Attached files
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| 8-K - FORM 8-K DATED MAY 7, 2013 - AmREIT, Inc. | amreit132211_8-k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
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FOR INFORMATION CONTACT: |
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Chad C. Braun (cbraun@amreit.com) |
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AmREIT, (713) 850-1400 |
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AmREIT
REPORTS FIRST QUARTER RESULTS AND
SECOND QUARTER DIVIDEND
HOUSTON, May 7, 2013 – AmREIT, Inc. (NYSE:AMRE) (“AmREIT” or the “Company”), today announced financial results for the first quarter ended March 31, 2013 and dividends for the second quarter ended June 30, 2013.
First Quarter Highlights:
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Core Funds from Operations (“Core FFO”) available to common stockholders for the first quarter of 2013 was $4.3 million, or $0.27 per share, compared to $3.6 million, or $0.31 per share for the comparable period in 2012. |
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FFO available to common stockholders for the first quarter of 2013 was $4.1 million, or $0.26 per share, compared to $3.6 million, or $0.31 per share for the comparable period in 2012. Included in 2013 FFO was $164,000 in acquisition costs related to the MacArthur Park joint venture with Goldman Sachs. |
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Net income available to common stockholders for the first quarter of 2013 was $8.4 million, or $0.53 per share, compared to $1.3 million, or $0.11 per share, for the same period in 2012. Included in net income for the 2013 period was a $7.7 million gain on sale related to the sale of MacArthur Park and Pads into the joint venture with Goldman Sachs. |
FFO and Core FFO are non-GAAP supplemental earnings measures that AmREIT considers meaningful in measuring its operating performance. Further explanation and a reconciliation of FFO and Core FFO to net income is attached to this press release.
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In the first quarter of 2013, same-store net operating income (“NOI”) increased 1.3% over the prior year period. During the period from January 1, 2010 through March 31, 2013, our same-store NOI has increased 3.0%. |
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Portfolio occupancy as of March 31, 2013 was 96.5%, a decrease of approximately 20 basis points as compared to portfolio occupancy of 96.7% as of December 31, 2012. On a leased basis (executed leases but where rent has not yet commenced), the portfolio was 97.2% leased as of March 31, 2013, with anticipated rent commencement during the second quarter. |
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During the first quarter of 2013, AmREIT signed 14 leases for 28,201 square feet of gross leasable area, including both new and renewal leases, and cash leasing spreads (i.e. new leasing rate per square foot compared to the expiring leasing rate per square foot) increased 6.7% for renewals and increased 41.4% for new comparable leases. On a GAAP basis (which includes the effects of straight-line rent), leasing spreads increased 10.2% on renewals and 56.4% on new comparable leases. |
NOI is a non-GAAP supplemental earnings measure that AmREIT considers meaningful in measuring its operating performance. Further explanation and a reconciliation of NOI to net income is attached to this press release.
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AmREIT also announced today that the Company’s Board of Directors has approved a regular quarterly cash dividend of $0.20 per share. The dividend will be paid on June 28, 2013 to all common stockholders of record on June 18, 2013. |
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On March 26, 2013, we completed the entry into a joint venture (the Venture) with Goldman Sachs, in which the Venture acquired AmREIT’s MacArthur Park and Pads shopping centers located in Dallas Texas, along with the neighboring MacArthur Park Phase I shopping center from a third party. The Venture is a 70/30 joint venture whereby Goldman Sachs contributed cash for a 70% interest in the joint venture and AmREIT retained a 30% interest. The Venture placed mortgage financing on the entire combined property of approximately $43.9 million. At closing, AmREIT received net cash proceeds of approximately $35.6 million, which were used to repay borrowings under our unsecured credit facility. AmREIT will continue to manage and lease MacArthur Park on behalf of the joint venture and will retain a right of first offer to acquire the project in the future, after a lock-out period. |
“I am pleased to report AmREIT posted solid results for the quarter, as our team advanced each of the four strategic initiatives set out in our IPO,” said H. Kerr Taylor, Chairman and Chief Executive Officer of AmREIT. “First, internal growth through portfolio operations grew as same store NOI for the quarter was 1.3% and 3.0% since 2010; Second, growth within core markets was active with another Irreplaceable Corner property being placed under contract; Third, organic growth through incremental redevelopment continued with the launch of marketing for the first major densification project within Uptown Park; and Fourth, accretive capital recycling was realized through a joint venture with Goldman Sachs.”
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We reiterate our full year 2013 Core FFO and FFO guidance per share is as follows: |
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Projected 2013 Range |
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High |
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Low |
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Core FFO |
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$ |
1.07 |
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$ |
1.02 |
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FFO |
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$ |
0.98 |
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$ |
0.93 |
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AmREIT held its Annual Meeting of Stockholders at 10:00 AM Central Daylight Time on April 18, 2013. |
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At the Annual Meeting of Stockholders, stockholders approved, among other items, two charter amendments that, when taken together, had the effect of exchanging all of our issued and unissued shares of Class A common stock into shares of Class B common stock, on a one-for-one basis. We then renamed our Class B common stock to common stock, which are all now listed on the New York Stock Exchange. |
Conference Call
AmREIT will hold its quarterly conference call to discuss the results of its first quarter of 2013 on Wednesday, May 8, 2013, at 10:00 a.m. Central Daylight Time (11:00 a.m. Eastern Daylight Time). To participate in the quarterly conference call, please call 1-888-317-6016 approximately 10 minutes before the scheduled start time. The conference call will be recorded and a replay of the call will be available via webcast shortly after the call concludes.
The conference call will also be webcast live at www.amreit.com and can be accessed under the Investors tab of the Company’s website. A telephonic replay of the conference call will be available for 14 days following the conference call. To access the telephonic replay of the conference call, dial 1-877-344-7529 and enter passcode 10027417.
2
Supplemental Financial Information
Further details regarding AmREIT’s results of operations, properties, and tenants are attached to this press release and can be accessed at the Company’s web site at www.amreit.com.
About AmREIT
AmREIT believes it has one of the highest quality grocery and drugstore anchored retail portfolios in the REIT sector. AmREIT’s 29 year-old established platform has localized acquisition, operation and redevelopment expertise in the most densely populated and affluent submarkets of five of the top markets in the U.S.: Houston, Dallas, San Antonio, Austin and Atlanta. Texas is one of the best performing economies in the country and 92% of AmREIT’s income for the year ended December 31, 2012 was generated by its properties located in this market. AmREIT’s management team has in-depth knowledge and extensive relationship advantages within its markets. AmREIT’s portfolio was 96.5% occupied as of March 31, 2013, and its top five tenants include Kroger, Landry’s, CVS/Pharmacy, H-E-B and Publix. AmREIT also has access to an acquisition pipeline through its value add joint ventures, including three leading institutional investors who partner with the company as local experts. AmREIT’s common stock is traded on the New York Stock Exchange under the symbol “AMRE.” For more information, please visit www.amreit.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including statements related to full year 2013 Core FFO and FFO financial projections and the underlying assumptions of such projections stated herein. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases, which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect AmREIT’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Furthermore, AmREIT disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact AmREIT’s future results, performance or transactions, see the section entitled “Risk Factors” in AmREIT’s final prospectus dated July 26, 2012, filed with the Securities and Exchange Commission on July 27, 2012 and other risks described in documents subsequently filed by AmREIT from time to time with the Securities and Exchange Commission.
Investor Contact
For more information, call Chad Braun, Chief Operating Officer and Chief Financial Officer of AmREIT, at (713) 850-1400. AmREIT is online at www.amreit.com.
3
AmREIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share data)
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March 31, |
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December 31, |
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ASSETS |
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Real estate investments at cost: |
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Land |
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$ |
131,877 |
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$ |
147,460 |
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Buildings |
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191,743 |
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222,679 |
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Tenant improvements |
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13,540 |
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17,386 |
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337,160 |
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387,525 |
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Less accumulated depreciation and amortization |
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(32,635 |
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(39,820 |
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304,525 |
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347,705 |
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Acquired lease intangibles, net |
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13,331 |
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15,976 |
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Investments in Advised Funds |
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16,759 |
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7,953 |
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Net real estate investments |
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334,615 |
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371,634 |
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Cash and cash equivalents |
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4,913 |
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2,992 |
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Tenant and accounts receivable, net |
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5,246 |
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5,566 |
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Accounts receivable - related party, net |
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1,019 |
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821 |
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Notes receivable, net |
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2,773 |
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2,731 |
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Notes receivable - related party, net |
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7,074 |
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6,748 |
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Deferred costs, net |
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3,144 |
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3,696 |
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Other assets |
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1,460 |
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3,206 |
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TOTAL ASSETS |
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$ |
360,244 |
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$ |
397,394 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Liabilities: |
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Notes payable |
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$ |
181,096 |
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$ |
218,579 |
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Accounts payable and other liabilities |
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5,441 |
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9,593 |
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Acquired below-market lease intangibles, net |
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2,563 |
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3,507 |
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TOTAL LIABILITIES |
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189,100 |
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231,679 |
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Stockholders’ equity: |
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Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued |
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- |
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- |
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Class A common stock, $0.01 par value, 100,000,000 shares authorized, 11,657,563 shares issued and outstanding as of March 31, 2013, and December 31, 2012 |
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117 |
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117 |
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Class B common stock, $0.01 par value, 900,000,000 shares authorized, 4,512,225 and 4,465,725 shares issued and outstanding as of March 31, 2013, and December 31, 2012, respectively |
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45 |
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45 |
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Capital in excess of par value |
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245,670 |
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245,403 |
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Accumulated distributions in excess of earnings |
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(74,688 |
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(79,850 |
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TOTAL STOCKHOLDERS’ EQUITY |
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171,144 |
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165,715 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
360,244 |
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$ |
397,394 |
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4
AmREIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per
share data)
(unaudited)
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Three months ended March 31, |
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2013 |
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2012 |
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Revenues: |
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Rental income from operating leases |
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$ |
11,074 |
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$ |
8,929 |
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Advisory services income - related party |
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843 |
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1,131 |
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Total revenues |
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11,917 |
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10,060 |
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Expenses: |
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General and administrative |
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1,951 |
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1,484 |
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Property expense |
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3,119 |
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2,213 |
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Legal and professional |
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252 |
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221 |
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Real estate commissions |
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52 |
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86 |
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Depreciation and amortization |
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3,299 |
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2,227 |
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Total expenses |
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8,673 |
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6,231 |
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Operating income |
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3,244 |
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3,829 |
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Other income (expense): |
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Gain on sale of real estate acquired for investment |
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7,696 |
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- |
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Interest and other income |
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113 |
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102 |
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Interest and other income - related party |
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56 |
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72 |
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Loss from Advised Funds |
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(148 |
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(36 |
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State income taxes |
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(72 |
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(76 |
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Interest expense |
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(2,493 |
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(2,634 |
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Net income |
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$ |
8,396 |
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$ |
1,257 |
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Net income per share of common stock - basic and diluted |
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$ |
0.53 |
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$ |
0.11 |
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Weighted average shares of common stock used to compute net income per share, basic and diluted |
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15,590 |
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11,374 |
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Distributions per share of common stock |
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$ |
0.20 |
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$ |
0.20 |
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5
Summary of Operating Results (in thousands except per share data):
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Three months ended March 31, |
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Funds from operations (“FFO”) |
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2013 |
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2012 |
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Net income |
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$ |
8,396 |
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$ |
1,257 |
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Add: |
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Depreciation of real estate assets - from operations |
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3,286 |
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2,213 |
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Depreciation of real estate assets for nonconsolidated affiliates |
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153 |
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157 |
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Less: |
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Gain on sale of real estate acquired for investment |
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(7,696 |
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- |
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Total FFO available to stockholders |
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$ |
4,139 |
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$ |
3,627 |
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Weighted average shares outstanding(1) |
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16,132 |
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11,607 |
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Total FFO per share |
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$ |
0.26 |
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$ |
0.31 |
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Core funds from operations (“Core FFO”) |
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Total FFO available to stockholders |
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$ |
4,139 |
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$ |
3,627 |
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Add: |
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Acquisition costs for nonconsolidated affiliates |
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164 |
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- |
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Total Core FFO available to stockholders |
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$ |
4,303 |
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$ |
3,627 |
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Weighted average shares outstanding(1) |
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16,132 |
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11,607 |
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Total Core FFO per share |
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$ |
0.27 |
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$ |
0.31 |
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Adjusted funds from operations (“AFFO”) |
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Total Core FFO available to stockholders |
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$ |
4,303 |
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$ |
3,627 |
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Add: |
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Depreciation of non-real estate assets |
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13 |
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14 |
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Amortization of deferred financing costs |
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102 |
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94 |
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Stock-based compensation |
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267 |
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144 |
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Bad debt expense related to straight-line rent |
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4 |
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- |
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Less: |
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Straight-line rent and above/below market rent |
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(263 |
) |
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(89 |
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Bad debt recoveries related to straight-line rent |
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- |
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(75 |
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Amortization of above-market debt |
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(29 |
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(31 |
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Total AFFO available to stockholders |
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$ |
4,397 |
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$ |
3,684 |
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Weighted average shares outstanding(1) |
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16,132 |
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11,607 |
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Total AFFO per share |
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$ |
0.27 |
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$ |
0.32 |
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Dividends |
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Regular common dividends per share |
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$ |
0.20 |
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$ |
0.20 |
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Payout ratio - Core FFO |
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74.1 |
% |
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64.5 |
% |
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(1) |
Weighted average shares outstanding reflects the weighted average of all shares of common stock outstanding during the period including our non-vested shares. Weighted average shares of common stock outstanding used to compute net income per share under GAAP pursuant to the “two class method” includes only vested shares of common stock. Our reconciliation of weighted average shares used to compute net income per share, basic and diluted, on our consolidated statements of operations to weighted average shares used to compute FFO per share above is as follows: |
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Three months ended March 31, |
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2013 |
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2012 |
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Weighted average shares used to compute net income per share, basic and diluted |
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15,590 |
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11,374 |
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Weighted average shares of restricted common stock oustanding |
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542 |
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233 |
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Weighted average shares used to compute FFO per share |
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16,132 |
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11,607 |
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6
Same Store Property Analysis (in thousands except for number of properties, percentages and per share data):
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Three months ended March 31, |
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2013 |
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2012 |
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Change $ |
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Change % |
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Same store properties (27 properties) |
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Rental income (1) |
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$ |
5,740 |
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$ |
5,731 |
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$ |
9 |
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0.2 |
% |
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Recovery income (1) |
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2,075 |
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1,820 |
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255 |
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14.0 |
% |
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Percentage rent (1) |
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14 |
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32 |
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(18 |
) |
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(56.3 |
)% |
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Less: |
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Property expenses |
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2,099 |
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1,924 |
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(175 |
) |
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(9.1 |
)% |
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Same store net operating income |
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5,730 |
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5,659 |
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71 |
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1.3 |
% |
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Same store occupancy at end of period(2) |
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96.4 |
% |
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98.5 |
% |
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n/a |
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(2.1 |
)% |
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Non-same store properties (4 properties) |
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Rental income (1) |
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2,170 |
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|
942 |
|
|
1,228 |
|
|
130.4 |
% |
|
Recovery income (1) |
|
|
792 |
|
|
315 |
|
|
477 |
|
|
151.4 |
% |
|
Percentage rent (1) |
|
|
20 |
|
|
- |
|
|
20 |
|
|
* |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property expenses |
|
|
1,016 |
|
|
364 |
|
|
(652 |
) |
|
(179.1 |
)% |
|
Non-same store net operating income |
|
|
1,966 |
|
|
893 |
|
|
1,073 |
|
|
120.2 |
% |
|
Total net operating income |
|
|
7,696 |
|
|
6,552 |
|
|
1,144 |
|
|
17.5 |
% |
|
|
|||||||||||||
|
Total occupancy at end of period(2) |
|
|
96.5 |
% |
|
95.9 |
% |
|
n/a |
|
|
0.6 |
% |
|
|
|||||||||||||
|
Other revenues: |
|
|
8,971 |
|
|
1,394 |
|
|
7,577 |
|
|
* |
|
|
|
|||||||||||||
|
Less other expenses: |
|
|
8,271 |
|
|
6,689 |
|
|
(1,582 |
) |
|
(23.7 |
)% |
|
|
|||||||||||||
|
Net income |
|
$ |
8,396 |
|
$ |
1,257 |
|
$ |
7,139 |
|
|
* |
|
|
|
|
|
|
|
|
(1) |
Rental income from operating leases is comprised of rental income, recovery income and percentage rent from same store properties, rental income and recovery income from non-same store properties and amortization of straight-line rents and above/below market rents. For the three months ended March 31, 2013 and 2012, rental income from operating leases was $11,074 and $8,929, respectively. |
|
|
|
|
|
|
|
|
(2) |
Percent occupied is calculated as (i) GLA under commenced leases as of March 31, 2013 or 2012, divided by (ii) total GLA as of such dates, expressed as a percentage. |
|
|
|
|
|
|
|
|
* |
Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful. |
|
7
Summary of Capital Expenditures (in thousands except per share data):
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
||||
|
|
|
2013 |
|
2012 |
|
||
|
Non-maintenance capital expenditures: |
|
|
|
|
|
|
|
|
Tenant improvements and leasing commissions |
|
$ |
450 |
|
$ |
797 |
|
|
Development, redevelopment and expansion |
|
|
26 |
|
|
332 |
|
|
Total non-maintenance capital expenditures |
|
$ |
476 |
|
$ |
1,129 |
|
|
|
|||||||
|
Maintenance capital expenditures |
|
|
- |
|
|
- |
|
|
Total capital expenditures |
|
$ |
476 |
|
$ |
1,129 |
|
Rental Income from Operating Leases (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
||||
|
|
|
2013 |
|
2012 |
|
||
|
Base minimum rent |
|
$ |
7,910 |
|
$ |
6,673 |
|
|
Straight-line rent adjustments |
|
|
155 |
|
|
36 |
|
|
Amortization of above/below market rent |
|
|
108 |
|
|
53 |
|
|
Percentage rent |
|
|
34 |
|
|
32 |
|
|
Recovery income |
|
|
2,867 |
|
|
2,135 |
|
|
Rental income from operating leases |
|
$ |
11,074 |
|
$ |
8,929 |
|
Advisory Services Income – Related Party (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
||||
|
|
|
2013 |
|
2012 |
|
||
|
Leasing commission income |
|
$ |
142 |
|
$ |
214 |
|
|
Brokerage commission income |
|
|
- |
|
|
255 |
|
|
Property management fee income |
|
|
365 |
|
|
309 |
|
|
Development fee income |
|
|
121 |
|
|
140 |
|
|
Asset management fee income |
|
|
155 |
|
|
155 |
|
|
Construction management fee income |
|
|
60 |
|
|
58 |
|
|
Advisory services income - related party |
|
$ |
843 |
|
$ |
1,131 |
|
|
|
|||||||
|
Reimbursements of administrative costs |
|
$ |
192 |
|
$ |
211 |
|
8
Capitalization Data (in thousands, except per share data):
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
||||
|
|
|
March 31, |
|
December 31, |
|
||
|
Equity capitalization - |
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
16,170 |
|
|
16,123 |
|
|
NYSE closing price(1) |
|
$ |
19.46 |
|
$ |
17.15 |
|
|
Total equity capitalization |
|
$ |
314,668 |
|
$ |
276,509 |
|
|
|
|||||||
|
Debt capitalization - |
|
|
|
|
|
|
|
|
Variable rate line of credit |
|
$ |
3,000 |
|
$ |
33,500 |
|
|
Fixed rate mortgage loans |
|
|
178,096 |
|
|
185,079 |
|
|
Variable rate mortgage loans |
|
|
- |
|
|
- |
|
|
Total debt capitalization |
|
$ |
181,096 |
|
$ |
218,579 |
|
|
|
|
|
|
|
|
|
|
|
Total capitalization |
|
$ |
495,764 |
|
$ |
495,088 |
|
|
|
|||||||
|
Debt statistics - |
|
|
|
|
|
|
|
|
Total debt to total capitalization |
|
|
36.5 |
% |
|
44.1 |
% |
|
Ratio of EBITDA to combined fixed charges(1) |
|
|
5.12 |
(2) |
|
2.16 |
|
|
|
|
|
|
|
|
(1) |
Represents the last reported price per share of Class B common stock on the New York Stock Exchange on the applicable date. |
|
|
|
(2) |
EBITDA includes a gain of $7.7 million on the sale of real estate held for investment. Excluding this gain, the ratio of EBITDA to combined fixed charges is 2.36. |
|
9
Outstanding Debt and Terms:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmREIT |
|
|
|
|
|
|
|
|
|
|
||||
|
Description |
|
Amount |
|
Interest Rate |
|
Annual Debt |
|
Maturity |
|
% of total |
|
Weighted |
|
||||||
|
Property Mortgages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
500 Lamar |
|
|
1,607 |
|
|
6.00% |
|
$ |
96 |
|
|
2/1/2015 |
|
|
|
|
|
|
|
|
Uptown Park |
|
|
49,000 |
|
|
5.37% |
|
|
2,631 |
|
|
6/1/2015 |
|
|
|
|
|
|
|
|
2015 Maturities |
|
|
50,607 |
|
|
|
|
|
|
|
|
|
|
|
27.99 |
% |
|
5.39 |
% |
|
|
|||||||||||||||||||
|
Plaza in the Park |
|
|
23,250 |
|
|
3.45% |
|
|
802 |
|
|
1/1/2016 |
|
|
|
|
|
|
|
|
Market at Lake Houston |
|
|
15,675 |
|
|
5.75% |
|
|
901 |
|
|
1/1/2016 |
|
|
|
|
|
|
|
|
Cinco Ranch |
|
|
9,750 |
|
|
3.45% |
|
|
336 |
|
|
1/1/2016 |
|
|
|
|
|
|
|
|
Southbank - Riverwalk |
|
|
20,000 |
|
|
5.91% |
|
|
1,182 |
|
|
6/1/2016 |
|
|
|
|
|
|
|
|
2016 Maturities |
|
|
68,675 |
|
|
|
|
|
|
|
|
|
|
|
37.98 |
% |
|
4.69 |
% |
|
|
|||||||||||||||||||
|
Bakery Square |
|
|
1,916 |
|
|
8.00% |
|
|
153 |
|
|
2/10/2017 |
|
|
|
|
|
|
|
|
2017 Maturities |
|
|
1,916 |
|
|
|
|
|
|
|
|
|
|
|
1.06 |
% |
|
8.00 |
% |
|
|
|||||||||||||||||||
|
Alpharetta Commons |
|
|
12,179 |
|
|
4.54% |
|
|
553 |
|
|
8/1/2018 |
|
|
|
|
|
|
|
|
2018 Maturities |
|
|
12,179 |
|
|
|
|
|
|
|
|
|
|
|
6.74 |
% |
|
4.54 |
% |
|
|
|||||||||||||||||||
|
Preston Royal Northwest |
|
|
23,322 |
|
|
3.21% |
|
|
749 |
|
|
1/1/2020 |
|
|
|
|
|
|
|
|
2020 Maturities |
|
|
23,322 |
|
|
|
|
|
|
|
|
|
|
|
12.90 |
% |
|
3.21 |
% |
|
|
|||||||||||||||||||
|
Brookwood Village |
|
|
7,245 |
|
|
5.40% |
|
|
391 |
|
|
2/10/2022 |
|
|
|
|
|
|
|
|
Uptown Plaza - Dallas |
|
|
13,864 |
|
|
4.25% |
|
|
589 |
|
|
8/10/2022 |
|
|
|
|
|
|
|
|
2022 Maturities |
|
|
21,109 |
|
|
|
|
|
|
|
|
|
|
|
11.67 |
% |
|
4.64 |
% |
|
|
|||||||||||||||||||
|
Corporate debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
$75.0 million Facility(1) |
|
$ |
3,000 |
|
|
(1) |
|
$ |
320 |
|
|
8/1/2015 |
|
|
1.66 |
% |
|
(1) |
|
|
|
|||||||||||||||||||
|
Total Maturities(2) |
|
|
180,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Fixed-rate debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average fixed rate |
|
|
|
|
|
4.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average years to maturity |
|
|
|
|
|
4.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The $75.0 million Facility bears interest at LIBOR plus a margin of 205 basis points to 275 basis points, depending on our leverage, and carries a fee equal to 0.35% of the unused portion of the total amount available under the facility. Annual debt service assumes current amount outstanding as well as current interest rates remain constant. |
|
|
|
(2) |
Total maturities above are $288 less than total debt as reported in our consolidated balance sheets as of March 31, 2013, due to the premium recorded on above-market debt assumed in conjunction with certain of our property acquisitions. |
|
10
Wholly Owned Property and Tenant Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
Property |
|
Year Built / |
|
GLA |
|
Percent |
|
Percent |
|
Annualized Base |
|
Annualized |
|
Average Net |
Key Tenants |
|||||||
|
Neighborhood and Community Shopping Centers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Uptown Park |
|
Houston, TX |
|
1999/2005 |
|
|
169,112 |
|
|
96.1 |
% |
|
97.5 |
% |
$ |
5,580,283 |
|
$ |
34.35 |
|
$ |
34.46 |
|
Champps, McCormick & Schmicks (owned by Landry’s) |
|
Plaza in the Park |
|
Houston, TX |
|
1999/2009 |
|
|
144,054 |
|
|
97.4 |
% |
|
97.4 |
% |
|
2,768,226 |
|
|
19.74 |
|
|
20.16 |
|
Kroger |
|
Preston Royal East |
|
Dallas, TX |
|
1956 |
|
|
107,914 |
|
|
93.9 |
% |
|
93.9 |
% |
|
2,565,068 |
|
|
25.32 |
|
|
26.67 |
|
Bank of America, Starbucks, FedEx Office |
|
Preston Royal West |
|
Dallas, TX |
|
1959 |
|
|
122,564 |
|
|
98.8 |
% |
|
98.8 |
% |
|
2,449,762 |
|
|
20.24 |
|
|
22.22 |
|
Tom Thumb, Barnes & Noble, Spec’s |
|
Southbank |
|
San Antonio, TX |
|
1995 |
|
|
46,673 |
|
|
96.0 |
% |
|
96.0 |
% |
|
1,666,699 |
|
|
37.19 |
|
|
39.49 |
|
Hard Rock Café |
|
The Market at Lake Houston |
|
Houston, TX |
|
2000 |
|
|
101,799 |
|
|
100.0 |
% |
|
100.0 |
% |
|
1,616,350 |
|
|
15.88 |
|
|
15.91 |
|
H-E-B, Five Guys |
|
Uptown Plaza - Dallas |
|
Dallas, TX |
|
2006 |
|
|
33,840 |
|
|
100.0 |
% |
|
100.0 |
% |
|
1,454,870 |
|
|
42.99 |
|
|
43.64 |
|
Morton’s (owned by Landry’s), Wells Fargo |
|
Alpharetta Commons |
|
Atlanta, GA |
|
1997 |
|
|
94,544 |
|
|
98.7 |
% |
|
98.7 |
% |
|
1,327,270 |
|
|
14.22 |
|
|
14.36 |
|
Publix |
|
Cinco Ranch |
|
Houston, TX |
|
2001 |
|
|
97,297 |
|
|
100.0 |
% |
|
100.0 |
% |
|
1,319,744 |
|
|
13.56 |
|
|
13.69 |
|
Kroger |
|
Uptown Plaza - Houston |
|
Houston, TX |
|
2002 |
|
|
28,000 |
|
|
100.0 |
% |
|
100.0 |
% |
|
1,315,746 |
|
|
46.99 |
|
|
46.10 |
|
CVS/pharmacy, The Grotto (owned by Landry’s) |
|
Bakery Square |
|
Houston, TX |
|
1996 |
|
|
34,614 |
|
|
94.2 |
% |
|
100.0 |
% |
|
916,211 |
|
|
28.09 |
|
|
28.21 |
|
Walgreens, Boston Market |
|
Brookwood Village |
|
Atlanta, GA |
|
1941/2000 |
|
|
28,774 |
|
|
87.9 |
% |
|
87.9 |
% |
|
649,959 |
|
|
25.68 |
|
|
26.78 |
|
CVS/pharmacy, Subway |
|
Courtyard on Post Oak |
|
Houston, TX |
|
1994 |
|
|
13,597 |
|
|
29.5 |
% |
|
29.5 |
% |
|
260,845 |
|
|
65.00 |
|
|
61.41 |
|
Verizon |
|
Woodlands Plaza |
|
Houston, TX |
|
1997/2003 |
|
|
20,018 |
|
|
73.8 |
% |
|
97.9 |
% |
|
347,665 |
|
|
23.53 |
|
|
23.45 |
|
FedEx Office, Freebirds World Burrito |
|
Terrace Shops |
|
Houston, TX |
|
2000 |
|
|
16,395 |
|
|
91.3 |
% |
|
91.3 |
% |
|
456,682 |
|
|
30.50 |
|
|
31.34 |
|
Starbucks |
|
Sugarland Plaza |
|
Houston, TX |
|
1998/2001 |
|
|
16,750 |
|
|
100.0 |
% |
|
100.0 |
% |
|
402,188 |
|
|
24.01 |
|
|
23.45 |
|
Memorial Hermann |
|
500 Lamar |
|
Austin, TX |
|
1998 |
|
|
12,795 |
|
|
100.0 |
% |
|
100.0 |
% |
|
405,777 |
|
|
31.71 |
|
|
32.53 |
|
Title Nine Sports |
|
Neighborhood and Community Shopping Centers Subtotal/Weighted Average |
|
|
|
1,088,740 |
|
|
96.0 |
% |
|
96.9 |
% |
$ |
25,503,343 |
|
$ |
24.40 |
|
$ |
24.98 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single Tenant (Ground Leases)(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVS/Pharmacy |
|
Houston, TX |
|
2003 |
|
|
13,824 |
|
|
100.0 |
% |
|
100.0 |
% |
$ |
327,167 |
|
$ |
23.67 |
|
$ |
23.67 |
|
CVS/pharmacy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jared The Galleria of Jewelery |
|
Houston, TX |
|
2012 |
|
|
6,057 |
|
|
100.0 |
% |
|
100.0 |
% |
|
180,000 |
|
|
29.72 |
|
|
34.48 |
|
Jared The Galleria of Jewelery |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Citibank |
|
San Antonio, TX |
|
2005 |
|
|
4,439 |
|
|
100.0 |
% |
|
100.0 |
% |
|
160,000 |
|
|
36.04 |
|
|
36.04 |
|
Citibank |
|
Landry’s Seafood |
|
Houston, TX |
|
1995 |
|
|
13,497 |
|
|
100.0 |
% |
|
100.0 |
% |
|
155,677 |
|
|
11.53 |
|
|
12.18 |
|
Landry’s Seafood |
|
T.G.I. Friday’s(7) |
|
Hanover, MD |
|
2003 |
|
|
6,802 |
|
|
100.0 |
% |
|
100.0 |
% |
|
148,458 |
|
|
21.83 |
|
|
23.44 |
|
T.G.I. Friday’s |
|
Bank of America |
|
Houston, TX |
|
1994 |
|
|
4,251 |
|
|
100.0 |
% |
|
100.0 |
% |
|
129,275 |
|
|
30.41 |
|
|
28.78 |
|
Bank of America |
|
Macaroni Grill |
|
Houston, TX |
|
1994 |
|
|
7,825 |
|
|
100.0 |
% |
|
100.0 |
% |
|
96,000 |
|
|
12.27 |
|
|
12.05 |
|
Macaroni Grill |
|
T.G.I. Friday’s |
|
Houston, TX |
|
1994 |
|
|
6,543 |
|
|
100.0 |
% |
|
100.0 |
% |
|
96,000 |
|
|
14.67 |
|
|
14.41 |
|
T.G.I. Friday’s |
|
Smokey Bones |
|
Atlanta, GA |
|
1998 |
|
|
6,867 |
|
|
100.0 |
% |
|
100.0 |
% |
|
94,922 |
|
|
13.82 |
|
|
13.82 |
|
Smokey Bones |
|
Single Tenant (Ground Leases) Subtotal/Weighted Average |
|
|
|
|
70,105 |
|
|
100.0 |
% |
|
100.0 |
% |
$ |
1,387,499 |
|
$ |
19.79 |
|
$ |
20.34 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single Tenant (Fee Simple)(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
The Container Store |
|
Houston, TX |
|
2011 |
|
|
25,083 |
|
|
100.0 |
% |
|
100.0 |
% |
$ |
425,323 |
|
$ |
16.96 |
|
$ |
17.86 |
|
The Container Store |
|
T.G.I. Friday’s |
|
Houston, TX |
|
1982 |
|
|
8,500 |
|
|
100.0 |
% |
|
100.0 |
% |
|
215,000 |
|
|
25.29 |
|
|
25.90 |
|
T.G.I. Friday’s |
|
Golden Corral(7) |
|
Houston, TX |
|
1992 |
|
|
12,000 |
|
|
100.0 |
% |
|
100.0 |
% |
|
210,450 |
|
|
17.54 |
|
|
17.54 |
|
Golden Corral |
|
Golden Corral(7) |
|
Houston, TX |
|
1993 |
|
|
12,000 |
|
|
100.0 |
% |
|
100.0 |
% |
|
208,941 |
|
|
17.41 |
|
|
19.79 |
|
Golden Corral |
|
Sunbelt Rentals |
|
Champaign, IL |
|
2007 |
|
|
12,000 |
|
|
100.0 |
% |
|
100.0 |
% |
|
140,000 |
|
|
11.67 |
|
|
12.72 |
|
Sunbelt Rentals |
|
Single Tenant (Fee Simple) Subtotal/Weighted Average |
|
|
|
|
69,583 |
|
|
100.0 |
% |
|
100.0 |
% |
$ |
1,199,714 |
|
$ |
17.24 |
|
$ |
18.23 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Total/Weighted Average |
|
|
|
1,228,428 |
|
|
96.5 |
% |
|
97.2 |
% |
$ |
28,090,556 |
|
$ |
23.70 |
|
$ |
24.31 |
|
|
|||
|
|
|
|
|
|
|
(1) |
Percent occupied is calculated as (i) GLA under commenced leases as of March 31, 2013, divided by (ii) total GLA, expressed as a percentage. |
|
|
|
|
|
|
|
|
(2) |
Percent leased is calculated as (i) GLA under signed leases as of March 31, 2013, divided by (ii) total GLA, expressed as a percentage. |
|
|
|
|
|
|
|
|
(3) |
Annualized base rent is calculated by multiplying (i) monthly base rent as of March 31, 2013, for leases that had commenced as of such date, by (ii) 12. |
|
|
|
|
|
|
|
|
(4) |
Annualized base rent per leased square foot is calculated by dividing (i) annualized base rent, by (ii) GLA under commenced leases as of March 31, 2013. |
|
11
|
|
|
|
|
|
(5) |
Average net effective annual base rent per leased square foot represents (i) the contractual base rent for commenced leases as of March 31, 2013, calculated on a straight line basis to amortize free rent periods, abatements and contractual rent increases, but without subtracting tenant improvement allowances and leasing commissions, divided by (ii) GLA under commenced leases as of March 31, 2013. |
|
|
|
|
|
|
(6) |
For single-tenant ground leases, we own and lease the land to the tenant. The tenant owns the building during the term of the lease and is responsible for all expenses relating to the property. Upon expiration or termination of the lease, ownership of the building will revert to us as owner of the land. The weighted average remaining term of our ground leases is 7.8 years. |
|
|
|
|
|
|
(7) |
The tenants at these properties have rights of first refusal to purchase the property. |
|
|
|
|
|
|
(8) |
For single-tenant fee simple properties, we own the land and the building, and the tenant is responsible for all expenses relating to the property. The weighted average remaining term of our fee simple leases is 7.3 years. |
12
Summary of Top 25 Tenants:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rank |
|
Tenant Name |
|
Year to Date |
|
Year to Date Annualized |
|
Tenant GLA |
|
Percentage of |
|
||||
|
1 |
|
Kroger |
|
$ |
529,041 |
|
|
7.53 |
% |
|
207,963 |
|
|
16.93 |
% |
|
2 |
|
Landry’s Seafood House |
|
|
312,947 |
|
|
4.46 |
% |
|
38,819 |
|
|
3.16 |
% |
|
3 |
|
CVS/pharmacy |
|
|
305,560 |
|
|
4.35 |
% |
|
37,485 |
|
|
3.05 |
% |
|
4 |
|
H-E-B |
|
|
277,434 |
|
|
3.95 |
% |
|
80,641 |
|
|
6.56 |
% |
|
5 |
|
Publix |
|
|
195,234 |
|
|
2.78 |
% |
|
65,146 |
|
|
5.30 |
% |
|
6 |
|
Barnes and Noble |
|
|
137,057 |
|
|
1.95 |
% |
|
22,453 |
|
|
1.83 |
% |
|
7 |
|
Bank of America |
|
|
129,510 |
|
|
1.84 |
% |
|
8,129 |
|
|
0.66 |
% |
|
8 |
|
Tom Thumb |
|
|
127,291 |
|
|
1.81 |
% |
|
29,779 |
|
|
2.42 |
% |
|
9 |
|
Hard Rock Café |
|
|
124,206 |
|
|
1.77 |
% |
|
15,752 |
|
|
1.28 |
% |
|
10 |
|
TGI Friday’s |
|
|
118,470 |
|
|
1.69 |
% |
|
6,802 |
|
|
0.55 |
% |
|
11 |
|
The Container Store |
|
|
111,997 |
|
|
1.59 |
% |
|
25,019 |
|
|
2.04 |
% |
|
12 |
|
Golden Corral |
|
|
111,971 |
|
|
1.59 |
% |
|
24,000 |
|
|
1.95 |
% |
|
13 |
|
Champps Americana |
|
|
105,584 |
|
|
1.50 |
% |
|
11,384 |
|
|
0.93 |
% |
|
14 |
|
Paesanos |
|
|
101,646 |
|
|
1.45 |
% |
|
8,017 |
|
|
0.65 |
% |
|
15 |
|
Michael’s |
|
|
96,299 |
|
|
1.37 |
% |
|
26,115 |
|
|
2.13 |
% |
|
16 |
|
The County Line |
|
|
94,138 |
|
|
1.34 |
% |
|
4,614 |
|
|
0.38 |
% |
|
17 |
|
Dougherty’s Pharmacy |
|
|
83,772 |
|
|
1.19 |
% |
|
12,093 |
|
|
0.98 |
% |
|
18 |
|
Verizon |
|
|
75,862 |
|
|
1.08 |
% |
|
4,013 |
|
|
0.33 |
% |
|
19 |
|
Walgreens |
|
|
74,655 |
|
|
1.06 |
% |
|
15,120 |
|
|
1.23 |
% |
|
20 |
|
Spec’s |
|
|
73,047 |
|
|
1.04 |
% |
|
9,918 |
|
|
0.81 |
% |
|
21 |
|
Mattress Giant |
|
|
68,530 |
|
|
0.98 |
% |
|
11,000 |
|
|
0.90 |
% |
|
22 |
|
River Oaks Imaging and Diagnostics |
|
|
67,125 |
|
|
0.96 |
% |
|
10,750 |
|
|
0.88 |
% |
|
23 |
|
Howl at the Moon |
|
|
64,377 |
|
|
0.92 |
% |
|
7,055 |
|
|
0.57 |
% |
|
24 |
|
The Tasting Room |
|
|
64,376 |
|
|
0.92 |
% |
|
2,000 |
|
|
0.16 |
% |
|
25 |
|
Potbelly |
|
|
62,830 |
|
|
0.89 |
% |
|
5,458 |
|
|
0.44 |
% |
13
Retail Leasing Summary for Comparable Leases(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended December 31, |
|
|||||||||||||||||
|
Expirations |
|
2013 |
|
2012 |
|
2012 |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
|||||||
|
Number of leases |
|
|
12 |
|
|
6 |
|
|
44 |
|
|
53 |
|
|
50 |
|
|
34 |
|
|
22 |
|
|
GLA |
|
|
23,909 |
|
|
27,198 |
|
|
180,245 |
|
|
187,605 |
|
|
224,578 |
|
|
110,693 |
|
|
75,601 |
|
|
New Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of leases |
|
|
4 |
|
|
1 |
|
|
5 |
|
|
7 |
|
|
11 |
|
|
8 |
|
|
4 |
|
|
GLA |
|
|
8,467 |
|
|
2,412 |
|
|
12,997 |
|
|
14,231 |
|
|
17,737 |
|
|
15,471 |
|
|
7,328 |
|
|
Expiring annualized base rent per square foot |
|
$ |
23.64 |
|
$ |
23.00 |
|
$ |
27.22 |
|
$ |
28.36 |
|
$ |
31.07 |
|
$ |
28.31 |
|
$ |
23.52 |
|
|
New annualized base rent per square foot |
|
$ |
33.41 |
|
$ |
24.00 |
|
$ |
34.84 |
|
$ |
30.85 |
|
$ |
31.44 |
|
$ |
29.64 |
|
$ |
21.70 |
|
|
% Change (Cash) |
|
|
41.4 |
% |
|
4.3 |
% |
|
28.0 |
% |
|
8.8 |
% |
|
1.2 |
% |
|
4.7 |
% |
|
-7.7 |
% |
|
Renewals(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of leases |
|
|
9 |
|
|
5 |
|
|
30 |
|
|
38 |
|
|
39 |
|
|
24 |
|
|
13 |
|
|
GLA |
|
|
19,007 |
|
|
24,444 |
|
|
115,501 |
|
|
143,324 |
|
|
140,236 |
|
|
86,462 |
|
|
22,464 |
|
|
Expiring annualized base rent per square foot |
|
$ |
27.46 |
|
$ |
20.92 |
|
$ |
23.91 |
|
$ |
24.92 |
|
$ |
26.12 |
|
$ |
25.62 |
|
$ |
27.05 |
|
|
New annualized base rent per square foot |
|
$ |
29.31 |
|
$ |
21.38 |
|
$ |
25.27 |
|
$ |
25.74 |
|
$ |
27.32 |
|
$ |
26.85 |
|
$ |
31.53 |
|
|
% Change (Cash) |
|
|
6.7 |
% |
|
2.2 |
% |
|
5.7 |
% |
|
3.3 |
% |
|
4.6 |
% |
|
4.8 |
% |
|
16.6 |
% |
|
Combined |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of leases |
|
|
13 |
|
|
6 |
|
|
35 |
|
|
45 |
|
|
50 |
|
|
32 |
|
|
17 |
|
|
GLA |
|
|
27,474 |
|
|
26,856 |
|
|
128,498 |
|
|
157,555 |
|
|
157,973 |
|
|
101,933 |
|
|
29,792 |
|
|
Expiring annualized base rent per square foot |
|
$ |
26.28 |
|
$ |
21.10 |
|
$ |
24.24 |
|
$ |
25.23 |
|
$ |
26.68 |
|
$ |
26.03 |
|
$ |
26.18 |
|
|
New annualized base rent per square foot |
|
$ |
30.58 |
|
$ |
21.61 |
|
$ |
26.24 |
|
$ |
26.20 |
|
$ |
27.78 |
|
$ |
27.27 |
|
$ |
29.11 |
|
|
% Change (Cash) |
|
|
16.3 |
% |
|
2.4 |
% |
|
8.2 |
% |
|
3.8 |
% |
|
4.1 |
% |
|
4.8 |
% |
|
11.2 |
% |
|
|
|
|
|
(1) |
Comparable leases are defined as renewals or new leases for a space that was not vacant for more than 12 consecutive months prior to lease signing. |
|
|
(2) |
Represents existing tenants that, upon expiration of their leases, enter into new leases for the same space. |
|
14
Lease Expiration Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Number of |
|
GLA of |
|
Percent of |
|
ABR of Expiring |
|
Percent of |
|
ABR Per |
|
||||||
|
Vacant |
|
|
- |
|
|
43,329 |
|
|
3.5 |
% |
$ |
- |
|
|
- |
|
$ |
- |
|
|
2013 |
|
|
36 |
|
|
76,706 |
|
|
6.2 |
% |
|
2,043,589 |
|
|
7.3 |
% |
|
26.64 |
|
|
2014 |
|
|
50 |
|
|
127,645 |
|
|
10.4 |
% |
|
3,570,757 |
|
|
12.7 |
% |
|
27.88 |
|
|
2015 |
|
|
41 |
|
|
145,881 |
|
|
11.9 |
% |
|
4,276,037 |
|
|
15.2 |
% |
|
29.31 |
|
|
2016 |
|
|
42 |
|
|
136,116 |
|
|
11.1 |
% |
|
4,024,819 |
|
|
14.3 |
% |
|
29.66 |
|
|
2017 |
|
|
29 |
|
|
221,365 |
|
|
18.0 |
% |
|
4,272,318 |
|
|
15.2 |
% |
|
19.30 |
|
|
2018 |
|
|
20 |
|
|
87,358 |
|
|
7.1 |
% |
|
2,114,693 |
|
|
7.5 |
% |
|
24.15 |
|
|
2019 |
|
|
9 |
|
|
26,953 |
|
|
2.2 |
% |
|
752,396 |
|
|
2.7 |
% |
|
27.92 |
|
|
2020 |
|
|
6 |
|
|
19,433 |
|
|
1.6 |
% |
|
650,364 |
|
|
2.3 |
% |
|
33.47 |
|
|
2021 |
|
|
7 |
|
|
103,485 |
|
|
8.4 |
% |
|
1,694,374 |
|
|
6.1 |
% |
|
16.37 |
|
|
2022 |
|
|
10 |
|
|
68,153 |
|
|
5.6 |
% |
|
1,559,198 |
|
|
5.6 |
% |
|
22.88 |
|
|
2023 + |
|
|
11 |
|
|
172,004 |
|
|
14.0 |
% |
|
3,132,011 |
|
|
11.1 |
% |
|
18.44 |
|
|
Total / Weighted Avg |
|
|
261 |
|
1,228,428 |
|
|
|
|
$ |
28,090,556 |
|
|
|
|
$ |
23.70 |
|
|
|
|
|
|
|
(1) |
ABR for expiring leases is calculated by multiplying (i) the monthly base rent as of March 31, 2013, for leases expiring during the applicable period by (ii) 12. |
|
|
(2) |
ABR per square foot is calculated by dividing (i) ABR for leases expiring during the applicable period by (ii) GLA for leases expiring during the applicable period. |
|
Lease Distribution Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLA Range |
|
Number
of |
|
Percentage |
|
Total GLA |
|
Total |
|
Percent |
|
Percentage |
|
Annualized Base |
|
Percentage |
|
ABR Per |
|
|||||||||
|
|
||||||||||||||||||||||||||||
|
2,500 or less |
|
|
153 |
|
|
58.6 |
% |
|
248,714 |
|
|
221,715 |
|
|
89.1 |
% |
|
18.7 |
% |
$ |
6,676,131 |
|
|
23.8 |
% |
|
30.11 |
|
|
2,501 - 5,000 |
|
|
54 |
|
|
20.7 |
% |
|
199,744 |
|
|
191,020 |
|
|
95.6 |
% |
|
16.1 |
% |
|
6,014,534 |
|
|
21.4 |
% |
|
31.49 |
|
|
5,001 - 10,000 |
|
|
34 |
|
|
13.0 |
% |
|
246,482 |
|
|
238,876 |
|
|
96.9 |
% |
|
20.2 |
% |
|
6,799,214 |
|
|
24.2 |
% |
|
28.46 |
|
|
10,000 - 20,000 |
|
|
13 |
|
|
5.0 |
% |
|
162,102 |
|
|
162,102 |
|
|
100.0 |
% |
|
13.7 |
% |
|
3,917,749 |
|
|
13.9 |
% |
|
24.17 |
|
|
greater than 20,000 |
|
|
7 |
|
|
2.7 |
% |
|
371,386 |
|
|
371,386 |
|
|
100.0 |
% |
|
31.3 |
% |
|
4,682,928 |
|
|
16.7 |
% |
|
12.61 |
|
|
Total portfolio |
|
|
261 |
|
|
100.0 |
% |
1,228,428 |
|
1,185,099 |
|
|
96.5 |
% |
|
100.0 |
% |
$ |
28,090,556 |
|
|
100.0 |
% |
|
23.70 |
|
||
|
|
|
|
|
(1) |
Annualized base rent is calculated by multiplying (i) the monthly base rent as of March 31, 2013, for leases in the applicable GLA range that had commenced as of such date by (ii) 12. |
|
|
(2) |
ABR per leased square foot is calculated by dividing (i) ABR for leases in the applicable GLA range by (ii) total leased GLA for leases in the applicable GLA range. |
|
15
Significant Investments Table (in thousands except percent and GLA data):
Of our Investments in Advised Funds, only our investments in MacArthur Park and Shadow Creek Ranch (which represent 52.6% and 34.0%, respectively of our Investments in Advised Funds balance as of March 31, 2013) comprise greater than 10% of the balance. The table below presents the NOI, debt and property data for these two investments.
|
|
|
|
|
|
|
|
|
|
|
|
MacArthur |
|
Shadow Creek |
|
||
|
Year acquired |
|
2013 |
|
2009 |
|
||
|
Percent owned |
|
30.0% |
|
10.0% |
|
||
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31, 2013: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
(1) |
|
$ |
2,494 |
|
|
Expenses |
|
|
(1) |
|
|
716 |
|
|
NOI |
|
|
(1) |
|
$ |
1,778 |
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2013: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate at cost |
|
$ |
81,116 |
|
$ |
106,768 |
|
|
Mortgage obligation |
|
$ |
43,900 |
|
$ |
63,193 |
|
|
Debt maturity |
|
|
04/01/2023 |
|
|
03/01/2015 |
|
|
|
|
|
|
|
|
|
|
|
GLA |
|
|
406,102 |
|
|
609,259 |
|
|
Percent occupied |
|
|
86.6 |
% |
|
96.6 |
% |
|
Grocery anchor |
|
|
Kroger |
|
|
H.E.B. |
|
|
Other principal tenants |
|
|
Michael’s |
|
|
Academy |
|
|
|
|
|
TJ Maxx |
Burlington Coat Factory |
|
||
|
|
|
|
Ulta |
|
|
Hobby Lobby |
|
|
|
Office Depot |
Ashley Furniture |
|
||||
|
|
|
|
|
(1) |
MacArthur Park, which was a wholly-owned AmREIT property, was contributed to a joint venture with Goldman Sachs on March 26, 2013. The revenues, expenses and NOI of $1.1 million, $308,000, and $770,000, respectively, related to MacArthur Park have not been shown in the above table because they are included in our Statement of Operations and NOI reconciliation included herein. |
|
16
|
|
|
|
Definitions |
|
|
|
|
|
Adjusted FFO |
Core FFO (as defined below) adjusted to exclude non-cash income and expenses that are included in the NAREIT definition of FFO (defined below). Management believes that such items therefore affect the comparability of our period-over-period performance with similar REITs. |
|
|
|
|
Advised Funds |
Collectively, our varying minority ownership interests in four high net worth investment funds, one institutional joint venture with Goldman Sachs, one institutional joint venture with J.P. Morgan Investment Management, one institutional joint venture with AEW Capital and one joint venture with two of our high net worth investment funds, MIG III and MIG IV. |
|
|
|
|
Core FFO |
FFO in accordance with NAREIT’s definition, adjusted to exclude items that management believes do not reflect our ongoing operations, such as acquisition expenses, expensed issuance costs and gains on the sale of real estate held for resale. Management believes that such items therefore affect the comparability of our period-over-period performance with similar REITs. |
|
|
|
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization. Below is a reconciliation of net income to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
||||
|
|
|
March 31, |
|
December 31, |
|
||
|
Net income |
|
$ |
8,396 |
|
$ |
699 |
|
|
Interest expense |
|
|
2,493 |
|
|
2,259 |
|
|
State income taxes |
|
|
72 |
|
|
54 |
|
|
Depreciation and amortization |
|
|
3,299 |
|
|
2,321 |
|
|
EBITDA |
|
$ |
14,260 |
|
$ |
5,333 |
|
|
|
|
|
FFO |
Funds from operations, as defined by NAREIT, which includes net income (loss) computed in accordance with GAAP, excluding gains, losses or impairments on properties held for investment, plus real estate related depreciation and amortization, and after adjustments for similar items recorded by our Advised Funds. |
|
|
|
|
GLA |
Gross leasable area. |
|
|
|
|
NAREIT |
National Association of Real Estate Investment Trusts. |
|
|
|
|
NOI |
Net operating income, defined as operating revenues (rental income, tenant recovery income, percentage rent, excluding straight-line rental income and amortization of acquired above- and below-market rents) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line rent bad debt expense). Below for a reconciliation of net income to NOI: |
17
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
||||
|
|
|
2013 |
|
2012 |
|
||
|
Net income |
|
$ |
8,396 |
|
$ |
1,257 |
|
|
Adjustments to add/(deduct): |
|
|
|
|
|
|
|
|
Amortization of straight-line rents and above/below-market rents(1) |
|
|
(263 |
) |
|
(89 |
) |
|
Advisory services income - related party |
|
|
(843 |
) |
|
(1,131 |
) |
|
Gain on sale of real estate acquired for investment |
|
|
(7,696 |
) |
|
- |
|
|
Interest and other income |
|
|
(113 |
) |
|
(102 |
) |
|
Interest and other income - related party |
|
|
(56 |
) |
|
(72 |
) |
|
Straight-line rent bad debt expense (recoveries)(2) |
|
|
4 |
|
|
(75 |
) |
|
General and administrative |
|
|
1,951 |
|
|
1,484 |
|
|
Legal and professional |
|
|
252 |
|
|
221 |
|
|
Real estate commissions |
|
|
52 |
|
|
86 |
|
|
Depreciation and amortization |
|
|
3,299 |
|
|
2,227 |
|
|
Loss from Advised Funds |
|
|
148 |
|
|
36 |
|
|
State income taxes |
|
|
72 |
|
|
76 |
|
|
Interest expense |
|
|
2,493 |
|
|
2,634 |
|
|
Net operating income |
|
$ |
7,696 |
|
$ |
6,552 |
|
|
|
|
|
|
(1) |
Included in rental income from operating leases as presented on our consolidated statements of operations. |
|
|
(2) |
Included in property expense on our consolidated statements of operations. |
|
18