Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - New York REIT Liquidating LLC | v392696_8-k.htm |
| EX-99.1 - EXHIBIT 99.1 - PRESS RELEASE - New York REIT Liquidating LLC | v392696_ex99x1.htm |
Exhibit 99.2
![[GRAPHIC MISSING]](v392696_nyrt-8kfrontcov.jpg)
New York REIT, Inc.
Table of Contents
Forward-looking Statements:
This supplemental package includes “forward looking statements”. Forward-looking statements may be identified by the use of words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the factors included in (i) the Company's Annual Report on Form 10-K for the year ended December 31, 2013, including those set forth under the headings “Risk Factors,” “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” and (ii) in future periodic reports filed by the Company under the Securities and Exchange Act of 1934, as amended. While forward-looking statements reflect the Company's good faith beliefs, they are not guarantees of future performance. The Company 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 after the date of this press release, except as required by applicable law. For a further discussion of these and other factors that could impact the Company's future results, performance or transactions, see the section entitled “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2013, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).
(i)
New York REIT, Inc.
Company Overview
OVERVIEW
New York REIT Inc. (NYSE: NYRT) (the “Company”) is a publicly traded real estate investment trust focused on acquiring and operating commercial real estate in New York City. The Company seeks to provide its shareholders with both stable dividend income and appreciation potential. New York REIT's focused strategy enhances its effectiveness and provides investors with a pure play investment opportunity in New York City, one of the leading cities of the world.
SNAPSHOT (September 30, 2014)
 |
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| New York City Focus(1) | 100% | |||
| Manhattan Focus(1) | 96% | |||
| Square Feet(2) | 3.4 million | |||
| Number of Buildings | 24 | |||
| Q3 Ending Occupancy | 94.9% | |||
| Weighted Average Remaining Lease Term | 10.2 years | |||
| Company Website | www.nyrt.com | |||
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| Enterprise Value(3) | $ | 2.9 billion | ||
| Combined Debt/Enterprise Value(4) | 42% | |||
| Monthly Dividend per Share | $ | 0.038 | ||
| Annualized Dividend per Share | $ | 0.46 | ||
| Dividend Yield(5) | 4.5% | |||
| Fully Diluted Shares and Units Outstanding | 164.3 million | |||
| (1) | Based on square footage. |
| (2) | Includes pro-rata share of unconsolidated joint venture. |
| (3) | Based on the September 30, 2014 closing price of $10.28 per share and September 30, 2014 debt balances and share count. |
| (4) | Based on combined debt including pro-rata share of unconsolidated debt as a percentage of enterprise value. |
| (5) | Based on the September 30, 2014 closing price of $10.28 per share. |
1
New York REIT, Inc.
Key Financial Metrics
(dollar amounts in thousands, except per share information)
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| Q3 2014 | ||||
| OPERATING RESULTS |
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| Revenues | $ | 40,514 | ||
| NOI | 34,102 | |||
| Cash NOI | 26,287 | |||
| Stabilized cash NOI(1) | 30,503 | |||
| Adjusted EBITDA | 30,564 | |||
| Monthly dividends paid per share | $ | 0.0384 | ||
| Core FFO | $ | 19,794 | ||
| Core FFO per diluted share | $ | 0.12 | ||
| AFFO | $ | 17,311 | ||
| AFFO per diluted share | $ | 0.11 | ||
| Interest coverage ratio on combined debt | 3.4 X | |||
| Fixed charge coverage ratio on combined debt | 3.4 X | |||
| MARKET CAPITALIZATION |
||||
| Share price(2) | $ | 10.28 | ||
| Fully diluted common shares and units outstanding | 164,345,296 | |||
| Total equity market capitalization | $ | 1,689,470 | ||
| Consolidated debt | $ | 797,363 | ||
| Proportionate share of unconsolidated joint venture mortgage debt | $ | 427,875 | ||
| Combined enterprise value | $ | 2,914,708 | ||
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| Q3 2014 | ||||
| COMMON SHARE PRICE AND DIVIDENDS |
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| At the end of the period | $ | 10.28 | ||
| High during period | 11.05 | |||
| Low during period | 9.87 | |||
| Annualized dividend per share | 0.46 | |||
| Annualized dividend yield | 4.5 | % | ||
| LEVERAGE INFORMATION |
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| Combined basis(3) |
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| Total debt | $ | 1,225,238 | ||
| Cash | (26,111 | ) | ||
| Net debt | 1,199,127 | |||
| Debt/enterprise value | 42 | % | ||
| Weighted average interest rate | 3.10 | % | ||
| Weighted average remaining debt term (years) | 4.87 | |||
| LIQUIDITY |
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| Cash | $ | 26,111 | ||
| Undrawn financing commitments | 80,000 | |||
| (1) | Includes free rent. |
| (2) | Closing price on September 30, 2014. |
| (3) | Combined metrics include pro-rata share of unconsolidated joint venture debt. |
2
New York REIT, Inc.
Consolidated Balance Sheets
(in thousands)
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| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| ASSETS |
||||||||||||
| Real estate investments, at cost |
||||||||||||
| Land | $ | 498,820 | $ | 425,814 | $ | 425,814 | ||||||
| Buildings, fixtures and improvements | 1,223,365 | 990,451 | 990,466 | |||||||||
| Acquired intangible lease assets | 151,346 | 127,004 | 127,004 | |||||||||
| Total real estate investments, at cost | 1,873,531 | 1,543,269 | 1,543,284 | |||||||||
| Less: accumulated depreciation and amortization | (102,191 | ) | (81,326 | ) | (61,958 | ) | ||||||
| Total real estate investments, net | 1,771,340 | 1,461,943 | 1,481,326 | |||||||||
| Cash | 26,111 | 50,616 | 237,022 | |||||||||
| Investment in unconsolidated joint venture | 228,749 | 228,834 | 229,127 | |||||||||
| Preferred equity investment | 35,100 | 33,600 | 30,000 | |||||||||
| Other assets | 67,463 | 53,375 | 42,588 | |||||||||
| Total assets | $ | 2,128,763 | $ | 1,828,368 | $ | 2,020,063 | ||||||
| LIABILITIES AND EQUITY |
||||||||||||
| Mortgage notes payable | $ | 172,363 | $ | 172,482 | $ | 172,599 | ||||||
| Credit facility | 625,000 | 305,000 | 305,000 | |||||||||
| Market lease intangibles, net | 81,813 | 66,953 | 69,897 | |||||||||
| Other liabilities | 28,259 | 31,141 | 42,484 | |||||||||
| Derivatives, at fair value | 14,224 | 39,777 | 940 | |||||||||
| Total liabilities | 921,659 | 615,353 | 590,920 | |||||||||
| Common stock | 1,620 | 1,620 | 1,756 | |||||||||
| Additional paid-in capital | 1,400,400 | 1,399,480 | 1,547,889 | |||||||||
| Accumulated other comprehensive loss | (359 | ) | (1,446 | ) | (615 | ) | ||||||
| Accumulated deficit | (209,463 | ) | (200,524 | ) | (120,329 | ) | ||||||
| Total stockholders' equity | 1,192,198 | 1,199,130 | 1,428,701 | |||||||||
| Non-controlling interests | 14,906 | 13,885 | 442 | |||||||||
| Total equity | 1,207,104 | 1,213,015 | 1,429,143 | |||||||||
| Total liabilities and equity | $ | 2,128,763 | $ | 1,828,368 | $ | 2,020,063 | ||||||
3
New York REIT, Inc.
Consolidated Income Statements(1)
(in thousands, except for share and per share information)
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| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| Revenues |
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| Rental income | $ | 30,246 | $ | 26,104 | $ | 27,171 | ||||||
| Operating expense reimbursements and other revenue | 10,268 | 9,845 | 6,421 | |||||||||
| Total revenues | 40,514 | 35,949 | 33,592 | |||||||||
| Operating expenses |
||||||||||||
| Property operating | 15,557 | 14,079 | 14,005 | |||||||||
| Asset management fees to affiliates | 2,980 | 2,274 | — | |||||||||
| Acquisition and transaction related | 4,436 | 11,577 | 69 | |||||||||
| Asset management fee earnout(2) | — | 11,500 | — | |||||||||
| Change in fair value of listing promote(3) | (24,700 | ) | 38,100 | — | ||||||||
| General and administrative | 864 | 876 | 1,345 | |||||||||
| Equity-based compensation(4) | 2,475 | 1,882 | 16 | |||||||||
| Depreciation and amortization | 21,657 | 20,222 | 21,013 | |||||||||
| Total operating expenses | 23,269 | 100,510 | 36,448 | |||||||||
| Operating income (loss) | 17,245 | (64,561 | ) | (2,856 | ) | |||||||
| Other income (expenses) |
||||||||||||
| Interest expense | (8,407 | ) | (4,813 | ) | (3,939 | ) | ||||||
| Income (loss) from unconsolidated joint venture | (85 | ) | 948 | (1,984 | ) | |||||||
| Income from preferred equity investment, investment securities and interest | 769 | 677 | 624 | |||||||||
| Gain on derivative instruments | — | 1 | — | |||||||||
| Total other income (expense) | (7,723 | ) | (3,187 | ) | (5,299 | ) | ||||||
| Net income (loss) | 9,522 | (67,748 | ) | (8,155 | ) | |||||||
| Net loss (income) attributable to non-controlling interests | 173 | 511 | (1 | ) | ||||||||
| Net income (loss) attributable to stockholders | $ | 9,695 | $ | (67,237 | ) | $ | (8,156 | ) | ||||
| Basic weighted average shares | 161,975,420 | 168,972,601 | 175,068,005 | |||||||||
| Adjustments to fully diluted shares(5) | 2,366,048 | 1,376,573 | 616,776 | |||||||||
| Fully diluted weighted average shares | 164,341,468 | 170,349,174 | 175,684,781 | |||||||||
| Net income (loss) per basic share attributable to stockholders | $ | 0.06 | $ | (0.40 | ) | $ | (0.05 | ) | ||||
| Net income (loss) per diluted share attributable to stockholders | $ | 0.05 | $ | (0.40 | ) | $ | (0.05 | ) | ||||
| (1) | Certain prior quarter amounts have been reclassified to conform to the current quarter presentation. |
| (2) | Represents the value of previously issued class B units, which vested upon the achievement of the performance condition upon the listing. This is a non-cash expense. |
| (3) | Represents the estimated value of the listing promote at June 30, 2014 and September 30, 2014 based in part on the closing share price of $11.06 and $10.28 on those days, respectively. This is a non-cash expense. |
| (4) | Amounts represent the portion of non-cash expense related to the outperformance plan which vests over 5 years and other non-cash board compensation. |
| (5) | Q3 includes the portion of the LTIP’s on which dividends were paid beginning in Q3. |
4
New York REIT, Inc.
Unconsolidated Joint Venture — Summary Balance Sheets and Income Statements
(in thousands)
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| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| Unconsolidated Joint Venture Condensed Balance Sheet |
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| Real estate assets, at cost | $ | 698,939 | $ | 697,643 | $ | 696,426 | ||||||
| Less accumulated depreciation and amortization | (92,066 | ) | (87,351 | ) | (82,635 | ) | ||||||
| Total real estate assets, net | 606,873 | 610,292 | 613,791 | |||||||||
| Other assets | 263,068 | 253,620 | 247,705 | |||||||||
| Total assets | $ | 869,941 | $ | 863,912 | $ | 861,496 | ||||||
| Debt | $ | 875,000 | $ | 875,000 | $ | 875,000 | ||||||
| Other liabilities | 16,772 | 13,129 | 10,294 | |||||||||
| Total liabilities | 891,772 | 888,129 | 885,294 | |||||||||
| Deficit | (21,831 | ) | (24,217 | ) | (23,798 | ) | ||||||
| Total liabilities and deficit | $ | 869,941 | $ | 863,912 | $ | 861,496 | ||||||
| Company's basis | $ | 228,749 | $ | 228,834 | $ | 229,127 | ||||||
| Unconsolidated Joint Venture Condensed Statement of Operations |
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| Revenue: |
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| Rental income | $ | 28,867 | $ | 27,739 | $ | 27,655 | ||||||
| Other revenue | 1,242 | 1,229 | 1,215 | |||||||||
| Total revenue | 30,109 | 28,968 | 28,870 | |||||||||
| Operating expenses: |
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| Operating expense | 11,407 | 10,779 | 11,513 | |||||||||
| Depreciation and amortization | 6,261 | 6,260 | 6,368 | |||||||||
| Total operating expenses | 17,668 | 17,039 | 17,881 | |||||||||
| Operating income | 12,441 | 11,929 | 10,989 | |||||||||
| Interest expense | (10,102 | ) | (9,992 | ) | (9,882 | ) | ||||||
| Net income | 2,339 | 1,937 | 1,107 | |||||||||
| Preferred distributions | (3,936 | ) | (1,334 | ) | (6,411 | ) | ||||||
| Net income (loss) to members | $ | (1,597 | ) | $ | 603 | $ | (5,304 | ) | ||||
| Company's preferred distribution | $ | 3,936 | $ | 3,894 | $ | 3,851 | ||||||
| Company's share of net income (loss) | (780 | ) | 295 | (2,594 | ) | |||||||
| Amortization of difference in basis | (3,241 | ) | (3,241 | ) | (3,241 | ) | ||||||
| Company's share of income (Company's basis) | $ | (85 | ) | $ | 948 | $ | (1,984 | ) | ||||
| Supplemental information: |
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| Straight-line rent included in rental income above | $ | 1,390 | $ | 1,550 | $ | 1,146 | ||||||
| Above/below market lease amortization | $ | — | $ | — | $ | — | ||||||
5
New York REIT, Inc.
Reconciliation of Net Income (Loss) to FFO and AFFO
(in thousands, except share and per share information)
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| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| Net income (loss) | $ | 9,522 | $ | (67,748 | ) | $ | (8,155 | ) | ||||
| Depreciation and amortization, net of adjustments related to joint venture | 21,649 | 20,213 | 21,003 | |||||||||
| Proportionate share of depreciation and amortization related to unconsolidated joint venture | 6,302 | 6,302 | 6,354 | |||||||||
| Funds from operations (FFO) | 37,473 | (41,233 | ) | 19,202 | ||||||||
| Acquisition fees and expenses | 4,436 | 11,577 | 69 | |||||||||
| Asset management fee earnout | — | 11,500 | — | |||||||||
| Estimated value of listing promote | (24,700 | ) | 38,100 | — | ||||||||
| Non-recurring revenue | (855 | ) | — | — | ||||||||
| Non-recurring deferred financing cost expense | 3,108 | — | — | |||||||||
| Non-recurring non-cash compensation expense | 332 | — | — | |||||||||
| Core FFO | 19,794 | 19,944 | 19,271 | |||||||||
| Plus: |
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| Non-cash compensation expense | 2,143 | 1,882 | 16 | |||||||||
| Non-cash portion of interest expense | 1,275 | 1,424 | 726 | |||||||||
| Class B distributions | — | 19 | 88 | |||||||||
| Seller free rent credit | 2,277 | — | — | |||||||||
| Minus: |
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| Amortization of market lease intangibles | (2,296 | ) | (2,267 | ) | (2,454 | ) | ||||||
| Mark-to-market adjustments | — | (1 | ) | — | ||||||||
| Straight-line rent | (4,839 | ) | (1,446 | ) | (2,430 | ) | ||||||
| Tenant improvements – second generation | (305 | ) | (363 | ) | (1,203 | ) | ||||||
| Leasing commissions – second generation | (48 | ) | (245 | ) | (13 | ) | ||||||
| Building improvements – second generation | (10 | ) | — | — | ||||||||
| Proportionate share of adjustments related to unconsolidated joint venture | (680 | ) | (758 | ) | (560 | ) | ||||||
| Adjusted funds from operations (AFFO) | $ | 17,311 | $ | 18,189 | $ | 13,441 | ||||||
| Fully diluted shares | 164,341,468 | 170,349,174 | 175,684,781 | |||||||||
| FFO per diluted share | $ | 0.23 | $ | (0.24 | ) | $ | 0.11 | |||||
| Core FFO per diluted share | $ | 0.12 | $ | 0.12 | $ | 0.11 | ||||||
| AFFO per diluted share | $ | 0.11 | $ | 0.11 | $ | 0.08 | ||||||
6
New York REIT, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA, NOI and Cash NOI
(in thousands)
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| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| Combined: |
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| Net income (loss) | $ | 9,522 | $ | (67,748 | ) | $ | (8,155 | ) | ||||
| Acquisition and transaction related | 4,436 | 11,577 | 69 | |||||||||
| Asset management fee earnout | — | 11,500 | — | |||||||||
| Depreciation and amortization | 21,657 | 20,222 | 21,013 | |||||||||
| Interest expense | 8,407 | 4,813 | 3,939 | |||||||||
| Gain on derivative instruments | — | (1 | ) | — | ||||||||
| Change in fair value of listing promote | (24,700 | ) | 38,100 | — | ||||||||
| Proportionate share of adjustments related to unconsolidated joint venture | 11,242 | 11,189 | 11,187 | |||||||||
| Adjusted EBITDA | 30,564 | 29,652 | 28,053 | |||||||||
| General and administrative | 864 | 876 | 1,345 | |||||||||
| Equity-based compensation | 2,475 | 1,882 | 16 | |||||||||
| Asset management fee to affiliate | 2,980 | 2,274 | — | |||||||||
| Income from preferred equity investment, investment securities and interest | (769 | ) | (677 | ) | (624 | ) | ||||||
| Preferred return on unconsolidated joint venture | (3,936 | ) | (3,894 | ) | (3,851 | ) | ||||||
| Proportionate share of other adjustments related to unconsolidated joint venture | 1,924 | 652 | 3,135 | |||||||||
| NOI | 34,102 | 30,765 | 28,074 | |||||||||
| Amortization of above/below market lease assets and liabilities | (2,296 | ) | (2,267 | ) | (2,454 | ) | ||||||
| Straight-line rent | (4,839 | ) | (1,446 | ) | (2,430 | ) | ||||||
| Proportionate share of adjustments related to unconsolidated joint venture | (680 | ) | (758 | ) | (560 | ) | ||||||
| Cash NOI | $ | 26,287 | $ | 26,294 | $ | 22,630 | ||||||
| Supplemental information: |
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| Cash NOI – Office | $ | 22,423 | $ | 21,273 | $ | 20,813 | ||||||
| Cash NOI – Stand-alone retail | 2,699 | 2,763 | 2,574 | |||||||||
| Cash NOI – Other | 1,165 | 2,258 | (757 | ) | ||||||||
| 26,287 | 26,294 | 22,630 | ||||||||||
| Free rent | 4,216 | 1,860 | 1,661 | |||||||||
| Stabilized cash NOI | $ | 30,503 | $ | 28,154 | $ | 24,291 | ||||||
Note — Consolidated adjusted EBITDA for the third quarter was $19,407, reflecting net income of $9,522 reduced by the change in the estimated fair value of the listing promote of $24,700, and increased by acquisition and transaction related costs of $4,436, depreciation and amortization of $21,657, the Company’s share of loss in joint venture of $85 and interest expense of $8,407.
7
New York REIT, Inc.
Same Store Statistics(1)
(dollar amounts in thousands)
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| Q3 2014 | Q2 2014 | Change | % change | |||||||||||||
| Total portfolio square footage/total buildings | 3,425,750 / 24 | 3,144,572 / 23 | ||||||||||||||
| Same store square footage/same store buildings(2) | 3,144,456 / 23 | 3,144,572 / 23 | ||||||||||||||
| Same store occupancy percentage at quarter end | 94.5 | % | 93.6 | % | ||||||||||||
| Total GAAP operating revenue | $ | 52,677 | $ | 50,116 | $ | 2,561 | 5.1 | % | ||||||||
| Less: Straight line rent adjustment | (4,204 | ) | (3,290 | ) | ||||||||||||
| Less: Above/below market lease amortization | (2,111 | ) | (2,156 | ) | ||||||||||||
| Total cash operating revenue | $ | 46,362 | $ | 44,670 | $ | 1,692 | 3.8 | % | ||||||||
| Total GAAP operating expenses | $ | 20,732 | $ | 19,351 | $ | 1,381 | 7.1 | % | ||||||||
| Less: Straight-line ground rent adjustment | (1,087 | ) | (1,087 | ) | ||||||||||||
| Less: Ground rent above/below market lease amortization | 112 | 112 | ||||||||||||||
| Total cash operating expenses | $ | 19,757 | $ | 18,376 | $ | 1,381 | 7.5 | % | ||||||||
| Same store GAAP NOI | $ | 31,945 | $ | 30,765 | $ | 1,180 | 3.8 | % | ||||||||
| Same store cash NOI | $ | 26,605 | $ | 26,294 | $ | 311 | 1.2 | % | ||||||||
| (1) | Same store portfolio consists of only those properties owned and operated for the entire current and prior periods presented. |
| (2) | Same store square footage may change due to reconfiguration of tenants’ occupied space. |
Note: Amounts above include our pro-rata share of investments in unconsolidated joint ventures.
Note: A reconciliation of Net Income (Loss) to Cash Net Operating Income, a non-GAAP measure, appears on page 7 of this supplemental information package.
8
New York REIT, Inc.
Dividends and Payout Ratios
(dollar amounts in thousands, except per share information)
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| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| Dividends paid in cash | $ | 18,626 | $ | 17,050 | $ | 11,774 | ||||||
| Dividends reinvested | — | 4,935 | 14,084 | |||||||||
| LTIP dividends paid | 170 | — | — | |||||||||
| OP dividends paid | 146 | 117 | 88 | |||||||||
| Restricted stock dividends paid | 8 | 2 | 4 | |||||||||
| Total dividends paid | $ | 18,950 | $ | 22,104 | $ | 25,950 | ||||||
| Weighted average fully diluted shares | 164,341,468 | 170,349,174 | 175,684,781 | |||||||||
| Dividends per fully diluted share | $ | 0.1153 | $ | 0.1298 | $ | 0.1477 | ||||||
| Core FFO per fully diluted share | $ | 0.12 | $ | 0.12 | $ | 0.11 | ||||||
| AFFO per fully diluted share | $ | 0.11 | $ | 0.11 | $ | 0.08 | ||||||
| Payout ratios |
||||||||||||
| Core FFO payout ratio | 96 | % | 111 | % | 135 | % | ||||||
| AFFO payout ratio | 109 | % | 122 | % | 193 | % | ||||||
| Payout ratios based on current dividend |
||||||||||||
| Quarterly dividend per share(1) | $ | 0.115 | $ | 0.115 | $ | 0.115 | ||||||
| Core FFO payout ratio | 96 | % | 98 | % | 105 | % | ||||||
| AFFO payout ratio | 109 | % | 108 | % | 150 | % | ||||||
| (1) | Current dividend payment was reduced in April 2014 from $0.605 per share to $0.46 per share on an annual basis paid monthly. This calculation is based on $0.46 per share. |
9
New York REIT, Inc.
Debt Analysis
(dollar amounts in thousands)
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| Q3 2014 | Weighted Average Remaining Term (Years) |
Weighted Average Rate |
% of Total Debt |
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| Consolidated mortgage debt | $ | 172,363 | 3.29 | 3.56 | % | 14.1 | % | |||||||||
| Consolidated credit facility term debt – fixed rate | 80,000 | 3.89 | 3.22 | % | 6.5 | % | ||||||||||
| Consolidated credit facility term debt – floating rate | 225,000 | 3.89 | 1.78 | % | 18.4 | % | ||||||||||
| Consolidated credit facility revolving debt – floating rate | 320,000 | 1.89 | 1.78 | % | 26.1 | % | ||||||||||
| Total consolidated debt | 797,363 | 2.96 | 2.31 | % | 65.1 | % | ||||||||||
| Company’s share of unconsolidated joint venture mortgage debt | 427,875 | 8.44 | 4.58 | % | 34.9 | % | ||||||||||
| Combined debt | $ | 1,225,238 | 4.87 | 3.10 | % | 100.0 | % | |||||||||
| Fixed rate debt (including pro-rata share of unconsolidated debt) | $ | 680,238 | ||||||||||||||
| Floating rate debt | $ | 545,000 | ||||||||||||||
| % fixed rate debt (including pro-rata share of unconsolidated debt) | 56 | % | ||||||||||||||
| % floating rate debt | 44 | % | ||||||||||||||
| Average fixed rate (including pro-rata share of unconsolidated debt) | 4.16 | % | ||||||||||||||
| Average floating rate | 1.78 | % | ||||||||||||||
10
New York REIT, Inc.
Mortgage Debt Summary
(dollar amounts in thousands)
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|
|
|||||||||
| Debt amount |
Maturity | Effective interest rate |
||||||||||
| Consolidated mortgages: |
||||||||||||
| 229 West 36th Street | $ | 35,000 | 12/27/2017 | 2.87 | % | |||||||
| 256 West 38th Street | 24,500 | 12/26/2017 | 3.12 | % | ||||||||
| 367-387 Bleecker Street | 21,300 | 12/6/2015 | 4.34 | % | ||||||||
| Interior Design Building | 20,296 | 12/1/2021 | 4.38 | % | ||||||||
| 1100 Kings Highway | 20,200 | 8/1/2017 | 3.38 | % | ||||||||
| One Jackson Square | 13,000 | 12/1/2016 | 3.45 | % | ||||||||
| 350 West 42nd Street | 11,365 | 8/29/2017 | 3.42 | % | ||||||||
| Duane Reade | 8,400 | 11/1/2016 | 3.60 | % | ||||||||
| 1623 Kings Highway | 7,288 | 11/1/2017 | 3.34 | % | ||||||||
| 416 Washington Street | 4,764 | 12/1/2021 | 4.38 | % | ||||||||
| Foot Locker | 3,250 | 6/6/2016 | 4.57 | % | ||||||||
| Regal Parking Garage | 3,000 | 7/6/2016 | 4.45 | % | ||||||||
| Consolidated mortgage debt | 172,363 | 3.56 | % | |||||||||
| Pro-rata share of unconsolidated joint venture mortgage debt: |
||||||||||||
| One Worldwide Plaza | 427,875 | 3/6/2023 | 4.58 | % | ||||||||
| Combined mortgage debt | $ | 600,238 | 4.29 | % | ||||||||
11
New York REIT, Inc.
Leverage Metrics
(dollar amounts in thousands)
|
|
|
||||||
| Q3 2014 | ||||||||
| Consolidated Basis |
Combined Basis |
|||||||
| Interest coverage ratio |
||||||||
| Interest expense(1) | $ | 8,407 | $ | 8,407 | ||||
| Non-cash interest expense | (1,275 | ) | (1,275 | ) | ||||
| Non-recurring deferred financing cost expense | (3,108 | ) | (3,108 | ) | ||||
| Interest expense related to unconsolidated joint venture | — | 4,940 | ||||||
| Total interest | $ | 4,024 | $ | 8,964 | ||||
| Adjusted EBITDA | $ | 19,407 | $ | 30,564 | ||||
| Interest coverage ratio | 4.8X | 3.4X | ||||||
| Fixed charge coverage ratio |
||||||||
| Total interest | $ | 4,024 | $ | 8,964 | ||||
| Secured debt principal amortization | 118 | 118 | ||||||
| Total fixed charges | $ | 4,142 | $ | 9,082 | ||||
| Adjusted EBITDA | $ | 19,407 | $ | 30,564 | ||||
| Fixed charge coverage ratio | 4.7X | 3.4X | ||||||
| Net debt to adjusted EBITDA ratio |
||||||||
| Company’s pro rata share of total debt | $ | 797,363 | $ | 1,225,238 | ||||
| Less: cash and cash equivalents | (26,111 | ) | (26,111 | ) | ||||
| Net debt | $ | 771,252 | $ | 1,199,127 | ||||
| Adjusted EBITDA annualized(2) | $ | 77,628 | $ | 122,256 | ||||
| Net debt to adjusted EBITDA ratio | 9.9X | 9.8X | ||||||
| Debt to enterprise value |
||||||||
| Company’s pro rata share of debt | $ | 797,363 | $ | 1,225,238 | ||||
| Equity(3) | 1,689,470 | 1,689,470 | ||||||
| Enterprise value(3) | $ | 2,486,833 | $ | 2,914,708 | ||||
| Debt as % of enterprise value | 32.1 | % | 42.0 | % | ||||
| Unencumbered real estate assets/total real estate assets: |
||||||||
| Unencumbered real estate assets(4) | $ | 1,512,039 | ||||||
| Total real estate assets | $ | 2,468,267 | ||||||
| Unencumbered real estate assets/total real estate assets | 61 | % | ||||||
| (1) | Excludes the Company’s share of unconsolidated joint venture debt. |
| (2) | Adjusted EBITDA during Q3 2014 annualized (multiplied by 4). |
| (3) | Based on the September 30, 2014 closing price of $10.28 per share and September 30, 2014 debt balances and share count. |
| (4) | No mortgage encumbrance. |
12
New York REIT, Inc.
Credit Facility and Liquidity Analysis(1)
(dollar amounts in thousands)
|
|
|
|
|||||||||
| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| Credit facility availability: |
||||||||||||
| Credit facility commitments | $ | 705,000 | $ | 705,000 | $ | 390,000 | ||||||
| Outstanding balance on credit facility | 625,000 | 305,000 | 305,000 | |||||||||
| Undrawn credit facility commitments | $ | 80,000 | $ | 400,000 | $ | 85,000 | ||||||
| Outstanding balance – term debt | $ | 305,000 | $ | 305,000 | $ | 80,000 | ||||||
| Outstanding balance – revolving debt | 320,000 | — | 225,000 | |||||||||
| Total outstanding balance | $ | 625,000 | $ | 305,000 | $ | 305,000 | ||||||
| Liquidity: |
||||||||||||
| Cash | $ | 26,111 | $ | 50,616 | $ | 237,022 | ||||||
| Undrawn credit facility commitments | 80,000 | 400,000 | 85,000 | |||||||||
|
|
|
||||||
| Required | Actual – as of September 30, 2014 |
|||||||
| Credit facility covenant ratios(1): |
||||||||
| Consolidated leverage ratio | < 60 | % | 49 | % | ||||
| Fixed charge coverage ratio | > 1.5X | 3.6X | ||||||
| Tangible net worth | > $900,000 | $ | 1,294,389 | |||||
| Secured leverage ratio | < 60 | % | 24 | % | ||||
| Borrowing base advance rate | < 60 | % | 51 | % | ||||
| Debt service coverage ratio | > 1.3X | 1.32X | ||||||
| (1) | The Company’s credit facility covenant ratios are computed in accordance with the terms of the Company’s credit facility agreement, as applicable. The methodology for these computations may differ significantly from similarly titled ratios of other companies and throughout the Company’s supplemental. |
13
New York REIT, Inc.
Debt Maturities
(dollar amounts in thousands)
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||
| Consolidated mortgage debt | $ | 172,363 | $ | 120 | $ | 21,794 | $ | 28,167 | $ | 102,730 | $ | 4,573 | $ | 14,979 | ||||||||||||||
| Proportionate share of unconsolidated joint venture mortgage debt | 427,875 | — | — | — | — | 4,391 | 423,484 | |||||||||||||||||||||
| Combined mortgage debt | 600,238 | 120 | 21,794 | 28,167 | 102,730 | 8,964 | 438,463 | |||||||||||||||||||||
| Credit facility – revolving | 320,000 | — | — | 320,000 | — | — | — | |||||||||||||||||||||
| Credit facility – term | 305,000 | — | — | — | — | 305,000 | — | |||||||||||||||||||||
| Total credit facility | 625,000 | — | — | 320,000 | — | 305,000 | — | |||||||||||||||||||||
| Total combined debt | $ | 1,225,238 | $ | 120 | $ | 21,794 | $ | 348,167 | $ | 102,730 | $ | 313,964 | $ | 438,463 | ||||||||||||||
| % Expiring | 100 | % | 0.01 | % | 2 | % | 28 | % | 8 | % | 26 | % | 36 | % | ||||||||||||||
| Weighted average remaining term (years) | 4.9 | |||||||||||||||||||||||||||
| Weighted average remaining term (years) (excluding credit facility) | 7.0 | |||||||||||||||||||||||||||
| Debt maturing | $ | 1,225,238 | $ | 120 | $ | 21,794 | $ | 348,167 | $ | 102,730 | $ | 313,964 | $ | 438,463 | ||||||||||||||
| Weighted average interest rate expiring | 3.10 | % | 4.38 | % | 4.35 | % | 1.94 | % | 3.19 | % | 2.22 | % | 4.57 | % | ||||||||||||||
| Debt maturing (excluding credit facility) | $ | 600,238 | $ | 120 | $ | 21,794 | $ | 28,167 | $ | 102,730 | $ | 8,964 | $ | 438,463 | ||||||||||||||
| Weighted average interest rate expiring | 4.29 | % | 4.38 | % | 4.35 | % | 3.75 | % | 3.19 | % | 4.48 | % | 4.57 | % | ||||||||||||||
14
New York REIT, Inc.
Square Footage Summary
|
|
|
|
|
||||||||||||
| As of September 30, 2014 | Total | Manhattan | Brooklyn | Queens | ||||||||||||
| Total square feet by property type: |
||||||||||||||||
| Office | 2,799,890 | 2,769,223 | 30,667 | — | ||||||||||||
| Retail(1) | 320,333 | 252,661 | 57,905 | 9,767 | ||||||||||||
| Hotel | 128,612 | 128,612 | — | — | ||||||||||||
| Parking | 120,589 | 120,589 | — | — | ||||||||||||
| Residential | 40,437 | — | 40,437 | — | ||||||||||||
| Storage | 15,889 | 15,889 | — | — | ||||||||||||
| Total owned square feet (end of period)(2) | 3,425,750 | 3,286,974 | 129,009 | 9,767 | ||||||||||||
| % of total square feet by property type: |
||||||||||||||||
| Office | 82 | % | 84 | % | 24 | % | 0 | % | ||||||||
| Retail(1) | 9 | % | 8 | % | 45 | % | 100 | % | ||||||||
| Hotel | 4 | % | 4 | % | 0 | % | 0 | % | ||||||||
| Parking | 4 | % | 4 | % | 0 | % | 0 | % | ||||||||
| Residential | 1 | % | 0 | % | 31 | % | 0 | % | ||||||||
| Storage | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
| Total owned square feet (end of period)(2) | 100 | % | 95.9 | % | 3.8 | % | 0.3 | % | ||||||||
| (1) | Includes 95,390 square feet of stand-alone retail and 224,943 square feet of retail associated with the Company’s office portfolio. |
| (2) | Excludes 15,055 square foot parking garage at 416 Washington Street, which is being operated under a management agreement with a third party. |
All figures above include the Company’s proportionate share of investments in unconsolidated joint ventures.
15
New York REIT, Inc.
Major Tenant Summary
(dollar amounts in thousands)
|
|
|
|
|
||||||||||||
| Top Ten Office Tenants as a % of Total Annualized Cash Rent | Property | Total Square Feet |
Annualized Cash Rent |
% of Annualized Cash Rent |
||||||||||||
| 1 Cravath Swaine & Moore, LLP | One Worldwide Plaza | 301,779 | $ | 28,678 | 16.1 | % | ||||||||||
| 2 Nomura Holding America Inc. | One Worldwide Plaza | 400,934 | 18,652 | 10.4 | % | |||||||||||
| 3 Twitter, Inc. | 245-249 West 17th Street | 214,765 | 14,718 | 8.2 | % | |||||||||||
| 4 Macy’s, Inc. | 1440 Broadway | 203,196 | 11,816 | 6.6 | % | |||||||||||
| 5 Rentpath Inc. | 1440 Broadway | 170,734 | 11,748 | 6.6 | % | |||||||||||
| 6 The Segal Company (Eastern States) Inc. | 333 West 34th Street | 144,307 | 8,790 | 4.9 | % | |||||||||||
| 7 Spring Studios New York LLC | 50 Varick Street | 158,573 | 6,838 | 3.8 | % | |||||||||||
| 8 Advance Magazine | 1440 Broadway | 72,194 | 4,315 | 2.4 | % | |||||||||||
| 9 Metropolitan Transportation Authority (MTA) | 333 West 34th Street | 130,443 | 3,485 | 2.0 | % | |||||||||||
| 10 Liz Claiborne, Inc. | 1440 Broadway | 67,213 | 3,147 | 1.8 | % | |||||||||||
| Total top ten office tenants | 1,864,138 | $ | 112,187 | 62.8 | % | |||||||||||
|
|
|
|
|
||||||||||||
| Top Ten Retail Tenants as a % of Total Annualized Cash Rent | Property | Total Square Feet |
Annualized Cash Rent |
% of Annualized Cash Rent |
||||||||||||
| 1 Room & Board, Inc. | 245-249 West 17th Street | 60,062 | $ | 4,650 | 2.6 | % | ||||||||||
| 2 Sam Ash New York Megastores, LLC | 333 West 34th Street | 29,688 | 1,443 | 0.8 | % | |||||||||||
| 3 Citibank, N.A. | 1440 Broadway | 11,533 | 1,220 | 0.7 | % | |||||||||||
| 4 Dodger Stage Holding Theatricals, Inc. | One Worldwide Plaza | 27,841 | 1,157 | 0.6 | % | |||||||||||
| 5 Duane Reade | Duane Reade | 9,767 | 1,065 | 0.6 | % | |||||||||||
| 6 TD Bank, N.A. | One Jackson Square | 4,158 | 1,018 | 0.6 | % | |||||||||||
| 7 Burberry Limited | 367-387 Bleecker Street | 4,726 | 989 | 0.6 | % | |||||||||||
| 8 Bally Sports Clubs, Inc. (f/k/a Manhattan Sports Club, Inc.) | One Worldwide Plaza | 18,582 | 981 | 0.5 | % | |||||||||||
| 9 Early Bird Delivery Systems LLC, d/b/a Urban Express | 229 W 36th Street | 20,132 | 962 | 0.5 | % | |||||||||||
| 10 The Dress Barn, Inc. | 1100 Kings Highway | 14,200 | 762 | 0.4 | % | |||||||||||
| Total top ten retail tenants | 200,689 | $ | 14,247 | 7.9 | % | |||||||||||
16
New York REIT, Inc.
Tenant Industry Concentration
|
|
|||
| % of Annualized Cash Rent |
||||
| Technology, Advertising, Media & Information | 28 | % | ||
| Legal Services | 17 | % | ||
| Retail | 17 | % | ||
| Finance, Insurance, Real Estate | 14 | % | ||
| Professional Services | 8 | % | ||
| Education | 3 | % | ||
| Consumer Goods | 3 | % | ||
| Other | 3 | % | ||
| Food and Beverage | 3 | % | ||
| Health Services | 2 | % | ||
| Government | 1 | % | ||
| Parking | 1 | % | ||
| 100 | % | |||
17
New York REIT, Inc.
Lease Expirations
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||
| Combined:(1) |
||||||||||||||||||||||||||||
| Leases expiring | 136 | 5 | 5 | 12 | 17 | 15 | 82 | |||||||||||||||||||||
| Expiring Annualized Cash Rent (in thousands)(2)(3) |
$ | 176,746 | $ | 1,127 | $ | 14,651 | $ | 6,341 | $ | 7,153 | $ | 2,214 | $ | 145,260 | ||||||||||||||
| Expiring square feet(3) | 3,097,866 | 22,630 | 223,394 | 108,107 | 107,606 | 54,401 | 2,581,728 | |||||||||||||||||||||
| % of total square feet expiring | 100.0 | % | 0.7 | % | 7.2 | % | 3.5 | % | 3.5 | % | 1.8 | % | 83.3 | % | ||||||||||||||
| Annualized Cash Rent per square foot(2)(3) | $ | 57.05 | $ | 49.80 | $ | 65.58 | $ | 58.66 | $ | 66.47 | $ | 40.70 | $ | 56.26 | ||||||||||||||
| Consolidated properties: |
||||||||||||||||||||||||||||
| Leases expiring | 105 | 2 | 5 | 8 | 16 | 11 | 63 | |||||||||||||||||||||
| Expiring Annualized Cash Rent (in thousands)(2)(3) | $ | 117,938 | $ | 117 | $ | 14,651 | $ | 6,155 | $ | 6,176 | $ | 1,944 | $ | 88,895 | ||||||||||||||
| Expiring square feet(3) | 2,144,388 | 3,583 | 223,394 | 106,442 | 91,186 | 52,568 | 1,667,215 | |||||||||||||||||||||
| % of total square feet expiring | 100.0 | % | 0.2 | % | 10.4 | % | 5.0 | % | 4.3 | % | 2.5 | % | 77.6 | % | ||||||||||||||
| Annualized Cash Rent per square foot(2)(3) | $ | 55.00 | $ | 32.65 | $ | 65.58 | $ | 57.82 | $ | 67.73 | $ | 36.98 | $ | 53.32 | ||||||||||||||
| Unconsolidated joint ventures: |
||||||||||||||||||||||||||||
| Leases expiring | 31 | 3 | — | 4 | 1 | 4 | 19 | |||||||||||||||||||||
| Expiring Annualized Cash Rent (in thousands)(2) | $ | 58,808 | $ | 1,010 | $ | — | $ | 186 | $ | 977 | $ | 270 | $ | 56,365 | ||||||||||||||
| Expiring square feet | 953,478 | 19,047 | — | 1,665 | 16,420 | 1,833 | 914,513 | |||||||||||||||||||||
| % of total square feet expiring | 100.0 | % | 2.0 | % | — | 0.2 | % | 1.7 | % | 0.2 | % | 95.9 | % | |||||||||||||||
| Annualized Cash Rent per square foot(2) | $ | 61.68 | $ | 53.03 | $ | — | $ | 111.74 | $ | 59.50 | $ | 147.28 | $ | 61.63 | ||||||||||||||
| (1) | Combined reflects 100% of consolidated properties plus the Company’s pro rata share of unconsolidated properties. |
| (2) | Annualized Cash Rent represents rental obligations at the end of the current reporting period, including contractual cash base rents, and reimbursements from tenants under existing leases, excluding electric reimbursements. |
| (3) | Excludes 37,168 square feet of leased residential space and 122,896 square feet of the hotel (which excludes space leased to the hotel restaurant tenant). Total vacant square footage at September 30, 2014 was 167,821 square feet. |
18
New York REIT, Inc.
Leasing Activity
|
|
|
|
|||||||||
| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| Leasing activity: |
||||||||||||
| Leases executed | 6 | 3 | 2 | |||||||||
| Total square feet leased | 67,437 | 45,019 | 8,379 | |||||||||
| Company’s share of square feet leased | 49,029 | 25,387 | 8,379 | |||||||||
| Initial rent | $ | 56.28 | $ | 54.65 | $ | 43.68 | ||||||
| Weighted average lease term (years) | 10.7 | 9.6 | 7.3 | |||||||||
| Replacement leases:(1) |
||||||||||||
| Replacement leases executed | 2 | 2 | 2 | |||||||||
| Square feet | 14,077 | 6,601 | 8,379 | |||||||||
| Cash basis: |
||||||||||||
| Initial rent | $ | 53.57 | $ | 43.33 | $ | 43.68 | ||||||
| Prior escalated rent(2) | $ | 49.68 | $ | 39.42 | $ | 38.09 | ||||||
| Percentage increase | 8 | % | 10 | % | 15 | % | ||||||
| GAAP basis: |
||||||||||||
| Initial rent | $ | 53.22 | $ | 43.84 | $ | 46.94 | ||||||
| Prior escalated rent(2) | $ | 49.75 | $ | 38.48 | $ | 42.57 | ||||||
| Percentage increase | 7 | % | 14 | % | 10 | % | ||||||
| Tenant improvements on replacement leases per square foot | $ | 21.85 | $ | 14.40 | $ | — | ||||||
| Leasing commissions on replacement leases per square foot | $ | 14.57 | $ | 5.89 | $ | 18.28 | ||||||
| (1) | Replacement leases are for space that was leased during the period and also has been leased at some time during the prior twelve months. |
| (2) | Prior escalated rent is calculated as total annualized income less electric charges. It includes base rent and recoveries related to property taxes and operating expenses. |
19
New York REIT, Inc.
Tenant Improvements, Leasing Commissions and Capital Expenditures
(in thousands)
|
|
|
|
|||||||||
| Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||
| Capital expenditures (accrual basis):(1) |
||||||||||||
| First generation tenant improvements | $ | 330 | $ | — | $ | — | ||||||
| Second generation tenant improvements | 305 | 363 | 1,203 | |||||||||
| First generation leasing commissions | 312 | 366 | — | |||||||||
| Second generation leasing commissions | 48 | 245 | 13 | |||||||||
| First generation building improvements | 3,277 | 1,556 | 224 | |||||||||
| Second generation building improvements | 9 | — | — | |||||||||
| Total tenant improvements, leasing commissions and capital expenditures | $ | 4,281 | $ | 2,530 | $ | 1,440 | ||||||
| (1) | Combined basis |
20
New York REIT, Inc.
Property Table
|
|
|
|
|
|
|
||||||||||||||||||
| Property | Ownership | Rentable Square Feet(1) |
Percent Occupied |
Annualized Cash Rent (in thousands) |
Annualized Cash Rent Per Occupied SF |
Number of Leases |
||||||||||||||||||
| Manhattan Office Properties – Office |
||||||||||||||||||||||||
| Design Center | 100.0 | % | 81,082 | 97.3 | % | $ | 3,516 | $ | 44.57 | 17 | ||||||||||||||
| 416 Washington Street | 100.0 | % | 1,565 | 100.0 | % | 56 | 36.02 | 1 | ||||||||||||||||
| 256 West 38th Street | 100.0 | % | 106,983 | 100.0 | % | 3,749 | 35.04 | 13 | ||||||||||||||||
| 229 West 36th Street | 100.0 | % | 128,762 | 90.5 | % | 4,456 | 38.26 | 6 | ||||||||||||||||
| 218 West 18th Street | 100.0 | % | 165,670 | 91.8 | % | 8,397 | 55.18 | 6 | ||||||||||||||||
| 50 Varick Street | 100.0 | % | 158,573 | 100.0 | % | 6,838 | 43.13 | 1 | ||||||||||||||||
| 333 West 34th Street | 100.0 | % | 317,040 | 100.0 | % | 13,854 | 43.70 | 3 | ||||||||||||||||
| 1440 Broadway | 100.0 | % | 726,344 | 89.2 | % | 37,956 | 58.56 | 10 | ||||||||||||||||
| One Worldwide Plaza | 48.9 | % | 879,602 | 94.2 | % | 54,055 | 65.21 | 7 | ||||||||||||||||
| 245-249 West 17th Street | 100.0 | % | 217,576 | 98.7 | % | 14,718 | 68.53 | 1 | ||||||||||||||||
| Manhattan Office Properties – Office Total | 2,783,197 | 94.3 | % | 147,595 | 56.26 | 65 | ||||||||||||||||||
| Manhattan Office Properties – Retail |
||||||||||||||||||||||||
| 256 West 38th Street | 100.0 | % | 10,282 | 97.8 | % | 410 | 40.71 | 2 | ||||||||||||||||
| 229 West 36th Street | 100.0 | % | 20,132 | 100.0 | % | 962 | 47.72 | 1 | ||||||||||||||||
| 333 West 34th Street | 100.0 | % | 29,688 | 100.0 | % | 1,443 | 48.61 | 1 | ||||||||||||||||
| 1440 Broadway | 100.0 | % | 29,335 | 90.3 | % | 2,972 | 112.23 | 8 | ||||||||||||||||
| One Worldwide Plaza | 48.9 | % | 126,318 | 98.6 | % | 4,722 | 37.91 | 20 | ||||||||||||||||
| 245-249 West 17th Street | 100.0 | % | 63,718 | 100.0 | % | 4,980 | 78.16 | 2 | ||||||||||||||||
| Manhattan Office Properties – Retail Total | 279,473 | 98.3 | % | 15,489 | 56.40 | 34 | ||||||||||||||||||
| Sub-Total/Weighted Average Manhattan Office Properties – Office and Retail |
3,062,670 | 94.6 | % | 163,084 | 56.27 | 99 | ||||||||||||||||||
| Manhattan Stand Alone Retail |
||||||||||||||||||||||||
| 367-387 Bleecker Street | 100.0 | % | 9,724 | 100.0 | % | 2,585 | 265.88 | 5 | ||||||||||||||||
| 33 West 56th Street | 100.0 | % | 12,856 | 100.0 | % | 445 | 34.63 | 1 | ||||||||||||||||
| 416 Washington Street | 100.0 | % | 7,436 | 100.0 | % | 445 | 59.82 | 2 | ||||||||||||||||
| One Jackson Square | 100.0 | % | 8,392 | 100.0 | % | 1,529 | 182.21 | 4 | ||||||||||||||||
| 350 West 42nd Street | 100.0 | % | 42,774 | 100.0 | % | 1,703 | 39.82 | 4 | ||||||||||||||||
| 350 Bleecker Street | 100.0 | % | 14,511 | 100.0 | % | 1,081 | 74.52 | 3 | ||||||||||||||||
| Sub-Total/Weighted Average Manhattan Stand Alone Retail | 95,693 | 100.0 | % | 7,788 | 81.39 | 19 | ||||||||||||||||||
| Outer-Borough Properties |
||||||||||||||||||||||||
| 86th Street, Brooklyn | 100.0 | % | 6,118 | 100.0 | % | 482 | 78.77 | 1 | ||||||||||||||||
| 163 Washington Avenue, Brooklyn | 97.4 | % | 41,613 | 92.1 | % | 1,994 | 52.02 | 47 | ||||||||||||||||
| 163-30 Cross Bay, Queens | 100.0 | % | 9,767 | 100.0 | % | 1,065 | 108.99 | 1 | ||||||||||||||||
| 1100 Kings Highway, Brooklyn | 100.0 | % | 61,318 | 100.0 | % | 2,687 | 43.82 | 5 | ||||||||||||||||
| 1623 Kings Highway, Brooklyn | 100.0 | % | 19,959 | 100.0 | % | 1,041 | 52.13 | 3 | ||||||||||||||||
| Sub-Total/Weighted Average Outer-Borough Properties | 138,775 | 97.6 | % | 7,269 | 53.64 | 57 | ||||||||||||||||||
| Portfolio Total | 3,297,138 | 94.9 | % | $ | 178,141 | $ | 56.93 | 175 | ||||||||||||||||
| (1) | Does not include 128,612 square feet at the Viceroy Hotel, or antenna leases at Worldwide Plaza. |
Hotel operations for the quarter consisted of the following:
|
|
|
||||||
| Average occupancy | 76.2 | % | ||||||
| Average daily rate | $ | 324.66 | ||||||
| REVPAR | $ | 247.61 | ||||||
21
New York REIT, Inc.
Definitions
Definitions
This section contains an explanation of certain non-GAAP financial measures we provide in other sections of this document, as well as the reasons why management believes these measures provide useful information to investors about the Company’s financial condition or results of operations. Additional detail can be found in the Company’s most recent annual report on Form 10-K as well as other documents filed with or furnished to the SEC from time to time.
Adjusted funds from operations (AFFO)
AFFO is Core FFO, excluding certain income or expense items that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities that are not a fundamental attribute of our business plan. These items include unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments, gains or losses on contingent valuation rights, gains and losses on investments and early extinguishment of debt. In addition, by excluding non-cash income and expense items such as amortization of above and below market leases, amortization of deferred financing costs, straight-line rent and non-cash equity compensation from AFFO we believe we provide useful information regarding income and expense items which have no cash impact and do not provide liquidity to the Company or require capital resources of the Company. We exclude distributions related to Class B units and certain interest expenses related to securities that are convertible to common stock as the shares are assumed to have converted to common stock in our calculation of weighted average common shares-fully diluted. Furthermore we include certain cash inflows and outflows that are reflective of operating activities including preferred returns on joint ventures, second generation tenant improvements and leasing commissions (included in the period in which the lease commences) and recurring capital expenditures. We also include items such as free rent credits paid by sellers because these funds are paid to us during the free rent period and therefore improve our liquidity and ability to pay dividends.
Although our AFFO may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to stockholders. In addition, we believe that to further understand our liquidity, AFFO should be compared with our cash flows determined in accordance with GAAP, as presented in our consolidated financial statements. AFFO does not represent cash generated from operating activities determined in accordance with GAAP, and AFFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.
Annualized Cash Rent
Cash rent at the end of the reporting period, including operating expense reimbursements, excluding electric. Real estate tax reimbursements are typically multiplied by two because they are paid semi-annually. Free rent periods are excluded from annualized cash rent.
Cash net operating income (Cash NOI)
NOI, presented on a cash basis, which is NOI after eliminating the effects of straight-lining of rent and fair value lease revenue.
Core funds from operations (Core FFO)
Core FFO is FFO, excluding acquisition and transaction related costs as well as certain other costs that management deems to be non-recurring. The purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our business plan to generate operational income and cash flows in order to make distributions to investors. In evaluating investments in real estate, management differentiates the costs to acquire the investment from the operations derived from the investment. By excluding expensed acquisition costs, management believes Core FFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties.
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New York REIT, Inc.
Definitions
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)
EBITDA is defined as net income before interest, taxes, depreciation and amortization including our pro-rata share of investments in unconsolidated joint ventures. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs. EBITDA is adjusted to include our pro-rata share of EBITDA from unconsolidated joint ventures and acquisition fees and expenses.
Effective interest rate
The annualized rate, on a 365-day basis, at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums and deferred financing costs. For instance, the stated interest rate in a loan agreement may be based on a 360 day year. Therefore, the effective interest rate would be the stated rate divided by 360 x 365 days in the year.
First generation building improvements
Capital expenditures on first generation space, as defined below, that are not tenant improvement or leasing commission related.
First generation space
Space that is vacant at acquisition or space that was not consistent with the Company’s operating standards.
First generation tenant improvements and leasing commissions
Tenant improvements and leasing commissions incurred on first generation space as defined above.
Funds from operations (FFO)
Pursuant to the revised definition of funds from operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate funds from operations (FFO), by adjusting net income (loss) attributable to stockholders (computed in accordance with GAAP, including non-recurring items) for gains (or losses) from sales of properties, impairment losses on depreciable real estate of consolidated real estate, impairment losses on investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses related to asset sales (land and property), impairment losses and real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO should not be considered as an alternative to net income attributable to stockholders (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO should be compared with our reported net income attributable to stockholders and considered in addition to cash flows determined in accordance with GAAP, as presented in our consolidated financial statements.
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New York REIT, Inc.
Definitions
Net operating income (NOI)
Net operating income (NOI) is a non-GAAP financial measure equal to net income attributable to stockholders, the most directly comparable GAAP financial measure, less discontinued operations, plus corporate general and administrative expense, acquisition and transaction costs, depreciation and amortization and interest expense, income from unconsolidated joint ventures, interest and other income and gains from investments in securities. NOI is adjusted to include our pro-rata share of NOI from unconsolidated joint ventures. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income, as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.
Replacement leases
Leases signed during the current period for space that had been previously leased at any point during the previous twelve months.
Prior escalated rent
Cash rent at expiration of the lease, including real estate tax and other operating expense reimbursements, multiplied by twelve.
Second generation capital expenditures
Represents building investments to maintain current revenues. These capital expenditures which may occur on a regular basis, may relate to repairs and maintenance that extend the useful life of an asset and are therefore capitalized. These costs are included in our calculation of AFFO.
Second generation space
Any space that is not first generation space.
Second generation tenant improvements and leasing commissions
Tenant improvements, leasing commissions, and other leasing costs incurred during leasing of second generation space.
Stated interest rate
The rate at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums and deferred financing costs.
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| Executive Management Team | ||
| Nicholas S. Schorsch | Chief Executive Officer and Chairman of the Board |
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| Michael A. Happel | President | |
| Gregory W. Sullivan | Chief Financial Officer and Chief Operating Officer |
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| Board of Directors | ||
| Nicholas S. Schorsch Chief Executive Officer and Chairman of the Board |
Director | |
| William M. Kahane Former Chief Executive Officer RCS Capital Corp. |
Director | |
| P. Sue Perrotty President and Chief Executive Officer AFM Financial Services |
Independent Director | |
| Robert H. Burns Former Chairman and Chief Executive Officer Regent International Hotels |
Independent Director | |
| William G. Stanley Managing Member Stanley Laman Securities, LLC |
Independent Director | |
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| Company Information | ||
| Address: | 405 Park Avenue New York, NY 10022 |
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| Phone: | 212-415-6500 | |
| Website: | www.nyrt.com | |
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