MARYLAND | 13-6908486 | |
(State of other jurisdiction of incorporation or organization) | (I.R.S Employer Identification Numbers) | |
31500 Northwestern Highway, Suite 300 Farmington Hills, Michigan | 48334 | |
(Address of principal executive offices) | (Zip Code) |
248-350-9900 |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Emerging growth company o |
Page No. | ||
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except per share amounts) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Income producing properties, at cost: | |||||||
Land | $ | 397,344 | $ | 397,935 | |||
Buildings and improvements | 1,785,555 | 1,732,844 | |||||
Less accumulated depreciation and amortization | (393,636 | ) | (351,632 | ) | |||
Income producing properties, net | 1,789,263 | 1,779,147 | |||||
Construction in progress and land available for development or sale | 59,692 | 58,243 | |||||
Net real estate | 1,848,955 | 1,837,390 | |||||
Equity investments in unconsolidated joint ventures | 1,556 | 3,493 | |||||
Cash and cash equivalents | 16,719 | 8,081 | |||||
Restricted cash and escrows | 3,017 | 4,810 | |||||
Accounts receivable (net of allowance for doubtful accounts of $937 and $1,374 as of September 30, 2018 and December 31, 2017, respectively) | 25,622 | 26,145 | |||||
Acquired lease intangibles, net | 47,676 | 59,559 | |||||
Other assets, net | 99,958 | 90,916 | |||||
TOTAL ASSETS | $ | 2,043,503 | $ | 2,030,394 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Notes payable, net | $ | 1,047,113 | $ | 999,215 | |||
Capital lease obligation | 1,022 | 1,022 | |||||
Accounts payable and accrued expenses | 59,433 | 56,750 | |||||
Acquired lease intangibles, net | 50,770 | 60,197 | |||||
Other liabilities | 8,494 | 8,375 | |||||
Distributions payable | 19,725 | 19,666 | |||||
TOTAL LIABILITIES | 1,186,557 | 1,145,225 | |||||
Commitments and Contingencies | |||||||
Ramco-Gershenson Properties Trust ("RPT") Shareholders' Equity: | |||||||
Preferred shares, $0.01 par, 2,000 shares authorized: 7.25% Series D Cumulative Convertible Perpetual Preferred Shares, (stated at liquidation preference $50 per share), 1,849 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 92,427 | 92,427 | |||||
Common shares of beneficial interest, $0.01 par, 120,000 shares authorized, 79,719 and 79,366 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 797 | 794 | |||||
Additional paid-in capital | 1,163,683 | 1,160,862 | |||||
Accumulated distributions in excess of net income | (426,727 | ) | (392,619 | ) | |||
Accumulated other comprehensive income | 6,606 | 2,858 | |||||
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO RPT | 836,786 | 864,322 | |||||
Noncontrolling interest | 20,160 | 20,847 | |||||
TOTAL SHAREHOLDERS' EQUITY | 856,946 | 885,169 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,043,503 | $ | 2,030,394 |
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
REVENUE | |||||||||||||||
Minimum rent | $ | 47,851 | $ | 49,736 | $ | 147,282 | $ | 149,970 | |||||||
Percentage rent | 120 | 106 | 545 | 570 | |||||||||||
Recovery income from tenants | 15,161 | 14,923 | 45,995 | 46,655 | |||||||||||
Other property income | 997 | 1,078 | 2,858 | 3,310 | |||||||||||
Management and other fee income | 88 | 88 | 222 | 314 | |||||||||||
TOTAL REVENUE | 64,217 | 65,931 | 196,902 | 200,819 | |||||||||||
EXPENSES | |||||||||||||||
Real estate taxes | 11,037 | 10,948 | 31,796 | 32,670 | |||||||||||
Recoverable operating expense | 6,301 | 6,660 | 19,248 | 20,699 | |||||||||||
Non-recoverable operating expense | 1,358 | 1,039 | 3,470 | 3,430 | |||||||||||
Depreciation and amortization | 21,150 | 23,130 | 65,719 | 69,282 | |||||||||||
Acquisition costs | — | — | 233 | — | |||||||||||
General and administrative expense | 8,131 | 5,738 | 27,396 | 18,561 | |||||||||||
Provision for impairment | — | 1,885 | 216 | 8,423 | |||||||||||
TOTAL EXPENSES | 47,977 | 49,400 | 148,078 | 153,065 | |||||||||||
OPERATING INCOME | 16,240 | 16,531 | 48,824 | 47,754 | |||||||||||
OTHER INCOME AND EXPENSES | |||||||||||||||
Other (expense) income, net | (240 | ) | 123 | (55 | ) | (612 | ) | ||||||||
Gain on sale of real estate | — | 24,545 | 181 | 35,920 | |||||||||||
Earnings from unconsolidated joint ventures | 297 | 81 | 570 | 223 | |||||||||||
Interest expense | (11,045 | ) | (11,586 | ) | (32,354 | ) | (33,871 | ) | |||||||
Other gain on unconsolidated joint ventures | 5,208 | — | 5,208 | — | |||||||||||
INCOME BEFORE TAX | 10,460 | 29,694 | 22,374 | 49,414 | |||||||||||
Income tax provision | (96 | ) | (65 | ) | (147 | ) | (119 | ) | |||||||
NET INCOME | 10,364 | 29,629 | 22,227 | 49,295 | |||||||||||
Net income attributable to noncontrolling partner interest | (239 | ) | (696 | ) | (514 | ) | (1,158 | ) | |||||||
NET INCOME ATTRIBUTABLE TO RPT | 10,125 | 28,933 | 21,713 | 48,137 | |||||||||||
Preferred share dividends | (1,676 | ) | (1,675 | ) | (5,026 | ) | (5,026 | ) | |||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 8,449 | $ | 27,258 | $ | 16,687 | $ | 43,111 | |||||||
EARNINGS PER COMMON SHARE | |||||||||||||||
Basic | $ | 0.10 | $ | 0.34 | $ | 0.21 | $ | 0.54 | |||||||
Diluted | $ | 0.10 | $ | 0.33 | $ | 0.20 | $ | 0.54 | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||||||||||||
Basic | 79,712 | 79,381 | 79,547 | 79,337 | |||||||||||
Diluted | 80,450 | 86,259 | 79,939 | 79,514 | |||||||||||
Cash Dividend Declared per Common Share | $ | 0.22 | $ | 0.22 | $ | 0.66 | $ | 0.66 | |||||||
OTHER COMPREHENSIVE INCOME | |||||||||||||||
Net income | $ | 10,364 | $ | 29,629 | $ | 22,227 | $ | 49,295 | |||||||
Other comprehensive gain: | |||||||||||||||
Gain on interest rate swaps | 474 | 196 | 3,838 | 287 | |||||||||||
Comprehensive income | 10,838 | 29,825 | 26,065 | 49,582 | |||||||||||
Comprehensive income attributable to noncontrolling interest | (250 | ) | (701 | ) | (604 | ) | (1,164 | ) | |||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO RPT | $ | 10,588 | $ | 29,124 | $ | 25,461 | $ | 48,418 |
RAMCO-GERSHENSON PROPERTIES TRUST | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Shareholders' Equity of Ramco-Gershenson Properties Trust | |||||||||||||||||||||||||||
Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Distributions in Excess of Net Income | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders’ Equity | |||||||||||||||||||||
Balance, December 31, 2017 | $ | 92,427 | $ | 794 | $ | 1,160,862 | $ | (392,619 | ) | $ | 2,858 | $ | 20,847 | $ | 885,169 | ||||||||||||
Adoption of ASU 2017-05 | — | — | — | 2,109 | — | 51 | 2,160 | ||||||||||||||||||||
Issuance of common shares, net of issuance costs | — | — | (39 | ) | — | — | — | (39 | ) | ||||||||||||||||||
Redemption of OP unit holders | — | — | — | (18 | ) | — | (79 | ) | (97 | ) | |||||||||||||||||
Share-based compensation and other expense, net of shares withheld for employee taxes | — | 3 | 2,860 | — | — | — | 2,863 | ||||||||||||||||||||
Dividends declared to common shareholders | — | — | — | (52,519 | ) | — | — | (52,519 | ) | ||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | (5,026 | ) | — | — | (5,026 | ) | ||||||||||||||||||
Distributions declared to noncontrolling interests | — | — | — | — | — | (1,263 | ) | (1,263 | ) | ||||||||||||||||||
Dividends declared to deferred shares | — | — | — | (367 | ) | — | — | (367 | ) | ||||||||||||||||||
Other comprehensive income adjustment | — | — | — | — | 3,748 | 90 | 3,838 | ||||||||||||||||||||
Net income | — | — | — | 21,713 | — | 514 | 22,227 | ||||||||||||||||||||
Balance, September 30, 2018 | $ | 92,427 | $ | 797 | $ | 1,163,683 | $ | (426,727 | ) | $ | 6,606 | $ | 20,160 | $ | 856,946 |
RAMCO GERSHENSON PROPERTIES TRUST | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 22,227 | $ | 49,295 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 65,719 | 69,282 | |||||
Amortization of deferred financing fees | 1,140 | 1,040 | |||||
Income tax provision | 147 | 119 | |||||
Earnings from unconsolidated joint ventures | (570 | ) | (223 | ) | |||
Distributions received from operations of unconsolidated joint ventures | 546 | 613 | |||||
Provision for impairment | 216 | 8,423 | |||||
Other gain on unconsolidated joint ventures | (5,208 | ) | — | ||||
Gain on sale of real estate | (181 | ) | (35,920 | ) | |||
Amortization of premium on mortgages, net | (772 | ) | (870 | ) | |||
Service-based restricted share expense | 3,980 | 1,970 | |||||
Long-term incentive cash and equity compensation expense | 1,346 | 251 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | 523 | (1,441 | ) | ||||
Acquired lease intangibles and other assets, net | (1,786 | ) | (480 | ) | |||
Accounts payable, acquired lease intangibles and other liabilities | (7,509 | ) | (3,201 | ) | |||
Net cash provided by operating activities | 79,818 | 88,858 | |||||
INVESTING ACTIVITIES | |||||||
Acquisition of real estate | (6,365 | ) | (169,882 | ) | |||
Development and capital improvements | (64,335 | ) | (43,966 | ) | |||
Net proceeds from sales of real estate | 1,354 | 121,419 | |||||
Distributions from sale of joint venture property | 6,308 | — | |||||
Investment in unconsolidated joint ventures | 3,000 | — | |||||
Net cash used in investing activities | (60,038 | ) | (92,429 | ) | |||
FINANCING ACTIVITIES | |||||||
Repayments of mortgages and notes payable | (1,902 | ) | (2,381 | ) | |||
Proceeds on revolving credit facility | 65,000 | 224,000 | |||||
Repayments on revolving credit facility | (15,000 | ) | (161,000 | ) | |||
Payment of deferred financing costs | — | (2,263 | ) | ||||
Proceeds, net of costs, from issuance of common stock | (39 | ) | (24 | ) | |||
Redemption of operating partnership units for cash | (97 | ) | (8 | ) | |||
Shares used for employee taxes upon vesting of awards | (1,781 | ) | (497 | ) | |||
Dividends paid to preferred shareholders | (5,026 | ) | (5,026 | ) | |||
Dividends paid to common shareholders and deferred shares | (52,827 | ) | (52,653 | ) | |||
Distributions paid to operating partnership unit holders | (1,263 | ) | (1,266 | ) | |||
Net cash used in financing activities | (12,935 | ) | (1,118 | ) | |||
Net change in cash, cash equivalents and restricted cash | 6,845 | (4,689 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 12,891 | 14,726 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 19,736 | $ | 10,037 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash paid for interest (net of capitalized interest of $706 and $193 in 2018 and 2017, respectively) | $ | 27,986 | $ | 29,698 | |||
Deferred gain recognized in equity | $ | 2,160 | $ | — |
As of September 30, | |||||||||
2018 | 2017 | ||||||||
(In thousands) | |||||||||
Cash and cash equivalents | $ | 16,719 | $ | 4,781 | |||||
Restricted cash and escrows | 3,017 | 5,256 | |||||||
$ | 19,736 | $ | 10,037 | ||||||
• | In January 2018, the FASB issued ASU 2018-01, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842". The standard provides an optional transition practical expedient for the adoption of ASU 2016-02 that, if elected, would not require an organization to reconsider its accounting for existing land easements that are not currently accounted for under the old leases standard. |
• | In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases", which affects narrow aspects of the guidance issued in the amendments in ASU 2016-02. |
• | In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements", which provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606) and certain criteria are met. The guidance also provides an optional transition method which would allow entities to initially apply the new guidance in the period of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings, if necessary. |
Gross | ||||||||||||||||||
Property Name | Location | GLA | Acreage | Date Acquired | Purchase Price | Assumed Debt | ||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||
Leasehold Interest (West Oaks) | Novi, MI | 60 | N/A | 01/05/18 | $ | 6,365 | $ | — | ||||||||||
Total consolidated income producing acquisitions | 60 | — | $ | 6,365 | $ | — | ||||||||||||
Total Acquisitions | 60 | — | $ | 6,365 | $ | — | ||||||||||||
Allocated Fair Value | ||||
(In thousands) | ||||
Buildings and improvements | $ | 6,427 | ||
Above market leases | 237 | |||
Lease origination costs | 633 | |||
Other liabilities | (353 | ) | ||
Below market leases | (579 | ) | ||
Total purchase price allocated | $ | 6,365 | ||
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||
(In thousands) | ||||||||
Total revenue from 2018 acquisition | $ | 196 | $ | 584 | ||||
Net income from 2018 acquisition | $ | 128 | $ | 372 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||||
Consolidated revenue | $ | 64,217 | $ | 66,102 | $ | 196,910 | $ | 201,321 | ||||||||
Consolidated net income available to common shareholders | $ | 8,450 | $ | 27,358 | $ | 16,691 | $ | 43,401 | ||||||||
Gross | ||||||||||||||||||
Property Name | Location | GLA | Acreage | Date Sold | Sales Price | Gain on Sale | ||||||||||||
(In thousands) | ||||||||||||||||||
Theatre Parcel - Hartland Town Square | Hartland, MI | N/A | 7.5 | 04/02/18 | $ | 1,450 | $ | 181 | ||||||||||
Peachtree Hills - Outparcel | Duluth, GA | N/A | 1.7 | 05/25/18 | $ | 650 | $ | — | ||||||||||
Total outparcel dispositions | — | 9.2 | $ | 2,100 | $ | 181 | ||||||||||||
Total Dispositions | — | 9.2 | $ | 2,100 | $ | 181 | ||||||||||||
Balance Sheets | September 30, 2018 | December 31, 2017 | ||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Investment in real estate, net | $ | 22,243 | $ | 93,801 | ||||
Other assets | 1,661 | 4,099 | ||||||
Total Assets | $ | 23,904 | $ | 97,900 | ||||
LIABILITIES AND OWNERS' EQUITY | ||||||||
Mortgage notes payable | $ | — | $ | 42,330 | ||||
Other liabilities | $ | 1 | $ | 220 | ||||
Owners' equity | 23,903 | 55,350 | ||||||
Total Liabilities and Owners' Equity | $ | 23,904 | $ | 97,900 | ||||
RPT's equity investments in unconsolidated joint ventures | $ | 1,556 | $ | 3,493 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Statements of Operations | 2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Total revenue | $ | 782 | $ | 1,192 | $ | 3,204 | $ | 3,485 | ||||||||
Total expenses | 654 | 745 | 2,269 | 2,250 | ||||||||||||
Income before other income and expense | 128 | 447 | 935 | 1,235 | ||||||||||||
Gain on sale of real estate | 1,024 | — | 1,024 | — | ||||||||||||
Net income | $ | 1,152 | $ | 447 | $ | 1,959 | $ | 1,235 | ||||||||
RPT's share of earnings from unconsolidated joint ventures | $ | 297 | $ | 81 | $ | 570 | $ | 223 | ||||||||
Gross | ||||||||||||||||||
Property Name | Location | GLA | Ownership % | Date Sold | Gross Sales Price | Gain on Sale (at 100%) | ||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||
Martin Square | Stuart, FL | 330 | 30 | % | 07/18/18 | $ | 22,000 | $ | 1,024 | |||||||||
330 | $ | 22,000 | $ | 1,024 | ||||||||||||||
RPT's proportionate share of gross sales price and gain on sale of joint venture property | $ | 6,600 | $ | 307 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Management fees | $ | 33 | $ | 69 | $ | 127 | $ | 206 | |||||||
Leasing fees | — | 19 | 40 | 108 | |||||||||||
Disposition fees | 55 | — | 55 | — | |||||||||||
Total | $ | 88 | $ | 88 | $ | 222 | $ | 314 | |||||||
Notes Payable and Capital Lease Obligation | September 30, 2018 | December 31, 2017 | ||||||
(In thousands) | ||||||||
Senior unsecured notes | $ | 610,000 | $ | 610,000 | ||||
Unsecured term loan facilities | 210,000 | 210,000 | ||||||
Fixed rate mortgages | 119,042 | 120,944 | ||||||
Unsecured revolving credit facility | 80,000 | 30,000 | ||||||
Junior subordinated notes | 28,125 | 28,125 | ||||||
1,047,167 | 999,069 | |||||||
Unamortized premium | 3,195 | 3,967 | ||||||
Unamortized deferred financing costs | (3,249 | ) | (3,821 | ) | ||||
Total notes payable | $ | 1,047,113 | $ | 999,215 | ||||
Capital lease obligation | $ | 1,022 | $ | 1,022 | ||||
September 30, 2018 | December 31, 2017 | |||||||||||||||
Senior Unsecured Notes | Maturity Date | Principal Balance | Interest Rate/Weighted Average Interest Rate | Principal Balance | Interest Rate/Weighted Average Interest Rate | |||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Senior unsecured notes - 3.75% due 2021 | 6/27/2021 | $ | 37,000 | 3.75 | % | $ | 37,000 | 3.75 | % | |||||||
Senior unsecured notes - 4.13% due 2022 | 12/21/2022 | 25,000 | 4.13 | % | 25,000 | 4.13 | % | |||||||||
Senior unsecured notes - 4.12% due 2023 | 6/27/2023 | 41,500 | 4.12 | % | 41,500 | 4.12 | % | |||||||||
Senior unsecured notes - 4.65% due 2024 | 5/28/2024 | 50,000 | 4.65 | % | 50,000 | 4.65 | % | |||||||||
Senior unsecured notes - 4.16% due 2024 | 11/4/2024 | 50,000 | 4.16 | % | 50,000 | 4.16 | % | |||||||||
Senior unsecured notes - 4.05% due 2024 | 11/18/2024 | 25,000 | 4.05 | % | 25,000 | 4.05 | % | |||||||||
Senior unsecured notes - 4.27% due 2025 | 6/27/2025 | 31,500 | 4.27 | % | 31,500 | 4.27 | % | |||||||||
Senior unsecured notes - 4.20% due 2025 | 7/6/2025 | 50,000 | 4.20 | % | 50,000 | 4.20 | % | |||||||||
Senior unsecured notes - 4.09% due 2025 | 9/30/2025 | 50,000 | 4.09 | % | 50,000 | 4.09 | % | |||||||||
Senior unsecured notes - 4.74% due 2026 | 5/28/2026 | 50,000 | 4.74 | % | 50,000 | 4.74 | % | |||||||||
Senior unsecured notes - 4.30% due 2026 | 11/4/2026 | 50,000 | 4.30 | % | 50,000 | 4.30 | % | |||||||||
Senior unsecured notes - 4.28% due 2026 | 11/18/2026 | 25,000 | 4.28 | % | 25,000 | 4.28 | % | |||||||||
Senior unsecured notes - 4.57% due 2027 | 12/21/2027 | 30,000 | 4.57 | % | 30,000 | 4.57 | % | |||||||||
Senior unsecured notes - 3.64% due 2028 | 11/30/2028 | 75,000 | 3.64 | % | 75,000 | 3.64 | % | |||||||||
Senior unsecured notes - 4.72% due 2029 | 12/21/2029 | 20,000 | 4.72 | % | 20,000 | 4.72 | % | |||||||||
$ | 610,000 | 4.21 | % | $ | 610,000 | 4.21 | % | |||||||||
Unamortized deferred financing costs | (1,611 | ) | (1,783 | ) | ||||||||||||
Total | $ | 608,389 | $ | 608,217 | ||||||||||||
September 30, 2018 | December 31, 2017 | |||||||||||||||
Unsecured Credit Facilities | Maturity Date | Principal Balance | Interest Rate/Weighted Average Interest Rate | Principal Balance | Interest Rate/Weighted Average Interest Rate | |||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Unsecured term loan due 2020 - fixed rate (1) | 5/16/2020 | $ | 75,000 | 2.99 | % | $ | 75,000 | 2.99 | % | |||||||
Unsecured term loan due 2021 - fixed rate (2) | 5/29/2021 | 75,000 | 2.84 | % | 75,000 | 2.84 | % | |||||||||
Unsecured term loan due 2023 - fixed rate (3) | 3/1/2023 | 60,000 | 3.60 | % | 60,000 | 3.60 | % | |||||||||
$ | 210,000 | 3.11 | % | $ | 210,000 | 3.11 | % | |||||||||
Unamortized deferred financing costs | (900 | ) | (1,224 | ) | ||||||||||||
Term loans, net | $ | 209,100 | $ | 208,776 | ||||||||||||
Revolving credit facility - variable rate | 9/14/2021 | $ | 80,000 | 3.39 | % | 30,000 | 2.71 | % | ||||||||
(1) | Swapped to a weighted average fixed rate of 1.69%, plus a credit spread of 1.30%, based on a leverage grid at September 30, 2018. |
(2) | Swapped to a weighted average fixed rate of 1.49%, plus a credit spread of 1.35%, based on a leverage grid at September 30, 2018. |
(3) | Swapped to a weighted average fixed rate of 1.95%, plus a credit spread of 1.65%, based on a leverage grid at September 30, 2018. |
September 30, 2018 | December 31, 2017 | |||||||||||||||
Mortgage Debt | Maturity Date | Principal Balance | Interest Rate/Weighted Average Interest Rate | Principal Balance | Interest Rate/Weighted Average Interest Rate | |||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Crossroads Centre Home Depot | 12/1/2019 | $ | 3,275 | 7.38 | % | $ | 3,352 | 7.38 | % | |||||||
West Oaks II and Spring Meadows Place | 4/20/2020 | 26,012 | 6.50 | % | 26,611 | 6.50 | % | |||||||||
Bridgewater Falls Shopping Center | 2/6/2022 | 54,780 | 5.70 | % | 55,545 | 5.70 | % | |||||||||
The Shops on Lane Avenue | 1/10/2023 | 28,650 | 3.76 | % | 28,650 | 3.76 | % | |||||||||
Nagawaukee II | 6/1/2026 | 6,325 | 5.80 | % | 6,786 | 5.80 | % | |||||||||
$ | 119,042 | 5.46 | % | $ | 120,944 | 5.47 | % | |||||||||
Unamortized premium | 3,195 | 3,967 | ||||||||||||||
Unamortized deferred financing costs | (99 | ) | (149 | ) | ||||||||||||
Total | $ | 122,138 | $ | 124,762 | ||||||||||||
Year Ending December 31, | |||
(In thousands) | |||
2018 | $ | 659 | |
2019 | 5,860 | ||
2020 | 102,269 | ||
2021 (1) | 194,508 | ||
2022 | 77,397 | ||
Thereafter | 666,474 | ||
Subtotal debt | 1,047,167 | ||
Unamortized premium | 3,195 | ||
Unamortized deferred financing costs | (3,249 | ) | |
Total debt | $ | 1,047,113 | |
Level 1 | Valuation is based upon quoted prices for identical instruments traded in active markets. |
Level 2 | Valuation is based upon prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. |
Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the assets or liabilities. |
Total | |||||||||||
Balance Sheet Location | Fair Value | Level 2 | |||||||||
September 30, 2018 | (In thousands) | ||||||||||
Derivative assets - interest rate swaps | Other assets | $ | 6,763 | $ | 6,763 | ||||||
Derivative liabilities - interest rate swaps | Other liabilities | $ | — | $ | — | ||||||
December 31, 2017 | |||||||||||
Derivative assets - interest rate swaps | Other assets | $ | 3,133 | $ | 3,133 | ||||||
Derivative liabilities - interest rate swaps | Other liabilities | $ | (208 | ) | $ | (208 | ) | ||||
Hedge | Notional | Fixed | Fair | Expiration | |||||||||||
Underlying Debt | Type | Value | Rate | Value | Date | ||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Derivative Assets | |||||||||||||||
Unsecured term loan | Cash Flow | $ | 25,000 | 1.850 | % | $ | — | 10/2018 | |||||||
Unsecured term loan | Cash Flow | 5,000 | 1.840 | % | — | 10/2018 | |||||||||
Unsecured term loan | Cash Flow | 30,000 | 2.048 | % | — | 10/2018 | |||||||||
Unsecured term loan | Cash Flow | 15,000 | 2.150 | % | 147 | 05/2020 | |||||||||
Unsecured term loan | Cash Flow | 10,000 | 2.150 | % | 98 | 05/2020 | |||||||||
Unsecured term loan | Cash Flow | 50,000 | 1.460 | % | 1,044 | 05/2020 | |||||||||
Unsecured term loan | Cash Flow | 20,000 | 1.498 | % | 702 | 05/2021 | |||||||||
Unsecured term loan | Cash Flow | 15,000 | 1.490 | % | 531 | 05/2021 | |||||||||
Unsecured term loan | Cash Flow | 40,000 | 1.480 | % | 1,425 | 05/2021 | |||||||||
$ | 210,000 | $ | 3,947 | ||||||||||||
Derivative Assets - Forward Swaps | |||||||||||||||
Unsecured term loan | Cash Flow | 60,000 | 1.770 | % | 2,816 | 03/2023 | |||||||||
Total Derivative Assets | $ | 270,000 | $ | 6,763 | |||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Interest rate contracts - assets | $ | 260 | $ | (44 | ) | Interest Expense | $ | 214 | $ | 62 | ||||||||
Interest rate contracts - liabilities | — | 360 | Interest Expense | — | (182 | ) | ||||||||||||
Total | $ | 260 | $ | 316 | Total | $ | 214 | $ | (120 | ) | ||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Interest rate contracts - assets | $ | 3,367 | $ | (98 | ) | Interest Expense | $ | 264 | $ | (319 | ) | |||||||
Interest rate contracts - liabilities | 246 | 1,437 | Interest Expense | (39 | ) | (733 | ) | |||||||||||
Total | $ | 3,613 | $ | 1,339 | Total | $ | 225 | $ | (1,052 | ) | ||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income | $ | 10,364 | $ | 29,629 | $ | 22,227 | $ | 49,295 | |||||||
Net income attributable to noncontrolling interest | (239 | ) | (696 | ) | (514 | ) | (1,158 | ) | |||||||
Allocation of income to restricted share awards | (83 | ) | (135 | ) | (319 | ) | (310 | ) | |||||||
Income attributable to RPT | 10,042 | 28,798 | 21,394 | 47,827 | |||||||||||
Preferred share dividends | (1,676 | ) | (1,675 | ) | (5,026 | ) | (5,026 | ) | |||||||
Net income available to common shareholders - Basic | 8,366 | 27,123 | 16,368 | 42,801 | |||||||||||
Add back preferred shares for dilution (1) | — | 1,675 | — | — | |||||||||||
Net income available to common shareholders - Diluted | $ | 8,366 | $ | 28,798 | $ | 16,368 | $ | 42,801 | |||||||
Weighted average shares outstanding, Basic | 79,712 | 79,381 | 79,547 | 79,337 | |||||||||||
Restricted stock awards using the treasury method | 738 | 165 | 392 | 177 | |||||||||||
Dilutive effect of securities (1) | — | 6,713 | — | — | |||||||||||
Weighted average shares outstanding, Diluted | 80,450 | 86,259 | 79,939 | 79,514 | |||||||||||
Income per common share, Basic | $ | 0.10 | $ | 0.34 | $ | 0.21 | $ | 0.54 | |||||||
Income per common share, Diluted | $ | 0.10 | $ | 0.33 | $ | 0.20 | $ | 0.54 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Issued | Converted | Issued | Converted | Issued | Converted | Issued | Converted | ||||||||||||
Operating Partnership Units | 1,909 | 1,909 | 1,917 | 1,917 | 1,909 | 1,909 | 1,917 | 1,917 | |||||||||||
Series D Preferred Shares | 1,849 | 6,830 | — | — | 1,849 | 6,830 | 1,849 | 6,713 | |||||||||||
Performance Share Units | — | — | 98 | — | — | — | 98 | — | |||||||||||
3,758 | 8,739 | 2,015 | 1,917 | 3,758 | 8,739 | 3,864 | 8,630 | ||||||||||||
• | 489,306 shares of service-based restricted stock. The service-based awards were valued based on our closing stock price as of the grant date; and |
• | performance-based equity awards that are earned subject to a future performance measurement based on a three-year shareholder return peer comparison (“TSR Grants”). |
• | Own and manage high quality grocery anchored and lifestyle shopping centers predominantly concentrated in the top U.S. metro areas that deliver outsized NOI growth over the long term; |
• | Cultivate and maintain an industry leading redevelopment and expansion pipeline that delivers risk adjusted adequate returns; |
• | Strive towards a flexible, low leverage balance sheet; and |
• | Retain and invest in highly motivated, innovative leaders who embrace our culture of excellence, integrity and empowerment. |
Consolidated Metro Markets(1) Summary | ||||||||||||||||||||
Metro Markets (MSA Rank) | Number of Properties | GLA (in thousands) | Leased % | Occupied % | ABR/SF including Ground Leases | % of ABR including Ground Leases | ||||||||||||||
Atlanta (9) | 3 | 523 | 95.8 | % | 94.4 | % | $ | 11.85 | 3.1 | % | ||||||||||
Baltimore (21) | 1 | 252 | 94.7 | % | 50.9 | % | 11.47 | 0.8 | % | |||||||||||
Chicago (3) | 4 | 767 | 89.0 | % | 89.0 | % | 15.75 | 5.8 | % | |||||||||||
Cincinnati (28) | 3 | 1,263 | 92.7 | % | 92.5 | % | 15.69 | 9.9 | % | |||||||||||
Columbus (33) | 2 | 436 | 93.7 | % | 89.2 | % | 16.89 | 3.5 | % | |||||||||||
Denver (19) | 3 | 864 | 91.7 | % | 81.7 | % | 19.39 | 7.4 | % | |||||||||||
Detroit (14) | 9 | 2,308 | 98.9 | % | 97.5 | % | 14.67 | 17.7 | % | |||||||||||
Indianapolis (34) | 1 | 247 | 84.2 | % | 80.9 | % | 13.58 | 1.5 | % | |||||||||||
Jacksonville (40) | 2 | 707 | 87.7 | % | 87.7 | % | 17.55 | 5.8 | % | |||||||||||
Miami (8) | 6 | 1,035 | 95.9 | % | 92.5 | % | 17.44 | 9.0 | % | |||||||||||
Milwaukee (39) | 3 | 878 | 92.8 | % | 84.1 | % | 13.75 | 5.5 | % | |||||||||||
Minneapolis (16) | 2 | 442 | 92.4 | % | 89.3 | % | 25.01 | 5.3 | % | |||||||||||
Nashville (36) | 1 | 632 | 97.7 | % | 97.5 | % | 13.04 | 4.3 | % | |||||||||||
St. Louis (20) | 4 | 827 | 95.8 | % | 91.7 | % | 15.55 | 6.3 | % | |||||||||||
Tampa (18) | 4 | 728 | 99.3 | % | 98.2 | % | 12.58 | 4.8 | % | |||||||||||
Not Top 40 MSA | 8 | 1,745 | 92.1 | % | 90.4 | % | 11.01 | 9.3 | % | |||||||||||
Total | 56 | 13,654 | 94.2 | % | 90.8 | % | $ | 15.02 | 100.0 | % | ||||||||||
(1) | Metro Markets are targeted growth markets as primarily defined for Metropolitan Statistical Areas by the U.S. Government. |
Leasing Transactions | Square Footage | Base Rent/SF (1) | Prior Rent/SF (2) | Tenant Improvements/SF (3) | Leasing Commissions/SF | |||
Renewals | 143 | 860,217 | $17.27 | $16.31 | $1.19 | $0.12 | ||
New Leases - Comparable | 14 | 123,427 | $11.48 | $7.41 | $10.41 | $7.00 | ||
New Leases - Non-Comparable (4) | 73 | 421,266 | $15.29 | N/A | $45.80 | $6.52 | ||
Total | 230 | 1,404,910 | $16.16 | N/A | $15.37 | $2.64 | ||
(2) | Prior rent represents minimum rent, if any, paid by the prior tenant in the final 12 months of the term. |
(3) | Includes tenant improvement cost, tenant allowances, and landlord costs. Excludes first generation space and new leases related to development and redevelopment activity. |
Three Months Ended September 30, | |||||||||||||||
2018 | 2017 | Dollar Change | Percent Change | ||||||||||||
(In thousands) | |||||||||||||||
Total revenue | $ | 64,217 | $ | 65,931 | $ | (1,714 | ) | (2.6 | )% | ||||||
Real estate taxes | 11,037 | 10,948 | 89 | 0.8 | % | ||||||||||
Recoverable operating expense | 6,301 | 6,660 | (359 | ) | (5.4 | )% | |||||||||
Non-recoverable operating expense | 1,358 | 1,039 | 319 | 30.7 | % | ||||||||||
Depreciation and amortization | 21,150 | 23,130 | (1,980 | ) | (8.6 | )% | |||||||||
General and administrative expense | 8,131 | 5,738 | 2,393 | 41.7 | % | ||||||||||
Provision for impairment | — | 1,885 | (1,885 | ) | (100.0 | )% | |||||||||
Gain on sale of real estate | — | 24,545 | (24,545 | ) | (100.0 | )% | |||||||||
Earnings from unconsolidated joint ventures | 297 | 81 | 216 | 266.7 | % | ||||||||||
Interest expense | 11,045 | 11,586 | (541 | ) | (4.7 | )% | |||||||||
Other gain on unconsolidated joint ventures | 5,208 | — | 5,208 | — | % | ||||||||||
Preferred share dividends | 1,676 | 1,675 | 1 | 0.1 | % | ||||||||||
• | $4.4 million decrease related to properties sold in 2017; offset by |
• | $2.7 million increase related to our existing centers attributable to higher minimum rent and increased recovery income from tenants. |
• | $1.6 million of executive management reorganization expenses, which included severance costs associated with former executives as well as sign on bonuses and relocation fees associated with the new executive team; |
• | $0.9 million of severance costs resulting from the reduction-in-force associated with the reorganization of the Company's operating structure; and |
• | $0.3 million increase in stock compensation expense; offset by |
• | $0.4 million decrease in professional fees. |
Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | Dollar Change | Percent Change | ||||||||||||
(In thousands) | |||||||||||||||
Total revenue | $ | 196,902 | $ | 200,819 | $ | (3,917 | ) | (2.0 | )% | ||||||
Real estate taxes | 31,796 | 32,670 | (874 | ) | (2.7 | )% | |||||||||
Recoverable operating expense | 19,248 | 20,699 | (1,451 | ) | (7.0 | )% | |||||||||
Non-recoverable operating expense | 3,470 | 3,430 | 40 | 1.2 | % | ||||||||||
Depreciation and amortization | 65,719 | 69,282 | (3,563 | ) | (5.1 | )% | |||||||||
Acquisition costs | 233 | — | 233 | — | % | ||||||||||
General and administrative expense | 27,396 | 18,561 | 8,835 | 47.6 | % | ||||||||||
Provision for impairment | 216 | 8,423 | (8,207 | ) | (97.4 | )% | |||||||||
Gain on sale of real estate | 181 | 35,920 | (35,739 | ) | (99.5 | )% | |||||||||
Earnings from unconsolidated joint ventures | 570 | 223 | 347 | 155.6 | % | ||||||||||
Interest expense | 32,354 | 33,871 | (1,517 | ) | (4.5 | )% | |||||||||
Other gain on unconsolidated joint ventures | 5,208 | — | 5,208 | — | % | ||||||||||
Preferred share dividends | 5,026 | 5,026 | — | — | % | ||||||||||
• | $17.6 million decrease related to properties sold in 2017; offset by |
• | $5.2 million increase from acceleration of a below market lease attributable to a specific tenant who vacated prior to the original estimated lease termination date; |
• | $5.9 million increase related to our existing centers largely attributable to changes in estimates associated with recoveries of common area maintenance and real estate taxes, and higher minimum rent; and |
• | $2.6 million increase related to properties acquired in 2017 and a leasehold interest acquired in 2018. |
• | $9.1 million of executive management reorganization expenses, which included severance costs associated with former executives as well as sign on bonuses and relocation fees associated with the new executive team; |
• | $0.9 million of severance costs resulting from the reduction-in-force associated with the reorganization of the Company's operating structure; offset by |
• | $0.8 million decrease in professional and trustee fees. |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Net cash provided by operating activities | $ | 79,818 | $ | 88,858 | |||
Net cash used in investing activities | (60,038 | ) | (92,429 | ) | |||
Net cash used in by financing activities | (12,935 | ) | (1,118 | ) | |||
Payments due by period | |||||||||||||||||||
Contractual Obligations | Total | Less than 1 year (1) | 1-3 years | 4-5 years | More than 5 years | ||||||||||||||
(In thousands) | |||||||||||||||||||
Mortgages and notes payable: | |||||||||||||||||||
Scheduled amortization | $ | 13,169 | $ | 659 | $ | 7,772 | $ | 2,277 | $ | 2,461 | |||||||||
Payments due at maturity | 1,033,998 | — | 294,865 | 204,508 | 534,625 | ||||||||||||||
Total mortgages and notes payable (2) | 1,047,167 | 659 | 302,637 | 206,785 | 537,086 | ||||||||||||||
Interest expense (3) | 261,585 | 10,970 | 120,259 | 55,151 | 75,205 | ||||||||||||||
Employment contracts | 5,216 | 599 | 4,617 | — | — | ||||||||||||||
Capital lease (4) | 1,500 | 100 | 300 | 200 | 900 | ||||||||||||||
Operating leases | 101,497 | 374 | 4,126 | 2,534 | 94,463 | ||||||||||||||
Construction commitments | 12,367 | 12,367 | — | — | — | ||||||||||||||
Development obligations | 4,192 | 527 | 1,247 | 480 | 1,938 | ||||||||||||||
Total contractual obligations | $ | 1,433,524 | $ | 25,596 | $ | 433,186 | $ | 265,150 | $ | 709,592 | |||||||||
(1) | Amounts represent balance of obligation for the remainder of 2018. |
(2) | Excludes $3.2 million of unamortized mortgage debt premium and $3.2 million in net deferred financing costs. |
(3) | Variable-rate debt interest is calculated using rates at September 30, 2018. |
(4) | Includes interest payments associated with the capital lease obligation. |
(In thousands) | |||
Net debt (including property-specific mortgages, unsecured revolving credit facility, term loans and capital lease obligation net of $16.7 million in cash and cash equivalents) | $ | 1,031,470 | |
Common shares, OP units, and dilutive securities based on market price of $13.60 at September 30, 2018 | 1,120,178 | ||
Convertible perpetual preferred shares based on market price of $53.82 at September 30, 2018 | 99,513 | ||
Total market capitalization | $ | 2,251,161 | |
Net debt to total market capitalization | 45.8 | % | |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income | $ | 10,364 | $ | 29,629 | $ | 22,227 | $ | 49,295 | |||||||
Net income attributable to noncontrolling partner interest | (239 | ) | (696 | ) | (514 | ) | (1,158 | ) | |||||||
Preferred share dividends | (1,676 | ) | (1,675 | ) | (5,026 | ) | (5,026 | ) | |||||||
Net income available to common shareholders | 8,449 | 27,258 | 16,687 | 43,111 | |||||||||||
Adjustments: | |||||||||||||||
Rental property depreciation and amortization expense | 21,081 | 23,071 | 65,556 | 69,104 | |||||||||||
Pro-rata share of real estate depreciation from unconsolidated joint ventures | 32 | 77 | 177 | 229 | |||||||||||
Gain on sale of depreciable real estate | — | (23,841 | ) | — | (35,032 | ) | |||||||||
Gain on sale of joint venture depreciable real estate | (307 | ) | — | (307 | ) | — | |||||||||
Provision for impairment on income-producing properties | — | 1,885 | — | 8,423 | |||||||||||
Other gain on unconsolidated joint ventures | (5,208 | ) | — | (5,208 | ) | — | |||||||||
FFO available to common shareholders | 24,047 | 28,450 | 76,905 | 85,835 | |||||||||||
Noncontrolling interest in Operating Partnership (1) | 239 | — | 514 | 1,158 | |||||||||||
Preferred share dividends (assuming conversion) (3) | 1,676 | 1,675 | 5,026 | 5,026 | |||||||||||
FFO available to common shareholders and dilutive securities | 25,962 | 30,125 | 82,445 | 92,019 | |||||||||||
Gain on sale of land | — | (704 | ) | (181 | ) | (889 | ) | ||||||||
Provision for impairment on land available for development or sale | — | — | 216 | — | |||||||||||
Severance expense | 856 | 88 | 925 | 655 | |||||||||||
Acquisition costs | — | — | 233 | — | |||||||||||
Executive management reorganization, net (2) | 1,592 | — | 9,115 | — | |||||||||||
Loss on extinguishment of debt | — | 81 | — | 81 | |||||||||||
Contingent gain in other income (expense) | — | — | (398 | ) | — | ||||||||||
Operating FFO available to common shareholders and dilutive securities | $ | 28,410 | $ | 29,590 | $ | 92,355 | $ | 91,866 | |||||||
Weighted average common shares | 79,712 | 79,381 | 79,547 | 79,337 | |||||||||||
Shares issuable upon conversion of Operating Partnership Units (1) | 1,909 | — | 1,914 | 1,917 | |||||||||||
Dilutive effect of restricted stock | 738 | 165 | 392 | 176 | |||||||||||
Shares issuable upon conversion of preferred shares (3) | 6,830 | 6,713 | 6,830 | 6,713 | |||||||||||
Weighted average equivalent shares outstanding, diluted | 89,189 | 86,259 | 88,683 | 88,143 | |||||||||||
Diluted earnings per share (4) | $ | 0.10 | $ | 0.33 | $ | 0.20 | $ | 0.54 | |||||||
Per share adjustments for FFO available to common shareholders and dilutive securities | 0.19 | 0.02 | 0.73 | 0.50 | |||||||||||
FFO available to common shareholders and dilutive securities per share, diluted | $ | 0.29 | $ | 0.35 | $ | 0.93 | $ | 1.04 | |||||||
Per share adjustments for Operating FFO available to common shareholders and dilutive securities | 0.03 | (0.01 | ) | 0.11 | — | ||||||||||
Operating FFO available to common shareholders and dilutive securities per share, diluted | $ | 0.32 | $ | 0.34 | $ | 1.04 | $ | 1.04 | |||||||
(1) | The total non-controlling interest reflects OP units convertible 1:1 into common shares. The Company's net income for the three months ended September 30, 2017 (largely driven by gains on real estate sales), results in an allocation to OP units of $696 and an income per OP unit ratio of $0.363 (based on 1,917 weighted avg. OP units outstanding). Basic FFO for the quarter approximates $0.358 per share. In instances when the OP unit ratio exceeds basic FFO, the OP units are considered anti-dilutive, and as a result are not included in the calculation of fully diluted FFO and Operating FFO for the three months ended September 30, 2017. |
(2) | Includes severance, accelerated vesting of restricted stock and performance award charges, and the benefit from the forfeiture of unvested restricted stock and performance awards associated with our former executive officers, in addition to recruiting fees, relocation fees and cash inducement bonuses related to the 2018 hiring of our executive team members. |
(3) | Series D convertible preferred shares are paid annual dividends of $6.7 million and are currently convertible into approximately 6.8 million common shares. They are dilutive only when earnings or FFO exceed approximately $0.25 per diluted share per quarter, which was the case for FFO for the three and nine months ended September 30, 2018 and 2017. The conversion ratio is subject to adjustment based upon a number of factors, and such adjustment could affect the dilutive impact of the Series D convertible preferred shares on earnings per share and FFO in future periods. |
(4) | The denominator to calculate diluted earnings per share excludes shares issuable upon conversion of OP units and preferred shares for the three and nine months ended September 30, 2018 and 2017. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
Property Designation | 2018 | 2017 | 2018 | 2017 | ||||
Same-property | 54 | 54 | 52 | 52 | ||||
Acquisitions (1) | — | — | 2 | 2 | ||||
Redevelopment (2) | 2 | 2 | 2 | 2 | ||||
Total wholly owned properties | 56 | 56 | 56 | 56 | ||||
(1) Includes the following properties not owned in both comparable periods: Providence Marketplace and Webster Place. | ||||||||
(2) Includes the following properties: Woodbury Lakes and Deerfield Towne Center. The entire property indicated for each period is completely excluded from Same Property NOI without Redevelopment. | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Net income available to common shareholders | $ | 8,449 | $ | 27,258 | $ | 16,687 | $ | 43,111 | |||||||
Adjustments to reconcile to Same Property NOI: | |||||||||||||||
Preferred share dividends | 1,676 | 1,675 | 5,026 | 5,026 | |||||||||||
Net income attributable to noncontrolling interest | 239 | 696 | 514 | 1,158 | |||||||||||
Income tax provision | 96 | 65 | 147 | 119 | |||||||||||
Interest expense | 11,045 | 11,586 | 32,354 | 33,871 | |||||||||||
Earnings from unconsolidated joint ventures | (297 | ) | (81 | ) | (570 | ) | (223 | ) | |||||||
Gain on sale of real estate | — | (24,545 | ) | (181 | ) | (35,920 | ) | ||||||||
Other gain on unconsolidated joint venture | (5,208 | ) | — | (5,208 | ) | — | |||||||||
Other expense (income), net | 240 | (123 | ) | 55 | 612 | ||||||||||
Management and other fee income | (88 | ) | (88 | ) | (222 | ) | (314 | ) | |||||||
Depreciation and amortization | 21,150 | 23,130 | 65,719 | 69,282 | |||||||||||
Acquisition costs | — | — | 233 | — | |||||||||||
General and administrative expenses | 8,131 | 5,738 | 27,396 | 18,561 | |||||||||||
Provision for impairment | — | 1,885 | 216 | 8,423 | |||||||||||
Amortization of lease inducements | 44 | 44 | 130 | 131 | |||||||||||
Amortization of acquired above and below market lease intangibles | (1,345 | ) | (1,160 | ) | (8,733 | ) | (3,267 | ) | |||||||
Lease termination fees | (3 | ) | (27 | ) | (108 | ) | (60 | ) | |||||||
Straight-line ground rent expense | 70 | 70 | 211 | 211 | |||||||||||
Amortization of acquired ground lease intangibles | 7 | 6 | 19 | 19 | |||||||||||
Straight-line rental income | (728 | ) | (608 | ) | (2,290 | ) | (1,797 | ) | |||||||
NOI | 43,478 | 45,521 | 131,395 | 138,943 | |||||||||||
NOI from Other Investments | (98 | ) | (3,078 | ) | (8,725 | ) | (18,841 | ) | |||||||
Same Property NOI with Redevelopment | 43,380 | 42,443 | 122,670 | 120,102 | |||||||||||
NOI from Redevelopment | (3,572 | ) | (2,838 | ) | (10,358 | ) | (8,717 | ) | |||||||
Same Property NOI without Redevelopment | $ | 39,808 | $ | 39,605 | $ | 112,312 | $ | 111,385 | |||||||
Period-end Occupancy percent with Redevelopment | 90.8 | % | 91.3 | % | 90.4 | % | 90.9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Stable | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||
Property | GLA | GLA | NOI | GLA | NOI | GLA | NOI | GLA | NOI | |||||||||||||||||
Buttermilk Towne Center | 278 | 13 | $ | (56 | ) | 13 | $ | — | 13 | $ | (168 | ) | 13 | $ | — | |||||||||||
Front Range Village | 468 | 28 | (188 | ) | 28 | — | 28 | (264 | ) | 28 | — | |||||||||||||||
River City Marketplace | 557 | — | — | — | — | 6 | (78 | ) | 6 | (19 | ) | |||||||||||||||
Shops on Lane Avenue | 177 | 6 | (52 | ) | 6 | (27 | ) | 6 | (135 | ) | 6 | (81 | ) | |||||||||||||
Spring Meadows | 266 | 49 | (140 | ) | 49 | (105 | ) | 49 | (420 | ) | 49 | (205 | ) | |||||||||||||
The Shoppes at Fox River II | 263 | 69 | (233 | ) | 69 | (112 | ) | 69 | (554 | ) | 69 | (281 | ) | |||||||||||||
Town & Country | 167 | — | — | — | — | 20 | (139 | ) | 20 | (25 | ) | |||||||||||||||
Troy Marketplace | 220 | 17 | (159 | ) | 17 | — | 17 | (217 | ) | 17 | — | |||||||||||||||
Total adjustments | 182 | $ | (828 | ) | 182 | $ | (244 | ) | 208 | $ | (1,975 | ) | 208 | $ | (611 | ) | ||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Fixed-rate debt | $ | 659 | $ | 5,860 | $ | 102,269 | $ | 114,508 | $ | 77,397 | $ | 638,349 | $ | 939,042 | $ | 921,641 | ||||||||||||||||
Average interest rate | 6.0 | % | 6.8 | % | 3.9 | % | 3.2 | % | 5.2 | % | 4.2 | % | 4.1 | % | 4.7 | % | ||||||||||||||||
Variable-rate debt | $ | — | $ | — | $ | — | $ | 80,000 | $ | — | $ | 28,125 | $ | 108,125 | $ | 108,125 | ||||||||||||||||
Average interest rate | — | % | — | % | — | % | 3.4 | % | — | % | 5.6 | % | 3.9 | % | 4.8 | % | ||||||||||||||||
Exhibit No. | Description |
12.1* | |
31.1* | |
31.2* | |
32.1* | |
32.2* | |
101.INS(1) | XBRL Instance Document. |
101.SCH(1) | XBRL Taxonomy Extension Schema. |
101.CAL(1) | XBRL Taxonomy Extension Calculation. |
101.DEF(1) | XBRL Taxonomy Extension Definition. |
101.LAB(1) | XBRL Taxonomy Extension Label. |
101.PRE(1) | XBRL Taxonomy Extension Presentation. |
* | Filed herewith |
(1) | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability thereunder. |
RAMCO-GERSHENSON PROPERTIES TRUST | |
Date: November 1, 2018 | By: /s/ BRIAN L. HARPER Brian L. Harper President and Chief Executive Officer (Principal Executive Officer) |
Date: November 1, 2018 | By: /s/ MICHAEL P. FITZMAURICE Michael P. Fitzmaurice Chief Financial Officer (Principal Financial Officer) |
Date: November 1, 2018 | By: /s/ RAYMOND J. MERK Raymond J. Merk Chief Accounting Officer (Principal Accounting Officer) |
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
Pretax income before adjustment for noncontrolling interest | $ | 10,460 | $ | 29,694 | $ | 22,374 | $ | 49,414 | |||||||||
Add back: | |||||||||||||||||
Fixed charges | 11,327 | 11,786 | 33,515 | 34,316 | |||||||||||||
Distributed income of equity investees | 65 | 135 | 546 | 613 | |||||||||||||
Deduct: | |||||||||||||||||
Equity in earnings of equity investees | (297 | ) | (81 | ) | (570 | ) | (223 | ) | |||||||||
Capitalized interest | (130 | ) | (75 | ) | (706 | ) | (193 | ) | |||||||||
Earnings as Defined | $ | 21,425 | $ | 41,459 | $ | 55,159 | $ | 83,927 | |||||||||
Fixed Charges | |||||||||||||||||
Interest expense including amortization of deferred financing fees | $ | 11,045 | $ | 11,586 | $ | 32,354 | $ | 33,871 | |||||||||
Capitalized interest | 130 | 75 | 706 | 193 | |||||||||||||
Interest portion of rent expense | 152 | 125 | 455 | 252 | |||||||||||||
Fixed Charges | 11,327 | 11,786 | 33,515 | 34,316 | |||||||||||||
Preferred share dividends | 1,676 | 1,675 | 5,026 | 5,026 | |||||||||||||
Combined Fixed Charges and Preferred Dividends | $ | 13,003 | $ | 13,461 | $ | 38,541 | $ | 39,342 | |||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | 1.65 | 3.08 | 1.43 | 2.13 | |||||||||||||
1. | I have reviewed this quarterly report on Form 10-Q of Ramco-Gershenson Properties Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 1, 2018 | By: /s/ BRIAN L. HARPER Brian L. Harper President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Ramco-Gershenson Properties Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 1, 2018 | By: /s/ MICHAEL P. FITZMAURICE Michael P. Fitzmaurice Chief Financial Officer |
(1) | The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 1, 2018 | By: /s/ BRIAN L. HARPER Brian L. Harper President and Chief Executive Officer |
(1) | The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 1, 2018 | By: /s/ MICHAEL P. FITZMAURICE Michael P. Fitzmaurice Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 26, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RAMCO GERSHENSON PROPERTIES TRUST | |
Entity Central Index Key | 0000842183 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RPT | |
Entity Common Stock, Shares Outstanding | 80,153,381 |
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
REVENUE | ||||
TOTAL REVENUE | $ 64,217,000 | $ 65,931,000 | $ 196,902,000 | $ 200,819,000 |
EXPENSES | ||||
Real estate taxes | 11,037,000 | 10,948,000 | 31,796,000 | 32,670,000 |
Recoverable operating expense | 6,301,000 | 6,660,000 | 19,248,000 | 20,699,000 |
Non-recoverable operating expense | 1,358,000 | 1,039,000 | 3,470,000 | 3,430,000 |
Depreciation and amortization | 21,150,000 | 23,130,000 | 65,719,000 | 69,282,000 |
Acquisition costs | 0 | 0 | 233,000 | 0 |
General and administrative expense | 8,131,000 | 5,738,000 | 27,396,000 | 18,561,000 |
Provision for impairment | 0 | 1,885,000 | 216,000 | 8,423,000 |
TOTAL EXPENSES | 47,977,000 | 49,400,000 | 148,078,000 | 153,065,000 |
OPERATING INCOME | 16,240,000 | 16,531,000 | 48,824,000 | 47,754,000 |
OTHER INCOME AND EXPENSES | ||||
Other (expense) income, net | (240,000) | 123,000 | (55,000) | (612,000) |
Gain on sale of real estate | 0 | 24,545,000 | 181,000 | 35,920,000 |
Earnings from unconsolidated joint ventures | 297,000 | 81,000 | 570,000 | 223,000 |
Interest expense | (11,045,000) | (11,586,000) | (32,354,000) | (33,871,000) |
Other gain on unconsolidated joint ventures | 5,208,000 | 0 | 5,208,000 | 0 |
INCOME BEFORE TAX | 10,460,000 | 29,694,000 | 22,374,000 | 49,414,000 |
Income tax provision | (96,000) | (65,000) | (147,000) | (119,000) |
NET INCOME | 10,364,000 | 29,629,000 | 22,227,000 | 49,295,000 |
Net income attributable to noncontrolling partner interest | (239,000) | (696,000) | (514,000) | (1,158,000) |
NET INCOME ATTRIBUTABLE TO RPT | 10,125,000 | 28,933,000 | 21,713,000 | 48,137,000 |
Preferred share dividends | (1,676,000) | (1,675,000) | (5,026,000) | (5,026,000) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 8,449,000 | $ 27,258,000 | $ 16,687,000 | $ 43,111,000 |
EARNINGS PER COMMON SHARE | ||||
Basic (in usd per share) | $ 0.10 | $ 0.34 | $ 0.21 | $ 0.54 |
Diluted (in usd per share) | $ 0.10 | $ 0.33 | $ 0.20 | $ 0.54 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||
Basic (in shares) | 79,712 | 79,381 | 79,547 | 79,337 |
Diluted (in shares) | 80,450 | 86,259 | 79,939 | 79,514 |
Cash Dividend Declared per Common Share (in usd per share) | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.66 |
OTHER COMPREHENSIVE INCOME | ||||
Net income | $ 10,364,000 | $ 29,629,000 | $ 22,227,000 | $ 49,295,000 |
Other comprehensive gain: | ||||
Gain on interest rate swaps | 474,000 | 196,000 | 3,838,000 | 287,000 |
Comprehensive income | 10,838,000 | 29,825,000 | 26,065,000 | 49,582,000 |
Comprehensive income attributable to noncontrolling interest | (250,000) | (701,000) | (604,000) | (1,164,000) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RPT | 10,588,000 | 29,124,000 | 25,461,000 | 48,418,000 |
Minimum rent | ||||
REVENUE | ||||
TOTAL REVENUE | 47,851,000 | 49,736,000 | 147,282,000 | 149,970,000 |
Percentage rent | ||||
REVENUE | ||||
TOTAL REVENUE | 120,000 | 106,000 | 545,000 | 570,000 |
Recovery income from tenants | ||||
REVENUE | ||||
TOTAL REVENUE | 15,161,000 | 14,923,000 | 45,995,000 | 46,655,000 |
Other property income | ||||
REVENUE | ||||
TOTAL REVENUE | 997,000 | 1,078,000 | 2,858,000 | 3,310,000 |
Management and other fee income | ||||
REVENUE | ||||
TOTAL REVENUE | $ 88,000 | $ 88,000 | $ 222,000 | $ 314,000 |
Condensed Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Cash Flows [Abstract] | ||
Cash paid for interest, capitalized interest | $ 706 | $ 193 |
Organization and Basis of Presentations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Basis of Presentations | Organization and Basis of Presentations Organization Ramco-Gershenson Properties Trust, together with its subsidiaries (the “Company” or "RPT"), owns and operates a national portfolio of dynamic open-air shopping destinations principally located in the top U.S. markets. The Company's locally-curated consumer experience reflect the lifestyles of its diverse neighborhoods and match the modern expectation of its retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange under the ticker symbol RPT. As of September 30, 2018, the Company's portfolio consisted of 57 shopping centers (including one shopping center owned through a joint venture) representing 13.8 million square feet. As of September 30, 2018, the Company’s aggregate portfolio was 94.2% leased. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and our majority owned subsidiary, the Operating Partnership, Ramco-Gershenson Properties, L.P. (the "OP") (97.7% owned by the Company at September 30, 2018 and December 31, 2017), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest. We have elected to be a REIT for federal income tax purposes. All intercompany balances and transactions have been eliminated in consolidation. The information furnished is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017. The preparation of our unaudited financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and reported amounts that are not readily apparent from other sources. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In February 2017, the FASB issued ASU 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" ("ASU 2017-05"). ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. ASU 2017-05 also defines the term "in substance nonfinancial asset". In addition, ASU 2017-05 eliminates the guidance specific to real estate sales in ASC 360-20. It became effective for annual periods beginning after December 15, 2017, therefore we adopted the standard on January 1, 2018. In doing so, the Company recorded an adjustment under the modified retrospective method of approximately $2.2 million to shareholders' equity associated with a transaction that occurred in the fourth quarter of 2017. The adjustment had no impact on earnings or cash flows. In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 clarifies guidance about what changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. It became effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows." This new guidance became effective January 1, 2018, with early adoption permitted, and requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The pronouncement requires a retrospective transition method of adoption. The adoption of this standard resulted in the reclassification of approximately $4.0 million of cash outflows from real estate acquisitions during the nine months ended September 30, 2018 that were held in escrow as restricted cash. The amount was reclassified as acquisition of real estate from a non cash investing activity. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balances sheets that reconciles to the total shown within the consolidated statements of cash flows.
Restricted cash generally consists of funds held in escrow by lenders to pay real estate taxes, insurance premiums and certain capital expenditures. In limited instances, restricted cash may include deposits on potential future acquisitions and/or proceeds related to dispositions of real estate. In August 2016, the FASB issued ASU 2016-15 "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which clarifies the treatment of several cash flow categories. In addition, ASU 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. This update became effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. The adoption of this standard did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 is a comprehensive revenue recognition standard that superseded nearly all prior GAAP revenue recognition guidance as well as prior GAAP guidance governing the sale of non-financial assets. The standard’s core principle is that a company should recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations. In doing so, companies need to exercise more judgment and make more estimates than under prior GAAP guidance. ASU 2014-09 became effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption was permitted in periods ending after December 15, 2016. The guidance permitted two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect initially applying the guidance recognized at the date of initial application (modified retrospective method). We adopted the standard and the related updates subsequently issued by the FASB using the modified retrospective method on January 1, 2018. ASU 2014-09 applies only to certain revenue included in Other Property Income and Management and Other Fee Income in our Consolidated Statement of Operations which totaled $3.1 million, or less than 2.0% of total revenue, for the nine months ended September 30, 2018. The adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-13, "Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement", which amends ASC 820, Fair Value Measurement. ASU 2018-13 modified the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. This standard is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which expands the scope of Topic 718, Compensation-Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of ASU 2018-07 is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB updated Accounting Standards Codification ("ASC") Topic 326 "Financial Instruments - Credit Losses" with ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). ASU 2016-13 enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better inform credit loss estimates. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within that fiscal year. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In February 2016, the FASB updated ASC Topic 842 "Leases" ("ASU 2016-02"). ASU 2016-02 requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not direct leasing costs. In addition, the following ASUs were subsequently issued related to ASC Topic 842, all of which will be effective with ASU 2016-02:
ASU 2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted using a modified retrospective approach. The Company continues to evaluate the effect the adoption of ASU 2016-02 will have on our consolidated financial statements and related disclosures. We preliminarily plan to elect the practical expedients allowable under ASU 2018-01 and ASU 2018-11, and believe the adoption of ASU 2016-02 will not have a material impact for operating leases where we are a lessor and we will continue to record revenues from rental properties for operating leases on a straight-line basis. In addition, for leases where the Company is a lessee, primarily the Company’s ground lease and administrative office leases, the Company believes it will record a lease liability and a right of use asset at fair value upon adoption related to these items. Additionally, only incremental direct leasing costs may be capitalized under this new guidance. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective. |
Real Estate |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Included in our net real estate assets are income producing properties that are recorded at cost less accumulated depreciation and amortization, construction in process and land available for development or sale. We review our investment in real estate, including any related intangible assets, for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of the property may not be recoverable. These changes in circumstances include, but are not limited to, changes in occupancy, rental rates, tenant sales, net operating income, geographic location, real estate values and expected holding period. For the three months ended September 30, 2018, we recorded no impairment provision. For the nine months ended September 30, 2018, we recorded an impairment provision totaling $0.2 million on a land parcel. The 2018 adjustment was triggered by higher costs related to this parcel. To estimate fair value, we use discounted cash flow models that include assumptions of the discount rates that market participants would use in pricing an asset or market pricing from potential or comparable transactions. For the three and nine months ended September 30, 2017, we recorded an impairment provision totaling $1.9 million and $8.4 million, respectively, on shopping centers classified as income producing. In accordance with ASC360-10, the Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. During the third quarter of 2018, events and circumstances indicated that shopping centers might be impaired. However, the Company’s estimates of undiscounted cash flows indicated that such carrying amounts were expected to be recovered. Nonetheless, it is reasonably possible that the estimates of undiscounted cash flows may change in the near term resulting in the need to write down these assets to fair value. Land available for development or sale includes real estate projects where vertical construction has yet to commence, but which have been identified by us and are available for future development when market conditions dictate the demand for a new shopping center. The viability of all projects under construction or development, including those owned by unconsolidated joint ventures, is regularly evaluated under applicable accounting requirements, including requirements relating to abandonment of assets or changes in use. Land available for development or sale was $31.8 million and $31.6 million at September 30, 2018 and December 31, 2017, respectively. Construction in progress represents existing development, redevelopment and tenant build-out projects. When projects are substantially complete and ready for their intended use, balances are transferred to land or building and improvements as appropriate. Construction in progress was $27.9 million and $26.6 million at September 30, 2018 and December 31, 2017, respectively. The increase in construction in progress from December 31, 2017 to September 30, 2018 was due primarily to the ongoing redevelopment and expansion projects across the portfolio. Pursuant to the criteria established under ASC Topic 360 we classify properties as held for sale when executed purchase and sales agreement contingencies have been satisfied thereby signifying that the sale is legally binding. As of September 30, 2018, and December 31, 2017, we had no properties and no land parcels classified as held for sale. |
Property Acquisitions and Dispositions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Acquisitions and Dispositions | Property Acquisitions and Dispositions Acquisitions The following table provides a summary of our acquisition activity for the nine months ended September 30, 2018:
The aggregate fair value of our 2018 acquisition through September 30, 2018, was allocated and is reflected in the following table.
Total revenue and net income for the 2018 acquisition included in our condensed consolidated statement of operations for the three and six months ended September 30, 2018 were as follows:
Unaudited Proforma Information If the 2018 acquisition had occurred on January 1, 2017, our consolidated revenues and net income for the three and nine months ended September 30, 2018 and 2017 would have been as follows:
Dispositions The following table provides a summary of our disposition activity for the nine months ended September 30, 2018.
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Equity Investments in Unconsolidated Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investments in Unconsolidated Joint Ventures | Equity Investments in Unconsolidated Joint Ventures We have three joint venture agreements whereby we own 7%, 20%, and 30%, respectively, of the equity in each joint venture. We and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. We cannot make significant decisions without our partner’s approval. Accordingly, we account for our interest in the joint ventures using the equity method of accounting. On April 27, 2018 we sold our 30% interest in a joint venture created in November 2017 for proceeds of $3.1 million to our unrelated joint venture partner. The proceeds received from the transaction represent the return of our initial investment of $3.0 million and our share of earnings from the joint venture's operations since inception of $0.1 million. We did not record a gain or loss on sale of our interest in the joint venture. The combined condensed financial information for our unconsolidated joint ventures is summarized as follows:
Acquisitions There was no acquisition activity in the nine months ended September 30, 2018 by any of our unconsolidated joint ventures. Dispositions The following table provides a summary of our unconsolidated joint venture property disposition activity during the nine months ended September 30, 2018.
The Company recorded an other gain on unconsolidated joint ventures for the three and nine months ended September 30, 2018 of $5.2 million which represents the excess of the net cash distributed to it from the Martin Square disposition and its proportionate share of the remaining equity in the unconsolidated joint venture. Joint Venture Management and Other Fee Income We are engaged by our joint ventures to provide asset management, property management, leasing and investing services for such ventures' respective properties. We receive fees for our services, including a property management fee calculated as a percentage of gross revenues received, and recognize these fees as the services are rendered. The following table provides information for our fees earned which are reported in our condensed consolidated statements of operations:
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Debt | Debt The following table summarizes our mortgages, notes payable and capital lease obligation as of September 30, 2018 and December 31, 2017:
Senior Unsecured Notes The following table summarizes the Company's senior unsecured notes:
Unsecured Term Loan Facilities and Revolving Credit Facility The following table summarizes the Company's unsecured term loan facilities and revolving credit facility:
As of September 30, 2018, we had $80.0 million outstanding under our revolving credit facility, an increase of $50.0 million from December 31, 2017, as a result of borrowings to fund the Company's redevelopment projects and other liquidity needs. After adjusting for outstanding letters of credit issued under our revolving credit facility, not reflected in the accompanying condensed consolidated balance sheets, totaling $0.2 million, we had $269.8 million of availability under our revolving credit facility. The interest rate as of September 30, 2018 was 3.39%. Mortgages The following table summarizes the Company's fixed rate mortgages:
The fixed rate mortgages are secured by properties that have an approximate net book value of $187.5 million as of September 30, 2018. It is our intent to repay the mortgages maturing in 2019 and beyond using cash, borrowings under our unsecured line of credit, net proceeds from the sale of real estate or other sources of financing which may include long-term unsecured notes. The mortgage loans encumbering our properties are generally nonrecourse, subject to certain exceptions for which we would be liable for any resulting losses incurred by the lender. These exceptions vary from loan to loan but generally include fraud or a material misrepresentation, misstatement or omission by the borrower, intentional or grossly negligent conduct by the borrower that harms the property or results in a loss to the lender, filing of a bankruptcy petition by the borrower, either directly or indirectly and certain environmental liabilities. In addition, upon the occurrence of certain events, such as fraud or filing of a bankruptcy petition by the borrower, we or our joint ventures would be liable for the entire outstanding balance of the loan, all interest accrued thereon and certain other costs, including penalties and expenses. We have entered into mortgage loans which are secured by multiple properties and contain cross-collateralization and cross-default provisions. Cross-collateralization provisions allow a lender to foreclose on multiple properties in the event that we default under the loan. Cross-default provisions allow a lender to foreclose on the related property in the event a default is declared under another loan. Junior Subordinated Notes Our junior subordinated notes have a variable rate of LIBOR plus 3.30%. The maturity date is January 2038. Debt Maturities The following table presents scheduled principal payments on mortgages and notes payable as of September 30, 2018:
(1) Scheduled maturities in 2021 include the $80.0 million balance on the unsecured revolving credit facility drawn as of September 30, 2018. The unsecured revolving credit facility has two six-month extensions available at the Company's option provided compliance with financial covenants is maintained. Our unsecured revolving credit facility, senior unsecured notes, and unsecured term loan facilities contain financial covenants relating to total leverage, fixed charge coverage ratio, unencumbered assets, tangible net worth and various other calculations. As of September 30, 2018, we were in compliance with these covenants. |
Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Derivative instruments (interest rate swaps) are recorded at fair value on a recurring basis. Additionally, we, from time to time, may be required to record other assets at fair value on a nonrecurring basis. As a basis for considering market participant assumptions in fair value measurements, GAAP establishes three fair value levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The assessed inputs used in determining any fair value measurement could result in incorrect valuations that could be material to our condensed consolidated financial statements. These levels are:
The following is a description of valuation methodologies used for our assets and liabilities recorded at fair value. Derivative Assets and Liabilities All of our derivative instruments are interest rate swaps for which quoted market prices are not readily available. For those derivatives, we measure fair value on a recurring basis using valuation models that use primarily market observable inputs, such as yield curves. We classify these instruments as Level 2. Refer to Note 7 Derivative Financial Instruments of the notes to the condensed consolidated financial statements for additional information on our derivative financial instruments. The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017.
The carrying values of cash and cash equivalents, restricted cash, receivables and accounts payable and accrued liabilities are reasonable estimates of their fair values because of the short maturity of these financial instruments. We estimated the fair value of our debt based on our incremental borrowing rates for similar types of borrowing arrangements with the same remaining maturity and on the discounted estimated future cash payments to be made for other debt. The discount rates used approximate current lending rates for loans or groups of loans with similar maturities and credit quality, assume the debt is outstanding through maturity and consider the debt’s collateral (if applicable). Since such amounts are estimates that are based on limited available market information for similar transactions (Level 3), there can be no assurance that the disclosed value of any financial instrument could be realized by immediate settlement of the instrument. Fixed rate debt (including variable rate debt swapped to fixed through derivatives) with carrying values of $939.0 million and $940.9 million as of September 30, 2018 and December 31, 2017, respectively, had fair values of approximately $921.6 million and $940.8 million, respectively. Variable rate debt’s fair value is estimated to be the carrying values of $108.1 million and $58.1 million as of September 30, 2018 and December 31, 2017, respectively. The following is a description of valuation methodologies used for our assets and liabilities recorded at fair value on a nonrecurring basis: Net Real Estate Our net investment in real estate, including any identifiable intangible assets, is subject to impairment testing on a nonrecurring basis. To estimate fair value, we use discounted cash flow models that include assumptions of the discount rates that market participants would use in pricing the asset or pricing from potential or comparable market transactions. To the extent impairment has occurred, we charge to expense the excess of the carrying value of the property over its estimated fair value. We classify impaired real estate assets as nonrecurring Level 3. During the nine months ended September 30, 2018, a land parcel with a fair value of approximately $0.6 million incurred impairment charges of $0.2 million. We did not have any material liabilities that were required to be measured at fair value on a nonrecurring basis during the period. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We utilize interest rate swap agreements for risk management purposes to reduce the impact of changes in interest rates on our variable rate debt. We may also enter into forward starting swaps to set the effective interest rate on planned variable rate financing. On the date we enter into an interest rate swap, the derivative is designated as a hedge against the variability of cash flows that are to be paid in connection with a recognized liability. Subsequent changes in the fair value of a derivative designated as a cash flow hedge that is determined to be effective are recorded in other comprehensive income (“OCI”) until earnings are affected by the variability of cash flows of the hedged transaction. The differential between fixed and variable rates to be paid or received is accrued, as interest rates change, and recognized currently as interest expense in the condensed consolidated statements of operations. We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis. Our cash flow hedges become ineffective, for example, if critical terms of the hedging instrument and the debt do not perfectly match such as notional amounts, settlement dates, reset dates and calculation period and LIBOR rate. At September 30, 2018, all of our hedges were effective. The following table summarizes the notional values and fair values of our derivative financial instruments as of September 30, 2018:
The effect of derivative financial instruments on our condensed consolidated statements of operations for the three months ended September 30, 2018 and 2017 is summarized as follows:
The effect of derivative financial instruments on our condensed consolidated statements of operations for the nine months ended September 30, 2018 and 2017 is summarized as follows:
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Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per share (“EPS”):
(1) The assumed conversion of the preferred shares is dilutive for the Three Months Ended September 30, 2017 and anti-dilutive for all other periods. We exclude certain securities from the computation of diluted earnings per share. The following table presents the outstanding securities that were excluded from the computation of diluted earnings per share and the number of common shares each was convertible into (in thousands):
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Share-based Compensation Plans |
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Sep. 30, 2018 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Share-based Compensation Plans | Share-based Compensation Plans As of September 30, 2018, we have two share-based compensation plans in effect: 1) the 2012 Omnibus Long-Term Incentive Plan (“2012 LTIP”) under which our compensation committee may grant, subject to any Company performance conditions as specified by the compensation committee, restricted shares, restricted share units, options and other awards to trustees, officers and other key employees; and 2) the Inducement Incentive Plan (“Inducement Plan”), which was approved by the Board of Trustees in April 2018 and under which our compensation committee may grant, subject to any Company performance conditions as specified by the compensation committee, restricted shares, restricted share units, options and other awards to individuals who were not previously employees or members of the Board as an inducement material to the individual’s entry into employment with the Company. The 2012 LTIP allows us to issue up to 2.0 million common shares of beneficial interest, of which 0.9 million remained available for issuance as of September 30, 2018. The Inducement Plan allows us to issue up to 6.0 million common shares of beneficial interest, of which 5.4 million remained available for issuance as of September 30, 2018. As of September 30, 2018, we had 133,920 unvested service-based share awards granted under the 2012 LTIP and 218,955 unvested service-based share awards granted under the Inducement Plan. These awards have various expiration dates through March 2023. During the nine months ended September 30, 2018, we granted the following awards:
The service-based restricted share awards to employees vest over three years or five years and the compensation expense is recognized on a graded vesting basis. The service-based restricted share awards to trustees vest over one year. We recognized expense related to service-based restricted share grants of $1.0 million and $0.8 million for the three months ended September 30, 2018 and September 30, 2017, respectively, and $3.9 million and $2.0 million for the nine months ended September 30, 2018 and September 30, 2017, respectively. Pursuant to ASC 718 – Stock Compensation, we determine the grant date fair value of TSR Grants that will be settled in cash, and any subsequent re-measurements, based upon a Monte Carlo simulation model. We will recognize the compensation expense ratably over the requisite service period. We are required to re-value the cash awards at the end of each quarter using the same methodology as was used at the initial grant date and adjust the compensation expense accordingly. If at the end of the three-year measurement period the performance criterion is not met, compensation expense related to the cash awards previously recognized would be reversed. Compensation expense (benefit) related to the cash awards was $0.3 million and $(0.1) million for the three months ended September 30, 2018 and September 30, 2017, respectively, and an expense of $0.7 million and $0.1 million for the nine months ended September 30, 2018 and September 30, 2017, respectively. The Company also determines the grant date fair value of the TSR Grants that will be settled in equity based upon a Monte Carlo simulation model and recognizes the compensation expense ratably over the requisite service period. These equity awards are not re-valued at the end of each quarter. The compensation cost will be recognized regardless of whether the performance criterion are met, provided the requisite service has been provided. Compensation expense related to the equity awards was $0.4 million and $0.1 million for the three months ended September 30, 2018 and September 30, 2017, respectively, and $0.7 million and $0.2 million for the nine months ended September 30, 2018 and September 30, 2017, respectively. We recognized total share-based compensation expense of $1.7 million and $0.8 million for the three months ended September 30, 2018 and September 30, 2017, respectively, and $5.3 million and $2.3 million for the nine months ended September 30, 2018 and September 30, 2017, respectively. As of September 30, 2018, we had $8.0 million of total unrecognized compensation expense related to unvested restricted shares and performance based equity and cash awards. This expense is expected to be recognized over a weighted-average period of 3.1 years. |
Taxes |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes Income Taxes We conduct our operations with the intent of meeting the requirements applicable to a REIT under sections 856 through 860 of the Internal Revenue Code. In order to maintain our qualification as a REIT, we are required to distribute annually at least 90% of our REIT taxable income, excluding net capital gain, to our shareholders. As long as we qualify as a REIT, we will generally not be liable for federal corporate income taxes. Certain of our operations, including property management and asset management, as well as ownership of certain land, are conducted through our taxable REIT subsidiaries (“TRSs”) which allows us to provide certain services and conduct certain activities that are not generally considered as qualifying REIT activities. Deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and the bases of such assets and liabilities as measured by tax laws. Deferred tax assets are reduced by a valuation allowance to the amount where realization is more likely than not assured after considering all available evidence, including expected taxable earnings and potential tax planning strategies. Our temporary differences primarily relate to deferred compensation, depreciation, land basis differences, and net operating loss carry forwards. As of September 30, 2018, we had a federal and state deferred tax asset of $7.3 million and a valuation allowance of $7.3 million. Our deferred tax assets are reduced by an offsetting valuation allowance where there is uncertainty regarding their realizability. We believe that it is more likely than not that the results of future operations will not generate sufficient taxable income to recognize the deferred tax assets. These future operations are primarily dependent upon the profitability of our TRSs, the timing and amounts of gains on land sales, and other factors affecting the results of operations of the TRSs. If in the future we are able to conclude it is more likely than not that we will realize a future benefit from a deferred tax asset, we will reduce the related valuation allowance by the appropriate amount. The first time this occurs, it will result in a net deferred tax asset on our balance sheet and an income tax benefit of equal magnitude in our statement of operations in the period we make the determination. We recorded income tax provisions of approximately $0.1 million and $0.1 million for the nine months ended September 30, 2018 and 2017, respectively. Sales Taxes We collect various taxes from tenants and remit these amounts, on a net basis, to the applicable taxing authorities. |
Commitments and Contingencies |
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Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Construction Costs In connection with the development and expansion of various shopping centers as of September 30, 2018, we had entered into agreements for construction costs of approximately $12.4 million. Litigation From time to time, we are involved in certain litigation arising in the ordinary course of business; however, we do not believe that any of this litigation will have a material effect on our consolidated financial statements. Operating Leases We lease office space for our two corporate offices under operating leases that expire in August 2019 and January 2024. We also have a ground lease at Centennial Shops located in Edina, Minnesota. The ground lease includes rent escalations throughout the lease period and expires in April 2105. We recognized rent expense related to these operating leases of $0.5 million and $0.4 million for three months ended September 30, 2018 and 2017, respectively, and $1.4 million and $1.3 million for the nine months ended September 30, 2018 and 2017, respectively. Capital Lease We have a ground lease at Buttermilk Towne Center which we have recorded as a capital lease that expires in December 2032. Interest expense for this capital lease was negligible for the nine months ended September 30, 2018 and 2017, respectively. |
Reorganization |
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Sep. 30, 2018 | |
Reorganizations [Abstract] | |
Reorganization | Reorganization In connection with the reorganization of the executive management team, we recorded one-time employee termination benefits of $1.3 million and $7.6 million for the three and nine months ended September 30, 2018, respectively. In connection with the reduction-in-force resulting from the reorganization of the Company's operating structure, we recorded one-time employee termination benefits of $0.8 million for the three and nine months ended September 30, 2018. Such charges are reflected in the condensed consolidated statements of operations in general and administrative expense. |
Subsequent Events |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the date that the condensed consolidated financial statements were issued. |
Organization and Basis of Presentations (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization | Organization Ramco-Gershenson Properties Trust, together with its subsidiaries (the “Company” or "RPT"), owns and operates a national portfolio of dynamic open-air shopping destinations principally located in the top U.S. markets. The Company's locally-curated consumer experience reflect the lifestyles of its diverse neighborhoods and match the modern expectation of its retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange under the ticker symbol RPT. As of September 30, 2018, the Company's portfolio consisted of 57 shopping centers (including one shopping center owned through a joint venture) representing 13.8 million square feet. As of September 30, 2018, the Company’s aggregate portfolio was 94.2% leased. |
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Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and our majority owned subsidiary, the Operating Partnership, Ramco-Gershenson Properties, L.P. (the "OP") (97.7% owned by the Company at September 30, 2018 and December 31, 2017), and all wholly-owned subsidiaries, including entities in which we have a controlling financial interest. We have elected to be a REIT for federal income tax purposes. All intercompany balances and transactions have been eliminated in consolidation. The information furnished is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017. The preparation of our unaudited financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and reported amounts that are not readily apparent from other sources. Actual results could differ from those estimates. |
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Restricted Cash | Restricted cash generally consists of funds held in escrow by lenders to pay real estate taxes, insurance premiums and certain capital expenditures. In limited instances, restricted cash may include deposits on potential future acquisitions and/or proceeds related to dispositions of real estate. |
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Recently Adopted and Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2017, the FASB issued ASU 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" ("ASU 2017-05"). ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. ASU 2017-05 also defines the term "in substance nonfinancial asset". In addition, ASU 2017-05 eliminates the guidance specific to real estate sales in ASC 360-20. It became effective for annual periods beginning after December 15, 2017, therefore we adopted the standard on January 1, 2018. In doing so, the Company recorded an adjustment under the modified retrospective method of approximately $2.2 million to shareholders' equity associated with a transaction that occurred in the fourth quarter of 2017. The adjustment had no impact on earnings or cash flows. In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 clarifies guidance about what changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. It became effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows." This new guidance became effective January 1, 2018, with early adoption permitted, and requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The pronouncement requires a retrospective transition method of adoption. The adoption of this standard resulted in the reclassification of approximately $4.0 million of cash outflows from real estate acquisitions during the nine months ended September 30, 2018 that were held in escrow as restricted cash. The amount was reclassified as acquisition of real estate from a non cash investing activity. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balances sheets that reconciles to the total shown within the consolidated statements of cash flows.
Restricted cash generally consists of funds held in escrow by lenders to pay real estate taxes, insurance premiums and certain capital expenditures. In limited instances, restricted cash may include deposits on potential future acquisitions and/or proceeds related to dispositions of real estate. In August 2016, the FASB issued ASU 2016-15 "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which clarifies the treatment of several cash flow categories. In addition, ASU 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. This update became effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. The adoption of this standard did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 is a comprehensive revenue recognition standard that superseded nearly all prior GAAP revenue recognition guidance as well as prior GAAP guidance governing the sale of non-financial assets. The standard’s core principle is that a company should recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations. In doing so, companies need to exercise more judgment and make more estimates than under prior GAAP guidance. ASU 2014-09 became effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption was permitted in periods ending after December 15, 2016. The guidance permitted two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect initially applying the guidance recognized at the date of initial application (modified retrospective method). We adopted the standard and the related updates subsequently issued by the FASB using the modified retrospective method on January 1, 2018. ASU 2014-09 applies only to certain revenue included in Other Property Income and Management and Other Fee Income in our Consolidated Statement of Operations which totaled $3.1 million, or less than 2.0% of total revenue, for the nine months ended September 30, 2018. The adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-13, "Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement", which amends ASC 820, Fair Value Measurement. ASU 2018-13 modified the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. This standard is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which expands the scope of Topic 718, Compensation-Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of ASU 2018-07 is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB updated Accounting Standards Codification ("ASC") Topic 326 "Financial Instruments - Credit Losses" with ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). ASU 2016-13 enhances the methodology of measuring expected credit losses to include the use of forward-looking information to better inform credit loss estimates. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within that fiscal year. We are currently evaluating the guidance and have not determined the impact this standard may have on our consolidated financial statements. In February 2016, the FASB updated ASC Topic 842 "Leases" ("ASU 2016-02"). ASU 2016-02 requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not direct leasing costs. In addition, the following ASUs were subsequently issued related to ASC Topic 842, all of which will be effective with ASU 2016-02:
ASU 2016-02 is effective for periods beginning after December 15, 2018, with early adoption permitted using a modified retrospective approach. The Company continues to evaluate the effect the adoption of ASU 2016-02 will have on our consolidated financial statements and related disclosures. We preliminarily plan to elect the practical expedients allowable under ASU 2018-01 and ASU 2018-11, and believe the adoption of ASU 2016-02 will not have a material impact for operating leases where we are a lessor and we will continue to record revenues from rental properties for operating leases on a straight-line basis. In addition, for leases where the Company is a lessee, primarily the Company’s ground lease and administrative office leases, the Company believes it will record a lease liability and a right of use asset at fair value upon adoption related to these items. Additionally, only incremental direct leasing costs may be capitalized under this new guidance. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective. |
Organization and Basis of Presentations (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balances sheets that reconciles to the total shown within the consolidated statements of cash flows.
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Property Acquisitions and Dispositions (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disposition activity | The following table provides a summary of our disposition activity for the nine months ended September 30, 2018.
The following table provides a summary of our acquisition activity for the nine months ended September 30, 2018:
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Summary of Total Aggregate Fair Value of Acquisitions Allocated | The aggregate fair value of our 2018 acquisition through September 30, 2018, was allocated and is reflected in the following table.
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Pro Forma Information | Total revenue and net income for the 2018 acquisition included in our condensed consolidated statement of operations for the three and six months ended September 30, 2018 were as follows:
Unaudited Proforma Information If the 2018 acquisition had occurred on January 1, 2017, our consolidated revenues and net income for the three and nine months ended September 30, 2018 and 2017 would have been as follows:
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Equity Investments in Unconsolidated Joint Ventures (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Combined Financial Information for Unconsolidated Joint Ventures, Balance Sheets | The combined condensed financial information for our unconsolidated joint ventures is summarized as follows:
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Summary of Combined Financial Information for Unconsolidated Entities, Statements of Operations |
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Schedule of Joint Venture Property Disposition | The following table provides a summary of our unconsolidated joint venture property disposition activity during the nine months ended September 30, 2018.
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Information of Fees Earned | The following table provides information for our fees earned which are reported in our condensed consolidated statements of operations:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The following table summarizes the Company's senior unsecured notes:
The following table summarizes our mortgages, notes payable and capital lease obligation as of September 30, 2018 and December 31, 2017:
The following table summarizes the Company's fixed rate mortgages:
The following table summarizes the Company's unsecured term loan facilities and revolving credit facility:
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Scheduled Principal Payments on Mortgages and Notes Payable | The following table presents scheduled principal payments on mortgages and notes payable as of September 30, 2018:
(1) Scheduled maturities in 2021 include the $80.0 million balance on the unsecured revolving credit facility drawn as of September 30, 2018. The unsecured revolving credit facility has two six-month extensions available at the Company's option provided compliance with financial covenants is maintained. |
Fair Value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017.
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Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Notional Values and Fair Values of Derivative Financial Instruments | The following table summarizes the notional values and fair values of our derivative financial instruments as of September 30, 2018:
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Summary of Effect of Derivative Financial Instruments on Condensed Consolidated Statements of Operations | The effect of derivative financial instruments on our condensed consolidated statements of operations for the three months ended September 30, 2018 and 2017 is summarized as follows:
The effect of derivative financial instruments on our condensed consolidated statements of operations for the nine months ended September 30, 2018 and 2017 is summarized as follows:
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Earnings Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (“EPS”):
(1) The assumed conversion of the preferred shares is dilutive for the Three Months Ended September 30, 2017 and anti-dilutive for all other periods. |
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the outstanding securities that were excluded from the computation of diluted earnings per share and the number of common shares each was convertible into (in thousands):
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Organization and Basis of Presentations - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 16,719 | $ 8,081 | $ 4,781 | |
Restricted cash and escrows | 3,017 | 4,810 | 5,256 | |
Cash, cash equivalents, and restricted cash | $ 19,736 | $ 12,891 | $ 10,037 | $ 14,726 |
Real Estate - Additional Information (Details) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
property
land
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
property
land
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
property
land
|
|
Real Estate [Abstract] | |||||
Provision for impairment | $ 0 | $ 1,885,000 | $ 216,000 | $ 8,423,000 | |
Land held for development or sale | 31,800,000 | 31,800,000 | $ 31,600,000 | ||
Constructions in progress | $ 27,900,000 | $ 27,900,000 | $ 26,600,000 | ||
Number of properties, held-for-sale | property | 0 | 0 | 0 | ||
Number of land parcel, held-for-sale | land | 0 | 0 | 0 |
Property Acquisitions and Dispositions - Property Acquisitions (Details) ft² in Thousands, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
a
ft²
| |
Business Acquisition [Line Items] | |
GLA (in sq ft) | a | 0 |
Acreage (in acres) | a | 9.2 |
Income Producing Property Acquisitions | |
Business Acquisition [Line Items] | |
GLA (in sq ft) | ft² | 60 |
Acreage (in acres) | a | 0 |
Purchase Price | $ 6,365 |
Assumed Debt | $ 0 |
Income Producing Property and Land and Outparcel Acquisition | |
Business Acquisition [Line Items] | |
GLA (in sq ft) | ft² | 60 |
Acreage (in acres) | a | 0 |
Purchase Price | $ 6,365 |
Assumed Debt | $ 0 |
Leasehold Interest (West Oaks) | Income Producing Property Acquisitions | |
Business Acquisition [Line Items] | |
Location | Novi, MI |
GLA (in sq ft) | ft² | 60 |
Date Acquired | Jan. 05, 2018 |
Purchase Price | $ 6,365 |
Assumed Debt | $ 0 |
Property Acquisitions and Dispositions - Total Aggregate Fair Value of Acquisitions Allocated (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Buildings and improvements | $ 6,427 |
Lease origination costs | 633 |
Other liabilities | (353) |
Below market leases | (579) |
Total purchase price allocated | 6,365 |
Above Market Leases | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Above market leases | $ 237 |
Property Acquisitions and Dispositions - Revenue and Net Income for Acquisitions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
|
Business Combinations [Abstract] | ||
Total revenue from 2018 acquisition | $ 196 | $ 584 |
Net income from 2018 acquisition | $ 128 | $ 372 |
Property Acquisitions and Dispositions - Unaudited Pro Forma Information (Details) - Income Producing Property Acquisitions - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Business Acquisition [Line Items] | ||||
Consolidated revenue | $ 64,217 | $ 66,102 | $ 196,910 | $ 201,321 |
Consolidated net income available to common shareholders | $ 8,450 | $ 27,358 | $ 16,691 | $ 43,401 |
Property Acquisitions and Dispositions - Dispositions (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
a
| |
Business Acquisition [Line Items] | |
GLA (in sq ft) | a | 0 |
Acreage (in acres) | a | 9.2 |
Sales Price | $ 2,100 |
Gain on Sale | $ 181 |
Income Producing Property Dispositions | |
Business Acquisition [Line Items] | |
GLA (in sq ft) | a | 0 |
Acreage (in acres) | a | 9.2 |
Sales Price | $ 2,100 |
Gain on Sale | $ 181 |
Income Producing Property Dispositions | Theatre Parcel - Hartland Town Square | |
Business Acquisition [Line Items] | |
Location | Hartland, MI |
Acreage (in acres) | a | 7.5 |
Date Sold | Apr. 02, 2018 |
Sales Price | $ 1,450 |
Gain on Sale | $ 181 |
Income Producing Property Dispositions | Peachtree Hills - Outparcel | |
Business Acquisition [Line Items] | |
Location | Duluth, GA |
Acreage (in acres) | a | 1.7 |
Date Sold | May 25, 2018 |
Sales Price | $ 650 |
Gain on Sale | $ 0 |
Equity Investments in Unconsolidated Joint Ventures - Summary of Combined Financial Information of Unconsolidated Entities, Balance Sheets (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
ASSETS | ||
Investment in real estate, net | $ 22,243 | $ 93,801 |
Other assets | 1,661 | 4,099 |
Total Assets | 23,904 | 97,900 |
LIABILITIES AND OWNERS' EQUITY | ||
Mortgage notes payable | 0 | 42,330 |
Other liabilities | 1 | 220 |
Owners' equity | 23,903 | 55,350 |
Total Liabilities and Owners' Equity | 23,904 | 97,900 |
RPT's equity investments in unconsolidated joint ventures | $ 1,556 | $ 3,493 |
Equity Investments in Unconsolidated Joint Ventures - Summary of Combined Financial Information of Unconsolidated Entities, Statements of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Equity Method Investments and Joint Ventures [Abstract] | ||||
Total revenue | $ 782 | $ 1,192 | $ 3,204 | $ 3,485 |
Total expenses | 654 | 745 | 2,269 | 2,250 |
Income before other income and expense | 128 | 447 | 935 | 1,235 |
Gain on sale of real estate | 1,024 | 0 | 1,024 | 0 |
Net income | 1,152 | 447 | 1,959 | 1,235 |
RPT's share of earnings from unconsolidated joint ventures | $ 297 | $ 81 | $ 570 | $ 223 |
Equity Investments in Unconsolidated Joint Ventures Equity Investments in Unconsolidated Joint Ventures - Joint Venture Property Disposition Activity (Details) ft² in Thousands, a in Thousands, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
a
ft²
| |
Schedule of Equity Method Investments [Line Items] | |
GLA (in sq ft) | a | 0 |
Ownership interest | 94.20% |
Sale of real estate | $ 6,600 |
Gains (losses) on sale of investment real estate | $ 307 |
Unconsolidated Joint Ventures | |
Schedule of Equity Method Investments [Line Items] | |
GLA (in sq ft) | ft² | 330 |
Proceeds from sale of equity method investments | $ 22,000 |
Realized gain (loss) on disposal | $ 1,024 |
Unconsolidated Joint Ventures | Martin Square | |
Schedule of Equity Method Investments [Line Items] | |
GLA (in sq ft) | ft² | 330 |
Ownership interest | 30.00% |
Proceeds from sale of equity method investments | $ 22,000 |
Realized gain (loss) on disposal | $ 1,024 |
Equity Investments in Unconsolidated Joint Ventures - Information of Fees Earned (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | $ 64,217 | $ 65,931 | $ 196,902 | $ 200,819 |
Unconsolidated Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | 88 | 88 | 222 | 314 |
Unconsolidated Joint Ventures | Management fees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | 33 | 69 | 127 | 206 |
Unconsolidated Joint Ventures | Leasing fees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | 0 | 19 | 40 | 108 |
Unconsolidated Joint Ventures | Disposition fees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenue | $ 55 | $ 0 | $ 55 | $ 0 |
Debt - Summary of Mortgages, Notes Payable and Capital Lease Obligation (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Disclosure [Abstract] | ||
Senior unsecured notes | $ 610,000 | $ 610,000 |
Unsecured term loan facilities | 210,000 | 210,000 |
Fixed rate mortgages | 119,042 | 120,944 |
Unsecured revolving credit facility | 80,000 | 30,000 |
Junior subordinated notes | 28,125 | 28,125 |
Subtotal debt | 1,047,167 | 999,069 |
Unamortized premium | 3,195 | 3,967 |
Unamortized deferred financing costs | (3,249) | (3,821) |
Total debt | 1,047,113 | 999,215 |
Capital lease obligation | $ 1,022 | $ 1,022 |
Debt - Mortgages (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Unsecured notes | $ 1,047,167 | $ 999,069 |
Unamortized premium | 3,195 | 3,967 |
Unamortized deferred financing costs | (3,249) | (3,821) |
Total debt | 1,047,113 | 999,215 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 119,042 | $ 120,944 |
Weighted average interest rate | 5.46% | 5.47% |
Unamortized premium | $ 3,195 | $ 3,967 |
Unamortized deferred financing costs | (99) | (149) |
Total debt | 122,138 | 124,762 |
Mortgages | Crossroads Centre Home Depot | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 3,275 | $ 3,352 |
Stated interest rate | 7.38% | 7.38% |
Mortgages | West Oaks II and Spring Meadows Place | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 26,012 | $ 26,611 |
Stated interest rate | 6.50% | 6.50% |
Mortgages | Bridgewater Falls Shopping Center | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 54,780 | $ 55,545 |
Stated interest rate | 5.70% | 5.70% |
Mortgages | The Shops on Lane Avenue | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 28,650 | $ 28,650 |
Stated interest rate | 3.76% | 3.76% |
Mortgages | Nagawaukee II | ||
Debt Instrument [Line Items] | ||
Unsecured notes | $ 6,325 | $ 6,786 |
Stated interest rate | 5.80% | 5.80% |
Debt - Scheduled Principal Payments on Mortgages and Notes Payable (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018
USD ($)
extension_option
|
Dec. 31, 2017
USD ($)
|
|
Debt Instrument [Line Items] | ||
2018 | $ 659 | |
2019 | 5,860 | |
2020 | 102,269 | |
2021 | 194,508 | |
2022 | 77,397 | |
Thereafter | 666,474 | |
Subtotal debt | 1,047,167 | $ 999,069 |
Unamortized premium | 3,195 | 3,967 |
Unamortized deferred financing costs | (3,249) | (3,821) |
Total debt | 1,047,113 | 999,215 |
Revolving credit facility, outstanding balance | $ 80,000 | $ 30,000 |
Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Number of extension options | extension_option | 2 | |
Extension option, period (in months) | 6 months | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facility, outstanding balance | $ 80,000 |
Debt - Additional Information (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Debt Instrument [Line Items] | |||
Revolving credit facility, outstanding balance | $ 80,000 | $ 30,000 | |
Increase of revolving credit facility | 65,000 | $ 224,000 | |
Fixed Rate Mortgage Debt | |||
Debt Instrument [Line Items] | |||
Net book value | 187,500 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, outstanding balance | 80,000 | ||
Increase of revolving credit facility | 50,000 | ||
Letters of credit outstanding, amount | (200) | ||
Line of credit facility, remaining borrowing capacity | $ 269,800 | ||
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.30% |
Fair Value - Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative assets - interest rate swaps | $ 6,763 | $ 3,133 |
Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative liabilities - interest rate swaps | 0 | (208) |
Level 2 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative assets - interest rate swaps | 6,763 | 3,133 |
Level 2 | Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Derivative liabilities - interest rate swaps | $ 0 | $ (208) |
Fair Value - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long term debt, carrying amount | $ 1,047,113,000 | $ 1,047,113,000 | $ 999,215,000 | ||
Fair value, net | 1,789,263,000 | 1,789,263,000 | 1,779,147,000 | ||
Asset impairment charges | 0 | $ 1,885,000 | 216,000 | $ 8,423,000 | |
Fixed Rate Mortgages | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long term debt, carrying amount | 939,000,000 | 939,000,000 | 940,900,000 | ||
Level 2 | Fixed Rate Mortgages | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long term debt, fair value | 921,600,000 | 921,600,000 | 940,800,000 | ||
Level 2 | Floating Rate Debt | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long term debt, fair value | 108,100,000 | 108,100,000 | $ 58,100,000 | ||
Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value, net | $ 600,000 | $ 600,000 |
Derivative Financial Instruments - Summary of Notional Values and Fair Values of Derivative Financial Instruments (Details) - Cash Flow Hedging - Designated as Hedging Instrument |
Sep. 30, 2018
USD ($)
|
---|---|
Derivative [Line Items] | |
Derivative asset, notional amount | $ 270,000,000 |
Derivative assets, at fair value | 6,763,000 |
Unsecured term loan facility with: 1.850 % Swap Rate, Expiration Date 10/2018 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 25,000,000 |
Fixed rate (as a percent) | 1.85% |
Derivative assets, at fair value | $ 0 |
Unsecured term loan facility with: 1.840 % Swap Rate, Expiration Date 10/2018 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 5,000,000 |
Fixed rate (as a percent) | 1.84% |
Derivative assets, at fair value | $ 0 |
Unsecured term loan facility with: 2.048 % Swap Rate, Expiration Date 10/2018 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 30,000,000 |
Fixed rate (as a percent) | 2.048% |
Derivative assets, at fair value | $ 0 |
Unsecured term loan facility with: 2.150 % Swap Rate, Expiration Date 05/2020 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 15,000,000 |
Fixed rate (as a percent) | 2.15% |
Derivative assets, at fair value | $ 147,000 |
Unsecured term loan facility with: 2.150 % Swap Rate, Expiration Date 05/2020 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 10,000,000 |
Fixed rate (as a percent) | 2.15% |
Derivative assets, at fair value | $ 98,000 |
Unsecured term loan facility with: 1.460 % Swap Rate, Expiration Date 05/2020 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 50,000,000 |
Fixed rate (as a percent) | 1.46% |
Derivative assets, at fair value | $ 1,044,000 |
Unsecured term loan facility with: 1.498 % Swap Rate, Expiration Date 05/2021 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 20,000,000 |
Fixed rate (as a percent) | 1.498% |
Derivative assets, at fair value | $ 702,000 |
Unsecured term loan facility with: 1.490 % Swap Rate, Expiration Date 05/2021 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 15,000,000 |
Fixed rate (as a percent) | 1.49% |
Derivative assets, at fair value | $ 531,000 |
Unsecured term loan facility with: 1.480 % Swap Rate, Expiration Date 05/2021 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 40,000,000 |
Fixed rate (as a percent) | 1.48% |
Derivative assets, at fair value | $ 1,425,000 |
Interest Rate Swap | |
Derivative [Line Items] | |
Derivative asset, notional amount | 210,000,000 |
Derivative assets, at fair value | 3,947,000 |
Unsecured term loan facility with: 1.770 % Swap Rate, Expiration Date 03/2023 | |
Derivative [Line Items] | |
Derivative asset, notional amount | $ 60,000,000 |
Fixed rate (as a percent) | 1.77% |
Derivative assets, at fair value | $ 2,816,000 |
Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 260 | $ 316 | $ 3,613 | $ 1,339 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | 214 | (120) | 225 | (1,052) |
Derivative Assets | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 260 | (44) | 3,367 | (98) |
Derivative Liabilities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 360 | 246 | 1,437 |
Interest Expense | Derivative Assets | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | 214 | 62 | 264 | (319) |
Interest Expense | Derivative Liabilities | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ (182) | $ (39) | $ (733) |
Earnings Per Common Share Earnings Per Common Share - Computation of Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 10,364 | $ 29,629 | $ 22,227 | $ 49,295 |
Net income attributable to noncontrolling interest | (239) | (696) | (514) | (1,158) |
Allocation of income to restricted share awards | (83) | (135) | (319) | (310) |
Income attributable to RPT | 10,042 | 28,798 | 21,394 | 47,827 |
Preferred share dividends | (1,676) | (1,675) | (5,026) | (5,026) |
Net income available to common shareholders - Basic | 8,366 | 27,123 | 16,368 | 42,801 |
Add back preferred shares for dilution | 0 | 1,675 | 0 | 0 |
Net income available to common shareholders - Diluted | $ 8,366 | $ 28,798 | $ 16,368 | $ 42,801 |
Weighted average shares outstanding, Basic (in shares) | 79,712 | 79,381 | 79,547 | 79,337 |
Restricted stock awards using the treasury method (in shares) | 738 | 165 | 392 | 177 |
Dilutive effect of securities (in shares) | 0 | 6,713 | 0 | 0 |
Weighted average shares outstanding, Diluted (in shares) | 80,450 | 86,259 | 79,939 | 79,514 |
Income per common share, Basic (in usd per share) | $ 0.10 | $ 0.34 | $ 0.21 | $ 0.54 |
Income per common share, Diluted (in usd per share) | $ 0.10 | $ 0.33 | $ 0.20 | $ 0.54 |
Earnings Per Common Share Earnings Per Common Share - Antidilutive (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 3,758 | 2,015 | 3,758 | 3,864 |
Converted (in shares) | 8,739 | 1,917 | 8,739 | 8,630 |
Operating Partnership Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 1,909 | 1,917 | 1,909 | 1,917 |
Converted (in shares) | 1,909 | 1,917 | 1,909 | 1,917 |
Series D Preferred Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 1,849 | 0 | 1,849 | 1,849 |
Converted (in shares) | 6,830 | 0 | 6,830 | 6,713 |
Performance Share Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Issued (in shares) | 0 | 98 | 0 | 98 |
Converted (in shares) | 0 | 0 | 0 | 0 |
Share-based Compensation Plans Share-based Compensation Plans - Additional Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
shares
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
plan
shares
|
Sep. 30, 2017
USD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans in effect | plan | 2 | |||
Performance-based liability awards, measurement period (in years) | 3 years | |||
Share-based compensation expenses | $ | $ 1.7 | $ 0.8 | $ 5.3 | $ 2.3 |
Compensation expense (benefit) related to cash awards | $ | 0.3 | (0.1) | 0.7 | 0.1 |
Total unrecognized compensation expense | $ | $ 8.0 | $ 8.0 | ||
Total unrecognized compensation expense, weighted average period of recognition | 3 years 24 days | |||
Long-Term Incentive Plan ("LTIP") | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 2,000,000 | 2,000,000 | ||
Number of shares available for issuance | 900,000 | 900,000 | ||
Number of shares terminated | 133,920 | |||
Inducement Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 6,000,000 | 6,000,000 | ||
Number of shares available for issuance | 5,400,000 | 5,400,000 | ||
Number of shares terminated | 218,955 | |||
Service-based restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service based restricted stock, shares granted | 489,306 | |||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | $ | $ 1.0 | 0.8 | $ 3.9 | 2.0 |
Equity Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | $ | $ 0.4 | $ 0.1 | $ 0.7 | $ 0.2 |
Trustee | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service based restricted stock, vesting period (in years) | 1 year | |||
Minimum | Employee | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service based restricted stock, vesting period (in years) | 3 years | |||
Maximum | Employee | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service based restricted stock, vesting period (in years) | 5 years |
Taxes - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Tax Credit Carryforward [Line Items] | ||||
Annual distribution of REIT taxable income (as a percent) | 90.00% | 90.00% | ||
Income tax provision (benefit) | $ 96 | $ 65 | $ 147 | $ 119 |
Federal and State Income Taxes | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal and state deferred tax asset | 7,300 | 7,300 | ||
Federal and state deferred tax asset, valuation allowance | $ 7,300 | $ 7,300 |
Commitments and Contingencies - Additional Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
office
|
Sep. 30, 2017
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Construction costs related to development and expansion | $ 12.4 | |||
Number of offices | office | 2 | |||
Operating leases, rent expense | $ 0.5 | $ 0.4 | $ 1.4 | $ 1.3 |
Reorganization Reorganization (Details) - One-time Termination Benefits - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
|
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | $ 0.8 | $ 0.8 |
Executive Officer | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | $ 1.3 | $ 7.6 |
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