Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
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, 2016 | |
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 | 17,730,430 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Real estate investments, at cost | ||
Land | $ 212,668,000 | $ 186,994,000 |
Buildings and improvements | 537,140,000 | 460,379,000 |
Total real estate investments, at cost | 749,808,000 | 647,373,000 |
Less accumulated depreciation | 93,255,000 | 85,116,000 |
Real estate investments, net | 656,553,000 | 562,257,000 |
Properties held-for-sale | 12,259,000 | |
Investment in unconsolidated joint ventures | 10,993,000 | 11,350,000 |
Cash and cash equivalents | 17,645,000 | 12,736,000 |
Restricted cash | 836,000 | 1,074,000 |
Unbilled rent receivable (including $712 related to properties held-for-sale in 2015) | 13,323,000 | 13,577,000 |
Unamortized intangible lease assets, net | 33,931,000 | 28,978,000 |
Escrow, deposits and other assets and receivables | 6,046,000 | 4,268,000 |
Total assets | 739,327,000 | 646,499,000 |
Liabilities: | ||
Mortgages payable, net of $4,118 and $3,373 deferred financing costs, respectively | 396,676,000 | 331,055,000 |
Line of credit, net of $380 and $506 deferred financing costs, respectively | 22,420,000 | 17,744,000 |
Dividends payable | 7,245,000 | 6,901,000 |
Accrued expenses and other liabilities | 18,843,000 | 13,852,000 |
Unamortized intangible lease liabilities, net | 19,821,000 | 14,521,000 |
Total liabilities | 465,005,000 | 384,073,000 |
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; 17,074 and 16,292 shares issued and outstanding | 17,074,000 | 16,292,000 |
Paid-in capital | 250,257,000 | 232,378,000 |
Accumulated other comprehensive loss | (9,671,000) | (4,390,000) |
Accumulated undistributed net income | 14,912,000 | 16,215,000 |
Total One Liberty Properties, Inc. stockholders' equity | 272,572,000 | 260,495,000 |
Non-controlling interests in consolidated joint ventures | 1,750,000 | 1,931,000 |
Total equity | 274,322,000 | 262,426,000 |
Total liabilities and equity | $ 739,327,000 | $ 646,499,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Unbilled rent receivable related to properties held-for-sale in 2015 | $ 712 | |
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 | 17,074 | 16,292 |
Common stock, shares outstanding | 17,074 | 16,292 |
Line of credit | ||
Deferred financing costs | $ 380 | $ 506 |
Mortgages payable | ||
Deferred financing costs | $ 4,118 | $ 3,373 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Rental income, net | $ 16,334,000 | $ 15,273,000 | $ 46,985,000 | $ 44,159,000 |
Tenant reimbursements | 1,687,000 | 835,000 | 4,614,000 | 2,407,000 |
Lease termination fee | 650,000 | |||
Total revenues | 18,021,000 | 16,108,000 | 51,599,000 | 47,216,000 |
Operating expenses: | ||||
Depreciation and amortization | 4,663,000 | 4,435,000 | 13,246,000 | 12,090,000 |
General and administrative (see Note 11 for related party information) | 2,681,000 | 2,350,000 | 7,961,000 | 7,132,000 |
Real estate expenses (see Note 11 for related party information) | 2,188,000 | 1,415,000 | 6,521,000 | 4,022,000 |
Real estate acquisition costs (see Note 11 for related party information) | 162,000 | 90,000 | 610,000 | 417,000 |
Federal excise and state taxes | 43,000 | 68,000 | 198,000 | 266,000 |
Leasehold rent | 77,000 | 77,000 | 231,000 | 231,000 |
Total operating expenses | 9,814,000 | 8,435,000 | 28,767,000 | 24,158,000 |
Operating income | 8,207,000 | 7,673,000 | 22,832,000 | 23,058,000 |
Other income and expenses: | ||||
Gain on sales of real estate, net | 119,000 | 9,824,000 | 5,392,000 | |
Purchase price fair value adjustment | 960,000 | |||
Prepayment costs on debt | (577,000) | (568,000) | ||
Equity in earnings of unconsolidated joint ventures | 228,000 | 347,000 | 794,000 | 311,000 |
Other income | 362,000 | 2,000 | 431,000 | 77,000 |
Interest: | ||||
Expense | (4,404,000) | (4,044,000) | (12,593,000) | (11,690,000) |
Amortization and write-off of deferred financing costs | (189,000) | (187,000) | (644,000) | (828,000) |
Net income | 4,323,000 | 3,791,000 | 20,067,000 | 16,712,000 |
Net income attributable to non-controlling interests | (24,000) | (3,000) | (40,000) | (1,386,000) |
Net income attributable to One Liberty Properties, Inc. | $ 4,299,000 | $ 3,788,000 | $ 20,027,000 | $ 15,326,000 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 16,845 | 16,014 | 16,605 | 15,892 |
Diluted (in shares) | 16,962 | 16,114 | 16,722 | 15,992 |
Per common share attributable to common stockholders - basic: | $ 0.24 | $ 0.22 | $ 1.16 | $ 0.92 |
Per common share attributable to common stockholders - diluted: | 0.24 | 0.22 | 1.15 | 0.92 |
Cash distributions declared per share of common stock | $ 0.41 | $ 0.39 | $ 1.23 | $ 1.17 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 4,323 | $ 3,791 | $ 20,067 | $ 16,712 |
Other comprehensive gain/loss | ||||
Net unrealized gain on available-for-sale securities | 1 | 2 | ||
Reclassification of gain on available-for-sale securities included in net income | (27) | |||
Net unrealized gain (loss) on derivative instruments | 1,018 | (3,035) | (5,177) | (2,579) |
One Liberty Properties Inc.'s share of joint venture net unrealized gain (loss) on derivative instruments | 44 | (93) | (92) | (67) |
Other comprehensive gain (loss) | 1,062 | (3,127) | (5,296) | (2,644) |
Comprehensive income | 5,385 | 664 | 14,771 | 14,068 |
Net income attributable to non-controlling interests | (24) | (3) | (40) | (1,386) |
Adjustment for derivative instruments attributable to non-controlling interests | (5) | 13 | 15 | (21) |
Comprehensive income attributable to One Liberty Properties, Inc. | $ 5,356 | $ 674 | $ 14,746 | $ 12,661 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock | Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Undistributed Net Income | Non-Controlling Interests in Consolidated Joint Ventures | Total |
Balances at Dec. 31, 2014 | $ 15,728 | $ 219,867 | $ (3,195) | $ 21,876 | $ 1,628 | $ 255,904 |
Distributions - common stock | ||||||
Cash - $1.23 and $1.17 per share for the nine months ended September 30, 2016, and nine months ended September 30, 2015, 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 |
Balances at Dec. 31, 2015 | 16,292 | 232,378 | (4,390) | 16,215 | 1,931 | 262,426 |
Distributions - common stock | ||||||
Cash - $1.23 and $1.17 per share for the nine months ended September 30, 2016, and nine months ended September 30, 2015, respectively | (21,330) | (21,330) | ||||
Shares issued through equity offering program - net | 608 | 13,689 | 14,297 | |||
Restricted stock vesting | 73 | (73) | ||||
Shares issued through dividend reinvestment plan | 101 | 2,087 | 2,188 | |||
Contributions from non-controlling interests | 30 | 30 | ||||
Distributions to non-controlling interests | (236) | (236) | ||||
Compensation expense - restricted stock | 2,176 | 2,176 | ||||
Net income | 20,027 | 40 | 20,067 | |||
Other comprehensive gain (loss) | (5,281) | (15) | (5,296) | |||
Balances at Sep. 30, 2016 | $ 17,074 | $ 250,257 | $ (9,671) | $ 14,912 | $ 1,750 | $ 274,322 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||
Distributions - common stock, Cash per share (in dollars per share) | $ 0.41 | $ 0.39 | $ 1.23 | $ 1.17 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 20,067,000 | $ 16,712,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sales of real estate, net | (9,824,000) | (5,392,000) |
Purchase price fair value adjustment | (960,000) | |
Gain on available-for-sale securities | (27,000) | |
Increase in unbilled rent receivable | (1,757,000) | (1,327,000) |
Write-off of unbilled rent receivable | 7,000 | 315,000 |
Decrease in rental income and tenant reimbursements resulting from bad debt expense | 190,000 | |
Amortization of intangibles relating to leases, net | (465,000) | (621,000) |
Amortization of restricted stock expense | 2,176,000 | 1,742,000 |
Equity in earnings of unconsolidated joint ventures | (794,000) | (311,000) |
Distributions of earnings from unconsolidated joint ventures | 755,000 | 465,000 |
Depreciation and amortization | 13,246,000 | 12,090,000 |
Amortization and write-off of deferred financing costs | 644,000 | 828,000 |
Payment of leasing commissions | (1,041,000) | (709,000) |
Increase in escrow, deposits, other assets and receivables | (1,153,000) | (178,000) |
Decrease in accrued expenses and other liabilities | (121,000) | 662,000 |
Net cash provided by operating activities | 21,903,000 | 23,316,000 |
Cash flows from investing activities: | ||
Purchase of real estate | (118,589,000) | (67,548,000) |
Improvements to real estate | (3,900,000) | (2,479,000) |
Net proceeds from sales of real estate | 40,207,000 | 16,025,000 |
Purchase of partner's interest in unconsolidated joint venture | (6,300,000) | |
Investment in unconsolidated joint ventures | (12,686,000) | |
Net proceeds from sale of available-for-sale securities | 33,000 | |
Distributions of capital from unconsolidated joint ventures | 305,000 | 761,000 |
Net cash used in investing activities | (81,944,000) | (72,227,000) |
Cash flows from financing activities: | ||
Scheduled amortization payments of mortgages payable | (6,621,000) | (5,679,000) |
Repayment of mortgages payable | (38,115,000) | (25,308,000) |
Proceeds from mortgage financings | 111,102,000 | 66,005,000 |
Proceeds from sale of common stock, net | 14,297,000 | 2,934,000 |
Proceeds from bank line of credit | 86,000,000 | 45,400,000 |
Repayment on bank line of credit | (81,450,000) | (22,900,000) |
Issuance of shares through dividend reinvestment plan | 2,188,000 | 3,085,000 |
Payment of financing costs | (1,260,000) | (996,000) |
Capital contribution from non-controlling interests | 30,000 | 713,000 |
Distributions to non-controlling interests | (236,000) | (1,670,000) |
Cash distributions to common stockholders | (20,985,000) | (19,121,000) |
Net cash provided by financing activities | 64,950,000 | 42,463,000 |
Net increase (decrease) in cash and cash equivalents | 4,909,000 | (6,448,000) |
Cash and cash equivalents at beginning of year | 12,736,000 | 20,344,000 |
Cash and cash equivalents at end of period | 17,645,000 | 13,896,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest expense | 12,590,000 | 11,830,000 |
Cash paid during the period for Federal excise tax | 190,000 | 300,000 |
Supplemental schedule of non-cash investing and financing activities: | ||
Mortgage debt extinguished upon conveyance of the Company's Morrow, Georgia property to mortgagee by deed-in-lieu of foreclosure | 1,466,000 | |
Consolidation of real estate investment | 2,633,000 | |
Purchase accounting allocation - intangible lease assets | 8,194,000 | 5,780,000 |
Purchase accounting allocation - intangible lease liabilities | $ (6,288,000) | $ (5,366,000) |
Organization and Background
Organization and Background | 9 Months Ended |
Sep. 30, 2016 | |
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 consisting primarily of retail, industrial, flex and health and fitness properties, many of which are subject to long-term net leases. As of September 30, 2016, 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 30 states. |
Summary Accounting Policies
Summary Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 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, 2015. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. OLP and its consolidated subsidiaries are hereinafter referred to as the “Company”. Material intercompany items and transactions have been eliminated in consolidation. Investment in Joint Ventures and 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. 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, or the right to receive benefits, of the VIE that could potentially be significant to the VIE. On January 1, 2016, the Company adopted ASU 2015-02, Amendments to the Consolidation Analysis , which amends the current consolidation guidance. The ASU introduces 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 or participating rights (see Note 6). Consistent with the adoption of ASU 2015-02, the Company assesses the accounting treatment for each of its investments, including a review of each venture or limited liability company or partnership agreement to determine the rights of each party and whether those rights are protective or participating. Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. 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. Leases may contain certain protective rights, such as the right of sale and the receipt of certain escrow deposits. In situations where the Company jointly (i) approves the annual budget, (ii) approves certain expenditures, (iii) prepares or reviews and approves the joint venture’s tax return before filing, and (iv) approves each lease at a property, among other things, the Company does not consolidate as the Company considers these to be substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the joint venture or property. The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in unconsolidated 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 VIEs. In addition, the Company has shared power with its co-managing members 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. The Company has elected to follow the cumulative earnings approach when assessing, for the consolidated statement of cash flows, whether the distribution from the investee is a return of the investor’s investment as compared to a return on its investment. The source of the cash generated by the investee to fund the distribution is not a factor in the analysis (that is, it does not matter whether the cash was generated through investee refinancing, sale of assets or operating results). Consequently, the investor only considers the relationship between the cash received from the investee to its equity in the undistributed earnings of the investee, on a cumulative basis, in assessing whether the distribution from the investee is a return on or return of its investment. Cash received from the unconsolidated entity is presumed to be a return on the investment to the extent that, on a cumulative basis, distributions received by the investor are less than its share of the equity in the undistributed earnings of the entity. Properties Held-for-Sale Real estate investments are classified as properties held-for-sale when management determines that the investment meets 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, primarily to present debt issuance costs as a direct deduction from the carrying amount of the associated debt on the Company’s December 31, 2015 consolidated balance sheet. See Note 10. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
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 the applicable period. Net income is also allocated to the unvested restricted stock outstanding during each 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, 2016 and 2015, the diluted weighted average number of shares of common stock includes 117,000 and 100,000 shares, respectively (of an aggregate of 200,000 shares) of common stock underlying the restricted stock units awarded pursuant to the Pay-For-Performance program. These amounts include 100,000 shares that would be issued pursuant to a metric based on the market price and dividends paid at the end of each quarterly period, assuming the end of that quarterly period was the end of the vesting period. Of the remaining 100,000 shares of common stock underlying the restricted stock units awarded under the Pay-For-Performance program (the “ROC Shares”), 17,000 shares are included in the diluted weighted average in the three and nine months ended September 30, 2016 and, as the return on capital performance metric was not satisfied during the three and nine months ended September 30, 2015, none of the ROC Shares were included in 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 Nine Months Ended 2016 2015 2016 2015 Numerator for basic and diluted earnings per share: Net income $ $ $ $ Less net income attributable to non-controlling interests ) ) ) ) Less earnings allocated to unvested restricted stock (a) ) ) ) ) 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 $ .24 $ .22 $ $ .92 Earnings per common share, diluted $ .24 $ .22 $ $ .92 Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests $ $ $ $ (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, 2016 | |
Real Estate Acquisitions | |
Real Estate Acquisitions | Note 4 — Real Estate Acquisitions The following chart details the Company’s acquisitions of real estate during the nine months ended September 30, 2016 (amounts in thousands): Description of Property Date Acquired Contract Terms of Payment Third Party Multi-tenant industrial facility, March 30, 2016 $ All cash $ Multi-tenant industrial facility, March 30, 2016 All cash Toro distribution facility, June 3, 2016 All cash 4 Advanced Auto retail stores, June 16, 2016 Cash and $4,300 mortgage (d) Land - The Briarbrook Village Apartments, August 2, 2016 All cash — (f) Burlington Coat and Micro Center retail stores, August 12, 2016 All cash Land - The Vue Apartments, August 16, 2016 All cash — (h) Famous Footwear distribution facility, September 1, 2016 Cash and $21,288 mortgage (i) Other costs (j) — Totals $ $ (a) Included as an expense in the accompanying consolidated statement of income. (b) These properties are adjacent to one another and are each net leased to three unrelated tenants pursuant to leases that expire between 2017 and 2021. (c) The property is net leased by a single tenant pursuant to two separate coterminous leases expiring in 2022. (d) The new mortgage debt, which was obtained simultaneously with the acquisition of these properties, bears interest at 3.24% per annum, matures July 2026, and is comprised of four individual and cross-collateralized loans. The properties are net leased by a single tenant pursuant to four separate leases, three of which expire in 2026 and one of which expires in 2025. (e) These properties are net leased to related entities through 2046. See Note 6. (f) Transaction costs aggregating $6 incurred with this asset acquisition were capitalized. (g) This property is net leased to two unrelated tenants pursuant to leases expiring between 2019 and 2020. (h) Transaction costs aggregating $5 incurred with this asset acquisition were capitalized. (i) The new mortgage debt, which was obtained simultaneously with the acquisition of the property, bears interest at 3.7% per annum and matures October 2031. The property is net leased by a single tenant through 2031. (j) Costs incurred for properties purchased in 2015 and transactions that were not consummated. The following chart provides the allocation of the purchase price for the Company’s acquisitions of real estate during the nine months ended September 30, 2016 (amounts in thousands): Building Intangible Lease Description of Property Land Building Improvements Asset Liability Total Multi-tenant industrial facility, $ $ $ $ $ — $ Multi-tenant industrial facility, ) Toro distribution facility, — 4 Advanced Auto retail stores, ) Land - The Briarbrook Village Apartments, Wheaton, Illinois (a) — — — — Burlington Coat and Micro Center retail stores, ) Land - The Vue Apartments, — — — — Famous Footwear distribution facility, ) Totals $ $ $ $ $ ) $ (a) Transaction costs aggregating $6 incurred with this asset acquisition were capitalized. (b) The Company is in the process of finalizing the purchase price allocation for this property; therefore, the allocation is preliminary and subject to change. (c) Transaction costs aggregating $5 incurred with this asset acquisition were capitalized. As of September 30, 2016, the weighted average amortization period for these intangible lease assets and intangible lease liabilities is 9.6 years and 13.2 years, respectively. The Company assessed the fair value of the lease intangibles based on estimated cash flow projections that use appropriate discount rates and available market information. Such inputs are Level 3 (as defined in Note 15) in the fair value hierarchy. On March 31, 2015, the Company purchased for $6,300,000, its partner’s 50% interest in an unconsolidated joint venture that owned a property in Lincoln, Nebraska, and as a result, the Company obtained a controlling financial interest. In consolidating the investment, the Company recorded a purchase price fair value adjustment of $960,000 on the consolidated statement 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. The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company for the nine months ended September 30, 2016 and the year ended December 31, 2015 as though the purchases of the nine properties in 2016, excluding the two asset acquisitions (the Wheaton, Illinois and Beachwood, Ohio land deals), were completed on January 1, 2015. The total acquisition costs of $596,000 paid in connection with such 2016 purchases are included as a reduction of net income in the year ended December 31, 2015. This unaudited proforma information does not purport to represent what the actual results of operations of the Company would have been had such acquisitions occurred as of January 1, 2015. (Amounts in thousands, except per share data). Nine Months Ended Year Ended September 30, 2016 December 31, 2015 Pro forma revenues $ $ Pro forma net income attributable to One Liberty Properties, Inc. Pro forma weighted average number of common shares outstanding: Basic Diluted Pro forma per common share attributable to common stockholders: Basic $ $ Diluted $ $ Revenues and net income related to these nine properties already included in the results of operations for the nine months ended September 30, 2016 amounted to $2,111,000 and $136,000, respectively. Pro forma unaudited revenues and net income for the two asset acquisitions (not included in the table above) were $2,024,000 and $1,786,000, respectively, for the nine months ended September 30, 2016 and $2,700,000 and $2,344,000, respectively, for the year ended December 31, 2015. Revenues and net income related to these two properties already included in the results of operations for the nine months ended September 30, 2016 amounted to $386,000. |
Sale of Properties
Sale of Properties | 9 Months Ended |
Sep. 30, 2016 | |
Sale of Properties | |
Sale of Properties | Note 5 — Sale of Properties The following chart details the Company’s sales of real estate during the nine months ended September 30, 2016 (amounts in thousands): Gross Gain on Sales of Description of Property Date Sold Sales Price Real Estate, Net Portfolio of eight retail properties, February 1, 2016 $ $ Retail property, May 19, 2016 Land - River Crossing Apartments, June 15, 2016 Industrial property, June 30, 2016 Partial condemnation of land, July 5, 2016 Totals $ $ (a) In connection with the sale, the Company paid off the $7,801 mortgage balance on these properties and incurred a $380 expense for the early termination of the mortgage (included in Prepayment costs on debt) and a $26 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs). As a result of the sale, the Company also wrote-off, as a reduction to Gain on sale of real estate, net, $706 of unbilled straight-line rent receivable, $79 of intangible lease assets and $54 of tenant origination costs. At December 31, 2015, the Company classified the net book value of the land and buildings, intangible lease assets and tenant origination costs totaling $12,259 as Properties held-for-sale. (b) As a result of the sale, the Company wrote-off, as a reduction to Gain on sale of real estate, net, $37 of unbilled straight-line rent receivable. (c) In connection with the sale, the Company paid off the $5,272 mortgage balance on this property and incurred a $154 swap termination fee (included in Prepayment costs on debt) and a $30 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs). As a result of the sale, the Company wrote-off, as a reduction to Gain on sale of real estate, net, $1,262 of unbilled straight-line rent receivable, $36 of intangible lease assets and $75 of tenant origination costs. (d) Of an aggregate of $509 (of which $466 the Company has received from the Colorado Department of Transportation (“CDOT”), and $43 that CDOT has advised it will remit to the Company), $153 is attributable to the partial condemnation of land. The Company recognized a $116 Gain on sale of real estate, net, as a result of this partial condemnation. See Note 8 for information regarding the $356 balance. On January 13, 2015, a consolidated joint venture of the Company sold a property located in Cherry Hill, New Jersey for $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 was $1,320,000 and is included in net income attributable to non-controlling interests. |
Variable Interest Entities, Con
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures | |
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 The following chart details the Company’s variable interest entities through its ground leases at September 30, 2016 (dollars in thousands): Improved by Contract # Units in Owner/Operator Purchase Apartment Mortgage from Description of Property Date Acquired Price Complex (a) Third Party (b) Land - The Meadows Apartments, March 24, 2015 $ $ Land - The Briarbrook Village Apartments, Wheaton, Illinois August 2, 2016 Land - The Vue Apartments, August 16, 2016 Totals $ $ (a) With each purchase, the Company simultaneously entered into a triple net ground lease with the owner/operator of the applicable complex. Affiliates of Strategic Properties of North America are the owner/operators of these properties. (b) Simultaneously with the closing of each acquisition, the owner/operator obtained a mortgage from a third party which, together with the Company’s purchase of the land, provided substantially all of the aggregate funds to acquire the complex. The Company provided its land as collateral for the respective owner/operator’s mortgage loans; accordingly, each land position is subordinated to the applicable mortgage. Other than as described above, no other financial support has been provided by the Company to the owner/operator. Pursuant to the terms of the ground lease for the Wheaton, Illinois property, the owner/operator is obligated to make certain unit renovations as and when units become vacant. The cash reserve balance for the property was $836,000 at September 30, 2016 and is classified as Restricted cash on the consolidated balance sheet. The cash reserve balance for a similarly structured transaction in Sandy Springs, Georgia was $1,074,000 at December 31, 2015 and such balance was disbursed to the owner/operator in connection with the sale of the property in June 2016. See Note 5. 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. The Company further determined that for each acquisition it is not the primary beneficiary because the Company has shared power over the activities that most significantly impact the owner/operator’s economic performance ( i.e. , shared rights on the sale of the property) 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 $663,000 and $1,525,000 for the three and nine months ended September 30, 2016, respectively, and $454,000 and $1,166,000 for the three and nine months ended September 30, 2015, respectively. Included in these amounts is rental income from the Sandy Springs, Georgia property, amounting to $0 and $308,000 for the three and nine months ended September 30, 2016, respectively, and $232,000 and $697,000 for the three and nine months ended September 30, 2015, respectively. 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, 2016 (amounts in thousands): Carrying Amount and Property Type of Exposure Maximum Exposure to Loss The Meadows Apartments, Land $ The Briarbrook Village Apartments, Land The Vue Apartments, Land Total $ Variable Interest Entity — Consolidated Joint Ventures A joint venture in which the Company has a 95% equity interest, acquired a property located in Joppa, Maryland. The Company also had a senior preferred equity interest until May 2016 when the joint venture obtained a mortgage on its property and a portion of such mortgage proceeds was used to repay the $6,280,000 preferred interest to the Company, including accrued interest of $455,000. The Company had historically determined that this joint venture was a VIE. As a result of the adoption of ASU 2015-02, the Company re-assessed its evaluation and determined this venture remains a VIE as the non-controlling interest does not hold substantive kick-out or participating rights. With respect to the six other consolidated joint ventures in which the Company holds between an 85% to 95% interest, the Company had historically determined that such ventures were not VIEs. As a result of the adoption of ASU 2015-02, the Company re-assessed its evaluation of these investments and determined such ventures are VIEs because the non-controlling interests do not hold substantive kick-out or participating rights. In each of these seven joint ventures, the Company has determined it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact each joint venture’s performance including management, approval of expenditures, and the obligation to absorb the losses or rights to receive benefits. Accordingly, the Company has continued to consolidate the operations of these joint ventures for financial statement purposes. The joint ventures’ creditors do not have recourse to the assets of the Company other than those held by these joint ventures. The following is a summary of the consolidated VIEs’ carrying amounts and classification in the Company’s consolidated balance sheets, none of which are restricted (amounts in thousands): September 30, December 31, 2016 2015 Land $ $ Buildings and improvements, net of depreciation of $2,907 and $2,076, respectively Cash Unbilled rent receivable Unamortized intangible lease assets, net Escrow, deposits and other assets and receivables Mortgages payable, net of deferred financing costs of $640 and $438, respectively Accrued expenses and other liabilities Unamortized intangible lease liabilities, net Accumulated other comprehensive loss ) ) Non-controlling interests in consolidated joint ventures MCB Real Estate, LLC and its affiliates (“MCB”) are the Company’s joint venture partner in five consolidated joint ventures. At September 30, 2016, the Company has aggregate equity investments of approximately $10,313,000 in such ventures. A joint venture with MCB, in which the Company has a net equity investment of $2,768,000, owns a property formerly 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. This tenant accounted for approximately 1.3% of the Company’s rental income for each of the three and nine months ended September 30, 2015. At September 30, 2016, the mortgage debt on, and the net book value of, such property is $4,426,000 and $7,205,000, respectively. The Company has determined that no impairment charge is required currently with respect to this property. 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, 2016 | |
Investment in Unconsolidated Joint Ventures | |
Investment in Unconsolidated Joint Ventures | Note 7 — Investment in Unconsolidated Joint Ventures At September 30, 2016 and December 31, 2015, the Company’s equity investments in its five unconsolidated joint ventures (each of which owns and operates one property) and which are not considered VIEs (see Note 2), totaled $10,993,000 and $11,350,000, respectively. The Company recorded equity in earnings of $228,000 and $794,000 for the three and nine months ended September 30, 2016, respectively, and equity in earnings of $347,000 and $311,000 for the three and nine months ended September 30, 2015, 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 a property located in Manahawkin, New Jersey. |
Other Income Items
Other Income Items | 9 Months Ended |
Sep. 30, 2016 | |
Other Income Items | |
Other Income Items | Note 8 - Other Income Items Other income Since July 2016, the Company received $466,000 from CDOT, and has been advised by CDOT that it will remit to the Company an additional $43,000 as a result of a partial condemnation of land and easements obtained by CDOT at the Company’s Greenwood Village, Colorado property. Of this aggregate of $509,000, $356,000 is attributable to easements and is included in Other income on the Consolidated statements of income for the three and nine months ended September 30, 2016. See Note 5 regarding the $153,000 balance which is attributable to the related partial condemnation of land. Lease termination fee In March 2015, the Company received a $650,000 lease termination fee from an industrial tenant in a lease buy-out transaction. In connection with the receipt of this fee, the Company wrote-off $226,000 as an offset to rental income, representing the entire balance of the unbilled rent receivable related to the sole tenant at this property. The Company re-leased this property simultaneously with the termination of the lease. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 9 Months Ended |
Sep. 30, 2016 | |
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 a tenant to make required rent payments. If the financial condition of a specific tenant were to deteriorate, adversely impacting its ability to make payments, allowances may be required. At September 30, 2016 and December 31, 2015, there was no balance in allowance for doubtful accounts. The Company records bad debt expense as a reduction of rental income and/or tenant reimbursements. On March 2, 2016, Sports Authority Inc., the tenant at the Company’s Greenwood Village, Colorado property, filed for Chapter 11 bankruptcy protection and on June 30, 2016, such tenant vacated the property. This tenant accounted for less than 1% of the Company’s rental income for the nine months ended September 30, 2016, and for the three and nine months ended September 30, 2015. For the nine months ended September 30, 2016, the Company recorded an aggregate bad debt expense of $190,000, relating to rental income and tenant reimbursements due from this tenant. There was no bad debt expense in the three months ended September 30, 2016. The Company has determined that no impairment charge is required with respect to this property, which at September 30, 2016, had a net book value of $2,651,000. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2016 | |
Debt Obligations | |
Debt Obligations | Note 10 — Debt Obligations Mortgages Payable On January 1, 2016, the Company adopted 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 with retrospective application for all prior periods presented. As a result of the adoption of this guidance, the following table depicts the adjustments to the Company’s previously reported consolidated balance sheet amounts at December 31, 2015 (amounts in thousands): As Previously Reported As Adjusted Unamortized deferred financing costs, net $ $ — Escrow, deposits and other assets and receivables Total assets Mortgages payable Line of credit Total liabilities Total liabilities and equity The following table details the Mortgages payable, net, balances per the consolidated balance sheets at September 30, 2016 and December 31, 2015 (amounts in thousands): September 30, December 31, 2016 2015 Mortgages payable, gross $ $ Unamortized deferred financing costs ) ) Mortgages payable, net $ $ At September 30, 2016 and December 31, 2015, $13,000 and $35,000, respectively, is included in other assets on the consolidated balance sheets representing unamortized deferred financing costs incurred for which the related mortgage debt has not yet been incurred. Line of Credit The Company has a $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 matures December 31, 2018. The facility provides that the Company pay an interest rate equal to the one month LIBOR rate plus an applicable margin ranging 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. The applicable margin was 175 basis points at September 30, 2016 and 2015. An unused facility fee of .25% per annum applies to the facility. The average interest rate on the facility was approximately 2.20% and 1.93% for the nine months ended September 30, 2016 and 2015, respectively, and 2.24% and 1.94% for the three months ended September 30, 2016 and 2015, respectively. The Company was in compliance with all covenants at September 30, 2016. The following table details the Line of credit, net, balances per the consolidated balance sheets at September 30, 2016 and December 31, 2015 (amounts in thousands): September 30, December 31, 2016 2015 Line of credit, gross $ $ Unamortized deferred financing costs ) ) Line of credit, net $ $ At November 3, 2016, there was an outstanding balance of $22,800,000 (before unamortized deferred financing costs) under the facility. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions | |
Related Party Transactions | Note 11 — Related Party Transactions In 2007, the Company entered into a compensation and services agreement with Majestic Property Management Corp. (“Majestic”), a company wholly-owned by the Company’s Vice Chairman and in which certain of the Company’s executive officers are officers and receive compensation. Pursuant to the agreement, the Company pays an annual fee to Majestic and Majestic provides the Company with the services of all affiliated executive, administrative, legal, accounting, clerical and property management personnel, as well as property acquisition, sale and lease consulting and brokerage services, consulting services in respect to mortgage financings and construction supervisory services. In consideration for providing the Company the services described above, the Company paid Majestic $678,000 and $2,002,000 (including property management fees of $267,000 and $770,000) for the three and nine months ended September 30, 2016, respectively. For the three and nine months ended September 30, 2015, such fees were $634,000 and $1,901,000 (including property management fees of $223,000 and $669,000, respectively). The three and nine months ended September 30, 2016 and 2015 includes overhead fees of $49,000 and $147,000, respectively. Effective January 1, 2016, the property management fee portion of the compensation and services agreement is paid based on 1.5% and 2.0% of the rental payments (including tenant reimbursements) actually received by the Company from net lease tenants and operating lease tenants, respectively. The Company does not pay Majestic property management fees with respect to properties managed by third parties. For 2016 and 2015, the Company agreed to pay quarterly fees of $65,625 to the Company’s chairman and $26,250 to the Company’s vice-chairman. Executive officers and others providing services under the compensation and services agreement were awarded shares of restricted stock and restricted stock units under the Company’s stock incentive plans (described in Note 14). The costs of the plans charged to the Company’s operations applicable to the executive officers and others providing services under the compensation and services agreement amounted to $399,000 and $1,125,000 for the three and nine months ended September 30, 2016, respectively, and $307,000 and $930,000 for the three and nine months ended September 30, 2015, respectively. The fees paid under the compensation and services agreement (except for the property management fees which are included in Real estate expenses), the chairman and vice-chairman fees and the costs of the stock incentive plans are included in General and administrative expense 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 $699,000 during the three and nine months ended September 30, 2016 and $513,000 during the three and nine months ended September 30, 2015. Included in Real estate expenses on the consolidated statements of income is insurance expense of $169,000 and $371,000 for the three and nine months ended September 30, 2016, respectively, and $121,000 and $235,000 for the three and nine months ended September 30, 2015, respectively. The balance of the amounts reimbursed to Gould represents prepaid insurance and is included in Other assets on the consolidated balance sheets. During the three and nine months ended September 30, 2016 and 2015, the Company paid an aggregate of $35,000, $123,000, $29,000 and $167,000, respectively, to its joint venture partners or their affiliates (none of whom are officers, directors or employees of the Company) for property management and acquisition fees, which are included in Real estate expenses and Real estate acquisition costs on the consolidated statements of income. Additionally, in the three and nine months ended September 30, 2016 and 2015, unconsolidated joint ventures of the Company paid fees of $55,000, $127,000, $35,000 and $361,000 to the other partner of the venture, which reduced Equity in earnings of unconsolidated joint ventures on the consolidated statements of income by $27,000, $63,000, $18,000 and $181,000, respectively. |
Common Stock Cash Dividend
Common Stock Cash Dividend | 9 Months Ended |
Sep. 30, 2016 | |
Common Stock Cash Dividend | |
Common Stock Cash Dividend | Note 12 — Common Stock Cash Dividend On September 12, 2016, the Board of Directors declared a quarterly cash dividend of $.41 per share on the Company’s common stock, totaling $7,245,000. The quarterly dividend was paid on October 6, 2016 to stockholders of record on September 27, 2016. |
Shares Issued through Equity Of
Shares Issued through Equity Offering Program | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016, the Company sold 607,701 shares for proceeds of $14,408,000, net of commissions of $146,000, and incurred offering costs of $111,000 for professional fees. Subsequent to September 30, 2016 and through October 5, 2016, the Company sold 11,057 shares for proceeds of $268,000, net of commissions of $3,000. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Stock Based Compensation | |
Stock Based Compensation | Note 14 — Stock Based Compensation The Company’s 2016 Incentive Plan, approved by the Company’s stockholders in June 2016, permits the Company to grant, among other things, stock options, restricted stock units, performance share awards and dividend equivalent rights and any one or more of the foregoing to its employees, officers, directors and consultants. A maximum of 750,000 shares of the Company’s common stock is authorized for issuance pursuant to this Plan, none of which have been issued. An aggregate of 804,750 shares of restricted stock and restricted stock units are outstanding under the Company’s 2012 and 2009 equity incentive plans (collectively, the “Prior Plans”) and have not yet vested. No additional awards may be granted under the Prior Plans. 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. 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 during the nine months ended September 30, 2016. The following is a summary of the activity of the equity incentive plans excluding, except as otherwise noted, the 200,000 Units: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 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) $ — $ — $ $ Average value of shares forfeited 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 general and administrative expense on the income statement $ $ $ $ As of September 30, 2016, there were approximately $6,758,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $110,000 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 2.0 years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | Note 15 — Fair Value Measurements The Company measures the fair value of financial instruments based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. The carrying amounts of cash and cash equivalents, restricted cash, escrow, deposits and other assets and receivables (excluding available-for-sale securities), 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, 2016, the $419,854,000 estimated fair value of the Company’s mortgages payable is greater than their $400,794,000 carrying value (before unamortized deferred financing costs) by approximately $19,060,000 assuming a blended market interest rate of 3.6% based on the 9.7 year weighted average remaining term to maturity of the mortgages. At December 31, 2015, the $346,614,000 estimated fair value of the Company’s mortgages payable is greater than their $334,428,000 carrying value (before unamortized deferred financing costs) by approximately $12,186,000 assuming a blended market interest rate of 4.07% based on the 8.9 year weighted average remaining term to maturity of the mortgages. At September 30, 2016 and December 31, 2015, the carrying amount of the Company’s line of credit (before unamortized deferred financing costs) of $22,800,000 and $18,250,000, respectively, 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): Fair Value Measurements Carrying and on a Recurring Basis As of Fair Value Level 1 Level 2 Financial assets: Available-for-sale securities: Equity securities September 30, 2016 $ — $ — $ — December 31, 2015 — Financial liabilities: Derivative financial instruments: Interest rate swaps September 30, 2016 $ $ — $ December 31, 2015 — The Company does not own any financial instruments that are classified as Level 3. Available-for-sale securities At December 31, 2015, the Company’s available-for-sale securities was a $32,000 investment in equity securities (included in other assets on the consolidated balance sheet). The aggregate cost of these securities was $5,300 and at December 31, 2015, the unrealized gain of $27,000 was included in accumulated other comprehensive loss on the consolidated balance sheet. Fair value was approximated based on current market quotes from financial sources that track such securities. During the nine months ended September 30, 2016, the Company sold such equity securities for gross proceeds of $33,000 and recognized a gain of $27,000 (included in other income on the consolidated statement of income). 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, 2016, the Company has assessed and determined the impact of the credit valuation adjustments on the overall valuation of its derivative positions are not significant. As a result, the Company determined that its derivative valuation is classified in Level 2 of the fair value hierarchy. As of September 30, 2016, the Company had entered into 30 interest rate derivatives, all of which were interest rate swaps, related to 30 outstanding mortgage loans with an aggregate $142,780,000 notional amount and mature between 2018 and 2028 (weighted average remaining term to maturity of 8.1 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 3.02% to 5.75% and a weighted average interest rate of 4.13% at September 30, 2016). 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 $9,489,000, respectively, at September 30, 2016, and $0 and $4,299,000, respectively, at December 31, 2015. 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, 2016 with an aggregate $10,810,000 notional amount. These interest rate swaps, which were designated as cash flow hedges, have interest rates of 3.49% and 5.81% and mature in 2022 and 2018, respectively. 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 Nine Months Ended 2016 2015 2016 2015 One Liberty Properties, Inc. and Consolidated Subsidiaries Amount of gain (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 gain (loss) 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, 2016 and 2015. During the twelve months ending September 30, 2017, the Company estimates an additional $2,168,000 will be reclassified from other Accumulated other comprehensive loss as an increase to Interest expense and $81,600 will be reclassified from Accumulated other comprehensive loss as a decrease to Equity in earnings of unconsolidated joint ventures. The derivative agreements in effect at September 30, 2016 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. During the nine months ended September 30, 2016, the Company terminated three interest rate swaps in connection with the early payoff of the related mortgages, and during the nine months ended September 30, 2015, the Company terminated one interest rate swap in connection with the sale of its Cherry Hill, New Jersey property. The Company accelerated the reclassification of amounts in other comprehensive loss to earnings as a result of these hedged forecasted transactions being terminated. The accelerated amounts were losses of $178,000 and $472,000 during the nine months ended September 30, 2016 and 2015, respectively, all of which are included in Prepayment costs on debt on the consolidated statements of income. There were no such accelerated amounts in the three months ended September 30, 2016 and 2015. As of September 30, 2016, the fair value of the derivatives in the liability position, including accrued interest but excluding any adjustments for nonperformance risk, was approximately $10,257,000. In the 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 $10,257,000. This termination liability value, net of $601,000 adjustments for nonperformance risk, or $9,656,000, is included in Accrued expenses and other liabilities on the consolidated balance sheet at September 30, 2016. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | Note 16 — New Accounting Pronouncements In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), which provides specific guidance on eight cash flow classification issues and how to reduce diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact, if any, it may have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact, if any, it may have on its consolidated financial statements. Also in March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , which states the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. The hedge accounting relationship could continue uninterrupted if all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact, if any, it may have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In September 2015, the FASB issued ASU No. 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 is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this guidance on January 1, 2016 and its adoption did not have any impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which delays the effective date of ASU 2014-09 by one year. In accordance with the agreed upon delay, the new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The Company is currently assessing the impact that this updated standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The effective date for ASU 2016-08 is the same as the effective date for ASU 2014-09. The Company is currently evaluating these new standards to determine the impact, if any, it may have on its consolidated financial statements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events | |
Subsequent Events | Note 17 — Subsequent Events Subsequent events have been evaluated and except as disclosed in Note 8 (Other Income Items), Note 10 (Debt Obligations), Note 12 (Common Stock Cash Dividend) and Note 13 (Shares Issued Through Equity Offering Program), 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, 2016 | |
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, 2016 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, 2015. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. OLP and its consolidated subsidiaries are hereinafter referred to as the “Company”. Material intercompany items and transactions have been eliminated in consolidation. |
Investment in Joint Ventures and Variable Interest Entities | Investment in Joint Ventures and 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. 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, or the right to receive benefits, of the VIE that could potentially be significant to the VIE. On January 1, 2016, the Company adopted ASU 2015-02, Amendments to the Consolidation Analysis , which amends the current consolidation guidance. The ASU introduces 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 or participating rights (see Note 6). Consistent with the adoption of ASU 2015-02, the Company assesses the accounting treatment for each of its investments, including a review of each venture or limited liability company or partnership agreement to determine the rights of each party and whether those rights are protective or participating. Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. 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. Leases may contain certain protective rights, such as the right of sale and the receipt of certain escrow deposits. In situations where the Company jointly (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, among other things, the Company does not consolidate as the Company considers these to be substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the joint venture or property. The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in unconsolidated 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 VIEs. In addition, the Company has shared power with its co-managing members 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. The Company has elected to follow the cumulative earnings approach when assessing, for the consolidated statement of cash flows, whether the distribution from the investee is a return of the investor’s investment as compared to a return on its investment. The source of the cash generated by the investee to fund the distribution is not a factor in the analysis (that is, it does not matter whether the cash was generated through investee refinancing, sale of assets or operating results). Consequently, the investor only considers the relationship between the cash received from the investee to its equity in the undistributed earnings of the investee, on a cumulative basis, in assessing whether the distribution from the investee is a return on or return of its investment. Cash received from the unconsolidated entity is presumed to be a return on the investment to the extent that, on a cumulative basis, distributions received by the investor are less than its share of the equity in the undistributed earnings of the entity. |
Properties Held for Sale | Properties Held-for-Sale Real estate investments are classified as properties held-for-sale when management determines that the investment meets 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, primarily to present debt issuance costs as a direct deduction from the carrying amount of the associated debt on the Company’s December 31, 2015 consolidated balance sheet. See Note 10. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Numerator for basic and diluted earnings per share: Net income $ $ $ $ Less net income attributable to non-controlling interests ) ) ) ) Less earnings allocated to unvested restricted stock (a) ) ) ) ) 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 $ .24 $ .22 $ $ .92 Earnings per common share, diluted $ .24 $ .22 $ $ .92 Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests $ $ $ $ (a) Represents an allocation of distributed earnings to unvested restricted stock which, as participating securities, are entitled to receive dividends. |
Real Estate Acquisitions (Table
Real Estate Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate Acquisitions | |
Schedule of the Company's acquisitions of real estate | The following chart details the Company’s acquisitions of real estate during the nine months ended September 30, 2016 (amounts in thousands): Description of Property Date Acquired Contract Terms of Payment Third Party Multi-tenant industrial facility, March 30, 2016 $ All cash $ Multi-tenant industrial facility, March 30, 2016 All cash Toro distribution facility, June 3, 2016 All cash 4 Advanced Auto retail stores, June 16, 2016 Cash and $4,300 mortgage (d) Land - The Briarbrook Village Apartments, August 2, 2016 All cash — (f) Burlington Coat and Micro Center retail stores, August 12, 2016 All cash Land - The Vue Apartments, August 16, 2016 All cash — (h) Famous Footwear distribution facility, September 1, 2016 Cash and $21,288 mortgage (i) Other costs (j) — Totals $ $ (a) Included as an expense in the accompanying consolidated statement of income. (b) These properties are adjacent to one another and are each net leased to three unrelated tenants pursuant to leases that expire between 2017 and 2021. (c) The property is net leased by a single tenant pursuant to two separate coterminous leases expiring in 2022. (d) The new mortgage debt, which was obtained simultaneously with the acquisition of these properties, bears interest at 3.24% per annum, matures July 2026, and is comprised of four individual and cross-collateralized loans. The properties are net leased by a single tenant pursuant to four separate leases, three of which expire in 2026 and one of which expires in 2025. (e) These properties are net leased to related entities through 2046. See Note 6. (f) Transaction costs aggregating $6 incurred with this asset acquisition were capitalized. (g) This property is net leased to two unrelated tenants pursuant to leases expiring between 2019 and 2020. (h) Transaction costs aggregating $5 incurred with this asset acquisition were capitalized. (i) The new mortgage debt, which was obtained simultaneously with the acquisition of the property, bears interest at 3.7% per annum and matures October 2031. The property is net leased by a single tenant through 2031. (j) Costs incurred for properties purchased in 2015 and transactions that were not consummated. |
Schedule of allocation of purchase price for the company's acquisitions of real estate | The following chart provides the allocation of the purchase price for the Company’s acquisitions of real estate during the nine months ended September 30, 2016 (amounts in thousands): Building Intangible Lease Description of Property Land Building Improvements Asset Liability Total Multi-tenant industrial facility, $ $ $ $ $ — $ Multi-tenant industrial facility, ) Toro distribution facility, — 4 Advanced Auto retail stores, ) Land - The Briarbrook Village Apartments, Wheaton, Illinois (a) — — — — Burlington Coat and Micro Center retail stores, ) Land - The Vue Apartments, — — — — Famous Footwear distribution facility, ) Totals $ $ $ $ $ ) $ (a) Transaction costs aggregating $6 incurred with this asset acquisition were capitalized. (b) The Company is in the process of finalizing the purchase price allocation for this property; therefore, the allocation is preliminary and subject to change. (c) Transaction costs aggregating $5 incurred with this asset acquisition were capitalized. |
Schedule of business acquisition pro forma information | Nine Months Ended Year Ended September 30, 2016 December 31, 2015 Pro forma revenues $ $ Pro forma net income attributable to One Liberty Properties, Inc. Pro forma weighted average number of common shares outstanding: Basic Diluted Pro forma per common share attributable to common stockholders: Basic $ $ Diluted $ $ |
Sale of Properties (Tables)
Sale of Properties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Sale of Properties | |
Schedule of sale of real estate property | The following chart details the Company’s sales of real estate during the nine months ended September 30, 2016 (amounts in thousands): Gross Gain on Sales of Description of Property Date Sold Sales Price Real Estate, Net Portfolio of eight retail properties, February 1, 2016 $ $ Retail property, May 19, 2016 Land - River Crossing Apartments, June 15, 2016 Industrial property, June 30, 2016 Partial condemnation of land, July 5, 2016 Totals $ $ (a) In connection with the sale, the Company paid off the $7,801 mortgage balance on these properties and incurred a $380 expense for the early termination of the mortgage (included in Prepayment costs on debt) and a $26 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs). As a result of the sale, the Company also wrote-off, as a reduction to Gain on sale of real estate, net, $706 of unbilled straight-line rent receivable, $79 of intangible lease assets and $54 of tenant origination costs. At December 31, 2015, the Company classified the net book value of the land and buildings, intangible lease assets and tenant origination costs totaling $12,259 as Properties held-for-sale. (b) As a result of the sale, the Company wrote-off, as a reduction to Gain on sale of real estate, net, $37 of unbilled straight-line rent receivable. (c) In connection with the sale, the Company paid off the $5,272 mortgage balance on this property and incurred a $154 swap termination fee (included in Prepayment costs on debt) and a $30 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs). As a result of the sale, the Company wrote-off, as a reduction to Gain on sale of real estate, net, $1,262 of unbilled straight-line rent receivable, $36 of intangible lease assets and $75 of tenant origination costs. (d) Of an aggregate of $509 (of which $466 the Company has received from the Colorado Department of Transportation (“CDOT”), and $43 that CDOT has advised it will remit to the Company), $153 is attributable to the partial condemnation of land. The Company recognized a $116 Gain on sale of real estate, net, as a result of this partial condemnation. See Note 8 for information regarding the $356 balance. |
Variable Interest Entities, C30
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures | |
Schedule of variable interest entities ground leases information | The following chart details the Company’s variable interest entities through its ground leases at September 30, 2016 (dollars in thousands): Improved by Contract # Units in Owner/Operator Purchase Apartment Mortgage from Description of Property Date Acquired Price Complex (a) Third Party (b) Land - The Meadows Apartments, March 24, 2015 $ $ Land - The Briarbrook Village Apartments, Wheaton, Illinois August 2, 2016 Land - The Vue Apartments, August 16, 2016 Totals $ $ (a) With each purchase, the Company simultaneously entered into a triple net ground lease with the owner/operator of the applicable complex. Affiliates of Strategic Properties of North America are the owner/operators of these properties. (b) Simultaneously with the closing of each acquisition, the owner/operator obtained a mortgage from a third party which, together with the Company’s purchase of the land, provided substantially all of the aggregate funds to acquire the complex. The Company provided its land as collateral for the respective owner/operator’s mortgage loans; accordingly, each land position is subordinated to the applicable mortgage. Other than as described above, no other financial support has been provided by the Company to the owner/operator. |
Summary of our variable interests in identified VIEs aggregate carrying amount and maximum exposure to loss | The following is a summary of the Company’s variable interests in identified VIEs, in which it is not the primary beneficiary, and the aggregate carrying amount and maximum exposure to loss as of September 30, 2016 (amounts in thousands): Carrying Amount and Property Type of Exposure Maximum Exposure to Loss The Meadows Apartments, Land $ The Briarbrook Village Apartments, Land The Vue Apartments, Land Total $ |
Summary of our variable interests in identified VIEs | The following is a summary of the consolidated VIEs’ carrying amounts and classification in the Company’s consolidated balance sheets, none of which are restricted (amounts in thousands): September 30, December 31, 2016 2015 Land $ $ Buildings and improvements, net of depreciation of $2,907 and $2,076, respectively Cash Unbilled rent receivable Unamortized intangible lease assets, net Escrow, deposits and other assets and receivables Mortgages payable, net of deferred financing costs of $640 and $438, respectively Accrued expenses and other liabilities Unamortized intangible lease liabilities, net Accumulated other comprehensive loss ) ) Non-controlling interests in consolidated joint ventures |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Obligations | |
Schedule of Adjustments to the Company's previously reported consolidated balance sheet amounts | As a result of the adoption of this guidance, the following table depicts the adjustments to the Company’s previously reported consolidated balance sheet amounts at December 31, 2015 (amounts in thousands): As Previously Reported As Adjusted Unamortized deferred financing costs, net $ $ — Escrow, deposits and other assets and receivables Total assets Mortgages payable Line of credit Total liabilities Total liabilities and equity |
Schedule of Mortgages payable, net | The following table details the Mortgages payable, net, balances per the consolidated balance sheets at September 30, 2016 and December 31, 2015 (amounts in thousands): September 30, December 31, 2016 2015 Mortgages payable, gross $ $ Unamortized deferred financing costs ) ) Mortgages payable, net $ $ |
Schedule of Line of credit, net | The following table details the Line of credit, net, balances per the consolidated balance sheets at September 30, 2016 and December 31, 2015 (amounts in thousands): September 30, December 31, 2016 2015 Line of credit, gross $ $ Unamortized deferred financing costs ) ) Line of credit, net $ $ |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock Based Compensation | |
Summary of the activity of the equity incentive plans excluding the 200,000 units | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 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) $ — $ — $ $ Average value of shares forfeited 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 general and administrative expense on the income statement $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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): Fair Value Measurements Carrying and on a Recurring Basis As of Fair Value Level 1 Level 2 Financial assets: Available-for-sale securities: Equity securities September 30, 2016 $ — $ — $ — December 31, 2015 — Financial liabilities: Derivative financial instruments: Interest rate swaps September 30, 2016 $ $ — $ December 31, 2015 — |
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 Nine Months Ended 2016 2015 2016 2015 One Liberty Properties, Inc. and Consolidated Subsidiaries Amount of gain (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 gain (loss) 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, 2016stateproperty |
Organization and Background | |
Number of real estate properties | 120 |
Number of states in which properties are located | state | 30 |
Properties owned by consolidated joint ventures | |
Organization and Background | |
Number of real estate properties | 7 |
Properties owned by unconsolidated joint ventures | |
Organization and Background | |
Number of real estate properties | 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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Earnings Per Common Share | |||||
Number of shares awarded under Pay-for-Performance program included in diluted weighted average number of shares | 117,000 | 100,000 | 117,000 | 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 included in diluted weighted average number of shares pursuant to market price and dividend paid metric | 100,000 | 100,000 | 100,000 | 100,000 | |
Number of shares awarded under Pay-for-Performance program included in diluted weighted average number of shares pursuant to capital performance metric | 17,000 | 0 | 17,000 | 0 | |
Numerator for basic and diluted earnings per share: | |||||
Net income | $ 4,323 | $ 3,791 | $ 20,067 | $ 16,712 | |
Less net income attributable to non-controlling interests | (24) | (3) | (40) | (1,386) | |
Less earnings allocated to unvested restricted stock | [1] | (248) | (210) | (744) | (631) |
Net income available for common stockholders, basic | 4,051 | 3,578 | 19,283 | 14,695 | |
Net income available for common stockholders, diluted | $ 4,051 | $ 3,578 | $ 19,283 | $ 14,695 | |
Denominator for basic earnings per share: | |||||
Weighted average common shares | 16,845,000 | 16,014,000 | 16,605,000 | 15,892,000 | |
Effect of diluted securities: | |||||
Restricted stock units awarded under Pay-for-Performance program (in shares) | 117,000 | 100,000 | 117,000 | 100,000 | |
Denominator for diluted earnings per share: weighted average shares | 16,962,000 | 16,114,000 | 16,722,000 | 15,992,000 | |
Earnings per common share, basic (in dollars per share) | $ 0.24 | $ 0.22 | $ 1.16 | $ 0.92 | |
Earnings per common share, diluted (in dollars per share) | $ 0.24 | $ 0.22 | $ 1.15 | $ 0.92 | |
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests | $ 4,299 | $ 3,788 | $ 20,027 | $ 15,326 | |
[1] | Represents an allocation of distributed earnings to unvested restricted stock which, as participating securities, are entitled to receive dividends |
Real Estate Acquisitions (Detai
Real Estate Acquisitions (Details) | Mar. 31, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)loanpropertyitem | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Real Estate Acquisitions | ||||||
Contract purchase price (interest in joint venture). | $ 12,686,000 | |||||
Third Party Real Estate Acquisition Costs | $ 162,000 | $ 90,000 | $ 610,000 | 417,000 | ||
Purchase price fair value adjustment | $ 960,000 | |||||
Owner/Operator mortgage from third party | 396,676,000 | 396,676,000 | $ 331,055,000 | |||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | 35,484,000 | 35,484,000 | ||||
Building | 79,216,000 | 79,216,000 | ||||
Building Improvements | 1,983,000 | 1,983,000 | ||||
Intangible Lease Asset | 8,194,000 | 8,194,000 | ||||
Intangible Lease Liability | (6,288,000) | (6,288,000) | ||||
Total | 118,589,000 | $ 118,589,000 | ||||
Weighted average amortization period for intangible lease assets | 9 years 7 months 6 days | |||||
Weighted average amortization period for intangible lease liabilities | 13 years 2 months 12 days | |||||
Multi-tenant industrial facility, Greenville, South Carolina - 1 | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | $ 8,100,000 | |||||
Third Party Real Estate Acquisition Costs | 81,000 | |||||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | 693,000 | 693,000 | ||||
Building | 6,718,000 | 6,718,000 | ||||
Building Improvements | 175,000 | 175,000 | ||||
Intangible Lease Asset | 514,000 | 514,000 | ||||
Total | 8,100,000 | 8,100,000 | ||||
Multi-tenant industrial facility, Greenville, South Carolina - 2 | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | 8,950,000 | |||||
Third Party Real Estate Acquisition Costs | 83,000 | |||||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | 528,000 | 528,000 | ||||
Building | 7,893,000 | 7,893,000 | ||||
Building Improvements | 181,000 | 181,000 | ||||
Intangible Lease Asset | 441,000 | 441,000 | ||||
Intangible Lease Liability | (93,000) | (93,000) | ||||
Total | 8,950,000 | $ 8,950,000 | ||||
Number of leases for real estate properties which expire between 2017 and 2021 | item | 3 | |||||
Toro distribution facility, El Paso, Texas | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | $ 23,695,000 | |||||
Third Party Real Estate Acquisition Costs | 65,000 | |||||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | 3,691,000 | 3,691,000 | ||||
Building | 17,525,000 | 17,525,000 | ||||
Building Improvements | 379,000 | 379,000 | ||||
Intangible Lease Asset | 2,100,000 | 2,100,000 | ||||
Total | $ 23,695,000 | $ 23,695,000 | ||||
Number of leases for real estate properties which expire in 2022 | item | 2 | |||||
4 Advanced Auto retail locations, Ohio | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | $ 6,523,000 | |||||
Third Party Real Estate Acquisition Costs | $ 101,000 | |||||
Interest rate (as a percent) | 3.24% | 3.24% | ||||
Number of individual loans under new mortgage debt | loan | 4 | |||||
Mortgage incurred | $ 4,300,000 | |||||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | $ 653,000 | 653,000 | ||||
Building | 5,012,000 | 5,012,000 | ||||
Building Improvements | 189,000 | 189,000 | ||||
Intangible Lease Asset | 912,000 | 912,000 | ||||
Intangible Lease Liability | (243,000) | (243,000) | ||||
Total | 6,523,000 | $ 6,523,000 | ||||
Number of leases for real estate properties | property | 4 | |||||
Number of leases for real estate properties which expire in 2026 | item | 3 | |||||
Number of leases for real estate properties which expire in 2025 | item | 1 | |||||
Land - The Briarbrook Village Apartments, Wheaton, Illinois | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | $ 10,530,000 | |||||
Capitalized transaction costs incurred with the asset acquisition | 6,000 | 6,000 | ||||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | 10,536,000 | 10,536,000 | ||||
Total | 10,536,000 | 10,536,000 | ||||
Burlington Coat and Micro Center retail stores, St. Louis Park, Minnesota | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | 14,150,000 | |||||
Third Party Real Estate Acquisition Costs | 73,000 | |||||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | 3,388,000 | 3,388,000 | ||||
Building | 12,632,000 | 12,632,000 | ||||
Building Improvements | 456,000 | 456,000 | ||||
Intangible Lease Asset | 651,000 | 651,000 | ||||
Intangible Lease Liability | (2,977,000) | (2,977,000) | ||||
Total | 14,150,000 | 14,150,000 | ||||
Land - The Vue Apartments, Beachwood, Ohio | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | 13,896,000 | |||||
Capitalized transaction costs incurred with the asset acquisition | 5,000 | 5,000 | ||||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | 13,901,000 | 13,901,000 | ||||
Total | $ 13,901,000 | 13,901,000 | ||||
Famous Footwear distribution facility, Lebanon, Tennessee | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | 32,734,000 | |||||
Third Party Real Estate Acquisition Costs | $ 193,000 | |||||
Interest rate (as a percent) | 3.70% | 3.70% | ||||
Mortgage incurred | $ 21,288,000 | |||||
Allocation of purchase price for the company's real estate acquisitions | ||||||
Land | $ 2,094,000 | 2,094,000 | ||||
Building | 29,436,000 | 29,436,000 | ||||
Building Improvements | 603,000 | 603,000 | ||||
Intangible Lease Asset | 3,576,000 | 3,576,000 | ||||
Intangible Lease Liability | (2,975,000) | (2,975,000) | ||||
Total | $ 32,734,000 | 32,734,000 | ||||
Shopko retail store, Lincoln, Nebraska | Consolidated JV | ||||||
Real Estate Acquisitions | ||||||
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 | |||||
Percentage of equity method investments acquired | 50.00% | |||||
Subtotals | ||||||
Real Estate Acquisitions | ||||||
Contract purchase price (real estate) | 118,578,000 | |||||
Third Party Real Estate Acquisition Costs | 610,000 | |||||
Other | ||||||
Real Estate Acquisitions | ||||||
Third Party Real Estate Acquisition Costs | $ 14,000 |
Real Estate Acquisitions - Pro
Real Estate Acquisitions - Pro forma information (Details) $ / shares in Units, shares in Thousands | Jan. 01, 2015property | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)property$ / sharesshares | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)$ / sharesshares |
Real estate acquisition costs | $ 162,000 | $ 90,000 | $ 610,000 | $ 417,000 | ||
Business acquisition pro forma information: | ||||||
Pro forma unaudited revenues | 55,519,000 | $ 73,037,000 | ||||
Pro forma net income attributable to One Liberty Properties, Inc. | $ 21,128,000 | $ 20,560,000 | ||||
Pro forma weighted average number of common shares outstanding: | ||||||
Basic (in shares) | shares | 16,605 | 15,971 | ||||
Diluted (in shares) | shares | 16,722 | 16,079 | ||||
Pro forma per common share attributable to common stockholders: | ||||||
Basic (in dollars per share) | $ / shares | $ 1.23 | $ 1.23 | ||||
Diluted (in dollars per share) | $ / shares | $ 1.22 | $ 1.23 | ||||
2016 Acquisitions | ||||||
Number of real estate properties acquired | property | 9 | |||||
Real estate acquisition costs | $ 596,000 | |||||
Business acquisition pro forma information: | ||||||
Revenues already included in the results of operations | 2,111,000 | |||||
Net income already included in the results of operations | 136,000 | |||||
Wheaton, Illinois and Beachwood, Ohio lands | ||||||
Number of real estate properties acquired | property | 2 | |||||
Business acquisition pro forma information: | ||||||
Pro forma unaudited revenues | 2,024,000 | $ 2,700,000 | ||||
Pro forma unaudited net income | 1,786,000 | $ 2,344,000 | ||||
Revenues already included in the results of operations | 386,000 | |||||
Net income already included in the results of operations | $ 386,000 |
Sale of Properties (Details)
Sale of Properties (Details) | Jan. 13, 2015USD ($) | Sep. 30, 2016USD ($)property | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Sale of Properties | ||||
Gross Sales Price | $ 40,611,000 | |||
Gain on Sales of Real Estate, Net | 9,824,000 | |||
Total sales price, net of closing costs | $ 40,207,000 | $ 16,025,000 | ||
Properties held-for-sale | $ 12,259,000 | |||
Property located in Cherry Hill, NJ | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Consolidated JV | ||||
Sale of Properties | ||||
Gain on Sales of Real Estate, Net | $ 5,392,000 | |||
Total sales price, net of closing costs | $ 16,025,000 | |||
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 Consolidated Joint Ventures | ||||
Sale of Properties | ||||
Non-controlling interest's share of income from the transaction | $ 1,320,000 | |||
Portfolio of eight retail properties, Louisiana and Mississippi | ||||
Sale of Properties | ||||
Number of real estate properties sold | property | 8 | |||
Gross Sales Price | $ 13,750,000 | |||
Gain on Sales of Real Estate, Net | 787,000 | |||
Mortgage balance paid off | 7,801,000 | |||
Early termination of the mortgage | 380,000 | |||
Write-off of deferred financing costs | 26,000 | |||
Write-off of unbilled straight-line rent receivable | 706,000 | |||
Write-off of intangible lease assets | 79,000 | |||
Write off of tenant origination costs | 54,000 | |||
Retail property, Killeen, Texas | ||||
Sale of Properties | ||||
Gross Sales Price | 3,100,000 | |||
Gain on Sales of Real Estate, Net | 980,000 | |||
Write-off of unbilled straight-line rent receivable | 37,000 | |||
Land - River Crossing Apartments, Sandy Springs, Georgia | ||||
Sale of Properties | ||||
Gross Sales Price | 8,808,000 | |||
Gain on Sales of Real Estate, Net | 2,281,000 | |||
Industrial property, Tomlinson, Pennsylvania | ||||
Sale of Properties | ||||
Gross Sales Price | 14,800,000 | |||
Gain on Sales of Real Estate, Net | 5,660,000 | |||
Mortgage balance paid off | 5,272,000 | |||
Swap termination expense | 154,000 | |||
Write-off of deferred financing costs | 30,000 | |||
Write-off of unbilled straight-line rent receivable | 1,262,000 | |||
Write-off of intangible lease assets | 36,000 | |||
Write off of tenant origination costs | 75,000 | |||
Partial condemnation of land, Greenwood Village, Colorado | ||||
Sale of Properties | ||||
Gross Sales Price | 153,000 | |||
Gain on Sales of Real Estate, Net | 116,000 | |||
Aggregate consideration amount | 509,000 | |||
Consideration received from the CDOT of a partial condemnation of land and easements | 466,000 | |||
Consideration to be received from the CDOT for easements | 43,000 | |||
Amount of consideration from the CDOT attributable to the partial condemnation of land | 153,000 | |||
Gain related to the partial condemnation of land | 116,000 | |||
Amount of consideration from the CDOT attributable to the easements | $ 356,000 |
Variable Interest Entities, C39
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures - Ground Leases (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Variable Interest Entities | |||||
Restricted cash | $ 836,000 | $ 836,000 | $ 1,074,000 | ||
Maximum Exposure to Loss | 34,080,000 | 34,080,000 | |||
The Meadows Apartments, Lakemoor, Illinois; Briarbrook Village Apartments, Wheaton, Illinois and Vue Apartments, Beachwood, Ohio | |||||
Variable Interest Entities | |||||
Contract purchase price (real estate) | $ 33,726,000 | ||||
Improved by Units in Apartment Complex | item | 1,186 | ||||
Owner/Operator mortgage from third party | 150,679,000 | $ 150,679,000 | |||
Land - The Meadows Apartments, Lakemoor, Illinois | |||||
Variable Interest Entities | |||||
Contract purchase price (real estate) | $ 9,300,000 | ||||
Improved by Units in Apartment Complex | item | 496 | ||||
Owner/Operator mortgage from third party | 43,824,000 | $ 43,824,000 | |||
Land - The Meadows Apartments, Lakemoor, Illinois | Land. | |||||
Variable Interest Entities | |||||
Maximum Exposure to Loss | 9,592,000 | 9,592,000 | |||
Land - The Meadows Apartments, Lakemoor, Illinois | Unbilled Rent Receivable | |||||
Variable Interest Entities | |||||
Maximum Exposure to Loss | 15,000 | 15,000 | |||
Land - The Briarbrook Village Apartments, Wheaton, Illinois | |||||
Variable Interest Entities | |||||
Contract purchase price (real estate) | $ 10,530,000 | ||||
Improved by Units in Apartment Complex | item | 342 | ||||
Owner/Operator mortgage from third party | 39,411,000 | $ 39,411,000 | |||
Restricted cash | 836,000 | 836,000 | |||
Land - The Briarbrook Village Apartments, Wheaton, Illinois | Land. | |||||
Variable Interest Entities | |||||
Maximum Exposure to Loss | 10,536,000 | 10,536,000 | |||
Land - The Briarbrook Village Apartments, Wheaton, Illinois | Unbilled Rent Receivable | |||||
Variable Interest Entities | |||||
Maximum Exposure to Loss | 19,000 | 19,000 | |||
Land - The Vue Apartments, Beachwood, Ohio | |||||
Variable Interest Entities | |||||
Contract purchase price (real estate) | $ 13,896,000 | ||||
Improved by Units in Apartment Complex | item | 348 | ||||
Owner/Operator mortgage from third party | 67,444,000 | $ 67,444,000 | |||
Land - The Vue Apartments, Beachwood, Ohio | Land. | |||||
Variable Interest Entities | |||||
Maximum Exposure to Loss | 13,901,000 | 13,901,000 | |||
Land - The Vue Apartments, Beachwood, Ohio | Unbilled Rent Receivable | |||||
Variable Interest Entities | |||||
Maximum Exposure to Loss | 17,000 | 17,000 | |||
The Meadows Apartments, Lakemoor, Illinois; Briarbrook Village Apartments, Wheaton, Illinois; Vue Apartments, Beachwood, Ohio and River Crossing Apartments, Sandy Springs, Georgia | |||||
Variable Interest Entities | |||||
Revenue from the ground lease | 663,000 | $ 454,000 | 1,525,000 | $ 1,166,000 | |
Land - River Crossing Apartments, Sandy Springs, Georgia | |||||
Variable Interest Entities | |||||
Restricted cash | $ 1,074,000 | ||||
Revenue from the ground lease | $ 0 | $ 232,000 | $ 308,000 | $ 697,000 |
Variable Interest Entities, C40
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures - Consolidated Joint Ventures (Details) | 9 Months Ended | |
Sep. 30, 2016USD ($)item | Jun. 30, 2014 | |
Consolidated JV | ||
Variable Interest Entities | ||
Number of joint ventures with controlling interest | item | 6 | |
Industrial building, Joppa, Maryland | ||
Variable Interest Entities | ||
Ownership interest in consolidated joint venture of the company (as a percent) | 95.00% | |
Preferred interest | $ | $ 6,280,000 | |
Accrued interest | $ | $ 455,000 | |
Consolidated VIE entities | Consolidated JV | ||
Variable Interest Entities | ||
Number of joint ventures with controlling interest | item | 7 | |
Minimum | Consolidated JV | ||
Variable Interest Entities | ||
Ownership interest in consolidated joint venture of the company (as a percent) | 85.00% | |
Maximum | Consolidated JV | ||
Variable Interest Entities | ||
Ownership interest in consolidated joint venture of the company (as a percent) | 95.00% |
Variable Interest Entities, C41
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures - Summary of Consolidated VIE's (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Consolidated VIEs Carrying Amount of Assets and Liabilities | ||
Land | $ 35,484 | |
Unbilled rent receivable | 13,323 | $ 13,577 |
Unamortized intangible lease assets, net | 33,931 | 28,978 |
Escrow, deposits and other assets and receivables | 6,046 | 4,268 |
Mortgages payable, net of deferred financing costs of $640 and $438, respectively | 396,676 | 331,055 |
Accrued expenses and other liabilities | 18,843 | 13,852 |
Unamortized intangible lease liabilities, net | 19,821 | 14,521 |
Accumulated other comprehensive loss | (9,671) | (4,390) |
Non-controlling interests in consolidated joint ventures | 1,750 | 1,931 |
Consolidated VIE entities | ||
Consolidated VIEs Carrying Amount of Assets and Liabilities | ||
Land | 18,400 | 18,400 |
Buildings and improvements, net of depreciation of $2,907 and $2,076, respectively | 34,349 | 34,287 |
Cash | 1,869 | 1,960 |
Unbilled rent receivable | 935 | 330 |
Unamortized intangible lease assets, net | 1,694 | 1,996 |
Escrow, deposits and other assets and receivables | 1,596 | 752 |
Mortgages payable, net of deferred financing costs of $640 and $438, respectively | 36,062 | 25,926 |
Accrued expenses and other liabilities | 1,274 | 793 |
Unamortized intangible lease liabilities, net | 2,247 | 2,392 |
Accumulated other comprehensive loss | (282) | (126) |
Non-controlling interests in consolidated joint ventures | 1,750 | 1,931 |
Depreciation | 2,907 | 2,076 |
Deferred financing costs | $ 640 | $ 438 |
Variable Interest Entities, C42
Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures - MCB Real Estate, LLC (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2016USD ($)item | Sep. 30, 2015 | Dec. 31, 2015USD ($) | |
Consolidated VIEs Carrying Amount of Assets and Liabilities | ||||
Owner/Operator mortgage from third party | $ 396,676,000 | $ 331,055,000 | ||
Net book value of property | 2,651,000 | |||
Impairment charge | $ 0 | |||
Consolidated JV | ||||
Consolidated VIEs Carrying Amount of Assets and Liabilities | ||||
Number of joint ventures with controlling interest | item | 6 | |||
MCB Real Estate LLC And Its Affiliates | Consolidated JV | ||||
Consolidated VIEs Carrying Amount of Assets and Liabilities | ||||
Number of joint ventures with controlling interest | item | 5 | |||
Investment in consolidated joint ventures | $ 10,313,000 | |||
MCB Real Estate LLC And Its Affiliates | Consolidated JV | Pathmark supermarket in Philadelphia, Pennsylvania | ||||
Consolidated VIEs Carrying Amount of Assets and Liabilities | ||||
Investment in consolidated joint ventures | 2,768,000 | |||
Percentage of rental income | 1.30% | 1.30% | ||
Owner/Operator mortgage from third party | 4,426,000 | |||
Net book value of property | 7,205,000 | |||
Impairment charge | $ 0 |
Investment in Unconsolidated 43
Investment in Unconsolidated Joint Ventures (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)property | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)propertyitem | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)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 | ||
Investment in unconsolidated joint ventures | $ 10,993,000 | $ 10,993,000 | $ 11,350,000 | ||
Equity in earnings of unconsolidated joint ventures | $ 228,000 | $ 347,000 | $ 794,000 | $ 311,000 | |
Retail center located in Manahawkin, New Jersey | |||||
Investment in Unconsolidated Joint Ventures. | |||||
Company share of acquisition expense | $ 400,000 |
Other Income Items - Other Inco
Other Income Items - Other Income (Details) - Partial condemnation of land, Greenwood Village, Colorado | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Consideration received from the CDOT of a partial condemnation of land and easements | $ 466,000 | |
Consideration to be received from the CDOT for easements | $ 43,000 | 43,000 |
Aggregate consideration amount | 509,000 | |
Amount from the CDOT attributable to the easements | 356,000 | |
Amount from the CDOT attributable to the partial condemnation of land | 153,000 | |
Other income | ||
Consideration received from the CDOT of a partial condemnation of land and easements | 466,000 | |
Consideration to be received from the CDOT for easements | 43,000 | 43,000 |
Aggregate consideration amount | 509,000 | 509,000 |
Amount from the CDOT attributable to the easements | 356,000 | 356,000 |
Amount from the CDOT attributable to the partial condemnation of land | $ 153,000 | $ 153,000 |
Other Income Items - Lease term
Other Income Items - Lease termination fee (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Income Items | |||
Lease termination fee received from an industrial tenants in a lease buy-out transaction | $ 650,000 | $ 650,000 | |
Write-off of unbilled rent receivable | $ 226,000 | $ 7,000 | $ 315,000 |
Allowance for Doubtful Accoun46
Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts | |||||
Balance in allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | ||
Bad debt expense | 0 | 190,000 | |||
Impairment charge | 0 | ||||
Net book value of property | $ 2,651,000 | $ 2,651,000 | |||
Maximum | |||||
Allowance for Doubtful Accounts | |||||
Percentage of rental income | 1.00% | 1.00% | 1.00% |
Debt Obligations - ASU adjustme
Debt Obligations - ASU adjustments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Obligations | ||
Escrow, deposits and other assets and receivables | $ 6,046 | $ 4,268 |
Total assets | 739,327 | 646,499 |
Mortgages payable | 396,676 | 331,055 |
Line of credit | 22,420 | 17,744 |
Total liabilities | 465,005 | 384,073 |
Total liabilities and equity | $ 739,327 | 646,499 |
As Previously Reported | ||
Debt Obligations | ||
Unamortized deferred financing costs, net | 3,914 | |
Escrow, deposits and other assets and receivables | 4,233 | |
Total assets | 650,378 | |
Mortgages payable | 334,428 | |
Line of credit | 18,250 | |
Total liabilities | 387,952 | |
Total liabilities and equity | 650,378 | |
As Adjusted | ||
Debt Obligations | ||
Escrow, deposits and other assets and receivables | 4,268 | |
Total assets | 646,499 | |
Mortgages payable | 331,055 | |
Line of credit | 17,744 | |
Total liabilities | 384,073 | |
Total liabilities and equity | $ 646,499 |
Debt Obligation - Mortgage Paya
Debt Obligation - Mortgage Payable current (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Mortgages Payable | ||
Mortgages payable, net | $ 396,676,000 | $ 331,055,000 |
Other assets | ||
Mortgages Payable | ||
Unamortized deferred financing costs incurred with no related mortgage debt | 13,000 | 35,000 |
Mortgages payable | ||
Mortgages Payable | ||
Mortgages payable, gross | 400,794,000 | 334,428,000 |
Unamortized deferred financing costs | (4,118,000) | (3,373,000) |
Mortgages payable, net | $ 396,676,000 | $ 331,055,000 |
Debt Obligations - Line of Cred
Debt Obligations - Line of Credit (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Nov. 03, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Line of Credit | |||||||
Line of credit, net | $ 22,420,000 | $ 22,420,000 | $ 17,744,000 | ||||
Line of credit | |||||||
Line of Credit | |||||||
Unused facility fee (as a percent) | 0.25% | ||||||
Interest rate during the period (as a percent) | 2.24% | 1.94% | 2.20% | 1.93% | |||
Line of credit, gross | $ 22,800,000 | $ 22,800,000 | 18,250,000 | ||||
Unamortized deferred financing costs | (380,000) | (380,000) | (506,000) | ||||
Line of credit | Credit Facility | |||||||
Line of Credit | |||||||
Borrowing capacity | $ 75,000,000 | ||||||
Line of credit, gross | 22,800,000 | 22,800,000 | $ 22,800,000 | 18,250,000 | |||
Unamortized deferred financing costs | (380,000) | (380,000) | (506,000) | ||||
Line of credit, net | $ 22,420,000 | $ 22,420,000 | $ 17,744,000 | ||||
Line of credit | LIBOR | Credit Facility | |||||||
Line of Credit | |||||||
Spread on variable interest rate (as a percent) | 1.75% | 1.75% | |||||
Line of credit | LIBOR | Credit Facility | Maximum | |||||||
Line of Credit | |||||||
Spread on variable interest rate (as a percent) | 3.00% | ||||||
Line of credit | LIBOR | 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 ($) | Jan. 01, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Majestic | |||||
Related Party Transaction | |||||
Quarterly fees under compensation and services agreement | $ 678,000 | $ 634,000 | $ 2,002,000 | $ 1,901,000 | |
Management fees under compensation and services agreement | 267,000 | 223,000 | 770,000 | 669,000 | |
Overhead expenses under compensation and services agreement | 49,000 | 49,000 | 147,000 | 147,000 | |
Chairman | |||||
Related Party Transaction | |||||
Quarterly fees under compensation and services agreement | 65,625 | 65,625 | |||
Vice Chairman | |||||
Related Party Transaction | |||||
Quarterly fees under compensation and services agreement | 26,250 | 26,250 | |||
Executive officers and others | |||||
Related Party Transaction | |||||
Share based compensation charged to operations | 399,000 | 307,000 | 1,125,000 | 930,000 | |
Gould Investors L.P. | |||||
Related Party Transaction | |||||
Insurance Reimbursement | 699,000 | 513,000 | 699,000 | 513,000 | |
Real estate insurance expense | 169,000 | 121,000 | 371,000 | 235,000 | |
Joint venture partners | |||||
Related Party Transaction | |||||
Real estate management and acquisition costs | 35,000 | 29,000 | 123,000 | 167,000 | |
Net lease tenants | |||||
Related Party Transaction | |||||
Property management fee (as a percent) | 1.50% | ||||
Operating lease tenants | |||||
Related Party Transaction | |||||
Property management fee (as a percent) | 2.00% | ||||
Unconsolidated JV | Joint venture partners | |||||
Related Party Transaction | |||||
Management fees | 55,000 | 35,000 | 127,000 | 361,000 | |
Reduction of equity in earnings of unconsolidated joint ventures | $ 27,000 | $ 18,000 | $ 63,000 | $ 181,000 |
Common Stock Cash Dividend (Det
Common Stock Cash Dividend (Details) - USD ($) | Sep. 12, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Common Stock Cash Dividend | |||
Quarterly cash dividend declared (in dollars per share) | $ 0.41 | ||
Quarterly cash dividend declared | $ 7,245,000 | $ 21,330,000 | $ 19,277,000 |
Shares Issued through Equity 52
Shares Issued through Equity Offering Program (Details) - USD ($) | Oct. 05, 2016 | Mar. 20, 2014 | Sep. 30, 2016 |
Shares issued through equity offering program | |||
Maximum aggregate sales price of shares to be sold under an Equity Offering Sales Agreement | $ 38,360,000 | ||
Number of shares sold (in shares) | 607,701 | ||
Proceeds from sale of shares, net of commission and before offering costs | $ 14,408,000 | ||
Payment of commissions on sale of shares | 146,000 | ||
Payment of offering costs on sale of shares. | $ 111,000 | ||
Subsequent event | |||
Shares issued through equity offering program | |||
Number of shares sold (in shares) | 11,057 | ||
Proceeds from sale of shares, net of commission and before offering costs | $ 268,000 | ||
Payment of commissions on sale of shares | $ 3,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
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 | $ 6,758,000 | $ 6,758,000 | ||
Approximate weighted average vesting period | 2 years | |||
General and administrative expense | ||||
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 | $ 770,000 | $ 580,000 | $ 2,176,000 | $ 1,742,000 |
Restricted stock grants | ||||
Summary of the activity of the incentive plans | ||||
Restricted share grants | 139,225 | 129,975 | ||
Per share grant price (in dollars per share) | $ 21.74 | $ 24.60 | ||
Deferred compensation to be recognized over vesting period | $ 3,027,000 | $ 3,197,000 | ||
Number of non-vested shares: | ||||
Non-vested beginning of period (in shares) | 605,000 | 538,990 | 538,755 | 480,995 |
Grants (in shares) | 139,225 | 129,975 | ||
Vested during period (in shares) | (72,730) | (71,980) | ||
Forfeitures (in shares) | (250) | (500) | ||
Non-vested end of period (in shares) | 604,750 | 538,990 | 604,750 | 538,990 |
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) | $ 18 | $ 17.12 | $ 18 | $ 17.12 |
Value of shares vested during the period (based on grant price) | $ 1,177,000 | $ 607,000 | ||
Average value of shares forfeited during the period (based on grant price) (in dollars per share) | $ 21.05 | $ 21.05 | ||
Share based compensation charged to operations | $ 639,000 | $ 550,000 | $ 1,930,000 | 1,653,000 |
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 | $ 131,000 | $ 30,000 | $ 246,000 | $ 89,000 |
2012 and 2009 Incentive Plan | ||||
Summary of the activity of the incentive plans | ||||
Restricted share grants | 0 | |||
Number of non-vested shares: | ||||
Grants (in shares) | 0 | |||
Vested during period (in shares) | 0 | |||
Non-vested end of period (in shares) | 804,750 | 804,750 | ||
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 | $ 110,000 | $ 110,000 | ||
2016 Incentive Plan | ||||
Stock Based Compensation | ||||
Number of shares authorized for issuance | 750,000 | 750,000 | ||
Shares issued pursuant to plan | 0 |
Fair Value Measurements - Avail
Fair Value Measurements - Available for Sale (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Available-for-sale securities | |||
Aggregate cost of available-for-sale securities | $ 5,300 | ||
Gross proceeds from available-for-sale-securities | $ 33,000 | $ 33,000 | |
Other income | |||
Available-for-sale securities | |||
Gain on available-for-sale-securities | 27,000 | 27,000 | |
Accumulated other comprehensive loss | |||
Available-for-sale securities | |||
Unrealized gain on available-for-sale securities | 27,000 | ||
Line of credit | |||
Fair Value of Financial Instruments | |||
Line of credit, gross | 22,800,000 | 22,800,000 | 18,250,000 |
Recurring | |||
Available-for-sale securities: | |||
Equity securities | 32,000 | ||
Recurring | Interest rate swap | |||
Financial liabilities: | |||
Derivative financial instruments | 9,489,000 | 9,489,000 | 4,299,000 |
Recurring | Level 1 | |||
Available-for-sale securities: | |||
Equity securities | 32,000 | ||
Recurring | Level 2 | Interest rate swap | |||
Financial liabilities: | |||
Derivative financial instruments | 9,489,000 | 9,489,000 | 4,299,000 |
Mortgages payable | |||
Fair Value of Financial Instruments | |||
Estimated fair value of mortgages payable | 419,854,000 | 419,854,000 | 346,614,000 |
Carrying value of mortgage loans | 400,794,000 | 400,794,000 | 334,428,000 |
Excess of fair value over carrying value | $ 19,060,000 | $ 19,060,000 | $ 12,186,000 |
Blended or estimated market interest rate (as a percent) | 3.60% | 4.07% | |
Weighted average remaining term of the mortgages | 9 years 8 months 12 days | 8 years 10 months 24 days |
Fair Value Measurements - Inter
Fair Value Measurements - Interest Rate Derivatives (Details) - Interest rate derivatives - Cash flow hedges. | 9 Months Ended |
Sep. 30, 2016USD ($)item | |
Fair Value Measurements | |
Number of interest rate derivatives held | 30 |
Number of mortgage loans outstanding | 30 |
Notional Amount | $ | $ 142,780,000 |
Weighted average maturity | 8 years 1 month 6 days |
Weighted average annual interest rate (as a percent) | 4.13% |
Minimum | |
Fair Value Measurements | |
Fixed Interest Rate (as a percent) | 3.02% |
Maximum | |
Fair Value Measurements | |
Fixed Interest Rate (as a percent) | 5.75% |
Fair Value Measurements - Int56
Fair Value Measurements - Interest Rate Swap Derivatives and Balance Sheet location (Details) - Derivatives designated as hedging instruments - Interest rate swap - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Measurements | ||
Fair value of derivatives assets | $ 0 | $ 0 |
Fair value of derivatives liabilities | $ 9,489,000 | $ 4,299,000 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Instruments, Gain (Loss) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($)item | Sep. 30, 2017USD ($) | |
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 derivatives in Other comprehensive loss | 385,000 | (3,609,000) | (7,197,000) | (4,500,000) | |
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense | (633,000) | (574,000) | $ (2,020,000) | $ (1,921,000) | |
Reclassification of gain (loss) | |||||
Additional amount to be reclassified during the next twelve months | $ 2,168,000 | ||||
Number of interest rate derivative instruments terminated | item | 3 | 1 | |||
Credit risk related contingent feature | |||||
Fair value of derivative in a liability position, including accrued interest but excluding adjustments for nonperformance risk | 10,257,000 | $ 10,257,000 | |||
Termination value of derivative agreement | $ 10,257,000 | 10,257,000 | |||
Adjustments for nonperformance risk | $ 601,000 | ||||
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 | $ 10,810,000 | $ 10,810,000 | |||
Amount of gain (loss) recognized on derivatives in Other comprehensive loss | 21,000 | (122,000) | (164,000) | $ (147,000) | |
Amount of loss reclassification from Accumulated other comprehensive loss into Equity in earnings of unconsolidated joint ventures | $ (23,000) | (29,000) | $ (72,000) | (80,000) | |
Reclassification of gain (loss) | |||||
Additional amount to be reclassified during the next twelve months | $ 81,600 | ||||
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. | Prepayment costs on debt | |||||
Reclassification of gain (loss) | |||||
Loss on termination of interest rate swap | $ 0 | $ 0 | $ (178,000) | $ (472,000) | |
Interest rate swap | Cash flow hedges. | Accrued Expenses And Other Liabilities | |||||
Credit risk related contingent feature | |||||
Termination value of derivative agreement | $ 9,656,000 | $ 9,656,000 |