XML 26 R11.htm IDEA: XBRL DOCUMENT

Note 3 - Real Estate

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Real Estate Disclosure [Text Block]

3. Real Estate

Acquisitions

During the six months ended June 30, 2023, the Company acquired the following operating properties, through direct asset purchases or consolidation due to change in control resulting from the purchase of additional interests in certain operating properties held in an unconsolidated joint venture (in thousands):

				Purchase Price
Property Name	Location	Month Acquired		Cash				Debt				Other				Total				GLA*
Portfolio (2 properties) (1)	Various	Jan-23		$	69,130			$	19,637			$	13,019			$	101,786				342
Crossroads Plaza Parcel	Cary, NC	Jan-23			2,173				-				-				2,173				5
Northridge Shopping Center Parcel	Arvada, CO	Jan-23			728				-				-				728				57
Stafford Marketplace Parcel (2)	Stafford, VA	Feb-23			-				-				12,527				12,527				87
Tustin Heights (1)	Tustin, CA	Mar-23			26,501				17,550				4,910				48,961				137
				$	98,532			$	37,187			$	30,456			$	166,175				628

* Gross leasable area ("GLA")

(1)

Other includes the Company’s previously held equity investments in the Prudential Investment Program and net gains on change in control. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interest of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Operations. The Company previously held an ownership interest of 15.0% in these property interests. See Footnote 4 of the Notes to the Company’s Condensed Consolidated Financial Statements.

(2)	During March 2023, the Company received a land parcel as consideration resulting from the exercise of a termination option of an operating lease.

Included in the Company’s Condensed Consolidated Statements of Operations is $6.7 million in total revenues from the date of acquisition through June 30, 2023, for operating properties acquired/consolidated during the six months ended June 30, 2023.

The purchase price for these acquisitions was allocated to real estate and related intangible assets and liabilities acquired, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocation for properties acquired/consolidated during the six months ended June 30, 2023, is as follows (in thousands):

		Allocation as of June 30, 2023				Weighted Average Amortization Period (in Years)
Land		$	51,116				n/a
Building			99,947				50.0
Building improvements			10,125				45.0
Tenant improvements			8,320				4.1
In-place leases			11,080				4.1
Above-market leases			1,329				5.7
Below-market leases			(16,551	)			23.6
Other assets			1,777				n/a
Other liabilities			(968	)			n/a
Net assets acquired		$	166,175

During the six months ended June 30, 2022, the Company acquired four parcels for an aggregate purchase price of $23.2 million, in separate transactions.

Dispositions

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels for the six months ended June 30, 2023 and 2022 (dollars in millions):

		Six Months Ended June 30,
		2023				2022
Aggregate sales price/gross fair value (1) (2)		$	163.8			$	43.3
Gain on sale of properties (3)		$	52.4			$	7.1
Number of properties sold			4				1
Number of parcels sold/(deconsolidated) (1)			8				8

(1)

During 2023, the Company contributed a land parcel and related entitlements, located in Admore, PA, into a preferred equity investment with a gross value of $19.6 million. As a result, the Company no longer consolidates this land parcel and has a non-controlling interest in this investment. See Footnote 5 of the Notes to the Company’s Condensed Consolidated Financial Statements for preferred equity investment disclosure.

(2)

During 2023, the Company provided as a lender seller financing of $25.0 million related to the sale of an operating property located in Gresham, OR. See Footnote 9 of the Notes to the Company’s Condensed Consolidated Financial Statements for mortgage receivable loan disclosure.

(3)

Before noncontrolling interests of $1.6 million and taxes of $1.5 million for the six months ended June 30, 2023.

Impairments

During the six months ended June 30, 2023, the Company recognized aggregate impairment charges of $11.8 million related to adjustments to property carrying values for properties which the Company is marketing for sale as part of its select capital recycling program and as such, has adjusted the anticipated hold period for such properties. The Company’s estimated fair values of these properties were primarily based upon estimated sales prices from signed contracts or letters of intent from third party offers. See Footnote 13 to the Notes to the Company’s Condensed Consolidated Financial Statements for fair value disclosure.