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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from [                    ] to [                    ]

Commission File Number: 1-9876

Weingarten Realty Investors

(Exact name of registrant as specified in its charter)

Texas

74-1464203

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

2600 Citadel Plaza Drive

P.O. Box 924133

Houston,

Texas

77292-4133

(Address of principal executive offices)

(Zip Code)

(713)

866-6000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

    

Trading
Symbol(s)

    

Name of Each Exchange on
Which Registered

Common Shares of Beneficial Interest, $.03 par value

WRI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesNo

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YesNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   YesNo

As of April 28, 2021, there were 127,626,771 common shares of beneficial interest of Weingarten Realty Investors, $.03 par value, outstanding.

Table of Contents

TABLE OF CONTENTS

PART I.

Financial Information:

Page Number

Item 1.

Financial Statements (unaudited):

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020

3

Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2021 and 2020

4

Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020

5

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020

6

Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2021 and 2020

7

Notes to Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

38

Item 4.

Controls and Procedures

38

PART II.

Other Information:

Item 1.

Legal Proceedings

39

Item 1A.

Risk Factors

39

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

41

Item 3.

Defaults Upon Senior Securities

41

Item 4.

Mine Safety Disclosures

41

Item 5.

Other Information

41

Item 6.

Exhibits

41

Exhibit Index

42

Signatures

43

2

Table of Contents

PART I-FINANCIAL INFORMATION

ITEM 1. Financial Statements

WEINGARTEN REALTY INVESTORS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

March 31, 

2021

    

2020

Revenues:

 

  

Rentals, net

$

118,321

$

108,050

Other

3,050

3,302

Total Revenues

121,371

111,352

Operating Expenses:

Depreciation and amortization

38,556

36,656

Operating

23,287

23,160

Real estate taxes, net

16,735

15,008

Impairment loss

325

44

General and administrative

10,604

2,307

Total Operating Expenses

89,507

77,175

Other Income (Expense):

Interest expense, net

(16,619)

(14,602)

Interest and other income (expense), net

1,654

(5,828)

Gain on sale of property

9,131

13,576

Total Other Expense

(5,834)

(6,854)

Income Before Income Taxes and Equity in Earnings of Real Estate Joint Ventures and Partnerships

26,030

27,323

Provision for Income Taxes

(238)

(172)

Equity in Earnings of Real Estate Joint Ventures and Partnerships, net

4,087

27,097

Net Income

29,879

54,248

Less: Net Income Attributable to Noncontrolling Interests

(1,842)

(1,626)

Net Income Attributable to Common Shareholders

$

28,037

$

52,622

Earnings Per Common Share - Basic:

 

 

Net income attributable to common shareholders

$

0.22

$

0.41

Earnings Per Common Share - Diluted:

 

 

Net income attributable to common shareholders

$

0.22

$

0.41

See Notes to Condensed Consolidated Financial Statements.

3

Table of Contents

WEINGARTEN REALTY INVESTORS

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

Three Months Ended

March 31, 

    

2021

    

2020

Net Income

$

29,879

$

54,248

Other Comprehensive Income:

  

  

Reclassification adjustment of derivatives and designated hedges into net income

(219)

(221)

Retirement liability adjustment

261

297

Total

42

76

Comprehensive Income

29,921

54,324

Comprehensive Income Attributable to Noncontrolling Interests

(1,842)

(1,626)

Comprehensive Income Adjusted for Noncontrolling Interests

$

28,079

$

52,698

See Notes to Condensed Consolidated Financial Statements.

4

Table of Contents

WEINGARTEN REALTY INVESTORS

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except per share amounts)

    

March 31, 

    

December 31, 

2021

2020

ASSETS

  

  

Property

$

4,188,362

$

4,246,334

Accumulated Depreciation

(1,166,357)

(1,161,970)

Property, net *

3,022,005

3,084,364

Investment in Real Estate Joint Ventures and Partnerships, net

366,944

369,038

Total

3,388,949

3,453,402

Unamortized Lease Costs, net

167,348

174,152

Accrued Rent, Accrued Contract Receivables and Accounts Receivable, net *

67,697

81,016

Cash and Cash Equivalents *

52,078

35,418

Restricted Deposits and Escrows

12,427

12,338

Other, net

204,036

205,074

Total Assets

$

3,892,535

$

3,961,400

LIABILITIES AND EQUITY

 

  

 

  

Debt, net *

$

1,797,237

$

1,838,419

Accounts Payable and Accrued Expenses

83,580

104,990

Other, net

216,297

217,489

Total Liabilities

2,097,114

2,160,898

Commitments and Contingencies (see Note 12)

Equity:

  

  

Shareholders' Equity:

  

  

Common Shares of Beneficial Interest - par value, $.03 per share; shares authorized: 275,000; shares issued and outstanding:127,627 in 2021 and 127,313 in 2020

3,876

3,866

Additional Paid-In Capital

1,761,831

1,755,770

Net Income Less Than Accumulated Dividends

(139,064)

(128,813)

Accumulated Other Comprehensive Loss

(12,008)

(12,050)

Total Shareholders' Equity

1,614,635

1,618,773

Noncontrolling Interests

180,786

181,729

Total Equity

1,795,421

1,800,502

Total Liabilities and Equity

$

3,892,535

$

3,961,400

* Consolidated variable interest entities' assets and debt included in the above balances (see Note 13):

 

  

 

  

Property, net

$

183,598

$

193,271

Accrued Rent, Accrued Contract Receivables and Accounts Receivable, net

7,657

9,489

Cash and Cash Equivalents

10,518

10,089

Debt, net

43,967

44,177

See Notes to Condensed Consolidated Financial Statements.

5

Table of Contents

WEINGARTEN REALTY INVESTORS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Three Months Ended

March 31, 

    

2021

    

2020

Cash Flows from Operating Activities:

  

  

Net Income

$

29,879

$

54,248

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

38,556

36,656

Amortization of debt deferred costs and intangibles, net

612

709

Non-cash lease expense

290

324

Impairment loss

325

44

Equity in earnings of real estate joint ventures and partnerships, net

(4,087)

(27,097)

Gain on sale of property

(9,131)

(13,576)

Distributions of income from real estate joint ventures and partnerships

3,918

14,962

Changes in accrued rent, accrued contract receivables and accounts receivable, net

12,403

16,377

Changes in unamortized lease costs and other assets, net

(843)

6,296

Changes in accounts payable, accrued expenses and other liabilities, net

(13,657)

(31,551)

Other, net

1,148

6,629

Net cash provided by operating activities

59,413

64,021

Cash Flows from Investing Activities:

Acquisition of real estate and land, net

(25,506)

Development and capital improvements

(14,157)

(44,404)

Proceeds from sale of property and real estate equity investments, net

55,203

45,053

Real estate joint ventures and partnerships - Investments

(2,075)

(3,176)

Real estate joint ventures and partnerships - Distribution of capital

3,338

16,433

Other, net

(96)

(161)

Net cash provided by (used in) investing activities

42,213

(11,761)

Cash Flows from Financing Activities:

Principal payments of debt

(1,451)

(18,749)

Changes in unsecured credit facilities

(40,000)

497,000

Proceeds from issuance of common shares of beneficial interest, net

385

167

Repurchase of common shares of beneficial interest, net

(18,219)

Common share dividends paid

(38,288)

(50,935)

Debt issuance and extinguishment costs paid

(2)

Distributions to noncontrolling interests

(2,258)

(1,301)

Contributions from noncontrolling interests

1,150

Other, net

(3,265)

(1,161)

Net cash (used in) provided by financing activities

(84,877)

407,950

Net increase in cash, cash equivalents and restricted cash equivalents

16,749

460,210

Cash, cash equivalents and restricted cash equivalents at January 1

47,756

55,291

Cash, cash equivalents and restricted cash equivalents at March 31

$

64,505

$

515,501

Supplemental disclosure of cash flow information:

 

 

Cash paid for interest (net of amount capitalized of $1,066 and $2,663, respectively)

$

19,695

$

17,474

Cash paid for amounts included in operating lease liabilities

$

1,027

$

1,096

See Notes to Condensed Consolidated Financial Statements.

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WEINGARTEN REALTY INVESTORS

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In thousands, except per share amounts)

    

Three Months Ended March 31, 2021

    

Common

    

    

Net Income

    

Accumulated

    

    

Shares of

Additional

Less Than

Other

Beneficial

Paid-In

Accumulated

Comprehensive

Noncontrolling

Interest

Capital

Dividends

Loss

Interests

Total

Balance, January 1, 2021

$

3,866

$

1,755,770

$

(128,813)

$

(12,050)

$

181,729

$

1,800,502

Net income

28,037

  

1,842

29,879

Shares issued under benefit plans, net

10

6,116

  

  

6,126

Dividends paid – common shares ($.300 per share)

(38,288)

  

  

(38,288)

Distributions to noncontrolling interests

  

  

(2,258)

(2,258)

Other comprehensive income

  

42

  

42

Other, net

(55)

(527)

(582)

Balance, March 31, 2021

$

3,876

$

1,761,831

$

(139,064)

$

(12,008)

$

180,786

$

1,795,421

    

Three Months Ended March 31, 2020

Common

    

    

Net Income

    

Accumulated

    

    

Shares of

Additional

Less Than

Other

Beneficial

Paid-In

Accumulated

Comprehensive

Noncontrolling

Interest

Capital

Dividends

Loss

Interests

Total

Balance, January 1, 2020

$

3,905

$

1,779,986

$

(74,293)

$

(11,283)

$

177,845

$

1,876,160

Net income

52,622

  

1,626

54,248

Shares repurchased and cancelled

(25)

(18,194)

(18,219)

Shares issued under benefit plans, net

10

5,767

  

  

5,777

Cumulative effect adjustment of new accounting standards

(711)

(711)

Dividends paid – common shares ($.395 per share)

(50,935)

  

(50,935)

Distributions to noncontrolling interests

  

  

(1,301)

(1,301)

Contributions from noncontrolling interests

1,150

1,150

Other comprehensive income

  

76

76

Balance, March 31, 2020

$

3,890

$

1,767,559

$

(73,317)

$

(11,207)

$

179,320

$

1,866,245

See Notes to Condensed Consolidated Financial Statements.

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WEINGARTEN REALTY INVESTORS

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Summary of Significant Accounting Policies

Business

Weingarten Realty Investors is a real estate investment trust (“REIT”) organized under the Texas Business Organizations Code. We currently operate, and intend to operate in the future, as a REIT.

We, and our predecessor entity, began the ownership of shopping centers and other commercial real estate in 1948. Our primary business is leasing space to tenants in the shopping centers we own or lease. We also provide property management services for which we charge fees to either joint ventures where we are partners or other outside owners.

We operate a portfolio of neighborhood and community shopping centers, totaling approximately 29.8 million square feet of gross leasable area that is either owned by us or others. We have a diversified tenant base, with our largest tenant comprising only 2.7% of base minimum rental revenues during the three months of 2021. Total revenues generated by our centers located in Houston and its surrounding areas was 24.0% of total revenue for the three months ended March 31, 2021, and an additional 8.0% of total revenue was generated during this period from centers that are located in other parts of Texas. Also, in Florida and California, an additional 19.9% and 15.6%, respectively, of total revenue was generated during the three months ended March 31, 2021.

On April 15, 2021, we announced our entry into a definitive merger agreement (the “Merger Agreement”) with Kimco Realty Corporation (“Kimco”). The Merger Agreement provides that, among other things and on the terms and subject to the conditions set forth therein, (1) the Company will be merged with and into Kimco (the “Merger”), with Kimco continuing as the surviving corporation in the Merger, and (2) at the effective time of the Merger (the “Effective Time”), each common share of the Company (other than certain shares as set forth in the Merger Agreement) issued and outstanding immediately prior to the Effective Time will be automatically converted into the right to receive (i) $2.89 in cash and (ii) 1.408 shares of common stock of Kimco. During the period from the date of the Merger Agreement until the completion of the Merger, we are subject to certain restrictions on our ability to engage with third parties regarding alternative acquisition proposals and on the conduct of our business. The closing of the Merger is expected to occur in the second half of 2021, subject to the satisfaction of certain closing conditions. There can be no assurance that the Merger will be completed on the terms or timeline currently contemplated or at all.

In March 2020, the World Health Organization declared the novel coronavirus (“COVID-19”) a pandemic. The impact of COVID-19 continues to evolve and most cities and states have imposed measures to control its spread including social distancing and limiting group gatherings. These measures have created risks and uncertainties surrounding our operations and geographic concentrations. The pandemic has resulted in, at certain times and locations, the closure or limited operations of non-essential businesses and consumer/employee stay-at-home provisions. Given this continually evolving situation, the duration and severity of these matters and their ultimate effect are uncertain at this time. As judgments and estimates made by management are based on the best information available at the time, any evaluations impacted by future developments caused by the COVID-19 pandemic could result in inaccurate estimates when determining values that could be material to our consolidated financial statements.

Basis of Presentation

Our condensed consolidated financial statements include the accounts of our subsidiaries, certain partially owned real estate joint ventures or partnerships and variable interest entities (“VIEs”) which meet the guidelines for consolidation. All intercompany balances and transactions have been eliminated.

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The condensed consolidated financial statements included in this report are unaudited; however, amounts presented in the condensed consolidated balance sheet as of December 31, 2020 are derived from our audited financial statements at that date. In our opinion, all adjustments necessary for a fair presentation of such financial statements have been included. Such adjustments consisted of normal recurring items. Interim results are not necessarily indicative of results for a full year.

The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and certain information included in our annual financial statements and notes thereto has been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related notes for the year ended December 31, 2020.

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. We have evaluated subsequent events for recognition or disclosure in our condensed consolidated financial statements.

Accrued Rent, Accrued Contract Receivables and Accounts Receivable, net

The duration of the COVID-19 pandemic and its impact on our tenants’ operations, including, in some cases, their ability to resume full operations as governmental and legislative measures are eased, has caused uncertainty in our ongoing ability to collect rents when due. Considering the potential impact of this uncertainty, our collection assessment continues to consider the type of retailer and current discussions with the tenants, as well as recent rent collection experience and tenant bankruptcies based on the best information available to management at the time of evaluation. For the three months ended March 31, 2021, we increased rental revenues by $1.7 million due to the realization of net recoveries and the reduction of receivables. For the three months ended March 31, 2020, we reduced rental revenues by $9.4 million due primarily to COVID lease related reserves and write-offs, which included $7.6 million for straight-line rent receivables.

Additionally, we continue to have lease negotiations with tenants directly related to the effects of the COVID-19 pandemic. At March 31, 2021 and December 31, 2020, included in Accrued Rent, Accrued Contract Receivables and Accounts Receivable, net, we have deferred lease concessions not currently due of $7.8 million and $9.6 million, respectively. Additionally for the three months ended March 31, 2021, rent abatements totaled $2.0 million, which includes $1.5 million for cash basis tenants, and no abatements were recorded during the three months ended March 31, 2020 (see Note 7 for additional information). Discussions are continuing with tenants as the effects of COVID-19 pandemic and related mandates evolve.

Restricted Deposits and Escrows

Restricted deposits are held or restricted for a specific use or in a qualified escrow account for the purposes of completing like-kind exchange transactions. Escrows consist of deposits held by third parties or lenders for a specific use, including capital improvements, rental income and taxes.

Our restricted deposits and escrows consist of the following (in thousands):

    

March 31, 

December 31, 

2021

2020

Restricted deposits

$

12,068

$

12,122

Escrows

359

216

Total

$

12,427

$

12,338

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Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component consists of the following (in thousands):

    

    

Defined

    

Benefit

Pension

Gain on

 Plan-

Cash Flow

Actuarial

Hedges

Loss

Total

Balance, December 31, 2020

$

(2,724)

$

14,774

$

12,050

Amounts reclassified from accumulated other comprehensive loss

219

(1)  

(261)

(2)  

(42)

Net other comprehensive loss (income)

219

(261)

(42)

Balance, March 31, 2021

(2,505)

14,513

12,008

    

    

Defined

    

Benefit

Pension

Gain on

Plan-

Cash Flow

Actuarial

Hedges

Loss

Total

Balance, December 31, 2019

$

(3,614)

$

14,897

$

11,283

Amounts reclassified from accumulated other comprehensive loss

221

(1)  

(297)

(2)  

(76)

Net other comprehensive loss (income)

221

(297)

(76)

Balance, March 31, 2020

(3,393)

14,600

11,207

(1)This reclassification component is included in interest expense.
(2)This reclassification component is included in the computation of net periodic benefit cost (see Note 11 for additional information).

Additionally, as of March 31, 2021 and December 31, 2020, the net gain balance in accumulated other comprehensive loss relating to previously terminated cash flow interest rate swap contracts was $2.5 million and $2.7 million, respectively, which will be reclassified to net interest expense as interest payments are made on the originally hedged debt. Within the next 12 months, approximately $.9 million in accumulated other comprehensive loss is expected to be reclassified as a reduction to interest expense related to our interest rate contracts.

Note 2. Newly Issued Accounting Pronouncements

Not Yet Adopted

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848)”, as amended by ASU No. 2021-01. This ASU contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in this ASU is optional and may be elected over time as reference rate reform activities occur. At January 1, 2020, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The adoption of this portion of the ASU did not have a material impact to our consolidated financial statements. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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In August 2020, the FASB issued ASU No. 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The guidance in this ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This simplification results by removing major separation models required under current GAAP. Additionally, it removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation. The provisions of ASU No. 2020-06 are effective for us as of January 1, 2022 using either a modified retrospective method or a fully retrospective method, and early adoption is permitted beginning for us as of January 1, 2021. Although we are still assessing the impact of this ASU's adoption, we do not believe this ASU will have a material impact to our consolidated financial statements.

Note 3. Property

Our property consists of the following (in thousands):

    

March 31, 

December 31, 

    

2021

    

2020

Land

$

937,998

$

948,622

Land held for development

 

39,746

 

39,936

Land under development

 

16,637

 

19,830

Buildings and improvements

 

3,089,154

 

3,082,509

Construction in-progress

 

104,827

 

155,437

Total

$

4,188,362

$

4,246,334

During the three months ended March 31, 2021, we sold three centers and other property. Aggregate gross sales proceeds from these transactions approximated $56.4 million and generated gains of approximately $9.1 million. In addition, during the three months ended March 31, 2021, we invested $4.9 million in new development projects.

Note 4. Investment in Real Estate Joint Ventures and Partnerships

We own interests in real estate joint ventures or limited partnerships in which we exercise significant influence, but do not have financial and operating control. We account for these investments using the equity method, and our interests ranged for the periods presented from 20% to 90% in both 2021 and 2020. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

    

March 31, 

December 31, 

    

2021

    

2020

Combined Condensed Balance Sheets

  

  

ASSETS

  

  

Property

$

1,095,952

$

1,093,504

Accumulated depreciation

(283,431)

(275,802)

Property, net

812,521

817,702

Other assets, net

83,686

81,285

Total Assets

$

896,207

$

898,987

LIABILITIES AND EQUITY

 

  

 

  

Debt, net (primarily mortgages payable)

$

191,860

$

192,674

Amounts payable to Weingarten Realty Investors and Affiliates

9,505

9,836

Other liabilities, net

15,963

15,340

Total Liabilities

217,328

217,850

Equity

678,879

681,137

Total Liabilities and Equity

$

896,207

$

898,987

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Three Months Ended

March 31, 

    

2021

    

2020

Combined Condensed Statements of Operations

  

  

Revenues, net

$

29,945

$

33,739

Expenses:

  

  

Depreciation and amortization

8,438

8,762

Interest, net

1,624

2,418

Operating

5,823

7,111

Real estate taxes, net

3,535

4,400

General and administrative

105

105

Provision for income taxes

16

36

Total

19,541

22,832

Gain on dispositions

48

44,699

Net income

$

10,452

$

55,606

Our investment in real estate joint ventures and partnerships, as reported in our Condensed Consolidated Balance Sheets, differs from our proportionate share of the entities’ underlying net assets due to basis differences, which arose upon the transfer of assets to the joint ventures. The net positive basis differences, which totaled $10.6 million and $10.7 million at March 31, 2021 and December 31, 2020, respectively, are generally amortized over the useful lives of the related assets.

We recorded joint venture fee income of $1.6 million included in Other revenue for both the three months ended March 31, 2021 and 2020. Additionally, for the three months ended March 31, 2021, our joint venture and partnerships have increased revenues by $.7 million due to the realization of net recoveries and reduction of receivables, of which our share totaled $.1 million. For the three months ended March 31, 2020, our joint venture and partnerships reduced revenues by $.8 million due primarily to COVID lease related reserves and write-offs, which included $.9 million for straight-line rent receivables. Of these amounts for the three months ended March 31, 2020, our share totaled $.3 million, which included $.3 million for straight-line rent receivables. For additional information, see Note 1.

Effective as of March 31, 2021, a secured variable-rate loan of $170 million was extended to March 31, 2022 under an available one-year extension and has an additional one-year renewal option available.

During 2020, we sold two centers and our interest in two centers, ranging from 20% to 50%, at an aggregate gross value of approximately $148.3 million, of which our share of the gain, included in equity earnings in real estate joint ventures and partnerships, totaled $23.5 million. Also during 2020, we invested an additional $8.7 million in a 90% owned unconsolidated real estate joint venture for a mixed-use new development.

In December 2020, we acquired our partner’s 42.25% interest in a center at an unconsolidated real estate joint venture for approximately $115.2 million. The transaction resulted in the consolidation of the property in our consolidated financial statements.

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Note 5. Debt

Our debt consists of the following (in thousands):

    

March 31, 

December 31, 

    

2021

    

2020

Debt payable, net to 2038 (1)

$

1,721,923

$

1,723,073

Unsecured notes payable under credit facilities

40,000

Debt service guaranty liability

53,650

53,650

Finance lease obligation

21,664

21,696

Total

$

1,797,237

$

1,838,419

(1)At both March 31, 2021 and December 31, 2020, interest rates ranged from 3.3% to 7.0% at a weighted average rate of 3.9%.

The allocation of total debt between fixed and variable-rate as well as between secured and unsecured is summarized below (in thousands):

    

March 31, 

December 31, 

    

2021

    

2020

As to interest rate (including the effects of interest rate contracts):

  

  

Fixed-rate debt

$

1,797,237

$

1,798,419

Variable-rate debt

 

 

40,000

Total

$

1,797,237

$

1,838,419

As to collateralization:

 

 

  

Unsecured debt

$

1,449,383

$

1,488,909

Secured debt

 

347,854

 

349,510

Total

$

1,797,237

$

1,838,419

We maintain a $500 million unsecured revolving credit facility, which was amended and extended on December 11, 2019. This facility expires in March 2024, provides for two consecutive six-month extensions upon our request, and borrowing rates that float at a margin over LIBOR plus a facility fee. At both March 31, 2021 and December 31, 2020, the borrowing margin and facility fee, which are priced off a grid that is tied to our senior unsecured credit ratings, were 82.5 and 15 basis points, respectively. The facility also contains a competitive bid feature that allows us to request bids for up to $250 million. Additionally, an accordion feature allows us to increase the facility amount up to $850 million.

Additionally, we have a $10 million unsecured short-term facility, which was amended and extended on March 24, 2021, that we maintain for cash management purposes, which matures in March 2022. At both March 31, 2021 and December 31, 2020, the facility provided for fixed interest rate loans at a 30-day LIBOR rate plus a borrowing margin, facility fee and an unused facility fee of 125, 10, and 5 basis points, respectively.

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The following table discloses certain information regarding our unsecured notes payable under our credit facilities (in thousands, except percentages):

    

March 31, 

December 31, 

 

    

2021

    

2020

 

Unsecured revolving credit facility:

  

 

  

Balance outstanding

$

$

40,000

Available balance

 

498,068

 

458,068

Letters of credit outstanding under facility

 

1,932

 

1,932

Variable interest rate (excluding facility fee)

 

0.93

%  

 

0.94

%

Unsecured short-term facility:

 

  

 

  

Balance outstanding

$

$

Variable interest rate (excluding facility fee)

 

%  

 

%

Both facilities:

 

  

 

  

Maximum balance outstanding during the period

$

40,000

$

497,000

Weighted average balance

 

5,378

 

74,311

Year-to-date weighted average interest rate (excluding facility fee)

 

0.93

%  

 

1.0

%

Related to a development project in Sheridan, Colorado, we have provided a guaranty for the payment of any debt service shortfalls until a coverage rate of 1.4x is met on tax increment revenue bonds issued in connection with the project. The bonds are to be repaid with incremental sales and property taxes and a public improvement fee (“PIF”) to be assessed on current and future retail sales and, to the extent necessary, any amounts we may have to provide under a guaranty. The incremental taxes and PIF are to remain intact until the earlier of the date the bond liability has been paid in full or 2040. Therefore, a debt service guaranty liability equal to the fair value of the amounts funded under the bonds was recorded. As of both March 31, 2021 and December 31, 2020, we had $53.7 million outstanding for the debt service guaranty liability.

Various leases and properties, and current and future rentals from those leases and properties, collateralize certain debt. At both March 31, 2021 and December 31, 2020, the carrying value of such assets aggregated $.6 billion. Additionally, at both March 31, 2021 and December 31, 2020, investments of $6.0 million, included in Restricted Deposits and Escrows, are held as collateral for letters of credit totaling $6.0 million.

Scheduled principal payments on our debt (excluding $21.7 million of a finance lease obligation, $(2.9) million net premium/(discount) on debt, $(4.2) million of deferred debt costs, $5.1 million of non-cash debt-related items, and $53.7 million debt service guaranty liability) are due during the following years (in thousands):

2021 remaining

    

$

17,344

2022

308,298

2023

 

348,207

2024

 

252,561

2025

 

294,232

2026

 

277,733

2027

 

53,604

2028

 

92,159

2029

 

70,304

2030

 

950

Thereafter

 

8,569

Total

$

1,723,961

Our various debt agreements contain restrictive covenants, including minimum interest and fixed charge coverage ratios, minimum unencumbered interest coverage ratios, minimum net worth requirements and maximum total debt levels. We are not aware of any non-compliance with our public debt and revolving credit facility covenants as of March 31, 2021.

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Note 6. Common Shares of Beneficial Interest

We have a $200 million share repurchase plan where we may repurchase common shares of beneficial interest ("common shares") from time-to-time in open-market or in privately negotiated purchases. Subject to the applicable restrictions contained in the Merger Agreement, the timing and amount of any shares repurchased will be determined by management based on its evaluation of market conditions and other factors. The repurchase plan may be suspended or discontinued at any time, and we have no obligations to repurchase any amount of our common shares under the plan.

During the three months ended March 31, 2021, no common shares were repurchased, and 1.7 million common shares were repurchased at an average price of $19.09 per share during the year ended December 31, 2020. At March 31, 2021 and as of the date of this filing, $149.4 million of common shares remained available to be repurchased under this plan.

Note 7. Leasing Operations

As a commercial real estate lessor, generally our leases are for terms of 10 years or less and may include multiple options, upon tenant election, to extend the lease term in increments up to five years. Our leases typically do not include an option to purchase. Tenant terminations prior to the lease end date occasionally results in a one-time termination fee based on the remaining unpaid lease payments including variable payments and could be material to the tenant. Many of our leases have increasing minimum rental rates during the terms of the leases through escalation provisions. In addition, the majority of our leases provide for variable rental revenues, such as, reimbursements of real estate taxes, maintenance and insurance and may include an amount based on a percentage of the tenants’ sales. Also, net rent abatements related to the COVID-19 pandemic of $.5 million were recorded as a reduction to variable lease payments for the three months ended March 31, 2021, and none were recorded for the three months ended March 31, 2020 (see Note 1 for additional information).  

Variable lease payments recognized in Rentals, net are as follows (in thousands):

Three Months Ended

March 31, 

2021

    

2020

Variable lease payments

$

26,874

$

26,877

Note 8. Supplemental Cash Flow Information

Cash, cash equivalents and restricted cash equivalents consists of the following (in thousands):

March 31, 

2021

2020

Cash and cash equivalents

    

$

52,078

    

$

484,697

Restricted deposits and escrows (see Note 1)

 

12,427

 

30,804

Total

$

64,505

$

515,501

Supplemental disclosure of non-cash transactions is summarized as follows (in thousands):

Three Months Ended

March 31, 

2021

2020

Accrued property construction costs

    

$

2,982

    

$

11,867

Increase in debt, net associated with the acquisition of real estate and land

17,952

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