Form 8-K GLIMCHER REALTY TRUST For: Nov 03
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 3, 2014 (November 3, 2014)
Glimcher Realty Trust |
(Exact name of Registrant as specified in its Charter) |
Maryland | 001-12482 | 31-1390518 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) | ||
180 East Broad Street, Columbus, Ohio | 43215 | |||
(Address of Principal Executive Offices) | (Zip Code) | |||
Registrant's telephone number, including area code (614) 621-9000
N/A |
(Former name or former address, if changed since last Report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2014, Glimcher Realty Trust (the Company or Registrant ) issued a press release regarding its results of operations for the three and nine months ended September 30, 2014. A copy of the press release is furnished with this report as Exhibit 99.1. A copy of the Company's supplemental information for the three and nine months ended September 30, 2014 which is referenced in the press release and available on the Company's website, is furnished with this report as Exhibit 99.2. The information in this Form 8-K and the Exhibits attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.
The attached financial exhibits contain certain non-Generally Accepted Accounting Principles (GAAP) financial measures and other terms. The Companys definition and calculation of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. The non-GAAP financial measures referred to above should not be considered as alternatives to net income or other GAAP measures as indicators of the Companys performance. Funds From Operations or FFO is used by industry analysts and investors as a supplemental operating performance measure of an equity real estate investment trust ( REIT ). The Company uses FFO in addition to net income to report operating results. The National Association of Real Estate Investment Trusts ( NAREIT ) defines FFO as net income (loss) available to common shareholders (computed in accordance with GAAP), excluding gains or losses from sales of depreciable property, impairment adjustments associated with depreciable real estate, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.� The Company may also discuss FFO as adjusted. Reconciliations of each non-GAAP financial measure to the corresponding GAAP measure are provided in the attached press release.
Net operating income or NOI is used by industry analysts, investors and Company management to measure operating performance of the Companys properties. NOI represents total property revenues less property operating and maintenance expenses. Accordingly, NOI excludes certain expenses included in the determination of net income such as corporate general and administrative expense and other indirect operating expenses, interest expense, impairment charges and depreciation and amortization expense. These items are excluded from NOI in order to provide results that are more closely related to a propertys results of operations. In addition, the Companys computation of same mall NOI excludes straight-line adjustments of minimum rents, amortization of above-below market intangibles, termination income, and income from outparcel sales. The Company also adjusts for other miscellaneous items in order to enhance the comparability of results from one period to another. Certain items, such as interest expense, while included in FFO and net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. As a result, management uses only those income and expense items that are incurred at the property level to evaluate a propertys performance. Real estate asset related depreciation and amortization, as well as impairment charges are excluded from NOI for the same reasons that they are excluded from FFO pursuant to NAREITs definition.
Item 9.01 Financial Statements and Exhibits.
(a) | Financial statements of businesses acquired. |
Not applicable.
(b) | Pro forma financial information. |
Not applicable.
(c) | Shell company transactions. |
Not applicable.
(d) | Exhibits |
99.1 Press Release of Glimcher Realty Trust, dated November 3, 2014.
99.2 Supplemental Information for the three and nine months ended September 30, 2014.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
����
Glimcher Realty Trust | ||
(Registrant) | ||
�Date: November 3, 2014 | By: | /s/�Mark E. Yale |
� | � | Mark E. Yale Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) |
Exhibit 99.1
 |  | |
NEWS RELEASE Glimcher Realty Trust 180 East Broad Street Columbus, Ohio 43215 www.glimcher.com ������������������������������� | ||
INVESTORS:� Lisa A. Indest CAO and SVP, Finance 614.887.5844 | MEDIA: Karen Bailey Senior Director, Communications and Marketing� 614.887.5847 | |
FOR IMMEDIATE RELEASE
Monday, November 3, 2014
GLIMCHER REPORTS THIRD QUARTER 2014 RESULTS
" | Positive growth in comparable mall net operating income of 5% in the third quarter of 2014 |
"19% re-leasing spreads for the mall store leases signed during the third quarter of 2014
"Mall store sales increased to $472 per square foot at September 30, 2014, up 1.5% from previous year
COLUMBUS, OH - November 3, 2014 - Glimcher Realty Trust (NYSE: GRT) today announced financial results for the third quarter ended September 30, 2014. A description and reconciliation of non-GAAP financial measures to GAAP financial measures are contained in a later section of this press release. References to per share amounts are based on diluted common shares.
During the third quarter, we continued to deliver solid operating metrics from our core mall portfolio, including net operating income growth of 5%, 96% total occupancy, and 19% re-leasing spreads, said Michael�P.�Glimcher, Chairman of the Board and CEO. � We remain focused on our performance while also continuing to move forward with the strategic merger with Washington Prime, which we expect to close in the first quarter.
Net income to common shareholders during the third quarter of 2014 was $8.2 million, or $0.06 per share, as compared to a net loss of $5.0 million, or $0.03 per share, in the third quarter of 2013. Funds From Operations ( FFO ) during the third quarter of 2014 was $38.3 million, or $0.26 per share, compared to $24.7�million, or $0.17 per share, in the third quarter of 2013. Adjusted FFO for the third quarter of 2014 was $27.6 million, or $0.19 per share. Adjusted FFO for the third quarter of 2014 excludes the $16.3 million gain associated with the Companys loan extinguishment on Eastland Mall and $5.6 million of expenses related to the pending acquisition of the Company by Washington Prime Group Inc. ( WPG ).
Third Quarter Earnings Highlights
" | Total revenues were $98.3 million in the third quarter of 2014, compared to total revenues of $93.1 million in the third quarter of 2013. Primary drivers of the $5.2 million increase were comparable properties revenue growth of $3.2 million and $2.4 million of new revenue from acquired properties. The acquired properties were Arbor Hills in Ann Arbor, Michigan acquired in December 2013 and the retail properties in Oklahoma City, Oklahoma acquired in February 2014. |
" | Net income to common shareholders was $8.2 million in the third quarter of 2014, compared to a net loss of $5.0�million in the third quarter of 2013. The increase in net income was primarily due to the $16.3 million gain on extinguishment of debt incurred when the Company disposed of Eastland Mall in Columbus, Ohio ( Eastland ) by a deed in lieu of foreclosure in |
the third quarter. The gain was partially offset by $5.6 million of merger related expenses incurred during the third quarter of 2014 related to the pending acquisition of the Company by WPG.
" | Net operating income ( NOI ) for comparable mall properties, including the pro-rata share of NOI for malls held through joint ventures, increased 5.0% for the three months ended September 30, 2014 from the three months ended September�30, 2013. Revenue on comparable mall properties increased by 3.5% for the three months ended September 30, 2014 from the three months ended September 30, 2013, while operating expenses increased by 1.2% for the same period. |
" | Average in-line store rents for the Core Malls were $34.82 per square foot ( psf ) at September 30, 2014, compared to $34.76�psf at September 30, 2013. Average in-line store rents include in-line permanent retail stores that are less than 10,000 square feet. Core Malls include all of the Companys mall properties, both wholly-owned and joint venture properties. |
" | Re-leasing spreads for the Core Malls increased by 19% for the non-anchor leases signed during the third quarter of 2014, with base rents averaging $31.79 psf. Re-leasing spreads represent the percentage change in base rent for permanent leases signed, including both new leases and renewals, compared to the base rent for previous tenants for those leases where the space was occupied in the prior twenty-four months. |
" | Total occupancy for Core Malls increased to 96.3% at September 30, 2014, compared to 95.0% at September�30, 2013. |
" | Average store sales in the Core Malls increased 1.5% to $472 psf for the twelve months ended September 30, 2014, compared to $465 psf for the twelve months ended September 30, 2013. Average store sales represent retail sales for mall stores of 10,000 square feet of gross leasable area or less that reported sales in the most recent twelve month period. |
" | Occupancy costs for the twelve months ended September 30, 2014 were 10.3% of tenant sales for Core Mall stores. Occupancy costs include the tenants minimum rent and costs the tenants pay toward property operating costs and real estate taxes. |
Announced Transaction with Washington Prime Group
" | On September 16, 2014, Glimcher and WPG announced that they had entered into a merger agreement under which WPG will acquire Glimcher. Pursuant to the terms of the merger agreement, Glimcher common shareholders will receive, for each Glimcher common share, $10.40 in cash and 0.1989 of a share in WPG common stock at closing. The transaction is expected to close in the first quarter of 2015. |
Update on Liquidity and Capital Resources
" | Debt-to-total-market capitalization at September 30, 2014 (including the Companys pro-rata share of unconsolidated entities debt) was 44.8%, based on a common share closing price of $13.54, as compared to 52.8% at December 31, 2013, based on a common share closing price of $9.36. Debt with fixed interest rates represented approximately 84.9% of the Companys consolidated total outstanding borrowings at September�30, 2014, compared to 92.1% at December�31, 2013. |
" | The Company did not sell any common shares under its at-the-market ( ATM ) equity offering program during the nine months ended September 30, 2014. |
" | In July 2014, the Company conveyed Eastland to the trustee of the mortgage on the property by a deed in lieu of foreclosure and was issued a full release of the associated $39.8 million mortgage lien. |
" | A subsidiary of a joint venture is under contract to sell Puente Hills Mall, located in the City of Industry, California ( Puente ) for $100 million. The sale is expected to close during the fourth quarter of 2014. The Company owns a 52% interest in the joint venture. |
2014 Outlook
The Company maintains key assumptions detailed in previously issued guidance except for the earnings impact of the announced transaction with WPG. The Company will incur additional costs associated with the transaction that were not reflected in the 2014 estimates previously provided. Due to the uncertainty in the timing of these expenses, the Company will not provide updated guidance for the fourth quarter or fiscal year ending December 31, 2014.
Earnings Announcement
In light of the announced transaction with WPG, Glimcher has elected to discontinue conference calls to discuss its quarterly and annual results. The company will continue to issue quarterly earnings press releases.
Funds From Operations and Net Operating Income
This press release contains certain non-Generally Accepted Accounting Principles (GAAP) financial measures and other terms. The Companys definition and calculation of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. The non-GAAP financial measures referred to above should not be considered as alternatives to net income or other GAAP measures as indicators of the Companys performance. Funds From Operations is used by industry analysts and investors as a supplemental operating performance measure of a real estate investment trust ( REIT ). The Company uses FFO in addition to net income to report operating results. The National Association of REIT ( NAREIT ) defines FFO as net income (loss) available to common shareholders (computed in accordance with GAAP), excluding gains or losses from sales of depreciable property, impairment adjustments associated with depreciable real estate, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.� The Company may also discuss FFO as adjusted. Reconciliations of non-GAAP financial measures used in this press release to comparable GAAP measures are included in the press release.
NOI is used by industry analysts, investors and Company management to measure operating performance of the Companys properties. NOI represents total property revenues less property operating and maintenance expenses. Accordingly, NOI excludes certain expenses included in the determination of net income such as corporate general and administrative expense and other indirect operating expenses, interest expense, impairment adjustments and depreciation and amortization expense. These items are excluded from NOI in order to provide results that are more closely related to a propertys results of operations. In addition, the Companys computation of same mall NOI excludes straight-line adjustments of minimum rents, amortization of above-below market intangibles, termination income, and income from outparcel sales. The Company also adjusts for other miscellaneous items in order to enhance the comparability of results from one period to another. Certain items, such as interest expense, while included in FFO and net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. As a result, management uses only those income and expense items that are incurred at the property level to evaluate a propertys performance. Real estate asset related depreciation and amortization, as well as impairment charges are excluded from NOI for the same reasons that it is excluded from FFO pursuant to NAREITs definition.
About Glimcher Realty Trust
Glimcher Realty Trust, a real estate investment trust, is a recognized leader in the ownership, management, acquisition and development of retail properties, including mixed use, open-air and enclosed regional malls as well as outlet centers. Glimcher owns material interests in and manages 26 properties with total gross leasable area totaling approximately 18.4 million square feet.
Glimcher Realty Trusts common shares are listed on the New York Stock Exchange under the symbol GRT. Glimcher Realty Trusts Series G, Series H, and Series I preferred shares are listed on the New York Stock Exchange under the symbols GRTPRG, GRTPRH, and GRTPRI, respectively. Glimcher Realty Trust is a component of both the Russell 2000� Index, representing small cap stocks, and the Russell 3000� Index, representing the broader market. Glimcher� is a registered trademark of Glimcher Realty Trust.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent the current expectations and beliefs of management Glimcher Realty Trust ( GRT ) concerning the proposed transactions, the anticipated consequences and benefits of the transactions and the targeted close date for the transactions, and other future events and their potential effects on GRT, including, but not limited to, statements relating to anticipated financial and operating results, the companys plans, objectives, expectations and intentions, cost savings and other statements, including words such as anticipate, believe, plan, estimate, expect, intend, will, should, may, and other similar expressions. Such statements are based upon the current beliefs and expectations of GRTs management, and involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of GRT to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, without limitation: the ability to obtain the approval of the merger of GRT into a subsidiary of WPG by GRTs shareholders; the ability to satisfy the conditions to the transactions on the proposed terms and timeframe; the possibility
that the transactions do not close when expected or at all; the ability to finance the transactions; the ability to successfully operate and integrate WPGs and GRTs businesses and achieve cost savings; the effect of the announcement of the transactions on the GRTs relationships with their respective tenants, lenders or other business parties or on their operating results and businesses generally~ changes in asset quality and credit risk; ability to sustain revenue and earnings growth; changes in political, economic or market conditions generally and the real estate and capital markets specifically; the impact of increased competition; the availability of capital and financing; tenant or joint venture partner(s) bankruptcies; the failure to increase mall store occupancy and same-mall operating income; risks associated with the acquisition, development, expansion, leasing and management of properties; changes in market rental rates; trends in the retail industry; relationships with anchor tenants; risks relating to joint venture properties; costs of common area maintenance; competitive market forces; the level and volatility of interest rates; the rate of revenue increases as compared to expense increases; the financial stability of tenants within the retail industry; the restrictions in current financing arrangements or the failure to comply with such arrangements; the liquidity of real estate investments; the impact of changes to tax legislation and GRTs tax positions; failure to qualify as a real estate investment trust; the failure to refinance debt at favorable terms and conditions; loss of key personnel; material changes in the dividend rates on securities or the ability to pay dividends on common shares or other securities; possible restrictions on the ability to operate or dispose of any partially-owned properties; the failure to achieve earnings/funds from operations targets or estimates; the failure to achieve projected returns or yields on development and investment properties; changes in generally accepted accounting principles or interpretations thereof; terrorist activities and international hostilities; the unfavorable resolution of legal proceedings; the impact of future acquisitions and divestitures; significant costs related to environmental issues; and other risks and uncertainties, including those detailed from time to time in GRTs periodic reports filed with the Securities and Exchange Commission, including those described under Risk Factors in the preliminary proxy statement/prospectus filed by WPG in connection with the transaction and in GRTs Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. The forward-looking statements in this communication are qualified by these risk factors. Each statement speaks only as of the date of this communication (or any earlier date indicated in this communication) and GRT undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. Actual results may differ materially from current projections. Investors, potential investors and others should give careful consideration to these risks and uncertainties.
Additional Information and Where to Find It
In connection with the proposed transaction, WPG filed with the Securities and Exchange Commission (the SEC ) a registration statement on Form S-4 (the Registration Statement ) on October 27, 2014, which includes the preliminary proxy statement of GRT and which also constitutes a preliminary prospectus of WPG. The information in the preliminary proxy statement/prospectus is not complete and may be changed, and GRT will file other documents with respect to WPGs proposed acquisition of GRT. GRT plans to mail the definitive proxy statement/prospectus and a form of proxy to its shareholders in connection with the proposed transaction after the Registration Statement is declared effective by the SEC. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED MERGER, INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT WPG, GRT, THE PROPOSED TRANSACTIONS AND RELATED MATTERS.
A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about WPG and GRT, may be obtained at the SEC's Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from WPG by accessing WPGs website at investors.washingtonprime.com under the heading Financial Information and then under SEC Filings or from GRT by accessing GRTs website at investor.glimcher.com under the heading Financial Information and then under SEC Filings. Copies of the Proxy Statement/Prospectus can also be obtained, free of charge, by directing a request to Washington Prime Group Inc., 7315 Wisconsin Avenue, Bethesda, Maryland 20814, Attention: Investor Relations, Telephone: 240-630-0021 or to Glimcher Realty Trust, 180 East Broad Street, Columbus, Ohio� 43215, Attention: Investor Relations, Telephone: 614-887-5632.
Participants in Solicitation Relating to the Merger
WPG, GRT and their respective directors or trustees and executive officers and other persons may be deemed to be participants in the solicitation of proxies from GRTs shareholders in respect of the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of proxies from GRTs shareholders in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, in GRT is set forth in WPGs Registration Statement on Form 10-12(b), GRTs Annual Report on Form 10-K for the year ended December 31, 2013, and GRTs Proxy Statement on Schedule 14A, dated March 28, 2014, which are filed with the SEC. Additional information regarding the interests of WPGs or GRTs directors or trustees and executive officers in the proposed transactions, which may be different than those of GRTs shareholders generally, will be contained in the proxy statement/prospectus and other relevant documents when filed with the SEC in connection with the proposed transactions.
GLIMCHER REALTY TRUST
Operating Results
(in thousands, except per share amounts)
(unaudited)
Three Months ended September 30, | ||||||||||||||||
Statement of Operations | 2014 | 2013 | ||||||||||||||
Total revenues | $ | 98,334 | $ | 93,105 | ||||||||||||
Total expenses (1) | (82,065 | ) | (72,877 | ) | ||||||||||||
Operating income | 16,269 | 20,228 | ||||||||||||||
Interest expense, net | (20,410 | ) | (19,153 | ) | ||||||||||||
Equity in income (loss) of unconsolidated real estate entities, net | 878 | (130 | ) | |||||||||||||
(Loss) income from continuing operations | (3,263 | ) | 945 | |||||||||||||
Discontinued operations: | ||||||||||||||||
Gain on disposition of property | 1,284 | |||||||||||||||
Gain on extinguishment of debt | 16,292 | |||||||||||||||
Loss from operations | (41 | ) | (115 | ) | ||||||||||||
Net income | 14,272 | 830 | ||||||||||||||
Allocation to noncontrolling interests (2) | (168 | ) | 87 | |||||||||||||
Less: Preferred share dividends | (5,895 | ) | (5,895 | ) | ||||||||||||
Net income (loss) to common shareholders | $ | 8,209 | $ | (4,978 | ) | |||||||||||
Reconciliation of Net Income (Loss) to Common Shareholders to Funds From Operations | Per Diluted Common Share (3) | Per Diluted Common Share (3) | ||||||||||||||
Net income (loss) to common shareholders | $ | 8,209 | $ | (4,978 | ) | |||||||||||
Allocation to noncontrolling interests (GPLP unit holders) | 133 | (76 | ) | |||||||||||||
8,342 | $ | 0.06 | (5,054 | ) | $ | (0.03 | ) | |||||||||
Real estate depreciation and amortization, including joint venture impact | 31,289 | 0.21 | 29,751 | 0.20 | ||||||||||||
Gain on disposition of property | (1,284 | ) | (0.01 | ) | ||||||||||||
Funds From Operations | $ | 38,347 | $ | 0.26 | $ | 24,697 | $ | 0.17 | ||||||||
Less: Gain on extinguishment of debt | $ | (16,292 | ) | $ | (0.11 | ) | $ | $ | ||||||||
Merger related costs | 5,588 | 0.04 | ||||||||||||||
Adjusted FFO | $ | 27,643 | $ | 0.19 | $ | 24,697 | $ | 0.17 | ||||||||
Weighted average common shares outstanding - basic | 145,505 | 145,043 | ||||||||||||||
Weighted average common shares outstanding - diluted (3) | 147,944 | 147,250 | ||||||||||||||
Earnings per Share | ||||||||||||||||
Loss from continuing operations per common share | $ | (0.06 | ) | $ | (0.03 | ) | ||||||||||
Discontinued operations per common share | $ | 0.12 | $ | (0.00 | ) | |||||||||||
Income (loss) per common share | $ | 0.06 | $ | (0.03 | ) | |||||||||||
Loss from continuing operations per diluted common share | $ | (0.06 | ) | $ | (0.03 | ) | ||||||||||
Discontinued operations per diluted common share | $ | 0.12 | $ | (0.00 | ) | |||||||||||
Income (loss) per diluted common share | $ | 0.06 | $ | (0.03 | ) | |||||||||||
(1) Includes $5.6 million merger related costs associated with the pending acquisition of the Company by WPG for the three months ending September 30, 2014.
(2) Noncontrolling interests are comprised of both the noncontrolling interest in consolidated joint ventures and the interest held by GPLP's unit holders.
(3) FFO per share in 2014 and 2013 has been calculated using 148,683 and 147,894 common shares, respectively, which includes common stock equivalents.
GLIMCHER REALTY TRUST
Operating Results
(in thousands, except per share amounts)
(unaudited)
Nine Months ended September 30, | ||||||||||||||||
Statement of Operations | 2014 | 2013 | ||||||||||||||
Total revenues | $ | 289,437 | $ | 274,241 | ||||||||||||
Total expenses (1) | (233,635 | ) | (212,634 | ) | ||||||||||||
Operating income | 55,802 | 61,607 | ||||||||||||||
Gain on re-measurement of equity method investment | 19,227 | |||||||||||||||
Interest expense, net | (61,387 | ) | (55,182 | ) | ||||||||||||
Equity in income of unconsolidated real estate entities, net (2) | 1,883 | 13,181 | ||||||||||||||
(Loss) income from continuing operations | (3,702 | ) | 38,833 | |||||||||||||
Discontinued operations: | ||||||||||||||||
Impairment loss | (2,513 | ) | ||||||||||||||
Gain on extinguishment of debt | 16,292 | |||||||||||||||
Gain on disposition of assets | 2,613 | |||||||||||||||
Income from operations | 681 | 399 | ||||||||||||||
Net income | 13,371 | 39,232 | ||||||||||||||
Allocation to noncontrolling interests (3) | (625 | ) | (258 | ) | ||||||||||||
Less: Preferred share dividends | (17,685 | ) | (18,521 | ) | ||||||||||||
���������Write-off related to preferred share redemption (4) | (9,426 | ) | ||||||||||||||
Net (loss) income to common shareholders | $ | (4,939 | ) | $ | 11,027 | |||||||||||
Reconciliation of Net (Loss) Income to Common Shareholders to Funds From Operations | Per Diluted Common Share (5) | Per Diluted Common Share (5) | ||||||||||||||
Net (loss) income to common shareholders | $ | (4,939 | ) | $ | 11,027 | |||||||||||
Allocation to noncontrolling interests (GPLP unit holders) | (84 | ) | 155 | |||||||||||||
(5,023 | ) | $ | (0.03 | ) | 11,182 | $ | 0.08 | |||||||||
Real estate depreciation and amortization, including joint venture impact | 92,804 | 0.62 | 85,993 | 0.58 | ||||||||||||
Gain on disposition of assets | (1,609 | ) | (0.01 | ) | ||||||||||||
Impairment loss | 2,513 | 0.02 | ||||||||||||||
Gain on re-measurement of equity method investment | (19,227 | ) | (0.13 | ) | ||||||||||||
Pro-rata share of joint venture gain on sale of assets, net | (502 | ) | (0.01 | ) | (5,565 | ) | (0.04 | ) | ||||||||
Funds From Operations | $ | 88,183 | $ | 0.59 | $ | 72,383 | $ | 0.49 | ||||||||
Less: Gain on extinguishment of debt including joint venture pro-rata share | $ | (16,292 | ) | $ | (0.11 | ) | $ | (6,890 | ) | $ | (0.05 | ) | ||||
Merger related costs | 5,588 | 0.04 | ||||||||||||||
Write-off related to preferred share redemption (4) | 9,426 | 0.07 | ||||||||||||||
Adjusted FFO | $ | 77,479 | $ | 0.52 | $ | 74,919 | $ | 0.51 | ||||||||
Weighted average common shares outstanding - basic | 145,274 | 144,334 | ||||||||||||||
Weighted average common shares outstanding - diluted (5) | 147,719 | 147,211 | ||||||||||||||
Earnings per Share | ||||||||||||||||
(Loss) income from continuing operations per common share | $ | (0.14 | ) | $ | 0.07 | |||||||||||
Discontinued operations per common share | $ | 0.11 | $ | 0.00 | ||||||||||||
(Loss) income per common share | $ | (0.03 | ) | $ | 0.08 | |||||||||||
(Loss) income from continuing operations per diluted common share | $ | (0.14 | ) | $ | 0.07 | |||||||||||
Discontinued operations per diluted common share | $ | 0.11 | $ | 0.00 | ||||||||||||
(Loss) income per diluted common share | $ | (0.03 | ) | $ | 0.08 | |||||||||||
(1) Includes $5.6 million merger related costs associated with the pending acquisition of the Company by WPG for the nine months ending September 30, 2014.
(2) Includes $6.9 million for the Company's pro-rata share of the gain on the Tulsa debt extinguishment, $0.9 million for the Company's share of the loss on the disposition of Tulsa and $6.5 million for the Company's share of the gain on the sale of Lloyd Center for the nine months ending September 30, 2013.
(3) Noncontrolling interests are comprised of both the noncontrolling interest in consolidated joint ventures and the interest held by GPLP's unit holders.
(4) Non-cash write-off of issuance costs and related discount due to the redemption of preferred shares for the nine months ended September 30, 2013.
(5) FFO per share in 2014 and 2013 has been calculated using 148,324 and 147,211 common shares, respectively, which includes common stock equivalents.
GLIMCHER REALTY TRUST
Selected Balance Sheet Information
(in thousands, except percentages and base rents)
September 30, 2014 | December 31, 2013 | |||||||
Investment in real estate, net | $ | 2,459,319 | $ | 2,454,921 | ||||
Total assets | $ | 2,603,446 | $ | 2,658,009 | ||||
Mortgage notes and other notes payable | $ | 1,835,425 | $ | 1,847,903 | ||||
Debt / Market capitalization | 44.3 | % | 52.4 | % | ||||
Debt / Market capitalization including pro-rata share of unconsolidated entities | 44.8 | % | 52.8 | % | ||||
September 30, 2014 | September 30, 2013 | |||
Occupancy: | ||||
Core Malls (1): | ||||
Mall Anchors (2) | 98.8% | 96.1% | ||
Mall Non-Anchors (3) | 92.6% | 93.3% | ||
Total Core Mall Portfolio | 96.3% | 95.0% | ||
Comparable Retail Properties (4): | ||||
Mall Anchors (2) | 98.8% | 97.9% | ||
Mall Non-Anchors (3) | 93.4% | 93.4% | ||
Total occupancy for Comparable Properties | 96.7% | 96.1% | ||
Average Base Rents: | ||||
Core Malls (1): | ||||
Mall Anchors (2) | $7.94 | $7.62 | ||
In-Line Stores under 10,000 sf (5) | $34.82 | $34.76 | ||
Comparable Retail Properties (4): | ||||
Mall Anchors (2) | $7.90 | $7.79 | ||
In-Line Stores under 10,000 sf (5) | $35.12 | $34.87 | ||
(1) Mall properties including material joint ventures.
(2) Stores over 20,000 sf.
(3) Non-anchors include in-line permanent retail tenants, office, and long-term specialty tenants under 20,000 sf, as well as outparcels.
(4) Core Malls excluding properties acquired or sold after September 30, 2013. Excludes Eastland Mall, Arbor Hills and the Oklahoma City properties in each period reported.
(5) In-line permanent retail stores under 10,000 sf.
Exhibit 99.2
GLIMCHER REALTY TRUST
Supplemental Information
For the Nine Months Ended September 30, 2014 and 2013
TABLE OF CONTENTS
Income Statement Data: | � |
Page 1 | |
Year-to-Date Income Statements | Page 2 |
Page 3 | |
Page 4 | |
Page 5 | |
Page 6 | |
Page 7 | |
Page 8 | |
Net Operating Income Growth for Comparable Properties (Including Pro-Rata Share of Unconsolidated Properties) | Page 9 |
� | � |
Balance Sheet Data: | � |
Page 10 | |
Page 11 | |
Page 12 | |
Page 13 | |
� | � |
Operational Data: | � |
Page 14 | |
Page 15 | |
Page 16 | |
Page 17 | |
Page 18 | |
Page 19 | |
� | � |
Development Activity: | � |
Page 20 | |
Development Activity | Page 21 |
QUARTERLY INCOME STATEMENTS
(in thousands)
� | Three Months Ended September 30, | ||||||||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||
As Reported | Discontinued Operations | Pre ASC-205 | As Reported | Discontinued Operations | Pre ASC-205 | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Minimum rents (see components on page 3) | $ | 60,653 | $ | 319 | $ | 60,972 | $ | 57,666 | $ | 1,146 | $ | 58,812 | |||||||||||
Percentage rents | 3,298 | 9 | 3,307 | 3,225 | 9 | 3,234 | |||||||||||||||||
Tenant reimbursements | 29,846 | 107 | 29,953 | 28,494 | 411 | 28,905 | |||||||||||||||||
Outparcel sales | 813 | 813 | |||||||||||||||||||||
Other (see components on page 3) | 3,724 | 13 | 3,737 | 3,720 | 64 | 3,784 | |||||||||||||||||
Total Revenues | 98,334 | 448 | 98,782 | 93,105 | 1,630 | 94,735 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Property operating expenses | (21,898 | ) | (168 | ) | (22,066 | ) | (21,107 | ) | (453 | ) | (21,560 | ) | |||||||||||
Real estate taxes | (11,936 | ) | (69 | ) | (12,005 | ) | (10,957 | ) | (197 | ) | (11,154 | ) | |||||||||||
Total recoverable expenses | (33,834 | ) | (237 | ) | (34,071 | ) | (32,064 | ) | (650 | ) | (32,714 | ) | |||||||||||
Provision for doubtful accounts | (181 | ) | (5 | ) | (186 | ) | (394 | ) | (21 | ) | (415 | ) | |||||||||||
Other operating expenses (see components on page 4) | (3,421 | ) | (44 | ) | (3,465 | ) | (4,147 | ) | (62 | ) | (4,209 | ) | |||||||||||
Costs related to the sale of outparcels | (182 | ) | (182 | ) | |||||||||||||||||||
Real estate depreciation and amortization | (31,286 | ) | (31,286 | ) | (28,565 | ) | (367 | ) | (28,932 | ) | |||||||||||||
Non-real estate depreciation and amortization | (647 | ) | (647 | ) | (818 | ) | (8 | ) | (826 | ) | |||||||||||||
Merger related costs | (5,588 | ) | (5,588 | ) | |||||||||||||||||||
General and administrative | (6,926 | ) | (2 | ) | (6,928 | ) | (6,889 | ) | (8 | ) | (6,897 | ) | |||||||||||
Total Expenses | (82,065 | ) | (288 | ) | (82,353 | ) | (72,877 | ) | (1,116 | ) | (73,993 | ) | |||||||||||
Operating Income | 16,269 | 160 | 16,429 | 20,228 | 514 | 20,742 | |||||||||||||||||
Interest expense, net | (19,596 | ) | (201 | ) | (19,797 | ) | (18,362 | ) | (624 | ) | (18,986 | ) | |||||||||||
Loan fee amortization | (814 | ) | (814 | ) | (791 | ) | (5 | ) | (796 | ) | |||||||||||||
Equity in income (loss) of unconsolidated real estate entities, net | 878 | 878 | (130 | ) | (130 | ) | |||||||||||||||||
(Loss) income from continuing operations | (3,263 | ) | (41 | ) | (3,304 | ) | 945 | (115 | ) | 830 | |||||||||||||
Discontinued Operations: | |||||||||||||||||||||||
����Gain on debt extinguishment | 16,292 | 16,292 | |||||||||||||||||||||
����Gain on disposition of property | 1,284 | 1,284 | |||||||||||||||||||||
����Loss from operations | (41 | ) | 41 | (115 | ) | 115 | |||||||||||||||||
Net income | 14,272 | 14,272 | 830 | 830 | |||||||||||||||||||
Allocation to noncontrolling interests | (168 | ) | (168 | ) | 87 | 87 | |||||||||||||||||
Net income attributable to Glimcher Realty Trust | 14,104 | 14,104 | 917 | 917 | |||||||||||||||||||
Preferred share dividends | (5,895 | ) | (5,895 | ) | (5,895 | ) | (5,895 | ) | |||||||||||||||
Net income (loss) to common shareholders | $ | 8,209 | $ | $ | 8,209 | $ | (4,978 | ) | $ | $ | (4,978 | ) | |||||||||||
Note: Pre ASC-205 column includes both continuing and discontinued operations.
1
YEAR-TO-DATE INCOME STATEMENTS
(in thousands)
� | Nine Months Ended September 30, | ||||||||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||
As Reported | Discontinued Operations | Pre ASC-205 | As Reported | Discontinued Operations | Pre ASC-205 | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Minimum rents (see components on page 3) | $ | 180,752 | $ | 2,626 | $ | 183,378 | $ | 168,641 | $ | 3,460 | $ | 172,101 | |||||||||||
Percentage rents | 7,624 | 43 | 7,667 | 7,141 | 73 | 7,214 | |||||||||||||||||
Tenant reimbursements | 87,526 | 1,020 | 88,546 | 80,250 | 1,284 | 81,534 | |||||||||||||||||
Outparcel sales | 2,813 | 900 | 3,713 | 4,435 | 3,320 | 7,755 | |||||||||||||||||
Other (see components on page 3) | 10,722 | 115 | 10,837 | 13,774 | 219 | 13,993 | |||||||||||||||||
Total Revenues | 289,437 | 4,704 | 294,141 | 274,241 | 8,356 | 282,597 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Property operating expenses | (64,105 | ) | (1,179 | ) | (65,284 | ) | (58,103 | ) | (1,456 | ) | (59,559 | ) | |||||||||||
Real estate taxes | (35,042 | ) | (461 | ) | (35,503 | ) | (32,322 | ) | (600 | ) | (32,922 | ) | |||||||||||
Total recoverable expenses | (99,147 | ) | (1,640 | ) | (100,787 | ) | (90,425 | ) | (2,056 | ) | (92,481 | ) | |||||||||||
Provision for doubtful accounts | (860 | ) | (56 | ) | (916 | ) | (2,139 | ) | 182 | (1,957 | ) | ||||||||||||
Other operating expenses (see components on page 4) | (10,275 | ) | (141 | ) | (10,416 | ) | (13,333 | ) | (198 | ) | (13,531 | ) | |||||||||||
Costs related to the sale of outparcels | (1,392 | ) | (528 | ) | (1,920 | ) | (4,089 | ) | (2,815 | ) | (6,904 | ) | |||||||||||
Real estate depreciation and amortization | (92,334 | ) | (67 | ) | (92,401 | ) | (80,074 | ) | (1,122 | ) | (81,196 | ) | |||||||||||
Non-real estate depreciation and amortization | (2,002 | ) | (2 | ) | (2,004 | ) | (1,915 | ) | (23 | ) | (1,938 | ) | |||||||||||
Merger related costs | (5,588 | ) | (5,588 | ) | |||||||||||||||||||
General and administrative | (22,037 | ) | (66 | ) | (22,103 | ) | (20,659 | ) | (29 | ) | (20,688 | ) | |||||||||||
Total Expenses | (233,635 | ) | (2,500 | ) | (236,135 | ) | (212,634 | ) | (6,061 | ) | (218,695 | ) | |||||||||||
Operating Income | 55,802 | 2,204 | 58,006 | 61,607 | 2,295 | 63,902 | |||||||||||||||||
Gain on remeasurement of equity method investment | 19,227 | 19,227 | |||||||||||||||||||||
Interest expense, net | (58,914 | ) | (1,394 | ) | (60,308 | ) | (52,551 | ) | (1,872 | ) | (54,423 | ) | |||||||||||
Loan fee amortization | (2,473 | ) | (129 | ) | (2,602 | ) | (2,631 | ) | (24 | ) | (2,655 | ) | |||||||||||
Equity in income of unconsolidated real estate entities, net | 1,883 | 1,883 | 13,181 | 13,181 | |||||||||||||||||||
(Loss) income from continuing operations | (3,702 | ) | 681 | (3,021 | ) | 38,833 | 399 | 39,232 | |||||||||||||||
Discontinued Operations: | |||||||||||||||||||||||
����Gain on debt extinguishment | 16,292 | 16,292 | |||||||||||||||||||||
����Gain on disposition of assets | 2,613 | 2,613 | |||||||||||||||||||||
����Impairment loss | (2,513 | ) | (2,513 | ) | |||||||||||||||||||
����Income from operations | 681 | (681 | ) | 399 | (399 | ) | |||||||||||||||||
Net income | 13,371 | 13,371 | 39,232 | 39,232 | |||||||||||||||||||
Allocation to noncontrolling interests | (625 | ) | (625 | ) | (258 | ) | (258 | ) | |||||||||||||||
Net income attributable to Glimcher Realty Trust | 12,746 | 12,746 | 38,974 | 38,974 | |||||||||||||||||||
Preferred share dividends | (17,685 | ) | (17,685 | ) | (18,521 | ) | (18,521 | ) | |||||||||||||||
Write-off related to preferred share redemptions | (9,426 | ) | (9,426 | ) | |||||||||||||||||||
Net (loss) income to common shareholders | $ | (4,939 | ) | $ | $ | (4,939 | ) | $ | 11,027 | $ | $ | 11,027 | |||||||||||
Note: Pre ASC-205 column includes both continuing and discontinued operations.
2
COMPONENTS OF MINIMUM RENTS AND OTHER REVENUE
(in thousands)
� | Three Months Ended September 30, | ||||||||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||
As Reported | Discontinued Operations | Pre ASC-205 | As Reported | Discontinued Operations | Pre ASC-205 | ||||||||||||||||||
Components of Minimum Rents: | � | � | � | � | � | � | |||||||||||||||||
Base rent | $ | 60,027 | $ | 314 | $ | 60,341 | $ | 56,417 | $ | 1,138 | $ | 57,555 | |||||||||||
Termination income | 221 | 221 | 272 | 272 | |||||||||||||||||||
Straight-line rents | 405 | 5 | 410 | 977 | 8 | 985 | |||||||||||||||||
Total Minimum Rents | $ | 60,653 | $ | 319 | $ | 60,972 | $ | 57,666 | $ | 1,146 | $ | 58,812 | |||||||||||
Components of Other Revenue: | |||||||||||||||||||||||
Fee and service income | $ | 261 | $ | $ | 261 | $ | 258 | $ | $ | 258 | |||||||||||||
Specialty leasing and sponsorship income | 2,887 | 8 | 2,895 | 2,675 | 53 | 2,728 | |||||||||||||||||
Other | 576 | 5 | 581 | 787 | 11 | 798 | |||||||||||||||||
Total Other Revenue | $ | 3,724 | $ | 13 | $ | 3,737 | $ | 3,720 | $ | 64 | $ | 3,784 | |||||||||||
� | Nine Months Ended September 30, | ||||||||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||
As Reported | Discontinued Operations | Pre ASC-205 | As Reported | Discontinued Operations | Pre ASC-205 | ||||||||||||||||||
Components of Minimum Rents: | � | � | � | � | � | � | |||||||||||||||||
Base rent | $ | 177,789 | $ | 2,621 | $ | 180,410 | $ | 162,602 | $ | 3,453 | $ | 166,055 | |||||||||||
Termination income | 1,195 | 14 | 1,209 | 2,900 | 117 | 3,017 | |||||||||||||||||
Straight-line rents | 1,768 | (9 | ) | 1,759 | 3,139 | (110 | ) | 3,029 | |||||||||||||||
Total Minimum Rents | $ | 180,752 | $ | 2,626 | $ | 183,378 | $ | 168,641 | $ | 3,460 | $ | 172,101 | |||||||||||
Components of Other Revenue: | |||||||||||||||||||||||
Fee and service income | $ | 735 | $ | $ | 735 | $ | 3,978 | $ | $ | 3,978 | |||||||||||||
Specialty leasing and sponsorship income | 8,097 | 80 | 8,177 | 7,280 | 176 | 7,456 | |||||||||||||||||
Other | 1,890 | 35 | 1,925 | 2,516 | 43 | 2,559 | |||||||||||||||||
Total Other Revenue | $ | 10,722 | $ | 115 | $ | 10,837 | $ | 13,774 | $ | 219 | $ | 13,993 | |||||||||||
Note: Pre ASC-205 column includes both continuing and discontinued operations.
3
COMPONENTS OF OTHER OPERATING EXPENSES
(in thousands)
� | Three Months Ended September 30, | ||||||||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||
As Reported | Discontinued Operations | Pre ASC-205 | As Reported | Discontinued Operations | Pre ASC-205 | ||||||||||||||||||
Components of Other Operating Expenses: | |||||||||||||||||||||||
Cost of providing services to unconsolidated real estate entities | $ | 77 | $ | $ | 77 | $ | 87 | $ | $ | 87 | |||||||||||||
Specialty leasing costs | 434 | 14 | 448 | 465 | 19 | 484 | |||||||||||||||||
Ground lease expense | 2,098 | 2,098 | 2,153 | 2,153 | |||||||||||||||||||
Other | 812 | 30 | 842 | 1,442 | 43 | 1,485 | |||||||||||||||||
Total Other Operating Expenses | $ | 3,421 | $ | 44 | $ | 3,465 | $ | 4,147 | $ | 62 | $ | 4,209 | |||||||||||
� | Nine Months Ended September 30, | ||||||||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||
As Reported | Discontinued Operations | Pre ASC-205 | As Reported | Discontinued Operations | Pre ASC-205 | ||||||||||||||||||
Components of Other Operating Expenses: | |||||||||||||||||||||||
Cost of providing services to unconsolidated real estate entities | $ | 265 | $ | $ | 265 | $ | 2,191 | $ | $ | 2,191 | |||||||||||||
Specialty leasing costs | 1,362 | 55 | 1,417 | 1,435 | 60 | 1,495 | |||||||||||||||||
Ground lease expense | 6,184 | 6,184 | 6,415 | 6,415 | |||||||||||||||||||
Other | 2,464 | 86 | 2,550 | 3,292 | 138 | 3,430 | |||||||||||||||||
Total Other Operating Expenses | $ | 10,275 | $ | 141 | $ | 10,416 | $ | 13,333 | $ | 198 | $ | 13,531 | |||||||||||
Note: Pre ASC-205 column includes both continuing and discontinued operations.
4
SUMMARY FINANCIAL STATEMENT INFORMATION
FOR UNCONSOLIDATED ENTITIES
(in thousands)
� | For the Three Months Ended September 30, 2014 | For the Three Months Ended September 30, 2013 | |||||||||||||
Total | Company's Pro-Rata Share of Unconsolidated Entities Operations | Total | Company's Pro-Rata Share of Unconsolidated Entities Operations | ||||||||||||
Statements of Operations | � | � | � | � | |||||||||||
Total revenues | $ | 6,135 | $ | 3,171 | $ | 5,731 | $ | 2,973 | |||||||
Operating expenses | (3,620 | ) | (1,869 | ) | (3,600 | ) | (1,856 | ) | |||||||
Net operating income | 2,515 | 1,302 | 2,131 | 1,117 | |||||||||||
Depreciation and amortization | (85 | ) | (42 | ) | (1,615 | ) | (839 | ) | |||||||
Other expenses, net | (13 | ) | (7 | ) | (19 | ) | (10 | ) | |||||||
Interest expense, net | (773 | ) | (401 | ) | (763 | ) | (396 | ) | |||||||
Net income (loss) | 1,644 | 852 | (266 | ) | (128 | ) | |||||||||
Preferred dividend | (4 | ) | (2 | ) | (4 | ) | (2 | ) | |||||||
Net income (loss) to partnership | 1,640 | 850 | (270 | ) | (130 | ) | |||||||||
Preferred return | 28 | ||||||||||||||
GPLP's share of income (loss) from investment in unconsolidated entities | $ | 878 | $ | (130 | ) | ||||||||||
� | For the Nine Months Ended September 30, 2014 | For the Nine Months Ended September 30, 2013 | |||||||||||||
Total | Company's Pro-Rata Share of Unconsolidated Entities Operations | Total | Company's Pro-Rata Share of Unconsolidated Entities Operations | ||||||||||||
Statements of Operations | � | � | � | � | |||||||||||
Total revenues | $ | 17,410 | $ | 8,991 | $ | 42,510 | $ | 19,324 | |||||||
Operating expenses | (10,385 | ) | (5,362 | ) | (21,217 | ) | (9,924 | ) | |||||||
Net operating income | 7,025 | 3,629 | 21,293 | 9,400 | |||||||||||
Depreciation and amortization | (1,013 | ) | (519 | ) | (11,637 | ) | (4,909 | ) | |||||||
Other expenses, net | (127 | ) | (54 | ) | (152 | ) | (66 | ) | |||||||
Interest expense, net | (2,302 | ) | (1,195 | ) | (8,342 | ) | (3,691 | ) | |||||||
Gain on the sale of properties (1) | 25,615 | 12,455 | |||||||||||||
Net income | 3,583 | 1,861 | 26,777 | 13,189 | |||||||||||
Preferred dividend | (12 | ) | (6 | ) | (16 | ) | (8 | ) | |||||||
Net income to partnership | 3,571 | 1,855 | 26,761 | 13,181 | |||||||||||
Preferred return | 28 | ||||||||||||||
GPLP's share of income from investment in unconsolidated entities | $ | 1,883 | $ | 13,181 | |||||||||||
(1) Gain on the sale of properties for the nine months ended September 30, 2013 relates to the sale of both Lloyd Center and Tulsa Promenade, including $13,250 of debt extinguishment for Tulsa Promenade.
5
CALCULATION OF FUNDS FROM OPERATIONS
AND FFO PAYOUT RATIO
(in thousands, except per share data)
� | 2014 | 2013 | |||||||||||||||||||||||||||||||||
3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | YTD Sept. 30 | 3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | 3 mos Dec. 31 | YTD Dec. 31 | |||||||||||||||||||||||||||
Funds from Operations ("FFO"): | � | � | � | � | � | � | � | � | � | ||||||||||||||||||||||||||
Net (loss) income to common shareholders | $ | (7,544 | ) | $ | (5,604 | ) | $ | 8,209 | $ | (4,939 | ) | $ | (13,911 | ) | $ | 29,916 | $ | (4,978 | ) | $ | (49,018 | ) | $ | (37,991 | ) | ||||||||||
Real estate depreciation and amortization, including joint venture impact | 31,279 | 30,236 | 31,289 | 92,804 | 28,462 | 27,780 | 29,751 | 32,008 | 118,001 | ||||||||||||||||||||||||||
Pro-rata share of unconsolidated entity impairment loss | 45,064 | 45,064 | |||||||||||||||||||||||||||||||||
Pro-rata share of joint venture gain on the sale of assets, net | (502 | ) | (502 | ) | (5,565 | ) | (5,565 | ) | |||||||||||||||||||||||||||
Noncontrolling interest in operating partnership | (128 | ) | (89 | ) | 133 | (84 | ) | (222 | ) | 453 | (76 | ) | (774 | ) | (619 | ) | |||||||||||||||||||
Gain on the remeasurement of equity method investment | (19,227 | ) | (19,227 | ) | |||||||||||||||||||||||||||||||
Impairment loss / Gain on sale of assets | 2,188 | (1,284 | ) | 904 | |||||||||||||||||||||||||||||||
FFO | $ | 23,105 | $ | 26,731 | $ | 38,347 | $ | 88,183 | $ | 14,329 | $ | 33,357 | $ | 24,697 | $ | 27,280 | $ | 99,663 | |||||||||||||||||
Adjusted Funds from Operations: | |||||||||||||||||||||||||||||||||||
FFO | $ | 23,105 | $ | 26,731 | $ | 38,347 | $ | 88,183 | $ | 14,329 | $ | 33,357 | $ | 24,697 | $ | 27,280 | $ | 99,663 | |||||||||||||||||
Add back: write-off related to preferred share redemptions | 9,266 | 160 | 9,426 | ||||||||||||||||||||||||||||||||
Add back: write-off of defeasance costs | 2,387 | 2,387 | |||||||||||||||||||||||||||||||||
Add back: merger related costs | 5,588 | 5,588 | |||||||||||||||||||||||||||||||||
Less: gain on debt extinguishment | (16,292 | ) | (16,292 | ) | |||||||||||||||||||||||||||||||
Less: pro-rata share of joint venture debt extinguishment | (6,890 | ) | (6,890 | ) | |||||||||||||||||||||||||||||||
Adjusted Funds from Operations | $ | 23,105 | $ | 26,731 | $ | 27,643 | $ | 77,479 | $ | 23,595 | $ | 26,627 | $ | 24,697 | $ | 29,667 | $ | 104,586 | |||||||||||||||||
Weighted average common shares outstanding - diluted (1) | 148,012 | 148,298 | 148,683 | 148,324 | 146,301 | 147,420 | 147,894 | 147,904 | 147,384 | ||||||||||||||||||||||||||
FFO per diluted share | $ | 0.16 | $ | 0.18 | $ | 0.26 | $ | 0.59 | $ | 0.10 | $ | 0.23 | $ | 0.17 | $ | 0.18 | $ | 0.68 | |||||||||||||||||
Total adjustments | (0.07 | ) | (0.07 | ) | 0.06 | (0.05 | ) | 0.02 | 0.03 | ||||||||||||||||||||||||||
Adjusted FFO per diluted share | $ | 0.16 | $ | 0.18 | $ | 0.19 | $ | 0.52 | $ | 0.16 | $ | 0.18 | $ | 0.17 | $ | 0.20 | $ | 0.71 | |||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||||||||||||||
3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | YTD Sept. 30 | 3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | 3 mos Dec. 31 | YTD Dec. 31 | |||||||||||||||||||||||||||
FFO Payout Ratio: | � | � | � | � | � | � | � | � | � | ||||||||||||||||||||||||||
Dividend paid per common share/unit | $ | 0.1000 | $ | 0.1000 | $ | 0.1000 | $ | 0.3000 | $ | 0.1000 | $ | 0.1000 | $ | 0.1000 | $ | 0.1000 | $ | 0.4000 | |||||||||||||||||
FFO payout ratio after adjustments | 64.1 | % | 55.5 | % | 53.8 | % | 57.4 | % | 62.0 | % | 55.4 | % | 59.9 | % | 49.9 | % | 56.4 | % | |||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||||||||||||||
3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | YTD Sept. 30 | 3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | 3 mos Dec. 31 | YTD Dec. 31 | |||||||||||||||||||||||||||
Supplemental disclosure of amounts included in FFO for consolidated properties: | � | � | � | � | � | ||||||||||||||||||||||||||||||
Deferred leasing costs | $ | 1,796 | $ | 1,899 | $ | 1,638 | $ | 5,333 | $ | 1,514 | $ | 1,747 | $ | 1,533 | $ | 1,732 | $ | 6,526 | |||||||||||||||||
Straight-line adjustment as an increase to minimum rents (continuing and discontinued operations) | $ | 460 | $ | 890 | $ | 410 | $ | 1,760 | $ | 1,177 | $ | 868 | $ | 985 | $ | 469 | $ | 3,499 | |||||||||||||||||
Straight-line and fair market value adjustment for ground lease expense recorded as an increase to other operating expense | $ | 664 | $ | 664 | $ | 664 | $ | 1,992 | $ | 860 | $ | 860 | $ | 860 | $ | 860 | $ | 3,440 | |||||||||||||||||
Fair value of debt amortized as a decrease to interest expense | $ | 348 | $ | 348 | $ | 348 | $ | 1,044 | $ | 348 | $ | 348 | $ | 348 | $ | 348 | $ | 1,392 | |||||||||||||||||
Intangible and inducement amortization as a net increase to base rents (continuing and discontinued operations) | $ | 2,157 | $ | 1,206 | $ | 1,483 | $ | 4,846 | $ | 1,209 | $ | 1,373 | $ | 1,484 | $ | 1,762 | $ | 5,828 | |||||||||||||||||
Discontinued development write-offs | $ | $ | 4 | $ | $ | 4 | $ | 122 | $ | $ | $ | $ | 122 | ||||||||||||||||||||||
(1) Shares include all potential common share equivalents that may be excluded in the calculation of earnings per share.
6
UNCONSOLIDATED ENTITIES CALCULATION OF FUNDS FROM OPERATIONS
AND DISCLOSURE OF PRO-RATA SHARE OF NON-CASH AMOUNTS IN FFO
(in thousands)
� | 2014 | 2013 | |||||||||||||||||||||||||||||||||
3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | YTD Sept. 30 | 3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | 3 mos Dec. 31 | YTD Dec. 31 | |||||||||||||||||||||||||||
Unconsolidated Entities Funds from Operations: | � | � | � | � | � | � | � | � | |||||||||||||||||||||||||||
Net income (loss) to partnership | $ | 461 | $ | 1,470 | $ | 1,640 | $ | 3,571 | $ | 687 | $ | 26,344 | $ | (270 | ) | $ | (86,526 | ) | $ | (59,765 | ) | ||||||||||||||
Real estate depreciation and amortization | 855 | 71 | 85 | 1,011 | 5,254 | 4,728 | 1,612 | 1,291 | 12,885 | ||||||||||||||||||||||||||
Gain on sale of properties, net | (12,365 | ) | (12,365 | ) | |||||||||||||||||||||||||||||||
Impairment loss | 86,661 | 86,661 | |||||||||||||||||||||||||||||||||
FFO | $ | 1,316 | $ | 1,541 | $ | 1,725 | $ | 4,582 | $ | 5,941 | $ | 18,707 | $ | 1,342 | $ | 1,426 | $ | 27,416 | |||||||||||||||||
Pro-rata share of unconsolidated entities funds from operations | $ | 692 | $ | 789 | $ | 919 | $ | 2,400 | $ | 2,602 | $ | 9,198 | $ | 707 | $ | 740 | $ | 13,247 | |||||||||||||||||
� | 2014 | 2013 | |||||||||||||||||||||||||||||||||
3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | YTD Sept. 30 | 3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | 3 mos Dec. 31 | YTD Dec. 31 | |||||||||||||||||||||||||||
Non-cash amounts included in FFO (pro-rata share of unconsolidated entities): | � | � | � | � | � | � | |||||||||||||||||||||||||||||
Straight-line adjustment as a (decrease) increase to base rent | $ | (20 | ) | $ | (9 | ) | $ | (11 | ) | $ | (40 | ) | $ | 55 | $ | 14 | $ | 26 | $ | (57 | ) | $ | 38 | ||||||||||||
Intangible amortization as an increase to minimum rents | $ | 49 | $ | 44 | $ | 44 | $ | 137 | $ | 122 | $ | 117 | $ | 66 | $ | 63 | $ | 368 | |||||||||||||||||
Gain on extinguishment of debt | $ | $ | $ | $ | $ | $ | 6,890 | $ | $ | $ | 6,890 | ||||||||||||||||||||||||
Loan fee amortization | $ | (27 | ) | $ | (27 | ) | $ | (27 | ) | $ | (81 | ) | $ | (126 | ) | $ | (120 | ) | $ | (27 | ) | $ | (27 | ) | $ | (300 | ) | ||||||||
7
EBITDA, OPERATING RATIOS AND EARNINGS PER SHARE
(dollars and shares in thousands)
� | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | YTD Sept. 30 | 3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | 3 mos Dec. 31 | YTD Dec. 31 | ||||||||||||||||||||||||||||
Calculation of EBITDA: | ||||||||||||||||||||||||||||||||||||
Net (loss) income attributable to Glimcher Realty Trust | $ | (1,649 | ) | $ | 291 | $ | 14,104 | $ | 12,746 | $ | 1,514 | $ | 36,543 | $ | 917 | $ | (43,124 | ) | $ | (4,150 | ) | |||||||||||||||
Interest expense (continuing and discontinued operations) | 20,272 | 20,379 | 19,862 | 60,513 | 17,688 | 17,759 | 18,993 | 22,464 | 76,904 | |||||||||||||||||||||||||||
Loan fee amortization (continuing and discontinued operations) | 910 | 878 | 814 | 2,602 | 1,057 | 802 | 796 | 873 | 3,528 | |||||||||||||||||||||||||||
Taxes (continuing and discontinued operations) | 213 | 357 | 264 | 834 | 205 | 262 | 235 | 268 | 970 | |||||||||||||||||||||||||||
Depreciation and amortization (continuing and discontinued operations) | 31,549 | 30,923 | 31,933 | 94,405 | 26,788 | 26,588 | 29,758 | 32,009 | 115,143 | |||||||||||||||||||||||||||
EBITDA | 51,295 | 52,828 | 66,977 | 171,100 | 47,252 | 81,954 | 50,699 | 12,490 | 192,395 | |||||||||||||||||||||||||||
Allocation to noncontrolling interests | (128 | ) | (89 | ) | 133 | (84 | ) | (222 | ) | 453 | (76 | ) | (774 | ) | (619 | ) | ||||||||||||||||||||
Adjustment for consolidated joint venture | (551 | ) | (64 | ) | (57 | ) | (672 | ) | (87 | ) | (35 | ) | (33 | ) | (21 | ) | (176 | ) | ||||||||||||||||||
EBITDA adjustments related to pro-rata share of unconsolidated entities, net | 888 | 436 | 424 | 1,748 | 4,058 | (9,086 | ) | 1,247 | 46,192 | 42,411 | ||||||||||||||||||||||||||
Impairment loss | 2,513 | 2,513 | ||||||||||||||||||||||||||||||||||
Gain on remeasurement of equity method investments | (19,227 | ) | (19,227 | ) | ||||||||||||||||||||||||||||||||
Merger related costs | 5,588 | 5,588 | ||||||||||||||||||||||||||||||||||
Gain on disposition of assets and debt extinguishment, net | (325 | ) | (17,576 | ) | (17,901 | ) | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 51,504 | $ | 55,299 | $ | 55,489 | $ | 162,292 | $ | 51,001 | $ | 54,059 | $ | 51,837 | $ | 57,887 | $ | 214,784 | ||||||||||||||||||
Operating Ratios: | ||||||||||||||||||||||||||||||||||||
General and administrative / Total revenues | 8.3 | % | 7.5 | % | 7.0 | % | 7.6 | % | 7.9 | % | 7.3 | % | 7.4 | % | 7.4 | % | 7.4 | % | ||||||||||||||||||
Tenant reimbursements / (Real estate taxes + property operating expenses) | 88.6 | % | 88.0 | % | 88.2 | % | 88.3 | % | 89.4 | % | 88.0 | % | 88.9 | % | 88.1 | % | 88.2 | % | ||||||||||||||||||
Earnings per Share: | ||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 145,080 | 145,234 | 145,505 | 145,274 | 143,408 | 144,532 | 145,043 | 145,067 | 144,519 | |||||||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 147,528 | 147,682 | 147,944 | 147,719 | 145,716 | 147,420 | 147,250 | 147,313 | 146,765 | |||||||||||||||||||||||||||
(Loss) earnings per share - basic | $ | (0.05 | ) | $ | (0.04 | ) | $ | 0.06 | $ | (0.03 | ) | $ | (0.10 | ) | $ | 0.21 | $ | (0.03 | ) | $ | (0.34 | ) | $ | (0.26 | ) | |||||||||||
(Loss) earnings per share - diluted | $ | (0.05 | ) | $ | (0.04 | ) | $ | 0.06 | $ | (0.03 | ) | $ | (0.10 | ) | $ | 0.21 | $ | (0.03 | ) | $ | (0.34 | ) | $ | (0.26 | ) | |||||||||||
8
NET OPERATING INCOME GROWTH FOR COMPARABLE PROPERTIES
(INCLUDING PRO-RATA SHARE OF UNCONSOLIDATED PROPERTIES)
(in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | Variance | 2014 | 2013 | Variance | |||||||||||||||||||
Operating Income (continuing operations) | $ | 16,269 | $ | 20,228 | $ | (3,959 | ) | $ | 55,802 | $ | 61,607 | $ | (5,805 | ) | ||||||||||
Depreciation and amortization | 31,933 | 29,383 | 2,550 | 94,336 | 81,989 | 12,347 | ||||||||||||||||||
General and administrative | 6,926 | 6,889 | 37 | 22,037 | 20,659 | 1,378 | ||||||||||||||||||
Merger related costs | 5,588 | 5,588 | 5,588 | 5,588 | ||||||||||||||||||||
Proportionate share of unconsolidated joint venture comparable NOI | 1,069 | 897 | 172 | 2,940 | 2,649 | 291 | ||||||||||||||||||
Non-comparable Properties (1) | (1,517 | ) | (260 | ) | (1,257 | ) | (7,285 | ) | 1,636 | (8,921 | ) | |||||||||||||
Comparable Properties in discontinued operations (2) | 1,323 | 1,469 | (146 | ) | ||||||||||||||||||||
Termination income and net outparcel sales income | (852 | ) | (272 | ) | (580 | ) | (2,616 | ) | (3,246 | ) | 630 | |||||||||||||
Straight line rents | (405 | ) | (977 | ) | 572 | (1,768 | ) | (3,139 | ) | 1,371 | ||||||||||||||
Non-cash ground lease adjustments | 664 | 860 | (196 | ) | 1,992 | 2,580 | (588 | ) | ||||||||||||||||
Above/below market lease amortization | (1,618 | ) | (1,660 | ) | 42 | (5,267 | ) | (4,507 | ) | (760 | ) | |||||||||||||
Fee income | (261 | ) | (258 | ) | (3 | ) | (735 | ) | (2,136 | ) | 1,401 | |||||||||||||
Other (3) | 287 | 485 | (198 | ) | 740 | 1,106 | (366 | ) | ||||||||||||||||
Comparable NOI | $ | 58,083 | $ | 55,315 | $ | 2,768 | $ | 167,087 | $ | 160,667 | $ | 6,420 | ||||||||||||
Comparable NOI percentage change | 5.0 | % | 4.0 | % | ||||||||||||||||||||
(1) Amounts include Community Centers, Arbor Hills, Oklahoma City Properties, and WestShore Plaza.
(2) Amounts include Eastland Mall.
(3) Other adjustments include discontinued development costs, non-property income and expenses, and other non-recurring income or expenses.
9
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
� | 2014 | 2013 | |||||||||||||
� | Mar. 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||
Assets: | � | � | � | � | |||||||||||
Land | $ | 410,710 | $ | 408,421 | $ | 409,191 | $ | 401,325 | |||||||
Buildings, improvements and equipment | 2,699,628 | 2,713,615 | 2,747,349 | 2,729,775 | |||||||||||
Developments in progress | 71,516 | 70,409 | 73,415 | 53,992 | |||||||||||
3,181,854 | 3,192,445 | 3,229,955 | 3,185,092 | ||||||||||||
Less accumulated depreciation | 795,328 | 818,787 | 843,274 | 801,654 | |||||||||||
����Property and equipment, net | 2,386,526 | 2,373,658 | 2,386,681 | 2,383,438 | |||||||||||
Deferred leasing costs, net | 35,662 | 35,888 | 35,480 | 35,388 | |||||||||||
Real estate assets held-for-sale | 34,899 | 29,326 | 3,658 | 5,667 | |||||||||||
Investment in and advances to unconsolidated real estate entities | 28,652 | 29,307 | 33,500 | 30,428 | |||||||||||
��������Investment in real estate, net | 2,485,739 | 2,468,179 | 2,459,319 | 2,454,921 | |||||||||||
Cash and cash equivalents | 17,009 | 21,289 | 18,455 | 59,614 | |||||||||||
Non-real estate assets associated with properties held-for-sale | 1,888 | 1,491 | 51 | ||||||||||||
Restricted cash | 24,644 | 23,546 | 21,545 | 33,674 | |||||||||||
Tenant accounts receivable, net | 31,976 | 32,870 | 33,922 | 37,062 | |||||||||||
Deferred expenses, net | 17,482 | 16,600 | 15,719 | 17,457 | |||||||||||
Prepaid and other assets | 58,782 | 54,119 | 54,486 | 55,230 | |||||||||||
Total Assets | $ | 2,637,520 | $ | 2,618,094 | $ | 2,603,446 | $ | 2,658,009 | |||||||
Liabilities, Redeemable Noncontrolling Interests, and Equity: | |||||||||||||||
Mortgage notes payable | $ | 1,802,719 | $ | 1,799,086 | $ | 1,702,425 | $ | 1,846,573 | |||||||
Mortgage notes payable associated with properties held-for-sale | 39,975 | 39,812 | 1,330 | ||||||||||||
Notes payable | 23,000 | 26,000 | 133,000 | ||||||||||||
Other liabilities associated with assets held-for-sale | 1,013 | 695 | 8 | 89 | |||||||||||
Accounts payable and accrued expenses | 117,764 | 118,108 | 134,689 | 136,670 | |||||||||||
Distributions payable | 20,083 | 20,109 | 20,188 | 20,081 | |||||||||||
Total Liabilities | 2,004,554 | 2,003,810 | 1,990,310 | 2,004,743 | |||||||||||
Redeemable noncontrolling interests | 2,321 | 2,403 | 5,678 | 1,886 | |||||||||||
Equity: | |||||||||||||||
Series G cumulative preferred shares | 109,868 | 109,868 | 109,868 | 109,868 | |||||||||||
Series H cumulative preferred shares | 96,466 | 96,466 | 96,466 | 96,466 | |||||||||||
Series I cumulative preferred shares | 91,591 | 91,591 | 91,591 | 91,591 | |||||||||||
Common shares of beneficial interest | 1,451 | 1,454 | 1,457 | 1,451 | |||||||||||
Additional paid-in capital | 1,290,612 | 1,292,403 | 1,294,359 | 1,289,097 | |||||||||||
Distributions in excess of accumulated earnings | (971,495 | ) | (991,635 | ) | (997,997 | ) | (949,442 | ) | |||||||
Accumulated other comprehensive loss | (1,008 | ) | (920 | ) | (802 | ) | (1,022 | ) | |||||||
Total Glimcher Realty Trust Shareholders' Equity | 617,485 | 599,227 | 594,942 | 638,009 | |||||||||||
Noncontrolling interests | 13,160 | 12,654 | 12,516 | 13,371 | |||||||||||
Total equity | 630,645 | 611,881 | 607,458 | 651,380 | |||||||||||
Total Liabilities, Redeemable Noncontrolling Interests, and Equity | $ | 2,637,520 | $ | 2,618,094 | $ | 2,603,446 | $ | 2,658,009 | |||||||
10
MARKET CAPITALIZATION AND DEBT COVENANT REQUIREMENTS
(dollars and shares in thousands, except per share price)
� | 2014 | 2013 | ||||||||||||||||||||||||||
3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | 3 mos Mar. 31 | 3 mos June 30 | 3 mos Sept. 30 | 3 mos Dec. 31 | ||||||||||||||||||||||
Share price (end of period) | $ | 10.03 | $ | 10.83 | $ | 13.54 | $ | 11.60 | $ | 10.92 | $ | 9.75 | $ | 9.36 | ||||||||||||||
Market Capitalization Ratio: | ||||||||||||||||||||||||||||
��Common shares outstanding | 145,088 | 145,355 | 145,709 | 144,143 | 144,934 | 145,058 | 145,075 | |||||||||||||||||||||
��Operating partnership units outstanding | 2,448 | 2,448 | 2,437 | 2,308 | 2,210 | 2,206 | 2,448 | |||||||||||||||||||||
��Total common shares and units outstanding at end of period | 147,536 | 147,803 | 148,146 | 146,451 | 147,144 | 147,264 | 147,523 | |||||||||||||||||||||
��Valuation - Common shares and operating partnership units outstanding | $ | 1,479,786 | $ | 1,600,706 | $ | 2,005,897 | $ | 1,698,832 | $ | 1,606,812 | $ | 1,435,824 | $ | 1,380,815 | ||||||||||||||
��Preferred shares | 297,925 | 297,925 | 297,925 | 382,962 | 297,948 | 297,934 | 297,925 | |||||||||||||||||||||
��Total consolidated debt (end of period) | 1,865,694 | 1,864,898 | 1,835,425 | 1,564,730 | 1,725,438 | 1,749,496 | 1,847,903 | |||||||||||||||||||||
��Total market capitalization | $ | 3,643,405 | $ | 3,763,529 | $ | 4,139,247 | $ | 3,646,524 | $ | 3,630,198 | $ | 3,483,254 | $ | 3,526,643 | ||||||||||||||
��Debt / Market capitalization | 51.2 | % | 49.6 | % | 44.3 | % | 42.9 | % | 47.5 | % | 50.2 | % | 52.4 | % | ||||||||||||||
��Debt / Market capitalization including pro-rata share of unconsolidated entities | 51.6 | % | 50.0 | % | 44.8 | % | 45.0 | % | 48.0 | % | 50.7 | % | 52.8 | % | ||||||||||||||
�
� | 2014 | |||||
Credit Facility Debt Covenant Requirements: | Facility Requirements | �Sept. 30 | ||||
��Maximum Corporate Debt to Total Asset Value | 60.0 | % | 50.1 | % | ||
��Minimum Interest Coverage Ratio | 1.75 x | 2.62 x | ||||
��Minimum Fixed Charge Coverage Ratio | 1.50 x | 1.84 x | ||||
��Maximum Recourse Debt | 10.0 | % | 4.0 | % | ||
�
11
CONSOLIDATED DEBT SCHEDULE
(dollars in thousands)
Mortgage Notes Payable: | � | � | � | � | � | � | � | � | |||||||||||||||
� | Sept. 30, | Dec. 31, | Interest Rates | ||||||||||||||||||||
Fixed Rate: | 2014 | 2013 | 2014 | 2013 | Interest Terms | Payment Terms | Balloon Pmt. at Maturity | Initial/Final Maturity | |||||||||||||||
�The Outlet Collection | Seattle | $ | 50,487 | $ | 51,611 | 7.54 | % | 7.54 | % | (i) | (a) | $ | 49,969 | (e) | ||||||||||
�Merritt Square Mall | 53,766 | 54,359 | 5.35 | % | 5.35 | % | (a) | $ | 52,914 | September�1, 2015 | |||||||||||||
�Scottsdale Quarter Fee Interest | 65,792 | 66,663 | 4.91 | % | 4.91 | % | (a) | $ | 64,577 | October�1, 2015 | |||||||||||||
�Pearlridge Center | 172,788 | 174,774 | 4.60 | % | 4.60 | % | (a) | $ | 169,551 | November�1, 2015 | |||||||||||||
�River Valley Mall | 46,003 | 46,608 | 5.65 | % | 5.65 | % | (a) | $ | 44,931 | January�11, 2016 | |||||||||||||
�Weberstown Mall | 60,000 | 60,000 | 5.90 | % | 5.90 | % | (b) | $ | 60,000 | June�8, 2016 | |||||||||||||
�The Mall at Johnson City | 52,439 | 52,940 | 6.76 | % | 6.76 | % | (a) | $ | 47,768 | May�6, 2020 | |||||||||||||
�Grand Central Mall | 42,677 | 43,141 | 6.05 | % | 6.05 | % | (a) | $ | 38,307 | July�6, 2020 | |||||||||||||
�The Outlet Collection | Jersey Gardens | 350,000 | 350,000 | 3.83 | % | 3.83 | % | (b) | $ | 350,000 | November�1, 2020 | |||||||||||||
�Ashland Town Center | 40,072 | 40,577 | 4.90 | % | 4.90 | % | (a) | $ | 34,569 | July�6, 2021 | |||||||||||||
�Dayton Mall | 82,000 | 82,000 | 4.57 | % | 4.57 | % | (d) | $ | 75,241 | September�1, 2022 | |||||||||||||
�Polaris Fashion Place | 225,000 | 225,000 | 3.90 | % | 3.90 | % | (f) | $ | 203,576 | March�1, 2025 | |||||||||||||
�Arbor Hills | 25,500 | 25,500 | 4.27 | % | 4.27 | % | (o) | $ | 20,949 | (k) | |||||||||||||
�Town Center Plaza | 73,945 | 74,873 | 5.00 | % | 5.00 | % | (a) | $ | 52,465 | (j) | |||||||||||||
�Town Center Crossing | 36,804 | 37,305 | 4.25 | % | 4.25 | % | (a) | $ | 25,820 | (j) | |||||||||||||
�University Park Village | 55,000 | 55,000 | 3.85 | % | 3.85 | % | (g) | $ | 45,977 | May�1, 2028 | |||||||||||||
�Tax Exempt Bonds | 19,000 | 19,000 | 6.00 | % | 6.00 | % | (c) | $ | 19,000 | November�1, 2028 | |||||||||||||
1,451,273 | 1,459,351 | ||||||||||||||||||||||
Variable Rate: | |||||||||||||||||||||||
�Scottsdale Quarter | 130,000 | 130,000 | 3.27 | % | 3.27 | % | (h) | (b) | $ | 130,000 | (l) | ||||||||||||
�WestShore Plaza | 119,600 | 119,600 | 3.65 | % | 3.65 | % | (m) | (b) | $ | 119,600 | (n) | ||||||||||||
249,600 | 249,600 | ||||||||||||||||||||||
Other: | |||||||||||||||||||||||
�Fair Value Adjustment - Merritt Square Mall | (240 | ) | (437 | ) | |||||||||||||||||||
�Fair Value Adjustment - Pearlridge Center | 1,792 | 3,033 | |||||||||||||||||||||
�Extinguished Debt | 135,026 | (p) | |||||||||||||||||||||
Total Mortgage Notes Payable | $ | 1,702,425 | $ | 1,846,573 | |||||||||||||||||||
Mortgage Notes Payable Associated with Property Held-for-Sale: | |||||||||||||||||||||||
�Extinguished Debt | $ | $ | 1,330 | 5.50 | % | ||||||||||||||||||
(a) | The loan requires monthly payments of principal and interest. |
(b) | The loan requires monthly payments of interest only. |
(c) | The bonds require semi-annual payments of interest only. |
(d) | The loan requires monthly payments of interest only until October 2017. Thereafter, monthly payments of principal and interest are required. |
(e) | The loan matures in September 2029, with an optional prepayment (without penalty) date on February 11, 2015. |
(f) | The loan requires monthly payments of interest only until April 2020. Thereafter, monthly payments of principal and interest are required. |
(g) | The loan requires monthly payments of interest only until May 2020. Thereafter, monthly payments of principal and interest are required. |
(h) | $105,000 was fixed through a swap agreement at a rate of 3.14% at September 30, 2014 and December 31, 2013, and the remaining $25,000 incurs interest at an average rate of LIBOR plus 3.65%. |
(i) | Interest rate escalates after optional prepayment date. |
(j) | The loans for Town Center Plaza and Town Center Crossing are cross-collateralized and have a call date of February 1, 2027. |
(k) | The loan has a call date of January 1, 2026. |
(l) | The loan matures May 22, 2015, however, a portion of the loan ($107,000) may be extended for one year subject to certain loan extension fees and conditions. |
(m) | Debt consists of two notes with average interest rate equal to the greater of 3.65% or LIBOR plus 3.15%. The rate has been capped at 7.15%. |
(n) | The loans mature October 1, 2015, however, the loans may be extended for two years subject to certain loan extension fees and conditions. |
(o) | The loan requires primarily monthly payments of interest only until February 2017. Thereafter, monthly payments of principal and interest are required. |
(p) | Interest rates ranging from 5.45% to 5.87% at December 31, 2013. |
12
TOTAL DEBT MATURITIES SCHEDULE (CONSOLIDATED AND PRO-RATA SHARE OF UNCONSOLIDATED DEBT)
(dollars in thousands)
� | Principal Payments - Assumes Exercise of Extension Options | |||||||||||||||||||||||||||||||||
Description | Initial Maturity | Extension Option (d) | Interest Rate | Balance 9/30/2014 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019+ | ||||||||||||||||||||||||
Consolidated Properties | � | � | � | � | � | � | � | � | � | |||||||||||||||||||||||||
The Outlet Collection | Seattle | 02/2015 | 7.54% | $ | 50,487 | $ | 393 | $ | 50,094 | ||||||||||||||||||||||||||
Scottsdale Quarter (a) | 05/2015 | (b) | 3.27% | 130,000 | 130,000 | |||||||||||||||||||||||||||||
Merritt Square Mall | 09/2015 | 5.35% | 53,766 | 229 | 53,537 | |||||||||||||||||||||||||||||
Scottsdale Quarter Fee Interest | 10/2015 | 4.91% | 65,792 | 300 | 65,492 | |||||||||||||||||||||||||||||
WestShore Plaza (e) | 10/2015 | 10/2017 | 3.65% | 119,600 | $ | $ | 119,600 | |||||||||||||||||||||||||||
Pearlridge Center | 11/2015 | 4.60% | 172,788 | 685 | 172,103 | |||||||||||||||||||||||||||||
River Valley Mall | 01/2016 | 5.65% | 46,003 | 210 | 863 | 44,930 | ||||||||||||||||||||||||||||
Weberstown Mall | 06/2016 | 5.90% | 60,000 | 60,000 | ||||||||||||||||||||||||||||||
The Mall at Johnson City | 05/2020 | 6.76% | 52,439 | 176 | 725 | 767 | 831 | $ | 890 | $ | 49,050 | |||||||||||||||||||||||
Grand Central Mall | 07/2020 | 6.05% | 42,677 | 162 | 666 | 700 | 752 | 799 | 39,598 | |||||||||||||||||||||||||
The Outlet Collection | Jersey Gardens | 11/2020 | 3.83% | 350,000 | 350,000 | ||||||||||||||||||||||||||||||
Ashland Town Center | 07/2021 | 4.90% | 40,072 | 174 | 714 | 744 | 788 | 828 | 36,824 | |||||||||||||||||||||||||
Dayton Mall | 09/2022 | 4.57% | 82,000 | 311 | 1,268 | 80,421 | ||||||||||||||||||||||||||||
Polaris Fashion Place | 03/2025 | 3.90% | 225,000 | 225,000 | ||||||||||||||||||||||||||||||
Arbor Hills | 01/2026 | 4.27% | 25,500 | 1 | 1 | 393 | 445 | 24,660 | ||||||||||||||||||||||||||
Town Center Plaza | 02/2027 | 5.00% | 73,945 | 317 | 1,309 | 1,375 | 1,446 | 1,520 | 67,978 | |||||||||||||||||||||||||
Town Center Crossing | 02/2027 | 4.25% | 36,804 | 170 | 700 | 730 | 762 | 795 | 33,647 | |||||||||||||||||||||||||
University Park Village | 05/2028 | 3.85% | 55,000 | 55,000 | ||||||||||||||||||||||||||||||
Tax Exempt Bonds | 11/2028 | 6.00% | 19,000 | 19,000 | ||||||||||||||||||||||||||||||
Fair Value Adjustment Amortization - Merritt Square Mall | (240 | ) | (65 | ) | (175 | ) | ||||||||||||||||||||||||||||
Fair Value Adjustment Amortization - Pearlridge Center | 1,792 | 414 | 1,378 | |||||||||||||||||||||||||||||||
����Subtotal (c) | 1,702,425 | 3,165 | 477,407 | 109,247 | 124,883 | 6,545 | 981,178 | |||||||||||||||||||||||||||
����Credit Facility | 02/2018 | 02/2019 | 1.91% | 133,000 | 133,000 | |||||||||||||||||||||||||||||
Total Consolidated Maturities | $ | 1,835,425 | $ | 3,165 | $ | 477,407 | $ | 109,247 | $ | 124,883 | $ | 6,545 | $ | 1,114,178 | ||||||||||||||||||||
Unconsolidated Properties | ||||||||||||||||||||||||||||||||||
Puente Hills Mall (f) | 07/2017 | 4.50% | $ | 60,000 | $ | $ | $ | $ | 60,000 | |||||||||||||||||||||||||
Pro-Rata Share of Unconsolidated Maturities | $ | 31,200 | $ | $ | $ | $ | 31,200 | $ | $ | |||||||||||||||||||||||||
Total Consolidated Maturities and Pro-rata Share of Unconsolidated Maturities | $ | 1,866,625 | $ | 3,165 | $ | 477,407 | $ | 109,247 | $ | 156,083 | $ | 6,545 | $ | 1,114,178 | ||||||||||||||||||||
(a) | $105,000 of the loan has been fixed through an interest rate swap agreement and the remaining $25,000 incurs interest at an average rate of LIBOR plus 3.65%. |
(b) | A portion of the loan ($107,000) may be extended for one year subject to certain loan extension fees and conditions. |
(c) | Weighted average interest rate for the fixed rate mortgage debt was 4.59% as of September 30, 2014 with an initial weighted average maturity of 5.9 years when considering available extension options. |
(d) | Loans may be extended to date indicated subject to certain loan extension fees and conditions. Extension availability is subject to the inherent risk of the Company's ability to satisfy such conditions. |
(e) | Debt consists of two notes with average interest rate equal to the greater of 3.65% or LIBOR plus 3.15%. The rate has been capped at 7.15%. |
(f) | The loan requires monthly payments of interest only. Puente Hills Mall is held-for-sale as of September 30, 2014. |
13
OCCUPANCY STATISTICS
Portfolio Occupancy Statistics
Portfolio occupancy statistics by property type are summarized below:
� | Occupancy (1) | ||||||||
� | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | ||||
Core Malls (2) | |||||||||
Mall Anchors | 98.8% | 97.2% | 96.1% | 96.3% | 96.1% | ||||
Mall Non-Anchors | 92.6% | 92.5% | 92.3% | 94.7% | 93.3% | ||||
Total Occupancy | 96.3% | 95.3% | 94.5% | 95.6% | 95.0% | ||||
Occupancy Cost (3) | 10.3% | 10.0% | 10.4% | 10.4% | 10.3% | ||||
(1) | Occupied space is defined as any space where a tenant is occupying the space or paying rent at the date indicated, excluding all tenants�with leases having an initial term of less than one year. |
(2) | Includes the Company's core properties held at the end of each reporting period, including material joint venture properties. |
(3) | Percent of tenant's total occupancy cost (rent and reimbursement of CAM, tax and insurance) to tenant sales for stores of 10,000 sf or less. |
14
LEASING RESULTS AND RE-LEASING SPREADS
Permanent Leasing Activity (includes joint venture properties)
The following table summarizes the new and renewal lease activity by type for the nine months ended September 30, 2014:
� | GLA Analysis | Average Annualized Base Rents | |||||||||||||||||||
Property Type | New Leases | Renewal Leases | Total | New Leases | Renewal Leases | Total | |||||||||||||||
Mall Anchors | 75,187 | 75,187 | $ | 8.50 | $ | $ | 8.50 | ||||||||||||||
Mall Non-Anchors | 335,357 | 530,853 | 866,210 | $ | 30.21 | $ | 36.63 | $ | 33.97 | ||||||||||||
The following table summarizes the new and renewal lease activity and the comparative prior rents for the three and nine months ended September 30, 2014, for only those leases where the space was occupied in the previous 24 months:
� | GLA Analysis | Average Annualized Base Rents | ||||||||||||||||||||||||||||||||||
Property Type | New Leases | Renewal Leases | Total | New Leases | Prior Tenants | Renewal Leases | Prior Rent | Total New/Renewal | Total Prior Tenants/Rent | Percent Change in Base Rent | ||||||||||||||||||||||||||
Three months ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||
Mall Anchors | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||||||||||||
Mall Non-Anchors | 41,294 | 118,955 | 160,249 | $ | 34.28 | $ | 27.44 | $ | 30.93 | $ | 26.61 | $ | 31.79 | $ | 26.83 | 19 | % | |||||||||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||
Mall Anchors | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||||||||||||
Mall Non-Anchors | 122,406 | 402,726 | 525,132 | $ | 33.25 | $ | 27.54 | $ | 38.28 | $ | 32.39 | $ | 37.11 | $ | 31.26 | 19 | % | |||||||||||||||||||
15
MALL PORTFOLIO STATISTICS BY ASSET CATEGORY
as of September 30, 2014
TIER 1 | Property | Location | MSA Ranking | Total GLA (3) | Avg. Mall Store Sales PSF (1) Sept. 2014 | Avg. Mall Store Sales PSF (1) Sept. 2013 | Total Mall Occupancy 9/30/14 | Total Mall Occupancy 9/30/13 | % of Mall Portfolio NOI (2) | |||||||||||||||||
(Malls with highly productive tenant sales) | Arbor Hills Crossing (JV) | �Ann Arbor, MI | >100 | 87,395 | ||||||||||||||||||||||
Ashland Town Center | �Ashland, KY | >100 | 434,310 | |||||||||||||||||||||||
Dayton Mall | �Dayton, OH | 71 | 1,424,520 | |||||||||||||||||||||||
Grand Central Mall | �Parkersburg, WV | >100 | 848,400 | |||||||||||||||||||||||
Malibu Lumber Yard | �Malibu, CA | �2 | 31,471 | |||||||||||||||||||||||
Mall at Fairfield Commons | �Dayton, OH | 71 | 1,138,898 | |||||||||||||||||||||||
Mall at Johnson City | �Johnson City, TN | >100 | 571,069 | |||||||||||||||||||||||
Merritt Square Mall | �Merritt Island, FL | 98 | 810,714 | |||||||||||||||||||||||
Morgantown Mall | �Morgantown, WV | >100 | 555,222 | |||||||||||||||||||||||
Northtown Mall | �Minneapolis, MN | 16 | 543,405 | |||||||||||||||||||||||
Outlet Collection | Jersey Gardens | �Elizabeth, NJ | 1 | 1,309,009 | |||||||||||||||||||||||
Oklahoma City Properties (JV) | �Oklahoma City, OK | 42 | 287,573 | |||||||||||||||||||||||
Pearlridge Center | �Honolulu, HI | 54 | 1,140,428 | |||||||||||||||||||||||
Polaris Fashion Place | �Columbus, OH | 32 | 1,437,868 | |||||||||||||||||||||||
River Valley Mall | �Lancaster, OH | >100 | 521,796 | |||||||||||||||||||||||
Scottsdale Quarter | �Scottsdale, AZ | 13 | 541,637 | |||||||||||||||||||||||
Town Center Plaza (4) | �Leawood, KS | 30 | 605,599 | |||||||||||||||||||||||
University Park Village | �Fort Worth, TX | 4 | 154,026 | |||||||||||||||||||||||
Weberstown Mall | �Stockton, CA | 76 | 838,705 | |||||||||||||||||||||||
WestShore Plaza | �Tampa, FL | 18 | 1,076,526 | |||||||||||||||||||||||
14,358,571 | $ | 513 | $ | 502 | 96.9 | % | 95.4 | % | 92 | % | ||||||||||||||||
TIER 2 | Property | Location | MSA Ranking | Total GLA (3) | Avg. Mall Store Sales PSF (1) Sept. 2014 | Avg. Mall Store Sales PSF (1) Sept. 2013 | Total Mall Occupancy 9/30/14 | Total Mall Occupancy 9/30/13 | % of Mall Portfolio NOI (2) | |||||||||||||||||
(Malls with moderately productive tenant sales) | Colonial Park Mall | �Harrisburg, PA | 96 | 739,044 | ||||||||||||||||||||||
Indian Mound Mall | �Heath, OH | >100 | 556,814 | |||||||||||||||||||||||
New Towne Mall | �New Philadelphia, OH | �>100 | 509,704 | |||||||||||||||||||||||
Outlet Collection | Seattle | �Seattle, WA | 15 | 921,898 | |||||||||||||||||||||||
Puente Hills Mall (JV) | �City of Industry, CA | 2 | 1,107,941 | |||||||||||||||||||||||
3,835,401 | $ | 272 | $ | 260 | 94.2 | % | 93.3 | % | 8 | % | ||||||||||||||||
TOTAL MALL ASSETS | 18,193,972 | $ | 472 | $ | 465 | 96.3 | % | 95.0 | % | |||||||||||||||||
(1) | Sales for in-line stores with less than 10,000 square feet. |
(2) | Based on net operating income for the twelve months ended September 30, 2014 (pro-rata share for JV Malls). |
(3) | Included in the total GLA is 3,744,378 sf which is owned by the tenants. |
(4) | Included in the square footage amount is the square footage for both Town Center Plaza and Town Center Crossing. |
16
SUMMARY OF SIGNIFICANT TENANTS
As of September 30, 2014
Tenants Representing > 1.0% of Total Portfolio Annualized Minimum Rent
Tenant Name | Tenant DBA's in Portfolio | Number of Stores | GLA of Stores | Annualized Minimum Rent | % of Total Annualized Minimum Rent | ||||||||||
Signet Jewelers, Ltd. | Goodman Jewelers, J.B. Robinson, Jared's, Kay Jewelers, Leroy's Jewelers, Marks & Morgan, Ostermans' Jewelry, Piercing Pagoda, Zales Jewelers | 52 | 79,867 | $ | 6,302,515 | 2.7 | % | ||||||||
Limited Brands, Inc. | Bath & Body Works/White Barn Candle, Victoria's Secret, Victoria's Secret Sport | 48 | 212,508 | 6,256,157 | 2.6 | % | |||||||||
Gap, Inc. | Athleta, Banana Republic, Banana Republic Outlet, Gap, Gap Kids, Gap Outlet, Intermix, Old Navy | 27 | 297,149 | 6,087,744 | 2.6 | % | |||||||||
Bain Capital, LLC | Burlington Coat Factory, Cohoes Fashion, Crazy 8, Guitar Center, Gymboree, Janie & Jack | 24 | 441,778 | 4,960,020 | 2.1 | % | |||||||||
AMC Entertainment, Inc. | 2 | 148,344 | 4,269,000 | 1.8 | % | ||||||||||
Dick's Sporting Goods, Inc. | 7 | 382,244 | 4,163,322 | 1.8 | % | ||||||||||
Foot Locker, Inc. | Champs Sports, Foot Action USA, Footlocker, Kids Footlocker, Lady Footlocker | 32 | 133,266 | 3,717,387 | 1.6 | % | |||||||||
Sears Holding Corp. (1) | K-Mart, Sears | 16 | 2,150,914 | 3,696,801 | 1.6 | % | |||||||||
Genesco, Inc. | Buckeye Corner, Buckeye Room, Cardboard Heroes, Hat World, Johnston & Murphy, Journeys, Journeys Kidz, Lids, Lids Locker Room, Shi, Underground Station | 49 | 97,246 | 3,463,435 | 1.5 | % | |||||||||
Williams-Sonoma, Inc. | Pottery Barn, Pottery Barn Kids, West Elm, Williams-Sonoma | 12 | 106,831 | 3,329,585 | 1.4 | % | |||||||||
JCPenney Company, Inc. (1) | 13 | 1,548,939 | 3,185,532 | 1.3 | % | ||||||||||
American Eagle Outfitters, Inc. | aerie, American Eagle | 16 | 100,381 | 3,063,190 | 1.3 | % | |||||||||
Forever 21, Inc. | 8 | 185,998 | 3,045,253 | 1.3 | % | ||||||||||
The Bon-Ton Stores, Inc. | Bon-Ton, Elder Beerman, Elder Beerman for Her, Herbergers | 11 | 1,133,574 | 2,689,545 | 1.1 | % | |||||||||
Luxottica Group | Apex, Lenscrafters, Oakley, Pearle Vision, Shaded, Sunglass Hut | 33 | 74,793 | 2,627,083 | 1.1 | % | |||||||||
Golden Gate Capital | California Pizza Kitchen, Eddie Bauer, Express, Express Men, J. Jill, Red Lobster | 20 | 114,112 | 2,495,714 | 1.0 | % | |||||||||
Ascena Retail Group, Inc. | Dress Barn, Justice, Lane Bryant, Maurices, Brothers | 33 | 167,764 | 2,487,205 | 1.0 | % | |||||||||
Total tenants representing > 1.0% | 403 | 7,375,708 | $ | 65,839,488 | 27.8 | % | |||||||||
Note:��Information includes wholly-owned and joint venture properties.
(1) Does not include the associated auto centers.
17
TOP 10 REGIONAL MALL TENANTS
As of September 30, 2014
Mall Stores (ranked by percent of total minimum mall rents)
Tenant Name | Number of Stores | GLA of Stores | Annualized Minimum Rents | % of Total Annualized Minimum Mall Rents | ||||||||
Signet Jewelers, Ltd. | 52 | 79,867 | $ | 6,302,515 | 2.7 | % | ||||||
Limited Brands, Inc. | 48 | 212,508 | $ | 6,256,157 | 2.6 | % | ||||||
Gap, Inc. | 24 | 234,840 | $ | 4,862,338 | 2.1 | % | ||||||
Foot Locker, Inc. | 32 | 133,266 | $ | 3,717,387 | 1.6 | % | ||||||
Genesco, Inc. | 49 | 97,246 | $ | 3,463,435 | 1.5 | % | ||||||
Williams-Sonoma, Inc. | 12 | 106,831 | $ | 3,329,585 | 1.4 | % | ||||||
American Eagle Outfitters, Inc. | 16 | 100,381 | $ | 3,063,190 | 1.3 | % | ||||||
Luxottica Group | 33 | 74,793 | $ | 2,627,083 | 1.1 | % | ||||||
Golden Gate Capital | 19 | 114,112 | $ | 2,495,714 | 1.1 | % | ||||||
Ascena Retail Group, Inc. | 33 | 167,764 | $ | 2,487,205 | 1.1 | % | ||||||
Mall Anchors (ranked by total GLA)
Tenant Name | Number of Stores | GLA of Stores | Annualized Minimum Rents | % of Total Mall GLA | ||||||||
�Sears Holding Corp. | 15 | 2,016,247 | $ | 2,552,131 | 11.1 | % | ||||||
�JCPenney Company, Inc. | 13 | 1,548,939 | $ | 3,185,532 | 8.5 | % | ||||||
�Macy's, Inc. | 8 | 1,370,536 | $ | 403,967 | 7.5 | % | ||||||
�The Bon-Ton Stores, Inc. | 10 | 1,126,171 | $ | 2,685,141 | 6.2 | % | ||||||
�Belk, Inc. | 6 | 416,131 | $ | 1,876,852 | 2.3 | % | ||||||
�Bain Capital, LLC | 5 | 390,950 | $ | 3,643,330 | 2.1 | % | ||||||
�Dick's Sporting Goods, Inc. | 6 | 379,000 | $ | 4,163,322 | 2.1 | % | ||||||
�Dillard's | 2 | 292,997 | $ | 1.6 | % | |||||||
�Boscov's Department Store, LLC | 1 | 182,609 | $ | 1.0 | % | |||||||
�Wal-Mart Stores, Inc. | 1 | 154,154 | $ | 800,004 | 0.8 | % | ||||||
Note:��Information includes wholly-owned and joint venture properties.
18
LEASE EXPIRATION SCHEDULE
As of September 30, 2014
Total Portfolio
Lease Expiration Year | Number of Leases | Anchor Square Feet of GLA Expiring | Non-Anchor Square Feet of GLA Expiring | Total Square Feet of GLA Expiring | Percent of Occupied GLA Represented by Expiring Leases | Anchor Annualized Base Rents Expiring | Non-Anchor Annualized Base Rents Expiring | Total Annualized Base Rents Expiring | Anchor Annualized Base Rents/ Square Foot Expiring (1) | Non-Anchor Annualized Base Rents/ Square Foot Expiring (1) | Percent of Annualized Base Rents Represented by Expiring Leases | |||||||||||||||||||||||||||
2014 | 165 | 173,119 | 345,035 | 518,154 | 2.9 | % | $ | 744,636 | $ | 7,112,317 | $ | 7,856,953 | $ | 4.30 | $ | 22.66 | 3.3 | % | ||||||||||||||||||||
2015 | 460 | 348,278 | 1,175,148 | 1,523,426 | 8.6 | % | 2,000,835 | 22,510,051 | 24,510,886 | $ | 5.74 | $ | 21.61 | 10.3 | % | |||||||||||||||||||||||
2016 | 365 | 930,911 | 901,307 | 1,832,218 | 10.3 | % | 6,037,616 | 22,683,515 | 28,721,131 | $ | 7.06 | $ | 27.79 | 12.1 | % | |||||||||||||||||||||||
2017 | 291 | 997,851 | 783,441 | 1,781,292 | 10.0 | % | 5,391,912 | 19,962,631 | 25,354,543 | $ | 5.78 | $ | 28.40 | 10.7 | % | |||||||||||||||||||||||
2018 | 214 | 718,322 | 703,760 | 1,422,082 | 8.0 | % | 4,370,342 | 19,945,996 | 24,316,338 | $ | 6.08 | $ | 29.86 | 10.2 | % | |||||||||||||||||||||||
�Thereafter | 823 | 7,629,854 | 3,039,838 | 10,669,692 | 60.2 | % | 37,810,418 | 89,160,876 | 126,971,294 | $ | 9.31 | $ | 31.91 | 53.4 | % | |||||||||||||||||||||||
2,318 | 10,798,335 | 6,948,529 | 17,746,864 | 100.0 | % | $ | 56,355,759 | $ | 181,375,386 | $ | 237,731,145 | $ | 7.95 | $ | 28.62 | 100.0 | % | |||||||||||||||||||||
(1) The base rents per square foot calculation excludes outlot and ground leases that do not pay rents or pay nominal amounts for rents.
Note:��Information includes wholly-owned and joint venture properties.
19
CAPITAL EXPENDITURES
(dollars in thousands)
� | Three months ended September 30, 2014 | Three months ended September 30, 2013 | ||||||||||||||||||||||
Consolidated Properties 2014 | Unconsolidated Joint Venture Proportionate Share | Total | Consolidated Properties 2013 | Unconsolidated Joint Venture Proportionate Share | Total | |||||||||||||||||||
Total Redevelopments, Renovations, and Anchor Store Improvements and Allowances | $ | 17,300 | $ | $ | 17,300 | $ | 19,235 | $ | 179 | $ | 19,414 | |||||||||||||
Property Capital Expenditures: | ||||||||||||||||||||||||
����Non-Anchor stores tenant improvements and allowances | $ | 4,172 | $ | 158 | $ | 4,330 | $ | 2,823 | $ | 8 | $ | 2,831 | ||||||||||||
���Operational capital expenditures | 2,872 | 80 | 2,952 | 1,887 | 131 | 2,018 | ||||||||||||||||||
Total Property Capital Expenditures | $ | 7,044 | $ | 238 | $ | 7,282 | $ | 4,710 | $ | 139 | $ | 4,849 | ||||||||||||
� | Nine months ended September 30, 2014 | Nine months ended September 30, 2013 | ||||||||||||||||||||||
Consolidated Properties 2014 | Unconsolidated Joint Venture Proportionate Share | Total | Consolidated Properties 2013 | Unconsolidated Joint Venture Proportionate Share | Total | |||||||||||||||||||
Total Redevelopments, Renovations, and Anchor Store Improvements and Allowances | $ | 39,979 | $ | $ | 39,979 | $ | 47,953 | $ | 1,862 | $ | 49,815 | |||||||||||||
Property Capital Expenditures: | ||||||||||||||||||||||||
����Non-Anchor stores tenant improvements and allowances | $ | 11,425 | $ | 173 | $ | 11,598 | $ | 9,773 | $ | 1,152 | $ | 10,925 | ||||||||||||
���Operational capital expenditures | 6,753 | 80 | 6,833 | 3,861 | 159 | 4,020 | ||||||||||||||||||
Total Property Capital Expenditures | $ | 18,178 | $ | 253 | $ | 18,431 | $ | 13,634 | $ | 1,311 | $ | 14,945 | ||||||||||||
20
DEVELOPMENT ACTIVITY
(dollars in thousands)
Project | Description | Estimated Total Project Costs (1) | Project Costs Incurred thru 9/30/2014 (1) | Opening Date | Estimated Project Yield | |||||||
PROPERTY DEVELOPMENT AND ANCHOR RE-TENANTING: | � | � | � | |||||||||
� | � | � | ||||||||||
Scottsdale Quarter - Phase III Scottsdale, Arizona | Multi-use addition to existing center | �$130,000 - $140,000 | $ | 29,300 | 2015/2016 | 7% - 8% | ||||||
Three new H&M stores Dayton, Ohio and Stockton, California | New stores at Dayton Mall, Mall at Fairfield Commons, and Weberstown Mall | $8,000 | $ | 4,700 | Q4-2014 | 8% - 9% | ||||||
Mall at Fairfield Commons Anchor Redevelopment Dayton, Ohio | Demolish former department store and replace with a cluster of restaurants | $18,000 | $ | 24 | 2015 | 7% - 8% | ||||||
(1) Project costs exclude the allocation of internal costs such as labor, interest, and taxes.
Note: Anticipated opening date, estimated project costs and project yield are subject to adjustment as a result of changes (some of which are not under the�direct control of the company)�that are inherent in the development process.
21
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