XML 115 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 4 - Property Acquisitions, Developments and Other Investments
 12 Months Ended
Dec. 31, 2012
Business Combination Disclosure [Text Block]
4.   Property Acquisitions, Developments and Other Investments:

Operating property acquisitions, ground-up development costs and other investments have been funded principally through the application of proceeds from the Company's public equity and unsecured debt issuances, proceeds from mortgage and construction financings and availability under the Company’s revolving lines of credit.

Acquisition of Operating Properties –

During the year ended December 31, 2012, the Company acquired 24 operating properties, 69 net leased parcels and five outparcels, in separate transactions as follows (in thousands):

           
Purchase Price
       
Property Name
 
Location
 
Month Acquired
 
Cash
   
Debt Assumed
   
Total
   
GLA*
 
Woodbridge S.C.
 
Sugarland, TX
 
Jan-12
  $ 9,000     $ -     $ 9,000       97  
Bell Camino Center
 
Sun City, AZ
 
Jan-12
    4,185       4,210       8,395       63  
31 parcels (2)
 
Various
 
Jan-12
    30,753       -       30,753       83  
1 parcel (3)
 
Duncan, SC
 
Jan-12
    1,048       -       1,048       3  
Olympia West Outparcel
 
Olympia, WA
 
Feb-12
    1,200       -       1,200       6  
Frontier Village (1)
 
Lake Stevens, WA
 
Mar-12
    12,231       30,900       43,131       195  
Silverdale S.C. (1)
 
Silverdale, WA
 
Mar-12
    8,335       24,000       32,335       170  
30 parcels (2)
 
Various
 
Mar-12
    39,493       -       39,493       107  
1 parcel (3)
 
Peru, IL
 
Mar-12
    995       -       995       4  
Towson Place (4)
 
Towson, MD
 
Apr-12
    69,375       57,625       127,000       680  
Prien Lake Outparcel
 
Lake Charles, LA
 
May-12
    1,800       -       1,800       8  
Devon Village
 
Devon, PA
 
Jun-12
    28,550       -       28,550       79  
4 Properties
 
Various, NC
 
Jun-12
    63,750       -       63,750       368  
Lake Jackson (5)
 
Lake Jackson, TX
 
Jul-12
    5,500       -       5,500       35  
Woodlawn S.C.
 
Charlotte, NC
 
Jul-12
    7,050       -       7,050       137  
Columbia Crossing - 2 Outparcels
 
Columbia, MD
 
Jul-12
    11,060       -       11,060       69  
Pompano Beach (6)
 
Pompano Beach, FL
 
Jul-12
    12,180       -       12,180       81  
6 Parcels (2)
 
Various
 
Jul-12
    8,111       -       8,111       19  
Wilton S.C.
 
Wilton, CT
 
Aug-12
    18,800       20,900       39,700       96  
Hawthorne Hills S. C.
 
Vernon Hills, IL
 
Aug-12
    15,974       21,563       37,537       193  
Greeley Shopping Center (7)
 
Greeley, CO
 
Oct-12
    23,250       -       23,250       139  
Savi Ranch Center Phase II
 
Yorba Linda, CA
 
Oct-12
    34,500       -       34,500       161  
Wild Lake Plaza Outparcel
 
Columbia, MD
 
Nov-12
    300       -       300       75  
City Heights Retail Village
 
San Francisco, CA
 
Nov-12
    15,600       20,000       35,600       109  
Snowden Square (8)
 
Columbia, MD 
 
Dec-12
    6,182       -       6,182       50  
“Key Food” Portfolio (5 properties)
 
Various, NY
 
Dec-12
    26,058       -       26,058       59  
       
  Total
  $ 455,280     $ 179,198     $ 634,478       3,086  

* Gross leasable area ("GLA")

(1)  These properties were acquired from a joint venture in which the Company has a 15% noncontrolling interest.  The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as such recognized an aggregate gain of $2.0 million from the fair value adjustment associated with its original ownership due to a change in control.

(2)  Acquired an aggregate of 67 parcels net leased to restaurants through a consolidated joint venture, in which the Company has a 99.1% controlling interest.  During July 2012, the Company purchased the remaining 0.9% interest for $0.7 million.

(3)  Acquired an aggregate of two parcels net leased to restaurants through a consolidated joint venture, in which the Company has a 92.0% controlling interest.  During July 2012, the Company sold 4% of its interest for $0.1 million.  The Company continues to have a controlling interest in the joint venture and therefore continues to consolidate this investment.

(4)  This property was acquired from a joint venture in which the Company had a 30% noncontrolling interest.  The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as such recognized a gain of $12.1 million from the fair value adjustment associated with its original ownership due to a change in control.  In addition, the Company recognized promote income of $1.1 million in connection with this transaction.  The promote income is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Income.   Additionally, the debt assumed in connection with this transaction of $57.6 million was repaid in May 2012.

(5)  The Company acquired this property from a preferred equity investment in which the Company held a noncontrolling interest. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance.  This transaction resulted in a change in control with no gain or loss recognized.

(6)  This property was acquired from a joint venture in which the Company had a 50% noncontrolling interest.  The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance.  This transaction resulted in a change in control with no gain or loss recognized.

(7)  This property was acquired from a joint venture in which the Company has an 11% noncontrolling interest.  The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as such recognized a gain of $0.4 million from the fair value adjustment associated with its original ownership due to a change in control.

(8)  This property was acquired from a joint venture in which the Company has a 50% noncontrolling interest.  The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as such recognized a gain of $1.0 million from the fair value adjustment associated with its original ownership due to a change in control.

During the year ended December 31, 2011, the Company acquired 19 operating properties, a land parcel and an outparcel, in separate transactions as follows (in thousands):

             
Purchase Price
 
Property Name
   
Location
 
Month
Acquired
 
Cash
   
Debt
Assumed
   
Total
   
GLA*
 
Columbia Crossing
   
Columbia, MD
 
Jan-11
  $ 4,100     $ -     $ 4,100       31  
Turnpike Plaza
   
Huntington Station, NY
 
Feb-11
    7,920       -       7,920       53  
Center Court
   
Pikesville, MD
 
Mar-11
    9,955       15,445       25,400       106  
Flowery Branch
   
Flowery Branch, GA
 
April-11
    4,427       9,273       13,700       93  
Garden State Pavilions
   
Cherry Hill, NJ
 
June-11
    18,250       -       18,250       257  
Village Crossroads
   
Phoenix, AZ
 
July-11
    29,240       -       29,240       185  
University Town Center
(1)  
Pensacola, FL
 
Aug-11
    17,750       -       17,750       101  
Gateway Station
(2)  
Burleson, TX
 
Sept-11
    6,625       18,832       25,457       280  
Park Hill Plaza
   
Miami, FL
 
Sept-11
    17,251       8,199       25,450       112  
Island Gate
   
Corpus Christi, TX
 
Oct-11
    8,750       -       8,750       60  
Village Center West
   
Highlands Ranch, CO
 
Oct-11
    3,995       6,105       10,100       30  
Belleville Road S.C.
(3)  
Fairview Heights, IL
 
Oct-11
    1,900       -       1,900       -  
Grand Oaks Village
   
Orlando, FL
 
Nov-11
    19,051       5,949       25,000       86  
Market at Southpark
   
Littleton, CO
 
Nov-11
    30,000       -       30,000       190  
Jetton Village Shoppes
   
Charlotte, NC
 
Nov-11
    5,110       8,250       13,360       81  
Brennan Station
   
Raleigh, NC
 
Nov-11
    20,225       9,125       29,350       136  
Woodruff Outparcel
(4)  
Woodruff, SC
 
Nov-11
    1,183       -       1,183       119  
Westridge Square
   
Greensboro, NC
 
Nov-11
    26,125       -       26,125       215  
Highlands Ranch
   
Highland Ranch, CO
 
Nov-11
    7,035       20,599       27,634       123  
North Valley Plaza
   
Peoria, AZ
 
Dec-11
    7,260       16,135       23,395       168  
College Park S.C.
   
Tempe, AZ
 
Dec-11
    10,500       -       10,500       62  
         
Total
  $ 256,652     $ 117,912     $ 374,564       2,488  

* Gross leasable area ("GLA")

(1)  This property was acquired from a joint venture in which the Company has a 13.4% noncontrolling interest.  The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as such recorded a gain of  $0.6 million from the fair value adjustment associated with its original 13.4% ownership due to a change in control.

(2)  The Company purchased the leasehold improvements at this property for which it previously owned the land.

(3)  The Company acquired the land at this site for which it previously held a ground lease.

(4)  The Company purchased this out parcel next to an existing property that the Company previously owned.

      The aggregate purchase price of the above 2012 and 2011 property acquisitions have been allocated as follows (in thousands):

   
2012
   
2011
 
Land
  $ 196,219     $ 104,824  
Buildings
    319,955       174,129  
Below Market Rents
    (40,375 )     (16,958 )
Above Market Rents
    14,977       12,345  
In-Place Leases
    31,248       20,031  
Building Improvements
    99,092       72,979  
Tenant Improvements
    19,327       14,110  
Mortgage Fair Value Adjustment
    (5,965 )     (6,896 )
    $ 634,478     $ 374,564  

Additionally, during the years ended December 31, 2012 and 2011, the Company acquired the remaining interest in six and two previously consolidated joint ventures for $12.0 million and $0.2 million, respectively.  Also during 2011, the Company acquired additional interests in two separate consolidated joint ventures for an aggregate cost of $9.7 million.  The Company continues to consolidate these entities as there was no change in control from these transactions. The purchase of the remaining and additional partnership interests resulted in an aggregate decrease in noncontrolling interest of $10.4 million and $13.0 million for the years ended December 31, 2012 and 2011, respectively, and an aggregate decrease of $0.3 million and an aggregate increase of $3.6 million to the Company’s Paid-in capital, during 2012 and 2011, respectively.

Ground-Up Development -

The Company is engaged in ground-up development projects, which will be held as long-term investments by the Company.  As of December 31, 2012, the Company had in progress a total of three ground-up development projects, consisting of two located in the U.S. and one located in Peru.

During 2011, the Company acquired a land parcel located in Lima, Peru through a newly formed joint venture in which the Company has a 95% controlling ownership interest for a purchase price of 6.8 million Peruvian Sols (USD $2.5 million).  This parcel will be developed into a grocery anchored shopping center.

Kimsouth -

Kimsouth Realty Inc. (“Kimsouth”) is a wholly-owned subsidiary of the Company that holds a 13.4% noncontrolling interest in a joint venture which owns a portion of Albertson’s Inc.  During 2012, the joint venture distributed $50.3 million of which the Company received $6.9 million, which was recognized as income from cash received in excess of the Company’s investment, before income tax.  During 2011, the joint venture distributed  $100.0 million of which the Company received  $13.9 million, which was recognized as income from cash received in excess of the Company’s investment, before income tax.  The income for both 2012 and 2011 was included in Equity in income from other real estate investments, net on the Company’s Consolidated Statements of Income.

       FNC Realty Corporation –

During 2011, the Company acquired an additional 12.48% interest in FNC Realty Corporation (“FNC”) for  $12.4 million, which increased the Company’s total controlling ownership interest to  69.08%.  During 2012, the Company acquired an additional 13.62% interest in FNC for $15.3 million, which increased the Company’s total ownership interest to 82.70%.  The Company had previously and continues to consolidate FNC. Since there was no change in control from these transactions, the purchase of the additional interest resulted in an increase to the Company’s Paid-in capital of $0.1 million and $1.0 million during 2012 and 2011, respectively.