KITE REALTY GROUP TRUST
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
KRG$25.45-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0001286043-24-000089
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001286043-24-000111
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 167 previous paragraphs and 170 current paragraphs.
92 unchanged; 65 reworded; 10 added; 8 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
(3)The property is comprised of the development project (which has been excluded from the Company’s same property pool due to the ongoing development) and the remaining retail operating portion of the property (which is included in the Company’s same property pool as of September 30, 2024).
Current report
Property operating expenses increased $0.1 million, or 0.4%, due to the following(in thousands):
Current report
Real estate taxes decreased $1.2 million, or 4.7%, due to the following(in thousands):
Current report
Property operating expenses increased $2.2 million, or 2.7%, due to the following(in thousands):
Current report
Real estate taxes decreased $2.1 million, or 2.6%, due to the following(in thousands):
Current report
In the FFO per share metrics, the Company excludes the dilutive effect of shares issuable upon the conversion of the Company’s 0.75% exchangeable senior notes maturing in April 2027 (the “Exchangeable Notes”) from the diluted weighted average number of common shares and units outstanding as a result of the Company’s capped call that was entered into concurrently with the issuance of the Exchangeable Notes. The potential dilutive effect of the Exchangeable Notes under the if-converted method is an increase to the diluted weighted average number of common shares and units of 117,454 common shares for the three months ended September 30, 2024. The capped call purchased by the Company offsets this dilution up to a capped price that is currently more than the Company’s share price. Both items have been excluded to reflect that there is no economic dilution to shareholders and unitholders based upon the Company’s current share price.
Current report
For purposes of the net income per share metrics, the conversion feature of the Exchangeable Notes and the capped call are required to be considered independently. Therefore, the capped call has been excluded from the calculation of net income per share as it is anti-dilutive.
Current report
Comparison of the Nine Months Ended September 30, 2024 to the Nine Months Ended September 30, 2023
Current report
•We acquired Parkside West Cobb for $39.6 million during the nine months ended September 30, 2024 compared to the acquisition of Prestonwood Place for $78.3 million during the nine months ended September 30, 2023;
Current report
•We contributed a total of $11.8 million to unconsolidated joint ventures during the nine months ended September 30, 2024 primarily related to our share of the repayment of the construction loan associated with the development of the Embassy Suites at the University of Notre Dame; and
Removed paragraphs (8)
Previous report
Rental income (including tenant reimbursements) did not change for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Rental income is comprised of the following(in thousands):
Previous report
Property operating expenses increased $1.3 million, or 4.9%, due to the following(in thousands):
Previous report
Real estate taxes decreased $0.2 million, or 0.8%, due to the following(in thousands):
Previous report
Property operating expenses increased $2.1 million, or 3.8%, due to the following(in thousands):
Previous report
Real estate taxes decreased $0.9 million, or 1.6%, due to the following(in thousands):
Previous report
(2)Decrease in the economic occupancy percentage is primarily attributable to the Bed Bath & Beyond Inc. bankruptcy.
Previous report
(1)Subsequent to June 30, 2024, the $120M Term Loan was repaid with a portion of the proceeds from the Notes Due 2034.
Previous report
Comparison of the Six Months Ended June 30, 2024 to the Six Months Ended June 30, 2023
Reworded paragraphs (65)
Previous wording
As of June 30, 2024, we owned interests in 178 operating retail properties totaling approximately 27.6 million square feet, excluding one operating retail property classified as held for sale as of June 30, 2024, and one office property with 0.3 million square feet. Of the 178 operating retail properties, 10 contain an office component. We also owned two development projects under construction as of this date and an additional two properties with future redevelopment opportunities.
Current wording
As of September 30, 2024, we owned interests in 179 operating retail properties totaling approximately 27.7 million square feet, excluding one operating retail property classified as held for sale as of September 30, 2024, and one office property with 0.3 million square feet. Of the 179 operating retail properties, 10 contain an office component. We also owned three development projects under construction as of this date and an additional two properties with future redevelopment opportunities.
Previous wording
We believe inflationary concerns could negatively impact consumer confidence and spending and our tenants’ sales and overall health. This could, in turn, continue to put downward pricing pressure on rents that we are able to charge to new or renewing tenants, such that future rent spreads and, in some cases, our percentage rents, could be adversely impacted. Many of our leases contain provisions designed to mitigate the adverse impact of inflation, including annual rent increases and requirements for tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance or other operating expenses related to the maintenance of our properties, with escalation clauses in most leases. Over the last year, we have made significant progress in converting leases to include higher fixed-rent bumps while also including CPI-based, anti-gouging protection for tenants. However, the stated rent increases or limits on such tenant’s obligation to pay its share of operating expenses could be lower than the increase in inflation at any given time. Inflation may also increase labor or other general and administrative expenses that cannot be easily reduced.
Current wording
Many of our leases contain provisions designed to mitigate the adverse impact of inflation, including annual rent increases and requirements for tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance or other operating expenses related to the maintenance of our properties, with escalation clauses in most leases. Over the last year, we have made significant progress in executing leases that include higher fixed-rent bumps while also including CPI-based, anti-gouging protection for tenants. However, the stated rent increases or limits on such tenant’s obligation to pay its share of operating expenses could be lower than the increase in inflation at any given time. Inflation may also increase labor or other general and administrative expenses, which cannot be easily reduced.
Previous wording
During the second quarter of 2024, we executed new and renewal leases on 160 individual spaces totaling 1,153,766 square feet (15.6% cash leasing spread on 136 comparable leases). New leases were signed on 55 individual spaces for 372,155 square feet of gross leasable area (“GLA”) (34.8% cash leasing spread on 40 comparable leases), while non-option renewal leases were signed on 69 individual spaces for 314,899 square feet of GLA (14.3% cash leasing spread on 60 comparable leases) and option renewals were signed on 36 individual spaces for 466,712 square feet of GLA (6.0% cash leasing spread). The blended cash spreads for comparable new and non-option renewal leases were 23.7%. Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months.
Current wording
During the third quarter of 2024, we executed new and renewal leases on 205 individual spaces totaling 1,651,986 square feet (11.1% cash leasing spread on 155 comparable leases). New leases were signed on 63 individual spaces for 284,580 square feet of gross leasable area (“GLA”) (24.9% cash leasing spread on 35 comparable leases), while non-option renewal leases were signed on 81 individual spaces for 477,515 square feet of GLA (11.9% cash leasing spread on 59 comparable leases) and option renewals were signed on 61 individual spaces for 889,891 square feet of GLA (7.7% cash leasing spread). The blended cash spread for comparable new and non-option renewal leases was 16.7%. Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months.
Previous wording
The comparability of results of operations for the three and six months ended June 30, 2024 and 2023 is affected by our development, redevelopment, and operating property acquisition and disposition activities during these periods. Therefore, we believe it is most useful to review the comparisons of our results of operations for these periods in conjunction with the discussion of our activities during those periods, which is set forth below.
Current wording
The comparability of results of operations for the three and nine months ended September 30, 2024 and 2023 is affected by our development, redevelopment, and operating property acquisition and disposition activities during these periods. Therefore, we believe it is most useful to review the comparisons of our results of operations for these periods in conjunction with the discussion of our activities during those periods, which is set forth below.
Previous wording
The following operating property was acquired during the period from January 1, 2023 through June 30, 2024:
Current wording
The following operating properties were acquired during the period from January 1, 2023 through September 30, 2024:
Previous wording
In addition, during the six months ended June 30, 2024, the joint venture that owned Glendale Center Apartments, of which we have an 11.5% ownership interest, sold the 267-unit property to a third party. Glendale Center Apartments is adjacent to our Glendale Town Center operating retail property in the Indianapolis MSA.
Current wording
In addition, during the nine months ended September 30, 2024, the joint venture that owned Glendale Center Apartments, of which we have an 11.5% ownership interest, sold the 267-unit property to a third party. Glendale Center Apartments is adjacent to our Glendale Town Center operating retail property in the Indianapolis MSA.
Previous wording
(3)Approximately half of the Hamilton Crossing site was sold in January 2022 to Republic Airways, Inc. In addition to the sale, the Company entered into a development and construction management agreement for the development of a corporate campus for Republic Airways. Phase I of the corporate campus was completed in 2023.
Current wording
(4)Approximately half of the Hamilton Crossing site was sold in January 2022 to Republic Airways, Inc. In addition to the sale, the Company entered into a development and construction management agreement for the development of a corporate campus for Republic Airways. Phase I of the corporate campus was completed in 2023.
Previous wording
Rental income (including tenant reimbursements) increased $2.8 million, or 0.7%, due to the following(in thousands):
Current wording
Rental income (including tenant reimbursements) increased $0.9 million, or 0.5%, due to the following(in thousands):
Previous wording
The net increase of $2.2 million in rental income for properties that were fully operational during 2023 and 2024 is primarily due to increases in the following: (i) tenant reimbursements of $3.5 million due to higher recoverable common area maintenance expenses, (ii) base minimum rent of $2.0 million due to contractual rent changes, (iii) ancillary income of $0.5 million, and (iv) overage rent of $0.3 million due to improved tenant performance. These variances were partially offset by a decrease in lease termination income of $2.8 million and an increase in bad debt expense of $1.3 million. The occupancy of the fully operational properties decreased from 92.5% for the three months ended June 30, 2023 to 91.3% for the three months ended June 30, 2024.
Current wording
The net increase of $2.7 million in rental income for properties that were fully operational during 2023 and 2024 is primarily due to increases in the following: (i) base minimum rent of $2.8 million due to contractual rent changes, (ii) tenant reimbursements of $1.0 million due to higher recoverable common area maintenance expenses, and (iii) lease termination income of $0.6 million. These variances were partially offset by an increase in bad debt expense of $1.2 million and a decrease in overage rent of $0.5 million. The occupancy of the fully operational properties increased from 91.5% for the three months ended September 30, 2023 to 91.7% for the three months ended September 30, 2024.
Previous wording
Other property-related revenue primarily consists of parking revenues, gains on the sale of land and other miscellaneous activity. This revenue increased by $1.3 million primarily as a result of higher gains on sales of undepreciated assets recognized during the three months ended June 30, 2024, partially offset by a decrease in miscellaneous income of $0.5 million.
Current wording
Other property-related revenue primarily consists of parking revenues, gains on the sale of land and other miscellaneous activity. This revenue decreased by $0.3 million primarily as a result of lower gains on sales of land recognized during the three months ended September 30, 2024, partially offset by an increase in miscellaneous income of $0.3 million.
Previous wording
We recorded fee income of $3.5 million and $1.0 million during the three months ended June 30, 2024 and 2023, respectively, from property management and development services provided to third parties and unconsolidated joint ventures. The increase in fee income is primarily related to development fees earned related to the development of a hotel on the Pan Am Plaza site during the three months ended June 30, 2024.
Current wording
We recorded fee income of $0.5 million and $1.1 million during the three months ended September 30, 2024 and 2023, respectively, from property management and development services provided to third parties and unconsolidated joint ventures. The decrease in fee income is primarily related to a decrease in development fees earned related to the development of a corporate campus for Republic Airways at Hamilton Crossing Centre.
Previous wording
The net increase of $2.1 million in property operating expenses for properties that were fully operational during 2023 and 2024 is primarily due to increases in the following: (i) $0.8 million in non-recoverable operating expenses, (ii) $0.7 million in landscaping and repairs and maintenance expenses, (iii) $0.5 million in insurance, and (iv) $0.1 million in security expenses. As a percentage of revenue, property operating expenses increased from 13.0% to 13.4% due to an increase in expenses in 2024.
Current wording
The net increase of $0.3 million in property operating expenses for properties that were fully operational during 2023 and 2024 is primarily due to increases in insurance expenses of $1.0 million and landscaping and repairs and maintenance expenses of $0.6 million, partially offset by decreases in non-recoverable expenses of $0.8 million and utilities of $0.4 million. As a percentage of revenue, property operating expenses increased from 13.3% to 13.4% due to an increase in expenses in 2024.
Previous wording
General, administrative and other expenses decreased $1.5 million, or 10.6%, primarily due to lower than expected compensation expense.
Current wording
General, administrative and other expenses decreased $0.7 million, or 4.7%, primarily due to lower compensation expense and a decrease in consulting fees in 2024.
Previous wording
Depreciation and amortization expense decreased $10.2 million, or 9.3%, due to the following(in thousands):
Current wording
Depreciation and amortization expense decreased $9.3 million, or 8.8%, due to the following(in thousands):
Previous wording
The net decrease of $8.6 million in depreciation and amortization at properties that were fully operational during 2023 and 2024 is primarily due to the timing of placing assets in service and writing-off tenant-related assets as a result of tenant move-outs along with certain assets acquired in the October 2021 merger with RPAI that became fully depreciated during the three months ended June 30, 2024.
Current wording
The net decrease of $7.2 million in depreciation and amortization at properties that were fully operational during 2023 and 2024 is primarily due to the timing of placing assets in service and writing-off tenant-related assets as a result of tenant move-outs along with certain assets acquired in the October 2021 merger with RPAI that became fully depreciated during the three months ended September 30, 2024.
Previous wording
Based on a reduction in the expected future hold period (see Note 3 to the accompanying consolidated financial statements), we recognized a $66.2 million impairment charge during the three months ended June 30, 2024 related to City Center, a retail operating property in the New York MSA. No impairment charges were recorded during the three months ended June 30, 2023.
Current wording
Based on the results of our evaluations for impairment during the three months ended September 30, 2023 (see Note 4 to the accompanying consolidated financial statements), we recognized a $0.5 million impairment charge on Eastside, a retail operating property in the Dallas/Ft. Worth MSA that was sold on October 24, 2023. No impairment charges were recorded during the three months ended September 30, 2024.
Previous wording
We recorded a net loss on sales of operating properties of $1.2 million for the three months ended June 30, 2024 on the sale of Ashland & Roosevelt compared to a net gain of $28.4 million on the sale of Kingwood Commons and the undeveloped land and related parking garage at Pan Am Plaza for the three months ended June 30, 2023.
Current wording
We recorded a net gain on sales of operating properties of $0.6 million for the three months ended September 30, 2024 as a result of the receipt of an escrow related to the disposition of Reisterstown Road Plaza that previously closed on September 11, 2023. We recorded a net loss on sales of operating properties of $6.0 million for the three months ended September 30, 2023 on the sale of Reisterstown Road Plaza.
Previous wording
Interest expense increased $3.8 million, or 13.9%, primarily due to interest on the January 2024 public offering of $350.0 million in aggregate principal amount of 5.50% senior unsecured notes due 2034 (the “Notes Due 2034”), partially offset by favorable interest rate swaps.
Current wording
Interest expense increased $6.2 million, or 24.2%, primarily due to interest on the January 2024 public offering of $350.0 million in aggregate principal amount of 5.50% senior unsecured notes due 2034 (the “Notes Due 2034”) and the August 2024 public offering of $350.0 million in aggregate principal amount of 4.95% senior unsecured notes due 2031 (the “Notes Due 2031”).
Previous wording
Other income, net increased $4.0 million primarily due to interest income earned on the proceeds from the Notes Due 2034, which were invested in short-term deposits during the three months ended June 30, 2024.
Current wording
Other income, net increased $3.4 million primarily due to interest income earned on the proceeds from the Notes Due 2031, which were invested in short-term deposits during the three months ended September 30, 2024.
Previous wording
Comparison of Operating Results for the Six Months Ended June 30, 2024 to the Six Months Ended June 30, 2023
Current wording
Comparison of Operating Results for the Nine Months Ended September 30, 2024 to the Nine Months Ended September 30, 2023
Previous wording
The following table reflects changes in the components of our consolidated statements of operations for the six months ended June 30, 2024 and 2023(in thousands):
Current wording
The following table reflects changes in the components of our consolidated statements of operations for the nine months ended September 30, 2024 and 2023(in thousands):
Previous wording
The net increase of $6.7 million in rental income for properties that were fully operational during 2023 and 2024 is primarily due to increases in the following: (i) tenant reimbursements of $4.3 million due to higher recoverable common area maintenance expenses, (ii) base minimum rent of $2.6 million due to contractual rent changes, (iii) ancillary income of $0.9 million, and (iv) overage rent of $0.2 million due to improved tenant performance. These variances were partially offset by a decrease in lease termination income of $1.3 million.
Current wording
The net increase of $9.0 million in rental income for properties that were fully operational during 2023 and 2024 is primarily due to increases in the following: (i) base minimum rent of $5.1 million due to contractual rent changes, (ii) tenant reimbursements of $5.1 million due to higher recoverable common area maintenance expenses, and (iii) ancillary income of $1.0 million. These variances were partially offset by an increase in bad debt expense of $1.2 million and decreases in lease termination income of $0.7 million and overage rent of $0.3 million.
Previous wording
Other property-related revenue primarily consists of parking revenues, gains on the sale of land and other miscellaneous activity. This revenue increased by $0.7 million primarily as a result of higher gains on sales of undepreciated assets recognized during the six months ended June 30, 2024, partially offset by decreases in miscellaneous income of $0.7 million and parking revenue of $0.5 million.
Current wording
Other property-related revenue primarily consists of parking revenues, gains on the sale of land and other miscellaneous activity. This revenue increased by $0.4 million primarily as a result of higher gains on sales of land recognized during the nine months ended September 30, 2024, partially offset by decreases in miscellaneous income of $0.4 million and parking revenue of $0.4 million.
Previous wording
We recorded fee income of $3.8 million and $2.8 million during the six months ended June 30, 2024 and 2023, respectively, from property management and development services provided to third parties and unconsolidated joint ventures. The increase in fee income is primarily related to development fees earned related to the development of a hotel on the Pan Am Plaza site during 2024, partially offset by a decrease in development fees earned related to the development of a corporate campus for Republic Airways at Hamilton Crossing Centre in 2024 due to the completion of Phase I of the corporate campus in 2023.
Current wording
We recorded fee income of $4.2 million and $3.9 million during the nine months ended September 30, 2024 and 2023, respectively, from property management and development services provided to third parties and unconsolidated joint ventures. The increase in fee income is primarily related to development fees earned related to the development of a hotel on the Pan Am Plaza site during 2024, partially offset by a decrease in development fees earned related to the development of a corporate campus for Republic Airways at Hamilton Crossing Centre in 2024 due to the completion of Phase I of the corporate campus in 2023.
Previous wording
The net increase of $3.8 million in property operating expenses for properties that were fully operational during 2023 and 2024 is primarily due to increases in the following: (i) $1.4 million in landscaping and repairs and maintenance expenses, (ii) $1.2 million in non-recoverable operating expenses, (iii) $1.0 million in insurance, and (iv) $0.3 million in security expenses. As a percentage of revenue, property operating expenses increased from 13.1% to 13.5% due to an increase in expenses in 2024.
Current wording
The net increase of $4.0 million in property operating expenses for properties that were fully operational during 2023 and 2024 is primarily due to increases in the following: (i) $2.0 million in insurance expenses, (ii) $1.9 million in landscaping and repairs and maintenance expenses, (iii) $0.4 million in non-recoverable operating expenses, and (iv) $0.3 million in security expenses. These variances were partially offset by a decrease in utilities of $0.6 million. As a percentage of revenue, property operating expenses increased from 13.2% to 13.5% due to an increase in expenses in 2024.
Previous wording
The net increase of $0.3 million in real estate taxes for properties that were fully operational during 2023 and 2024 is primarily due to lower real estate tax refunds received in 2024, partially offset by higher capitalized real estate tax expenses related to signed anchor leases at certain properties in the portfolio in 2024. The majority of real estate tax expense is recoverable from tenants and such recovery is reflected within “Rental income” in the accompanying consolidated statements of operations and comprehensive income.
Current wording
The net decrease of $1.0 million in real estate taxes for properties that were fully operational during 2023 and 2024 is primarily due to lower expected real estate tax assessments at certain properties in the portfolio in 2024 and higher capitalized real estate tax expenses related to signed anchor leases at certain properties in the portfolio in 2024. The majority of real estate tax expense is recoverable from tenants and such recovery is reflected within “Rental income” in the accompanying consolidated statements of operations and comprehensive income.
Previous wording
General, administrative and other expenses decreased $2.1 million, or 7.6%, primarily due to lower than expected compensation expense.
Current wording
General, administrative and other expenses decreased $2.8 million, or 6.7%, primarily due to lower compensation expense and a decrease in consulting fees in 2024.
Previous wording
Depreciation and amortization expense decreased $17.9 million, or 8.2%, due to the following(in thousands):
Current wording
Depreciation and amortization expense decreased $27.1 million, or 8.4%, due to the following(in thousands):
Previous wording
The net decrease of $15.5 million in depreciation and amortization at properties that were fully operational during 2023 and 2024 is primarily due to the timing of placing assets in service and writing-off tenant-related assets as a result of tenant move-outs along with certain assets acquired in the October 2021 merger with RPAI that became fully depreciated during the six months ended June 30, 2024.
Current wording
The net decrease of $22.7 million in depreciation and amortization at properties that were fully operational during 2023 and 2024 is primarily due to the timing of placing assets in service and writing-off tenant-related assets as a result of tenant move-outs along with certain assets acquired in the October 2021 merger with RPAI that became fully depreciated during the nine months ended September 30, 2024.
Previous wording
Based on a reduction in the expected future hold period (see Note 3 to the accompanying consolidated financial statements), we recorded a $66.2 million impairment charge during the six months ended June 30, 2024 related to City Center, a retail operating property in the New York MSA. No impairment charges were recorded during the six months ended June 30, 2023.
Current wording
Based on a reduction in the expected future hold period (see Note 4 to the accompanying consolidated financial statements), we recorded a $66.2 million impairment charge during the nine months ended September 30, 2024 related to City Center, a retail operating property in the New York MSA. During the nine months ended September 30, 2023, we recorded a $0.5 million impairment charge on Eastside, a retail operating property in the Dallas/Ft. Worth MSA that was sold on October 24, 2023.
Previous wording
We recorded a net loss on sales of operating properties of $1.5 million for the six months ended June 30, 2024 primarily on the sale of Ashland & Roosevelt compared to a net gain of $28.4 million on the sale of Kingwood Commons and the undeveloped land and related parking garage at Pan Am Plaza for the six months ended June 30, 2023.
Current wording
We recorded a net loss on sales of operating properties of $0.9 million for the nine months ended September 30, 2024 primarily on the sale of Ashland & Roosevelt, which loss was offset by the receipt of a $0.6 million escrow related to the sale of Reisterstown Road Plaza that previously closed on September 11, 2023. During the nine months ended September 30, 2023, we recorded a net gain on sales of operating properties of $22.5 million on the sale of Kingwood Commons, the undeveloped land and related parking garage at Pan Am Plaza, and Reisterstown Road Plaza.
Previous wording
Interest expense increased $8.7 million, or 16.6%, primarily due to interest on the Notes Due 2034, partially offset by favorable interest rate swaps.
Current wording
Interest expense increased $14.9 million, or 19.0%, primarily due to interest on the Notes Due 2034 and the Notes Due 2031, partially offset by favorable interest rate swaps.
Previous wording
The $2.3 million gain on sale of unconsolidated property represents our share of the gain on the sale of Glendale Center Apartments recognized during the six months ended June 30, 2024. No such gain was recorded during the six months ended June 30, 2023.
Current wording
The $2.3 million gain on sale of unconsolidated property represents our share of the gain on the sale of Glendale Center Apartments recognized during the nine months ended September 30, 2024. No such gain was recorded during the nine months ended September 30, 2023.
Previous wording
Other income, net increased $7.2 million primarily due to interest income earned on the proceeds from the Notes Due 2034, which were invested in short-term deposits during the six months ended June 30, 2024.
Current wording
Other income, net increased $10.6 million primarily due to interest income earned on the proceeds from the Notes Due 2034 and the Notes Due 2031, which were invested in short-term deposits at various points during the nine months ended September 30, 2024.
Previous wording
For the three and six months ended June 30, 2024, the same property pool excludes the following:
Current wording
For the three and nine months ended September 30, 2024, the same property pool excludes the following:
Previous wording
•our active development and redevelopment projects at Carillon medical office building and The Corner – IN;
Current wording
•our active development and redevelopment projects at Carillon medical office building, The Corner – IN, and One Loudoun Expansion;
Previous wording
The following table presents Same Property NOI and a reconciliation to net income attributable to common shareholders for the three and six months ended June 30, 2024 and 2023(dollars in thousands):
Current wording
The following table presents Same Property NOI and a reconciliation to net income (loss) attributable to common shareholders for the three and nine months ended September 30, 2024 and 2023(dollars in thousands):
Previous wording
(1)Same Property NOI excludes the following: (i) properties acquired or placed in service during 2023 and 2024; (ii) The Landing at Tradition – Phase II, which was reclassified from active redevelopment into our operating portfolio in June 2023; (iii) our active development and redevelopment projects at Carillon medical office building and The Corner – IN; (iv) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (v) properties sold or classified as held for sale during 2023 and 2024; and (vi) office properties.
Current wording
(1)Same Property NOI excludes the following: (i) properties acquired or placed in service during 2023 and 2024; (ii) The Landing at Tradition – Phase II, which was reclassified from active redevelopment into our operating portfolio in June 2023; (iii) our active development and redevelopment projects at Carillon medical office building, The Corner – IN, and One Loudoun Expansion; (iv) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (v) properties sold or classified as held for sale during 2023 and 2024; and (vi) office properties.
Previous wording
(3)Excludes leases that are signed but for which tenants have not yet commenced the payment of cash rent; calculated as a weighted average based on the timing of cash rent commencement and expiration during the period.
Current wording
(2)Excludes leases that are signed but for which tenants have not yet commenced the payment of cash rent; calculated as a weighted average based on the timing of cash rent commencement and expiration during the period.
Previous wording
(4)Includes non-cash activity across the portfolio as well as NOI from properties not included in the same property pool, including properties sold during both periods.
Current wording
(3)Includes non-cash activity across the portfolio as well as NOI from properties not included in the same property pool, including properties sold during both periods.
Showing the first 40 of 65 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
The net decrease of $0.9 million in real estate taxes for properties that were fully operational during 2023 and 2024 is primarily due to (i) lower expected real estate tax assessments at certain properties in the portfolio in 2024, (ii) an increase in real estate tax refunds received during the three months ended September 30, 2024, and (iii) higher capitalized real estate tax expenses related to signed anchor leases at certain properties in the portfolio in 2024. The majority of real estate tax expense is recoverable from tenants and such recovery is reflected within “Rental income” in the accompanying consolidated statements of operations and comprehensive income.
Current report — wording carried from elsewhere
Rental income (including tenant reimbursements) increased $3.7 million, or 0.6%, due to the following(in thousands):
Current report — wording carried from elsewhere
Other short-term liquidity needs include expenditures for tenant improvements, external leasing commissions and recurring capital expenditures. During the nine months ended September 30, 2024, we incurred $18.8 million for recurring capital expenditures on operating properties and $73.7 million for tenant improvements and external leasing commissions, which includes costs to re-lease anchor space at our operating properties related to tenants open and operating as of September 30,
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
There was no change in real estate taxes for properties that were fully operational during 2023 and 2024. The majority of real estate tax expense is recoverable from tenants and such recovery is reflected within “Rental income” in the accompanying consolidated statements of operations and comprehensive income.
Previous report — wording carried elsewhere
“Risk Factors – Risks Related to Our Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023 for more information related to the risks associated with our indebtedness.