EX-99.2 3 tm2132855d1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

 

Table of Contents

 

Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020

 

Condensed Consolidated Statements of Cash Flows for the Three and Nine Months Ended September 30, 2021 and 2020

 

EBITDA Reconciliations

 

NOI Reconciliations

 

Same Property NOI Reconciliation

 

Same Property Statistics – Retail and Flex Properties

 

Same Property Statistics – Hotel Properties

 

Weighted Average Lease Term

 

Weighted Average Mortgage Payable Maturity

 

Weighted Average Mortgage Payable Interest Rate

 

 

 

Definitions

 

Investors and analysts following the real estate industry utilize certain financial measures as supplemental performance measures, including net operating income ("NOI"), Same Property NOI, and earnings before interest, taxes, depreciation and amortization for real estate ("EBITDA").

 

While we believe net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, we consider NOI, Same Property NOI, and EBITDA, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. NOI provides a measure of rental operations, and does not include depreciation and amortization, interest expense and non-property specific expenses such as corporate-wide interest expense and general and administrative expenses. As used herein, we calculate the following non-U.S. GAAP measures as follows:

 

EBITDA is net income, as defined by U.S. GAAP, plus preferred dividends, interest expense, including amortization of financing costs, depreciation and amortization, net amortization of acquired above and below market lease revenue and realized gain on disposal of investment property.

 

NOI from property operations is calculated as net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, legal, accounting and other professional fees, corporate general and administrative expenses, depreciation, amortization of intangible assets and liabilities, interest expense, including amortization of financing costs, share based compensation expense, loss on impairment, other income, net amortization of above and below market leases and realized gain on disposal of investment property. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance. NOI presented in this financial supplement includes an adjustment to the Company’s net loss for amortization of above and below market leases and, as a result, varies from NOI presented in the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2021.

 

Same Property NOI is calculated as the NOI of all properties owned during the entire periods presented with the exclusion of any properties acquired or sold during the periods presented.

 

NOI, Same Property NOI, and EBITDA, do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt, capital expenditures and payment of dividends and distributions. NOI, Same Property NOI, and EBITDA should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. NOI, Same Property NOI, and Adjusted EBITDA, as currently calculated by us, may not be comparable to similarly titled, but variously calculated, measures of other REITs.

 

 

 

EBITDA Reconciliation

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2021   2020   2021   2020 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Net Loss  $(875,466)  $(1,402,301)  $(3,824,032)  $(4,972,665)
Plus: Preferred dividends, including amortization of capitalized issuance costs   151,637    147,350    451,616    358,431 
Plus: Interest expense, including amortization of capitalized loan issuance costs   799,133    829,224    2,396,609    2,506,906 
Plus: Depreciation expense   644,657    753,410    1,617,863    2,265,780 
Plus: Amortization of intangible assets   292,947    227,482    743,351    724,296 
Less: Net amortization of above and below market leases   (5,968)   2,578    (2,350)   2,908 
Less: Realized gain on disposal of investment property   (124,641)   -    (124,641)   - 
EBITDA   882,299    557,743    1,258,416    885,656 

 

 

 

NOI Reconciliation

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2021   2020   2021   2020 
Net Operating Income  (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Net Loss  $(875,466)  $(1,402,301)  $(3,824,032)  $(4,972,665)
Plus: Preferred dividends, including amortization of capitalized issuance costs   151,637    147,350    451,616    358,431 
Plus: Legal, accounting and other professional fees   311,986    370,792    1,099,881    1,013,712 
Plus: Corporate general and administrative expenses   382,302    78,459    568,479    241,038 
Plus: Depreciation expense   644,657    753,410    1,617,863    2,265,780 
Plus: Amortization of intangible assets   292,947    236,135    743,351    750,247 
Plus: Interest expense, including amortization of capitalized loan issuance costs   799,133    829,224    4,157,582    2,506,906 
Plus: Share based compensation expense   -    -    149,981    569,995)
Plus: Loss on impairment   -    -    -    223,097 
Less: Other income   (3,519)   (636)   (187,278)   (494)
Less: Net amortization of above and below market leases   (5,968)   2,578    (2,350)   2,908 
Less: Realized gain on disposal of investment property   (124,641)   -    (124,641)   - 
Net Operating Income - NOI  $1,573,068   $1,015,011   $4,650,452   $2,958,955 

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2021   2020   2021   2020 
Components of Net Operating Income  (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Revenues:                    
   Retail and flex property rental revenues  $1,477,699   $1,202,864   $3,925,900   $3,713,566 
   Retail and flex property tenant reimbursement revenues   274,138    257,043    750,966    830,050 
   Hotel property revenues   1,280,338    868,906    4,009,041    2,338,703 
   Total revenues   3,032,175    2,328,813    8,685,907    6,882,319 
                     
Operating expenses:                    
   Retail and flex property operating expenses   475,295    393,456    1,275,863    1,189,484)
   Hotel property operating expenses   960,994    874,254    2,733,578    2,399,411 
   Bad debt expense   22,818    46,092    26,014    334,469 
  Total operating expenses   1,459,107    1,313,802    4,035,455    3,923,364 
                     
Net Operating Income - NOI   1,573,068   $1,015,011   $4,650,452   $2,958,955 

 

 

 

Same Property NOI Reconciliation

 

   For the three months ended         
   September 30,         
   2021   2020   Change ($)   Change (%) 
Revenues                    
Same Property NOI  $4,015,222   $2,865,926   $1,149,296    40%
NOI of properties purchased subsequent to September 30, 2020 (1)   371,991    -    371,991      
NOI of properties sold subsequent to September 30, 2020 (2)   263,239    93,029    170,210      
Total NOI  $4,650,452   $2,958,955   $1,691,497    57%

 

(1)Lancer Center and Greenbrier Business Center
(2)Greensboro Hampton Inn

 

 

 

Same Property Statistics – Retail and Flex Properties

 

Total Retail and Flex Properties

 

   Number of Properties   Total Square Feet   Occupancy 
   As of September 30,   As of September 30,   As of September 30, 
   2021   2020   2021   2020   2021   2020 
Retail   4    3    546,661    337,040    95.2%   91.6%
Flex   2    1    154,170    60,834    90.6%   93.8%
Total   6    4    700,831    397,874    94.2%   91.9%

 

Retail and Flex - Same Properties

 

   Number of Properties   Total Square Feet   Occupancy 
   As of September 30,   As of September 30,   As of September 30, 
   2021   2020   2021   2020   2021   2020 
Retail (3)   3    3    368,035    368,035    92.9%   91.6%
Flex (1)   1    1    64,880    64,880    100.0%   93.8%
Total (4)   4    4    432,915    432,915    94.0%   91.9%

 

 

 

Same Property Statistics – Hotel Properties

 

Total Hotel Properties

 

   Number of Properties   Total Rooms   Occupancy 
   As of September 30,   As of September 30,   As of September 30, 
   2021   2020   2021   2020   2021   2020 
Hotel   1    2    148    273    90.4%   39.9%

 

Hotel Same Properties

 

   Number of Properties   Total Rooms   Occupancy 
   As of September 30,   As of September 30,   As of September 30, 
   2021   2020   2021   2020   2021   2020 
Hotel   1    1    148    148    100.0%   29.6%

 

 

 

Weighted Average Lease Term

 

Retail Properties     
Ashley Plaza   6.59 
Franklin Square   4.17 
Hanover Square   3.46 
Lancer Center   4.45 
Retail Property Average   4.88 
      
Flex Properties     
Brookfield   3.96 
Greenbrier Business Center   1.63 
Flex Property Average   2.61 
      
Retail and Flex Property Average   4.28 

 

Weighted Average Debt Data

 

Weighted Average Mortgage Maturity (Years)   4.24 
      
Weighted Average Mortgage Payable Interest Rate   4.6%