Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RAMCO GERSHENSON PROPERTIES TRUST | |
Entity Central Index Key | 842,183 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | RPT | |
Entity Common Stock, Shares Outstanding | 80,154,086 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Income producing properties, at cost: | ||
Land | $ 397,344 | $ 397,935 |
Buildings and improvements | 1,753,218 | 1,732,844 |
Less accumulated depreciation and amortization | (380,108) | (351,632) |
Income producing properties, net | 1,770,454 | 1,779,147 |
Construction in progress and land available for development or sale | 77,719 | 58,243 |
Net real estate | 1,848,173 | 1,837,390 |
Equity investments in unconsolidated joint ventures | 2,428 | 3,493 |
Cash and cash equivalents | 5,252 | 8,081 |
Restricted cash and escrows | 4,361 | 4,810 |
Accounts receivable (net of allowance for doubtful accounts of $1,353 and $1,374 as of June 30, 2018 and December 31, 2017, respectively) | 24,171 | 26,145 |
Acquired lease intangibles, net | 50,999 | 59,559 |
Other assets, net | 98,833 | 90,916 |
TOTAL ASSETS | 2,034,217 | 2,030,394 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Notes payable, net | 1,027,803 | 999,215 |
Capital lease obligation | 1,022 | 1,022 |
Accounts payable and accrued expenses | 59,554 | 56,750 |
Acquired lease intangibles, net | 52,452 | 60,197 |
Other liabilities | 8,050 | 8,375 |
Distributions payable | 19,734 | 19,666 |
TOTAL LIABILITIES | 1,168,615 | 1,145,225 |
Commitments and Contingencies | ||
Ramco-Gershenson Properties Trust (RPT) Shareholders' Equity: | ||
Preferred shares, $0.01 par, 2,000 shares authorized: 7.25% Series D Cumulative Convertible Perpetual Preferred Shares, (stated at liquidation preference $50 per share), 1,849 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 92,427 | 92,427 |
Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 79,530 and 79,366 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 795 | 794 |
Additional paid-in capital | 1,163,359 | 1,160,862 |
Accumulated distributions in excess of net income | (417,526) | (392,619) |
Accumulated other comprehensive income | 6,143 | 2,858 |
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT | 845,198 | 864,322 |
Noncontrolling interest | 20,404 | 20,847 |
TOTAL SHAREHOLDERS' EQUITY | 865,602 | 885,169 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,034,217 | $ 2,030,394 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounts receivable, allowance for doubtful accounts | $ 1,353 | $ 1,374 |
Preferred shares, par (in usd per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 2,000,000 | 2,000,000 |
Common shares of beneficial interest, par (in usd per share) | $ 0.01 | $ 0.01 |
Common shares of beneficial interest, authorized (in shares) | 120,000,000 | 120,000,000 |
Common shares of beneficial interest, issued (in shares) | 79,530,000 | 79,366,000 |
Common shares of beneficial interest, outstanding (in shares) | 79,530,000 | 79,366,000 |
Series D Preferred Shares | ||
Cumulative convertible perpetual preferred shares, issued (in shares) | 1,849,000 | 1,849,000 |
Cumulative convertible perpetual preferred shares, outstanding (in shares) | 1,849,000 | 1,849,000 |
Cumulative convertible perpetual preferred shares, liquidation preference (in usd per share) | $ 50 | $ 50 |
Cumulative convertible perpetual preferred shares, dividend rate | 7.25% | 7.25% |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUE | ||||
TOTAL REVENUE | $ 69,967 | $ 67,062 | $ 132,685 | $ 134,887 |
EXPENSES | ||||
Real estate taxes | 10,602 | 10,730 | 20,759 | 21,723 |
Recoverable operating expense | 6,141 | 6,431 | 12,947 | 14,039 |
Non-recoverable operating expense | 1,111 | 1,242 | 2,112 | 2,390 |
Depreciation and amortization | 23,457 | 23,335 | 44,569 | 46,152 |
Acquisition costs | 233 | 0 | 233 | 0 |
General and administrative expense | 13,378 | 6,372 | 19,265 | 12,823 |
Provision for impairment | 216 | 820 | 216 | 6,537 |
TOTAL EXPENSES | 55,138 | 48,930 | 100,101 | 103,664 |
OPERATING INCOME | 14,829 | 18,132 | 32,584 | 31,223 |
OTHER INCOME AND EXPENSES | ||||
Other (expense) income, net | (68) | (424) | 185 | (735) |
Gain on sale of real estate | 181 | 0 | 181 | 11,375 |
Earnings from unconsolidated joint ventures | 202 | 55 | 273 | 141 |
Interest expense | (10,708) | (11,486) | (21,309) | (22,285) |
INCOME BEFORE TAX | 4,436 | 6,277 | 11,914 | 19,719 |
Income tax provision | (33) | (25) | (51) | (53) |
NET INCOME | 4,403 | 6,252 | 11,863 | 19,666 |
Net income attributable to noncontrolling partner interest | (101) | (147) | (275) | (462) |
NET INCOME ATTRIBUTABLE TO RPT | 4,302 | 6,105 | 11,588 | 19,204 |
Preferred share dividends | (1,675) | (1,675) | (3,350) | (3,350) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 2,627 | $ 4,430 | $ 8,238 | $ 15,854 |
EARNINGS PER COMMON SHARE | ||||
Basic (in usd per share) | $ 0.03 | $ 0.05 | $ 0.10 | $ 0.20 |
Diluted (in usd per share) | $ 0.03 | $ 0.05 | $ 0.10 | $ 0.20 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||
Basic (in shares) | 79,519 | 79,344 | 79,471 | 79,322 |
Diluted (in shares) | 79,621 | 79,529 | 79,574 | 79,525 |
Cash Dividend Declared per Common Share (in usd per share) | $ 0.22 | $ 0.22 | $ 0.44 | $ 0.44 |
OTHER COMPREHENSIVE INCOME | ||||
Net income | $ 4,403 | $ 6,252 | $ 11,863 | $ 19,666 |
Other comprehensive gain (loss): | ||||
Gain (loss) on interest rate swaps | 922 | (632) | 3,364 | 91 |
Comprehensive income | 5,325 | 5,620 | 15,227 | 19,757 |
Comprehensive income attributable to noncontrolling interest | (122) | (139) | (354) | (464) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RPT | 5,203 | 5,481 | 14,873 | 19,293 |
Minimum Rent | ||||
REVENUE | ||||
TOTAL REVENUE | 52,519 | 50,797 | 99,431 | 100,234 |
Percentage Rent | ||||
REVENUE | ||||
TOTAL REVENUE | 101 | 225 | 425 | 463 |
Recovery Income from Tenants | ||||
REVENUE | ||||
TOTAL REVENUE | 16,252 | 14,841 | 30,834 | 31,732 |
Real Estate, Other | ||||
REVENUE | ||||
TOTAL REVENUE | 1,047 | 1,126 | 1,861 | 2,232 |
Management Service | ||||
REVENUE | ||||
TOTAL REVENUE | $ 48 | $ 73 | $ 134 | $ 226 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Distributions in Excess of Net Income | Accumulated Other Comprehensive Income | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of ASU 2017-05 | $ 2,160 | $ 2,109 | $ 51 | ||||
Beginning balance at Dec. 31, 2017 | 885,169 | $ 92,427 | $ 794 | $ 1,160,862 | (392,619) | $ 2,858 | 20,847 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares, net of issuance costs | (25) | (25) | |||||
Redemption of OP unit holders | (7) | (2) | (5) | ||||
Share-based compensation and other expense, net of shares withheld for employee taxes | 2,523 | 1 | 2,522 | ||||
Dividends declared to common shareholders | (34,981) | (34,981) | |||||
Dividends declared to preferred shareholders | (3,350) | (3,350) | |||||
Distributions declared to noncontrolling interests | (843) | (843) | |||||
Dividends declared to deferred shares | (271) | (271) | |||||
Other comprehensive income adjustment | 3,364 | 3,285 | 79 | ||||
Net income | 11,863 | 11,588 | 275 | ||||
Ending balance at Jun. 30, 2018 | $ 865,602 | $ 92,427 | $ 795 | $ 1,163,359 | $ (417,526) | $ 6,143 | $ 20,404 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 11,863 | $ 19,666 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 44,569 | 46,152 |
Amortization of deferred financing fees | 760 | 692 |
Income tax provision | 51 | 53 |
Earnings from unconsolidated joint ventures | (273) | (141) |
Distributions received from operations of unconsolidated joint ventures | 481 | 478 |
Provision for impairment | 216 | 6,537 |
Gain on sale of real estate | (181) | (11,375) |
Amortization of premium on mortgages, net | (518) | (583) |
Service-based restricted share expense | 2,886 | 1,181 |
Long-term incentive cash and equity compensation expense | 666 | 330 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 1,974 | (1,826) |
Acquired lease intangibles and other assets, net | (1,958) | (2,176) |
Accounts payable, acquired lease intangibles and other liabilities | (6,561) | (6,867) |
Net cash provided by operating activities | 53,975 | 52,121 |
INVESTING ACTIVITIES | ||
Acquisition of real estate | (6,365) | (168,964) |
Development and capital improvements | (43,914) | (25,286) |
Net proceeds from sales of real estate | 1,354 | 27,422 |
Proceeds from sale of investment in joint venture | 3,000 | 0 |
Net cash used in investing activities | (45,925) | (166,828) |
FINANCING ACTIVITIES | ||
Repayments of mortgages and notes payable | (1,267) | (1,588) |
Proceeds on revolving credit facility | 45,000 | 202,000 |
Repayments on revolving credit facility | (15,000) | (24,000) |
Proceeds, net of costs, from issuance of common stock | (25) | (24) |
Redemption of operating partnership units for cash | (7) | (5) |
Shares used for employee taxes upon vesting of awards | (651) | (498) |
Dividends paid to preferred shareholders | (3,350) | (3,350) |
Dividends paid to common shareholders and deferred shares | (35,185) | (35,093) |
Distributions paid to operating partnership unit holders | (843) | (844) |
Net cash (used in) provided by financing activities | (11,328) | 136,598 |
Net change in cash, cash equivalents and restricted cash | (3,278) | 21,891 |
Cash, cash equivalents and restricted cash at beginning of period | 12,891 | 14,726 |
Cash, cash equivalents and restricted cash at end of period | 9,613 | 36,617 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest (net of capitalized interest of $576 and $118 in 2018 and 2017, respectively) | 18,393 | 21,023 |
Deferred gain recognized in equity | $ 2,160 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Cash paid for interest, capitalized interest | $ 576 | $ 118 |
Organization and Basis of Prese
Organization and Basis of Presentations | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentations | Organization and Basis of Presentations Organization Ramco-Gershenson Properties Trust, together with its subsidiaries (the “Company” or "RPT"), owns and operates high-quality, dynamic open-air shopping centers located in the top U.S. metro areas. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange under the ticker symbol RPT. As of June 30, 2018, the Company's portfolio consisted of 58 shopping centers (including two shopping centers owned through joint ventures) representing 14.0 million square feet. As of June 30, 2018, the Company’s aggregate portfolio was 93.9% leased. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and our majority owned subsidiary, the Operating Partnership, Ramco-Gershenson Properties, L.P. (the "OP") ( 97.7% owned by the Company at June 30, 2018 and December 31, 2017 ), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest. We have elected to be a REIT for federal income tax purposes. All intercompany balances and transactions have been eliminated in consolidation. The information furnished is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017 . The preparation of our unaudited financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and reported amounts that are not readily apparent from other sources. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In February 2017, the FASB issued ASU 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" ("ASU 2017-05"). ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. ASU 2017-05 also defines the term "in substance nonfinancial asset". In addition, ASU 2017-05 eliminates the guidance specific to real estate sales in ASC 360-20. It became effective for annual periods beginning after December 15, 2017, therefore we adopted the standard on January 1, 2018. In doing so, the Company recorded an adjustment under the modified retrospective method of approximately $2.2 million to shareholders' equity associated with a transaction that occurred in the fourth quarter of 2017. The adjustment had no impact on earnings or cash flows. In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 clarifies guidance about what changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. It became effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows." This new guidance became effective January 1, 2018, with early adoption permitted, and requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The pronouncement requires a retrospective transition method of adoption. The adoption of this standard resulted in the reclassification of approximately $26.1 million of proceeds from real estate dispositions during the six months ended June 30, 2017 that were held in escrow as restricted cash. The amount was reclassified as net proceeds from sales of real estate from a non cash investing activity. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balances sheets that reconciles to the total shown within the consolidated statements of cash flows. As of June 30, 2018 2017 (In thousands) Cash and cash equivalents $ 5,252 $ 4,798 Restricted cash and escrows 4,361 31,819 $ 9,613 $ 36,617 Restricted cash generally consists of funds held in escrow by lenders to pay real estate taxes, insurance premiums and certain capital expenditures. In limited instances, restricted cash may include deposits on potential future acquisitions and/or proceeds related to dispositions of real estate. In August 2016, the FASB issued ASU 2016-15 "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which clarifies the treatment of several cash flow categories. In addition, ASU 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. This update became effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. The adoption of this standard did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 is a comprehensive revenue recognition standard that superseded nearly all prior GAAP revenue recognition guidance as well as prior GAAP guidance governing the sale of non-financial assets. The standard’s core principle is that a company should recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations. In doing so, companies need to exercise more judgment and make more estimates than under prior GAAP guidance. ASU 2014-09 became effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption was permitted in periods ending after December 15, 2016. The guidance permitted two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect initially applying the guidance recognized at the date of initial application (modified retrospective method). We adopted the standard and the related updates subsequently issued by the FASB using the modified retrospective method on January 1, 2018. ASU 2014-09 applies only to certain revenue included in Other Property Income and Management and Other Fee Income in our Consolidated Statement of Operations which totaled $ 2.0 million , or less than 2.0% of total revenue, for the six months ended June 30, 2018 . The adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018. Recent Accounting Pronouncements In July 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-10, "Codification Improvements to Topic 842, Leases", which affects narrow aspects of the guidance issued in the amendments in ASU 2016-02. This standard is effective along with ASU 2016-02, for periods after December 15, 2018. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which expands the scope of Topic 718, Compensation-Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In January 2018, the FASB issued ASU 2018-01, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842". The standard provides an optional transition practical expedient for the adoption of ASU 2016-02 that, if elected, would not require an organization to reconsider its accounting for existing land easements that are not currently accounted for under the old leases standard. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective. In January 2017, the FASB issued ASU 2017-04 "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB updated Accounting Standards Codification ("ASC") Topic 326 "Financial Instruments - Credit Losses" with ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). ASU 2016-13 enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better inform credit loss estimates. ASU 2016-13 is effective for annual periods (including interim periods within those periods) beginning after December 15, 2019. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In February 2016, the FASB updated ASC Topic 842 "Leases" ("ASU 2016-02"). ASU 2016-02 requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not direct leasing costs. ASU 2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted using a modified retrospective approach. The Company continues to evaluate the effect the adoption of ASU 2016-02 will have on our consolidated financial statements and related disclosures. However, we currently believe the adoption of ASU 2016-02 will not have a material impact for operating leases where we are a lessor and we will continue to record revenues from rental properties for operating leases on a straight-line basis. In addition, for leases where the Company is a lessee, primarily the Company’s ground lease and administrative office lease, the Company believes it will record a lease liability and a right of use asset at fair value upon adoption related to these items. Additionally, only incremental direct leasing costs may be capitalized under this new guidance. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective. |
Real Estate
Real Estate | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Included in our net real estate assets are income producing properties that are recorded at cost less accumulated depreciation and amortization, construction in process and land available for development or sale. We review our investment in real estate, including any related intangible assets, for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of the property may not be recoverable. These changes in circumstances include, but are not limited to, changes in occupancy, rental rates, tenant sales, net operating income, geographic location, real estate values and expected holding period. For the three and six months ended June 30, 2018 , we recorded an impairment provision totaling $0.2 million on a land parcel. The 2018 adjustment was triggered by higher costs related to this parcel. To estimate fair value, we use discounted cash flow models that include assumptions of the discount rates that market participants would use in pricing an asset or market pricing from potential or comparable transactions. For the three and six months ended June 30, 2017, we recorded an impairment provision totaling $0.8 million and $6.5 million , respectively, on shopping centers classified as income producing. Land available for development or sale includes real estate projects where vertical construction has yet to commence, but which have been identified by us and are available for future development when market conditions dictate the demand for a new shopping center. The viability of all projects under construction or development, including those owned by unconsolidated joint ventures, is regularly evaluated under applicable accounting requirements, including requirements relating to abandonment of assets or changes in use. Land available for development or sale was $31.5 million and $31.6 million at June 30, 2018 and December 31, 2017 , respectively. Construction in progress represents existing development, redevelopment and tenant build-out projects. When projects are substantially complete and ready for their intended use, balances are transferred to land or building and improvements as appropriate. Construction in progress was $46.2 million and $26.6 million at June 30, 2018 and December 31, 2017 , respectively. The increase in construction in progress from December 31, 2017 to June 30, 2018 was due primarily to the ongoing redevelopment and expansion projects across the portfolio. Pursuant to the criteria established under ASC Topic 360 we classify properties as held for sale when executed purchase and sales agreement contingencies have been satisfied thereby signifying that the sale is legally binding. As of June 30, 2018 , and December 31, 2017, we had no properties and no parcels classified as held for sale. |
Property Acquisitions and Dispo
Property Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Property Acquisitions and Dispositions | Property Acquisitions and Dispositions Acquisitions The following table provides a summary of our acquisition activity for the six months ended June 30, 2018 : Gross Property Name Location GLA Acreage Date Purchase Assumed (in thousands) (In thousands) Leasehold Interest (West Oaks) Novi, MI 60 N/A 01/05/18 $ 6,365 $ — Total consolidated income producing acquisitions 60 — $ 6,365 $ — Total Acquisitions 60 — $ 6,365 $ — The aggregate fair value of our 2018 acquisition through June 30, 2018 , was allocated and is reflected in the following table. Allocated Fair Value (In thousands) Buildings and improvements $ 6,427 Above market leases 237 Lease origination costs 633 Other liabilities (353 ) Below market leases (579 ) Total purchase price allocated $ 6,365 Total revenue and net income for the 2018 acquisition included in our condensed consolidated statement of operations for the three and six months ended June 30, 2018 were as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (In thousands) Total revenue from 2018 acquisition $ 198 $ 388 Net income from 2018 acquisition $ 127 $ 244 Unaudited Proforma Information If the 2018 acquisition had occurred on January 1, 2017, our consolidated revenues and net income for the three and six months ended June 30, 2018 and 2017 would have been as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (In thousands) Consolidated revenue $ 69,967 $ 67,233 $ 132,693 $ 135,219 Consolidated net income available to common shareholders $ 2,627 $ 4,530 $ 8,242 $ 16,043 Dispositions The following table provides a summary of our disposition activity for the six months ended June 30, 2018 . Gross Property Name Location GLA Acreage Date Sales Price Gain on Sale (In thousands) Theatre Parcel - Hartland Town Square Hartland, MI N/A 7.5 04/02/18 $ 1,450 $ 181 Peachtree Hills - Outparcel Duluth, GA N/A 1.7 05/25/18 $ 650 $ — Total outparcel dispositions — 9.2 $ 2,100 $ 181 Total Dispositions — 9.2 $ 2,100 $ 181 |
Equity Investments in Unconsoli
Equity Investments in Unconsolidated Joint Ventures | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments in Unconsolidated Joint Ventures | Equity Investments in Unconsolidated Joint Ventures We have three joint venture agreements whereby we own 7% , 20% , and 30% , respectively, of the equity in each joint venture. We and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. We cannot make significant decisions without our partner’s approval. Accordingly, we account for our interest in the joint ventures using the equity method of accounting. On April 27, 2018 we sold our 30% interest in a joint venture created in November 2017 for proceeds of $3.1 million to our unrelated joint venture partner. The proceeds received from the transaction represent the return of our initial investment of $3.0 million and our share of earnings from the joint venture's operations since inception of $0.1 million . We did not record a gain or loss on sale of our interest in the joint venture. The combined condensed financial information for our unconsolidated joint ventures is summarized as follows: Balance Sheets June 30, 2018 December 31, 2017 (In thousands) ASSETS Investment in real estate, net $ 42,090 $ 93,801 Other assets 2,373 4,099 Total Assets $ 44,463 $ 97,900 LIABILITIES AND OWNERS' EQUITY Mortgage notes payable $ — $ 42,330 Other liabilities $ 151 $ 220 Owners' equity 44,312 55,350 Total Liabilities and Owners' Equity $ 44,463 $ 97,900 RPT's equity investments in unconsolidated joint ventures $ 2,428 $ 3,493 Three Months Ended June 30, Six Months Ended June 30, Statements of Operations 2018 2017 2018 2017 (In thousands) (In thousands) Total revenue $ 1,235 $ 1,130 $ 2,422 $ 2,293 Total expenses 867 802 1,615 1,505 Net income $ 368 $ 328 $ 807 $ 788 RPT's share of earnings from unconsolidated joint ventures $ 202 $ 55 $ 273 $ 141 Acquisitions There was no acquisition activity in the six months ended June 30, 2018 by any of our unconsolidated joint ventures. Dispositions There was no disposition activity in the six months ended June 30, 2018 by any of our unconsolidated joint ventures. Joint Venture Management and Other Fee Income We are engaged by two of our joint ventures to provide asset management, property management, leasing and investing services for such ventures' respective properties. We receive fees for our services, including a property management fee calculated as a percentage of gross revenues received, and recognize these fees as the services are rendered. The following table provides information for our fees earned which are reported in our condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) (In thousands) Management fees $ 48 $ 63 $ 94 $ 137 Leasing fees — 10 40 89 Total $ 48 $ 73 $ 134 $ 226 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our mortgages, notes payable and capital lease obligation as of June 30, 2018 and December 31, 2017 : Notes Payable and Capital Lease Obligation June 30, December 31, (In thousands) Senior unsecured notes $ 610,000 $ 610,000 Unsecured term loan facilities 210,000 210,000 Fixed rate mortgages 119,677 120,944 Unsecured revolving credit facility 60,000 30,000 Junior subordinated notes 28,125 28,125 1,027,802 999,069 Unamortized premium 3,449 3,967 Unamortized deferred financing costs (3,448 ) (3,821 ) Total notes payable $ 1,027,803 $ 999,215 Capital lease obligation $ 1,022 $ 1,022 Senior Unsecured Notes The following table summarizes the Company's senior unsecured notes: June 30, 2018 December 31, 2017 Senior Unsecured Notes Maturity Date Principal Balance Interest Rate/Weighted Average Interest Rate Principal Balance Interest Rate/Weighted Average Interest Rate (in thousands) (in thousands) Senior unsecured notes - 3.75% due 2021 6/27/2021 $ 37,000 3.75 % $ 37,000 3.75 % Senior unsecured notes - 4.13% due 2022 12/21/2022 25,000 4.13 % 25,000 4.13 % Senior unsecured notes - 4.12% due 2023 6/27/2023 41,500 4.12 % 41,500 4.12 % Senior unsecured notes - 4.65% due 2024 5/28/2024 50,000 4.65 % 50,000 4.65 % Senior unsecured notes - 4.16% due 2024 11/4/2024 50,000 4.16 % 50,000 4.16 % Senior unsecured notes - 4.05% due 2024 11/18/2024 25,000 4.05 % 25,000 4.05 % Senior unsecured notes - 4.27% due 2025 6/27/2025 31,500 4.27 % 31,500 4.27 % Senior unsecured notes - 4.20% due 2025 7/6/2025 50,000 4.20 % 50,000 4.20 % Senior unsecured notes - 4.09% due 2025 9/30/2025 50,000 4.09 % 50,000 4.09 % Senior unsecured notes - 4.74% due 2026 5/28/2026 50,000 4.74 % 50,000 4.74 % Senior unsecured notes - 4.30% due 2026 11/4/2026 50,000 4.30 % 50,000 4.30 % Senior unsecured notes - 4.28% due 2026 11/18/2026 25,000 4.28 % 25,000 4.28 % Senior unsecured notes - 4.57% due 2027 12/21/2027 30,000 4.57 % 30,000 4.57 % Senior unsecured notes - 3.64% due 2028 11/30/2028 75,000 3.64 % 75,000 3.64 % Senior unsecured notes - 4.72% due 2029 12/21/2029 20,000 4.72 % 20,000 4.72 % $ 610,000 4.21 % $ 610,000 4.21 % Unamortized deferred financing costs (1,783 ) (1,676 ) Total $ 608,217 $ 608,324 Unsecured Term Loan Facilities and Revolving Credit Facility The following table summarizes the Company's unsecured term loan facilities and revolving credit facility: June 30, 2018 December 31, 2017 Unsecured Credit Facilities Maturity Date Principal Balance Interest Rate/Weighted Average Interest Rate Principal Balance Interest Rate/Weighted Average Interest Rate (in thousands) (in thousands) Unsecured term loan due 2020 - fixed rate (1) 5/16/2020 $ 75,000 2.99 % $ 75,000 2.99 % Unsecured term loan due 2021 - fixed rate (2) 5/29/2021 75,000 2.84 % 75,000 2.84 % Unsecured term loan due 2023 - fixed rate (3) 3/1/2023 60,000 3.60 % 60,000 3.60 % $ 210,000 3.09 % $ 210,000 3.11 % Unamortized deferred financing costs (1,008 ) (1,224 ) Term loans, net $ 208,992 $ 208,776 Revolving credit facility - variable rate 9/14/2021 $ 60,000 3.34 % 30,000 2.71 % (1) Swapped to a weighted average fixed rate of 1.69% , plus a credit spread of 1.30% , based on a leverage grid at June 30, 2018. (2) Swapped to a weighted average fixed rate of 1.49% , plus a credit spread of 1.35% , based on a leverage grid at June 30, 2018. (3) Swapped to a weighted average fixed rate of 1.95% , plus a credit spread of 1.65% , based on a leverage grid at June 30, 2018. As of June 30, 2018 , we had $60.0 million outstanding under our revolving credit facility, an increase of $30.0 million from December 31, 2017 , as a result of borrowings to fund the Company's redevelopment projects. After adjusting for outstanding letters of credit issued under our revolving credit facility, not reflected in the accompanying condensed consolidated balance sheets, totaling $0.2 million , we had $289.8 million of availability under our revolving credit facility. The interest rate as of June 30, 2018 was 3.34% . Mortgages The following table summarizes the Company's fixed rate mortgages: June 30, 2018 December 31, 2017 Mortgage Debt Maturity Date Principal Balance Interest Rate/Weighted Average Interest Rate Principal Balance Interest Rate/Weighted Average Interest Rate (in thousands) (in thousands) Crossroads Centre Home Depot 12/1/2019 $ 3,301 7.38 % $ 3,352 7.38 % West Oaks II and Spring Meadows Place 4/20/2020 26,212 6.50 % 26,611 6.50 % Bridgewater Falls Shopping Center 2/6/2022 55,033 5.70 % 55,545 5.70 % The Shops on Lane Avenue 1/10/2023 28,650 3.76 % 28,650 3.76 % Nagawaukee II 6/1/2026 6,481 5.80 % 6,786 5.80 % $ 119,677 5.46 % $ 120,944 5.47 % Unamortized premium 3,449 3,967 Unamortized deferred financing costs (116 ) (149 ) Total $ 123,010 $ 124,762 The fixed rate mortgages are secured by properties that have an approximate net book value of $188.8 million as of June 30, 2018 . It is our intent to repay the mortgages maturing in 2019 and beyond using cash, borrowings under our unsecured line of credit, net proceeds from the sale of real estate or other sources of financing which may include long-term unsecured notes. The mortgage loans encumbering our properties are generally nonrecourse, subject to certain exceptions for which we would be liable for any resulting losses incurred by the lender. These exceptions vary from loan to loan but generally include fraud or a material misrepresentation, misstatement or omission by the borrower, intentional or grossly negligent conduct by the borrower that harms the property or results in a loss to the lender, filing of a bankruptcy petition by the borrower, either directly or indirectly and certain environmental liabilities. In addition, upon the occurrence of certain events, such as fraud or filing of a bankruptcy petition by the borrower, we or our joint ventures would be liable for the entire outstanding balance of the loan, all interest accrued thereon and certain other costs, including penalties and expenses. We have entered into mortgage loans which are secured by multiple properties and contain cross-collateralization and cross-default provisions. Cross-collateralization provisions allow a lender to foreclose on multiple properties in the event that we default under the loan. Cross-default provisions allow a lender to foreclose on the related property in the event a default is declared under another loan. Junior Subordinated Notes Our junior subordinated notes have a variable rate of LIBOR plus 3.30% . The maturity date is January 2038. Debt Maturities The following table presents scheduled principal payments on mortgages and notes payable as of June 30, 2018 : Year Ending December 31, (In thousands) 2018 $ 1,294 2019 5,860 2020 102,269 2021 (1) 174,508 2022 77,397 Thereafter 666,474 Subtotal debt 1,027,802 Unamortized premium 3,449 Unamortized deferred financing costs (3,448 ) Total debt $ 1,027,803 (1) Scheduled maturities in 2021 include the $60.0 million balance on the unsecured revolving credit facility drawn as of June 30, 2018 . The unsecured revolving credit facility has two six -month extensions available at the Company's option provided compliance with financial covenants is maintained. Our unsecured revolving credit facility, senior unsecured notes, and unsecured term loan facilities contain financial covenants relating to total leverage, fixed charge coverage ratio, unencumbered assets, tangible net worth and various other calculations. As of June 30, 2018 , we were in compliance with these covenants. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Derivative instruments (interest rate swaps) are recorded at fair value on a recurring basis. Additionally, we, from time to time, may be required to record other assets at fair value on a nonrecurring basis. As a basis for considering market participant assumptions in fair value measurements, GAAP establishes three fair value levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The assessed inputs used in determining any fair value measurement could result in incorrect valuations that could be material to our condensed consolidated financial statements. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the assets or liabilities. The following is a description of valuation methodologies used for our assets and liabilities recorded at fair value. Derivative Assets and Liabilities All of our derivative instruments are interest rate swaps for which quoted market prices are not readily available. For those derivatives, we measure fair value on a recurring basis using valuation models that use primarily market observable inputs, such as yield curves. We classify these instruments as Level 2. Refer to Note 7 Derivative Financial Instruments of the notes to the condensed consolidated financial statements for additional information on our derivative financial instruments. The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017. Total Balance Sheet Location Fair Value Level 2 June 30, 2018 (In thousands) Derivative assets - interest rate swaps Other assets $ 6,289 $ 6,289 Derivative liabilities - interest rate swaps Other liabilities $ — $ — December 31, 2017 Derivative assets - interest rate swaps Other assets $ 3,133 $ 3,133 Derivative liabilities - interest rate swaps Other liabilities $ (208 ) $ (208 ) The carrying values of cash and cash equivalents, restricted cash, receivables and accounts payable and accrued liabilities are reasonable estimates of their fair values because of the short maturity of these financial instruments. We estimated the fair value of our debt based on our incremental borrowing rates for similar types of borrowing arrangements with the same remaining maturity and on the discounted estimated future cash payments to be made for other debt. The discount rates used approximate current lending rates for loans or groups of loans with similar maturities and credit quality, assume the debt is outstanding through maturity and consider the debt’s collateral (if applicable). Since such amounts are estimates that are based on limited available market information for similar transactions (Level 3), there can be no assurance that the disclosed value of any financial instrument could be realized by immediate settlement of the instrument. Fixed rate debt (including variable rate debt swapped to fixed through derivatives) with carrying values of $939.7 million and $940.9 million as of June 30, 2018 and December 31, 2017 , respectively, had fair values of approximately $922.7 million and $940.8 million , respectively. Variable rate debt’s fair value is estimated to be the carrying values of $88.1 million and $58.1 million as of June 30, 2018 and December 31, 2017 , respectively. The following is a description of valuation methodologies used for our assets and liabilities recorded at fair value on a nonrecurring basis: Net Real Estate Our net investment in real estate, including any identifiable intangible assets, is subject to impairment testing on a nonrecurring basis. To estimate fair value, we use discounted cash flow models that include assumptions of the discount rates that market participants would use in pricing the asset or pricing from potential or comparable market transactions. To the extent impairment has occurred, we charge to expense the excess of the carrying value of the property over its estimated fair value. We classify impaired real estate assets as nonrecurring Level 3. During the six months ended June 30, 2018 , a land parcel with a fair value of approximately $0.6 million incurred an impairment charge of $0.2 million . We did not have any material liabilities that were required to be measured at fair value on a nonrecurring basis during the period. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We utilize interest rate swap agreements for risk management purposes to reduce the impact of changes in interest rates on our variable rate debt. We may also enter into forward starting swaps to set the effective interest rate on planned variable rate financing. On the date we enter into an interest rate swap, the derivative is designated as a hedge against the variability of cash flows that are to be paid in connection with a recognized liability. Subsequent changes in the fair value of a derivative designated as a cash flow hedge that is determined to be effective are recorded in other comprehensive income (“OCI”) until earnings are affected by the variability of cash flows of the hedged transaction. The differential between fixed and variable rates to be paid or received is accrued, as interest rates change, and recognized currently as interest expense in the condensed consolidated statements of operations. We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis. Our cash flow hedges become ineffective, for example, if critical terms of the hedging instrument and the debt do not perfectly match such as notional amounts, settlement dates, reset dates and calculation period and LIBOR rate. At June 30, 2018 , all of our hedges were effective. The following table summarizes the notional values and fair values of our derivative financial instruments as of June 30, 2018 : Hedge Notional Fixed Fair Expiration Underlying Debt Type Value Rate Value Date (In thousands) (In thousands) Derivative Assets Unsecured term loan Cash Flow $ 25,000 1.850 % $ 17 10/2018 Unsecured term loan Cash Flow 5,000 1.840 % 4 10/2018 Unsecured term loan Cash Flow 30,000 2.048 % 5 10/2018 Unsecured term loan Cash Flow 15,000 2.150 % 119 05/2020 Unsecured term loan Cash Flow 10,000 2.150 % 79 05/2020 Unsecured term loan Cash Flow 50,000 1.460 % 1,038 05/2020 Unsecured term loan Cash Flow 20,000 1.498 % 668 05/2021 Unsecured term loan Cash Flow 15,000 1.490 % 505 05/2021 Unsecured term loan Cash Flow 40,000 1.480 % 1,358 05/2021 $ 210,000 $ 3,793 Derivative Assets - Forward Swaps Unsecured term loan Cash Flow 60,000 1.770 % 2,496 03/2023 Total Derivative Assets $ 270,000 $ 6,289 The effect of derivative financial instruments on our condensed consolidated statements of operations for the three months ended June 30, 2018 and 2017 is summarized as follows: Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Derivatives in Cash Flow Hedging Relationship Three Months Ended June 30, Three Months Ended June 30, 2018 2017 2018 2017 (In thousands) (In thousands) Interest rate contracts - assets $ 788 $ (699 ) Interest Expense $ 124 $ (104 ) Interest rate contracts - liabilities 10 428 Interest Expense — (257 ) Total $ 798 $ (271 ) Total $ 124 $ (361 ) The effect of derivative financial instruments on our condensed consolidated statements of operations for the six months ended June 30, 2018 and 2017 is summarized as follows: Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Derivatives in Cash Flow Hedging Relationship Six Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) (In thousands) Interest rate contracts - assets $ 3,107 $ (177 ) Interest Expense $ 50 $ (258 ) Interest rate contracts - liabilities 246 1,077 Interest Expense (39 ) (551 ) Total $ 3,353 $ 900 Total $ 11 $ (809 ) |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per share (“EPS”): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (In thousands, except per share data) Net income $ 4,403 $ 6,252 $ 11,863 $ 19,666 Net income attributable to noncontrolling interest (101 ) (147 ) (275 ) (462 ) Allocation of income to restricted share awards (128 ) (78 ) (241 ) (168 ) Income attributable to RPT 4,174 6,027 11,347 19,036 Preferred share dividends (1,675 ) (1,675 ) (3,350 ) (3,350 ) Net income available to common shareholders - Basic 2,499 4,352 7,997 15,686 Net income available to common shareholders - Diluted $ 2,499 $ 4,352 $ 7,997 $ 15,686 Weighted average shares outstanding, Basic 79,519 79,344 79,471 79,322 Restricted stock awards using the treasury method 102 185 103 203 Weighted average shares outstanding, Diluted 79,621 79,529 79,574 79,525 Income per common share, Basic $ 0.03 $ 0.05 $ 0.10 $ 0.20 Income per common share, Diluted $ 0.03 $ 0.05 $ 0.10 $ 0.20 We exclude certain securities from the computation of diluted earnings per share. The following table presents the outstanding securities that were excluded from the computation of diluted earnings per share and the number of common shares each was convertible into (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Issued Converted Issued Converted Issued Converted Issued Converted Operating Partnership Units 1,916 1,916 1,917 1,917 1,916 1,916 1,917 1,917 Series D Preferred Shares 1,849 6,803 1,849 6,685 1,849 6,803 1,849 6,685 Performance Share Units 510 67 98 — 510 71 98 — 4,275 8,786 3,864 8,602 4,275 8,790 3,864 8,602 |
Share-based Compensation Plans
Share-based Compensation Plans | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Plans | Share-based Compensation Plans As of June 30, 2018 , we have two share-based compensation plans in effect: 1) the 2012 Omnibus Long-Term Incentive Plan (“2012 LTIP”) under which our compensation committee may grant, subject to any Company performance conditions as specified by the compensation committee, restricted shares, restricted share units, options and other awards to trustees, officers and other key employees; and 2) the Inducement Incentive Plan (“Inducement Plan”), which was approved by the Board of Trustees in April 2018 and under which our compensation committee may grant, subject to any Company performance conditions as specified by the compensation committee, restricted shares, restricted share units, options and other awards to individuals who were not previously employees or members of the Board as an inducement material to the individual’s entry into employment with the Company. The 2012 LTIP allows us to issue up to 2.0 million common shares of beneficial interest, of which 0.9 million remained available for issuance as of June 30, 2018 . The Inducement Plan allows us to issue up to 6.0 million shares of our beneficial interest, of which 5.4 million remained available for issuance as of June 30, 2018. As of June 30, 2018 , we had 386,448 unvested service-based share awards granted under the 2012 LTIP and 201,766 unvested service-based share awards granted under the Inducement Plan. These awards have various expiration dates through March 2023. During the six months ended June 30, 2018 , we granted the following awards: • 432,921 shares of service-based restricted stock. The service-based awards were valued based on our closing stock price as of the grant date; and • performance-based equity awards that are earned subject to a future performance measurement based on a three -year shareholder return peer comparison (“TSR Grants”). The service-based restricted share awards to employees vest over five years and the compensation expense is recognized on a graded vesting basis. The service-based restricted share awards to trustees vest over one year. We recognized expense related to service-based restricted share grants of $ 2.2 million and $ 0.5 million for the three months ended June 30, 2018 and June 30, 2017 , respectively, and $2.9 million and $1.2 million for the six months ended June 30, 2018 and June 30, 2017 , respectively. Pursuant to ASC 718 – Stock Compensation, we determine the grant date fair value of TSR Grants that will be settled in cash, and any subsequent re-measurements, based upon a Monte Carlo simulation model. We will recognize the compensation expense ratably over the requisite service period. We are required to re-value the cash awards at the end of each quarter using the same methodology as was used at the initial grant date and adjust the compensation expense accordingly. If at the end of the three -year measurement period the performance criterion is not met, compensation expense related to the cash awards previously recognized would be reversed. Compensation expense (benefit) related to the cash awards was $0.4 million and $0.4 million for the three months ended June 30, 2018 and June 30, 2017 , respectively, and an expense (benefit) of $0.4 million and $0.2 million for the six months ended June 30, 2018 and June 30, 2017 , respectively. The Company also determines the grant date fair value of the TSR Grants that will be settled in equity based upon a Monte Carlo simulation model and recognizes the compensation expense ratably over the requisite service period. These equity awards are not re-valued at the end of each quarter. The compensation cost will be recognized regardless of whether the performance criterion are met, provided the requisite service has been provided. Compensation expense related to the equity awards was $0.2 million and $0.1 million for the three months ended June 30, 2018 and June 30, 2017, respectively, and $0.3 million and $0.1 million for the six months ended June 30, 2018 and June 30, 2017 , respectively. We recognized total share-based compensation expense of $2.8 million and $1.0 million for the three months ended June 30, 2018 and June 30, 2017 , respectively, and $3.6 million and $1.5 million for the six months ended June 30, 2018 and June 30, 2017 , respectively. As of June 30, 2018 , we had $9.8 million of total unrecognized compensation expense related to unvested restricted shares and performance based equity and cash awards. This expense is expected to be recognized over a weighted-average period of 3.6 years. |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes Income Taxes We conduct our operations with the intent of meeting the requirements applicable to a REIT under sections 856 through 860 of the Internal Revenue Code. In order to maintain our qualification as a REIT, we are required to distribute annually at least 90% of our REIT taxable income, excluding net capital gain, to our shareholders. As long as we qualify as a REIT, we will generally not be liable for federal corporate income taxes. Certain of our operations, including property management and asset management, as well as ownership of certain land, are conducted through our taxable REIT subsidiaries (“TRSs”) which allows us to provide certain services and conduct certain activities that are not generally considered as qualifying REIT activities. Deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and the bases of such assets and liabilities as measured by tax laws. Deferred tax assets are reduced by a valuation allowance to the amount where realization is more likely than not assured after considering all available evidence, including expected taxable earnings and potential tax planning strategies. Our temporary differences primarily relate to deferred compensation, depreciation, land basis differences, and net operating loss carry forwards. As of June 30, 2018 , we had a federal and state deferred tax asset of $7.1 million and a valuation allowance of $7.1 million . Our deferred tax assets are reduced by an offsetting valuation allowance where there is uncertainty regarding their realizability. We believe that it is more likely than not that the results of future operations will not generate sufficient taxable income to recognize the deferred tax assets. These future operations are primarily dependent upon the profitability of our TRSs, the timing and amounts of gains on land sales, and other factors affecting the results of operations of the TRSs. If in the future we are able to conclude it is more likely than not that we will realize a future benefit from a deferred tax asset, we will reduce the related valuation allowance by the appropriate amount. The first time this occurs, it will result in a net deferred tax asset on our balance sheet and an income tax benefit of equal magnitude in our statement of operations in the period we make the determination. We recorded income tax provisions of approximately $ 0.1 million and $0.1 million for the six months ended June 30, 2018 and 2017 , respectively. Sales Taxes We collect various taxes from tenants and remit these amounts, on a net basis, to the applicable taxing authorities. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Construction Costs In connection with the development and expansion of various shopping centers as of June 30, 2018 , we had entered into agreements for construction costs of approximately $15.2 million . Litigation From time to time, we are involved in certain litigation arising in the ordinary course of business; however, we do not believe that any of this litigation will have a material effect on our consolidated financial statements. Operating Leases We lease office space for our corporate headquarters under an operating lease that expires in August 2019. We also have a ground lease at Centennial Shops located in Edina, Minnesota. The ground lease includes rent escalations throughout the lease period and expires in April 2105. We recognized rent expense related to these operating leases of $0.4 million and $0.4 million for the three months ended June 30, 2018 and 2017, respectively, and $0.9 million and $0.9 million for the six months ended June 30, 2018 and 2017, respectively. Capital Lease We have a ground lease at Buttermilk Towne Center which we have recorded as a capital lease that expires in December 2032. Interest expense for this capital lease was negligible for the six months ended June 30, 2018 and 2017 , respectively. |
Executive Reorganization
Executive Reorganization | 6 Months Ended |
Jun. 30, 2018 | |
Reorganizations [Abstract] | |
Restructuring and Related Activities Disclosure | Executive Reorganization In connection with the reorganization of the executive management team, we recorded one-time employee termination benefits of $6.3 million for the three months and six months ended June 30, 2018 . Such charges are reflected in the condensed consolidated statements of operations in general and administrative expense. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the date that the condensed consolidated financial statements were issued. On July 18, 2018, the Ramco/Lion LP, a joint venture the Company has a 30.0% interest in, sold a shopping center located in Stuart, Florida for $22.0 million . |
Organization and Basis of Pre21
Organization and Basis of Presentations (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization Ramco-Gershenson Properties Trust, together with its subsidiaries (the “Company” or "RPT"), owns and operates high-quality, dynamic open-air shopping centers located in the top U.S. metro areas. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange under the ticker symbol RPT. As of June 30, 2018, the Company's portfolio consisted of 58 shopping centers (including two shopping centers owned through joint ventures) representing 14.0 million square feet. As of June 30, 2018, the Company’s aggregate portfolio was 93.9% leased. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and our majority owned subsidiary, the Operating Partnership, Ramco-Gershenson Properties, L.P. (the "OP") ( 97.7% owned by the Company at June 30, 2018 and December 31, 2017 ), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest. We have elected to be a REIT for federal income tax purposes. All intercompany balances and transactions have been eliminated in consolidation. The information furnished is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017 . The preparation of our unaudited financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and reported amounts that are not readily apparent from other sources. Actual results could differ from those estimates. |
Recently Adopted and Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2017, the FASB issued ASU 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" ("ASU 2017-05"). ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. ASU 2017-05 also defines the term "in substance nonfinancial asset". In addition, ASU 2017-05 eliminates the guidance specific to real estate sales in ASC 360-20. It became effective for annual periods beginning after December 15, 2017, therefore we adopted the standard on January 1, 2018. In doing so, the Company recorded an adjustment under the modified retrospective method of approximately $2.2 million to shareholders' equity associated with a transaction that occurred in the fourth quarter of 2017. The adjustment had no impact on earnings or cash flows. In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 clarifies guidance about what changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. It became effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows." This new guidance became effective January 1, 2018, with early adoption permitted, and requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The pronouncement requires a retrospective transition method of adoption. The adoption of this standard resulted in the reclassification of approximately $26.1 million of proceeds from real estate dispositions during the six months ended June 30, 2017 that were held in escrow as restricted cash. In August 2016, the FASB issued ASU 2016-15 "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which clarifies the treatment of several cash flow categories. In addition, ASU 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. This update became effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. The adoption of this standard did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 is a comprehensive revenue recognition standard that superseded nearly all prior GAAP revenue recognition guidance as well as prior GAAP guidance governing the sale of non-financial assets. The standard’s core principle is that a company should recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations. In doing so, companies need to exercise more judgment and make more estimates than under prior GAAP guidance. ASU 2014-09 became effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption was permitted in periods ending after December 15, 2016. The guidance permitted two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect initially applying the guidance recognized at the date of initial application (modified retrospective method). We adopted the standard and the related updates subsequently issued by the FASB using the modified retrospective method on January 1, 2018. ASU 2014-09 applies only to certain revenue included in Other Property Income and Management and Other Fee Income in our Consolidated Statement of Operations which totaled $ 2.0 million , or less than 2.0% of total revenue, for the six months ended June 30, 2018 . The adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018. Recent Accounting Pronouncements In July 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-10, "Codification Improvements to Topic 842, Leases", which affects narrow aspects of the guidance issued in the amendments in ASU 2016-02. This standard is effective along with ASU 2016-02, for periods after December 15, 2018. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which expands the scope of Topic 718, Compensation-Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In January 2018, the FASB issued ASU 2018-01, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842". The standard provides an optional transition practical expedient for the adoption of ASU 2016-02 that, if elected, would not require an organization to reconsider its accounting for existing land easements that are not currently accounted for under the old leases standard. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective. In January 2017, the FASB issued ASU 2017-04 "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB updated Accounting Standards Codification ("ASC") Topic 326 "Financial Instruments - Credit Losses" with ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). ASU 2016-13 enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better inform credit loss estimates. ASU 2016-13 is effective for annual periods (including interim periods within those periods) beginning after December 15, 2019. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In February 2016, the FASB updated ASC Topic 842 "Leases" ("ASU 2016-02"). ASU 2016-02 requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not direct leasing costs. ASU 2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted using a modified retrospective approach. The Company continues to evaluate the effect the adoption of ASU 2016-02 will have on our consolidated financial statements and related disclosures. However, we currently believe the adoption of ASU 2016-02 will not have a material impact for operating leases where we are a lessor and we will continue to record revenues from rental properties for operating leases on a straight-line basis. In addition, for leases where the Company is a lessee, primarily the Company’s ground lease and administrative office lease, the Company believes it will record a lease liability and a right of use asset at fair value upon adoption related to these items. Additionally, only incremental direct leasing costs may be capitalized under this new guidance. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective. |
Restricted Cash | Restricted cash generally consists of funds held in escrow by lenders to pay real estate taxes, insurance premiums and certain capital expenditures. In limited instances, restricted cash may include deposits on potential future acquisitions and/or proceeds related to dispositions of real estate. |
Organization and Basis of Pre22
Organization and Basis of Presentations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balances sheets that reconciles to the total shown within the consolidated statements of cash flows. As of June 30, 2018 2017 (In thousands) Cash and cash equivalents $ 5,252 $ 4,798 Restricted cash and escrows 4,361 31,819 $ 9,613 $ 36,617 |
Property Acquisitions and Dis23
Property Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of disposition activity | The following table provides a summary of our acquisition activity for the six months ended June 30, 2018 : Gross Property Name Location GLA Acreage Date Purchase Assumed (in thousands) (In thousands) Leasehold Interest (West Oaks) Novi, MI 60 N/A 01/05/18 $ 6,365 $ — Total consolidated income producing acquisitions 60 — $ 6,365 $ — Total Acquisitions 60 — $ 6,365 $ — The following table provides a summary of our disposition activity for the six months ended June 30, 2018 . Gross Property Name Location GLA Acreage Date Sales Price Gain on Sale (In thousands) Theatre Parcel - Hartland Town Square Hartland, MI N/A 7.5 04/02/18 $ 1,450 $ 181 Peachtree Hills - Outparcel Duluth, GA N/A 1.7 05/25/18 $ 650 $ — Total outparcel dispositions — 9.2 $ 2,100 $ 181 Total Dispositions — 9.2 $ 2,100 $ 181 |
Summary of Total Aggregate Fair Value of Acquisitions Allocated | The aggregate fair value of our 2018 acquisition through June 30, 2018 , was allocated and is reflected in the following table. Allocated Fair Value (In thousands) Buildings and improvements $ 6,427 Above market leases 237 Lease origination costs 633 Other liabilities (353 ) Below market leases (579 ) Total purchase price allocated $ 6,365 |
Pro Forma Information | If the 2018 acquisition had occurred on January 1, 2017, our consolidated revenues and net income for the three and six months ended June 30, 2018 and 2017 would have been as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (In thousands) Consolidated revenue $ 69,967 $ 67,233 $ 132,693 $ 135,219 Consolidated net income available to common shareholders $ 2,627 $ 4,530 $ 8,242 $ 16,043 Total revenue and net income for the 2018 acquisition included in our condensed consolidated statement of operations for the three and six months ended June 30, 2018 were as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (In thousands) Total revenue from 2018 acquisition $ 198 $ 388 Net income from 2018 acquisition $ 127 $ 244 |
Equity Investments in Unconso24
Equity Investments in Unconsolidated Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Combined Financial Information for Unconsolidated Joint Ventures, Balance Sheets | The combined condensed financial information for our unconsolidated joint ventures is summarized as follows: Balance Sheets June 30, 2018 December 31, 2017 (In thousands) ASSETS Investment in real estate, net $ 42,090 $ 93,801 Other assets 2,373 4,099 Total Assets $ 44,463 $ 97,900 LIABILITIES AND OWNERS' EQUITY Mortgage notes payable $ — $ 42,330 Other liabilities $ 151 $ 220 Owners' equity 44,312 55,350 Total Liabilities and Owners' Equity $ 44,463 $ 97,900 RPT's equity investments in unconsolidated joint ventures $ 2,428 $ 3,493 |
Summary of Combined Financial Information for Unconsolidated Entities, Statements of Operations | Three Months Ended June 30, Six Months Ended June 30, Statements of Operations 2018 2017 2018 2017 (In thousands) (In thousands) Total revenue $ 1,235 $ 1,130 $ 2,422 $ 2,293 Total expenses 867 802 1,615 1,505 Net income $ 368 $ 328 $ 807 $ 788 RPT's share of earnings from unconsolidated joint ventures $ 202 $ 55 $ 273 $ 141 |
Information of Fees Earned | The following table provides information for our fees earned which are reported in our condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) (In thousands) Management fees $ 48 $ 63 $ 94 $ 137 Leasing fees — 10 40 89 Total $ 48 $ 73 $ 134 $ 226 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes the Company's unsecured term loan facilities and revolving credit facility: June 30, 2018 December 31, 2017 Unsecured Credit Facilities Maturity Date Principal Balance Interest Rate/Weighted Average Interest Rate Principal Balance Interest Rate/Weighted Average Interest Rate (in thousands) (in thousands) Unsecured term loan due 2020 - fixed rate (1) 5/16/2020 $ 75,000 2.99 % $ 75,000 2.99 % Unsecured term loan due 2021 - fixed rate (2) 5/29/2021 75,000 2.84 % 75,000 2.84 % Unsecured term loan due 2023 - fixed rate (3) 3/1/2023 60,000 3.60 % 60,000 3.60 % $ 210,000 3.09 % $ 210,000 3.11 % Unamortized deferred financing costs (1,008 ) (1,224 ) Term loans, net $ 208,992 $ 208,776 Revolving credit facility - variable rate 9/14/2021 $ 60,000 3.34 % 30,000 2.71 % (1) Swapped to a weighted average fixed rate of 1.69% , plus a credit spread of 1.30% , based on a leverage grid at June 30, 2018. (2) Swapped to a weighted average fixed rate of 1.49% , plus a credit spread of 1.35% , based on a leverage grid at June 30, 2018. (3) Swapped to a weighted average fixed rate of 1.95% , plus a credit spread of 1.65% , based on a leverage grid at June 30, 2018. The following table summarizes the Company's senior unsecured notes: June 30, 2018 December 31, 2017 Senior Unsecured Notes Maturity Date Principal Balance Interest Rate/Weighted Average Interest Rate Principal Balance Interest Rate/Weighted Average Interest Rate (in thousands) (in thousands) Senior unsecured notes - 3.75% due 2021 6/27/2021 $ 37,000 3.75 % $ 37,000 3.75 % Senior unsecured notes - 4.13% due 2022 12/21/2022 25,000 4.13 % 25,000 4.13 % Senior unsecured notes - 4.12% due 2023 6/27/2023 41,500 4.12 % 41,500 4.12 % Senior unsecured notes - 4.65% due 2024 5/28/2024 50,000 4.65 % 50,000 4.65 % Senior unsecured notes - 4.16% due 2024 11/4/2024 50,000 4.16 % 50,000 4.16 % Senior unsecured notes - 4.05% due 2024 11/18/2024 25,000 4.05 % 25,000 4.05 % Senior unsecured notes - 4.27% due 2025 6/27/2025 31,500 4.27 % 31,500 4.27 % Senior unsecured notes - 4.20% due 2025 7/6/2025 50,000 4.20 % 50,000 4.20 % Senior unsecured notes - 4.09% due 2025 9/30/2025 50,000 4.09 % 50,000 4.09 % Senior unsecured notes - 4.74% due 2026 5/28/2026 50,000 4.74 % 50,000 4.74 % Senior unsecured notes - 4.30% due 2026 11/4/2026 50,000 4.30 % 50,000 4.30 % Senior unsecured notes - 4.28% due 2026 11/18/2026 25,000 4.28 % 25,000 4.28 % Senior unsecured notes - 4.57% due 2027 12/21/2027 30,000 4.57 % 30,000 4.57 % Senior unsecured notes - 3.64% due 2028 11/30/2028 75,000 3.64 % 75,000 3.64 % Senior unsecured notes - 4.72% due 2029 12/21/2029 20,000 4.72 % 20,000 4.72 % $ 610,000 4.21 % $ 610,000 4.21 % Unamortized deferred financing costs (1,783 ) (1,676 ) Total $ 608,217 $ 608,324 The following table summarizes our mortgages, notes payable and capital lease obligation as of June 30, 2018 and December 31, 2017 : Notes Payable and Capital Lease Obligation June 30, December 31, (In thousands) Senior unsecured notes $ 610,000 $ 610,000 Unsecured term loan facilities 210,000 210,000 Fixed rate mortgages 119,677 120,944 Unsecured revolving credit facility 60,000 30,000 Junior subordinated notes 28,125 28,125 1,027,802 999,069 Unamortized premium 3,449 3,967 Unamortized deferred financing costs (3,448 ) (3,821 ) Total notes payable $ 1,027,803 $ 999,215 Capital lease obligation $ 1,022 $ 1,022 The following table summarizes the Company's fixed rate mortgages: June 30, 2018 December 31, 2017 Mortgage Debt Maturity Date Principal Balance Interest Rate/Weighted Average Interest Rate Principal Balance Interest Rate/Weighted Average Interest Rate (in thousands) (in thousands) Crossroads Centre Home Depot 12/1/2019 $ 3,301 7.38 % $ 3,352 7.38 % West Oaks II and Spring Meadows Place 4/20/2020 26,212 6.50 % 26,611 6.50 % Bridgewater Falls Shopping Center 2/6/2022 55,033 5.70 % 55,545 5.70 % The Shops on Lane Avenue 1/10/2023 28,650 3.76 % 28,650 3.76 % Nagawaukee II 6/1/2026 6,481 5.80 % 6,786 5.80 % $ 119,677 5.46 % $ 120,944 5.47 % Unamortized premium 3,449 3,967 Unamortized deferred financing costs (116 ) (149 ) Total $ 123,010 $ 124,762 |
Scheduled Principal Payments on Mortgages and Notes Payable | The following table presents scheduled principal payments on mortgages and notes payable as of June 30, 2018 : Year Ending December 31, (In thousands) 2018 $ 1,294 2019 5,860 2020 102,269 2021 (1) 174,508 2022 77,397 Thereafter 666,474 Subtotal debt 1,027,802 Unamortized premium 3,449 Unamortized deferred financing costs (3,448 ) Total debt $ 1,027,803 (1) Scheduled maturities in 2021 include the $60.0 million balance on the unsecured revolving credit facility drawn as of June 30, 2018 . The unsecured revolving credit facility has two six -month extensions available at the Company's option provided compliance with financial covenants is maintained. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017. Total Balance Sheet Location Fair Value Level 2 June 30, 2018 (In thousands) Derivative assets - interest rate swaps Other assets $ 6,289 $ 6,289 Derivative liabilities - interest rate swaps Other liabilities $ — $ — December 31, 2017 Derivative assets - interest rate swaps Other assets $ 3,133 $ 3,133 Derivative liabilities - interest rate swaps Other liabilities $ (208 ) $ (208 ) |
Derivative Financial Instrume27
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Notional Values and Fair Values of Derivative Financial Instruments | The following table summarizes the notional values and fair values of our derivative financial instruments as of June 30, 2018 : Hedge Notional Fixed Fair Expiration Underlying Debt Type Value Rate Value Date (In thousands) (In thousands) Derivative Assets Unsecured term loan Cash Flow $ 25,000 1.850 % $ 17 10/2018 Unsecured term loan Cash Flow 5,000 1.840 % 4 10/2018 Unsecured term loan Cash Flow 30,000 2.048 % 5 10/2018 Unsecured term loan Cash Flow 15,000 2.150 % 119 05/2020 Unsecured term loan Cash Flow 10,000 2.150 % 79 05/2020 Unsecured term loan Cash Flow 50,000 1.460 % 1,038 05/2020 Unsecured term loan Cash Flow 20,000 1.498 % 668 05/2021 Unsecured term loan Cash Flow 15,000 1.490 % 505 05/2021 Unsecured term loan Cash Flow 40,000 1.480 % 1,358 05/2021 $ 210,000 $ 3,793 Derivative Assets - Forward Swaps Unsecured term loan Cash Flow 60,000 1.770 % 2,496 03/2023 Total Derivative Assets $ 270,000 $ 6,289 |
Summary of Effect of Derivative Financial Instruments on Condensed Consolidated Statements of Operations | The effect of derivative financial instruments on our condensed consolidated statements of operations for the three months ended June 30, 2018 and 2017 is summarized as follows: Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Derivatives in Cash Flow Hedging Relationship Three Months Ended June 30, Three Months Ended June 30, 2018 2017 2018 2017 (In thousands) (In thousands) Interest rate contracts - assets $ 788 $ (699 ) Interest Expense $ 124 $ (104 ) Interest rate contracts - liabilities 10 428 Interest Expense — (257 ) Total $ 798 $ (271 ) Total $ 124 $ (361 ) The effect of derivative financial instruments on our condensed consolidated statements of operations for the six months ended June 30, 2018 and 2017 is summarized as follows: Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Derivatives in Cash Flow Hedging Relationship Six Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) (In thousands) Interest rate contracts - assets $ 3,107 $ (177 ) Interest Expense $ 50 $ (258 ) Interest rate contracts - liabilities 246 1,077 Interest Expense (39 ) (551 ) Total $ 3,353 $ 900 Total $ 11 $ (809 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (“EPS”): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (In thousands, except per share data) Net income $ 4,403 $ 6,252 $ 11,863 $ 19,666 Net income attributable to noncontrolling interest (101 ) (147 ) (275 ) (462 ) Allocation of income to restricted share awards (128 ) (78 ) (241 ) (168 ) Income attributable to RPT 4,174 6,027 11,347 19,036 Preferred share dividends (1,675 ) (1,675 ) (3,350 ) (3,350 ) Net income available to common shareholders - Basic 2,499 4,352 7,997 15,686 Net income available to common shareholders - Diluted $ 2,499 $ 4,352 $ 7,997 $ 15,686 Weighted average shares outstanding, Basic 79,519 79,344 79,471 79,322 Restricted stock awards using the treasury method 102 185 103 203 Weighted average shares outstanding, Diluted 79,621 79,529 79,574 79,525 Income per common share, Basic $ 0.03 $ 0.05 $ 0.10 $ 0.20 Income per common share, Diluted $ 0.03 $ 0.05 $ 0.10 $ 0.20 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the outstanding securities that were excluded from the computation of diluted earnings per share and the number of common shares each was convertible into (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Issued Converted Issued Converted Issued Converted Issued Converted Operating Partnership Units 1,916 1,916 1,917 1,917 1,916 1,916 1,917 1,917 Series D Preferred Shares 1,849 6,803 1,849 6,685 1,849 6,803 1,849 6,685 Performance Share Units 510 67 98 — 510 71 98 — 4,275 8,786 3,864 8,602 4,275 8,790 3,864 8,602 |
Organization and Basis of Pre29
Organization and Basis of Presentations - Additional Information (Detail) $ in Thousands, ft² in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)ft²propertypartnership_unit | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)ft²propertypartnership_unit | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Area of real estate property (in sq feet) | ft² | 14 | 14 | |||
Ownership interest | 93.90% | 93.90% | |||
Number of joint ventures | partnership_unit | 3 | 3 | |||
Ownership interest in Ramco-Gershenson Properties, L. P. | 97.70% | 97.70% | |||
Cumulative effect adjustment - ASU adoption | $ 2,160 | ||||
Net proceeds from sales of real estate | $ 1,354 | $ 27,422 | |||
Total revenue | $ 69,967 | $ 67,062 | $ 132,685 | 134,887 | |
Joint Venture One | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Ownership interest | 7.00% | 7.00% | |||
Joint Venture Two | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Ownership interest | 20.00% | 20.00% | |||
Joint Venture Three | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Ownership interest | 30.00% | 30.00% | |||
Accounting Standards Update 2016-18 | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net proceeds from sales of real estate | 26,100 | ||||
Proceeds from dispositions held in escrow (non-cash investing activity) | $ (26,100) | ||||
Retained Earnings | Accounting Standards Update 2017-05 | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Cumulative effect adjustment - ASU adoption | $ 2,200 | ||||
Other Property Income and Management and Other Fee Income | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Total revenue | $ 2,000 | ||||
Percentage of revenue (less than) | 2.00% | ||||
Shopping Centers | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Number of real estate properties owned and managed | property | 58 | 58 |
Organization and Basis of Pre30
Organization and Basis of Presentations - Reconciliation of Cash, Cash Equivalents and Restriced Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 5,252 | $ 8,081 | $ 4,798 | |
Restricted cash and escrows | 4,361 | 4,810 | 31,819 | |
Cash, cash equivalents, and restricted cash | $ 9,613 | $ 12,891 | $ 36,617 | $ 14,726 |
Real Estate - Additional Inform
Real Estate - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)propertyland | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)propertyland | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)propertyland | |
Real Estate [Abstract] | |||||
Provision for impairment | $ 216 | $ 820 | $ 216 | $ 6,537 | |
Land held for development or sale | 31,500 | 31,500 | $ 31,600 | ||
Constructions in progress | $ 46,200 | $ 46,200 | $ 26,600 | ||
Number of properties, held-for-sale | property | 0 | 0 | 0 | ||
Number of land parcel, held-for-sale | land | 0 | 0 | 0 |
Property Acquisitions and Dis32
Property Acquisitions and Dispositions - Property Acquisitions (Details) ft² in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)aft² | |
Business Acquisition [Line Items] | |
GLA (in sq ft) | a | 0 |
Acreage (in acres) | a | 9.2 |
Income Producing Property Acquisitions | |
Business Acquisition [Line Items] | |
GLA (in sq ft) | ft² | 60 |
Acreage (in acres) | a | 0 |
Purchase Price | $ 6,365 |
Assumed Debt | $ 0 |
Income Producing Property and Land and Outparcel Acquisition | |
Business Acquisition [Line Items] | |
GLA (in sq ft) | ft² | 60 |
Acreage (in acres) | a | 0 |
Purchase Price | $ 6,365 |
Assumed Debt | $ 0 |
Leasehold Interest (West Oaks) | Income Producing Property Acquisitions | |
Business Acquisition [Line Items] | |
Location | Novi, MI |
GLA (in sq ft) | ft² | 60 |
Date Acquired | Jan. 5, 2018 |
Purchase Price | $ 6,365 |
Assumed Debt | $ 0 |
Property Acquisitions and Dis33
Property Acquisitions and Dispositions - Total Aggregate Fair Value of Acquisitions Allocated (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Buildings and improvements | $ 6,427 |
Lease origination costs | 633 |
Other liabilities | (353) |
Below market leases | (579) |
Total purchase price allocated | 6,365 |
Above Market Leases | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Above market leases | $ 237 |
Property Acquisitions and Dis34
Property Acquisitions and Dispositions - Revenue and Net Income for Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Business Combinations [Abstract] | ||
Total revenue from 2018 acquisition | $ 198 | $ 388 |
Net income from 2018 acquisition | $ 127 | $ 244 |
Property Acquisitions and Dis35
Property Acquisitions and Dispositions - Unaudited Pro Forma Information (Details) - Income Producing Property Acquisitions - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Consolidated revenue | $ 69,967 | $ 67,233 | $ 132,693 | $ 135,219 |
Consolidated net income available to common shareholders | $ 2,627 | $ 4,530 | $ 8,242 | $ 16,043 |
Property Acquisitions and Dis36
Property Acquisitions and Dispositions - Dispositions (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)a | |
Business Acquisition [Line Items] | |
GLA (in sq ft) | a | 0 |
Acreage (in acres) | a | 9.2 |
Sales Price | $ 2,100 |
Gain on Sale | $ 181 |
Income Producing Property Dispositions | |
Business Acquisition [Line Items] | |
GLA (in sq ft) | a | 0 |
Acreage (in acres) | a | 9.2 |
Sales Price | $ 2,100 |
Gain on Sale | $ 181 |
Income Producing Property Dispositions | Walgreen's Data Center | |
Business Acquisition [Line Items] | |
Location | Hartland, MI |
Acreage (in acres) | a | 7.5 |
Date Sold | Apr. 2, 2018 |
Sales Price | $ 1,450 |
Gain on Sale | $ 181 |
Income Producing Property Dispositions | Auburn Mile | |
Business Acquisition [Line Items] | |
Location | Duluth, GA |
Acreage (in acres) | a | 1.7 |
Date Sold | May 25, 2018 |
Sales Price | $ 650 |
Gain on Sale | $ 0 |
Equity Investments in Unconso37
Equity Investments in Unconsolidated Joint Ventures - Additional Information (Detail) $ in Thousands | Apr. 27, 2018USD ($) | Jun. 30, 2018USD ($)partnership_unit | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)partnership_unit | Jun. 30, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Number of joint ventures | partnership_unit | 3 | 3 | |||
Ownership interest | 93.90% | 93.90% | |||
Earnings from unconsolidated joint ventures | $ 202 | $ 55 | $ 273 | $ 141 | |
Joint Venture One | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 7.00% | 7.00% | |||
Joint Venture Two | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 20.00% | 20.00% | |||
Joint Venture Three | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest | 30.00% | 30.00% | |||
Proceeds from sale of equity method investments | $ 3,100 | ||||
Return of capital on initial investment | 3,000 | ||||
Earnings from unconsolidated joint ventures | $ 100 |
Equity Investments in Unconso38
Equity Investments in Unconsolidated Joint Ventures - Summary of Combined Financial Information of Unconsolidated Entities, Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Investment in real estate, net | $ 42,090 | $ 93,801 |
Other assets | 2,373 | 4,099 |
Total Assets | 44,463 | 97,900 |
LIABILITIES AND OWNERS' EQUITY | ||
Mortgage notes payable | 0 | 42,330 |
Other liabilities | 151 | 220 |
Owners' equity | 44,312 | 55,350 |
Total Liabilities and Owners' Equity | 44,463 | 97,900 |
RPT's equity investments in unconsolidated joint ventures | $ 2,428 | $ 3,493 |
Equity Investments in Unconso39
Equity Investments in Unconsolidated Joint Ventures - Summary of Combined Financial Information of Unconsolidated Entities, Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Total revenue | $ 1,235 | $ 1,130 | $ 2,422 | $ 2,293 |
Total expenses | 867 | 802 | 1,615 | 1,505 |
Net income | 368 | 328 | 807 | 788 |
RPT's share of earnings from unconsolidated joint ventures | $ 202 | $ 55 | $ 273 | $ 141 |
Equity Investments in Unconso40
Equity Investments in Unconsolidated Joint Ventures - Information of Fees Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | $ 69,967 | $ 67,062 | $ 132,685 | $ 134,887 |
Management Fee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | 48 | 63 | 94 | 137 |
Leasing Fee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | 0 | 10 | 40 | 89 |
Management Service | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | $ 48 | $ 73 | $ 134 | $ 226 |
Debt - Summary of Mortgages, No
Debt - Summary of Mortgages, Notes Payable and Capital Lease Obligation (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Senior unsecured notes | $ 610,000 | $ 610,000 |
Unsecured term loan facilities | 210,000 | 210,000 |
Fixed rate mortgages | 119,677 | 120,944 |
Unsecured revolving credit facility | 60,000 | 30,000 |
Junior subordinated notes | 28,125 | 28,125 |
Subtotal debt | 1,027,802 | 999,069 |
Unamortized premium | 3,449 | 3,967 |
Unamortized deferred financing costs | 3,448 | 3,821 |
Total debt | 1,027,803 | 999,215 |
Capital lease obligation | $ 1,022 | $ 1,022 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Senior unsecured notes | $ 1,027,802 | $ 999,069 | |
Mortgages payable | 119,677 | 120,944 | |
Revolving credit facility, outstanding balance | 60,000 | $ 30,000 | |
Increase of revolving credit facility | 45,000 | $ 202,000 | |
Fixed Rate Mortgages | |||
Debt Instrument [Line Items] | |||
Net book value of mortgage on properties | 188,800 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, outstanding balance | 60,000 | ||
Increase of revolving credit facility | 30,000 | ||
Letter of credit, outstanding balance | 200 | ||
Letter of credit, remaining borrowing capacity | $ 289,800 | ||
Line of credit facility, interest rate | 3.34% | ||
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.30% |
Debt - Scheduled Principal Paym
Debt - Scheduled Principal Payments on Mortgages and Notes Payable (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)extension_option | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
2,018 | $ 1,294 | |
2,019 | 5,860 | |
2,020 | 102,269 | |
2,021 | 174,508 | |
2,022 | 77,397 | |
Thereafter | 666,474 | |
Subtotal debt | 1,027,802 | $ 999,069 |
Unamortized premium | 3,449 | 3,967 |
Unamortized deferred financing costs | (3,448) | (3,821) |
Total debt | 1,027,803 | $ 999,215 |
Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2,020 | $ 60,000 | |
Number of extension options | extension_option | 2 | |
Extension option, period (in months) | 6 months |
Debt - Senior Unsecured Notes (
Debt - Senior Unsecured Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 1,027,802 | $ 999,069 |
Total debt | 1,027,803 | 999,215 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 610,000 | $ 610,000 |
Weighted average interest rate | 4.21% | 4.21% |
Unamortized deferred financing costs | $ (1,783) | $ (1,676) |
Total debt | 608,217 | 608,324 |
Senior Notes | Senior Unsecured Notes 3.75% Due 2021 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 37,000 | $ 37,000 |
Stated interest rate | 3.75% | 3.75% |
Senior Notes | Senior Unsecured Notes 4.13% Due 2022 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 25,000 | $ 25,000 |
Stated interest rate | 4.13% | 4.13% |
Senior Notes | Senior Unsecured Notes 4.12% Due 2023 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 41,500 | $ 41,500 |
Stated interest rate | 4.12% | 4.12% |
Senior Notes | Senior Unsecured Notes 4.65% Due 2024 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 50,000 | $ 50,000 |
Stated interest rate | 4.65% | 4.65% |
Senior Notes | Senior Unsecured Notes 4.16% Due 2024 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 50,000 | $ 50,000 |
Stated interest rate | 4.16% | 4.16% |
Senior Notes | Senior Unsecured Notes 4.05% Due 2024 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 25,000 | $ 25,000 |
Stated interest rate | 4.05% | 4.05% |
Senior Notes | Senior Unsecured Notes 4.27% Due 2025 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 31,500 | $ 31,500 |
Stated interest rate | 4.27% | 4.27% |
Senior Notes | Senior Unsecured Notes 4.20% Due 2025 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 50,000 | $ 50,000 |
Stated interest rate | 4.20% | 4.20% |
Senior Notes | Senior Unsecured Notes 4.09% Due 2025 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 50,000 | $ 50,000 |
Stated interest rate | 4.09% | 4.09% |
Senior Notes | Senior Unsecured Notes 4.74% Due 2026 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 50,000 | $ 50,000 |
Stated interest rate | 4.74% | 4.74% |
Senior Notes | Senior Unsecured Notes 4.30% Due 2026 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 50,000 | $ 50,000 |
Stated interest rate | 4.30% | 4.30% |
Senior Notes | Senior Unsecured Notes 4.28% Due 2026 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 25,000 | $ 25,000 |
Stated interest rate | 4.28% | 4.28% |
Senior Notes | Senior Unsecured Notes 4.57% Due 2027 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 30,000 | $ 30,000 |
Stated interest rate | 4.57% | 4.57% |
Senior Notes | Senior Unsecured Notes 3.64% Due 2028 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 75,000 | $ 75,000 |
Stated interest rate | 3.64% | 3.64% |
Senior Notes | Senior Unsecured Notes 4.72% Due 2029 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 20,000 | $ 20,000 |
Stated interest rate | 4.72% | 4.72% |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Unsecured notes | $ 1,027,802 | $ 999,069 | |
Total debt | 1,027,803 | 999,215 | |
Unsecured revolving credit facility | 60,000 | 30,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Unsecured revolving credit facility | 60,000 | ||
Revolving Credit Facility | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Unsecured notes | $ 210,000 | $ 210,000 | |
Weighted average interest rate | 3.09% | 3.11% | |
Unamortized deferred financing costs | $ (1,008) | $ (1,224) | |
Total debt | $ 208,992 | $ 208,776 | |
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.34% | 2.71% | |
Unsecured revolving credit facility | $ 60,000 | $ 30,000 | |
Revolving Credit Facility | Unsecured Term Loan Due 2020 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Unsecured notes | [1] | $ 75,000 | $ 75,000 |
Stated interest rate | [1] | 2.99% | 2.99% |
Weighted average fixed interest rate | 1.69% | ||
Basis spread on variable rate | 1.30% | ||
Revolving Credit Facility | Unsecured Term Loan Due 2021 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Unsecured notes | [2] | $ 75,000 | $ 75,000 |
Stated interest rate | [2] | 2.84% | 2.84% |
Weighted average fixed interest rate | 1.49% | ||
Basis spread on variable rate | 1.35% | ||
Revolving Credit Facility | Unsecured Term Loan Due 2023 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Unsecured notes | [3] | $ 60,000 | $ 60,000 |
Stated interest rate | [3] | 3.60% | 3.60% |
Weighted average fixed interest rate | 1.95% | ||
Basis spread on variable rate | 1.65% | ||
[1] | Swapped to a weighted average fixed rate of 1.69%, plus a credit spread of 1.30%, based on a leverage grid at June 30, 2018. | ||
[2] | Swapped to a weighted average fixed rate of 1.49%, plus a credit spread of 1.35%, based on a leverage grid at June 30, 2018. | ||
[3] | Swapped to a weighted average fixed rate of 1.95%, plus a credit spread of 1.65%, based on a leverage grid at June 30, 2018. |
Debt - Mortgages (Details)
Debt - Mortgages (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unsecured notes | $ 1,027,802 | $ 999,069 |
Unamortized premium | 3,449 | 3,967 |
Unamortized deferred financing costs | (3,448) | (3,821) |
Total debt | 1,027,803 | 999,215 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 119,677 | $ 120,944 |
Weighted average interest rate | 5.46% | 5.47% |
Unamortized premium | $ 3,449 | $ 3,967 |
Unamortized deferred financing costs | (116) | (149) |
Total debt | 123,010 | 124,762 |
Mortgages | Crossroads Centre Home Depot | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 3,301 | $ 3,352 |
Stated interest rate | 7.38% | 7.38% |
Mortgages | West Oaks II and Spring Meadows Place | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 26,212 | $ 26,611 |
Stated interest rate | 6.50% | 6.50% |
Mortgages | Bridgewater Falls Shopping Center | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 55,033 | $ 55,545 |
Stated interest rate | 5.70% | 5.70% |
Mortgages | The Shops on Lane Avenue | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 28,650 | $ 28,650 |
Stated interest rate | 3.76% | 3.76% |
Mortgages | Nagawaukee II | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 6,481 | $ 6,786 |
Stated interest rate | 5.80% | 5.80% |
Fair Value - Recorded Amount of
Fair Value - Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative assets - interest rate swaps | $ 6,289 | $ 3,133 |
Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative liabilities - interest rate swaps | 0 | (208) |
Level 2 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative assets - interest rate swaps | 6,289 | 3,133 |
Level 2 | Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative liabilities - interest rate swaps | $ 0 | $ (208) |
Fair Value - Additional Inform
Fair Value - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long term debt, carrying amount | $ 1,027,803 | $ 1,027,803 | $ 999,215 | ||
Fair value, net | 1,770,454 | 1,770,454 | 1,779,147 | ||
Asset impairment charges | 216 | $ 820 | 216 | $ 6,537 | |
Fixed Rate Mortgages | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long term debt, carrying amount | 939,700 | 939,700 | 940,900 | ||
Level 2 | Fixed Rate Mortgages | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long term debt, fair value | 922,700 | 922,700 | 940,800 | ||
Level 2 | Floating Rate Debt | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long term debt, fair value | 88,100 | 88,100 | $ 58,100 | ||
Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value, net | $ 600 | $ 600 |
Derivative Financial Instrume49
Derivative Financial Instruments - Summary of Notional Values and Fair Values of Derivative Financial Instruments (Detail) - Cash Flow Hedging - Designated as Hedging Instrument | Jun. 30, 2018USD ($) |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 270,000,000 |
Derivative assets, at fair value | 6,289,000 |
Unsecured term loan facility with: 1.850 % Swap Rate, Expiration Date 10/2018 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 25,000,000 |
Fixed rate (as a percent) | 1.85% |
Derivative assets, at fair value | $ 17,000 |
Unsecured term loan facility with: 1.840 % Swap Rate, Expiration Date 10/2018 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 5,000,000 |
Fixed rate (as a percent) | 1.84% |
Derivative assets, at fair value | $ 4,000 |
Unsecured term loan facility with: 2.048 % Swap Rate, Expiration Date 10/2018 | |
Derivative [Line Items] | |
Derivative liability, notional amount | $ 30,000,000 |
Fixed rate (as a percent) | 2.048% |
Derivative assets, at fair value | $ 5,000 |
Unsecured term loan facility with: 2.150 % Swap Rate, Expiration Date 05/2020 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 15,000,000 |
Fixed rate (as a percent) | 2.15% |
Derivative assets, at fair value | $ 119,000 |
Unsecured term loan facility with: 2.150 % Swap Rate, Expiration Date 05/2020 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 10,000,000 |
Fixed rate (as a percent) | 2.15% |
Derivative assets, at fair value | $ 79,000 |
Unsecured term loan facility with: 1.460 % Swap Rate, Expiration Date 05/2020 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 50,000,000 |
Fixed rate (as a percent) | 1.46% |
Derivative assets, at fair value | $ 1,038,000 |
Unsecured term loan facility with: 1.498 % Swap Rate, Expiration Date 05/2021 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 20,000,000 |
Fixed rate (as a percent) | 1.498% |
Derivative assets, at fair value | $ 668,000 |
Unsecured term loan facility with: 1.490 % Swap Rate, Expiration Date 05/2021 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 15,000,000 |
Fixed rate (as a percent) | 1.49% |
Derivative assets, at fair value | $ 505,000 |
Unsecured term loan facility with: 1.480 % Swap Rate, Expiration Date 05/2021 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 40,000,000 |
Fixed rate (as a percent) | 1.48% |
Derivative assets, at fair value | $ 1,358,000 |
Interest Rate Swap | |
Derivative [Line Items] | |
Derivative asset, notional amount | 210,000,000 |
Derivative assets, at fair value | 3,793,000 |
Unsecured term loan facility with: 1.770 % Swap Rate, Expiration Date 03/2023 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 60,000,000 |
Fixed rate (as a percent) | 1.77% |
Derivative assets, at fair value | $ 2,496,000 |
Derivative Financial Instrume50
Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 798 | $ (271) | $ 3,353 | $ 900 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | 124 | (361) | 11 | (809) |
Derivative Assets | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 788 | (699) | 3,107 | (177) |
Derivative Liabilities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 10 | 428 | 246 | 1,077 |
Interest Expense | Derivative Assets | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | 124 | (104) | 50 | (258) |
Interest Expense | Derivative Liabilities | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ (257) | $ (39) | $ (551) |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 4,403 | $ 6,252 | $ 11,863 | $ 19,666 |
Net income attributable to noncontrolling interest | (101) | (147) | (275) | (462) |
Allocation of income to restricted share awards | (128) | (78) | (241) | (168) |
Income attributable to RPT | 4,174 | 6,027 | 11,347 | 19,036 |
Preferred share dividends | (1,675) | (1,675) | (3,350) | (3,350) |
Net income available to common shareholders - Basic | 2,499 | 4,352 | 7,997 | 15,686 |
Net income available to common shareholders - Diluted | $ 2,499 | $ 4,352 | $ 7,997 | $ 15,686 |
Weighted average shares outstanding, Basic | 79,519 | 79,344 | 79,471 | 79,322 |
Restricted stock awards using the treasury method (in shares) | 102 | 185 | 103 | 203 |
Weighted average shares outstanding, Diluted | 79,621 | 79,529 | 79,574 | 79,525 |
Income per common share, Basic (in usd per share) | $ 0.03 | $ 0.05 | $ 0.10 | $ 0.20 |
Income per common share, Diluted (in usd per share) | $ 0.03 | $ 0.05 | $ 0.10 | $ 0.20 |
Earnings Per Common Share - Ant
Earnings Per Common Share - Antidilutive (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 4,275 | 3,864 | 4,275 | 3,864 |
Converted (in shares) | 8,786 | 8,602 | 8,790 | 8,602 |
Operating Partnership Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 1,916 | 1,917 | 1,916 | 1,917 |
Converted (in shares) | 1,916 | 1,917 | 1,916 | 1,917 |
Series D Preferred Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 1,849 | 1,849 | 1,849 | 1,849 |
Converted (in shares) | 6,803 | 6,685 | 6,803 | 6,685 |
Performance Share Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 510 | 98 | 510 | 98 |
Converted (in shares) | 67 | 0 | 71 | 0 |
Share-based Compensation Plans
Share-based Compensation Plans - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)planshares | Jun. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans in effect | plan | 2 | |||
Performance-based liability awards, measurement period (in years) | 3 years | |||
Share-based compensation expenses | $ | $ 2.8 | $ 1 | $ 3.6 | $ 1.5 |
Compensation expense (benefit) related to cash awards | $ | 0.4 | 0.4 | 0.4 | 0.2 |
Total unrecognized compensation expense | $ | $ 9.8 | $ 9.8 | ||
Total unrecognized compensation expense, weighted average period of recognition | 3 years 7 months 6 days | |||
Long-Term Incentive Plan ("LTIP") | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 2,000,000 | 2,000,000 | ||
Number of shares available for issuance | 900,000 | 900,000 | ||
Number of shares terminated | 386,448 | |||
Inducement Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 6,000,000 | 6,000,000 | ||
Number of shares available for issuance | 5,400,000 | 5,400,000 | ||
Number of shares terminated | 201,766 | |||
Service-based restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service based restricted stock, shares granted | 432,921 | |||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | $ | $ 2.2 | 0.5 | $ 2.9 | 1.2 |
Equity Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | $ | $ 0.2 | $ 0.1 | $ 0.3 | $ 0.1 |
Employee | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service based restricted stock, vesting period (in years) | 5 years | |||
Trustee | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service based restricted stock, vesting period (in years) | 1 year |
Taxes - Additional Information
Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Tax Credit Carryforward [Line Items] | ||||
Annual distribution of REIT taxable income (as a percent) | 90.00% | 90.00% | ||
Income tax provision (benefit) | $ 33 | $ 25 | $ 51 | $ 53 |
Federal and State Income Taxes | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal and state deferred tax asset | 7,100 | 7,100 | ||
Federal and state deferred tax asset, valuation allowance | $ 7,100 | $ 7,100 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Construction costs related to development and expansion | $ 15.2 | |||
Operating leases, rent expense | $ 0.4 | $ 0.4 | $ 0.9 | $ 0.9 |
Executive Reorganization (Detai
Executive Reorganization (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
One-time Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | $ 6.3 | $ 6.3 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jul. 18, 2018 | Jun. 30, 2018 |
Subsequent Event [Line Items] | ||
Ownership interest | 93.90% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Gain (loss) on sale of properties | $ 22 | |
Ownership interest | 30.00% |