Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'ACADIA REALTY TRUST | ' |
Entity Central Index Key | '0000899629 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 57,376,662 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Operating real estate | ' | ' |
Land | $354,846 | $336,251 |
Buildings and improvements | 1,192,893 | 1,140,613 |
Construction in progress | 5,764 | 4,836 |
Gross operating real estate | 1,553,503 | 1,481,700 |
Less: accumulated depreciation | 232,301 | 229,538 |
Net operating real estate | 1,321,202 | 1,252,162 |
Real estate under development | 369,407 | 337,353 |
Notes receivable and preferred equity investments, net | 119,639 | 126,656 |
Investments in and advances to unconsolidated affiliates | 178,068 | 181,322 |
Cash and cash equivalents | 72,792 | 79,189 |
Cash in escrow | 19,813 | 19,822 |
Restricted cash | 94,737 | 109,795 |
Rents receivable, net | 30,012 | 29,574 |
Deferred charges, net | 29,989 | 30,775 |
Acquired lease intangibles, net | 40,472 | 33,663 |
Prepaid expenses and other assets | 51,369 | 44,212 |
Assets of discontinued operations | 18,362 | 20,434 |
Total assets | 2,345,862 | 2,264,957 |
LIABILITIES | ' | ' |
Mortgage and other notes payable | 1,108,304 | 1,039,617 |
Convertible notes payable | 380 | 380 |
Distributions in excess of income from, and investments in, unconsolidated affiliates | 8,670 | 8,701 |
Accounts payable and accrued expenses | 41,472 | 38,050 |
Dividends and distributions payable | 13,741 | 13,455 |
Acquired lease intangibles, net | 22,233 | 22,394 |
Other liabilities | 20,155 | 18,265 |
Liabilities of discontinued operations | 106 | 2,507 |
Total liabilities | 1,215,061 | 1,143,369 |
Shareholders' Equity | ' | ' |
Common shares, $.001 par value, authorized 100,000,000 shares; issued and outstanding 56,739,739 and 55,643,068 shares, respectively | 57 | 56 |
Additional paid-in capital | 693,633 | 665,301 |
Accumulated other comprehensive (loss) income | -407 | 1,132 |
Retained earnings | 46,325 | 37,747 |
Total shareholders’ equity | 739,608 | 704,236 |
Noncontrolling interests | 391,193 | 417,352 |
Total equity | 1,130,801 | 1,121,588 |
Total liabilities and equity | $2,345,862 | $2,264,957 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 56,739,739 | 55,643,068 |
Common stock, shares outstanding | 56,739,739 | 55,643,068 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | ' | ' |
Rental income | $33,818 | $28,781 |
Interest income | 3,164 | 2,898 |
Expense reimbursements | 8,790 | 7,282 |
Other | 913 | 3,328 |
Total revenues | 46,685 | 42,289 |
Operating Expenses | ' | ' |
Property operating | 7,124 | 4,450 |
Other operating | 687 | 1,512 |
Real estate taxes | 5,670 | 5,021 |
General and administrative | 6,896 | 5,626 |
Depreciation and amortization | 11,587 | 9,229 |
Total operating expenses | 31,964 | 25,838 |
Operating income | 14,721 | 16,451 |
Equity in earnings of unconsolidated affiliates | 3,029 | 2,250 |
Loss on debt extinguishment | -203 | 0 |
Gain on disposition of property | 12,387 | 0 |
Interest and other finance expense | -10,651 | -9,285 |
Income from continuing operations before income taxes | 19,283 | 9,416 |
Income tax (provision) benefit | -168 | 139 |
Income from continuing operations | 19,115 | 9,555 |
Discontinued Operations | ' | ' |
Operating income from discontinued operations | 0 | 1,624 |
Gain on sale of properties | 12,387 | 0 |
Income from discontinued operations | 0 | 1,624 |
Net income | 19,115 | 11,179 |
Noncontrolling interests | ' | ' |
Continuing operations | 2,480 | 35 |
Discontinued operations | 0 | -1,591 |
Net loss (income) attributable to noncontrolling interests | 2,480 | -1,556 |
Net income attributable to Common Shareholders | $21,595 | $9,623 |
Basic Earnings per Share | ' | ' |
Income from continuing operations (in dollars per share) | $0.38 | $0.18 |
Income from discontinued operations (in dollars per share) | $0 | $0 |
Basic earnings per share (in dollars per share) | $0.38 | $0.18 |
Diluted Earnings per Share | ' | ' |
Income from continuing operations (in dollars per share) | $0.38 | $0.18 |
Income from discontinued operations (in dollars per share) | $0 | $0 |
Diluted earnings per share (in dollars per share) | $0.38 | $0.18 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $19,115 | $11,179 |
Other comprehensive (loss) income | ' | ' |
Unrealized loss on valuation of swap agreements | -2,329 | -1,092 |
Reclassification of realized interest on swap agreements | 837 | 592 |
Other comprehensive loss | -1,492 | -500 |
Comprehensive income | 17,623 | 10,679 |
Comprehensive loss (income) attributable to noncontrolling interests | 2,433 | -1,681 |
Comprehensive income attributable to Common Shareholders | $20,056 | $8,998 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Parent | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2013 | $1,121,588 | $704,236 | $56 | $665,301 | $1,132 | $37,747 | $417,352 |
Balance (in Shares) at Dec. 31, 2013 | 55,643,068 | ' | 55,643,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Conversion of OP Units to Common Shares by limited partners of the Operating Partnership (in Shares) | ' | ' | 27,000 | ' | ' | ' | ' |
Conversion of OP Units to Common Shares by limited partners of the Operating Partnership | 0 | 648 | 0 | 648 | 0 | 0 | -648 |
Issuance of Common Shares, net of issuance costs (in Shares) | ' | ' | 1,054,000 | ' | ' | ' | ' |
Issuance of Common Shares, net of issuance costs | 27,404 | 27,404 | 1 | 27,403 | 0 | 0 | 0 |
Dividends declared | -13,740 | -13,017 | 0 | 0 | 0 | -13,017 | -723 |
Vesting of employee Restricted Share and LTIP awards (in Shares) | ' | ' | 16,000 | ' | ' | ' | ' |
Vesting of employee Restricted Share and LTIP awards | 2,135 | 281 | 0 | 281 | 0 | 0 | 1,854 |
Noncontrolling interest distributions | -32,921 | 0 | 0 | 0 | 0 | 0 | -32,921 |
Noncontrolling Interest, Increase from Contributions | 8,712 | 0 | 0 | 0 | 0 | 0 | 8,712 |
Balance before adjustment towards comprehensive income (in Shares) | ' | ' | 56,740,000 | ' | ' | ' | ' |
Balance before adjustment towards comprehensive income | 1,113,178 | 719,552 | 57 | 693,633 | 1,132 | 24,730 | 393,626 |
Comprehensive (loss) income: | ' | ' | ' | ' | ' | ' | ' |
Net income | 19,115 | 21,595 | 0 | 0 | 0 | 21,595 | -2,480 |
Unrealized loss on valuation of swap agreements | -2,329 | -2,376 | 0 | 0 | -2,376 | 0 | 47 |
Reclassification of realized interest on swap agreements | 837 | 837 | 0 | 0 | 837 | 0 | 0 |
Total comprehensive (loss) income | 17,623 | 20,056 | 0 | 0 | -1,539 | 21,595 | -2,433 |
Balance at Mar. 31, 2014 | $1,130,801 | $739,608 | $57 | $693,633 | ($407) | $46,325 | $391,193 |
Balance (in Shares) at Mar. 31, 2014 | 56,739,739 | ' | 56,740,000 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Common Stock, Dividends, Per Share, Declared | $0.63 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $19,115 | $11,179 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 11,587 | 10,628 |
Amortization of financing costs | 688 | 734 |
Gain on disposition of property | -12,387 | 0 |
Share-based compensation expense | 2,087 | 1,411 |
Equity in earnings of unconsolidated affiliates | -3,029 | -2,250 |
Distributions of operating income from unconsolidated affiliates | 2,562 | 1,208 |
Other, net | -648 | -1,476 |
Changes in assets and liabilities | ' | ' |
Cash in escrow | -141 | -274 |
Rents receivable, net | -486 | -878 |
Prepaid expenses and other assets | -23 | -15,021 |
Accounts payable and accrued expenses | 2,507 | -739 |
Other liabilities | 345 | -289 |
Net cash provided by operating activities | 22,177 | 4,233 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Acquisition of real estate | -90,500 | -86,600 |
Redevelopment and property improvement costs | -37,505 | -17,941 |
Deferred leasing costs | -369 | -2,220 |
Investments in and advances to unconsolidated affiliates | -21,568 | -2 |
Return of capital from unconsolidated affiliates | 22,491 | 482 |
Consolidation of previously unconsolidated investment | 0 | 1,864 |
Proceeds from notes receivable | 7,156 | 5,529 |
Net cash used in investing activities | -120,295 | -98,888 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Principal payments on mortgage notes | -38,972 | -47,136 |
Proceeds received from mortgage notes | 130,700 | 254,000 |
Loan proceeds held as restricted cash | 15,058 | -151,596 |
Deferred financing and other costs | -921 | -9,998 |
Capital contributions from noncontrolling interests | 8,712 | 0 |
Distributions to noncontrolling interests | -33,577 | -3,098 |
Dividends paid to Common Shareholders | -12,798 | -9,417 |
Proceeds from issuance of Common Shares, net of issuance costs of $429 and $843, respectively | 23,519 | 51,840 |
Other employee and trustee stock compensation, net | 0 | 78 |
Net cash provided by financing activities | 91,721 | 84,673 |
Decrease in cash and cash equivalents | -6,397 | -9,982 |
Cash and cash equivalents, beginning of period | 79,189 | 91,813 |
Cash and cash equivalents, end of period | 72,792 | ' |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid during the period for interest, net of capitalized interest of $2,892 and $1,664, respectively | 12,173 | 5,858 |
Cash paid for income taxes | 281 | 12 |
Supplemental disclosure of non-cash investing activities | ' | ' |
Disposition of real estate through cancellation of debt | -22,865 | 0 |
Acquisition of real estate through conversion of notes receivable | 0 | 18,500 |
Consolidation of previously unconsolidated investment | ' | ' |
Real estate, net | 0 | -118,484 |
Mortgage notes payable | 0 | 166,200 |
Distributions in excess of income from, and investments in, unconsolidated affiliates | 0 | -10,298 |
Other assets and liabilities | 0 | -1,605 |
Noncontrolling interest | 0 | -33,949 |
Cash included in consolidation of previously unconsolidated investment | $0 | $1,864 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock issuance costs | $1,430 | $2,000 |
Cash paid for capitalized interest | $6,429 | $4,515 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||
Organization and Basis of Presentation | ' | |||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | ||||||||||||||||||
Business and Organization | ||||||||||||||||||
Acadia Realty Trust (the "Trust") and subsidiaries (collectively, the "Company"), is a fully-integrated equity real estate investment trust ("REIT") focused on the acquisition, ownership, management and redevelopment of high-quality retail properties located in key street and urban retail corridors as well as suburban locations within high-barrier-to-entry, densely-populated metropolitan areas in the United States along the East Coast and in Chicago. | ||||||||||||||||||
All of the Company's assets are held by, and all of its operations are conducted through, Acadia Realty Limited Partnership (the "Operating Partnership") and entities in which the Operating Partnership owns an interest. As of March 31, 2014, the Trust controlled approximately 96% of the Operating Partnership as the sole general partner. As the general partner, the Trust is entitled to share, in proportion to its percentage interest, in the cash distributions and profits and losses of the Operating Partnership. The limited partners primarily represent entities or individuals that contributed their interests in certain properties or entities to the Operating Partnership in exchange for common or preferred units of limited partnership interest ("Common OP Units" or "Preferred OP Units") and employees who have been awarded restricted OP units ("LTIP Units") as long-term incentive compensation (Note 13). Limited partners holding Common OP Units are generally entitled to exchange their units on a one-for-one basis for common shares of beneficial interest of the Trust ("Common Shares"). | ||||||||||||||||||
As of March 31, 2014, the Company has ownership interests in 80 properties within its core portfolio, which consist of those properties either wholly owned, or partially owned through joint venture interests, by the Operating Partnership, or subsidiaries thereof, not including those properties owned through its opportunity funds ("Core Portfolio"). The Company also has ownership interests in 39 properties within its four opportunity funds, Acadia Strategic Opportunity Fund, L.P. ("Fund I"), Acadia Strategic Opportunity Fund II, LLC ("Fund II"), Acadia Strategic Opportunity Fund III LLC ("Fund III") and Acadia Strategic Opportunity Fund IV LLC ("Fund IV" and together with Funds I, II and III, the "Funds"). The 119 Core Portfolio and Fund properties consist of commercial properties, which are primarily high-quality urban and/or street retail properties, community shopping centers and mixed-use properties with a retail component. Fund I and Fund II also include investments in operating companies through Acadia Mervyn Investors I, LLC ("Mervyns I"), Acadia Mervyn Investors II, LLC ("Mervyns II") and, in certain instances, directly through Fund II, all on a non-recourse basis. These investments comprise and are referred to as the Company's Retailer Controlled Property Initiative ("RCP Venture"). | ||||||||||||||||||
The Operating Partnership is the sole general partner or managing member of the Funds and Mervyns I and II and earns fees or priority distributions for asset management, property management, construction, redevelopment, leasing and legal services. Cash flows from the Funds and RCP Venture are distributed pro-rata to their respective partners and members (including the Operating Partnership) until each receives a certain cumulative return ("Preferred Return"), and the return of all capital contributions. Thereafter, remaining cash flow is distributed 20% to the Operating Partnership ("Promote") and 80% to the partners or members (including the Operating Partnership). | ||||||||||||||||||
Following is a table summarizing the general terms and the Operating Partnership's equity interests in the Funds and Mervyns I and II: | ||||||||||||||||||
Entity | Formation Date | Operating Partnership Share of Capital | Committed Capital (2) | Capital Called as of March 31, 2014 (2) | Equity Interest Held By Operating Partnership | Preferred Return | Capital Returned as of March 31, 2014 (3) | |||||||||||
Fund I and Mervyns I (1) | Sep-01 | 22.22 | % | $ | 90 | $ | 86.6 | 37.78 | % | 9 | % | $ | 86.6 | |||||
Fund II and Mervyns II (2) | Jun-04 | 20 | % | 300 | 300 | 20 | % | 8 | % | 84.5 | ||||||||
Fund III | May-07 | 19.9 | % | 475 | 357.7 | 19.9 | % | 6 | % | 196.8 | ||||||||
Fund IV | May-12 | 23.12 | % | 540.6 | 106.4 | 23.12 | % | 6 | % | — | ||||||||
Notes: | ||||||||||||||||||
(1) Fund I and Mervyns I have returned all capital and preferred return. The Operating Partnership is now entitled to a Promote on all future cash distributions. | ||||||||||||||||||
(2) During 2013, a distribution of $47.1 million was made to the Fund II investors, including the Operating Partnership. This amount is subject to recontribution to Fund II until December 2016, if needed to fund the on-going development and construction of existing projects. | ||||||||||||||||||
(3) Represents the total for the Funds, including the Operating Partnership and noncontrolling interests' shares. | ||||||||||||||||||
1. ORGANIZATION AND BASIS OF PRESENTATION (continued) | ||||||||||||||||||
Basis of Presentation | ||||||||||||||||||
The consolidated financial statements include the consolidated accounts of the Company and its investments in entities in which the Company is presumed to have control in accordance with the consolidation guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). Investments in entities for which the Company has the ability to exercise significant influence but does not have financial or operating control are accounted for under the equity method of accounting. Accordingly, the Company's share of the net earnings (or losses) of entities accounted for under the equity method are included in consolidated net income under the caption, Equity in Earnings of Unconsolidated Affiliates. Investments in entities for which the Company does not have the ability to exercise any influence are accounted for under the cost method. | ||||||||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. The information furnished in the accompanying consolidated financial statements reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the aforementioned consolidated financial statements for the interim periods. These consolidated financial statements should be read in conjunction with the Company's 2013 Annual Report on Form 10-K, as filed with the SEC on February 26, 2014. | ||||||||||||||||||
Reclassifications | ||||||||||||||||||
Certain reclassifications have been made to the 2013 financial statements to conform to the 2014 presentation. | ||||||||||||||||||
Real Estate | ||||||||||||||||||
The Company reviews its long-lived assets for impairment when there is an event or change in circumstances that indicates that the carrying amount may not be recoverable. The Company measures and records impairment losses and reduces the carrying value of properties when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying cost to fair value, and for properties held-for-sale, the Company reduces its carrying value to the fair value less costs to dispose. Management does not believe that the carrying values of any of its properties are impaired as of March 31, 2014. | ||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||
During April 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-08, "Presentation of Financial Statements and Property, Plant and Equipment; Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 modifies the requirements for reporting discontinued operations. Under the amendments in ASU 2014-08, the definition of discontinued operation has been modified to only include those disposals of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. ASU 2014-08 shall be applied prospectively for periods beginning on or after December 15, 2014, with early adoption permitted. The Company adopted ASU 2014-08 for the quarter ended March 31, 2014. The Company has adopted this standard on a prospective basis for transactions that have occurred after the adoption date. |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Common Share | ' | |||||||
EARNINGS PER COMMON SHARE | ||||||||
Basic earnings per Common Share is computed by dividing net income attributable to Common Shareholders by the weighted average Common Shares outstanding. At March 31, 2014, the Company has unvested LTIP Units (Note 13) which provide for non-forfeitable rights to dividend equivalent payments. Accordingly, these unvested LTIP Units are considered participating securities and are included in the computation of basic earnings per Common Share pursuant to the two-class method. | ||||||||
Diluted earnings per Common Share reflects the potential dilution of the conversion of obligations and the assumed exercises of securities including the effects of restricted share unit ("Restricted Share Units") and share option awards issued under the Company's Share Incentive Plans (Note 13). The effect of the assumed conversion of 188 Series A Preferred OP Units into 25,067 Common Shares would be dilutive and therefore are included in the computation of diluted earnings per share for the three months ended March 31, 2014. The effect of the assumed conversion of 188 Series A Preferred OP Units into 25,067 Common Shares would be anti-dilutive and are therefore not included in the computation of diluted earnings per share for the three months ended March 31, 2013. | ||||||||
The effect of the conversion of Common OP Units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share. The conversion of the convertible notes payable (Note 9) is not included in the computation of basic and diluted earnings per share as such conversion, based on the current market price of the Common Shares, would be settled with cash. | ||||||||
The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the periods indicated: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(dollars in thousands, except per share amounts) | 2014 | 2013 | ||||||
Numerator | ||||||||
Income from continuing operations | $ | 21,595 | $ | 9,590 | ||||
Less: net income attributable to participating securities | 392 | 172 | ||||||
Income from continuing operations, net of income attributable to participating securities | 21,203 | 9,418 | ||||||
Denominator | ||||||||
Weighted average shares for basic earnings per share | 55,953 | 53,437 | ||||||
Effect of dilutive securities: | ||||||||
Employee Restricted Share Units and share options | 40 | 60 | ||||||
Convertible Preferred OP Units | 25 | — | ||||||
Denominator for diluted earnings per share | 56,018 | 53,497 | ||||||
Basic earnings per Common Share from continuing operations attributable to Common Shareholders | $ | 0.38 | $ | 0.18 | ||||
Diluted earnings per Common Share from continuing operations attributable to Common Shareholders | $ | 0.38 | $ | 0.18 | ||||
SHAREHOLDERS_EQUITY_AND_NONCON
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2014 | |
Noncontrolling Interest [Abstract] | ' |
Shareholders' Equity And Noncontrolling Interests | ' |
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS | |
During the first quarter 2014, the Company issued 1.1 million Common Shares under its at-the-market ("ATM") program, generating gross proceeds of $27.8 million and net proceeds of $27.5 million. | |
The net proceeds from the Company's ATM equity programs have been, and will be, used by the Company primarily to fund acquisitions directly in the Core Portfolio and through its capital contributions to the Funds. | |
Noncontrolling interests represent the portion of equity in entities consolidated in the accompanying consolidated financial statements that the Company does not own. Such noncontrolling interests are reported on the Consolidated Balance Sheets within equity, separately from shareholders' equity and include third party interests in the Company’s Funds and other entities. It also includes interests in the Operating Partnership which represent (i) the limited partners’ 1,457,467 Common OP Units at both March 31, 2014 and December 31, 2013; (ii) 188 Series A Preferred OP Units at March 31, 2014 and December 31, 2013; and (iii) 738,367 and 496,047 LTIP Units at March 31, 2014 and December 31, 2013, respectively. |
ACQUISITION_OF_REAL_ESTATE_AND
ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
ACQUISITION AND DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS ABSTRACT | ' | ||||||||||
ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS | ' | ||||||||||
ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS | |||||||||||
Acquisitions | |||||||||||
During 2014, the Company acquired the following properties through its Core Portfolio and Fund IV as follows: | |||||||||||
Core Portfolio | |||||||||||
(dollars in millions) | |||||||||||
Property | GLA | Percent Owned | Type | Month of Acquisition | Purchase Price | Location | |||||
11 E Walton | 6,738 | 100 | % | Street Retail | January | $ | 44 | Chicago, IL | |||
61 Main Street | 3,400 | 100 | % | Street Retail | February | 7.3 | Westport, CT | ||||
865 W North Avenue | 16,000 | 100 | % | Street Retail | March | 14.8 | Chicago, IL | ||||
252-256 Greenwich Avenue | 9,172 | 100 | % | Street Retail | March | 24.5 | Greenwich, CT | ||||
Total | 35,310 | $ | 90.6 | ||||||||
The Company expensed $0.7 million of acquisition costs for the three months ended March 31, 2014 related to the Core Portfolio. | |||||||||||
Fund IV | |||||||||||
(dollars in millions) | |||||||||||
Property | GLA | Percent Owned | Type | Month of Acquisition | Purchase Price | Location | |||||
Broughton Street Portfolio | 55,565 | 50 | % | Street Retail | March | $ | 4.9 | Savannah, GA | |||
Total | 55,565 | $ | 4.9 | ||||||||
The Company expensed $0.4 million of acquisition costs for the three months ended March 31, 2014 related to Fund IV. | |||||||||||
4. ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (continued) | |||||||||||
Acquisitions (continued) | |||||||||||
Purchase Price Allocations | |||||||||||
The above acquisitions have been accounted for as business combinations. The purchase prices were allocated to the acquired assets and liabilities based on their estimated fair values at the dates of acquisition. The preliminary measurements of fair value reflected below are subject to change. The Company expects to finalize the valuations and complete the purchase price allocations within one year from the dates of acquisition. | |||||||||||
The following table summarizes the Company's preliminary allocations of the purchase prices of assets acquired and liabilities assumed during 2014 which have yet to be finalized: | |||||||||||
(dollars in thousands) | Preliminary Purchase Price Allocations | ||||||||||
Land | $ | 23,865 | |||||||||
Buildings and improvements | 71,586 | ||||||||||
Total consideration | $ | 95,451 | |||||||||
During 2013, the Company acquired properties and recorded the preliminary allocations of the purchase prices to the assets acquired based on provisional measurements of fair value. During 2014, the Company finalized the allocations of the purchase prices and made certain measurement period adjustments. The following table summarizes the preliminary allocations of the purchase prices of these properties as recorded as of December 31, 2013, and the finalized allocations as adjusted as of March 31, 2014: | |||||||||||
(dollars in thousands) | Purchase Price Allocations as Originally Reported | Adjustments | Finalized Purchase Price Allocations | ||||||||
Land | $ | 22,182 | $ | (605 | ) | $ | 21,577 | ||||
Buildings and improvements | 84,061 | (7,514 | ) | 76,547 | |||||||
Acquisition-related intangible assets (in Acquired lease intangibles, net) | — | 9,092 | 9,092 | ||||||||
Acquisition-related intangible liabilities (in Acquired lease intangibles, net) | — | (973 | ) | (973 | ) | ||||||
Total consideration | $ | 106,243 | $ | — | $ | 106,243 | |||||
Dispositions | |||||||||||
During March 2014, the Company's Walnut Hill property, which was subject to $22.9 million of non-recourse debt was foreclosed upon by the lender, resulting in a $12.4 million gain. | |||||||||||
4. ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (continued) | |||||||||||
Discontinued Operations | |||||||||||
Prior to the Company's adoption of ASU 2014-08, it reported properties held for sale or sold during the periods presented as discontinued operations. The results of discontinued operations are reflected as a separate component within the accompanying Consolidated Balance Sheets and Consolidated Statements of Income for all periods presented. As of March 31, 2014, one of the properties within the Funds was held for sale and, as it was previously reported as a discontinued operation, is reflected as such. | |||||||||||
The combined assets and liabilities and the results of operations of the properties classified as discontinued operations are summarized for each period presented as follows: | |||||||||||
(dollars in thousands) | |||||||||||
BALANCE SHEETS | 31-Mar-14 | 31-Dec-13 | |||||||||
ASSETS | |||||||||||
Net real estate | $ | 18,048 | $ | 17,991 | |||||||
Rents receivable, net | 33 | 565 | |||||||||
Deferred charges, net | 38 | 38 | |||||||||
Prepaid expenses and other assets | 243 | 1,840 | |||||||||
Total assets of discontinued operations | $ | 18,362 | $ | 20,434 | |||||||
LIABILITIES | |||||||||||
Accounts payable and accrued expenses | $ | 104 | $ | 1,473 | |||||||
Other liabilities | 2 | 1,034 | |||||||||
Total liabilities of discontinued operations | $ | 106 | $ | 2,507 | |||||||
Three Months Ended | |||||||||||
(dollars in thousands) | March 31, | ||||||||||
STATEMENT OF INCOME | 2013 | ||||||||||
Total revenues | $ | 6,180 | |||||||||
Total expenses | 4,556 | ||||||||||
Operating income | 1,624 | ||||||||||
Income from discontinued operations attributable to noncontrolling interests | (1,591 | ) | |||||||||
Income from discontinued operations attributable to Common Shareholders | $ | 33 | |||||||||
INVESTMENTS_IN_AND_ADVANCES_TO
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Investments in and Advances to Unconsolidated Affiliates | ' | ||||||||||||||||
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES | |||||||||||||||||
Core Portfolio | |||||||||||||||||
The Company owns a 49% interest in a 311,000 square foot shopping center located in White Plains, New York ("Crossroads"), a 50% interest in an approximately 28,000 square foot retail portfolio located in Georgetown, Washington D.C. (the "Georgetown Portfolio") and a 22.22% interest in an approximately 20,000 square foot retail property located in Wilmington, Delaware ("Route 202 Shopping Center"). These investments are accounted for under the equity method. | |||||||||||||||||
Funds | |||||||||||||||||
RCP Venture | |||||||||||||||||
The Funds, together with two unaffiliated partners formed an investment group, the RCP Venture, for the purpose of making investments in surplus or underutilized properties owned by retailers and, in some instances, the retailers' operating company. The RCP Venture is neither a single entity nor a specific investment and the Company has no control or rights with respect to the formation and operation of these investments. The Company has made these investments through its subsidiaries, Mervyns I, Mervyns II and Fund II, (together the "Acadia Investors"), all on a non-recourse basis. Through March 31, 2014, the Acadia Investors have made investments in Mervyns Department Stores ("Mervyns") and Albertsons including additional investments in locations that are separate from these original investments ("Add-On Investments"). Additionally, they have invested in Shopko, Marsh and Rex Stores Corporation (collectively "Other RCP Investments"). The Company accounts for its investments in Mervyns and Albertsons on the equity method as it has the ability to exercise significant influence, but does not have any rights with respect to financial or operating control. The Company accounts for its investments in its Add-On Investments and Other RCP Investments on the cost method as it does not have any influence over such entities' operating and financial policies nor any rights with respect to the control and operation of these entities. During the three months ended March 31, 2014, the Company received distributions from Rex Stores of $1.2 million of which the Operating Partnership's share was $0.2 million. | |||||||||||||||||
The following table summarizes activity related to the RCP Venture investments from inception through March 31, 2014: | |||||||||||||||||
(dollars in thousands) | Investment Group Share | Operating Partnership Share | |||||||||||||||
Investment | Year Acquired | Invested | Invested | ||||||||||||||
Capital | Distributions | Capital | Distributions | ||||||||||||||
and Advances | and Advances | ||||||||||||||||
Mervyns | 2004 | $ | 26,058 | $ | 46,916 | $ | 4,901 | $ | 11,451 | ||||||||
Mervyns Add-On investments | 2005/2008 | 7,547 | 5,935 | 1,252 | 1,321 | ||||||||||||
Albertsons | 2006 | 20,717 | 81,594 | 4,239 | 16,318 | ||||||||||||
Albertsons Add-On investments | 2006/2007 | 2,416 | 4,864 | 388 | 972 | ||||||||||||
Shopko | 2006 | 1,108 | 2,460 | 222 | 492 | ||||||||||||
Marsh and Add-On investments | 2006/2008 | 2,667 | 2,639 | 533 | 528 | ||||||||||||
Rex Stores | 2007 | 2,701 | 1,956 | 535 | 392 | ||||||||||||
$ | 63,214 | $ | 146,364 | $ | 12,070 | $ | 31,474 | ||||||||||
Other Fund Investments | |||||||||||||||||
During the first quarter of 2014, Fund IV, entered into a joint venture ("Broughton Street Portfolio") with an unaffiliated entity, to acquire and operate properties located in Savannah, Georgia. Fund IV invested $6.3 million of equity and made a loan commitment of up to $29.4 million of which $15.3 million was funded to the joint venture as of March 31, 2014. As of March 31, 2014, the joint venture had acquired four properties for an aggregate purchase price of $4.9 million. | |||||||||||||||||
The unaffiliated partners for Fund II's investment in Albee Tower I Owners, Fund III's investments in Lincoln Road, Parkway Crossing, Arundel Plaza and the White City Shopping Center as well as Fund IV's investments in Lincoln Road, 1701 Belmont Avenue, 2819 Kennedy Boulevard, Promenade at Manassas and the Broughton Street Portfolio maintain control over these entities. The Company accounts for these investments under the equity method as it has the ability to exercise significant influence, but does not have any rights with respect to financial or operating control. | |||||||||||||||||
5 | INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) | ||||||||||||||||
Self-Storage Management, a Fund III investment, was determined to be a variable interest entity. Management has evaluated the applicability of ASC Topic 810 to this joint venture and determined that the Company is not the primary beneficiary and, therefore, consolidation of this venture is not required. The Company accounts for this investment using the equity method of accounting. | |||||||||||||||||
Summary of Investments in Unconsolidated Affiliates | |||||||||||||||||
The following Combined and Condensed Balance Sheets and Statements of Income, summarize the financial information of the Company’s investments in unconsolidated affiliates: | |||||||||||||||||
(dollars in thousands) | March 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Combined and Condensed Balance Sheets | |||||||||||||||||
Assets | |||||||||||||||||
Rental property, net | $ | 385,592 | $ | 380,268 | |||||||||||||
Real estate under development | 30,187 | 5,573 | |||||||||||||||
Investment in unconsolidated affiliates | 21,394 | 63,745 | |||||||||||||||
Other assets | 67,570 | 66,895 | |||||||||||||||
Total assets | $ | 504,743 | $ | 516,481 | |||||||||||||
Liabilities and partners’ equity | |||||||||||||||||
Mortgage notes payable | $ | 299,210 | $ | 265,982 | |||||||||||||
Other liabilities | 46,143 | 43,733 | |||||||||||||||
Partners’ equity | 159,390 | 206,766 | |||||||||||||||
Total liabilities and partners’ equity | $ | 504,743 | $ | 516,481 | |||||||||||||
Company’s investment in and advances to unconsolidated affiliates | $ | 178,068 | $ | 181,322 | |||||||||||||
Company's share of distributions in excess of income from, and investments in, unconsolidated affiliates | $ | (8,670 | ) | $ | (8,701 | ) | |||||||||||
Three Months Ended | |||||||||||||||||
(dollars in thousands) | March 31, | March 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Combined and Condensed Statements of Income | |||||||||||||||||
Total revenues | $ | 12,105 | $ | 10,999 | |||||||||||||
Operating and other expenses | (3,815 | ) | (4,281 | ) | |||||||||||||
Interest and other finance expense | (2,524 | ) | (2,031 | ) | |||||||||||||
Equity in losses of unconsolidated affiliates | (328 | ) | (711 | ) | |||||||||||||
Depreciation and amortization | (2,706 | ) | (2,081 | ) | |||||||||||||
Loss on debt extinguishment | (187 | ) | — | ||||||||||||||
Net income | $ | 2,545 | $ | 1,895 | |||||||||||||
Company’s share of net income | $ | 3,127 | $ | 2,348 | |||||||||||||
Amortization of excess investment | (98 | ) | (98 | ) | |||||||||||||
Company’s equity in earnings of unconsolidated affiliates | $ | 3,029 | $ | 2,250 | |||||||||||||
NOTES_RECEIVABLE_PREFERRED_EQU
NOTES RECEIVABLE, PREFERRED EQUITY AND OTHER REAL ESTATE RELATED INVESTMENTS | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Mortgage Loans on Real Estate [Abstract] | ' | |||||||||||
NOTES RECEIVABLE, PREFERRED EQUITY AND OTHER REAL ESTATE RELATED INVESTMENTS | ' | |||||||||||
NOTES RECEIVABLE AND PREFERRED EQUITY INVESTMENTS, NET | ||||||||||||
As of March 31, 2014, the Company’s notes receivable, net, aggregated $119.6 million, and were collateralized either by the underlying properties, the borrowers' ownership interests in the entities that own the properties and/or by the borrowers' personal guarantee subject, as applicable, to senior liens, as follows: | ||||||||||||
(dollars in thousands) | ||||||||||||
Note description | Effective interest rate (1) | First Priority liens | Net Carrying Amounts of Notes Receivable as of March 31, 2014 | Net Carrying Amounts of Notes Receivable as of December 31, 2013 | Maturity date | |||||||
First Mortgage Loan | 8.00% | — | $ | — | $ | 6,400 | Demand | |||||
Mezzanine Loan 2 | 10.00% | 89,566 | 9,089 | 9,089 | Demand | |||||||
First Mortgage Loan | 11.00% | — | 42,000 | 42,000 | Demand | |||||||
Zero Coupon Loan 3 | 24.00% | 166,200 | 4,570 | 4,431 | 1/3/16 | |||||||
Mezzanine Loan | 15.00% | — | 30,879 | 30,879 | 11/9/20 | |||||||
Mezzanine Loan 4 | 15.00% | 17,298 | 3,834 | 3,834 | Upon Capital Event | |||||||
Mezzanine Loan | 8.10% | — | 13,000 | 13,000 | 9/1/17 | |||||||
Construction Loan | 7.00% | — | 12,000 | 12,000 | 1/1/15 | |||||||
Individually less than 3% 5 | 2.8% to 12.0% | 20,855 | 4,267 | 5,023 | 12/31/14 to Capital Event | |||||||
Total | $ | 119,639 | $ | 126,656 | ||||||||
Notes: | ||||||||||||
(1) The effective interest rate includes origination and exit fees | ||||||||||||
(2) Comprised of three cross-collateralized loans from one borrower, which are non-performing | ||||||||||||
(3) The principal balance for this accrual only loan is increased by the interest accrued | ||||||||||||
(4) Non-performing loan | ||||||||||||
(5) Consists of three loans, one of which is non-performing with a face value of $3.0 million, of which $2.0 million has been reserved | ||||||||||||
During January 2014, the Company received a repayment of $6.4 million, representing the full principal amount on a note receivable. | ||||||||||||
During January 2014, the Company also received a payment of $1.4 million for a mezzanine loan with a face value of $3.5 million and a carrying value, net of reserves, of $0.7 million. The Company recognized income of approximately $0.7 million relating to the payoff, which is included in Other income on the accompanying 2014 Consolidated Statement of Income. | ||||||||||||
The Company monitors the credit quality of its notes receivable on an ongoing basis and considers indicators of credit quality such as loan payment activity, the estimated fair value of the underlying collateral, the seniority of the Company's loan in relation to other debt secured by the collateral and the prospects of the borrower. As of March 31, 2014, the Company held five non-performing notes aggregating $15.9 million for which payment was delinquent. Based primarily on the indicators noted above, the Company has established a reserve of $2.0 million as of March 31, 2014 related to these notes. The following table reconciles the allowance for notes receivable from December 31, 2013 to March 31, 2014: | ||||||||||||
6 | NOTES RECEIVABLE AND PREFERRED EQUITY INVESTMENTS, NET (continued) | |||||||||||
(dollars in thousands) | Allowance for Notes Receivable | |||||||||||
Balance at December 31, 2013 | $ | 3,681 | ||||||||||
Additional reserves | — | |||||||||||
Recoveries | (1,688 | ) | ||||||||||
Charge-offs and reclassifications | — | |||||||||||
Balance at March 31, 2014 | $ | 1,993 | ||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Financial Instruments | ' |
DERIVATIVE FINANCIAL INSTRUMENTS | |
As of March 31, 2014, the Company's derivative financial instruments consisted of 11 interest rate swaps with an aggregate notional value of $178.0 million, which effectively fix LIBOR at rates ranging from 0.70% to 3.77% and mature between May 2015 and April 2023. The Company also has four derivative financial instruments with a notional value of $140.4 million which cap LIBOR at rates ranging from 3.0% to 4.3% and mature between July 2015 and April 2018. The fair value of these derivative instruments, included in Other liabilities in the Consolidated Balance Sheets, totaled $2.5 million and $2.0 million at March 31, 2014 and December 31, 2013, respectively. The fair value of these derivative instruments, included in Prepaid expenses and other assets in the Consolidated Balance Sheets, totaled $2.0 million and $3.1 million at March 31, 2014 and December 31, 2013, respectively. The notional value does not represent exposure to credit, interest rate, or market risks. | |
These derivative instruments have been designated as cash flow hedges and hedge the future cash outflows of variable-rate interest payments on mortgage debt. Such instruments are reported at the fair value stated above. As of March 31, 2014 and December 31, 2013, unrealized (losses) and income totaling $(0.4) million and $1.1 million, respectively, were reflected in Accumulated other comprehensive (loss) income on the Consolidated Balance Sheets. | |
As of March 31, 2014 and December 31, 2013, no derivatives were designated as fair value hedges, hedges of net investments in foreign operations or considered to be ineffective. Additionally, the Company does not use derivatives for trading or speculative purposes. |
MORTGAGE_AND_OTHER_NOTES_PAYAB
MORTGAGE AND OTHER NOTES PAYABLE | 3 Months Ended | |
Mar. 31, 2014 | ||
Mortgage Loans on Real Estate [Abstract] | ' | |
MORTGAGE AND OTHER NOTES PAYABLE | ' | |
MORTGAGE AND OTHER NOTES PAYABLE | ||
The Company completed the following transactions related to mortgage and other notes payable and credit facilities during the three months ended March 31, 2014: | ||
During the three months ended March 31, 2014, the Company borrowed $15.0 million on its unsecured credit facility. | ||
During January 2014, the Company drew the remaining $1.5 million on its loan collateralized by a property. The loan bears interest at LIBOR plus 225 basis points and matures on November 10, 2015. | ||
During January 2014, the Company borrowed $45.0 million on its loan collateralized by a property. The loan bears interest at LIBOR plus 165 basis points and matures on June 28, 2018. | ||
During February 2014, the Company refinanced a $20.9 million loan collateralized by a property, bearing interest at LIBOR plus 225 basis points, with a new $24.5 million loan. The new loan bears interest at LIBOR plus 155 basis points and matures on February 28, 2016. In connection with this refinancing, the Company expensed $0.2 million in unamortized loan costs relating to the original loan. | ||
8 | MORTGAGE AND OTHER NOTES PAYABLE (continued) | |
During February 2014, the Company borrowed $21.6 million on its Fund IV subscription line. In March 2014, the Company paid down $16.7 million. The outstanding balance under this facility is $73.7 million as of March 31, 2014. | ||
During March 2014, the Company closed on two loans aggregating $9.0 million that are collateralized by a property. The loans bear interest at a blended rate of LIBOR plus 188 basis points and mature on March 7, 2017, and each have two one-year extension options. | ||
During March 2014, the Company closed on a $12.6 million loan collateralized by a property. The loan bears interest at LIBOR plus 170 basis points and matures on February 20, 2019. | ||
As of March 31, 2014, $198.5 million of funds have been released under the Company's EB-5 loan relating to its City Point project into a restricted cash account. $103.8 million has been drawn to fund construction activities, with $94.7 million remaining in the restricted cash account at March 31, 2014. |
CONVERTIBLE_NOTES_PAYABLE
CONVERTIBLE NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Convertible Notes Payable | ' |
CONVERTIBLE NOTES PAYABLE | |
In December 2006 and January 2007, the Company issued convertible notes totaling $115.0 million that have a fixed interest rate of 3.75% and are due in 2026 (the "Convertible Notes"). The Convertible Notes were issued at par and require interest payments semi-annually in arrears on June 15th and December 15th of each year. The Convertible Notes are unsecured obligations and rank equally with all other unsecured and unsubordinated indebtedness. The Convertible Notes have an effective interest rate of 6.03%, after giving effect to the accounting treatment required by ASC Topic 470-20, "Debt with Conversion and Other Options." Holders of the Convertible Notes may require the Company to repurchase the Convertible Notes at par on December 15, 2016 and December 15, 2021. Through March 31, 2014, the Company had re-purchased $114.6 million in principal amount of its Convertible Notes, and the remaining outstanding balance is $0.4 million. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
The FASB's fair value measurements and disclosure guidance requires the valuation of certain of the Company's financial assets and liabilities, based on a three-level fair value hierarchy. Market value assumptions obtained from sources independent of the Company are observable inputs that are classified within Levels 1 and 2 of the hierarchy, and the Company's own assumptions about market value assumptions are unobservable inputs classified within Level 3 of the hierarchy. | ||||||||||||||||
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2014: | ||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Derivative financial instruments (Note 7) | $ | — | $ | 2,041 | $ | — | ||||||||||
Liabilities | ||||||||||||||||
Derivative financial instruments (Note 7) | $ | — | $ | 2,532 | $ | — | ||||||||||
In addition to items that are measured at fair value on a recurring basis, the Company also has assets and liabilities on its consolidated balance sheet that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the table above. Assets and liabilities that are measured at fair value on a nonrecurring basis include assets acquired and liabilities assumed in business combinations (Note 4). | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Certain of the Company’s assets and liabilities meet the definition of financial instruments. Except as disclosed below, the carrying amounts of these financial instruments approximate their fair values. | ||||||||||||||||
The Company has determined the estimated fair values of the following financial instruments within Level 2 of the hierarchy by discounting future cash flows utilizing a discount rate equivalent to the rate at which similar financial instruments would be originated at the reporting date: | ||||||||||||||||
(dollars in thousands) | March 31, 2014 | December 31, 2013 | ||||||||||||||
Carrying | Estimated Fair Value | Carrying | Estimated Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Notes Receivable and Preferred Equity Investments | $ | 119,639 | $ | 119,639 | $ | 126,656 | $ | 126,656 | ||||||||
Mortgage, Convertible Notes and Other Notes Payable | $ | 1,108,684 | $ | 1,126,650 | $ | 1,039,997 | $ | 1,056,457 | ||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
RELATED PARTY TRANSACTIONS | |
The Company earned property management fees, construction, legal and leasing fees from its investments in unconsolidated affiliates totaling $0.01 million for the three months ended March 31, 2013. | |
Lee Wielansky, the Lead Trustee of the Company, was paid a consulting fee of $25,000 for the three months ended March 31, 2013. The consulting agreement was terminated as of December 31, 2013. |
SEGMENT_REPORTING
SEGMENT REPORTING | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
SEGMENT REPORTING | |||||||||||||||||
The Company has three reportable segments: Core Portfolio, Funds and Structured Financing. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates property performance primarily based on net operating income before depreciation, amortization and certain nonrecurring items. Investments in the Core Portfolio are typically held long-term. Given the contemplated finite life of the Funds, these investments are typically held for shorter terms. Fees earned by the Company as the general partner/managing member of the Funds are eliminated in the Company's consolidated financial statements. The following tables set forth certain segment information for the Company, reclassified for discontinued operations, as of and for the three months ended March 31, 2014 and 2013 and does not include unconsolidated affiliates: | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
(dollars in thousands) | Core Portfolio | Funds | Structured Financing | Total | |||||||||||||
Revenues | $ | 30,149 | $ | 12,642 | $ | 3,894 | $ | 46,685 | |||||||||
Property operating expenses, other operating and real estate taxes | (7,906 | ) | (5,575 | ) | — | (13,481 | ) | ||||||||||
General and administrative expenses | (6,413 | ) | (483 | ) | — | (6,896 | ) | ||||||||||
Depreciation and amortization | (8,333 | ) | (3,254 | ) | — | (11,587 | ) | ||||||||||
Operating income | 7,497 | 3,330 | 3,894 | 14,721 | |||||||||||||
Equity in earnings of unconsolidated affiliates | 95 | 2,934 | — | 3,029 | |||||||||||||
Loss on debt extinguishment | — | (203 | ) | — | (203 | ) | |||||||||||
Gain on disposition of property | 12,387 | — | — | 12,387 | |||||||||||||
Interest and other finance expense | (7,200 | ) | (3,451 | ) | — | (10,651 | ) | ||||||||||
Income tax provision | (104 | ) | (64 | ) | — | (168 | ) | ||||||||||
Income from continuing operations | 12,675 | 2,546 | 3,894 | 19,115 | |||||||||||||
Noncontrolling interests | |||||||||||||||||
(Income) loss from continuing operations | (419 | ) | 2,899 | — | 2,480 | ||||||||||||
Net income attributable to Common Shareholders | $ | 12,256 | $ | 5,445 | $ | 3,894 | $ | 21,595 | |||||||||
Real Estate at Cost | $ | 1,128,790 | $ | 794,120 | $ | — | $ | 1,922,910 | |||||||||
Total Assets | $ | 1,101,385 | $ | 1,124,838 | $ | 119,639 | $ | 2,345,862 | |||||||||
Acquisition of Real Estate | $ | 90,500 | $ | — | $ | — | $ | 90,500 | |||||||||
Investment in Redevelopment and Improvements | $ | 1,428 | $ | 36,077 | $ | — | $ | 37,505 | |||||||||
12 | SEGMENT REPORTING (continued) | ||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||
(dollars in thousands) | Core Portfolio | Funds | Structured Financing | Total | |||||||||||||
Revenues | $ | 26,478 | $ | 12,913 | $ | 2,898 | $ | 42,289 | |||||||||
Property operating expenses, other operating and real estate taxes | (6,873 | ) | (4,110 | ) | — | (10,983 | ) | ||||||||||
General and administrative expenses | (5,481 | ) | (145 | ) | — | (5,626 | ) | ||||||||||
Depreciation and amortization | (6,389 | ) | (2,840 | ) | — | (9,229 | ) | ||||||||||
Operating income | 7,735 | 5,818 | 2,898 | 16,451 | |||||||||||||
Equity in (losses) earnings of unconsolidated affiliates | (5 | ) | 2,255 | — | 2,250 | ||||||||||||
Interest and other finance expense | (6,157 | ) | (3,128 | ) | — | (9,285 | ) | ||||||||||
Income tax benefit | 92 | 47 | — | 139 | |||||||||||||
Income from continuing operations | 1,665 | 4,992 | 2,898 | 9,555 | |||||||||||||
Discontinued operations | |||||||||||||||||
Operating income from discontinued operations | 101 | 1,523 | — | 1,624 | |||||||||||||
Net income | 1,766 | 6,515 | 2,898 | 11,179 | |||||||||||||
Noncontrolling interests | |||||||||||||||||
Loss (income) from continuing operations | 304 | (269 | ) | — | 35 | ||||||||||||
Income from discontinued operations | (40 | ) | (1,551 | ) | — | (1,591 | ) | ||||||||||
Net loss (income) attributable to noncontrolling interests | 264 | (1,820 | ) | — | (1,556 | ) | |||||||||||
Net income attributable to Common Shareholders | 2,030 | 4,695 | 2,898 | 9,623 | |||||||||||||
Real Estate at Cost | $ | 956,647 | $ | 586,643 | $ | — | $ | 1,543,290 | |||||||||
Total Assets | $ | 1,075,253 | $ | 1,115,249 | $ | 105,367 | $ | 2,295,869 | |||||||||
Acquisition of Real Estate | $ | 86,600 | $ | — | $ | — | $ | 86,600 | |||||||||
Investment in Redevelopment and Improvements | $ | 456 | $ | 17,485 | $ | — | $ | 17,941 | |||||||||
LONGTERM_INCENTIVE_COMPENSATIO
LONG-TERM INCENTIVE COMPENSATION | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Long-Term Incentive Compensation | ' |
LONG-TERM INCENTIVE COMPENSATION | |
On February 28, 2014, the Company issued a total of 326,230 LTIP Units and 918 Restricted Share Units to officers of the Company and 10,527 Restricted Share Units to other employees of the Company pursuant to its Amended and Restated 2006 Share Incentive Plan (the "Share Incentive Plan"). Vesting with respect to these awards is generally recognized ratably over the five annual anniversaries following the issuance date. Vesting with respect to 16% of the awards issued to officers is also generally subject to achieving certain Company performance measures. Unvested LTIP Units provide for non-forfeitable rights to dividend equivalent payments (Note 2). | |
On March 31, 2014 , the Company entered into an Amended and Restated Employment Agreement with Kenneth Bernstein, Chief Executive Officer, and issued an additional 114,198 LTIP Units which are subject to a five-year vesting period. | |
These awards were measured at their fair value as if they were vested on the grant date. Fair value was established as the market price of the Company's Common Shares as of the close of trading on the day preceding the grant date. The total value of the above Restricted Share Units and LTIP Units as of their respective grant dates was $11.9 million, of which $0.5 million was recognized as compensation expense in 2013, and $11.4 million will be recognized as compensation expense over the vesting period. Compensation expense of $0.4 million has been recognized in the accompanying consolidated statements of income related to these awards for the three months ended March 31, 2014. | |
Total long-term incentive compensation expense, including the expense related to the above-mentioned plans, was $1.4 million and $1.3 million for the three months ended March 31, 2014 and 2013, respectively. | |
In 2009, the Company adopted the Long Term Investment Alignment Program (the "Program") pursuant to which the Company may award units primarily to senior executives which would entitle them to receive up to 25% of any future Fund III Promote or Fund IV Promote when and if such Promotes are ultimately realized. The Company has awarded all of the units under the Program related to the Fund III Promote and 10% of the units related to the Fund IV Promote. These units were determined to have no value at issuance or as of March 31, 2014. In accordance with ASC Topic 718, "Compensation - Stock Compensation," compensation relating to these awards will be recorded based on the change in the estimated fair value at each reporting period. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
During April 2014, Fund III completed the disposition of its Sheepshead Bay property located in Brooklyn, New York, for a sales price of $20.2 million. | |
During April 2014, Fund IV completed the acquisition of eight additional properties in its Broughton Street Portfolio for an aggregate purchase price of $13.8 million. | |
During April 2014, the Company completed the acquisition of the retail condominium units in 152-154 Spring Street, located in Manhattan, New York, for a purchase price of $38.0 million. In consideration for this investment, the Company canceled $38.0 million of a $42.0 million note receivable from the sellers. Simultaneously with this transaction, the Company sold a 10% interest in this investment for $3.8 million. | |
During April 2014, the Company issued a $13.0 million note receivable collateralized by a property. This loan has an effective interest rate of 12.7% and matures October 3, 2015. | |
During April 2014, the Company received the full payment on two outstanding non-performing notes receivable as well as all accrued interest. The $10.3 million payment consisted of $6.8 million in principal and $3.5 million in accrued interest. The notes had an aggregate carrying value at March 31, 2014 of $4.8 million. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements include the consolidated accounts of the Company and its investments in entities in which the Company is presumed to have control in accordance with the consolidation guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). Investments in entities for which the Company has the ability to exercise significant influence but does not have financial or operating control are accounted for under the equity method of accounting. Accordingly, the Company's share of the net earnings (or losses) of entities accounted for under the equity method are included in consolidated net income under the caption, Equity in Earnings of Unconsolidated Affiliates. Investments in entities for which the Company does not have the ability to exercise any influence are accounted for under the cost method. | |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. The information furnished in the accompanying consolidated financial statements reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of the aforementioned consolidated financial statements for the interim periods. These consolidated financial statements should be read in conjunction with the Company's 2013 Annual Report on Form 10-K, as filed with the SEC on February 26, 2014. | |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to the 2013 financial statements to conform to the 2014 presentation. | |
Real Estate | ' |
Real Estate | |
The Company reviews its long-lived assets for impairment when there is an event or change in circumstances that indicates that the carrying amount may not be recoverable. The Company measures and records impairment losses and reduces the carrying value of properties when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying cost to fair value, and for properties held-for-sale, the Company reduces its carrying value to the fair value less costs to dispose. Management does not believe that the carrying values of any of its properties are impaired as of March 31, 2014. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
During April 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-08, "Presentation of Financial Statements and Property, Plant and Equipment; Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 modifies the requirements for reporting discontinued operations. Under the amendments in ASU 2014-08, the definition of discontinued operation has been modified to only include those disposals of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. ASU 2014-08 shall be applied prospectively for periods beginning on or after December 15, 2014, with early adoption permitted. The Company adopted ASU 2014-08 for the quarter ended March 31, 2014. The Company has adopted this standard on a prospective basis for transactions that have occurred after the adoption date. | |
ORGANIZATION_AND_BASIS_OF_PRES2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||
Schedule of Noncontrolling Interest In Individual Investee | ' | |||||||||||||||||
Following is a table summarizing the general terms and the Operating Partnership's equity interests in the Funds and Mervyns I and II: | ||||||||||||||||||
Entity | Formation Date | Operating Partnership Share of Capital | Committed Capital (2) | Capital Called as of March 31, 2014 (2) | Equity Interest Held By Operating Partnership | Preferred Return | Capital Returned as of March 31, 2014 (3) | |||||||||||
Fund I and Mervyns I (1) | Sep-01 | 22.22 | % | $ | 90 | $ | 86.6 | 37.78 | % | 9 | % | $ | 86.6 | |||||
Fund II and Mervyns II (2) | Jun-04 | 20 | % | 300 | 300 | 20 | % | 8 | % | 84.5 | ||||||||
Fund III | May-07 | 19.9 | % | 475 | 357.7 | 19.9 | % | 6 | % | 196.8 | ||||||||
Fund IV | May-12 | 23.12 | % | 540.6 | 106.4 | 23.12 | % | 6 | % | — | ||||||||
Notes: | ||||||||||||||||||
(1) Fund I and Mervyns I have returned all capital and preferred return. The Operating Partnership is now entitled to a Promote on all future cash distributions. | ||||||||||||||||||
(2) During 2013, a distribution of $47.1 million was made to the Fund II investors, including the Operating Partnership. This amount is subject to recontribution to Fund II until December 2016, if needed to fund the on-going development and construction of existing projects. | ||||||||||||||||||
(3) Represents the total for the Funds, including the Operating Partnership and noncontrolling interests' shares. |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computation of Basic and Diluted Earnings Per Share from Continuing Operations | ' | |||||||
The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the periods indicated: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(dollars in thousands, except per share amounts) | 2014 | 2013 | ||||||
Numerator | ||||||||
Income from continuing operations | $ | 21,595 | $ | 9,590 | ||||
Less: net income attributable to participating securities | 392 | 172 | ||||||
Income from continuing operations, net of income attributable to participating securities | 21,203 | 9,418 | ||||||
Denominator | ||||||||
Weighted average shares for basic earnings per share | 55,953 | 53,437 | ||||||
Effect of dilutive securities: | ||||||||
Employee Restricted Share Units and share options | 40 | 60 | ||||||
Convertible Preferred OP Units | 25 | — | ||||||
Denominator for diluted earnings per share | 56,018 | 53,497 | ||||||
Basic earnings per Common Share from continuing operations attributable to Common Shareholders | $ | 0.38 | $ | 0.18 | ||||
Diluted earnings per Common Share from continuing operations attributable to Common Shareholders | $ | 0.38 | $ | 0.18 | ||||
ACQUISITION_OF_REAL_ESTATE_AND1
ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ||||||||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||||||||
During 2014, the Company acquired the following properties through its Core Portfolio and Fund IV as follows: | |||||||||||
Core Portfolio | |||||||||||
(dollars in millions) | |||||||||||
Property | GLA | Percent Owned | Type | Month of Acquisition | Purchase Price | Location | |||||
11 E Walton | 6,738 | 100 | % | Street Retail | January | $ | 44 | Chicago, IL | |||
61 Main Street | 3,400 | 100 | % | Street Retail | February | 7.3 | Westport, CT | ||||
865 W North Avenue | 16,000 | 100 | % | Street Retail | March | 14.8 | Chicago, IL | ||||
252-256 Greenwich Avenue | 9,172 | 100 | % | Street Retail | March | 24.5 | Greenwich, CT | ||||
Total | 35,310 | $ | 90.6 | ||||||||
The Company expensed $0.7 million of acquisition costs for the three months ended March 31, 2014 related to the Core Portfolio. | |||||||||||
Fund IV | |||||||||||
(dollars in millions) | |||||||||||
Property | GLA | Percent Owned | Type | Month of Acquisition | Purchase Price | Location | |||||
Broughton Street Portfolio | 55,565 | 50 | % | Street Retail | March | $ | 4.9 | Savannah, GA | |||
Total | 55,565 | $ | 4.9 | ||||||||
Combined Assets and Liabilities and Results of Operations of the Properties Classified as Discontinued Operations | ' | ||||||||||
The combined assets and liabilities and the results of operations of the properties classified as discontinued operations are summarized for each period presented as follows: | |||||||||||
(dollars in thousands) | |||||||||||
BALANCE SHEETS | 31-Mar-14 | 31-Dec-13 | |||||||||
ASSETS | |||||||||||
Net real estate | $ | 18,048 | $ | 17,991 | |||||||
Rents receivable, net | 33 | 565 | |||||||||
Deferred charges, net | 38 | 38 | |||||||||
Prepaid expenses and other assets | 243 | 1,840 | |||||||||
Total assets of discontinued operations | $ | 18,362 | $ | 20,434 | |||||||
LIABILITIES | |||||||||||
Accounts payable and accrued expenses | $ | 104 | $ | 1,473 | |||||||
Other liabilities | 2 | 1,034 | |||||||||
Total liabilities of discontinued operations | $ | 106 | $ | 2,507 | |||||||
Three Months Ended | |||||||||||
(dollars in thousands) | March 31, | ||||||||||
STATEMENT OF INCOME | 2013 | ||||||||||
Total revenues | $ | 6,180 | |||||||||
Total expenses | 4,556 | ||||||||||
Operating income | 1,624 | ||||||||||
Income from discontinued operations attributable to noncontrolling interests | (1,591 | ) | |||||||||
Income from discontinued operations attributable to Common Shareholders | $ | 33 | |||||||||
Acquisitions In 2014 | ' | ||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ||||||||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||||||||
The following table summarizes the Company's preliminary allocations of the purchase prices of assets acquired and liabilities assumed during 2014 which have yet to be finalized: | |||||||||||
(dollars in thousands) | Preliminary Purchase Price Allocations | ||||||||||
Land | $ | 23,865 | |||||||||
Buildings and improvements | 71,586 | ||||||||||
Total consideration | $ | 95,451 | |||||||||
Acquisitions in 2013 | ' | ||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ||||||||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||||||||
The following table summarizes the preliminary allocations of the purchase prices of these properties as recorded as of December 31, 2013, and the finalized allocations as adjusted as of March 31, 2014: | |||||||||||
(dollars in thousands) | Purchase Price Allocations as Originally Reported | Adjustments | Finalized Purchase Price Allocations | ||||||||
Land | $ | 22,182 | $ | (605 | ) | $ | 21,577 | ||||
Buildings and improvements | 84,061 | (7,514 | ) | 76,547 | |||||||
Acquisition-related intangible assets (in Acquired lease intangibles, net) | — | 9,092 | 9,092 | ||||||||
Acquisition-related intangible liabilities (in Acquired lease intangibles, net) | — | (973 | ) | (973 | ) | ||||||
Total consideration | $ | 106,243 | $ | — | $ | 106,243 | |||||
INVESTMENTS_IN_AND_ADVANCES_TO1
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Summary activity related to the RCP Venture Investments from Inception | ' | ||||||||||||||||
The following table summarizes activity related to the RCP Venture investments from inception through March 31, 2014: | |||||||||||||||||
(dollars in thousands) | Investment Group Share | Operating Partnership Share | |||||||||||||||
Investment | Year Acquired | Invested | Invested | ||||||||||||||
Capital | Distributions | Capital | Distributions | ||||||||||||||
and Advances | and Advances | ||||||||||||||||
Mervyns | 2004 | $ | 26,058 | $ | 46,916 | $ | 4,901 | $ | 11,451 | ||||||||
Mervyns Add-On investments | 2005/2008 | 7,547 | 5,935 | 1,252 | 1,321 | ||||||||||||
Albertsons | 2006 | 20,717 | 81,594 | 4,239 | 16,318 | ||||||||||||
Albertsons Add-On investments | 2006/2007 | 2,416 | 4,864 | 388 | 972 | ||||||||||||
Shopko | 2006 | 1,108 | 2,460 | 222 | 492 | ||||||||||||
Marsh and Add-On investments | 2006/2008 | 2,667 | 2,639 | 533 | 528 | ||||||||||||
Rex Stores | 2007 | 2,701 | 1,956 | 535 | 392 | ||||||||||||
$ | 63,214 | $ | 146,364 | $ | 12,070 | $ | 31,474 | ||||||||||
Summary of Balance Sheet of the Company’s investments in unconsolidated affiliates | ' | ||||||||||||||||
The following Combined and Condensed Balance Sheets and Statements of Income, summarize the financial information of the Company’s investments in unconsolidated affiliates: | |||||||||||||||||
(dollars in thousands) | March 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Combined and Condensed Balance Sheets | |||||||||||||||||
Assets | |||||||||||||||||
Rental property, net | $ | 385,592 | $ | 380,268 | |||||||||||||
Real estate under development | 30,187 | 5,573 | |||||||||||||||
Investment in unconsolidated affiliates | 21,394 | 63,745 | |||||||||||||||
Other assets | 67,570 | 66,895 | |||||||||||||||
Total assets | $ | 504,743 | $ | 516,481 | |||||||||||||
Liabilities and partners’ equity | |||||||||||||||||
Mortgage notes payable | $ | 299,210 | $ | 265,982 | |||||||||||||
Other liabilities | 46,143 | 43,733 | |||||||||||||||
Partners’ equity | 159,390 | 206,766 | |||||||||||||||
Total liabilities and partners’ equity | $ | 504,743 | $ | 516,481 | |||||||||||||
Company’s investment in and advances to unconsolidated affiliates | $ | 178,068 | $ | 181,322 | |||||||||||||
Company's share of distributions in excess of income from, and investments in, unconsolidated affiliates | $ | (8,670 | ) | $ | (8,701 | ) | |||||||||||
Summary of Statement of Income of the Company’s investments in unconsolidated affiliates | ' | ||||||||||||||||
Three Months Ended | |||||||||||||||||
(dollars in thousands) | March 31, | March 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Combined and Condensed Statements of Income | |||||||||||||||||
Total revenues | $ | 12,105 | $ | 10,999 | |||||||||||||
Operating and other expenses | (3,815 | ) | (4,281 | ) | |||||||||||||
Interest and other finance expense | (2,524 | ) | (2,031 | ) | |||||||||||||
Equity in losses of unconsolidated affiliates | (328 | ) | (711 | ) | |||||||||||||
Depreciation and amortization | (2,706 | ) | (2,081 | ) | |||||||||||||
Loss on debt extinguishment | (187 | ) | — | ||||||||||||||
Net income | $ | 2,545 | $ | 1,895 | |||||||||||||
Company’s share of net income | $ | 3,127 | $ | 2,348 | |||||||||||||
Amortization of excess investment | (98 | ) | (98 | ) | |||||||||||||
Company’s equity in earnings of unconsolidated affiliates | $ | 3,029 | $ | 2,250 | |||||||||||||
NOTES_RECEIVABLE_PREFERRED_EQU1
NOTES RECEIVABLE, PREFERRED EQUITY AND OTHER REAL ESTATE RELATED INVESTMENTS (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Mortgage Loans on Real Estate [Abstract] | ' | |||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | ' | |||||||||||
As of March 31, 2014, the Company’s notes receivable, net, aggregated $119.6 million, and were collateralized either by the underlying properties, the borrowers' ownership interests in the entities that own the properties and/or by the borrowers' personal guarantee subject, as applicable, to senior liens, as follows: | ||||||||||||
(dollars in thousands) | ||||||||||||
Note description | Effective interest rate (1) | First Priority liens | Net Carrying Amounts of Notes Receivable as of March 31, 2014 | Net Carrying Amounts of Notes Receivable as of December 31, 2013 | Maturity date | |||||||
First Mortgage Loan | 8.00% | — | $ | — | $ | 6,400 | Demand | |||||
Mezzanine Loan 2 | 10.00% | 89,566 | 9,089 | 9,089 | Demand | |||||||
First Mortgage Loan | 11.00% | — | 42,000 | 42,000 | Demand | |||||||
Zero Coupon Loan 3 | 24.00% | 166,200 | 4,570 | 4,431 | 1/3/16 | |||||||
Mezzanine Loan | 15.00% | — | 30,879 | 30,879 | 11/9/20 | |||||||
Mezzanine Loan 4 | 15.00% | 17,298 | 3,834 | 3,834 | Upon Capital Event | |||||||
Mezzanine Loan | 8.10% | — | 13,000 | 13,000 | 9/1/17 | |||||||
Construction Loan | 7.00% | — | 12,000 | 12,000 | 1/1/15 | |||||||
Individually less than 3% 5 | 2.8% to 12.0% | 20,855 | 4,267 | 5,023 | 12/31/14 to Capital Event | |||||||
Total | $ | 119,639 | $ | 126,656 | ||||||||
Notes: | ||||||||||||
(1) The effective interest rate includes origination and exit fees | ||||||||||||
(2) Comprised of three cross-collateralized loans from one borrower, which are non-performing | ||||||||||||
(3) The principal balance for this accrual only loan is increased by the interest accrued | ||||||||||||
(4) Non-performing loan | ||||||||||||
(5) Consists of three loans, one of which is non-performing with a face value of $3.0 million, of which $2.0 million has been reserved | ||||||||||||
Allowance for Notes Receivable | ' | |||||||||||
(dollars in thousands) | Allowance for Notes Receivable | |||||||||||
Balance at December 31, 2013 | $ | 3,681 | ||||||||||
Additional reserves | — | |||||||||||
Recoveries | (1,688 | ) | ||||||||||
Charge-offs and reclassifications | — | |||||||||||
Balance at March 31, 2014 | $ | 1,993 | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2014: | ||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Derivative financial instruments (Note 7) | $ | — | $ | 2,041 | $ | — | ||||||||||
Liabilities | ||||||||||||||||
Derivative financial instruments (Note 7) | $ | — | $ | 2,532 | $ | — | ||||||||||
Fair value of financial instruments, Assets and Liabilities | ' | |||||||||||||||
The Company has determined the estimated fair values of the following financial instruments within Level 2 of the hierarchy by discounting future cash flows utilizing a discount rate equivalent to the rate at which similar financial instruments would be originated at the reporting date: | ||||||||||||||||
(dollars in thousands) | March 31, 2014 | December 31, 2013 | ||||||||||||||
Carrying | Estimated Fair Value | Carrying | Estimated Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Notes Receivable and Preferred Equity Investments | $ | 119,639 | $ | 119,639 | $ | 126,656 | $ | 126,656 | ||||||||
Mortgage, Convertible Notes and Other Notes Payable | $ | 1,108,684 | $ | 1,126,650 | $ | 1,039,997 | $ | 1,056,457 | ||||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Reconciliation of Certain Segment Information from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
The following tables set forth certain segment information for the Company, reclassified for discontinued operations, as of and for the three months ended March 31, 2014 and 2013 and does not include unconsolidated affiliates: | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
(dollars in thousands) | Core Portfolio | Funds | Structured Financing | Total | |||||||||||||
Revenues | $ | 30,149 | $ | 12,642 | $ | 3,894 | $ | 46,685 | |||||||||
Property operating expenses, other operating and real estate taxes | (7,906 | ) | (5,575 | ) | — | (13,481 | ) | ||||||||||
General and administrative expenses | (6,413 | ) | (483 | ) | — | (6,896 | ) | ||||||||||
Depreciation and amortization | (8,333 | ) | (3,254 | ) | — | (11,587 | ) | ||||||||||
Operating income | 7,497 | 3,330 | 3,894 | 14,721 | |||||||||||||
Equity in earnings of unconsolidated affiliates | 95 | 2,934 | — | 3,029 | |||||||||||||
Loss on debt extinguishment | — | (203 | ) | — | (203 | ) | |||||||||||
Gain on disposition of property | 12,387 | — | — | 12,387 | |||||||||||||
Interest and other finance expense | (7,200 | ) | (3,451 | ) | — | (10,651 | ) | ||||||||||
Income tax provision | (104 | ) | (64 | ) | — | (168 | ) | ||||||||||
Income from continuing operations | 12,675 | 2,546 | 3,894 | 19,115 | |||||||||||||
Noncontrolling interests | |||||||||||||||||
(Income) loss from continuing operations | (419 | ) | 2,899 | — | 2,480 | ||||||||||||
Net income attributable to Common Shareholders | $ | 12,256 | $ | 5,445 | $ | 3,894 | $ | 21,595 | |||||||||
Real Estate at Cost | $ | 1,128,790 | $ | 794,120 | $ | — | $ | 1,922,910 | |||||||||
Total Assets | $ | 1,101,385 | $ | 1,124,838 | $ | 119,639 | $ | 2,345,862 | |||||||||
Acquisition of Real Estate | $ | 90,500 | $ | — | $ | — | $ | 90,500 | |||||||||
Investment in Redevelopment and Improvements | $ | 1,428 | $ | 36,077 | $ | — | $ | 37,505 | |||||||||
12 | SEGMENT REPORTING (continued) | ||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||
(dollars in thousands) | Core Portfolio | Funds | Structured Financing | Total | |||||||||||||
Revenues | $ | 26,478 | $ | 12,913 | $ | 2,898 | $ | 42,289 | |||||||||
Property operating expenses, other operating and real estate taxes | (6,873 | ) | (4,110 | ) | — | (10,983 | ) | ||||||||||
General and administrative expenses | (5,481 | ) | (145 | ) | — | (5,626 | ) | ||||||||||
Depreciation and amortization | (6,389 | ) | (2,840 | ) | — | (9,229 | ) | ||||||||||
Operating income | 7,735 | 5,818 | 2,898 | 16,451 | |||||||||||||
Equity in (losses) earnings of unconsolidated affiliates | (5 | ) | 2,255 | — | 2,250 | ||||||||||||
Interest and other finance expense | (6,157 | ) | (3,128 | ) | — | (9,285 | ) | ||||||||||
Income tax benefit | 92 | 47 | — | 139 | |||||||||||||
Income from continuing operations | 1,665 | 4,992 | 2,898 | 9,555 | |||||||||||||
Discontinued operations | |||||||||||||||||
Operating income from discontinued operations | 101 | 1,523 | — | 1,624 | |||||||||||||
Net income | 1,766 | 6,515 | 2,898 | 11,179 | |||||||||||||
Noncontrolling interests | |||||||||||||||||
Loss (income) from continuing operations | 304 | (269 | ) | — | 35 | ||||||||||||
Income from discontinued operations | (40 | ) | (1,551 | ) | — | (1,591 | ) | ||||||||||
Net loss (income) attributable to noncontrolling interests | 264 | (1,820 | ) | — | (1,556 | ) | |||||||||||
Net income attributable to Common Shareholders | 2,030 | 4,695 | 2,898 | 9,623 | |||||||||||||
Real Estate at Cost | $ | 956,647 | $ | 586,643 | $ | — | $ | 1,543,290 | |||||||||
Total Assets | $ | 1,075,253 | $ | 1,115,249 | $ | 105,367 | $ | 2,295,869 | |||||||||
Acquisition of Real Estate | $ | 86,600 | $ | — | $ | — | $ | 86,600 | |||||||||
Investment in Redevelopment and Improvements | $ | 456 | $ | 17,485 | $ | — | $ | 17,941 | |||||||||
ORGANIZATION_AND_BASIS_OF_PRES3
ORGANIZATION AND BASIS OF PRESENTATION (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | properties | Fund I and Mervyns I | Core Portfolio | Opportunity Funds | Fund II | Operating Partnership, as General Partner or Managing Member | Institutional Investors [Member] |
opportunity_fund | properties | properties | |||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Ownership interest by general partner or managing partner | ' | 37.78% | ' | ' | ' | 96.00% | ' |
Number of retail properties (in properties) | 119 | ' | 80 | 39 | ' | ' | ' |
Number of opportunity funds | 4 | ' | ' | ' | ' | ' | ' |
Remaining funds rate of distribution to partnership | ' | ' | ' | ' | ' | 20.00% | ' |
Remaining funds rate of distribution to all partners | ' | ' | ' | ' | ' | ' | 80.00% |
Payments of dividends | ' | ' | ' | ' | $47.10 | ' | ' |
ORGANIZATION_AND_BASIS_OF_PRES4
ORGANIZATION AND BASIS OF PRESENTATION Summary of General Terms and Operating Partnership's Equity Interests (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Fund I and Mervyns I | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Operating Partnership Share of Capital | 22.22% |
Committed Capital | $90 |
Capital Called as of March 31, 2013 | 86.6 |
Ownership Interest By General Partner or Managing Partner | 37.78% |
Preferred Return | 9.00% |
Capital Returned as of March 31, 2013 | 86.6 |
Fund II and Mervyns II | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Operating Partnership Share of Capital | 20.00% |
Committed Capital | 300 |
Capital Called as of March 31, 2013 | 300 |
Ownership Interest By General Partner or Managing Partner | 20.00% |
Preferred Return | 8.00% |
Capital Returned as of March 31, 2013 | 84.5 |
Fund III | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Operating Partnership Share of Capital | 19.90% |
Committed Capital | 475 |
Capital Called as of March 31, 2013 | 357.7 |
Ownership Interest By General Partner or Managing Partner | 19.90% |
Preferred Return | 6.00% |
Capital Returned as of March 31, 2013 | 196.8 |
Fund IV | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Operating Partnership Share of Capital | 23.12% |
Committed Capital | 540.6 |
Capital Called as of March 31, 2013 | 106.4 |
Ownership Interest By General Partner or Managing Partner | 23.12% |
Preferred Return | 6.00% |
Capital Returned as of March 31, 2013 | $0 |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) (USD $) | 3 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Common stock | Operating Partnership, as General Partner or Managing Member | Operating Partnership, as General Partner or Managing Member | Operating Partnership, as General Partner or Managing Member | Operating Partnership, as General Partner or Managing Member | |||
Series A Preferred Stock | Series A Preferred Stock | ||||||
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Series A Preferred OP Units (in shares) | ' | ' | ' | 1,457,467 | 1,457,467 | 188 | 188 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | ' | ' | 25,067 | ' | ' | ' | ' |
Numerator: | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $21,595 | $9,590 | ' | ' | ' | ' | ' |
Less: net income attributable to participating securities | 392 | 172 | ' | ' | ' | ' | ' |
Income from continuing operations net of income attributable to participating securities | $21,203 | $9,418 | ' | ' | ' | ' | ' |
Denominator | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares for basic earnings per share (in shares) | 55,953,000 | 53,437,000 | ' | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' |
Employee Restricted Share Units and share options (in shares) | 40,000 | 60,000 | ' | ' | ' | ' | ' |
Convertible Preferred OP Units (in shares) | 25,000 | 0 | ' | ' | ' | ' | ' |
Denominator for diluted earnings per share (in shares) | 56,018,000 | 53,497,000 | ' | ' | ' | ' | ' |
Basic earnings per Common Share from continuing operations attributable to Common Shareholders | $0.38 | $0.18 | ' | ' | ' | ' | ' |
Diluted earnings per Common Share from continuing operations attributable to Common Shareholders | $0.38 | $0.18 | ' | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_AND_NONCON1
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Operating Partnership, as General Partner or Managing Member | Operating Partnership, as General Partner or Managing Member | Series A Preferred Stock | Series A Preferred Stock | At The Market Equity Program | LTIP Units | LTIP Units | |||
Operating Partnership, as General Partner or Managing Member | Operating Partnership, as General Partner or Managing Member | Common stock | |||||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued during the period | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' |
Gross proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | $27,800,000 | ' | ' |
Proceeds from issuance of common stock | $23,519,000 | $51,840,000 | ' | ' | ' | ' | $27,500,000 | ' | ' |
Limited partners' common OP units | ' | ' | 1,457,467 | 1,457,467 | 188 | 188 | ' | ' | ' |
Share-based compensation, outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | 738,367 | 496,047 |
ACQUISITION_OF_REAL_ESTATE_AND2
ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS Acquisitions (Details) (USD $) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Core Portfolio | Fund IV | 11 E Walton | 61 Main Street | 865 W North Avenue | 252-256 Greenwich Avenue | Broughton Street Portfolio | Acquisitions In 2014 | Acquisitions in 2013 | Acquisitions in 2013 | Acquisitions in 2013 | |
sqft | sqft | Chicago, IL | Westport, CT | Chicago, IL | Greenwich, CT | Savannah, GA | Purchase Price Allocations as Originally Reported | Purchase Price Allocations as Originally Reported | Adjustments | Finalized Purchase Price Allocations | |
Core Portfolio | Core Portfolio | Core Portfolio | Core Portfolio | Fund IV | |||||||
sqft | sqft | sqft | sqft | sqft | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Leasable Area | 35,310 | 55,565 | 6,738 | 3,400 | 16,000 | 9,172 | 55,565 | ' | ' | ' | ' |
Percent Owned | ' | ' | 100.00% | 100.00% | 100.00% | 100.00% | 50.00% | ' | ' | ' | ' |
Purchase Price | $90,600,000 | $4,900,000 | $44,000,000 | $7,300,000 | $14,800,000 | $24,500,000 | $4,900,000 | ' | ' | ' | ' |
Acquisition costs | 700,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | ' | ' | ' | ' | ' | ' | ' | 23,865,000 | 22,182,000 | -605,000 | 21,577,000 |
Buildings and improvements | ' | ' | ' | ' | ' | ' | ' | 71,586,000 | 84,061,000 | -7,514,000 | 76,547,000 |
Acquisition-related intangible assets (in Acquired lease intangibles, net) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 9,092,000 | 9,092,000 |
Acquisition-related intangible liabilities (in Acquired lease intangibles, net) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -973,000 | -973,000 |
Total consideration | ' | ' | ' | ' | ' | ' | ' | $95,451,000 | $106,243,000 | $0 | $106,243,000 |
ACQUISITION_OF_REAL_ESTATE_AND3
ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS Discontinued Operations Results of Operations (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | |
Walnut Hill Property | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Non-recourse Debt | ' | ' | ' | $22,900,000 |
Gain on sale of property | 12,387,000 | 0 | ' | 12,400,000 |
ASSETS | ' | ' | ' | ' |
Net real estate | 18,048,000 | ' | 17,991,000 | ' |
Rents receivable, net | 33,000 | ' | 565,000 | ' |
Deferred charges, net | 38,000 | ' | 38,000 | ' |
Prepaid expenses and other assets | 243,000 | ' | 1,840,000 | ' |
Total assets of discontinued operations | 18,362,000 | ' | 20,434,000 | ' |
LIABILITIES | ' | ' | ' | ' |
Accounts payable and accrued expenses | 104,000 | ' | 1,473,000 | ' |
Other liabilities | 2,000 | ' | 1,034,000 | ' |
Total liabilities of discontinued operations | 106,000 | ' | 2,507,000 | ' |
STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Total revenues | ' | 6,180,000 | ' | ' |
Total expenses | ' | 4,556,000 | ' | ' |
Operating income | ' | 1,624,000 | ' | ' |
Income from discontinued operations | 0 | 1,624,000 | ' | ' |
Income from discontinued operations attributable to noncontrolling interests | 0 | -1,591,000 | ' | ' |
Income from discontinued operations attributable to Common Shareholders | ' | $33,000 | ' | ' |
INVESTMENTS_IN_AND_ADVANCES_TO2
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | $178,068,000 | ' | $181,322,000 |
Payments to Acquire Equity Method Investments | 21,568,000 | 2,000 | ' |
Assets | ' | ' | ' |
Real estate under development | 369,407,000 | ' | 337,353,000 |
Investments in and advances to unconsolidated affiliates | 178,068,000 | ' | 181,322,000 |
Total assets | 2,345,862,000 | ' | 2,264,957,000 |
Liabilities and Equity | ' | ' | ' |
Other liabilities | 20,155,000 | ' | 18,265,000 |
Total liabilities and equity | 2,345,862,000 | ' | 2,264,957,000 |
Investments in and advances to unconsolidated affiliates | 178,068,000 | ' | 181,322,000 |
Company's share of distributions in excess of income from, and investments in, unconsolidated affiliates | -8,670,000 | ' | -8,701,000 |
Combined and Condensed Statements of Operations | ' | ' | ' |
Total revenues | 46,685,000 | 42,289,000 | ' |
Operating and other expenses | -31,964,000 | -25,838,000 | ' |
Equity in (losses) earnings of unconsolidated affiliates | 3,029,000 | 2,250,000 | ' |
Depreciation and amortization | -11,587,000 | -9,229,000 | ' |
Gain on sale of properties | 12,387,000 | 0 | ' |
Income from continuing operations | 19,115,000 | 9,555,000 | ' |
Unconsolidated Affiliates | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 21,394,000 | ' | 63,745,000 |
Assets | ' | ' | ' |
Rental property, net | 385,592,000 | ' | 380,268,000 |
Real estate under development | 30,187,000 | ' | 5,573,000 |
Investments in and advances to unconsolidated affiliates | 21,394,000 | ' | 63,745,000 |
Other assets | 67,570,000 | ' | 66,895,000 |
Total assets | 504,743,000 | ' | 516,481,000 |
Liabilities and Equity | ' | ' | ' |
Mortgage notes payable | 299,210,000 | ' | 265,982,000 |
Other liabilities | 46,143,000 | ' | 43,733,000 |
Partners' equity | 159,390,000 | ' | 206,766,000 |
Total liabilities and equity | 504,743,000 | ' | 516,481,000 |
Investments in and advances to unconsolidated affiliates | 21,394,000 | ' | 63,745,000 |
Combined and Condensed Statements of Operations | ' | ' | ' |
Total revenues | 12,105,000 | 10,999,000 | ' |
Operating and other expenses | -3,815,000 | -4,281,000 | ' |
Interest expense | -2,524,000 | -2,031,000 | ' |
Equity in (losses) earnings of unconsolidated affiliates | -328,000 | -711,000 | ' |
Depreciation and amortization | -2,706,000 | -2,081,000 | ' |
Gain on sale of properties | -187,000 | 0 | ' |
Income from continuing operations | 2,545,000 | 1,895,000 | ' |
Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Combined and Condensed Statements of Operations | ' | ' | ' |
Equity in (losses) earnings of unconsolidated affiliates | 3,029,000 | 2,250,000 | ' |
Company's share of net income (loss) | 3,127,000 | 2,348,000 | ' |
Amortization of excess investment | -98,000 | -98,000 | ' |
Core Portfolio | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Purchase Price | 90,600,000 | ' | ' |
Combined and Condensed Statements of Operations | ' | ' | ' |
Total revenues | 30,149,000 | 26,478,000 | ' |
Equity in (losses) earnings of unconsolidated affiliates | 95,000 | -5,000 | ' |
Depreciation and amortization | -8,333,000 | -6,389,000 | ' |
Income from continuing operations | 12,675,000 | 1,665,000 | ' |
Core Portfolio | Crossroads | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 49.00% | ' | ' |
Square Footage of Real Estate Property (in square feet) | 311,000 | ' | ' |
Core Portfolio | Georgetown Portfolio | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 50.00% | ' | ' |
Square Footage of Real Estate Property (in square feet) | 28,000 | ' | ' |
Core Portfolio | Route 202 Shopping Center [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 22.22% | ' | ' |
Square Footage of Real Estate Property (in square feet) | 20,000 | ' | ' |
Funds | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Number of Unaffiliated Partners | 2 | ' | ' |
Combined and Condensed Statements of Operations | ' | ' | ' |
Total revenues | 12,642,000 | 12,913,000 | ' |
Equity in (losses) earnings of unconsolidated affiliates | 2,934,000 | 2,255,000 | ' |
Depreciation and amortization | -3,254,000 | -2,840,000 | ' |
Income from continuing operations | 2,546,000 | 4,992,000 | ' |
Funds | KLAC Rex Venture LLC | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Dividends or Distributions | 1,200,000 | ' | ' |
Funds | KLAC Rex Venture LLC | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investment, Dividends or Distributions | 200,000 | ' | ' |
Funds | Corporate Joint Venture | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 63,214,000 | ' | ' |
Investment Income, Dividend | 146,364,000 | ' | ' |
Assets | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 63,214,000 | ' | ' |
Liabilities and Equity | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 63,214,000 | ' | ' |
Funds | Corporate Joint Venture | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 12,070,000 | ' | ' |
Investment Income, Dividend | 31,474,000 | ' | ' |
Assets | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 12,070,000 | ' | ' |
Liabilities and Equity | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 12,070,000 | ' | ' |
Funds | Mervyns I and Mervyns II | KLA/Mervyns LLC Add-On Investments | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 7,547,000 | ' | ' |
Investment Income, Dividend | 5,935,000 | ' | ' |
Funds | Mervyns I and Mervyns II | KLA/Mervyns LLC Add-On Investments | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 1,252,000 | ' | ' |
Investment Income, Dividend | 1,321,000 | ' | ' |
Funds | Mervyns II | KLA A Markets LLC Add-On Investments | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 2,416,000 | ' | ' |
Investment Income, Dividend | 4,864,000 | ' | ' |
Funds | Mervyns II | KLA A Markets LLC Add-On Investments | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 388,000 | ' | ' |
Investment Income, Dividend | 972,000 | ' | ' |
Funds | Mervyns II | KLAC Rex Venture LLC | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 2,701,000 | ' | ' |
Investment Income, Dividend | 1,956,000 | ' | ' |
Funds | Mervyns II | KLAC Rex Venture LLC | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 535,000 | ' | ' |
Investment Income, Dividend | 392,000 | ' | ' |
Funds | Fund II | KA-Shopko LLC | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 1,108,000 | ' | ' |
Investment Income, Dividend | 2,460,000 | ' | ' |
Funds | Fund II | KA-Shopko LLC | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 222,000 | ' | ' |
Investment Income, Dividend | 492,000 | ' | ' |
Funds | Fund II | Marsh and Add-On Investments | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 2,667,000 | ' | ' |
Investment Income, Dividend | 2,639,000 | ' | ' |
Funds | Fund II | Marsh and Add-On Investments | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Cost Method Investments | 533,000 | ' | ' |
Investment Income, Dividend | 528,000 | ' | ' |
Funds | KLA/Mervyns LLC | Mervyns I and Mervyns II | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investments | 26,058,000 | ' | ' |
Equity Method Investment, Dividends or Distributions | 46,916,000 | ' | ' |
Funds | KLA/Mervyns LLC | Mervyns I and Mervyns II | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investments | 4,901,000 | ' | ' |
Equity Method Investment, Dividends or Distributions | 11,451,000 | ' | ' |
Funds | KLA A Markets LLC | Mervyns II | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investments | 20,717,000 | ' | ' |
Equity Method Investment, Dividends or Distributions | 81,594,000 | ' | ' |
Funds | KLA A Markets LLC | Mervyns II | Operating Partnership, as General Partner or Managing Member | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investments | 4,239,000 | ' | ' |
Equity Method Investment, Dividends or Distributions | 16,318,000 | ' | ' |
Fund IV | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Purchase Price | 4,900,000 | ' | ' |
Fund IV | Savannah, GA | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 6,300,000 | ' | ' |
Investments in affiliates subsidiaries associates and joint ventures, loan commitment | 29,400,000 | ' | ' |
Number of properties acquired | 4 | ' | ' |
Purchase Price | 4,900,000 | ' | ' |
Assets | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 6,300,000 | ' | ' |
Liabilities and Equity | ' | ' | ' |
Investments in and advances to unconsolidated affiliates | 6,300,000 | ' | ' |
Fund IV | Corporate Joint Venture | Savannah, GA | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Investments in affiliates subsidiaries associates and joint ventures, loan commitment | $15,300,000 | ' | ' |
NOTES_RECEIVABLE_PREFERRED_EQU2
NOTES RECEIVABLE, PREFERRED EQUITY AND OTHER REAL ESTATE RELATED INVESTMENTS Schedule of Notes Receivable (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 31, 2014 | ||||||||||||||
loan | Construction Loan, 7.0% Percent, Due 2015 | Construction Loan, 7.0% Percent, Due 2015 | First Mortgage Loan, 8% Loan Due 2013 | First Mortgage Loan, 8% Loan Due 2013 | First Mortgage Loan, 8% Loan Due 2013 | Mezzanine Loan, 10% Due 2013 | Mezzanine Loan, 10% Due 2013 | First Mortgage Loan, 11% Loan Due 2014 | First Mortgage Loan, 11% Loan Due 2014 | Zero Coupon Loan | Zero Coupon Loan | Mezzanine Loan, 15% Due 2020 | Mezzanine Loan, 15% Due 2020 | Mezzanine Loan Due With Capital Event | Mezzanine Loan Due With Capital Event | Preferred Equity, 8.1% Loan, Due 2017 | Preferred Equity, 8.1% Loan, Due 2017 | Individually Less Than 3 Percent, Variable Interest Rate Due 2014 to Capital Event | Individually Less Than 3 Percent, Variable Interest Rate Due 2014 to Capital Event | Individually Less Than 3 Percent, Variable Interest Rate Due 2014 to Capital Event | Individually Less Than 3 Percent, Variable Interest Rate Due 2014 to Capital Event | Mezzanine Loan | ||||||||||||||||
loan | loan | Minimum | Maximum | |||||||||||||||||||||||||||||||||||
borrower | ||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Net carrying amount | $119,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Effective interest rate | ' | ' | ' | 7.00% | [1] | ' | ' | 8.00% | [1] | ' | 10.00% | [1],[2] | ' | 11.00% | [1] | ' | 24.00% | [1],[3] | ' | 15.00% | [1] | ' | 15.00% | [1],[4] | ' | 8.10% | [1] | ' | ' | ' | 11.00% | [1] | 17.50% | [1] | ' | |||
Prior liens | ' | ' | ' | 0 | ' | ' | 0 | ' | 89,566,000 | [2] | ' | 0 | ' | 166,200,000 | [3] | ' | 0 | ' | 17,298,000 | [4] | ' | 0 | ' | 20,855,000 | ' | ' | ' | ' | ||||||||||
Carrying amount of mortgages | 119,639,000 | ' | 126,656,000 | 12,000,000 | 12,000,000 | ' | 0 | 6,400,000 | 9,089,000 | [2] | 9,089,000 | [2] | 42,000,000 | 42,000,000 | 4,570,000 | [3] | 4,431,000 | [3] | 30,879,000 | 30,879,000 | 3,834,000 | [4] | 3,834,000 | [4] | 13,000,000 | 13,000,000 | 4,267,000 | 5,023,000 | ' | ' | 3,500,000 | |||||||
Number of cross collateralized loans | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Number of borrowers | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Number of loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | |||||||||||||
Number of non-performing loans | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | |||||||||||||
Face amount of mortgages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | |||||||||||||
Face amount of mortgages, reserved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | |||||||||||||
Proceeds from notes receivable | 7,156,000 | 5,529,000 | ' | ' | ' | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | |||||||||||||
Mortgage loans on real estate, collections of principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | |||||||||||||
Income related to the payoff of notes receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | |||||||||||||
Mortgage loans on real estate, nonperforming loans, amount | 15,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Financing receivable, allowance for credit losses | $1,993,000 | ' | $3,681,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
[1] | The effective interest rate includes origination and exit fees | |||||||||||||||||||||||||||||||||||||
[2] | Comprised of three cross-collateralized loans from one borrower, which are non-performing | |||||||||||||||||||||||||||||||||||||
[3] | The principal balance for this accrual only loan is increased by the interest accrued | |||||||||||||||||||||||||||||||||||||
[4] | Non-performing loan |
NOTES_RECEIVABLE_PREFERRED_EQU3
NOTES RECEIVABLE, PREFERRED EQUITY AND OTHER REAL ESTATE RELATED INVESTMENTS Allowance for Notes Receivable (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' |
Balance at beginning of period | $3,681 |
Additional reserves | 0 |
Recoveries | -1,688 |
Charge-offs and reclassifications | 0 |
Balance at period end | $1,993 |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' |
Accumulated other comprehensive income - unrealized loss on valuation of swap agreements | ($400,000) | $1,100,000 |
Fair Value, Measurements, Recurring | Level 2 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative financial instruments | 2,532,000 | ' |
Derivative financial instruments | 2,041,000 | ' |
Other Liabilities [Member] | Level 2 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative financial instruments | 2,500,000 | 2,000,000 |
Prepaid Expenses and Other Current Assets [Member] | Level 2 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative financial instruments | 2,000,000 | 3,100,000 |
Cash Flow Hedging | Variable-Rate Derivatives, Maturing in October 2012 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Cap Interest Rate | 3.00% | ' |
Cash Flow Hedging | Variable Rate Derivatives Maturing in July 2015 [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Cap Interest Rate | 4.30% | ' |
Interest Rate Swap | Cash Flow Hedging | Fixed-Rate Derivatives, Maturing between November 2012 and December 2022 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Number of interest rate swaps (in interest rate swaps) | 11 | ' |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | 178,000,000 | ' |
Interest Rate Swap | Cash Flow Hedging | Fixed-Rate Derivatives, Maturing between November 2012 and December 2022 | Minimum | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Fixed Interest Rate | 0.70% | ' |
Interest Rate Swap | Cash Flow Hedging | Fixed-Rate Derivatives, Maturing between November 2012 and December 2022 | Maximum | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Fixed Interest Rate | 3.77% | ' |
Interest Rate Swap | Cash Flow Hedging | Variable-Rate Derivatives | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $140,400,000 | ' |
Derivative, Number of Instruments Held | 4 | ' |
MORTGAGE_AND_OTHER_NOTES_PAYAB1
MORTGAGE AND OTHER NOTES PAYABLE (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Jan. 31, 2014 | Feb. 28, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Unsecured Debt | Fund IV | Fund IV | Libor Plus 2.25% Mortgage Note | Libor Plus 2.25% Mortgage Note | Libor Plus 2.25% Mortgage Note | Libor Plus 2.25% Mortgage Note | LIBOR Plus 1.65% Mortgage Note | LIBOR Plus 1.65% Mortgage Note | Libor Plus 1.55% Mortgage Note | Libor Plus 1.55% Mortgage Note | LIBOR Plus 1.88%, Mortgage Note | LIBOR Plus 1.88%, Mortgage Note | LIBOR Plus 1.70% Mortgage Note | LIBOR Plus 1.70% Mortgage Note | Construction Loan Under the United States Imigration Investment Program | |||
Subscription Line | Subscription Line | Secured Debt | Secured Debt | LIBOR | LIBOR | Secured Debt | LIBOR | Secured Debt | LIBOR | Mortgages | LIBOR | Mortgages | LIBOR | Construction Loans | ||||
Secured Debt | Secured Debt | Secured Debt | Secured Debt | Mortgages | Mortgages | |||||||||||||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from lines of credit | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | 'LIBOR | ' | 'LIBOR | ' | 'LIBOR | ' | 'LIBOR | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | 2.25% | 1.88% | ' | 1.65% | ' | 155.00% | ' | 1.88% | ' | 1.70% | ' |
New mortgage loans | ' | ' | ' | ' | 21,600,000 | ' | 1,500,000 | ' | ' | 45,000,000 | ' | 24,500,000 | ' | 9,000,000 | ' | 12,600,000 | ' | ' |
Expensed unamortized loan costs | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt refinanced | ' | ' | ' | ' | ' | 20,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | ' | ' | ' | 16,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage and other notes payable | 1,108,304,000 | 1,039,617,000 | ' | 73,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Construction loan, amount released into restricted cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 198,500,000 |
Construction loan, amount withdrawn from restricted cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103,800,000 |
Construction loan, amount released into restricted Cash, amount available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $94,700,000 |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jan. 31, 2007 |
Convertible Notes Payable | Convertible Notes Payable | |||
Convertible Notes Payable [Abstract] | ' | ' | ' | ' |
Debt instrument face amount | ' | ' | ' | $115,000,000 |
Stated interest Rate Percentage | ' | ' | ' | 3.75% |
Effective interest rate | ' | ' | 6.03% | ' |
Redemption of convertible notes payable | ' | ' | 114,620,000 | ' |
Remaining outstanding balance | $380,000 | $380,000 | $400,000 | ' |
FAIR_VALUE_MEASUREMENTS_Schedu
FAIR VALUE MEASUREMENTS Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Level 1 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Derivative financial instruments | $0 |
Derivative financial instruments | 0 |
Level 2 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Derivative financial instruments | 2,041 |
Derivative financial instruments | 2,532 |
Level 3 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Derivative financial instruments | 0 |
Derivative financial instruments | $0 |
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS Fair Value by Balance Sheet Grouping (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying (Reported) Amount, Fair Value Disclosure | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Notes Receivable and Preferred Equity Investments | $119,639 | $126,656 |
Mortgage, Convertible Notes and Other Notes Payable | 1,108,684 | 1,039,997 |
Estimate of Fair Value, Fair Value Disclosure | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Notes Receivable and Preferred Equity Investments | 119,639 | 126,656 |
Mortgage, Convertible Notes and Other Notes Payable | $1,126,650 | $1,056,457 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended |
Mar. 31, 2013 | |
Lead Trustee | ' |
Related Party Transaction [Line Items] | ' |
Related party transaction expense | $25,000 |
Unconsolidated Affiliates | ' |
Related Party Transaction [Line Items] | ' |
Revenue from Related Parties | $0 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
reportable_segments | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable segments | 3 | ' | ' |
Revenues | $46,685 | $42,289 | ' |
Property operating expenses, other operating and real estate taxes | -13,481 | -10,983 | ' |
General and administrative | -6,896 | -5,626 | ' |
Depreciation and amortization | -11,587 | -9,229 | ' |
Operating income | 14,721 | 16,451 | ' |
Equity in (losses) earnings of unconsolidated affiliates | 3,029 | 2,250 | ' |
Loss on debt extinguishment | -203 | 0 | ' |
Gain on disposition of property | 12,387 | 0 | ' |
Interest and other finance expense | -10,651 | -9,285 | ' |
Income tax provision | -168 | 139 | ' |
Income from continuing operations | 19,115 | 9,555 | ' |
Income from discontinued operations | 0 | 1,624 | ' |
Net income | 19,115 | 11,179 | ' |
Continuing operations | 2,480 | 35 | ' |
Income from discontinued operations attributable to noncontrolling interests | 0 | -1,591 | ' |
Net income attributable to noncontrolling interests | 2,480 | -1,556 | ' |
Net income attributable to Common Shareholders | 21,595 | 9,623 | ' |
Real Estate at Cost | 1,922,910 | ' | 1,543,290 |
Total Assets | 2,345,862 | ' | 2,295,869 |
Acquisition of Real Estate | 90,500 | ' | 86,600 |
Investment in Redevelopment and Improvements | 37,505 | ' | 17,941 |
Core Portfolio | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 30,149 | 26,478 | ' |
Property operating expenses, other operating and real estate taxes | -7,906 | -6,873 | ' |
General and administrative | -6,413 | -5,481 | ' |
Depreciation and amortization | -8,333 | -6,389 | ' |
Operating income | 7,497 | 7,735 | ' |
Equity in (losses) earnings of unconsolidated affiliates | 95 | -5 | ' |
Loss on debt extinguishment | 0 | ' | ' |
Gain on disposition of property | 12,387 | ' | ' |
Interest and other finance expense | -7,200 | -6,157 | ' |
Income tax provision | -104 | 92 | ' |
Income from continuing operations | 12,675 | 1,665 | ' |
Income from discontinued operations | ' | 101 | ' |
Net income | ' | 1,766 | ' |
Continuing operations | -419 | 304 | ' |
Income from discontinued operations attributable to noncontrolling interests | ' | -40 | ' |
Net income attributable to noncontrolling interests | ' | 264 | ' |
Net income attributable to Common Shareholders | 12,256 | 2,030 | ' |
Real Estate at Cost | 1,128,790 | ' | 956,647 |
Total Assets | 1,101,385 | ' | 1,075,253 |
Acquisition of Real Estate | 90,500 | ' | 86,600 |
Investment in Redevelopment and Improvements | 1,428 | ' | 456 |
Opportunity Funds | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 12,642 | 12,913 | ' |
Property operating expenses, other operating and real estate taxes | -5,575 | -4,110 | ' |
General and administrative | -483 | -145 | ' |
Depreciation and amortization | -3,254 | -2,840 | ' |
Operating income | 3,330 | 5,818 | ' |
Equity in (losses) earnings of unconsolidated affiliates | 2,934 | 2,255 | ' |
Loss on debt extinguishment | -203 | ' | ' |
Gain on disposition of property | 0 | ' | ' |
Interest and other finance expense | -3,451 | -3,128 | ' |
Income tax provision | -64 | 47 | ' |
Income from continuing operations | 2,546 | 4,992 | ' |
Income from discontinued operations | ' | 1,523 | ' |
Net income | ' | 6,515 | ' |
Continuing operations | 2,899 | -269 | ' |
Income from discontinued operations attributable to noncontrolling interests | ' | -1,551 | ' |
Net income attributable to noncontrolling interests | ' | -1,820 | ' |
Net income attributable to Common Shareholders | 5,445 | 4,695 | ' |
Real Estate at Cost | 794,120 | ' | 586,643 |
Total Assets | 1,124,838 | ' | 1,115,249 |
Acquisition of Real Estate | 0 | ' | 0 |
Investment in Redevelopment and Improvements | 36,077 | ' | 17,485 |
Structured Financing | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 3,894 | 2,898 | ' |
Property operating expenses, other operating and real estate taxes | 0 | 0 | ' |
General and administrative | 0 | 0 | ' |
Depreciation and amortization | 0 | 0 | ' |
Operating income | 3,894 | 2,898 | ' |
Equity in (losses) earnings of unconsolidated affiliates | 0 | 0 | ' |
Loss on debt extinguishment | 0 | ' | ' |
Gain on disposition of property | 0 | ' | ' |
Interest and other finance expense | 0 | 0 | ' |
Income tax provision | 0 | 0 | ' |
Income from continuing operations | 3,894 | 2,898 | ' |
Income from discontinued operations | ' | 0 | ' |
Net income | ' | 2,898 | ' |
Continuing operations | 0 | 0 | ' |
Income from discontinued operations attributable to noncontrolling interests | ' | 0 | ' |
Net income attributable to noncontrolling interests | ' | 0 | ' |
Net income attributable to Common Shareholders | 3,894 | 2,898 | ' |
Real Estate at Cost | 0 | ' | 0 |
Total Assets | 119,639 | ' | 105,367 |
Acquisition of Real Estate | 0 | ' | 0 |
Investment in Redevelopment and Improvements | $0 | ' | $0 |
LONGTERM_INCENTIVE_COMPENSATIO1
LONG-TERM INCENTIVE COMPENSATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2009 | Dec. 31, 2009 | Feb. 28, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Officer | Senior Executives | Senior Executives | LTIP Units | LTIP Units | Restricted Stock | Restricted Stock | LTIP Units and Restricted Stock | LTIP Units and Restricted Stock | LTIP Units and Restricted Stock | LTIP Units and Restricted Stock | |||
Long Term Investment Alignment Program | Fund IV | Officer | Kenneth Bernstein | Officer | Other Employees | ||||||||
Long Term Investment Alignment Program | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in shares) | ' | ' | ' | ' | ' | 326,230 | 114,198 | 918 | 10,527 | ' | ' | ' | ' |
Percent of Awards Issued to Officers Subject to Performance Measures | ' | ' | 16.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Granted During Period, Value, Share-based Compensation, Net of Forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,900,000 | $11,400,000 | ' | ' |
Share-based Compensation | 2,087,000 | 1,411,000 | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' |
Long Term Incentive and Share Based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,400,000 | $1,300,000 | $500,000 |
Maximum Percentage of Promote To Be Awarded as Share Based Compensation Awards | ' | ' | ' | 25.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
Nonperforming Mortgage Notes Receivable | Fund IV | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||
note_receivable | Mortgage Loan, 12.8% Loan, Due 2015 | Nonperforming Mortgage Notes Receivable | Sheepshead Bay Property | Broughton Street Portfolio | 152-154 Spring Street | ||||||
Fund III | Fund IV | Manhattan, NY | |||||||||
properties | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' |
Purchase Price | ' | ' | ' | ' | $4,900,000 | ' | ' | ' | $20,200,000 | $13,800,000 | $38,000,000 |
Mortgage loans on real estate, exchange of mortgage for investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 |
Carrying amount of mortgages | 119,639,000 | ' | 126,656,000 | 4,800,000 | ' | ' | 13,000,000 | ' | ' | ' | 42,000,000 |
Equity method investment, ownership percentage sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Proceeds from sale of equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 |
Effective interest rate | ' | ' | ' | ' | ' | ' | 12.70% | ' | ' | ' | ' |
Number of outstanding non-performing notes receivable, payment received | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Proceeds from notes receivable | 7,156,000 | 5,529,000 | ' | ' | ' | ' | ' | 10,300,000 | ' | ' | ' |
Proceeds from notes receivable, principle | ' | ' | ' | ' | ' | ' | ' | 6,800,000 | ' | ' | ' |
Proceeds from notes receivable, interest | ' | ' | ' | ' | ' | ' | ' | $3,500,000 | ' | ' | ' |