HOUSTON--(BUSINESS WIRE)--Weingarten Realty (NYSE: WRI) announced today the results of its operations for the quarter ended June 30, 2016. The supplemental financial package with additional information can be found on the Company's website under the Investor Relations tab.
Second Quarter Operating and Financial Highlights
- Net income attributable to common shareholders (“Net Income”) for the quarter increased to $0.28 per diluted share from $0.20 per diluted share in the same quarter of 2015;
- Core(1) Funds From Operations Attributable to Common Shareholders ("Core FFO") for the quarter increased to $0.57 per diluted share from $0.54 per diluted share a year ago;
- Same Property Net Operating Income (“SPNOI”) including redevelopments increased 3.3% over the same quarter of the prior year;
- Rental rates on new leases and renewals were up 29.4% and 14.4%, respectively;
- The Palms at Town & Country in Miami was acquired for $285 million subsequent to quarter end bringing year-to-date acquisitions to $421 million; and,
- Common shares totaling $107 million were sold under the At-The-Market (“ATM”) program during quarter.
(1) Effective this quarter, the Company substituted the term Core FFO for Recurring FFO used in communications. The definition of this Non-GAAP measure remains unchanged as well as all historical amounts previously reported as Recurring FFO.
Financial Results
The Company reported Net Income of $35.8 million or $0.28 per diluted share (hereinafter “per share”) for the second quarter of 2016, as compared to $25.2 million or $0.20 per share for the same period in 2015. This favorable variance was due to the write-off of unamortized preferred redemption costs in the prior year quarter, higher operating income driven by increased rental rates and incremental income from our new developments and redevelopments. Reduced interest expense from favorable debt refinancings and reduced preferred share dividends due to redemptions in 2015 also contributed to the increased Net Income, all of which was offset by gains on sales of property in 2015. Year-to-date, Net Income was $142.9 million or $1.13 per share for 2016 compared to $70.2 million or $0.57 per share for 2015.
Funds From Operations attributable to common shareholders (“NAREIT FFO”) in accordance with the National Association of Real Estate Investment Trusts definition, was $75.3 million or $0.59 per share for the second quarter of 2016 compared to $58.4 million or $0.46 per share for 2015. The increase is primarily due to the non-cash write-off of preferred redemption costs of $0.08 per share in 2015. Additionally, a net gain of $2.0 million related to the refinancing of a secured note was included in interest expense. The remainder of the increase was due to operations at the Company’s existing portfolio, redevelopments and new developments. Year-to-date, NAREIT FFO was $141.6 million or $1.11 per share for 2016 compared to $118.7 million or $0.95 per share for 2015.
Core FFO for the quarter ended June 30, 2016 was $0.57 per share or $73.6 million, an increase of 5.6% on a per share basis over $0.54 per share or $68.3 million for the same quarter of last year. The increase in Core FFO over the prior year was primarily due to increases in net operating income from our existing portfolio resulting from increases in rental rates, incremental income from our new developments and redevelopments, and reduced interest expense from favorable debt refinancings. These increases were partially offset by the impact of the Company’s disposition program. For the six months, Core FFO was $145.9 million or $1.15 per share for 2016 compared to $133.7 million or $1.07 per share for 2015.
A reconciliation between Net Income to NAREIT FFO and Core FFO is included herein.
Operating Results
SPNOI including redevelopments increased by 3.3% for the quarter primarily due to increased base minimum rent resulting from contractual rental rate increases for existing merchants, renewal options exercised and rental rate increases on new leases. These increases were offset by an increase in bad debt expense due to reduced bad debt recoveries compared to the prior year. Year-to-date, SPNOI increased 3.0%.
A reconciliation between Net Income and SPNOI is included herein.
Occupancy for the quarter of 94.9% was down slightly from the prior quarter due primarily to the rejection in bankruptcy of one Sports Authority lease and the closing of a bowling alley at a center slated for redevelopment. Further decreases in occupancy are expected in the next quarter as some of the Company’s remaining six Sports Authority leases could also be rejected in bankruptcy as they finalize their plan. Occupancy of small shop space increased to 90.2% from 90.0% in the prior quarter. The Company produced steady leasing results during the second quarter with 251 new leases and renewals. These transactions were comprised of 94 new leases and 157 renewals, which represent annualized revenues of $6.2 million and $10.5 million, respectively. The average rental rate increase on new leases and renewals signed during the quarter was 29.4% and 14.4%, respectively.
“Operations remain very strong, driven by some of the highest rental rate increases in the history of our Company. While the Sports Authority bankruptcy will provide some temporary headwinds, we expect our quality, transformed portfolio to continue to perform incredibly well,” said Johnny Hendrix, Executive Vice President and Chief Operating Officer.
Portfolio Activity
Subsequent to quarter end, the Company completed the acquisition of The Palms at Town & Country, a 664,000 square foot premier shopping destination in Miami, Florida for $285 million. The center features best-in-class operators including Publix, Kohl’s, Nordstrom Rack, Dick’s Sporting Goods, and Marshalls. National retailers comprise 87% of the revenue of the center. The shopping center serves the dense and affluent communities of Kendall and West Kendall with 171,000 people and 59,000 households in a three-mile trade area. It is situated at one of Miami’s most trafficked interstate interchanges with exposure to the Florida Turnpike and Kendall Drive which have combined traffic counts exceeding 200,000 vehicles per day.
During the quarter, the Company acquired Deerfield, a 394,000 square foot, Publix-anchored center located in the South Florida community of Deerfield Beach (Fort Lauderdale MSA) for $93 million. The center is anchored by strong national and regional tenants including a dominant Publix, T.J. Maxx, Marshalls, Cinépolis, and Ulta Beauty.
The Company continues to make progress on its three active new development properties and its various redevelopment projects, spending a total of $16.1 million during the quarter. For the new development properties, the total spent to date is $59.7 million, the estimated final investment is $100.8 million and the estimated final return is 7.5%. For the redevelopment projects, the total spent to date is $41.9 million, the estimated final investment is $85.4 million and the estimated final returns are around 11%.
During the second quarter, the Company sold three land parcels and its interest in three shopping centers held in a joint venture for $14.6 million, bringing the year-to-date total to $126.6 million.
“We are extremely pleased with the addition of a premier asset, The Palms at Town & Country, to our portfolio. Its trade area buying power, a combination of median household income and density, is comparable to the most successful properties in the state including Aventura and Dadeland Mall,” said Drew Alexander, President and Chief Executive Officer.
Balance Sheet
The Company continues to improve its balance sheet. The Company sold $107 million of common shares during the quarter under its ATM program at an average price of $38.32. Year-to-date, the Company has sold $125.1 million under its ATM program. You can see the detail of all of our issuances on page 41 of the supplemental financial package.
Subsequent to quarter end, the Company closed on a commitment for a $200 million term loan, which matures in July 2017, with the Company having an additional one year extension option. Borrowing rates float at a margin over LIBOR and are priced off a grid that is tied to our senior unsecured credit ratings.
The Company’s credit metrics remain very strong at quarter end with Net Debt to EBITDA at 5.57 times and Debt to Total Market Cap at 28.0%, both of which benefited from the common share issuance during the quarter.
“We were very pleased with our execution under the ATM. In 2016 we have issued over $125 million of common equity at attractive valuations. This is very efficient, cost effective way to raise the equity necessary for our current capital allocation activities. Along with the commitment for a new $200 million term loan, these transactions allow us to maintain our strong balance sheet and liquidity position while funding our acquisition and new development opportunities,” said Steve Richter, Executive Vice President and Chief Financial Officer.
2016 Guidance
The Company adjusted its guidance as noted below by the highlighted items. Additionally, the Company has provided initial guidance for Net Income this quarter.
Previous Guidance |
Revised Guidance |
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Net Income (per diluted share) | $1.67 - $1.73 | |||
NAREIT FFO (per diluted share) | $2.21 - $2.26 | $2.24 - $2.28 | ||
Core FFO (per diluted share) | $2.27 - $2.31 | $2.28 - $2.32 | ||
Acquisitions | $125 - $225 million | $425 - $500 million | ||
Re / New Development | $50 - $100 million | $50 - $100 million | ||
Dispositions | $125 - $225 million | $125 - $225 million | ||
Same Property NOI with redevelopments | 3.5% - 4.5% | 3.0% - 4.0% | ||
Same Property NOI w/o redevelopments | 2.5% - 3.5% | 2.5% - 3.5% |
Dividends
The Board of Trust Managers declared a quarterly cash dividend of $0.365 per common share payable on September 15, 2016 to shareholders of record on September 8, 2016.
Conference Call Information
The Company also announced that it will host a live webcast of its quarterly conference call on July 29, 2016 at 10:00 a.m. Central Time. The live webcast can be accessed via the Company’s website at www.weingarten.com. Alternatively, if you are not able to access the call on the web, you can listen live by phone by calling (888) 771-4371 (conference ID # 40193471). A replay will be available through the Company’s website starting approximately two hours following the live call.
About Weingarten Realty Investors
Weingarten Realty Investors (NYSE: WRI) is a shopping center owner, manager and developer. At June 30, 2016, the Company owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 226 properties which are located in 18 states spanning the country from coast to coast. These properties represent approximately 44.7 million square feet of which our interests in these properties aggregated approximately 28.0 million square feet of leasable area. To learn more about the Company’s operations and growth strategies, please visit www.weingarten.com.
Forward-Looking Statements
Statements included herein that state the Company’s or Management’s intentions, hopes, beliefs, expectations or predictions of the future are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 which by their nature, involve known and unknown risks and uncertainties. The Company’s actual results, performance or achievements could differ materially from those expressed or implied by such statements. Reference is made to the Company’s regulatory filings with the Securities and Exchange Commission for information or factors that may impact the Company’s performance.
Projections involve numerous assumptions such as rental income (including assumptions on percentage rent), interest rates, tenant defaults, occupancy rates, volume and pricing of properties held for disposition, volume and pricing of acquisitions, expenses (including salaries and employee costs), insurance costs and numerous other factors. Not all of these factors are determinable at this time and actual results may vary from the projected results, and may be above or below the ranges indicated. The above ranges represents management’s estimate of results based upon these assumptions as of the date of this press release. Accordingly, there is no assurance that our projections will be realized.
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Financial Statements | |||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
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2016 | 2015 | 2016 | 2015 | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | (Unaudited) | |||||||||||||||
Rentals, net | $ | 132,814 | $ | 124,310 | $ | 261,323 | $ | 246,968 | |||||||||
Other Income | 2,862 | 2,494 | 6,770 | 5,435 | |||||||||||||
Total Revenues | 135,676 | 126,804 | 268,093 | 252,403 | |||||||||||||
Depreciation and Amortization | 39,218 | 36,451 | 77,097 | 72,602 | |||||||||||||
Operating Expense | 24,663 | 22,200 | 48,199 | 44,785 | |||||||||||||
Real Estate Taxes, net | 17,221 | 15,498 | 33,078 | 30,125 | |||||||||||||
Impairment Loss | — | 153 | 43 | 153 | |||||||||||||
General and Administrative Expense | 6,388 | 6,461 | 12,886 | 13,833 | |||||||||||||
Total Expenses | 87,490 | 80,763 | 171,303 | 161,498 | |||||||||||||
Operating Income | 48,186 | 46,041 | 96,790 | 90,905 | |||||||||||||
Interest Expense, net | (18,558 | ) | (20,292 | ) | (39,449 | ) | (46,750 | ) | |||||||||
Interest and Other Income | 361 | 418 | 572 | 3,140 | |||||||||||||
Gain on Sale and Acquisition of Real Estate Joint Venture and Partnership Interests | — | 18 | 37,392 | 879 | |||||||||||||
Equity in Earnings of Real Estate Joint Ventures and Partnerships, net | 6,645 | 3,212 | 10,738 | 8,584 | |||||||||||||
(Provision) Benefit for Income Taxes | (16 | ) | 226 | (5,915 | ) | (435 | ) | ||||||||||
Income from Continuing Operations | 36,618 | 29,623 | 100,128 | 56,323 | |||||||||||||
Gain on Sale of Property | 1,033 | 8,163 | 46,190 | 30,685 | |||||||||||||
Net Income | 37,651 | 37,786 | 146,318 | 87,008 | |||||||||||||
Less: | Net Income Attributable to Noncontrolling Interests | (1,835 | ) | (1,757 | ) | (3,428 | ) | (3,332 | ) | ||||||||
Net Income Adjusted for Noncontrolling Interests | 35,816 | 36,029 | 142,890 | 83,676 | |||||||||||||
Less: | Preferred Share Dividends | — | (1,120 | ) | — | (3,830 | ) | ||||||||||
Less: | Redemption Costs of Preferred Shares | — | (9,687 | ) | — | (9,687 | ) | ||||||||||
Net Income Attributable to Common Shareholders -- Basic | $ | 35,816 | $ | 25,222 | $ | 142,890 | $ | 70,159 | |||||||||
Net Income Attributable to Common Shareholders -- Diluted | $ | 35,816 | $ | 25,222 | $ | 143,888 | $ | 70,159 |
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Financial Statements | ||||||||
June 30, 2016 |
December 31, 2015 |
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(Unaudited) | (Audited) | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
ASSETS | ||||||||
Property | $ | 4,446,535 | $ | 4,262,959 | ||||
Accumulated Depreciation | (1,144,670 | ) | (1,087,642 | ) | ||||
Property Held for Sale, net | — | 34,363 | ||||||
Investment in Real Estate Joint Ventures and Partnerships, net | 292,530 | 267,041 | ||||||
Unamortized Lease Costs, net | 148,632 | 137,609 | ||||||
Accrued Rent and Accounts Receivable, net | 82,368 | 84,782 | ||||||
Cash and Cash Equivalents | 14,529 | 22,168 | ||||||
Restricted Deposits and Mortgage Escrows | 5,652 | 3,074 | ||||||
Other, net | 187,351 | 177,591 | ||||||
Total Assets | $ | 4,032,927 | $ | 3,901,945 | ||||
LIABILITIES AND EQUITY | ||||||||
Debt, net | $ | 2,052,236 | $ | 2,113,277 | ||||
Accounts Payable and Accrued Expenses | 102,850 | 112,205 | ||||||
Other, net | 159,995 | 131,453 | ||||||
Total Liabilities | 2,315,081 | 2,356,935 | ||||||
Commitments and Contingencies | — | — | ||||||
Deferred Compensation Share Awards | 48,140 | — | ||||||
EQUITY | ||||||||
Common Shares of Beneficial Interest | 3,878 | 3,744 | ||||||
Additional Paid-In Capital | 1,711,114 | 1,616,242 | ||||||
Net Income Less Than Accumulated Dividends | (186,136 | ) | (222,880 | ) | ||||
Accumulated Other Comprehensive Loss | (14,633 | ) | (7,644 | ) | ||||
Shareholders' Equity | 1,514,223 | 1,389,462 | ||||||
Noncontrolling Interests | 155,483 | 155,548 | ||||||
Total Liabilities and Equity | $ | 4,032,927 | $ | 3,901,945 |
Non-GAAP Financial Measures
Certain aspects of our key performance indicators are considered non-GAAP financial measures. Management uses these measures along with our GAAP financial statements in order to evaluate our operating results. Management believes these additional measures provide users of our financial information additional comparable indicators of our industry, as well as, our performance.
Funds from Operations Attributable to Common Shareholders
The National Association of Real Estate Investment Trusts defines NAREIT FFO as net income (loss) attributable to common shareholders computed in accordance with GAAP, excluding extraordinary items and gains or losses from sales of operating real estate assets and interests in real estate equity investments, plus depreciation and amortization of operating properties and impairment of depreciable real estate and in substance real estate equity investments, including our share of unconsolidated real estate joint ventures and partnerships. The Company calculates NAREIT FFO in a manner consistent with the NAREIT definition.
Management believes NAREIT FFO is a widely recognized measure of REIT operating performance which provides our shareholders with a relevant basis for comparison among other REITs. Management uses NAREIT FFO as a supplemental internal measure to conduct and evaluate our business because there are certain limitations associated with using GAAP net income by itself as the primary measure of our operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, Management believes that the presentation of operating results for real estate companies that uses historical cost accounting is insufficient by itself. There can be no assurance that NAREIT FFO presented by the Company is comparable to similarly titled measures of other REITs.
The Company also presents Core FFO as an additional supplemental measure as it is more reflective of the core operating performance of our portfolio of properties. Core FFO is defined as NAREIT FFO excluding charges and gains related to non-cash and non-operating transactions and other events that hinder the comparability of operating results of our core portfolio of properties. Specific examples of items excluded from Core FFO include, but are not limited to, gains or losses associated with the extinguishment of debt or other liabilities, impairments of land, transactional costs associated with acquisition and development activities, certain deferred tax provisions/benefits, redemption costs of preferred shares and gains on the disposal of non-real estate assets. NAREIT FFO and Core FFO should not be considered as alternatives to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. NAREIT FFO and Core FFO do not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.
NAREIT FFO and Core FFO is calculated as follows (in thousands):
Three Months Ended June 30, |
Six Months Ended June 30, |
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2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income attributable to common shareholders | $ | 35,816 | $ | 25,222 | $ | 142,890 | $ | 70,159 | ||||||||
Depreciation and amortization | 38,519 | 35,767 | 75,728 | 71,030 | ||||||||||||
Depreciation and amortization of unconsolidated real estate joint ventures and partnerships | 3,993 | 3,468 | 7,679 | 6,978 | ||||||||||||
Impairment of operating properties and real estate equity investments | — | 153 | — | 153 | ||||||||||||
Impairment of operating properties of unconsolidated real estate joint ventures and partnerships | — | 1,497 | 326 | 1,497 | ||||||||||||
Gain on acquisition including associated real estate equity investment | — | — | (37,383 | ) | — | |||||||||||
Gain on sale of property and interests in real estate equity investments | (368 | ) | (8,137 | ) | (45,493 | ) | (31,470 | ) | ||||||||
Gain on dispositions of unconsolidated real estate joint ventures and partnerships | (3,139 | ) | (53 | ) | (3,139 | ) | (615 | ) | ||||||||
Other | (8 | ) | (4 | ) | (8 | ) | (4 | ) | ||||||||
NAREIT FFO – basic | 74,813 | 57,913 | 140,600 | 117,728 | ||||||||||||
Income attributable to operating partnership units | 499 | 479 | 998 | 960 | ||||||||||||
NAREIT FFO – diluted | 75,312 | 58,392 | 141,598 | 118,688 | ||||||||||||
Adjustments to Core FFO: | ||||||||||||||||
Redemption costs of preferred shares | — | 9,749 | — | 9,749 | ||||||||||||
Deferred tax expense, net | — | — | 5,895 | — | ||||||||||||
Acquisition costs | 245 | 142 | 600 | 346 | ||||||||||||
Other impairment loss, net of tax | — | — | 43 | — | ||||||||||||
(Gain) loss on extinguishment of debt | (1,679 | ) | — | (1,679 | ) | 6,100 | ||||||||||
Other, net of tax | (294 | ) | — | (536 | ) | (1,161 | ) | |||||||||
Core FFO – diluted | $ | 73,584 | $ | 68,283 | $ | 145,921 | $ | 133,722 | ||||||||
Weighted average shares outstanding – basic | 125,791 | 123,298 | 124,692 | 122,715 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Share options and awards | 1,053 | 1,252 | 1,136 | 1,344 | ||||||||||||
Operating partnership units | 1,462 | 1,480 | 1,462 | 1,483 | ||||||||||||
Weighted average shares outstanding – diluted | 128,306 | 126,030 | 127,290 | 125,542 | ||||||||||||
NAREIT FFO per common share – basic | $ | .59 | $ | .47 | $ | 1.13 | $ | .96 | ||||||||
NAREIT FFO per common share – diluted | $ | .59 | $ | .46 | $ | 1.11 | $ | .95 | ||||||||
Core FFO per common share – diluted | $ | .57 | $ | .54 | $ | 1.15 | $ | 1.07 |
Same Property Net Operating Income
Management considers SPNOI an important additional financial measure because it reflects only those income and expense items that are incurred at the property level and when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates and operating costs. The Company calculates this most useful measurement by determining our proportional share of SPNOI from all owned properties, including the Company’s share of SPNOI from unconsolidated joint ventures and partnerships, which cannot be readily determined under GAAP measurements and presentation. Although SPNOI is a widely used measure among REITs, there can be no assurance that SPNOI presented by the Company is comparable to similarly titled measures of other REITs. Additionally, the Company does not control these unconsolidated joint ventures and partnerships, and the assets, liabilities, revenues or expenses of these joint ventures and partnerships, as presented, do not represent its legal claim to such items.
Properties are included in the SPNOI calculation if they are owned and operated for the entirety of the most recent two fiscal year periods, except for properties for which significant redevelopment or expansion occurred during either of the periods presented, and properties classified as discontinued operations. While there is judgment surrounding changes in designations, Management moves new development and redevelopment properties once they have stabilized, which is typically upon attainment of 90% occupancy. A rollforward of the properties included in the Company’s same property designation is as follows:
Three Months Ended June 30, 2016 |
Six Months Ended June 30, 2016 |
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Beginning of the period | 197 | 206 | ||||
Properties added: | ||||||
Acquisitions | — | 1 | ||||
Redevelopments | 9 | 11 | ||||
Other | — | 1 | ||||
Properties removed: | ||||||
Dispositions | (3 | ) | (8 | ) | ||
Redevelopments | — | (5 | ) | |||
Other | — | (3 | ) | |||
End of the period | 203 | 203 |
The Company calculates SPNOI using operating income as defined by GAAP excluding property management fees, certain non-cash revenues and expenses such as straight-line rental revenue and the related reversal of such amounts upon early lease termination, depreciation, amortization, impairment losses, general and administrative expenses, acquisition costs and other items such as lease cancellation income, environmental abatement costs and demolition expenses. Consistent with the capital treatment of such costs under GAAP, tenant improvements, leasing commissions and other direct leasing costs are excluded from SPNOI. A reconciliation of Net Income to SPNOI is as follows (in thousands):
Three Months Ended June 30, |
Six Months Ended June 30, |
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2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income attributable to common shareholders | $ | 35,816 | $ | 25,222 | $ | 142,890 | $ | 70,159 | ||||||||
Add: | ||||||||||||||||
Redemption costs of preferred shares | — | 9,687 | — | 9,687 | ||||||||||||
Dividends on preferred shares | — | 1,120 | — | 3,830 | ||||||||||||
Net income attributable to noncontrolling interests | 1,835 | 1,757 | 3,428 | 3,332 | ||||||||||||
Provision (benefit) for income taxes | 16 | (226 | ) | 5,915 | 435 | |||||||||||
Interest expense, net | 18,558 | 20,292 | 39,449 | 46,750 | ||||||||||||
Less: | ||||||||||||||||
Gain on sale of property | (1,033 | ) | (8,163 | ) | (46,190 | ) | (30,685 | ) | ||||||||
Equity in earnings of real estate joint ventures and partnership interests | (6,645 | ) | (3,212 | ) | (10,738 | ) | (8,584 | ) | ||||||||
Gain on sale and acquisition of real estate joint venture and partnership interests | — | (18 | ) | (37,392 | ) | (879 | ) | |||||||||
Interest and other income | (361 | ) | (418 | ) | (572 | ) | (3,140 | ) | ||||||||
Operating Income | 48,186 | 46,041 | 96,790 | 90,905 | ||||||||||||
Less: | ||||||||||||||||
Revenue adjustments (1) | (3,526 | ) | (2,987 | ) | (7,253 | ) | (6,339 | ) | ||||||||
Add: | ||||||||||||||||
Property management fees | 590 | 642 | 1,536 | 1,578 | ||||||||||||
Depreciation and amortization | 39,218 | 36,451 | 77,097 | 72,602 | ||||||||||||
Impairment loss | — | 153 | 43 | 153 | ||||||||||||
General and administrative | 6,388 | 6,461 | 12,886 | 13,833 | ||||||||||||
Acquisition costs | 174 | 96 | 223 | 301 | ||||||||||||
Other (2) | (89 | ) | 81 | 71 | 131 | |||||||||||
Net Operating Income | 90,941 | 86,938 | 181,393 | 173,164 | ||||||||||||
Less: NOI related to consolidated entities not defined as same property and noncontrolling interests | (9,211 | ) | (8,002 | ) | (18,478 | ) | (15,502 | ) | ||||||||
Add: Pro rata share of unconsolidated entities defined as same property | 8,244 | 8,186 | 16,346 | 16,313 | ||||||||||||
Same Property Net Operating Income | $ | 89,974 | $ | 87,122 | $ | 179,261 | $ | 173,975 |
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(1) Revenue adjustments consist primarily of straight-line rentals, lease cancellation income and fee income primarily from real estate joint ventures and partnerships.
(2) Other includes items such as environmental abatement costs and demolition expenses.