outstanding | 39,638,094 | 39,576,344 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Master Planned Community land sales | $59,351 | $53,734 | $260,186 | $166,981 |
Builder price participation | 5,311 | 2,002 | 13,251 | 5,703 |
Minimum rents | 24,380 | 21,538 | 66,929 | 60,598 |
Tenant recoveries | 7,601 | 5,291 | 20,509 | 15,681 |
Condominium rights and unit sales | 4,032 | 810 | 11,516 | 31,191 |
Resort and conference center revenues | 8,150 | 8,169 | 27,198 | 30,543 |
Other land revenues | 4,112 | 3,579 | 9,322 | 10,211 |
Other rental and property revenues | 6,291 | 4,492 | 18,601 | 14,557 |
Total revenues | 119,228 | 99,615 | 427,512 | 335,465 |
Expenses: | ' | ' | ' | ' |
Master Planned Community cost of sales | 27,743 | 27,063 | 93,540 | 82,616 |
Master Planned Community operations | 10,995 | 9,764 | 31,645 | 28,054 |
Other property operating costs | 15,198 | 20,329 | 45,603 | 52,126 |
Rental property real estate taxes | 4,559 | 3,698 | 12,540 | 10,814 |
Rental property maintenance costs | 2,313 | 2,048 | 6,402 | 5,996 |
Condominium rights and unit cost of sales | 2,026 | 406 | 5,788 | 15,678 |
Resort and conference center operations | 8,910 | 7,381 | 22,833 | 22,537 |
Provision for doubtful accounts | 119 | 204 | 293 | 910 |
Demolition costs | 760 | 1,386 | 6,711 | 1,386 |
Development-related marketing costs | 6,387 | 1,050 | 15,909 | 1,771 |
General and administrative | 14,759 | 11,914 | 49,138 | 34,310 |
Other income, net | -11,409 | -6,314 | -27,468 | -11,727 |
Depreciation and amortization | 13,018 | 9,986 | 35,000 | 23,210 |
Total expenses | 95,378 | 88,915 | 297,934 | 267,681 |
Operating income | 23,850 | 10,700 | 129,578 | 67,784 |
Interest income | -1,162 | 2,061 | 19,651 | 6,484 |
Interest expense | -12,136 | -1 | -28,354 | -144 |
Warrant liability gain (loss) | 24,690 | -4,479 | -139,120 | -148,706 |
Increase (reduction) in tax indemnity receivable | 5,454 | 730 | -5,473 | -8,673 |
Equity in earnings from Real Estate and Other Affiliates | 5,509 | 3,594 | 18,164 | 12,034 |
Income (loss) before taxes | 46,205 | 12,605 | -5,554 | -71,221 |
Provision for income taxes | 590 | 5,172 | 49,895 | 21,012 |
Net income (loss) | 45,615 | 7,433 | -55,449 | -92,233 |
Net income attributable to noncontrolling interests | ' | -98 | -12 | -110 |
Net income (loss) attributable to common stockholders | $45,615 | $7,335 | ($55,461) | ($92,343) |
Basic income (loss) per share: (in dollars per share) | $1.16 | $0.19 | ($1.41) | ($2.34) |
Diluted income (loss) per share: (in dollars per share) | $0.48 | $0.17 | ($1.41) | ($2.34) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Comprehensive income (loss), net of tax: | ' | ' | ' | ' | ||||
Net income (loss) | $45,615 | $7,433 | ($55,449) | ($92,233) | ||||
Other comprehensive income (loss): | ' | ' | ' | ' | ||||
Interest rate swaps | 784 | [1] | -413 | [1] | 902 | [1] | 2,120 | [1] |
Capitalized swap interest | -180 | [2] | -293 | [2] | -357 | [2] | -1,024 | [2] |
Other comprehensive income (loss) | 604 | -706 | 545 | 1,096 | ||||
Comprehensive income (loss) | 46,219 | 6,727 | -54,904 | -91,137 | ||||
Comprehensive income attributable to noncontrolling interests | ' | -98 | -12 | -110 | ||||
Comprehensive income (loss) attributable to common stockholders | $46,219 | $6,629 | ($54,916) | ($91,247) | ||||
[1] | Net of deferred tax expense of $0.1 million and $0.2 million for the three months and nine months ended September 30, 2014, respectively. Net of deferred tax expense of $0.4 million for both the three and nine months ended September 30, 2013. | |||||||
[2] | Net of deferred tax benefit of $0.1 million and $0.2 million for the three and nine months ended September 30, 2014, respectively. Net of deferred tax benefit of $0.2 million and $0.5 million for the three and nine months ended September 30, 2013, respectively. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Interest rate swaps, deferred tax expense (benefit) | $0.10 | $0.40 | $0.20 | $0.40 |
Capitalized swap interest, deferred tax benefit | $0.10 | $0.20 | $0.20 | $0.50 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2012 | $2,310,997 | $395 | $2,824,031 | ($509,613) | ($9,575) | $5,759 | |
Balance (in shares) at Dec. 31, 2012 | ' | 39,498,912 | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | |
Net income (loss) | -92,233 | ' | ' | -92,343 | ' | 110 | |
Adjustment to noncontrolling interest | 1,616 | ' | ' | ' | ' | 1,616 | |
Preferred dividend payment on behalf of REIT subsidiary | -12 | ' | ' | ' | ' | -12 | |
Interest rate swaps, net of tax $135 and ($376) for the nine months ended September 30, 2014 and 2013, respectively | 2,120 | [1] | ' | ' | ' | 2,120 | ' |
Capitalized swap interest, net of tax $126 and $542 for the nine months ended September 30, 2014 and 2013, respectively | -1,024 | [2] | ' | ' | ' | -1,024 | ' |
Stock plan activity | 4,112 | 1 | 4,111 | ' | ' | ' | |
Stock plan activity (in shares) | ' | 77,432 | ' | ' | ' | ' | |
Balance at Sep. 30, 2013 | 2,225,576 | 396 | 2,828,142 | -601,956 | -8,479 | 7,473 | |
Balance (in shares) at Sep. 30, 2013 | ' | 39,576,344 | ' | ' | ' | ' | |
Balance at Dec. 31, 2013 | 2,245,146 | 396 | 2,829,813 | -583,403 | -8,222 | 6,562 | |
Balance (in shares) at Dec. 31, 2013 | ' | 39,576,344 | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | |
Net income (loss) | -55,449 | ' | ' | -55,461 | ' | 12 | |
Preferred dividend payment on behalf of REIT subsidiary | -12 | ' | ' | ' | ' | -12 | |
Interest rate swaps, net of tax $135 and ($376) for the nine months ended September 30, 2014 and 2013, respectively | 902 | [1] | ' | ' | ' | 902 | ' |
Capitalized swap interest, net of tax $126 and $542 for the nine months ended September 30, 2014 and 2013, respectively | -357 | [2] | ' | ' | ' | -357 | ' |
Stock plan activity | 5,940 | ' | 5,940 | ' | ' | ' | |
Stock plan activity (in shares) | ' | 61,750 | ' | ' | ' | ' | |
Balance at Sep. 30, 2014 | $2,196,170 | $396 | $2,835,753 | ($638,864) | ($7,677) | $6,562 | |
Balance (in shares) at Sep. 30, 2014 | ' | 39,638,094 | ' | ' | ' | ' | |
[1] | Net of deferred tax expense of $0.1 million and $0.2 million for the three months and nine months ended September 30, 2014, respectively. Net of deferred tax expense of $0.4 million for both the three and nine months ended September 30, 2013. | ||||||
[2] | Net of deferred tax benefit of $0.1 million and $0.2 million for the three and nine months ended September 30, 2014, respectively. Net of deferred tax benefit of $0.2 million and $0.5 million for the three and nine months ended September 30, 2013, respectively. |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY | ' | ' |
Interest rate swaps, tax | $135 | ($376) |
Capitalized swap interest, tax | $126 | $542 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net loss | ($55,449) | ($92,233) |
Adjustments to reconcile net loss to cash provided by operating activities: | ' | ' |
Depreciation | 31,330 | 20,197 |
Amortization | 3,670 | 3,013 |
Amortization of deferred financing costs | 2,927 | 1,060 |
Amortization of intangibles other than in-place leases | 462 | 271 |
Straight-line rent amortization | 1,113 | -2,087 |
Deferred income taxes | 47,925 | 19,712 |
Restricted stock and stock option amortization | 5,940 | 4,111 |
Gain on disposition of asset | -2,373 | ' |
Warrant liability loss | 139,120 | 148,706 |
Reduction in tax indemnity receivable | 5,473 | 8,673 |
Interest income related to tax indemnity | -18,856 | -5,555 |
Equity in earnings from Real Estate and Other Affiliates, net of distributions | -14,666 | -5,408 |
Provision for doubtful accounts | 293 | 910 |
Master Planned Community land acquisitions | -69,930 | -5,667 |
Master Planned Community development expenditures | -93,080 | -95,061 |
Master Planned Community cost of sales | 86,044 | 73,201 |
Condominium development expenditures | -34,358 | -10,891 |
Condominium and other cost of sales | 5,788 | 15,678 |
Proceeds from sale of condominium rights | ' | 47,500 |
Percentage of completion revenue recognition from sale of condominium rights | -11,516 | -31,191 |
Non-monetary consideration relating to land sale | -13,789 | ' |
Net changes: | ' | ' |
Accounts and notes receivable | 26,188 | 1,850 |
Prepaid expenses and other assets | -3,436 | 12,143 |
Condominium deposits received | 125,002 | ' |
Deferred expenses | -32,028 | -7,156 |
Accounts payable and accrued expenses | 18,055 | 5,773 |
Condominium deposits held in escrow | -125,002 | ' |
Other, net | -8,888 | 1,217 |
Cash provided by operating activities | 15,959 | 108,766 |
Cash Flows from Investing Activities: | ' | ' |
Property and equipment expenditures | -6,213 | -26,527 |
Operating property improvements | -3,581 | -22,623 |
Property developments and redevelopments | -467,497 | -126,819 |
Proceeds from insurance claims | 12,901 | ' |
Proceeds from dispositions | 11,953 | 10,831 |
Acquisition of 1701 Lake Robbins | -1,484 | ' |
Change in restricted cash | -8,136 | -18,268 |
Cash used in investing activities | -465,986 | -211,537 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from issuance of mortgages, notes and loans payable | 414,046 | 360,788 |
Principal payments on mortgages, notes and loans payable | -45,443 | -271,871 |
Deferred financing costs | -7,906 | -2,437 |
Preferred dividend payment on behalf of REIT subsidiary | -12 | -12 |
Distributions to noncontrolling interests | ' | -2,134 |
Cash provided by financing activities | 360,685 | 84,334 |
Net change in cash and cash equivalents | -89,342 | -18,437 |
Cash and cash equivalents at beginning of period | 894,948 | 229,197 |
Cash and cash equivalents at end of period | 805,606 | 210,760 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Interest paid | 49,617 | 23,228 |
Interest capitalized | 34,760 | 26,537 |
Income taxes paid | 1,487 | 2,127 |
Non-Cash Transactions: | ' | ' |
Special Improvement District bond transfers associated with land sales | 7,496 | 11,549 |
Property developments and redevelopments | 59,819 | 56,763 |
Acquisition of 1701 Lake Robbins | ' | ' |
Land | -1,663 | ' |
Building | -3,725 | ' |
Other assets and deferred expenses | -848 | ' |
Mortgages, notes and loans payable | 4,600 | ' |
Other liabilities | 152 | ' |
Non-cash increase in Property due to consolidation of Real Estate Affiliate | ' | 3,750 |
Transfer of condominium buyer deposits to Real Estate Affiliate | ' | 34,220 |
Real Estate and Other Affiliates | ' | ' |
Cash Flows from Investing Activities: | ' | ' |
Investments in Real Estate and Other Affiliates, net | -3,929 | -1,031 |
KR Holdings, LLC | ' | ' |
Cash Flows from Investing Activities: | ' | ' |
Investments in Real Estate and Other Affiliates, net | ' | -16,750 |
Summerlin Las Vegas Baseball Club | ' | ' |
Cash Flows from Investing Activities: | ' | ' |
Investments in Real Estate and Other Affiliates, net | ' | ($10,350) |
BASIS_OF_PRESENTATION_AND_ORGA
BASIS OF PRESENTATION AND ORGANIZATION | 9 Months Ended |
Sep. 30, 2014 | |
BASIS OF PRESENTATION AND ORGANIZATION | ' |
BASIS OF PRESENTATION AND ORGANIZATION | ' |
NOTE 1 BASIS OF PRESENTATION AND ORGANIZATION | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as issued by the Securities and Exchange Commission (the “SEC”). Such condensed consolidated financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. In addition, readers of this Quarterly Report on Form 10-Q (“Quarterly Report”) should refer to The Howard Hughes Corporation’s (“HHC” or the “Company”) audited Consolidated Financial Statements which are included in the Company’s Annual Report on Form 10-K (the “Annual Report”) for the fiscal year ended December 31, 2013. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been included. The results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results for the full fiscal year. | |
Certain amounts in 2013 have been reclassified to conform to 2014 presentation. As a result of the increasing significance of development-related marketing costs in our operations, we have chosen to present, as a separate line item in the Condensed Consolidated Statements of Operations, the amount of development-related marketing costs expensed. Previously, these expenses were included in the line item Other property operating costs. Development-related marketing costs include salaries, benefits, agency fees, events, advertising, online hosting, marketing-related travel and other costs that we incur for the benefit of our developments and re-developments. | |
Management has evaluated for disclosure or recognition all material events occurring subsequent to the date of the Condensed Consolidated Financial Statements up to the date and time this Quarterly Report was filed. | |
RECENTLY_ISSUED_ACCOUNTING_PRO
RECENTLY ISSUED ACCOUNTING PRONOUCEMENTS | 9 Months Ended |
Sep. 30, 2014 | |
RECENTLY ISSUED ACCOUNTING PRONOUCEMENTS | ' |
RECENTLY ISSUED ACCOUNTING PRONOUCEMENTS | ' |
NOTE 2 RECENTLY ISSUED ACCOUNTING PRONOUCEMENTS | |
In August, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements — Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” Before the issuance of this ASU, there was no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. This guidance is expected to reduce the diversity in the timing and content of footnote disclosures. This ASU requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards as specified in the guidance. This ASU becomes effective for the annual period ending after December 15, 2016 and for annual and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this ASU to have an impact on the Company’s Consolidated Financial Statements. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This ASU states that entities should recognize revenue to properly depict the transfer of negotiated goods or services to customers in an amount that properly reflects the agreed upon consideration which the entity expects to be exchanged. The standard is effective for interim and annual periods beginning after December 15, 2016 and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The Company is evaluating the impact of the adoption of this ASU on the Company’s Consolidated Financial Statements. | |
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company has adopted this guidance. There is no impact of the adoption on the Company’s Consolidated Financial Statements because the Company does not have any discontinued operations. | |
SPONSORS_AND_MANAGEMENT_WARRAN
SPONSORS AND MANAGEMENT WARRANTS | 9 Months Ended |
Sep. 30, 2014 | |
SPONSORS AND MANAGEMENT WARRANTS | ' |
SPONSORS AND MANAGEMENT WARRANTS | ' |
NOTE 3 SPONSORS AND MANAGEMENT WARRANTS | |
On November 9, 2010 (the “Effective Date”), we issued warrants to purchase 8.0 million shares of our common stock to certain of our sponsors (the “Sponsors Warrants”) of which 1.9 million remain outstanding. The initial exercise price for the warrants of $50.00 per share and the number of shares of common stock underlying each warrant are subject to adjustment for future stock dividends, splits or reverse splits of our common stock or certain other events. The Sponsors Warrants expire on November 9, 2017. | |
In November 2010 and February 2011, we entered into certain agreements (the “Management Warrants”) with David R. Weinreb, our Chief Executive Officer, Grant Herlitz, our President, and Andrew C. Richardson, our Chief Financial Officer, in each case prior to his appointment to such position, to purchase shares of our common stock. The Management Warrants representing 2,862,687 underlying shares, which may be adjusted pursuant to a net settlement option, were issued pursuant to such agreements at fair value in exchange for a combined total of approximately $19.0 million in cash from such executives at the commencement of their respective employment. Mr. Weinreb and Mr. Herlitz’s warrants have exercise prices of $42.23 per share and Mr. Richardson’s warrant has an exercise price of $54.50 per share. Generally, the Management Warrants become exercisable in November 2016 and expire by February 2018. | |
As of September 30, 2014, the estimated $195.0 million fair value of the Sponsors Warrants representing warrants to purchase 1,916,667 shares and the estimated $249.7 million fair value of the Management Warrants representing warrants to purchase 2,862,687 shares have been recorded as liabilities because the holders of these warrants could require us to settle such warrants in cash upon a change of control. The estimated fair values for the outstanding Sponsors Warrants and Management Warrants were $141.8 million and $163.8 million, respectively, as of December 31, 2013. The fair values were estimated using an option pricing model and Level 3 inputs due to the unavailability of comparable market data, as further discussed in Note 7 — Fair Value of Financial Instruments. Decreases and increases in the fair value of the Sponsors Warrants and the Management Warrants are recognized as either warrant liability gains or losses, respectively, in the Condensed Consolidated Statements of Operations. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
NOTE 4 EARNINGS PER SHARE | ||||||||||||||
Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted EPS is computed after adjusting the numerator and denominator of the basic EPS computation for the effects of all potentially dilutive common shares. The dilutive effect of options and nonvested stock issued under stock-based compensation plans is computed using the treasury stock method. The dilutive effect of the Sponsors Warrants and Management Warrants is computed using the if-converted method. Gains associated with the Sponsors Warrants and Management Warrants are excluded from the numerator in computing diluted earnings per share because inclusion of such gains in the computation would be anti-dilutive. | ||||||||||||||
Information related to our EPS calculations is summarized as follows: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||
Basic EPS: | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | 45,615 | $ | 7,433 | $ | (55,449 | ) | $ | (92,233 | ) | ||||
Net income attributable to noncontrolling interests | — | (98 | ) | (12 | ) | (110 | ) | |||||||
Net income (loss) attributable to common stockholders | $ | 45,615 | $ | 7,335 | $ | (55,461 | ) | $ | (92,343 | ) | ||||
Denominator: | ||||||||||||||
Weighted average basic common shares outstanding | 39,465 | 39,454 | 39,459 | 39,447 | ||||||||||
Diluted EPS: | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 45,615 | $ | 7,335 | $ | (55,461 | ) | $ | (92,343 | ) | ||||
Less: Warrant liability gain | (24,690 | ) | — | — | — | |||||||||
Adjusted net income (loss) attributable to common stockholders | $ | 20,925 | $ | 7,335 | $ | (55,461 | ) | $ | (92,343 | ) | ||||
Denominator: | ||||||||||||||
Weighted average basic common shares outstanding | 39,465 | 39,454 | 39,459 | 39,447 | ||||||||||
Restricted stock and stock options | 405 | 253 | — | — | ||||||||||
Warrants | 3,301 | 2,732 | — | — | ||||||||||
Weighted average diluted common shares outstanding | 43,171 | 42,439 | 39,459 | 39,447 | ||||||||||
Basic earnings (loss) per share: | $ | 1.16 | $ | 0.19 | $ | (1.41 | ) | $ | (2.34 | ) | ||||
Diluted earnings (loss) per share: | $ | 0.48 | $ | 0.17 | $ | (1.41 | ) | $ | (2.34 | ) | ||||
The diluted EPS computation for the nine months ended September 30, 2014 excludes 1,037,740 stock options, 172,690 shares of restricted stock, 1,916,667 shares of common stock underlying the Sponsors Warrants and 2,862,687 shares of common stock underlying the Management Warrants because their inclusion would have been anti-dilutive. | ||||||||||||||
The diluted EPS computations for the nine months ended September 30, 2013 excludes 930,940 stock options, 122,332 shares of restricted stock, 1,916,667 shares of common stock underlying the Sponsor Warrants and 2,862,687 shares of common stock underlying the Management Warrants because their inclusion would have been anti-dilutive. | ||||||||||||||
RECENT_TRANSACTIONS
RECENT TRANSACTIONS | 9 Months Ended |
Sep. 30, 2014 | |
RECENT TRANSACTIONS | ' |
RECENT TRANSACTIONS | ' |
NOTE 5 RECENT TRANSACTIONS | |
In May 2014, we purchased 1,343 acres of undeveloped land located 13 miles north of The Woodlands for $67.2 million. On October 31, 2014, we purchased an additional 653 adjacent acres from a different seller. We have preliminarily planned for 1,835 acres of residential and 161 acres of commercial development on the combined sites, and estimate that the residential acres will yield over 4,600 lots. The first lots are expected to be finished and sold in 2016. This land acquisition will be developed by The Woodlands management team and is included in our Master Planned Communities segment. | |
IMPAIRMENT
IMPAIRMENT | 9 Months Ended |
Sep. 30, 2014 | |
IMPAIRMENT | ' |
IMPAIRMENT | ' |
NOTE 6 IMPAIRMENT | |
We review our real estate assets, including operating assets, land held for development and sale and developments in progress, for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. GAAP requires that if impairment indicators exist and the undiscounted cash flows expected to be generated by an asset are less than its carrying amount, an impairment charge should be recorded to write down the carrying amount of such asset to fair value (or for land held for sale, fair value less cost to sell). The impairment analysis does not consider the timing of future cash flows and whether the asset is expected to earn an above or below market rate of return. | |
Our investment in each of the Real Estate and Other Affiliates is evaluated periodically and as deemed necessary for recoverability and valuation declines that are other-than-temporary. If the decrease in value of our investment in a Real Estate and Other Affiliate is deemed to be other-than-temporary, our investment in such Real Estate and Other Affiliate is reduced to its estimated fair value. | |
No impairment charges were recorded during the three or nine months ended September 30, 2014 or 2013. We continually evaluate our strategic alternatives with respect to each of our properties and may revise our strategy from time to time, including our intent to hold the asset on a long-term basis or the timing of potential asset dispositions. For example, we may decide to sell property that is held for use and the sale price may be less than the carrying amount. As a result, these changes in strategy could result in impairment charges in future periods. | |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||||
NOTE 7 FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||
The following table presents, for each of the fair value hierarchy levels required under FASB Accounting Standards Codification (“ASC”) 820 Fair Value Measurement, our assets and liabilities that are measured at fair value on a recurring basis. | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||
Quoted Prices | Significant | Quoted Prices | Significant | |||||||||||||||||||||||
in Active | Other | Significant | in Active | Other | Significant | |||||||||||||||||||||
Markets for | Observable | Unobservable | Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash equivalents | $ | 200,014 | $ | 200,014 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||||||||||
Warrants | 444,680 | — | — | 444,680 | 305,560 | — | — | 305,560 | ||||||||||||||||||
Interest rate swaps | 3,195 | — | 3,195 | — | 4,164 | — | 4,164 | — | ||||||||||||||||||
Cash equivalents consist primarily of two registered money market mutual funds which invest in United States treasury securities that are valued at the net asset value of the underlying shares in the funds as of the close of business at the end of each period. The fair value approximates carrying value. | ||||||||||||||||||||||||||
The valuation of warrants is based on an option pricing valuation model. The inputs to the model include the fair value of the stock related to the warrants, exercise price of the warrants, term, expected volatility, risk-free interest rate and dividend yield and with respect to the Management Warrants, a discount for lack of marketability. | ||||||||||||||||||||||||||
The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates derived from observable market interest rate curves. | ||||||||||||||||||||||||||
The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) which are our Sponsors and Management Warrants: | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance as of January 1, | $ | 305,560 | $ | 123,573 | ||||||||||||||||||||||
Warrant liability loss | 139,120 | 148,706 | ||||||||||||||||||||||||
Balance as of September 30, | $ | 444,680 | $ | 272,279 | ||||||||||||||||||||||
The fair values were estimated using an option pricing model and Level 3 inputs due to the unavailability of comparable market data. Changes in the fair value of the Sponsors Warrants and the Management Warrants are recognized in earnings as a warrant liability gain or loss. | ||||||||||||||||||||||||||
Significant unobservable inputs used in the fair value measurement of our warrants designated as Level 3 as of September 30, 2014 is as follows: | ||||||||||||||||||||||||||
Unobservable Inputs | ||||||||||||||||||||||||||
Valuation | Expected | Marketability | ||||||||||||||||||||||||
Fair Value | Technique | Volatility (a) | Discount (b) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Option Pricing | ||||||||||||||||||||||||||
Warrants | $ | 444,680 | Valuation Model | 23 | % | 20.0% - 22.0% | ||||||||||||||||||||
(a) Based on our implied equity volatility. | ||||||||||||||||||||||||||
(b) Represents the discount rate for lack of marketability of the Management Warrants. The discount rates ranged from 29.0%-30.0% at December 31, 2013. | ||||||||||||||||||||||||||
The expected volatility and marketability discount in the table above are significant unobservable inputs used to estimate the fair value of our warrant liabilities. An increase in expected volatility would increase the fair value of the liability, while a decrease in expected volatility would decrease the fair value of the liability. As the period of restriction lapses, the marketability discount reduces to zero and increases the fair value of the warrants. | ||||||||||||||||||||||||||
The estimated fair values of our financial instruments that are not measured at fair value on a recurring basis are as follows: | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | 605,592 | $ | 605,592 | $ | 894,948 | $ | 894,948 | ||||||||||||||||||
Notes receivable, net | 12,724 | 12,724 | 20,554 | 20,554 | ||||||||||||||||||||||
Tax indemnity receivable, including interest | 333,877 | (b | ) | 320,494 | (b | ) | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Fixed-rate debt | $ | 956,739 | $ | 979,836 | $ | 971,786 | $ | 1,012,461 | ||||||||||||||||||
Variable-rate debt (c) | 899,623 | 899,623 | 509,737 | 509,737 | ||||||||||||||||||||||
SID bonds | 24,554 | 24,399 | 33,100 | 32,837 | ||||||||||||||||||||||
Total mortgages, notes and loans payable | $ | 1,880,916 | $ | 1,903,858 | $ | 1,514,623 | $ | 1,555,035 | ||||||||||||||||||
(a) Consists of bank deposits with original maturities of 90 days or less. | ||||||||||||||||||||||||||
(b) It is not practicable to estimate the fair value of the tax indemnity receivable, including interest, as the timing and ultimate amount received under the agreement is highly dependent on numerous future events that cannot be reliably predicted. | ||||||||||||||||||||||||||
(c) $172.0 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt. | ||||||||||||||||||||||||||
Notes receivable are carried at net realizable value, which approximates fair value. The estimated fair values of these notes receivable are categorized as Level 3 due to certain factors, such as current interest rates, terms of the note and credit worthiness of the borrower. | ||||||||||||||||||||||||||
The fair value of debt in the table above, not including our Senior Notes (as defined below), was estimated based on a discounted future cash payment model using Level 2 inputs, which includes risk premiums for loans of comparable quality and a risk free rate derived from the current London Interbank Offered Rate (“LIBOR”) or U.S. Treasury obligation interest rates. The discount rates reflect our judgment as to what the approximate current lending rates for loans or groups of loans with similar maturities and credit quality would be if credit markets were operating efficiently and assuming that the debt is outstanding through maturity. | ||||||||||||||||||||||||||
The fair value of our Senior Notes included in Fixed-rate debt in the table above was estimated based on quoted market prices for similar issues. | ||||||||||||||||||||||||||
The carrying amounts of cash and cash equivalents and accounts receivable approximate fair value because of the short-term maturity of these instruments. | ||||||||||||||||||||||||||
REAL_ESTATE_AND_OTHER_AFFILIAT
REAL ESTATE AND OTHER AFFILIATES | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
REAL ESTATE AND OTHER AFFILIATES | ' | |||||||||||||||||||||||
REAL ESTATE AND OTHER AFFILIATES | ' | |||||||||||||||||||||||
NOTE 8 REAL ESTATE AND OTHER AFFILIATES | ||||||||||||||||||||||||
In the ordinary course of business, we enter into partnerships or joint ventures primarily for the development and operations of real estate assets which are referred to as “Real Estate Affiliates”. These partnerships or joint ventures are accounted for in accordance with FASB ASC 810 Consolidation. | ||||||||||||||||||||||||
In accordance with ASC 810, we assess our joint ventures at inception to determine if any meet the qualifications of a variable interest entity (“VIE”). We consider a partnership or joint venture a VIE if: (a) the total equity investment is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity); or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or their rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events outlined in ASC 810, we reassess our initial determination of whether the partnership or joint venture is a VIE. | ||||||||||||||||||||||||
We perform a qualitative assessment of each VIE to determine if we are the primary beneficiary, as required by ASC 810. Under ASC 810, a company concludes that it is the primary beneficiary and consolidates the VIE if the company has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The company considers the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties in determining if the company is the primary beneficiary. As required by ASC 810, management’s assessment of whether the company is the primary beneficiary of a VIE is continuously performed. | ||||||||||||||||||||||||
We account for investments in joint ventures deemed to be VIEs for which we are not considered to be the primary beneficiary; but have significant influence, using the equity method, and investments in joint ventures where we do not have significant influence over the joint venture’s operations and financial policies, on the cost method. Generally, the operating agreements with respect to our Real Estate Affiliates provide that assets, liabilities and funding obligations are shared in accordance with our ownership percentages. | ||||||||||||||||||||||||
Our investment in real estate and other affiliates which are reported on the equity and cost methods are as follows: | ||||||||||||||||||||||||
Economic/ Legal Ownership | Carrying Value | Share of Earnings/Dividends | ||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(In percentages) | (In thousands) | (In thousands) | ||||||||||||||||||||||
Equity Method Investments: | ||||||||||||||||||||||||
Circle T Ranch and Power Center | 50 | % | 50 | % | $ | 9,005 | $ | 9,004 | $ | — | $ | — | $ | — | $ | — | ||||||||
HHMK Development (a) | 50 | % | 50 | % | 110 | 13 | 386 | 290 | 869 | 443 | ||||||||||||||
KR Holdings (a) | 50 | % | 50 | % | 41,171 | 19,764 | 5,066 | 2,716 | 14,801 | 7,907 | ||||||||||||||
Millennium Phase II (a) (b) | 81.43 | % | 81.43 | % | 1,937 | 2,174 | (243 | ) | (59 | ) | (378 | ) | (59 | ) | ||||||||||
Parcel C (a) | 50 | % | 50 | % | 7,638 | 5,801 | — | — | — | — | ||||||||||||||
Stewart Title | 50 | % | 50 | % | 3,770 | 3,843 | 383 | 382 | 901 | 899 | ||||||||||||||
Summerlin Apartments, LLC (a) | 50 | % | — | — | — | — | — | — | — | |||||||||||||||
Summerlin Las Vegas Baseball Club, LLC (a) | 50 | % | 50 | % | 10,835 | 10,636 | 22 | 220 | 198 | 220 | ||||||||||||||
Parcel D | 50 | % | 50 | % | 4,362 | 3,461 | — | — | — | — | ||||||||||||||
Woodlands Sarofim | 20 | % | 20 | % | 2,600 | 2,579 | 27 | 45 | 124 | 121 | ||||||||||||||
81,428 | 57,275 | 5,641 | 3,594 | 16,515 | 9,531 | |||||||||||||||||||
Cost basis investments | 3,916 | 3,746 | (132 | ) | — | 1,649 | 2,503 | |||||||||||||||||
Investment in Real Estate and Other Affiliates | $ | 85,344 | $ | 61,021 | $ | 5,509 | $ | 3,594 | $ | 18,164 | $ | 12,034 | ||||||||||||
(a) Equity method variable interest entities. | ||||||||||||||||||||||||
(b) Millennium Phase II was placed into service in the beginning of the third quarter of 2014 and moved from the Strategic Developments segment to the Operating Assets segment. | ||||||||||||||||||||||||
We are not the primary beneficiary of any of the VIEs listed above because we do not have the power to direct activities that most significantly impact the economic performance of such joint ventures and therefore we report our interests on the equity method. Our maximum exposure to loss as a result of these investments is limited to the aggregate carrying value of the investment as we have not provided any guarantees or otherwise made firm commitments to fund amounts on behalf of these VIEs. The aggregate carrying value of the unconsolidated VIEs was $61.7 million and $38.4 million as of September 30, 2014 and December 31, 2013, respectively. As of September 30, 2014, approximately $194.4 million of indebtedness was secured by the properties owned by our Real Estate Affiliates of which our share was approximately $106.0 million based upon our economic ownership. All of this debt is without recourse to us. | ||||||||||||||||||||||||
At September 30, 2014, the Company was the primary beneficiary of one VIE, which we therefore consolidated. The creditors of the consolidated VIE do not have recourse to the Company’s general credit. As of September 30, 2014, the carrying values of the assets and liabilities associated with the operations of the consolidated VIE were $20.7 million and $0.2 million, respectively. As of December 31, 2013, the carrying values of the assets and liabilities associated with the operations of the consolidated VIE were $20.6 million and $0.1 million, respectively. The assets of the VIE are restricted for use only by the particular VIE and are not available for our general operations. | ||||||||||||||||||||||||
Our recent and more significant investments in Real Estate Affiliates and the related accounting considerations are described below. | ||||||||||||||||||||||||
ONE Ala Moana Condominium Project | ||||||||||||||||||||||||
On October 11, 2011, we and an entity jointly owned by two local development partners formed a joint venture called HHMK Development, LLC to explore the development of a luxury condominium tower at the Ala Moana Center in Honolulu, Hawaii. On June 14, 2012, we formed another 50/50 joint venture, KR Holdings, with the same partner. We own 50% of each venture and our partners jointly own the remaining 50%. | ||||||||||||||||||||||||
On September 17, 2012, KR Holdings closed on two $20.0 million non-recourse mezzanine loan commitments with List Island Properties, LLC and A & B Properties, Inc. These loans have a blended interest rate of 12.00%, were drawn in full on May 15, 2013 and mature on April 30, 2018 with the option to extend for one year. In addition to the mezzanine loans, A & B Properties and List Island Properties, LLC both have profit interests in KR Holdings, which entitles them to receive a share of the profits, after a return of our capital plus a 13% preferred return on our capital. A & B Properties’ participation is capped at $3.0 million. | ||||||||||||||||||||||||
KR Holdings closed on a $132.0 million first mortgage construction loan on May 15, 2013 of which $79.7 million is outstanding as of September 30, 2014. Upon closing and under the terms of the venture agreement, we sold to KR Holdings our interest in the condominium rights for net cash proceeds of $30.8 million and a 50% equity interest in KR Holdings. Our partner contributed $16.8 million of cash for their 50% equity interest. The construction loan will be drawn over the course of construction, is secured by the condominium rights and buyers’ deposits, has no recourse to us, matures on May 15, 2016, and bears interest at one-month LIBOR plus 3.00%. Summarized financial information for KR Holdings as of September 30, 2014 includes total assets of $253.0 million, total liabilities of $170.2 million, gross sales of $163.9 million and net income of $29.6 million. The venture uses the percentage of completion method to recognize earnings and we recorded $5.1 million and $14.8 million in equity in earnings from Real Estate Affiliates related to KR Holdings in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2014, respectively. Our investment balance includes deferred profit of $1.5 million which is being recognized on the same percentage of completion basis as KR Holdings. We expect to complete the project and close on the sales of the units under contract in the fourth quarter 2014. | ||||||||||||||||||||||||
Millennium Woodlands Phase II, LLC | ||||||||||||||||||||||||
On May 14, 2012, we entered into a joint venture, Millennium Woodlands Phase II, LLC (“Millennium Phase II”), with The Dinerstein Companies, the same joint venture partner in the Millennium Waterway Apartments I project, for the construction of a new 314-unit Class A multi-family complex in The Woodlands Town Center. Our partner is the managing member of Millennium Phase II. As the managing member, our partner controls, directs, manages and administers the affairs of Millennium Phase II. On July 5, 2012, Millennium Phase II was capitalized by our contribution of 4.8 acres of land valued at $15.5 million to the joint venture, our partner’s contribution of $3.0 million in cash and a construction loan in the amount of $37.7 million which is guaranteed by our partner. The development of Millennium Phase II further expands our multi-family portfolio in The Woodlands Town Center. | ||||||||||||||||||||||||
Parcel C | ||||||||||||||||||||||||
On October 4, 2013, we entered into a joint venture agreement with a local developer, Kettler, Inc. (“Kettler”), to construct a 437-unit, Class A apartment building with 31,000 square feet of ground floor retail on Parcel C in downtown Columbia, Maryland. We contributed approximately five acres of land having an approximate book value of $4.0 million to the joint venture. Our land was valued at $23.4 million or $53,500 per constructed unit. When the venture closes on the construction loan and upon completion of certain other conditions, including obtaining completed site development and construction plans and an approved project budget, our partner will be required to contribute cash to the venture. | ||||||||||||||||||||||||
Summerlin Apartments, LLC | ||||||||||||||||||||||||
On January 24, 2014, we entered into a joint venture with a national multi-family real estate developer, The Calida Group (“Calida”), to construct, own and operate a 124-unit gated luxury apartment development. We and our partner each own 50% of the venture, and unanimous consent of the partners is required for all major decisions. This project represents the first residential development in Summerlin’s 400-acre downtown. We will contribute a 5.5-acre parcel of land with an agreed value of $3.2 million in exchange for a 50% interest in the venture when construction financing closes. Our partner will contribute cash for their 50% interest, act as the development manager, fund all pre-development activities, obtain construction financing and provide any guarantees required by the lender. Upon a sale of the property, we are entitled to our 50% share of proceeds and 100% of the proceeds in excess of an amount determined by applying a 7.0% capitalization rate to net operating income (“NOI”). The venture is expected to begin construction in the fourth quarter of 2014 with the first units available for rent by the fourth quarter of 2015. | ||||||||||||||||||||||||
Summerlin Las Vegas Baseball Club, LLC | ||||||||||||||||||||||||
On August 6, 2012, we entered into a joint venture for the purpose of acquiring 100% of the operating assets of the Las Vegas 51s, a Triple-A baseball team which is a member of the Pacific Coast League. We own 50% of the venture and our partners jointly own the remaining 50%. Unanimous consent of the partners is required for all major decisions. As of the date the joint venture acquired the baseball team, we had funded our capital contribution of $10.5 million. Our strategy in owning an interest is to pursue a potential relocation of the team to a to-be-built stadium in our Summerlin master planned community. Efforts to re-locate the team are ongoing and there can be no assurance that such a stadium will ultimately be built. | ||||||||||||||||||||||||
The Metropolitan Downtown Columbia Project | ||||||||||||||||||||||||
On October 27, 2011, we entered into a joint venture, Parcel D Development, LLC (“Parcel D”), with Kettler to construct a Class A apartment building with ground floor retail space in downtown Columbia, Maryland. We and our partner each own 50% of the venture, and unanimous consent of the partners is required for all major decisions. On July 11, 2013, the joint venture closed a $64.1 million construction loan which is non-recourse to us. The loan bears interest at one-month LIBOR plus 2.40% and matures in July 2020. At loan closing, our land contribution was valued at $53,500 per unit, or $20.3 million, and Kettler contributed $13.3 million in cash, of which $7.0 million was distributed to us. Both we and Kettler made additional contributions of $3.1 million to the joint venture in accordance with the loan agreement, thus increasing our total capital account to $16.4 million. This transaction was accounted for as a partial sale of land for which we recognized a net profit of $0.7 million. We expect the project to be substantially completed by the fourth quarter of 2014. | ||||||||||||||||||||||||
Upon formation of the joint venture, we determined that Parcel D was a VIE, and that we were not the primary beneficiary. Accordingly, we accounted for our investment in Parcel D using the equity method. Upon closing of the first mortgage construction loan, the entity was recapitalized resulting in a reconsideration of the initial determination of VIE status. As a result of the reconsideration, we determined that Parcel D was no longer considered a VIE. We continue to account for our investment in Parcel D using the equity method. | ||||||||||||||||||||||||
MORTGAGES_NOTES_AND_LOANS_PAYA
MORTGAGES, NOTES AND LOANS PAYABLE | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
MORTGAGES, NOTES AND LOANS PAYABLE | ' | ||||||||||||||
MORTGAGES, NOTES AND LOANS PAYABLE | ' | ||||||||||||||
NOTE 9 MORTGAGES, NOTES AND LOANS PAYABLE | |||||||||||||||
Mortgages, notes and loans payable are summarized as follows: | |||||||||||||||
September 30, | December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||
Fixed-rate debt: | |||||||||||||||
Collateralized mortgages, notes and loans payable | $ | 956,739 | $ | 971,786 | |||||||||||
Special Improvement District bonds | 24,554 | 33,100 | |||||||||||||
Variable-rate debt: | |||||||||||||||
Collateralized mortgages, notes and loans payable (a) | 899,623 | 509,737 | |||||||||||||
Total mortgages, notes and loans payable | $ | 1,880,916 | $ | 1,514,623 | |||||||||||
(a) As more fully described below, $172.0 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt. | |||||||||||||||
The following table presents our mortgages, notes, and loans payable by property: | |||||||||||||||
Carrying Value | |||||||||||||||
Interest | Maximum | September 30, | December 31, | ||||||||||||
$ In thousands | Maturity (a) | Rate | Facility | 2014 | 2013 | ||||||||||
Master Planned Communities | |||||||||||||||
Bridgeland Land Loan | June 2022 | 5.5 | % | $ | 15,874 | $ | 18,066 | ||||||||
Bridgeland Development Loan | June 2015 | 5 | %(d) | $ | 30,000 | 24,200 | — | ||||||||
Summerlin South SID Bonds - S108 | December 2016 | 5.95 | % | 694 | 823 | ||||||||||
Summerlin South SID Bonds - S124 | December 2019 | 5.95 | % | 256 | 285 | ||||||||||
Summerlin South SID Bonds - S128 | December 2020 | 7.3 | % | 665 | 707 | ||||||||||
Summerlin South SID Bonds - S128C | December 2030 | 6.05 | % | 5,392 | 5,511 | ||||||||||
Summerlin South SID Bonds - S132 | December 2020 | 6 | % | 3,232 | 3,962 | ||||||||||
Summerlin South SID Bonds - S151 | June 2025 | 6 | % | 6,421 | 6,623 | ||||||||||
Summerlin West SID Bonds - S808/S810 | April 2031 | 7.13 | % | 4,000 | 11,168 | ||||||||||
The Woodlands Master Credit Facility | August 2018 | 2.9 | %(d) | 250,000 | 176,663 | 176,663 | |||||||||
Master Planned Communities Total | 237,397 | 223,808 | |||||||||||||
Operating Assets | |||||||||||||||
70 Columbia Corporate Center (b) | June 2019 | 2.4 | %(d) | 20,000 | 16,287 | ||||||||||
Columbia Regional Building | March 2018 | 2.15 | %(d) | 23,008 | 18,960 | 9,207 | |||||||||
One Hughes Landing | November 2017 | 2.8 | %(d) | 38,000 | 34,417 | 19,128 | |||||||||
Two Hughes Landing | September 2018 | 2.8 | %(d) | 41,230 | 17,828 | 10 | |||||||||
1701 Lake Robbins | April 2017 | 5.81 | % | 4,600 | — | ||||||||||
Millennium Waterway Apartments | June 2022 | 3.75 | % | 55,584 | 55,584 | ||||||||||
110 N. Wacker (c) | October 2019 | 5.21 | %(d) | 29,000 | 29,000 | ||||||||||
9303 New Trails | December 2023 | 4.88 | % | 13,157 | 13,398 | ||||||||||
Outlet Collection at Riverwalk | October 2018 | 2.9 | %(d) | 64,400 | 44,703 | — | |||||||||
The Woodlands Resort & Conference Center | February 2019 | 3.65 | %(d) | 95,000 | 66,177 | 36,100 | |||||||||
Victoria Ward | September 2016 | 3.34 | %(d) | 250,000 | 238,716 | 238,716 | |||||||||
20/25 Waterway Avenue | May 2022 | 4.79 | % | 14,383 | 14,450 | ||||||||||
3 Waterway Square | August 2028 | 3.94 | % | 52,000 | 52,000 | ||||||||||
4 Waterway Square | December 2023 | 4.88 | % | 38,530 | 39,237 | ||||||||||
Capital lease obligations | various | 3.6 | % | 156 | 205 | ||||||||||
Operating Assets Total | 648,211 | 523,322 | |||||||||||||
Strategic Developments | |||||||||||||||
Downtown Summerlin | July 2019 | 2.4 | %(d) | 311,800 | 172,913 | — | |||||||||
Downtown Summerlin SID Bonds - S108 | December 2016 | 5.95 | % | 388 | 452 | ||||||||||
Downtown Summerlin SID Bonds - S128 | December 2030 | 6.05 | % | 3,506 | 3,569 | ||||||||||
ExxonMobil | June 2019 | 2.05 | %(d) | 143,000 | 23,702 | — | |||||||||
Hughes Landing Retail | December 2018 | 2.1 | %(d) | 36,575 | 14,259 | 913 | |||||||||
One Lake’s Edge | November 2018 | 2.65 | %(d) | 73,525 | 18,085 | — | |||||||||
Waterway Hotel | August 2019 | 2.8 | %(d) | 69,300 | — | — | |||||||||
Strategic Developments Total | 232,853 | 4,934 | |||||||||||||
Other Corporate Financing Arrangements | July 2018 | 3 | % | 22,700 | 20,434 | 21,309 | |||||||||
Senior Notes | October 2021 | 6.88 | % | 750,000 | 750,000 | ||||||||||
Unamortized underwriting fees | (7,979 | ) | (8,750 | ) | |||||||||||
$ | 1,880,916 | $ | 1,514,623 | ||||||||||||
(a) Maturity date includes any extension periods which can be exercised at our option. | |||||||||||||||
(b) The note we assumed on August 15, 2012 was fully paid with cash on hand on April 15, 2014. On June 30, 2014, we entered into a new $20.0 million mortgage loan at one-month LIBOR plus 2.25%. | |||||||||||||||
(c) The $29.0 million outstanding principal balance is swapped to a 5.21% fixed rate through maturity. | |||||||||||||||
(d) The interest rate presented is based on the one or three month LIBOR rate, as applicable, at September 30, 2014. | |||||||||||||||
The weighted average interest rate on our mortgages, notes and loans payable was 4.73% and 5.25% as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||
As of September 30, 2014, we had $1.9 billion of mortgages, notes and loans payable. All of the mortgage debt is secured by the individual properties as listed in the table above and is non-recourse to HHC, except for: | |||||||||||||||
(i) $750.0 million of Senior Notes; | |||||||||||||||
(ii) $311.8 million financing for the Downtown Summerlin development which has a maximum recourse to us of 35.0% assuming the loan is fully drawn; | |||||||||||||||
(iii) $64.4 million of construction financing for the Outlet Collection at Riverwalk with an initial maximum recourse of 50%, which will be reduced to 25.0% upon completion of the project and the achievement of an 11.0% debt yield and a minimum level of tenant sales per square foot for twelve months, | |||||||||||||||
(iv) $20.4 million of Other Corporate Financing Arrangements; and | |||||||||||||||
(v) $7.0 million parent guarantee associated with the 110 N. Wacker mortgage. | |||||||||||||||
The Woodlands Master Credit Facility and The Woodlands Resort & Conference Center loans are recourse to the entities that directly own The Woodlands operations. Certain of our loans contain provisions which grant the lender a security interest in the operating cash flow of the property that represents the collateral for the loan. Such provisions are not expected to impact our operations in 2014. Certain mortgage notes may be prepaid, but may be subject to a prepayment penalty equal to a yield-maintenance premium, defeasance, or a percentage of the loan balance. As of September 30, 2014, land, buildings and equipment and developments in progress with a cost basis of $2.5 billion have been pledged as collateral for our mortgages, notes and loans payable. | |||||||||||||||
As of September 30, 2014, we were in compliance with all of the financial covenants related to our debt agreements. | |||||||||||||||
Master Planned Communities | |||||||||||||||
On August 8, 2013, The Woodlands refinanced its existing Master Credit Facility with a $250.0 million credit facility consisting of a $125.0 million term loan and a $125.0 million revolver (together, the “TWL Facility”). The TWL Facility bears interest at one-month LIBOR plus 2.75% and has an initial three-year term through August 2016 with two, one-year extension options. The extension options require a reduction of the total commitment to $220.0 million for the first extension and $185.0 million for the second extension. The TWL Facility also contains certain covenants that, among other things, require the maintenance of specified financial ratios, limit the incurrence of additional recourse indebtedness at The Woodlands, and limit distributions from The Woodlands to us based on a loan-to-value test. There was $73.3 million of undrawn capacity and $47.1 million of available borrowing capacity under the TWL Facility based on the collateral underlying the facility and loan covenants as of September 30, 2014. | |||||||||||||||
During the second quarter of 2012, we refinanced $18.1 million of existing debt related to our Bridgeland Master Planned Community with a ten-year term loan facility at a fixed interest rate of 5.50% for the first five years and three-month LIBOR plus 2.75% for the remaining term and maturing on June 29, 2022. Beginning on June 29, 2014, annual principal payments are required in the amount of 5.00% of the then outstanding principal balance. In addition, we simultaneously entered into a three-year revolving credit facility with aggregate borrowing capacity of $140.0 million of which $83.9 million has been utilized as of September 30, 2014 and which has a $30.0 million maximum outstanding loan balance at any time. The revolving loan bears interest at the greater of 5.00% or one-month LIBOR plus 3.25% and matures on June 29, 2015. This loan is intended to provide working capital at Bridgeland to accelerate development efforts to meet the demand of homebuilders for finished lots in the community. The Bridgeland loans are cross-collateralized and cross-defaulted and the Bridgeland Master Planned Community serves as collateral for the loans. The loans also require that Bridgeland maintain a minimum $3.0 million cash balance and a minimum net worth of $250.0 million. Additionally, we are restricted from making cash distributions from Bridgeland unless the revolving credit facility has no outstanding balance and one year of real estate taxes and debt service on the term loan have been escrowed with the lender. | |||||||||||||||
The Summerlin Master Planned Community uses Special Improvement District (“SID”) bonds to finance certain common infrastructure improvements. These bonds are issued by the municipalities and, although unrated, are secured by the assessments on the land. The majority of proceeds from each bond issued is held in a construction escrow and disbursed to us as infrastructure projects are completed, inspected by the municipalities and approved for reimbursement. Accordingly, the SID bonds have been classified as debt, and the Summerlin Master Planned Community pays the debt service on the bonds semi-annually. As Summerlin sells land, the buyers assume a proportionate share of the bond obligation at closing, and the residential sales contracts provide for the reimbursement of the principal amounts that we previously paid with respect to such proportionate share of the bond. | |||||||||||||||
Operating Assets | |||||||||||||||
On July 18, 2014, we assumed a $4.6 million non-recourse mortgage loan at 1701 Lake Robbins. The loan bears fixed interest at 5.81% and has a maturity date of April 2017. | |||||||||||||||
On April 15, 2014, we paid $17.0 million cash in full satisfaction of the $16.0 million participating loan that we assumed as part of the acquisition of 70 Columbia Corporate Center (“70 CCC”) in August 2012. The non-recourse, interest only promissory note was due to mature on August 31, 2017 and included a participation right to the lender for 30.0% of the appreciation in the market value of the property after our 10.0% cumulative preferred return and repayment of the outstanding debt and our contributed equity. The final payment included approximately $0.7 million for this participation right based upon the appraised value of the property. On June 27, 2014, we closed on a new $20.0 million loan for 70 CCC that bears interest at one-month LIBOR plus 2.25% and has an initial maturity date of July 2017 with two, one-year extension options. | |||||||||||||||
On October 24, 2013, we closed on a $64.4 million partial recourse construction loan for the Outlet Collection at Riverwalk. The loan bears interest at one-month LIBOR plus 2.75%, with an initial maturity date of October 24, 2016 with two, one-year extension options. The initial recourse amount of 50.0% will be reduced to 25.0% upon completion of the project and the achievement of an 11.0% debt yield and a minimum level of tenant sales per square foot for 12 months. | |||||||||||||||
On September 11, 2013, we closed on a non-recourse financing totaling $41.2 million for the construction of Two Hughes Landing, the second Class A office building in the 66-acre mixed-use development of Hughes Landing on Lake Woodlands, located in The Woodlands. Two Hughes Landing will be a 197,000 square foot, eight-story office building with an adjacent parking garage containing approximately 630 spaces. The loan matures on September 11, 2016 and has two, one-year extension options. The loan bears interest at one-month LIBOR plus 2.65% due monthly. | |||||||||||||||
On August 2, 2013, we refinanced the $43.3 million construction loan with a non-recourse first mortgage financing totaling $52.0 million on 3 Waterway Square, an 11-story, 232,000 square foot office building in The Woodlands. The loan bears interest at 3.94% and matures on August 11, 2028. | |||||||||||||||
On March 15, 2013, we closed on a non-recourse financing totaling $23.0 million for the redevelopment of the Columbia Regional Building (also known as the Rouse Building), an office building located in Columbia, Maryland. The loan bears interest at one-month LIBOR plus 2.00%. The loan matures on March 15, 2016, and has two, one-year extension options. | |||||||||||||||
On February 8, 2013, we closed on a $95.0 million non-recourse construction loan which repaid the existing $36.1 million mortgage and provides funding for the redevelopment of The Woodlands Resort & Conference Center. The loan bears interest at one-month LIBOR plus 3.50% and has an initial maturity of February 8, 2016, with three, one-year extension options. The loan is currently secured by a 624-room (440 original rooms plus 184 newly built rooms), 40-acre conference center and resort located within The Woodlands and requires the maintenance of specified financial ratios after completion of construction. Beginning in the first quarter of 2015, the room count will reduce to 406 after 218 original cottage rooms that were built in 1974 are demolished. | |||||||||||||||
On November 14, 2012, we closed on a non-recourse financing totaling $38.0 million for the construction of One Hughes Landing, an eight-story, 197,000 square foot office building in The Woodlands. The loan bears interest at one-month LIBOR plus 2.65% and matures on November 14, 2015 and has two, one-year extension options. | |||||||||||||||
On May 31, 2012, as part of the acquisition of our former partner’s interest in Millennium Waterway Apartments, located within The Woodlands, we closed on a $55.6 million non-recourse first mortgage loan. The proceeds from the mortgage were used to refinance the joint venture’s existing debt and to fund our acquisition of the partner’s interest in the property. The loan has a fixed interest rate of 3.75% and matures on June 1, 2022. | |||||||||||||||
On April 26, 2012, we closed on a $14.5 million non-recourse financing secured by 20/25 Waterway Avenue, located within The Woodlands. The loan bears interest at 4.79% and matures on May 1, 2022. | |||||||||||||||
On December 5, 2011, we obtained a $41.0 million loan for 4 Waterway Square and a $14.0 million loan for 9303 New Trails, both located within The Woodlands. These non-recourse mortgages mature on December 11, 2023 and have fixed interest rates of 4.88%. | |||||||||||||||
On September 30, 2011, we closed on a $250.0 million non-recourse first mortgage financing secured by Ward Village in Honolulu, Hawaii, that bears interest at one-month LIBOR plus 2.50%. The loan may be drawn to a maximum $250.0 million to fund capital expenditures at the property, provided that the outstanding principal balance cannot exceed 65% of the property’s appraised value, and the borrowers are required to have a minimum 10.0% debt yield to draw additional loan proceeds under the facility. The loan permits partial repayment during its term in connection with property releases for development. In the third quarter of 2013, certain properties securing the loan were approved for condominium development. As a result, the properties were removed from the collateral pool and a minor principal paydown of the loan was required. The loan matures on September 29, 2016, and $143.0 million of the principal balance was swapped to a 3.80% fixed rate for the term of the loan. The unused portion of this mortgage was $11.3 million as of September 30, 2014. | |||||||||||||||
On May 10, 2011, we closed a $29.0 million first mortgage financing secured by our office building located at 110 N. Wacker Drive in Chicago, IL. The loan term is coterminous with the expiration of the first term of the existing tenant’s lease. The loan has an interest-only period through April 2015 and, thereafter, amortizes ratably to $12.0 million through maturity on October 31, 2019. We provided a $7.0 million repayment guarantee for the loan, which is reduced on a dollar for dollar basis during the amortization period. | |||||||||||||||
Strategic Developments | |||||||||||||||
On November 6, 2014 we closed on a $600.0 million non-recourse construction loan for the Waiea and Anaha Condominium towers bearing interest at one-month LIBOR plus 6.75%. The loan has an initial maturity date of November 6, 2017, with two, one-year extension options. | |||||||||||||||
On October 3, 2014, we closed on a $37.1 million construction financing for our Hughes Landing Hotel. The loan bearing interest at one-month LIBOR plus 2.50%. The loan has an initial maturity of October 2018, with two, one-year extension options. | |||||||||||||||
On August 6, 2014, we closed on a $69.3 million non-recourse construction financing for the Waterway Hotel bearing interest at one-month LIBOR plus 2.65%. The loan has an initial maturity of August 2018, with a one-year extension option. The development will be a 302-room Westin-branded hotel that will be owned and managed by us. | |||||||||||||||
On July 15, 2014, we closed a $311.8 million financing for the construction of Downtown Summerlin development bearing interest at one-month LIBOR plus 2.25%. The loan has an initial maturity date of July 15, 2017, with two, one-year extension options. The loan contains a maximum recourse to the Company of 35.0% of the outstanding principal plus all unpaid interest. Upon completion of the project and achievement of a 1.25x debt service coverage ratio, 90.0% occupancy and a minimum level of tenant sales per square foot for 12 months, the recourse amount will decrease to 10.0% of the outstanding principal. Due to the recent opening and its 50.7% occupancy as of November 1, 2014, we have not met this criteria. | |||||||||||||||
On June 30, 2014, we closed on a $143.0 million non-recourse construction financing for two office buildings bearing interest at one-month LIBOR plus 1.90%. The loan has an initial maturity date of June 30, 2018, with a one-year extension option. The office buildings are substantially pre-leased to ExxonMobil. | |||||||||||||||
On December 20, 2013, we closed on a $36.6 million non-recourse loan for the construction of Hughes Landing Retail, a 123,000 square foot retail component of Hughes Landing bearing interest at one-month LIBOR plus 1.95%. The loan has an initial maturity date of December 20, 2016, with two, one-year extension options. | |||||||||||||||
On November 25, 2013, we closed on a $73.5 million non-recourse loan for the construction of an eight-story, Class A, multi-family project within Hughes Landing called One Lake’s Edge. One Lake’s Edge will be comprised of 390 multi-family units (averaging 984 square feet per unit), 22,289 square feet of retail and an approximately 750 space parking garage, all situated on 2.92 acres of land. The loan bears interest at one-month LIBOR plus 2.50% with an initial maturity date of November 25, 2016, with two, one-year extension options. | |||||||||||||||
On September 11, 2013, we closed on a non-recourse financing totaling $41.2 million for the construction of Two Hughes Landing, the second Class A office building in the 66-acre mixed-use development of Hughes Landing on Lake Woodlands, located in The Woodlands. Two Hughes Landing will be a 197,000 square foot, eight-story office building with an adjacent parking garage containing approximately 630 spaces. The loan matures on September 11, 2016 and has two, one-year extension options. The loan bears interest at one-month LIBOR plus 2.65% due monthly. | |||||||||||||||
Corporate | |||||||||||||||
On October 2, 2013, we issued $750.0 million in aggregate principal amount of 6.875% Senior Notes due 2021 (the “Senior Notes”) and raised approximately $741.3 million of net cash proceeds. Interest is payable semiannually, on April 1 and October 1 of each year starting in April 2014. At any time prior to October 1, 2016, we may redeem up to 35% of the Senior Notes at a price equal to 106.875% using the proceeds from equity offerings. We may redeem all or part of the Senior Notes at any time on or after October 1, 2016 with a declining call premium thereafter to maturity. The Senior Notes contain customary terms and covenants for non-investment grade senior notes and have no maintenance covenants. |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||||||
NOTE 10 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||
We are exposed to interest rate risk related to our variable interest debt, and we manage this risk by utilizing interest rate derivatives. Our objectives in using interest rate derivatives are to add stability to interest costs by reducing our exposure to interest rate movements. To accomplish this objective, we use interest rate swaps and caps as part of our 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’s fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. | ||||||||||||||||
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income (“AOCI”) 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. During the nine months ended September 30, 2014, the ineffective portion recorded in earnings was insignificant. | ||||||||||||||||
As of September 30, 2014, we had gross notional amounts of $172.0 million for interest rate swaps and a $100.0 million interest rate cap that were designated as cash flow hedges of interest rate risk. The fair value of the interest rate cap derivative was insignificant. | ||||||||||||||||
If the interest rate swap agreements are terminated prior to their maturity, the amounts previously recorded in AOCI are recognized into earnings over the period that the hedged transaction impacts earnings. If the hedging relationship is discontinued because it is probable that the forecasted transaction will not occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. | ||||||||||||||||
Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. Over the next 12 months, we estimate that an additional $2.3 million will be reclassified to interest expense. | ||||||||||||||||
The table below presents the fair value of our derivative financial instruments which are included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheets: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Interest Rate Swaps | $ | 3,195 | $ | 4,164 | ||||||||||||
Total derivatives designated as hedging instruments | $ | 3,195 | $ | 4,164 | ||||||||||||
The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
2014 | 2013 | Location of Gain | 2014 | 2013 | ||||||||||||
(Loss) Reclassified | Amount of Loss | Amount of Gain | ||||||||||||||
Cash Flow Hedges | Amount of Gain | Amount of Loss | from AOCI into | Reclassified from | Reclassified from | |||||||||||
Recognized in OCI | Recognized in OCI | Earnings | AOCI into Earnings | AOCI into Earnings | ||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Interest Rate Swaps | $ | 229 | $ | (407 | ) | Interest Expense | $ | (555 | ) | $ | 6 | |||||
$ | 229 | $ | (407 | ) | $ | (555 | ) | $ | 6 | |||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Location of Loss | Amount of Loss | Amount of Loss | ||||||||||||||
Cash Flow Hedges | Amount of Loss | Amount of Gain | Reclassified from | Reclassified from | Reclassified from | |||||||||||
Recognized in OCI | Recognized in OCI | AOCI into Earnings | AOCI into Earnings | AOCI into Earnings | ||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Interest Rate Swaps | $ | (742 | ) | $ | 1,079 | Interest Expense | $ | (1,644 | ) | $ | (1,041 | ) | ||||
$ | (742 | ) | $ | 1,079 | $ | (1,644 | ) | $ | (1,041 | ) |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
NOTE 11 INCOME TAXES | |
Several of our subsidiaries are involved in a dispute with the IRS relating to years in which those subsidiaries were owned by General Growth Properties (“GGP”), and in connection therewith, GGP has provided us with an indemnity against certain potential tax liabilities. Pursuant to the Tax Matters Agreement, GGP has indemnified us from and against 93.75% of any and all losses, claims, damages, liabilities and reasonable expenses to which we become subject (the “Tax Indemnity”), in each case solely to the extent directly attributable to certain taxes related to sales of certain assets in our Master Planned Communities segment prior to March 31, 2010 (“MPC Taxes”), in an amount up to $303.8 million, plus interest and penalties related to these amounts (the “Indemnity Cap”) so long as GGP controls the action in the United States Tax Court (the “Tax Court”) related to the dispute with the IRS as described below. We recorded the Tax Indemnity receivable at the Indemnity Cap amount as of the spinoff date. The unrecognized tax benefits and related accrued interest recorded through September 30, 2014are primarily related to the taxes that are the subject of the Tax Indemnity. We have recorded interest income receivable on the Tax Indemnity receivable in the amounts of $57.5 million and $38.6 million as of September 30, 2014 and December 31, 2013, respectively. | |
On May 6, 2011, GGP filed Tax Court petitions on behalf of the two former taxable REIT subsidiaries of GGP seeking a redetermination of federal income tax for the years 2007 and 2008. The petitions seek to overturn determinations by the IRS that the taxpayers were liable for combined deficiencies totaling $144.1 million. On October 20, 2011, GGP filed a motion in the Tax Court to consolidate the cases of the two former taxable REIT subsidiaries of GGP subject to litigation with the Internal Revenue Service due to the common nature of the cases’ facts and circumstances and the issues being litigated. The Tax Court granted the motion to consolidate. The case was heard by the Tax Court in November 2012. The Tax Court filed their ruling in favor of the IRS on June 2, 2014. The Tax Court ruling may be appealed to the Fifth Circuit Court of Appeals. A decision whether to appeal has not yet been made. The time period to appeal will expire during the fourth quarter of 2014. | |
The timing of the utilization of the tax assets attributable to indemnified and non-indemnified gains results in changes to the Tax Indemnity receivable and is dependent on numerous future events, such as the timing of recognition of indemnified and non-indemnified gains, the amount of each type of gain recognized in each year, the use of specific deductions and the ultimate amount of indemnified gains recognized. These non-cash changes could be material to our financial statements. Resolution of the Tax Court case noted above could also result in material changes to the Master Planned Community deferred gains and the timing of utilization of the tax assets, both of which could result in changes to the Tax Indemnity receivable. We record the Tax Indemnity receivable based on the amounts indemnified which are determined in accordance with the provisions set forth in ASC 740 Income Taxes. | |
Unrecognized tax benefits recorded pursuant to uncertain tax positions were $174.4 million and $90.5 million as of September 30, 2014and December 31, 2013, respectively, excluding interest, of which this entire amount would not impact our effective tax rate. Accrued interest related to these unrecognized tax benefits amounted to $57.5 million and $38.7 million as of September 30, 2014and December 31, 2013, respectively. We recognized a decrease in interest expense related to the unrecognized tax benefits of $1.4 million for the three months ended September 30, 2014.The decrease to interest expense recorded this quarter is mainly attributable to the statute of limitations expiring on an uncertain tax position. The increase in unrecognized tax benefits recorded this quarter is due to a change in method of accounting whereby the timing and recognition of certain Master Planned Community gains was modified. | |
During the nine months ended September 30, 2014, the tax indemnity receivable increased by $13.4 million. This increase was due to the increase in the related interest income of $18.9 million and a loss on remeasurement of $5.5 million. | |
We have significant permanent differences, primarily from warrant liability gains and losses, interest income on the tax indemnity receivable, and changes in valuation allowances that cause our effective tax rates to deviate greatly from statutory rates. The effective tax rates based upon actual operating results were 1.3% and (896.5)% for the three and nine months ended September 30, 2014, respectively, compared to 41.4% and (29.5)% for the three and nine months ended September 30, 2013, respectively. The changes in the tax rates were primarily attributable to the changes in the warrant liability, the valuation allowance, unrecognized tax benefits and other permanent items. | |
We file a consolidated corporate tax return which includes all of our subsidiaries with the exception of Victoria Ward, Limited (“Ward”), substantially all of which is owned by us. Ward elected to be taxed as a REIT, commencing with the taxable year beginning January 1, 2002. Ward has satisfied the REIT distribution requirements for 2013. In connection with the planned condominium development of Ward that was approved by the Hawaii Real Estate Commission during the fourth quarter of 2013, the Company now intends to revoke the REIT election during 2015, before future phases of condominium development commence. As a result of our intention to revoke REIT status, we recorded deferred tax liabilities in the fourth quarter 2013 of $48.0 million for book and tax basis differences that we no longer expect to reverse while Ward is a REIT. | |
STOCKBASED_PLANS
STOCK-BASED PLANS | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
STOCK-BASED PLANS | ' | ||||||
STOCK-BASED PLANS | ' | ||||||
NOTE 12 STOCK-BASED PLANS | |||||||
Our stock based plans are described, and informational disclosures are provided, in the Notes to the Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2013. | |||||||
Stock Options | |||||||
The following table summarizes our stock option plan: | |||||||
Stock Options | Weighted | ||||||
Average Exercise | |||||||
Price | |||||||
Stock Options outstanding at January 1, 2014 | 965,440 | $ | 64.57 | ||||
Granted | 105,000 | 146 | |||||
Forfeited | (32,700 | ) | 85.27 | ||||
Stock Options outstanding at September 30, 2014 | 1,037,740 | $ | 72.16 | ||||
In February 2014, certain employees were granted stock options, half of which cliff vest on December 31, 2018. The remaining options also cliff vest on December 31, 2018, however, the amount of options are diminished if certain prescribed shareholder return hurdles are not met. Option grantees must be employed by the Company on the vesting date to be eligible to receive the award. | |||||||
Restricted Stock | |||||||
Restricted stock awards issued under The Howard Hughes Corporation 2010 Incentive Plan provide that shares awarded may not be sold or otherwise transferred until restrictions have lapsed as established by the Compensation Committee of our Board of Directors. For the three and nine months ended September 30, 2014, compensation expense of $1.1 million and $2.9 million, respectively, is included in general and administrative expense on our Condensed Consolidated Statements of Operations related to restricted stock awards. The balance of unamortized restricted stock awards as of September 30, 2014 was $11.4 million, which is expected to be expensed over a weighted-average period of 3.5 years. | |||||||
The following table summarizes restricted stock activity: | |||||||
Restricted | Weighted | ||||||
Stock | Average Grant | ||||||
Date Fair Value | |||||||
Restricted stock outstanding at January 1, 2014 | 122,332 | $ | 75.21 | ||||
Granted | 61,750 | 126.38 | |||||
Vested | (11,394 | ) | 97.72 | ||||
Restricted Stock outstanding at September 30, 2014 | 172,688 | $ | 92.02 | ||||
In addition to the granting of restricted stock to certain members of management, we award restricted stock to our non-employee directors as part of their annual retainer. The restriction on the non-employee director shares lapse in May of each year. In February 2014, certain employees were granted restricted stock, half of which cliff vest on December 31, 2018. The remaining restricted stock awards also cliff vest on December 31, 2018, however, the amount of restricted stock awards are diminished if certain prescribed shareholder return hurdles are not met. Generally, upon termination of employment, the restricted shares that have not vested are forfeited. | |||||||
OTHER_ASSETS_AND_LIABILITIES
OTHER ASSETS AND LIABILITIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
OTHER ASSETS AND LIABILITIES | ' | |||||||
OTHER ASSETS AND LIABILITIES | ' | |||||||
NOTE 13 OTHER ASSETS AND LIABILITIES | ||||||||
Prepaid Expenses and Other Assets | ||||||||
The following table summarizes the significant components of prepaid expenses and other assets. | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Special Improvement District receivable | $ | 39,777 | $ | 39,688 | ||||
Equipment, net of accumulated depreciation of $2.0 million and $0.7 million, respectively | 20,662 | 21,978 | ||||||
Tenant incentives and other receivables | 6,361 | 6,757 | ||||||
Federal income tax receivable | 5,809 | 6,053 | ||||||
Prepaid expenses | 9,461 | 4,744 | ||||||
Below-market ground leases | 19,748 | 20,002 | ||||||
Condominium deposits | 137,407 | 12,405 | ||||||
Security and escrow deposits | 38,577 | 28,082 | ||||||
Above-market tenant leases | 941 | 1,095 | ||||||
Uncertain tax position asset | 20,131 | 13,528 | ||||||
In-place leases | 8,037 | 9,306 | ||||||
Intangibles | 3,624 | 3,714 | ||||||
Other | 3,731 | 6,588 | ||||||
$ | 314,266 | $ | 173,940 | |||||
The $140.3 million increase as of September 30, 2014 compared to December 31, 2013 primarily relates to the increase of $125.0 million in restricted condominium cash deposits for the two new market rate towers at Ward Village for which we began public sales on February 1, 2014, a $10.5 million increase in security and escrow deposits primarily related to the South Street Seaport project and the $6.6 million increase in our uncertain tax position asset as more fully discussed in Note 11 — Income Taxes. | ||||||||
Accounts Payable and Accrued Expenses | ||||||||
The following table summarizes the significant components of accounts payable and accrued expenses. | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Construction payables | $ | 194,197 | $ | 106,741 | ||||
Accounts payable and accrued expenses | 34,687 | 46,998 | ||||||
Condominium deposits | 137,407 | 12,405 | ||||||
Membership deposits | 20,908 | 24,830 | ||||||
Above-market ground leases | 2,312 | 2,431 | ||||||
Deferred income | 33,044 | 18,963 | ||||||
Accrued interest | 28,793 | 17,463 | ||||||
Accrued real estate taxes | 9,860 | 8,581 | ||||||
Tenant and other deposits | 16,768 | 9,490 | ||||||
Insurance reserve | — | 1,417 | ||||||
Accrued payroll and other employee liabilities | 16,151 | 15,666 | ||||||
Special assessment | 2,603 | 2,603 | ||||||
Interest rate swaps | 3,195 | 4,164 | ||||||
Other | 16,536 | 12,239 | ||||||
$ | 516,461 | $ | 283,991 | |||||
The $232.5 million increase as of September 30, 2014 compared to December 31, 2013 is primarily due to the increase of $125.0 million in condominium deposits for the two new market rate towers at Ward Village, a $87.5 million increase in construction payables primarily due to increased development activities at Downtown Summerlin, The Woodlands Resort & Conference Center, Outlet Collection at Riverwalk, and Hughes Landing, a $14.1 million increase in deferred income primarily due to increased land sales and the deferral of a portion of the income for post-sale land development obligations at our Summerlin MPC and an $11.3 million increase in accrued interest relating to our Senior Notes. | ||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (''AOCI'') | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ("AOCI") | ' | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ("AOCI") | ' | |||||||||
NOTE 14 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (“AOCI”) | ||||||||||
The following table summarizes AOCI for the period indicated: | ||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) | ||||||||||
Gains and Losses on Cash Flow Hedges | ||||||||||
(In thousands) | ||||||||||
For the Three Months | ||||||||||
Ended September 30, 2014 | ||||||||||
Balance as of July 1, 2014 | $ | (8,281 | ) | |||||||
Other comprehensive income before reclassifications | 49 | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 555 | |||||||||
Net current-period other comprehensive income | 604 | |||||||||
Balance as of September 30, 2014 | $ | (7,677 | ) | |||||||
For the Nine Months | ||||||||||
Ended September 30, 2014 | ||||||||||
Balance as of January 1, 2014 | $ | (8,222 | ) | |||||||
Other comprehensive income before reclassifications | (1,099 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,644 | |||||||||
Net current-period other comprehensive income | 545 | |||||||||
Balance as of September 30, 2014 | $ | (7,677 | ) | |||||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits to profit (loss). | ||||||||||
The following table summarizes the amounts reclassified out of AOCI for the period indicated: | ||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss)(a) | ||||||||||
(In thousands) | ||||||||||
Amounts reclassified from Accumulated Other | ||||||||||
Comprehensive Income (Loss) | ||||||||||
Accumulated Other Comprehensive | For the Three Months | For the Nine Months | Affected line item in the | |||||||
Income (Loss) Components | Ended September 30, 2014 | Ended September 30, 2014 | Statement of Operations | |||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate swap contracts | $ | (631 | ) | $ | (1,867 | ) | Interest expense | |||
76 | 223 | Provision for income taxes | ||||||||
Total reclassifications for the period | $ | (555 | ) | $ | (1,644 | ) | Net of tax | |||
(a) Amounts in parentheses indicate debits to profit (loss). | ||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2014 | |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 15 COMMITMENTS AND CONTINGENCIES | |
In the normal course of business, from time to time, we are involved in legal proceedings relating to the ownership and operations of our properties. In management’s opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a material effect on our consolidated financial position, results of operations or liquidity. | |
We had outstanding letters of credit and surety bonds of $61.2 million and $58.7 million as of September 30, 2014 and December 31, 2013, respectively. These letters of credit and bonds were issued primarily in connection with insurance requirements, special real estate assessments and construction obligations. | |
On June 27, 2013, the City of New York executed the amended and restated ground lease for South Street Seaport. The restated lease terms provide for annual fixed rent of $1.2 million starting July 1, 2013 with an expiration of December 30, 2072, including our option to extend. The annual rent escalates 3.0% compounded annually. In addition to the annual base rent of $1.2 million, we are required to make annual payments of $210,000 as additional rent through the term of the lease. The additional rent escalates annually based on the Consumer Price Index. We are entitled to a total rent credit of $1.5 million, to be taken monthly over a 30-month period. Simultaneously with the execution of the lease, we executed a completion guaranty for the redevelopment of Pier 17. The completion guaranty requires us to perform certain obligations under the lease, including the commencement of construction by October 1, 2013 with a scheduled completion date in 2016. | |
In the fourth quarter of 2012, the Uplands portion of South Street Seaport suffered damage due to flooding as a result of Superstorm Sandy. Reconstruction efforts are ongoing and the property is only partially operating. We have received $47.6 million in insurance proceeds through September 30, 2014 at South Street Seaport related to our claim. We have recognized a total of $36.8 million in Other income to date, including $11.5 million and $24.6 million during the three and nine months ended September 30, 2014, respectively. We believe that our insurance will reimburse substantially all of the costs of repairing the property and will also compensate us for substantially all lost income resulting from the storm. | |
Please refer to Note 11 — Income Taxes for additional contingencies related to our uncertain tax positions. | |
SEGMENTS
SEGMENTS | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
SEGMENTS | ' | ||||||||||||||||||
SEGMENTS | ' | ||||||||||||||||||
NOTE 16 SEGMENTS | |||||||||||||||||||
We have three business segments which offer different products and services. Our three segments are managed separately because each requires different operating strategies or management expertise and are reflective of management’s operating philosophies and methods. In addition, our segments or assets within such segments could change in the future as development of certain properties commences or other operational or management changes occur. We do not distinguish or group our combined operations on a geographic basis. Furthermore, all operations are within the United States. Our reportable segments are as follows: | |||||||||||||||||||
· Master Planned Communities (“MPCs”) — includes the development and sale of land in large-scale, long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Columbia, Maryland. For the nine months ended September 30, 2014 one commercial land sales buyer represented 15.1% of total revenues. | |||||||||||||||||||
· Operating Assets — includes retail, office and industrial properties, a multi-family property, The Woodlands Resort & Conference Center and other real estate investments. These assets are currently generating revenues, and we believe there is an opportunity to redevelop or reposition many of these assets to improve operating performance. | |||||||||||||||||||
· Strategic Developments — includes our condominium projects and all properties held for development which have no substantial operations. | |||||||||||||||||||
Revenue recognition for individual units in a condominium project are accounted for under the percentage of completion method based on the ratio of total project costs incurred to total estimated costs when the following criteria are met: a) construction is beyond a preliminary stage; b) buyer is unable to require a refund of its deposit, except for non-delivery of the unit; c) sufficient units are sold to assure that it will not revert to a rental property; d) sales prices are collectible; and e) aggregate sales proceeds and costs can be reasonably estimated. Estimated revenue and costs are reviewed periodically, and any changes are applied prospectively. | |||||||||||||||||||
The assets included in each segment as of September 30, 2014, are contained in the following chart: | |||||||||||||||||||
Master Planned | Operating Assets | Strategic Developments | |||||||||||||||||
Communities | |||||||||||||||||||
Retail | Office / Other | Under Construction | |||||||||||||||||
· Bridgeland | · Cottonwood Square | · Arizona 2 Lease * | · Anaha Condominium Project | · Alameda Plaza | |||||||||||||||
· Maryland Communities | · Landmark Mall | · 70 Columbia Corporate Center | · Creekside Village Green | · AllenTowne | |||||||||||||||
· Summerlin | · Outlet Collection at Riverwalk | · Columbia Office Properties **** | · Downtown Summerlin (opened | · Bridges at Mint Hill | |||||||||||||||
· The Woodlands | · Park West | · Golf Courses at Summerlin | October 9, 2014) | · Century Plaza Mall | |||||||||||||||
- Hendricks parcel | · South Street Seaport (under construction) | and TPC Las Vegas (participation interest) | · ExxonMobil | · Circle T Ranch and Power Center ** | |||||||||||||||
· Ward Village | · One Hughes Landing | · Hughes Landing Hotel (Embassy Suites) | · Cottonwood Mall | ||||||||||||||||
· 20/25 Waterway Avenue | · Two Hughes Landing ***** | · Hughes Landing Retail | · Elk Grove Promenade | ||||||||||||||||
· Waterway Garage Retail | · 1701 Lake Robbins | · Three Hughes Landing | · 80% Interest in Fashion | ||||||||||||||||
· 2201 Lake Woodlands Drive | · ONE Ala Moana *** | Show Air Rights | |||||||||||||||||
· Millennium Waterway Apartments | · One Lake's Edge | · Hawaii Whole Foods Market Project | |||||||||||||||||
· Millennium Woodlands Phase II, LLC ** / ***** | · The Metropolitan Downtown | · Kendall Town Center | |||||||||||||||||
· 9303 New Trails Office | Columbia Project ** | · Kewalo Basin Harbor | |||||||||||||||||
· 110 N Wacker | · 3831 Technology Forest Drive | · Lakeland Village Center | |||||||||||||||||
· Stewart Title of Montgomery County, TX ** | · Waiea Condominium Project | · Lakemoor (Volo) Land | |||||||||||||||||
· Summerlin Hospital Medical Center ** | · Waterway Square Hotel (Westin) | · Maui Ranch Land | |||||||||||||||||
· Summerlin Las Vegas Baseball Club ** | · Parcel C ** | ||||||||||||||||||
· The Club at Carlton Woods | · Summerlin Apartments, LLC ** | ||||||||||||||||||
· The Woodlands Resort & | · West Windsor | ||||||||||||||||||
Conference Center (under construction) | · Workforce Housing Project | ||||||||||||||||||
· Waterway Square Garage | |||||||||||||||||||
· 3 Waterway Square Office | |||||||||||||||||||
· 4 Waterway Square Office | |||||||||||||||||||
· Woodlands Sarofim #1 ** | |||||||||||||||||||
· 1400 Woodloch Forest | |||||||||||||||||||
* | Note receivable | ||||||||||||||||||
** | An equity or cost method investment | ||||||||||||||||||
*** | Asset consists of two equity method investments | ||||||||||||||||||
**** | Includes Columbia Regional Building which was opened in August 2014 | ||||||||||||||||||
***** | Asset was moved from Strategic Developments to Operating Assets during the quarter | ||||||||||||||||||
As our segments are managed separately, different operating measures are utilized to assess operating results and allocate resources among the segments. The one common operating measure used to assess operating results for the business segments is Real Estate Property Earnings Before Taxes (“REP EBT”), which represents the operating revenues of the properties less property operating expenses and adjustments for interest, as further described below. We believe REP EBT provides useful information about the operating performance for all of our properties. | |||||||||||||||||||
REP EBT, as it relates to our business, is defined as net income (loss) excluding general and administrative expenses, other income, corporate interest income, corporate interest and depreciation expense, provision for income taxes, warrant liability gain or loss and the change in tax indemnity receivable. We present REP EBT because we use this measure, among others, internally to assess the operating performance of our assets. We also present this measure because we believe certain investors use it as a measure of a company’s historical operating performance and its ability to service and incur debt. We believe that the inclusion of certain adjustments to net income (loss) to calculate REP EBT is appropriate to provide additional information to investors. | |||||||||||||||||||
Segment operating results are as follows: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Master Planned Communities | |||||||||||||||||||
Land sales | $ | 59,351 | $ | 53,734 | $ | 260,186 | $ | 166,981 | |||||||||||
Builder price participation | 5,311 | 2,002 | 13,251 | 5,703 | |||||||||||||||
Minimum rents | 210 | 196 | 614 | 585 | |||||||||||||||
Other land revenues | 4,103 | 3,579 | 9,296 | 10,211 | |||||||||||||||
Other rental and property revenues | 198 | — | 373 | — | |||||||||||||||
Total revenues | 69,173 | 59,511 | 283,720 | 183,480 | |||||||||||||||
Cost of sales - land | 27,743 | 27,063 | 93,540 | 82,616 | |||||||||||||||
Land sales operations | 8,068 | 7,393 | 24,629 | 22,705 | |||||||||||||||
Land sales real estate and business taxes | 2,927 | 2,370 | 7,016 | 5,348 | |||||||||||||||
Depreciation and amortization | 101 | 10 | 304 | 25 | |||||||||||||||
Interest income | (17 | ) | — | (96 | ) | (16 | ) | ||||||||||||
Interest expense (*) | (3,332 | ) | (3,689 | ) | (13,210 | ) | (13,295 | ) | |||||||||||
Total expenses | 35,490 | 33,147 | 112,183 | 97,383 | |||||||||||||||
MPC EBT | 33,683 | 26,364 | 171,537 | 86,097 | |||||||||||||||
Operating Assets | |||||||||||||||||||
Minimum rents | 24,035 | 21,160 | 65,853 | 59,427 | |||||||||||||||
Tenant recoveries | 7,581 | 5,254 | 20,406 | 15,547 | |||||||||||||||
Resort and conference center revenues | 8,150 | 8,169 | 27,198 | 30,543 | |||||||||||||||
Other rental and property revenues | 6,076 | 4,493 | 17,756 | 14,538 | |||||||||||||||
Total revenues | 45,842 | 39,076 | 131,213 | 120,055 | |||||||||||||||
Other property operating costs | 14,116 | 17,640 | 42,782 | 48,436 | |||||||||||||||
Rental property real estate taxes | 3,716 | 3,148 | 10,585 | 9,054 | |||||||||||||||
Rental property maintenance costs | 2,154 | 1,906 | 5,962 | 5,594 | |||||||||||||||
Resort and conference center operations | 8,910 | 7,381 | 22,833 | 22,537 | |||||||||||||||
Provision for doubtful accounts | 103 | 201 | 277 | 907 | |||||||||||||||
Demolition costs | 761 | 1,386 | 6,689 | 1,386 | |||||||||||||||
Development-related marketing costs | 589 | 1,050 | 5,379 | 1,771 | |||||||||||||||
Depreciation and amortization | 11,261 | 9,171 | 29,802 | 21,687 | |||||||||||||||
Interest income | (11 | ) | (32 | ) | (141 | ) | (122 | ) | |||||||||||
Interest expense | 4,917 | 4,017 | 10,889 | 14,715 | |||||||||||||||
Equity in Earnings from Real Estate and Other Affiliates | (202 | ) | (647 | ) | (2,774 | ) | (3,743 | ) | |||||||||||
Total expenses | 46,314 | 45,221 | 132,283 | 122,222 | |||||||||||||||
Operating Assets EBT | (472 | ) | (6,145 | ) | (1,070 | ) | (2,167 | ) | |||||||||||
Strategic Developments | |||||||||||||||||||
Minimum rents | 137 | 182 | 473 | 586 | |||||||||||||||
Tenant recoveries | 18 | 38 | 92 | 135 | |||||||||||||||
Condominium rights and unit sales | 4,032 | 810 | 11,516 | 31,191 | |||||||||||||||
Other land revenues | 9 | — | 26 | — | |||||||||||||||
Other rental and property revenues | 17 | (2 | ) | 472 | 18 | ||||||||||||||
Total revenues | 4,213 | 1,028 | 12,579 | 31,930 | |||||||||||||||
Condominium rights and unit cost of sales | 2,026 | 406 | 5,788 | 15,678 | |||||||||||||||
Other property operating costs | 1,083 | 2,691 | 2,821 | 3,692 | |||||||||||||||
Real estate taxes | 843 | 549 | 1,955 | 1,759 | |||||||||||||||
Rental property maintenance costs | 159 | 142 | 440 | 402 | |||||||||||||||
Provision for doubtful accounts | 16 | 3 | 16 | 3 | |||||||||||||||
Demolition costs | (1 | ) | — | 22 | — | ||||||||||||||
Development-related marketing costs | 5,798 | — | 10,530 | — | |||||||||||||||
Depreciation and amortization | 445 | 48 | 1,483 | 139 | |||||||||||||||
Other income | — | (2,652 | ) | (2,373 | ) | (3,609 | ) | ||||||||||||
Interest expense (*) | (3,198 | ) | (401 | ) | (9,828 | ) | (1,363 | ) | |||||||||||
Equity in Earnings from Real Estate and Other Affiliates | (5,307 | ) | (2,947 | ) | (15,390 | ) | (8,291 | ) | |||||||||||
Total expenses | 1,864 | (2,161 | ) | (4,536 | ) | 8,410 | |||||||||||||
Strategic Developments EBT | 2,349 | 3,189 | 17,115 | 23,520 | |||||||||||||||
REP EBT | $ | 35,560 | $ | 23,408 | $ | 187,582 | $ | 107,450 | |||||||||||
(*) Negative interest expense amounts are due to interest capitalized in our Master Planned Communities and Strategic Developments segments related to Operating Assets segment debt and the Senior Notes. | |||||||||||||||||||
The following reconciles REP EBT to GAAP-basis net income (loss): | |||||||||||||||||||
Reconciliation of REP EBT to GAAP-net | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
income (loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
REP EBT | $ | 35,560 | $ | 23,408 | $ | 187,582 | $ | 107,450 | |||||||||||
General and administrative | (14,759 | ) | (11,914 | ) | (49,138 | ) | (34,310 | ) | |||||||||||
Interest (expense)/income, net * | (14,938 | ) | 1,955 | (21,089 | ) | 6,259 | |||||||||||||
Warrant liability gain (loss) | 24,690 | (4,479 | ) | (139,120 | ) | (148,706 | ) | ||||||||||||
Provision for income taxes | (590 | ) | (5,172 | ) | (49,895 | ) | (21,012 | ) | |||||||||||
Increase (reduction) in tax indemnity receivable | 5,454 | 730 | (5,473 | ) | (8,673 | ) | |||||||||||||
Other income, net * | 11,409 | 3,662 | 25,095 | 8,118 | |||||||||||||||
Depreciation and amortization * | (1,211 | ) | (757 | ) | (3,411 | ) | (1,359 | ) | |||||||||||
Net income (loss) | $ | 45,615 | $ | 7,433 | $ | (55,449 | ) | $ | (92,233 | ) | |||||||||
* Represents amounts not allocated to segments. | |||||||||||||||||||
The following reconciles segment revenue to GAAP-basis consolidated revenues: | |||||||||||||||||||
Reconciliation of Segment Basis Revenues to | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
GAAP Revenues | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Master Planned Communities | $ | 69,173 | $ | 59,511 | $ | 283,720 | $ | 183,480 | |||||||||||
Operating Assets | 45,842 | 39,076 | 131,213 | 120,055 | |||||||||||||||
Strategic Developments | 4,213 | 1,028 | 12,579 | 31,930 | |||||||||||||||
Total revenues | $ | 119,228 | $ | 99,615 | $ | 427,512 | $ | 335,465 | |||||||||||
The assets by segment and the reconciliation of total segment assets to the total assets in the Condensed Consolidated Balance Sheets are summarized as follows: | |||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Master Planned Communities | $ | 1,855,671 | $ | 1,760,639 | |||||||||||||||
Operating Assets (a) | 1,351,090 | 1,158,337 | |||||||||||||||||
Strategic Developments | 1,068,491 | 462,525 | |||||||||||||||||
Total segment assets | 4,275,252 | 3,381,501 | |||||||||||||||||
Corporate and other (b) | 1,035,917 | 1,186,367 | |||||||||||||||||
Total assets | $ | 5,311,169 | $ | 4,567,868 | |||||||||||||||
(a) Certain assets included in our Operating Assets segment are in various stages of redevelopment and are included in Developments on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
(b) Assets included in Corporate and other consist primarily of Cash and cash equivalents and the Tax Indemnity receivable, including accrued interest. | |||||||||||||||||||
A portion of the tax indemnification asset in the amount of $185.7 million was incorrectly included in the Operating Assets segment at December 31, 2013 rather than the Corporate segment. The amounts in the table above at December 31, 2013 have been corrected to appropriately include the entire tax indemnification asset of $320.5 million in the Corporate segment. | |||||||||||||||||||
The increase in the Strategic Developments segment’s asset balance as of September 30, 2014 of $605.9 million compared to December 31, 2013 is primarily due to development costs of $190.5 million for Downtown Summerlin, $125.0 million of deposits collected on the sale of condominium units for both our market rate towers at Ward Village, $60.4 million for the ExxonMobil office buildings, $41.3 million for Hughes Landing multi-family, $35.8 million for various other development projects at The Woodlands, $41.2 million for Ward Village, $21.4 million increase in the carrying value of our investment in the ONE Ala Moana project, $21.6 million in buildings and equipment from the completion of the transformation of the IBM building at Ward Village into an information center and sales gallery, $17.1 million for Hughes Landing retail, and $16.1 million in purchase deposits for a land parcel near the South Street Seaport. | |||||||||||||||||||
The decrease in the Corporate segment’s asset balance as of September 30, 2014 of $150.5 million compared to December 31, 2013 is primarily due to cash used to fund development activities. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
Summary of information related to the entity's EPS calculations | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||
Basic EPS: | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | 45,615 | $ | 7,433 | $ | (55,449 | ) | $ | (92,233 | ) | ||||
Net income attributable to noncontrolling interests | — | (98 | ) | (12 | ) | (110 | ) | |||||||
Net income (loss) attributable to common stockholders | $ | 45,615 | $ | 7,335 | $ | (55,461 | ) | $ | (92,343 | ) | ||||
Denominator: | ||||||||||||||
Weighted average basic common shares outstanding | 39,465 | 39,454 | 39,459 | 39,447 | ||||||||||
Diluted EPS: | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 45,615 | $ | 7,335 | $ | (55,461 | ) | $ | (92,343 | ) | ||||
Less: Warrant liability gain | (24,690 | ) | — | — | — | |||||||||
Adjusted net income (loss) attributable to common stockholders | $ | 20,925 | $ | 7,335 | $ | (55,461 | ) | $ | (92,343 | ) | ||||
Denominator: | ||||||||||||||
Weighted average basic common shares outstanding | 39,465 | 39,454 | 39,459 | 39,447 | ||||||||||
Restricted stock and stock options | 405 | 253 | — | — | ||||||||||
Warrants | 3,301 | 2,732 | — | — | ||||||||||
Weighted average diluted common shares outstanding | 43,171 | 42,439 | 39,459 | 39,447 | ||||||||||
Basic earnings (loss) per share: | $ | 1.16 | $ | 0.19 | $ | (1.41 | ) | $ | (2.34 | ) | ||||
Diluted earnings (loss) per share: | $ | 0.48 | $ | 0.17 | $ | (1.41 | ) | $ | (2.34 | ) |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||||
Schedule of assets and liabilities that are measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||
Quoted Prices | Significant | Quoted Prices | Significant | |||||||||||||||||||||||
in Active | Other | Significant | in Active | Other | Significant | |||||||||||||||||||||
Markets for | Observable | Unobservable | Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash equivalents | $ | 200,014 | $ | 200,014 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||||||||||
Warrants | 444,680 | — | — | 444,680 | 305,560 | — | — | 305,560 | ||||||||||||||||||
Interest rate swaps | 3,195 | — | 3,195 | — | 4,164 | — | 4,164 | — | ||||||||||||||||||
Schedule of reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) | ' | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance as of January 1, | $ | 305,560 | $ | 123,573 | ||||||||||||||||||||||
Warrant liability loss | 139,120 | 148,706 | ||||||||||||||||||||||||
Balance as of September 30, | $ | 444,680 | $ | 272,279 | ||||||||||||||||||||||
Schedule of significant unobservable inputs used in the fair value measurement of warrants designated as Level 3 | ' | |||||||||||||||||||||||||
Unobservable Inputs | ||||||||||||||||||||||||||
Valuation | Expected | Marketability | ||||||||||||||||||||||||
Fair Value | Technique | Volatility (a) | Discount (b) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Option Pricing | ||||||||||||||||||||||||||
Warrants | $ | 444,680 | Valuation Model | 23 | % | 20.0% - 22.0% | ||||||||||||||||||||
(a) Based on our implied equity volatility. | ||||||||||||||||||||||||||
(b) Represents the discount rate for lack of marketability of the Management Warrants. The discount rates ranged from 29.0%-30.0% at December 31, 2013. | ||||||||||||||||||||||||||
Schedule of estimated fair values of the Company's financial instruments that are not measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | 605,592 | $ | 605,592 | $ | 894,948 | $ | 894,948 | ||||||||||||||||||
Notes receivable, net | 12,724 | 12,724 | 20,554 | 20,554 | ||||||||||||||||||||||
Tax indemnity receivable, including interest | 333,877 | (b | ) | 320,494 | (b | ) | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Fixed-rate debt | $ | 956,739 | $ | 979,836 | $ | 971,786 | $ | 1,012,461 | ||||||||||||||||||
Variable-rate debt (c) | 899,623 | 899,623 | 509,737 | 509,737 | ||||||||||||||||||||||
SID bonds | 24,554 | 24,399 | 33,100 | 32,837 | ||||||||||||||||||||||
Total mortgages, notes and loans payable | $ | 1,880,916 | $ | 1,903,858 | $ | 1,514,623 | $ | 1,555,035 | ||||||||||||||||||
(a) Consists of bank deposits with original maturities of 90 days or less. | ||||||||||||||||||||||||||
(b) It is not practicable to estimate the fair value of the tax indemnity receivable, including interest, as the timing and ultimate amount received under the agreement is highly dependent on numerous future events that cannot be reliably predicted. | ||||||||||||||||||||||||||
(c) $172.0 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt. | ||||||||||||||||||||||||||
REAL_ESTATE_AND_OTHER_AFFILIAT1
REAL ESTATE AND OTHER AFFILIATES (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
REAL ESTATE AND OTHER AFFILIATES | ' | |||||||||||||||||||||||
Schedule of information related to investments in real estate and other affiliates | ' | |||||||||||||||||||||||
Economic/ Legal Ownership | Carrying Value | Share of Earnings/Dividends | ||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(In percentages) | (In thousands) | (In thousands) | ||||||||||||||||||||||
Equity Method Investments: | ||||||||||||||||||||||||
Circle T Ranch and Power Center | 50 | % | 50 | % | $ | 9,005 | $ | 9,004 | $ | — | $ | — | $ | — | $ | — | ||||||||
HHMK Development (a) | 50 | % | 50 | % | 110 | 13 | 386 | 290 | 869 | 443 | ||||||||||||||
KR Holdings (a) | 50 | % | 50 | % | 41,171 | 19,764 | 5,066 | 2,716 | 14,801 | 7,907 | ||||||||||||||
Millennium Phase II (a) (b) | 81.43 | % | 81.43 | % | 1,937 | 2,174 | (243 | ) | (59 | ) | (378 | ) | (59 | ) | ||||||||||
Parcel C (a) | 50 | % | 50 | % | 7,638 | 5,801 | — | — | — | — | ||||||||||||||
Stewart Title | 50 | % | 50 | % | 3,770 | 3,843 | 383 | 382 | 901 | 899 | ||||||||||||||
Summerlin Apartments, LLC (a) | 50 | % | — | — | — | — | — | — | — | |||||||||||||||
Summerlin Las Vegas Baseball Club, LLC (a) | 50 | % | 50 | % | 10,835 | 10,636 | 22 | 220 | 198 | 220 | ||||||||||||||
Parcel D | 50 | % | 50 | % | 4,362 | 3,461 | — | — | — | — | ||||||||||||||
Woodlands Sarofim | 20 | % | 20 | % | 2,600 | 2,579 | 27 | 45 | 124 | 121 | ||||||||||||||
81,428 | 57,275 | 5,641 | 3,594 | 16,515 | 9,531 | |||||||||||||||||||
Cost basis investments | 3,916 | 3,746 | (132 | ) | — | 1,649 | 2,503 | |||||||||||||||||
Investment in Real Estate and Other Affiliates | $ | 85,344 | $ | 61,021 | $ | 5,509 | $ | 3,594 | $ | 18,164 | $ | 12,034 | ||||||||||||
(a) Equity method variable interest entities. | ||||||||||||||||||||||||
(b) Millennium Phase II was placed into service in the beginning of the third quarter of 2014 and moved from the Strategic Developments segment to the Operating Assets segment. | ||||||||||||||||||||||||
MORTGAGES_NOTES_AND_LOANS_PAYA1
MORTGAGES, NOTES AND LOANS PAYABLE (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
MORTGAGES, NOTES AND LOANS PAYABLE | ' | ||||||||||||||
Summary of mortgages, notes and loans payable | ' | ||||||||||||||
September 30, | December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||
Fixed-rate debt: | |||||||||||||||
Collateralized mortgages, notes and loans payable | $ | 956,739 | $ | 971,786 | |||||||||||
Special Improvement District bonds | 24,554 | 33,100 | |||||||||||||
Variable-rate debt: | |||||||||||||||
Collateralized mortgages, notes and loans payable (a) | 899,623 | 509,737 | |||||||||||||
Total mortgages, notes and loans payable | $ | 1,880,916 | $ | 1,514,623 | |||||||||||
(a) As more fully described below, $172.0 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt. | |||||||||||||||
Schedule of mortgages, notes and loans payable by property | ' | ||||||||||||||
Carrying Value | |||||||||||||||
Interest | Maximum | September 30, | December 31, | ||||||||||||
$ In thousands | Maturity (a) | Rate | Facility | 2014 | 2013 | ||||||||||
Master Planned Communities | |||||||||||||||
Bridgeland Land Loan | June 2022 | 5.5 | % | $ | 15,874 | $ | 18,066 | ||||||||
Bridgeland Development Loan | June 2015 | 5 | %(d) | $ | 30,000 | 24,200 | — | ||||||||
Summerlin South SID Bonds - S108 | December 2016 | 5.95 | % | 694 | 823 | ||||||||||
Summerlin South SID Bonds - S124 | December 2019 | 5.95 | % | 256 | 285 | ||||||||||
Summerlin South SID Bonds - S128 | December 2020 | 7.3 | % | 665 | 707 | ||||||||||
Summerlin South SID Bonds - S128C | December 2030 | 6.05 | % | 5,392 | 5,511 | ||||||||||
Summerlin South SID Bonds - S132 | December 2020 | 6 | % | 3,232 | 3,962 | ||||||||||
Summerlin South SID Bonds - S151 | June 2025 | 6 | % | 6,421 | 6,623 | ||||||||||
Summerlin West SID Bonds - S808/S810 | April 2031 | 7.13 | % | 4,000 | 11,168 | ||||||||||
The Woodlands Master Credit Facility | August 2018 | 2.9 | %(d) | 250,000 | 176,663 | 176,663 | |||||||||
Master Planned Communities Total | 237,397 | 223,808 | |||||||||||||
Operating Assets | |||||||||||||||
70 Columbia Corporate Center (b) | June 2019 | 2.4 | %(d) | 20,000 | 16,287 | ||||||||||
Columbia Regional Building | March 2018 | 2.15 | %(d) | 23,008 | 18,960 | 9,207 | |||||||||
One Hughes Landing | November 2017 | 2.8 | %(d) | 38,000 | 34,417 | 19,128 | |||||||||
Two Hughes Landing | September 2018 | 2.8 | %(d) | 41,230 | 17,828 | 10 | |||||||||
1701 Lake Robbins | April 2017 | 5.81 | % | 4,600 | — | ||||||||||
Millennium Waterway Apartments | June 2022 | 3.75 | % | 55,584 | 55,584 | ||||||||||
110 N. Wacker (c) | October 2019 | 5.21 | %(d) | 29,000 | 29,000 | ||||||||||
9303 New Trails | December 2023 | 4.88 | % | 13,157 | 13,398 | ||||||||||
Outlet Collection at Riverwalk | October 2018 | 2.9 | %(d) | 64,400 | 44,703 | — | |||||||||
The Woodlands Resort & Conference Center | February 2019 | 3.65 | %(d) | 95,000 | 66,177 | 36,100 | |||||||||
Victoria Ward | September 2016 | 3.34 | %(d) | 250,000 | 238,716 | 238,716 | |||||||||
20/25 Waterway Avenue | May 2022 | 4.79 | % | 14,383 | 14,450 | ||||||||||
3 Waterway Square | August 2028 | 3.94 | % | 52,000 | 52,000 | ||||||||||
4 Waterway Square | December 2023 | 4.88 | % | 38,530 | 39,237 | ||||||||||
Capital lease obligations | various | 3.6 | % | 156 | 205 | ||||||||||
Operating Assets Total | 648,211 | 523,322 | |||||||||||||
Strategic Developments | |||||||||||||||
Downtown Summerlin | July 2019 | 2.4 | %(d) | 311,800 | 172,913 | — | |||||||||
Downtown Summerlin SID Bonds - S108 | December 2016 | 5.95 | % | 388 | 452 | ||||||||||
Downtown Summerlin SID Bonds - S128 | December 2030 | 6.05 | % | 3,506 | 3,569 | ||||||||||
ExxonMobil | June 2019 | 2.05 | %(d) | 143,000 | 23,702 | — | |||||||||
Hughes Landing Retail | December 2018 | 2.1 | %(d) | 36,575 | 14,259 | 913 | |||||||||
One Lake’s Edge | November 2018 | 2.65 | %(d) | 73,525 | 18,085 | — | |||||||||
Waterway Hotel | August 2019 | 2.8 | %(d) | 69,300 | — | — | |||||||||
Strategic Developments Total | 232,853 | 4,934 | |||||||||||||
Other Corporate Financing Arrangements | July 2018 | 3 | % | 22,700 | 20,434 | 21,309 | |||||||||
Senior Notes | October 2021 | 6.88 | % | 750,000 | 750,000 | ||||||||||
Unamortized underwriting fees | (7,979 | ) | (8,750 | ) | |||||||||||
$ | 1,880,916 | $ | 1,514,623 | ||||||||||||
(a) Maturity date includes any extension periods which can be exercised at our option. | |||||||||||||||
(b) The note we assumed on August 15, 2012 was fully paid with cash on hand on April 15, 2014. On June 30, 2014, we entered into a new $20.0 million mortgage loan at one-month LIBOR plus 2.25%. | |||||||||||||||
(c) The $29.0 million outstanding principal balance is swapped to a 5.21% fixed rate through maturity. | |||||||||||||||
(d) The interest rate presented is based on the one or three month LIBOR rate, as applicable, at September 30, 2014. |
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||||||
Summary of fair value of the Company's derivative financial instruments which are included in accounts payable and accrued liabilities in the Consolidated Balance Sheet | ' | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Interest Rate Swaps | $ | 3,195 | $ | 4,164 | ||||||||||||
Total derivatives designated as hedging instruments | $ | 3,195 | $ | 4,164 | ||||||||||||
Summary of effect of the Company's derivative financial instruments on the Condensed Consolidated Statements of Operations | ' | |||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
2014 | 2013 | Location of Gain | 2014 | 2013 | ||||||||||||
(Loss) Reclassified | Amount of Loss | Amount of Gain | ||||||||||||||
Cash Flow Hedges | Amount of Gain | Amount of Loss | from AOCI into | Reclassified from | Reclassified from | |||||||||||
Recognized in OCI | Recognized in OCI | Earnings | AOCI into Earnings | AOCI into Earnings | ||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Interest Rate Swaps | $ | 229 | $ | (407 | ) | Interest Expense | $ | (555 | ) | $ | 6 | |||||
$ | 229 | $ | (407 | ) | $ | (555 | ) | $ | 6 | |||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Location of Loss | Amount of Loss | Amount of Loss | ||||||||||||||
Cash Flow Hedges | Amount of Loss | Amount of Gain | Reclassified from | Reclassified from | Reclassified from | |||||||||||
Recognized in OCI | Recognized in OCI | AOCI into Earnings | AOCI into Earnings | AOCI into Earnings | ||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Interest Rate Swaps | $ | (742 | ) | $ | 1,079 | Interest Expense | $ | (1,644 | ) | $ | (1,041 | ) | ||||
$ | (742 | ) | $ | 1,079 | $ | (1,644 | ) | $ | (1,041 | ) |
STOCKBASED_PLANS_Tables
STOCK-BASED PLANS (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
STOCK-BASED PLANS | ' | ||||||
Summary of stock option plan activity | ' | ||||||
Stock Options | Weighted | ||||||
Average Exercise | |||||||
Price | |||||||
Stock Options outstanding at January 1, 2014 | 965,440 | $ | 64.57 | ||||
Granted | 105,000 | 146 | |||||
Forfeited | (32,700 | ) | 85.27 | ||||
Stock Options outstanding at September 30, 2014 | 1,037,740 | $ | 72.16 | ||||
Summary of restricted stock activity | ' | ||||||
Restricted | Weighted | ||||||
Stock | Average Grant | ||||||
Date Fair Value | |||||||
Restricted stock outstanding at January 1, 2014 | 122,332 | $ | 75.21 | ||||
Granted | 61,750 | 126.38 | |||||
Vested | (11,394 | ) | 97.72 | ||||
Restricted Stock outstanding at September 30, 2014 | 172,688 | $ | 92.02 |
OTHER_ASSETS_AND_LIABILITIES_T
OTHER ASSETS AND LIABILITIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
OTHER ASSETS AND LIABILITIES | ' | |||||||
Summary of the significant components of prepaid expenses and other assets | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Special Improvement District receivable | $ | 39,777 | $ | 39,688 | ||||
Equipment, net of accumulated depreciation of $2.0 million and $0.7 million, respectively | 20,662 | 21,978 | ||||||
Tenant incentives and other receivables | 6,361 | 6,757 | ||||||
Federal income tax receivable | 5,809 | 6,053 | ||||||
Prepaid expenses | 9,461 | 4,744 | ||||||
Below-market ground leases | 19,748 | 20,002 | ||||||
Condominium deposits | 137,407 | 12,405 | ||||||
Security and escrow deposits | 38,577 | 28,082 | ||||||
Above-market tenant leases | 941 | 1,095 | ||||||
Uncertain tax position asset | 20,131 | 13,528 | ||||||
In-place leases | 8,037 | 9,306 | ||||||
Intangibles | 3,624 | 3,714 | ||||||
Other | 3,731 | 6,588 | ||||||
$ | 314,266 | $ | 173,940 | |||||
Summary of the significant components of accounts payable and accrued expenses | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Construction payables | $ | 194,197 | $ | 106,741 | ||||
Accounts payable and accrued expenses | 34,687 | 46,998 | ||||||
Condominium deposits | 137,407 | 12,405 | ||||||
Membership deposits | 20,908 | 24,830 | ||||||
Above-market ground leases | 2,312 | 2,431 | ||||||
Deferred income | 33,044 | 18,963 | ||||||
Accrued interest | 28,793 | 17,463 | ||||||
Accrued real estate taxes | 9,860 | 8,581 | ||||||
Tenant and other deposits | 16,768 | 9,490 | ||||||
Insurance reserve | — | 1,417 | ||||||
Accrued payroll and other employee liabilities | 16,151 | 15,666 | ||||||
Special assessment | 2,603 | 2,603 | ||||||
Interest rate swaps | 3,195 | 4,164 | ||||||
Other | 16,536 | 12,239 | ||||||
$ | 516,461 | $ | 283,991 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (''AOCI'') (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ("AOCI") | ' | |||||||||
Summary of AOCI | ' | |||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component (a) | ||||||||||
Gains and Losses on Cash Flow Hedges | ||||||||||
(In thousands) | ||||||||||
For the Three Months | ||||||||||
Ended September 30, 2014 | ||||||||||
Balance as of July 1, 2014 | $ | (8,281 | ) | |||||||
Other comprehensive income before reclassifications | 49 | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 555 | |||||||||
Net current-period other comprehensive income | 604 | |||||||||
Balance as of September 30, 2014 | $ | (7,677 | ) | |||||||
For the Nine Months | ||||||||||
Ended September 30, 2014 | ||||||||||
Balance as of January 1, 2014 | $ | (8,222 | ) | |||||||
Other comprehensive income before reclassifications | (1,099 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,644 | |||||||||
Net current-period other comprehensive income | 545 | |||||||||
Balance as of September 30, 2014 | $ | (7,677 | ) | |||||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits to profit (loss). | ||||||||||
Summary of the amounts reclassified out of AOCI | ' | |||||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss)(a) | ||||||||||
(In thousands) | ||||||||||
Amounts reclassified from Accumulated Other | ||||||||||
Comprehensive Income (Loss) | ||||||||||
Accumulated Other Comprehensive | For the Three Months | For the Nine Months | Affected line item in the | |||||||
Income (Loss) Components | Ended September 30, 2014 | Ended September 30, 2014 | Statement of Operations | |||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate swap contracts | $ | (631 | ) | $ | (1,867 | ) | Interest expense | |||
76 | 223 | Provision for income taxes | ||||||||
Total reclassifications for the period | $ | (555 | ) | $ | (1,644 | ) | Net of tax | |||
(a) Amounts in parentheses indicate debits to profit (loss). | ||||||||||
SEGMENTS_Tables
SEGMENTS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
SEGMENTS | ' | |||||||||||||
Schedule of segment operating results | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | (In thousands) | |||||||||||||
Master Planned Communities | ||||||||||||||
Land sales | $ | 59,351 | $ | 53,734 | $ | 260,186 | $ | 166,981 | ||||||
Builder price participation | 5,311 | 2,002 | 13,251 | 5,703 | ||||||||||
Minimum rents | 210 | 196 | 614 | 585 | ||||||||||
Other land revenues | 4,103 | 3,579 | 9,296 | 10,211 | ||||||||||
Other rental and property revenues | 198 | — | 373 | — | ||||||||||
Total revenues | 69,173 | 59,511 | 283,720 | 183,480 | ||||||||||
Cost of sales - land | 27,743 | 27,063 | 93,540 | 82,616 | ||||||||||
Land sales operations | 8,068 | 7,393 | 24,629 | 22,705 | ||||||||||
Land sales real estate and business taxes | 2,927 | 2,370 | 7,016 | 5,348 | ||||||||||
Depreciation and amortization | 101 | 10 | 304 | 25 | ||||||||||
Interest income | (17 | ) | — | (96 | ) | (16 | ) | |||||||
Interest expense (*) | (3,332 | ) | (3,689 | ) | (13,210 | ) | (13,295 | ) | ||||||
Total expenses | 35,490 | 33,147 | 112,183 | 97,383 | ||||||||||
MPC EBT | 33,683 | 26,364 | 171,537 | 86,097 | ||||||||||
Operating Assets | ||||||||||||||
Minimum rents | 24,035 | 21,160 | 65,853 | 59,427 | ||||||||||
Tenant recoveries | 7,581 | 5,254 | 20,406 | 15,547 | ||||||||||
Resort and conference center revenues | 8,150 | 8,169 | 27,198 | 30,543 | ||||||||||
Other rental and property revenues | 6,076 | 4,493 | 17,756 | 14,538 | ||||||||||
Total revenues | 45,842 | 39,076 | 131,213 | 120,055 | ||||||||||
Other property operating costs | 14,116 | 17,640 | 42,782 | 48,436 | ||||||||||
Rental property real estate taxes | 3,716 | 3,148 | 10,585 | 9,054 | ||||||||||
Rental property maintenance costs | 2,154 | 1,906 | 5,962 | 5,594 | ||||||||||
Resort and conference center operations | 8,910 | 7,381 | 22,833 | 22,537 | ||||||||||
Provision for doubtful accounts | 103 | 201 | 277 | 907 | ||||||||||
Demolition costs | 761 | 1,386 | 6,689 | 1,386 | ||||||||||
Development-related marketing costs | 589 | 1,050 | 5,379 | 1,771 | ||||||||||
Depreciation and amortization | 11,261 | 9,171 | 29,802 | 21,687 | ||||||||||
Interest income | (11 | ) | (32 | ) | (141 | ) | (122 | ) | ||||||
Interest expense | 4,917 | 4,017 | 10,889 | 14,715 | ||||||||||
Equity in Earnings from Real Estate and Other Affiliates | (202 | ) | (647 | ) | (2,774 | ) | (3,743 | ) | ||||||
Total expenses | 46,314 | 45,221 | 132,283 | 122,222 | ||||||||||
Operating Assets EBT | (472 | ) | (6,145 | ) | (1,070 | ) | (2,167 | ) | ||||||
Strategic Developments | ||||||||||||||
Minimum rents | 137 | 182 | 473 | 586 | ||||||||||
Tenant recoveries | 18 | 38 | 92 | 135 | ||||||||||
Condominium rights and unit sales | 4,032 | 810 | 11,516 | 31,191 | ||||||||||
Other land revenues | 9 | — | 26 | — | ||||||||||
Other rental and property revenues | 17 | (2 | ) | 472 | 18 | |||||||||
Total revenues | 4,213 | 1,028 | 12,579 | 31,930 | ||||||||||
Condominium rights and unit cost of sales | 2,026 | 406 | 5,788 | 15,678 | ||||||||||
Other property operating costs | 1,083 | 2,691 | 2,821 | 3,692 | ||||||||||
Real estate taxes | 843 | 549 | 1,955 | 1,759 | ||||||||||
Rental property maintenance costs | 159 | 142 | 440 | 402 | ||||||||||
Provision for doubtful accounts | 16 | 3 | 16 | 3 | ||||||||||
Demolition costs | (1 | ) | — | 22 | — | |||||||||
Development-related marketing costs | 5,798 | — | 10,530 | — | ||||||||||
Depreciation and amortization | 445 | 48 | 1,483 | 139 | ||||||||||
Other income | — | (2,652 | ) | (2,373 | ) | (3,609 | ) | |||||||
Interest expense (*) | (3,198 | ) | (401 | ) | (9,828 | ) | (1,363 | ) | ||||||
Equity in Earnings from Real Estate and Other Affiliates | (5,307 | ) | (2,947 | ) | (15,390 | ) | (8,291 | ) | ||||||
Total expenses | 1,864 | (2,161 | ) | (4,536 | ) | 8,410 | ||||||||
Strategic Developments EBT | 2,349 | 3,189 | 17,115 | 23,520 | ||||||||||
REP EBT | $ | 35,560 | $ | 23,408 | $ | 187,582 | $ | 107,450 | ||||||
(*) Negative interest expense amounts are due to interest capitalized in our Master Planned Communities and Strategic Developments segments related to Operating Assets segment debt and the Senior Notes. | ||||||||||||||
Schedule of reconciliation of REP EBT to GAAP-basis net income (loss) | ' | |||||||||||||
Reconciliation of REP EBT to GAAP-net | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
income (loss) | 2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | (In thousands) | |||||||||||||
REP EBT | $ | 35,560 | $ | 23,408 | $ | 187,582 | $ | 107,450 | ||||||
General and administrative | (14,759 | ) | (11,914 | ) | (49,138 | ) | (34,310 | ) | ||||||
Interest (expense)/income, net * | (14,938 | ) | 1,955 | (21,089 | ) | 6,259 | ||||||||
Warrant liability gain (loss) | 24,690 | (4,479 | ) | (139,120 | ) | (148,706 | ) | |||||||
Provision for income taxes | (590 | ) | (5,172 | ) | (49,895 | ) | (21,012 | ) | ||||||
Increase (reduction) in tax indemnity receivable | 5,454 | 730 | (5,473 | ) | (8,673 | ) | ||||||||
Other income, net * | 11,409 | 3,662 | 25,095 | 8,118 | ||||||||||
Depreciation and amortization * | (1,211 | ) | (757 | ) | (3,411 | ) | (1,359 | ) | ||||||
Net income (loss) | $ | 45,615 | $ | 7,433 | $ | (55,449 | ) | $ | (92,233 | ) | ||||
* Represents amounts not allocated to segments. | ||||||||||||||
Schedule of reconciliation of segment revenues to GAAP-basis consolidated revenues: | ' | |||||||||||||
Reconciliation of Segment Basis Revenues to | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
GAAP Revenues | 2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | (In thousands) | |||||||||||||
Master Planned Communities | $ | 69,173 | $ | 59,511 | $ | 283,720 | $ | 183,480 | ||||||
Operating Assets | 45,842 | 39,076 | 131,213 | 120,055 | ||||||||||
Strategic Developments | 4,213 | 1,028 | 12,579 | 31,930 | ||||||||||
Total revenues | $ | 119,228 | $ | 99,615 | $ | 427,512 | $ | 335,465 | ||||||
Summary of assets by segment and the reconciliation of total segment assets to the total assets in the Condensed Consolidated Balance Sheets | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Master Planned Communities | $ | 1,855,671 | $ | 1,760,639 | ||||||||||
Operating Assets (a) | 1,351,090 | 1,158,337 | ||||||||||||
Strategic Developments | 1,068,491 | 462,525 | ||||||||||||
Total segment assets | 4,275,252 | 3,381,501 | ||||||||||||
Corporate and other (b) | 1,035,917 | 1,186,367 | ||||||||||||
Total assets | $ | 5,311,169 | $ | 4,567,868 | ||||||||||
(a) Certain assets included in our Operating Assets segment are in various stages of redevelopment and are included in Developments on our Condensed Consolidated Balance Sheets. | ||||||||||||||
(b) Assets included in Corporate and other consist primarily of Cash and cash equivalents and the Tax Indemnity receivable, including accrued interest. | ||||||||||||||
SPONSORS_AND_MANAGEMENT_WARRAN1
SPONSORS AND MANAGEMENT WARRANTS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 09, 2010 | Feb. 28, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2011 | Feb. 28, 2011 | Feb. 28, 2011 |
Sponsors Warrants | Sponsors Warrants | Sponsors Warrants | Management Warrants | Management Warrants | Management Warrants | Management Warrants | Management Warrants | Management Warrants | |||
David R. Weinreb | Grant Herlitz | Andrew C. Richardson | |||||||||
Sponsors and Management Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of warrants to purchase common stock (in shares) | ' | ' | 1,916,667 | ' | 8,000,000 | 2,862,687 | 2,862,687 | ' | ' | ' | ' |
Warrants outstanding | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price (in dollars per share) | ' | ' | ' | ' | $50 | ' | ' | ' | $42.23 | $42.23 | $54.50 |
Proceeds from issuance of management warrants | ' | ' | ' | ' | ' | $19,000,000 | ' | ' | ' | ' | ' |
Warrant liabilities | $444,680,000 | $305,560,000 | $195,000,000 | $141,800,000 | ' | ' | $249,700,000 | $163,800,000 | ' | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income (loss) | $45,615 | $7,433 | ($55,449) | ($92,233) |
Net income attributable to noncontrolling interests | ' | -98 | -12 | -110 |
Net income (loss) attributable to common stockholders | 45,615 | 7,335 | -55,461 | -92,343 |
Denominator: | ' | ' | ' | ' |
Weighted average basic common shares outstanding | 39,465 | 39,454 | 39,459 | 39,447 |
Numerator: | ' | ' | ' | ' |
Net income (loss) attributable to common stockholders | 45,615 | 7,335 | -55,461 | -92,343 |
Less: Warrant liability gain | -24,690 | ' | ' | ' |
Adjusted net income (loss) attributable to common stockholders | $20,925 | $7,335 | ($55,461) | ($92,343) |
Denominator: | ' | ' | ' | ' |
Weighted average basic common shares outstanding | 39,465 | 39,454 | 39,459 | 39,447 |
Restricted stock and stock options (in shares) | 405 | 253 | ' | ' |
Warrants (in shares) | 3,301 | 2,732 | ' | ' |
Weighted average diluted common shares outstanding | 43,171 | 42,439 | 39,459 | 39,447 |
Basic earnings (loss) per share: (in dollars per share) | $1.16 | $0.19 | ($1.41) | ($2.34) |
Diluted earnings (loss) per share: (in dollars per share) | $0.48 | $0.17 | ($1.41) | ($2.34) |
EARNINGS_PER_SHARE_Details_2
EARNINGS PER SHARE (Details 2) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Stock Options | ' | ' |
Antidilutive securities excluded from computation of diluted earnings per share | ' | ' |
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 1,037,740 | 930,940 |
Restricted stock | ' | ' |
Antidilutive securities excluded from computation of diluted earnings per share | ' | ' |
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 172,690 | 122,332 |
Sponsors Warrants | ' | ' |
Antidilutive securities excluded from computation of diluted earnings per share | ' | ' |
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 1,916,667 | 1,916,667 |
Management Warrants | ' | ' |
Antidilutive securities excluded from computation of diluted earnings per share | ' | ' |
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 2,862,687 | 2,862,687 |
RECENT_TRANSACTIONS_Details
RECENT TRANSACTIONS (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 | 31-May-14 | Sep. 30, 2014 |
acre | acre | acre | |
item | |||
Recent transactions | ' | ' | ' |
Area of undeveloped land purchased (in acres) | ' | 1,343 | ' |
Amount paid for undeveloped land | ' | $67.20 | ' |
Purchased an additional area of land (in acres) | 653 | ' | ' |
Land acquisitions for residential development (in acres) | ' | ' | 1,835 |
Land acquisitions for commercial development (in acres) | ' | ' | 161 |
Number of lots | ' | ' | 4,600 |
IMPAIRMENT_Details
IMPAIRMENT (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
IMPAIRMENT | ' | ' | ' | ' |
Impairment charges | $0 | $0 | $0 | $0 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
item | ||
Liabilities | ' | ' |
Warrants | $444,680 | $305,560 |
Number of registered money market mutual funds in cash equivalents | 2 | ' |
Recurring basis | Total Fair Value Measurement | ' | ' |
Assets: | ' | ' |
Cash equivalents | 200,014 | ' |
Liabilities | ' | ' |
Warrants | 444,680 | 305,560 |
Interest rate swaps | 3,195 | 4,164 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets: | ' | ' |
Cash equivalents | 200,014 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Liabilities | ' | ' |
Interest rate swaps | 3,195 | 4,164 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Liabilities | ' | ' |
Warrants | $444,680 | $305,560 |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Significant Unobservable Inputs (Level 3) | Warrant Liability | Warrant Liability | Warrant Liability | Warrant Liability | Warrant Liability | Warrant Liability | Warrant Liability | |
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) | ||||
Minimum | Minimum | Maximum | Maximum | |||||
Reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | $305,560 | $123,573 | ' | ' | ' | ' | ' |
Warrant liability loss | ' | 139,120 | 148,706 | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | 444,468 | 272,279 | ' | ' | ' | ' | ' |
Expected Volatility (as a percent) | ' | ' | ' | 23.00% | ' | ' | ' | ' |
Discount for lack of marketability (as a percent) | ' | ' | ' | ' | 20.00% | 29.00% | 22.00% | 30.00% |
Marketability discount due to lapses of restriction period | $0 | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) (USD $) | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Carrying Amount | Carrying Amount | Estimated Fair Value | Estimated Fair Value | ||
Assets: | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | $605,592,000 | $894,948,000 | $605,592,000 | $894,948,000 |
Notes receivable, net | ' | 12,724,000 | 20,554,000 | 12,724,000 | 20,554,000 |
Tax indemnity receivable, including interest | ' | 333,877,000 | 320,494,000 | ' | ' |
Liabilities: | ' | ' | ' | ' | ' |
Fixed-rate debt | ' | 956,739,000 | 971,786,000 | 979,836,000 | 1,012,461,000 |
Variable-rate debt | ' | 899,623,000 | 509,737,000 | 899,623,000 | 509,737,000 |
SID bonds | ' | 24,554,000 | 33,100,000 | 24,399,000 | 32,837,000 |
Total mortgages, notes and loans payable | ' | 1,880,916,000 | 1,514,623,000 | 1,903,858,000 | 1,555,035,000 |
Maximum maturity period of bank deposits | '90 days | ' | ' | ' | ' |
Variable-rate debt that has been swapped to a fixed rate | $172,000,000 | ' | ' | ' | ' |
REAL_ESTATE_AND_OTHER_AFFILIAT2
REAL ESTATE AND OTHER AFFILIATES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 11, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | 15-May-13 | Sep. 17, 2012 | Jun. 14, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 17, 2012 | Sep. 17, 2012 | Sep. 30, 2014 | 15-May-13 | Jul. 05, 2012 | 14-May-12 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jan. 24, 2014 | Sep. 30, 2014 | Aug. 06, 2012 | Aug. 06, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jul. 11, 2013 | Oct. 27, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Jul. 11, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 04, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Primary beneficiary | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Cost basis investments | Cost basis investments | Cost basis investments | Cost basis investments | Circle T Ranch and Power Center | Circle T Ranch and Power Center | HHMK Development | HHMK Development | HHMK Development | HHMK Development | HHMK Development | HHMK Development | HHMK Development | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | KR Holdings | Millennium Phase II, LLC | Millennium Phase II, LLC | Millennium Phase II, LLC | Millennium Phase II, LLC | Millennium Phase II, LLC | Millennium Phase II, LLC | Millennium Phase II, LLC | Stewart Title | Stewart Title | Stewart Title | Stewart Title | Stewart Title | Summerlin Apartments, LLC | Summerlin Apartments, LLC | Summerlin Las Vegas Baseball Club | Summerlin Las Vegas Baseball Club | Summerlin Las Vegas Baseball Club | Summerlin Las Vegas Baseball Club | Summerlin Las Vegas Baseball Club | Summerlin Las Vegas Baseball Club | Summerlin Las Vegas Baseball Club | ParcelD | ParcelD | ParcelD | ParcelD | ParcelD | Woodlands Sarofim | Woodlands Sarofim | Woodlands Sarofim | Woodlands Sarofim | Woodlands Sarofim | Properties owned by real estate affiliates | Parcel C | Parcel C | Parcel C | ||||||
item | Equity method investments | Equity method investments | item | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | A & B Properties, Inc. | Mezzanine loan agreements | Construction loan | Construction loan | acre | item | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | item | Equity method investments | Las Vegas 51S LLC | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Construction loan | Equity method investments | Equity method investments | Equity method investments | Equity method investments | Equity method investments | item | Equity method investments | Equity method investments | ||||||||||||||||||||||||
item | acre | acre | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
sqft | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Real Estate and Other Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Economic/Legal ownership (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | 50.00% | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' | ' | ' | 81.43% | ' | 81.43% | ' | 81.43% | 50.00% | ' | 50.00% | ' | 50.00% | ' | 50.00% | ' | ' | 50.00% | ' | 50.00% | ' | 50.00% | ' | ' | 50.00% | 50.00% | ' | 20.00% | ' | 20.00% | ' | 20.00% | ' | ' | 50.00% | 50.00% |
Carrying Value | $85,344,000 | ' | $85,344,000 | ' | $61,021,000 | ' | $81,428,000 | ' | $81,428,000 | ' | $57,275,000 | $3,916,000 | $3,916,000 | ' | $3,746,000 | $9,005,000 | $9,004,000 | ' | ' | $110,000 | ' | $110,000 | ' | $13,000 | ' | ' | ' | ' | $41,171,000 | ' | $41,171,000 | ' | $19,764,000 | ' | ' | ' | ' | ' | ' | $1,937,000 | ' | $1,937,000 | ' | $2,174,000 | $3,770,000 | ' | $3,770,000 | ' | $3,843,000 | ' | ' | ' | ' | $10,835,000 | ' | $10,835,000 | ' | $10,636,000 | ' | ' | $4,362,000 | $3,461,000 | ' | $2,600,000 | ' | $2,600,000 | ' | $2,579,000 | ' | ' | $7,638,000 | $5,801,000 |
Share of Earnings/Dividends | 5,509,000 | 3,594,000 | 18,164,000 | 12,034,000 | ' | ' | 5,641,000 | 3,594,000 | 16,515,000 | 9,531,000 | ' | -132,000 | 1,649,000 | 2,503,000 | ' | ' | ' | ' | ' | 386,000 | 290,000 | 869,000 | 443,000 | ' | ' | ' | ' | ' | 5,066,000 | 2,716,000 | 14,801,000 | 7,907,000 | ' | ' | ' | ' | ' | ' | ' | -243,000 | -59,000 | -378,000 | -59,000 | ' | 383,000 | 382,000 | 901,000 | 899,000 | ' | ' | ' | ' | ' | 22,000 | 220,000 | 198,000 | 220,000 | ' | ' | ' | 0 | ' | ' | 27,000 | 45,000 | 124,000 | 121,000 | ' | ' | ' | 0 | ' |
Aggregate carrying value of unconsolidated VIEs | 61,700,000 | ' | 61,700,000 | ' | 38,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 194,400,000 | ' | ' | ' |
Share of the entity in secured debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106,000,000 | ' | ' | ' |
Number of variable interest entities | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values of the assets associated with the operations of the consolidated VIEs | 20,700,000 | ' | 20,700,000 | ' | 20,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying values of the liabilities associated with the operations of the consolidated VIEs | 200,000 | ' | 200,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of local developers with whom the entity entered into a joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of land contributed to the joint venture (in acres) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Number of units in Class A apartment building to be constructed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 314 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 124 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 437 | ' | ' |
Area of real estate property to be constructed (in square feet) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,000 | ' | ' |
Fair value of the land contributed to joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | 20,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,400,000 | ' | ' |
Book value of land contributed to joint venture | 263,032,000 | ' | 263,032,000 | ' | 244,041,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' |
Transaction value, per constructed unit of land contributed to joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,500 | ' | ' |
Ownership ratio in a joint venture (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of debt instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Blended interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option to extend, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred return, on capital (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum share in the profits of joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,700,000 | 132,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash proceeds from sale of condominium rights | ' | ' | ' | 47,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of in substance real estate sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash contributed by joint venture partner | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest of partners in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of land (in acres) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of proceeds in excess of an amount determined by applying a specified capitalization rate to NOI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of proceeds from sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalization rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Facility Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 132,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 253,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 170,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 163,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Construction loan secured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution of the cash contributed by joint venture partner | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future contribution required in accordance with the loan agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional improvements made in the venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net profit recognized on partial sale of joint venture interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MORTGAGES_NOTES_AND_LOANS_PAYA2
MORTGAGES, NOTES AND LOANS PAYABLE (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Mortgages, notes and loans payable | ' | ' |
Total mortgages, notes and loans payable | $1,880,916,000 | $1,514,623,000 |
Amount of variable-rate debt swapped to fixed rate | 172,000,000 | ' |
Collateralized mortgages, notes and loans payable | ' | ' |
Mortgages, notes and loans payable | ' | ' |
Fixed-rate debt: | 956,739,000 | 971,786,000 |
Variable-rate debt: | 899,623,000 | 509,737,000 |
Special Improvement District bonds | ' | ' |
Mortgages, notes and loans payable | ' | ' |
Fixed-rate debt: | $24,554,000 | $33,100,000 |
MORTGAGES_NOTES_AND_LOANS_PAYA3
MORTGAGES, NOTES AND LOANS PAYABLE (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 02, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 06, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Apr. 15, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 15, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 14, 2012 | Sep. 30, 2014 | Jul. 18, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | 31-May-12 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 05, 2011 | Oct. 24, 2013 | Sep. 30, 2014 | Feb. 08, 2013 | Sep. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Apr. 26, 2012 | Aug. 02, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 05, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Jul. 15, 2014 | Nov. 01, 2014 | Sep. 30, 2014 | Jul. 15, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 11, 2013 | Sep. 30, 2014 | Dec. 20, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 25, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 06, 2014 | Oct. 31, 2014 | Oct. 03, 2014 |
6.875% Senior Notes Due 2021 | 6.875% Senior Notes Due 2021 | 6.875% Senior Notes Due 2021 | Summerlin | Columbia Regional Building | One Hughes Landing | Waterway Hotel | Other Corporate Financing Arrangements | Other Corporate Financing Arrangements | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Master Planned Communities | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Operating Assets | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | Strategic Developments | |||
item | Bridgeland | Bridgeland | Bridgeland | Bridgeland | Bridgeland | Bridgeland | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin South | Summerlin West | Summerlin West | The Woodlands | The Woodlands | The Woodlands | The Woodlands | Capital lease obligations | Capital lease obligations | 70 Columbia Corporate Center NEW | 70 Columbia Corporate Center NEW | 70 Columbia Corporate Center NEW | 70 Columbia Corporate Center NEW | 70 Columbia Corporate Center NEW | Columbia Regional Building | Columbia Regional Building | One Hughes Landing | One Hughes Landing | One Hughes Landing | 1701 Lake Robbins | 1701 Lake Robbins | Millennium Waterway Apartments | Millennium Waterway Apartments | Millennium Waterway Apartments | 110 N. Wacker | 110 N. Wacker | 9303 New Trails | 9303 New Trails | 9303 New Trails | Outlet Collection at Riverwalk | Outlet Collection at Riverwalk | The Woodlands Resort & Conference Center | The Woodlands Resort & Conference Center | The Woodlands Resort & Conference Center | The Woodlands Resort & Conference Center | 20/25 Waterway Avenue | 20/25 Waterway Avenue | 20/25 Waterway Avenue | 3 Waterway Square | 3 Waterway Square | 3 Waterway Square | 4 Waterway Square | 4 Waterway Square | 4 Waterway Square | Ward Village | Ward Village | Ward Village | Ward Village | Two Hughes Landing | Downtown Summerlin | Downtown Summerlin | Downtown Summerlin | Downtown Summerlin | Downtown Summerlin | Downtown Summerlin | Downtown Summerlin | Downtown Summerlin | ExxonMobil | Two Hughes Landing | Two Hughes Landing | Hughes Landing Retail | Hughes Landing Retail | Hughes Landing Retail | One Lake's Edge | One Lake's Edge | Waterway Hotel | Waiea and Anaha | Hughes Landing Hotel | Hughes Landing Hotel | |||||||||||||||||
Minimum | Land Loan | Land Loan | Development Loan | S108 | S108 | S124 | S124 | S128 | S128 | S128C | S128C | S132 | S132 | S151 | S151 | S808/810 | S808/810 | TWL Facility | TWL Facility | Term loan | Revolving credit line | item | item | item | item | item | item | item | item | Minimum | Maximum | item | Maximum | S108 | S108 | S128 | S128 | item | item | item | sqft | item | item | item | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
item | sqft | acre | sqft | acre | item | sqft | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
sqft | acre | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | 6.88% | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | 5.50% | ' | 5.00% | 5.95% | ' | 5.95% | ' | 7.30% | ' | 6.05% | ' | 6.00% | ' | 6.00% | ' | 7.13% | ' | 2.90% | ' | ' | ' | ' | ' | 3.60% | ' | ' | ' | 2.40% | ' | ' | 2.15% | ' | 2.80% | ' | ' | 5.81% | ' | 3.75% | ' | ' | 5.21% | ' | 4.88% | ' | ' | ' | 2.90% | ' | 3.65% | ' | ' | 4.79% | ' | ' | 3.94% | 3.94% | ' | 4.88% | ' | ' | 3.34% | ' | ' | ' | 2.80% | ' | ' | ' | ' | 2.40% | ' | 5.95% | ' | 6.05% | ' | 2.05% | ' | 2.05% | ' | 2.10% | ' | ' | 2.65% | 2.80% | ' | ' | ' |
Facility Amount | ' | ' | ' | ' | ' | ' | $23,000,000 | $38,000,000 | $69,300,000 | $22,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | $140,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | ' | $125,000,000 | $125,000,000 | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | ' | $23,008,000 | ' | $38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $64,400,000 | ' | $95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | ' | ' | ' | $41,230,000 | ' | ' | $311,800,000 | ' | $311,800,000 | ' | ' | ' | ' | ' | $143,000,000 | ' | ' | ' | $36,575,000 | ' | ' | $73,525,000 | $69,300,000 | $600,000,000 | ' | $37,100,000 |
Maximum outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total mortgages, notes and loans payable | 1,880,916,000 | 1,514,623,000 | ' | 750,000,000 | 750,000,000 | ' | ' | ' | ' | 20,434,000 | 21,309,000 | 237,397,000 | 223,808,000 | ' | 18,100,000 | ' | 15,874,000 | 18,066,000 | 24,200,000 | 694,000 | 823,000 | 256,000 | 285,000 | 665,000 | 707,000 | 5,392,000 | 5,511,000 | 3,232,000 | 3,962,000 | 6,421,000 | 6,623,000 | 4,000,000 | 11,168,000 | 176,663,000 | 176,663,000 | ' | ' | 648,211,000 | 523,312,000 | 156,000 | 205,000 | ' | ' | 20,000,000 | 16,287,000 | ' | 18,960,000 | 9,207,000 | 34,417,000 | 19,128,000 | ' | 4,600,000 | ' | 55,584,000 | 55,584,000 | 55,600,000 | 29,000,000 | 29,000,000 | 13,157,000 | 13,398,000 | ' | ' | 44,703,000 | ' | 66,177,000 | ' | 36,100,000 | 14,383,000 | 14,450,000 | ' | 52,000,000 | 52,000,000 | 52,000,000 | 38,530,000 | 39,237,000 | ' | 238,176,000 | 238,716,000 | ' | ' | 17,858,000 | 232,853,000 | 4,934,000 | ' | ' | 172,913,000 | ' | 388,000 | 452,000 | 3,506,000 | 3,569,000 | 23,702,000 | ' | ' | ' | 14,259,000 | 913,000 | ' | 18,085,000 | ' | ' | ' | ' |
Unamortized underwriting fees | -7,979,000 | -8,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate recourse guarantee amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | 64,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | 'three-month LIBOR | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | 'one-month LIBOR | 'one-month LIBOR | ' | ' | 'one-month LIBOR | ' | ' | 'one-month LIBOR | ' | 'one-month LIBOR |
Variable rate basis below specified limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'prime rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis above specified limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 2.65% | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | 2.25% | ' | ' | ' | ' | ' | ' | 2.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | 2.25% | ' | ' | ' | ' | ' | ' | ' | 1.90% | ' | 2.65% | 1.95% | ' | ' | 2.50% | ' | ' | 6.75% | ' | 2.50% |
Number of rooms | ' | ' | ' | ' | ' | ' | ' | ' | 302 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recourse on loan (as a percent) | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin above specified limit (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding principal balance of debt that is swapped to fixed rate through maturity | 172,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 143,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate per swap (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.21% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate (as a percent) | ' | ' | 6.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.81% | ' | ' | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.79% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount utilized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual principal payments as a percentage of outstanding principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stories of building to be constructed with loan proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' |
Area of office building to be constructed using proceeds from loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 197,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 232,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 197,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | 4.73% | 5.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land, buildings and equipment and developments in progress pledged as collateral | 2,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension period at borrower's option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undrawn borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of a non-recourse construction financing which repaid existing debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of extension options | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' | 2 | ' | ' | 2 | ' | 2 |
Option to extend, term | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '1 year | '1 year | ' | ' | '1 year | ' | ' | '1 year | '1 year | ' |
Debt service coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Occupancy percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | 50.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of refinanced construction loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in exposure of outstanding principal (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of office buildings substantially pre-leased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of rooms in property securing debt (in rooms) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 624 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of original rooms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of newly built rooms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 184 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan to value ratio to draw additional loan proceeds (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of debt yield to draw additional loan proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused portion of the debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash balance required to be maintained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net worth required to be maintained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of real estate taxes and debt service required to be escrowed with the lender | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount to which debt will amortize ratably through maturity following an interest-only period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of site (in acres) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66 | ' | ' | ' | ' | 2.92 | ' | ' | ' | ' | ' |
Maximum facility amount at first extension option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 220,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum facility amount at second extension option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 185,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of spaces in parking garage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 630 | ' | ' | ' | ' | 750 | ' | ' | ' | ' | ' |
Amount of debt issued | ' | ' | 750,000,000 | ' | ' | 311,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 14,500,000 | ' | ' | ' | ' | ' | 41,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which interest rate is fixed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which interest rate is floating | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of real estate property to be constructed (in square feet) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123,000 | ' | ' | 22,289 | ' | ' | ' | ' | ' |
Number of multi-family units to be constructed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 390 | ' | ' | ' | ' | ' |
Area of real estate property (in square foot) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 984 | ' | ' | ' | ' | ' |
Maximum percentage of Notes that can be redeemed using proceeds from equity offerings at any time prior to October 1, 2016 | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount at which Notes can be redeemed | ' | ' | 106.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds | ' | ' | 741,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid in full satisfaction of loan assumed as part of the acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of appreciation in the market value of building | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cumulative preferred return on the property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of participation right | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance of room | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 406 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of rooms demolished | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 218 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DERIVATIVE_INSTRUMENTS_AND_HED2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Interest rate swaps | ' |
Derivative instruments and hedging activities | ' |
Estimated additional amount to be reclassified as interest expense | $2.30 |
Interest rate swaps | Cash Flow Hedges | ' |
Derivative instruments and hedging activities | ' |
Gross notional amounts of cash flow hedges | 172 |
Interest rate cap | Cash Flow Hedges | ' |
Derivative instruments and hedging activities | ' |
Gross notional amounts of cash flow hedges | $100 |
DERIVATIVE_INSTRUMENTS_AND_HED3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) (Derivatives designated as hedging instruments, Accounts payable and accrued liabilities, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value of derivative instruments | ' | ' |
Derivative liabilities | $3,195 | $4,164 |
Interest Rate Swaps | ' | ' |
Fair value of derivative instruments | ' | ' |
Derivative liabilities | $3,195 | $4,164 |
DERIVATIVE_INSTRUMENTS_AND_HED4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 3) (Cash Flow Hedges, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Effect of the Company's derivative financial instruments on the income statement | ' | ' | ' | ' |
Amount of Loss Recognized in OCI | $229 | ($407) | ($742) | $1,079 |
Amount of Loss Reclassified from AOCI into Earnings | -555 | 6 | -1,644 | -1,041 |
Interest Rate Swaps | Interest expense | ' | ' | ' | ' |
Effect of the Company's derivative financial instruments on the income statement | ' | ' | ' | ' |
Amount of Loss Recognized in OCI | 229 | -407 | -742 | 1,079 |
Amount of Loss Reclassified from AOCI into Earnings | ($555) | $6 | ($1,644) | ($1,041) |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 20, 2011 | 6-May-11 | Sep. 30, 2014 | |
GGP | GGP | GGP | GGP | GGP | ||||||
item | item | Maximum | ||||||||
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of former taxable REIT subsidiaries subject to litigation for which motion is filed to consolidate cases | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' |
Percentage of certain taxes indemnified by related party | ' | ' | ' | ' | ' | 93.75% | ' | ' | ' | ' |
Amount of certain taxes indemnified by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | $303,800,000 |
Amount of interest income receivable on the Tax Indemnity receivable | ' | ' | ' | ' | ' | 57,500,000 | 38,600,000 | ' | ' | ' |
Amount of combined deficiencies determined by the IRS sought to be overturned by the petition filed | ' | ' | ' | ' | ' | ' | ' | ' | 144,100,000 | ' |
Unrecognized tax benefits, excluding interest | 174,400,000 | ' | 174,400,000 | ' | 90,500,000 | ' | ' | ' | ' | ' |
Accrued interest related to unrecognized tax benefits | 57,500,000 | ' | 57,500,000 | ' | 38,700,000 | ' | ' | ' | ' | ' |
Interest expense related to unrecognized tax benefits | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net increase in tax indemnity receivable | ' | ' | 13,400,000 | ' | ' | ' | ' | ' | ' | ' |
Increase in tax indemnity receivable due to the increase in the related interest income | ' | ' | 18,856,000 | 5,555,000 | ' | ' | ' | ' | ' | ' |
Loss on remeasurement | -5,454,000 | -730,000 | 5,473,000 | 8,673,000 | ' | ' | ' | ' | ' | ' |
Effective tax rate (as a percent) | 1.30% | 41.40% | -896.50% | -29.50% | ' | ' | ' | ' | ' | ' |
Deferred tax liabilities related to land and buildings | ' | ' | ' | ' | $48,000,000 | ' | ' | ' | ' | ' |
STOCKBASED_PLANS_Details
STOCK-BASED PLANS (Details) (Stock Options, USD $) | 9 Months Ended | 1 Months Ended | |
Sep. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | |
Total shareholder return through 2018 | Vest on December 31, 2018 | ||
Key employees | Key employees | ||
Stock Options | ' | ' | ' |
Stock Options Outstanding at the beginning of the period (in shares) | 965,440 | ' | ' |
Granted (in shares) | 105,000 | ' | ' |
Forfeited (in shares) | -32,700 | ' | ' |
Stock Options Outstanding at the end of the period (in shares) | 1,037,740 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Stock Options Outstanding at the beginning of the period (in dollars per share) | $64.57 | ' | ' |
Granted (in dollars per share) | $146 | ' | ' |
Forfeited (in dollars per share) | $85.27 | ' | ' |
Stock Options Outstanding at the end of the period (in dollars per share) | $72.16 | ' | ' |
Percentage of awards vesting | ' | 50.00% | 50.00% |
STOCKBASED_PLANS_Details_2
STOCK-BASED PLANS (Details 2) (Restricted stock, USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Total shareholder return through 2018 | Vest on December 31, 2018 | General and administrative expenses | General and administrative expenses | ||
Key employees | Key employees | ||||
Stock-based plans | ' | ' | ' | ' | ' |
Recognized compensation expense | ' | ' | ' | $1.10 | $2.90 |
Unamortized restricted stock expense | $11.40 | ' | ' | ' | ' |
Weighted-average period for recognition of unamortized restricted stock expense | '3 years 6 months | ' | ' | ' | ' |
Restricted stock activity | ' | ' | ' | ' | ' |
Restricted stock outstanding at the beginning of the period (in shares) | 122,332 | ' | ' | ' | ' |
Granted (in shares) | 61,750 | ' | ' | ' | ' |
Vested (in shares) | -11,394 | ' | ' | ' | ' |
Restricted stock outstanding at the end of the period (in shares) | 172,688 | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' |
Restricted stock outstanding at the beginning of the period (in dollars per share) | $75.21 | ' | ' | ' | ' |
Granted (in dollars per share) | $126.38 | ' | ' | ' | ' |
Vested (in dollars per share) | $97.72 | ' | ' | ' | ' |
Restricted stock outstanding at the end of the period (in dollars per share) | $92.02 | ' | ' | ' | ' |
Percentage of awards vesting | ' | 50.00% | 50.00% | ' | ' |
OTHER_ASSETS_AND_LIABILITIES_D
OTHER ASSETS AND LIABILITIES (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Prepaid Expenses and Other Assets | ' | ' | ' |
Total prepaid expenses and other assets | $314,266,000 | ' | $173,940,000 |
Increase in security and escrow deposits | 10,500,000 | ' | ' |
Increase in uncertain tax position asset | 6,600,000 | ' | ' |
Accounts Payable and Accrued Expenses | ' | ' | ' |
Total accounts payable and accrued expenses | 516,461,000 | ' | 283,991,000 |
Increase in accounts payable and accrued expenses | 18,055,000 | 5,773,000 | ' |
Increase in deferred income | ' | 14,100,000 | ' |
Increase in accrued interest | ' | 11,300,000 | ' |
Prepaid expenses and other assets | ' | ' | ' |
Prepaid Expenses and Other Assets | ' | ' | ' |
Special Improvement District receivable | 39,777,000 | ' | 39,688,000 |
Equipment, net of accumulated depreciation of $2.0 million and $0.7 million, respectively | 20,662,000 | ' | 21,978,000 |
Tenant incentives and other receivables | 6,361,000 | ' | 6,757,000 |
Federal income tax receivable | 5,809,000 | ' | 6,053,000 |
Prepaid expenses | 9,461,000 | ' | 4,744,000 |
Condominium deposits | 137,407,000 | ' | 12,405,000 |
Security and escrow deposits | 38,577,000 | ' | 28,082,000 |
Uncertain tax position asset | 20,131,000 | ' | 13,528,000 |
Intangibles | 3,624,000 | ' | 3,714,000 |
Other | 3,731,000 | ' | 6,588,000 |
Total prepaid expenses and other assets | 314,266,000 | ' | 173,940,000 |
Accumulated depreciation on other equipment | 2,000,000 | ' | 700,000 |
Increase in prepaid expenses and other assets | 140,300,000 | ' | ' |
Increase in restricted condominium deposits | 125,000,000 | ' | ' |
Accounts payable and accrued expenses | ' | ' | ' |
Accounts Payable and Accrued Expenses | ' | ' | ' |
Construction payables | 194,197,000 | ' | 106,741,000 |
Accounts payable and accrued expenses | 34,687,000 | ' | 46,998,000 |
Condominium deposits | 137,407,000 | ' | 12,405,000 |
Membership deposits | 20,908,000 | ' | 24,830,000 |
Deferred income | 33,044,000 | ' | 18,963,000 |
Accrued interest | 28,793,000 | ' | 17,463,000 |
Accrued real estate taxes | 9,860,000 | ' | 8,581,000 |
Tenant and other deposits | 16,768,000 | ' | 9,490,000 |
Insurance reserve | ' | ' | 1,417,000 |
Accrued payroll and other employee liabilities | 16,151,000 | ' | 15,666,000 |
Special Assessment | 2,603,000 | ' | 2,603,000 |
Interest rate swap | 3,195,000 | ' | 4,164,000 |
Other | 16,536,000 | ' | 12,239,000 |
Total accounts payable and accrued expenses | 516,461,000 | ' | 283,991,000 |
Increase in accounts payable and accrued expenses | 232,500,000 | ' | ' |
Increase in condominium deposits | 125,000,000 | ' | ' |
Increase in construction payable | 87,500,000 | ' | ' |
Ward Village | ' | ' | ' |
Prepaid Expenses and Other Assets | ' | ' | ' |
Number of new market rate towers | 2 | ' | ' |
Below-market ground leases | Prepaid expenses and other assets | ' | ' | ' |
Prepaid Expenses and Other Assets | ' | ' | ' |
Net carrying amount | 19,748,000 | ' | 20,002,000 |
Above-market tenant leases | Prepaid expenses and other assets | ' | ' | ' |
Prepaid Expenses and Other Assets | ' | ' | ' |
Net carrying amount | 941,000 | ' | 1,095,000 |
In-place value tenant leases | Prepaid expenses and other assets | ' | ' | ' |
Prepaid Expenses and Other Assets | ' | ' | ' |
Net carrying amount | 8,037,000 | ' | 9,306,000 |
Above-market ground leases | Accounts payable and accrued expenses | ' | ' | ' |
Accounts Payable and Accrued Expenses | ' | ' | ' |
Net carrying amount | $2,312,000 | ' | $2,431,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (''AOCI'') (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ($8,222) | ' |
Other comprehensive income (loss) | 604 | -706 | 545 | 1,096 |
Balance at the end of the period | -7,677 | ' | -7,677 | ' |
Gains and Losses on Cash Flow Hedges | ' | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' |
Balance at the beginning of the period | -8,281 | ' | -8,222 | ' |
Other comprehensive income before reclassifications | 49 | ' | -1,099 | ' |
Amounts reclassified from accumulated other comprehensive loss | 555 | ' | 1,644 | ' |
Other comprehensive income (loss) | 604 | ' | 545 | ' |
Balance at the end of the period | ($7,677) | ' | ($7,677) | ' |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (''AOCI'') (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Provision for income taxes | ($590) | ($5,172) | ($49,895) | ($21,012) |
Net income (loss) | 45,615 | 7,433 | -55,449 | -92,233 |
Gains and losses on cash flow hedges | Interest Rate Swaps | Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Interest expense | -631 | ' | -1,867 | ' |
Provision for income taxes | 76 | ' | 223 | ' |
Net income (loss) | ($555) | ' | ($1,644) | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
COMMITMENTS AND CONTINGENCIES | ' | ' |
Amount of outstanding letters of credit and surety bonds | $61.20 | $58.70 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details 2) (South Street Seaport ground lease, USD $) | 0 Months Ended |
Jun. 27, 2013 | |
South Street Seaport ground lease | ' |
Commitments | ' |
Annual fixed rent | $1,200,000 |
Annual rent escalation rate (as a percent) | 3.00% |
Additional annual rent payments to be made through the term of the lease | 210,000 |
Rent credit to be received | $1,500,000 |
Maximum period for rent credit | '30 months |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 3) (Damage due to flooding, USD $) | 3 Months Ended | 9 Months Ended | 21 Months Ended | 24 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Damage due to flooding | ' | ' | ' | ' |
Insurance recoveries | ' | ' | ' | ' |
Insurance recoveries collected | ' | ' | $47.60 | ' |
Pre-tax gain recognized in Other (income)/expense | $11.50 | $24.60 | ' | $36.80 |
SEGMENTS_Details
SEGMENTS (Details) | 9 Months Ended |
Sep. 30, 2014 | |
item | |
SEGMENTS | ' |
Number of reportable segments | 3 |
Revenues | One commercial land sales buyer | Master Planned Communities | ' |
Segments reporting | ' |
Concentration risk (as a percent) | 15.10% |
SEGMENTS_Details_2
SEGMENTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segments reporting | ' | ' | ' | ' |
Land sales | $59,351 | $53,734 | $260,186 | $166,981 |
Builder price participation | 5,311 | 2,002 | 13,251 | 5,703 |
Minimum rents | 24,380 | 21,538 | 66,929 | 60,598 |
Tenant recoveries | 7,601 | 5,291 | 20,509 | 15,681 |
Condominium rights and unit sales | 4,032 | 810 | 11,516 | 31,191 |
Other land revenues | 4,112 | 3,579 | 9,322 | 10,211 |
Resort and conference center revenues | 8,150 | 8,169 | 27,198 | 30,543 |
Other rental and property revenues | 6,291 | 4,492 | 18,601 | 14,557 |
Total revenues | 119,228 | 99,615 | 427,512 | 335,465 |
Cost of sales - land | 27,743 | 27,063 | 93,540 | 82,616 |
Condominium rights and unit cost of sales | 2,026 | 406 | 5,788 | 15,678 |
Other property operating costs | 15,198 | 20,329 | 45,603 | 52,126 |
Rental property real estate taxes | 4,559 | 3,698 | 12,540 | 10,814 |
Rental property maintenance costs | 2,313 | 2,048 | 6,402 | 5,996 |
Resort and conference center operations | 8,910 | 7,381 | 22,833 | 22,537 |
Provision for doubtful accounts | 119 | 204 | 293 | 910 |
Demolition costs | 760 | 1,386 | 6,711 | 1,386 |
Development-related marketing costs | 6,387 | 1,050 | 15,909 | 1,771 |
Depreciation and amortization | 13,018 | 9,986 | 35,000 | 23,210 |
Other income, net | -11,409 | -6,314 | -27,468 | -11,727 |
Interest income | 1,162 | -2,061 | -19,651 | -6,484 |
Interest expense | 12,136 | 1 | 28,354 | 144 |
Equity in Earnings from Real Estate and Other Affiliates | -5,509 | -3,594 | -18,164 | -12,034 |
REP EBT | 35,560 | 23,408 | 187,582 | 107,450 |
Operating segment | Master Planned Communities | ' | ' | ' | ' |
Segments reporting | ' | ' | ' | ' |
Land sales | 59,351 | 53,734 | 260,186 | 166,981 |
Builder price participation | 5,311 | 2,002 | 13,251 | 5,703 |
Minimum rents | 210 | 196 | 614 | 585 |
Other land revenues | 4,103 | 3,579 | 9,296 | 10,211 |
Other rental and property revenues | 198 | ' | 373 | ' |
Total revenues | 69,173 | 59,511 | 283,720 | 183,480 |
Cost of sales - land | 27,743 | 27,063 | 93,540 | 82,616 |
Land sales operations | 8,068 | 7,393 | 24,629 | 22,705 |
Land sales real estate and business taxes | 2,927 | 2,370 | 7,016 | 5,348 |
Depreciation and amortization | 101 | 10 | 304 | 25 |
Interest income | -17 | ' | -96 | -16 |
Interest expense | -3,332 | -3,689 | -13,210 | -13,295 |
Total expenses | 35,490 | 33,147 | 112,183 | 97,383 |
REP EBT | 33,683 | 26,364 | 171,537 | 86,097 |
Operating segment | Operating Assets | ' | ' | ' | ' |
Segments reporting | ' | ' | ' | ' |
Minimum rents | 24,035 | 21,160 | 65,853 | 59,427 |
Tenant recoveries | 7,581 | 5,254 | 20,406 | 15,547 |
Resort and conference center revenues | 8,150 | 8,169 | 27,198 | 30,543 |
Other rental and property revenues | 6,076 | 4,493 | 17,756 | 14,538 |
Total revenues | 45,842 | 39,076 | 131,213 | 120,055 |
Other property operating costs | 14,116 | 17,640 | 42,782 | 48,436 |
Rental property real estate taxes | 3,716 | 3,148 | 10,585 | 9,054 |
Rental property maintenance costs | 2,154 | 1,906 | 5,962 | 5,594 |
Resort and conference center operations | 8,910 | 7,381 | 22,833 | 22,537 |
Provision for doubtful accounts | 103 | 201 | 277 | 907 |
Demolition costs | 761 | 1,386 | 6,689 | 1,386 |
Development-related marketing costs | 589 | 1,050 | 5,379 | 1,771 |
Depreciation and amortization | 11,261 | 9,171 | 29,802 | 21,687 |
Interest income | -11 | -32 | -141 | -122 |
Interest expense | 4,917 | 4,017 | 10,889 | 14,715 |
Equity in Earnings from Real Estate and Other Affiliates | -202 | -647 | -2,774 | -3,743 |
Total expenses | 46,314 | 45,221 | 132,283 | 122,222 |
REP EBT | -472 | -6,145 | -1,070 | -2,167 |
Operating segment | Strategic Developments | ' | ' | ' | ' |
Segments reporting | ' | ' | ' | ' |
Minimum rents | 137 | 182 | 473 | 586 |
Tenant recoveries | 18 | 38 | 92 | 135 |
Condominium rights and unit sales | 4,032 | 810 | 11,516 | 31,191 |
Other land revenues | 9 | ' | 26 | ' |
Other rental and property revenues | 17 | -2 | 472 | 18 |
Total revenues | 4,213 | 1,028 | 12,579 | 31,930 |
Condominium rights and unit cost of sales | 2,026 | 406 | 5,788 | 15,678 |
Other property operating costs | 1,083 | 2,691 | 2,821 | 3,692 |
Rental property real estate taxes | 843 | 549 | 1,955 | 1,759 |
Rental property maintenance costs | 159 | 142 | 440 | 402 |
Provision for doubtful accounts | 16 | 3 | 16 | 3 |
Demolition costs | -1 | ' | 22 | ' |
Development-related marketing costs | 5,798 | ' | 10,530 | ' |
Depreciation and amortization | 445 | 48 | 1,483 | 139 |
Other income, net | ' | -2,652 | -2,373 | -3,609 |
Interest expense | -3,198 | -401 | -9,828 | -1,363 |
Equity in Earnings from Real Estate and Other Affiliates | -5,307 | -2,947 | -15,390 | -8,291 |
Total expenses | 1,864 | -2,161 | -4,536 | 8,410 |
REP EBT | $2,349 | $3,189 | $17,115 | $23,520 |
SEGMENTS_Details_3
SEGMENTS (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reconciliation of REP EBT to GAAP net income (loss) | ' | ' | ' | ' |
REP EBT | $35,560 | $23,408 | $187,582 | $107,450 |
General and administrative | -14,759 | -11,914 | -49,138 | -34,310 |
Interest (expense)/income, net | -1,162 | 2,061 | 19,651 | 6,484 |
Warrant liability gain (loss) | 24,690 | -4,479 | -139,120 | -148,706 |
Provision for income taxes | -590 | -5,172 | -49,895 | -21,012 |
Increase (reduction) in tax indemnity receivable | 5,454 | 730 | -5,473 | -8,673 |
Other income, net | 11,409 | 6,314 | 27,468 | 11,727 |
Depreciation and amortization | 13,018 | 9,986 | 35,000 | 23,210 |
Net income (loss) | 45,615 | 7,433 | -55,449 | -92,233 |
Corporate | ' | ' | ' | ' |
Reconciliation of REP EBT to GAAP net income (loss) | ' | ' | ' | ' |
Interest (expense)/income, net | -14,938 | 1,955 | -21,089 | 6,259 |
Other income, net | 11,409 | 3,662 | 25,095 | 8,118 |
Depreciation and amortization | ($1,211) | ($757) | ($3,411) | ($1,359) |
SEGMENTS_Details_4
SEGMENTS (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reconciliation of segment revenues to GAAP-basis consolidated revenues: | ' | ' | ' | ' |
Total revenues | $119,228 | $99,615 | $427,512 | $335,465 |
Master Planned Communities | Operating segment | ' | ' | ' | ' |
Reconciliation of segment revenues to GAAP-basis consolidated revenues: | ' | ' | ' | ' |
Total revenues | 69,173 | 59,511 | 283,720 | 183,480 |
Operating Assets | Operating segment | ' | ' | ' | ' |
Reconciliation of segment revenues to GAAP-basis consolidated revenues: | ' | ' | ' | ' |
Total revenues | 45,842 | 39,076 | 131,213 | 120,055 |
Strategic Developments | Operating segment | ' | ' | ' | ' |
Reconciliation of segment revenues to GAAP-basis consolidated revenues: | ' | ' | ' | ' |
Total revenues | $4,213 | $1,028 | $12,579 | $31,930 |
SEGMENTS_Details_5
SEGMENTS (Details 5) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Reconciliation of total segment assets to total assets | ' | ' |
Assets | $5,311,169,000 | $4,567,868,000 |
Strategic Developments | ' | ' |
Additional information | ' | ' |
Increase (Decrease) in Assets | 605,900,000 | ' |
Strategic Developments | Ward Village | ' | ' |
Additional information | ' | ' |
Increase (Decrease) in Assets | 41,200,000 | ' |
Deposits collected on the sale of condominium units | 125,000,000 | ' |
Increase in buildings and equipment | 21,600,000 | ' |
Strategic Developments | Downtown Summerlin | ' | ' |
Additional information | ' | ' |
New developments in progress | 190,500,000 | ' |
Strategic Developments | Hughes Landing - Multi-family | ' | ' |
Additional information | ' | ' |
Increase (Decrease) in Assets | 41,300,000 | ' |
Strategic Developments | ExxonMobil | ' | ' |
Additional information | ' | ' |
Increase (Decrease) in Assets | 60,400,000 | ' |
Strategic Developments | Hughes Landing Retail | ' | ' |
Additional information | ' | ' |
Increase (Decrease) in Assets | 17,100,000 | ' |
Strategic Developments | The Woodlands | ' | ' |
Additional information | ' | ' |
Increase (Decrease) in Assets | 35,800,000 | ' |
Strategic Developments | Land parcel near the Seaport | ' | ' |
Additional information | ' | ' |
Purchase deposits | 16,100,000 | ' |
Strategic Developments | ONE Ala Moana | ' | ' |
Additional information | ' | ' |
Increase in the carrying value of investment | 21,400,000 | ' |
Operating segment | ' | ' |
Reconciliation of total segment assets to total assets | ' | ' |
Assets | 4,275,252,000 | 3,381,501,000 |
Operating segment | Master Planned Communities | ' | ' |
Reconciliation of total segment assets to total assets | ' | ' |
Assets | 1,855,671,000 | 1,760,639,000 |
Operating segment | Operating Assets | ' | ' |
Reconciliation of total segment assets to total assets | ' | ' |
Assets | 1,351,090,000 | 1,158,337,000 |
Operating segment | Operating Assets | Previously reported | ' | ' |
Additional information | ' | ' |
Tax indemnification asset | ' | 185,700,000 |
Operating segment | Strategic Developments | ' | ' |
Reconciliation of total segment assets to total assets | ' | ' |
Assets | 1,068,491,000 | 462,525,000 |
Corporate and other | ' | ' |
Reconciliation of total segment assets to total assets | ' | ' |
Assets | 1,035,917,000 | 1,186,367,000 |
Additional information | ' | ' |
Increase (Decrease) in Assets | 150,500,000 | ' |
Tax indemnification asset | ' | $320,500,000 |