Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | ONE LIBERTY PROPERTIES INC | |
Entity Central Index Key | 712770 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,412,382 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Real estate investments, at cost | ||
Land | $184,846,000 | $165,153,000 |
Buildings and improvements | 440,443,000 | 416,272,000 |
Total real estate investments, at cost | 625,289,000 | 581,425,000 |
Less accumulated depreciation | 78,091,000 | 76,575,000 |
Real estate investments, net | 547,198,000 | 504,850,000 |
Property held-for-sale | 10,176,000 | |
Investment in unconsolidated joint ventures | 2,486,000 | 4,907,000 |
Cash and cash equivalents | 23,153,000 | 20,344,000 |
Restricted cash | 1,335,000 | 1,607,000 |
Unbilled rent receivable (including $120 related to property held-for-sale in 2014) | 12,870,000 | 12,815,000 |
Unamortized intangible lease assets, net | 29,104,000 | 27,387,000 |
Escrow, deposits and other assets and receivables | 4,561,000 | 4,310,000 |
Unamortized deferred financing costs, net | 3,981,000 | 4,043,000 |
Total assets | 624,688,000 | 590,439,000 |
Liabilities: | ||
Mortgages payable | 304,808,000 | 292,049,000 |
Line of credit | 28,250,000 | 13,250,000 |
Dividends payable | 6,381,000 | 6,322,000 |
Accrued expenses and other liabilities | 12,026,000 | 12,451,000 |
Unamortized intangible lease liabilities, net | 15,028,000 | 10,463,000 |
Total liabilities | 366,493,000 | 334,535,000 |
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; 15,822 and 15,728 shares issued and outstanding | 15,822,000 | 15,728,000 |
Paid-in capital | 220,935,000 | 219,867,000 |
Accumulated other comprehensive loss | -3,999,000 | -3,195,000 |
Accumulated undistributed net income | 23,352,000 | 21,876,000 |
Total One Liberty Properties, Inc. stockholders' equity | 256,110,000 | 254,276,000 |
Non-controlling interests in consolidated joint ventures | 2,085,000 | 1,628,000 |
Total equity | 258,195,000 | 255,904,000 |
Total liabilities and equity | $624,688,000 | $590,439,000 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 15,822 | 15,728 |
Common stock, shares outstanding | 15,822 | 15,728 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Rental income, net | $13,894,000 | $13,813,000 |
Tenant reimbursements | 782,000 | 589,000 |
Lease termination fee | 650,000 | |
Total revenues | 15,326,000 | 14,402,000 |
Operating expenses: | ||
Depreciation and amortization | 3,734,000 | 3,577,000 |
General and administrative (including $507 and $708, respectively, to related parties) | 2,392,000 | 2,211,000 |
Federal excise and state taxes | 74,000 | 62,000 |
Real estate expenses (including $223 and $213,respectively, to related parties) | 1,334,000 | 1,098,000 |
Leasehold rent | 77,000 | 77,000 |
Real estate acquisition costs | 248,000 | 40,000 |
Total operating expenses | 7,859,000 | 7,065,000 |
Operating income | 7,467,000 | 7,337,000 |
Other income and expenses: | ||
Equity in earnings of unconsolidated joint ventures | 147,000 | 133,000 |
Other income | 3,000 | 8,000 |
Purchase price fair value adjustment | -960,000 | |
Gain on sale of real estate, net | 5,392,000 | |
Prepayment costs on debt | -568,000 | |
Interest: | ||
Expense | -3,739,000 | -3,953,000 |
Amortization and write-off of deferred financing costs | -455,000 | -238,000 |
Income from continuing operations | 9,207,000 | 3,287,000 |
Income from discontinued operations | 13,000 | |
Net income | 9,207,000 | 3,300,000 |
Net income attributable to non-controlling interests | -1,351,000 | -27,000 |
Net income attributable to One Liberty Properties, Inc. | $7,856,000 | $3,273,000 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 15,776 | 15,356 |
Diluted (in shares) | 15,876 | 15,456 |
Per common share attributable to common stockholders - basic: | $0.48 | $0.20 |
Per common share attributable to common stockholders - diluted: | $0.48 | $0.20 |
Cash distributions declared per share of common stock | $0.39 | $0.37 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF INCOME | ||
General and administrative, related parties | $507 | $708 |
Real estate expenses, related party | $223 | $213 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $9,207 | $3,300 |
Other comprehensive loss | ||
Net unrealized gain on available-for-sale securities | 3 | 5 |
Net unrealized loss on derivative instruments | -734 | -718 |
One Liberty Property's share of joint venture net unrealized loss on derivative instruments | -48 | -3 |
Other comprehensive loss | -779 | -716 |
Comprehensive income | 8,428 | 2,584 |
Comprehensive income attributable to non-controlling interests | -1,351 | -27 |
Unrealized gain (loss) on derivative instruments attributable to non-controlling interests | 25 | -10 |
Comprehensive income attributable to One Liberty Properties, Inc. | $7,102 | $2,547 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Undistributed Net Income | Non-Controlling Interests in Joint Ventures | Total |
Balances at Dec. 31, 2013 | $15,221,000 | $210,324,000 | ($490,000) | $23,877,000 | $1,158,000 | $250,090,000 |
Distributions - common stock | ||||||
Cash - $0.39 and $1.50 per share for the three months ended March 31, 2015 and for the year ended December 31, 2014, respectively | -24,117,000 | -24,117,000 | ||||
Shares issued through equity offering - net | 179,000 | 3,589,000 | 3,768,000 | |||
Restricted stock vesting | 101,000 | -101,000 | ||||
Shares issued through dividend reinvestment plan | 227,000 | 4,222,000 | 4,449,000 | |||
Contributions from non-controlling interests | 639,000 | 639,000 | ||||
Distributions to non-controlling interests | -228,000 | -228,000 | ||||
Compensation expense - restricted stock | 1,833,000 | 1,833,000 | ||||
Net income | 22,116,000 | 94,000 | 22,210,000 | |||
Other comprehensive loss (gain) | -2,705,000 | -35,000 | -2,740,000 | |||
Balances at Dec. 31, 2014 | 15,728,000 | 219,867,000 | -3,195,000 | 21,876,000 | 1,628,000 | 255,904,000 |
Distributions - common stock | ||||||
Cash - $0.39 and $1.50 per share for the three months ended March 31, 2015 and for the year ended December 31, 2014, respectively | -6,380,000 | -6,380,000 | ||||
Restricted stock vesting | 71,000 | -71,000 | ||||
Shares issued through dividend reinvestment plan | 23,000 | 562,000 | 585,000 | |||
Contributions from non-controlling interests | 663,000 | 663,000 | ||||
Distributions to non-controlling interests | -1,582,000 | -1,582,000 | ||||
Compensation expense - restricted stock | 577,000 | 577,000 | ||||
Net income | 7,856,000 | 1,351,000 | 9,207,000 | |||
Other comprehensive loss (gain) | -804,000 | 25,000 | -779,000 | |||
Balances at Mar. 31, 2015 | $15,822,000 | $220,935,000 | ($3,999,000) | $23,352,000 | $2,085,000 | $258,195,000 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||
Distributions - common stock, Cash per share (in dollars per share) | $0.39 | $0.37 | $1.50 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $9,207,000 | $3,300,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Purchase price fair value adjustment | 960,000 | |
Gain on sales of real estate | -5,392,000 | |
Prepayment costs on debt | 568,000 | |
Increase in rental income from straight-lining of rent | -175,000 | -336,000 |
Increase in rental income from amortization of intangibles relating to leases | -127,000 | -56,000 |
Amortization of restricted stock expense | 577,000 | 472,000 |
Equity in earnings of unconsolidated joint ventures | -147,000 | -133,000 |
Distributions of earnings from unconsolidated joint ventures | 212,000 | 113,000 |
Depreciation and amortization | 3,734,000 | 3,577,000 |
Amortization and write-off of financing costs | 455,000 | 240,000 |
Payment of leasing commissions | -550,000 | -3,000 |
Changes in assets and liabilities: | ||
(Increase) decrease in escrow, deposits, other assets and receivables | -84,000 | 1,099,000 |
Decrease in accrued expenses and other liabilities | -983,000 | -1,028,000 |
Net cash provided by operating activities | 6,335,000 | 7,245,000 |
Cash flows from investing activities: | ||
Purchase of real estate | -31,413,000 | -5,109,000 |
Improvements to real estate | -355,000 | -38,000 |
Net proceeds from sale of real estate | 16,025,000 | 5,177,000 |
Purchase of partner's interest in unconsolidated joint venture | -6,300,000 | |
Additional investment in unconsolidated joint venture | -3,664,000 | |
Distributions of return of capital from unconsolidated joint ventures | 575,000 | 7,000 |
Net cash (used in) provided by investing activities | -25,132,000 | 37,000 |
Cash flows from financing activities: | ||
Scheduled amortization payments of mortgages payable | -1,875,000 | -1,874,000 |
Repayment of mortgages payable | -12,168,000 | -19,003,000 |
Prepayment costs on debt | -568,000 | |
Proceeds from mortgage financings | 28,268,000 | 27,735,000 |
Proceeds from sale of common stock, net | 644,000 | |
Proceeds from bank line of credit | 29,900,000 | 3,500,000 |
Repayment on bank line of credit | -14,900,000 | -13,900,000 |
Issuance of shares through dividend reinvestment plan | 585,000 | 1,294,000 |
Payment of financing costs | -397,000 | -260,000 |
Capital contribution from non-controlling interest | 663,000 | |
Distributions to non-controlling interests | -1,582,000 | -75,000 |
Cash distributions to common stockholders | -6,320,000 | -5,806,000 |
Net cash provided by (used in) financing activities | 21,606,000 | -7,745,000 |
Net increase (decrease) in cash and cash equivalents | 2,809,000 | -463,000 |
Cash and cash equivalents at beginning of year | 20,344,000 | 16,631,000 |
Cash and cash equivalents at end of year | 23,153,000 | 16,168,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest expense | 3,783,000 | 4,027,000 |
Cash paid during the period for Federal excise tax | 300,000 | 64,000 |
Supplemental schedule of non-cash investing and financing activities: | ||
Mortgage debt extinguished upon conveyance of property to mortgagee by deed -in -lieu of foreclosure | 1,466,000 | |
Consolidation of real estate investments | 2,633,000 | |
Purchase accounting allocations - intangible lease assets | 2,518,000 | 408,000 |
Purchase accounting allocations - intangible lease liabilities | 4,813,000 | 371,000 |
Restricted cash for tenant improvements and other reserve, net | ($272,000) |
Organization_and_Background
Organization and Background | 3 Months Ended |
Mar. 31, 2015 | |
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, health and fitness and other properties, a substantial portion of which are subject to long-term net leases. As of | |
March 31, 2015, OLP owns 116 properties, including seven properties owned by consolidated joint ventures and four properties owned by unconsolidated joint ventures. The 116 properties are located in 30 states. | |
Summary_Accounting_Policies
Summary Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Summary Accounting Policies | |
Summary Accounting Policies | |
Note 2 — Summary Accounting Policies | |
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 months ended March 31, 2015 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 OLP’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
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, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. 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 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 to pay capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where the Company and its partner, among other things, (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 a 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. | |
The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in these 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 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. | |
Variable Interest Entities | |
The Financial Accounting Standards Board, or FASB, provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE’s economic performance and (ii) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | |
Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. Leases may contain certain protective rights such as the right of sale and the receipt of certain escrow deposits. In situations where the Company does not have the power over tenant activities that most significantly impact the performance of the property, the Company would not consolidate tenant operations. | |
Properties Held for Sale | |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held-for-sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Additionally, the guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The Company early adopted the guidance effective January 1, 2014 for disposals (or classifications as held-for-sale) that have not been reported in financial statements previously issued. It did not apply to the two properties sold in February 2014 because these properties were previously classified as properties held-for-sale as of December 31, 2013 and will continue to be accounted for as discontinued operations for the periods presented. It is expected that most of the Company’s future dispositions will not meet the criteria for being treated as a discontinued operation. | |
Real estate investments are classified as held-for-sale when management has determined that it has met the applicable criteria. Real estate investments which are held-for-sale are not depreciated. | |
Tenant Reimbursements | |
Tenant reimbursements represent contractually obligated reimbursements from tenants for recoverable real estate taxes and operating expenses and are recognized when earned. | |
Reclassifications | |
Certain amounts previously reported in the consolidated financial statements have been reclassified in the accompanying consolidated financial statements to conform to the current period’s presentation; primarily to break out tenant reimbursements of $589,000 that had been included in rental income, net, on the consolidated statements of income for the three months ended March 31, 2014. | |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 each year by the weighted average number of shares of common stock outstanding during each year. Net income is also allocated to the unvested restricted stock outstanding during each year, 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 are excluded from the basic earnings per share calculation, as these units are not participating securities (see Note 14). | ||||||||
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 months ended March 31, 2015 and 2014, the diluted weighted average number of shares of common stock 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 months ended March 31, 2015 and 2014, 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 three months ended March 31, 2015 and 2014. | ||||||||
The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator for basic and diluted earnings per share: | ||||||||
Income from continuing operations | $ | 9,207 | $ | 3,287 | ||||
Less net income attributable to non-controlling interests | (1,351 | ) | (27 | ) | ||||
Less earnings allocated to unvested restricted stock (a) | (261 | ) | (178 | ) | ||||
Income from continuing operations available for common stockholders | 7,595 | 3,082 | ||||||
Discontinued operations | — | 13 | ||||||
Net income available for common stockholders, basic and diluted | $ | 7,595 | $ | 3,095 | ||||
Denominator for basic earnings per share: | ||||||||
- weighted average common shares | 15,776 | 15,356 | ||||||
Effect of diluted securities: | ||||||||
- restricted stock units awarded under Pay-for-Performance program | 100 | 100 | ||||||
Denominator for diluted earnings per share | ||||||||
- weighted average shares | 15,876 | 15,456 | ||||||
Earnings per common share, basic | $ | 0.48 | $ | 0.2 | ||||
Earnings per common share, diluted | $ | 0.48 | $ | 0.2 | ||||
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests: | ||||||||
Income from continuing operations | $ | 7,856 | $ | 3,260 | ||||
Income from discontinued operations | — | 13 | ||||||
Net income attributable to One Liberty Properties, Inc. | $ | 7,856 | $ | 3,273 | ||||
(a) | Represents an allocation to unvested restricted stock, which as participating securities are entitled to receive dividends. | |||||||
Real_Estate_Acquisitions
Real Estate Acquisitions | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Real Estate Acquisitions | ||||||||||||||||||||
Real Estate Acquisitions | ||||||||||||||||||||
Note 4 - Real Estate Acquisitions | ||||||||||||||||||||
The following chart details the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands): | ||||||||||||||||||||
Description of Property | Date Acquired | Contract | Terms of Payment | Third Party Real | ||||||||||||||||
Purchase | Estate Acquisition | |||||||||||||||||||
Price | Costs (a) | |||||||||||||||||||
Marston Park Plaza retail stores, | February 25, 2015 | $ | 17,485 | Cash and $11,853 mortgage (c) | $ | 184 | ||||||||||||||
Lakewood, Colorado (b) | ||||||||||||||||||||
Interline Brands distribution facility, | March 18, 2015 | 4,400 | Cash and $2,640 mortgage (d) | 44 | ||||||||||||||||
Louisville, Kentucky | ||||||||||||||||||||
Land — The Meadows Apartments, Lakemoor, Illinois | March 24, 2015 | 9,300 | All cash | — | (e) | |||||||||||||||
Joint venture interest- Shopko retail store, | March 31, 2015 | 6,300 | All cash (f) | — | ||||||||||||||||
Lincoln, Nebraska (f) | ||||||||||||||||||||
Other costs (g) | — | 20 | ||||||||||||||||||
Totals | $ | 37,485 | $ | 248 | ||||||||||||||||
(a) | Included as an expense in the accompanying consolidated statements of income. | |||||||||||||||||||
(b) | Owned by a joint venture in which the Company has a 90% interest. The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase. | |||||||||||||||||||
(c) | The mortgage debt obtained in connection with the purchase bears interest at 4.12% per annum and matures February 2025. | |||||||||||||||||||
(d) | The mortgage debt obtained in connection with the purchase bears interest at 3.88% per annum and matures February 2021. | |||||||||||||||||||
(e) | Transaction costs aggregating $228 incurred with this asset acquisition were capitalized. | |||||||||||||||||||
(f) | The Company purchased its unconsolidated joint venture partner’s 50% interest for $6,300. The payment was comprised of (i) $2,636 paid directly to the partner and (ii) $3,664, substantially all of which was used to pay off the partner’s 50% share of the underlying joint venture mortgage. | |||||||||||||||||||
(g) | Costs incurred for transactions that were not consummated. | |||||||||||||||||||
The following chart provides the preliminary allocation of the purchase price for the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands): | ||||||||||||||||||||
Building | Intangible Lease | |||||||||||||||||||
Description of Property | Land | Building | Improvements | Asset | Liability | Total | ||||||||||||||
Marston Park Plaza retail stores, Lakewood, Colorado | $ | 6,005 | $ | 10,109 | $ | 700 | $ | 1,493 | $ | (822 | ) | $ | 17,485 | |||||||
Interline Brands distribution facility, Louisville, Kentucky | 578 | 3,622 | 105 | 95 | — | 4,400 | ||||||||||||||
Land — The Meadows Apartments, Lakemoor, Illinois (a) | 9,528 | — | — | — | — | 9,528 | ||||||||||||||
Shopko retail store, | 4,009 | 11,040 | 574 | 930 | (3,960 | ) | 12,593 | |||||||||||||
Lincoln, Nebraska (b) | ||||||||||||||||||||
Subtotals | 20,120 | 24,771 | 1,379 | 2,518 | (4,782 | ) | 44,006 | |||||||||||||
Other (c) | 12 | 19 | — | — | (31 | ) | — | |||||||||||||
Totals | $ | 20,132 | $ | 24,790 | $ | 1,379 | $ | 2,518 | $ | (4,813 | ) | $ | 44,006 | |||||||
(a) | Includes capitalized transaction costs of $228 incurred with this asset acquisition. | |||||||||||||||||||
(b) | Fair value of the assets previously owned by an unconsolidated joint venture of the Company. The Company owns 100% of this property as a result of its purchase of its partner’s 50% interest on March 31, 2015. | |||||||||||||||||||
(c) | Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014. | |||||||||||||||||||
With the exception of the Lakewood, Colorado property, the properties purchased by the Company in 2015 are each net leased and occupied by a single tenant pursuant to leases that expire between 2021 through 2045. The Lakewood, Colorado property has 29 tenant spaces and is 94.5% occupied with leases expiring between 2015 and 2032. | ||||||||||||||||||||
As a result of the Company’s purchase on March 31, 2015 of its partner’s 50% interest in an unconsolidated joint venture that owns a property in Lincoln, Nebraska, it obtained a controlling financial interest. In accordance with GAAP, the Company had presented the investee in accordance with the equity method for the periods prior to gaining control and ceased equity method of accounting and consolidated the investment at March 31, 2015; the date which 100% control was obtained. In consolidating the investment, the Company recorded a purchase price fair value adjustment of $960,000 on the consolidated statements of income, representing the difference between the book value of its preexisting equity investment on the March 31, 2015 purchase date and the fair value of the investment. | ||||||||||||||||||||
As a result of the 2015 acquisitions, the Company recorded intangible lease assets of $2,518,000 and intangible lease liabilities of $4,782,000, representing the value of the origination costs and acquired leases. As of March 31, 2015, the weighted average amortization period for these acquisitions is 7.0 years for the intangible lease assets and 6.7 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 15) in the fair value hierarchy. The Company is currently in the process of finalizing the purchase price allocations for the properties acquired during the three months ended March 31, 2015; therefore the allocations are preliminary and subject to change. | ||||||||||||||||||||
Sale_and_Disposal_of_Propertie
Sale and Disposal of Properties and Discontinued Operations | 3 Months Ended |
Mar. 31, 2015 | |
Sale and Disposal of Properties and Discontinued Operations | |
Sale and Disposal of Properties and Discontinued Operations | |
Note 5 — Sale and Disposal of Properties and Discontinued Operations | |
On January 13, 2015, a consolidated joint venture of the Company sold a property located in Cherry Hill, New Jersey for approximately $16,025,000, net of closing costs. The sale resulted in a gain of $5,392,000, recorded as Gain on sale of real estate, net, for the three months ended March 31, 2015. In connection with the sale, the Company paid off the $7,376,000 mortgage balance on this property and incurred a $472,000 swap termination fee (included in Prepayment costs on debt) and a $249,000 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs). The non-controlling interest’s share of income from the transaction is $1,320,000. | |
On January 6, 2015, the Company’s property located in Morrow, Georgia was acquired by the mortgagee through a foreclosure proceeding. | |
On February 3, 2014, the Company sold two properties located in Michigan for a total sales price of $5,177,000, net of closing costs. At December 31, 2013, the Company recorded a $61,700 impairment charge representing the loss on the sale of these properties. Income from discontinued operations applicable to these properties for the three months ended March 31, 2014 totaled $13,000 which was comprised of rental income of $141,000 less real estate expenses of $17,000 and mortgage interest of $111,000. | |
Variable_Interest_Entities_Con
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures Disclosure | ||||||||||
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures | ||||||||||
Note 6 — Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures | ||||||||||
Unconsolidated Variable Interest Entities | ||||||||||
In June 2014, the Company purchased land for $6,510,000 in Sandy Springs, Georgia improved with a 196 unit apartment complex and in March 2015, the Company purchased land for $9,300,000 in Lakemoor, Illinois improved with a 496 unit apartment complex. With each purchase, the Company simultaneously entered into a long-term triple net ground lease with the owner/operator of each complex. | ||||||||||
The Company determined that it has a variable interest through its ground leases and the owner/operators are VIEs because their equity investment at risk is not sufficient to finance its activities without additional subordinated financial support. Simultaneously with the closing of each acquisition, the owner/operator obtained a mortgage from a third party ($16,230,000 for Sandy Springs and $43,824,000 for Lakemoor) which, together with the Company’s purchase of the land, provided substantially all of the aggregate funds to acquire the complex. The Company provided its land as collateral for the respective owner/ operator’s mortgage loans; accordingly each land position is subordinated to the applicable mortgage. | ||||||||||
The Company further determined that for each acquisition it is not the primary beneficiary because the Company does not have the power to direct the activities that most significantly impact the owner/operator’s economic performance such as management, operational budgets and other rights, including leasing of the units and therefore, does not consolidate the VIEs for financial statement purposes. Accordingly, the Company accounts for its investments as land and the revenues from the ground leases as Rental income, net. | ||||||||||
The following is a summary of the Company’s variable interests in identified VIEs, in which it is not the primary beneficiary, and the aggregate carrying amount and maximum exposure to loss as of March 31, 2015 (amounts in thousands): | ||||||||||
Property | Type of Exposure | Carrying | Maximum | |||||||
Amount | Exposure to | |||||||||
Loss | ||||||||||
River Crossing Apartments, | Land | $ | 6,528 | $ | 6,528 | |||||
Sandy Springs, Georgia | ||||||||||
Unbilled rent receivable | 281 | 281 | ||||||||
The Meadows Apartments, | Land | 9,528 | 9,528 | |||||||
Lakemoor, Illinois | ||||||||||
Total | $ | 16,337 | $ | 16,337 | ||||||
The Company accounts for its investments as land and the revenues from the ground leases as Rental income, net, which amounted to $252,000 for the three months ended March 31, 2015. There was no such revenue in the three months ended March 31, 2014. | ||||||||||
Pursuant to the terms of the ground lease for the property in Sandy Springs, Georgia, the owner/operator is obligated to make certain unit renovations as and when units become vacant. A cash reserve with a balance of $1,335,000 at March 31, 2015 is held on behalf of the owner/operator to cover renovation work and other reserve requirements and is classified as Restricted cash on the consolidated balance sheet. | ||||||||||
Consolidated Variable Interest Entity | ||||||||||
In June 2014, the Company entered into a joint venture, in which the Company has a 95% equity interest, and acquired a property located in Joppa, Maryland. The Company also made a senior preferred equity investment in the joint venture. The Company determined that this joint venture is a VIE as the Company’s voting rights are not proportional to its economic interests and substantially all of the joint venture’s activities are conducted by the Company. The Company further determined that it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact the joint venture’s performance including management, approval of expenditures, and the obligation to absorb the losses or rights to receive benefits from the VIE. Accordingly, the Company consolidates the operations of this joint venture for financial statement purposes. At March 31, 2015, the carrying amounts and classification in the Company’s consolidated balance sheets were assets (none of which are restricted) consisting of land of $3,815,000, building and improvements (net of depreciation) of $8,016,000, cash of $451,000, prepaid expenses and receivables of $43,000, accrued expenses and other liabilities of $181,000 and non-controlling interest in joint venture of $323,000. The joint venture’s creditors do not have recourse to the assets of the Company other than those held by the joint venture. | ||||||||||
Non-VIE Consolidated Joint Ventures | ||||||||||
With respect to six 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. | ||||||||||
MCB Real Estate, LLC and its affiliates are the Company’s joint venture partner in five consolidated joint ventures (including the Joppa, Maryland joint venture described above). At March 31, 2015, the Company has aggregate equity investments of approximately $19,000,000 in such ventures. | ||||||||||
Distributions by Consolidated Joint Ventures | ||||||||||
The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro rata to the equity interest each partner has in the applicable venture. | ||||||||||
Investment_in_Unconsolidated_J
Investment in Unconsolidated Joint Ventures | 3 Months Ended |
Mar. 31, 2015 | |
Investment in Unconsolidated Joint Ventures | |
Investment in Unconsolidated Joint Ventures | |
Note 7 - Investment in Unconsolidated Joint Ventures | |
The Company has investments in four and five unconsolidated joint ventures at March 31, 2015 and December 31, 2014, respectively, each of which owned and operated one property. The Company’s equity investment in such unconsolidated joint ventures at such dates totaled $2,486,000 and $4,907,000, respectively. The Company recorded equity in earnings of $147,000 and $133,000 for the three months ended March 30, 2015 and 2014, respectively. | |
On March 31, 2015, the Company purchased its partner’s 50% interest in one of these unconsolidated joint ventures for $6,300,000 (see note 4). | |
Lease_Termination_Fee_Income
Lease Termination Fee Income | 3 Months Ended |
Mar. 31, 2015 | |
Lease Termination Fee Income | |
Lease Termination Fee Income | |
Note 8 — Lease Termination Fee Income | |
In March 2015, the Company received a $650,000 lease termination fee from an industrial tenant in a lease buy-out transaction. In connection with the receipt of this fee, the Company wrote-off $226,000 as an offset to rental income, representing the entire balance of the unbilled rent receivable related to the sole tenant at this property. The Company re-leased this property simultaneously with the termination of the lease. | |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 3 Months Ended |
Mar. 31, 2015 | |
Allowance for Doubtful Accounts | |
Allowance for Doubtful Accounts | |
Note 9 - 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 March 31, 2015 and December 31, 2014, there was no balance in allowance for doubtful accounts. | |
The Company records bad debt expense as a reduction of rental income. For the three months ended March 31, 2015 and 2014, the Company did not incur any bad debt expense. | |
Line_of_Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2015 | |
Line of Credit | |
Line of Credit | |
Note 10 - Line of Credit | |
On December 31, 2014, the Company entered into an amendment to its $75,000,000 credit facility with Manufacturers & Traders Trust Company, VNB New York, LLC, Bank Leumi USA and Israel Discount Bank of New York, which, among other things, extended the facility’s maturity to December 31, 2018 from March 31, 2015, decreased the minimum required average bank deposit balances to $3 million and eliminated the 4.75% interest rate floor. Under the amendment, the interest rate equals the one month LIBOR rate plus an applicable margin which ranges from 175 basis points to 300 basis points depending on the ratio of the Company’s total debt to total value, as determined pursuant to the facility. An unused facility fee of .25% per annum applies to the facility. The interest rate on the facility in the first quarter of 2015 was approximately 1.92%. Prior to the amendment, the interest rate was 4.75% per annum. In connection with the amendment, the Company incurred a $562,500 commitment fee which will be amortized over the remaining term of the facility. At March 31, 2015 and May 4, 2015, there were outstanding balances of $28,250,000 and $24,250,000, respectively, under the facility. The Company was in compliance with all covenants at March 31, 2015. | |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions | |
Related Party Transactions | |
Note 11 — Related Party Transactions | |
The Company agreed to pay quarterly fees of $633,750 in 2015 (including overhead expenses of $48,900 and property management fees of $223,100) pursuant to the compensation and services agreement, as amended, with Majestic Property Management Corp., a company wholly-owned by the Company’s vice-chairman. For the three months ended March 31, 2014, such fees were $825,000 (including overhead expenses of $46,600 and property management fees of $212,500). The 2015 amount reflects an adjustment to the compensation and services agreement that was effective July 1, 2014. | |
For 2015 and 2014, the Company agreed to pay quarterly fees of $65,625 and $62,500, respectively, to the Company’s chairman and $26,250 and $25,000, respectively, to the Company’s vice-chairman. | |
The chairman and vice-chairman fees and the fees paid under the compensation and services agreement are included in general and administrative expense on the consolidated statements of income, except for the property management fees which are included in real estate expenses on the consolidated statements of income. | |
During the three months ended March 31, 2015 and 2014, a portion of the Company’s property insurance ($57,000 and $50,000, respectively) was obtained in conjunction with Gould Investors L.P., a related party. This expense, which represents the Company’s proportionate share of property insurance premiums paid by Gould Investors, is included in real estate expenses on the consolidated statements of income. | |
During the three months ended March 31, 2015 and 2014, the Company paid an aggregate of $105,000 and $12,000, respectively, to its joint venture partners or their affiliates for property management and acquisition fees, which were included on the consolidated statements of income. | |
Common_Stock_Cash_Dividend
Common Stock Cash Dividend | 3 Months Ended |
Mar. 31, 2015 | |
Common Stock Cash Dividend | |
Common Stock Cash Dividend | |
Note 12 - Common Stock Cash Dividend | |
On March 10, 2015, the Board of Directors declared a quarterly cash dividend of $.39 per share on the Company’s common stock, totaling $6,381,000. The quarterly dividend was paid on April 7, 2015 to stockholders of record on March 27, 2015. | |
Shares_Issued_Through_Equity_O
Shares Issued Through Equity Offering Program | 3 Months Ended |
Mar. 31, 2015 | |
Shares Issued Through Equity Offering Program | |
Shares Issued Through Equity Offering Program | |
Note 13 - Shares Issued through Equity Offering Program | |
On March 20, 2014, the Company entered into an amended and restated 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 approximately $38,360,000, through an “at the market” equity offering program. The Company has not sold any shares in 2015. | |
Stock_Based_Compensation
Stock Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Stock Based Compensation | ||||||||
Stock Based Compensation | ||||||||
Note 14 - Stock Based Compensation | ||||||||
A maximum of 600,000 shares of the Company’s common stock is authorized for issuance pursuant to the Company’s 2012 Incentive Plan, of which 359,000 shares of restricted stock are outstanding as of March 31, 2015. For accounting 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. An aggregate of 381,000 shares of restricted stock and restricted stock units outstanding under the Company’s 2009 equity incentive plan have not yet vested and no additional awards may be granted under this plan. | ||||||||
Pursuant to the Pay-for-Performance Program, there are 200,000 performance share awards in the form of restricted stock units (the “Units”) outstanding under the Company’s 2009 Incentive Plan. 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 accounting purposes, the shares underlying the Units are not included in the shares shown as outstanding on the balance sheet. No Units were forfeited or vested in the three months ended March 31, 2015. | ||||||||
As of March 31, 2015 and December 31, 2014, 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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Restricted share grants | 129,975 | 118,850 | ||||||
Per share grant price | $ | 24.6 | $ | 20.54 | ||||
Deferred compensation to be recognized over vesting period | $ | 3,197,000 | $ | 2,441,000 | ||||
Number of non-vested shares: | ||||||||
Non-vested beginning of period | 480,995 | 470,015 | ||||||
Grants | 129,975 | 118,850 | ||||||
Vested during period | (70,685 | ) | (101,300 | ) | ||||
Forfeitures | — | (6,520 | ) | |||||
Non-vested end of period | 540,285 | 481,045 | ||||||
Average per share value of non-vested shares (based on grant price) | $ | 17.12 | $ | 14.55 | ||||
Value of shares vested during the period (based on grant price) | $ | 586,000 | $ | 621,000 | ||||
The total charge to operations for all incentive plans, including the 200,000 units, is as follows: | ||||||||
Outstanding restricted stock grants | $ | 548,000 | $ | 443,000 | ||||
Outstanding restricted stock units | 29,000 | 29,000 | ||||||
Total charge to operations | $ | 577,000 | $ | 472,000 | ||||
As of March 31, 2015, there were approximately $7,476,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $267,000 related to the Units (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 | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Measurements | |||||||||||||
Fair Value Measurements | |||||||||||||
Note 15 - 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, restricted cash, 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 March 31, 2015, the $316,839,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $12,031,000 assuming a blended market interest rate of 4.16% based on the 9.1 year weighted average remaining term of the mortgages. At December 31, 2014, the $300,541,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $8,492,000 assuming a blended market interest rate of 4.5% based on the 9.1 year weighted average remaining term of the mortgages. | |||||||||||||
At March 31, 2015 and December 31, 2014, the $28,250,000 and $13,250,000, respectively, carrying amount of the Company’s line of credit approximates its fair value. | |||||||||||||
The fair value of the Company’s mortgages payable and line of credit are 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. | |||||||||||||
Fair Value on a Recurring Basis | |||||||||||||
The fair value of the Company’s available-for-sale securities and derivative financial instruments was determined using the following inputs (amounts in thousands): | |||||||||||||
Carrying and | Fair Value Measurements | ||||||||||||
on a Recurring Basis | |||||||||||||
As of | Fair Value | Level 1 | Level 2 | ||||||||||
Financial assets: | |||||||||||||
Available-for-sale securities: | |||||||||||||
Equity securities | March 31, 2015 | $ | 32 | $ | 32 | $ | — | ||||||
December 31, 2014 | 29 | 29 | — | ||||||||||
Derivative financial instruments: | |||||||||||||
Interest rate swaps | March 31, 2015 | $ | — | $ | — | $ | — | ||||||
December 31, 2014 | 27 | — | 27 | ||||||||||
Financial liabilities: | |||||||||||||
Derivative financial instruments: | |||||||||||||
Interest rate swaps | March 31, 2015 | $ | 3,851 | $ | — | $ | 3,851 | ||||||
December 31, 2014 | 3,139 | — | 3,139 | ||||||||||
The Company does not own any financial instruments that are classified as Level 3. | |||||||||||||
Available-for-sale securities | |||||||||||||
At March 31, 2015, the Company’s available-for-sale securities included a $32,400 investment in equity securities (included in other assets on the consolidated balance sheet). The aggregate cost of these securities was $5,300 and at March 31, 2015, the unrealized gain was $27,100. Such unrealized gains are included in accumulated other comprehensive loss on the consolidated balance sheet. Fair values are approximated based on current market quotes from financial sources that track such securities. | |||||||||||||
Derivative financial instruments | |||||||||||||
The Company’s objective in using interest rate swaps is to add stability to interest expense and to manage its exposure to interest rate movements. The Company does not use derivatives for trading or speculative purposes. | |||||||||||||
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 the Company and its counterparty. As of March 31, 2015, 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 determined that its derivative valuation is classified in Level 2 of the fair value hierarchy. | |||||||||||||
As of March 31, 2015, the Company had entered into 18 interest rate derivatives, all of which were interest rate swaps, related to 18 outstanding mortgage loans with an aggregate $80,704,000 notional amount and mature between 2016 and 2024 (weighted average maturity of 6.9 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 5.75% and a weighted average interest rate of 4.67% at March 31, 2015). 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 $0 and $3,851,000, respectively, at March 31, 2015, and $27,000 and $3,139,000, respectively, at December 31, 2014. | |||||||||||||
Three of the Company’s unconsolidated joint ventures, in which wholly-owned subsidiaries of the Company are 50% partners, had two interest rate derivatives outstanding at March 31, 2015 with an aggregate $11,166,000 notional amount. These interest rate swaps, which were designated as cash flow hedges, have interest rates of 3.49% and 5.81% and mature between April 2018 and March 2022. | |||||||||||||
The following table presents the effect of the Company’s derivative financial instruments on the consolidated statements of income for the periods presented (amounts in thousands): | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
One Liberty Properties and Consolidated Subsidiaries | |||||||||||||
Amount of loss recognized on derivatives in Other comprehensive loss | $ | (1,623 | ) | $ | (1,106 | ) | |||||||
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense | (889 | ) | (388 | ) | |||||||||
Unconsolidated Joint Ventures (Company’s share) | |||||||||||||
Amount of loss recognized on derivative in Other comprehensive loss | (71 | ) | (7 | ) | |||||||||
Amount of loss reclassification from accumulated other comprehensive loss into Equity in earnings of unconsolidated joint ventures | (22 | ) | (14 | ) | |||||||||
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 months ended March 31, 2015 and 2014. During the three months ended March 31, 2015, the Company terminated one of its interest rate swaps, in connection with the sale of its Cherry Hill, New Jersey property, and accelerated the reclassification of amounts in other comprehensive loss to earnings as a result of the hedged forecasted transactions being terminated. The accelerated amount was a loss of $472,000 and is included in Prepayment costs on debt on the Company’s consolidated statements of income. During the twelve months ending March 31, 2016, the Company estimates an additional $1,526,000 will be reclassified from other comprehensive income (loss) as an increase to interest expense. | |||||||||||||
The derivative agreements in effect at March 31, 2015 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 there is a default by the subsidiary on the loan subject to the derivative agreement to which the Company is a party and if there are swap breakage losses on account of the derivative being terminated early, then the Company could be held liable for such swap breakage losses, if any. | |||||||||||||
As of March 31, 2015, the fair value of the derivatives in a liability position, including accrued interest, and excluding any adjustments for nonperformance risk, was approximately $4,209,000. 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 $4,209,000. This termination liability value, net of $358,000 adjustments for nonperformance risk, or $3,851,000, is included in accrued expenses and other liabilities on the consolidated balance sheets at March 31, 2015. | |||||||||||||
New_Accounting_Pronouncement
New Accounting Pronouncement | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncement | |
New Accounting Pronouncements | |
Note 16 - New Accounting Pronouncements | |
In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The Company has not elected early adoption and is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs, which amends the balance sheet presentation for debt issuance costs. Under the amended guidance, a company will present unamortized debt issuance costs as a direct deduction from the carrying amount of that debt liability. The guidance is to be applied on a retrospective basis, and is effective for annual reporting periods beginning after December 15, 2015, with early adoption being permitted. The Company is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which simplifies income statement presentation by eliminating extraordinary items from US GAAP. The ASU retains current presentation and disclosure requirements for an event or transaction that is of an unusual nature or of a type that indicates infrequency of occurrence. Transactions that meet both criteria would now also follow such presentation and disclosure requirements. The ASU is effective in annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted; however, adoption must occur at the beginning of an annual period. An entity can elect to apply the guidance prospectively or retrospectively. The Company had elected early adoption for the year ended December 31, 2014, and its adoption did not have any impact on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), which provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company has elected early adoption for the year ending December 31, 2015, and its adoption is not expected to have any impact on its consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. This update is effective for interim and annual reporting periods beginning after December 15, 2017 and early adoption is not permitted. The new guidance can be applied either retrospectively to each prior reporting period presented, or as a cumulative-effect adjustment as of the date of adoption. The Company is currently in the process of evaluating the impact, if any, the adoption of this ASU will have on its consolidated financial statements. | |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events | |
Subsequent Events | |
Note 17 - Subsequent Events | |
Subsequent events have been evaluated and there are no events relative to the Company’s consolidated financial statements that require additional disclosure. | |
Summary_Accounting_Policies_Po
Summary Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Summary Accounting Policies | |
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 months ended March 31, 2015 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 OLP’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
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, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. 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 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 to pay capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where the Company and its partner, among other things, (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 a 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. | |
The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in these 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 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. | |
Variable Interest Entities | Variable Interest Entities |
The Financial Accounting Standards Board, or FASB, provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE’s economic performance and (ii) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | |
Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. Leases may contain certain protective rights such as the right of sale and the receipt of certain escrow deposits. In situations where the Company does not have the power over tenant activities that most significantly impact the performance of the property, the Company would not consolidate tenant operations. | |
Properties Held for Sale | Properties Held for Sale |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held-for-sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Additionally, the guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The Company early adopted the guidance effective January 1, 2014 for disposals (or classifications as held-for-sale) that have not been reported in financial statements previously issued. It did not apply to the two properties sold in February 2014 because these properties were previously classified as properties held-for-sale as of December 31, 2013 and will continue to be accounted for as discontinued operations for the periods presented. It is expected that most of the Company’s future dispositions will not meet the criteria for being treated as a discontinued operation. | |
Real estate investments are classified as held-for-sale when management has determined that it has met the applicable criteria. Real estate investments which are held-for-sale are not depreciated. | |
Tenant Reimbursements | Tenant Reimbursements |
Tenant reimbursements represent contractually obligated reimbursements from tenants for recoverable real estate taxes and operating expenses and are recognized when earned. | |
Reclassifications | Reclassifications |
Certain amounts previously reported in the consolidated financial statements have been reclassified in the accompanying consolidated financial statements to conform to the current period’s presentation; primarily to break out tenant reimbursements of $589,000 that had been included in rental income, net, on the consolidated statements of income for the three months ended March 31, 2014. | |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 (amounts in thousands, except per share amounts): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator for basic and diluted earnings per share: | ||||||||
Income from continuing operations | $ | 9,207 | $ | 3,287 | ||||
Less net income attributable to non-controlling interests | (1,351 | ) | (27 | ) | ||||
Less earnings allocated to unvested restricted stock (a) | (261 | ) | (178 | ) | ||||
Income from continuing operations available for common stockholders | 7,595 | 3,082 | ||||||
Discontinued operations | — | 13 | ||||||
Net income available for common stockholders, basic and diluted | $ | 7,595 | $ | 3,095 | ||||
Denominator for basic earnings per share: | ||||||||
- weighted average common shares | 15,776 | 15,356 | ||||||
Effect of diluted securities: | ||||||||
- restricted stock units awarded under Pay-for-Performance program | 100 | 100 | ||||||
Denominator for diluted earnings per share | ||||||||
- weighted average shares | 15,876 | 15,456 | ||||||
Earnings per common share, basic | $ | 0.48 | $ | 0.2 | ||||
Earnings per common share, diluted | $ | 0.48 | $ | 0.2 | ||||
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests: | ||||||||
Income from continuing operations | $ | 7,856 | $ | 3,260 | ||||
Income from discontinued operations | — | 13 | ||||||
Net income attributable to One Liberty Properties, Inc. | $ | 7,856 | $ | 3,273 | ||||
(a) | Represents an allocation to unvested restricted stock, which as participating securities are entitled to receive dividends. | |||||||
Real_Estate_Acquisitions_and_C
Real Estate Acquisitions and Contingent Liability (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Real Estate Acquisitions | ||||||||||||||||||||
Schedule of acquisitions of real estate and interest in joint venture | The following chart details the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands): | |||||||||||||||||||
Description of Property | Date Acquired | Contract | Terms of Payment | Third Party Real | ||||||||||||||||
Purchase | Estate Acquisition | |||||||||||||||||||
Price | Costs (a) | |||||||||||||||||||
Marston Park Plaza retail stores, | February 25, 2015 | $ | 17,485 | Cash and $11,853 mortgage (c) | $ | 184 | ||||||||||||||
Lakewood, Colorado (b) | ||||||||||||||||||||
Interline Brands distribution facility, | March 18, 2015 | 4,400 | Cash and $2,640 mortgage (d) | 44 | ||||||||||||||||
Louisville, Kentucky | ||||||||||||||||||||
Land — The Meadows Apartments, Lakemoor, Illinois | March 24, 2015 | 9,300 | All cash | — | (e) | |||||||||||||||
Joint venture interest- Shopko retail store, | March 31, 2015 | 6,300 | All cash (f) | — | ||||||||||||||||
Lincoln, Nebraska (f) | ||||||||||||||||||||
Other costs (g) | — | 20 | ||||||||||||||||||
Totals | $ | 37,485 | $ | 248 | ||||||||||||||||
(a) | Included as an expense in the accompanying consolidated statements of income. | |||||||||||||||||||
(b) | Owned by a joint venture in which the Company has a 90% interest. The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase. | |||||||||||||||||||
(c) | The mortgage debt obtained in connection with the purchase bears interest at 4.12% per annum and matures February 2025. | |||||||||||||||||||
(d) | The mortgage debt obtained in connection with the purchase bears interest at 3.88% per annum and matures February 2021. | |||||||||||||||||||
(e) | Transaction costs aggregating $228 incurred with this asset acquisition were capitalized. | |||||||||||||||||||
(f) | The Company purchased its unconsolidated joint venture partner’s 50% interest for $6,300. The payment was comprised of (i) $2,636 paid directly to the partner and (ii) $3,664, substantially all of which was used to pay off the partner’s 50% share of the underlying joint venture mortgage. | |||||||||||||||||||
(g) | Costs incurred for transactions that were not consummated. | |||||||||||||||||||
Schedule of allocation of purchase price for the company's acquisitions of real estate and an interest in joint venture | The following chart provides the preliminary allocation of the purchase price for the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands): | |||||||||||||||||||
Building | Intangible Lease | |||||||||||||||||||
Description of Property | Land | Building | Improvements | Asset | Liability | Total | ||||||||||||||
Marston Park Plaza retail stores, Lakewood, Colorado | $ | 6,005 | $ | 10,109 | $ | 700 | $ | 1,493 | $ | (822 | ) | $ | 17,485 | |||||||
Interline Brands distribution facility, Louisville, Kentucky | 578 | 3,622 | 105 | 95 | — | 4,400 | ||||||||||||||
Land — The Meadows Apartments, Lakemoor, Illinois (a) | 9,528 | — | — | — | — | 9,528 | ||||||||||||||
Shopko retail store, | 4,009 | 11,040 | 574 | 930 | (3,960 | ) | 12,593 | |||||||||||||
Lincoln, Nebraska (b) | ||||||||||||||||||||
Subtotals | 20,120 | 24,771 | 1,379 | 2,518 | (4,782 | ) | 44,006 | |||||||||||||
Other (c) | 12 | 19 | — | — | (31 | ) | — | |||||||||||||
Totals | $ | 20,132 | $ | 24,790 | $ | 1,379 | $ | 2,518 | $ | (4,813 | ) | $ | 44,006 | |||||||
(a) | Includes capitalized transaction costs of $228 incurred with this asset acquisition. | |||||||||||||||||||
(b) | Fair value of the assets previously owned by an unconsolidated joint venture of the Company. The Company owns 100% of this property as a result of its purchase of its partner’s 50% interest on March 31, 2015. | |||||||||||||||||||
(c) | Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014. | |||||||||||||||||||
Variable_Interest_Entities_Con1
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures Disclosure | ||||||||||
Summary of our variable interests in identified VIEs, which are not primary beneficiary, and the aggregate carrying amount and maximum exposure to loss | The following is a summary of the Company’s variable interests in identified VIEs, in which it is not the primary beneficiary, and the aggregate carrying amount and maximum exposure to loss as of March 31, 2015 (amounts in thousands): | |||||||||
Property | Type of Exposure | Carrying | Maximum | |||||||
Amount | Exposure to | |||||||||
Loss | ||||||||||
River Crossing Apartments, | Land | $ | 6,528 | $ | 6,528 | |||||
Sandy Springs, Georgia | ||||||||||
Unbilled rent receivable | 281 | 281 | ||||||||
The Meadows Apartments, | Land | 9,528 | 9,528 | |||||||
Lakemoor, Illinois | ||||||||||
Total | $ | 16,337 | $ | 16,337 | ||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Restricted share grants | 129,975 | 118,850 | ||||||
Per share grant price | $ | 24.6 | $ | 20.54 | ||||
Deferred compensation to be recognized over vesting period | $ | 3,197,000 | $ | 2,441,000 | ||||
Number of non-vested shares: | ||||||||
Non-vested beginning of period | 480,995 | 470,015 | ||||||
Grants | 129,975 | 118,850 | ||||||
Vested during period | (70,685 | ) | (101,300 | ) | ||||
Forfeitures | — | (6,520 | ) | |||||
Non-vested end of period | 540,285 | 481,045 | ||||||
Average per share value of non-vested shares (based on grant price) | $ | 17.12 | $ | 14.55 | ||||
Value of shares vested during the period (based on grant price) | $ | 586,000 | $ | 621,000 | ||||
The total charge to operations for all incentive plans, including the 200,000 units, is as follows: | ||||||||
Outstanding restricted stock grants | $ | 548,000 | $ | 443,000 | ||||
Outstanding restricted stock units | 29,000 | 29,000 | ||||||
Total charge to operations | $ | 577,000 | $ | 472,000 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
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 was determined using the following inputs (amounts in thousands): | ||||||||||||
Carrying and | Fair Value Measurements | ||||||||||||
on a Recurring Basis | |||||||||||||
As of | Fair Value | Level 1 | Level 2 | ||||||||||
Financial assets: | |||||||||||||
Available-for-sale securities: | |||||||||||||
Equity securities | March 31, 2015 | $ | 32 | $ | 32 | $ | — | ||||||
December 31, 2014 | 29 | 29 | — | ||||||||||
Derivative financial instruments: | |||||||||||||
Interest rate swaps | March 31, 2015 | $ | — | $ | — | $ | — | ||||||
December 31, 2014 | 27 | — | 27 | ||||||||||
Financial liabilities: | |||||||||||||
Derivative financial instruments: | |||||||||||||
Interest rate swaps | March 31, 2015 | $ | 3,851 | $ | — | $ | 3,851 | ||||||
December 31, 2014 | 3,139 | — | 3,139 | ||||||||||
Schedule of effect of derivative financial instruments on statements of income | The following table presents the effect of the Company’s derivative financial instruments on the consolidated statements of income for the periods presented (amounts in thousands): | ||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
One Liberty Properties and Consolidated Subsidiaries | |||||||||||||
Amount of loss recognized on derivatives in Other comprehensive loss | $ | (1,623 | ) | $ | (1,106 | ) | |||||||
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense | (889 | ) | (388 | ) | |||||||||
Unconsolidated Joint Ventures (Company’s share) | |||||||||||||
Amount of loss recognized on derivative in Other comprehensive loss | (71 | ) | (7 | ) | |||||||||
Amount of loss reclassification from accumulated other comprehensive loss into Equity in earnings of unconsolidated joint ventures | (22 | ) | (14 | ) | |||||||||
Organization_and_Background_De
Organization and Background (Details) | Mar. 31, 2015 |
state | |
Organization and Background | |
Number of real estate properties | 116 |
Number of states in which properties are located | 30 |
Properties owned by consolidated joint ventures | |
Organization and Background | |
Number of real estate properties | 7 |
Properties owned by unconsolidated joint ventures | |
Organization and Background | |
Number of real estate properties | 4 |
Summary_Accounting_Policies_De
Summary Accounting Policies (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
property | |||
Properties Held for Sale | |||
Number of properties sold, considered for reclassification | 2 | ||
Reclassification | |||
Tenant reimbursements | $782,000 | $589,000 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
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 | |||
Underlying number of shares awarded under Pay-for-Performance program included in calculation of diluted weighted average number of shares | 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 | |||
Outstanding options at the end of the period (in shares) | 0 | 0 | 0 | ||
Numerator for basic and diluted earnings per share: | |||||
Income from continuing operations | $9,207 | $3,287 | |||
Net income attributable to non-controlling interests | -1,351 | -27 | |||
Less earnings allocated to unvested restricted stock | -261 | [1] | -178 | [1] | |
Income from continuing operations available for common stockholders | 7,595 | 3,082 | |||
Discontinued operations | 13 | ||||
Net income available for common stockholders, basic | 7,595 | 3,095 | |||
Net income available for common stockholders, diluted | 7,595 | 3,095 | |||
Denominator for basic earnings per share: | |||||
Weighted average common shares | 15,776,000 | 15,356,000 | |||
Effect of diluted securities: | |||||
Restricted stock units awarded under Pay-for-Performance program (in shares) | 100,000 | 100,000 | |||
Denominator for diluted earnings per share - weighted average shares | 15,876,000 | 15,456,000 | |||
Earnings per common share, basic (in dollars per share) | $0.48 | $0.20 | |||
Earnings per common share, diluted (in dollars per share) | $0.48 | $0.20 | |||
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests: | |||||
Income from continuing operations | 7,856 | 3,260 | |||
Income from discontinued operations | 13 | ||||
Net income attributable to One Liberty Properties, Inc. | $7,856 | $3,273 | |||
[1] | Represents an allocation to unvested restricted stock, which as participating securities are entitled to receive dividends. |
Real_Estate_Acquisitions_Detai
Real Estate Acquisitions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | |||
tenant | |||||||
Real Estate Acquisitions | |||||||
Contract Purchase Price | $3,664,000 | ||||||
Third Party Real Estate Acquisition Costs | 248,000 | 40,000 | |||||
Contributions from non-controlling interests | 663,000 | 639,000 | |||||
Payment to purchase of partner's interest | 6,300,000 | ||||||
Purchase price fair value adjustment | 960,000 | ||||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 20,132,000 | 20,132,000 | |||||
Building | 24,790,000 | 24,790,000 | |||||
Building Improvements | 1,379,000 | 1,379,000 | |||||
Intangible Lease Asset | 2,518,000 | 2,518,000 | |||||
Intangible Lease Liability | -4,813,000 | -4,813,000 | |||||
Total | 44,006,000 | 44,006,000 | |||||
Number of tenants in the property | 1 | ||||||
Intangible lease assets | 2,518,000 | ||||||
Intangible lease liabilities | 4,782,000 | ||||||
Weighted average amortization period for intangible lease assets | 7 years | ||||||
Weighted average amortization period for intangible lease liabilities | 6 years 8 months 12 days | ||||||
Marston Park Plaza retail stores, Lakewood, Colorado | |||||||
Real Estate Acquisitions | |||||||
Contract Purchase Price | 17,485,000 | [1] | |||||
Mortgage incurred | 11,853,000 | [1],[2] | |||||
Third Party Real Estate Acquisition Costs | 184,000 | [1],[3] | |||||
Ownership interest in consolidated joint venture of non-controlling interest (as a percent) | 10.00% | 10.00% | |||||
Contributions from non-controlling interests | 663,000 | ||||||
Interest rate (as a percent) | 4.12% | 4.12% | |||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 6,005,000 | 6,005,000 | |||||
Building | 10,109,000 | 10,109,000 | |||||
Building Improvements | 700,000 | 700,000 | |||||
Intangible Lease Asset | 1,493,000 | 1,493,000 | |||||
Intangible Lease Liability | -822,000 | -822,000 | |||||
Total | 17,485,000 | 17,485,000 | |||||
Number of tenant spaces at the property | 29 | ||||||
Percentage of property leased to tenants | 94.50% | ||||||
Marston Park Plaza retail stores, Lakewood, Colorado | Consolidated JV | |||||||
Real Estate Acquisitions | |||||||
Ownership interest in consolidated joint venture of the company (as a percent) | 90.00% | 90.00% | |||||
Interline Brands distribution facility, Louisville, Kentucky | |||||||
Real Estate Acquisitions | |||||||
Contract Purchase Price | 4,400,000 | ||||||
Mortgage incurred | 2,640,000 | [4] | |||||
Third Party Real Estate Acquisition Costs | 44,000 | [3] | |||||
Interest rate (as a percent) | 3.88% | 3.88% | |||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 578,000 | 578,000 | |||||
Building | 3,622,000 | 3,622,000 | |||||
Building Improvements | 105,000 | 105,000 | |||||
Intangible Lease Asset | 95,000 | 95,000 | |||||
Total | 4,400,000 | 4,400,000 | |||||
Land - The Meadows Apartments, Lakemoor, Illinois | |||||||
Real Estate Acquisitions | |||||||
Contract Purchase Price | 9,300,000 | 9,300,000 | |||||
Capitalized transaction costs incurred with the asset acquisition | 228,000 | 228,000 | |||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 9,528,000 | [5] | 9,528,000 | [5] | |||
Total | 9,528,000 | [5] | 9,528,000 | [5] | |||
Shopko retail store, Lincoln, Nebraska | |||||||
Real Estate Acquisitions | |||||||
Percentage of ownership in unconsolidated joint venture | 100.00% | 100.00% | |||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 4,009,000 | [6] | 4,009,000 | [6] | |||
Building | 11,040,000 | [6] | 11,040,000 | [6] | |||
Building Improvements | 574,000 | [6] | 574,000 | [6] | |||
Intangible Lease Asset | 930,000 | [6] | 930,000 | [6] | |||
Intangible Lease Liability | -3,960,000 | [6] | -3,960,000 | [6] | |||
Total | 12,593,000 | [6] | 12,593,000 | [6] | |||
Shopko retail store, Lincoln, Nebraska | Consolidated JV | |||||||
Real Estate Acquisitions | |||||||
Percentage of equity method investments control obtained | 100.00% | ||||||
Shopko retail store, Lincoln, Nebraska | Unconsolidated JV | |||||||
Real Estate Acquisitions | |||||||
Contract Purchase Price | 6,300,000 | [7] | |||||
Percentage of ownership in unconsolidated joint venture | 50.00% | 50.00% | |||||
Payment to purchase of partner's interest | 2,636,000 | ||||||
Payment to purchase substantial interest | 3,664,000 | ||||||
Percentage of equity method investments acquired | 50.00% | ||||||
Subtotals | |||||||
Real Estate Acquisitions | |||||||
Contract Purchase Price | 37,485,000 | ||||||
Third Party Real Estate Acquisition Costs | 248,000 | [3] | |||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 20,120,000 | 20,120,000 | |||||
Building | 24,771,000 | 24,771,000 | |||||
Building Improvements | 1,379,000 | 1,379,000 | |||||
Intangible Lease Asset | 2,518,000 | 2,518,000 | |||||
Intangible Lease Liability | -4,782,000 | -4,782,000 | |||||
Total | 44,006,000 | 44,006,000 | |||||
Other | |||||||
Real Estate Acquisitions | |||||||
Third Party Real Estate Acquisition Costs | 20,000 | [3],[8] | |||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 12,000 | [9] | 12,000 | [9] | |||
Building | 19,000 | [9] | 19,000 | [9] | |||
Intangible Lease Liability | -31,000 | [9] | -31,000 | [9] | |||
Land - River Crossing Apartments, Sandy Springs, Georgia | |||||||
Real Estate Acquisitions | |||||||
Contract Purchase Price | $6,510,000 | ||||||
[1] | Owned by a joint venture in which the Company has a 90% interest. The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase. | ||||||
[2] | The mortgage debt obtained in connection with the purchase bears interest at 4.12% per annum and matures February 2025. | ||||||
[3] | Included as an expense in the accompanying consolidated statements of income. | ||||||
[4] | The mortgage debt obtained in connection with the purchase bears interest at 3.88% per annum and matures February 2021. | ||||||
[5] | Includes capitalized transaction costs of $228 incurred with this asset acquisition. | ||||||
[6] | Fair value of the assets previously owned by an unconsolidated joint venture of the Company. The Company owns 100% of this property as a result of its purchase of its partnerbs 50% interest on March 31, 2015. | ||||||
[7] | The Company purchased its unconsolidated joint venture partner's 50% interest for $6,300. The payment was comprised of (i) $2,636 paid directly to the partner and (ii) $3,664, substantially all of which was used to pay off the partnerbs 50% share of the underlying joint venture mortgage. | ||||||
[8] | Costs incurred for transactions that were not consummated. | ||||||
[9] | Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014. |
Sale_and_Disposal_of_Propertie1
Sale and Disposal of Properties and Discontinued Operations ( Details) (USD $) | 3 Months Ended | 0 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 13, 2015 | Feb. 03, 2014 | Dec. 31, 2013 | |
property | |||||
Discontinued operations and real estate investments | |||||
Total sales price, net of closing costs | $16,025,000 | $5,177,000 | |||
Discontinued Operations | |||||
Mortgage balance paid off | 7,376,000 | ||||
Swap termination expense | 472,000 | ||||
Write off of deferred financing costs | 249,000 | ||||
Income from discontinued operations | 13,000 | ||||
Rental income | 141,000 | ||||
Real estate expenses | 17,000 | ||||
Mortgage interest | 111,000 | ||||
Non-Controlling Interests in Joint Ventures | |||||
Discontinued Operations | |||||
Non-controlling interest's share of income from the transaction | 1,320,000 | ||||
Property located in Cherry Hill, NJ | Consolidated JV | Real Estate in Cherry Hill, NJ | |||||
Discontinued operations and real estate investments | |||||
Total sales price, net of closing costs | 16,025,000 | ||||
Discontinued Operations | |||||
Gain on sale of property | 5,392,000 | ||||
Real estate property located in Michigan | |||||
Discontinued operations and real estate investments | |||||
Number of properties under contract of sale | 2 | ||||
Total sales price, net of closing costs | 5,177,000 | ||||
Discontinued Operations | |||||
Impairment charge | $61,700 |
Variable_Interest_Entities_Con2
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures (USD $) | 3 Months Ended | 1 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||
item | item | |||||
Variable Interest Entities | ||||||
Mortgage debt | $304,808,000 | $304,808,000 | $292,049,000 | |||
Revenue from the ground lease | 252,000 | |||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Carrying Amount | 16,337,000 | 16,337,000 | ||||
Unbilled rent receivable | 12,870,000 | 12,870,000 | 12,815,000 | |||
Maximum Exposure to Loss | 16,337,000 | 16,337,000 | ||||
Restricted cash | 1,335,000 | 1,335,000 | 1,607,000 | |||
Land | 20,132,000 | 20,132,000 | ||||
Accrued expenses and other liabilities | 12,026,000 | 12,026,000 | 12,451,000 | |||
Non-controlling interests in joint ventures | 2,085,000 | 2,085,000 | 1,628,000 | |||
Investment in unconsolidated joint ventures | 2,486,000 | 2,486,000 | 4,907,000 | |||
Noxell Corporation industrial building, Joppa, Maryland | ||||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Ownership interest in consolidated joint venture of the company (as a percent) | 95.00% | |||||
Restricted assets | 0 | 0 | ||||
Land | 3,815,000 | 3,815,000 | ||||
Buildings and improvements, net of depreciation | 8,016,000 | |||||
Cash | 451,000 | 451,000 | ||||
Prepaid expenses and receivables | 43,000 | 43,000 | ||||
Accrued expenses and other liabilities | 181,000 | 181,000 | ||||
Non-controlling interests in joint ventures | 323,000 | 323,000 | ||||
Non Variable Interest Entity | Consolidated JV | ||||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Number of joint ventures with controlling interest | 6 | |||||
Non Variable Interest Entity | Minimum | Consolidated JV | ||||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Ownership interest in consolidated joint venture of the company (as a percent) | 85.00% | 85.00% | ||||
Non Variable Interest Entity | Maximum | Consolidated JV | ||||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Ownership interest in consolidated joint venture of the company (as a percent) | 95.00% | 95.00% | ||||
MCB Real Estate LLC And Its Affiliates | Consolidated JV | ||||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Number of joint ventures with controlling interest | 5 | |||||
Investment in consolidated joint ventures | 19,000,000 | 19,000,000 | ||||
Land - The Meadows Apartments, Lakemoor, Illinois | ||||||
Variable Interest Entities | ||||||
Contract Purchase Price | 9,300,000 | 9,300,000 | ||||
Number of apartment units in the complex purchased | 496 | |||||
Mortgage debt | 43,824,000 | 43,824,000 | ||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Land | 9,528,000 | [1] | 9,528,000 | [1] | ||
Land - The Meadows Apartments, Lakemoor, Illinois | Land | ||||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Carrying Amount | 9,528,000 | 9,528,000 | ||||
Maximum Exposure to Loss | 9,528,000 | 9,528,000 | ||||
Land - River Crossing Apartments, Sandy Springs, Georgia | ||||||
Variable Interest Entities | ||||||
Contract Purchase Price | 6,510,000 | |||||
Number of apartment units in the complex purchased | 196 | |||||
Mortgage debt | 16,230,000 | 16,230,000 | ||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Restricted cash | 1,335,000 | 1,335,000 | ||||
Land - River Crossing Apartments, Sandy Springs, Georgia | Land | ||||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Carrying Amount | 6,528,000 | 6,528,000 | ||||
Maximum Exposure to Loss | 6,528,000 | 6,528,000 | ||||
Land - River Crossing Apartments, Sandy Springs, Georgia | Unbilled rent receivable | ||||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||
Carrying Amount | 281,000 | 281,000 | ||||
Maximum Exposure to Loss | $281,000 | $281,000 | ||||
[1] | Includes capitalized transaction costs of $228 incurred with this asset acquisition. |
Investment_in_Unconsolidated_J1
Investment in Unconsolidated Joint Ventures (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
item | item | ||
property | property | ||
Investment in Unconsolidated Joint Ventures | |||
Number of unconsolidated joint ventures | 4 | 5 | |
Number of properties owned and operated by each unconsolidated joint venture | 1 | 1 | |
Investment in unconsolidated joint ventures | $2,486,000 | $4,907,000 | |
Equity in earnings of unconsolidated joint ventures | 147,000 | 133,000 | |
Shopko retail stores, Lincoln, Nebraska | |||
Variable Interest Entities | |||
Ownership percentage in variable interest entity | 50.00% | ||
Purchase of remaining investment in unconsolidated joint venture | $6,300,000 |
Lease_Termination_Fee_Income_D
Lease Termination Fee Income (Details) (USD $) | 1 Months Ended |
Mar. 31, 2015 | |
Lease Termination Fee Income | |
Lease termination fee received from a retail tenant in a lease buy-out transaction | $650,000 |
Write-off of entire balance of the unbilled rent receivable | $226,000 |
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for Doubtful Accounts | ||
Balance in allowance for doubtful accounts | $0 | $0 |
Line_of_Credit_Details
Line of Credit (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | 4-May-15 | |
Line of Credit | |||
Line of credit | $28,250,000 | $13,250,000 | |
Facility | |||
Line of Credit | |||
Minimum effective interest rate (as a percent) | 4.75% | ||
Unused facility fee (as a percent) | 0.25% | ||
Line of credit | 28,250,000 | 13,250,000 | 24,250,000 |
Facility | Amendment To The Credit Facility | |||
Line of Credit | |||
Borrowing capacity | 75,000,000 | ||
Decreases in minimum required average outstanding deposit balances of credit facility | 3,000,000 | ||
Interest rate at end of period (as a percent) | 1.92% | ||
Commitment and extension fees | $562,500 | ||
Facility | LIBOR | Amendment To The Credit Facility | |||
Line of Credit | |||
Basis of interest rate | one month LIBOR | ||
Facility | LIBOR | Amendment To The Credit Facility | Maximum | |||
Line of Credit | |||
Spread on variable interest rate (as a percent) | 3.00% | ||
Facility | LIBOR | Amendment To The Credit Facility | Minimum | |||
Line of Credit | |||
Spread on variable interest rate (as a percent) | 1.75% |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Majestic | ||
Related Party Transaction | ||
Quarterly fees under compensation and services agreement | $633,750 | $825,000 |
Overhead expenses under compensation and services agreement | 48,900 | 46,600 |
Management fees under compensation and services agreement | 223,100 | 212,500 |
Chairman | ||
Related Party Transaction | ||
Quarterly fees under compensation and services agreement | 65,625 | 62,500 |
Vice Chairman | ||
Related Party Transaction | ||
Quarterly fees under compensation and services agreement | 26,250 | 25,000 |
Gould Investors L.P. | ||
Related Party Transaction | ||
Share of property insurance premiums | 57,000 | 50,000 |
Joint venture partners | ||
Related Party Transaction | ||
Real estate management and acquisition costs | $105,000 | $12,000 |
Common_Stock_Cash_Dividend_Det
Common Stock Cash Dividend (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 10, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Common Stock Cash Dividend | |||
Quarterly cash distributions declared per share of common stock (in dollars per share) | $0.39 | ||
Quarterly cash dividend declared | $6,381,000 | $6,380,000 | $24,117,000 |
Shares_Issued_Through_Equity_O1
Shares Issued Through Equity Offering Program (Details) (USD $) | 0 Months Ended | 3 Months Ended |
Mar. 20, 2014 | Mar. 31, 2015 | |
Shares Issued Through Equity Offering Program | ||
Maximum aggregate sales price of shares to be sold under an Equity Offering Sales Agreement (in dollars) | $38,360,000 | |
Number of shares sold | 0 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Stock Based Compensation | |||
Outstanding options at the end of the period (in shares) | 0 | 0 | 0 |
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows: | |||
Share based compensation charged to operations | $577,000 | $472,000 | |
Compensation costs related to non-vested awards that have not yet been recognized | 7,476,000 | ||
Approximate weighted average vesting period | 2 years 9 months 18 days | ||
Restricted stock grants | |||
Summary of the activity of the incentive plans | |||
Restricted share grants | 129,975 | 118,850 | |
Per share grant price (in dollars per share) | $24.60 | $20.54 | |
Deferred compensation to be recognized over vesting period | 3,197,000 | 2,441,000 | |
Number of non-vested shares: | |||
Non-vested beginning of period (in shares) | 480,995 | 470,015 | |
Grants (in shares) | 129,975 | 118,850 | |
Vested during period (in shares) | -70,685 | -101,300 | |
Forfeitures (in shares) | -6,520 | ||
Non-vested end of period (in shares) | 540,285 | 481,045 | |
Other disclosures | |||
Average per share value of non-vested shares (based on grant price) (in dollars per share) | $17.12 | $14.55 | |
Value of shares vested during the period (based on grant price) | 586,000 | 621,000 | |
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows: | |||
Share based compensation charged to operations | 548,000 | 443,000 | |
Restricted stock units | |||
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows: | |||
Share based compensation charged to operations | 29,000 | 29,000 | |
2012 Incentive Plan | |||
Stock Based Compensation | |||
Number of shares authorized for issuance | 600,000 | ||
Shares issued pursuant to plan | 359,000 | ||
2009 Incentive Plan | |||
Summary of the activity of the incentive plans | |||
Restricted share grants | 0 | ||
Number of non-vested shares: | |||
Grants (in shares) | 0 | ||
Non-vested end of period (in shares) | 381,000 | ||
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows: | |||
Compensation costs related to non-vested awards that have not yet been recognized | $267,000 | ||
2009 Incentive Plan | Restricted stock units | |||
Number of non-vested shares: | |||
Vested during period (in shares) | 0 | ||
Forfeitures (in shares) | 0 | ||
Non-vested end of period (in shares) | 200,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | 4-May-15 | |
Fair Value of Financial Instruments | |||
Carrying amount | $28,250,000 | $13,250,000 | |
Available-for-sale securities | |||
Aggregate cost of available-for-sale securities | 5,300 | ||
Unrealized gain on available-for-sale securities | 27,100 | ||
Facility | |||
Fair Value of Financial Instruments | |||
Carrying amount | 28,250,000 | 13,250,000 | 24,250,000 |
Recurring | Carrying and fair Value | |||
Available-for-sale securities: | |||
Available-for-sale Securities, Equity Securities | 32,400 | 29,000 | |
Recurring | Carrying and fair Value | Interest rate swap | |||
Available-for-sale securities: | |||
Derivative financial instruments | 27,000 | ||
Financial liabilities: | |||
Derivative financial instruments | 3,851,000 | 3,139,000 | |
Recurring | Level 1 | |||
Available-for-sale securities: | |||
Available-for-sale Securities, Equity Securities | 32,400 | 29,000 | |
Recurring | Level 2 | Interest rate swap | |||
Available-for-sale securities: | |||
Derivative financial instruments | 27,000 | ||
Financial liabilities: | |||
Derivative financial instruments | 3,851,000 | 3,139,000 | |
Mortgages payable | |||
Fair Value of Financial Instruments | |||
Estimated fair value of mortgages payable | 316,839,000 | 300,541,000 | |
Excess of fair value over carrying value | $12,031,000 | $8,492,000 | |
Blended or estimated market interest rate (as a percent) | 4.16% | 4.50% | |
Weighted average remaining term of the mortgages | 9 years 1 month 6 days | 9 years 1 month 6 days |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Interest rate derivatives, Cash flow hedges, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
item | |
Interest rate derivatives | Cash flow hedges | |
Fair Value Measurements | |
Number of interest rate derivatives held | 18 |
Number of mortgage loans outstanding | 18 |
Notional Amount | $80,704,000 |
Weighted average maturity | 6 years 10 months 24 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) | 5.75% |
Weighted average annual interest rate (as a percent) | 4.67% |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (Derivatives designated as hedging instruments, Interest rate swap, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Derivatives designated as hedging instruments | Interest rate swap | ||
Fair Value Measurements | ||
Fair value of derivatives assets | $0 | $27,000 |
Fair value of derivatives liabilities | $3,851,000 | $3,139,000 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 |
Interest rate swap | Cash flow hedges | ||
Fair Value Measurements | ||
Amount of loss gain recognized on derivative in Other comprehensive loss | -1,623,000 | -1,106,000 |
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense | -889,000 | -388,000 |
Reclassification of gain (loss) | ||
Number of interest rate derivative instruments terminated | 1 | |
Accelerated amount of loss | 472,000 | |
Additional amount to be reclassified to interest expense during the next twelve months | 1,526,000 | |
Credit risk related contingent feature | ||
Fair value of derivative in a liability position, including accrued interest and excluding adjustments for nonperformance risk | 4,209,000 | |
Termination value of derivative agreement | 4,209,000 | |
Adjustments for nonperformance risk | 358,000 | |
Interest rate swap | Cash flow hedges | Accrued Expenses And Other Liabilities | ||
Credit risk related contingent feature | ||
Termination value of derivative agreement | 3,851,000 | |
Interest rate swap | Cash flow hedges | Unconsolidated JV | ||
Fair Value Measurements | ||
Number of unconsolidated joint ventures of the entity with interest rate derivatives outstanding | 3 | |
Percentage of ownership in unconsolidated joint venture | 50.00% | |
Number interest rate derivatives outstanding | 2 | |
Notional Amount | 11,166,000 | |
Amount of loss gain recognized on derivative in Other comprehensive loss | -71,000 | -7,000 |
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense | ($22,000) | ($14,000) |
Interest rate swap | Cash flow hedges | Unconsolidated JV | Minimum | ||
Fair Value Measurements | ||
Fixed Interest Rate (as a percent) | 3.49% | |
Interest rate swap | Cash flow hedges | Unconsolidated JV | Maximum | ||
Fair Value Measurements | ||
Fixed Interest Rate (as a percent) | 5.81% |