Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ACADIA REALTY TRUST | |
Entity Central Index Key | 899,629 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 68,829,489 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Operating real estate | ||
Land | $ 507,952 | $ 424,661 |
Buildings and improvements | 1,522,127 | 1,329,080 |
Construction in progress | 15,206 | 7,464 |
Gross operating real estate | 2,045,285 | 1,761,205 |
Less: accumulated depreciation | 277,678 | 256,015 |
Net operating real estate | 1,767,607 | 1,505,190 |
Real estate under development | 533,295 | 447,390 |
Notes receivable and preferred equity investments, net | 168,931 | 102,286 |
Investments in and advances to unconsolidated affiliates | 166,632 | 184,352 |
Cash and cash equivalents | 104,651 | 217,580 |
Cash in escrow | 31,781 | 20,358 |
Restricted cash | 29,192 | 30,604 |
Rents receivable, net | 37,887 | 36,962 |
Deferred charges, net | 32,984 | 30,679 |
Acquired lease intangibles, net | 47,683 | 44,618 |
Prepaid expenses and other assets | 53,056 | 56,508 |
Assets of properties held for sale | 0 | 56,073 |
Total assets | 2,973,699 | 2,732,600 |
LIABILITIES | ||
Mortgage and other notes payable | 1,326,667 | 1,130,481 |
Distributions in excess of income from, and investments in, unconsolidated affiliates | 13,161 | 12,564 |
Accounts payable and accrued expenses | 37,551 | 34,026 |
Dividends and distributions payable | 17,697 | 39,339 |
Acquired lease intangibles, net | 31,137 | 29,585 |
Other liabilities | 27,616 | 25,148 |
Liabilities of properties held for sale | 0 | 25,500 |
Total liabilities | 1,453,829 | 1,296,643 |
Shareholders' Equity | ||
Common shares, $.001 par value, authorized 100,000,000 shares; issued and outstanding 68,828,560 and 68,109,287 shares, respectively | 69 | 68 |
Additional paid-in capital | 1,050,385 | 1,027,861 |
Accumulated other comprehensive loss | (3,284) | (4,005) |
Retained earnings | 41,654 | 31,617 |
Total shareholders’ equity | 1,088,824 | 1,055,541 |
Noncontrolling interests | 431,046 | 380,416 |
Total equity | 1,519,870 | 1,435,957 |
Total liabilities and equity | $ 2,973,699 | $ 2,732,600 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 68,828,560 | 68,109,287 |
Common stock, shares outstanding | 68,828,560 | 68,109,287 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
Rental income | $ 39,784 | $ 36,112 | $ 77,971 | $ 69,930 |
Interest income | 3,985 | 3,049 | 7,393 | 6,213 |
Expense reimbursements | 7,825 | 7,832 | 17,891 | 16,622 |
Other | 1,567 | 2,518 | 2,387 | 3,431 |
Total revenues | 53,161 | 49,511 | 105,642 | 96,196 |
Operating Expenses | ||||
Property operating | 6,196 | 5,737 | 13,927 | 12,861 |
Other operating | 599 | 908 | 2,719 | 1,595 |
Real estate taxes | 6,419 | 5,569 | 12,711 | 11,239 |
General and administrative | 8,005 | 6,879 | 15,537 | 13,775 |
Depreciation and amortization | 13,903 | 11,584 | 27,561 | 23,171 |
Total operating expenses | 40,122 | 30,677 | 77,455 | 62,641 |
Operating income | 13,039 | 18,834 | 28,187 | 33,555 |
Equity in earnings of unconsolidated affiliates | 3,406 | 1,430 | 9,999 | 4,459 |
Gain on disposition of property of unconsolidated affiliates | 17,105 | 0 | 17,105 | 0 |
Loss on debt extinguishment | (25) | (66) | (134) | (269) |
Impairment of asset | (5,000) | 0 | (5,000) | 0 |
Gain on disposition of properties | 61,841 | 561 | 88,984 | 12,948 |
Interest and other finance expense | (9,964) | (9,534) | (18,785) | (20,185) |
Income from continuing operations before income tax benefit (provision) | 85,402 | 11,225 | 125,356 | 30,508 |
Income tax benefit (provision) | 56 | 83 | (1,361) | (85) |
Income from continuing operations | 85,458 | 11,308 | 123,995 | 30,423 |
Discontinued Operations | ||||
Gain on disposition of property | 0 | 560 | 0 | 560 |
Income from discontinued operations | 0 | 560 | 0 | 560 |
Net income | 85,458 | 11,868 | 123,995 | 30,983 |
Continuing operations | (58,963) | 57 | (80,953) | 2,537 |
Discontinued operations | 0 | (461) | 0 | (461) |
Net (income) loss attributable to noncontrolling interests | (58,963) | (404) | (80,953) | 2,076 |
Net income attributable to Common Shareholders | $ 26,495 | $ 11,464 | $ 43,042 | $ 33,059 |
Basic and diluted earnings per share | $ 0.38 | $ 0.19 | $ 0.62 | $ 0.57 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 85,458 | $ 11,868 | $ 123,995 | $ 30,983 |
Other comprehensive income (loss) | ||||
Unrealized income (loss) on valuation of swap agreements | 2,644 | (2,782) | (1,655) | (5,112) |
Reclassification of realized interest on swap agreements | 2,399 | 936 | 3,452 | 1,773 |
Other comprehensive income (loss) | 5,043 | (1,846) | 1,797 | (3,339) |
Comprehensive income | 90,501 | 10,022 | 125,792 | 27,644 |
Comprehensive income attributable to noncontrolling interests | (60,461) | (4,640) | (82,029) | (2,207) |
Comprehensive income attributable to Common Shareholders | $ 30,040 | $ 5,382 | $ 43,763 | $ 25,437 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total Shareholders’ Equity | Common Shares | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Noncontrolling Interests |
Balance (in Shares) at Dec. 31, 2014 | 68,109,287 | 68,109,000 | |||||
Balance at Dec. 31, 2014 | $ 1,435,957 | $ 1,055,541 | $ 68 | $ 1,027,861 | $ (4,005) | $ 31,617 | $ 380,416 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Conversion of OP Units to Common Shares by limited partners of the Operating Partnership (in Shares) | 67,000 | ||||||
Conversion of OP Units to Common Shares by limited partners of the Operating Partnership | 0 | 1,655 | 1,655 | (1,655) | |||
Issuance of Common Shares, net of issuance costs (in Shares) | 624,000 | ||||||
Issuance of Common Shares, net of issuance costs | 21,080 | 21,080 | $ 1 | 21,079 | |||
Dividends declared ($0.48 per Common Share) | (35,368) | (33,005) | (33,005) | (2,363) | |||
Employee and trustee stock compensation, net (in Shares) | 29,000 | ||||||
Employee and trustee stock compensation, net | 3,844 | 452 | 452 | 3,392 | |||
Acquisition of noncontrolling interests | (662) | ||||||
Noncontrolling interest distributions | (60,907) | (60,907) | |||||
Noncontrolling interest contributions | 30,134 | 30,134 | |||||
Balance before adjustment towards comprehensive income (in Shares) | 68,829,000 | ||||||
Balance before adjustment towards comprehensive income | 1,394,078 | 1,045,061 | $ 69 | 1,050,385 | (4,005) | (1,388) | 349,017 |
Comprehensive (loss) income: | |||||||
Net income | 123,995 | 43,042 | 43,042 | 80,953 | |||
Unrealized loss on valuation of swap agreements | (1,655) | (1,097) | (1,097) | (558) | |||
Reclassification of realized interest on swap agreements | 3,452 | 1,818 | 1,818 | 1,634 | |||
Total comprehensive income | $ 125,792 | 43,763 | 721 | 43,042 | 82,029 | ||
Balance (in Shares) at Jun. 30, 2015 | 68,828,560 | 68,829,000 | |||||
Balance at Jun. 30, 2015 | $ 1,519,870 | $ 1,088,824 | $ 69 | $ 1,050,385 | $ (3,284) | $ 41,654 | $ 431,046 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) | 6 Months Ended |
Jun. 30, 2015$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock, dividends, per share, declared (in dollars per share) | $ 0.48 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 123,995 | $ 30,983 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 27,561 | 23,171 |
Amortization of financing costs | 1,546 | 1,468 |
Gain on disposition of properties | (88,984) | (13,508) |
Impairment of asset | 5,000 | 0 |
Share compensation expense | 3,746 | 3,833 |
Equity in earnings of unconsolidated affiliates | (9,999) | (4,459) |
Gain on disposition of property of unconsolidated affiliates | (17,105) | 0 |
Distributions of operating income from unconsolidated affiliates | 10,035 | 5,550 |
Other, net | (2,645) | (1,737) |
Changes in assets and liabilities | ||
Cash in escrow | (11,505) | (5,691) |
Rents receivable, net | (2,401) | (834) |
Prepaid expenses and other assets | 7,928 | 7,570 |
Accounts payable and accrued expenses | 3,828 | 597 |
Other liabilities | 2,751 | (941) |
Net cash provided by operating activities | 53,751 | 46,002 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of real estate | (273,071) | (107,600) |
Redevelopment and property improvement costs | (105,245) | (68,311) |
Deferred leasing costs | (4,274) | (1,224) |
Investments in and advances to unconsolidated affiliates | (6,505) | (28,100) |
Return of capital from unconsolidated affiliates | 5,660 | 24,326 |
Proceeds from disposition of property of unconsolidated affiliates | 25,604 | 0 |
Proceeds from notes receivable | 0 | 11,990 |
Issuance of notes receivable | (48,200) | (19,362) |
Proceeds from sale of properties, net | 197,882 | 19,158 |
Net cash used in investing activities | (208,149) | (169,123) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on mortgage and other notes | (188,166) | (132,452) |
Proceeds received from mortgage and other notes | 268,761 | 189,700 |
Loan proceeds held as restricted cash | 30,324 | 38,513 |
Deferred financing and other costs | (2,746) | (2,033) |
Capital contributions from noncontrolling interests | 30,134 | 31,046 |
Distributions to noncontrolling interests | (64,648) | (56,730) |
Dividends paid to Common Shareholders | (53,270) | (25,814) |
Proceeds from issuance of Common Shares, net of issuance costs of $522 and $1,495, respectively | 21,080 | 88,499 |
Net cash provided by financing activities | 41,469 | 130,729 |
(Decrease) increase in cash and cash equivalents | (112,929) | 7,608 |
Cash and cash equivalents, beginning of period | 217,580 | 79,189 |
Cash and cash equivalents, end of period | 104,651 | 86,797 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest, net of capitalized interest of $7,465 and $6,095, respectively | 22,735 | 23,486 |
Cash paid for income taxes | 1,573 | 316 |
Supplemental disclosure of non-cash investing activities | ||
Acquisition of real estate through assumption of debt | 90,765 | 0 |
Disposition of real estate through cancellation of debt | 0 | (22,865) |
Acquisition of real estate through conversion of notes receivable | 6,886 | 38,000 |
Acquisition of real estate through assumption of restricted cash | 28,192 | 0 |
Disposition of air rights through issuance of notes receivable | $ (29,793) | $ 0 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Stock issuance costs | $ 522 | $ 1,495 |
Cash paid for capitalized interest | $ 7,465 | $ 6,095 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
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 ownership, acquisition, redevelopment and management of high-quality retail properties located primarily in high-barrier-to-entry, supply-constrained, densely-populated metropolitan areas in the United States. 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 June 30, 2015 , the Trust controlled approximately 95% 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 12). 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 June 30, 2015 , the Company has ownership interests in 89 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 (the "Core Portfolio"). The Company also has ownership interests in 56 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 145 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, Mervyns I and Mervyns II and earns fees or priority distributions for asset management, property management, construction, redevelopment, leasing and legal services. Cash from the Funds and RCP Venture is distributed pro-rata to the 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 Fund Size Capital Called as of June 30, 2015 (3) Unfunded Commitment Equity Interest Held By Operating Partnership Preferred Return Total Distributions as of June 30, 2015 (3) Fund I and Mervyns I (1) 9/2001 22.22% $90.0 $86.6 $— 37.78% 9% $194.4 Fund II and Mervyns II (2) 6/2004 20.00% 300.0 300.0 47.1 20.00% 8% 131.6 Fund III 5/2007 19.90% 502.5 381.6 68.4 19.90% 6% 429.1 Fund IV 5/2012 23.12% 540.6 179.4 361.2 23.12% 6% 101.9 1. ORGANIZATION AND BASIS OF PRESENTATION (continued) 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. 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 and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015 . 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. Such adjustments consisted of normal recurring items. These consolidated financial statements should be read in conjunction with the Company's 2014 Annual Report on Form 10-K, as filed with the SEC on February 20, 2015. Reclassifications Certain reclassifications have been made to the 2014 financial statements to conform to the 2015 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. During the quarter ended June 30, 2015, as a result of the loss of a key anchor tenant, one of the properties in the Company's Brandywine Portfolio, in which an unaffiliated third party has a 77.78% noncontrolling interest, did not generate sufficient cash flow to meet the full debt service requirements leading to a default on the mortgage loan. Management performed an analysis and determined that the carrying amount of this property was not recoverable. Accordingly, the Company recorded an impairment charge of $5.0 million , which is included in the statement of income for the six months ended June 30, 2015. The Operating Partnership's share of this charge, net of the noncontrolling interest, was $1.1 million . The property is collateral for $26.3 million of non-recourse mortgage debt which matures July 1, 2016. Management does not believe that the carrying values of any of its other properties are impaired as of June 30, 2015 . 1. ORGANIZATION AND BASIS OF PRESENTATION (continued) Recent Accounting Pronouncements During April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software." ASU 2015-05 provides guidance to help an entity evaluate the accounting for fees paid in a cloud computing arrangement. ASU 2015-05 is effective for periods beginning after December 15, 2015, with early adoption permitted and may be applied either prospectively or retrospectively. ASU 2015-05 is not expected to have a material impact on the Company's consolidated financial statements. During April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 modifies the treatment of debt issuance costs from a deferred charge to a deduction of the carrying value of the financial liability. ASU 2015-03 is effective for periods beginning after December 15, 2015, with early adoption permitted and retrospective application. ASU 2015-03 is not expected to have a material impact on the Company's consolidated financial statements. During February 2015, the FASB issued ASU No. 2015-02, "Consolidation - Amendments to the Consolidation Analysis." ASU 2015-02 (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIE’s"), (ii) eliminates the presumption that a general partner should consolidate a limited partnership and (iii) affects the consolidation analysis of reporting entities that are involved with VIE’s, particularly those with fee arrangements and related party relationships. ASU 2015-02 is effective for periods beginning after December 15, 2015, with early adoption permitted. The Company is in the process of evaluating the impact the adoption of ASU 2015-02 will have on the consolidated financial statements. During January 2015, the FASB issued ASU No. 2015-01, "Income Statement - Extraordinary and Unusual Items." ASU 2015-01 eliminates the concept of extraordinary items. However, the presentation and disclosure requirements for items that are either unusual in nature or infrequent in occurrence remain and will be expanded to include items that are both unusual in nature and infrequent in occurrence. ASU 2015-01 is effective for periods beginning after December 15, 2015. ASU 2015-01 is not expected to have a material impact on the Company's consolidated financial statements. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 , the Company has unvested LTIP Units (Note 12) 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 12). 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 June 30, 2015 and for the six months ended June 30, 2015 and June 30, 2014. Conversely, the assumed conversion of these would be anti-dilutive and are therefore not included in the computation of diluted earnings per share for the three months ended June 30, 2014. 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 following table sets forth the computation of basic and diluted earnings per share from continuing operations for the periods indicated: 2. EARNINGS PER COMMON SHARE (continued) Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands, except per share amounts) 2015 2014 2015 2014 Numerator Income from continuing operations $ 26,495 $ 11,365 $ 43,042 $ 32,960 Less: net income attributable to participating securities (238 ) (197 ) (478 ) (585 ) Income from continuing operations, net of income attributable to participating securities 26,257 11,168 42,564 32,375 Denominator Weighted average shares for basic earnings per share 68,825 58,013 68,561 56,989 Effect of dilutive securities: Employee Restricted Share Units and share options 19 19 30 28 Convertible Preferred OP Units 25 — 25 25 Denominator for diluted earnings per share 68,869 58,032 68,616 57,042 Basic and diluted earnings per Common Share from continuing operations attributable to Common Shareholders $ 0.38 $ 0.19 $ 0.62 $ 0.57 |
SHAREHOLDERS' EQUITY AND NONCON
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Shareholders' Equity And Noncontrolling Interests | SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS For the six months ended June 30, 2015, the Company issued 0.6 million Common Shares under its at-the-market ("ATM") equity program, generating gross proceeds of $21.6 million and net proceeds of $21.1 million . The net proceeds from the Company's ATM equity programs have been, and are anticipated to be, used by the Company primarily to fund Core Portfolio acquisitions, its capital contributions to the Funds and for general corporate purposes. 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’ 2,961,517 and 2,988,277 Common OP Units at June 30, 2015 and December 31, 2014 ; (ii) 188 Series A Preferred OP Units at June 30, 2015 and December 31, 2014 ; and (iii) 929,169 and 675,367 LTIP Units at June 30, 2015 and December 31, 2014 , respectively. |
ACQUISITION AND DISPOSITION OF
ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE | 6 Months Ended |
Jun. 30, 2015 | |
ACQUISITION AND DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS ABSTRACT | |
ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS | ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE Acquisitions During 2015, the Company acquired the following properties through its Core Portfolio, Fund II, and Fund IV: (dollars in thousands) Property GLA Percent Owned Type Month of Acquisition Purchase Price Location Assumption of Debt Core Portfolio: City Center 205,000 100 % Urban Retail Center March $ 155,000 San Fransisco, CA $ — 163 Highland Avenue 40,500 100 % Suburban Shopping Center March 24,000 Needham, MA 9,765 Route 202 Shopping Center (1) 20,000 100 % Suburban Shopping Center April 5,643 Wilmington, DE — Total Core Portfolio 265,500 $ 184,643 $ 9,765 Fund II: City Point - Tower I (2) — 95 % Urban Development May $ 100,800 Brooklyn, NY $ 81,000 Total Fund II — $ 100,800 $ 81,000 Fund IV: 1035 Third Avenue (3) 53,294 100 % Street Retail January $ 51,036 New York, NY $ — 801 Madison Avenue 6,375 100 % Street Retail April 33,000 New York, NY — Total Fund IV 59,669 $ 84,036 $ — Total 325,169 $ 369,479 $ 90,765 Notes: (1) Purchase price represents the 77.78% interest acquired from an unaffiliated third party. (2) Fund II previously held a 52% interest in this unconsolidated affiliate. In connection with the disposition of Phase III of this project discussed below, Fund II acquired an additional 43% interest in Tower I of this development project. In total, Fund II now owns 95% of this investment, which is a residential project anticipated to include 250 residential units. (3) GLA includes a portion of office space and a below-grade operator controlled parking garage. In addition, during the second quarter, the Company acquired the remaining 10% interest in a property from an unaffiliated joint venture partner in exchange for $4.2 million , including the conversion of a $1.9 million note receivable (Note 6). The Company expensed $0.7 million of acquisition costs for the six months ended June 30, 2015, related to the Core Portfolio and $2.0 million of acquisition costs for the six months ended June 30, 2015, related to Fund IV. Purchase Price Allocations With the exception of the acquisition of City Point - Tower I, which was an asset acquisition, the above acquisitions have been accounted for as business combinations. The purchase prices were allocated to the acquired assets and assumed 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. 4. ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE(continued) Acquisitions (continued) The following table summarizes the Company's preliminary allocations of the purchase prices of assets acquired and liabilities assumed during 2015 which have yet to be finalized: (dollars in thousands) Preliminary Purchase Price Allocations Land $ 65,759 Buildings and improvements 204,532 Above-below market debt assumed (included in Mortgage and other notes payable) (9,765 ) Total consideration $ 260,526 During 2014, the Company acquired properties and recorded the preliminary allocations of the purchase prices to the assets acquired and liabilities assumed based on provisional measurements of fair value. During 2015, 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, 2014, and the finalized allocations as adjusted as of June 30, 2015: (dollars in thousands) Purchase Price Allocations as Originally Reported Adjustments Finalized Purchase Price Allocations Land $ 43,820 $ 16,751 $ 60,571 Buildings and improvements 126,955 (21,578 ) 105,377 Acquisition-related intangible assets (in Acquired lease intangibles, net) — 9,836 9,836 Acquisition-related intangible liabilities (in Acquired lease intangibles, net) — (5,009 ) (5,009 ) Total consideration $ 170,775 $ — $ 170,775 Dispositions During 2015, the Company disposed of the following properties: (dollars in thousands) Dispositions GLA Sale Price Gain on Sale Month Sold Owner Lincoln Park Centre 61,761 $ 64,000 $ 27,143 January Fund III White City Shopping Center (1) 249,549 96,750 17,105 April Fund III City Point - Air Rights (2) — 115,600 49,884 May Fund II Liberty Avenue 26,117 24,000 11,957 May Fund II Total 337,427 $ 300,350 $ 106,089 Note: (1) Fund III's White City Shopping Center was unconsolidated and as such, the Company's share of gains related to this sale is included in gain on disposition of property of unconsolidated affiliates in the 2015 Consolidated Statement of Income. (2) Represents the disposition of air rights at Phase III of Fund II's City Point project. 4. ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE (continued) Properties Held For Sale At June 30, 2015, no assets were held for sale. At December 31, 2014, The Company had two properties classified as held-for-sale. |
INVESTMENTS IN AND ADVANCES TO
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES | 6 Months Ended |
Jun. 30, 2015 | |
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 88.43% tenancy-in-common interest in an 87,000 square foot retail property located in Chicago, Illinois. Due to the level of operating control maintained by the unaffiliated partners in these investments, they are accounted for under the equity method. During the quarter, the Company acquired the remaining 77.78% outstanding interest of an approximately 20,000 square foot retail property located in Wilmington, Delaware ("Route 202 Shopping Center") that was previously accounted for under the equity method from an unaffiliated partner. As a result of the transaction, the Company now consolidates this investment. 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 June 30, 2015 , 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 six months ended June 30, 2015, the Company received distributions from its RCP Venture of $5.7 million , of which the Operating Partnership's aggregate share was $1.2 million . The following table summarizes activity related to the RCP Venture investments from inception through June 30, 2015 : 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) (dollars in thousands) Investment Group Share Operating Partnership Share Investment Year Acquired Invested Capital and Advances Distributions Invested Capital and Advances Distributions Mervyns 2004 $ 26,058 $ 48,547 $ 4,901 $ 11,801 Mervyns Add-On investments 2005/2008 7,547 9,272 1,252 2,017 Albertsons 2006 20,717 81,594 4,239 16,318 Albertsons Add-On investments 2006/2007 2,416 4,864 388 972 Shopko 2006 1,110 3,358 222 672 Marsh and Add-On investments 2006/2008 2,667 2,941 533 588 Rex Stores 2007 2,701 4,727 535 946 $ 63,216 $ 155,303 $ 12,070 $ 33,314 Other Fund Investments During April 2015, Fund III's White City Shopping Center was sold for $96.8 million . Fund III's $17.3 million share of the gain was recognized in gain on disposition of property of unaffiliated affiliates within the Consolidated Statements of Income. The unaffiliated partners in Fund III's investments in Parkway Crossing and Arundel Plaza as well as Fund IV's investments in 1701 Belmont Avenue, 2819 Kennedy Boulevard, Promenade at Manassas, Eden Square 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. 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) June 30, December 31, Combined and Condensed Balance Sheets Assets Rental property, net $ 322,352 $ 387,739 Real estate under development — 60,476 Investment in unconsolidated affiliates 7,548 11,154 Other assets 59,917 62,862 Total assets $ 389,817 $ 522,231 Liabilities and partners’ equity Mortgage notes payable $ 266,109 $ 315,897 Other liabilities 17,714 66,116 Partners’ equity 105,994 140,218 Total liabilities and partners’ equity $ 389,817 $ 522,231 Company’s investment in and advances to unconsolidated affiliates $ 166,632 $ 184,352 Company's share of distributions in excess of income from, and investments in, unconsolidated affiliates $ (13,161 ) $ (12,564 ) 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2015 2014 2015 2014 Combined and Condensed Statements of Income Total revenues $ 10,342 $ 12,247 $ 22,015 $ 24,352 Operating and other expenses (3,102 ) (5,503 ) (6,833 ) (9,318 ) Interest and other finance expense (2,259 ) (2,975 ) (4,897 ) (5,500 ) Equity in earnings (losses) of unconsolidated affiliates — — 66,655 (328 ) Depreciation and amortization (2,787 ) (3,475 ) (5,037 ) (6,181 ) Loss on debt extinguishment — — — (187 ) Gain on disposition of property 25,208 239 25,208 239 Net income $ 27,402 $ 533 $ 97,111 $ 3,077 Company’s share of net income $ 20,609 $ 1,528 $ 27,300 $ 4,655 Amortization of excess investment (98 ) (98 ) (196 ) (196 ) Company’s equity in earnings of unconsolidated affiliates $ 20,511 $ 1,430 $ 27,104 $ 4,459 |
STRUCTURED FINANCINGS, NET
STRUCTURED FINANCINGS, NET | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
NOTES RECEIVABLE AND PREFERRED EQUITY INVESTMENTS, NET | STRUCTURED FINANCINGS, NET As of June 30, 2015 , the Company’s structured financing portfolio, net consisted of notes receivable and preferred equity investments, aggregating $168.9 million . These investments were collateralized either by underlying properties, the borrowers' ownership interests in the entities that own properties and/or by the borrowers' personal guarantee subject, as applicable, to senior liens, as follows: (dollars in thousands) Description Notes Effective interest rate (1) First Priority liens Net Carrying Amounts of Structured Financing Investments as of June 30, 2015 Net Carrying Amounts of Structured Financing Investments as of December 31, 2014 Maturity date Extension Options First Mortgage Loan 7.7% $ 12,000 $ 12,000 7/15/2015 Mezzanine Loan 12.7% 18,900 8,000 8,000 10/3/2015 First Mortgage Loan 8.8% 7,500 7,500 10/31/2015 1 x 12 Months Zero Coupon Loan (2) (3) 24.0% 166,200 — 4,986 1/3/2016 First Mortgage Loan 5.5% 4,000 4,000 4/1/2016 1 x 6 Months First Mortgage Loan (4) 6.0% 15,000 — 5/1/2016 1 x 12 Months Preferred Equity 13.5% 4,000 4,000 5/9/2016 Other (5) 17.0% 6,500 — 6/1/2016 Other 18.0% 3,607 3,307 7/1/2017 Preferred Equity 8.1% 20,855 13,000 13,000 9/1/2017 First Mortgage Loan (6) LIBOR + 7.1% 26,000 — 6/25/2018 1 x 12 Months Zero Coupon Loan (2) (7) 2.5% 29,793 — 5/31/2020 Mezzanine Loan 15.0% 30,879 30,879 11/9/2020 Other LIBOR + 2.5% — 4,000 12/30/2020 Mezzanine Loan (8) 10.0% 87,477 7,983 7,983 Demand Individually less than 3% (9) (10) (11) 11.6% 669 2,631 12/31/2015 Total $ 168,931 $ 102,286 Notes: (1) Includes origination and exit fees (2) The principal balance for this accrual-only loan is increased by the interest accrued. (3) During April 2015, the Company converted a $5.6 million loan into an equity interest in a shopping center (Note 4). (4) During May 2015, the Company made a $15.0 million loan, which is collateralized by a property, bears interest at 6.0% and matures May 1, 2016 . (5) During June 2015, the Company made a $6.5 million loan, which bears interest at 17.0% and matures June 1, 2016 . (6) During June 2015, the Company made a $26.0 million loan, which is collateralized by a property, bears interest at LIBOR + 7.1% and matures June 25, 2018 . 6. STRUCTURED FINANCINGS, NET (continued) (7) During June 2015, the Company made a $29.8 million loan in connection with the disposition of City Point's Phase III (Note 4), which is collateralized by the purchaser's interest of the property. The loan bears interest at 2.5% and matures May 31, 2020 . (8) Comprised of three cross-collateralized loans from one borrower, which are non-performing. Subsequent to June 30, 2015, these notes were repaid in full (Note 13). (9) Consists of one loan as of June 30, 2015 . (10) During February 2015, the Company advanced an additional $0.4 million on this loan collateralized by a property. (11) During June 2015, the Company converted a $1.9 million loan into an equity interest in the remaining 10% of 152-154 Spring Street (Note 4). 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 June 30, 2015 , the Company held three non-performing notes. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS As of June 30, 2015 , the Company's derivative financial instruments consisted of 14 interest rate swaps with an aggregate notional value of $207.9 million , which effectively fix the London Inter-Bank Offer Rate ("LIBOR") at rates ranging from 1.4% to 3.8% and mature between July 2018 and March 2025 . The Company also has four derivative financial instruments with an aggregate notional value of $139.0 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 that represent liabilities are included in other liabilities in the Consolidated Balance Sheets and totaled $4.0 million and $4.6 million at June 30, 2015 and December 31, 2014 , respectively. The fair value of these derivative instruments representing assets are included in prepaid expenses and other assets in the Consolidated Balance Sheets and totaled $0.3 million and $0.2 million at June 30, 2015 and December 31, 2014 . 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 and other debt. Such instruments are reported at their fair values as stated above. As of June 30, 2015 and December 31, 2014 , unrealized losses totaling $(3.3) million and $(4.0) million , respectively, were reflected in accumulated other comprehensive loss on the Consolidated Balance Sheets. As of June 30, 2015 and December 31, 2014 , 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 PAYABL
MORTGAGE AND OTHER NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 : Secured Debt: (dollars in thousands) Borrowings Repayments Property Date Description Amount Interest Rate Maturity Date Amount Interest Rate 1035 Third Avenue January New Borrowing $ 42,000 LIBOR+2.35% 1/28/2021 $ — Lincoln Park Centre January Repayment 28,000 LIBOR+1.45% 163 Highland Avenue March Assumption 9,765 4.66% 3/1/2024 Broughton Street Portfolio (1) May New Borrowing 20,000 LIBOR+3.00% 5/5/2016 City Point June Assumption 19,000 1.25% 12/1/2016 City Point June Assumption 62,000 SIFMA+1.60% 12/1/2016 City Point June Repayment 20,650 LIBOR+4.00% 17 E. 71st Street June New Borrowing 19,000 LIBOR+1.90% 6/9/2020 Crescent Plaza June Repayment 16,326 4.98% Total $ 171,765 $ 64,976 Notes: (1) This loan is collateralized by properties in an unconsolidated joint venture. Fund IV has fully indemnified the unaffiliated joint venture partner and as such, this loan is included as consolidated debt. Unsecured Debt: During the six months ended June 30, 2015 , the Company redeemed the remaining $0.4 million of its outstanding convertible notes at par value. During the six months ended June 30, 2015 , the Company borrowed $83.5 million on its unsecured credit facility. The outstanding balance under this facility is $83.5 million as of June 30, 2015 . During the six months ended June 30, 2015 , the Company repaid $54.7 million on its Fund IV subscription line. The outstanding balance under this facility is $22.4 million as of June 30, 2015 . During May 2015, Fund II closed on a $25.0 million unsecured credit facility. At closing, Fund II drew $12.5 million . The facility bears interest at LIBOR plus 275 basis points , bears an unused fee of 275 basis points if the amount drawn is less than $12.5 million . The loan matures October 19, 2016 . Along with a guarantee with respect to customary non-recourse carve outs, the Operating Partnership, as the managing member of Fund II, has provided a guarantee of principal, interest and fees upon a default as a result of Fund II’s breach of certain specified financial covenants. During March 2015, Fund IV closed on a $50.0 million unsecured credit facility. The current balance outstanding at June 30, 2015 is $34.5 million . The facility bears interest at LIBOR plus 275 basis points , bears an unused fee of 100 basis points if the unused amount is greater than $20.0 million and an unused fee of 275 basis points if the unused amount is less than $20.0 million . The loan matures February 9, 2017 with one 6 -month extension option. Along with a guarantee with respect to customary non-recourse carve outs, the Operating Partnership, as the managing member of Fund IV, has provided a guarantee of principal, interest and fees upon a default as a result of Fund IV’s breach of certain specified financial covenants. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 : (dollars in thousands) Level 1 Level 2 Level 3 Assets Derivative financial instruments (Note 7) $ — $ 289 $ — Liabilities Derivative financial instruments (Note 7) $ — $ 3,997 $ — 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 sheets 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). During the quarter ended June 30, 2015, the Company determined that the value of one of the properties in its Brandywine Portfolio was impaired and recorded an impairment loss of $5.0 million (Note 1), of which the Operating Partnership's pro-rata share was $1.1 million . The Company estimated the fair value by using projected future cash flows, which it determined were not sufficient to recover the property's net book value. The inputs used to determine this fair value are classified within Level 3 of the hierarchy. 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) June 30, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Notes receivable and preferred equity investments, net $ 168,931 $ 168,931 $ 102,286 $ 102,286 Mortgage and other notes payable $ 1,326,667 $ 1,345,446 $ 1,130,481 $ 1,141,371 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2015 | |
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 $0.07 million and $0.06 million for the three months ended June 30, 2015 and 2014, respectively, and $0.18 million and $0.04 million for the six months ended June 30, 2015 and 2014, respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2015 | |
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. Structured Financing represents the Company's investments in notes receivable and preferred equity. The following tables set forth certain segment information for the Company, as of and for the three and six months ended June 30, 2015 and 2014, and does not include unconsolidated affiliates: Three Months Ended June 30, 2015 (dollars in thousands) Core Portfolio Funds Structured Financing Total Revenues $ 37,593 $ 11,583 $ 3,985 $ 53,161 Property operating expenses, other operating and real estate taxes (8,235 ) (4,979 ) — (13,214 ) General and administrative expenses (7,397 ) (608 ) — (8,005 ) Depreciation and amortization (10,568 ) (3,335 ) — (13,903 ) Impairment of asset (5,000 ) — — (5,000 ) Operating income 6,393 2,661 3,985 13,039 Equity in earnings of unconsolidated affiliates 699 2,707 — 3,406 Gain on disposition of property of unconsolidated affiliates — 17,105 — 17,105 Loss on debt extinguishment — (25 ) — (25 ) Gain on disposition of properties — 61,841 — 61,841 Interest and other finance expense (7,329 ) (2,635 ) — (9,964 ) Income tax benefit (provision) 75 (19 ) — 56 Net (loss) income $ (162 ) $ 81,635 $ 3,985 $ 85,458 Noncontrolling interests Net loss (income) attributable to noncontrolling interests $ 2,205 $ (61,168 ) $ — $ (58,963 ) Net income attributable to Common Shareholders $ 2,043 $ 20,467 $ 3,985 $ 26,495 Real Estate at Cost $ 1,553,174 $ 1,025,406 $ — $ 2,578,580 Total Assets $ 1,650,555 $ 1,154,213 $ 168,931 $ 2,973,699 Acquisition of Real Estate $ — $ 52,800 $ — $ 52,800 Investment in Redevelopment and Improvements $ 3,271 $ 61,480 $ — $ 64,751 11. SEGMENT REPORTING (continued) Three Months Ended June 30, 2014 (dollars in thousands) Core Portfolio Funds Structured Financing Total Revenues $ 30,535 $ 13,934 $ 5,042 $ 49,511 Property operating expenses, other operating and real estate taxes (7,587 ) (4,627 ) — (12,214 ) General and administrative expenses (6,238 ) (641 ) — (6,879 ) Depreciation and amortization (8,300 ) (3,284 ) — (11,584 ) Operating income 8,410 5,382 5,042 18,834 Equity in earnings of unconsolidated affiliates 227 1,203 — 1,430 Loss on debt extinguishment (3 ) (63 ) — (66 ) Gain on disposition of property — 561 — 561 Interest and other finance expense (6,627 ) (2,907 ) — (9,534 ) Income tax benefit (provision) 91 (8 ) — 83 Income from continuing operations 2,098 4,168 5,042 11,308 Discontinued operations Gain on disposition of property — 560 — 560 Net income $ 2,098 $ 4,728 $ 5,042 $ 11,868 Noncontrolling interests Continuing operations $ (1,036 ) $ 1,093 $ — $ 57 Discontinued operations (4 ) (457 ) — (461 ) Net (income) loss attributable to noncontrolling interests $ (1,040 ) $ 636 $ — $ (404 ) Net income attributable to Common Shareholders $ 1,058 $ 5,364 $ 5,042 $ 11,464 Real Estate at Cost $ 1,184,956 $ 797,673 $ — $ 1,982,629 Total Assets $ 1,153,586 $ 1,122,303 $ 96,307 $ 2,372,196 Acquisition of Real Estate $ 17,100 $ — $ — $ 17,100 Investment in Redevelopment and Improvements $ 754 $ 30,052 $ — $ 30,806 11. SEGMENT REPORTING (continued) Six Months Ended June 30, 2015 (dollars in thousands) Core Portfolio Funds Structured Financing Total Revenues $ 73,186 $ 25,063 $ 7,393 $ 105,642 Property operating expenses, other operating and real estate taxes (17,926 ) (11,431 ) — (29,357 ) General and administrative expenses (14,208 ) (1,329 ) — (15,537 ) Depreciation and amortization (20,475 ) (7,086 ) — (27,561 ) Impairment of asset (5,000 ) — — (5,000 ) Operating income 15,577 5,217 7,393 28,187 Equity in earnings of unconsolidated affiliates 1,133 8,866 — 9,999 Gain on disposition of property of unconsolidated affiliates — 17,105 — 17,105 Loss on debt extinguishment — (134 ) — (134 ) Gain on disposition of property — 88,984 — 88,984 Interest and other finance expense (13,797 ) (4,988 ) — (18,785 ) Income tax provision (405 ) (956 ) — (1,361 ) Net income $ 2,508 $ 114,094 $ 7,393 $ 123,995 Noncontrolling interests Net loss (income) attributable to noncontrolling interests $ 2,026 $ (82,979 ) $ — $ (80,953 ) Net income attributable to Common Shareholders $ 4,534 $ 31,115 $ 7,393 $ 43,042 Real Estate at Cost $ 1,553,174 $ 1,025,406 $ — $ 2,578,580 Total Assets $ 1,650,555 $ 1,154,213 $ 168,931 $ 2,973,699 Acquisition of Real Estate $ 169,235 $ 103,836 $ — $ 273,071 Investment in Redevelopment and Improvements $ 9,624 $ 95,621 $ — $ 105,245 11. SEGMENT REPORTING (continued) Six Months Ended June 30, 2014 (dollars in thousands) Core Portfolio Funds Structured Financing Total Revenues $ 60,684 $ 26,576 $ 8,936 $ 96,196 Property operating expenses, other operating and real estate taxes (15,493 ) (10,202 ) — (25,695 ) General and administrative expenses (12,651 ) (1,124 ) — (13,775 ) Depreciation and amortization (16,633 ) (6,538 ) — (23,171 ) Operating income 15,907 8,712 8,936 33,555 Equity in earnings of unconsolidated affiliates 323 4,136 — 4,459 Loss on debt extinguishment (3 ) (266 ) — (269 ) Gain on disposition of property 12,387 561 — 12,948 Interest and other finance expense (13,510 ) (6,675 ) — (20,185 ) Income tax provision (13 ) (72 ) — (85 ) Income from continuing operations 15,091 6,396 8,936 30,423 Discontinued operations Gain on disposition of property — 560 — 560 Net income 15,091 6,956 8,936 30,983 Noncontrolling interests Continuing operations (1,453 ) 3,990 — 2,537 Discontinued operations (4 ) (457 ) — (461 ) Net (income) loss attributable to noncontrolling interests (1,457 ) 3,533 — 2,076 Net income attributable to Common Shareholders $ 13,634 $ 10,489 $ 8,936 $ 33,059 Real Estate at Cost $ 1,184,956 $ 797,673 $ — $ 1,982,629 Total Assets $ 1,153,586 $ 1,122,303 $ 96,307 $ 2,372,196 Acquisition of Real Estate $ 107,600 $ — $ — $ 107,600 Investment in Redevelopment and Improvements $ 2,182 $ 66,129 $ — $ 68,311 |
LONG-TERM INCENTIVE COMPENSATIO
LONG-TERM INCENTIVE COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Compensation | LONG-TERM INCENTIVE COMPENSATION During the six months ended June 30, 2015, the Company issued 247,863 LTIP Units and 8,640 Restricted Share Units to employees of the Company pursuant to its Amended and Restated 2006 Share Incentive Plan (the "Share Incentive Plan"). These awards were measured at their fair value on the grant date, which 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 value of the above Restricted Share Units and LTIP Units will be recognized as compensation expense over the vesting period. Compensation expense of $0.4 million and $0.9 million has been recognized in the accompanying consolidated statements of income related to these awards for the three and six months ended June 30, 2015 , respectively. Total long-term incentive compensation expense, including the expense related to the above-mentioned plans, was $1.7 million and $1.6 million for the three months ended June 30, 2015 and 2014, respectively, and $3.5 million and $3.0 million for the six months ended June 30, 2015 and 2014, respectively. In addition, members of the Board of Trustees (the "Board") have been issued units under the Share Incentive Plan. During the quarter ended June 30, 2015 the Company issued 14,179 Restricted Shares and 6,986 LTIP Units to Trustees of the Company in connection with Trustee fees. Vesting with respect to 6,469 of the Restricted Shares and 4,416 of the LTIP Units will be on the first anniversary of the date of issuance and 7,710 of the Restricted Shares and 2,570 of the LTIP Unites vest over three years with 33% vesting on each of the next three anniversaries of the issuance date. The Restricted Shares do not carry voting rights or other rights of Common Shares until vesting and may not be transferred, assigned or pledged until the recipients have a vested non-forfeitable right to such shares. Dividends are not paid currently on unvested Restricted Shares, but are paid cumulatively from the issuance date through the applicable vesting date of such Restricted Shares. Trustee fee expense related to this issuance was $0.03 million for the three months ended June 30, 2015 . 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 20% of the units related to the Fund IV Promote. During the quarter ended June 30, 2015 , the Company amended the Program to require Board approval for all amounts paid in connection with units awarded to senior executives. Compensation relating to these awards will be recognized in each reporting period in which Board approval is granted. This amendment to the Program was not applicable to awards issued to non-senior executives of the Company. In accordance with ASC Topic 718, "Compensation - Stock Compensation," compensation relating to these non-senior executive awards will be recorded based on the change in the estimated fair value at each reporting period. During the quarter ended June 30, 2015, compensation expense of $0.7 million was recognized in connection with the Fund III awards and the units awarded in connection with Fund IV were determined to have no value. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS During July 2015, the Company received a repayment of $9.8 million , representing the full principal repayment on an $8.0 million note receivable and $1.8 million of accrued interest. During July 2015, the Company received a repayment of $12.0 million related to three non-performing loans. These loans had an aggregate carrying value of $8.0 million as of June 30, 2015. |
ORGANIZATION AND BASIS OF PRE23
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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 and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015 . 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. Such adjustments consisted of normal recurring items. These consolidated financial statements should be read in conjunction with the Company's 2014 Annual Report on Form 10-K, as filed with the SEC on February 20, 2015. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2014 financial statements to conform to the 2015 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. During the quarter ended June 30, 2015, as a result of the loss of a key anchor tenant, one of the properties in the Company's Brandywine Portfolio, in which an unaffiliated third party has a 77.78% noncontrolling interest, did not generate sufficient cash flow to meet the full debt service requirements leading to a default on the mortgage loan. Management performed an analysis and determined that the carrying amount of this property was not recoverable. Accordingly, the Company recorded an impairment charge of $5.0 million , which is included in the statement of income for the six months ended June 30, 2015. The Operating Partnership's share of this charge, net of the noncontrolling interest, was $1.1 million . The property is collateral for $26.3 million of non-recourse mortgage debt which matures July 1, 2016. Management does not believe that the carrying values of any of its other properties are impaired as of June 30, 2015 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements During April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software." ASU 2015-05 provides guidance to help an entity evaluate the accounting for fees paid in a cloud computing arrangement. ASU 2015-05 is effective for periods beginning after December 15, 2015, with early adoption permitted and may be applied either prospectively or retrospectively. ASU 2015-05 is not expected to have a material impact on the Company's consolidated financial statements. During April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 modifies the treatment of debt issuance costs from a deferred charge to a deduction of the carrying value of the financial liability. ASU 2015-03 is effective for periods beginning after December 15, 2015, with early adoption permitted and retrospective application. ASU 2015-03 is not expected to have a material impact on the Company's consolidated financial statements. During February 2015, the FASB issued ASU No. 2015-02, "Consolidation - Amendments to the Consolidation Analysis." ASU 2015-02 (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIE’s"), (ii) eliminates the presumption that a general partner should consolidate a limited partnership and (iii) affects the consolidation analysis of reporting entities that are involved with VIE’s, particularly those with fee arrangements and related party relationships. ASU 2015-02 is effective for periods beginning after December 15, 2015, with early adoption permitted. The Company is in the process of evaluating the impact the adoption of ASU 2015-02 will have on the consolidated financial statements. During January 2015, the FASB issued ASU No. 2015-01, "Income Statement - Extraordinary and Unusual Items." ASU 2015-01 eliminates the concept of extraordinary items. However, the presentation and disclosure requirements for items that are either unusual in nature or infrequent in occurrence remain and will be expanded to include items that are both unusual in nature and infrequent in occurrence. ASU 2015-01 is effective for periods beginning after December 15, 2015. ASU 2015-01 is not expected to have a material impact on the Company's consolidated financial statements. |
ORGANIZATION AND BASIS OF PRE24
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Fund Size Capital Called as of June 30, 2015 (3) Unfunded Commitment Equity Interest Held By Operating Partnership Preferred Return Total Distributions as of June 30, 2015 (3) Fund I and Mervyns I (1) 9/2001 22.22% $90.0 $86.6 $— 37.78% 9% $194.4 Fund II and Mervyns II (2) 6/2004 20.00% 300.0 300.0 47.1 20.00% 8% 131.6 Fund III 5/2007 19.90% 502.5 381.6 68.4 19.90% 6% 429.1 Fund IV 5/2012 23.12% 540.6 179.4 361.2 23.12% 6% 101.9 1. ORGANIZATION AND BASIS OF PRESENTATION (continued) 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) | 6 Months Ended |
Jun. 30, 2015 | |
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: 2. EARNINGS PER COMMON SHARE (continued) Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands, except per share amounts) 2015 2014 2015 2014 Numerator Income from continuing operations $ 26,495 $ 11,365 $ 43,042 $ 32,960 Less: net income attributable to participating securities (238 ) (197 ) (478 ) (585 ) Income from continuing operations, net of income attributable to participating securities 26,257 11,168 42,564 32,375 Denominator Weighted average shares for basic earnings per share 68,825 58,013 68,561 56,989 Effect of dilutive securities: Employee Restricted Share Units and share options 19 19 30 28 Convertible Preferred OP Units 25 — 25 25 Denominator for diluted earnings per share 68,869 58,032 68,616 57,042 Basic and diluted earnings per Common Share from continuing operations attributable to Common Shareholders $ 0.38 $ 0.19 $ 0.62 $ 0.57 |
ACQUISITION AND DISPOSITION O26
ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
ACQUISITION AND DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS ABSTRACT | |
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, 2014, and the finalized allocations as adjusted as of June 30, 2015: (dollars in thousands) Purchase Price Allocations as Originally Reported Adjustments Finalized Purchase Price Allocations Land $ 43,820 $ 16,751 $ 60,571 Buildings and improvements 126,955 (21,578 ) 105,377 Acquisition-related intangible assets (in Acquired lease intangibles, net) — 9,836 9,836 Acquisition-related intangible liabilities (in Acquired lease intangibles, net) — (5,009 ) (5,009 ) Total consideration $ 170,775 $ — $ 170,775 The following table summarizes the Company's preliminary allocations of the purchase prices of assets acquired and liabilities assumed during 2015 which have yet to be finalized: (dollars in thousands) Preliminary Purchase Price Allocations Land $ 65,759 Buildings and improvements 204,532 Above-below market debt assumed (included in Mortgage and other notes payable) (9,765 ) Total consideration $ 260,526 During 2015, the Company acquired the following properties through its Core Portfolio, Fund II, and Fund IV: (dollars in thousands) Property GLA Percent Owned Type Month of Acquisition Purchase Price Location Assumption of Debt Core Portfolio: City Center 205,000 100 % Urban Retail Center March $ 155,000 San Fransisco, CA $ — 163 Highland Avenue 40,500 100 % Suburban Shopping Center March 24,000 Needham, MA 9,765 Route 202 Shopping Center (1) 20,000 100 % Suburban Shopping Center April 5,643 Wilmington, DE — Total Core Portfolio 265,500 $ 184,643 $ 9,765 Fund II: City Point - Tower I (2) — 95 % Urban Development May $ 100,800 Brooklyn, NY $ 81,000 Total Fund II — $ 100,800 $ 81,000 Fund IV: 1035 Third Avenue (3) 53,294 100 % Street Retail January $ 51,036 New York, NY $ — 801 Madison Avenue 6,375 100 % Street Retail April 33,000 New York, NY — Total Fund IV 59,669 $ 84,036 $ — Total 325,169 $ 369,479 $ 90,765 Notes: (1) Purchase price represents the 77.78% interest acquired from an unaffiliated third party. (2) Fund II previously held a 52% interest in this unconsolidated affiliate. In connection with the disposition of Phase III of this project discussed below, Fund II acquired an additional 43% interest in Tower I of this development project. In total, Fund II now owns 95% of this investment, which is a residential project anticipated to include 250 residential units. (3) GLA includes a portion of office space and a below-grade operator controlled parking garage. |
Schedule Of Property Dispositions | During 2015, the Company disposed of the following properties: (dollars in thousands) Dispositions GLA Sale Price Gain on Sale Month Sold Owner Lincoln Park Centre 61,761 $ 64,000 $ 27,143 January Fund III White City Shopping Center (1) 249,549 96,750 17,105 April Fund III City Point - Air Rights (2) — 115,600 49,884 May Fund II Liberty Avenue 26,117 24,000 11,957 May Fund II Total 337,427 $ 300,350 $ 106,089 |
Disclosure of Long Lived Assets Held-for-sale |
INVESTMENTS IN AND ADVANCES T27
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 : 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) (dollars in thousands) Investment Group Share Operating Partnership Share Investment Year Acquired Invested Capital and Advances Distributions Invested Capital and Advances Distributions Mervyns 2004 $ 26,058 $ 48,547 $ 4,901 $ 11,801 Mervyns Add-On investments 2005/2008 7,547 9,272 1,252 2,017 Albertsons 2006 20,717 81,594 4,239 16,318 Albertsons Add-On investments 2006/2007 2,416 4,864 388 972 Shopko 2006 1,110 3,358 222 672 Marsh and Add-On investments 2006/2008 2,667 2,941 533 588 Rex Stores 2007 2,701 4,727 535 946 $ 63,216 $ 155,303 $ 12,070 $ 33,314 |
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) June 30, December 31, Combined and Condensed Balance Sheets Assets Rental property, net $ 322,352 $ 387,739 Real estate under development — 60,476 Investment in unconsolidated affiliates 7,548 11,154 Other assets 59,917 62,862 Total assets $ 389,817 $ 522,231 Liabilities and partners’ equity Mortgage notes payable $ 266,109 $ 315,897 Other liabilities 17,714 66,116 Partners’ equity 105,994 140,218 Total liabilities and partners’ equity $ 389,817 $ 522,231 Company’s investment in and advances to unconsolidated affiliates $ 166,632 $ 184,352 Company's share of distributions in excess of income from, and investments in, unconsolidated affiliates $ (13,161 ) $ (12,564 ) |
Summary of Statement of Income of the Company’s investments in unconsolidated affiliates | Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2015 2014 2015 2014 Combined and Condensed Statements of Income Total revenues $ 10,342 $ 12,247 $ 22,015 $ 24,352 Operating and other expenses (3,102 ) (5,503 ) (6,833 ) (9,318 ) Interest and other finance expense (2,259 ) (2,975 ) (4,897 ) (5,500 ) Equity in earnings (losses) of unconsolidated affiliates — — 66,655 (328 ) Depreciation and amortization (2,787 ) (3,475 ) (5,037 ) (6,181 ) Loss on debt extinguishment — — — (187 ) Gain on disposition of property 25,208 239 25,208 239 Net income $ 27,402 $ 533 $ 97,111 $ 3,077 Company’s share of net income $ 20,609 $ 1,528 $ 27,300 $ 4,655 Amortization of excess investment (98 ) (98 ) (196 ) (196 ) Company’s equity in earnings of unconsolidated affiliates $ 20,511 $ 1,430 $ 27,104 $ 4,459 |
STRUCTURED FINANCINGS, NET (Tab
STRUCTURED FINANCINGS, NET (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | As of June 30, 2015 , the Company’s structured financing portfolio, net consisted of notes receivable and preferred equity investments, aggregating $168.9 million . These investments were collateralized either by underlying properties, the borrowers' ownership interests in the entities that own properties and/or by the borrowers' personal guarantee subject, as applicable, to senior liens, as follows: (dollars in thousands) Description Notes Effective interest rate (1) First Priority liens Net Carrying Amounts of Structured Financing Investments as of June 30, 2015 Net Carrying Amounts of Structured Financing Investments as of December 31, 2014 Maturity date Extension Options First Mortgage Loan 7.7% $ 12,000 $ 12,000 7/15/2015 Mezzanine Loan 12.7% 18,900 8,000 8,000 10/3/2015 First Mortgage Loan 8.8% 7,500 7,500 10/31/2015 1 x 12 Months Zero Coupon Loan (2) (3) 24.0% 166,200 — 4,986 1/3/2016 First Mortgage Loan 5.5% 4,000 4,000 4/1/2016 1 x 6 Months First Mortgage Loan (4) 6.0% 15,000 — 5/1/2016 1 x 12 Months Preferred Equity 13.5% 4,000 4,000 5/9/2016 Other (5) 17.0% 6,500 — 6/1/2016 Other 18.0% 3,607 3,307 7/1/2017 Preferred Equity 8.1% 20,855 13,000 13,000 9/1/2017 First Mortgage Loan (6) LIBOR + 7.1% 26,000 — 6/25/2018 1 x 12 Months Zero Coupon Loan (2) (7) 2.5% 29,793 — 5/31/2020 Mezzanine Loan 15.0% 30,879 30,879 11/9/2020 Other LIBOR + 2.5% — 4,000 12/30/2020 Mezzanine Loan (8) 10.0% 87,477 7,983 7,983 Demand Individually less than 3% (9) (10) (11) 11.6% 669 2,631 12/31/2015 Total $ 168,931 $ 102,286 Notes: (1) Includes origination and exit fees (2) The principal balance for this accrual-only loan is increased by the interest accrued. (3) During April 2015, the Company converted a $5.6 million loan into an equity interest in a shopping center (Note 4). (4) During May 2015, the Company made a $15.0 million loan, which is collateralized by a property, bears interest at 6.0% and matures May 1, 2016 . (5) During June 2015, the Company made a $6.5 million loan, which bears interest at 17.0% and matures June 1, 2016 . (6) During June 2015, the Company made a $26.0 million loan, which is collateralized by a property, bears interest at LIBOR + 7.1% and matures June 25, 2018 . 6. STRUCTURED FINANCINGS, NET (continued) (7) During June 2015, the Company made a $29.8 million loan in connection with the disposition of City Point's Phase III (Note 4), which is collateralized by the purchaser's interest of the property. The loan bears interest at 2.5% and matures May 31, 2020 . (8) Comprised of three cross-collateralized loans from one borrower, which are non-performing. Subsequent to June 30, 2015, these notes were repaid in full (Note 13). (9) Consists of one loan as of June 30, 2015 . |
MORTGAGE AND OTHER NOTES PAYA29
MORTGAGE AND OTHER NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule of Mortgage Notes Payable | The Company completed the following transactions related to mortgage and other notes payable and credit facilities during the six months ended June 30, 2015 : Secured Debt: (dollars in thousands) Borrowings Repayments Property Date Description Amount Interest Rate Maturity Date Amount Interest Rate 1035 Third Avenue January New Borrowing $ 42,000 LIBOR+2.35% 1/28/2021 $ — Lincoln Park Centre January Repayment 28,000 LIBOR+1.45% 163 Highland Avenue March Assumption 9,765 4.66% 3/1/2024 Broughton Street Portfolio (1) May New Borrowing 20,000 LIBOR+3.00% 5/5/2016 City Point June Assumption 19,000 1.25% 12/1/2016 City Point June Assumption 62,000 SIFMA+1.60% 12/1/2016 City Point June Repayment 20,650 LIBOR+4.00% 17 E. 71st Street June New Borrowing 19,000 LIBOR+1.90% 6/9/2020 Crescent Plaza June Repayment 16,326 4.98% Total $ 171,765 $ 64,976 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 : (dollars in thousands) Level 1 Level 2 Level 3 Assets Derivative financial instruments (Note 7) $ — $ 289 $ — Liabilities Derivative financial instruments (Note 7) $ — $ 3,997 $ — |
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) June 30, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Notes receivable and preferred equity investments, net $ 168,931 $ 168,931 $ 102,286 $ 102,286 Mortgage and other notes payable $ 1,326,667 $ 1,345,446 $ 1,130,481 $ 1,141,371 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Certain Segment Information from Segments to Consolidated | The following tables set forth certain segment information for the Company, as of and for the three and six months ended June 30, 2015 and 2014, and does not include unconsolidated affiliates: Three Months Ended June 30, 2015 (dollars in thousands) Core Portfolio Funds Structured Financing Total Revenues $ 37,593 $ 11,583 $ 3,985 $ 53,161 Property operating expenses, other operating and real estate taxes (8,235 ) (4,979 ) — (13,214 ) General and administrative expenses (7,397 ) (608 ) — (8,005 ) Depreciation and amortization (10,568 ) (3,335 ) — (13,903 ) Impairment of asset (5,000 ) — — (5,000 ) Operating income 6,393 2,661 3,985 13,039 Equity in earnings of unconsolidated affiliates 699 2,707 — 3,406 Gain on disposition of property of unconsolidated affiliates — 17,105 — 17,105 Loss on debt extinguishment — (25 ) — (25 ) Gain on disposition of properties — 61,841 — 61,841 Interest and other finance expense (7,329 ) (2,635 ) — (9,964 ) Income tax benefit (provision) 75 (19 ) — 56 Net (loss) income $ (162 ) $ 81,635 $ 3,985 $ 85,458 Noncontrolling interests Net loss (income) attributable to noncontrolling interests $ 2,205 $ (61,168 ) $ — $ (58,963 ) Net income attributable to Common Shareholders $ 2,043 $ 20,467 $ 3,985 $ 26,495 Real Estate at Cost $ 1,553,174 $ 1,025,406 $ — $ 2,578,580 Total Assets $ 1,650,555 $ 1,154,213 $ 168,931 $ 2,973,699 Acquisition of Real Estate $ — $ 52,800 $ — $ 52,800 Investment in Redevelopment and Improvements $ 3,271 $ 61,480 $ — $ 64,751 11. SEGMENT REPORTING (continued) Three Months Ended June 30, 2014 (dollars in thousands) Core Portfolio Funds Structured Financing Total Revenues $ 30,535 $ 13,934 $ 5,042 $ 49,511 Property operating expenses, other operating and real estate taxes (7,587 ) (4,627 ) — (12,214 ) General and administrative expenses (6,238 ) (641 ) — (6,879 ) Depreciation and amortization (8,300 ) (3,284 ) — (11,584 ) Operating income 8,410 5,382 5,042 18,834 Equity in earnings of unconsolidated affiliates 227 1,203 — 1,430 Loss on debt extinguishment (3 ) (63 ) — (66 ) Gain on disposition of property — 561 — 561 Interest and other finance expense (6,627 ) (2,907 ) — (9,534 ) Income tax benefit (provision) 91 (8 ) — 83 Income from continuing operations 2,098 4,168 5,042 11,308 Discontinued operations Gain on disposition of property — 560 — 560 Net income $ 2,098 $ 4,728 $ 5,042 $ 11,868 Noncontrolling interests Continuing operations $ (1,036 ) $ 1,093 $ — $ 57 Discontinued operations (4 ) (457 ) — (461 ) Net (income) loss attributable to noncontrolling interests $ (1,040 ) $ 636 $ — $ (404 ) Net income attributable to Common Shareholders $ 1,058 $ 5,364 $ 5,042 $ 11,464 Real Estate at Cost $ 1,184,956 $ 797,673 $ — $ 1,982,629 Total Assets $ 1,153,586 $ 1,122,303 $ 96,307 $ 2,372,196 Acquisition of Real Estate $ 17,100 $ — $ — $ 17,100 Investment in Redevelopment and Improvements $ 754 $ 30,052 $ — $ 30,806 11. SEGMENT REPORTING (continued) Six Months Ended June 30, 2015 (dollars in thousands) Core Portfolio Funds Structured Financing Total Revenues $ 73,186 $ 25,063 $ 7,393 $ 105,642 Property operating expenses, other operating and real estate taxes (17,926 ) (11,431 ) — (29,357 ) General and administrative expenses (14,208 ) (1,329 ) — (15,537 ) Depreciation and amortization (20,475 ) (7,086 ) — (27,561 ) Impairment of asset (5,000 ) — — (5,000 ) Operating income 15,577 5,217 7,393 28,187 Equity in earnings of unconsolidated affiliates 1,133 8,866 — 9,999 Gain on disposition of property of unconsolidated affiliates — 17,105 — 17,105 Loss on debt extinguishment — (134 ) — (134 ) Gain on disposition of property — 88,984 — 88,984 Interest and other finance expense (13,797 ) (4,988 ) — (18,785 ) Income tax provision (405 ) (956 ) — (1,361 ) Net income $ 2,508 $ 114,094 $ 7,393 $ 123,995 Noncontrolling interests Net loss (income) attributable to noncontrolling interests $ 2,026 $ (82,979 ) $ — $ (80,953 ) Net income attributable to Common Shareholders $ 4,534 $ 31,115 $ 7,393 $ 43,042 Real Estate at Cost $ 1,553,174 $ 1,025,406 $ — $ 2,578,580 Total Assets $ 1,650,555 $ 1,154,213 $ 168,931 $ 2,973,699 Acquisition of Real Estate $ 169,235 $ 103,836 $ — $ 273,071 Investment in Redevelopment and Improvements $ 9,624 $ 95,621 $ — $ 105,245 11. SEGMENT REPORTING (continued) Six Months Ended June 30, 2014 (dollars in thousands) Core Portfolio Funds Structured Financing Total Revenues $ 60,684 $ 26,576 $ 8,936 $ 96,196 Property operating expenses, other operating and real estate taxes (15,493 ) (10,202 ) — (25,695 ) General and administrative expenses (12,651 ) (1,124 ) — (13,775 ) Depreciation and amortization (16,633 ) (6,538 ) — (23,171 ) Operating income 15,907 8,712 8,936 33,555 Equity in earnings of unconsolidated affiliates 323 4,136 — 4,459 Loss on debt extinguishment (3 ) (266 ) — (269 ) Gain on disposition of property 12,387 561 — 12,948 Interest and other finance expense (13,510 ) (6,675 ) — (20,185 ) Income tax provision (13 ) (72 ) — (85 ) Income from continuing operations 15,091 6,396 8,936 30,423 Discontinued operations Gain on disposition of property — 560 — 560 Net income 15,091 6,956 8,936 30,983 Noncontrolling interests Continuing operations (1,453 ) 3,990 — 2,537 Discontinued operations (4 ) (457 ) — (461 ) Net (income) loss attributable to noncontrolling interests (1,457 ) 3,533 — 2,076 Net income attributable to Common Shareholders $ 13,634 $ 10,489 $ 8,936 $ 33,059 Real Estate at Cost $ 1,184,956 $ 797,673 $ — $ 1,982,629 Total Assets $ 1,153,586 $ 1,122,303 $ 96,307 $ 2,372,196 Acquisition of Real Estate $ 107,600 $ — $ — $ 107,600 Investment in Redevelopment and Improvements $ 2,182 $ 66,129 $ — $ 68,311 |
ORGANIZATION AND BASIS OF PRE32
ORGANIZATION AND BASIS OF PRESENTATION (Details) - Entity [Domain] $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)opportunity_fundproperty | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of retail properties (in properties) | 145 | |
Number of opportunity funds | opportunity_fund | 4 | |
Brandywine Portfolio | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Noncontrolling interest, ownership percentage | 77.78% | |
Core Portfolio | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of retail properties (in properties) | 89 | |
Opportunity Funds | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of retail properties (in properties) | 56 | |
Operating Partnership, as General Partner or Managing Member | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Ownership interest by general partner or managing partner | 95.00% | |
Remaining funds rate of distribution to partnership | 20.00% | |
Institutional Investors | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Remaining funds rate of distribution to all partners | 80.00% | |
Mortgages | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Debt instrument face amount | $ | $ 171,765 | |
Non-Recourse Mortgage Debt Due 2016 | Mortgages | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Debt instrument face amount | $ | $ 26,300 |
ORGANIZATION AND BASIS OF PRE33
ORGANIZATION AND BASIS OF PRESENTATION - Summary of General Terms and Operating Partnership's Equity Interests (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2013 | ||
Fund II | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Payments of dividends | $ 47.1 | ||
Operating Partnership | Fund I and Mervyns I | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Operating Partnership Share of Capital | [1] | 22.22% | |
Fund Size | [1] | $ 90 | |
Capital Called | [1],[2] | 86.6 | |
Unfunded Commitment | [1] | $ 0 | |
Equity Interest Held By Operating Partnership | [1] | 37.78% | |
Preferred Return | [1] | 9.00% | |
Capital Returned | [1],[2] | $ 194.4 | |
Operating Partnership | Fund II and Mervyns II | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Operating Partnership Share of Capital | [3] | 20.00% | |
Fund Size | [3] | $ 300 | |
Capital Called | [2],[3] | 300 | |
Unfunded Commitment | [3] | $ 47.1 | |
Equity Interest Held By Operating Partnership | [3] | 20.00% | |
Preferred Return | [3] | 8.00% | |
Capital Returned | [2],[3] | $ 131.6 | |
Operating Partnership | Fund III | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Operating Partnership Share of Capital | 19.90% | ||
Fund Size | [3] | $ 502.5 | |
Capital Called | [2] | 381.6 | |
Unfunded Commitment | $ 68.4 | ||
Equity Interest Held By Operating Partnership | 19.90% | ||
Preferred Return | 6.00% | ||
Capital Returned | [2] | $ 429.1 | |
Operating Partnership | Fund IV | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Operating Partnership Share of Capital | 23.12% | ||
Fund Size | [3] | $ 540.6 | |
Capital Called | [2] | 179.4 | |
Unfunded Commitment | $ 361.2 | ||
Equity Interest Held By Operating Partnership | 23.12% | ||
Preferred Return | 6.00% | ||
Capital Returned | [2] | $ 101.9 | |
[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] | Represents the total for the Funds, including the Operating Partnership and noncontrolling interests' shares. | ||
[3] | During 2013, a distribution of $47.1 million was made to the Fund II investors, including the Operating Partnership. This amount is subject to recontribution to Fund II until December 2016, if needed to fund the on-going development and construction of existing projects. |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Operating Partnership, as General Partner or Managing Member | |||
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | |||
Limited partners' common OP units (in shares) | 2,961,517 | 2,988,277 | |
Operating Partnership, as General Partner or Managing Member | Series A Preferred Stock | |||
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | |||
Limited partners' common OP units (in shares) | 188 | 188 | |
Common stock | |||
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 25,067 | 25,067 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator | ||||
Income from continuing operations | $ 26,495 | $ 11,365 | $ 43,042 | $ 32,960 |
Less: net income attributable to participating securities | (238) | (197) | (478) | (585) |
Income from continuing operations, net of income attributable to participating securities | $ 26,257 | $ 11,168 | $ 42,564 | $ 32,375 |
Denominator | ||||
Weighted average shares for basic earnings per share (in shares) | 68,825 | 58,013 | 68,561 | 56,989 |
Effect of dilutive securities: | ||||
Employee Restricted Share Units and share options (in shares) | 19 | 19 | 30 | 28 |
Convertible Preferred OP Units (in shares) | 25 | 0 | 25 | 25 |
Denominator for diluted earnings per share (in shares) | 68,869 | 58,032 | 68,616 | 57,042 |
Earnings Per Share, Basic, Undistributed | $ 0.38 | $ 0.19 | $ 0.62 | $ 0.57 |
SHAREHOLDERS' EQUITY AND NONC36
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | |||
Proceeds from issuance of common stock | $ 21,080 | $ 88,499 | |
Operating Partnership, as General Partner or Managing Member | |||
Noncontrolling Interest [Line Items] | |||
Limited partners' common OP units (in shares) | 2,961,517 | 2,988,277 | |
Series A Preferred Stock | Operating Partnership, as General Partner or Managing Member | |||
Noncontrolling Interest [Line Items] | |||
Limited partners' common OP units (in shares) | 188 | 188 | |
At The Market Equity Program | Common stock | |||
Noncontrolling Interest [Line Items] | |||
Common stock issued during the period (in shares) | 600,000 | ||
Gross proceeds from issuance of common stock | $ 21,600 | ||
Proceeds from issuance of common stock | $ 21,100 | ||
LTIP Units | |||
Noncontrolling Interest [Line Items] | |||
Share-based compensation, outstanding (in shares) | 929,169 | 675,367 |
ACQUISITION AND DISPOSITION O37
ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE - Acquisition (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($)ft²residential_unit | Jun. 30, 2015USD ($)ft²residential_unit | May. 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014USD ($) | |
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 337,427 | 337,427 | ||||
Core Portfolio | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 265,500 | 265,500 | ||||
Purchase Price | $ 184,643 | |||||
Assumption of Debt | 9,765 | |||||
Acquisition costs | $ 700 | |||||
Fund II | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 0 | 0 | ||||
Purchase Price | $ 100,800 | |||||
Assumption of Debt | $ 81,000 | |||||
Fund IV | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 59,669 | 59,669 | ||||
Purchase Price | $ 84,036 | |||||
Assumption of Debt | 0 | |||||
Acquisition costs | $ 2,000 | |||||
City Center | San Fransisco, CA | Core Portfolio | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 205,000 | 205,000 | ||||
Percentage of interests acquired | 100.00% | 100.00% | ||||
Purchase Price | $ 155,000 | |||||
Assumption of Debt | $ 0 | |||||
163 Highland Avenue | Needham, MA | Core Portfolio | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 40,500 | 40,500 | ||||
Percentage of interests acquired | 100.00% | 100.00% | ||||
Purchase Price | $ 24,000 | |||||
Assumption of Debt | $ 9,765 | |||||
Route 202 Shopping Center | Wilmington, DE | Core Portfolio | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 20,000 | 20,000 | ||||
Percentage of interests acquired | 100.00% | 100.00% | 77.78% | |||
Purchase Price | $ 5,643 | |||||
Assumption of Debt | $ 0 | |||||
City Point - Tower I | Brooklyn, NY | Fund II | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 0 | 0 | ||||
Percentage of interests acquired | 95.00% | 95.00% | 43.00% | |||
Purchase Price | $ 100,800 | |||||
Assumption of Debt | $ 81,000 | |||||
Ownership interest in investment, percentage | 52.00% | |||||
Total investment, percentage | 95.00% | 95.00% | ||||
Number of residential units | residential_unit | 250 | 250 | ||||
1035 Third Avenue | New York, NY | Fund IV | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 53,294 | 53,294 | ||||
Percentage of interests acquired | 100.00% | 100.00% | ||||
Purchase Price | $ 51,036 | |||||
Assumption of Debt | $ 0 | |||||
801 Madison Avenue | New York, NY | Fund IV | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 6,375 | 6,375 | ||||
Percentage of interests acquired | 100.00% | 100.00% | ||||
Purchase Price | $ 33,000 | |||||
Assumption of Debt | $ 0 | |||||
Acquisitions in 2015 | ||||||
Business Acquisition [Line Items] | ||||||
Gross leasable area (in square feet) | ft² | 325,169 | 325,169 | ||||
Purchase Price | $ 369,479 | |||||
Assumption of Debt | 90,765 | |||||
Purchase Price Allocations | ||||||
Land | $ 65,759 | 65,759 | ||||
Buildings and improvements | 204,532 | 204,532 | ||||
Above-below market debt assumed (included in Mortgage and other notes payable) | 9,765 | 9,765 | ||||
Total consideration | 260,526 | 260,526 | ||||
Acquisitions In 2014 | ||||||
Purchase Price Allocations | ||||||
Land | 60,571 | 60,571 | $ 43,820 | |||
Buildings and improvements | 105,377 | 105,377 | 126,955 | |||
Acquisition-related intangible assets (in Acquired lease intangibles, net) | 9,836 | 9,836 | 0 | |||
Acquisition-related intangible liabilities (in Acquired lease intangibles, net) | 5,009 | 5,009 | 0 | |||
Total consideration | $ 170,775 | 170,775 | $ 170,775 | |||
Adjustments | ||||||
Land | 16,751 | |||||
Buildings and improvements | (21,578) | |||||
Acquisition-related intangible assets (in Acquired lease intangibles, net) | 9,836 | |||||
Acquisition-related intangible liabilities (in Acquired lease intangibles, net) | (5,009) | |||||
Total consideration | $ 0 | |||||
Corporate Joint Venture | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interests acquired | 10.00% | 10.00% | ||||
Purchase Price | $ 4,200 | |||||
Individually Less Than 3 Percent, Variable Interest Rate | ||||||
Business Acquisition [Line Items] | ||||||
Loans converted | 1,900 | $ 1,900 | ||||
Individually Less Than 3 Percent, Variable Interest Rate | Corporate Joint Venture | ||||||
Business Acquisition [Line Items] | ||||||
Loans converted | $ 1,900 | $ 1,900 |
ACQUISITION AND DISPOSITION O38
ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE - Dispositions (Details) - Jun. 30, 2015 $ in Thousands | USD ($)ft² |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross leasable area (in square feet) | ft² | 337,427 |
Sale Price | $ 300,350 |
Gain on Sale | $ 106,089 |
Lincoln Park Centre | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross leasable area (in square feet) | ft² | 61,761 |
Sale Price | $ 64,000 |
Gain on Sale | $ 27,143 |
White City | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross leasable area (in square feet) | ft² | 249,549 |
Sale Price | $ 96,750 |
Gain on Sale | $ 17,105 |
City Point | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross leasable area (in square feet) | ft² | 0 |
Sale Price | $ 115,600 |
Gain on Sale | $ 49,884 |
Liberty Avenue | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gross leasable area (in square feet) | ft² | 26,117 |
Sale Price | $ 24,000 |
Gain on Sale | $ 11,957 |
ACQUISITION AND DISPOSITION O39
ACQUISITION AND DISPOSITION OF REAL ESTATE AND PROPERTIES HELD FOR SALE - Assets Held For Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ACQUISITION AND DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS ABSTRACT | ||
Assets of properties held for sale | $ 0 | $ 56,073 |
Liabilities of properties held for sale | $ 0 | $ 25,500 |
INVESTMENTS IN AND ADVANCES T40
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES - Core Portfolio (Details) - Jun. 30, 2015 - Core Portfolio - ft² ft² in Thousands | Total |
Crossroads | |
Schedule of Equity Method Investments [Line Items] | |
Equity ownership percentage | 49.00% |
Square footage of real estate property (in square feet) | 311 |
Georgetown Portfolio | |
Schedule of Equity Method Investments [Line Items] | |
Equity ownership percentage | 50.00% |
Square footage of real estate property (in square feet) | 28 |
Chicago Street Retail Portfolio | |
Schedule of Equity Method Investments [Line Items] | |
Equity ownership percentage | 88.43% |
Square footage of real estate property (in square feet) | 87 |
Route 202 Shopping Center | |
Schedule of Equity Method Investments [Line Items] | |
Square footage of real estate property (in square feet) | 20 |
Percentage of interests acquired | 77.78% |
INVESTMENTS IN AND ADVANCES T41
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES - Funds (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)partner | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in and advances to unconsolidated affiliates | $ 166,632 | $ 166,632 | $ 184,352 | |||
Gain on disposition of property of unconsolidated affiliates | 17,105 | $ 0 | $ 17,105 | $ 0 | ||
White City | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net sales proceeds | $ 96,800 | |||||
Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of unaffiliated partners | partner | 2 | |||||
Gain on disposition of property of unconsolidated affiliates | 17,105 | $ 17,105 | ||||
Fund III | White City | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Gain on disposition of property of unconsolidated affiliates | $ 17,300 | |||||
Mervyns I and Mervyns II | Opportunity Funds | KLA/Mervyns LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions, equity method investment | 48,547 | |||||
Equity Method Investments | 26,058 | 26,058 | ||||
Mervyns I | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions, equity method investment | 5,700 | |||||
Mervyns II | Opportunity Funds | KLA A Markets LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions, equity method investment | 81,594 | |||||
Equity Method Investments | $ 20,717 | $ 20,717 | ||||
Corporate Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Gain on the disposition of property | 10.00% | 10.00% | ||||
Corporate Joint Venture | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions | $ 155,303 | |||||
Investments in and advances to unconsolidated affiliates | $ 63,216 | 63,216 | ||||
KLA/Mervyns LLC Add-On Investments | Mervyns I and Mervyns II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 7,547 | 7,547 | ||||
Distributions | 9,272 | |||||
KLAC Rex Venture LLC | Mervyns II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 2,701 | 2,701 | ||||
Distributions | 4,727 | |||||
KLA A Markets LLC Add-On Investments | Mervyns II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 2,416 | 2,416 | ||||
Distributions | 4,864 | |||||
KA-Shopko LLC | Fund II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 1,110 | 1,110 | ||||
Distributions | 3,358 | |||||
Marsh and Add-On Investments | Fund II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 2,667 | 2,667 | ||||
Distributions | 2,941 | |||||
Operating Partnership, as General Partner or Managing Member | Mervyns I and Mervyns II | Opportunity Funds | KLA/Mervyns LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions, equity method investment | 11,801 | |||||
Equity Method Investments | 4,901 | 4,901 | ||||
Operating Partnership, as General Partner or Managing Member | Mervyns II | Opportunity Funds | KLA A Markets LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions, equity method investment | 16,318 | |||||
Equity Method Investments | 4,239 | 4,239 | ||||
Operating Partnership, as General Partner or Managing Member | Corporate Joint Venture | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions | 33,314 | |||||
Investments in and advances to unconsolidated affiliates | 12,070 | 12,070 | ||||
Operating Partnership, as General Partner or Managing Member | KLA/Mervyns LLC Add-On Investments | Mervyns I and Mervyns II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 1,252 | 1,252 | ||||
Distributions | 2,017 | |||||
Operating Partnership, as General Partner or Managing Member | KLAC Rex Venture LLC | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions, equity method investment | 1,200 | |||||
Operating Partnership, as General Partner or Managing Member | KLAC Rex Venture LLC | Mervyns II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 535 | 535 | ||||
Distributions | 946 | |||||
Operating Partnership, as General Partner or Managing Member | KLA A Markets LLC Add-On Investments | Mervyns II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 388 | 388 | ||||
Distributions | 972 | |||||
Operating Partnership, as General Partner or Managing Member | KA-Shopko LLC | Fund II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | 222 | 222 | ||||
Distributions | 672 | |||||
Operating Partnership, as General Partner or Managing Member | Marsh and Add-On Investments | Fund II | Opportunity Funds | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Invested Capital and Advances, cost method investments | $ 533 | 533 | ||||
Distributions | $ 588 |
INVESTMENTS IN AND ADVANCES T42
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES - Summary of Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Real estate under development | $ 533,295 | $ 533,295 | $ 447,390 | ||
Investments in and advances to unconsolidated affiliates | 166,632 | 166,632 | 184,352 | ||
Total assets | 2,973,699 | 2,973,699 | 2,732,600 | ||
Other liabilities | 27,616 | 27,616 | 25,148 | ||
Total liabilities and equity | 2,973,699 | 2,973,699 | 2,732,600 | ||
Distributions in excess of income from, and investments in, unconsolidated affiliates | (13,161) | (13,161) | (12,564) | ||
Total revenues | 53,161 | $ 49,511 | 105,642 | $ 96,196 | |
Operating Expenses | (40,122) | (30,677) | (77,455) | (62,641) | |
Equity in earnings of unconsolidated affiliates | 3,406 | 1,430 | 9,999 | 4,459 | |
Depreciation and amortization | (13,903) | (11,584) | (27,561) | (23,171) | |
Loss on debt extinguishment | (25) | (66) | (134) | (269) | |
Income from continuing operations | 85,458 | 11,308 | 123,995 | 30,423 | |
Unconsolidated Affiliates | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Rental property, net | 322,352 | 322,352 | 387,739 | ||
Real estate under development | 0 | 0 | 60,476 | ||
Investments in and advances to unconsolidated affiliates | 7,548 | 7,548 | 11,154 | ||
Other assets | 59,917 | 59,917 | 62,862 | ||
Total assets | 389,817 | 389,817 | 522,231 | ||
Loans Payable to Bank | 266,109 | 266,109 | 315,897 | ||
Other liabilities | 17,714 | 17,714 | 66,116 | ||
Partners’ equity | 105,994 | 105,994 | 140,218 | ||
Total liabilities and equity | 389,817 | 389,817 | $ 522,231 | ||
Total revenues | 10,342 | 12,247 | 22,015 | 24,352 | |
Operating Expenses | (3,102) | (5,503) | (6,833) | (9,318) | |
Interest Expense | (2,259) | (2,975) | (4,897) | (5,500) | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 66,655 | (328) | |
Depreciation and amortization | (2,787) | (3,475) | (5,037) | (6,181) | |
Loss on debt extinguishment | 0 | 0 | 0 | (187) | |
Gain (Loss) On Disposition Of Property Of Equity Method Investment | 25,208 | 239 | 25,208 | 239 | |
Income from continuing operations | 27,402 | 533 | 97,111 | 3,077 | |
Operating Partnership, as General Partner or Managing Member | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in earnings of unconsolidated affiliates | 20,511 | 1,430 | 27,104 | 4,459 | |
Company’s share of net income | 20,609 | 1,528 | 27,300 | 4,655 | |
Amortization of Excess Investment | $ (98) | $ (98) | $ (196) | $ (196) |
STRUCTURED FINANCINGS, NET - Sc
STRUCTURED FINANCINGS, NET - Schedule of Notes Receivable (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Feb. 28, 2015USD ($) | Jun. 30, 2015USD ($)debtinstrumentloanextension_optionCustomer | Dec. 31, 2014USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |||
Net carrying amounts of notes receivable | $ 168,931 | $ 102,286 | |
Number of cross collateralized loans | loan | 3 | ||
Number of borrowers | Customer | 1 | ||
Additional investment | $ 400 | ||
First Mortgage Loan, 7.7% Loan Due 2015 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 7.70% | ||
Net carrying amounts of notes receivable | $ 12,000 | 12,000 | |
Mezzanine Loan, 12.7% Loan, Due 2015 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 12.70% | ||
First priority liens | $ 18,900 | ||
Net carrying amounts of notes receivable | $ 8,000 | 8,000 | |
First Mortgage Loan, 8.8% Loan, Due 2015 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 8.80% | ||
Net carrying amounts of notes receivable | $ 7,500 | 7,500 | |
Extension options | extension_option | 1 | ||
Extension options, length of term | 12 months | ||
Zero Coupon Loan Due 2016 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 24.00% | ||
First priority liens | $ 166,200 | ||
Net carrying amounts of notes receivable | 0 | 4,986 | |
Loans converted | $ 5,600 | ||
First Mortgage Loan, 5.5% Loan Due 2016 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 5.50% | ||
Net carrying amounts of notes receivable | $ 4,000 | 4,000 | |
Extension options | extension_option | 1 | ||
Extension options, length of term | 6 months | ||
First Mortgage Loan, 6% Loan Due On Demand | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 6.00% | ||
Net carrying amounts of notes receivable | $ 15,000 | 0 | |
Extension options | extension_option | 1 | ||
Extension options, length of term | 12 months | ||
Preferred Equity, 13.5% Loan, Due 2016 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 13.50% | ||
Net carrying amounts of notes receivable | $ 4,000 | 4,000 | |
Other Loan 17% Due 2016 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 17.00% | ||
Net carrying amounts of notes receivable | $ 6,500 | 0 | |
Other Loan, 18%, Due 2017 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 18.00% | ||
Net carrying amounts of notes receivable | $ 3,607 | 3,307 | |
Preferred Equity, 8.1% Loan, Due 2017 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 8.10% | ||
First priority liens | $ 20,855 | ||
Net carrying amounts of notes receivable | 13,000 | 13,000 | |
First Mortgage Loan LIBOR Plus 7.1% Due 2018 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Net carrying amounts of notes receivable | $ 26,000 | 0 | |
Extension options | extension_option | 1 | ||
Extension options, length of term | 12 months | ||
First Mortgage Loan LIBOR Plus 7.1% Due 2018 | LIBOR | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loans receivable, basis spread on variable rate | 7.10% | ||
Zero Coupon Loan Due 2020 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 2.50% | ||
Net carrying amounts of notes receivable | $ 29,793 | 0 | |
Mezzanine Loan, Eighteen Percent, Due 2017 [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 15.00% | ||
Net carrying amounts of notes receivable | $ 30,879 | 30,879 | |
Other Loan, 15%, Loan Due 2020 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Net carrying amounts of notes receivable | $ 0 | 4,000 | |
Other Loan, 15%, Loan Due 2020 | LIBOR | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loans receivable, basis spread on variable rate | 2.50% | ||
Mezzanine Loan, 10% Due On Demand | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 10.00% | ||
First priority liens | $ 87,477 | ||
Net carrying amounts of notes receivable | $ 7,983 | 7,983 | |
Individually Less Than 3 Percent, Variable Interest Rate | |||
Mortgage Loans on Real Estate [Line Items] | |||
Effective interest rate | 11.60% | ||
Net carrying amounts of notes receivable | $ 669 | 2,631 | |
Loans converted | $ 1,900 | ||
Number of loans | loan | 1 | ||
Nonperforming Financing Receivable | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of instruments held | debtinstrument | 3 | ||
152 -154 Spring St | |||
Mortgage Loans on Real Estate [Line Items] | |||
Percentage of interests acquired | 10.00% | ||
Carrying Amount | |||
Mortgage Loans on Real Estate [Line Items] | |||
Notes receivable and preferred equity investments, net | $ 168,931 | $ 102,286 |
DERIVATIVE FINANCIAL INSTRUME44
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Millions | Jun. 30, 2015USD ($)derivativeinterest_rate_swap | Dec. 31, 2014USD ($) |
Derivatives, Fair Value [Line Items] | ||
Accumulated other comprehensive income - unrealized loss on valuation of swap agreements | $ (3.3) | $ (4) |
Other Liabilities | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments, liabilities | 4 | 4.6 |
Prepaid Expenses and Other Assets | Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments, assets | $ 0.3 | $ 0.2 |
Cash Flow Hedging | Variable-Rate Derivatives | Minimum | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, cap interest rate | 3.00% | |
Cash Flow Hedging | Variable-Rate Derivatives | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, cap interest rate | 4.25% | |
Interest Rate Swap | Cash Flow Hedging | Fixed-Rate Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Number of interest rate swaps (in interest rate swaps) | interest_rate_swap | 14 | |
Notional amount of interest rate cash flow hedge derivatives | $ 207.9 | |
Interest Rate Swap | Cash Flow Hedging | Fixed-Rate Derivatives | Minimum | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, fixed interest rate | 1.40% | |
Interest Rate Swap | Cash Flow Hedging | Fixed-Rate Derivatives | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, fixed interest rate | 3.80% | |
Interest Rate Swap | Cash Flow Hedging | Variable-Rate Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of interest rate cash flow hedge derivatives | $ 139 | |
Derivative, number of instruments held | derivative | 4 |
MORTGAGE AND OTHER NOTES PAYA45
MORTGAGE AND OTHER NOTES PAYABLE - MORTGAGE BY PROPERTY (Details) - Jun. 30, 2015 - Mortgages - USD ($) $ in Thousands | Total |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 171,765 |
Repayments of long-term debt | 64,976 |
Libor Plus 2.25% Mortgage Note | 1035 Third Avenue | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 42,000 |
Description of variable rate basis | LIBOR |
Libor Plus 2.25% Mortgage Note | 1035 Third Avenue | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 2.35% |
Libor Plus 1.45% Mortgage Note | Lincoln Park Centre | |
Mortgage Loans on Real Estate [Line Items] | |
Description of variable rate basis | LIBOR |
Repayments of long-term debt | $ 28,000 |
Libor Plus 1.45% Mortgage Note | Lincoln Park Centre | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 1.45% |
4.66% Mortgage note | 163 Highland Avenue | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 9,765 |
Stated interest rate percentage | 4.66% |
Libor Plus 3% Mortgage Note | Broughton Street Portfolio | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 20,000 |
Libor Plus 3% Mortgage Note | Broughton Street Portfolio | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 3.00% |
1.25% Mortgage Note | City Point | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 19,000 |
Stated interest rate percentage | 1.25% |
Sifma Plus 1.6% Mortgage Note | City Point | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 62,000 |
Sifma Plus 1.6% Mortgage Note | City Point | SIFMA | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 1.60% |
Libor Plus 4% Mortgage Note | City Point | |
Mortgage Loans on Real Estate [Line Items] | |
Repayments of long-term debt | $ 20,650 |
Libor Plus 4% Mortgage Note | City Point | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 4.00% |
Libor Plus 1.9% Mortgage Note | 17 E. 71st Street | |
Mortgage Loans on Real Estate [Line Items] | |
Debt instrument face amount | $ 19,000 |
Libor Plus 1.9% Mortgage Note | 17 E. 71st Street | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread on variable rate | 1.90% |
4.98% Mortgage Note | Crescent Plaza | |
Mortgage Loans on Real Estate [Line Items] | |
Stated interest rate percentage | 4.98% |
Repayments of long-term debt | $ 16,326 |
MORTGAGE AND OTHER NOTES PAYA46
MORTGAGE AND OTHER NOTES PAYABLE (Details) | 1 Months Ended | 6 Months Ended | ||
May. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($)extension_option | Dec. 31, 2014USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
Mortgage and other notes payable | $ 1,326,667,000 | $ 1,130,481,000 | ||
Number of loan extensions | extension_option | 1 | |||
Length of loan extension | 6 months | |||
Unsecured credit facility | Line of Credit | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Amount borrowed from credit facility | $ 83,500,000 | |||
Outstanding balance under credit facility | 83,500,000 | |||
Unsecured credit facility | Line of Credit | Fund IV | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
New mortgage loans | 50,000,000 | |||
Commitment fee threshold amount | $ 20,000,000 | |||
Line of credit | 34,500,000 | |||
Line of Credit Facility, Unused Capacity Over Threshold Amount, Commitment Fee Percentage | 1.00% | |||
Line of Credit Facility, Unused Capacity Under Threshold Amount, Commitment Fee Percentage | 2.75% | |||
Unsecured credit facility | Line of Credit | Fund IV | LIBOR | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.75% | |||
Unsecured credit facility | Line of Credit | Fund II | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Amount borrowed from credit facility | $ 12,500,000 | |||
New mortgage loans | 25,000,000 | |||
Commitment fee threshold amount | $ 12,500,000 | |||
Commitment fee percentage | 2.75% | |||
Basis spread on variable rate | 2.75% | |||
Convertible Debt [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Redemption of debt | 400,000 | |||
Line of Credit | Subscription Line | Line of Credit | Fund IV | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Repayment of line of credit | (54,700,000) | |||
Mortgage and other notes payable | $ 22,400,000 |
FAIR VALUE MEASUREMENTS Schedul
FAIR VALUE MEASUREMENTS Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of real estate | $ 5,000 | $ 0 | $ 5,000 | $ 0 |
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 0 | 0 | ||
Derivative financial instruments, liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 289 | 289 | ||
Derivative financial instruments, liabilities | 3,997 | 3,997 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments, assets | 0 | 0 | ||
Derivative financial instruments, liabilities | 0 | 0 | ||
Brandywine Portfolio | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of real estate | $ 5,000 | 5,000 | ||
Operating Partnership | Brandywine Portfolio | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of real estate | $ 1,100 |
FAIR VALUE MEASUREMENTS Fair Va
FAIR VALUE MEASUREMENTS Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable and preferred equity investments, net | $ 168,931 | $ 102,286 |
Mortgage and other notes payable | 1,326,667 | 1,130,481 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable and preferred equity investments, net | 168,931 | 102,286 |
Mortgage and other notes payable | $ 1,345,446 | $ 1,141,371 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Unconsolidated Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 70 | $ 60 | $ 180 | $ 40 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Revenues | $ 53,161 | $ 49,511 | $ 105,642 | $ 96,196 |
Property operating expenses, other operating and real estate taxes | (13,214) | (12,214) | (29,357) | (25,695) |
General and administrative expenses | (8,005) | (6,879) | (15,537) | (13,775) |
Depreciation and amortization | (13,903) | (11,584) | (27,561) | (23,171) |
Operating income | 13,039 | 18,834 | 28,187 | 33,555 |
Equity in earnings of unconsolidated affiliates | 3,406 | 1,430 | 9,999 | 4,459 |
Gain on disposition of property of unconsolidated affiliates | 17,105 | 0 | 17,105 | 0 |
Loss on debt extinguishment | (25) | (66) | (134) | (269) |
Impairment of asset | (5,000) | 0 | (5,000) | 0 |
Gain on disposition of properties | 61,841 | 561 | 88,984 | 12,948 |
Interest and other finance expense | (9,964) | (9,534) | (18,785) | (20,185) |
Income tax benefit (provision) | 56 | 83 | (1,361) | (85) |
Income from continuing operations | 85,458 | 11,308 | 123,995 | 30,423 |
Net income | 85,458 | 11,868 | 123,995 | 30,983 |
Gain on disposition of property | 0 | 560 | 0 | 560 |
Continuing operations | (58,963) | 57 | (80,953) | 2,537 |
Discontinued operations | 0 | (461) | 0 | (461) |
Net loss (income) attributable to noncontrolling interests | (58,963) | (404) | (80,953) | 2,076 |
Net income attributable to Common Shareholders | 26,495 | 11,464 | 43,042 | 33,059 |
Real Estate at Cost | 2,578,580 | 1,982,629 | 2,578,580 | 1,982,629 |
Total Assets | 2,973,699 | 2,372,196 | 2,973,699 | 2,372,196 |
Acquisition of Real Estate | 52,800 | 17,100 | 273,071 | 107,600 |
Investment in Redevelopment and Improvements | 64,751 | 30,806 | 105,245 | 68,311 |
Core Portfolio | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 37,593 | 30,535 | 73,186 | 60,684 |
Property operating expenses, other operating and real estate taxes | (8,235) | (7,587) | (17,926) | (15,493) |
General and administrative expenses | (7,397) | (6,238) | (14,208) | (12,651) |
Depreciation and amortization | (10,568) | (8,300) | (20,475) | (16,633) |
Operating income | 6,393 | 8,410 | 15,577 | 15,907 |
Equity in earnings of unconsolidated affiliates | 699 | 227 | 1,133 | 323 |
Gain on disposition of property of unconsolidated affiliates | 0 | 0 | ||
Loss on debt extinguishment | 0 | (3) | 0 | (3) |
Impairment of asset | (5,000) | (5,000) | ||
Gain on disposition of properties | 0 | 0 | 0 | 12,387 |
Interest and other finance expense | (7,329) | (6,627) | (13,797) | (13,510) |
Income tax benefit (provision) | 75 | 91 | (405) | (13) |
Income from continuing operations | 2,098 | 15,091 | ||
Net income | (162) | 2,098 | 2,508 | 15,091 |
Gain on disposition of property | 0 | 0 | ||
Continuing operations | (1,036) | (1,453) | ||
Discontinued operations | (4) | (4) | ||
Net loss (income) attributable to noncontrolling interests | 2,205 | (1,040) | 2,026 | (1,457) |
Net income attributable to Common Shareholders | 2,043 | 1,058 | 4,534 | 13,634 |
Real Estate at Cost | 1,553,174 | 1,184,956 | 1,553,174 | 1,184,956 |
Total Assets | 1,650,555 | 1,153,586 | 1,650,555 | 1,153,586 |
Acquisition of Real Estate | 0 | 17,100 | 169,235 | 107,600 |
Investment in Redevelopment and Improvements | 3,271 | 754 | 9,624 | 2,182 |
Funds | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 11,583 | 13,934 | 25,063 | 26,576 |
Property operating expenses, other operating and real estate taxes | (4,979) | (4,627) | (11,431) | (10,202) |
General and administrative expenses | (608) | (641) | (1,329) | (1,124) |
Depreciation and amortization | (3,335) | (3,284) | (7,086) | (6,538) |
Operating income | 2,661 | 5,382 | 5,217 | 8,712 |
Equity in earnings of unconsolidated affiliates | 2,707 | 1,203 | 8,866 | 4,136 |
Gain on disposition of property of unconsolidated affiliates | 17,105 | 17,105 | ||
Loss on debt extinguishment | (25) | (63) | (134) | (266) |
Impairment of asset | 0 | 0 | ||
Gain on disposition of properties | 61,841 | 561 | 88,984 | 561 |
Interest and other finance expense | (2,635) | (2,907) | (4,988) | (6,675) |
Income tax benefit (provision) | (19) | (8) | (956) | (72) |
Income from continuing operations | 4,168 | 6,396 | ||
Net income | 81,635 | 4,728 | 114,094 | 6,956 |
Gain on disposition of property | 560 | 560 | ||
Continuing operations | 1,093 | 3,990 | ||
Discontinued operations | (457) | (457) | ||
Net loss (income) attributable to noncontrolling interests | (61,168) | 636 | (82,979) | 3,533 |
Net income attributable to Common Shareholders | 20,467 | 5,364 | 31,115 | 10,489 |
Real Estate at Cost | 1,025,406 | 797,673 | 1,025,406 | 797,673 |
Total Assets | 1,154,213 | 1,122,303 | 1,154,213 | 1,122,303 |
Acquisition of Real Estate | 52,800 | 0 | 103,836 | 0 |
Investment in Redevelopment and Improvements | 61,480 | 30,052 | 95,621 | 66,129 |
Structured Financing | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,985 | 5,042 | 7,393 | 8,936 |
Property operating expenses, other operating and real estate taxes | 0 | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Operating income | 3,985 | 5,042 | 7,393 | 8,936 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Gain on disposition of property of unconsolidated affiliates | 0 | 0 | ||
Loss on debt extinguishment | 0 | 0 | 0 | 0 |
Impairment of asset | 0 | 0 | ||
Gain on disposition of properties | 0 | 0 | 0 | 0 |
Interest and other finance expense | 0 | 0 | 0 | 0 |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
Income from continuing operations | 5,042 | 8,936 | ||
Net income | 3,985 | 5,042 | 7,393 | 8,936 |
Gain on disposition of property | 0 | 0 | ||
Continuing operations | 0 | 0 | ||
Discontinued operations | 0 | 0 | ||
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Common Shareholders | 3,985 | 5,042 | 7,393 | 8,936 |
Real Estate at Cost | 0 | 0 | 0 | 0 |
Total Assets | 168,931 | 96,307 | 168,931 | 96,307 |
Acquisition of Real Estate | 0 | 0 | 0 | 0 |
Investment in Redevelopment and Improvements | $ 0 | $ 0 | $ 0 | $ 0 |
LONG-TERM INCENTIVE COMPENSAT51
LONG-TERM INCENTIVE COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 3,746 | $ 3,833 | |||
Trustee fee expense | $ 0 | ||||
Fund III | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 700 | ||||
Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 5 years | ||||
Other Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||
Other Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||
Senior Executives | Long Term Investment Alignment Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum percentage of promote to be awarded as share based compensation awards | 25.00% | ||||
Senior Executives | Long Term Investment Alignment Program | Fund IV | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum percentage of promote to be awarded as share based compensation awards | 20.00% | ||||
LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period, shares, share-based compensation, net of forfeitures (in shares) | 6,986 | 247,863 | |||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period, shares, share-based compensation, net of forfeitures (in shares) | 14,179 | 8,640 | |||
LTIP Units and Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 400 | $ 900 | |||
Long term incentive and share based compensation expense | $ 1,700 | $ 1,600 | $ 3,500 | $ 3,000 | |
Vesting at the end of year three | LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period, shares, share-based compensation, net of forfeitures (in shares) | 4,416 | ||||
Vesting at the end of year three | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period, shares, share-based compensation, net of forfeitures (in shares) | 6,469 | ||||
Vesting ratably over last two years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 33.00% | ||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||
Vesting ratably over last two years | LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period, shares, share-based compensation, net of forfeitures (in shares) | 2,570 | ||||
Vesting ratably over last two years | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued during period, shares, share-based compensation, net of forfeitures (in shares) | 7,710 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Jul. 31, 2015USD ($)loan | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jul. 01, 2015USD ($) | |
Subsequent Event [Line Items] | ||||
Proceeds from notes receivable | $ 0 | $ 11,990 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Proceeds from notes receivable | $ 9,800 | |||
Principal amount of receivable | $ 8,000 | |||
Accrued interest | 1,800 | |||
Nonperforming Financing Receivable | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Proceeds from notes receivable | $ 12,000 | |||
Principal amount of receivable | $ 8,000 | |||
Number of loans | loan | 3 |