þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland (Brixmor Property Group Inc.) | 45-2433192 | |
Delaware (Brixmor Operating Partnership LP) | 80-0831163 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Brixmor Property Group Inc. | Brixmor Operating Partnership LP | ||||||||
Large accelerated filer | þ | Non-accelerated filer | ☐ | Large accelerated filer | ☐ | Non-accelerated filer | þ | ||
Smaller reporting company | ☐ | Accelerated filer | ☐ | Smaller reporting company | ☐ | Accelerated filer | ☐ | ||
Emerging growth company | ☐ | Emerging growth company | ☐ |
• | Enhances investors’ understanding of the Parent Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | Eliminates duplicative disclosure and provides a more streamlined and readable presentation; and |
• | Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
Item No. | Page | |
Part I - FINANCIAL INFORMATION | ||
1. | Financial Statements | |
Brixmor Property Group Inc. (unaudited) | ||
Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 | ||
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2018 and 2017 | ||
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2018 and 2017 | ||
Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2018 and 2017 | ||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017 | ||
Brixmor Operating Partnership LP (unaudited) | ||
Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 | ||
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2018 and 2017 | ||
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2018 and 2017 | ||
Condensed Consolidated Statements of Changes in Capital for the Three and Nine Months Ended September 30, 2018 and 2017 | ||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017 | ||
Brixmor Property Group Inc. and Brixmor Operating Partnership LP (unaudited) | ||
Notes to Condensed Consolidated Financial Statements | ||
2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
3. | Quantitative and Qualitative Disclosures about Market Risk | |
4. | Controls and Procedures | |
Part II - OTHER INFORMATION | ||
1. | Legal Proceedings | |
1A. | Risk Factors | |
2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
3. | Defaults Upon Senior Securities | |
4. | Mine Safety Disclosures | |
5. | Other Information | |
6. | Exhibits |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited, in thousands, except share information) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Real estate | |||||||
Land | $ | 1,845,114 | $ | 1,984,309 | |||
Buildings and improvements | 8,409,857 | 8,937,182 | |||||
10,254,971 | 10,921,491 | ||||||
Accumulated depreciation and amortization | (2,358,782 | ) | (2,361,070 | ) | |||
Real estate, net | 7,896,189 | 8,560,421 | |||||
Cash and cash equivalents | 19,607 | 56,938 | |||||
Restricted cash | 45,412 | 53,839 | |||||
Marketable securities | 30,725 | 28,006 | |||||
Receivables, net of allowance for doubtful accounts of $18,947 and $17,205 | 230,782 | 232,111 | |||||
Deferred charges and prepaid expenses, net | 150,232 | 147,508 | |||||
Other assets | 124,491 | 75,103 | |||||
Total assets | $ | 8,497,438 | $ | 9,153,926 | |||
Liabilities | |||||||
Debt obligations, net | $ | 5,106,708 | $ | 5,676,238 | |||
Accounts payable, accrued expenses and other liabilities | 516,468 | 569,340 | |||||
Total liabilities | 5,623,176 | 6,245,578 | |||||
Commitments and contingencies (Note 13) | |||||||
Equity | |||||||
Common stock, $0.01 par value; authorized 3,000,000,000 shares; 305,118,890 and 304,947,144 shares issued and 299,891,880 and 304,620,186 shares outstanding | 2,999 | 3,046 | |||||
Additional paid-in capital | 3,254,722 | 3,330,466 | |||||
Accumulated other comprehensive income | 27,121 | 24,211 | |||||
Distributions in excess of net income | (410,580 | ) | (449,375 | ) | |||
Total equity | 2,874,262 | 2,908,348 | |||||
Total liabilities and equity | $ | 8,497,438 | $ | 9,153,926 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | |||||||||||||||
Rental income | $ | 239,217 | $ | 246,578 | $ | 726,549 | $ | 749,976 | |||||||
Expense reimbursements | 66,348 | 66,489 | 204,589 | 206,718 | |||||||||||
Other revenues | 915 | 1,429 | 5,547 | 6,426 | |||||||||||
Total revenues | 306,480 | 314,496 | 936,685 | 963,120 | |||||||||||
Operating expenses | |||||||||||||||
Operating costs | 31,969 | 30,505 | 101,340 | 100,955 | |||||||||||
Real estate taxes | 44,711 | 45,076 | 135,383 | 135,607 | |||||||||||
Depreciation and amortization | 85,183 | 94,239 | 266,900 | 285,040 | |||||||||||
Provision for doubtful accounts | 3,094 | 1,216 | 6,458 | 4,023 | |||||||||||
Impairment of real estate assets | 16,372 | 11,065 | 44,201 | 27,383 | |||||||||||
General and administrative | 21,209 | 22,838 | 64,955 | 67,043 | |||||||||||
Total operating expenses | 202,538 | 204,939 | 619,237 | 620,051 | |||||||||||
Other income (expense) | |||||||||||||||
Dividends and interest | 156 | 76 | 356 | 234 | |||||||||||
Interest expense | (55,364 | ) | (57,410 | ) | (165,735 | ) | (170,584 | ) | |||||||
Gain on sale of real estate assets | 119,333 | 25,942 | 159,043 | 54,920 | |||||||||||
Gain (loss) on extinguishment of debt, net | (19,759 | ) | 1,828 | (20,182 | ) | 488 | |||||||||
Other | (962 | ) | (1,200 | ) | (2,200 | ) | (2,591 | ) | |||||||
Total other income (expense) | 43,404 | (30,764 | ) | (28,718 | ) | (117,533 | ) | ||||||||
Income before equity in income of unconsolidated joint venture | 147,346 | 78,793 | 288,730 | 225,536 | |||||||||||
Equity in income of unconsolidated joint venture | — | 31 | — | 381 | |||||||||||
Gain on disposition of unconsolidated joint venture interest | — | 4,556 | — | 4,556 | |||||||||||
Net income | 147,346 | 83,380 | 288,730 | 230,473 | |||||||||||
Net income attributable to non-controlling interests | — | — | — | (76 | ) | ||||||||||
Net income attributable to Brixmor Property Group Inc. | 147,346 | 83,380 | 288,730 | 230,397 | |||||||||||
Preferred stock dividends | — | — | — | (39 | ) | ||||||||||
Net income attributable to common stockholders | $ | 147,346 | $ | 83,380 | $ | 288,730 | $ | 230,358 | |||||||
Per common share: | |||||||||||||||
Net income attributable to common stockholders: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.27 | $ | 0.95 | $ | 0.76 | |||||||
Diluted | $ | 0.49 | $ | 0.27 | $ | 0.95 | $ | 0.75 | |||||||
Weighted average shares: | |||||||||||||||
Basic | 302,170 | 304,936 | 303,031 | 304,810 | |||||||||||
Diluted | 302,382 | 305,176 | 303,213 | 305,175 | |||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 147,346 | $ | 83,380 | $ | 288,730 | $ | 230,473 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Change in unrealized gain (loss) on interest rate swaps, net (Note 6) | (1,242 | ) | (962 | ) | 2,950 | (1,434 | ) | ||||||||
Change in unrealized loss on marketable securities | — | (11 | ) | (40 | ) | (31 | ) | ||||||||
Total other comprehensive income (loss) | (1,242 | ) | (973 | ) | 2,910 | (1,465 | ) | ||||||||
Comprehensive income | 146,104 | 82,407 | 291,640 | 229,008 | |||||||||||
Comprehensive income attributable to non-controlling interests | — | — | — | (76 | ) | ||||||||||
Comprehensive income attributable to common stockholders | $ | 146,104 | $ | 82,407 | $ | 291,640 | $ | 228,932 | |||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | ||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Number | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Distributions in Excess of Net Income | Total | |||||||||||||||||
Beginning balance, January 1, 2018 | 304,620 | $ | 3,046 | $ | 3,330,466 | $ | 24,211 | $ | (449,375 | ) | $ | 2,908,348 | ||||||||||
Common stock dividends ($0.275 per common share) | — | — | — | — | (83,479 | ) | (83,479 | ) | ||||||||||||||
Equity based compensation expense | — | — | 2,484 | — | — | 2,484 | ||||||||||||||||
Other comprehensive income | — | — | — | 4,687 | — | 4,687 | ||||||||||||||||
Issuance of common stock and OP Units | 128 | 1 | — | — | — | 1 | ||||||||||||||||
Repurchases of common stock | (1,922 | ) | (19 | ) | (29,746 | ) | — | — | (29,765 | ) | ||||||||||||
Share-based awards retained for taxes | — | — | (1,722 | ) | — | — | (1,722 | ) | ||||||||||||||
Net income | — | — | — | — | 61,022 | 61,022 | ||||||||||||||||
Ending balance, March 31, 2018 | 302,826 | 3,028 | 3,301,482 | 28,898 | (471,832 | ) | 2,861,576 | |||||||||||||||
Common stock dividends ($0.275 per common share) | — | — | — | — | (83,584 | ) | (83,584 | ) | ||||||||||||||
Equity based compensation expense | — | — | 2,784 | — | — | 2,784 | ||||||||||||||||
Other comprehensive loss | — | — | — | (535 | ) | — | (535 | ) | ||||||||||||||
Issuance of common stock and OP Units | 42 | 1 | — | — | — | 1 | ||||||||||||||||
Repurchases of common stock | (241 | ) | (3 | ) | (3,497 | ) | — | — | (3,500 | ) | ||||||||||||
Share-based awards retained for taxes | — | — | (133 | ) | — | — | (133 | ) | ||||||||||||||
Net income | — | — | — | — | 80,362 | 80,362 | ||||||||||||||||
Ending balance, June 30, 2018 | 302,627 | 3,026 | 3,300,636 | 28,363 | (475,054 | ) | 2,856,971 | |||||||||||||||
Common stock dividends ($0.275 per common share) | — | — | — | — | (82,872 | ) | (82,872 | ) | ||||||||||||||
Equity based compensation expense | — | — | 2,738 | — | — | 2,738 | ||||||||||||||||
Other comprehensive loss | — | — | — | (1,242 | ) | — | (1,242 | ) | ||||||||||||||
Issuance of common stock and OP Units | 2 | — | — | — | — | — | ||||||||||||||||
Repurchases of common stock | (2,737 | ) | (27 | ) | (48,643 | ) | — | — | (48,670 | ) | ||||||||||||
Share-based awards retained for taxes | — | — | (9 | ) | — | — | (9 | ) | ||||||||||||||
Net income | — | — | — | — | 147,346 | 147,346 | ||||||||||||||||
Ending balance, September 30, 2018 | 299,892 | $ | 2,999 | $ | 3,254,722 | $ | 27,121 | $ | (410,580 | ) | $ | 2,874,262 | ||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||
Number | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Distributions in Excess of Net Income | Non-controlling Interests | Total | ||||||||||||||||||||
Beginning balance, January 1, 2017 | 304,343 | $ | 3,043 | $ | 3,324,874 | $ | 21,519 | $ | (426,552 | ) | $ | 4,276 | $ | 2,927,160 | ||||||||||||
Common stock dividends ($0.26 per common share) | — | — | — | — | (79,480 | ) | — | (79,480 | ) | |||||||||||||||||
Equity based compensation expense | — | — | 2,123 | — | — | 3 | 2,126 | |||||||||||||||||||
Other comprehensive income | — | — | — | 2,620 | — | — | 2,620 | |||||||||||||||||||
Issuance of common stock and OP Units | 147 | 6 | — | — | — | (6 | ) | — | ||||||||||||||||||
Conversion of OP Units into common stock | 403 | — | 3,701 | — | — | (3,701 | ) | — | ||||||||||||||||||
Share-based awards retained for taxes | — | — | (2,464 | ) | — | — | — | (2,464 | ) | |||||||||||||||||
Net income | — | — | — | — | 71,579 | 76 | 71,655 | |||||||||||||||||||
Ending balance, March 31, 2017 | 304,893 | 3,049 | 3,328,234 | 24,139 | (434,453 | ) | 648 | 2,921,617 | ||||||||||||||||||
Common stock dividends ($0.26 per common share) | — | — | — | — | (79,557 | ) | — | (79,557 | ) | |||||||||||||||||
Equity based compensation expense | — | — | 2,848 | — | — | — | 2,848 | |||||||||||||||||||
Preferred stock dividends | — | — | — | — | (641 | ) | (648 | ) | (1,289 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (3,112 | ) | — | — | (3,112 | ) | |||||||||||||||||
Issuance of common stock and OP Units | 43 | — | — | — | — | — | — | |||||||||||||||||||
Share-based awards retained for taxes | — | — | (197 | ) | — | — | — | (197 | ) | |||||||||||||||||
Net income | — | — | — | — | 75,438 | — | 75,438 | |||||||||||||||||||
Ending balance, June 30, 2017 | 304,936 | 3,049 | 3,330,885 | 21,027 | (439,213 | ) | — | 2,915,748 | ||||||||||||||||||
Common stock dividends ($0.26 per common share) | — | — | — | — | (79,625 | ) | — | (79,625 | ) | |||||||||||||||||
Equity based compensation expense | — | — | 2,864 | — | — | — | 2,864 | |||||||||||||||||||
Other comprehensive loss | — | — | — | (973 | ) | — | — | (973 | ) | |||||||||||||||||
Issuance of common stock and OP Units | 1 | — | — | — | — | — | — | |||||||||||||||||||
Share-based awards retained for taxes | — | — | (53 | ) | — | — | — | (53 | ) | |||||||||||||||||
Net income | — | — | — | — | 83,380 | — | 83,380 | |||||||||||||||||||
Ending balance, September 30, 2017 | 304,937 | $ | 3,049 | $ | 3,333,696 | $ | 20,054 | $ | (435,458 | ) | $ | — | $ | 2,921,341 | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR PROPERTY GROUP INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating activities: | |||||||
Net income | $ | 288,730 | $ | 230,473 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 266,900 | 285,040 | |||||
Debt premium and discount amortization | (2,804 | ) | (4,371 | ) | |||
Deferred financing cost amortization | 4,909 | 5,283 | |||||
Above- and below-market lease intangible amortization | (20,644 | ) | (23,012 | ) | |||
Provisions for impairment | 44,201 | 27,383 | |||||
Gain on disposition of operating properties | (159,043 | ) | (54,920 | ) | |||
Gain on disposition of unconsolidated joint venture interest | — | (4,556 | ) | ||||
Equity based compensation | 8,006 | 7,838 | |||||
Other | 2,587 | 1,836 | |||||
(Gain) loss on extinguishment of debt, net | 20,182 | (488 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Receivables | 1,416 | (15,675 | ) | ||||
Deferred charges and prepaid expenses | (35,840 | ) | (41,760 | ) | |||
Other assets | 3,637 | (3,753 | ) | ||||
Accounts payable, accrued expenses and other liabilities | (22,055 | ) | 11,801 | ||||
Net cash provided by operating activities | 400,182 | 421,119 | |||||
Investing activities: | |||||||
Improvements to and investments in real estate assets | (185,048 | ) | (140,036 | ) | |||
Acquisitions of real estate assets | (8,994 | ) | (111,790 | ) | |||
Proceeds from sales of real estate assets | 676,959 | 228,680 | |||||
Proceeds from sale of unconsolidated joint venture interest | — | 12,369 | |||||
Purchase of marketable securities | (27,923 | ) | (23,998 | ) | |||
Proceeds from sale of marketable securities | 25,076 | 20,640 | |||||
Net cash provided by (used in) investing activities | 480,070 | (14,135 | ) | ||||
Financing activities: | |||||||
Repayment of secured debt obligations | (518,308 | ) | (396,356 | ) | |||
Repayment of borrowings under unsecured revolving credit facility | (74,000 | ) | (548,000 | ) | |||
Proceeds from borrowings under unsecured revolving credit facility | 215,000 | 426,000 | |||||
Proceeds from unsecured notes | 250,000 | 1,193,916 | |||||
Repayment of borrowings under unsecured term loan | (435,000 | ) | (790,000 | ) | |||
Deferred financing and debt extinguishment costs | (29,017 | ) | (11,185 | ) | |||
Distributions to common stockholders | (250,886 | ) | (238,106 | ) | |||
Distributions to non-controlling interests | — | (1,390 | ) | ||||
Repurchases of common shares | (81,935 | ) | — | ||||
Repurchases of common shares in conjunction with equity award plans | (1,864 | ) | (2,714 | ) | |||
Net cash used in financing activities | (926,010 | ) | (367,835 | ) | |||
Net change in cash, cash equivalents and restricted cash | (45,758 | ) | 39,149 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 110,777 | 102,869 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 65,019 | $ | 142,018 | |||
Reconciliation to consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 19,607 | $ | 29,978 | |||
Restricted cash | 45,412 | 112,040 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 65,019 | $ | 142,018 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of amount capitalized of $1,798 and $2,268 | $ | 173,079 | $ | 176,524 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited, in thousands, except unit information) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Real estate | |||||||
Land | $ | 1,845,114 | $ | 1,984,309 | |||
Buildings and improvements | 8,409,857 | 8,937,182 | |||||
10,254,971 | 10,921,491 | ||||||
Accumulated depreciation and amortization | (2,358,782 | ) | (2,361,070 | ) | |||
Real estate, net | 7,896,189 | 8,560,421 | |||||
Cash and cash equivalents | 19,582 | 56,908 | |||||
Restricted cash | 45,412 | 53,839 | |||||
Marketable securities | 30,506 | 27,787 | |||||
Receivables, net of allowance for doubtful accounts of $18,947 and $17,205 | 230,782 | 232,111 | |||||
Deferred charges and prepaid expenses, net | 150,232 | 147,508 | |||||
Other assets | 124,491 | 75,103 | |||||
Total assets | $ | 8,497,194 | $ | 9,153,677 | |||
Liabilities | |||||||
Debt obligations, net | $ | 5,106,708 | $ | 5,676,238 | |||
Accounts payable, accrued expenses and other liabilities | 516,468 | 569,340 | |||||
Total liabilities | 5,623,176 | 6,245,578 | |||||
Commitments and contingencies (Note 13) | |||||||
Capital | |||||||
Partnership common units; 305,118,890 and 304,947,144 units issued and 299,891,880 and 304,620,186 units outstanding | 2,846,886 | 2,883,875 | |||||
Accumulated other comprehensive income | 27,132 | 24,224 | |||||
Total capital | 2,874,018 | 2,908,099 | |||||
Total liabilities and capital | $ | 8,497,194 | $ | 9,153,677 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | |||||||||||||||
Rental income | $ | 239,217 | $ | 246,578 | $ | 726,549 | $ | 749,976 | |||||||
Expense reimbursements | 66,348 | 66,489 | 204,589 | 206,718 | |||||||||||
Other revenues | 915 | 1,429 | 5,547 | 6,426 | |||||||||||
Total revenues | 306,480 | 314,496 | 936,685 | 963,120 | |||||||||||
Operating expenses | |||||||||||||||
Operating costs | 31,969 | 30,505 | 101,340 | 100,955 | |||||||||||
Real estate taxes | 44,711 | 45,076 | 135,383 | 135,607 | |||||||||||
Depreciation and amortization | 85,183 | 94,239 | 266,900 | 285,040 | |||||||||||
Provision for doubtful accounts | 3,094 | 1,216 | 6,458 | 4,023 | |||||||||||
Impairment of real estate assets | 16,372 | 11,065 | 44,201 | 27,383 | |||||||||||
General and administrative | 21,209 | 22,838 | 64,955 | 67,043 | |||||||||||
Total operating expenses | 202,538 | 204,939 | 619,237 | 620,051 | |||||||||||
Other income (expense) | |||||||||||||||
Dividends and interest | 156 | 76 | 356 | 234 | |||||||||||
Interest expense | (55,364 | ) | (57,410 | ) | (165,735 | ) | (170,584 | ) | |||||||
Gain on sale of real estate assets | 119,333 | 25,942 | 159,043 | 54,920 | |||||||||||
Gain (loss) on extinguishment of debt, net | (19,759 | ) | 1,828 | (20,182 | ) | 488 | |||||||||
Other | (962 | ) | (1,200 | ) | (2,200 | ) | (2,591 | ) | |||||||
Total other income (expense) | 43,404 | (30,764 | ) | (28,718 | ) | (117,533 | ) | ||||||||
Income before equity in income of unconsolidated joint venture | 147,346 | 78,793 | 288,730 | 225,536 | |||||||||||
Equity in income of unconsolidated joint venture | — | 31 | — | 381 | |||||||||||
Gain on disposition of unconsolidated joint venture interest | — | 4,556 | — | 4,556 | |||||||||||
Net income attributable to Brixmor Operating Partnership LP | $ | 147,346 | $ | 83,380 | $ | 288,730 | $ | 230,473 | |||||||
Per common unit: | |||||||||||||||
Net income attributable to partnership common units: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.27 | $ | 0.95 | $ | 0.76 | |||||||
Diluted | $ | 0.49 | $ | 0.27 | $ | 0.95 | $ | 0.76 | |||||||
Weighted average number of partnership common units: | |||||||||||||||
Basic | 302,170 | 304,936 | 303,031 | 304,914 | |||||||||||
Diluted | 302,382 | 305,176 | 303,213 | 305,175 | |||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income attributable to Brixmor Operating Partnership LP | $ | 147,346 | $ | 83,380 | $ | 288,730 | $ | 230,473 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Change in unrealized gain (loss) on interest rate swaps, net (Note 6) | (1,242 | ) | (962 | ) | 2,950 | (1,434 | ) | ||||||||
Change in unrealized loss on marketable securities | (4 | ) | (10 | ) | (42 | ) | (30 | ) | |||||||
Total other comprehensive income (loss) | (1,246 | ) | (972 | ) | 2,908 | (1,464 | ) | ||||||||
Comprehensive income attributable to Brixmor Operating Partnership LP | $ | 146,100 | $ | 82,408 | $ | 291,638 | $ | 229,009 | |||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL | |||||||||||
(Unaudited, in thousands) | |||||||||||
Partnership Common Units | Accumulated Other Comprehensive Income | Total | |||||||||
Beginning balance, January 1, 2018 | $ | 2,883,875 | $ | 24,224 | $ | 2,908,099 | |||||
Distributions to partners | (83,479 | ) | — | (83,479 | ) | ||||||
Equity based compensation expense | 2,484 | — | 2,484 | ||||||||
Other comprehensive income | — | 4,688 | 4,688 | ||||||||
Issuance of OP Units | 1 | — | 1 | ||||||||
Repurchases of OP Units | (29,765 | ) | — | (29,765 | ) | ||||||
Share-based awards retained for taxes | (1,722 | ) | — | (1,722 | ) | ||||||
Net income attributable to Brixmor Operating Partnership LP | 61,022 | — | 61,022 | ||||||||
Ending balance, March 31, 2018 | 2,832,416 | 28,912 | 2,861,328 | ||||||||
Distributions to partners | (83,584 | ) | — | (83,584 | ) | ||||||
Equity based compensation expense | 2,784 | — | 2,784 | ||||||||
Other comprehensive loss | — | (534 | ) | (534 | ) | ||||||
Issuance of OP Units | 1 | — | 1 | ||||||||
Repurchases of OP Units | (3,500 | ) | — | (3,500 | ) | ||||||
Share-based awards retained for taxes | (133 | ) | — | (133 | ) | ||||||
Net income attributable to Brixmor Operating Partnership LP | 80,362 | — | 80,362 | ||||||||
Ending balance, June 30, 2018 | 2,828,346 | 28,378 | 2,856,724 | ||||||||
Distributions to partners | (82,865 | ) | — | (82,865 | ) | ||||||
Equity based compensation expense | 2,738 | — | 2,738 | ||||||||
Other comprehensive loss | — | (1,246 | ) | (1,246 | ) | ||||||
Repurchases of OP Units | (48,670 | ) | — | (48,670 | ) | ||||||
Share-based awards retained for taxes | (9 | ) | — | (9 | ) | ||||||
Net income attributable to Brixmor Operating Partnership LP | 147,346 | — | 147,346 | ||||||||
Ending balance, September 30, 2018 | $ | 2,846,886 | $ | 27,132 | $ | 2,874,018 | |||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL | |||||||||||
(Unaudited, in thousands) | |||||||||||
Partnership Common Units | Accumulated Other Comprehensive Income | Total | |||||||||
Beginning balance, January 1, 2017 | $ | 2,905,378 | $ | 21,531 | $ | 2,926,909 | |||||
Distributions to partners | (79,476 | ) | — | (79,476 | ) | ||||||
Equity based compensation expense | 2,126 | — | 2,126 | ||||||||
Other comprehensive income | — | 2,621 | 2,621 | ||||||||
Share-based awards retained for taxes | (2,464 | ) | — | (2,464 | ) | ||||||
Net income attributable to Brixmor Operating Partnership LP | 71,655 | — | 71,655 | ||||||||
Ending balance, March 31, 2017 | 2,897,219 | 24,152 | 2,921,371 | ||||||||
Distributions to partners | (80,850 | ) | — | (80,850 | ) | ||||||
Equity based compensation expense | 2,848 | — | 2,848 | ||||||||
Other comprehensive loss | — | (3,113 | ) | (3,113 | ) | ||||||
Share-based awards retained for taxes | (197 | ) | — | (197 | ) | ||||||
Net income attributable to Brixmor Operating Partnership LP | 75,438 | — | 75,438 | ||||||||
Ending balance, June 30, 2017 | 2,894,458 | 21,039 | 2,915,497 | ||||||||
Distributions to partners | (79,623 | ) | — | (79,623 | ) | ||||||
Equity based compensation expense | 2,864 | — | 2,864 | ||||||||
Other comprehensive loss | — | (972 | ) | (972 | ) | ||||||
Share-based awards retained for taxes | (53 | ) | — | (53 | ) | ||||||
Net income attributable to Brixmor Operating Partnership LP | 83,380 | — | 83,380 | ||||||||
Ending balance, September 30, 2017 | $ | 2,901,026 | $ | 20,067 | $ | 2,921,093 | |||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
BRIXMOR OPERATING PARTNERSHIP LP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating activities: | |||||||
Net income attributable to Brixmor Operating Partnership LP | $ | 288,730 | $ | 230,473 | |||
Adjustments to reconcile net income attributable to Brixmor Operating Partnership LP | |||||||
to net cash provided by operating activities: | |||||||
Depreciation and amortization | 266,900 | 285,040 | |||||
Debt premium and discount amortization | (2,804 | ) | (4,371 | ) | |||
Deferred financing cost amortization | 4,909 | 5,283 | |||||
Above- and below-market lease intangible amortization | (20,644 | ) | (23,012 | ) | |||
Provisions for impairment | 44,201 | 27,383 | |||||
Gain on disposition of operating properties | (159,043 | ) | (54,920 | ) | |||
Gain on disposition of unconsolidated joint venture interest | — | (4,556 | ) | ||||
Equity based compensation | 8,006 | 7,838 | |||||
Other | 2,587 | 1,836 | |||||
(Gain) loss on extinguishment of debt, net | 20,182 | (488 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Receivables | 1,416 | (15,675 | ) | ||||
Deferred charges and prepaid expenses | (35,840 | ) | (41,760 | ) | |||
Other assets | 3,637 | (3,753 | ) | ||||
Accounts payable, accrued expenses and other liabilities | (22,055 | ) | 11,801 | ||||
Net cash provided by operating activities | 400,182 | 421,119 | |||||
Investing activities: | |||||||
Improvements to and investments in real estate assets | (185,048 | ) | (140,036 | ) | |||
Acquisitions of real estate assets | (8,994 | ) | (111,790 | ) | |||
Proceeds from sales of real estate assets | 676,959 | 228,680 | |||||
Proceeds from sale of unconsolidated joint venture interest | — | 12,369 | |||||
Purchase of marketable securities | (27,922 | ) | (23,995 | ) | |||
Proceeds from sale of marketable securities | 25,076 | 20,640 | |||||
Net cash provided by (used in) investing activities | 480,071 | (14,132 | ) | ||||
Financing activities: | |||||||
Repayment of secured debt obligations | (518,308 | ) | (396,356 | ) | |||
Repayment of borrowings under unsecured revolving credit facility | (74,000 | ) | (548,000 | ) | |||
Proceeds from borrowings under unsecured revolving credit facility | 215,000 | 426,000 | |||||
Proceeds from unsecured notes | 250,000 | 1,193,916 | |||||
Repayment of borrowings under unsecured term loan | (435,000 | ) | (790,000 | ) | |||
Deferred financing and debt extinguishment costs | (29,017 | ) | (11,185 | ) | |||
Partner distributions | (334,681 | ) | (242,209 | ) | |||
Net cash used in financing activities | (926,006 | ) | (367,834 | ) | |||
Net change in cash, cash equivalents and restricted cash | (45,753 | ) | 39,153 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 110,747 | 102,835 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 64,994 | $ | 141,988 | |||
Reconciliation to consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 19,582 | $ | 29,948 | |||
Restricted cash | 45,412 | 112,040 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 64,994 | $ | 141,988 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of amount capitalized of $1,798 and $2,268 | $ | 173,079 | $ | 176,524 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
Description(1) | Location | Month Acquired | GLA | Aggregate Purchase Price(2) | |||||||
Land adjacent to Arborland Center | Ann Arbor, MI | Jun-18 | N/A | $ | 5,554 | ||||||
Outparcel adjacent to Lehigh Shopping Center | Bethlehem, PA | Jun-18 | 12,739 | 1,899 | |||||||
Outparcel building adjacent to Beneva Village Shoppes | Sarasota, FL | Jul-18 | 3,710 | 1,541 | |||||||
16,449 | $ | 8,994 |
(1) | No debt was assumed related to any of the listed acquisitions. |
(2) | Includes transaction costs |
Description(1) | Location | Month Acquired | GLA | Aggregate Purchase Price(2) | |||||||
Outparcel building adjacent to Annex of Arlington | Arlington Heights, IL | Feb-17 | 5,760 | $ | 1,006 | ||||||
Outparcel adjacent to Northeast Plaza | Atlanta, GA | Feb-17 | N/A | 1,537 | |||||||
Arborland Center | Ann Arbor, MI | Mar-17 | 403,536 | 102,268 | |||||||
Building adjacent to Preston Park | Plano, TX | Apr-17 | 31,080 | 4,015 | |||||||
Outparcel building adjacent to Cobblestone Village | St. Augustine, FL | May-17 | 4,403 | 1,306 | |||||||
Outparcel adjacent to Wynnewood Village | Dallas, TX | May-17 | N/A | 1,658 | |||||||
444,779 | $ | 111,790 |
(1) | No debt was assumed related to any of the listed acquisitions. |
(2) | Includes transaction costs |
Nine Months Ended September 30, | |||||||||
Assets | 2018 | 2017 | |||||||
Land | $ | 6,078 | $ | 19,240 | |||||
Buildings | 2,448 | 75,286 | |||||||
Building and tenant improvements | 238 | 9,177 | |||||||
Above-market leases(1) | — | 2,381 | |||||||
In-place leases(2) | 304 | 8,608 | |||||||
Total assets | 9,068 | 114,692 | |||||||
Liabilities | |||||||||
Below-market leases(3) | 74 | 2,902 | |||||||
Other liabilities | — | — | |||||||
Total liabilities | 74 | 2,902 | |||||||
Net assets acquired | $ | 8,994 | $ | 111,790 |
(1) | The weighted average amortization period at the time of acquisition for above-market leases related to assets acquired during the nine months ended September 30, 2017 was 5.0 years. |
(2) | The weighted average amortization period at the time of acquisition for in-place leases related to assets acquired during the nine months ended September 30, 2018 and 2017 was 4.8 years and 6.6 years, respectively. |
(3) | The weighted average amortization period at the time of acquisition for below-market leases related to assets acquired during the nine months ended September 30, 2018 and 2017 was 4.8 years and 16.7 years, respectively. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Transaction Costs | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Capitalized(1) | $ | 41 | $ | — | $ | 173 | $ | 372 | ||||||||
Expensed(2) | 95 | 204 | 294 | 204 | ||||||||||||
Total transaction costs | $ | 136 | $ | 204 | $ | 467 | $ | 576 |
(1) | These amounts are included in Real estate, net on the Company’s unaudited Condensed Consolidated Balance Sheets. |
(2) | These amounts are included in Other on the Company’s unaudited Condensed Consolidated Statements of Operations. |
Assets | September 30, 2018 | December 31, 2017 | |||||||
Land | $ | 23,092 | $ | 3,220 | |||||
Buildings and improvements | 77,995 | 30,758 | |||||||
Accumulated depreciation and amortization | (22,232 | ) | (7,464 | ) | |||||
Real estate, net | 78,855 | 26,514 | |||||||
Other assets | 1,471 | 567 | |||||||
Assets associated with properties held for sale(1) | $ | 80,326 | $ | 27,081 | |||||
Liabilities | |||||||||
Other liabilities | $ | 3,233 | $ | 33 | |||||
Liabilities associated with properties held for sale(2) | $ | 3,233 | $ | 33 |
(1) | These amounts are included in Other assets on the Company's unaudited Condensed Consolidated Balance Sheets. |
(2) | These amounts are included in Accounts payable, accrued expenses and other liabilities on the Company's unaudited Condensed Consolidated Balance Sheets. |
September 30, 2018 | December 31, 2017 | ||||||
Land | $ | 1,845,114 | $ | 1,984,309 | |||
Buildings and improvements: | |||||||
Buildings and tenant improvements(1) | 7,712,739 | 8,145,085 | |||||
Lease intangibles(2) | 697,118 | 792,097 | |||||
10,254,971 | 10,921,491 | ||||||
Accumulated depreciation and amortization(3) | (2,358,782 | ) | (2,361,070 | ) | |||
Total | $ | 7,896,189 | $ | 8,560,421 |
(1) | As of September 30, 2018 and December 31, 2017, Buildings and tenant improvements included accrued amounts of $34.8 million and $22.8 million, respectively, related to construction in progress, net of any anticipated insurance proceeds. |
(2) | As of September 30, 2018 and December 31, 2017, Lease intangibles consisted of $628.9 million and $715.1 million, respectively, of in-place leases and $68.2 million and $77.0 million, respectively, of above-market leases. These intangible assets are amortized over the term of each related lease. |
(3) | As of September 30, 2018 and December 31, 2017, Accumulated depreciation and amortization included $579.5 million and $629.1 million, respectively, of accumulated amortization related to Lease intangibles. |
Year ending December 31, | Below-market lease accretion (income), net of above-market lease amortization | In-place lease amortization expense | ||||||
2018 (remaining three months) | $ | (5,243 | ) | $ | 7,280 | |||
2019 | (18,907 | ) | 24,872 | |||||
2020 | (15,357 | ) | 18,294 | |||||
2021 | (12,524 | ) | 13,023 | |||||
2022 | (10,343 | ) | 9,599 |
Three Months Ended September 30, 2018 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
Westview Center | Hanover Park, IL | 321,382 | $ | 5,916 | |||||
Wadsworth Crossings | Wadsworth, OH | 118,145 | 3,411 | ||||||
Brooksville Square(2) | Brooksville, FL | 96,361 | 2,740 | ||||||
Sterling Bazaar | Peoria, IL | 87,359 | 1,531 | ||||||
Plantation Plaza | Clute, TX | 99,141 | 1,228 | ||||||
Smith’s(2) | Socorro, NM | 48,000 | 1,200 | ||||||
Shops of Riverdale(2) | Riverdale, GA | 16,808 | 155 | ||||||
Dover Park Plaza(2) | Yardville, NJ | 56,638 | 117 | ||||||
Klein Square | Spring, TX | 80,636 | 49 | ||||||
Parcel at Elk Grove Town Center(2) | Elk Grove Village, IL | 72,385 | 19 | ||||||
Mount Carmel Plaza(2) | Glenside, PA | 14,504 | 6 | ||||||
1,011,359 | $ | 16,372 |
(1) | The Company recognized impairment charges based upon a change in the estimated hold period of these properties in connection with the Company’s capital recycling program. |
(2) | The Company disposed of this property during the three months ended September 30, 2018. |
Nine Months Ended September 30, 2018 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
County Line Plaza(2) | Jackson, MS | 221,127 | $ | 10,181 | |||||
Southland Shopping Plaza(2) | Toledo, OH | 285,278 | 7,077 | ||||||
Westview Center | Hanover Park, IL | 321,382 | 5,916 | ||||||
Roundtree Place(2) | Ypsilanti, MI | 246,620 | 4,317 | ||||||
Skyway Plaza | St. Petersburg, FL | 110,799 | 3,639 | ||||||
Wadsworth Crossings | Wadsworth, OH | 118,145 | 3,411 | ||||||
Brooksville Square(2) | Brooksville, FL | 96,361 | 2,740 | ||||||
Sterling Bazaar | Peoria, IL | 87,359 | 1,531 | ||||||
Pensacola Square(2) | Pensacola, FL | 142,767 | 1,345 | ||||||
Plantation Plaza | Clute, TX | 99,141 | 1,228 | ||||||
Smith’s(2) | Socorro, NM | 48,000 | 1,200 | ||||||
Dover Park Plaza(2) | Yardville, NJ | 56,638 | 555 | ||||||
Parcel at Elk Grove Town Center(2) | Elk Grove Village, IL | 72,385 | 538 | ||||||
Crossroads Centre(2) | Fairview Heights, IL | 242,752 | 204 | ||||||
Shops of Riverdale(2) | Riverdale, GA | 16,808 | 155 | ||||||
Mount Carmel Plaza(2) | Glenside, PA | 14,504 | 115 | ||||||
Klein Square | Spring, TX | 80,636 | 49 | ||||||
2,260,702 | $ | 44,201 |
(1) | The Company recognized impairment charges based upon a change in the estimated hold period of these properties in connection with the Company’s capital recycling program. |
(2) | The Company disposed of this property during the nine months ended September 30, 2018. |
Three Months Ended September 30, 2017 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
Lexington Road Plaza(2) | Versailles, KY | 197,668 | $ | 6,393 | |||||
Fashion Square(3) | Orange Park, FL | 36,029 | 2,125 | ||||||
Shops at Seneca Mall(2) | Liverpool, NY | 231,024 | 1,507 | ||||||
Remount Village Shopping Center(2) | North Charleston, SC | 60,238 | 599 | ||||||
The Shoppes at North Ridgeville(2) | North Ridgeville, OH | 59,852 | 389 | ||||||
Renaissance Center East(2) | Las Vegas, NV | 144,216 | 52 | ||||||
729,027 | $ | 11,065 |
(1) | The Company recognized impairment charges based upon a change in the estimated hold period of these properties in connection with the Company’s capital recycling program. |
(2) | The Company disposed of this property during the year ended December 31, 2017. |
(3) | The Company disposed of this property during the nine months ended September 30, 2018. |
Nine Months Ended September 30, 2017 | |||||||||
Property Name(1) | Location | GLA | Impairment Charge | ||||||
The Manchester Collection | Manchester, CT | 342,247 | $ | 9,026 | |||||
Lexington Road Plaza(2) | Versailles, KY | 197,668 | 6,393 | ||||||
The Plaza at Salmon Run | Watertown, NY | 68,761 | 3,486 | ||||||
Smith’s(3) | Socorro, NM | 48,000 | 2,200 | ||||||
Fashion Square(3) | Orange Park, FL | 36,029 | 2,125 | ||||||
Renaissance Center East(2) | Las Vegas, NV | 144,216 | 1,658 | ||||||
Shops at Seneca Mall(2) | Liverpool, NY | 231,024 | 1,507 | ||||||
Remount Village Shopping Center(2) | North Charleston, SC | 60,238 | 599 | ||||||
The Shoppes at North Ridgeville(2) | North Ridgeville, OH | 59,852 | 389 | ||||||
1,188,035 | $ | 27,383 |
(1) | The Company recognized impairment charges based upon a change in the estimated hold period of these properties in connection with the Company’s capital recycling program. |
(2) | The Company disposed of this property during the year ended December 31, 2017. |
(3) | The Company disposed of this property during the nine months ended September 30, 2018. |
Number of Instruments | Notional Amount | |||||||||||
September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||
Interest Rate Swaps | 6 | 9 | $ | 900,000 | $ | 1,400,000 |
Fair Value of Derivative Instruments | ||||||||
Interest rate swaps classified as: | September 30, 2018 | December 31, 2017 | ||||||
Gross derivative assets | $ | 27,370 | $ | 24,420 | ||||
Gross derivative liabilities | — | — | ||||||
Net derivative assets | $ | 27,370 | $ | 24,420 |
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Change in unrealized gain (loss) on interest rate swaps | $ | 1,868 | $ | 132 | $ | 12,103 | $ | (532 | ) | |||||||
Accretion of interest rate swaps to interest expense | (3,110 | ) | (1,094 | ) | (9,153 | ) | (902 | ) | ||||||||
Change in unrealized gain (loss) on interest rate swaps, net | $ | (1,242 | ) | $ | (962 | ) | $ | 2,950 | $ | (1,434 | ) |
Carrying Value as of | ||||||||||||
September 30, 2018 | December 31, 2017 | Stated Interest Rate(1) | Scheduled Maturity Date | |||||||||
Secured loans | ||||||||||||
Secured loans(2)(3) | $ | 384,409 | $ | 902,717 | 4.40% – 6.24% | 2020 – 2024 | ||||||
Net unamortized premium | 3,395 | 15,321 | ||||||||||
Net unamortized debt issuance costs | (54 | ) | (93 | ) | ||||||||
Total secured loans, net | 387,750 | 917,945 | ||||||||||
Notes payable | ||||||||||||
Unsecured notes(4) | 3,468,453 | 3,218,453 | 3.25% – 7.97% | 2022 – 2029 | ||||||||
Net unamortized discount | (12,043 | ) | (13,485 | ) | ||||||||
Net unamortized debt issuance costs | (21,815 | ) | (22,476 | ) | ||||||||
Total notes payable, net | 3,434,595 | 3,182,492 | ||||||||||
Unsecured Credit Facility and term loans | ||||||||||||
Unsecured $600 Million Term Loan(5) | 350,000 | 600,000 | 3.53% | 2019 | ||||||||
Unsecured Credit Facility(6) | 641,000 | 685,000 | 3.45% – 3.48% | 2020 – 2021 | ||||||||
Unsecured $300 Million Term Loan(7) | 300,000 | 300,000 | 4.00% | 2024 | ||||||||
Net unamortized debt issuance costs | (6,637 | ) | (9,199 | ) | ||||||||
Total Unsecured Credit Facility and term loans | 1,284,363 | 1,575,801 | ||||||||||
Total debt obligations, net | $ | 5,106,708 | $ | 5,676,238 |
(1) | The stated interest rates are as of September 30, 2018 and do not include the impact of the Company’s interest rate swap agreements (described below). |
(2) | The Company’s secured loans are collateralized by certain properties and the equity interests of certain subsidiaries. These properties had a carrying value as of September 30, 2018 of approximately $587.0 million. |
(3) | The weighted average stated interest rate on the Company’s secured loans was 6.05% as of September 30, 2018. |
(4) | The weighted average stated interest rate on the Company’s unsecured notes was 3.77% as of September 30, 2018. |
(5) | Effective November 1, 2016, the Company has in place three interest rate swap agreements that convert the variable interest rate on $350.0 million of the Company’s $600 million term loan agreement, as amended July 25, 2016, (the “$600 Million Term Loan”) to a fixed, combined interest rate of 0.88% (plus a spread of 140 bps) through March 18, 2019. |
(6) | Effective November 1, 2016, the Company has in place three interest rate swap agreements that convert the variable interest rate on a $500.0 million term loan under the Company’s senior unsecured credit facility agreement, as amended July 25, 2016, (the “Unsecured Credit Facility”) to a fixed, combined interest rate of 1.11% (plus a spread of 135 bps) through July 30, 2021. |
(7) | Effective July 28, 2017, the Company has in place one interest rate swap agreement that converts the variable interest rate on $50.0 million of the Company’s $300 million term loan agreement, as entered into July 28, 2017, (the “$300 Million Term Loan”) to a fixed, combined interest rate of 0.88% (plus a spread of 190 bps) through March 18, 2019. |
Year ending December 31, | ||||
2018 (remaining three months) | $ | 1,877 | ||
2019 | 357,738 | |||
2020 | 322,569 | |||
2021 | 686,225 | |||
2022 | 750,000 | |||
Thereafter | 3,025,453 | |||
Total debt maturities | 5,143,862 | |||
Net unamortized discount | (8,648 | ) | ||
Net unamortized debt issuance costs | (28,506 | ) | ||
Total debt obligations, net | $ | 5,106,708 |
September 30, 2018 | December 31, 2017 | |||||||||||||||
Carrying Amounts | Fair Value | Carrying Amounts | Fair Value | |||||||||||||
Secured loans | $ | 387,750 | $ | 398,423 | $ | 917,945 | $ | 963,702 | ||||||||
Notes payable | 3,434,595 | 3,366,004 | 3,182,492 | 3,224,877 | ||||||||||||
Unsecured Credit Facility and term loans | 1,284,363 | 1,291,792 | 1,575,801 | 1,586,206 | ||||||||||||
Total debt obligations, net | $ | 5,106,708 | $ | 5,056,219 | $ | 5,676,238 | $ | 5,774,785 | ||||||||
Fair Value Measurements as of September 30, 2018 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Marketable securities(1) | $ | 30,725 | $ | 1,777 | $ | 28,948 | $ | — | |||||||
Interest rate derivatives | $ | 27,370 | $ | — | $ | 27,370 | $ | — | |||||||
Fair Value Measurements as of December 31, 2017 | |||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Marketable securities(1) | $ | 28,006 | $ | 725 | $ | 27,281 | $ | — | |||||||
Interest rate derivatives | $ | 24,420 | $ | — | $ | 24,420 | $ | — |
(1) | As of September 30, 2018 and December 31, 2017, marketable securities included $0.2 million of net unrealized losses. As of September 30, 2018, the contractual maturities of the Company’s marketable securities are within the next five years. |
Fair Value Measurements as of September 30, 2018 | |||||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Impairment of Real Estate Assets | |||||||||||||||
Assets: | |||||||||||||||||||
Properties(1)(2)(3) | $ | 59,591 | $ | — | $ | — | $ | 59,591 | $ | 15,774 | |||||||||
Fair Value Measurements as of December 31, 2017 | |||||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Impairment of Real Estate Assets | |||||||||||||||
Assets: | |||||||||||||||||||
Properties(4)(5)(6) | $ | 73,303 | $ | — | $ | — | $ | 73,303 | $ | 17,195 | |||||||||
(1) | Excludes properties disposed of prior to September 30, 2018. |
(2) | The carrying value of properties remeasured to fair value based upon offers from third party buyers during the nine months ended September 30, 2018 includes: (i) $26.1 million related to Westview Center, (ii) $15.6 million related to Wadsworth Crossings, (iii) $6.8 million related to Klein Square, (iv) $4.7 million related to Sterling Bazaar, and (v) $3.5 million related to Plantation Plaza. |
(3) | The carrying value of properties remeasured to fair value based upon a discounted cash flow analysis during the nine months ended September 30, 2018 includes $2.9 million related to Skyway Plaza. The capitalization rate of 9.3% and discount rate of 10.4% which were utilized in the discounted cash flow analysis were based upon unobservable rates that the Company believes to be within a reasonable range of current market rates for the investment. |
(4) | Excludes properties disposed of prior to December 31, 2017. |
(5) | The carrying value of properties remeasured to fair value based upon offers from third party buyers during the year ended December 31, 2017 includes: (i) $46.9 million related to The Manchester Collection, (ii) $2.4 million related to Fashion Square, and (iii) $14.3 million related to Crossroads Centre. |
(6) | The carrying value of properties remeasured to fair value based upon a discounted cash flow analysis during the year ended December 31, 2017 includes: (i) $7.8 million related to The Plaza at Salmon Run and (ii) $1.9 million related to Smith’s. The capitalization rates (ranging from 7.0% to 8.5%) and discount rates (ranging from 7.9% to 9.5%) which were utilized in the discounted cash flow analyses were based upon unobservable rates that the Company believes to be within a reasonable range of current market rates for each respective investment. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Computation of Basic Earnings Per Share: | |||||||||||||||
Net income | $ | 147,346 | $ | 83,380 | $ | 288,730 | $ | 230,473 | |||||||
Net income attributable to non-controlling interests | — | — | — | (76 | ) | ||||||||||
Non-forfeitable dividends on unvested restricted shares | (162 | ) | (10 | ) | (264 | ) | (31 | ) | |||||||
Preferred stock dividends | — | — | — | (39 | ) | ||||||||||
Net income attributable to the Company’s common stockholders for basic earnings per share | $ | 147,184 | $ | 83,370 | $ | 288,466 | $ | 230,327 | |||||||
Weighted average number shares outstanding – basic | 302,170 | 304,936 | 303,031 | 304,810 | |||||||||||
Basic earnings per share attributable to the Company’s common stockholders: | |||||||||||||||
Net income | $ | 0.49 | $ | 0.27 | $ | 0.95 | $ | 0.76 | |||||||
Computation of Diluted Earnings Per Share: | |||||||||||||||
Net income attributable to the Company’s common stockholders for basic earnings per share | $ | 147,184 | $ | 83,370 | $ | 288,466 | $ | 230,327 | |||||||
Allocation of net income to dilutive convertible non-controlling interests | — | — | — | 76 | |||||||||||
Net income attributable to the Company’s common stockholders for diluted earnings per share | $ | 147,184 | $ | 83,370 | $ | 288,466 | $ | 230,403 | |||||||
Weighted average shares outstanding – basic | 302,170 | 304,936 | 303,031 | 304,810 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Conversion of OP Units | — | — | — | 104 | |||||||||||
Equity awards | 212 | 240 | 182 | 261 | |||||||||||
Weighted average shares outstanding – diluted | 302,382 | 305,176 | 303,213 | 305,175 | |||||||||||
Diluted earnings per share attributable to the Company’s common stockholders: | |||||||||||||||
Net income | $ | 0.49 | $ | 0.27 | $ | 0.95 | $ | 0.75 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Computation of Basic Earnings Per Unit: | |||||||||||||||
Net income attributable to Brixmor Operating Partnership LP | $ | 147,346 | $ | 83,380 | $ | 288,730 | $ | 230,473 | |||||||
Non-forfeitable dividends on unvested restricted units | (162 | ) | (10 | ) | (264 | ) | (31 | ) | |||||||
Net income attributable to the Operating Partnership’s common units for basic earnings per unit | $ | 147,184 | $ | 83,370 | $ | 288,466 | $ | 230,442 | |||||||
Weighted average number common units outstanding – basic | 302,170 | 304,936 | 303,031 | 304,914 | |||||||||||
Basic earnings per unit attributable to the Operating Partnership’s common units: | |||||||||||||||
Net income | $ | 0.49 | $ | 0.27 | $ | 0.95 | $ | 0.76 | |||||||
Computation of Diluted Earnings Per Unit: | |||||||||||||||
Net income attributable to the Operating Partnership’s common units for diluted earnings per unit | $ | 147,184 | $ | 83,370 | $ | 288,466 | $ | 230,442 | |||||||
Weighted average common units outstanding – basic | 302,170 | 304,936 | 303,031 | 304,914 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Equity awards | 212 | 240 | 182 | 261 | |||||||||||
Weighted average common units outstanding – diluted | 302,382 | 305,176 | 303,213 | 305,175 | |||||||||||
Diluted earnings per unit attributable to the Operating Partnership’s common units: | |||||||||||||||
Net income | $ | 0.49 | $ | 0.27 | $ | 0.95 | $ | 0.76 |
Year ending December 31, | ||||
2018 (remaining three months) | $ | 1,738 | ||
2019 | 6,912 | |||
2020 | 6,925 | |||
2021 | 7,134 | |||
2022 | 7,209 | |||
Thereafter | 49,573 | |||
Total minimum annual rental commitments | $ | 79,491 |
• | In October 2018, the Company entered into a settlement agreement with the remaining equity investors that elected to opt out of the class action lawsuit with respect to a lawsuit filed by such investors in June 2018. See Note 13 for additional information regarding this settlement. |
• | Expansive Retailer Relationships – We believe that the scale of our asset base and our nationwide footprint represent competitive advantages in supporting the growth objectives of the nation’s largest retailers. We believe that we are one of the largest landlords by GLA to TJX and Kroger, as well as a key landlord to most major grocers and retail category leaders. We believe that our strong relationships with leading retailers afford us insight into their strategies and priority access to their expansion plans. |
• | Fully-Integrated Operating Platform – We manage a fully-integrated operating platform, leveraging our national scope and demonstrating our commitment to operating with a strong regional and local presence. We provide our tenants with dedicated service through both our national accounts leasing team based in New York and our network of four regional offices in Atlanta, Chicago, Philadelphia and San Diego, as well as our 11 leasing and property management satellite offices throughout the country. We believe that this structure enables us to obtain critical national market intelligence while also benefitting from the regional and local expertise of our workforce. |
• | Experienced Management – Senior members of our management team are seasoned real estate operators with extensive public company leadership experience. Our management team has deep industry knowledge and well-established relationships with retailers, brokers and vendors through many years of transactional experience, as well as significant expertise in executing value-enhancing reinvestment opportunities. |
Three Months Ended September 30, 2018 | ||||||||||||||||||||
Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF(1) | Third Party Leasing Commissions PSF | Rent Spread(2) | |||||||||||||||
New, renewal and option leases | 509 | 3,135,370 | $ | 14.54 | $ | 6.97 | $ | 1.31 | 12.1 | % | ||||||||||
New and renewal leases | 436 | 2,238,581 | 15.43 | 9.76 | 1.84 | 13.4 | % | |||||||||||||
New leases | 157 | 875,425 | 14.78 | 21.76 | 4.53 | 39.7 | % | |||||||||||||
Renewal leases | 279 | 1,363,156 | 15.84 | 2.06 | 0.10 | 6.7 | % | |||||||||||||
Option leases | 73 | 896,789 | 12.32 | — | — | 8.6 | % | |||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||||||
Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF(1) | Third Party Leasing Commissions PSF | Rent Spread(2) | |||||||||||||||
New, renewal and option leases | 486 | 3,419,078 | $ | 14.21 | $ | 7.19 | $ | 0.93 | 10.2 | % | ||||||||||
New and renewal leases | 393 | 2,088,931 | 14.99 | 11.76 | 1.52 | 12.7 | % | |||||||||||||
New leases | 158 | 723,207 | 16.89 | 23.39 | 4.19 | 20.7 | % | |||||||||||||
Renewal leases | 235 | 1,365,724 | 13.98 | 5.61 | 0.10 | 10.3 | % | |||||||||||||
Option leases | 93 | 1,330,147 | 12.98 | — | — | 6.5 | % |
(1) | Includes tenant-specific landlord work. |
(2) | Based on comparable leases only. |
Nine Months Ended September 30, 2018 | ||||||||||||||||||||
Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF(1) | Third Party Leasing Commissions PSF | Rent Spread(2) | |||||||||||||||
New, renewal and option leases | 1,525 | 9,276,924 | $ | 14.61 | $ | 7.77 | $ | 1.43 | 12.4 | % | ||||||||||
New and renewal leases | 1,295 | 6,362,370 | 15.74 | 11.27 | 2.06 | 14.7 | % | |||||||||||||
New leases | 484 | 2,931,627 | 14.71 | 22.14 | 4.42 | 35.2 | % | |||||||||||||
Renewal leases | 811 | 3,430,743 | 16.62 | 1.98 | 0.05 | 8.4 | % | |||||||||||||
Option leases | 230 | 2,914,554 | 12.14 | 0.14 | 0.03 | 7.6 | % | |||||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Leases | GLA | New ABR PSF | Tenant Improvements and Allowances PSF(1) | Third Party Leasing Commissions PSF | Rent Spread(2) | |||||||||||||||
New, renewal and option leases | 1,433 | 8,979,557 | $ | 14.44 | $ | 7.34 | $ | 1.05 | 12.2 | % | ||||||||||
New and renewal leases | 1,193 | 5,811,219 | 15.57 | 11.33 | 1.62 | 15.2 | % | |||||||||||||
New leases | 472 | 2,322,509 | 15.92 | 22.87 | 3.90 | 30.6 | % | |||||||||||||
Renewal leases | 721 | 3,488,710 | 15.33 | 3.64 | 0.11 | 10.6 | % | |||||||||||||
Option leases | 240 | 3,168,338 | 12.36 | 0.01 | — | 7.1 | % |
(1) | Includes tenant-specific landlord work. |
(2) | Based on comparable leases only. |
• | During the nine months ended September 30, 2018, we acquired one land parcel, one outparcel building and one outparcel for an aggregate purchase price of $9.0 million. |
• | During the nine months ended September 30, 2017, we acquired one shopping center, one building, two outparcel buildings and two outparcels for an aggregate purchase price of $111.8 million. |
• | During the nine months ended September 30, 2018, we disposed of 42 shopping centers and two partial shopping centers for aggregate net proceeds of $676.5 million resulting in an aggregate gain of $158.5 million and aggregate impairment of $28.4 million. In addition, during the nine months ended September 30, 2018, we received aggregate net proceeds of $0.5 million from previously disposed assets resulting in an aggregate gain of $0.5 million. |
• | During the nine months ended September 30, 2017, we disposed of 14 wholly owned shopping centers and two outparcel buildings for aggregate net proceeds of $228.7 million resulting in an aggregate gain of $54.9 million and aggregate impairment of $0.4 million. In addition, during the nine months ended September 30, 2017, we disposed of our unconsolidated joint venture interest for net proceeds of $12.4 million resulting in a gain of $4.6 million. |
Three Months Ended September 30, | |||||||||||
2018 | 2017 | $ Change | |||||||||
Revenues | |||||||||||
Rental income | $ | 239,217 | $ | 246,578 | $ | (7,361 | ) | ||||
Expense reimbursements | 66,348 | 66,489 | (141 | ) | |||||||
Other revenues | 915 | 1,429 | (514 | ) | |||||||
Total revenues | $ | 306,480 | $ | 314,496 | $ | (8,016 | ) |
Three Months Ended September 30, | |||||||||||
2018 | 2017 | $ Change | |||||||||
Operating expenses | |||||||||||
Operating costs | $ | 31,969 | $ | 30,505 | $ | 1,464 | |||||
Real estate taxes | 44,711 | 45,076 | (365 | ) | |||||||
Depreciation and amortization | 85,183 | 94,239 | (9,056 | ) | |||||||
Provision for doubtful accounts | 3,094 | 1,216 | 1,878 | ||||||||
Impairment of real estate assets | 16,372 | 11,065 | 5,307 | ||||||||
General and administrative | 21,209 | 22,838 | (1,629 | ) | |||||||
Total operating expenses | $ | 202,538 | $ | 204,939 | $ | (2,401 | ) |
Three Months Ended September 30, | |||||||||||
2018 | 2017 | $ Change | |||||||||
Other income (expense) | |||||||||||
Dividends and interest | $ | 156 | $ | 76 | $ | 80 | |||||
Interest expense | (55,364 | ) | (57,410 | ) | 2,046 | ||||||
Gain on sale of real estate assets | 119,333 | 25,942 | 93,391 | ||||||||
Gain (loss) on extinguishment of debt, net | (19,759 | ) | 1,828 | (21,587 | ) | ||||||
Other | (962 | ) | (1,200 | ) | 238 | ||||||
Total other income (expense) | $ | 43,404 | $ | (30,764 | ) | $ | 74,168 |
Three Months Ended September 30, | |||||||||||
2018 | 2017 | $ Change | |||||||||
Equity in income of unconsolidated joint venture | $ | — | $ | 31 | $ | (31 | ) | ||||
Gain on disposition of unconsolidated joint venture interest | — | 4,556 | (4,556 | ) |
Nine Months Ended September 30, | |||||||||||
2018 | 2017 | $ Change | |||||||||
Revenues | |||||||||||
Rental income | $ | 726,549 | $ | 749,976 | $ | (23,427 | ) | ||||
Expense reimbursements | 204,589 | 206,718 | (2,129 | ) | |||||||
Other revenues | 5,547 | 6,426 | (879 | ) | |||||||
Total revenues | $ | 936,685 | $ | 963,120 | $ | (26,435 | ) |
Nine Months Ended September 30, | |||||||||||
2018 | 2017 | $ Change | |||||||||
Operating expenses | |||||||||||
Operating costs | $ | 101,340 | $ | 100,955 | $ | 385 | |||||
Real estate taxes | 135,383 | 135,607 | (224 | ) | |||||||
Depreciation and amortization | 266,900 | 285,040 | (18,140 | ) | |||||||
Provision for doubtful accounts | 6,458 | 4,023 | 2,435 | ||||||||
Impairment of real estate assets | 44,201 | 27,383 | 16,818 | ||||||||
General and administrative | 64,955 | 67,043 | (2,088 | ) | |||||||
Total operating expenses | $ | 619,237 | $ | 620,051 | $ | (814 | ) |
Nine Months Ended September 30, | |||||||||||
2018 | 2017 | $ Change | |||||||||
Other income (expense) | |||||||||||
Dividends and interest | $ | 356 | $ | 234 | $ | 122 | |||||
Interest expense | (165,735 | ) | (170,584 | ) | 4,849 | ||||||
Gain on sale of real estate assets | 159,043 | 54,920 | 104,123 | ||||||||
Gain (loss) on extinguishment of debt, net | (20,182 | ) | 488 | (20,670 | ) | ||||||
Other | (2,200 | ) | (2,591 | ) | 391 | ||||||
Total other income (expense) | $ | (28,718 | ) | $ | (117,533 | ) | $ | 88,815 |
Nine Months Ended September 30, | |||||||||||
2018 | 2017 | $ Change | |||||||||
Equity in income of unconsolidated joint venture | $ | — | $ | 381 | $ | (381 | ) | ||||
Gain on disposition of unconsolidated joint venture interest | — | 4,556 | (4,556 | ) |
• | cash and cash equivalent balances; |
• | operating cash flow; |
• | available borrowings under our existing Unsecured Credit Facility; |
• | issuance of long-term debt; |
• | dispositions; and |
• | issuance of equity securities. |
• | recurring maintenance capital expenditures; |
• | leasing related capital expenditures; |
• | anchor space repositioning, redevelopment, development and other value enhancing capital expenditures; |
• | debt repayments; |
• | acquisitions; |
• | dividend/distribution payments; and |
• | repurchases of equity securities. |
Nine Months Ended September 30, | ||||||||
2018 | 2017 | |||||||
Net cash provided by operating activities | $ | 400,182 | $ | 421,119 | ||||
Net cash provided by (used in) investing activities | 480,070 | (14,135 | ) | |||||
Net cash used in financing activities | (926,010 | ) | (367,835 | ) |
Nine Months Ended September 30, | ||||||||
2018 | 2017 | |||||||
Net cash provided by operating activities | $ | 400,182 | $ | 421,119 | ||||
Net cash provided by (used in) investing activities | 480,071 | (14,132 | ) | |||||
Net cash used in financing activities | (926,006 | ) | (367,834 | ) |
Contractual Obligations (in thousands) | Payment due by period | |||||||||||||||||||||||||||
2018 (Remaining three months) | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | ||||||||||||||||||||||
Debt(1) | $ | 1,877 | $ | 357,738 | $ | 322,569 | $ | 686,225 | $ | 750,000 | $ | 3,025,453 | $ | 5,143,862 | ||||||||||||||
Interest payments(2) | 38,700 | 176,765 | 172,619 | 150,659 | 134,970 | 293,073 | 966,786 | |||||||||||||||||||||
Operating leases | 1,738 | 6,912 | 6,925 | 7,134 | 7,209 | 49,573 | 79,491 | |||||||||||||||||||||
Total | $ | 42,315 | $ | 541,415 | $ | 502,113 | $ | 844,018 | $ | 892,179 | $ | 3,368,099 | $ | 6,190,139 | ||||||||||||||
(1) | Debt includes scheduled principal amortization and maturities for unsecured notes payable, unsecured credit facilities and secured loans. |
(2) | As of September 30, 2018, we incur variable rate interest on (i) the $350.0 million remaining under our $600 Million Term Loan; (ii) $141.0 million outstanding under our Revolving Facility; (iii) a $500.0 million term loan under our Unsecured Credit Facility, and (iv) our $300 Million Term Loan. We have in-place six interest rate swap agreements with an aggregate notional value of $900.0 million, which effectively convert the variable interest payments to fixed interest payments. For a further discussion of these and other factors that could impact interest payments please see Item 7A. “Quantitative and Qualitative Disclosures” in our annual report on Form 10-K for the fiscal year ended December 31, 2017. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 147,346 | $ | 83,380 | $ | 288,730 | $ | 230,473 | ||||||||
Gain on disposition of operating properties | (119,333 | ) | (25,942 | ) | (159,043 | ) | (54,920 | ) | ||||||||
Gain on disposition of unconsolidated joint venture interest | — | (4,556 | ) | — | (4,556 | ) | ||||||||||
Depreciation and amortization-real estate related-continuing operations | 84,028 | 93,299 | 263,616 | 282,240 | ||||||||||||
Depreciation and amortization-real estate related-unconsolidated joint venture | — | — | — | 56 | ||||||||||||
Impairment of operating properties | 16,372 | 11,065 | 44,201 | 27,383 | ||||||||||||
NAREIT FFO | $ | 128,413 | $ | 157,246 | — | $ | 437,504 | $ | 480,676 | |||||||
NAREIT FFO per share/OP Unit – diluted | $ | 0.42 | $ | 0.52 | $ | 1.44 | $ | 1.58 | ||||||||
Weighted average shares/OP Units outstanding – basic and diluted(1) | 302,382 | 305,176 | 303,213 | 305,175 |
(1) | Basic and diluted shares/OP Units outstanding reflects an assumed conversion of vested OP Units to common stock of the Company and the vesting of certain equity awards. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||
Number of properties | 439 | 439 | — | 437 | 437 | — | ||||||||||||||||||||
Percent billed | 89.4 | % | 89.6 | % | (0.2 | %) | 89.4 | % | 89.6 | % | (0.2 | %) | ||||||||||||||
Percent leased | 92.5 | % | 91.6 | % | 0.9 | % | 92.5 | % | 91.6 | % | 0.9 | % | ||||||||||||||
Revenues | ||||||||||||||||||||||||||
Base rent | $ | 215,330 | $ | 209,900 | $ | 5,430 | $ | 636,580 | $ | 624,375 | $ | 12,205 | ||||||||||||||
Ancillary and other | 4,295 | 3,914 | 381 | 12,279 | 10,705 | 1,574 | ||||||||||||||||||||
Expense reimbursements | 63,916 | 61,580 | 2,336 | 190,400 | 187,651 | 2,749 | ||||||||||||||||||||
Percentage rents | 838 | 1,161 | (323 | ) | 5,340 | 5,837 | (497 | ) | ||||||||||||||||||
284,379 | 276,555 | 7,824 | 844,599 | 828,568 | 16,031 | |||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Operating costs | (30,972 | ) | (28,673 | ) | (2,299 | ) | (94,539 | ) | (90,878 | ) | (3,661 | ) | ||||||||||||||
Real estate taxes | (43,023 | ) | (41,777 | ) | (1,246 | ) | (125,997 | ) | (123,619 | ) | (2,378 | ) | ||||||||||||||
Provision for doubtful accounts | (2,850 | ) | (1,041 | ) | (1,809 | ) | (5,539 | ) | (3,623 | ) | (1,916 | ) | ||||||||||||||
(76,845 | ) | (71,491 | ) | (5,354 | ) | (226,075 | ) | (218,120 | ) | (7,955 | ) | |||||||||||||||
Same property NOI | $ | 207,534 | $ | 205,064 | $ | 2,470 | $ | 618,524 | $ | 610,448 | $ | 8,076 | ||||||||||||||
NOI margin | 73.0 | % | 74.1 | % | 73.2 | % | 73.7 | % | ||||||||||||||||||
Expense recovery ratio | 86.4 | % | 87.4 | % | 86.3 | % | 87.5 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income attributable to common stockholders | $ | 147,346 | $ | 83,380 | $ | 288,730 | $ | 230,358 | ||||||||
Adjustments: | ||||||||||||||||
Non-same property NOI | (8,618 | ) | (20,883 | ) | (42,571 | ) | (70,475 | ) | ||||||||
Lease termination fees | (467 | ) | (2,235 | ) | (2,363 | ) | (5,476 | ) | ||||||||
Straight-line rental income, net | (5,015 | ) | (2,401 | ) | (11,896 | ) | (14,486 | ) | ||||||||
Amortization of above- and below-market leases and tenant inducements, net | (5,112 | ) | (6,964 | ) | (18,250 | ) | (21,434 | ) | ||||||||
Fee income | — | (183 | ) | — | (320 | ) | ||||||||||
Straight-line ground rent expense | 40 | 31 | 100 | 104 | ||||||||||||
Depreciation and amortization | 85,183 | 94,239 | 266,900 | 285,040 | ||||||||||||
Impairment of real estate assets | 16,372 | 11,065 | 44,201 | 27,383 | ||||||||||||
General and administrative | 21,209 | 22,838 | 64,955 | 67,043 | ||||||||||||
Total other (income) expense | (43,404 | ) | 30,764 | 28,718 | 117,533 | |||||||||||
Equity in income of unconsolidated joint venture | — | (31 | ) | — | (381 | ) | ||||||||||
Gain on disposition of unconsolidated joint venture interest | — | (4,556 | ) | — | (4,556 | ) | ||||||||||
Net income attributable to non-controlling interests | — | — | — | 76 | ||||||||||||
Preferred stock dividends | — | — | — | 39 | ||||||||||||
Same property NOI | $ | 207,534 | $ | 205,064 | — | $ | 618,524 | $ | 610,448 |
Period | Total Number of Shares Repurchased | Average Price Paid Per Share | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Repurchased (in millions) | ||||||||||
July 1, 2018 to July 31, 2018 | — | $ | — | — | $ | 360.9 | ||||||||
August 1, 2018 to August 31, 2018 | 473,400 | 18.24 | 473,400 | 352.3 | ||||||||||
September 1, 2018 to September 30, 2018 | 2,263,300 | 17.67 | 2,263,300 | 312.3 | ||||||||||
Total | 2,736,700 | $ | 17.77 | 2,736,700 |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Date of Filing | Exhibit Number | Filed Herewith | ||||||
Seventh Supplemental Indenture, dated August 31, 2018, between Brixmor Operating Partnership LP, as issuer, and The Bank of New York Mellon, as trustee | 8-K | 001-36160 | 8/31/2018 | 4.2 | ||||||||
Form of Global Note representing the Floating Rate Notes due 2022 (included in Exhibit 4.1) | 8-K | 001-36160 | 8/31/2018 | 4.3 | ||||||||
Brixmor Property Group Inc. Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Property Group Inc. Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
Brixmor Operating Partnership LP Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | — | — | — | — | x | |||||||
101.INS | XBRL Instance Document | — | — | — | — | x | ||||||
101.SCH | XBRL Taxonomy Extension Schema Document | — | — | — | — | x | ||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | — | — | — | — | x | ||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | — | — | — | — | x | ||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | — | — | — | — | x |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Date of Filing | Exhibit Number | Filed Herewith | ||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | — | — | — | — | x |
BRIXMOR PROPERTY GROUP INC. | ||
Date: October 29, 2018 | By: | /s/ James M. Taylor |
James M. Taylor | ||
Chief Executive Officer and President | ||
(Principal Executive Officer) | ||
Date: October 29, 2018 | By: | /s/ Angela Aman |
Angela Aman | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: October 29, 2018 | By: | /s/ Steven Gallagher |
Steven Gallagher | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) | ||
BRIXMOR OPERATING PARTNERSHIP LP | ||
Date: October 29, 2018 | By: | /s/ James M. Taylor |
James M. Taylor | ||
Chief Executive Officer and President | ||
(Principal Executive Officer) | ||
Date: October 29, 2018 | By: | /s/ Angela Aman |
Angela Aman | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: October 29, 2018 | By: | /s/ Steven Gallagher |
Steven Gallagher | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) | ||
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2018 of Brixmor Property Group Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 29, 2018 | |
/s/ James M. Taylor | |
Chief Executive Officer and President | |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2018 of Brixmor Property Group Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 29, 2018 | |
/s/ Angela Aman | |
Chief Financial Officer | |
(Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2018 of Brixmor Operating Partnership LP; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 29, 2018 | |
/s/ James M. Taylor | |
Chief Executive Officer and President | |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2018 of Brixmor Operating Partnership LP; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 29, 2018 | |
/s/ Angela Aman | |
Chief Financial Officer | |
(Principal Financial Officer) |
• | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable of the Securities Exchange Act of 1934, as amended; and |
• | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
Date: October 29, 2018 | |
/s/ James M. Taylor | |
Chief Executive Officer and President | |
(Principal Executive Officer) | |
/s/ Angela Aman | |
Chief Financial Officer | |
(Principal Financial Officer) |
• | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable of the Securities Exchange Act of 1934, as amended; and |
• | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership for the periods presented therein. |
Date: October 29, 2018 | |
/s/ James M. Taylor | |
Chief Executive Officer and President | |
(Principal Executive Officer) | |
/s/ Angela Aman | |
Chief Financial Officer | |
(Principal Financial Officer) |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 01, 2018 |
|
Entity Registrant Name | Brixmor Property Group Inc. | |
Entity Central Index Key | 0001581068 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 299,806,785 | |
Brixmor Operating Partnership LP | ||
Entity Registrant Name | Brixmor Operating Partnership LP | |
Entity Central Index Key | 0001630031 | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Allowance for doubtful accounts receivable | $ 18,947 | $ 17,205 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued | 305,118,890 | 304,947,144 |
Common stock, shares outstanding | 299,891,880 | 304,620,186 |
Brixmor Operating Partnership LP | ||
Allowance for doubtful accounts receivable | $ 18,947 | $ 17,205 |
Common stock, shares issued | 305,118,890 | 304,947,144 |
Common stock, shares outstanding | 299,891,880 | 304,620,186 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenues | ||||
Rental income | $ 239,217 | $ 246,578 | $ 726,549 | $ 749,976 |
Expense reimbursements | 66,348 | 66,489 | 204,589 | 206,718 |
Other revenues | 915 | 1,429 | 5,547 | 6,426 |
Total revenues | 306,480 | 314,496 | 936,685 | 963,120 |
Operating expenses | ||||
Operating costs | 31,969 | 30,505 | 101,340 | 100,955 |
Real estate taxes | 44,711 | 45,076 | 135,383 | 135,607 |
Depreciation and amortization | 85,183 | 94,239 | 266,900 | 285,040 |
Provision for doubtful accounts | 3,094 | 1,216 | 6,458 | 4,023 |
Impairment of real estate assets | 16,372 | 11,065 | 44,201 | 27,383 |
General and administrative | 21,209 | 22,838 | 64,955 | 67,043 |
Total operating expenses | 202,538 | 204,939 | 619,237 | 620,051 |
Other income (expense) | ||||
Dividends and interest | 156 | 76 | 356 | 234 |
Interest expense | (55,364) | (57,410) | (165,735) | (170,584) |
Gain on sale of real estate assets | 119,333 | 25,942 | 159,043 | 54,920 |
Gain (loss) on extinguishment of debt, net | (19,759) | 1,828 | (20,182) | 488 |
Other | (962) | (1,200) | (2,200) | (2,591) |
Total other income (expense) | 43,404 | (30,764) | (28,718) | (117,533) |
Income before equity in income of unconsolidated joint venture | 147,346 | 78,793 | 288,730 | 225,536 |
Equity in income of unconsolidated joint venture | 0 | 31 | 0 | 381 |
Gain on disposition of unconsolidated joint venture interest | 0 | 4,556 | 0 | 4,556 |
Net income | 147,346 | 83,380 | 288,730 | 230,473 |
Net income attributable to non-controlling interests | 0 | 0 | 0 | (76) |
Net income attributable to Brixmor Property Group Inc. | 147,346 | 83,380 | 288,730 | 230,397 |
Preferred stock dividends | 0 | 0 | 0 | (39) |
Net income attributable to common stockholders | $ 147,346 | $ 83,380 | $ 288,730 | $ 230,358 |
Net income attributable to common stockholders: | ||||
Basic (usd per share) | $ 0.49 | $ 0.27 | $ 0.95 | $ 0.76 |
Diluted (usd per share) | $ 0.49 | $ 0.27 | $ 0.95 | $ 0.75 |
Weighted average shares: | ||||
Basic (in shares) | 302,170 | 304,936 | 303,031 | 304,810 |
Diluted (in shares) | 302,382 | 305,176 | 303,213 | 305,175 |
Brixmor Operating Partnership LP | ||||
Revenues | ||||
Rental income | $ 239,217 | $ 246,578 | $ 726,549 | $ 749,976 |
Expense reimbursements | 66,348 | 66,489 | 204,589 | 206,718 |
Other revenues | 915 | 1,429 | 5,547 | 6,426 |
Total revenues | 306,480 | 314,496 | 936,685 | 963,120 |
Operating expenses | ||||
Operating costs | 31,969 | 30,505 | 101,340 | 100,955 |
Real estate taxes | 44,711 | 45,076 | 135,383 | 135,607 |
Depreciation and amortization | 85,183 | 94,239 | 266,900 | 285,040 |
Provision for doubtful accounts | 3,094 | 1,216 | 6,458 | 4,023 |
Impairment of real estate assets | 16,372 | 11,065 | 44,201 | 27,383 |
General and administrative | 21,209 | 22,838 | 64,955 | 67,043 |
Total operating expenses | 202,538 | 204,939 | 619,237 | 620,051 |
Other income (expense) | ||||
Dividends and interest | 156 | 76 | 356 | 234 |
Interest expense | (55,364) | (57,410) | (165,735) | (170,584) |
Gain on sale of real estate assets | 119,333 | 25,942 | 159,043 | 54,920 |
Gain (loss) on extinguishment of debt, net | (19,759) | 1,828 | (20,182) | 488 |
Other | (962) | (1,200) | (2,200) | (2,591) |
Total other income (expense) | 43,404 | (30,764) | (28,718) | (117,533) |
Income before equity in income of unconsolidated joint venture | 147,346 | 78,793 | 288,730 | 225,536 |
Equity in income of unconsolidated joint venture | 0 | 31 | 0 | 381 |
Gain on disposition of unconsolidated joint venture interest | 0 | 4,556 | 0 | 4,556 |
Net income | $ 147,346 | $ 83,380 | $ 288,730 | $ 230,473 |
Net income attributable to common stockholders: | ||||
Basic (usd per share) | $ 0.49 | $ 0.27 | $ 0.95 | $ 0.76 |
Diluted (usd per share) | $ 0.49 | $ 0.27 | $ 0.95 | $ 0.76 |
Weighted average shares: | ||||
Basic (in shares) | 302,170 | 304,936 | 303,031 | 304,914 |
Diluted (in shares) | 302,382 | 305,176 | 303,213 | 305,175 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Sep. 30, 2017 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends, per common share | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.260 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Interest paid, capitalized | $ 1,798 | $ 2,268 |
Brixmor Operating Partnership LP | ||
Interest paid, capitalized | $ 1,798 | $ 2,268 |
Nature of Business and Financial Statement Presentation |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business and Financial Statement Presentation | Nature of Business and Financial Statement Presentation Description of Business Brixmor Property Group Inc. and subsidiaries (collectively, the “Parent Company”) is an internally-managed real estate investment trust (“REIT”). Brixmor Operating Partnership LP and subsidiaries (collectively, the “Operating Partnership”) is the entity through which the Parent Company conducts substantially all of its operations and owns substantially all of its assets. The Parent Company owns 100% of the common stock of BPG Subsidiary Inc. (“BPG Sub”), which, in turn, is the sole member of Brixmor OP GP LLC (the “General Partner”), the sole general partner of the Operating Partnership. The Parent Company engages in the ownership, management, leasing, acquisition, disposition and redevelopment of retail shopping centers through the Operating Partnership, and has no other substantial assets or liabilities other than through its investment in the Operating Partnership. The Parent Company, the Operating Partnership and their controlled subsidiaries on a consolidated basis (collectively the “Company” or “Brixmor”) believes it owns and operates one of the largest open air retail portfolios by gross leasable area (“GLA”) in the United States (“U.S.”), comprised primarily of community and neighborhood shopping centers. As of September 30, 2018, the Company’s portfolio was comprised of 445 shopping centers (the “Portfolio”) totaling approximately 77 million square feet of gross leasable area. The Company’s high quality national Portfolio is primarily located within established trade areas in the top 50 Metropolitan Statistical Areas, and our shopping centers are primarily anchored by non-discretionary and value-oriented retailers, as well as consumer-oriented service providers. The Company does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company has a single reportable segment for disclosure purposes in accordance with U.S. generally accepted accounting principles (“GAAP”). Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the unaudited Condensed Consolidated Financial Statements for the periods presented have been included. The operating results for the periods presented are not necessarily indicative of the results that may be expected for a full fiscal year. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2017 and accompanying notes included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2018. Certain prior period balances in the accompanying unaudited Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current period presentation for the adoption of Accounting Standards Update (“ASU”) 2016-15, “Statement of Cash Flows (Topic 230).” Additionally, certain prior period balances in the accompanying unaudited Condensed Consolidated Statements of Changes in Equity and Capital have been included to conform to the current period presentation for the updates made under SEC Regulation S-X, Rule 3-04, which upon effectiveness in November 2018, will require interim reporting of changes in equity for all periods presented. Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Parent Company, the Operating Partnership, each of their wholly owned subsidiaries and all other entities in which they have a controlling financial interest. The portions of consolidated entities not owned by the Parent Company and the Operating Partnership are presented as non-controlling interests as of and during the periods presented. All intercompany transactions have been eliminated. Income Taxes The Parent Company has elected to qualify as a REIT in accordance with the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, the Parent Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute to its stockholders at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains. It is management’s intention to adhere to these requirements and maintain the Parent Company’s REIT status. As a REIT, the Parent Company generally will not be subject to U.S. federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under the Code. The Parent Company conducts substantially all of its operations through the Operating Partnership which is organized as a limited partnership and treated as a pass-through entity for U.S. federal tax purposes. Therefore, U.S. federal income taxes on the Company’s taxable income do not materially impact the unaudited Condensed Consolidated Financial Statements of the Company. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal taxes at regular corporate rates (including any applicable alternative minimum tax for tax years beginning before December 31, 2017) and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Parent Company qualifies for taxation as a REIT, the Company is subject to certain state and local taxes on its income and property, and to U.S. federal income and excise taxes on its undistributed taxable income. The Parent Company has elected to treat certain of its subsidiaries as taxable REIT subsidiaries (“TRS”), and the Parent Company may in the future elect to treat newly formed and/or existing subsidiaries as TRSs. A TRS may participate in non-real estate-related activities and/or perform non-customary services for tenants and is subject to certain limitations under the Code. A TRS is subject to U.S. federal and state income taxes. Income taxes related to the Parent Company’s TRSs do not materially impact the unaudited Condensed Consolidated Financial Statements of the Company. The Company has considered the tax positions taken for the open tax years and has concluded that no provision for income taxes related to uncertain tax positions is required in the Company’s unaudited Condensed Consolidated Financial Statements as of September 30, 2018 and December 31, 2017. Open tax years generally range from 2014 through 2017, but may vary by jurisdiction and issue. New Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-13, “Fair Value Measurement (Topic 820).” ASU 2018-13 amends certain disclosure requirements regarding the fair value hierarchy of investments in accordance with GAAP, particularly the significant unobservable inputs used to value investments within Level 3 of the fair value hierarchy. The standard is effective on January 1, 2020, with early adoption permitted. The Company does not expect the adoption of ASU 2018-13 to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815).” ASU 2017-12 amends guidance to more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. ASU 2017-12 was early adopted by the Company on January 1, 2018. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718).” ASU 2017-09 clarifies guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard became effective for the Company on January 1, 2018. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In February 2017, the FASB issued ASU 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20).” ASU 2017-05 focuses on recognizing gains and losses from the transfer of nonfinancial assets with noncustomers. It provides guidance as to the definition of an “in substance nonfinancial asset,” and provides guidance for sales of real estate, including partial sales. The standard became effective for the Company on January 1, 2018 in conjunction with ASU 2014-09 and the Company applied the same transition method as ASU 2014-09. The Company did not record any cumulative adjustment in connection with the adoption of the new pronouncement. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230).” ASU 2016-15 provides classification guidance for certain cash receipts and cash payments including payment of debt extinguishment costs, settlement of zero-coupon debt instruments, insurance claim payments and distributions from equity method investees. The standard became effective for the Company on January 1, 2018. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to recognize a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The pronouncement requires a modified retrospective method of adoption and is effective on January 1, 2019, with early adoption permitted. The Company will continue to evaluate the effect the adoption of ASU 2016-02 will have on the unaudited Condensed Consolidated Financial Statements of the Company. However, the Company currently believes that the adoption of ASU 2016-02 will not have a material impact for operating leases where it is a lessor and will continue to record revenues from rental properties for its operating leases on a straight-line basis. However, for leases where the Company is a lessee, primarily for the Company’s ground leases and administrative office leases, the Company will be required to record a lease liability and a right of use asset on its unaudited Condensed Consolidated Balance Sheets at fair value upon adoption. In addition, direct internal leasing overhead costs will continue to be capitalized, however, indirect internal leasing overhead costs previously capitalized will be expensed under ASU 2016-02. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 contains a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The pronouncement allows either a full or modified retrospective method of adoption. The standard became effective for the Company on January 1, 2018 and the Company elected the modified retrospective approach of adoption, which requires a cumulative adjustment as of the date of the adoption, if applicable. The Company did not record any such cumulative adjustment in connection with the adoption of the new pronouncement. Substantially all of the Company’s tenant-related revenue is recognized pursuant to lease agreements and is out of the scope of ASU 2014-09 and falls instead under ASU 2016-02, which is discussed above and will not be effective until January 1, 2019. As a result, the Company determined that ASU 2014-09 did not have a material impact on the process for, timing of, and presentation and disclosure of revenue recognition from contracts with tenants and other customers. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they either are not relevant to the Company, or they are not expected to have a material effect on the unaudited Condensed Consolidated Financial Statements of the Company. |
Acquisition of Real Estate |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Real Estate | Acquisition of Real Estate During the nine months ended September 30, 2018, the Company acquired the following assets, in separate transactions:
During the nine months ended September 30, 2017, the Company acquired the following assets, in separate transactions:
The aggregate purchase price of the assets acquired during the nine months ended September 30, 2018 and 2017, respectively, has been allocated as follows:
During the three and nine months ended September 30, 2018, the Company incurred the following transaction costs:
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Dispositions and Assets Held for Sale |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions and Assets Held for Sale | Dispositions and Assets Held for Sale During the three months ended September 30, 2018, the Company disposed of 26 shopping centers and two partial shopping centers for aggregate net proceeds of $437.4 million resulting in an aggregate gain of $119.3 million and aggregate impairment of $4.2 million. During the nine months ended September 30, 2018, the Company disposed of 42 shopping centers and two partial shopping centers for aggregate net proceeds of $676.5 million resulting in an aggregate gain of $158.5 million and aggregate impairment of $28.4 million. In addition, during the nine months ended September 30, 2018, the Company received net proceeds of $0.5 million from previously disposed assets resulting in a gain of $0.5 million. During the three months ended September 30, 2017, the Company disposed of eight wholly owned shopping centers for aggregate net proceeds of $121.4 million resulting in an aggregate gain of $25.9 million and aggregate impairment of $0.4 million. During the nine months ended September 30, 2017, the Company disposed of 14 wholly owned shopping centers and two outparcel buildings for aggregate net proceeds of $228.7 million resulting in an aggregate gain of $54.9 million and aggregate impairment of $0.4 million. During the three and nine months ended September 30, 2017, the Company disposed of its unconsolidated joint venture interest for net proceeds of $12.4 million resulting in a gain of $4.6 million. As of September 30, 2018 and December 31, 2017, the Company had six properties and one property held for sale, respectively. The following table presents the assets and liabilities associated with the properties classified as held for sale:
There were no discontinued operations for the three and nine months ended September 30, 2018 and 2017 as none of the dispositions represented a strategic shift in the Company’s business that would qualify as discontinued operations. |
Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate The Company’s components of Real estate, net consisted of the following:
In addition, as of September 30, 2018 and December 31, 2017, the Company had intangible liabilities relating to below-market leases of $408.8 million and $463.3 million, respectively, and accumulated accretion of $271.6 million and $281.5 million, respectively. These intangible liabilities are included in Accounts payable, accrued expenses and other liabilities in the Company’s unaudited Condensed Consolidated Balance Sheets. These intangible assets are accreted over the term of each related lease. Below-market lease accretion income, net of above-market lease amortization expense for the three months ended September 30, 2018 and 2017 was $5.8 million and $7.6 million, respectively. Below-market lease accretion income, net of above-market lease amortization expense for the nine months ended September 30, 2018 and 2017 was $20.6 million and $23.0 million, respectively. These amounts are included in Rental income in the Company’s unaudited Condensed Consolidated Statements of Operations. Amortization expense associated with in-place lease value for the three months ended September 30, 2018 and 2017 was $8.0 million and $10.8 million, respectively. Amortization expense associated with in-place lease value for the nine months ended September 30, 2018 and 2017 was $27.2 million and $36.3 million, respectively. These amounts are included in Depreciation and amortization in the Company’s unaudited Condensed Consolidated Statements of Operations. The Company’s estimated below-market lease accretion income, net of above-market lease amortization expense, and in-place lease amortization expense for the next five years are as follows:
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Impairments |
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Impairment of Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairments | Impairments On a periodic basis, management assesses whether there are any indicators, including changes in property operating performance, anticipated holding period and/or general market conditions, that the value of the Company’s real estate assets (including any related intangible assets or liabilities) may be impaired. If management determines that the carrying value of a real estate asset is impaired, a loss is recognized for the excess of its carrying amount over its fair value. The Company recognized the following impairments during the three months ended September 30, 2018:
The Company recognized the following impairments during the nine months ended September 30, 2018:
The Company recognized the following impairments during the three months ended September 30, 2017:
The Company recognized the following impairments during the nine months ended September 30, 2017:
The Company can provide no assurance that material impairment charges with respect to its Portfolio will not occur in future periods. See Note 3 for additional information regarding impairment charges taken in connection with the Company’s dispositions. See Note 8 for additional information regarding the fair value of operating properties which have been impaired. |
Financial Instruments - Derivatives and Hedging |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments - Derivatives and Hedging | Financial Instruments – Derivatives and Hedging The Company’s use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes. In certain situations, the Company may enter into derivative financial instruments such as interest rate swap and interest rate cap agreements that result in the receipt and/or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. Cash Flow Hedges of Interest Rate Risk Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchanging the underlying notional amount. The Company utilizes interest rate swaps to partially hedge the cash flows associated with variable LIBOR based interest rate debt. During the three and nine months ended September 30, 2018, the Company did not enter into any new interest rate swap agreements. Detail on the Company’s interest rate derivatives designated as cash flow hedges outstanding as of September 30, 2018 and December 31, 2017 is as follows:
The Company has elected to present its interest rate derivatives on its unaudited Condensed Consolidated Balance Sheets on a gross basis as interest rate swap assets and interest rate swap liabilities. Detail on the Company’s fair value of interest rate derivatives on a gross and net basis as of September 30, 2018 and December 31, 2017, respectively, is as follows:
The gross derivative assets are included in Other assets and the gross derivative liabilities are included in Accounts payable, accrued expenses and other liabilities on the Company’s unaudited Condensed Consolidated Balance Sheets. All of the Company’s outstanding interest rate swap agreements for the periods presented were designated as cash flow hedges of interest rate risk. The fair value of the Company’s interest rate derivatives is determined using market standard valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. These inputs are classified as Level 2 of the fair value hierarchy. The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognized in other comprehensive income (“OCI”) and is reclassified into earnings as interest expense in the period that the hedged forecasted transaction affects earnings. The effective portion of the Company’s interest rate swaps that was recognized in the Company’s unaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2018 and 2017 is as follows:
The Company estimates that $10.5 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense over the next twelve months. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Company’s cash flow hedges during the three and nine months ended September 30, 2018 and 2017. Non-Designated (Mark-to Market) Hedges of Interest Rate Risk The Company does not use derivatives for trading or speculative purposes. As of September 30, 2018 and December 31, 2017, the Company did not have any non-designated hedges. Credit-risk-related Contingent Features The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on certain of its indebtedness and the indebtedness has been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company were to breach any of the contractual provisions of the derivative contracts, it would be required to settle its obligations under the agreements at their termination value including accrued interest. |
Debt Obligations |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | Debt Obligations As of September 30, 2018 and December 31, 2017, the Company had the following indebtedness outstanding:
2018 Debt Transactions In August 2018, the Operating Partnership issued $250.0 million aggregate principal amount of Floating Rate Senior Notes due 2022 (the “2022 Notes”), the net proceeds of which were used to repay a portion of the Company’s $600 Million Term Loan maturing March 18, 2019. The 2022 Notes bear interest at a rate of three-month U.S. Dollar LIBOR, reset quarterly, plus 105 basis points, payable quarterly in arrears on February 1, May 1, August 1 and November 1 of each year, commencing November 1, 2018. The 2022 Notes will mature on February 1, 2022. The 2022 Notes are the Operating Partnership’s unsecured and unsubordinated obligations and rank equally in right of payment with all of the Operating Partnership’s existing and future senior unsecured and unsubordinated indebtedness. The Operating Partnership may not redeem the 2022 Notes prior to the maturity date. During the nine months ended September 30, 2018, the Company repaid $435.0 million of unsecured term loans and $505.5 million of secured loans. These repayments were funded primarily with disposition proceeds, proceeds from the issuance of the 2022 Notes, and $141.0 million of borrowings under the Company’s unsecured revolving credit facility, net of repayments. Additionally, during the nine months ended September 30, 2018, the Company recognized a $20.2 million loss on extinguishment of debt, net as a result of debt transactions. Loss on extinguishment of debt, net includes $27.6 million of prepayment costs, partially offset by $7.4 million of accelerated unamortized debt premiums, net of discounts and debt issuance costs. Prepayment costs include $5.0 million of legal defeasance fees related to a secured loan with a principal balance of $93.3 million. Pursuant to the terms of the Company’s unsecured debt agreements, the Company among other things is subject to maintenance of various financial covenants. The Company was in compliance with these covenants as of September 30, 2018. Debt Maturities As of September 30, 2018 and December 31, 2017, the Company had accrued interest of $26.4 million and $35.9 million outstanding, respectively. As of September 30, 2018, scheduled amortization and maturities of the Company’s outstanding debt obligations were as follows:
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Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | Fair Value Disclosures All financial instruments of the Company are reflected in the accompanying unaudited Condensed Consolidated Balance Sheets at amounts which, in management’s judgment, reasonably approximate their fair values, except those instruments listed below:
As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy is included in GAAP that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs that are classified within Level 3 of the hierarchy). In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The valuation methodology used to estimate the fair value of the Company’s debt obligations is based on a discounted cash flow analysis, with assumptions that include credit spreads, interest rate curves, estimated property values, loan amounts and maturity dates. Based on these inputs, the Company has determined that the valuations of its debt obligations are classified within Level 3 of the fair value hierarchy. Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition. Recurring Fair Value The Company’s marketable securities and interest rate derivatives are measured and recognized at fair value on a recurring basis. The valuations of the Company’s marketable securities are based primarily on publicly traded market values in active markets and are classified within Level 1 or 2 of the fair value hierarchy. See Note 6 for fair value information regarding the Company’s interest rate derivatives. The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured and recognized at fair value on a recurring basis:
Non-Recurring Fair Value On a non-recurring basis, the Company evaluates the carrying value of its properties when events or changes in circumstances indicate that the carrying value may not be recoverable. Fair value is determined by purchase price offers, market comparable data, third party appraisals or by discounted cash flow analysis. The cash flows utilized in such analyses are comprised of unobservable inputs which include forecasted rental revenue and expenses based upon market conditions and future expectations. Capitalization rates and discount rates utilized in these models are based upon unobservable rates that we believe to be within a reasonable range of current market rates for the respective properties. Based on these inputs, the Company has determined that the valuations of these properties are classified within Level 3 of the fair value hierarchy. The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a non-recurring basis. The table includes information related to properties that were remeasured to fair value as a result of impairment testing during the nine months ended September 30, 2018 and during the year ended December 31, 2017, excluding the properties sold prior to September 30, 2018 and December 31, 2017, respectively:
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Equity and Capital |
9 Months Ended |
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Sep. 30, 2018 | |
Equity [Abstract] | |
Equity and Capital | Equity and Capital Share Repurchase Program In December 2017, the Board of Directors authorized a share repurchase program for up to $400.0 million of the Company’s common stock. The program is scheduled to expire on December 5, 2019, unless extended by the Board of Directors. During the nine months ended September 30, 2018, the Company repurchased 4.9 million shares of common stock under the program at an average price per share of $16.71 for a total of $81.9 million, excluding commissions. The Company incurred commissions of $0.1 million in conjunction with the program for the nine months ended September 30, 2018. Common Stock In connection with the vesting of restricted stock units (“RSUs”) under the Company’s equity-based compensation plan, the Company withholds shares to satisfy statutory minimum tax withholding obligations. During the nine months ended September 30, 2018 and 2017, the Company withheld 0.1 million shares. Dividends and Distributions During the three months ended September 30, 2018 and 2017, the Company declared common stock dividends and OP Unit distributions of $0.275 per share/unit and $0.260 per share/unit, respectively. As of September 30, 2018 and December 31, 2017, the Company had declared but unpaid common stock dividends and OP Unit distributions of $84.6 million and $85.6 million, respectively. These amounts are included in Accounts payable, accrued expenses and other liabilities on the Company’s unaudited Condensed Consolidated Balance Sheets. Non-controlling interests As of September 30, 2018, the Parent Company beneficially owned, through its direct and indirect interest in BPG Sub and the General Partner, 100.0% of the outstanding OP Units. During the nine months ended September 30, 2017, the Company exchanged 0.4 million shares of the Company’s common stock for an equal number of outstanding OP Units held by certain members of the Parent Company’s current and former management. |
Stock Based Compensation |
9 Months Ended |
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Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation During the year ended December 31, 2013, the Board of Directors approved the 2013 Omnibus Incentive Plan (the “Plan”). The Plan provides for a maximum of 15.0 million shares of the Company’s common stock to be issued for qualified and non-qualified options, stock appreciation rights, restricted stock and RSUs, OP Units, performance awards and other stock-based awards. During the nine months ended September 30, 2018 and the year ended December 31, 2017, the Company granted RSUs to certain employees. The RSUs are divided into multiple tranches, which are all subject to service-based vesting conditions. Certain tranches are also subject to performance-based or market-based vesting conditions, which contain a threshold, target, and maximum number of units which can be earned. The number of units actually earned for each tranche is determined based on performance during a specified performance period. Tranches that only have a service-based component can only earn a target number of units. The aggregate number of RSUs granted, assuming that the target level of performance is achieved, was 0.8 million and 0.6 million for the nine months ended September 30, 2018 and year ended December 31, 2017, respectively, with vesting periods ranging from one to five years. For the performance-based and service-based RSUs granted under the Plan, fair value is based on the Company grant date stock price. For the market-based RSUs granted during the nine months ended September 30, 2018 and year ended December 31, 2017, the Company calculated the grant date fair values per unit using a Monte Carlo simulation based on the probability of satisfying the market performance hurdles over the remainder of the performance period based on the Company’s historical common stock performance relative to the other companies within the FTSE NAREIT Equity Shopping Centers Index as well as the following significant assumptions: (i) volatility of 29.0% to 32.0% and 22.0% to 23.0%, respectively; (ii) a weighted average risk-free interest rate of 2.43% to 2.53% and 1.20% to 1.41%, respectively; and (iii) the Company’s weighted average common stock dividend yield of 5.6% and 4.0% to 4.6%, respectively. During the three months ended September 30, 2018 and 2017, the Company recognized $2.7 million and $2.9 million of equity compensation expense, respectively. During the nine months ended September 30, 2018 and 2017, the Company recognized $8.0 million and $7.8 million of equity compensation expense, respectively. These amounts are included in General and administrative expense in the Company’s unaudited Condensed Consolidated Statements of Operations. As of September 30, 2018, the Company had $14.7 million of total unrecognized compensation expense related to unvested stock compensation expected to be recognized over a weighted average period of approximately 2.2 years. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings per Share Basic earnings per share (“EPS”) is calculated by dividing net income attributable to the Company’s common stockholders, including any participating securities, by the weighted average number of shares outstanding for the period. Certain restricted shares issued pursuant to the Company’s share-based compensation program are considered participating securities, as such stockholders have rights to receive non-forfeitable dividends. Fully-diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock. Unvested RSUs are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the Company’s common stock. The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands, except per share data):
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Earnings per Unit |
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Schedule of Earnings per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Unit | Earnings per Share Basic earnings per share (“EPS”) is calculated by dividing net income attributable to the Company’s common stockholders, including any participating securities, by the weighted average number of shares outstanding for the period. Certain restricted shares issued pursuant to the Company’s share-based compensation program are considered participating securities, as such stockholders have rights to receive non-forfeitable dividends. Fully-diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock. Unvested RSUs are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the Company’s common stock. The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands, except per share data):
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Brixmor Operating Partnership LP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Unit | Earnings per Unit Basic earnings per unit is calculated by dividing net income attributable to the Operating Partnership’s common unitholders, including any participating securities, by the weighted average number of partnership common units outstanding for the period. Certain restricted units issued pursuant to the Company’s share-based compensation program are considered participating securities, as such unitholders have rights to receive non-forfeitable dividends. Fully-diluted earnings per unit reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units. Unvested RSUs are not allocated net losses and/or any excess of dividends declared over net income, as such amounts are allocated entirely to the Operating Partnership’s common units. The following table provides a reconciliation of the numerator and denominator of the earnings per unit calculations for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands, except per unit data):
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Commitments and Contingencies |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Legal Matters Except as described below, the Company is not presently involved in any material litigation arising outside the ordinary course of business. However, the Company is involved in routine litigation arising in the ordinary course of business, none of which the Company believes, individually or in the aggregate, taking into account existing reserves, will have a material impact on the Company’s results of operations, cash flows, or financial position. On February 8, 2016, the Company issued a press release and filed a Form 8-K reporting the completion of a review by the Audit Committee of the Company’s Board of Directors that began after the Company received information in late December 2015 through its established compliance processes. The Audit Committee review led the Board of Directors to conclude that specific Company accounting and financial reporting personnel, in certain instances, were smoothing income items, both up and down, between reporting periods in an effort to achieve consistent quarterly same property net operating income growth. As a result of the Audit Committee review and the conclusions reached by the Board of Directors, the Company’s Chief Executive Officer, its President and Chief Financial Officer, its Chief Accounting Officer and Treasurer, and an accounting employee all resigned. Following these resignations the Company appointed a new Interim Chief Executive Officer and President, Interim Chief Financial Officer and Interim Chief Accounting Officer. A new Chief Executive Officer and Chief Financial Officer were appointed effective May 20, 2016. A new Chief Accounting Officer was appointed effective March 8, 2017. Prior to the Company’s February 8, 2016 announcement, the Company voluntarily reported these matters to the SEC. As a result, the SEC and the United States Attorney’s Office for the Southern District of New York are conducting investigations of certain aspects of the Company’s financial reporting and accounting for prior periods and the Company is cooperating fully. On December 13, 2017, the United States District Court for the Southern District of New York granted final approval of the settlement of the previously disclosed putative securities class action complaint filed in March 2016 by the Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds related to the review conducted by the Audit Committee of the Board of Directors. Pursuant to the approved settlement, without any admission of liability, the Company will pay $28.0 million to settle the claims. This amount is within the coverage amount of the Company’s applicable insurance policies and has been funded into escrow by the insurance carriers. The settlement provides for the release of, among others, the Company, its subsidiaries, and their respective current and former officers, directors and employees from the claims that were or could have been asserted in the class action litigation. During the nine months ended September 30, 2018, $8.5 million of the settlement amount was released from escrow per the court approved settlement agreement for the payment of plaintiff’s legal fees. The remaining settlement balance of $19.5 million remains in escrow pending final class distribution. As of September 30, 2018, the $19.5 million amount is included in Accounts payable, accrued expenses and other liabilities in the Company’s unaudited Condensed Consolidated Balance Sheets. Because the settlement amount is within the coverage amount of the Company’s applicable insurance policies, the Company accrued a receivable of $19.5 million as of September 30, 2018. This amount is included in Accounts receivable, net in the Company’s unaudited Condensed Consolidated Balance Sheets. As previously disclosed, certain institutional investors elected to opt out of the class action settlement and accordingly were not bound by the release and will not receive any of the class action settlement proceeds. On June 20, 2018, the Company and the former officers referenced above were named as defendants in a complaint filed by all remaining equity opt out investors in the Supreme Court for the State of New York in New York County. The Complaint, captioned Cohen & Steers Global Realty Shares, Inc., et al v. Brixmor Property Group Inc., et al. (Case No. 653091/2018), was filed on behalf of thirteen commonly managed investment funds that opted out of the federal class action settlement. On October 10, 2018, the Company entered into an agreement to settle these claims for $8.0 million. This amount is within the coverage amount of the Company’s applicable insurance policies. The settlement provides for the release of, among others, the Company, its subsidiaries, and their respective current and former officers, directors and employees from the claims that were or could have been asserted in the opt out lawsuit. Based on current information, the Company accrued $8.0 million as of September 30, 2018 with respect to the settlement. This amount is included in Accounts payable, accrued expenses and other liabilities in the Company's unaudited Condensed Consolidated Balance Sheets. Because the settlement amount is within the coverage amount of the Company’s applicable insurance policies, the Company has accrued a receivable of $8.0 million as of September 30, 2018. This amount is included in Accounts receivable, net in the Company's unaudited Condensed Consolidated Balance Sheets. Leasing commitments The Company periodically enters into ground leases for neighborhood and community shopping centers that it operates and enters into office leases for administrative space. During the three months ended September 30, 2018 and 2017, the Company recognized rent expense associated with these leases of $1.8 million and $1.9 million, respectively. During the nine months ended September 30, 2018 and 2017, the Company recognized rent expense associated with these leases of $5.3 million and $5.6 million, respectively. Minimum annual rental commitments associated with these leases during the next five years and thereafter are as follows:
Environmental matters Under various federal, state and local laws, ordinances and regulations, the Company may be considered an owner or operator of real property or may have arranged for the disposal or treatment of hazardous or toxic substances. As a result, the Company may be liable for certain costs including removal, remediation, government fines and injuries to persons and property. The Company does not believe that any resulting liability from such matters will have a material impact on the Company’s results of operations, cash flows, or financial position. |
Related-Party Transactions |
9 Months Ended |
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Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions In the ordinary course of conducting its business, the Company enters into agreements with its affiliates in relation to the leasing and management of its real estate assets, including real estate assets owned through joint ventures. As of September 30, 2018 and December 31, 2017, there were no material receivables from or payables to related parties. |
Subsequent Events |
9 Months Ended | ||||
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Sep. 30, 2018 | |||||
Subsequent Events [Abstract] | |||||
Subsequent Events | Subsequent Events In preparing the unaudited Condensed Consolidated Financial Statements, the Company has evaluated events and transactions occurring after September 30, 2018 for recognition and/or disclosure purposes. Based on this evaluation, there were no subsequent events from September 30, 2018 through the date the financial statements were issued with the exception of the following:
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Nature of Business and Financial Statement Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Brixmor Property Group Inc. and subsidiaries (collectively, the “Parent Company”) is an internally-managed real estate investment trust (“REIT”). Brixmor Operating Partnership LP and subsidiaries (collectively, the “Operating Partnership”) is the entity through which the Parent Company conducts substantially all of its operations and owns substantially all of its assets. The Parent Company owns 100% of the common stock of BPG Subsidiary Inc. (“BPG Sub”), which, in turn, is the sole member of Brixmor OP GP LLC (the “General Partner”), the sole general partner of the Operating Partnership. The Parent Company engages in the ownership, management, leasing, acquisition, disposition and redevelopment of retail shopping centers through the Operating Partnership, and has no other substantial assets or liabilities other than through its investment in the Operating Partnership. The Parent Company, the Operating Partnership and their controlled subsidiaries on a consolidated basis (collectively the “Company” or “Brixmor”) believes it owns and operates one of the largest open air retail portfolios by gross leasable area (“GLA”) in the United States (“U.S.”), comprised primarily of community and neighborhood shopping centers. As of September 30, 2018, the Company’s portfolio was comprised of 445 shopping centers (the “Portfolio”) totaling approximately 77 million square feet of gross leasable area. The Company’s high quality national Portfolio is primarily located within established trade areas in the top 50 Metropolitan Statistical Areas, and our shopping centers are primarily anchored by non-discretionary and value-oriented retailers, as well as consumer-oriented service providers. The Company does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company has a single reportable segment for disclosure purposes in accordance with U.S. generally accepted accounting principles (“GAAP”). |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the unaudited Condensed Consolidated Financial Statements for the periods presented have been included. The operating results for the periods presented are not necessarily indicative of the results that may be expected for a full fiscal year. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2017 and accompanying notes included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2018. Certain prior period balances in the accompanying unaudited Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current period presentation for the adoption of Accounting Standards Update (“ASU”) 2016-15, “Statement of Cash Flows (Topic 230).” Additionally, certain prior period balances in the accompanying unaudited Condensed Consolidated Statements of Changes in Equity and Capital have been included to conform to the current period presentation for the updates made under SEC Regulation S-X, Rule 3-04, which upon effectiveness in November 2018, will require interim reporting of changes in equity for all periods presented. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Parent Company, the Operating Partnership, each of their wholly owned subsidiaries and all other entities in which they have a controlling financial interest. The portions of consolidated entities not owned by the Parent Company and the Operating Partnership are presented as non-controlling interests as of and during the periods presented. All intercompany transactions have been eliminated. |
Income Taxes | Income Taxes The Parent Company has elected to qualify as a REIT in accordance with the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, the Parent Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute to its stockholders at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains. It is management’s intention to adhere to these requirements and maintain the Parent Company’s REIT status. As a REIT, the Parent Company generally will not be subject to U.S. federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under the Code. The Parent Company conducts substantially all of its operations through the Operating Partnership which is organized as a limited partnership and treated as a pass-through entity for U.S. federal tax purposes. Therefore, U.S. federal income taxes on the Company’s taxable income do not materially impact the unaudited Condensed Consolidated Financial Statements of the Company. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal taxes at regular corporate rates (including any applicable alternative minimum tax for tax years beginning before December 31, 2017) and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Parent Company qualifies for taxation as a REIT, the Company is subject to certain state and local taxes on its income and property, and to U.S. federal income and excise taxes on its undistributed taxable income. The Parent Company has elected to treat certain of its subsidiaries as taxable REIT subsidiaries (“TRS”), and the Parent Company may in the future elect to treat newly formed and/or existing subsidiaries as TRSs. A TRS may participate in non-real estate-related activities and/or perform non-customary services for tenants and is subject to certain limitations under the Code. A TRS is subject to U.S. federal and state income taxes. Income taxes related to the Parent Company’s TRSs do not materially impact the unaudited Condensed Consolidated Financial Statements of the Company. The Company has considered the tax positions taken for the open tax years and has concluded that no provision for income taxes related to uncertain tax positions is required in the Company’s unaudited Condensed Consolidated Financial Statements as of September 30, 2018 and December 31, 2017. Open tax years generally range from 2014 through 2017, but may vary by jurisdiction and issue. |
New Accounting Pronouncements | New Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-13, “Fair Value Measurement (Topic 820).” ASU 2018-13 amends certain disclosure requirements regarding the fair value hierarchy of investments in accordance with GAAP, particularly the significant unobservable inputs used to value investments within Level 3 of the fair value hierarchy. The standard is effective on January 1, 2020, with early adoption permitted. The Company does not expect the adoption of ASU 2018-13 to have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815).” ASU 2017-12 amends guidance to more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. ASU 2017-12 was early adopted by the Company on January 1, 2018. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718).” ASU 2017-09 clarifies guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard became effective for the Company on January 1, 2018. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In February 2017, the FASB issued ASU 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20).” ASU 2017-05 focuses on recognizing gains and losses from the transfer of nonfinancial assets with noncustomers. It provides guidance as to the definition of an “in substance nonfinancial asset,” and provides guidance for sales of real estate, including partial sales. The standard became effective for the Company on January 1, 2018 in conjunction with ASU 2014-09 and the Company applied the same transition method as ASU 2014-09. The Company did not record any cumulative adjustment in connection with the adoption of the new pronouncement. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230).” ASU 2016-15 provides classification guidance for certain cash receipts and cash payments including payment of debt extinguishment costs, settlement of zero-coupon debt instruments, insurance claim payments and distributions from equity method investees. The standard became effective for the Company on January 1, 2018. The Company determined that these changes did not have a material impact on the unaudited Condensed Consolidated Financial Statements of the Company. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to recognize a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The pronouncement requires a modified retrospective method of adoption and is effective on January 1, 2019, with early adoption permitted. The Company will continue to evaluate the effect the adoption of ASU 2016-02 will have on the unaudited Condensed Consolidated Financial Statements of the Company. However, the Company currently believes that the adoption of ASU 2016-02 will not have a material impact for operating leases where it is a lessor and will continue to record revenues from rental properties for its operating leases on a straight-line basis. However, for leases where the Company is a lessee, primarily for the Company’s ground leases and administrative office leases, the Company will be required to record a lease liability and a right of use asset on its unaudited Condensed Consolidated Balance Sheets at fair value upon adoption. In addition, direct internal leasing overhead costs will continue to be capitalized, however, indirect internal leasing overhead costs previously capitalized will be expensed under ASU 2016-02. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 contains a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The pronouncement allows either a full or modified retrospective method of adoption. The standard became effective for the Company on January 1, 2018 and the Company elected the modified retrospective approach of adoption, which requires a cumulative adjustment as of the date of the adoption, if applicable. The Company did not record any such cumulative adjustment in connection with the adoption of the new pronouncement. Substantially all of the Company’s tenant-related revenue is recognized pursuant to lease agreements and is out of the scope of ASU 2014-09 and falls instead under ASU 2016-02, which is discussed above and will not be effective until January 1, 2019. As a result, the Company determined that ASU 2014-09 did not have a material impact on the process for, timing of, and presentation and disclosure of revenue recognition from contracts with tenants and other customers. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they either are not relevant to the Company, or they are not expected to have a material effect on the unaudited Condensed Consolidated Financial Statements of the Company. |
Acquisition of Real Estate (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | During the nine months ended September 30, 2018, the Company acquired the following assets, in separate transactions:
During the nine months ended September 30, 2017, the Company acquired the following assets, in separate transactions:
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The aggregate purchase price of the assets acquired during the nine months ended September 30, 2018 and 2017, respectively, has been allocated as follows:
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Schedule of Acquisition Related Costs | During the three and nine months ended September 30, 2018, the Company incurred the following transaction costs:
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Dispositions and Assets Held for Sale (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reclassificationa of Disposal Groups, Including Discontinued Operations | As of September 30, 2018 and December 31, 2017, the Company had six properties and one property held for sale, respectively. The following table presents the assets and liabilities associated with the properties classified as held for sale:
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Real Estate (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of real estate properties | The Company’s components of Real estate, net consisted of the following:
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Schedule of expected net amortization expense associated with intangible assets and liabilities | The Company’s estimated below-market lease accretion income, net of above-market lease amortization expense, and in-place lease amortization expense for the next five years are as follows:
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Impairments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impairments | The Company recognized the following impairments during the three months ended September 30, 2018:
The Company recognized the following impairments during the nine months ended September 30, 2018:
The Company recognized the following impairments during the three months ended September 30, 2017:
The Company recognized the following impairments during the nine months ended September 30, 2017:
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Financial Instruments - Derivatives and Hedging (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of interest rate derivatives | Detail on the Company’s interest rate derivatives designated as cash flow hedges outstanding as of September 30, 2018 and December 31, 2017 is as follows:
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Schedule of derivative instruments in Statement of Financial Position, fair value | Detail on the Company’s fair value of interest rate derivatives on a gross and net basis as of September 30, 2018 and December 31, 2017, respectively, is as follows:
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Schedule of Derivatives in Cash Flow Hedging Relationships | The effective portion of the Company’s interest rate swaps that was recognized in the Company’s unaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2018 and 2017 is as follows:
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Debt Obligations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt obligations under various arrangements with financial institutions | As of September 30, 2018 and December 31, 2017, the Company had the following indebtedness outstanding:
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Future expected/scheduled maturities of outstanding debt and capital lease obligations | As of September 30, 2018 and December 31, 2017, the Company had accrued interest of $26.4 million and $35.9 million outstanding, respectively. As of September 30, 2018, scheduled amortization and maturities of the Company’s outstanding debt obligations were as follows:
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Fair Value Disclosures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Fair Value Debt Obligation | All financial instruments of the Company are reflected in the accompanying unaudited Condensed Consolidated Balance Sheets at amounts which, in management’s judgment, reasonably approximate their fair values, except those instruments listed below:
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured and recognized at fair value on a recurring basis:
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Fair Value Measurements, Nonrecurring | The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a non-recurring basis. The table includes information related to properties that were remeasured to fair value as a result of impairment testing during the nine months ended September 30, 2018 and during the year ended December 31, 2017, excluding the properties sold prior to September 30, 2018 and December 31, 2017, respectively:
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share, basic and diluted | The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands, except per share data):
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Earnings per Unit (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per unit, basic and diluted | The following table provides a reconciliation of the numerator and denominator of the EPS calculations for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands, except per share data):
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Brixmor Operating Partnership LP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per unit, basic and diluted | The following table provides a reconciliation of the numerator and denominator of the earnings per unit calculations for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands, except per unit data):
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum annual rental commitments associated with these leases during the next five years and thereafter are as follows:
|
Nature of Business and Financial Statement Presentation (Details) |
Sep. 30, 2018
ft²
Property
|
Sep. 30, 2017
ft²
|
---|---|---|
Nture of Oerations and Financial Statements Presentation [Line Items] | ||
GLA | 16,449 | 444,779 |
Shopping Center | ||
Nture of Oerations and Financial Statements Presentation [Line Items] | ||
Number of real estate properties | Property | 445 | |
GLA | 77,000,000 | |
Parent Company | BPG Sub | ||
Nture of Oerations and Financial Statements Presentation [Line Items] | ||
Ownership percentage | 100.00% |
Acquisition of Real Estate (Purchase Price) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Above market leases | ||
Liabilities | ||
Amortization period | 5 years | |
In-place lease amortization expense | ||
Liabilities | ||
Amortization period | 4 years 9 months 18 days | 6 years 7 months 6 days |
Below market leases | ||
Liabilities | ||
Amortization period | 4 years 9 months 18 days | 16 years 8 months 12 days |
Acquired Properties | ||
Assets | ||
Land | $ 6,078 | $ 19,240 |
Buildings | 2,448 | 75,286 |
Building Improvements | 238 | 9,177 |
Above market rents | 0 | 2,381 |
In-place leases | 304 | 8,608 |
Total assets | 9,068 | 114,692 |
Liabilities | ||
Below market leases | 74 | 2,902 |
Other liabilities | 0 | 0 |
Total liabilities | 74 | 2,902 |
Net assets acquired | $ 8,994 | $ 111,790 |
Acquisition of Real Estate (Acquisition Related Costs) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Real Estate Properties [Line Items] | ||||
Total transaction costs | $ 136 | $ 204 | $ 467 | $ 576 |
Other | ||||
Real Estate Properties [Line Items] | ||||
Total transaction costs | 95 | 204 | 294 | 204 |
Real estate, net | ||||
Real Estate Properties [Line Items] | ||||
Total transaction costs | $ 41 | $ 0 | $ 173 | $ 372 |
Dispositions and Assets Held for Sale (Held for Sale) (Details) - Held-for-sale $ in Thousands |
Sep. 30, 2018
USD ($)
property
|
Dec. 31, 2017
USD ($)
property
|
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of real estate properties | property | 6 | 1 |
Land | $ 23,092 | $ 3,220 |
Buildings and improvements | 77,995 | 30,758 |
Accumulated depreciation and amortization | (22,232) | (7,464) |
Other assets | 1,471 | 567 |
Real estate, net | 78,855 | 26,514 |
Assets associated with properties held for sale | 80,326 | 27,081 |
Other liabilities | 3,233 | 33 |
Liabilities associated with properties held for sale | $ 3,233 | $ 33 |
Financial Instruments - Derivatives and Hedging (Notional Amount) (Details) |
9 Months Ended | |
---|---|---|
Sep. 30, 2018
USD ($)
derivative_instrument
|
Dec. 31, 2017
USD ($)
derivative_instrument
|
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount expected to be reclassified from accumulated other comprehensive loss in the next twelve months | $ 10,500,000 | |
Interest Rate Swap | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of Instruments | derivative_instrument | 6 | 9 |
Notional Amount | $ 900,000,000 | $ 1,400,000,000 |
Financial Instruments - Derivatives and Hedging (Fair Value) (Details) - Interest Rate Swap - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Gross derivative assets | $ 27,370 | $ 24,420 |
Gross derivative liabilities | 0 | 0 |
Net derivative assets | $ 27,370 | $ 24,420 |
Financial Instruments - Derivatives and Hedging (Cash Flow Hedging Relationship) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Change in unrealized gain (loss) on interest rate swaps | $ 1,868 | $ 132 | $ 12,103 | $ (532) |
Accretion of interest rate swaps to interest expense | (3,110) | (1,094) | (9,153) | (902) |
Change in unrealized gain (loss) on interest rate swaps, net | $ (1,242) | $ (962) | $ 2,950 | $ (1,434) |
Debt Obligations (Maturities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Future expected/scheduled maturities of outstanding debt and capital lease | ||
2018 (remaining three months) | $ 1,877 | |
2019 | 357,738 | |
2020 | 322,569 | |
2021 | 686,225 | |
2022 | 750,000 | |
Thereafter | 3,025,453 | |
Total debt maturities | 5,143,862 | |
Net unamortized discount | (8,648) | |
Net unamortized debt issuance costs | (28,506) | |
Total debt obligations, net | $ 5,106,708 | $ 5,676,238 |
Fair Value Disclosures (Debt Obligations) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Estimated fair value of the Company's debt obligations compared to their carrying amounts | ||
Mortgages and secured loans payable | $ 5,106,708 | $ 5,676,238 |
Total debt obligations, net | 5,106,708 | 5,676,238 |
Carrying Amount | ||
Estimated fair value of the Company's debt obligations compared to their carrying amounts | ||
Mortgages and secured loans payable | 387,750 | 917,945 |
Notes payable | 3,434,595 | 3,182,492 |
Unsecured credit facility and term loan | 1,284,363 | 1,575,801 |
Total debt obligations, net | 5,106,708 | 5,676,238 |
Fair Value | ||
Estimated fair value of the Company's debt obligations compared to their carrying amounts | ||
Mortgages and secured loans payable | 398,423 | 963,702 |
Notes payable | 3,366,004 | 3,224,877 |
Unsecured credit facility and term loan | 1,291,792 | 1,586,206 |
Total debt obligations | $ 5,056,219 | $ 5,774,785 |
Stock Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 15.0 | ||||
Grants in period | 0.8 | 0.6 | |||
Expected dividend rate | 5.60% | ||||
Equity based compensation | $ 2,700 | $ 2,900 | $ 8,006 | $ 7,838 | |
Compensation cost not yet recognized | $ 14,700 | $ 14,700 | |||
Weighted average remaining contractual term | 2 years 2 months 12 days | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Service period | 1 year | ||||
Expected volatility rate | 29.00% | 22.00% | |||
Risk free interest rate | 2.43% | 1.20% | |||
Expected dividend rate | 4.00% | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Service period | 5 years | ||||
Expected volatility rate | 32.00% | 23.00% | |||
Risk free interest rate | 2.53% | 1.41% | |||
Expected dividend rate | 4.60% |
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