| Condensed Quarterly Financial Information |
20. CONDENSED QUARTERLY FINANCIAL INFORMATION (unaudited)
The following summarizes the condensed quarterly financial information for the Company: (dollars in thousands)
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Quarter Ended 2013
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December 31
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September 30
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June 30
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March 31
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Total revenues
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$
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165,267
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$
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162,505
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$
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168,346
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$
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170,913
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Operating and other expenses
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67,862
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64,467
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58,900
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63,245
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Direct construction costs
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-
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609
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6,511
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7,825
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Real estate service salaries
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6,907
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5,552
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5,304
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4,953
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General and administrative
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10,447
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12,151
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13,111
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11,973
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Depreciation and amortization
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47,666
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46,087
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45,665
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43,348
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Impairments (1)
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62,153
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(2)
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48,700
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-
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-
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Total expenses
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195,035
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177,566
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129,491
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131,344
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Operating Income
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(29,768)
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(15,061)
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38,855
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39,569
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Interest expense
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(31,626)
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(30,936)
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(31,270)
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(29,869)
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Interest and other investment income
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1,616
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187
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1,094
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6
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Equity in earnings (loss) of unconsolidated
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joint ventures
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(268)
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(229)
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(80)
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(1,750)
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Loss from early extinguishment of debt
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(156)
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-
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-
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-
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Total other (expense) income
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(30,434)
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(30,978)
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(30,256)
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(31,613)
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Income (loss) from continuing operations
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(60,202)
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(46,039)
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8,599
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7,956
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Discontinued operations:
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Income (loss) from discontinued operations
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(9)
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2,157
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4,530
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5,133
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Loss from early extinguishment of debt
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-
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-
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(703)
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-
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Realized gains (losses) and unrealized losses
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on disposition of rental property, net
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(1,559)
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(3)
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47,321
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13,758
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-
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Total discontinued operations, net
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(1,568)
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49,478
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17,585
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5,133
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Net income (loss)
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(61,770)
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3,439
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26,184
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13,089
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Noncontrolling interest in consolidated joint ventures
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237
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1,838
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62
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62
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Noncontrolling interest in Operating Partnership
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7,167
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5,313
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(1,048)
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(973)
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Noncontrolling interest in discontinued operations
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187
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(5,947)
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(2,127)
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(622)
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Net income (loss) available to common shareholders
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$
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(54,179)
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$
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4,643
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$
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23,071
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$
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11,556
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Basic earnings per common share:
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Income (loss) from continuing operations
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$
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(0.60)
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$
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(0.45)
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$
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0.09
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$
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0.08
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Discontinued operations
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(0.02)
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0.50
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0.17
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0.05
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Net income (loss) available to common shareholders
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$
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(0.62)
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$
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0.05
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$
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0.26
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$
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0.13
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Diluted earnings per common share:
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Income (loss) from continuing operations
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$
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(0.60)
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$
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(0.45)
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$
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0.09
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$
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0.08
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Discontinued operations
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(0.02)
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0.50
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0.17
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0.05
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Net income (loss) available to common shareholders
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$
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(0.62)
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$
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0.05
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$
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0.26
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$
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0.13
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Dividends declared per common share
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$
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0.30
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$
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0.30
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$
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0.30
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$
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0.45
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(1)Amounts for the year ended December 31, 2013 relate to impairment charges as further described in Note 3: Real Estate Transactions – Impairments on Properties Held and Used.
(2)During the quarter ended December 31, 2013, the Company identified and recorded an out-of-period adjustment to reflect a charge of $1,260,000 to correct an error in the measurement of its impairment charges on certain properties in the third quarter of 2013. In the third quarter, in measuring the impairments on these properties, the Company did not include certain tenant improvement amounts to be paid for in-place leases in its discounted cash flows used to measure fair value and, as a result, should have recognized larger impairment charges by this aggregate amount. The Company has determined that this adjustment was not material to the quarter ended December 31, 2013 or the prior interim period.
(3)During the quarter ended December 31, 2013, the Company identified and recorded an out-of-period adjustment to reflect a charge of $1,559,000 to correct an error in its calculation of the gain on sale of rental property on a transaction that closed in the third quarter of 2013. In the third quarter, in recording the gain on the sale transaction, the Company did not include the full consolidated carrying amount of the property in computing the gain and, as a result, should have recognized a smaller gain by this amount. The Company has determined that this adjustment was not material to the quarter ended December 31, 2013 or the prior interim period.
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Quarter Ended 2012
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December 31
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September 30
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June 30
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March 31
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Total revenues
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$
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164,341
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$
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156,797
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$
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162,394
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$
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167,100
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Operating and other expenses
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60,864
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61,380
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60,732
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58,979
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Direct construction costs
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4,052
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980
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4,337
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3,278
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Real estate service salaries
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2,204
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536
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501
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505
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General and administrative
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12,514
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12,580
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11,840
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10,730
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Depreciation and amortization
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43,637
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43,483
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43,669
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43,544
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Impairments (1)
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9,845
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-
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-
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-
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Total expenses
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133,116
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118,959
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121,079
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117,036
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Operating Income
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31,225
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37,838
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41,315
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50,064
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Interest expense
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(29,500)
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(30,428)
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(31,564)
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(30,547)
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Interest and other investment income
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7
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7
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7
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13
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Equity in earnings (loss) of unconsolidated
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joint ventures
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(662)
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2,418
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1,733
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600
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Loss from early extinguishment of debt
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(545)
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-
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(4,415)
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-
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Total other (expense) income
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(30,700)
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(28,003)
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(34,239)
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(29,934)
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Income (loss) from continuing operations
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525
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9,835
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7,076
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20,130
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Discontinued operations:
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Income (loss) from discontinued operations
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4,455
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6,329
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5,969
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5,125
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Realized gains (losses) and unrealized losses
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on disposition of rental property and impairments, net
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(15,565)
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12
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(1,634)
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4,012
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Total discontinued operations, net
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(11,110)
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6,341
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4,335
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9,137
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Net income (loss)
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(10,585)
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16,176
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11,411
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29,267
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Noncontrolling interest in consolidated joint ventures
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74
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85
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92
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79
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Noncontrolling interest in Operating Partnership
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(73)
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(1,208)
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(874)
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(2,464)
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Noncontrolling interest in discontinued operations
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1,357
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(772)
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(528)
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(1,115)
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Net income (loss) available to common shareholders
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$
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(9,227)
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$
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14,281
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$
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10,101
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$
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25,767
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Basic earnings per common share:
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Income (loss) from continuing operations
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$
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0.01
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$
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0.10
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$
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0.07
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$
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0.20
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Discontinued operations
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(0.12)
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0.06
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0.04
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0.09
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Net income (loss) available to common shareholders
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$
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(0.11)
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$
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0.16
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$
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0.11
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$
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0.29
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Diluted earnings per common share:
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Income (loss) from continuing operations
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$
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0.01
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$
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0.10
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$
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0.07
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$
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0.20
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Discontinued operations
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(0.12)
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0.06
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0.04
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0.09
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Net income (loss) available to common shareholders
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$
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(0.11)
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$
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0.16
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$
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0.11
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$
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0.29
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Dividends declared per common share
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$
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0.45
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$
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0.45
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$
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0.45
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$
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0.45
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(1)Amounts for the year ended December 31, 2012 relate to impairment charges as further described in Note 3: Real Estate Transactions – Impairments on Properties Held and Used.
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