Annual report pursuant to Section 13 and 15(d)

Deferred Charges, Goodwill And Other Assets, Net

v3.3.1.900
Deferred Charges, Goodwill And Other Assets, Net
12 Months Ended
Dec. 31, 2015
Deferred Charges, Goodwill And Other Assets, Net [Abstract]  
Deferred Charges, Goodwill And Other Assets, Net

 

5.    DEFERRED CHARGES, GOODWILL AND OTHER ASSETS, NET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        December 31,

(dollars in thousands)

 

2015 

 

 

2014 

Deferred leasing costs

$

239,690 

 

$

239,138 

Deferred financing costs

 

23,723 

 

 

24,042 

 

 

263,413 

 

 

263,180 

Accumulated amortization

 

(126,816)

 

 

(122,358)

Deferred charges, net

 

136,597 

 

 

140,822 

Notes receivable (1)

 

13,496 

 

 

21,491 

In-place lease values, related intangibles and other assets, net (2)(3)

 

10,931 

 

 

6,565 

Goodwill

 

2,945 

 

 

2,945 

Prepaid expenses and other assets, net (4)

 

49,408 

 

 

32,827 

 

 

 

 

 

 

Total deferred charges, goodwill and other assets, net

$

213,377 

 

$

204,650 

 

(1)Includes as of December 31, 2015: a mortgage receivable for $10.4 million which bears interest at LIBOR plus six percent and matures in August 2016; and an interest-free note receivable with a net present value of $3.1 million and matures in April 2023.  The Company believes these balances are fully collectible.

(2)In accordance with ASC 805, Business Combinations, the Company recognizes rental revenue of acquired above and below market lease intangibles over the terms of the respective leases.  The impact of amortizating the acquired above and below-market lease intangibles increased revenue by approximately $0.2 million, $0.7 million and $1.5 million for the years ended December 31, 2015,  2014 and 2013, respectively.  The following table summarizes, as of December 31, 2015, the scheduled amortization of the Company’s acquired above and below-market lease intangibles for each of the five succeeding years (dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired Above-

 

 

Acquired Below-

 

 

 

 

 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2016

$

(776)

 

$

345 

 

$

(431)

2017

 

(708)

 

 

339 

 

 

(369)

2018

 

(645)

 

 

289 

 

 

(356)

2019

 

(529)

 

 

156 

 

 

(373)

2020

 

(341)

 

 

21 

 

 

(320)

 

(3)In accordance with ASC 805, Business Combinations, the value of acquired in-place lease intangibles are amortized to expense over the remaining initial terms of the respective leases.  The impact of the amortization of acquired in-place lease values is included in depreciation and amortization expense and amounted to approximately $1.4 million, $6.9 million and $10.7 million for the years ended December 31, 2015,  2014 and 2013, respectively.  The following table summarizes, as of December 31, 2014, the scheduled amortization of the Company’s acquired in-place lease values for each of the five succeeding years (dollars in thousands)

 

 

 

 

 

 

 

 

Year

 

 

 

2016

 

$

2,399 

2017

 

 

2,093 

2018

 

 

1,175 

2019

 

 

979 

2020

 

 

 -

 

 

(4)Includes as of December 31, 2015, deposits of $15.1 million for acquisitions and developments.

 

DERIVATIVE FINANCIAL INSTRUMENTS

The Company does not have any derivative instruments designated as cash flow hedges.  The following table summarizes the notional and fair value of the Company’s derivative financial instruments, designated as fair value hedges, as of December 31, 2015 and 2014 (dollars in thousands): 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Fair Value

 

 

Notional

 

 

Strike

 

 

Effective

 

Expiration

 

 

December 31,

 

 

Value

(a)

 

Rate

 

 

Date

 

Date

 

 

2015 

 

 

2014 

LIBOR Cap

$

51,000 

 

 

1.5 

%

 

September 2014

 

October 2015

 

$

 -

 

$

LIBOR Cap

 

24,000 

 

 

1.5 

%

 

September 2014

 

October 2015

 

 

 -

 

 

LIBOR Cap

 

51,000 

 

 

1.75 

%

 

October 2015

 

October 2016

 

 

 

 

64 

LIBOR Cap

 

24,000 

 

 

1.75 

%

 

October 2015

 

October 2016

 

 

 

 

29 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

$

95 

 

(a)

The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks.

 

The Company includes these derivative financial instruments, which were recorded in the year ended December 31, 2014, in deferred charges, goodwill and other assets, net.  As changes in the fair value of these derivative financial instruments are recorded in earnings, the Company recorded a loss on the change in fair value of $93,000 and $79,000 during the years ended December 31, 2015 and 2014, respectively, which is included in interest and other investment income in the consolidated statements of operations.