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 |
(Urban Edge Properties) | ||||||||||||||
(Urban Edge Properties LP) | ||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number including area code: | |||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
Title of class of registered securities | Trading symbol | Name of exchange on which registered | |||||||||
x | Accelerated Filer | ☐ | Non-Accelerated Filer | ☐ | Smaller Reporting Company | Emerging Growth Company |
Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | x | Smaller Reporting Company | Emerging Growth Company |
Item 1. | Financial Statements | |||||||||||||
Consolidated Financial Statements of Urban Edge Properties: | ||||||||||||||
Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (unaudited) | ||||||||||||||
Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2020 and 2019 (unaudited) | ||||||||||||||
Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2020 and 2019 (unaudited) | ||||||||||||||
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019 (unaudited) | ||||||||||||||
Consolidated Financial Statements of Urban Edge Properties LP: | ||||||||||||||
Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (unaudited) | ||||||||||||||
Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2020 and 2019 (unaudited) | ||||||||||||||
Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2020 and 2019 (unaudited) | ||||||||||||||
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019 (unaudited) | ||||||||||||||
Urban Edge Properties and Urban Edge Properties LP | ||||||||||||||
Notes to Consolidated Financial Statements (unaudited) | ||||||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |||||||||||||
Item 4. | Controls and Procedures | |||||||||||||
PART II | ||||||||||||||
Item 1. | Legal Proceedings | |||||||||||||
Item 1A. | Risk Factors | |||||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||||||
Item 3. | Defaults Upon Senior Securities | |||||||||||||
Item 4. | Mine Safety Disclosures | |||||||||||||
Item 5. | Other Information | |||||||||||||
Item 6. | Exhibits | |||||||||||||
Signatures | ||||||||||||||
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Real estate, at cost: | |||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Construction in progress | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Total | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Real estate, net | |||||||||||
Right-of-use assets | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Tenant and other receivables | |||||||||||
Receivable arising from the straight-lining of rents | |||||||||||
Identified intangible assets, net of accumulated amortization of $ | |||||||||||
Deferred leasing costs, net of accumulated amortization of $ | |||||||||||
Deferred financing costs, net of accumulated amortization of $ | |||||||||||
Prepaid expenses and other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Mortgages payable, net | $ | $ | |||||||||
Unsecured credit facility borrowings | |||||||||||
Lease liabilities | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Identified intangible liabilities, net of accumulated amortization of $ | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Common shares: $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Noncontrolling interests: | |||||||||||
Operating partnership | |||||||||||
Consolidated subsidiaries | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
REVENUE | |||||||||||||||||||||||
Rental revenue | $ | $ | $ | $ | |||||||||||||||||||
Management and development fees | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Real estate taxes | |||||||||||||||||||||||
Property operating | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Casualty and impairment loss, net(1) | |||||||||||||||||||||||
Lease expense | |||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Gain on sale of real estate | |||||||||||||||||||||||
Gain on sale of lease | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest and debt expense | ( | ( | ( | ( | |||||||||||||||||||
Gain on extinguishment of debt | |||||||||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Less net (income) loss attributable to noncontrolling interests in: | |||||||||||||||||||||||
Operating partnership | ( | ( | ( | ||||||||||||||||||||
Consolidated subsidiaries | |||||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | ( | $ | $ | $ | ||||||||||||||||||
Earnings (loss) per common share - Basic: | $ | ( | $ | $ | $ | ||||||||||||||||||
Earnings (loss) per common share - Diluted: | $ | ( | $ | $ | $ | ||||||||||||||||||
Weighted average shares outstanding - Basic | |||||||||||||||||||||||
Weighted average shares outstanding - Diluted |
Common Shares | Noncontrolling Interests (“NCI”) | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Operating Partnership | Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Limited partnership interests: | |||||||||||||||||||||||||||||||||||||||||
Units redeemed for common shares | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Units redeemed for cash | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Common shares issued | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Distributions to redeemable NCI ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | ( | $ | $ | $ |
Common Shares | Noncontrolling Interests (“NCI”) | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Operating Partnership | Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net loss attributable to common shareholders | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Limited partnership interests: | |||||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | $ | ( | $ | $ | $ |
Common Shares | Noncontrolling Interests (“NCI”) | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Operating Partnership | Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Impact of ASC 842 adoption | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Limited partnership interests: | |||||||||||||||||||||||||||||||||||||||||
Units redeemed for common shares | — | ( | — | ||||||||||||||||||||||||||||||||||||||
Units redeemed for cash | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Common shares issued | ( | — | — | ||||||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Distributions to redeemable NCI ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | ( | $ | $ | $ |
Common Shares | Noncontrolling Interests (“NCI”) | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Operating Partnership | Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Limited partnership interests: | |||||||||||||||||||||||||||||||||||||||||
Units redeemed for common shares | — | — | — | ||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Common shares issued | ( | — | — | ||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | ( | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Dividends to common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Distributions to redeemable NCI ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | $ | ( | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Casualty and impairment loss, net | |||||||||||
Gain on sale of real estate | ( | ( | |||||||||
Gain on sale of lease | ( | ||||||||||
Gain on extinguishment of debt | ( | ||||||||||
Amortization of deferred financing costs | |||||||||||
Amortization of below market leases, net | ( | ( | |||||||||
Noncash lease expense | |||||||||||
Straight-lining of rent | |||||||||||
Share-based compensation expense | |||||||||||
Rental revenue deemed uncollectible | |||||||||||
Change in operating assets and liabilities: | |||||||||||
Tenant and other receivables | ( | ||||||||||
Deferred leasing costs | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Lease liabilities | ( | ( | |||||||||
Accounts payable, accrued expenses and other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Real estate development and capital improvements | ( | ( | |||||||||
Acquisitions of real estate | ( | ||||||||||
Proceeds from sale of operating properties | |||||||||||
Proceeds from sale of operating lease | |||||||||||
Insurance proceeds | |||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Debt repayments | ( | ( | |||||||||
Debt issuance costs | ( | ( | |||||||||
Dividends to common shareholders | ( | ( | |||||||||
Distributions to redeemable noncontrolling interests | ( | ( | |||||||||
Taxes withheld for vested restricted shares | ( | ( | |||||||||
Borrowings under unsecured credit facility | |||||||||||
Proceeds from mortgage loan borrowings | |||||||||||
Repurchase of common shares | ( | ||||||||||
Proceeds related to the issuance of common shares | |||||||||||
Payment for redemption of units | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net increase in cash and cash equivalents and restricted cash | |||||||||||
Cash and cash equivalents and restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Cash payments for interest, net of amounts capitalized of $ | $ | $ | |||||||||
Cash payments for income taxes | |||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Accrued capital expenditures included in accounts payable and accrued expenses | |||||||||||
Write-off of fully depreciated and impaired assets | |||||||||||
Mortgage debt forgiven in refinancing | |||||||||||
Assumption of debt through the acquisition of real estate | |||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
Cash and cash equivalents at beginning of period | $ | $ | |||||||||
Restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | $ | |||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Restricted cash at end of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Real estate, at cost: | |||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Construction in progress | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Total | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Real estate, net | |||||||||||
Right-of-use assets | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Tenant and other receivables | |||||||||||
Receivable arising from the straight-lining of rents | |||||||||||
Identified intangible assets, net of accumulated amortization of $ | |||||||||||
Deferred leasing costs, net of accumulated amortization of $ | |||||||||||
Deferred financing costs, net of accumulated amortization of $ | |||||||||||
Prepaid expenses and other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Mortgages payable, net | $ | $ | |||||||||
Unsecured credit facility borrowings | |||||||||||
Lease liabilities | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Identified intangible liabilities, net of accumulated amortization of $ | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity: | |||||||||||
Partners’ capital: | |||||||||||
General partner: | |||||||||||
Limited partners: | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total partners’ capital | |||||||||||
Noncontrolling interest in consolidated subsidiaries | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
REVENUE | |||||||||||||||||||||||
Rental revenue | $ | $ | $ | $ | |||||||||||||||||||
Management and development fees | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Real estate taxes | |||||||||||||||||||||||
Property operating | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Casualty and impairment loss, net(1) | |||||||||||||||||||||||
Lease expense | |||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Gain on sale of real estate | |||||||||||||||||||||||
Gain on sale of lease | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest and debt expense | ( | ( | ( | ( | |||||||||||||||||||
Gain on extinguishment of debt | |||||||||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Less net loss attributable to NCI in consolidated subsidiaries | |||||||||||||||||||||||
Net income (loss) attributable to unitholders | $ | ( | $ | $ | $ | ||||||||||||||||||
Earnings (loss) per unit - Basic: | $ | ( | $ | $ | $ | ||||||||||||||||||
Earnings (loss) per unit - Diluted: | $ | ( | $ | $ | $ | ||||||||||||||||||
Weighted average units outstanding - Basic | |||||||||||||||||||||||
Weighted average units outstanding - Diluted |
Total Shares | General Partner | Total Units | Limited Partners(1) | Accumulated Earnings (Deficit) | NCI in Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Net income attributable to unitholders | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Equity redemption of OP units | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||
Cash redemption of OP units | — | ( | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Limited partnership units issued, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Distributions to Partners ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | ( | $ | $ |
Total Shares | General Partner | Total Units | Limited Partners(2) | Accumulated Deficit | NCI in Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Net loss attributable to unitholders | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | $ | ( | $ | $ |
Total Shares | General Partner | Total Units | Limited Partners(1) | Accumulated Earnings (Deficit) | NCI in Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Net income attributable to unitholders | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Impact of ASC 842 adoption | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | — | — | ( | — | |||||||||||||||||||||||||||||||||||||
Equity redemption of OP units | ( | ( | — | — | |||||||||||||||||||||||||||||||||||||
Cash redemption of OP units | — | ( | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Limited partnership units issued, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Distributions to Partners ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | ( | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | ( | $ | $ |
Total Shares | General Partner | Total Units | Limited Partners(2) | Accumulated Earnings (Deficit) | NCI in Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Net income attributable to unitholders | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | — | ( | — | ||||||||||||||||||||||||||||||||||||||
Equity redemption of OP units | ( | — | — | ||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | ( | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interests | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Distributions to Partners ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Share-based awards retained for taxes | ( | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | $ | ( | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Casualty and impairment loss, net | |||||||||||
Gain on sale of real estate | ( | ( | |||||||||
Gain on sale of lease | ( | ||||||||||
Gain on extinguishment of debt | ( | ||||||||||
Amortization of deferred financing costs | |||||||||||
Amortization of below market leases, net | ( | ( | |||||||||
Noncash lease expense | |||||||||||
Straight-lining of rent | |||||||||||
Share-based compensation expense | |||||||||||
Rental revenue deemed uncollectible | |||||||||||
Change in operating assets and liabilities: | |||||||||||
Tenant and other receivables | ( | ||||||||||
Deferred leasing costs | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Lease liabilities | ( | ( | |||||||||
Accounts payable, accrued expenses and other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Real estate development and capital improvements | ( | ( | |||||||||
Acquisitions of real estate | ( | ||||||||||
Proceeds from sale of operating properties | |||||||||||
Proceeds from sale of operating lease | |||||||||||
Insurance proceeds | |||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Debt repayments | ( | ( | |||||||||
Debt issuance costs | ( | ( | |||||||||
Distributions to partners | ( | ( | |||||||||
Taxes withheld for vested restricted units | ( | ( | |||||||||
Borrowings under unsecured credit facility | |||||||||||
Proceeds from mortgage loan borrowings | |||||||||||
Repurchase of common shares | ( | ||||||||||
Proceeds related to the issuance of common shares | |||||||||||
Payment for redemption of units | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net increase in cash and cash equivalents and restricted cash | |||||||||||
Cash and cash equivalents and restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
Cash payments for interest, net of amounts capitalized of $ | $ | $ | |||||||||
Cash payments for income taxes | |||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Accrued capital expenditures included in accounts payable and accrued expenses | |||||||||||
Write-off of fully depreciated and impaired assets | |||||||||||
Mortgage debt forgiven in refinancing | |||||||||||
Assumption of debt through the acquisition of real estate | |||||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
Cash and cash equivalents at beginning of period | $ | $ | |||||||||
Restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | $ | |||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Restricted cash at end of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | $ |
Date Purchased | Property Name | City | State | Square Feet | Purchase Price | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
February 12, 2020 | Kingswood Center | Brooklyn | NY | $ | |||||||||||||||||||||||||||||||
February 12, 2020 | Kingswood Crossing | Brooklyn | NY | ||||||||||||||||||||||||||||||||
2020 Total | $ | (1) |
Property Name | Land | Buildings and improvements | Identified intangible assets(1) | Identified intangible liabilities(1) | Debt premium | Total Purchase Price | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Kingswood Center | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Kingswood Crossing | ||||||||||||||||||||||||||||||||||||||
2020 Total | $ | $ | $ | $ | ( | $ | ( | $ |
(Amounts in thousands) | Below-Market | Above-Market | In-Place Lease | |||||||||||||||||
Year | Operating Lease Amortization | Operating Lease Amortization | Amortization | |||||||||||||||||
2020(1) | $ | $ | ( | $ | ( | |||||||||||||||
2021 | ( | ( | ||||||||||||||||||
2022 | ( | ( | ||||||||||||||||||
2023 | ( | ( | ||||||||||||||||||
2024 | ( | ( | ||||||||||||||||||
2025 | ( | ( |
Interest Rate at | September 30, | December 31, | ||||||||||||||||||||||||
(Amounts in thousands) | Maturity | September 30, 2020 | 2020 | 2019 | ||||||||||||||||||||||
First mortgages secured by: | ||||||||||||||||||||||||||
Variable rate | ||||||||||||||||||||||||||
Cherry Hill (Plaza at Cherry Hill)(1) | 5/24/2022 | $ | $ | |||||||||||||||||||||||
Westfield (One Lincoln Plaza)(1) | 5/24/2022 | |||||||||||||||||||||||||
Woodbridge (Plaza at Woodbridge)(1) | 5/25/2022 | |||||||||||||||||||||||||
Jersey City (Hudson Commons)(2) | 11/15/2024 | |||||||||||||||||||||||||
Watchung(2) | 11/15/2024 | |||||||||||||||||||||||||
Bronx (1750-1780 Gun Hill Road)(2) | 12/1/2024 | |||||||||||||||||||||||||
Total variable rate debt | ||||||||||||||||||||||||||
Fixed rate | ||||||||||||||||||||||||||
Bergen Town Center - West, Paramus | 4/8/2023 | |||||||||||||||||||||||||
Bronx (Shops at Bruckner) | 5/1/2023 | |||||||||||||||||||||||||
Jersey City (Hudson Mall)(4) | 12/1/2023 | |||||||||||||||||||||||||
Yonkers Gateway Center(5) | 4/6/2024 | |||||||||||||||||||||||||
Las Catalinas(8) | 8/6/2024 | |||||||||||||||||||||||||
Brick | 12/10/2024 | |||||||||||||||||||||||||
North Plainfield | 12/10/2025 | |||||||||||||||||||||||||
Middletown | 12/1/2026 | |||||||||||||||||||||||||
Rockaway | 12/1/2026 | |||||||||||||||||||||||||
East Hanover (200 - 240 Route 10 West) | 12/10/2026 | |||||||||||||||||||||||||
North Bergen (Tonnelle Ave) | 4/1/2027 | |||||||||||||||||||||||||
Manchester | 6/1/2027 | |||||||||||||||||||||||||
Millburn | 6/1/2027 | |||||||||||||||||||||||||
Totowa | 12/1/2027 | |||||||||||||||||||||||||
Woodbridge (Woodbridge Commons) | 12/1/2027 | |||||||||||||||||||||||||
East Brunswick | 12/6/2027 | |||||||||||||||||||||||||
East Rutherford | 1/6/2028 | |||||||||||||||||||||||||
Brooklyn (Kingswood Center)(6) | 2/6/2028 | |||||||||||||||||||||||||
Hackensack | 3/1/2028 | |||||||||||||||||||||||||
Marlton | 12/1/2028 | |||||||||||||||||||||||||
East Hanover Warehouses | 12/1/2028 | |||||||||||||||||||||||||
Union (2445 Springfield Ave) | 12/10/2028 | |||||||||||||||||||||||||
Freeport (Freeport Commons) | 12/10/2029 | |||||||||||||||||||||||||
Montehiedra(9) | 6/1/2030 | |||||||||||||||||||||||||
Montclair | 8/15/2030 | |||||||||||||||||||||||||
Garfield | 12/1/2030 | |||||||||||||||||||||||||
Mt Kisco(3) | 11/15/2034 | |||||||||||||||||||||||||
Montehiedra (junior loan)(9) | — | |||||||||||||||||||||||||
Total fixed rate debt | ||||||||||||||||||||||||||
Total mortgages payable | ||||||||||||||||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||||||||||||||
Total mortgages payable, net of unamortized debt issuance costs | ||||||||||||||||||||||||||
Unsecured credit facilities: | ||||||||||||||||||||||||||
Revolving credit agreement(7) | 1/29/2024 | |||||||||||||||||||||||||
Total unsecured credit facilities | ||||||||||||||||||||||||||
Total debt outstanding | $ | $ |
(Amounts in thousands) | ||||||||
Year Ending December 31, | ||||||||
2020(1) | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Rental Revenue | |||||||||||||||||||||||
Fixed lease revenue | $ | $ | $ | $ | |||||||||||||||||||
Variable lease revenue | |||||||||||||||||||||||
Total rental revenue | $ | $ | $ | $ |
As of September 30, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Mortgages payable(1) | $ | $ | $ | $ | ||||||||||||||||||||||
Unsecured credit facility | — | — |
Balance at | |||||||||||
(Amounts in thousands) | September 30, 2020 | December 31, 2019 | |||||||||
Other assets | $ | $ | |||||||||
Deferred tax asset, net(1) | |||||||||||
Real estate held for sale | |||||||||||
Deposits for acquisitions | |||||||||||
Prepaid expenses: | |||||||||||
Real estate taxes | |||||||||||
Insurance | |||||||||||
Licenses/fees | |||||||||||
Total Prepaid expenses and other assets | $ | $ | |||||||||
Balance at | |||||||||||
(Amounts in thousands) | September 30, 2020 | December 31, 2019 | |||||||||
Deferred tenant revenue | $ | $ | |||||||||
Accrued interest payable | |||||||||||
Accrued capital expenditures and leasing costs | |||||||||||
Security deposits | |||||||||||
Deferred tax liability, net(1) | |||||||||||
Accrued payroll expenses | |||||||||||
Other liabilities and accrued expenses | |||||||||||
Total accounts payable, accrued expenses and other liabilities | $ | $ | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Interest expense | $ | $ | $ | $ | |||||||||||||||||||
Amortization of deferred financing costs | |||||||||||||||||||||||
Total Interest and debt expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Share-based compensation expense components: | |||||||||||||||||||||||
Restricted share expense | $ | $ | $ | $ | |||||||||||||||||||
Stock option expense | |||||||||||||||||||||||
LTIP expense(1) | |||||||||||||||||||||||
Performance-based LTI expense(2) | |||||||||||||||||||||||
Deferred share unit (“DSU”) expense | |||||||||||||||||||||||
Total Share-based compensation expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Amounts in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | ( | $ | $ | $ | ||||||||||||||||||
Less: (Earnings) loss allocated to unvested participating securities | ( | ( | ( | ||||||||||||||||||||
Net income (loss) available for common shareholders - basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Impact of assumed conversions: | |||||||||||||||||||||||
OP and LTIP units | |||||||||||||||||||||||
Net income (loss) available for common shareholders - dilutive | $ | ( | $ | $ | $ | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average common shares outstanding - basic | |||||||||||||||||||||||
Effect of dilutive securities(1): | |||||||||||||||||||||||
Restricted share awards | |||||||||||||||||||||||
Assumed conversion of OP and LTIP units | |||||||||||||||||||||||
Weighted average common shares outstanding - diluted | |||||||||||||||||||||||
Earnings per share available to common shareholders: | |||||||||||||||||||||||
Earnings (loss) per common share - Basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Earnings (loss) per common share - Diluted | $ | ( | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Amounts in thousands, except per unit amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) attributable to unitholders | $ | ( | $ | $ | $ | ||||||||||||||||||
Less: net (income) loss attributable to participating securities | ( | ( | ( | ||||||||||||||||||||
Net income (loss) available for unitholders | $ | ( | $ | $ | $ | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average units outstanding - basic | |||||||||||||||||||||||
Effect of dilutive securities issued by Urban Edge | |||||||||||||||||||||||
Unvested LTIP units | |||||||||||||||||||||||
Weighted average units outstanding - diluted | |||||||||||||||||||||||
Earnings per unit available to unitholders: | |||||||||||||||||||||||
Earnings (loss) per unit - Basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Earnings (loss) per unit - Diluted | $ | ( | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) | $ | (5,830) | $ | 56,700 | $ | 78,003 | $ | 112,659 | |||||||||||||||
FFO applicable to diluted common shareholders(1) | 16,880 | 38,248 | 107,330 | 132,350 | |||||||||||||||||||
NOI(2) | 46,019 | 57,373 | 151,020 | 176,851 | |||||||||||||||||||
Same-property NOI(2) | 43,483 | 54,440 | 141,701 | 164,317 |
Three Months Ended September 30, | |||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | $ Change | ||||||||||||||
Total revenue | $ | 75,838 | $ | 91,243 | $ | (15,405) | |||||||||||
Gain on sale of real estate | — | 39,716 | (39,716) | ||||||||||||||
Interest income | 282 | 2,706 | (2,424) | ||||||||||||||
Interest and debt expense | 18,136 | 16,861 | 1,275 | ||||||||||||||
Income tax expense | 459 | 53 | 406 |
Nine Months Ended September 30, | |||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | $ Change | ||||||||||||||
Total revenue | $ | 242,817 | $ | 291,722 | $ | (48,905) | |||||||||||
Property operating expenses | 39,867 | 45,552 | (5,685) | ||||||||||||||
General and administrative | 36,600 | 28,943 | 7,657 | ||||||||||||||
Casualty and impairment loss, net | — | 9,070 | (9,070) | ||||||||||||||
Gain on sale of real estate | 39,775 | 68,219 | (28,444) | ||||||||||||||
Interest income | 2,387 | 7,670 | (5,283) | ||||||||||||||
Interest and debt expense | 53,884 | 49,869 | 4,015 | ||||||||||||||
Gain on extinguishment of debt | 34,908 | — | 34,908 | ||||||||||||||
Income tax (benefit) expense | (13,103) | 1,249 | (14,352) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) | $ | (5,830) | $ | 56,700 | $ | 78,003 | $ | 112,659 | |||||||||||||||
Management and development fee income from non-owned properties | (404) | (280) | (1,003) | (940) | |||||||||||||||||||
Other expense | 257 | 251 | 713 | 799 | |||||||||||||||||||
Depreciation and amortization | 22,888 | 21,496 | 69,658 | 65,893 | |||||||||||||||||||
General and administrative expense | 8,700 | 8,353 | 36,600 | 28,943 | |||||||||||||||||||
Casualty and impairment loss, net(1) | — | — | — | 9,070 | |||||||||||||||||||
Gain on sale of real estate | — | (39,716) | (39,775) | (68,219) | |||||||||||||||||||
Gain on sale of lease | — | (1,849) | — | (1,849) | |||||||||||||||||||
Interest income | (282) | (2,706) | (2,387) | (7,670) | |||||||||||||||||||
Interest and debt expense | 18,136 | 16,861 | 53,884 | 49,869 | |||||||||||||||||||
Gain on extinguishment of debt | — | — | (34,908) | — | |||||||||||||||||||
Income tax (benefit) expense | 459 | 53 | (13,103) | 1,249 | |||||||||||||||||||
Non-cash revenue and expenses | 2,095 | (1,790) | 3,338 | (12,953) | |||||||||||||||||||
NOI(2) | 46,019 | 57,373 | 151,020 | 176,851 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Non-same property NOI(3) | (2,285) | (2,559) | (8,561) | (10,981) | |||||||||||||||||||
Tenant bankruptcy settlement income and lease termination income | (251) | (374) | (758) | (1,553) | |||||||||||||||||||
Same-property NOI | $ | 43,483 | $ | 54,440 | $ | 141,701 | $ | 164,317 | |||||||||||||||
NOI related to properties being redeveloped | 702 | 658 | 2,055 | 1,793 | |||||||||||||||||||
Same-property NOI including properties in redevelopment | $ | 44,185 | $ | 55,098 | $ | 143,756 | $ | 166,110 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) | $ | (5,830) | $ | 56,700 | $ | 78,003 | $ | 112,659 | |||||||||||||||
Less net (income) loss attributable to noncontrolling interests in: | |||||||||||||||||||||||
Operating partnership | 225 | (2,662) | (3,373) | (6,535) | |||||||||||||||||||
Consolidated subsidiaries | — | 2 | — | 24 | |||||||||||||||||||
Net income (loss) attributable to common shareholders | (5,605) | 54,040 | 74,630 | 106,148 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Rental property depreciation and amortization | 22,710 | 21,262 | 69,102 | 65,233 | |||||||||||||||||||
Gain on sale of real estate | — | (39,716) | (39,775) | (68,219) | |||||||||||||||||||
Real estate impairment loss | — | — | — | 22,653 | |||||||||||||||||||
Limited partnership interests in operating partnership(1) | (225) | 2,662 | 3,373 | 6,535 | |||||||||||||||||||
FFO applicable to diluted common shareholders | $ | 16,880 | $ | 38,248 | $ | 107,330 | $ | 132,350 |
(Amounts in thousands) | September 30, 2020 | ||||
Revolving credit agreement(1) | |||||
Total commitment amount | $ | 600,000 | |||
Available capacity(2) | $ | 350,000 | |||
Maturity | January 29, 2024 |
Nine Months Ended September 30, | |||||||||||||||||
(Amounts in thousands) | 2020 | 2019 | $ Change | ||||||||||||||
Net cash provided by operating activities | $ | 74,829 | $ | 115,593 | $ | (40,764) | |||||||||||
Net cash (used in) provided by investing activities | (55,996) | 60,055 | (116,051) | ||||||||||||||
Net cash provided by (used in) financing activities | 167,027 | (96,824) | 263,851 |
(Amounts in thousands) | Principal balance at September 30, 2020 | Weighted Average Interest Rate at September 30, 2020 | ||||||||||||
Mortgages payable: | ||||||||||||||
Fixed rate debt | $ | 1,430,829 | 4.43% | |||||||||||
Variable rate debt(1) | 169,761 | 1.90% | ||||||||||||
Total mortgages payable | 1,600,590 | 4.43% | ||||||||||||
Unamortized debt issuance costs | (10,286) | |||||||||||||
Total mortgages payable, net of unamortized debt issuance costs | 1,590,304 | |||||||||||||
Unsecured credit facilities: | ||||||||||||||
Revolving credit agreement(2) | 250,000 | 1.21% | ||||||||||||
Total unsecured credit facilities | 250,000 | 1.21% | ||||||||||||
Total debt outstanding | $ | 1,840,304 | 3.76% |
Nine Months Ended September 30, | ||||||||||||||
(Amounts in thousands) | 2020 | 2019 | ||||||||||||
Capital expenditures: | ||||||||||||||
Development and redevelopment costs | $ | 8,984 | $ | 55,640 | ||||||||||
Capital improvements | 7,677 | 10,736 | ||||||||||||
Tenant improvements and allowances | 1,605 | 4,629 | ||||||||||||
Total capital expenditures | $ | 18,266 | $ | 71,005 |
(in thousands) | Three Months Ended September 30, 2020 | |||||||||||||
Tenant Type | Tenant Billings | % Collected | ||||||||||||
National | $ | 68,390 | 83 | % | ||||||||||
Regional | 9,858 | 72 | % | |||||||||||
Mom and pop | 7,009 | 65 | % | |||||||||||
Local franchise | 5,549 | 63 | % | |||||||||||
Temporary | 1,137 | 80 | % | |||||||||||
Total portfolio | $ | 91,943 | 79 | % |
2020 | 2019 | ||||||||||||||||||||||||||||
(Amounts in thousands) | September 30, Balance | Weighted Average Interest Rate | Effect of 1% Change in Base Rates | December 31, Balance | Weighted Average Interest Rate | ||||||||||||||||||||||||
Variable rate unsecured debt | $ | 250,000 | 1.21% | $ | 2,500 | $ | — | —% | |||||||||||||||||||||
Variable rate mortgages | 169,761 | 1.90% | 1,698 | 169,500 | 3.45% | ||||||||||||||||||||||||
Fixed rate mortgages | 1,430,829 | 4.43% | — | (2) | 1,386,748 | 4.12% | |||||||||||||||||||||||
$ | 1,850,590 | (1) | $ | 4,198 | $ | 1,556,248 | (1) |
Exhibit Number | Exhibit Description | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema | |||||||
101.CAL* | Inline XBRL Extension Calculation Linkbase | |||||||
101.LAB* | Inline XBRL Extension Labels Linkbase | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase | |||||||
104* | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) |
URBAN EDGE PROPERTIES | |||||
(Registrant) | |||||
/s/ Mark Langer | |||||
Mark Langer, Chief Financial Officer | |||||
Date: November 5, 2020 | |||||
URBAN EDGE PROPERTIES LP | |||||
By: Urban Edge Properties, General Partner | |||||
/s/ Mark Langer | |||||
Mark Langer, Chief Financial Officer | |||||
Date: November 5, 2020 | |||||
November 5, 2020 | ||||||||
/s/ Jeffrey S. Olson | ||||||||
Jeffrey S. Olson | ||||||||
Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties |
November 5, 2020 | ||||||||
/s/ Mark Langer | ||||||||
Mark Langer | ||||||||
Chief Financial Officer of Urban Edge Properties |
November 5, 2020 | ||||||||
/s/ Jeffrey S. Olson | ||||||||
Jeffrey S. Olson | ||||||||
Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of Urban Edge Properties LP |
November 5, 2020 | ||||||||
/s/ Mark Langer | ||||||||
Mark Langer | ||||||||
Chief Financial Officer of Urban Edge Properties, general partner of Urban Edge Properties LP |
November 5, 2020 | /s/ Jeffrey S. Olson | ||||||||||
Name: | Jeffrey S. Olson | ||||||||||
Title: | Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties | ||||||||||
November 5, 2020 | /s/ Mark Langer | ||||||||||
Name: | Mark Langer | ||||||||||
Title: | Chief Financial Officer of Urban Edge Properties |
November 5, 2020 | /s/ Jeffrey S. Olson | ||||||||||
Name: | Jeffrey S. Olson | ||||||||||
Title: | Chairman of the Board of Trustees and Chief Executive Officer of Urban Edge Properties, general partner of Urban Edge Properties LP | ||||||||||
November 5, 2020 | /s/ Mark Langer | ||||||||||
Name: | Mark Langer | ||||||||||
Title: | Chief Financial Officer of Urban Edge Properties, general partner of Urban Edge Properties LP |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accumulated depreciation, identifiable intangible assets | $ 35,057 | $ 30,942 |
Accumulated amortization, deferred leasing costs | 17,054 | 16,560 |
Accumulated amortization, deferred financing costs | 4,540 | 3,765 |
Accumulated amortization, identified intangible liabilities | $ 69,368 | $ 62,610 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 500,000,000 | |
Common stock, shares, outstanding (in shares) | 116,701,311 | 121,370,125 |
Urban Edge Properties LP | ||
Accumulated depreciation, identifiable intangible assets | $ 35,057 | $ 30,942 |
Accumulated amortization, deferred leasing costs | 17,054 | 16,560 |
Accumulated amortization, deferred financing costs | 4,540 | 3,765 |
Accumulated amortization, identified intangible liabilities | $ 69,368 | $ 62,610 |
Common stock, shares, outstanding (in shares) | 116,701,311 | 121,370,125 |
Limited Partners, units outstanding (in units) | 4,676,787 | 5,833,318 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) |
Total |
Urban Edge Properties LP |
Urban Edge Properties LP
Accumulated Earnings (Deficit)
|
Urban Edge Properties LP
Consolidated Subsidiaries
|
Urban Edge Properties LP
General Partner
|
Urban Edge Properties LP
Limited Partners
|
Common Shares |
Additional Paid-In Capital |
Accumulated Earnings (Deficit) |
Operating Partnership |
Consolidated Subsidiaries |
Operating Partnership
Urban Edge Properties LP
Limited Partners
|
|||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2018 | 114,345,565 | ||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 114,345,565 | 12,736,633 | |||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 1,005,977,000 | $ 1,005,977,000 | $ (57,482,000) | $ 449,000 | $ 957,563,000 | $ 105,447,000 | [1] | $ 1,143,000 | $ 956,420,000 | $ (52,857,000) | $ 100,822,000 | $ 449,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income attributable to common shareholders | 106,148,000 | 112,683,000 | 112,683,000 | 106,148,000 | |||||||||||||
Net income attributable to noncontrolling interests | 6,511,000 | (24,000) | (24,000) | 6,535,000 | (24,000) | ||||||||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 47,372 | ||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | (253,000) | 101,000 | $ (354,000) | ||||||||||||||
Units redeemed for common shares (in shares) | 6,861,692 | (6,861,692) | 6,861,692 | ||||||||||||||
Units redeemed for common shares | 52,022,000 | 52,022,000 | $ 54,748,000 | $ (2,726,000) | $ 68,000 | 54,680,000 | (2,726,000) | ||||||||||
Limited partnership units issued, net (in shares) | 276,287 | ||||||||||||||||
Limited partnership units issued, net | 0 | ||||||||||||||||
Reallocation of noncontrolling interests | (52,022,000) | (52,022,000) | 4,077,000 | $ (56,099,000) | [1] | 4,077,000 | (56,099,000) | ||||||||||
Common shares issued (in shares) | 47,372 | ||||||||||||||||
Common shares issued | 253,000 | $ 1,000 | 353,000 | (101,000) | |||||||||||||
Dividends to common shareholders | (79,489,000) | (79,489,000) | |||||||||||||||
Distributions to redeemable NCI | (4,427,000) | (4,427,000) | |||||||||||||||
Distributions to Partners | (83,916,000) | (83,916,000) | |||||||||||||||
Share-based compensation expense | 10,269,000 | 10,269,000 | 0 | $ 4,579,000 | $ 5,690,000 | [1] | 4,579,000 | 5,690,000 | |||||||||
Share-based awards retained for taxes (in shares) | (31,276) | (31,276) | |||||||||||||||
Distributions to redeemable NCI ($0.22 per unit) | (633,000) | (633,000) | $ (633,000) | (633,000) | |||||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 121,223,353 | 5,934,180 | 121,223,353 | ||||||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 121,223,353 | 5,793,230 | |||||||||||||||
Ending balance at Sep. 30, 2019 | 1,035,713,000 | 1,035,713,000 | (31,734,000) | 425,000 | $ 1,017,266,000 | $ 49,756,000 | [1] | $ 1,212,000 | 1,016,054,000 | (29,217,000) | 47,239,000 | 425,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Partners' Capital Account, Redemptions, Cash | (5,978,000) | (5,978,000) | $ (3,422,000) | $ (2,556,000) | (3,422,000) | (2,556,000) | |||||||||||
Partners' Capital Account, Units, Redeemed, Cash | (357,998) | ||||||||||||||||
Beginning balance (in shares) at Jun. 30, 2019 | 121,171,003 | 6,201,228 | 121,171,003 | ||||||||||||||
Beginning balance at Jun. 30, 2019 | 1,009,686,000 | 1,009,686,000 | (60,461,000) | 427,000 | $ 1,016,682,000 | $ 53,038,000 | $ 1,212,000 | 1,015,470,000 | (56,580,000) | 49,157,000 | 427,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income attributable to common shareholders | 54,040,000 | 56,702,000 | 56,702,000 | 54,040,000 | |||||||||||||
Net income attributable to noncontrolling interests | 2,660,000 | (2,000) | (2,000) | 2,662,000 | (2,000) | ||||||||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 2,350 | ||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | 61,000 | 31,000 | $ 30,000 | ||||||||||||||
Units redeemed for common shares (in shares) | 50,000 | (50,000) | 50,000 | ||||||||||||||
Units redeemed for common shares | (2,291,000) | (2,291,000) | $ 435,000 | $ (2,726,000) | $ 0 | 435,000 | (2,726,000) | ||||||||||
Limited partnership units issued, net (in shares) | 140,950 | ||||||||||||||||
Limited partnership units issued, net | 0 | ||||||||||||||||
Reallocation of noncontrolling interests | 2,291,000 | 2,291,000 | 2,291,000 | $ 0 | 2,291,000 | 0 | |||||||||||
Common shares issued (in shares) | 2,350 | ||||||||||||||||
Common shares issued | $ (61,000) | (30,000) | (31,000) | ||||||||||||||
Dividends to common shareholders | (26,646,000) | (26,646,000) | |||||||||||||||
Distributions to redeemable NCI | (1,298,000) | (1,298,000) | |||||||||||||||
Distributions to Partners | (27,944,000) | (27,944,000) | |||||||||||||||
Share-based compensation expense | 3,310,000 | 3,310,000 | $ 1,310,000 | $ 2,000,000 | 1,310,000 | 0 | 2,000,000 | ||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 121,223,353 | 5,934,180 | 121,223,353 | ||||||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 121,223,353 | 5,793,230 | |||||||||||||||
Ending balance at Sep. 30, 2019 | 1,035,713,000 | 1,035,713,000 | (31,734,000) | 425,000 | $ 1,017,266,000 | $ 49,756,000 | [1] | $ 1,212,000 | 1,016,054,000 | (29,217,000) | 47,239,000 | 425,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Partners' Capital Account, Redemptions, Cash | $ (5,978,000) | $ (5,978,000) | $ (3,422,000) | $ (2,556,000) | (3,422,000) | (2,556,000) | |||||||||||
Partners' Capital Account, Units, Redeemed, Cash | (357,998) | ||||||||||||||||
Noncontrolling interest percentage | 4.60% | ||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 121,370,125 | 121,370,125 | 121,370,125 | ||||||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 121,370,125 | 5,833,318 | |||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,014,776,000 | $ 1,014,776,000 | (56,166,000) | 424,000 | $ 1,020,362,000 | $ 50,156,000 | [2] | $ 1,213,000 | 1,019,149,000 | (52,546,000) | 46,536,000 | 424,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income attributable to common shareholders | 74,630,000 | 78,003,000 | 78,003,000 | 74,630,000 | |||||||||||||
Net income attributable to noncontrolling interests | 3,373,000 | 3,373,000 | |||||||||||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 53,193 | ||||||||||||||||
Common units issued as a result of common shares issued by Urban Edge | (205,000) | 30,000 | $ (235,000) | $ (122,858) | |||||||||||||
Units redeemed for common shares (in shares) | 1,279,389 | (1,279,389) | 1,279,389 | ||||||||||||||
Units redeemed for common shares | $ 8,628,000 | 8,628,000 | $ 8,628,000 | $ 11,000 | 8,617,000 | ||||||||||||
Repurchase of common shares (in shares) | (5,873,923) | ||||||||||||||||
Repurchase of common shares | $ (54,141,000) | (54,141,000) | (54,141,000) | $ (59,000) | (54,082,000) | ||||||||||||
Reallocation of noncontrolling interests | (8,628,000) | (8,628,000) | 9,724,000 | $ (18,352,000) | [2] | 9,724,000 | (18,352,000) | ||||||||||
Common shares issued (in shares) | 53,193 | ||||||||||||||||
Common shares issued | 205,000 | $ 1,000 | 234,000 | (30,000) | |||||||||||||
Dividends to common shareholders | (26,647,000) | (26,647,000) | |||||||||||||||
Distributions to redeemable NCI | (1,314,000) | (1,314,000) | |||||||||||||||
Distributions to Partners | (27,961,000) | (27,961,000) | |||||||||||||||
Share-based compensation expense | 14,463,000 | 14,463,000 | $ 5,255,000 | $ 9,208,000 | [2] | 5,255,000 | 9,208,000 | ||||||||||
Share-based awards retained for taxes (in shares) | (127,473) | (127,473) | |||||||||||||||
Distributions to redeemable NCI ($0.22 per unit) | $ (1,461,000) | $ (1,461,000) | $ (1,461,000) | (1,461,000) | |||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 116,701,311 | 116,701,311 | 116,701,311 | ||||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 116,701,311 | 4,676,787 | |||||||||||||||
Ending balance at Sep. 30, 2020 | $ 1,023,884,000 | $ 1,023,884,000 | (6,154,000) | 424,000 | $ 988,602,000 | $ 41,012,000 | [2] | $ 1,166,000 | 987,436,000 | (4,593,000) | 39,451,000 | 424,000 | |||||
Beginning balance (in shares) at Jun. 30, 2020 | 116,701,311 | 4,676,787 | 116,701,311 | ||||||||||||||
Beginning balance at Jun. 30, 2020 | 1,027,110,000 | 1,027,110,000 | (324,000) | 424,000 | $ 986,099,000 | $ 40,911,000 | $ 1,166,000 | 984,933,000 | 1,012,000 | 39,575,000 | 424,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income attributable to common shareholders | (5,605,000) | (5,830,000) | (5,830,000) | (5,605,000) | |||||||||||||
Net income attributable to noncontrolling interests | (225,000) | (225,000) | 0 | ||||||||||||||
Units redeemed for common shares | 0 | ||||||||||||||||
Reallocation of noncontrolling interests | 0 | 0 | 1,866,000 | (1,866,000) | [2] | 1,866,000 | (1,866,000) | ||||||||||
Share-based compensation expense | $ 2,604,000 | $ 2,604,000 | $ 637,000 | $ 1,967,000 | [2] | 637,000 | 0 | 1,967,000 | |||||||||
Ending balance (in shares) at Sep. 30, 2020 | 116,701,311 | 116,701,311 | 116,701,311 | ||||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 116,701,311 | 4,676,787 | |||||||||||||||
Ending balance at Sep. 30, 2020 | $ 1,023,884,000 | $ 1,023,884,000 | $ (6,154,000) | $ 424,000 | $ 988,602,000 | $ 41,012,000 | [2] | $ 1,166,000 | $ 987,436,000 | $ (4,593,000) | $ 39,451,000 | $ 424,000 | |||||
Noncontrolling interest percentage | 3.90% | ||||||||||||||||
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 | $ 0.66 |
Accumulated Earnings (Deficit) | Urban Edge Properties LP | |||
Dividends on common shares (in dollars per share) | 0.22 | 0.22 | 0.66 |
Accumulated Earnings (Deficit) | |||
Dividends on common shares (in dollars per share) | 0.22 | 0.22 | |
Operating Partnership | |||
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 | $ 0.66 |
Operating Partnership | Limited Partners | Urban Edge Properties LP | |||
Noncontrolling interest percentage | 4.60% | 3.90% | 4.60% |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 78,003 | $ 112,659 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 68,852 | 65,645 |
Casualty and impairment loss, net | 0 | 9,070 |
Gain on sale of real estate | (39,775) | (68,219) |
Gain on extinguishment of debt | (34,908) | 0 |
Amortization of deferred financing costs | 2,113 | 2,170 |
Amortization of below market leases, net | (6,803) | (13,933) |
Noncash lease expense | 5,655 | 6,329 |
Straight-lining of rent | 9,503 | 120 |
Share-based compensation expense | 14,463 | 10,269 |
Rental revenue deemed uncollectible | 21,464 | 1,107 |
Change in operating assets and liabilities: | ||
Tenant and other receivables | (24,276) | 1,337 |
Deferred leasing costs | (1,110) | (3,239) |
Prepaid expenses and other assets | (11,656) | (2,377) |
Lease liabilities | (5,017) | (5,471) |
Accounts payable, accrued expenses and other liabilities | (1,679) | 1,975 |
Net cash provided by operating activities | 74,829 | 115,593 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Real estate development and capital improvements | 18,266 | 71,005 |
Acquisitions of real estate | 92,132 | 0 |
Proceeds from sale of operating properties | 54,402 | 111,440 |
Insurance proceeds | 0 | 12,677 |
Net cash (used in) provided by investing activities | (55,996) | 60,055 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt repayments | (87,567) | (3,907) |
Dividends to common shareholders | (26,647) | (79,489) |
Distributions to redeemable noncontrolling interests | (1,314) | (4,427) |
Taxes withheld for vested restricted shares | (1,461) | (633) |
Borrowings under unsecured credit facility | 250,000 | 0 |
Proceeds from mortgage loan borrowings | 90,250 | |
Repurchase of common shares | (54,141) | 0 |
Debt issuance costs | (2,298) | (2,643) |
Proceeds related to the issuance of common shares | 205 | 253 |
Net cash provided by (used in) financing activities | 167,027 | (96,824) |
Net increase in cash and cash equivalents and restricted cash | 185,860 | 78,824 |
Cash and cash equivalents and restricted cash at beginning of period | 485,136 | 457,522 |
Cash and cash equivalents and restricted cash at end of period | 670,996 | 536,346 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash payments for interest, net of amounts capitalized of $513 and $1,277, respectively | 52,771 | 48,776 |
Cash payments for income taxes | 482 | 1,589 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures included in accounts payable and accrued expenses | 7,330 | 13,444 |
Write-off of fully depreciated and impaired assets | 10,748 | 43,625 |
Mortgage debt forgiven in refinancing | 30,000 | 0 |
Assumption of debt through the acquisition of real estate | 72,473 | 0 |
Cash and cash equivalents at beginning of period | 432,954 | 440,430 |
Cash and cash equivalents at end of period | 646,432 | 441,561 |
Restricted cash at beginning of period | 52,182 | 17,092 |
Restricted cash at end of period | 24,564 | 94,785 |
Cash and cash equivalents and restricted cash at beginning/end of period | 670,996 | 536,346 |
Payments For Redemptions of Units, Partners' Capital Account | 0 | (5,978) |
Proceeds From Sale On Termination Of Lease | 0 | 6,943 |
Gain (Loss) on Termination of Lease | 0 | (1,849) |
Urban Edge Properties LP | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 78,003 | 112,659 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 68,852 | 65,645 |
Casualty and impairment loss, net | 0 | 9,070 |
Gain on sale of real estate | (39,775) | (68,219) |
Gain on extinguishment of debt | (34,908) | 0 |
Amortization of deferred financing costs | 2,113 | 2,170 |
Amortization of below market leases, net | (6,803) | (13,933) |
Noncash lease expense | 5,655 | 6,329 |
Straight-lining of rent | 9,503 | 120 |
Share-based compensation expense | 14,463 | 10,269 |
Rental revenue deemed uncollectible | 21,464 | 1,107 |
Change in operating assets and liabilities: | ||
Tenant and other receivables | (24,276) | 1,337 |
Deferred leasing costs | (1,110) | (3,239) |
Prepaid expenses and other assets | (11,656) | (2,377) |
Lease liabilities | (5,017) | (5,471) |
Accounts payable, accrued expenses and other liabilities | (1,679) | 1,975 |
Net cash provided by operating activities | 74,829 | 115,593 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Real estate development and capital improvements | 18,266 | 71,005 |
Acquisitions of real estate | 92,132 | 0 |
Proceeds from sale of operating properties | 54,402 | 111,440 |
Insurance proceeds | 0 | 12,677 |
Net cash (used in) provided by investing activities | (55,996) | 60,055 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt repayments | (87,567) | (3,907) |
Distributions to partners | 27,961 | 83,916 |
Taxes withheld for vested restricted shares | (1,461) | (633) |
Borrowings under unsecured credit facility | 250,000 | 0 |
Proceeds from mortgage loan borrowings | 90,250 | 0 |
Repurchase of common shares | (54,141) | 0 |
Debt issuance costs | (2,298) | (2,643) |
Proceeds related to the issuance of common shares | 205 | 253 |
Net cash provided by (used in) financing activities | 167,027 | (96,824) |
Net increase in cash and cash equivalents and restricted cash | 185,860 | 78,824 |
Cash and cash equivalents and restricted cash at beginning of period | 485,136 | 457,522 |
Cash and cash equivalents and restricted cash at end of period | 670,996 | 536,346 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash payments for interest, net of amounts capitalized of $513 and $1,277, respectively | 52,771 | 48,776 |
Cash payments for income taxes | 482 | 1,589 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures included in accounts payable and accrued expenses | 7,330 | 13,444 |
Write-off of fully depreciated and impaired assets | 10,748 | 43,625 |
Mortgage debt forgiven in refinancing | 30,000 | 0 |
Assumption of debt through the acquisition of real estate | 72,473 | 0 |
Cash and cash equivalents at beginning of period | 432,954 | 440,430 |
Cash and cash equivalents at end of period | 646,432 | 441,561 |
Restricted cash at beginning of period | 52,182 | 17,092 |
Restricted cash at end of period | 24,564 | 94,785 |
Cash and cash equivalents and restricted cash at beginning/end of period | 670,996 | 536,346 |
Payments For Redemptions of Units, Partners' Capital Account | 0 | (5,978) |
Proceeds From Sale On Termination Of Lease | 0 | 6,943 |
Gain (Loss) on Termination of Lease | $ 0 | $ (1,849) |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Capitalized interest | $ 513 | $ 1,277 |
Urban Edge Properties LP | ||
Capitalized interest | $ 513 | $ 1,277 |
ORGANIZATION |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Urban Edge Properties (“UE”, “Urban Edge” or the “Company”) (NYSE: UE) is a Maryland real estate investment trust focused on managing, developing, redeveloping, and acquiring retail real estate in urban communities, primarily in the New York metropolitan area. Urban Edge Properties LP (“UELP” or the “Operating Partnership”) is a Delaware limited partnership formed to serve as UE’s majority-owned partnership subsidiary and to own, through affiliates, all of the Company’s real estate properties and other assets. Unless the context otherwise requires, references to “we”, “us” and “our” refer to Urban Edge Properties and UELP and their consolidated entities/subsidiaries. The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership (“OP Units”). As of September 30, 2020, Urban Edge owned approximately 96.1% of the outstanding common OP Units with the remaining limited OP Units held by members of management, Urban Edge’s Board of Trustees and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership. The third-party unitholders have limited rights over the Operating Partnership such that they do not have characteristics of a controlling financial interest. As such, the Operating Partnership is considered a variable interest entity (“VIE”), and the Company is the primary beneficiary which consolidates it. The Company’s only investment is the Operating Partnership. The VIE’s assets can be used for purposes other than the settlement of the VIE’s obligations and the Company’s partnership interest is considered a majority voting interest. As of September 30, 2020, our portfolio consisted of 72 shopping centers, four malls and two warehouse parks, totaling approximately 15.1 million square feet (“sf”).
|
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020. Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities Exchange Commission (“SEC”). The consolidated balance sheets as of September 30, 2020 and December 31, 2019 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. The consolidated statements of income for the three and nine months ended September 30, 2020 and 2019 include the consolidated accounts of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation. In accordance with ASC 205 Presentation of Financial Statements, certain prior year balances have been reclassified in order to conform to the current period presentation. The Company includes real estate impairment charges, and casualty losses (gains) resulting from natural disasters in Casualty and impairment loss, net on its consolidated statements of income for the nine months ended September 30, 2019 as reflected in this Quarterly Report on Form 10-Q. Refer to Note 9 and Note 10 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q for information regarding real estate impairment charges and casualty losses (gains), respectively. Our primary business is the ownership, management, redevelopment, development and operation of retail shopping centers and malls. We do not distinguish our primary business or group our operations on a geographical basis for purposes of measuring performance. The Company’s chief operating decision maker reviews operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. None of our tenants accounted for more than 10% of our revenue or property operating income as of September 30, 2020. We aggregate all of our properties into one reportable segment due to their similarities with regard to the nature and economics of the properties, tenants and operations, as well as long-term average financial performance.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Real Estate — Real estate is carried at cost, net of accumulated depreciation and amortization. Expenditures for ordinary maintenance and repairs are expensed to operations as they are incurred. Significant renovations that improve or extend the useful lives of assets are capitalized. As real estate is undergoing redevelopment activities, all property operating expenses directly associated with and attributable to the redevelopment, including interest, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the property when completed. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of redeveloped property, the excess is charged to impairment expense. The capitalization period begins when redevelopment activities are underway and ends when the project is substantially complete. Depreciation is recognized on a straight-line basis over estimated useful lives which range from to 40 years. Upon the acquisition of real estate, we assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price based on these assessments on a relative fair value basis. We assess fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We record acquired intangible assets (including acquired above-market leases, acquired in-place leases and tenant relationships) and acquired intangible liabilities (including below-market leases) at their estimated fair value. We amortize identified intangibles that have finite lives over the period they are expected to contribute directly or indirectly to the future cash flows of the property or business acquired. Our properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such events and changes include macroeconomic conditions, including those caused by global pandemics, like the recent coronavirus disease pandemic (“COVID-19” or the “COVID-19 pandemic”), which resulted in property operational disruption and indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis taking into account the appropriate capitalization rate in determining a future terminal value. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Estimated fair value may be based on discounted future cash flows utilizing appropriate discount and capitalization rates and, in addition to available market information, third-party appraisals, broker selling estimates or sale agreements under negotiation. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows change based on uncertain market conditions, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements. Tenant and Other Receivables and Changes in Collectibility Assessment — Tenant receivables include unpaid amounts billed to tenants, disputed enforceable charges and accrued revenues for future billings to tenants for property expenses. We evaluate the collectibility of amounts due from tenants and disputed enforceable charges on both a lease-by-lease and a portfolio-level, which result from the inability of tenants to make required payments under their operating lease agreements. In light of the recent and ongoing COVID-19 pandemic, the Company is closely monitoring changes in the collectibility assessment of its tenant receivables as a result of certain tenants suffering adverse financial consequences. We recognize changes in the collectibility assessment of these operating leases as adjustments to rental revenue in accordance with ASC 842 Leases. Management exercises judgment in assessing collectibility and considers payment history, current credit status and publicly available information about the financial condition of the tenant, among other factors. Tenant receivables, including receivables arising from the straight-lining of rents, are written-off directly when management deems that the collectibility of substantially all future lease payments from a specific lease is not probable of collection, at which point, the Company will begin recognizing revenue from such leases prospectively, based on actual amounts received. This adjustment effectively reduces cumulative income recognized since lease commencement from an accrual basis to cash basis. In addition, future revenue recognition is limited to amounts paid by the lessee. We will generally return to an accrual basis of accounting, if and when, all delinquent payments become current under the terms of the lease agreement and collectability of substantially all the remaining contractual lease payments is reasonably probable. During the three and nine months ended September 30, 2020, rental revenue deemed uncollectible of $8.4 million and $21.5 million, respectively, was classified as a reduction to rental revenue based on our assessment of the probability of collecting substantially all of the remaining rents for certain tenants. Additionally, we recognized write-offs of $4.7 million and $10.7 million, respectively, related to receivables arising from the straight-lining of rents as a result of tenants impacted by the COVID-19 pandemic. Recently Issued Accounting Literature — Effective for the fiscal period beginning January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses. In connection with the adoption of ASU 2016-03, we also adopted (i) ASU 2018-19 Codification Improvements to ASC 326, Financial Instruments - Credit Losses, (ii) ASU 2019-04, Codification Improvements to ASC 326, Financial Statements - Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments, (iii) ASU 2019-05 Financial Instruments - Credit Losses (ASC 326): Targeted Transition Relief and (iv) ASU 2019-11 Codification Improvements to ASC 326, Financial Instruments - Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses for certain types of financial instruments and also modifies the impairment model with new methodology for estimating credits losses. In November 2018, the FASB issued ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments — Credit Losses, which included amendments to clarify receivables arising from operating leases are within the scope ASC 842 Leases. Due to the adoption of ASC 842 on January 1, 2019, the Company includes rental revenue deemed uncollectible as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income. As of September 30, 2020, the Company did not have any material outstanding financial instruments. The adoption of ASU 2016-13 has had no impact to our consolidated financial statements and disclosures. In December 2019, the FASB issued ASU 2019-12 Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting. ASU 2019-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. We do not expect the adoption of ASU 2019-12 to have a material impact on our consolidated financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022. In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief, that lessors provide to mitigate the economic effects of COVID-19 on lessees, is a lease modification under ASC 842. Instead, when the cash flows resulting from the lease concession granted for COVID-19 rent relief are substantially the same or less than the cash flows of the original contract, an entity may elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). The FASB stated that there are multiple ways to account for deferrals, none of which the FASB believes are more preferable than the others. Two of those methods are: (i) account for the concessions as if no changes to the lease contract were made; under that accounting, a lessor would continue to increase its lease receivable and continue to recognize income, referred to as the (“receivable approach”); or (ii) account for the deferred payments or abatements as variable lease payments; under that accounting, a lessor would recognize the payment as income in profit or loss in the period in which the changes in facts and circumstances on which the variable lease payments are based occurred, referred to as the (“variable approach”). The Company is evaluating its election on a disaggregated basis, with such election applied consistently to leases with similar characteristics and similar circumstances. As of September 30, 2020, the Company granted rent deferrals with an aggregate deferral amount of $2.6 million, with $2.4 million accounted for under the receivable approach by electing the Lease Modification Q&A and $0.2 million accounted for as modifications due to term extensions of the leases. The Company also granted abatements with an aggregate abatement amount of $0.8 million as of September 30, 2020, with $0.4 million accounted for under short term arrangements, $0.1 million accounted for under the variable approach and $0.3 million accounted for as modifications due to the executed agreements including other rental term modifications, such as term extensions and substantial changes in cash flows. The Company remains in active discussions with its impacted tenants to grant further concessions. The full future impact of the Lease Modification Q&A is dependent upon the extent of lease concessions granted to tenants as a result of COVID-19 and the elections made by the Company at the time of entering into such concessions. Refer to Note 10 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements.
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ACQUISITIONS AND DISPOSITIONS |
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ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions During the nine months ended September 30, 2019, no acquisitions were completed by the Company. During the nine months ended September 30, 2020, we closed on the following acquisitions:
(1) The total purchase price for the properties acquired during the nine months ended September 30, 2020 includes $2.5 million of transaction costs incurred related to the acquisitions. On February 12, 2020, the Company acquired Kingswood Center and Kingswood Crossing for $167.3 million, including transaction costs. The properties are located along Kings Highway in the Midwood neighborhood of Brooklyn, NY and were funded via 1031 exchanges using cash proceeds from dispositions. Additionally, as part of the acquisition of Kingswood Center, the Company assumed a $65.5 million mortgage, which matures in 2028. A portion of the acquisition of Kingswood Crossing was completed as a reverse Section 1031 like-kind exchange. We entered into a reverse Section 1031 like-kind exchange agreement with third-party intermediaries, which, for a maximum of 180 days, allowed us to defer for tax purposes, gains on the sale of other properties identified and sold within the period. Until the earlier of the termination of the exchange agreements or 180 days after the respective acquisition dates, the third-party intermediaries are the legal owner of the properties; however, we controlled the activities that most significantly impact each property and retained all of the economic benefits and risks associated with each property. Therefore, at the date of acquisition, we determined that we were the primary beneficiary of these variable interest entities and consolidated the properties and their operations as of the acquisition date. The aggregate purchase price of the above property acquisitions has been allocated as follows:
(1) As of September 30, 2020, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired were 8.7 years and 10.8 years, respectively. Dispositions During the nine months ended September 30, 2020, we disposed of three properties and received proceeds of $58.1 million, net of selling costs, resulting in a $39.8 million net gain on sale of real estate. The sale of all three dispositions were completed as 1031 exchanges with Kingswood Crossing as a result of the sales occurring within 180 days of the Company’s acquisition. During the three months ended September 30, 2019, we disposed of six properties and received proceeds of $77.6 million, net of selling costs, resulting in a $39.7 million net gain on sale of real estate. During the nine months ended September 30, 2019, we disposed of eight properties and received proceeds of $111.4 million, net of selling costs, resulting in a $68.2 million net gain on sale of real estate. During the three and nine months ended September 30, 2019, the Company also sold its lessee position in one of its ground leases and received proceeds of $6.9 million, net of selling costs, and derecognized the lease’s ROU asset and corresponding lease liability. We recognized a gain on sale of lease of $1.8 million on our consolidated statements of income during the three and nine months ended September 30, 2019 as a result of the sale.
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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES | IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES Our identified intangible assets (acquired in-place and above-market leases) and liabilities (acquired below-market leases), net of accumulated amortization, were $54.9 million and $125.8 million, respectively, as of September 30, 2020 and $48.1 million and $128.8 million, respectively, as of December 31, 2019. Amortization of acquired below-market leases, net of acquired above-market leases resulted, in additional rental income of $2.3 million and $6.8 million for the three and nine months ended September 30, 2020 and $2.1 million and $13.9 million for the same periods in 2019. Amortization of acquired in-place leases inclusive of customer relationships resulted in additional depreciation and amortization expense of $2.1 million and $6.3 million for the three and nine months ended September 30, 2020, and $1.7 million and $5.7 million for the same periods in 2019. The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2020 and the five succeeding years:
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGES PAYABLE | MORTGAGES PAYABLE AND UNSECURED DEBT The following is a summary of mortgages payable as of September 30, 2020 and December 31, 2019.
(1)Bears interest at one month LIBOR plus 160 bps. The mortgage loans encumbered by these properties were modified during the second quarter of 2020 to contain a payment deferral period from June 1, 2020 through August 1, 2020. (2)Bears interest at one month LIBOR plus 190 bps. The mortgage loans encumbered by these properties were modified during the second quarter of 2020 to contain an interest-only payment period from May 1, 2020 through July 1, 2020. (3)The mortgage payable balance on the loan secured by Mt Kisco includes $0.9 million of unamortized debt discount as of both September 30, 2020 and December 31, 2019. The effective interest rate including amortization of the debt discount is 7.31% as of September 30, 2020. (4)The mortgage payable balance on the loan secured by Hudson Mall includes $0.8 million and $1.0 million of unamortized debt premium as of September 30, 2020 and December 31, 2019, respectively. The effective interest rate including amortization of the debt premium is 3.91% as of September 30, 2020. (5)The mortgage payable balance on the loan secured by Yonkers Gateway Center includes $0.5 million and $0.6 million of unamortized debt premium as of September 30, 2020 and December 31, 2019, respectively. The effective interest rate including amortization of the debt premium is 3.74% as of September 30, 2020. (6)The mortgage payable balance on the loan secured by Kingswood Center includes $6.4 million of unamortized debt premium as of September 30, 2020. The effective interest rate including amortization of the debt premium is 3.74% as of September 30, 2020. (7)Bears interest at one month LIBOR plus 1.05% as of September 30, 2020. (8)In April 2020, the non-recourse mortgage loan on Las Catalinas Mall was defaulted on and became subject to incremental default interest of 3.00% while the outstanding balance remains unpaid. We currently remain in active negotiations with the special servicer and no determination has been made as to the timing or ultimate resolution of this matter. (9)On June 1, 2020, we refinanced the mortgage secured by The Outlets at Montehiedra in Puerto Rico, whereby the $30 million junior loan plus accrued interest of $5.4 million was forgiven and the senior loan was replaced by a new $82 million 10-year fixed rate mortgage, bearing interest at 5.00%. The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.3 billion as of September 30, 2020. Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and in certain circumstances require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. As of September 30, 2020, we were in compliance with all debt covenants with the exception of those related to our mortgage loan on Las Catalinas Mall. The mortgage on Las Catalinas Mall has been in default since April 2020. As of September 30, 2020, the principal repayments of the Company’s total outstanding debt for the next five years and thereafter are as follows:
(1) Remainder of 2020. Revolving Credit Agreement On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017, we amended and extended the Agreement to increase the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021, with two six-month extension options. On July 29, 2019, we entered into a second amendment to the Agreement to extend the maturity date to January 29, 2024, with two six-month extension options. In March 2020, the Company borrowed $250 million under the Agreement. As of September 30, 2020, $350 million of credit remained available to be drawn. Financing costs associated with executing the Agreement of $3.6 million and $3.9 million as of September 30, 2020 and December 31, 2019, respectively, are included in deferred financing costs, net in the consolidated balance sheets. On June 3, 2020, we entered into a third amendment to the Agreement, which among other things, modifies certain definitions and the measurement period for certain financial covenants to a trailing four-quarter period instead of the most recent quarter period annualized. Company borrowings under the Agreement are subject to interest at LIBOR plus 1.05% to 1.50% and an annual facility fee of 15 to 30 basis points. Both the spread over LIBOR and the facility fee are based on our current leverage ratio and are subject to increase if our leverage ratio increases above predefined thresholds. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x. Subsequent to September 30, 2020, the Company repaid its $250 million outstanding borrowings under the Agreement. Mortgage on The Outlets at Montehiedra During the second quarter of 2020, we completed the refinancing of our non-recourse mortgage on The Outlets at Montehiedra (“Montehiedra”) in Puerto Rico. Prior to the refinancing, the mortgage was comprised of an $83 million senior loan bearing interest at 5.33% and a $30 million junior loan bearing interest at 3.00%, plus total accrued interest of $5.7 million. Under the payoff provisions of the prior mortgage, the $30 million junior loan plus accrued interest of $5.4 million on the junior loan was forgiven and the senior loan was replaced by a new $82 million 10-year fixed rate mortgage, bearing interest at 5.00%. As a result of the transaction, we recognized a net gain on extinguishment of debt of $34.9 million during the nine months ended September 30, 2020, comprised of the forgiven $30 million junior loan plus accrued interest of $5.4 million, offset by the write-off of $0.4 million of unamortized deferred financing fees and $0.1 million of transaction costs incurred. The Company has provided a $12.5 million corporate guarantee if and only when Sears Holding Corporation (“Kmart”) vacates or stops paying rent. The guarantee will be released should certain financial metrics at Montehiedra be achieved even if the Kmart box remains vacant. Irrespective of whether Kmart vacates or stops paying rent, the guarantee amortizes commensurate with the loan amortization schedule and will reduce to zero in approximately six years. Mortgage on Las Catalinas Mall In April 2020, we notified the servicer of the $129 million non-recourse mortgage loan on Las Catalinas Mall in Puerto Rico that cash flow would be insufficient to service the debt and that we were unwilling to fund the shortfalls. Pursuant to the loan agreement, the loan is in default, is subject to incremental default interest, which increased the interest rate from 4.43% to 7.43% while the outstanding balance remains unpaid, and the lender has the ability to accelerate the full loan balance. We have accrued interest of $5.3 million related to this mortgage, which is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet as of September 30, 2020. We currently remain in active negotiations with the special servicer and no determination has been made as to the timing or ultimate resolution of this matter. Mortgage on property in Montclair, NJ On August 6, 2020, the Company obtained a 10-year non-recourse mortgage loan of $7.3 million at a rate of 3.15% on its property in Montclair, NJ.
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INCOME TAXES |
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Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the filing of its 2015 tax return for its tax year ended December 31, 2015. To the extent the Company meets certain requirements under the Code, the Company will not be taxed on its federal taxable income. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income taxes at regular corporate rates, including any alternative minimum tax, which, for corporations, was repealed under the Tax Cuts and Jobs Act (“TCJA”) and may not be able to qualify as a REIT for the four subsequent taxable years. The Company is subject to certain foreign and state and local income taxes, including on its two Puerto Rico malls, which are included in income tax benefit (expense) in the consolidated statements of income. The Company is also subject to certain other taxes, including state and local franchise taxes which are included in general and administrative expenses in the consolidated statements of income. For U.S. federal income tax purposes, the REIT and other minority members are partners in the Operating Partnership. As such, the partners are required to report their share of taxable income on their respective tax returns. However, during the nine months ended September 30, 2020, certain non-real estate operating activities that could not be performed by the REIT, occurred through the Company’s taxable REIT subsidiary (“TRS”), and the Company’s TRS is subject to federal, state and local income taxes. These income taxes are included in the income tax expense in the consolidated statements of income. On June 1, 2020, the Company completed a mortgage refinancing of its mall in Puerto Rico, The Outlets at Montehiedra. The debt forgiven as a part of this refinancing resulted in a write-down to our Puerto Rico tax basis in the mall equal to such amount of debt forgiven and the recognition of a deferred tax liability on the Company’s consolidated balance sheet, which amounted to $10.3 million as of September 30, 2020. Refer to Note 6 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q for further information on the refinancing. On June 5, 2020, the Company completed a legal entity restructuring of Montehiedra. Prior to the legal entity restructuring, our two Puerto Rico malls were held in a special partnership for Puerto Rico tax purposes (the general partner being a qualified REIT subsidiary or “QRS”) and subject to a 29% non-resident withholding tax which is included in income tax benefit (expense) in the consolidated statements of income. The legal entity restructuring resulted in a step up in our Puerto Rico tax basis in Montehiedra and the recognition of a deferred tax asset on the Company’s consolidated balance sheet, which amounted to $23.7 million as of September 30, 2020. As a result of the legal entity restructuring of Montehiedra, the Operating Partnership, and therefore, the REIT and the other minority partners, are now deemed to be engaged in a trade or business in Puerto Rico with respect to their allocable share of Montehiedra’s net income and, as such, required to file Puerto Rico income tax returns. The REIT will be subject to regular Puerto Rico corporate income taxes on its allocable share of Montehiedra’s operating activities as opposed to the former 29% non-resident withholding tax on the net income from such operating activities allocated to the Operating Partnership. The Puerto Rico corporate income tax consists of a flat 18.5% tax rate plus a graduated income surcharge tax for a maximum corporate income tax rate of 37.5%. In addition, the REIT is subject to a 10% branch profit tax on the earnings and profits generated from Montehiedra and such tax is included in income tax expense in the consolidated statements of income. Our other Puerto Rico property, Las Catalinas Mall, continues to be taxed as a special partnership and is subject to the 29% non-resident withholding tax. Together, the refinancing and legal entity restructuring transactions resulted in a deferred tax asset, net of $13.4 million and the Company recognized an accompanying Puerto Rico income tax benefit on the Company’s consolidated statements of income during the nine months ended September 30, 2020. As a result of the Montehiedra refinancing, the Company recognized a gain on extinguishment of debt for U.S. federal income tax purposes and implemented various tax planning strategies to limit its impact on the Company’s overall U.S. federal taxable income. The strategies implemented resulted in the recognition of a state and local income tax liability and corresponding deferred tax asset for the REIT of $1.7 million during the three and nine months ended September 30, 2020. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required, if based on the evidence available, it is more likely than not (a likelihood of more than 50 percent) that some portion or all of the deferred tax assets will not be realized. A valuation allowance for deferred tax assets is provided if the Company believes that it is more likely than not that it will not realize the tax benefit of deferred tax assets based on available evidence at the time the determination is made. A change in circumstances may cause the Company to change its judgment about whether a deferred tax asset will more likely than not be realized by the Company. During the three months ended September 30, 2020, the Company recorded a $1.7 million valuation allowance against the deferred tax asset attributable to the REIT’s state and local income tax liability incurred from strategies implemented to limit the impact of the Montehiedra refinancing on the Company’s U.S. federal taxable income. As of September 30, 2020, the Company’s total valuation allowance was $1.7 million. For the three and nine months ended September 30, 2020, the REIT’s state and local income tax expense was $1.7 million and the Puerto Rico income tax benefit was $1.3 million and $14.8 million, respectively. For the three and nine months ended September 30, 2019, the Puerto Rico income tax expense was $0.1 million and $1.2 million, respectively. All amounts for the three and nine months ended September 30, 2020 and 2019 are included in income tax benefit (expense) on the consolidated statements of income.
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LEASES (Notes) |
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LEASES | LEASES All rental revenue was generated from operating leases for the three and nine months ended September 30, 2020 and September 30, 2019, respectively. The components of rental revenue for the three and nine months ended September 30, 2020 and 2019 were as follows:
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FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial Assets and Liabilities Measured at Fair Value on a Recurring or Non-Recurring Basis There were no financial assets or liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2020 and December 31, 2019. Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on the consolidated balance sheets include cash and cash equivalents, mortgages payable and unsecured credit facility borrowings. Cash and cash equivalents are carried at cost, which approximates fair value. The fair values of our mortgages payable and unsecured credit facility borrowings are calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist. The fair value of cash and cash equivalents is classified as Level 1 and the fair values of mortgages payable and unsecured credit facility borrowings are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments as of September 30, 2020 and December 31, 2019.
(1) Carrying amounts exclude unamortized debt issuance costs of $10.3 million and $10.1 million as of September 30, 2020 and December 31, 2019, respectively. Nonfinancial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We assess the carrying value of our properties for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Such events and changes include macroeconomic conditions, including those caused by global pandemics, such as COVID-19, which may result in property operational disruption and indicate that the carrying amount may not be recoverable. No impairment charges were recognized during the three and nine months ended September 30, 2020. During the three months ended June 30, 2019, the Company recognized impairment charges of $18.7 million on two retail properties that the Company intended to market and sell. The impairment loss was calculated as the difference between the assets’ individual carrying values and the estimated aggregated fair values of $28.5 million, less estimated selling costs. We also recognized a $4.0 million impairment charge on an additional property during the three months ended March 31, 2019 as a result of the loss of a significant tenant at the property. The valuation of these properties were based on comparable sale transactions in the properties’ surrounding areas. The Company believes the inputs utilized to measure the fair values were reasonable in the context of applicable market conditions, however due to the significance of the unobservable inputs in the overall fair value measures, including market conditions and expectations for growth, the Company determined that such fair value measurements are classified as Level 3. The impairment charges are included as an expense within casualty and impairment loss, net on our consolidated statements of income for the nine months ended September 30, 2019.
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COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
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Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES There are various legal actions against us in the ordinary course of business. After consultation with legal counsel, we have concluded that the outcome of such matters will not have a material adverse effect on our financial condition, results of operations or cash flows. Redevelopment As of September 30, 2020, we had approximately $132.4 million of active development, redevelopment and anchor repositioning projects under way, of which $91.3 million remains to be funded. Further, while we have identified future projects in our development pipeline, we are under no obligation to execute and fund any of these projects and each of these projects is being reevaluated considering market conditions. The Company has updated many of its active project stabilization dates to reflect the impact of the COVID-19 pandemic on its contractors, tenants and vendors. Insurance The Company maintains (i) general liability insurance with limits of $200 million for properties in the U.S. and Puerto Rico, (ii) all-risk property insurance with limits of $500 million per occurrence and in the aggregate for properties in the U.S. and $147 million for properties in Puerto Rico, subject to the terms, conditions, exclusions, deductibles and sub-limits when applicable for certain perils such as floods and earthquakes, (iii) pollution insurance with limits of $50 million for properties in the U.S. and Puerto Rico and (iv) numerous other insurance policies including trustees’ and officers’ insurance, cyber, workers’ compensation and automobile-related liabilities insurance. The Company’s insurance includes coverage for acts of terrorism but excludes coverage for nuclear, biological, chemical or radiological terrorism events as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020. The Company’s coverage for certain cybersecurity losses provides first and third-party coverage including network interruption, event management, cyber extortion and claims for media content, security and privacy liability. The Company’s coverage for pollution related losses provides certain remediation and business interruption coverage for specified pollution incidents, which includes the presence of viruses. The Company has filed insurance claims related to COVID-19 and is pursuing available coverage. Insurance premiums are typically charged directly to each of the retail properties and warehouses but not all of the cost of such premiums are recovered. The Company is responsible for deductibles, losses in excess of insurance coverage, and the portion of premiums not reimbursable by tenants at our properties, which could be material. We continue to monitor the state of the insurance market and the scope and costs of available coverage. We cannot anticipate what coverage will be available on commercially reasonable terms in the future and expect premiums across most coverage lines to increase in light of recent events. The incurrence of uninsured losses, costs or uncovered premiums could materially and adversely affect our business, results of operations and financial condition. Certain of our loans and other agreements contain customary covenants requiring the maintenance of insurance coverage. Although we believe that we currently have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders or other counterparties insist on greater coverage than we are able to obtain, such requirement could materially and adversely affect our ability to finance our properties and expand our portfolio. Environmental Matters Each of our properties has been subjected to varying degrees of environmental assessment at various times. Based on these assessments, we have accrued costs of $1.0 million and $2.7 million on our consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively, for remediation costs for environmental contamination at certain properties. While this accrual reflects our best estimates of the potential costs of remediation at these properties, there can be no assurance that the actual costs will not exceed these amounts. Although we are not aware of any other material environmental contamination, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us. Tornado-Related Charges On June 13, 2018, a tornado hit our shopping center in Wilkes-Barre, PA, damaging approximately 13% of the property’s gross leasable area. During the nine months ended September 30, 2019, the Company settled the related insurance claim with its carrier for $5.5 million. Of this amount, the Company recognized $4.8 million as a casualty gain in the nine months ended September 30, 2019. As part of the settlement, the Company recognized $0.3 million as business interruption proceeds within rental revenue for the nine months ended September 30, 2019. Hurricane-Related Charges On September 20, 2017, Hurricane Maria made landfall, damaging our two properties in Puerto Rico. In June 2019, the Company reached a settlement agreement with its carrier regarding its final insurance recovery related to Hurricane Maria for $14.3 million, of which $3.3 million was previously received, subject to deductibles of $2.3 million. We recognized an $8.7 million casualty gain in the nine months ended September 30, 2019 as a result of the remaining insurance proceeds from the settlement agreement for our two malls in Puerto Rico. Pandemic-Related Contingencies On January 30, 2020, the spread of the COVID-19 outbreak was declared a Public Health Emergency of International Concern by the World Health Organization ("WHO"). On March 11, 2020, WHO characterized the COVID-19 outbreak as a pandemic. Since March, the continually evolving COVID-19 pandemic impacted our tenants and business operations. The Company has taken precautions to protect the safety, health and well-being of its employees and tenants. The Company has concentrated operations in the New York metropolitan area and, although local and state governments implemented various phased reopening plans for nonessential businesses during the third quarter of 2020, certain tenants continued to face adverse financial consequences from reduced business operations and social distancing requirements as a result of the COVID-19 pandemic. As of November 3, 2020, 98% of our portfolio's gross leasable area was open for business and the Company collected approximately 83% of third quarter rental revenue billed and 86% of October rental revenue billed. As of September 30, 2020, the Company executed rent deferrals with an aggregate deferral amount of $2.6 million and a weighted average payback period of approximately six months. Additionally, as of September 30, 2020, the Company executed rent abatements with an aggregate abatement amount of $0.8 million. The Company currently remains in active discussions and negotiations with its impacted tenants and anticipates granting further rent concessions or other lease-related relief, such as the deferral of lease payments for a period of time to be paid over the remaining term of the lease. We are evaluating rent relief requests on a case-by-case basis, however not all requests for rent relief may be granted. The Company is not currently aware of any other loss contingencies related to the COVID-19 pandemic that would require recognition at this time, with the exception of abatements already discussed with tenants or deferrals that may not be collected. The Company is closely monitoring changes in the collectibility assessment of its tenant receivables as a result of certain tenants suffering adverse financial consequences due to the COVID-19 pandemic. During the three and nine months ended September 30, 2020, rental revenue deemed uncollectible of $8.4 million and $21.5 million, respectively, was classified as a reduction to rental revenue based on our assessment of the probability of collecting substantially all of the remaining rents for certain tenants. Additionally, we recognized write-offs of $4.7 million and $10.7 million, respectively, related to receivables arising from the straight-lining of rents as a result of tenants impacted by the COVID-19 pandemic. Bankruptcies Although our rental revenue is supported by long-term leases, leases may be rejected in a bankruptcy proceeding and the related tenant stores may permanently vacate prior to lease expiration. In the event a tenant with a significant number of leases or square footage in our shopping centers files for bankruptcy and rejects its leases with us, we could experience a reduction in our revenues. We monitor the operating performance and rent collections of all tenants in our shopping centers, especially those tenants in arrears or operating retail formats that are experiencing significant changes in competition, business practice, or store closings in other locations. Given the economic environment brought upon by COVID-19, certain tenants experienced liquidity or financial hardships and filed for Chapter 11 bankruptcy protection during the three and nine months ended September 30, 2020. Although some of these tenants intend to exit the Chapter 11 bankruptcy process and resume operations, the outcomes of such proceedings are unknown and the Company is currently exploring leasing alternatives for these spaces. Specifically, Century 21 Department Stores LLC (“Century 21”) filed for Chapter 11 bankruptcy protection on September 10, 2020. Prior to bankruptcy, the Company had one lease with Century 21 in Paramus, NJ comprising approximately 157,000 sf, which generated $4.4 million in annual rental revenue. In connection with the bankruptcy, the Company recognized a write-off of $2.5 million of receivables arising from the straight-lining of rents, and recognized $0.9 million and $2.1 million as rental revenue deemed uncollectible (classified within rental revenue) for the three and nine months ended September 30, 2020. Additionally, 24 Hour Fitness USA, Inc. (“24 Hour Fitness”) filed for Chapter 11 bankruptcy protection on June 15, 2020. Prior to bankruptcy, the Company had one lease with 24 Hour Fitness in Paramus, NJ comprising approximately 54,000 sf, which generated $3.1 million in annual rental revenue. In connection with the bankruptcy, the Company recognized a write-off of $3.5 million of receivables arising from the straight-lining of rents, and recognized $0.5 million and $1.3 million as rental revenue deemed uncollectible (classified within rental revenue) for the three and nine months ended September 30, 2020, respectively. Subsequent to the third quarter, 24 Hour Fitness communicated its intentions to continue operations at the Company's location.
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PREPAID EXPENSES AND OTHER ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER ASSETS | PREPAID EXPENSES AND OTHER ASSETS The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets:
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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES The following is a summary of the composition of accounts payable, accrued expenses other liabilities in the consolidated balance sheets:
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INTEREST AND DEBT EXPENSE |
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INTEREST AND DEBT EXPENSE | INTEREST AND DEBT EXPENSE The following table sets forth the details of interest and debt expense in the consolidated statements of income:
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EQUITY AND NONCONTROLLING INTEREST |
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Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
EQUITY AND NONCONTROLLING INTEREST | EQUITY AND NONCONTROLLING INTEREST Share Repurchase Program In March 2020, the Company’s Board of Trustees authorized a share repurchase program for up to $200 million of the Company’s common shares. Under the program, the Company may repurchase its shares from time to time in the open market or in privately negotiated transactions in compliance with Securities and Exchange Commission Rule 10b-18. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company’s shares, trading volume and general market conditions. The share repurchase program does not obligate the Company to acquire any particular amount of common shares and may be suspended or discontinued at any time at the Company’s discretion. During the third quarter of 2020, no shares were repurchased by the Company. Cumulative total purchases since inception are 5.9 million shares at a weighted average share price of $9.22 amounting to $54.1 million. Dividends and Distributions Beginning in the second quarter, we temporarily suspended our dividend as a result of the COVID-19 pandemic and resulting uncertainty, and as such, no dividends were declared on our common shares or OP units during the three months ended September 30, 2020. During the three months ended September 30, 2019, the Company declared distributions on our common shares and OP units of $0.22 per share/unit. During the nine months ended September 30, 2020 and 2019, respectively, the Company declared distributions on our common shares and OP units of $0.22 and $0.66 per share/unit in the aggregate. Noncontrolling Interests in Operating Partnership Noncontrolling interests in the Operating Partnership reflected on the consolidated balance sheets of the Company are comprised of OP units and limited partnership interests in the Operating Partnership in the form of LTIP unit awards. LTIP unit awards were granted to certain executives pursuant to our 2015 Omnibus Share Plan (the “Omnibus Share Plan”) and our 2018 Inducement Equity Plan (the “Inducement Plan”). OP units were issued to contributors in exchange for their property interests in connection with the Company’s property acquisitions in 2017. The total of the OP units and LTIP units represent a 3.9% and 4.1% weighted-average interest in the Operating Partnership for the three and nine months ended September 30, 2020, respectively. Holders of outstanding vested LTIP units may, from and after two years from the date of issuance, redeem their LTIP units for cash, or for the Company’s common shares on a one-for-one basis, solely at our election. Holders of outstanding OP units may redeem their units for cash or the Company’s common shares on a one-for-one basis, solely at our election. In connection with the separation from Vornado Realty L.P. (“VRLP”), the Company issued 5.7 million OP units, which represented a 5.4% interest in the Operating Partnership, to VRLP in exchange for interests in VRLP properties contributed by VRLP. On February 28, 2019, the Company issued 5.7 million common shares to VRLP, in exchange for an equal number of OP units after receiving a notice of redemption from VRLP. The issuance is exempt from registration in reliance upon Section 4(a)(2) of the Securities Act of 1933, as amended, on the basis that no public offering was made. Noncontrolling Interest in Consolidated Subsidiaries The noncontrolling interest relates to the 5% interest held by others in our property in Walnut Creek, CA (Mount Diablo). The net income (loss) attributable to noncontrolling interest is presented separately in our consolidated statements of income.
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SHARE-BASED COMPENSATION |
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SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-Based Compensation Expense Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows:
(1) LTIP expense includes the time-based portion of the 2018, 2019 and 2020 LTI Plans. (2) Performance-based LTI expense includes the 2015 and 2017 OPP plans and the performance-based portion of the 2018, 2019 and 2020 LTI Plans. The total share-based compensation expense recognized for the nine months ended September 30, 2020 includes $5.6 million of accelerated amortization of unvested equity awards in connection with the executive transition of our former President of Development and the amount for the nine months ended September 30, 2019 includes $0.4 million of accelerated amortization of unvested equity awards in connection with the executive transition of our former Chief Operating Officer. Equity award activity during the nine months ended September 30, 2020 included: (i) 2,208,304 stock options vested, (ii) 297,195 LTIP units granted, (iii) 341,022 LTIP units vested, (iv) 50,285 restricted shares vested and (v) 31,679 restricted shares granted. 2020 Long-Term Incentive Plan On February 20, 2020, the Compensation Committee of the Board of Trustees of the Company approved the Company’s 2020 Long-Term Incentive Plan (“2020 LTI Plan”). The Plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, have the opportunity to earn awards in the form of LTIP units that vest based on (i) the passage of time (one-third of the fair value of the program) and (ii) performance goals tied to our relative and absolute total shareholder return (“TSR”) during the three-year performance period following their grant (two-thirds of the fair value of the program). The total grant date fair value under the 2020 LTI Plan was $8.8 million comprising performance-based and time-based awards.
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EARNINGS PER SHARE AND UNIT |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE AND UNIT | EARNINGS PER SHARE AND UNIT Urban Edge Earnings per Share We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of Urban Edge common shares and participating securities is calculated according to dividends declared and participating rights in undistributed earnings. Restricted shares issued pursuant to our share-based compensation program are considered participating securities, and as such have non-forfeitable rights to receive dividends. The following table sets forth the computation of our basic and diluted earnings per share:
(1) For the three months ended September 30, 2019 and the three and nine months September 30, 2020, the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for these periods. Operating Partnership Earnings per Unit The following table sets forth the computation of basic and diluted earnings per unit:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020. Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities Exchange Commission (“SEC”). |
Consolidation and Noncontrolling Interests | The consolidated balance sheets as of September 30, 2020 and December 31, 2019 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. The consolidated statements of income for the three and nine months ended September 30, 2020 and 2019 include the consolidated accounts of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation. |
Recently Issued Accounting Literature | Recently Issued Accounting Literature — Effective for the fiscal period beginning January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses. In connection with the adoption of ASU 2016-03, we also adopted (i) ASU 2018-19 Codification Improvements to ASC 326, Financial Instruments - Credit Losses, (ii) ASU 2019-04, Codification Improvements to ASC 326, Financial Statements - Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments, (iii) ASU 2019-05 Financial Instruments - Credit Losses (ASC 326): Targeted Transition Relief and (iv) ASU 2019-11 Codification Improvements to ASC 326, Financial Instruments - Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses for certain types of financial instruments and also modifies the impairment model with new methodology for estimating credits losses. In November 2018, the FASB issued ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments — Credit Losses, which included amendments to clarify receivables arising from operating leases are within the scope ASC 842 Leases. Due to the adoption of ASC 842 on January 1, 2019, the Company includes rental revenue deemed uncollectible as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income. As of September 30, 2020, the Company did not have any material outstanding financial instruments. The adoption of ASU 2016-13 has had no impact to our consolidated financial statements and disclosures. In December 2019, the FASB issued ASU 2019-12 Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting. ASU 2019-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. We do not expect the adoption of ASU 2019-12 to have a material impact on our consolidated financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022. In April 2020, the FASB issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated with the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief, that lessors provide to mitigate the economic effects of COVID-19 on lessees, is a lease modification under ASC 842. Instead, when the cash flows resulting from the lease concession granted for COVID-19 rent relief are substantially the same or less than the cash flows of the original contract, an entity may elect whether to apply the modification guidance (i.e. assume the relief was always contemplated by the contract or assume the relief was not contemplated by the contract). The FASB stated that there are multiple ways to account for deferrals, none of which the FASB believes are more preferable than the others. Two of those methods are: (i) account for the concessions as if no changes to the lease contract were made; under that accounting, a lessor would continue to increase its lease receivable and continue to recognize income, referred to as the (“receivable approach”); or (ii) account for the deferred payments or abatements as variable lease payments; under that accounting, a lessor would recognize the payment as income in profit or loss in the period in which the changes in facts and circumstances on which the variable lease payments are based occurred, referred to as the (“variable approach”). The Company is evaluating its election on a disaggregated basis, with such election applied consistently to leases with similar characteristics and similar circumstances. As of September 30, 2020, the Company granted rent deferrals with an aggregate deferral amount of $2.6 million, with $2.4 million accounted for under the receivable approach by electing the Lease Modification Q&A and $0.2 million accounted for as modifications due to term extensions of the leases. The Company also granted abatements with an aggregate abatement amount of $0.8 million as of September 30, 2020, with $0.4 million accounted for under short term arrangements, $0.1 million accounted for under the variable approach and $0.3 million accounted for as modifications due to the executed agreements including other rental term modifications, such as term extensions and substantial changes in cash flows. The Company remains in active discussions with its impacted tenants to grant further concessions. The full future impact of the Lease Modification Q&A is dependent upon the extent of lease concessions granted to tenants as a result of COVID-19 and the elections made by the Company at the time of entering into such concessions. Refer to Note 10 to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements.
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ACQUISITIONS AND DISPOSITIONS (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | During the nine months ended September 30, 2019, no acquisitions were completed by the Company. During the nine months ended September 30, 2020, we closed on the following acquisitions:
(1) The total purchase price for the properties acquired during the nine months ended September 30, 2020 includes $2.5 million of transaction costs incurred related to the acquisitions.
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The aggregate purchase price of the above property acquisitions has been allocated as follows:
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IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Annual Amortization Expense | The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2020 and the five succeeding years:
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MORTGAGES PAYABLE (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mortgages Payable | The following is a summary of mortgages payable as of September 30, 2020 and December 31, 2019.
(1)Bears interest at one month LIBOR plus 160 bps. The mortgage loans encumbered by these properties were modified during the second quarter of 2020 to contain a payment deferral period from June 1, 2020 through August 1, 2020. (2)Bears interest at one month LIBOR plus 190 bps. The mortgage loans encumbered by these properties were modified during the second quarter of 2020 to contain an interest-only payment period from May 1, 2020 through July 1, 2020. (3)The mortgage payable balance on the loan secured by Mt Kisco includes $0.9 million of unamortized debt discount as of both September 30, 2020 and December 31, 2019. The effective interest rate including amortization of the debt discount is 7.31% as of September 30, 2020. (4)The mortgage payable balance on the loan secured by Hudson Mall includes $0.8 million and $1.0 million of unamortized debt premium as of September 30, 2020 and December 31, 2019, respectively. The effective interest rate including amortization of the debt premium is 3.91% as of September 30, 2020. (5)The mortgage payable balance on the loan secured by Yonkers Gateway Center includes $0.5 million and $0.6 million of unamortized debt premium as of September 30, 2020 and December 31, 2019, respectively. The effective interest rate including amortization of the debt premium is 3.74% as of September 30, 2020. (6)The mortgage payable balance on the loan secured by Kingswood Center includes $6.4 million of unamortized debt premium as of September 30, 2020. The effective interest rate including amortization of the debt premium is 3.74% as of September 30, 2020. (7)Bears interest at one month LIBOR plus 1.05% as of September 30, 2020. (8)In April 2020, the non-recourse mortgage loan on Las Catalinas Mall was defaulted on and became subject to incremental default interest of 3.00% while the outstanding balance remains unpaid. We currently remain in active negotiations with the special servicer and no determination has been made as to the timing or ultimate resolution of this matter. (9)On June 1, 2020, we refinanced the mortgage secured by The Outlets at Montehiedra in Puerto Rico, whereby the $30 million junior loan plus accrued interest of $5.4 million was forgiven and the senior loan was replaced by a new $82 million 10-year fixed rate mortgage, bearing interest at 5.00%.
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Schedule of Principal Repayments | As of September 30, 2020, the principal repayments of the Company’s total outstanding debt for the next five years and thereafter are as follows:
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LEASES (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Rental Revenue | The components of rental revenue for the three and nine months ended September 30, 2020 and 2019 were as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instrument Carrying Amounts and Fair Values | The table below summarizes the carrying amounts and fair value of these financial instruments as of September 30, 2020 and December 31, 2019.
(1) Carrying amounts exclude unamortized debt issuance costs of $10.3 million and $10.1 million as of September 30, 2020 and December 31, 2019, respectively.
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PREPAID EXPENSES AND OTHER ASSETS (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Composition of Prepaid Expenses and Other Assets | The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets:
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ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Composition of Accounts Payable, Accrued Expenses and Other Liabilites | The following is a summary of the composition of accounts payable, accrued expenses other liabilities in the consolidated balance sheets:
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INTEREST AND DEBT EXPENSE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest and Debt Expense | The following table sets forth the details of interest and debt expense in the consolidated statements of income:
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SHARE-BASED COMPENSATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share-based Compensation Expense | Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows:
(1) LTIP expense includes the time-based portion of the 2018, 2019 and 2020 LTI Plans. (2) Performance-based LTI expense includes the 2015 and 2017 OPP plans and the performance-based portion of the 2018, 2019 and 2020 LTI Plans.
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EARNINGS PER SHARE AND UNIT (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings per Share and Unit | The following table sets forth the computation of our basic and diluted earnings per share:
(1) For the three months ended September 30, 2019 and the three and nine months September 30, 2020, the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for these periods. Operating Partnership Earnings per Unit The following table sets forth the computation of basic and diluted earnings per unit:
|
ORGANIZATION (Details) ft² in Millions |
9 Months Ended |
---|---|
Sep. 30, 2020
ft²
property
| |
Real Estate Properties [Line Items] | |
Area of real estate property (in sq ft) | ft² | 15.1 |
Wholly owned properties | Shopping Center | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 72 |
Wholly owned properties | Mall | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 4 |
Wholly owned properties | Warehouse Park | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 2 |
Operating Partnership | Parent | Vornado Realty L.P. | |
Real Estate Properties [Line Items] | |
Noncontrolling interest percentage | 96.10% |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Rental revenue deemed uncollectible | $ 21,464 | $ 1,107 | |
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 1 year | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 40 years | ||
COVID-19 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit loss, writeoff | $ 4,700 | $ 10,700 | |
Rental revenue deemed uncollectible | 8,400 | 21,500 | |
Rent deferrals granted, amount | 2,600 | 2,600 | |
Rent deferrals granted under lease modification method | 2,400 | 2,400 | |
Rent deferrals granted with lease term modifications | 200 | 200 | |
Abatements granted, aggregate amount | 800 | 800 | |
Abatements granted, portion under short-term arrangements | 400 | 400 | |
Abatements granted, portion under variable approach | 100 | 100 | |
Abatements granted, modifications | $ 300 | $ 300 |
ACQUISITIONS AND DISPOSITIONS (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Feb. 12, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
property
lease
|
Sep. 30, 2020
USD ($)
property
|
Sep. 30, 2019
USD ($)
property
|
|
Business Acquisition [Line Items] | |||||
Purchase price | $ 167,289 | $ 167,289 | |||
Number of acquisitions completed by the Company | 0 | ||||
Gain on sale of real estate | 0 | $ 39,716 | $ 39,775 | $ 68,219 | |
Number of ground lease positions sold | lease | 1 | ||||
Proceeds From Sale On Termination Of Lease | $ 6,900 | 0 | 6,943 | ||
Gain (Loss) on Termination of Lease | 0 | $ 1,849 | $ 0 | $ 1,849 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Business Acquisition [Line Items] | |||||
Number of disposed properties | property | 6 | 3 | 8 | ||
Aggregate sale price of disposed properties | $ 77,600 | $ 58,100 | $ 111,400 | ||
Gain on sale of real estate | $ 39,700 | (39,800) | $ 68,200 | ||
Kingswood Center And Kingswood Crossing | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 167,300 | 167,300 | |||
Purchase price of real estate property acquired | 167,289 | ||||
Kingswood Center | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 90,212 | 90,212 | |||
Purchase price of real estate property acquired | $ 90,212 | ||||
Kingswood Crossing | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 77,077 | $ 77,077 | |||
Purchase price of real estate property acquired | $ 77,077 | ||||
Reverse Section 1031 like-kind exchange, term | 180 days | ||||
Mortgages | Kingswood Center | |||||
Business Acquisition [Line Items] | |||||
Mortgage loan related to property sales | $ 65,500 | $ 65,500 |
ACQUISITIONS AND DISPOSITIONS - Summary of Acquisition Activity (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Feb. 12, 2020
USD ($)
ft²
|
Sep. 30, 2020
USD ($)
ft²
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
ft²
|
Sep. 30, 2019
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Gain on sale of real estate | $ 0 | $ 39,716 | $ 39,775 | $ 68,219 | |
Area of real estate property (in sq ft) | ft² | 15,100,000 | 15,100,000 | |||
Purchase price | $ 167,289 | $ 167,289 | |||
Transaction costs | 2,500 | 2,500 | |||
Kingswood Center | |||||
Business Acquisition [Line Items] | |||||
Area of real estate property (in sq ft) | ft² | 130,000 | ||||
Purchase price | 90,212 | 90,212 | |||
Purchase Price | $ 90,212 | ||||
Kingswood Crossing | |||||
Business Acquisition [Line Items] | |||||
Area of real estate property (in sq ft) | ft² | 110,000 | ||||
Purchase price | $ 77,077 | 77,077 | |||
Purchase Price | $ 77,077 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Business Acquisition [Line Items] | |||||
Gain on sale of real estate | $ 39,700 | $ (39,800) | $ 68,200 |
ACQUISITIONS AND DISPOSITIONS - Aggregate Purchase Price Allocations (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
| |
Business Acquisition [Line Items] | |
Land | $ 23,840 |
Buildings and improvements | 140,925 |
Identified intangible assets | 14,031 |
Identified intangible liabilities | (4,534) |
Debt premium | (6,973) |
Total Purchase Price | $ 167,289 |
Weighted average useful life | 8 years 8 months 12 days |
Weighted average related liabilities | 10 years 9 months 18 days |
Kingswood Center | |
Business Acquisition [Line Items] | |
Land | $ 15,690 |
Buildings and improvements | 76,766 |
Identified intangible assets | 9,263 |
Identified intangible liabilities | (4,534) |
Debt premium | (6,973) |
Total Purchase Price | 90,212 |
Kingswood Crossing | |
Business Acquisition [Line Items] | |
Land | 8,150 |
Buildings and improvements | 64,159 |
Identified intangible assets | 4,768 |
Identified intangible liabilities | 0 |
Debt premium | 0 |
Total Purchase Price | $ 77,077 |
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Identified intangible assets, net of accumulated amortization | $ 54,870 | $ 54,870 | $ 48,121 | ||
Identified intangible liabilities, net of accumulated amortization | 125,766 | 125,766 | $ 128,830 | ||
Amortization of acquired below-market leases, net of above-market leases | 2,300 | $ 2,100 | 6,800 | $ 13,900 | |
Amortization expense of intangible assets | $ 2,100 | $ 1,700 | $ 6,300 | $ 5,700 |
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Schedule of Estimated Annual Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired below-market leases, net of above-market leases | $ 2,300 | $ 2,100 | $ 6,800 | $ 13,900 |
Below-Market Operating Lease Amortization | ||||
Reminder of 2019 | 2,430 | 2,430 | ||
2019 | 9,681 | 9,681 | ||
2020 | 9,605 | 9,605 | ||
2021 | 9,559 | 9,559 | ||
2022 | 9,324 | 9,324 | ||
2024 | 9,151 | 9,151 | ||
In-Place Leases | ||||
Amortization of Intangible Assets | 2,100 | $ 1,700 | 6,300 | $ 5,700 |
Above-Market | ||||
Above-Market Operating Lease Amortization | ||||
Remainder of 2019 | (257) | (257) | ||
2020 | (860) | (860) | ||
2021 | (495) | (495) | ||
2022 | (386) | (386) | ||
2023 | (321) | (321) | ||
2024 | (142) | (142) | ||
In-Place Leases | ||||
Remainder of 2019 | (257) | (257) | ||
2020 | (860) | (860) | ||
2021 | (495) | (495) | ||
2022 | (386) | (386) | ||
2023 | (321) | (321) | ||
2024 | (142) | (142) | ||
Amortization | ||||
Above-Market Operating Lease Amortization | ||||
Remainder of 2019 | (2,174) | (2,174) | ||
2020 | (7,595) | (7,595) | ||
2021 | (5,995) | (5,995) | ||
2022 | (4,859) | (4,859) | ||
2023 | (4,366) | (4,366) | ||
2024 | (3,732) | (3,732) | ||
In-Place Leases | ||||
Remainder of 2019 | (2,174) | (2,174) | ||
2020 | (7,595) | (7,595) | ||
2021 | (5,995) | (5,995) | ||
2022 | (4,859) | (4,859) | ||
2023 | (4,366) | (4,366) | ||
2024 | $ (3,732) | $ (3,732) |
MORTGAGES PAYABLE - Summary of Mortgages Payable (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Aug. 05, 2020 |
Jun. 01, 2020 |
May 31, 2020 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2020 |
Apr. 30, 2020 |
Dec. 31, 2019 |
|
Debt Instrument [Line Items] | |||||||||
Total mortgages payable, net of unamortized debt issuance costs | $ 1,840,304,000 | $ 1,840,304,000 | $ 1,546,195,000 | ||||||
Long-term debt, amount forgiven | $ 30,000,000 | $ 0 | |||||||
Mortgages | Montehiedra Town Center | Senior Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.00% | 5.33% | 5.00% | 5.00% | |||||
Total mortgages payable | $ 82,000,000 | $ 83,000,000 | $ 82,000,000 | $ 82,000,000 | |||||
Debt instrument, term | 10 years | 10 years | |||||||
Mortgages | Montehiedra Town Center | Junior Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.00% | 3.00% | |||||||
Total mortgages payable | $ 30,000,000 | ||||||||
Long-term debt, amount forgiven | 30,000,000 | $ 30,000,000 | |||||||
Accrued interest, decrease, forgiveness | $ 5,400,000 | ||||||||
Accrued interest | $ 5,700,000 | 5,400,000 | |||||||
Mortgages | Montclair, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.15% | ||||||||
Total mortgages payable | $ 7,300,000 | ||||||||
Debt instrument, term | 10 years | ||||||||
Mortgages | First Mortgage | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Gross | 1,600,590,000 | $ 1,600,590,000 | 1,556,248,000 | ||||||
Unamortized debt issuance costs | (10,286,000) | (10,286,000) | (10,053,000) | ||||||
Total mortgages payable, net of unamortized debt issuance costs | 1,590,304,000 | 1,590,304,000 | 1,546,195,000 | ||||||
Mortgages | First Mortgage | Variable rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Gross | $ 169,761,000 | $ 169,761,000 | 169,500,000 | ||||||
Mortgages | First Mortgage | Variable rate | The Plaza at Cherry Hill | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.76% | 1.76% | |||||||
Long-term Debt, Gross | $ 28,930,000 | $ 28,930,000 | 28,930,000 | ||||||
Mortgages | First Mortgage | Variable rate | The Plaza at Cherry Hill | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate spread on variable rate | 160.00% | 160.00% | |||||||
Mortgages | First Mortgage | Variable rate | Westfield - One Lincoln Plaza | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.76% | 1.76% | |||||||
Long-term Debt, Gross | $ 4,730,000 | $ 4,730,000 | 4,730,000 | ||||||
Mortgages | First Mortgage | Variable rate | Westfield - One Lincoln Plaza | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate spread on variable rate | 160.00% | 160.00% | |||||||
Mortgages | First Mortgage | Variable rate | The Plaza at Woodbridge | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.76% | 1.76% | |||||||
Long-term Debt, Gross | $ 55,340,000 | $ 55,340,000 | 55,340,000 | ||||||
Mortgages | First Mortgage | Variable rate | The Plaza at Woodbridge | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate spread on variable rate | 160.00% | 160.00% | |||||||
Mortgages | First Mortgage | Variable rate | Hudson Commons | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.06% | 2.06% | |||||||
Long-term Debt, Gross | $ 28,724,000 | $ 28,724,000 | 29,000,000 | ||||||
Mortgages | First Mortgage | Variable rate | Hudson Commons | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate spread on variable rate | 190.00% | ||||||||
Mortgages | First Mortgage | Variable rate | Watchung, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.06% | 2.06% | |||||||
Long-term Debt, Gross | $ 26,742,000 | $ 26,742,000 | 27,000,000 | ||||||
Mortgages | First Mortgage | Variable rate | Watchung, NJ | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate spread on variable rate | 190.00% | ||||||||
Mortgages | First Mortgage | Variable rate | Bronx (1750-1780 Gun Hill Road), NY | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.06% | 2.06% | |||||||
Long-term Debt, Gross | $ 25,295,000 | $ 25,295,000 | 24,500,000 | ||||||
Mortgages | First Mortgage | Variable rate | Bronx (1750-1780 Gun Hill Road), NY | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate spread on variable rate | 190.00% | ||||||||
Mortgages | First Mortgage | Fixed rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Gross | $ 1,430,829,000 | $ 1,430,829,000 | 1,386,748,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Bergen Town Center | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.56% | 3.56% | |||||||
Long-term Debt, Gross | $ 300,000,000 | $ 300,000,000 | 300,000,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Shops at Bruckner | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.90% | 3.90% | |||||||
Long-term Debt, Gross | $ 10,510,000 | $ 10,510,000 | 10,978,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Hudson Mall | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.07% | 5.07% | |||||||
Long-term Debt, Gross | $ 23,085,000 | $ 23,085,000 | 23,625,000 | ||||||
Effective interest rate | 3.91% | 3.91% | |||||||
Unamortized debt premium | $ 800,000 | $ 800,000 | 1,000,000.0 | ||||||
Mortgages | First Mortgage | Fixed rate | Yonkers Gateway Center | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.16% | 4.16% | |||||||
Long-term Debt, Gross | $ 28,897,000 | $ 28,897,000 | 30,122,000 | ||||||
Effective interest rate | 3.74% | 3.74% | |||||||
Unamortized debt premium | $ 500,000 | $ 500,000 | 600,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Las Catalinas | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 7.43% | 7.43% | 4.43% | 7.43% | |||||
Long-term Debt, Gross | $ 128,822,000 | $ 128,822,000 | 129,335,000 | ||||||
Total mortgages payable | $ 129,000,000 | ||||||||
Debt default, incremental interest rate | 3.00% | ||||||||
Accrued interest | $ 5,300,000 | ||||||||
Mortgages | First Mortgage | Fixed rate | Brick, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.87% | 3.87% | |||||||
Long-term Debt, Gross | $ 50,000,000 | $ 50,000,000 | 50,000,000 | ||||||
Mortgages | First Mortgage | Fixed rate | North Plainfield | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.99% | 3.99% | |||||||
Long-term Debt, Gross | $ 25,100,000 | $ 25,100,000 | 25,100,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Middletown, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.78% | 3.78% | |||||||
Long-term Debt, Gross | $ 31,400,000 | $ 31,400,000 | 31,400,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Rockaway | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.78% | 3.78% | |||||||
Long-term Debt, Gross | $ 27,800,000 | $ 27,800,000 | 27,800,000 | ||||||
Mortgages | First Mortgage | Fixed rate | East Hanover (200 - 240 Route 10 West), NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.03% | 4.03% | |||||||
Long-term Debt, Gross | $ 63,000,000 | $ 63,000,000 | 63,000,000 | ||||||
Mortgages | First Mortgage | Fixed rate | North Bergen (Tonnelle Avenue), NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.18% | 4.18% | |||||||
Long-term Debt, Gross | $ 100,000,000 | $ 100,000,000 | 100,000,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Manchester Plaza | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.32% | 4.32% | |||||||
Long-term Debt, Gross | $ 12,500,000 | $ 12,500,000 | 12,500,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Millburn | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.97% | 3.97% | |||||||
Long-term Debt, Gross | $ 23,488,000 | $ 23,488,000 | 23,798,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Totowa, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.33% | 4.33% | |||||||
Long-term Debt, Gross | $ 50,800,000 | $ 50,800,000 | 50,800,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Woodbridge Commons | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.36% | 4.36% | |||||||
Long-term Debt, Gross | $ 22,100,000 | $ 22,100,000 | 22,100,000 | ||||||
Mortgages | First Mortgage | Fixed rate | East Brunswick, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.38% | 4.38% | |||||||
Long-term Debt, Gross | $ 63,000,000 | $ 63,000,000 | 63,000,000 | ||||||
Mortgages | First Mortgage | Fixed rate | East Rutherford, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.49% | 4.49% | |||||||
Long-term Debt, Gross | $ 23,000,000 | $ 23,000,000 | 23,000,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Brooklyn (Kingswood Center) | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.07% | 5.07% | |||||||
Long-term Debt, Gross | $ 71,916,000 | $ 71,916,000 | 0 | ||||||
Effective interest rate | 3.74% | 3.74% | |||||||
Unamortized debt premium | $ 6,400,000 | $ 6,400,000 | |||||||
Mortgages | First Mortgage | Fixed rate | Hackensack, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.36% | 4.36% | |||||||
Long-term Debt, Gross | $ 66,400,000 | $ 66,400,000 | 66,400,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Marlton, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.86% | 3.86% | |||||||
Long-term Debt, Gross | $ 37,400,000 | $ 37,400,000 | 37,400,000 | ||||||
Mortgages | First Mortgage | Fixed rate | East Hanover Warehouses | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.09% | 4.09% | |||||||
Long-term Debt, Gross | $ 40,700,000 | $ 40,700,000 | 40,700,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Union (2445 Springfield Avenue), NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.01% | 4.01% | |||||||
Long-term Debt, Gross | $ 45,600,000 | $ 45,600,000 | 45,600,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Freeport (437 East Sunrise Highway), NY | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.07% | 4.07% | |||||||
Long-term Debt, Gross | $ 43,100,000 | $ 43,100,000 | 43,100,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Montehiedra Town Center | Senior Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.00% | 5.00% | |||||||
Long-term Debt, Gross | $ 81,571,000 | $ 81,571,000 | 83,202,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Montehiedra Town Center | Junior Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 0.00% | 0.00% | |||||||
Long-term Debt, Gross | $ 0 | $ 0 | 30,000,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Montclair, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.15% | 3.15% | |||||||
Long-term Debt, Gross | $ 7,250,000 | $ 7,250,000 | 0 | ||||||
Mortgages | First Mortgage | Fixed rate | Garfield, NJ | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.14% | 4.14% | |||||||
Long-term Debt, Gross | $ 40,300,000 | $ 40,300,000 | 40,300,000 | ||||||
Mortgages | First Mortgage | Fixed rate | Mount Kisco (Target) | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 6.40% | 6.40% | |||||||
Long-term Debt, Gross | $ 13,090,000 | $ 13,090,000 | 13,488,000 | ||||||
Unamortized debt discount | (900,000) | ||||||||
Effective interest rate | 7.31% | 7.31% | |||||||
Revolving Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.21% | 1.21% | |||||||
Long-term Debt, Gross | $ 250,000,000 | $ 250,000,000 | 0 | ||||||
Total mortgages payable, net of unamortized debt issuance costs | $ 250,000,000 | $ 250,000,000 | $ 0 | ||||||
Revolving Credit Facility | Line of Credit | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate spread on variable rate | 1.05% |
MORTGAGES PAYABLE - Additional Information (Details) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 05, 2020
USD ($)
|
Jun. 01, 2020
USD ($)
|
May 31, 2020
USD ($)
|
Jun. 29, 2019 |
Mar. 07, 2017
USD ($)
extension_option
|
Nov. 05, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Jun. 30, 2020 |
Apr. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Jan. 15, 2015
USD ($)
|
|
Debt Instrument [Line Items] | ||||||||||||||
Net carrying amount of real estate collateralizing indebtedness | $ 1,300,000,000 | $ 1,300,000,000 | ||||||||||||
Gain (loss) on extinguishment of debt | 0 | $ 0 | 34,908,000 | $ 0 | ||||||||||
Long-term debt, amount forgiven | 30,000,000 | $ 0 | ||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 600,000,000 | $ 500,000,000 | ||||||||||||
Increase in credit facility | $ 100,000,000 | |||||||||||||
Number of extension options | extension_option | 2 | |||||||||||||
Term of each extension option | 6 months | |||||||||||||
Proceeds from lines of credit | 250,000,000 | |||||||||||||
Remaining borrowing capacity | 350,000,000 | 350,000,000 | ||||||||||||
Gross debt issuance costs | $ 3,600,000 | $ 3,600,000 | $ 3,900,000 | |||||||||||
Borrowing rate | 1.21% | 1.21% | ||||||||||||
Line of Credit | Revolving Credit Facility | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of long-term lines of credit | $ 250,000,000 | |||||||||||||
Line of Credit | Revolving Credit Facility | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Financial covenants, maximum leverage ratio | 0.60 | |||||||||||||
Facility fee | 30.00% | |||||||||||||
Line of Credit | Revolving Credit Facility | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Financial covenants, minimum fixed charge coverage ratio | 1.5 | |||||||||||||
Facility fee | 15.00% | |||||||||||||
Line of Credit | Revolving Credit Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate spread on variable rate | 1.05% | |||||||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate spread on variable rate | 1.50% | |||||||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate spread on variable rate | 1.05% | |||||||||||||
Mortgages | Montehiedra Town Center | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Gain (loss) on extinguishment of debt | $ 34,900,000 | |||||||||||||
Mortgages | Montclair, NJ | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing rate | 3.15% | |||||||||||||
Debt instrument, term | 10 years | |||||||||||||
Debt instrument, face amount | $ 7,300,000 | |||||||||||||
First Mortgage | Mortgages | Las Catalinas | Fixed rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing rate | 7.43% | 7.43% | 4.43% | 7.43% | ||||||||||
Accrued interest | $ 5,300,000 | |||||||||||||
Debt instrument, face amount | $ 129,000,000 | |||||||||||||
First Mortgage | Mortgages | Montclair, NJ | Fixed rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing rate | 3.15% | 3.15% | ||||||||||||
Senior Loan | Mortgages | Montehiedra Town Center | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing rate | 5.00% | 5.33% | 5.00% | 5.00% | ||||||||||
Debt instrument, term | 10 years | 10 years | ||||||||||||
Debt instrument, face amount | $ 82,000,000 | $ 83,000,000 | $ 82,000,000 | $ 82,000,000 | ||||||||||
Senior Loan | First Mortgage | Mortgages | Montehiedra Town Center | Fixed rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing rate | 5.00% | 5.00% | ||||||||||||
Junior Loan | Mortgages | Montehiedra Town Center | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing rate | 3.00% | 3.00% | ||||||||||||
Accrued interest | $ 5,700,000 | $ 5,400,000 | ||||||||||||
Write-off of incurred transaction costs | (100,000) | |||||||||||||
Write-off of deferred financing fees | (400,000) | |||||||||||||
Debt instrument, face amount | 30,000,000 | |||||||||||||
Long-term debt, amount forgiven | $ 30,000,000 | $ 30,000,000 | ||||||||||||
Junior Loan | First Mortgage | Mortgages | Montehiedra Town Center | Fixed rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing rate | 0.00% | 0.00% | ||||||||||||
Property Lease Guarantee | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Conditional corporate guarantee | $ 12,500,000 | $ 12,500,000 |
MORTGAGES PAYABLE - Schedule of Maturities (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remainder of 2018 | $ 3,067 |
2019 | 12,956 |
2020 | 101,490 |
2021 | 347,158 |
2022 | 529,208 |
2023 | 35,382 |
Thereafter | $ 821,329 |
INCOME TAXES (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Income Tax Contingency [Line Items] | |||||
Deferred tax liabilities, net | $ (283) | $ (283) | $ (5,137) | ||
Deferred tax assets, net | (10,023) | (10,023) | 0 | ||
Income tax expense | $ 459 | $ 53 | $ (13,103) | $ 1,249 | |
Puerto Rico | |||||
Income Tax Contingency [Line Items] | |||||
Number of malls | 2 | 2 | |||
Deferred Tax Assets, Gross | $ 13,400 | $ 13,400 | |||
Branch profit tax | 10.00% | ||||
Commonwealth of Puerto Rico | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax assets, net | (1,700) | $ (1,700) | |||
Valuation allowance | 1,700 | 1,700 | |||
Current state and local tax expense | 1,700 | $ 1,700 | |||
Commonwealth of Puerto Rico | Puerto Rico | |||||
Income Tax Contingency [Line Items] | |||||
Non-resident withholding tax percentage | 29.00% | ||||
Income tax expense | (1,300) | $ 100 | $ (14,800) | $ 1,200 | |
Montehiedra Town Center | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax liabilities, net | $ (4,000) | ||||
Montehiedra Town Center | Puerto Rico | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax liabilities, net | (10,300) | (10,300) | |||
Deferred tax assets, net | $ (23,700) | $ (23,700) | |||
Minimum | Puerto Rico | |||||
Income Tax Contingency [Line Items] | |||||
State and local income taxes | 18.50% | ||||
Maximum | Puerto Rico | |||||
Income Tax Contingency [Line Items] | |||||
State and local income taxes | 37.50% |
LEASES - Components of Rental Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Leases [Abstract] | ||||
Fixed lease revenue | $ 53,396 | $ 66,478 | $ 174,141 | $ 209,858 |
Variable lease revenue | 21,963 | 24,291 | 67,483 | 79,707 |
Total rental revenue | $ 75,359 | $ 90,769 | $ 241,624 | $ 289,565 |
FAIR VALUE MEASUREMENTS - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019
USD ($)
property
|
Jun. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
property
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment charges recognized | $ 0 | $ 9,070 | ||
Property One [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of real estate properties | property | 2 | 2 | ||
Impairment charges recognized | $ 18,700 | |||
Property Two [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment charges recognized | $ 4,000 | |||
Real Estate | Fair Value, Nonrecurring | Property One [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | $ 28,500 | $ 28,500 |
FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 646,432 | $ 432,954 | $ 441,561 | $ 440,430 |
Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 646,432 | 432,954 | ||
Unsecured credit facility | 250,000 | |||
Carrying Amount | Mortgages | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgages payable | 1,600,590 | 1,556,248 | ||
Unamortized debt issuance costs | (10,300) | (10,100) | ||
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Unsecured credit facility | 250,000 | |||
Fair Value | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 646,432 | 432,954 | ||
Fair Value | Level 2 | Mortgages | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgages payable | $ 1,617,137 | $ 1,590,503 |
COMMITMENTS AND CONTINGENCIES (Details) ft² in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2020 |
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
property
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
property
|
Nov. 03, 2020 |
Sep. 10, 2020
ft²
|
Jun. 15, 2020
ft²
|
Dec. 31, 2019
USD ($)
property
|
Jun. 13, 2018 |
Sep. 20, 2017
property
|
|
Loss Contingencies [Line Items] | |||||||||||
Real estate redevelopment in process | $ 132,400,000 | $ 132,400,000 | |||||||||
Estimated cost to complete development and redevelopment projects | 91,300,000 | 91,300,000 | |||||||||
Insurance coverage, general liability insurance, limit per occurrence | 200,000,000 | 200,000,000 | |||||||||
Insurance coverage, rental value insurance, limit per occurrence | 500,000,000 | 500,000,000 | |||||||||
Insurance coverage, pollution insurance, limit per occurence | 50,000,000 | 50,000,000 | |||||||||
Rental revenue deemed uncollectible | 21,464,000 | $ 1,107,000 | |||||||||
Deferred lease expense | $ 1,000,000.0 | $ 1,000,000.0 | $ 2,700,000 | ||||||||
Puerto Rico | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of real estate properties | 2 | 2 | |||||||||
Puerto Rico | Mall | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of real estate properties | property | 2 | 2 | 2 | 2 | |||||||
Puerto Rico | Hurricane Maria | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Insurance coverage, rental value insurance, limit per occurrence | $ 147,000,000 | $ 147,000,000 | |||||||||
Shopping Center Wilkes-Barre, PA | Tornado | Hurricane Maria | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Casualty Gains (Losses) | $ 4,800,000 | ||||||||||
Gain on Business Interruption Insurance Recovery | $ 300,000 | ||||||||||
Percentage of Rentable Area Damaged | 13.00% | ||||||||||
Proceeds from Insurance Settlement, Operating Activities | 5,500,000 | ||||||||||
COVID-19 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Rental revenue deemed uncollectible | $ 8,400,000 | 21,500,000 | |||||||||
Rents received, percent | 83.00% | ||||||||||
Rent deferrals granted, amount | $ 2,600,000 | 2,600,000 | |||||||||
Abatements granted, aggregate amount | 800,000 | 800,000 | |||||||||
Allowance for credit loss, writeoff | 4,700,000 | 10,700,000 | |||||||||
COVID-19 | Paramus, NJ | Century 21 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Rental revenue deemed uncollectible | 900,000 | 2,100,000 | |||||||||
Area of real estate property (in sq ft) | ft² | 157 | ||||||||||
Annual rental revenue | 4,400,000 | ||||||||||
Allowance for credit loss, writeoff | 2,500,000 | 2,500,000 | |||||||||
COVID-19 | Paramus, NJ | 24 Hour Fitness | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Rental revenue deemed uncollectible | 500,000 | 1,300,000 | |||||||||
Area of real estate property (in sq ft) | ft² | 54 | ||||||||||
Annual rental revenue | 3,100,000 | ||||||||||
Allowance for credit loss, writeoff | $ 3,500,000 | $ 3,500,000 | |||||||||
COVID-19 | Subsequent Event | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Leasable area, gross, percent | 98.00% | ||||||||||
Rents received, percent | 86.00% | ||||||||||
Business Interruption | Hurricane | Puerto Rico | Hurricane Maria | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Insurance Settlements Receivable | 14,300,000 | 14,300,000 | |||||||||
Loss Contingency, Receivable, Proceeds | 3,300,000 | ||||||||||
Loss Contingency, Insurance Deductible | $ 2,300,000 | ||||||||||
Gains (Losses) on Business Interruption | $ 8,700,000 |
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 7,520 | $ 7,460 |
Deferred Tax Assets, Net | 10,023 | 0 |
Real estate held for sale | 0 | 6,574 |
Deposits for acquisitions | 0 | 10,000 |
Prepaid expenses: | ||
Real estate taxes | 6,806 | 6,491 |
Insurance | 3,107 | 1,520 |
Licenses/fees | 1,711 | 1,655 |
Total Prepaid expenses and other assets | $ 29,167 | $ 33,700 |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
property
|
Sep. 30, 2019
property
|
Sep. 20, 2017
property
|
---|---|---|---|---|
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Deferred tenant revenue | $ 24,942 | $ 26,224 | ||
Accrued capital expenditures and leasing costs | 9,777 | 7,893 | ||
Accrued interest payable | 9,958 | 9,729 | ||
Security deposits | 6,129 | 5,814 | ||
Deferred tax liability, net(1) | 283 | 5,137 | ||
Accrued payroll expenses | 5,900 | 5,851 | ||
Other liabilities and accrued expenses | 11,407 | 15,996 | ||
Total accounts payable, accrued expenses and other liabilities | $ 68,396 | $ 76,644 | ||
Puerto Rico | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Number of real estate properties | 2 | |||
Mall | Puerto Rico | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Number of real estate properties | property | 2 | 2 | 2 | |
Montehiedra Town Center | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Deferred tax liability, net(1) | $ 4,000 | |||
Montehiedra Town Center | Puerto Rico | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Deferred tax liability, net(1) | $ 10,300 | |||
Las Catalinas | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Deferred tax liability, net(1) | $ 1,100 |
INTEREST AND DEBT EXPENSE (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Other Income and Expenses [Abstract] | ||||
Interest expense | $ 17,433 | $ 16,131 | $ 51,771 | $ 47,699 |
Amortization of deferred financing costs | 703 | 730 | 2,113 | 2,170 |
Total Interest and debt expense | $ 18,136 | $ 16,861 | $ 53,884 | $ 49,869 |
EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($) |
3 Months Ended | 4 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 15, 2015 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Noncontrolling Interest [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 200,000,000 | $ 200,000,000 | ||||
Repurchase of common shares (in shares) | 5,900,000 | 5,873,923 | ||||
Treasury stock acquired, average cost per share (in dollars per share) | $ 9.22 | |||||
Repurchase of common shares | $ 54,100,000 | $ 54,141,000 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 | $ 0.66 | |||
Common limited partnership units issued (in shares) | 5,700,000 | 5,700,000 | ||||
OP Units | ||||||
Noncontrolling Interest [Line Items] | ||||||
Conversion to stock, conversion rate | 1 | |||||
LTIP Units | ||||||
Noncontrolling Interest [Line Items] | ||||||
Award vesting period | 2 years | |||||
Conversion to stock, conversion rate | 1 | |||||
Operating Partnership | OP Units | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest percentage | 3.90% | 4.10% | ||||
Walnut Creek (Mt. Diablo), CA | Noncontrolling Interest | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest percentage | 5.00% | |||||
Vornado Realty L.P. | Operating Partnership | Parent | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest percentage | 96.10% | |||||
Vornado Realty L.P. | Vornado Realty L.P. | Parent | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest percentage | 5.40% |
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - General and Administrative Expense - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Share-based compensation expense | $ 2,604 | $ 3,310 | $ 14,463 | $ 10,269 |
Restricted share expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Share-based compensation expense | 199 | 297 | 653 | 1,384 |
Stock option expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Share-based compensation expense | 432 | 992 | 4,559 | 3,062 |
LTIP expense(1) | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Share-based compensation expense | 1,023 | 1,171 | 6,323 | 3,374 |
Performance-based LTI expense(2) | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Share-based compensation expense | 944 | 828 | 2,886 | 2,315 |
Deferred share unit (“DSU”) expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Share-based compensation expense | $ 6 | $ 22 | $ 42 | $ 134 |
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Feb. 20, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Accelerated Cost | $ 5,600,000 | $ 400,000 | |
Number of options vested (in shares) | 2,208,304 | ||
LTIP Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number or equity awards granted (in shares) | 297,195 | ||
Number of awards vested (in shares) | 341,022 | ||
LTIP Units | Long-Term Incentive Plan 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance measurement period of equity awards | 3 years | ||
Time-based LTIP Shares | Long-Term Incentive Plan 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted percentage of equity awards | $ 0.3333 | ||
Performance-based LTIP Shares | Long-Term Incentive Plan 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted percentage of equity awards | 0.6666 | ||
Time-based and Performance-based LTIP Shares | Long-Term Incentive Plan 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of equity awards | $ 8,800,000 | ||
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number or equity awards granted (in shares) | 31,679 | ||
Number of awards vested (in shares) | 50,285 |
EARNINGS PER SHARE AND UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Numerator: | ||||
Net income attributable to common shareholders | $ (5,605) | $ 54,040 | $ 74,630 | $ 106,148 |
Less: (Earnings) loss allocated to unvested participating securities | 4 | (43) | (50) | (89) |
Net income (loss) available for common shareholders - basic | (5,601) | 53,997 | 74,580 | 106,059 |
OP and LTIP units | 0 | 0 | 0 | 5,883 |
Net income (loss) available for common shareholders - dilutive | $ (5,601) | $ 53,997 | $ 74,580 | $ 111,942 |
Denominator: | ||||
Weighted average common shares outstanding - basic (in shares) | 116,625 | 121,087 | 118,033 | 119,259 |
Effect of dilutive securities: | ||||
Assumed conversion of OP and LTIP units (in shares) | 0 | 0 | 0 | 7,128 |
Weighted average common shares outstanding - diluted (in shares) | 116,625 | 121,183 | 118,111 | 126,489 |
Earnings per share available to common shareholders: | ||||
Earnings per common share - Basic (in dollars per share) | $ (0.05) | $ 0.45 | $ 0.63 | $ 0.89 |
Earnings per common share - Diluted (in dollars per share) | $ (0.05) | $ 0.45 | $ 0.63 | $ 0.89 |
Urban Edge Properties LP | ||||
Numerator: | ||||
Net income attributable to common shareholders | $ (5,830) | $ 56,702 | $ 78,003 | $ 112,683 |
Less: (Earnings) loss allocated to unvested participating securities | 4 | (43) | (50) | (89) |
Net income (loss) available for common shareholders - basic | $ (5,826) | $ 56,659 | $ 77,953 | $ 112,594 |
Denominator: | ||||
Weighted average common shares outstanding - basic (in shares) | 120,618 | 126,277 | 122,332 | 126,387 |
Effect of dilutive securities: | ||||
Stock options using treasure stock method and restricted stock awards (in shares) | 0 | 96 | 78 | 102 |
Assumed conversion of OP and LTIP units (in shares) | 0 | 0 | 764 | 1 |
Weighted average common shares outstanding - diluted (in shares) | 120,618 | 126,373 | 123,174 | 126,490 |
Earnings per share available to common shareholders: | ||||
Earnings per common share - Basic (in dollars per share) | $ (0.05) | $ 0.45 | $ 0.64 | $ 0.89 |
Earnings per common share - Diluted (in dollars per share) | $ (0.05) | $ 0.45 | $ 0.63 | $ 0.89 |
Restricted share expense | ||||
Effect of dilutive securities: | ||||
Stock options using treasure stock method and restricted stock awards (in shares) | 0 | 96 | 78 | 102 |
Label | Element | Value |
---|---|---|
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,918,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,918,000) |
Subsidiaries [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,918,000) |
Subsidiaries [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,918,000) |
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