Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'ONE LIBERTY PROPERTIES INC | ' |
Entity Central Index Key | '0000712770 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 15,645,646 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Real estate investments, at cost | ' | ' |
Land | $153,513 | $138,152 |
Buildings and improvements | 414,901 | 335,189 |
Total real estate investments, at cost | 568,414 | 473,341 |
Less accumulated depreciation | 70,059 | 62,816 |
Real estate investments, net | 498,355 | 410,525 |
Investment in unconsolidated joint ventures | 4,984 | 19,485 |
Cash and cash equivalents | 18,903 | 14,577 |
Unbilled rent receivable | 13,380 | 12,629 |
Unamortized intangible lease assets | 25,432 | 16,491 |
Escrow, deposits and other assets and receivables | 5,015 | 3,741 |
Investment in BRT Realty Trust at market (related party) | 266 | 241 |
Unamortized deferred financing costs | 3,294 | 3,477 |
Total assets | 569,629 | 481,166 |
Liabilities: | ' | ' |
Mortgages payable | 276,805 | 225,971 |
Line of credit | 23,500 | ' |
Dividends payable | 5,447 | 5,252 |
Accrued expenses and other liabilities | 8,554 | 6,584 |
Unamortized intangible lease liabilities | 6,416 | 5,300 |
Total liabilities | 320,722 | 243,107 |
Commitments and contingencies | ' | ' |
One Liberty Properties, Inc. stockholders' equity: | ' | ' |
Preferred stock, $1 par value; 12,500 shares authorized; none issued | ' | ' |
Common stock, $1 par value; 25,000 shares authorized; 15,102 and 14,598 shares issued and outstanding | 15,102 | 14,598 |
Paid-in capital | 207,703 | 196,107 |
Accumulated other comprehensive loss | -1,246 | -1,578 |
Accumulated undistributed net income | 26,203 | 28,001 |
Total One Liberty Properties, Inc. stockholders' equity | 247,762 | 237,128 |
Non-controlling interests in joint ventures | 1,145 | 931 |
Total equity | 248,907 | 238,059 |
Total liabilities and equity | $569,629 | $481,166 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 12,500 | 12,500 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 15,102 | 14,598 |
Common stock, shares outstanding | 15,102 | 14,598 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Rental income, net | $13,214 | $11,333 | $37,542 | $33,193 |
Operating expenses: | ' | ' | ' | ' |
Depreciation and amortization | 3,019 | 2,426 | 8,406 | 7,179 |
General and administrative (including $572, $572, $1,716 and $1,716, respectively, to related party) | 1,938 | 1,873 | 5,841 | 5,463 |
Federal excise and state taxes | -7 | 38 | 218 | 135 |
Real estate expenses (including $150, $150, $450 and $450, respectively, to related party) | 851 | 640 | 2,375 | 1,939 |
Leasehold rent | 77 | 77 | 231 | 231 |
Real estate acquisition costs | 544 | 93 | 822 | 259 |
Total operating expenses | 6,422 | 5,147 | 17,893 | 15,206 |
Operating income | 6,792 | 6,186 | 19,649 | 17,987 |
Other income and expenses: | ' | ' | ' | ' |
Equity in earnings of unconsolidated joint ventures | 122 | 268 | 513 | 1,015 |
Gain on disposition of real estate - unconsolidated joint venture | ' | ' | 2,807 | ' |
Gain on sale - unconsolidated joint venture interest | ' | ' | 1,898 | ' |
Other income | 10 | 6 | 89 | 230 |
Interest: | ' | ' | ' | ' |
Expense | -3,473 | -3,261 | -9,865 | -9,753 |
Amortization of deferred financing costs | -223 | -198 | -662 | -570 |
Gain on sale of real estate | ' | ' | ' | 319 |
Income from continuing operations | 3,228 | 3,001 | 14,429 | 9,228 |
Discontinued operations: | ' | ' | ' | ' |
Income from operations | ' | 369 | ' | 917 |
Net gain on sales | ' | 15,050 | ' | 17,254 |
Income from discontinued operations | ' | 15,419 | ' | 18,171 |
Net income | 3,228 | 18,420 | 14,429 | 27,399 |
Less net income attributable to non-controlling interests | -17 | -6 | -32 | -13 |
Net income attributable to One Liberty Properties, Inc. | $3,211 | $18,414 | $14,397 | $27,386 |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 15,093 | 14,443 | 14,871 | 14,370 |
Diluted (in shares) | 15,193 | 14,543 | 14,971 | 14,470 |
Per common share attributable to common stockholders - basic: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.20 | $0.20 | $0.93 | $0.62 |
Income from discontinued operations (in dollars per share) | ' | $1.04 | ' | $1.23 |
Total per common share attributable to common stockholders - basic (in dollars per share) | $0.20 | $1.24 | $0.93 | $1.85 |
Per common share attributable to common stockholders - diluted: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.20 | $0.20 | $0.93 | $0.62 |
Income from discontinued operations (in dollars per share) | ' | $1.03 | ' | $1.22 |
Total per common share attributable to common stockholders - diluted (in dollars per share) | $0.20 | $1.23 | $0.93 | $1.84 |
Cash distributions declared per share of common stock (in dollars per share) | $0.35 | $0.33 | $1.05 | $0.99 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' | ' |
General and administrative, related party | $572 | $572 | $1,716 | $1,716 |
Real estate expenses, related party | $150 | $150 | $450 | $450 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $3,228 | $18,420 | $14,429 | $27,399 |
Other comprehensive gain | ' | ' | ' | ' |
Net unrealized gain (loss) on available-for-sale securities | 7 | -1 | 52 | 10 |
Net unrealized (loss) gain on derivative instruments | -688 | -118 | 220 | -530 |
One Liberty Property's share of joint venture net unrealized (loss) gain on derivative instruments | -1 | -11 | 60 | -36 |
Other comprehensive (loss) gain | -682 | -130 | 332 | -556 |
Comprehensive income | 2,546 | 18,290 | 14,761 | 26,843 |
Less: comprehensive income attributable to non-controlling interests | -17 | -6 | -32 | -13 |
Comprehensive income attributable to One Liberty Properties, Inc. | $2,529 | $18,284 | $14,729 | $26,830 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Undistributed Net Income | Non-Controlling Interests in Joint Ventures |
Balances at Dec. 31, 2011 | $218,947,000 | $14,213,000 | $189,486,000 | ($1,019,000) | $15,605,000 | $662,000 |
Distributions - common stock | ' | ' | ' | ' | ' | ' |
Cash - $1.05 and $1.34 per share for the nine months ended September 30, 2013 and for the year ended December 31, 2012, respectively | -19,924,000 | ' | ' | ' | -19,924,000 | ' |
Shares issued through equity offering program - net | 2,131,000 | 121,000 | 2,010,000 | ' | ' | ' |
Shares issued through dividend reinvestment plan | 3,652,000 | 215,000 | 3,437,000 | ' | ' | ' |
Contribution from non-controlling interest | 571,000 | ' | ' | ' | ' | 571,000 |
Distributions to non-controlling interest | -290,000 | ' | ' | ' | ' | -290,000 |
Restricted stock vesting | ' | 49,000 | -49,000 | ' | ' | ' |
Compensation expense - restricted stock | 1,223,000 | ' | 1,223,000 | ' | ' | ' |
Net income (loss) | 32,308,000 | ' | ' | ' | 32,320,000 | -12,000 |
Other comprehensive income (loss) | -559,000 | ' | ' | -559,000 | ' | ' |
Balances at Dec. 31, 2012 | 238,059,000 | 14,598,000 | 196,107,000 | -1,578,000 | 28,001,000 | 931,000 |
Distributions - common stock | ' | ' | ' | ' | ' | ' |
Cash - $1.05 and $1.34 per share for the nine months ended September 30, 2013 and for the year ended December 31, 2012, respectively | -16,195,000 | ' | ' | ' | -16,195,000 | ' |
Shares issued through equity offering program - net | 7,962,000 | 308,000 | 7,654,000 | ' | ' | ' |
Shares issued through dividend reinvestment plan | 3,006,000 | 146,000 | 2,860,000 | ' | ' | ' |
Contribution from non-controlling interest | 481,000 | ' | ' | ' | ' | 481,000 |
Distributions to non-controlling interest | -299,000 | ' | ' | ' | ' | -299,000 |
Restricted stock vesting | ' | 50,000 | -50,000 | ' | ' | ' |
Compensation expense - restricted stock | 1,132,000 | ' | 1,132,000 | ' | ' | ' |
Net income (loss) | 14,429,000 | ' | ' | ' | 14,397,000 | 32,000 |
Other comprehensive income (loss) | 332,000 | ' | ' | 332,000 | ' | ' |
Balances at Sep. 30, 2013 | $248,907,000 | $15,102,000 | $207,703,000 | ($1,246,000) | $26,203,000 | $1,145,000 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ' | ' | ' | ' | ' |
Distributions - common stock, Cash per share (in dollars per share) | $0.35 | $0.33 | $1.05 | $0.99 | $1.34 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $14,429 | $27,399 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Gain on disposition-real estate held by unconsolidated joint venture | -2,807 | ' |
Gain on sale-unconsolidated joint venture interest | -1,898 | ' |
Gain on sales of real estate | ' | -17,573 |
Gain on sale of available-for-sale securities | -6 | -9 |
Increase in rental income from straight-lining of rent | -751 | -1,046 |
Increase in rental income resulting from bad debt recovery, net | ' | -116 |
Increase in rental income from amortization of intangibles relating to leases | -99 | 3 |
Amortization of restricted stock expense | 1,132 | 909 |
Equity in earnings of unconsolidated joint ventures | -513 | -1,015 |
Distributions of earnings from unconsolidated joint ventures | 968 | 730 |
Depreciation and amortization | 8,406 | 7,429 |
Amortization and write off of financing costs | 662 | 594 |
Changes in assets and liabilities: | ' | ' |
Increase in escrow, deposits, other assets and receivables | -1,104 | -1,604 |
Increase (decrease) in accrued expenses and other liabilities | 1,111 | -611 |
Net cash provided by operating activities | 19,530 | 15,090 |
Cash flows from investing activities: | ' | ' |
Purchase of real estate | -101,314 | -14,181 |
Improvements to real estate | -1,680 | -2,800 |
Distributions of return of capital from unconsolidated joint ventures | 5,397 | 95 |
Net proceeds from sale of real estate | ' | 24,823 |
Net proceeds from disposition of unconsolidated joint venture interest | 13,444 | ' |
Payment of leasing commissions | -122 | -322 |
Net proceeds from sale of available-for-sale securities | 19 | 369 |
Net cash (used in) provided by investing activities | -84,256 | 7,984 |
Cash flows from financing activities: | ' | ' |
Scheduled amortization payments of mortgages payable | -4,859 | -4,088 |
Repayment of mortgages payable | -4,708 | -29,758 |
Proceeds from mortgage financings | 60,401 | 38,818 |
Proceeds from sale of common stock, net | 7,962 | 2,153 |
Proceeds from bank line of credit | 27,000 | 9,300 |
Repayment on bank line of credit | -3,500 | -22,950 |
Issuance of shares through dividend reinvestment plan | 3,006 | 2,520 |
Payment of financing costs | -434 | -1,560 |
Capital contributions from non-controlling interests | 481 | 93 |
Distribution to non-controlling interests | -299 | -290 |
Cash distributions to common stockholders | -15,998 | -14,546 |
Net cash provided by (used in) financing activities | 69,052 | -20,308 |
Net increase in cash and cash equivalents | 4,326 | 2,766 |
Cash and cash equivalents at beginning of period | 14,577 | 12,668 |
Cash and cash equivalents at end of period | 18,903 | 15,434 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid during the period for interest expense | 9,738 | 10,018 |
Supplemental schedule of non-cash investing and financing activities: | ' | ' |
Contribution of property to unconsolidated joint venture | ' | 11,734 |
Purchase accounting allocation - intangible lease assets | 10,333 | 3,487 |
Purchase accounting allocation - intangible lease liabilities | $1,544 | $11 |
Organization_and_Background
Organization and Background | 9 Months Ended |
Sep. 30, 2013 | |
Organization and Background | ' |
Organization and Background | ' |
Note 1 - Organization and Background | |
One Liberty Properties, Inc. (“OLP”) was incorporated in 1982 in Maryland. OLP is a self-administered and self-managed real estate investment trust (“REIT”). OLP acquires, owns and manages a geographically diversified portfolio of retail, industrial, flex, office, health and fitness and other properties, a substantial portion of which are subject to long-term net leases. As of September 30, 2013, OLP owned 107 properties, including five properties owned by consolidated joint ventures and five properties owned by unconsolidated joint ventures. The 107 properties are located in 29 states. |
Basis_of_Preparation
Basis of Preparation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Preparation | ' |
Basis of Preparation | ' |
Note 2 - Basis of Preparation | |
Principles of Consolidation/Basis of Preparation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring accruals) have been included. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries and its investment in five joint ventures in which the Company, as defined, has a controlling interest. OLP and its consolidated subsidiaries are hereinafter referred to as the “Company”. Material intercompany items and transactions have been eliminated in consolidation. | |
Investment in Joint Ventures | |
The Financial Accounting Standards Board, or FASB, guidance for determining whether an entity is a variable interest entity, or VIE, requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. | |
The Company assesses the accounting treatment for each joint venture investment. This assessment includes a review of each joint venture or limited liability company agreement to determine the rights of each party and whether those rights are protective or participating. The agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where the Company and its partner (i) approve the annual budget, (ii) approve certain expenditures, (iii) prepare or review and approve the joint venture’s tax return before filing, and (iv) approve each lease at each property, the Company does not consolidate the joint venture as the Company considers these to be substantive participation rights that result in shared power over the activities that most significantly impact the performance of the joint venture. | |
With respect to the five consolidated joint ventures in which the Company has between an 85% to 95% interest, the Company has determined that (i) such ventures are not VIE’s and (ii) the Company exercises substantial operating control and accordingly, such ventures are consolidated for financial statement purposes. | |
The Company accounts for its investments in five unconsolidated joint ventures under the equity method of accounting. All investments in these five joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these five joint ventures are VIE’s. In addition, although the Company is the managing member, it does not exercise substantial operating control over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. None of the joint venture debt is recourse to the Company, subject to standard carve-outs. | |
Reclassification | |
Certain amounts reported in previous consolidated financial statements for the three and nine months ended September 30, 2012 have been reclassified in the accompanying consolidated financial statements to conform to the current period’s presentation, primarily to reclassify the operations of a property that was sold in December 2012 to discontinued operations. In addition, the operations of the Company’s tenant-in-common interest were reclassified for the three and nine months ended September 30, 2012. The reclassification transfers the tenant-in-common interest related amounts recorded in certain line items on the income statement (rental income, depreciation and amortization, real estate expenses, mortgage interest expense and amortization of deferred financing costs) to equity in earnings of unconsolidated joint ventures. This tenant-in-common interest was sold in May 2013. | |
Additionally, the accompanying income statements include the reclassification of state tax expense in the three and nine months ended September 30, 2012 from general and administrative expense to federal excise and state taxes to conform to the current year’s presentation. | |
None of the reclassifications had an effect on net income or stockholders’ equity. |
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Common Share | ' | |||||||||||||
Earnings Per Common Share | ' | |||||||||||||
Note 3 - Earnings Per Common Share | ||||||||||||||
Basic earnings per share was determined by dividing net income allocable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. Net income is also allocated to the unvested restricted stock during the applicable period, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. Unvested restricted stock is not allocated net losses and/or any excess of dividends declared over net income; such amounts are allocated entirely to the common stockholders other than the holders of unvested restricted stock. The restricted stock units awarded under the Pay-for-Performance program described in Note 11 are excluded from the basic earnings per share calculation as these units are not participating securities. | ||||||||||||||
Diluted earnings per share reflects the potential dilution that could occur if securities or other rights exercisable for, or convertible into, common stock were exercised or converted or otherwise resulted in the issuance of common stock that shared in the earnings of the Company. For the three and nine months ended September 30, 2013 and 2012, the diluted weighted average number of common shares includes 100,000 shares (of an aggregate of 200,000 shares) of common stock underlying the restricted stock units awarded pursuant to the Pay-For-Performance Program. These 100,000 shares may vest upon satisfaction of the total stockholder return metric. The number of shares that would be issued pursuant to this metric is based on the market price and dividends paid as of the end of each quarterly period assuming the end of that quarterly period was the end of the vesting period. The remaining 100,000 shares of common stock underlying the restricted stock units awarded under the Pay-For-Performance Program are not included during the three and nine months ended September 30, 2013 and 2012, as they did not meet the return on capital performance metric during such periods. | ||||||||||||||
There were no options outstanding to purchase shares of common stock or other rights exercisable for, or convertible into, common stock during the nine months ended September 30, 2013 and 2012. | ||||||||||||||
The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (dollars in thousands, except per share amounts): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator for basic and diluted earnings per share: | ||||||||||||||
Income from continuing operations | $ | 3,228 | $ | 3,001 | $ | 14,429 | $ | 9,228 | ||||||
Less net income attributable to noncontrolling interests | (17 | ) | (6 | ) | (32 | ) | (13 | ) | ||||||
Less earnings allocated to unvested shares | (165 | ) | — | (494 | ) | — | ||||||||
Income from continuing operations available for common stockholders | 3,046 | 2,995 | 13,903 | 9,215 | ||||||||||
Discontinued operations | — | 15,419 | — | 18,171 | ||||||||||
Net income available for common stockholders, basic and diluted | $ | 3,046 | $ | 18,414 | $ | 13,903 | $ | 27,386 | ||||||
Denominator for basic earnings per share: | ||||||||||||||
- weighted average common shares | 15,093 | 14,443 | 14,871 | 14,370 | ||||||||||
- weighted average unvested restricted stock shares | — | 408 | — | 412 | ||||||||||
15,093 | 14,851 | 14,871 | 14,782 | |||||||||||
Effect of diluted securities: | ||||||||||||||
- restricted stock units awarded under Pay-for-Performance program | 100 | 100 | 100 | 100 | ||||||||||
Denominator for diluted earnings per share | ||||||||||||||
- weighted average shares | 15,193 | 14,951 | 14,971 | 14,882 | ||||||||||
Earnings per common share, basic | $ | 0.2 | $ | 1.24 | $ | 0.93 | $ | 1.85 | ||||||
Earnings per common share, diluted | $ | 0.2 | $ | 1.23 | $ | 0.93 | $ | 1.84 | ||||||
Amounts attributable to One Liberty Properties, Inc. common stockholders, net of noncontrolling interests: | ||||||||||||||
Income from continuing operations | $ | 3,211 | $ | 2,995 | $ | 14,397 | $ | 9,215 | ||||||
Income from discontinued operations | — | 15,419 | — | 18,171 | ||||||||||
Net income attributable to One Liberty Properties, Inc. | $ | 3,211 | $ | 18,414 | $ | 14,397 | $ | 27,386 |
Real_Estate_Acquisitions
Real Estate Acquisitions | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Real Estate Acquisitions | ' | |||||||||||
Real Estate Acquisitions | ' | |||||||||||
Note 4 - Real Estate Acquisitions | ||||||||||||
The following chart details the Company’s real estate acquisitions during the nine months ended September 30, 2013 (amounts in thousands): | ||||||||||||
Description of Property | Date Acquired | Contract | Terms of | Third Party | ||||||||
Purchase | Payment | Real Estate | ||||||||||
Price | Acquisition | |||||||||||
Costs (a) | ||||||||||||
Kmart retail store, | ||||||||||||
Clemmons, North Carolina (b) | March 22, 2013 | $ | 4,640 | All cash | $ | 119 | ||||||
Shutterfly flex facility | ||||||||||||
Fort Mill, South Carolina | July 1, 2013 | 15,500 | Cash and $9,300 mortgage (c) | 118 | ||||||||
Texas Land & Cattle restaurant | ||||||||||||
Killeen, Texas | July 30, 2013 | 2,020 | All cash | 43 | ||||||||
Hooters restaurant | ||||||||||||
Concord, North Carolina | August 1, 2013 | 2,469 | All cash | 13 | ||||||||
TRISUN Health Care - assisted living facility | ||||||||||||
Round Rock, Texas | August 6, 2013 | 22,800 | Cash and $15,275 mortgage (d) | 288 | ||||||||
Hooters restaurant | ||||||||||||
Myrtle Beach, South Carolina | September 3, 2013 | 2,635 | All cash | 31 | ||||||||
Joe’s Crab Shack restaurant | ||||||||||||
Ann Arbor, Michigan | September 12, 2013 | 2,980 | All cash | 28 | ||||||||
FedEx Express facility | ||||||||||||
Indianapolis, Indiana | September 13, 2013 | 9,270 | All cash | 31 | ||||||||
Northern Tool & Equipment distribution facility | ||||||||||||
Fort Mill, South Carolina | September 18, 2013 | 39,195 | Cash and $27,300 mortgage (e) | 84 | ||||||||
Other (f) | — | 67 | ||||||||||
Totals | $ | 101,509 | $ | 822 | ||||||||
(a) Included as an expense in the accompanying consolidated statements of income. | ||||||||||||
(b) Owned by a consolidated joint venture in which the Company has a 90% interest. | ||||||||||||
(c) The mortgage bears interest at 4.562% per annum and matures July 1, 2023. | ||||||||||||
(d) The mortgage bears interest at 5.375% per annum and matures August 6, 2023. | ||||||||||||
(e) The mortgage bears interest at 4.875% per annum and matures April 1, 2029. | ||||||||||||
(f) Costs incurred for potential acquisitions and properties purchased in 2012. | ||||||||||||
All the properties purchased by the Company in 2013 are 100% occupied and, except for the Northern Tool property which is jointly leased by two companies under common ownership, are each leased by a single tenant pursuant to a long term net lease. | ||||||||||||
As a result of these acquisitions, the Company recorded intangible lease assets of $11,307,000 and intangible lease liabilities of $1,510,000, representing the value of the origination costs and acquired leases. As of September 30, 2013, the weighted average amortization period for these acquisitions is 13.6 years for the intangible lease assets and 8.0 years for the intangible lease liabilities. The Company assessed the fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 (as defined in Note 12) in the fair value hierarchy. The Company is currently in the process of finalizing the purchase price allocations for these properties; therefore, these allocations are preliminary and subject to change. |
Investment_in_Unconsolidated_J
Investment in Unconsolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2013 | |
Investment in Unconsolidated Joint Ventures | ' |
Investment in Unconsolidated Joint Ventures | ' |
Note 5 - Investment in Unconsolidated Joint Ventures | |
At September 30, 2013 and December 31, 2012, the Company had investments in five and seven unconsolidated joint ventures, respectively, each of which owned and operated one property. The Company’s equity investment in such unconsolidated joint ventures totaled $4,984,000 and $19,485,000, respectively. In addition to the $4,705,000 gain on sale of the two properties in 2013 described below, the Company recorded equity in earnings of $513,000 and $1,015,000 for the nine months ended September 30, 2013 and 2012, respectively, and $122,000 and $268,000 for the three months ended September 30, 2013 and 2012, respectively. | |
In February 2012, the Company entered into a joint venture with an affiliate of Trammell Crow Company pursuant to which the Company contributed a property located in Plano, Texas to the joint venture in exchange for a 90% equity interest therein, and Trammell Crow contributed $1,500,000 in exchange for a 10% equity interest therein which resulted in a $319,000 gain to the Company. In February 2013, Trammell Crow exercised its right to purchase the Company’s 90% equity interest in the unconsolidated joint venture for $13,500,000. The sale was completed on April 16, 2013 and the Company recorded a gain of $1,898,000. | |
In May 2013, a property located in Los Angeles, California and owned by the Company and another entity as tenants-in-common, accounted for as an unconsolidated joint venture, was sold for $25,000,000, of which our share was $12,500,000. The Company recorded a $2,807,000 gain on this sale in the nine months ended September 30, 2013 and incurred its $148,000 share of the related mortgage prepayment penalty. The Company received net proceeds of $4,630,000 from the sale transaction. |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 9 Months Ended |
Sep. 30, 2013 | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | ' |
Note 6 - Allowance for Doubtful Accounts | |
The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its tenants to make required rent payments. If the financial condition of a specific tenant were to deteriorate resulting in an impairment of its ability to make payments, additional allowances may be required. At December 31, 2012, the balance in allowance for doubtful accounts was $132,000, recorded as a reduction to accounts receivable. At September 30, 2013, there was no balance in allowance for doubtful accounts. The Company records bad debt expense as a reduction of rental income. For the three and nine months ended September 30, 2012, the Company recorded bad debt expense of $16,000 and $56,000, respectively, in income from continuing operations and net recoveries of previously recognized bad debt expense of $116,000 and $173,000, respectively, in discontinued operations as a result of collections in the nine months ended September 30, 2012 from one tenant. For the three and nine months ended September 30, 2013, the Company did not incur any bad debt expense. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Discontinued Operations | ' | |||||||
Discontinued Operations | ' | |||||||
Note 7 - Discontinued Operations | ||||||||
The following summarizes the components of income from discontinued operations applicable to five properties sold during 2012 (dollars in thousands): | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2012 | September 30, 2012 | |||||||
Rental income | $ | 507 | $ | 1,600 | ||||
Depreciation and amortization | 38 | 249 | ||||||
Real estate expenses | — | 102 | ||||||
Interest expense | 100 | 332 | ||||||
Total expenses | 138 | 683 | ||||||
Income from operations | 369 | 917 | ||||||
Net gain on sales | 15,050 | 17,254 | ||||||
Income from discontinued operations | $ | 15,419 | $ | 18,171 |
Line_of_Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2013 | |
Line of Credit | ' |
Line of Credit | ' |
Note 8 - Line of Credit | |
The Company has a $75,000,000 revolving credit facility with Manufacturer’s & Trader’s Trust Company, VNB New York Corp., Bank Leumi USA and Israel Discount Bank of New York. This facility matures March 31, 2015 and provides that the Company pay interest at the greater of (i) 90 day LIBOR plus 3% (3.25% at September 30, 2013) and (ii) 4.75% per annum, and there is an unused facility fee of .25% per annum. At September 30, 2013 and November 4, 2013, there were outstanding balances of $23,500,000 and $20,500,000, respectively, under the facility. The Company was in compliance with all covenants at September 30, 2013. |
Common_Stock_Cash_Dividend
Common Stock Cash Dividend | 9 Months Ended |
Sep. 30, 2013 | |
Common Stock Cash Dividend | ' |
Common Stock Cash Dividend | ' |
Note 9 - Common Stock Cash Dividend | |
On September 10, 2013, the Board of Directors declared a quarterly cash dividend of $.35 per share on the Company’s common stock, totaling $5,447,000. The quarterly dividend was paid on October 4, 2013 to stockholders of record on September 25, 2013. |
Shares_Issued_Through_Equity_O
Shares Issued Through Equity Offering Program | 9 Months Ended |
Sep. 30, 2013 | |
Shares Issued Through Equity Offering Program | ' |
Shares Issued Through Equity Offering Program | ' |
Note 10 — Shares Issued Through Equity Offering Program | |
On August 9, 2012, the Company entered into an equity offering sales agreement to sell shares of the Company’s common stock from time to time with an aggregate sales price of up to $50,000,000, through an “at the market” equity offering program. During the nine months ended September 30, 2013, the Company sold 307,727 shares for proceeds of $8,037,000, net of commissions of $81,000, and incurred offering costs of $75,000. Subsequent to September 30, 2013 and through November 4, 2013, the Company sold 10,203 shares for proceeds of $219,000, net of commissions of $2,000. |
Stock_Based_Compensation
Stock Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock Based Compensation | ' | |||||||||||||
Stock Based Compensation | ' | |||||||||||||
Note 11 - Stock Based Compensation | ||||||||||||||
The Company’s 2012 Incentive Plan, approved by the Company’s stockholders in June 2012, permits the Company to grant, among other things, stock options, restricted stock, restricted stock units and performance share awards and any one or more of the foregoing to its employees, officers, directors and consultants. A maximum of 600,000 shares of the Company’s common stock is authorized for issuance pursuant to this Plan, of which 112,650 have been issued and 50 have vested. An aggregate of 557,415 shares of restricted stock and restricted stock units are outstanding under the Company’s 2003 and 2009 equity incentive plans (collectively, the “Prior Plans”) and have not yet vested. No additional awards may be granted under the Prior Plans. | ||||||||||||||
The restricted stock grants are charged to general and administrative expense over the respective vesting periods based on the market value of the common stock on the grant date. Substantially all restricted stock awards made to date provide for vesting upon the fifth anniversary of the grant date and under certain circumstances may vest earlier. For financial statement purposes, the restricted stock is not included in the shares shown as outstanding on the balance sheet until they vest; however dividends are paid on the unvested shares. | ||||||||||||||
On September 14, 2010, the Board of Directors approved a Pay-for-Performance Program under the Company’s 2009 Incentive Plan and awarded 200,000 performance share awards in the form of restricted stock units (the “Units”). The holders of Units are not entitled to dividends or to vote the underlying shares until the Units vest and shares are issued. Accordingly, for financial statement purposes, the shares underlying the Units are not included in the shares shown as outstanding on the balance sheet. If the defined performance criteria are satisfied in full at June 30, 2017, one share of the Company’s common stock will vest and be issued for each Unit outstanding and a pro-rata portion of the Units will vest and be issued if the performance criteria fall between defined ranges. In the event that the performance criteria are not satisfied in whole or in part at June 30, 2017, the unvested Units will be forfeited and no shares of the Company’s common stock will be issued for those Units. No Units were forfeited or vested in the nine months ended September 30, 2013. | ||||||||||||||
As of September 30, 2013 and December 31, 2012, there were no options outstanding under the Company’s equity incentive plans. | ||||||||||||||
The following is a summary of the activity of the equity incentive plans (excluding, except as otherwise noted, the 200,000 Units): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Restricted share grants | — | — | 112,650 | 109,450 | ||||||||||
Average per share grant price | — | — | $ | 21.59 | $ | 16.77 | ||||||||
Deferred compensation to be recognized over vesting period | — | — | $ | 2,432,000 | $ | 1,835,000 | ||||||||
Non-vested shares: | ||||||||||||||
Non-vested beginning of period | 470,015 | 408,510 | 407,460 | 348,385 | ||||||||||
Grants | — | — | 112,650 | 109,450 | ||||||||||
Vested during period | — | — | (50,095 | ) | (49,325 | ) | ||||||||
Forfeitures | — | (1,050 | ) | — | (1,050 | ) | ||||||||
Non-vested end of period | 470,015 | 407,460 | 470,015 | 407,460 | ||||||||||
Average per share value of non-vested shares (based on grant price) | $ | 14.22 | $ | 12.59 | $ | 14.22 | $ | 12.59 | ||||||
Value of shares vested during the period (based on grant price) | $ | — | $ | — | $ | 876,000 | $ | 1,208,000 | ||||||
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows: | ||||||||||||||
Outstanding restricted stock grants | $ | 335,000 | $ | 250,000 | $ | 1,037,000 | $ | 792,000 | ||||||
Outstanding restricted stock units | 31,000 | 73,000 | 95,000 | 117,000 | ||||||||||
Total charge to operations | $ | 366,000 | $ | 323,000 | $ | 1,132,000 | $ | 909,000 | ||||||
As of September 30, 2013, there were approximately $4,580,000 of total compensation costs related to nonvested awards that have not yet been recognized, including $459,000 related to the Pay-for-Performance Program (net of forfeiture and performance assumptions which are re-evaluated quarterly). These compensation costs will be charged to general and administrative expense over the remaining respective vesting periods. The weighted average vesting period is approximately 2.8 years. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
Note 12 - Fair Value Measurements | ||||||||||||||
The Company measures the fair value of financial instruments based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. | ||||||||||||||
The carrying amounts of cash and cash equivalents, escrow, deposits and other assets and receivables, and accrued expenses and other liabilities are not measured at fair value on a recurring basis, but are considered to be recorded at amounts that approximate fair value. | ||||||||||||||
At September 30, 2013, the $279,852,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $3,047,000 assuming a blended market interest rate of 5.0% based on the 9.3 year weighted average remaining term of the mortgages. At December 31, 2012, the $233,170,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $7,199,000 assuming a blended market interest rate of 4.8% based on the 9.2 year weighted average remaining term of the mortgages. | ||||||||||||||
The fair value of the Company’s mortgages payable was estimated using unobservable inputs such as available market information and discounted cash flow analysis based on borrowing rates the Company believes it could obtain with similar terms and maturities. These fair value measurements fall within Level 3 of the fair value hierarchy. | ||||||||||||||
Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. | ||||||||||||||
Financial Instruments Measured at Fair Value | ||||||||||||||
The fair value of the Company’s available-for-sale securities and derivative financial instruments were determined using the following inputs (dollars in thousands): | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Using Fair Value Hierarchy | ||||||||||||||
Carrying and | on a Recurring Basis | |||||||||||||
As of | Fair Value | Level 1 | Level 2 | |||||||||||
Financial assets: | ||||||||||||||
Available-for-sale securities: | September 30, 2013 | $ | 286 | $ | 286 | $ | — | |||||||
Equity securities | December 31, 2012 | 278 | 278 | — | ||||||||||
Derivative financial instruments | September 30, 2013 | 166 | — | 166 | ||||||||||
December 31, 2012 | — | — | — | |||||||||||
Financial liabilities: | ||||||||||||||
Derivative financial instruments | September 30, 2013 | 1,416 | — | 1,416 | ||||||||||
December 31, 2012 | 1,470 | — | 1,470 | |||||||||||
The Company does not currently own any financial instruments that are classified as Level 3. | ||||||||||||||
Available-for-sale securities | ||||||||||||||
At September 30, 2013, the Company’s available-for-sale securities were as follows: (i) a $266,000 investment in BRT Realty Trust and (ii) a $20,000 investment in other equity securities (included in other assets on the balance sheet). The aggregate cost of these securities was $138,000 and unrealized gains on such securities were $148,000. Such unrealized gains were included in accumulated other comprehensive loss on the balance sheet. Fair values are approximated on current market quotes from financial sources that track such securities. | ||||||||||||||
Derivative financial instruments | ||||||||||||||
Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, and implied volatilities. | ||||||||||||||
Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with it use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparty. As of September 30, 2013, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuation is classified in Level 2 of the fair value hierarchy. | ||||||||||||||
As of September 30, 2013, the Company had entered into ten interest rate derivatives related to ten outstanding mortgage loans, all interest rate swaps, with an approximate aggregate $60,509,000 notional amount and a weighted average maturity of 6.6 years. Such interest rate swaps, all of which were designated as cash flow hedges, converted Libor based variable rate mortgages to fixed annual rate mortgages with interest rates ranging from 3.55% to 6.50% (weighted average interest rate of 5.01%). The fair value of the Company’s derivatives designated as hedging instruments in asset and liability positions reflected as other assets or other liabilities on the consolidated balance sheets were $166,000 and $1,416,000, respectively, at September 30, 2013 and $0 and $1,470,000, respectively, at December 31, 2012. | ||||||||||||||
Two of the Company’s unconsolidated joint ventures, in which a wholly owned subsidiary of the Company is a 50% partner, had an interest rate derivative outstanding at September 30, 2013 with a notional amount of $3,818,000. The interest rate derivative, which was entered into in March 2011, has an interest rate of 5.81% and matures in April 2018. | ||||||||||||||
The following table presents the effect of the Company’s derivative financial instruments on the statement of income for the periods presented (dollars in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Consolidated | ||||||||||||||
Amount of (loss) recognized on derivatives in Other comprehensive (loss) | $ | (972 | ) | $ | (251 | ) | $ | (372 | ) | $ | (901 | ) | ||
Amount of (loss) reclassification from Accumulated other comprehensive (loss) into Interest expense | (284 | ) | (133 | ) | (592 | ) | (371 | ) | ||||||
Joint Ventures (Company’s share) | ||||||||||||||
Amount of (loss) gain recognized on derivative in Other comprehensive (loss) | $ | (15 | ) | $ | (25 | ) | $ | 18 | $ | (78 | ) | |||
Amount of (loss) reclassification from Accumulated other comprehensive (loss) into Equity in earnings of unconsolidated joint ventures | (14 | ) | (14 | ) | (42 | ) | (42 | ) | ||||||
No gain or loss was recognized with respect to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Company’s cash flow hedges for the three and nine months ended September 30, 2013 and 2012. During the twelve months ending September 30, 2014, the Company estimates an additional $1,248,000 will be reclassified from other comprehensive income as an increase to interest expense. | ||||||||||||||
As of September 30, 2013, the Company believes it has no significant risk associated with non-performance of the financial institutions which are the counterparties to its derivatives contracts. Additionally, based on the rates in effect as of September 30, 2013, if a counterparty were to default, the Company would receive a net interest benefit. | ||||||||||||||
The derivative agreements in effect at September 30, 2013 provide that if the wholly owned subsidiary of the Company which is a party to the agreement defaults or is capable of being declared in default on any of its indebtedness, then a default can be declared on such subsidiary’s derivative obligation. In addition, the Company is a party to one of the derivative agreements and if the subsidiary defaults on the loan subject to such agreement and if there are swap breakage losses on account of the derivative being terminated early, the Company could be held liable for interest rate swap breakage losses, if any. | ||||||||||||||
As of September 30, 2013, the fair value of the derivatives in a liability position, including accrued interest, and excluding any adjustments for nonperformance risk, was approximately $1,465,000. In the unlikely event that the Company breaches any of the contractual provisions of the derivative contracts, it would be required to settle its obligations thereunder at their termination liability value of $1,465,000. Such amount is included in accrued expenses and other liabilities at September 30, 2013. |
New_Accounting_Pronouncement
New Accounting Pronouncement | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncement | ' |
New Accounting Pronouncement | ' |
Note 13 - New Accounting Pronouncement | |
Effective January 1, 2013, the Company adopted ASU No. 2013-02, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income which the FASB issued in February 2013. The standard requires an entity to present information about significant items reclassified out of accumulated other comprehensive income by component either on the face of the statement where net income is presented or as a separate disclosure in the notes to financial statements. The guidance was effective for calendar year-end public companies beginning in the first quarter of 2013 with application on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or disclosures. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Event | ' |
Subsequent Event | ' |
Note 14 - Subsequent Event | |
Subsequent to September 30, 2013, we entered into a contract to sell two properties located in Michigan for an aggregate purchase price of $5.5 million. There were no other events relative to the Company’s consolidated financial statements that require additional disclosure. |
Basis_of_Preparation_Policies
Basis of Preparation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Preparation | ' |
Principles of Consolidation/Basis of Preparation | ' |
Principles of Consolidation/Basis of Preparation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring accruals) have been included. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries and its investment in five joint ventures in which the Company, as defined, has a controlling interest. OLP and its consolidated subsidiaries are hereinafter referred to as the “Company”. Material intercompany items and transactions have been eliminated in consolidation. | |
Investment in Joint Ventures | ' |
Investment in Joint Ventures | |
The Financial Accounting Standards Board, or FASB, guidance for determining whether an entity is a variable interest entity, or VIE, requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. | |
The Company assesses the accounting treatment for each joint venture investment. This assessment includes a review of each joint venture or limited liability company agreement to determine the rights of each party and whether those rights are protective or participating. The agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where the Company and its partner (i) approve the annual budget, (ii) approve certain expenditures, (iii) prepare or review and approve the joint venture’s tax return before filing, and (iv) approve each lease at each property, the Company does not consolidate the joint venture as the Company considers these to be substantive participation rights that result in shared power over the activities that most significantly impact the performance of the joint venture. | |
With respect to the five consolidated joint ventures in which the Company has between an 85% to 95% interest, the Company has determined that (i) such ventures are not VIE’s and (ii) the Company exercises substantial operating control and accordingly, such ventures are consolidated for financial statement purposes. | |
The Company accounts for its investments in five unconsolidated joint ventures under the equity method of accounting. All investments in these five joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these five joint ventures are VIE’s. In addition, although the Company is the managing member, it does not exercise substantial operating control over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. None of the joint venture debt is recourse to the Company, subject to standard carve-outs. | |
Reclassification | ' |
Reclassification | |
Certain amounts reported in previous consolidated financial statements for the three and nine months ended September 30, 2012 have been reclassified in the accompanying consolidated financial statements to conform to the current period’s presentation, primarily to reclassify the operations of a property that was sold in December 2012 to discontinued operations. In addition, the operations of the Company’s tenant-in-common interest were reclassified for the three and nine months ended September 30, 2012. The reclassification transfers the tenant-in-common interest related amounts recorded in certain line items on the income statement (rental income, depreciation and amortization, real estate expenses, mortgage interest expense and amortization of deferred financing costs) to equity in earnings of unconsolidated joint ventures. This tenant-in-common interest was sold in May 2013. | |
Additionally, the accompanying income statements include the reclassification of state tax expense in the three and nine months ended September 30, 2012 from general and administrative expense to federal excise and state taxes to conform to the current year’s presentation. | |
None of the reclassifications had an effect on net income or stockholders’ equity. |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Common Share | ' | |||||||||||||
Schedule of reconciliation of numerator and denominator of earnings per share calculations | ' | |||||||||||||
The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (dollars in thousands, except per share amounts): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator for basic and diluted earnings per share: | ||||||||||||||
Income from continuing operations | $ | 3,228 | $ | 3,001 | $ | 14,429 | $ | 9,228 | ||||||
Less net income attributable to noncontrolling interests | (17 | ) | (6 | ) | (32 | ) | (13 | ) | ||||||
Less earnings allocated to unvested shares | (165 | ) | — | (494 | ) | — | ||||||||
Income from continuing operations available for common stockholders | 3,046 | 2,995 | 13,903 | 9,215 | ||||||||||
Discontinued operations | — | 15,419 | — | 18,171 | ||||||||||
Net income available for common stockholders, basic and diluted | $ | 3,046 | $ | 18,414 | $ | 13,903 | $ | 27,386 | ||||||
Denominator for basic earnings per share: | ||||||||||||||
- weighted average common shares | 15,093 | 14,443 | 14,871 | 14,370 | ||||||||||
- weighted average unvested restricted stock shares | — | 408 | — | 412 | ||||||||||
15,093 | 14,851 | 14,871 | 14,782 | |||||||||||
Effect of diluted securities: | ||||||||||||||
- restricted stock units awarded under Pay-for-Performance program | 100 | 100 | 100 | 100 | ||||||||||
Denominator for diluted earnings per share | ||||||||||||||
- weighted average shares | 15,193 | 14,951 | 14,971 | 14,882 | ||||||||||
Earnings per common share, basic | $ | 0.2 | $ | 1.24 | $ | 0.93 | $ | 1.85 | ||||||
Earnings per common share, diluted | $ | 0.2 | $ | 1.23 | $ | 0.93 | $ | 1.84 | ||||||
Amounts attributable to One Liberty Properties, Inc. common stockholders, net of noncontrolling interests: | ||||||||||||||
Income from continuing operations | $ | 3,211 | $ | 2,995 | $ | 14,397 | $ | 9,215 | ||||||
Income from discontinued operations | — | 15,419 | — | 18,171 | ||||||||||
Net income attributable to One Liberty Properties, Inc. | $ | 3,211 | $ | 18,414 | $ | 14,397 | $ | 27,386 |
Real_Estate_Acquisitions_Table
Real Estate Acquisitions (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Real Estate Acquisitions | ' | |||||||||||
Schedule of real estate acquisitions | ' | |||||||||||
The following chart details the Company’s real estate acquisitions during the nine months ended September 30, 2013 (amounts in thousands): | ||||||||||||
Description of Property | Date Acquired | Contract | Terms of | Third Party | ||||||||
Purchase | Payment | Real Estate | ||||||||||
Price | Acquisition | |||||||||||
Costs (a) | ||||||||||||
Kmart retail store, | ||||||||||||
Clemmons, North Carolina (b) | March 22, 2013 | $ | 4,640 | All cash | $ | 119 | ||||||
Shutterfly flex facility | ||||||||||||
Fort Mill, South Carolina | July 1, 2013 | 15,500 | Cash and $9,300 mortgage (c) | 118 | ||||||||
Texas Land & Cattle restaurant | ||||||||||||
Killeen, Texas | July 30, 2013 | 2,020 | All cash | 43 | ||||||||
Hooters restaurant | ||||||||||||
Concord, North Carolina | August 1, 2013 | 2,469 | All cash | 13 | ||||||||
TRISUN Health Care - assisted living facility | ||||||||||||
Round Rock, Texas | August 6, 2013 | 22,800 | Cash and $15,275 mortgage (d) | 288 | ||||||||
Hooters restaurant | ||||||||||||
Myrtle Beach, South Carolina | September 3, 2013 | 2,635 | All cash | 31 | ||||||||
Joe’s Crab Shack restaurant | ||||||||||||
Ann Arbor, Michigan | September 12, 2013 | 2,980 | All cash | 28 | ||||||||
FedEx Express facility | ||||||||||||
Indianapolis, Indiana | September 13, 2013 | 9,270 | All cash | 31 | ||||||||
Northern Tool & Equipment distribution facility | ||||||||||||
Fort Mill, South Carolina | September 18, 2013 | 39,195 | Cash and $27,300 mortgage (e) | 84 | ||||||||
Other (f) | — | 67 | ||||||||||
Totals | $ | 101,509 | $ | 822 | ||||||||
(a) Included as an expense in the accompanying consolidated statements of income. | ||||||||||||
(b) Owned by a consolidated joint venture in which the Company has a 90% interest. | ||||||||||||
(c) The mortgage bears interest at 4.562% per annum and matures July 1, 2023. | ||||||||||||
(d) The mortgage bears interest at 5.375% per annum and matures August 6, 2023. | ||||||||||||
(e) The mortgage bears interest at 4.875% per annum and matures April 1, 2029. | ||||||||||||
(f) Costs incurred for potential acquisitions and properties purchased in 2012. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Discontinued Operations | ' | |||||||
Summary of income from discontinued operations applicable to the properties sold | ' | |||||||
The following summarizes the components of income from discontinued operations applicable to five properties sold during 2012 (dollars in thousands): | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, 2012 | September 30, 2012 | |||||||
Rental income | $ | 507 | $ | 1,600 | ||||
Depreciation and amortization | 38 | 249 | ||||||
Real estate expenses | — | 102 | ||||||
Interest expense | 100 | 332 | ||||||
Total expenses | 138 | 683 | ||||||
Income from operations | 369 | 917 | ||||||
Net gain on sales | 15,050 | 17,254 | ||||||
Income from discontinued operations | $ | 15,419 | $ | 18,171 |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock Based Compensation | ' | |||||||||||||
Summary of the activity of the equity incentive plans excluding the 200,000 units | ' | |||||||||||||
The following is a summary of the activity of the equity incentive plans (excluding, except as otherwise noted, the 200,000 Units): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Restricted share grants | — | — | 112,650 | 109,450 | ||||||||||
Average per share grant price | — | — | $ | 21.59 | $ | 16.77 | ||||||||
Deferred compensation to be recognized over vesting period | — | — | $ | 2,432,000 | $ | 1,835,000 | ||||||||
Non-vested shares: | ||||||||||||||
Non-vested beginning of period | 470,015 | 408,510 | 407,460 | 348,385 | ||||||||||
Grants | — | — | 112,650 | 109,450 | ||||||||||
Vested during period | — | — | (50,095 | ) | (49,325 | ) | ||||||||
Forfeitures | — | (1,050 | ) | — | (1,050 | ) | ||||||||
Non-vested end of period | 470,015 | 407,460 | 470,015 | 407,460 | ||||||||||
Average per share value of non-vested shares (based on grant price) | $ | 14.22 | $ | 12.59 | $ | 14.22 | $ | 12.59 | ||||||
Value of shares vested during the period (based on grant price) | $ | — | $ | — | $ | 876,000 | $ | 1,208,000 | ||||||
Schedule of the total charge to operations for all incentive plans, including the 200,000 units | ' | |||||||||||||
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows: | ||||||||||||||
Outstanding restricted stock grants | $ | 335,000 | $ | 250,000 | $ | 1,037,000 | $ | 792,000 | ||||||
Outstanding restricted stock units | 31,000 | 73,000 | 95,000 | 117,000 | ||||||||||
Total charge to operations | $ | 366,000 | $ | 323,000 | $ | 1,132,000 | $ | 909,000 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Schedule of available-for-sale securities and derivative financial instruments measured at fair value | ' | |||||||||||||
The fair value of the Company’s available-for-sale securities and derivative financial instruments were determined using the following inputs (dollars in thousands): | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Using Fair Value Hierarchy | ||||||||||||||
Carrying and | on a Recurring Basis | |||||||||||||
As of | Fair Value | Level 1 | Level 2 | |||||||||||
Financial assets: | ||||||||||||||
Available-for-sale securities: | September 30, 2013 | $ | 286 | $ | 286 | $ | — | |||||||
Equity securities | December 31, 2012 | 278 | 278 | — | ||||||||||
Derivative financial instruments | September 30, 2013 | 166 | — | 166 | ||||||||||
December 31, 2012 | — | — | — | |||||||||||
Financial liabilities: | ||||||||||||||
Derivative financial instruments | September 30, 2013 | 1,416 | — | 1,416 | ||||||||||
December 31, 2012 | 1,470 | — | 1,470 | |||||||||||
Schedule of effect of derivative financial instruments on statement of income | ' | |||||||||||||
The following table presents the effect of the Company’s derivative financial instruments on the statement of income for the periods presented (dollars in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Consolidated | ||||||||||||||
Amount of (loss) recognized on derivatives in Other comprehensive (loss) | $ | (972 | ) | $ | (251 | ) | $ | (372 | ) | $ | (901 | ) | ||
Amount of (loss) reclassification from Accumulated other comprehensive (loss) into Interest expense | (284 | ) | (133 | ) | (592 | ) | (371 | ) | ||||||
Joint Ventures (Company’s share) | ||||||||||||||
Amount of (loss) gain recognized on derivative in Other comprehensive (loss) | $ | (15 | ) | $ | (25 | ) | $ | 18 | $ | (78 | ) | |||
Amount of (loss) reclassification from Accumulated other comprehensive (loss) into Equity in earnings of unconsolidated joint ventures | (14 | ) | (14 | ) | (42 | ) | (42 | ) |
Organization_and_Background_De
Organization and Background (Details) | Sep. 30, 2013 |
item | |
property | |
Organization and Background | ' |
Number of real estate properties | 107 |
Number of states in which properties are located | 29 |
Wholly owned properties | ' |
Organization and Background | ' |
Number of real estate properties | 107 |
Properties owned by consolidated joint ventures | ' |
Organization and Background | ' |
Number of real estate properties | 5 |
Properties owned by unconsolidated joint ventures | ' |
Organization and Background | ' |
Number of real estate properties | 5 |
Basis_of_Preparation_Details
Basis of Preparation (Details) | 9 Months Ended |
Sep. 30, 2013 | |
item | |
Consolidated JV one | ' |
Investment in Joint Ventures | ' |
Number of controlling interest in joint ventures | 5 |
Consolidated JV one | Minimum | ' |
Investment in Joint Ventures | ' |
Ownership interest in consolidated joint venture (as a percent) | 85.00% |
Consolidated JV one | Maximum | ' |
Investment in Joint Ventures | ' |
Ownership interest in consolidated joint venture (as a percent) | 95.00% |
Consolidated JV two | ' |
Investment in Joint Ventures | ' |
Number of other unconsolidated joint ventures | 5 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Common Share | ' | ' | ' | ' |
Number of shares awarded under Pay-for-Performance program included in diluted weighted average number of shares | 100,000 | 100,000 | 100,000 | 100,000 |
Underlying number of shares awarded under Pay-for-Performance program included in calculation of diluted weighted average number of shares | 200,000 | 200,000 | 200,000 | 200,000 |
Number of shares awarded under Pay-for-Performance program not included in diluted weighted average number of shares | 100,000 | 100,000 | 100,000 | 100,000 |
Outstanding options at the end of the period (in shares) | 0 | 0 | 0 | 0 |
Numerator for basic and diluted earnings per share: | ' | ' | ' | ' |
Income from continuing operations | $3,228 | $3,001 | $14,429 | $9,228 |
Less net income attributable to noncontrolling interests | -17 | -6 | -32 | -13 |
Less earnings allocated to unvested shares | -165 | ' | -494 | ' |
Income from continuing operations available for common stockholders | 3,046 | 2,995 | 13,903 | 9,215 |
Discontinued operations | ' | 15,419 | ' | 18,171 |
Net income available for common stockholders, basic | 3,046 | 18,414 | 13,903 | 27,386 |
Net income available for common stockholders, diluted | 3,046 | 18,414 | 13,903 | 27,386 |
Denominator for basic earnings per share: | ' | ' | ' | ' |
Weighted average common shares | 15,093,000 | 14,443,000 | 14,871,000 | 14,370,000 |
Weighted average unvested restricted stock shares | ' | 408,000 | ' | 412,000 |
Denominator for basic earnings per share (in shares) | 15,093,000 | 14,851,000 | 14,871,000 | 14,782,000 |
Effect of diluted securities: | ' | ' | ' | ' |
Restricted stock units awarded under Pay-for-Performance program (in shares) | 100,000 | 100,000 | 100,000 | 100,000 |
Denominator for diluted earnings per share - weighted average shares | 15,193,000 | 14,951,000 | 14,971,000 | 14,882,000 |
Earnings per common share, basic (in dollars per share) | $0.20 | $1.24 | $0.93 | $1.85 |
Earnings per common share, diluted (in dollars per share) | $0.20 | $1.23 | $0.93 | $1.84 |
Amounts attributable to One Liberty Properties, Inc. common stockholders, net of noncontrolling interests: | ' | ' | ' | ' |
Income from continuing operations | 3,211 | 2,995 | 14,397 | 9,215 |
Income from discontinued operations | ' | 15,419 | ' | 18,171 |
Net income attributable to One Liberty Properties, Inc. | $3,211 | $18,414 | $14,397 | $27,386 |
Real_Estate_Acquisitions_Detai
Real Estate Acquisitions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | $101,509,000 | ' |
Third Party Real Estate Acquisition Costs | 544,000 | 93,000 | 822,000 | 259,000 |
Occupancy percentage for properties purchased by the company | ' | ' | 100.00% | ' |
Intangible lease assets | 11,307,000 | ' | 11,307,000 | ' |
Intangible lease liabilities | 1,510,000 | ' | 1,510,000 | ' |
Weighted average amortization period for intangible lease assets | ' | ' | '13 years 7 months 6 days | ' |
Weighted average amortization period for intangible lease liabilities | ' | ' | '8 years | ' |
Kmart retail store, Clemmons, North Carolina | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 4,640,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 119,000 | ' |
Kmart retail store, Clemmons, North Carolina | Consolidated JV | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Ownership interest in consolidated joint venture (as a percent) | 90.00% | ' | 90.00% | ' |
Shutterfly flex facility Fort Mill, South Carolina | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 15,500,000 | ' |
Mortgage incurred | ' | ' | 9,300,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 118,000 | ' |
Effective interest rate (as a percent) | 4.56% | ' | 4.56% | ' |
Texas Land & Cattle restaurant Killeen, Texas | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 2,020,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 43,000 | ' |
Hooters restaurant Concord, North Carolina | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 2,469,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 13,000 | ' |
TRISUN Health Care - assisted living facility Round Rock, Texas | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 22,800,000 | ' |
Mortgage incurred | ' | ' | 15,275,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 288,000 | ' |
Effective interest rate (as a percent) | 5.38% | ' | 5.38% | ' |
Hooters restaurant Myrtle Beach, South Carolina | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 2,635,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 31,000 | ' |
Joe's Crab Shack restaurant Ann Arbor, Michigan | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 2,980,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 28,000 | ' |
FedEx Express facility Indianapolis, Indiana | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 9,270,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 31,000 | ' |
Northern Tool & Equipment distribution facility Fort Mill, South Carolina | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Contract Purchase Price | ' | ' | 39,195,000 | ' |
Mortgage incurred | ' | ' | 27,300,000 | ' |
Third Party Real Estate Acquisition Costs | ' | ' | 84,000 | ' |
Effective interest rate (as a percent) | 4.88% | ' | 4.88% | ' |
Number of tenants in the property | ' | ' | 2 | ' |
Other | ' | ' | ' | ' |
Real Estate Acquisitions | ' | ' | ' | ' |
Third Party Real Estate Acquisition Costs | ' | ' | $67,000 | ' |
Investment_in_Unconsolidated_J1
Investment in Unconsolidated Joint Ventures (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Apr. 16, 2013 | Feb. 28, 2013 | Feb. 29, 2012 | Sep. 30, 2013 | |
property | property | item | Unconsolidated JV in Plano, Texas | Unconsolidated JV in Plano, Texas | Unconsolidated JV in Plano, Texas | Unconsolidated JV in Los Angeles, California | |||
item | property | ||||||||
Investment in Unconsolidated Joint Ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of unconsolidated joint ventures | ' | ' | 5 | ' | 7 | ' | ' | ' | ' |
Number of properties owned and operated by each unconsolidated joint venture | 1 | ' | 1 | ' | 1 | ' | ' | ' | ' |
Investment in unconsolidated joint ventures | $4,984,000 | ' | $4,984,000 | ' | $19,485,000 | ' | ' | ' | ' |
Gain on sale of properties | ' | ' | 4,705,000 | ' | ' | ' | ' | ' | ' |
Number of properties sold | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Equity in earnings of unconsolidated joint ventures | 122,000 | 268,000 | 513,000 | 1,015,000 | ' | ' | ' | ' | ' |
Investment in Unconsolidated Joint Ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in variable interest entity | ' | ' | ' | ' | ' | ' | 90.00% | 90.00% | ' |
Ownership percentage in variable interest entity of other party | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' |
Amount contributed by other party | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' |
Gain from contribution of property to joint venture | ' | ' | ' | 319,000 | ' | ' | ' | 319,000 | ' |
Gain on disposition of real estate - unconsolidated joint venture | ' | ' | 2,807,000 | ' | ' | ' | ' | ' | 2,807,000 |
Proceeds before cost of sale from disposition of unconsolidated joint venture interest | ' | ' | ' | ' | ' | ' | 13,500,000 | ' | ' |
Net proceeds from disposition of unconsolidated joint venture property | ' | ' | ' | ' | ' | ' | ' | ' | 4,630,000 |
Gain on sale of equity interest in the joint venture | ' | ' | ' | ' | ' | 1,898,000 | ' | ' | ' |
Sale price of real estate sold in unconsolidated joint venture | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 |
Entity share in sale price of real estate sold in unconsolidated joint venture | ' | ' | ' | ' | ' | ' | ' | ' | 12,500,000 |
Mortgage prepayment penalty | ' | ' | ' | ' | ' | ' | ' | ' | $148,000 |
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
item | ||||
Allowance for Doubtful Accounts | ' | ' | ' | ' |
Balance in allowance for doubtful accounts | ' | ' | $0 | $132,000 |
Bad debt expense | 16,000 | 56,000 | ' | ' |
Number of tenants from whom the doubtful collections were received | ' | 1 | ' | ' |
Discontinued operations | ' | ' | ' | ' |
Allowance for Doubtful Accounts | ' | ' | ' | ' |
Net recoveries of bad debt | $116,000 | $173,000 | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 |
item | |||
Discontinued Operations | ' | ' | ' |
Number of properties sold | ' | ' | 5 |
Discontinued Operations | ' | ' | ' |
Rental income | $507 | $1,600 | ' |
Depreciation and amortization | 38 | 249 | ' |
Real estate expenses | ' | 102 | ' |
Interest expense | 100 | 332 | ' |
Total expenses | 138 | 683 | ' |
Income from operations | 369 | 917 | ' |
Net gain on sales | 15,050 | 17,254 | ' |
Income from discontinued operations | $15,419 | $18,171 | ' |
Line_of_Credit_Details
Line of Credit (Details) (Facility, USD $) | 9 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Line of Credit | ' | ' |
Borrowing capacity | $75,000,000 | ' |
Maximum effective interest rate (as a percent) | 4.75% | ' |
Unused facility fee (as a percent) | 0.25% | ' |
Amount outstanding under the facility | $23,500,000 | $20,500,000 |
LIBOR | ' | ' |
Line of Credit | ' | ' |
Basis of interest rate | '90 day LIBOR | ' |
Spread on variable interest rate (as a percent) | 3.00% | ' |
Interest rate at end of period (as a percent) | 3.25% | ' |
Common_Stock_Cash_Dividend_Det
Common Stock Cash Dividend (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 10, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Common Stock Cash Dividend | ' | ' | ' |
Quarterly cash dividend declared (in dollars per share) | $0.35 | ' | ' |
Quarterly cash dividend declared | $5,447,000 | $16,195,000 | $19,924,000 |
Shares_Issued_Through_Equity_O1
Shares Issued Through Equity Offering Program (Details) (Equity Offering Program, USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended |
Aug. 09, 2012 | Nov. 04, 2013 | Sep. 30, 2013 | |
Equity Offering Program | ' | ' | ' |
Shares issued through equity offering program | ' | ' | ' |
Maximum aggregate sales price of shares to be sold under an Equity Offering Sales Agreement (in dollars) | $50,000,000 | ' | ' |
Number of shares sold | ' | 10,203 | 307,727 |
Proceeds from sale of shares, net of commission and before offering costs | ' | 219,000 | 8,037,000 |
Payment of commissions on sale of shares | ' | 2,000 | 81,000 |
Payment of offering costs on sale of shares | ' | ' | $75,000 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 14, 2010 | Sep. 30, 2013 | |
Restricted stock grants | Restricted stock grants | Restricted stock grants | Restricted stock grants | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | 2012 Incentive Plan | Prior Incentive Plans | Pay-for-performance program | Pay-for-performance program | Pay-for-performance program | |||||
Restricted stock units | Restricted stock units | ||||||||||||||||
Stock Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' |
Shares issued pursuant to plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 112,650 | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of share instruments vested since plan's inception | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' |
Number of shares to be vested and issued for each unit outstanding on satisfying performance criteria at June 30, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 |
Number of shares to be issued for each unit outstanding on not satisfying performance criteria at June 30, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Outstanding options at the end of the period (in shares) | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of the activity of the incentive plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted share grants | ' | ' | ' | ' | ' | ' | 112,650 | 109,450 | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' |
Average per share grant price (in dollars per share) | ' | ' | ' | ' | ' | ' | $21.59 | $16.77 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation to be recognized over vesting period | ' | ' | ' | ' | ' | ' | $2,432,000 | $1,835,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested beginning of period (in shares) | ' | ' | ' | ' | 470,015 | 408,510 | 407,460 | 348,385 | ' | ' | ' | ' | ' | 557,415 | ' | ' | ' |
Grants (in shares) | ' | ' | ' | ' | ' | ' | 112,650 | 109,450 | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' |
Vested during period (in shares) | ' | ' | ' | ' | ' | ' | -50,095 | -49,325 | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Forfeitures (in shares) | ' | ' | ' | ' | ' | -1,050 | ' | -1,050 | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Non-vested end of period (in shares) | ' | ' | ' | ' | 470,015 | 407,460 | 470,015 | 407,460 | ' | ' | ' | ' | ' | 557,415 | ' | ' | ' |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average per share value of non-vested shares (based on grant price) (in dollars per share) | ' | ' | ' | ' | $14.22 | $12.59 | $14.22 | $12.59 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of shares vested during the period (based on grant price) | ' | ' | ' | ' | ' | ' | 876,000 | 1,208,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation charged to operations | 366,000 | 323,000 | 1,132,000 | 909,000 | 335,000 | 250,000 | 1,037,000 | 792,000 | 31,000 | 73,000 | 95,000 | 117,000 | ' | ' | ' | ' | ' |
Compensation costs related to nonvested awards that have not yet been recognized | $4,580,000 | ' | $4,580,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $459,000 | ' | ' |
Approximate weighted average vesting period | ' | ' | '2 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Available-for-sale securities | ' | ' |
Aggregate cost of available-for-sale securities | $138,000 | ' |
Unrealized gain on available-for-sale securities | 148,000 | ' |
Recurring | Carrying and fair Value | ' | ' |
Available-for-sale securities: | ' | ' |
Equity securities | 286,000 | 278,000 |
Derivative financial instruments | 166,000 | ' |
Financial liabilities: | ' | ' |
Derivative financial instruments | 1,416,000 | 1,470,000 |
Recurring | Level 1 | ' | ' |
Available-for-sale securities: | ' | ' |
Equity securities | 286,000 | 278,000 |
Recurring | Level 2 | ' | ' |
Available-for-sale securities: | ' | ' |
Derivative financial instruments | 166,000 | ' |
Financial liabilities: | ' | ' |
Derivative financial instruments | 1,416,000 | 1,470,000 |
BRT Realty Trust | ' | ' |
Available-for-sale securities: | ' | ' |
Equity securities | 266,000 | ' |
Other equity securities | ' | ' |
Available-for-sale securities: | ' | ' |
Equity securities | 20,000 | ' |
Mortgages payable | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Estimated fair value of mortgages payable | 279,852,000 | 233,170,000 |
Excess of fair value over carrying value | $3,047,000 | $7,199,000 |
Blended or estimated market interest rate (as a percent) | 5.00% | 4.80% |
Weighted average remaining term of the mortgages | '9 years 3 months 18 days | '9 years 2 months 12 days |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Interest rate derivatives, Cash flow hedge, USD $) | 0 Months Ended |
Sep. 30, 2013 | |
item | |
Interest rate derivatives | Cash flow hedge | ' |
Fair Value Measurements | ' |
Number of interest rate derivatives held | 10 |
Number of mortgage loans outstanding | 10 |
Notional amount of interest rate derivatives designated as cash flow hedge | $60,509,000 |
Weighted average maturity | '6 years 7 months 6 days |
Fixed annual interest rate lower end of range (as a percent) | 3.55% |
Fixed annual interest rate higher end of range (as a percent) | 6.50% |
Weighted average annual interest rate (as a percent) | 5.01% |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (Derivatives designated as hedging instruments, Interest rate swap, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Derivatives designated as hedging instruments | Interest rate swap | ' | ' |
Fair Value Measurements | ' | ' |
Fair value of derivatives assets | $166,000 | ' |
Fair value of derivatives liabilities | $1,416,000 | $1,470,000 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative financial instruments related to unconsolidated joint venture | ' | ' | ' | ' |
Number of derivative agreements for which the Parent Company could be liable in event of default by a subsidiary | ' | ' | 1 | ' |
Cash flow hedges | ' | ' | ' | ' |
Reclassification of gain (loss) | ' | ' | ' | ' |
Gain or loss recognized with respect to cash flow hedges' ineffectiveness | $0 | $0 | $0 | $0 |
Interest rate derivatives | Cash flow hedges | ' | ' | ' | ' |
Fair Value Measurements | ' | ' | ' | ' |
Amount of (loss) gain recognized on derivatives in Other comprehensive (loss) | -972,000 | -251,000 | -372,000 | -901,000 |
Amount of (loss) reclassification from Accumulated other comprehensive (loss) into interest expense/earnings | -284,000 | -133,000 | -592,000 | -371,000 |
Reclassification of gain (loss) | ' | ' | ' | ' |
Additional amount to be reclassified to interest expense during the next twelve months | ' | ' | 1,248,000 | ' |
Credit risk related contingent feature | ' | ' | ' | ' |
Fair value of derivative in a liability position, including accrued interest and excluding adjustments for nonperformance risk | 1,465,000 | ' | 1,465,000 | ' |
Termination value of derivative agreement | 1,465,000 | ' | 1,465,000 | ' |
Interest rate derivatives | Cash flow hedges | Unconsolidated joint ventures | ' | ' | ' | ' |
Fair Value Measurements | ' | ' | ' | ' |
Number of unconsolidated joint ventures of the entity with interest rate derivatives outstanding | ' | ' | 2 | ' |
Percentage of ownership in unconsolidated joint venture | 50.00% | ' | 50.00% | ' |
Notional Amount | 3,818,000 | ' | 3,818,000 | ' |
Fixed Interest Rate (as a percent) | 5.81% | ' | 5.81% | ' |
Amount of (loss) gain recognized on derivatives in Other comprehensive (loss) | -15,000 | -25,000 | 18,000 | -78,000 |
Amount of (loss) reclassification from Accumulated other comprehensive (loss) into interest expense/earnings | ($14,000) | ($14,000) | ($42,000) | ($42,000) |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent event, Real estate property located in Michigan, USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
property | |
Subsequent event | Real estate property located in Michigan | ' |
Subsequent event | ' |
Number of properties under contract of sale | 2 |
Aggregate purchase price for properties under contract of sale | $5.50 |