Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | ONE LIBERTY PROPERTIES INC | |
Entity Central Index Key | 712,770 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,703,921 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Real estate investments, at cost | ||
Land | $ 190,016,000 | $ 165,153,000 |
Buildings and improvements | 470,771,000 | 416,272,000 |
Total real estate investments, at cost | 660,787,000 | 581,425,000 |
Less accumulated depreciation | 84,426,000 | 76,575,000 |
Real estate investments, net | 576,361,000 | 504,850,000 |
Property held-for-sale | 10,176,000 | |
Investment in unconsolidated joint ventures | 11,273,000 | 4,907,000 |
Cash and cash equivalents | 13,896,000 | 20,344,000 |
Restricted cash | 1,108,000 | 1,607,000 |
Unbilled rent receivable (including $120 related to property held-for-sale in 2014) | 13,707,000 | 12,815,000 |
Unamortized intangible lease assets, net | 30,188,000 | 27,387,000 |
Escrow, deposits and other assets and receivables | 4,656,000 | 4,310,000 |
Unamortized deferred financing costs, net | 4,207,000 | 4,043,000 |
Total assets | 655,396,000 | 590,439,000 |
Liabilities: | ||
Mortgages payable | 325,601,000 | 292,049,000 |
Line of credit | 35,750,000 | 13,250,000 |
Dividends payable | 6,476,000 | 6,322,000 |
Accrued expenses and other liabilities | 15,243,000 | 12,451,000 |
Unamortized intangible lease liabilities, net | 14,827,000 | 10,463,000 |
Total liabilities | $ 397,897,000 | $ 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; 16,073 and 15,728 shares issued and outstanding | $ 16,073,000 | $ 15,728,000 |
Paid-in capital | 227,283,000 | 219,867,000 |
Accumulated other comprehensive loss | (5,860,000) | (3,195,000) |
Accumulated undistributed net income | 17,925,000 | 21,876,000 |
Total One Liberty Properties, Inc. stockholders' equity | 255,421,000 | 254,276,000 |
Non-controlling interests in consolidated joint ventures | 2,078,000 | 1,628,000 |
Total equity | 257,499,000 | 255,904,000 |
Total liabilities and equity | $ 655,396,000 | $ 590,439,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Unbilled rent receivable related to property held-for-sale in 2014 | $ 120 | |
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 | 16,073 | 15,728 |
Common stock, shares outstanding | 16,073 | 15,728 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Rental income, net | $ 15,273,000 | $ 14,552,000 | $ 44,159,000 | $ 42,308,000 |
Tenant reimbursements | 835,000 | 635,000 | 2,407,000 | 1,677,000 |
Lease termination fee | 650,000 | 1,269,000 | ||
Total revenues | 16,108,000 | 15,187,000 | 47,216,000 | 45,254,000 |
Operating expenses: | ||||
Depreciation and amortization | 4,435,000 | 3,685,000 | 12,090,000 | 10,985,000 |
General and administrative (including $503, $485, $1,512 and $1,899, respectively, to related parties) | 2,350,000 | 2,153,000 | 7,132,000 | 6,497,000 |
Real estate expenses (including $223, $213, $669 and $638, respectively, to related party) | 1,415,000 | 1,085,000 | 4,022,000 | 3,061,000 |
Federal excise and state taxes | 68,000 | 6,000 | 266,000 | 175,000 |
Real estate acquisition costs | 90,000 | 83,000 | 417,000 | 211,000 |
Leasehold rent | 77,000 | 77,000 | 231,000 | 231,000 |
Impairment loss | 1,093,000 | 1,093,000 | ||
Total operating expenses | 8,435,000 | 8,182,000 | 24,158,000 | 22,253,000 |
Operating income | 7,673,000 | 7,005,000 | 23,058,000 | 23,001,000 |
Other income and expenses: | ||||
Gain on sale of real estate, net | 5,392,000 | |||
Purchase price fair value adjustment | 960,000 | |||
Prepayment costs on debt | (568,000) | |||
Equity in earnings of unconsolidated joint ventures | 347,000 | 134,000 | 311,000 | 397,000 |
Gain on sale - investment in BRT Realty Trust (related party) | 134,000 | |||
Other income | 2,000 | 10,000 | 77,000 | 20,000 |
Interest: | ||||
Expense | (4,044,000) | (4,227,000) | (11,690,000) | (12,215,000) |
Amortization and write-off of deferred financing costs | (187,000) | (275,000) | (828,000) | (741,000) |
Income from continuing operations | 3,791,000 | 2,647,000 | 16,712,000 | 10,596,000 |
Income from discontinued operations | 13,000 | |||
Net income | 3,791,000 | 2,647,000 | 16,712,000 | 10,609,000 |
Net income attributable to non-controlling interests | (3,000) | (27,000) | (1,386,000) | (76,000) |
Net income attributable to One Liberty Properties, Inc. | $ 3,788,000 | $ 2,620,000 | $ 15,326,000 | $ 10,533,000 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 16,014 | 15,650 | 15,892 | 15,508 |
Diluted (in shares) | 16,114 | 15,750 | 15,992 | 15,608 |
Per common share attributable to common stockholders - basic and diluted: | $ 0.22 | $ 0.16 | $ 0.92 | $ 0.64 |
Cash distributions declared per share of common stock | $ 0.39 | $ 0.37 | $ 1.17 | $ 1.11 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONSOLIDATED STATEMENTS OF INCOME | ||||
General and administrative, related parties | $ 503 | $ 485 | $ 1,512 | $ 1,899 |
Real estate expenses, related party | $ 223 | $ 213 | $ 669 | $ 638 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 3,791 | $ 2,647 | $ 16,712 | $ 10,609 |
Other comprehensive gain (loss) | ||||
Net unrealized gain (loss) on available-for-sale securities | 1 | (1) | 2 | (126) |
Net unrealized (loss) gain on derivative instruments | (3,035) | 120 | (2,579) | (1,465) |
One Liberty Property's share of joint venture net unrealized (loss) gain on derivative instruments | (93) | 19 | (67) | 23 |
Other comprehensive (loss) gain | (3,127) | 138 | (2,644) | (1,568) |
Comprehensive income | 664 | 2,785 | 14,068 | 9,041 |
Comprehensive income attributable to non-controlling interests | (3) | (27) | (1,386) | (76) |
Unrealized loss (gain) on derivative instruments attributable to non-controlling interests | 13 | (7) | (21) | 17 |
Comprehensive income attributable to One Liberty Properties, Inc. | $ 674 | $ 2,751 | $ 12,661 | $ 8,982 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | 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 | $ 210,324 | $ (490) | $ 23,877 | $ 1,158 | $ 250,090 |
Distributions - common stock | ||||||
Cash - $1.17 and $1.11 per share for the nine months ended September 30, 2015, and nine months ended September 30, 2014, respectively | (17,796) | (17,796) | ||||
Shares issued through equity offering program - net | 179 | 3,596 | 3,775 | |||
Restricted stock vesting | 101 | (101) | ||||
Shares issued through dividend reinvestment plan | 168 | 3,195 | 3,363 | |||
Contributions from non-controlling interests | 306 | 306 | ||||
Distributions to non-controlling interests | (199) | (199) | ||||
Compensation expense - restricted stock | 1,368 | 1,368 | ||||
Net income | 10,533 | 76 | 10,609 | |||
Other comprehensive gain (loss) | (1,551) | (17) | (1,568) | |||
Balances at Sep. 30, 2014 | 15,669 | 218,382 | (2,041) | 16,614 | 1,324 | 249,948 |
Balances at Dec. 31, 2014 | 15,728 | 219,867 | (3,195) | 21,876 | 1,628 | 255,904 |
Distributions - common stock | ||||||
Cash - $1.17 and $1.11 per share for the nine months ended September 30, 2015, and nine months ended September 30, 2014, respectively | (19,277) | (19,277) | ||||
Shares issued through equity offering program - net | 135 | 2,799 | 2,934 | |||
Restricted stock vesting | 72 | (72) | ||||
Shares issued through dividend reinvestment plan | 138 | 2,947 | 3,085 | |||
Contributions from non-controlling interests | 713 | 713 | ||||
Distributions to non-controlling interests | (1,670) | (1,670) | ||||
Compensation expense - restricted stock | 1,742 | 1,742 | ||||
Net income | 15,326 | 1,386 | 16,712 | |||
Other comprehensive gain (loss) | (2,665) | 21 | (2,644) | |||
Balances at Sep. 30, 2015 | $ 16,073 | $ 227,283 | $ (5,860) | $ 17,925 | $ 2,078 | $ 257,499 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||
Distributions - common stock, Cash per share (in dollars per share) | $ 0.39 | $ 0.37 | $ 1.17 | $ 1.11 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 16,712,000 | $ 10,609,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sales of real estate | (5,392,000) | |
Purchase price fair value adjustment | (960,000) | |
Gain on sale - investment in BRT Realty Trust (related party) | (134,000) | |
Impairment loss | 1,093,000 | |
Increase in unbilled rent receivable | (1,327,000) | (1,108,000) |
Write-off of unbilled rent receivable | 315,000 | |
Amortization of intangibles relating to leases, net | (621,000) | (144,000) |
Amortization of restricted stock expense | 1,742,000 | 1,368,000 |
Equity in earnings of unconsolidated joint ventures | (311,000) | (397,000) |
Distributions of earnings from unconsolidated joint ventures | 465,000 | 399,000 |
Depreciation and amortization | 12,090,000 | 10,985,000 |
Amortization and write-off of financing costs | 828,000 | 741,000 |
Payment of leasing commissions | (709,000) | (165,000) |
Changes in assets and liabilities: | ||
(Increase) decrease in escrow, deposits, other assets and receivables | (178,000) | 535,000 |
Increase (decrease) in accrued expenses and other liabilities | 662,000 | (383,000) |
Net cash provided by operating activities | 23,316,000 | 23,399,000 |
Cash flows from investing activities: | ||
Purchase of real estate | (67,548,000) | (33,167,000) |
Improvements to real estate | (2,479,000) | (716,000) |
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) | |
Investment in unconsolidated joint ventures | (12,686,000) | |
Net proceeds on sale - investment in BRT Realty Trust (related party) | 266,000 | |
Distributions of return of capital from unconsolidated joint ventures | 761,000 | 53,000 |
Net cash used in investing activities | (72,227,000) | (28,387,000) |
Cash flows from financing activities: | ||
Scheduled amortization payments of mortgages payable | (5,679,000) | (5,675,000) |
Repayment of mortgages payable | (25,308,000) | (25,456,000) |
Proceeds from mortgage financings | 66,005,000 | 46,839,000 |
Proceeds from sale of common stock, net | 2,934,000 | 3,775,000 |
Proceeds from bank line of credit | 45,400,000 | 27,500,000 |
Repayment on bank line of credit | (22,900,000) | (29,500,000) |
Issuance of shares through dividend reinvestment plan | 3,085,000 | 3,363,000 |
Payment of financing costs | (996,000) | (712,000) |
Capital contributions from non-controlling interests | 713,000 | 306,000 |
Distributions to non-controlling interests | (1,670,000) | (199,000) |
Cash distributions to common stockholders | (19,121,000) | (17,625,000) |
Net cash provided by financing activities | 42,463,000 | 2,616,000 |
Net decrease in cash and cash equivalents | (6,448,000) | (2,372,000) |
Cash and cash equivalents at beginning of period | 20,344,000 | 16,631,000 |
Cash and cash equivalents at end of period | 13,896,000 | 14,259,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest expense | 11,830,000 | 12,382,000 |
Cash paid during the period for Federal excise tax, net | 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 allocation - intangible lease assets | 5,780,000 | 1,999,000 |
Purchase accounting allocation - intangible lease liabilities | $ 5,366,000 | $ 2,844,000 |
Organization and Background
Organization and Background | 9 Months Ended |
Sep. 30, 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 September 30, 2015, OLP owns 120 properties, including seven properties owned by consolidated joint ventures and five properties owned by unconsolidated joint ventures. The 120 properties are located in 31 states. |
Summary Accounting Policies
Summary Accounting Policies | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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. 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. 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 in certain ventures, 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. Properties Held-for-Sale 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 tenants’ contractual obligations 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. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 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 period by the weighted average number of shares of common stock outstanding during such period. Net income is also allocated to the unvested restricted stock outstanding during the applicable period, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. Unvested restricted stock is not allocated net losses and/or any excess of dividends declared over net income; such amounts are allocated entirely to the common stockholders, other than the holders of unvested restricted stock. The restricted stock units awarded under the Pay-for-Performance program 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 and nine months ended September 30, 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 and nine months ended September 30, 2015 and 2014, as they did not meet the return on capital performance metric during such periods. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator for basic and diluted earnings per share: Income from continuing operations $ $ $ $ Less net income attributable to non-controlling interests ) ) ) ) Less earnings allocated to unvested restricted stock (a) ) ) ) ) Income from continuing operations available for common stockholders Discontinued operations — — — Net income available for common stockholders, basic and diluted $ $ $ $ Denominator for basic earnings per share: — weighted average common shares Effect of diluted securities: — restricted stock units awarded under Pay-for-Performance program Denominator for diluted earnings per share — weighted average shares Earnings per common share, basic $ .22 $ .16 $ .92 $ .64 Earnings per common share, diluted $ .22 $ .16 $ .92 $ .64 Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests: Income from continuing operations $ $ $ $ Income from discontinued operations — — — Net income attributable to One Liberty Properties, Inc. $ $ $ $ a) Represents an allocation of distributed earnings to unvested restricted stock, which as participating securities, are entitled to receive dividends. |
Real Estate Acquisitions
Real Estate Acquisitions | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2015 (amounts in thousands): Description of Property Date Acquired Contract Purchase Price Terms of Payment (a) Third Party Real Estate Acquisition Costs (b) Marston Park Plaza retail stores, Lakewood, Colorado (c) February 25, 2015 $ Cash and $11,853 mortgage (d) $ Interline Brands distribution facility, Louisville, Kentucky March 18, 2015 Cash and $2,640 mortgage (e) Land — The Meadows Apartments, Lakemoor, Illinois March 24, 2015 All cash — (f) Joint venture interest - Shopko retail store, Lincoln, Nebraska (g) March 31, 2015 All cash (g) — Archway Roofing industrial facility, Louisville, Kentucky (h) May 20, 2015 All cash JCIM - industrial facility, McCalla, Alabama July 28, 2015 All cash Fedex & CHEP USA distribution facility, Delport (St. Louis), Missouri September 25, 2015 Cash and $12,383 mortgage (i) Other costs (j) — Totals $ $ (a) All of the mortgages listed in this column were obtained simultaneously with the acquisition of the applicable property. (b) Included as an expense in the accompanying consolidated statements of income. (c) 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. (d) The new mortgage debt bears interest at 4.12% per annum and matures February 2025. (e) The new mortgage debt bears interest at 3.88% per annum and matures February 2021. (f) Transaction costs aggregating $263 incurred with this asset acquisition were capitalized. (g) 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. (h) This property is adjacent to the Interline Brands distribution facility purchased in March 2015. (i) The new mortgage debt bears interest at 3.85% per annum and matures August 2024. (j) Costs incurred for potential acquisitions and 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 nine months ended September 30, 2015 (amounts in thousands): Building Intangible Lease Description of Property Land Building Improvements Asset Liability Total Marston Park Plaza retail stores, Lakewood, Colorado $ $ $ $ $ ) $ Interline Brands distribution facility, Louisville, Kentucky — Land — The Meadows Apartments, Lakemoor, Illinois (a) — — — — Joint venture interest - Shopko retail store, Lincoln, Nebraska (b) ) Archway Roofing industrial facility, Louisville, Kentucky — JCIM - industrial facility, McCalla, Alabama ) FedEx & CHEP USA distribution facility, Delport (St. Louis), Missouri ) Subtotals ) Other (c) — — ) — Totals $ $ $ $ $ ) $ (a) Includes capitalized transaction costs of $263 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 and the Delport, Missouri properties, the properties purchased by the Company during the nine months ended September 30, 2015 are each net leased and occupied by a single tenant pursuant to leases that expire between 2017 through 2045. The Lakewood, Colorado property has 29 retail tenant spaces and at September 30, 2015, is 92.0% occupied with leases expiring between 2015 and 2032. The Delport, Missouri property has two retail tenant spaces and at September 30, 2015, is 100% occupied with leases expiring in 2022 and 2024. 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 on 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 net assets acquired. As a result of the 2015 acquisitions, the Company recorded intangible lease assets of $5,780,000 and intangible lease liabilities of $5,335,000 representing the value of the origination costs and acquired leases. As of September 30, 2015, the weighted average amortization period is 7.1 years for these intangible lease assets and 6.7 years for these 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 nine months ended September 30, 2015; therefore the allocations are preliminary and subject to change. |
Sale and Disposal of Properties
Sale and Disposal of Properties, Discontinued Operations and Impairment | 9 Months Ended |
Sep. 30, 2015 | |
Sale and Disposal of Properties, Discontinued Operations and Impairment | |
Sale and Disposal of Properties, Discontinued Operations and Impairment | Note 5 — Sale and Disposal of Properties, Discontinued Operations and Impairment 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 nine months ended September 30, 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 and is included in net income attributable to non-controlling interests. 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 nine months ended September 30, 2014 totaled $13,000 consisting of rental income of $141,000 less real estate expenses of $17,000 and mortgage interest of $111,000. During the three and nine months ended September 30, 2014, the Company determined there were indicators of impairment at its property located in Morrow, Georgia. The tenant did not renew the lease which expired October 31, 2014, efforts to re-let the property were unsuccessful and the non-recourse mortgage on the property matured on November 1, 2014. Management determined that the undiscounted cash flows in the test for recoverability were less than the property’s carrying amount, and that the fair value of the property was less than its carrying amount. Accordingly, the Company recorded an impairment charge of $1,093,000 which is included in the accompanying consolidated statement of income for the three and nine months ended September 30, 2014. The property was acquired by the mortgagee on January 6, 2015 through a foreclosure proceeding. |
Variable Interest Entities, Con
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures | 9 Months Ended |
Sep. 30, 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 Variable Interest Entities — Ground Leases 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 the applicable 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 insufficient 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 this land as collateral for the respective owner/operator’s mortgage loans; accordingly, each land position is subordinated to the applicable mortgage. Other than as described above, no other financial support has been provided by the Company. 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 these investments as land and the revenues from the ground leases as Rental income, net. Such rental income amounted to $460,000 and $1,166,000 for the three and nine months ended September 30, 2015, respectively, and $232,000 and $299,000 for each of the three and nine months ended September 30, 2014. 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 September 30, 2015 (amounts in thousands): Property Type of Exposure Carrying Amount Maximum Exposure to Loss River Crossing Apartments, Sandy Springs, Georgia Land $ $ Unbilled rent receivable The Meadows Apartments, Lakemoor, Illinois Land Total $ $ 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. Cash reserves totaling $1,894,000 were received by the Company in conjunction with the purchase of the property in June 2014 to cover such renovation work and other reserve requirements. An additional $39,000 of reserves was received by the Company during the three and nine months ended September 30, 2015. These cash reserves are held by the Company and disbursed once the renovations have been completed. For the nine months ended September 30, 2015 and September 30, 2014, the Company disbursed approximately $538,000 and $0, respectively, for renovation costs to the owner/operator. The cash reserve balance at September 30, 2015 and December 31, 2014 was $1,108,000 and $1,607,000, respectively, and is classified as Restricted cash on the consolidated balance sheets. Consolidated Variable Interest Entity In June 2014, a joint venture in which the Company has a 95% equity interest and a senior preferred equity interest, acquired a property located in Joppa, Maryland. The Company determined that this joint venture is a VIE as the Company’s voting rights are not proportional to its economic interests, substantially all of the joint venture’s activities are conducted on behalf of the Company and 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. Accordingly, the Company consolidates the operations of this joint venture for financial statement purposes. The joint venture’s creditors do not have recourse to the assets of the Company other than those held by the joint venture. The following is a summary of the carrying amounts and classification in the Company’s consolidated balance sheets of the VIE’s accounts, none of which are restricted (amounts in thousands): September 30, December 31, 2015 2014 Land $ $ Building and improvements, net of depreciation of $275 and $17, respectively Cash Prepaid expenses and receivables Accrued expenses and other liabilities Non-controlling interest in joint venture Non-VIE Consolidated Joint Ventures With respect to six of the 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 (“MCB”) are the Company’s joint venture partner in five consolidated joint ventures (including the Joppa, Maryland VIE). At September 30, 2015, the Company has aggregate equity investments of approximately $19,240,000 in such ventures. A joint venture investment with MCB of $3.1 million owns a property operated as a Pathmark supermarket in Philadelphia, Pennsylvania. In July 2015, this tenant filed for Chapter 11 bankruptcy protection, rejected the lease, and in late September 2015, vacated the property. As a result, the Company wrote off (i) $89,000 of straight line rent and $124,000 of intangible lease liabilies, the net effect of which was an increase in rental income of $35,000, and (ii) $380,000 of tenant origination costs, which is included in depreciation expense. This tenant accounted for approximately 1.3% of the Company’s rental income for the nine months ended September 30, 2015 and at September 30, 2015, the mortgage debt on such property is $4,500,000. The Company has determined that no impairment charge is required currently with respect to this property. Distributions by Consolidated Joint Ventures 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 Jo
Investment in Unconsolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2015 | |
Investment in Unconsolidated Joint Ventures | |
Investment in Unconsolidated Joint Ventures | Note 7 - Investment in Unconsolidated Joint Ventures On March 31, 2015, the Company purchased its partner’s 50% interest in an unconsolidated joint venture for $6,300,000 (see Note 4). In June 2015, the Company entered into a joint venture in which it has a 50% interest, with MCB and an affiliate of The Hampshire Companies. The joint venture purchased a retail center located in Manahawkin, New Jersey for approximately $43,500,000, before closing costs. The purchase was financed with $26,100,000 of new mortgage debt which bears an annual fixed interest rate of 4% and matures in 2025. At September 30, 2015, the Company’s equity investment in the joint venture is $8,808,000. At September 30, 2015 and December 31, 2014, the Company’s five unconsolidated joint ventures each owned and operated one property. The Company’s equity investment in such unconsolidated joint ventures at such dates totaled $11,273,000 and $4,907,000, respectively. The Company recorded equity in earnings of $347,000 and $311,000 for the three and nine months ended September 30, 2015, respectively, and equity in earnings of $134,000 and $397,000 for the three and nine months ended September 30, 2014, respectively. Earnings for the nine months ended September 30, 2015 are net of the Company’s $400,000 share of the acquisition expenses associated with the June 2015 purchase of the Manahawkin, New Jersey property. |
Lease Termination Fee Income
Lease Termination Fee Income | 9 Months Ended |
Sep. 30, 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. In June 2014, the Company received a $1,269,000 lease termination fee from a retail tenant in a lease buy-out transaction. In connection with the receipt of this fee, the Company wrote-off $150,000 as an offset to rental income, representing the entire balance of the unbilled rent receivable and the intangible lease asset related to this property. The Company re-leased this property simultaneously with the termination of the lease. In October 2015, the Company received a $1,286,000 lease termination fee from a retail tenant in a lease buy-out transaction. In connection with this transaction, the Company, during the three months ending December 31, 2015, will write off $179,000 as an offset to rental income, representing the entire balance of the unbilled rent receivable related to this tenant at the property. The Company re-leased substantially all of such space. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 9 Months Ended |
Sep. 30, 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 September 30, 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 and nine months ended September 30, 2015 and 2014, the Company did not incur any bad debt expense. |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 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 from March 31, 2015 to December 31, 2018, 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 average interest rate on the facility for the nine months ended September 30, 2015 was approximately 1.93%. 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 is being amortized over the remaining term of the facility. At September 30, 2015 and November 3, 2015, there were outstanding balances of $35,750,000 and $23,250,000, respectively, under the facility. The Company was in compliance with all covenants at September 30, 2015. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions | |
Related Party Transactions | Note 11 — Related Party Transactions For 2015, the Company agreed to pay quarterly fees of $633,750 (including overhead expenses of $48,900 and property management fees of $223,125) 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 September 30, 2014, such quarterly fees were $602,500 (including overhead expenses of $46,600 and property management fees of $212,500). The nine months ended September 30, 2015 and 2014 include fees of $1,901,000 and $2,252,000, respectively. The 2015 and 2014 amounts reflect 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. The Company obtains its property insurance in conjunction with Gould Investors L.P. (“Gould”), a related party and reimburses Gould annually for the Company’s insurance cost relating to its properties. Amounts reimbursed to Gould were $513,000 during the three and nine months ended September 30, 2015 and $400,000 during the three and nine months ended September 30, 2014. Included in real estate expenses on the consolidated statements of income is insurance expense of $121,000 and $235,000 for the three and nine months ended September 30, 2015, and $86,000 and $186,000 for the three and nine months ended September 30, 2014, respectively. During the nine months ended September 30, 2015, the Company received a $131,000 financing fee for obtaining the mortgage debt for the unconsolidated joint venture that acquired the Manahawkin, New Jersey property (see Note 7). Fifty percent of this income is included in Other income on the consolidated statements of income and the balance is recorded as a reduction to Investment in unconsolidated joint ventures on the consolidated balance sheets. In conjunction with the acquisition, the joint venture paid an acquisition fee to the other partners of the venture. During the three and nine months ended September 30, 2015 and 2014, the Company paid an aggregate of $64,000, $528,000, $10,000 and $31,000, respectively, to its joint venture partners or their affiliates for property management and acquisition fees, which were included in real estate operating expenses or equity in earnings of unconsolidated ventures on the consolidated statements of income. |
Common Stock Cash Dividend
Common Stock Cash Dividend | 9 Months Ended |
Sep. 30, 2015 | |
Common Stock Cash Dividend | |
Common Stock Cash Dividend | Note 12 - Common Stock Cash Dividend On September 10, 2015, the Board of Directors declared a quarterly cash dividend of $.39 per share on the Company’s common stock, totaling $6,476,000. The quarterly dividend was paid on October 5, 2015 to stockholders of record on September 25, 2015. |
Shares Issued Through Equity Of
Shares Issued Through Equity Offering Program | 9 Months Ended |
Sep. 30, 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. During the nine months ended September 30, 2015, the Company sold 135,000 shares for proceeds of $3,013,400, net of commissions of $30,400, and incurred offering costs, primarily professional fees, of $79,000. Subsequent to September 30, 2015 and through October 7, 2015, the Company sold 33,103 shares for proceeds of $725,200, net of commissions of $7,300. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 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 September 30, 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 380,000 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 nine months ended September 30, 2015. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Restricted share grants — — Per share grant price — — $ $ Deferred compensation to be recognized over vesting period — — $ $ Number of non-vested shares: Non-vested beginning of period Grants — — Vested during period — — ) ) Forfeitures — ) — ) Non-vested end of period The following information includes the 200,000 Units: Average per share value of non-vested shares (based on grant price) $ $ $ $ Value of shares vested during the period (based on grant price) $ — $ — $ $ The total charge to operations for all incentive plans is as follows: Outstanding restricted stock grants $ $ $ $ Outstanding restricted stock units Total charge to operations $ $ $ $ As of September 30, 2015, there were approximately $6,311,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $207,000 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 2.3 years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 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, receivables, certain other assets, dividends payable, and accrued expenses and other liabilities (excluding interest rate swaps), are not measured at fair value on a recurring basis, but are considered to be recorded at amounts that approximate fair value. At September 30, 2015, the $336,157,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $10,556,000 assuming a blended market interest rate of 4.2% 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 September 30, 2015 and December 31, 2014, the $35,750,000 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 September 30, 2015 $ $ $ — December 31, 2014 — Derivative financial instruments: Interest rate swaps September 30, 2015 $ — $ — $ — December 31, 2014 — Financial liabilities: Derivative financial instruments: Interest rate swaps September 30, 2015 $ $ — $ December 31, 2014 — The Company does not own any financial instruments that are classified as Level 3. Available-for-sale securities At September 30, 2015, the Company’s available-for-sale securities included a $31,000 investment in equity securities (included in other assets on the consolidated balance sheets). The aggregate cost of these securities was $5,300 and at September 30, 2015, the unrealized gain was $25,700. Such unrealized gains are included in accumulated other comprehensive loss on the consolidated balance sheets. Fair values are approximated based on current market quotes from financial sources that track such securities. In May 2014, the Company sold to Gould Investors L.P., a related party, 37,081 shares of BRT Realty Trust, a related party, for $266,000 (based on the average of the closing prices for the 30 days preceding the sale). The cost of these shares was $132,000 and the Company realized a gain on sale of $134,000, of which $132,000 was reclassified from Accumulated other comprehensive loss on the consolidated balance sheets into earnings. 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 September 30, 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 September 30, 2015, the Company had entered into 24 interest rate derivatives, all of which were interest rate swaps, related to 24 outstanding mortgage loans with an aggregate $117,401,000 notional amount and mature between 2016 and 2027 (weighted average remaining maturity of 7.6 years). Such interest rate swaps, all of which were designated as cash flow hedges, converted LIBOR based variable rate mortgages to fixed annual rate mortgages (with interest rates ranging from 3.55% to 5.75% and a weighted average interest rate of 4.66% at September 30, 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 $5,705,000, respectively, at September 30, 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 September 30, 2015 with an aggregate $11,050,000 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 One Liberty Properties and Consolidated Subsidiaries Amount of loss recognized on derivatives in Other comprehensive loss $ ) $ ) $ ) $ ) Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense ) ) ) ) Unconsolidated Joint Ventures (Company’s share) Amount of (loss) gain recognized on derivatives in Other comprehensive loss $ ) $ ) $ ) Amount of loss reclassification from Accumulated other comprehensive loss into Equity in earnings of unconsolidated joint ventures ) ) ) ) No gain or loss was recognized with respect to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Company’s cash flow hedges for the three and nine months ended September 30, 2015 and 2014. During the nine months ended September 30, 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 September 30, 2016, the Company estimates an additional $2,272,000 will be reclassified from other comprehensive income (loss) as an increase to interest expense. The derivative agreements in effect at September 30, 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 September 30, 2015, the fair value of the derivatives in a liability position, including accrued interest and excluding any adjustments for nonperformance risk, was approximately $6,101,000. 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 $6,101,000. This termination liability value, net of $396,000 adjustments for nonperformance risk, or $5,705,000, is included in accrued expenses and other liabilities on the consolidated balance sheets at September 30, 2015. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | Note 16 - New Accounting Pronouncements In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting for Measurement Period Adjustments, which eliminates the requirement for an acquirer in a business combination to account for measurement period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and early adoption is permitted. The Company 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 evaluating the new guidance to determine the impact it may have on its consolidated financial statements. 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 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. The effective date of this standard will be for fiscal years, and interim periods within those years, after December 15, 2017. Early adoption is permitted after December 15, 2016. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events | |
Subsequent Events | Note 17 - Subsequent Events Subsequent events have been evaluated and except as disclosed in Note 8 (Lease Termination Fee Income), there were no other events relative to the Company’s consolidated financial statements that require additional disclosure. |
Summary Accounting Policies (Po
Summary Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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. |
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. |
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 in certain ventures, 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. |
Properties Held for Sale | Properties Held-for-Sale 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 tenants’ contractual obligations 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. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator for basic and diluted earnings per share: Income from continuing operations $ $ $ $ Less net income attributable to non-controlling interests ) ) ) ) Less earnings allocated to unvested restricted stock (a) ) ) ) ) Income from continuing operations available for common stockholders Discontinued operations — — — Net income available for common stockholders, basic and diluted $ $ $ $ Denominator for basic earnings per share: — weighted average common shares Effect of diluted securities: — restricted stock units awarded under Pay-for-Performance program Denominator for diluted earnings per share — weighted average shares Earnings per common share, basic $ .22 $ .16 $ .92 $ .64 Earnings per common share, diluted $ .22 $ .16 $ .92 $ .64 Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests: Income from continuing operations $ $ $ $ Income from discontinued operations — — — Net income attributable to One Liberty Properties, Inc. $ $ $ $ a) Represents an allocation of distributed earnings to unvested restricted stock, which as participating securities, are entitled to receive dividends. |
Real Estate Acquisitions and Co
Real Estate Acquisitions and Contingent Liability (Tables) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2015 (amounts in thousands): Description of Property Date Acquired Contract Purchase Price Terms of Payment (a) Third Party Real Estate Acquisition Costs (b) Marston Park Plaza retail stores, Lakewood, Colorado (c) February 25, 2015 $ Cash and $11,853 mortgage (d) $ Interline Brands distribution facility, Louisville, Kentucky March 18, 2015 Cash and $2,640 mortgage (e) Land — The Meadows Apartments, Lakemoor, Illinois March 24, 2015 All cash — (f) Joint venture interest - Shopko retail store, Lincoln, Nebraska (g) March 31, 2015 All cash (g) — Archway Roofing industrial facility, Louisville, Kentucky (h) May 20, 2015 All cash JCIM - industrial facility, McCalla, Alabama July 28, 2015 All cash Fedex & CHEP USA distribution facility, Delport (St. Louis), Missouri September 25, 2015 Cash and $12,383 mortgage (i) Other costs (j) — Totals $ $ (a) All of the mortgages listed in this column were obtained simultaneously with the acquisition of the applicable property. (b) Included as an expense in the accompanying consolidated statements of income. (c) 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. (d) The new mortgage debt bears interest at 4.12% per annum and matures February 2025. (e) The new mortgage debt bears interest at 3.88% per annum and matures February 2021. (f) Transaction costs aggregating $263 incurred with this asset acquisition were capitalized. (g) 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. (h) This property is adjacent to the Interline Brands distribution facility purchased in March 2015. (i) The new mortgage debt bears interest at 3.85% per annum and matures August 2024. (j) Costs incurred for potential acquisitions and 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 nine months ended September 30, 2015 (amounts in thousands): Building Intangible Lease Description of Property Land Building Improvements Asset Liability Total Marston Park Plaza retail stores, Lakewood, Colorado $ $ $ $ $ ) $ Interline Brands distribution facility, Louisville, Kentucky — Land — The Meadows Apartments, Lakemoor, Illinois (a) — — — — Joint venture interest - Shopko retail store, Lincoln, Nebraska (b) ) Archway Roofing industrial facility, Louisville, Kentucky — JCIM - industrial facility, McCalla, Alabama ) FedEx & CHEP USA distribution facility, Delport (St. Louis), Missouri ) Subtotals ) Other (c) — — ) — Totals $ $ $ $ $ ) $ (a) Includes capitalized transaction costs of $263 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, C30
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Unconsolidated JV | |
Summary of our variable interests in identified VIEs | 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 September 30, 2015 (amounts in thousands): Property Type of Exposure Carrying Amount Maximum Exposure to Loss River Crossing Apartments, Sandy Springs, Georgia Land $ $ Unbilled rent receivable The Meadows Apartments, Lakemoor, Illinois Land Total $ $ |
Consolidated JV | |
Summary of our variable interests in identified VIEs | The following is a summary of the carrying amounts and classification in the Company’s consolidated balance sheets of the VIE’s accounts, none of which are restricted (amounts in thousands): September 30, December 31, 2015 2014 Land $ $ Building and improvements, net of depreciation of $275 and $17, respectively Cash Prepaid expenses and receivables Accrued expenses and other liabilities Non-controlling interest in joint venture |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Restricted share grants — — Per share grant price — — $ $ Deferred compensation to be recognized over vesting period — — $ $ Number of non-vested shares: Non-vested beginning of period Grants — — Vested during period — — ) ) Forfeitures — ) — ) Non-vested end of period The following information includes the 200,000 Units: Average per share value of non-vested shares (based on grant price) $ $ $ $ Value of shares vested during the period (based on grant price) $ — $ — $ $ The total charge to operations for all incentive plans is as follows: Outstanding restricted stock grants $ $ $ $ Outstanding restricted stock units Total charge to operations $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 $ $ $ — December 31, 2014 — Derivative financial instruments: Interest rate swaps September 30, 2015 $ — $ — $ — December 31, 2014 — Financial liabilities: Derivative financial instruments: Interest rate swaps September 30, 2015 $ $ — $ December 31, 2014 — |
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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 One Liberty Properties and Consolidated Subsidiaries Amount of loss recognized on derivatives in Other comprehensive loss $ ) $ ) $ ) $ ) Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense ) ) ) ) Unconsolidated Joint Ventures (Company’s share) Amount of (loss) gain recognized on derivatives in Other comprehensive loss $ ) $ ) $ ) Amount of loss reclassification from Accumulated other comprehensive loss into Equity in earnings of unconsolidated joint ventures ) ) ) ) |
Organization and Background (De
Organization and Background (Details) | Sep. 30, 2015stateproperty |
Organization and Background | |
Number of real estate properties | 120 |
Number of states in which properties are located | state | 31 |
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 | 5 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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 | 100,000 | 100,000 |
Underlying number of shares awarded under Pay-for-Performance program included in calculation of diluted weighted average number of shares | 200,000 | 200,000 | 200,000 | 200,000 |
Number of shares awarded under Pay-for-Performance program not included in diluted weighted average number of shares | 100,000 | 100,000 | 100,000 | 100,000 |
Numerator for basic and diluted earnings per share: | ||||
Income from continuing operations | $ 3,791 | $ 2,647 | $ 16,712 | $ 10,596 |
Less net income attributable to non-controlling interests | (3) | (27) | (1,386) | (76) |
Less earnings allocated to unvested restricted stock | (210) | (178) | (631) | (534) |
Income from continuing operations available for common stockholders | 3,578 | 2,442 | 14,695 | 9,986 |
Discontinued operations | 13 | |||
Net income available for common stockholders, basic | 3,578 | 2,442 | 14,695 | 9,999 |
Net income available for common stockholders, diluted | $ 0 | $ 2,442 | $ 0 | $ 9,999 |
Denominator for basic earnings per share: | ||||
Weighted average common shares | 16,014,000 | 15,650,000 | 15,892,000 | 15,508,000 |
Effect of diluted securities: | ||||
Restricted stock units awarded under Pay-for-Performance program (in shares) | 100,000 | 100,000 | 100,000 | 100,000 |
Denominator for diluted earnings per share - weighted average shares | 16,114,000 | 15,750,000 | 15,992,000 | 15,608,000 |
Earnings per common share, basic (in dollars per share) | $ 0.22 | $ 0.16 | $ 0.92 | $ 0.64 |
Earnings per common share, diluted (in dollars per share) | $ 0.22 | $ 0.16 | $ 0.92 | $ 0.64 |
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests: | ||||
Income from continuing operations | $ 3,788 | $ 2,620 | $ 15,326 | $ 10,520 |
Income from discontinued operations | 13 | |||
Net income attributable to One Liberty Properties, Inc. | $ 3,788 | $ 2,620 | $ 15,326 | $ 10,533 |
Real Estate Acquisitions (Detai
Real Estate Acquisitions (Details) | Mar. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)tenantitem | Sep. 30, 2014USD ($) |
Real Estate Acquisitions | |||||||
Contract purchase price (interest in joint venture) | $ 12,686,000 | ||||||
Third Party Real Estate Acquisition Costs | $ 90,000 | $ 83,000 | 417,000 | $ 211,000 | |||
Contributions from non-controlling interests | 713,000 | $ 306,000 | |||||
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 | 25,306,000 | 25,306,000 | |||||
Building | 52,307,000 | 52,307,000 | |||||
Building Improvements | 2,114,000 | 2,114,000 | |||||
Intangible Lease Asset | 5,780,000 | 5,780,000 | |||||
Intangible Lease Liability | (5,366,000) | (5,366,000) | |||||
Total | $ 80,141,000 | $ 80,141,000 | |||||
Number of tenants in the property | tenant | 1 | ||||||
Weighted average amortization period for intangible lease assets | 7 years 1 month 6 days | ||||||
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 (real estate) | $ 17,485,000 | ||||||
Mortgage incurred | 11,853,000 | ||||||
Third Party Real Estate Acquisition Costs | $ 184,000 | ||||||
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 | item | 29 | ||||||
Percentage of property leased to tenants | 92.00% | ||||||
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% | |||||
Ownership interest in consolidated joint venture of non-controlling interest (as a percent) | 10.00% | 10.00% | |||||
Contributions from non-controlling interests | $ 663,000 | ||||||
Interline Brands distribution facility, Louisville, Kentucky | |||||||
Real Estate Acquisitions | |||||||
Contract purchase price (real estate) | 4,400,000 | ||||||
Mortgage incurred | 2,640,000 | ||||||
Third Party Real Estate Acquisition Costs | $ 42,000 | ||||||
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 (real estate) | $ 9,300,000 | 9,300,000 | |||||
Capitalized transaction costs incurred with the asset acquisition | 263,000 | 263,000 | |||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 9,563,000 | 9,563,000 | |||||
Total | $ 9,563,000 | $ 9,563,000 | |||||
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 | $ 3,768,000 | $ 3,768,000 | |||||
Building | 11,262,000 | 11,262,000 | |||||
Building Improvements | 570,000 | 570,000 | |||||
Intangible Lease Asset | 922,000 | 922,000 | |||||
Intangible Lease Liability | (3,929,000) | (3,929,000) | |||||
Total | 12,593,000 | 12,593,000 | |||||
Shopko retail store, Lincoln, Nebraska | Consolidated JV | |||||||
Real Estate Acquisitions | |||||||
Percentage of equity method investments control obtained | 100.00% | ||||||
Purchase price fair value adjustment | $ 960,000 | ||||||
Shopko retail store, Lincoln, Nebraska | Unconsolidated JV | |||||||
Real Estate Acquisitions | |||||||
Contract purchase price (interest in joint venture) | 6,300,000 | ||||||
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 (real estate) | 73,585,000 | ||||||
Third Party Real Estate Acquisition Costs | 417,000 | ||||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 25,294,000 | 25,294,000 | |||||
Building | 52,288,000 | 52,288,000 | |||||
Building Improvements | 2,114,000 | 2,114,000 | |||||
Intangible Lease Asset | 5,780,000 | 5,780,000 | |||||
Intangible Lease Liability | (5,335,000) | (5,335,000) | |||||
Total | 80,141,000 | 80,141,000 | |||||
Other | |||||||
Real Estate Acquisitions | |||||||
Third Party Real Estate Acquisition Costs | 50,000 | ||||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 12,000 | 12,000 | |||||
Building | 19,000 | 19,000 | |||||
Intangible Lease Liability | (31,000) | (31,000) | |||||
Land - River Crossing Apartments, Sandy Springs, Georgia | |||||||
Real Estate Acquisitions | |||||||
Contract purchase price (real estate) | $ 6,510,000 | ||||||
Archway Roofing industrial facility, Louisville, Kentucky | |||||||
Real Estate Acquisitions | |||||||
Contract purchase price (real estate) | 300,000 | ||||||
Third Party Real Estate Acquisition Costs | 15,000 | ||||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 51,000 | 51,000 | |||||
Building | 221,000 | 221,000 | |||||
Building Improvements | 9,000 | 9,000 | |||||
Intangible Lease Asset | 19,000 | 19,000 | |||||
Total | 300,000 | 300,000 | |||||
JCIM - Industrial facility, McCalla, Alabama | |||||||
Real Estate Acquisitions | |||||||
Contract purchase price (real estate) | 16,750,000 | ||||||
Third Party Real Estate Acquisition Costs | 45,000 | ||||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | 1,601,000 | 1,601,000 | |||||
Building | 14,618,000 | 14,618,000 | |||||
Building Improvements | 180,000 | 180,000 | |||||
Intangible Lease Asset | 474,000 | 474,000 | |||||
Intangible Lease Liability | (123,000) | (123,000) | |||||
Total | $ 16,750,000 | 16,750,000 | |||||
FedEx And CHEP USA distribution facility, Delport Located In St Louis Missouri | |||||||
Real Estate Acquisitions | |||||||
Contract purchase price (real estate) | 19,050,000 | ||||||
Mortgage incurred | 12,383,000 | ||||||
Third Party Real Estate Acquisition Costs | $ 81,000 | ||||||
Interest rate (as a percent) | 3.85% | 3.85% | |||||
Allocation of purchase price for the company's real estate acquisitions | |||||||
Land | $ 3,728,000 | $ 3,728,000 | |||||
Building | 12,456,000 | 12,456,000 | |||||
Building Improvements | 550,000 | 550,000 | |||||
Intangible Lease Asset | 2,777,000 | 2,777,000 | |||||
Intangible Lease Liability | (461,000) | (461,000) | |||||
Total | $ 19,050,000 | $ 19,050,000 | |||||
Number of tenant spaces at the property | item | 2 | ||||||
Percentage of property leased to tenants | 100.00% |
Sale and Disposal of Properti36
Sale and Disposal of Properties, Discontinued Operations and Impairment ( Details) | Jan. 13, 2015USD ($) | Feb. 03, 2014USD ($)property | Dec. 31, 2013USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Sale and Disposal of Properties, Discontinued Operations and Impairment | ||||||
Net proceeds from sale of real estate | $ 16,025,000 | $ 5,177,000 | ||||
Impairment charge | $ 1,093,000 | 1,093,000 | ||||
Income from discontinued operations | 13,000 | |||||
Property located in Cherry Hill, NJ | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Consolidated JV | ||||||
Sale and Disposal of Properties, Discontinued Operations and Impairment | ||||||
Net proceeds from sale of real estate | $ 16,025,000 | |||||
Gain (loss) on sale of property | 5,392,000 | |||||
Mortgage balance paid off | 7,376,000 | |||||
Swap termination expense | 472,000 | |||||
Write-off of deferred financing costs | 249,000 | |||||
Property located in Cherry Hill, NJ | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Consolidated JV | Non-Controlling Interests in Joint Ventures | ||||||
Sale and Disposal of Properties, Discontinued Operations and Impairment | ||||||
Non-controlling interest's share of income from the transaction | $ 1,320,000 | |||||
Property located in Michigan. | Discontinued Operations, Disposed of by Sale | ||||||
Sale and Disposal of Properties, Discontinued Operations and Impairment | ||||||
Net proceeds from sale of real estate | $ 5,177,000 | |||||
Number of properties under contract of sale | property | 2 | |||||
Impairment charge | $ 61,700 | |||||
Income from discontinued operations | 13,000 | |||||
Rental income | 141,000 | |||||
Real estate expenses | 17,000 | |||||
Mortgage interest | 111,000 | |||||
Property located in Morrow, Georgia. | ||||||
Sale and Disposal of Properties, Discontinued Operations and Impairment | ||||||
Impairment charge | $ 1,093,000 | $ 1,093,000 |
Variable Interest Entities, C37
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($)item | Jun. 30, 2014USD ($)item | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Variable Interest Entities | ||||||||
Mortgage debt | $ 325,601,000 | $ 325,601,000 | $ 325,601,000 | $ 292,049,000 | ||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||||
Carrying Amount | 16,532,000 | 16,532,000 | 16,532,000 | |||||
Unbilled rent receivable | 13,707,000 | 13,707,000 | 13,707,000 | 12,815,000 | ||||
Maximum Exposure to Loss | 16,532,000 | 16,532,000 | 16,532,000 | |||||
Restricted cash | 1,108,000 | 1,108,000 | 1,108,000 | 1,607,000 | ||||
Land | 25,306,000 | 25,306,000 | 25,306,000 | |||||
Accrued expenses and other liabilities | 15,243,000 | 15,243,000 | 15,243,000 | 12,451,000 | ||||
Non-controlling interests in joint ventures | 2,078,000 | 2,078,000 | 2,078,000 | 1,628,000 | ||||
Investment in unconsolidated joint ventures | 11,273,000 | 11,273,000 | 11,273,000 | 4,907,000 | ||||
Impairment charge | $ 1,093,000 | $ 1,093,000 | ||||||
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% | |||||||
Land | 3,815,000 | 3,815,000 | 3,815,000 | 3,805,000 | ||||
Buildings and improvements, net of depreciation | 7,909,000 | 8,069,000 | ||||||
Cash | 824,000 | 824,000 | 824,000 | 527,000 | ||||
Prepaid expenses and receivables | 56,000 | 56,000 | 56,000 | 42,000 | ||||
Accrued expenses and other liabilities | 120,000 | 120,000 | 120,000 | 152,000 | ||||
Non-controlling interests in joint ventures | $ 323,000 | $ 323,000 | 323,000 | 312,000 | ||||
Depreciation | $ 275,000 | 17,000 | ||||||
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 | item | 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% | 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% | 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 | item | 5 | |||||||
Investment in consolidated joint ventures | $ 19,240,000 | $ 19,240,000 | $ 19,240,000 | |||||
MCB Real Estate LLC And Its Affiliates | Consolidated JV | Pathmark supermarket in Philadelphia, Pennsylvania | ||||||||
Variable Interest Entities | ||||||||
Mortgage debt | 4,500,000 | 4,500,000 | 4,500,000 | |||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||||
Investment in consolidated joint ventures | 3,100,000 | 3,100,000 | $ 3,100,000 | |||||
Wrote off of straight line rent | 89,000 | |||||||
Wrote off of intangible lease liabilities | 124,000 | |||||||
Increase in rental income | 35,000 | |||||||
Wrote off of tenant origination costs | 380,000 | |||||||
Percentage of rental income | 1.30% | |||||||
Land - The Meadows Apartments, Lakemoor, Illinois | ||||||||
Variable Interest Entities | ||||||||
Contract purchase price (real estate) | $ 9,300,000 | $ 9,300,000 | ||||||
Number of apartment units in the complex purchased | item | 496 | |||||||
Mortgage debt | 43,824,000 | 43,824,000 | 43,824,000 | |||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||||
Land | 9,563,000 | 9,563,000 | 9,563,000 | |||||
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 | 9,563,000 | 9,563,000 | 9,563,000 | |||||
Maximum Exposure to Loss | 9,563,000 | 9,563,000 | 9,563,000 | |||||
Land - River Crossing Apartments, Sandy Springs, Georgia | ||||||||
Variable Interest Entities | ||||||||
Contract purchase price (real estate) | $ 6,510,000 | |||||||
Number of apartment units in the complex purchased | item | 196 | |||||||
Mortgage debt | 16,230,000 | 16,230,000 | 16,230,000 | |||||
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | ||||||||
Additional reserve received for tenant improvements | 39,000 | 39,000 | ||||||
Restricted cash for tenant improvements and other reserve, net | $ 1,894,000 | (538,000) | 0 | |||||
Restricted cash | 1,108,000 | 1,108,000 | 1,108,000 | $ 1,607,000 | ||||
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 | 6,528,000 | |||||
Maximum Exposure to Loss | 6,528,000 | 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 | 441,000 | 441,000 | 441,000 | |||||
Maximum Exposure to Loss | $ 441,000 | 441,000 | 441,000 | |||||
The Meadows Apartments, Lakemoor, Illinois and River Crossing Apartments, Sandy Springs, Georgia | ||||||||
Variable Interest Entities | ||||||||
Revenue from the ground lease | $ 460,000 | $ 232,000 | $ 1,166,000 | $ 299,000 |
Investment in Unconsolidated 38
Investment in Unconsolidated Joint Ventures (Details) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($)property | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)propertyitem | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)propertyitem |
Investment in Unconsolidated Joint Ventures | |||||||
Number of unconsolidated joint ventures | item | 5 | 5 | |||||
Number of properties owned and operated by each unconsolidated joint venture | property | 1 | 1 | 1 | ||||
Equity in earnings of unconsolidated joint ventures | $ 347,000 | $ 134,000 | $ 311,000 | $ 397,000 | |||
Variable Interest Entities | |||||||
Payments to acquire interest in joint venture | 12,686,000 | ||||||
Investment in unconsolidated joint ventures | 11,273,000 | 11,273,000 | $ 4,907,000 | ||||
Shopko retail stores, Lincoln, Nebraska | |||||||
Variable Interest Entities | |||||||
Percentage of equity method investments acquired | 50.00% | ||||||
Payments to acquire interest in joint venture | $ 6,300,000 | ||||||
Retail center located in Manahawkin, New Jersey | |||||||
Variable Interest Entities | |||||||
Percentage of equity method investments acquired | 50.00% | ||||||
Payments to acquire interest in joint venture | $ 43,500,000 | ||||||
Debt financed | $ 26,100,000 | ||||||
Annual fixed interest rate (as a percent) | 4.00% | ||||||
Investment in unconsolidated joint ventures | $ 8,808,000 | 8,808,000 | |||||
Company share of acquisition expense | $ 400,000 |
Lease Termination Fee Income (D
Lease Termination Fee Income (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | |
Lease termination fee received from a retail tenant in a lease buy-out transaction | $ 650,000 | $ 1,269,000 | |||
Write-off of entire balance of the unbilled rent receivable and the intangible lease asset | $ 150,000 | ||||
Write-off of entire balance of the unbilled rent receivable | $ 226,000 | $ 315,000 | |||
Subsequent event | |||||
Lease termination fee received from a retail tenant in a lease buy-out transaction | $ 1,286,000 | ||||
Write-off of entire balance of the unbilled rent receivable and the intangible lease asset | $ 179,000 |
Allowance for Doubtful Accoun40
Allowance for Doubtful Accounts (Details) - USD ($) | Sep. 30, 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 ($) | 9 Months Ended | ||
Sep. 30, 2015 | Nov. 03, 2015 | Dec. 31, 2014 | |
Line of Credit | |||
Line of credit | $ 35,750,000 | $ 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 | $ 35,750,000 | $ 23,250,000 | 13,250,000 |
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) | 1.93% | ||
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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Majestic | ||||
Related Party Transaction | ||||
Quarterly fees under compensation and services agreement | $ 633,750 | $ 602,500 | $ 1,901,000 | $ 2,252,000 |
Overhead expenses under compensation and services agreement | 48,900 | 46,600 | ||
Management fees under compensation and services agreement | 223,125 | 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 | ||||
Insurance Reimbursement | 513,000 | 400,000 | 513,000 | 400,000 |
Share of property insurance premiums | 121,000 | 86,000 | 235,000 | 186,000 |
Joint venture partners | ||||
Related Party Transaction | ||||
Real estate management and acquisition costs | $ 64,000 | $ 10,000 | 528,000 | $ 31,000 |
Financing fee received | $ 131,000 | |||
Percentage of financing fees in Other Income | 50.00% |
Common Stock Cash Dividend (Det
Common Stock Cash Dividend (Details) - USD ($) | Sep. 10, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Common Stock Cash Dividend | |||
Quarterly cash distributions declared per share of common stock (in dollars per share) | $ 0.39 | ||
Quarterly cash dividend declared | $ 6,476,000 | $ 19,277,000 | $ 17,796,000 |
Shares Issued Through Equity 44
Shares Issued Through Equity Offering Program (Details) - USD ($) | Oct. 07, 2015 | Mar. 20, 2014 | Sep. 30, 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 (in shares) | 33,103 | 135,000 | |
Proceeds from sale of shares, net of commission and before offering costs | $ 725,200 | $ 3,013,400 | |
Payment of commissions on sale of shares | $ 7,300 | 30,400 | |
Payment of offering costs on sale of shares | $ 79,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Total charge to operations and other disclosure for all incentive plans, including the 200,000 Units, is as follows: | ||||
Share based compensation charged to operations | $ 580,000 | $ 448,000 | $ 1,742,000 | $ 1,368,000 |
Compensation costs related to non-vested awards that have not yet been recognized | $ 6,311,000 | $ 6,311,000 | ||
Approximate weighted average vesting period | 2 years 3 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) | 538,990 | 481,045 | 480,995 | 470,015 |
Grants (in shares) | 129,975 | 118,850 | ||
Vested during period (in shares) | (71,980) | (101,300) | ||
Forfeitures (in shares) | (50) | (6,570) | ||
Non-vested end of period (in shares) | 538,990 | 480,995 | 538,990 | 480,995 |
Total charge to operations and other disclosure for all incentive plans, including the 200,000 Units, is as follows: | ||||
Average per share value of non-vested shares (based on grant price) (in dollars per share) | $ 17.12 | $ 14.55 | $ 17.12 | $ 14.55 |
Value of shares vested during the period (based on grant price) | $ 607,000 | $ 621,000 | ||
Share based compensation charged to operations | $ 550,000 | $ 419,000 | 1,653,000 | 1,281,000 |
Restricted stock units | ||||
Total charge to operations and other disclosure for all incentive plans, including the 200,000 Units, is as follows: | ||||
Share based compensation charged to operations | $ 30,000 | $ 29,000 | $ 89,000 | $ 87,000 |
2012 Incentive Plan | ||||
Stock Based Compensation | ||||
Number of shares authorized for issuance | 600,000 | 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) | 380,000 | 380,000 | ||
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 | 200,000 | ||
Total charge to operations and other disclosure 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 | $ 207,000 | $ 207,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
May. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Nov. 03, 2015 | |
Fair Value of Financial Instruments | |||||
Carrying amount | $ 35,750,000 | $ 13,250,000 | |||
Available-for-sale securities | |||||
Aggregate cost of available-for-sale securities | 5,300 | ||||
Proceeds from shares sold to related party | $ 266,000 | ||||
Gain on shares sold to related party | $ 134,000 | ||||
Unrealized gain on available-for-sale securities | 25,700 | ||||
Facility | |||||
Fair Value of Financial Instruments | |||||
Carrying amount | 35,750,000 | 13,250,000 | $ 23,250,000 | ||
Recurring | |||||
Available-for-sale securities: | |||||
Available-for-sale Securities, Equity Securities | 31,000 | 29,000 | |||
Recurring | Interest rate swap | |||||
Available-for-sale securities: | |||||
Derivative financial instruments | 27,000 | ||||
Financial liabilities: | |||||
Derivative financial instruments | 5,705,000 | 3,139,000 | |||
Recurring | Level 1 | |||||
Available-for-sale securities: | |||||
Available-for-sale Securities, Equity Securities | 31,000 | 29,000 | |||
Recurring | Level 2 | Interest rate swap | |||||
Available-for-sale securities: | |||||
Derivative financial instruments | 27,000 | ||||
Financial liabilities: | |||||
Derivative financial instruments | 5,705,000 | 3,139,000 | |||
BRT Realty Trust | Gould Investors L.P. | |||||
Available-for-sale securities | |||||
Number of shares sold to related party | 37,081 | ||||
Proceeds from shares sold to related party | $ 266,000 | ||||
Period based on which average of the closing prices considered for proceeds from related party | 30 days | ||||
Cost of shares sold to related party | $ 132,000 | ||||
Gain on shares sold to related party | 134,000 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ 132,000 | ||||
Mortgages payable | |||||
Fair Value of Financial Instruments | |||||
Estimated fair value of mortgages payable | 336,157,000 | 300,541,000 | |||
Excess of fair value over carrying value | $ 10,556,000 | $ 8,492,000 | |||
Blended or estimated market interest rate (as a percent) | 4.20% | 4.50% | |||
Weighted average remaining term of the mortgages | 9 years 1 month 6 days | 9 years 1 month 6 days |
Fair Value Measurements (Deta47
Fair Value Measurements (Details 2) - Interest rate derivatives - Cash flow hedges | 9 Months Ended |
Sep. 30, 2015USD ($)item | |
Fair Value Measurements | |
Number of interest rate derivatives held | 24 |
Number of mortgage loans outstanding | 24 |
Notional Amount | $ | $ 117,401,000 |
Weighted average maturity | 7 years 7 months 6 days |
Fixed annual interest rate lower end of range (as a percent) | 3.55% |
Fixed annual interest rate higher end of range (as a percent) | 5.75% |
Weighted average annual interest rate (as a percent) | 4.66% |
Fair Value Measurements (Deta48
Fair Value Measurements (Details 3) - Derivatives designated as hedging instruments - Interest rate swap - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Measurements | ||
Fair value of derivatives assets | $ 0 | $ 27,000 |
Fair value of derivatives liabilities | $ 5,705,000 | $ 3,139,000 |
Fair Value Measurements (Deta49
Fair Value Measurements (Details 4) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | |
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 | item | 1 | |||
Cash flow hedges | ||||
Reclassification of gain (loss) | ||||
Gain or loss recognized with respect to cash flow hedges' ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 |
Interest rate swap | Cash flow hedges | ||||
Fair Value Measurements | ||||
Amount of gain (loss) recognized on derivative in Other comprehensive loss | (3,609,000) | (357,000) | (4,500,000) | (2,765,000) |
Amount of loss reclassification from Accumulated other comprehensive loss into Interest Expense | (574,000) | (476,000) | $ (1,921,000) | (1,300,000) |
Reclassification of gain (loss) | ||||
Number of interest rate derivative instruments terminated | item | 1 | |||
Accelerated amount of loss | $ 472,000 | |||
Additional amount to be reclassified to interest expense during the next twelve months | 2,272,000 | |||
Credit risk related contingent feature | ||||
Fair value of derivative in a liability position, including accrued interest and excluding adjustments for nonperformance risk | 6,101,000 | 6,101,000 | ||
Termination value of derivative agreement | $ 6,101,000 | 6,101,000 | ||
Adjustments for nonperformance risk | $ 396,000 | |||
Interest rate swap | Cash flow hedges | Unconsolidated JV | ||||
Fair Value Measurements | ||||
Number of unconsolidated joint ventures of the entity with interest rate derivatives outstanding | item | 3 | |||
Percentage of ownership in unconsolidated joint venture | 50.00% | 50.00% | ||
Number interest rate derivatives outstanding | item | 2 | 2 | ||
Notional Amount | $ 11,050,000 | $ 11,050,000 | ||
Amount of gain (loss) recognized on derivative in Other comprehensive loss | (122,000) | 11,000 | (147,000) | (37,000) |
Amount of loss reclassification from Accumulated other comprehensive loss into Equity in earnings | $ (29,000) | $ (28,000) | $ (80,000) | $ (83,000) |
Interest rate swap | Cash flow hedges | Unconsolidated JV | Minimum | ||||
Fair Value Measurements | ||||
Fixed Interest Rate (as a percent) | 3.49% | 3.49% | ||
Interest rate swap | Cash flow hedges | Unconsolidated JV | Maximum | ||||
Fair Value Measurements | ||||
Fixed Interest Rate (as a percent) | 5.81% | 5.81% | ||
Interest rate swap | Cash flow hedges | Accrued Expenses And Other Liabilities Member | ||||
Credit risk related contingent feature | ||||
Termination value of derivative agreement | $ 5,705,000 | $ 5,705,000 |