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Note 3 - Property Acquisitions, Developments and Other Investments | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Business Combination Disclosure [Text Block] | 3. Property Acquisitions, Developments and Other Investments: Acquisition of Operating Properties During the year ended December 31, 2016, the Company acquired the following operating properties, in separate transactions (in thousands):
|  |  |  | Purchase Price |
Property Name | Location | Month Acquired |  | Cash* |  |  | Debt Assumed |  |  | Other** |  |  | Total |  |  | GLA*** |
Jericho Atrium | Jericho, NY | Apr-16 |  | $ | 29,750 |  |  | $ | - |  |  | $ | - |  |  | $ | 29,750 |  |  |  | 147 |
Oakwood Plaza | Hollywood, FL (1) | Apr-16 |  |  | 53,412 |  |  |  | 100,000 |  |  |  | 61,588 |  |  |  | 215,000 |  |  |  | 899 |
Webster Square North | Nashua, NH | Jul-16 |  |  | 8,200 |  |  |  | - |  |  |  | - |  |  |  | 8,200 |  |  |  | 21 |
Gateway Plaza | Mill Creek, WA (1) | Jul-16 |  |  | 493 |  |  |  | 17,500 |  |  |  | - |  |  |  | 17,993 |  |  |  | 97 |
Kentlands Market Square | Gaithersburg, MD | Aug-16 |  |  | 61,826 |  |  |  | 33,174 |  |  |  | - |  |  |  | 95,000 |  |  |  | 221 |
GEPT Portfolio (4 properties) | Various (1) | Sep-16 |  |  | 79,974 |  |  |  | 76,989 |  |  |  | 10,882 |  |  |  | 167,845 |  |  |  | 681 |
Coulter Avenue (2 parcels) | Ardmore, PA | Various |  |  | 6,750 |  |  |  | - |  |  |  | - |  |  |  | 6,750 |  |  |  | 20 |
KimPru Portfolio (2 properties) | Various (1) | Oct-16 |  |  | 15,505 |  |  |  | 35,700 |  |  |  | 3,218 |  |  |  | 54,423 |  |  |  | 234 |
Hamden Mart | Hamden, CT (1) | Nov-16 |  |  | - |  |  |  | 21,369 |  |  |  | 29,294 |  |  |  | 50,663 |  |  |  | 345 |
|  |  |  | $ | 255,910 |  |  | $ | 284,732 |  |  | $ | 104,982 |  |  | $ | 645,624 |  |  |  | 2,665 |
* The Company utilized $66.0 million associated with Internal Revenue Code §1031 sales proceeds. ** Includes the Company’s previously held equity interest investment. *** Gross leasable area ("GLA")
(1) | The Company acquired from its partners their ownership interest in properties that were held in joint ventures in which the Company had noncontrolling interests. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interests resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in the purchase price above in Other. The Company’s previous ownership interests and gains on change in control of interests recognized as a result of these transactions are as follows (in millions):
Property Name |  | Previous Ownership Interest |  |  | Gain on change in control of interests, net |
Oakwood Plaza |  |  | 55.0 | % |  | $ | 46.5 |
Gateway Plaza |  |  | 15.0 | % |  |  | - |
GEPT Portfolio (4 properties) |  |  | 15.0 | % |  |  | 6.6 |
KimPru Portfolio (2 properties) |  |  | 15.0 | % |  |  | 0.8 |
Hamden Mart |  |  | 47.95 | % |  |  | 3.5 |
|  |  |  |  |  |  |  |  |  | $ | 57.4 |
During the year ended December 31, 2015, the Company acquired the following properties, in separate transactions (in thousands):
|  |  |  | Purchase Price |
Property Name | Location | Month Acquired |  | Cash* |  |  | Debt Assumed |  |  | Other ** |  |  | Total |  |  | GLA** * |
Elmont Plaza | Elmont, NY (1) | Jan-15 |  | $ | 2,400 |  |  | $ | - |  |  | $ | 3,358 |  |  | $ | 5,758 |  |  |  | 13 |
Garden State Pavilion Parcel | Cherry Hill, NJ | Jan-15 |  |  | 16,300 |  |  |  | - |  |  |  | - |  |  |  | 16,300 |  |  |  | 111 |
Kimstone Portfolio (39 properties) | Various (1) | Feb-15 |  |  | 513,513 |  |  |  | 637,976 |  |  |  | 236,011 |  |  |  | 1,387,500 |  |  |  | 5,631 |
Copperfield Village | Houston, TX | Feb-15 |  |  | 18,700 |  |  |  | 20,800 |  |  |  | - |  |  |  | 39,500 |  |  |  | 165 |
Snowden Square Parcel | Columbia, MD | Mar-15 |  |  | 4,868 |  |  |  | - |  |  |  | - |  |  |  | 4,868 |  |  |  | 25 |
Dulles Town Crossing Parcel | Sterling, VA | Mar-15 |  |  | 4,830 |  |  |  | - |  |  |  | - |  |  |  | 4,830 |  |  |  | 9 |
Flagler Park S.C. | Miami, FL | Mar-15 |  |  | 1,875 |  |  |  | - |  |  |  | - |  |  |  | 1,875 |  |  |  | 5 |
West Farms Parcel | New Britain, CT | Apr-15 |  |  | 6,200 |  |  |  | - |  |  |  | - |  |  |  | 6,200 |  |  |  | 24 |
Milleridge Inn | Jericho, NY | Apr-15 |  |  | 7,500 |  |  |  | - |  |  |  | - |  |  |  | 7,500 |  |  |  | - |
Woodgrove Festival (2 Parcels) | Woodridge, IL | Jun-15 |  |  | 5,611 |  |  |  | - |  |  |  | - |  |  |  | 5,611 |  |  |  | 12 |
Montgomery Plaza | Fort Worth, TX (1) | Jul-15 |  |  | 34,522 |  |  |  | 29,311 |  |  |  | 9,044 |  |  |  | 72,877 |  |  |  | 291 |
125 Coulter Avenue Parcel | Ardmore, PA | Sep-15 |  |  | 1,925 |  |  |  | - |  |  |  | - |  |  |  | 1,925 |  |  |  | 6 |
Conroe Marketplace | Conroe, TX (1) | Oct-15 |  |  | 18,546 |  |  |  | 42,350 |  |  |  | 3,104 |  |  |  | 64,000 |  |  |  | 289 |
Laurel Plaza | Laurel, MD | Oct-15 |  |  | 1,200 |  |  |  | - |  |  |  | - |  |  |  | 1,200 |  |  |  | 4 |
District Heights | District Heights, MD (1) | Nov-15 |  |  | 13,140 |  |  |  | 13,255 |  |  |  | 950 |  |  |  | 27,345 |  |  |  | 91 |
Village on the Park | Aurora, CO | Nov-15 |  |  | 824 |  |  |  | - |  |  |  | - |  |  |  | 824 |  |  |  | 10 |
Christown Mall | Phoenix, AZ | Nov-15 |  |  | 51,351 |  |  |  | 63,899 |  |  |  | - |  |  |  | 115,250 |  |  |  | 833 |
Washington St. Plaza Parcels | Brighton, MA | Dec-15 |  |  | 8,750 |  |  |  | - |  |  |  | - |  |  |  | 8,750 |  |  |  | - |
|  |  |  | $ | 712,055 |  |  | $ | 807,591 |  |  | $ | 252,467 |  |  | $ | 1,772,113 |  |  |  | 7,519 |
* The Company utilized $89.5 million associated with Internal Revenue Code §1031 sales proceeds. ** Includes the Company’s previously held equity interest investment. *** Gross leasable area ("GLA")
(1) | The Company acquired from its partners their ownership interest in properties that were held in joint ventures in which the Company had noncontrolling interests. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interests resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in the purchase price above in Other. The Company’s previous ownership interests and gains on change in control of interests recognized as a result of these transactions are as follows (in millions):
Property Name |  | Previous Ownership Interest |  |  | Gain on change in control of interests, net |
Elmont Plaza |  |  | 50.0 | % |  | $ | (0.2 | )
Kimstone Portfolio (39 properties) |  |  | 33.3 | % |  |  | 140.0 |
Montgomery Plaza |  |  | 20.0 | % |  |  | 6.3 |
Conroe Marketplace |  |  | 15.0 | % |  |  | 2.4 |
District Heights |  |  | 15.0 | % |  |  | 0.7 |
|  |  |  |  |  | $ | 149.2 |
Included in the Company’s Consolidated Statements of Income are $23.8 million, $112.2 million and $75.3 million in revenues from rental properties from the date of acquisition through December 31, 2016, 2015 and 2014, respectively, for operating properties acquired during each of the respective years. Purchase Price Allocations The purchase price for acquisitions is preliminarily allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for business combinations. The purchase price allocations and related accounting is finalized upon completion of the Company’s valuation studies. Accordingly, the fair values allocated to these assets and liabilities are subject to revision. The Company records allocation adjustments, where applicable, when purchase price allocations are finalized. The preliminary allocations, allocation adjustments and revised allocations for properties acquired during the year ended December 31, 2016, are as follows (in thousands):
|  | Preliminary Allocation |  |  | Allocation Adjustments |  |  | Revised Allocation as of December 31, 2016 |  |  | Weighted-Average Amortization Period (in Years) |
Land |  | $ | 179,150 |  |  | $ | (13,352 | ) |  | $ | 165,798 |  |  |  | - |
Buildings |  |  | 309,493 |  |  |  | 69,581 |  |  |  | 379,074 |  |  |  | 50.0 |
Above-market leases |  |  | 11,982 |  |  |  | (4,304 | ) |  |  | 7,678 |  |  |  | 8.1 |
Below-market leases |  |  | (31,903 | ) |  |  | (4,327 | ) |  |  | (36,230 | ) |  |  | 19.1 |
In-place leases |  |  | 44,094 |  |  |  | (4,162 | ) |  |  | 39,932 |  |  |  | 6.4 |
Building improvements |  |  | 124,105 |  |  |  | (40,194 | ) |  |  | 83,911 |  |  |  | 45.0 |
Tenant improvements |  |  | 12,788 |  |  |  | (2,548 | ) |  |  | 10,240 |  |  |  | 7.1 |
Mortgage fair value adjustment |  |  | (4,292 | ) |  |  | (694 | ) |  |  | (4,986 | ) |  |  | 4.1 |
Other assets |  |  | 234 |  |  |  | - |  |  |  | 234 |  |  |  | - |
Other liabilities |  |  | (27 | ) |  |  | - |  |  |  | (27 | ) |  |  | - |
Net assets acquired |  | $ | 645,624 |  |  | $ | - |  |  | $ | 645,624 |  |  |  |  |
The allocation adjustments and revised allocations for properties acquired during the year ended December 31, 2015, are as follows (in thousands):
|  | Allocation as of December 31, 2015 |  |  | Allocation Adjustments |  |  | Revised Allocation as of December 31, 2016 |  |  | Weighted-Average Amortization Period (in Years) |
Land |  | $ | 444,626 |  |  | $ | 33,918 |  |  | $ | 478,544 |  |  |  | - |
Buildings |  |  | 1,063,124 |  |  |  | (7,980 | ) |  |  | 1,055,144 |  |  |  | 50.0 |
Above-market leases |  |  | 34,182 |  |  |  | (2,133 | ) |  |  | 32,049 |  |  |  | 7.2 |
Below-market leases |  |  | (74,997 | ) |  |  | (6,306 | ) |  |  | (81,303 | ) |  |  | 17.7 |
In-place leases |  |  | 125,993 |  |  |  | 1,425 |  |  |  | 127,418 |  |  |  | 4.7 |
Building improvements |  |  | 169,116 |  |  |  | (20,724 | ) |  |  | 148,392 |  |  |  | 45.0 |
Tenant improvements |  |  | 34,814 |  |  |  | 1,800 |  |  |  | 36,614 |  |  |  | 6.1 |
Mortgage fair value adjustment |  |  | (27,615 | ) |  |  | - |  |  |  | (27,615 | ) |  |  | 3.0 |
Other assets |  |  | 3,058 |  |  |  | - |  |  |  | 3,058 |  |  |  | - |
Other liabilities |  |  | (188 | ) |  |  | - |  |  |  | (188 | ) |  |  | - |
Net assets acquired |  | $ | 1,772,113 |  |  | $ | - |  |  | $ | 1,772,113 |  |  |  |  |
Other Investments During the year ended December 31, 2015, the Company entered into an agreement to acquire the remaining 50.0% interest in a property previously held in a joint venture in which the Company had a noncontrolling interest for a gross purchase price of $23.0 million. Upon signing this contract, which closed in January 2016, the Company effectively gained control of the entity and is entitled to all economics and risk of loss and as such, the Company consolidated this property pursuant to the FASB’s Consolidation guidance. Additionally, as the Company was required to purchase the partners interest at a fixed and determinable price in January 2016, the Company recognized $11.5 million within Other liabilities in the Company’s Consolidated Balance Sheets at December 31, 2015. Based upon the Company’s intent to redevelop a portion of the property, the Company allocated $8.4 million of the gross purchase price to Real estate under development on the Company’s Consolidated Balance Sheets and the remaining $14.6 million was allocated to Operating real estate on the Company’s Consolidated Balance Sheets. During the year ended December 31, 2015, the Company acquired three land parcels, in separate transactions, for an aggregate purchase price of $30.0 million. Pro Forma Financial Information (Unaudited) As discussed above, the Company and certain of its subsidiaries acquired interests in certain operating properties during 2016 and 2015. The pro forma financial information set forth below is based upon the Company's historical Consolidated Statements of Income for the years ended December 31, 2016 and 2015, adjusted to give effect to properties acquired during the years ended December 31, 2016 and 2015, as if they were acquired at the beginning of 2014 and 2013. The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of income would have been, nor does it purport to represent the results of income for future periods. (Amounts presented in millions, except per share figures).
|  | Year ended December 31, |
|  | 201 6 |  |  | 201 5 |  |  | 201 4 |
Revenues from rental properties |  | $ | 1,174.9 |  |  | $ | 1,198.6 |  |  | $ | 1,097.8 |
Net income |  | $ | 397.7 |  |  | $ | 921.6 |  |  | $ | 521.9 |
Net income available to the Company |  | $ | 344.2 |  |  | $ | 852.6 |  |  | $ | 451.7 |
Net income available to the Company per common share: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.82 |  |  | $ | 2.07 |  |  | $ | 1.10 |
Diluted |  | $ | 0.82 |  |  | $ | 2.07 |  |  | $ | 1.10 |

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