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Note 3 - Property Acquisitions, Developments and Other Investments | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Business Combination Disclosure [Text Block] |
3. | Property Acquisitions, Developments and Other Investments:
Acquisition /Consolidation of Operating Properties During the year ended December 31, 2018, the Company acquired two land parcels adjacent to existing shopping centers located in Ardmore, PA and Elmont, NY, in separate transactions, for an aggregate purchase price of $5.4 million. During the year ended December 31, 2017, the Company acquired the following operating properties, in separate transactions, through direct asset purchases or consolidation due to change in control resulting from the purchase of additional interests or obtaining control through the modification of a joint venture investment:
|  |  |  | Purchase Price (in thousands) |
Property Name | Location | Month Acquired/ Consolidated |  | Cash* |  |  | Debt |  |  | Other Conside r ation * * |  |  | Total |  |  | GLA*** |
Plantation Commons | Plantation, FL (1) (3) | Jan-17 |  | $ | - |  |  | $ | - |  |  | $ | 12,300 |  |  | $ | 12,300 |  |  |  | 60 |
Gordon Plaza | Woodbridge, VA (1) (3) | Jan-17 |  |  | - |  |  |  | - |  |  |  | 3,100 |  |  |  | 3,100 |  |  |  | 184 |
Plaza del Prado | Glenview, IL | Jan-17 |  |  | 39,063 |  |  |  | - |  |  |  | - |  |  |  | 39,063 |  |  |  | 142 |
Columbia Crossing Parcel | Columbia Crossing, MD | Jan-17 |  |  | 5,100 |  |  |  | - |  |  |  | - |  |  |  | 5,100 |  |  |  | 25 |
The District at Tustin Legacy | Tustin, CA (2) (3) | Apr-17 |  |  | - |  |  |  | 206,000 |  |  |  | 98,698 |  |  |  | 304,698 |  |  |  | 688 |
Jantzen Beach Center | Portland, OR | Jul-17 |  |  | 131,927 |  |  |  | - |  |  |  | - |  |  |  | 131,927 |  |  |  | 722 |
Del Monte Plaza Parcel | Reno, NV | Jul-17 |  |  | 24,152 |  |  |  | - |  |  |  | - |  |  |  | 24,152 |  |  |  | 83 |
Gateway Station Phase II | Burleson, TX | Aug-17 |  |  | 15,355 |  |  |  | - |  |  |  | - |  |  |  | 15,355 |  |  |  | 79 |
Jantzen Beach Center Parcel | Portland, OR | Sep-17 |  |  | 6,279 |  |  |  | - |  |  |  | - |  |  |  | 6,279 |  |  |  | 25 |
Webster Square Outparcel | Nashua, NH | Sep-17 |  |  | 4,985 |  |  |  | - |  |  |  | - |  |  |  | 4,985 |  |  |  | 22 |
Whittwood Town Center | Whittier, CA | Oct-17 |  |  | 80,397 |  |  |  | 43,000 |  |  |  | - |  |  |  | 123,397 |  |  |  | 783 |
123 Coulter Avenue Parcel | Ardmore, PA | Oct-17 |  |  | 4,808 |  |  |  | - |  |  |  | - |  |  |  | 4,808 |  |  |  | 1 |
Fulton Marketplace Parcel | Santa Rosa, CA | Nov-17 |  |  | 13,162 |  |  |  | - |  |  |  | - |  |  |  | 13,162 |  |  |  | 61 |
|  |  |  | $ | 325,228 |  |  | $ | 249,000 |  |  | $ | 114,098 |  |  | $ | 688,326 |  |  |  | 2,875 |
* The Company utilized an aggregate $162.4 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 has a controlling interest in these properties and has deemed these entities to be VIEs for which the Company is the primary beneficiary and consolidates these assets.
( 2 ) | Effective April 1, 2017, the Company and its partner amended its joint venture agreement relating to the Company’s investment in this property. As a result of this amendment, the Company controls the entity and consolidates the property. This entity is deemed to be a VIE for which the Company is the primary beneficiary.
( 3 ) | 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 Consideration. The Company’s current ownership interests and gains on change in control of interests recognized as a result of these transactions are as follows (in thousands):
Property Name |  | Previous Ownership Interest |  |  | Gain on change in control of joint venture interests |
Plantation Commons |  |  | 76.25 | % |  | $ | 9,793 |
Gordon Plaza |  |  | 40.62 | % |  |  | 395 |
The District at Tustin Legacy |  | (a) |  |  |  | 60,972 |
|  |  |  |  |  |  | $ | 71,160 |
| (a) | The Company’s share of this investment is subject to change and is based upon a cash flow waterfall provision within the partnership agreement ( 54.27% as of date of consolidation).
Included in the Company’s Consolidated Statements of Income are $0 million, $31.0 million and $23.8 million in total revenues from the date of acquisition through December 31, 2018, 2017 and 2016, respectively, for operating properties acquired during each of the respective years. Purchase Price Allocations The purchase price for these acquisitions is allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for asset acquisitions. There were no operating property acquisitions during the year ended December 31, 2018. The purchase price allocations for properties acquired/consolidated during the year ended December 31, 2017, are as follows (in thousands):
|  | Allocation as of December 31, 2017 |  |  | Weighted-Average Amortization Period (in Years) |
Land |  | $ | 255,715 |  |  |  | n/a |
Buildings |  |  | 379,148 |  |  |  | 50.0 |
Building improvements |  |  | 46,613 |  |  |  | 41.5 |
Tenant improvements |  |  | 14,520 |  |  |  | 7.2 |
In-place leases |  |  | 56,200 |  |  |  | 7.2 |
Above-market leases |  |  | 12,197 |  |  |  | 7.8 |
Below-market leases |  |  | (77,027 | ) |  |  | 29.5 |
Mortgage fair value adjustment |  |  | (8,521 | ) |  |  | 1.3 |
Tax increment financing (TIF) contracts |  |  | 8,342 |  |  |  | 19.0 |
Other assets |  |  | 5,090 |  |  |  | n/a |
Other liabilities |  |  | (3,951 | ) |  |  | n/a |
Net assets acquired/consolidated |  | $ | 688,326 |  |  |  |  |
Hurricane Impact On September 20, 2017, Hurricane Maria struck Puerto Rico as a Category 4 hurricane which resulted in widespread damage, flooding, and power outages. The Company has interests in seven operating properties located throughout Puerto Rico, aggregating 2.2 million square feet of GLA, which were variously impacted by the hurricane. The Company maintains a comprehensive property insurance policy on these properties with total coverage of up to $62.0 million, as well as business interruption insurance with coverage up to $39.3 million in the aggregate, subject to a collective deductible of $1.2 million. The Company expects to collect property insurance proceeds (net of deductible) equal to the replacement cost of its damaged property, currently estimated to be approximately $30.3 million. As of December 31, 2018, the Company has collected property insurance proceeds totaling $20.2 million to date, which exceeds the $16.0 million previously written off due to property damage by $4.2 million. As a result, the Company recognized this excess as income included in Other income, net on the Company’s Consolidated Statements of Income for the year ended December 31, 2018. The Company’s business interruption insurance covers lost revenues as a result of the hurricane for a period of up to one year. After the expiration of one year following the loss, the policy has 365 days of an extended period of indemnity which provides business interruption coverage in the event the properties have not fully recovered from the storm. During 2018 and 2017, the Company collected business interruption claims totaling $2.8 million and $1.6 million, respectively, from its insurance provider. Although the Company has primarily recovered its business interruption insurance claims, it will continue to assess and process any future business interruption claims for the extended period of indemnity and will submit insurance claims for its losses, if any, under its business interruption insurance policy.

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