Pennsylvania | 1-6300 | 23-6216339 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (IRS Employer Identification No.) |
The Bellevue, 200 S. Broad Street, Philadelphia, Pennsylvania | 19102 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST | ||||
Date: October 30, 2018 | By: | /s/ Lisa M. Most | ||
Name: Lisa M. Most | ||||
Title: Senior Vice President and General Counsel |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||
(per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||
Net (loss) income - basic and diluted | $(0.11) | $0.06 | $(0.75) | $(0.81) | |||||
FFO | $0.34 | $0.42 | $1.00 | $1.15 | |||||
FFO, as adjusted | $0.35 | $0.42 | $1.02 | $1.16 | |||||
FFO from assets sold in 2017 and 2018 | — | $(0.02) | — | $(0.08) | |||||
FFO, as adjusted for assets sold | $0.35 | $0.40 | $1.02 | $1.08 |
• | Same Store NOI for wholly-owned malls, excluding six malls undergoing anchor repositioning, was up 4.3% for the quarter, compared to the prior year quarter. |
• | Core mall NOI-weighted sales per square foot reached an all time high of $509. |
• | Non-Anchor occupancy at core malls increased 30 basis points sequentially. |
• | Leasing activity remained strong with new transaction volume more than doubling over Q3 2017 and up over 15% on a year-to-date basis when excluding anchor transactions. |
• | Average renewal spreads during the quarter were 11.5% for wholly-owned, under 10,000 square foot transactions. |
• | Including larger-format and unconsolidated transactions, average renewal spreads were 6.9% for the quarter compared to negative 1.9% during Q3 2017. |
• | Leases were executed for remaining anchor boxes with Dick’s Sporting Goods, Burlington, Edge Fitness and Michael’s at Plymouth Meeting and Studio Movie Grill at Willow Grove Park. |
• | Year-to-date, PREIT has raised $960 million in proceeds through financing activity and asset sales, underscoring its ability to creatively access capital markets to fund redevelopment activity. |
• | Portfolio Same Store NOI of negative 2.0% was impacted by a $1.8 million one-time benefit received in 2017 from a multi-year tax appeal. |
◦ | Excluding the impact of this item, Same Store NOI was up 1.0%. |
◦ | Portfolio Same Store NOI was also impacted by the following items: |
▪ | Lost revenue from tenants who filed for bankruptcy protection: ($0.5 million), |
▪ | Incremental co-tenancy compared to prior year quarter: ($0.3 million), |
▪ | Lost revenue from terminated tenants: ($0.5 million), and |
▪ | Increased revenue from anchor replacements and other leasing activity: $2.0 million |
• | Same Store NOI for our wholly-owned mall portfolio, excluding six malls undergoing anchor repositioning, was up 4.3% for the quarter and 5.2% year to date. |
• | Same Store NOI at these six anchor replacement properties was down 4.1% when excluding the one-time benefit of the multi-year tax appeal in 2017. |
• | Previous asset sales contributed to a $1.7 million, or $0.02 per share, FFO decline. |
• | Increased interest expense contributed to a $1.4 million, or $0.02 per share, FFO decline, partially offset by reduced preferred share dividend costs of $0.7 million, or $0.01 per share, FFO improvement. |
• | Amortization of historic tax credits of $0.8 million was lower than the prior year quarter by $1.0 million, or $0.01 per share, in FFO. This is the final year of amortization of the historic tax credits. |
• | Excluding Fashion District Philadelphia, 771,000 square feet of leases are signed for future openings. |
• | At Moorestown Mall, HomeSense and Five Below opened in the former Macy’s box. Sierra Trading Post will open in early 2019. |
• | At Willow Grove Park, the Company signed a lease with Studio Movie Grill for 51,000 square feet. The twelve screen Studio Movie Grill will be joined by other dining and entertainment tenants to replace a former JC Penney store. |
• | At Valley Mall, Tilt Studio opened in 48,000 square feet of a former Macy’s space and will be joined later this year by Onelife Fitness, which will occupy the remaining 70,000 square feet. Belk also opened in 123,000 square feet replacing a former Bon-Ton that was proactively recaptured prior to its bankruptcy filing. |
Comp store sales for the rolling 12 months ended 9/30/17 | $475 | |
Organic sales growth | 15 | |
Impact of non-core malls | 4 | |
Core mall comp store sales for the rolling 12 months ended 9/30/18 | $494 | |
(1) | Based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24 months. |
2018 Guidance Range | ||
(Estimates per diluted share) | Low | High |
Net loss attributable to common shareholders | $ (0.66) | $ (0.61) |
Depreciation and amortization, non-controlling interest and other | 1.80 | 1.80 |
Impairment of assets | 0.44 | 0.44 |
Gain on sale of operating property | (0.06) | (0.06) |
FFO per share | $1.52 | $1.57 |
Employee separation expenses and other | 0.01 | 0.01 |
FFO per share, as adjusted | $ 1.53 | $ 1.58 |
• | changes in the retail and real estate industries, including consolidation and store closings, particularly among anchor tenants; |
• | current economic conditions and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions; |
• | our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; |
• | our ability to maintain and increase property occupancy, sales and rental rates; |
• | increases in operating costs that cannot be passed on to tenants; |
• | the effects of online shopping and other uses of technology on our retail tenants; |
• | risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates; |
• | acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; |
• | our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek; |
• | our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio; |
• | our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; |
• | our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity or equity-related securities if market conditions are favorable; and |
• | potential dilution from any capital raising transactions or other equity issuances. |
STATEMENTS OF OPERATIONS (Unaudited) | Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
REVENUE: | ||||||||||||||||
Real estate revenue: | ||||||||||||||||
Base rent | $ | 56,372 | $ | 56,874 | $ | 167,714 | $ | 171,078 | ||||||||
Expense reimbursements | 26,833 | 26,900 | 80,194 | 81,981 | ||||||||||||
Percentage rent | 646 | 593 | 902 | 1,223 | ||||||||||||
Lease termination revenue | 45 | 7 | 7,166 | 2,279 | ||||||||||||
Other real estate revenue | 2,493 | 2,345 | 6,928 | 6,992 | ||||||||||||
Total real estate revenue | 86,389 | 86,719 | 262,904 | 263,553 | ||||||||||||
Other income | 1,714 | 2,492 | 3,454 | 4,172 | ||||||||||||
Total revenue | 88,103 | 89,211 | 266,358 | 267,725 | ||||||||||||
EXPENSES: | ||||||||||||||||
Operating expenses | ||||||||||||||||
Property operating expenses: | ||||||||||||||||
CAM and real estate taxes | (27,826 | ) | (25,772 | ) | (84,569 | ) | (83,985 | ) | ||||||||
Utilities | (4,430 | ) | (4,444 | ) | (12,143 | ) | (12,407 | ) | ||||||||
Other property operating expenses | (2,444 | ) | (3,087 | ) | (8,752 | ) | (9,117 | ) | ||||||||
Total property operating expenses | (34,700 | ) | (33,303 | ) | (105,464 | ) | (105,509 | ) | ||||||||
Depreciation and amortization | (33,119 | ) | (29,966 | ) | (100,505 | ) | (94,652 | ) | ||||||||
General and administrative expenses | (8,441 | ) | (8,288 | ) | (27,969 | ) | (26,561 | ) | ||||||||
Provision for employee separation expense | (561 | ) | — | (956 | ) | (1,053 | ) | |||||||||
Project costs and other expenses | (214 | ) | (150 | ) | (465 | ) | (547 | ) | ||||||||
Total operating expenses | (77,035 | ) | (71,707 | ) | (235,359 | ) | (228,322 | ) | ||||||||
Interest expense, net | (15,181 | ) | (14,342 | ) | (46,064 | ) | (44,098 | ) | ||||||||
Impairment of assets | — | (1,825 | ) | (34,286 | ) | (55,742 | ) | |||||||||
Total expenses | (92,216 | ) | (87,874 | ) | (315,709 | ) | (328,162 | ) | ||||||||
(Loss) income before equity in income of partnerships, gain on sale of real estate by equity method investee, gains (adjustment to gains) on sales of interests in non operating real estate and gains (losses) on sales of interests in real estate, net | (4,113 | ) | 1,337 | (49,351 | ) | (60,437 | ) | |||||||||
Equity in income of partnerships | 2,477 | 4,254 | 8,186 | 12,144 | ||||||||||||
Gain on sale of real estate by equity method investee | — | 6,718 | 2,773 | 6,718 | ||||||||||||
Gains (adjustment to gains) on sales of interests in non operating real estate | — | — | (25 | ) | 486 | |||||||||||
Gains (losses) on sales of interests in real estate, net | — | (9 | ) | 748 | (374 | ) | ||||||||||
Net (loss) income | (1,636 | ) | 12,300 | (37,669 | ) | (41,463 | ) | |||||||||
Less: net loss (income) attributable to noncontrolling interest | 891 | (507 | ) | 6,122 | 6,627 | |||||||||||
Net (loss) income attributable to PREIT | (745 | ) | 11,793 | (31,547 | ) | (34,836 | ) | |||||||||
Less: preferred share dividends | (6,843 | ) | (7,525 | ) | (20,531 | ) | (20,797 | ) | ||||||||
Net (loss) income attributable to PREIT common shareholders | $ | (7,588 | ) | $ | 4,268 | $ | (52,078 | ) | $ | (55,633 | ) |
EARNINGS PER SHARE (Unaudited) | Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands of dollars, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net (loss) income | $ | (1,636 | ) | $ | 12,300 | $ | (37,669 | ) | $ | (41,463 | ) | ||||
Noncontrolling interest | 891 | (507 | ) | 6,122 | 6,627 | ||||||||||
Preferred share dividends | (6,843 | ) | (7,525 | ) | (20,531 | ) | (20,797 | ) | |||||||
Dividends on unvested restricted shares | (136 | ) | (87 | ) | (412 | ) | (272 | ) | |||||||
Net loss used to calculate loss per share—basic and diluted | $ | (7,724 | ) | $ | 4,181 | $ | (52,490 | ) | $ | (55,905 | ) | ||||
Basic and diluted loss per share: | $ | (0.11 | ) | $ | 0.06 | $ | (0.75 | ) | $ | (0.81 | ) | ||||
(in thousands of shares) | |||||||||||||||
Weighted average shares outstanding—basic | 69,803 | 69,424 | 69,718 | 69,319 | |||||||||||
Effect of common share equivalents (1) | — | — | — | — | |||||||||||
Weighted average shares outstanding—diluted | 69,803 | 69,424 | 69,718 | 69,319 |
OTHER COMPREHENSIVE INCOME (LOSS) (Unaudited) | Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||||
Comprehensive income: | ||||||||||||||||
Net (loss) income | $ | (1,636 | ) | $ | 12,300 | $ | (37,669 | ) | $ | (41,463 | ) | |||||
Unrealized gain (loss) on derivatives | 1,905 | 266 | 9,662 | 1,544 | ||||||||||||
Amortization of settled swaps | 180 | 259 | 719 | 597 | ||||||||||||
Total comprehensive income (loss) | 449 | 12,825 | (27,288 | ) | (39,322 | ) | ||||||||||
Less: comprehensive loss (income) attributable to noncontrolling interest | 669 | (563 | ) | 5,020 | 6,398 | |||||||||||
Comprehensive income (loss) attributable to PREIT | $ | 1,118 | $ | 12,262 | $ | (22,268 | ) | $ | (32,924 | ) |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net (loss) income | $ | (1,636 | ) | $ | 12,300 | $ | (37,669 | ) | $ | (41,463 | ) | ||||
Depreciation and amortization on real estate: | |||||||||||||||
Consolidated properties | 32,764 | 29,589 | 99,428 | 93,529 | |||||||||||
PREIT’s share of equity method investments | 2,132 | 2,902 | 6,518 | 8,493 | |||||||||||
Gain on sale of real estate by equity method investee | — | (6,718 | ) | (2,773 | ) | (6,718 | ) | ||||||||
Losses (gains) losses on sales of interests in real estate, net | — | 9 | (748 | ) | 374 | ||||||||||
Impairment of assets | — | 1,825 | 34,286 | 55,742 | |||||||||||
Preferred share dividends | (6,843 | ) | (7,525 | ) | (20,531 | ) | (20,797 | ) | |||||||
Funds from operations attributable to common shareholders and OP Unit holders | 26,417 | 32,382 | 78,511 | 89,160 | |||||||||||
Accelerated amortization of financing costs | — | — | 363 | — | |||||||||||
Provision for employee separation expense | 561 | — | 956 | 1,053 | |||||||||||
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders | 26,978 | 32,382 | 79,830 | 90,213 | |||||||||||
Less: Funds from operations from assets sold in 2018 and 2017 | 66 | (1,594 | ) | (311 | ) | (6,619 | ) | ||||||||
Funds from operations, as adjusted for assets sold | $ | 27,044 | $ | 30,788 | $ | 79,519 | $ | 83,594 | |||||||
Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit | $ | 0.34 | $ | 0.42 | $ | 1.00 | $ | 1.15 | |||||||
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit | $ | 0.35 | $ | 0.42 | $ | 1.02 | $ | 1.16 | |||||||
Funds from operations, as adjusted for assets sold per diluted share and OP Unit | $ | 0.35 | $ | 0.40 | $ | 1.02 | $ | 1.08 | |||||||
Weighted average number of shares outstanding | 69,803 | 69,424 | 69,718 | 69,319 | |||||||||||
Weighted average effect of full conversion of OP Units | 8,273 | 8,291 | 8,273 | 8,303 | |||||||||||
Effect of common share equivalents | 38 | — | 272 | 51 | |||||||||||
Total weighted average shares outstanding, including OP Units | 78,114 | 77,715 | 78,263 | 77,673 |
Same Store | Non-Same Store | Total | ||||||||||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
NOI from consolidated properties | $ | 49,925 | $ | 50,858 | $ | 1,764 | $ | 2,558 | $ | 51,689 | $ | 53,416 | ||||||||||||
NOI from equity method investments at ownership share | 7,351 | 7,604 | (41 | ) | 2,098 | 7,310 | 9,702 | |||||||||||||||||
Total NOI | 57,276 | 58,462 | 1,723 | 4,656 | 58,999 | 63,118 | ||||||||||||||||||
Less: lease termination revenue | 252 | 282 | 14 | — | 266 | 282 | ||||||||||||||||||
Total NOI excluding lease termination revenue | $ | 57,024 | $ | 58,180 | $ | 1,709 | $ | 4,656 | $ | 58,733 | $ | 62,836 |
Same Store | Non-Same Store | Total | ||||||||||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
NOI from consolidated properties | $ | 152,330 | $ | 148,591 | $ | 5,110 | $ | 9,453 | $ | 157,440 | $ | 158,044 | ||||||||||||
NOI from equity method investments at ownership share | 22,280 | 22,340 | 479 | 5,960 | 22,759 | 28,300 | ||||||||||||||||||
Total NOI | 174,610 | 170,931 | 5,589 | 15,413 | 180,199 | 186,344 | ||||||||||||||||||
Less: lease termination revenue | 7,608 | 2,629 | 35 | 71 | 7,643 | 2,700 | ||||||||||||||||||
Total NOI excluding lease termination revenue | $ | 167,002 | $ | 168,302 | $ | 5,554 | $ | 15,342 | $ | 172,556 | $ | 183,644 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net (loss) income | $ | (1,636 | ) | $ | 12,300 | $ | (37,669 | ) | $ | (41,463 | ) | ||||
Other income | (1,714 | ) | (2,492 | ) | (3,454 | ) | (4,172 | ) | |||||||
Depreciation and amortization | 33,119 | 29,966 | 100,505 | 94,652 | |||||||||||
General and administrative expenses | 8,441 | 8,288 | 27,969 | 26,561 | |||||||||||
Employee separation expenses | 561 | — | 956 | 1,053 | |||||||||||
Project costs and other expenses | 214 | 150 | 465 | 547 | |||||||||||
Interest expense, net | 15,181 | 14,342 | 46,064 | 44,098 | |||||||||||
Impairment of assets | — | 1,825 | 34,286 | 55,742 | |||||||||||
Equity in income of partnerships | (2,477 | ) | (4,254 | ) | (8,186 | ) | (12,144 | ) | |||||||
Gain on sale of real estate by equity method investee | — | (6,718 | ) | (2,773 | ) | (6,718 | ) | ||||||||
Losses (gains) on sales of interests in real estate, net | — | 9 | (748 | ) | 374 | ||||||||||
Losses (adjustment to gains) on sales of interest in non operating real estate | — | — | 25 | (486 | ) | ||||||||||
NOI from consolidated properties | 51,689 | 53,416 | 157,440 | 158,044 | |||||||||||
Less: Non Same Store NOI of consolidated properties | 1,764 | 2,558 | 5,110 | 9,453 | |||||||||||
Same Store NOI from consolidated properties | 49,925 | 50,858 | 152,330 | 148,591 | |||||||||||
Less: Same Store lease termination revenue | 31 | 7 | 7,131 | 2,208 | |||||||||||
Same Store NOI excluding lease termination revenue | $ | 49,894 | $ | 50,851 | $ | 145,199 | $ | 146,383 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Equity in income of partnerships | $ | 2,477 | $ | 4,254 | $ | 8,186 | $ | 12,144 | |||||||
Other income | (12 | ) | (20 | ) | (35 | ) | (20 | ) | |||||||
Depreciation and amortization | 2,132 | 2,902 | 6,518 | 8,493 | |||||||||||
Interest and other expenses | 2,713 | 2,566 | 8,090 | 7,683 | |||||||||||
Net operating income from equity method investments at ownership share | 7,310 | 9,702 | 22,759 | 28,300 | |||||||||||
Less: Non Same Store NOI from equity method investments at ownership share | (41 | ) | 2,098 | 479 | 5,960 | ||||||||||
Same Store NOI of equity method investments at ownership share | 7,351 | 7,604 | 22,280 | 22,340 | |||||||||||
Less: Same Store lease termination revenue | 221 | 275 | 477 | 421 | |||||||||||
Same Store NOI from equity method investments excluding lease termination revenue at ownership share | $ | 7,130 | $ | 7,329 | $ | 21,803 | $ | 21,919 |
CONSOLIDATED BALANCE SHEETS | September 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS: | ||||||||
INVESTMENTS IN REAL ESTATE, at cost: | ||||||||
Operating properties | $ | 3,184,656 | $ | 3,180,212 | ||||
Construction in progress | 121,204 | 113,609 | ||||||
Land held for development | 5,881 | 5,881 | ||||||
Total investments in real estate | 3,311,741 | 3,299,702 | ||||||
Accumulated depreciation | (1,169,709 | ) | (1,111,007 | ) | ||||
Net investments in real estate | 2,142,032 | 2,188,695 | ||||||
INVESTMENTS IN PARTNERSHIPS, at equity: | 120,915 | 216,823 | ||||||
OTHER ASSETS: | ||||||||
Cash and cash equivalents | 19,294 | 15,348 | ||||||
Tenant and other receivables (net of allowance for doubtful accounts of $7,246 and $7,248 at September 30, 2018 and December 31, 2017, respectively) | 33,801 | 38,166 | ||||||
Intangible assets (net of accumulated amortization of $14,791 and $13,117 at September 30, 2018 and December 31, 2017, respectively) | 17,360 | 17,693 | ||||||
Deferred costs and other assets, net | 131,043 | 112,046 | ||||||
Assets held for sale | 15,874 | — | ||||||
Total assets | $ | 2,480,319 | $ | 2,588,771 | ||||
LIABILITIES: | ||||||||
Mortgage loans payable, net | $ | 1,052,138 | $ | 1,056,084 | ||||
Term Loans, net | 547,108 | 547,758 | ||||||
Revolving Facility | 37,000 | 53,000 | ||||||
Tenants' deposits and deferred rent | 10,155 | 11,446 | ||||||
Distributions in excess of partnership investments | 92,682 | 97,868 | ||||||
Fair value of derivative liabilities | — | 20 | ||||||
Accrued expenses and other liabilities | 71,862 | 61,604 | ||||||
Total liabilities | 1,810,945 | 1,827,780 | ||||||
EQUITY: | 669,374 | 760,991 | ||||||
Total liabilities and equity | $ | 2,480,319 | $ | 2,588,771 |
(in thousands, except per share amounts) | Quarter Ended September 30 | Per Diluted Share and OP Unit | |||||||
Funds from Operations September 30, 2017 | $ | 32,382 | $ | 0.42 | |||||
Provision for employee separation expense | — | — | |||||||
Accelerated amortization of financing costs | — | — | |||||||
Funds from Operations, as adjusted September 30, 2017 | $ | 32,382 | $ | 0.42 | |||||
Changes - 2017 to 2018 | |||||||||
Contribution from anchor replacements, increase in base rents and net CAM and real estate tax recoveries | 2,008 | 0.025 | |||||||
Impact from bankruptcies | (485 | ) | (0.005 | ) | |||||
Impact of co-tenancy claims | (316 | ) | (0.005 | ) | |||||
Impact of store closures from terminated tenants | (505 | ) | (0.005 | ) | |||||
Impact of 2017 real estate tax appeal | (1,775 | ) | (0.025 | ) | |||||
Lease termination revenue | 24 | — | |||||||
Other NOI changes | 116 | — | |||||||
Same Store NOI from consolidated properties | (933 | ) | (0.010 | ) | |||||
Same Store NOI from unconsolidated properties | (253 | ) | (0.005 | ) | |||||
Same Store NOI | (1,186 | ) | (0.015 | ) | |||||
Non Same Store NOI | (838 | ) | (0.010 | ) | |||||
Dilutive effect of asset sales | (1,660 | ) | (0.020 | ) | |||||
General and administrative expenses | (153 | ) | — | ||||||
Amortization of historic tax credits | (959 | ) | (0.010 | ) | |||||
Other income (expenses), net | 129 | — | |||||||
Interest expense, net of impact of asset sales | (1,419 | ) | (0.020 | ) | |||||
Preferred share dividends | 682 | 0.010 | |||||||
Increase in weighted average shares | — | (0.005 | ) | ||||||
Funds from Operations, as adjusted September 30, 2018 | $ | 26,978 | $ | 0.35 | |||||
Provision for employee separation expense | (561 | ) | (0.005 | ) | |||||
Accelerated amortization of financing costs | — | — | |||||||
Funds from Operations September 30, 2018 | $ | 26,417 | $ | 0.34 |
(in thousands, except per share amounts) | Nine Months Ended September 30 | Per Diluted Share and OP Unit | |||||||
Funds from Operations September 30, 2017 | $ | 89,160 | $ | 1.15 | |||||
Provision for employee separation expense | 1,053 | 0.015 | |||||||
Accelerated amortization of financing costs | — | — | |||||||
Funds from Operations, as adjusted September 30, 2017 | $ | 90,213 | $ | 1.16 | |||||
Changes - 2017 to 2018 | |||||||||
Contribution from anchor replacements, increase in base rents and net CAM and real estate tax recoveries | 4,373 | 0.055 | |||||||
Impact from bankruptcies | (1,906 | ) | (0.025 | ) | |||||
Impact of co-tenancy claims | (743 | ) | (0.010 | ) | |||||
Impact of store closures from terminated tenants | (701 | ) | (0.010 | ) | |||||
Impact of 2017 real estate tax appeal | (1,775 | ) | (0.025 | ) | |||||
Lease termination revenue | 4,923 | 0.065 | |||||||
Other NOI changes | (432 | ) | (0.005 | ) | |||||
Same Store NOI from consolidated properties | 3,739 | 0.050 | |||||||
Same Store NOI from unconsolidated properties | (59 | ) | — | ||||||
Same Store NOI | 3,680 | 0.050 | |||||||
Non Same Store NOI | (2,204 | ) | (0.030 | ) | |||||
Dilutive effect of asset sales | (6,308 | ) | (0.080 | ) | |||||
General and administrative expenses | (1,408 | ) | (0.020 | ) | |||||
Amortization of historic tax credits | (959 | ) | (0.010 | ) | |||||
Other income (expenses), net | 234 | — | |||||||
Interest expense, net of impact of asset sales | (3,684 | ) | (0.045 | ) | |||||
Preferred share dividends | 266 | 0.005 | |||||||
Increase in weighted average shares | — | — | |||||||
Funds from Operations, as adjusted September 30, 2018 | $ | 79,830 | $ | 1.02 | |||||
Provision for employee separation expense | (956 | ) | (0.010 | ) | |||||
Accelerated amortization of financing costs | (363 | ) | (0.005 | ) | |||||
Funds from Operations September 30, 2018 | $ | 78,511 | $ | 1.00 |
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