Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document Information [Abstract] | ||
Entity Registrant Name | URBAN EDGE PROPERTIES | |
Entity Central Index Key | 0001611547 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 120,405,524 |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Real estate, at cost: | ||
Land | $ 525,027 | $ 525,819 |
Buildings and improvements | 2,174,923 | 2,156,113 |
Construction in progress | 73,649 | 80,385 |
Furniture, fixtures and equipment | 6,790 | 6,675 |
Total | 2,780,389 | 2,768,992 |
Accumulated depreciation and amortization | (661,435) | (645,872) |
Real estate, net | 2,118,954 | 2,123,120 |
Right-of-use assets | 96,466 | 0 |
Cash and cash equivalents | 416,668 | 440,430 |
Restricted cash | 32,120 | 17,092 |
Tenant and other receivables, net of allowance for doubtful accounts of $6,486 as of December 31, 2018 | 39,002 | 28,563 |
Receivable arising from the straight-lining of rents, net of $134 as of December 31, 2018 | 80,848 | 84,903 |
Identified intangible assets, net of accumulated amortization of $29,582 and $39,526, respectively | 53,994 | 68,422 |
Deferred leasing costs, net of accumulated amortization of $17,236 and $16,826, respectively | 21,558 | 21,277 |
Deferred financing costs, net of accumulated amortization of $3,020 and $2,764, respectively | 1,963 | 2,219 |
Prepaid expenses and other assets | 12,854 | 12,968 |
Total assets | 2,874,427 | 2,798,994 |
Liabilities: | ||
Mortgages payable, net | 1,549,479 | 1,550,242 |
Lease liabilities | 91,906 | 0 |
Accounts payable, accrued expenses and other liabilities | 85,424 | 98,517 |
Identified intangible liabilities, net of accumulated amortization of $67,223 and $65,058, respectively | 141,526 | 144,258 |
Total liabilities | 1,868,335 | 1,793,017 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common shares: $0.01 par value; 500,000,000 shares authorized and 120,099,294 and 114,345,565 shares issued and outstanding, respectively | 1,201 | 1,143 |
Additional paid-in capital | 1,005,129 | 956,420 |
Accumulated deficit | (56,663) | (52,857) |
Noncontrolling interests: | ||
Operating partnership | 55,976 | 100,822 |
Partners’ capital: | ||
Consolidated subsidiaries | 449 | 449 |
Total equity | 1,006,092 | 1,005,977 |
Total liabilities and equity | 2,874,427 | 2,798,994 |
Urban Edge Properties LP | ||
Real estate, at cost: | ||
Land | 525,027 | 525,819 |
Buildings and improvements | 2,174,923 | 2,156,113 |
Construction in progress | 73,649 | 80,385 |
Furniture, fixtures and equipment | 6,790 | 6,675 |
Total | 2,780,389 | 2,768,992 |
Accumulated depreciation and amortization | (661,435) | (645,872) |
Real estate, net | 2,118,954 | 2,123,120 |
Right-of-use assets | 96,466 | 0 |
Cash and cash equivalents | 416,668 | 440,430 |
Restricted cash | 32,120 | 17,092 |
Tenant and other receivables, net of allowance for doubtful accounts of $6,486 as of December 31, 2018 | 39,002 | 28,563 |
Receivable arising from the straight-lining of rents, net of $134 as of December 31, 2018 | 80,848 | 84,903 |
Identified intangible assets, net of accumulated amortization of $29,582 and $39,526, respectively | 53,994 | 68,422 |
Deferred leasing costs, net of accumulated amortization of $17,236 and $16,826, respectively | 21,558 | 21,277 |
Deferred financing costs, net of accumulated amortization of $3,020 and $2,764, respectively | 1,963 | 2,219 |
Prepaid expenses and other assets | 12,854 | 12,968 |
Total assets | 2,874,427 | 2,798,994 |
Liabilities: | ||
Mortgages payable, net | 1,549,479 | 1,550,242 |
Lease liabilities | 91,906 | 0 |
Accounts payable, accrued expenses and other liabilities | 85,424 | 98,517 |
Identified intangible liabilities, net of accumulated amortization of $67,223 and $65,058, respectively | 141,526 | 144,258 |
Total liabilities | 1,868,335 | 1,793,017 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Accumulated deficit | (60,509) | (57,482) |
Partners’ capital: | ||
General partner: 120,099,294 and 114,345,565 units outstanding, respectively | 1,006,330 | 957,563 |
Limited partners: 7,109,786 and 12,736,633 units outstanding, respectively | 59,822 | 105,447 |
Total partners’ capital | 1,005,643 | 1,005,528 |
Consolidated subsidiaries | 449 | 449 |
Total equity | 1,006,092 | 1,005,977 |
Total liabilities and equity | $ 2,874,427 | $ 2,798,994 |
Consolidated and Combined Bal_2
Consolidated and Combined Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 0 | $ 6,486 |
Allowance for Doubtful Other Receivables, Current | 0 | 134 |
Accumulated amortization, identified intangible assets | 29,582 | 39,526 |
Accumulated amortization, deferred leasing costs | 17,236 | 16,826 |
Accumulated amortization, deferred financing costs | 3,020 | 2,764 |
Accumulated amortization, identified intangible liabilities | $ 67,223 | $ 65,058 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares, outstanding (in shares) | 120,099,294 | 114,345,565 |
Urban Edge Properties LP | ||
Allowance for Doubtful Other Receivables, Current | $ 0 | $ 134 |
Accumulated amortization, identified intangible assets | 29,582 | 39,526 |
Accumulated amortization, deferred leasing costs | 17,236 | 16,826 |
Accumulated amortization, deferred financing costs | 3,020 | 2,764 |
Accumulated amortization, identified intangible liabilities | $ 67,223 | $ 65,058 |
Common stock, shares, outstanding (in shares) | 120,099,294 | 114,345,565 |
Limited Partners, units outstanding (in units) | 7,109,786 | 12,736,633 |
Consolidated and Combined State
Consolidated and Combined Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUE | ||
Rental revenue | $ 97,308 | $ 98,394 |
Total revenue | 97,732 | 99,053 |
EXPENSES | ||
Depreciation and amortization | 21,830 | 21,270 |
Real estate taxes | 15,477 | 15,775 |
Property operating | 17,061 | 17,903 |
General and administrative | 10,580 | 7,641 |
Casualty and impairment loss (gain), net | 3,958 | (1,341) |
Lease expense | 3,655 | 2,736 |
Total expenses | 72,561 | 63,984 |
Gain on sale of real estate | 16,953 | 0 |
Interest income | 2,506 | 1,524 |
Interest and debt expense | (16,536) | (15,644) |
Gain on extinguishment of debt | 0 | 2,524 |
Income before income taxes | 28,094 | 23,473 |
Income tax expense | (202) | (434) |
Net income | 27,892 | 23,039 |
Less net income attributable to noncontrolling interests in: | ||
Operating partnership | (2,355) | (2,328) |
Consolidated subsidiaries | 0 | (11) |
Net income (loss) attributable to common shareholders | $ 25,537 | $ 20,700 |
Earnings per common share - Basic (in dollars per share) | $ 0.22 | $ 0.18 |
Earnings per common share - Diluted (in dollars per share) | $ 0.22 | $ 0.18 |
Weighted average shares outstanding - Basic (in shares) | 116,274 | 113,677 |
Weighted average shares outstanding - Diluted (in shares) | 126,504 | 113,864 |
Management and development fees | ||
REVENUE | ||
Revenues | $ 352 | $ 342 |
Other income | ||
REVENUE | ||
Revenues | 72 | 317 |
Urban Edge Properties LP | ||
REVENUE | ||
Rental revenue | 97,308 | 98,394 |
Total revenue | 97,732 | 99,053 |
EXPENSES | ||
Depreciation and amortization | 21,830 | 21,270 |
Real estate taxes | 15,477 | 15,775 |
Property operating | 17,061 | 17,903 |
General and administrative | 10,580 | 7,641 |
Casualty and impairment loss (gain), net | 3,958 | (1,341) |
Lease expense | 3,655 | 2,736 |
Total expenses | 72,561 | 63,984 |
Gain on sale of real estate | 16,953 | 0 |
Interest income | 2,506 | 1,524 |
Interest and debt expense | (16,536) | (15,644) |
Gain on extinguishment of debt | 0 | 2,524 |
Income before income taxes | 28,094 | 23,473 |
Income tax expense | (202) | (434) |
Net income | 27,892 | 23,039 |
Less net income attributable to noncontrolling interests in: | ||
Consolidated subsidiaries | 0 | (11) |
Net income (loss) attributable to common shareholders | $ 27,892 | $ 23,028 |
Earnings per common share - Basic (in dollars per share) | $ 0.22 | $ 0.18 |
Earnings per common share - Diluted (in dollars per share) | $ 0.22 | $ 0.18 |
Weighted average shares outstanding - Basic (in shares) | 126,391 | 126,123 |
Weighted average shares outstanding - Diluted (in shares) | 126,505 | 126,582 |
Urban Edge Properties LP | Management and development fees | ||
REVENUE | ||
Revenues | $ 352 | $ 342 |
Urban Edge Properties LP | Other income | ||
REVENUE | ||
Revenues | $ 72 | $ 317 |
Consolidated and Combined Sta_2
Consolidated and Combined Statements of Changes in Equity - USD ($) $ in Thousands | Total | Urban Edge Properties LP | Urban Edge Properties LPAccumulated Earnings (Deficit) | Urban Edge Properties LPConsolidated Subsidiaries | Urban Edge Properties LPGeneral Partner | Urban Edge Properties LPLimited Partners | Common Shares | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Operating Partnership | Consolidated Subsidiaries |
Beginning balance (in shares) at Dec. 31, 2017 | 113,827,529 | 12,812,954,000 | 113,827,529 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 990,541 | $ 990,541 | $ (62,898) | $ 404 | $ 947,540 | $ 105,495 | $ 1,138 | $ 946,402 | $ (57,621) | $ 100,218 | $ 404 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income attributable to common shareholders | 20,700 | 23,028 | 23,028 | 20,700 | |||||||
Net income attributable to noncontrolling interests | 2,339 | 11 | 11 | 2,328 | 11 | ||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 102,353 | ||||||||||
Common units issued as a result of common shares issued by Urban Edge | (24) | (65) | $ 41 | ||||||||
Units redeemed for common shares (in shares) | 10,000 | ||||||||||
Units redeemed for common shares | 79 | 79 | |||||||||
Limited partnership units issued, net (in shares) | 10,000 | 27,810,000 | |||||||||
Limited partnership units issued, net | 0 | $ 563 | $ (563) | ||||||||
Reallocation of noncontrolling interests | (79) | 484 | (563) | ||||||||
Common shares issued (in shares) | 102,353 | ||||||||||
Common shares issued | (24) | $ 1 | 40 | (65) | |||||||
Dividends to common shareholders ($0.22 per share) | (24,997) | (24,997) | |||||||||
Distributions to redeemable NCI ($0.22 per unit) | (2,786) | (2,786) | |||||||||
Distributions to Partners ($0.22 per unit) | (27,783) | (27,783) | |||||||||
Share-based compensation expense | 2,020 | 2,020 | 8 | $ 1,173 | $ 839 | 1,173 | 8 | 839 | |||
Share-based awards retained for taxes (in shares) | (16,158) | (16,158) | |||||||||
Share-based awards retained for taxes | (363) | (363) | $ (363) | (363) | |||||||
Ending balance (in shares) at Mar. 31, 2018 | 113,923,724 | 12,840,764,000 | 113,923,724 | ||||||||
Ending balance at Mar. 31, 2018 | $ 987,430 | $ 987,430 | (67,710) | 415 | $ 948,954 | $ 105,771 | $ 1,139 | 947,815 | (61,975) | 100,036 | 415 |
Beginning balance (in shares) at Dec. 31, 2018 | 114,345,565 | 114,345,565 | 114,345,565 | 12,736,633 | 114,345,565 | ||||||
Beginning balance at Dec. 31, 2018 | $ 1,005,977 | $ 1,005,977 | (57,482) | 449 | $ 957,563 | $ 105,447 | $ 1,143 | 956,420 | (52,857) | 100,822 | 449 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income attributable to common shareholders | 25,537 | 27,892 | 27,892 | 25,537 | |||||||
Net income attributable to noncontrolling interests | 2,355 | 0 | 2,355 | ||||||||
Common units issued as a result of common shares issued by Urban Edge (in shares) | 20,657 | ||||||||||
Common units issued as a result of common shares issued by Urban Edge | 35 | (35) | $ 70 | ||||||||
Units redeemed for common shares (in shares) | 5,762,184 | (5,762,184) | 5,762,184 | ||||||||
Units redeemed for common shares | 46,147 | 46,147 | $ 46,147 | $ 57 | 46,090 | ||||||
Limited partnership units issued, net (in shares) | 135,337 | ||||||||||
Limited partnership units issued, net | 0 | ||||||||||
Reallocation of noncontrolling interests | (46,147) | (46,147) | 1,250 | $ (47,397) | 1,250 | (47,397) | |||||
Common shares issued (in shares) | 20,657 | ||||||||||
Common shares issued | 35 | $ 1 | 69 | (35) | |||||||
Dividends to common shareholders ($0.22 per share) | (26,390) | (26,390) | |||||||||
Distributions to redeemable NCI ($0.22 per unit) | (1,576) | (1,576) | |||||||||
Distributions to Partners ($0.22 per unit) | (27,966) | (27,966) | |||||||||
Share-based compensation expense | 3,664 | 3,664 | $ 1,892 | $ 1,772 | 1,892 | 1,772 | |||||
Share-based awards retained for taxes (in shares) | (29,112) | (29,112) | |||||||||
Share-based awards retained for taxes | $ (592) | $ (592) | $ (592) | (592) | |||||||
Ending balance (in shares) at Mar. 31, 2019 | 120,099,294 | 120,099,294 | 120,099,294 | 7,109,786 | 120,099,294 | ||||||
Ending balance at Mar. 31, 2019 | $ 1,006,092 | $ 1,006,092 | $ (60,509) | $ 449 | $ 1,006,330 | $ 59,822 | $ 1,201 | $ 1,005,129 | $ (56,663) | $ 55,976 | $ 449 |
Consolidated and Combined Sta_3
Consolidated and Combined Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 |
Limited Partners | Urban Edge Properties LP | ||
Noncontrolling interest percentage | 5.60% | 10.10% |
Accumulated Earnings (Deficit) | Urban Edge Properties LP | ||
Dividends on common shares (in dollars per share) | $ 0.22 | $ 0.22 |
Accumulated Earnings (Deficit) | ||
Dividends on common shares (in dollars per share) | 0.22 | 0.22 |
Operating Partnership | ||
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 |
Consolidated and Combined Sta_4
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 27,892 | $ 23,039 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,747 | 21,430 |
Casualty and impairment loss | 3,958 | 0 |
Gain on sale of real estate | (16,953) | 0 |
Gain on extinguishment of debt | 0 | (2,524) |
Amortization of deferred financing costs | 720 | 722 |
Amortization of below market leases, net | (2,360) | (2,633) |
Amortization of right-of-use assets | 2,014 | 0 |
Straight-lining of rent | (22) | 66 |
Share-based compensation expense | 3,664 | 2,020 |
Provision for doubtful accounts | 0 | 1,236 |
Change in operating assets and liabilities: | ||
Tenant and other receivables | (10,379) | (5,320) |
Deferred leasing costs | (1,201) | (938) |
Prepaid and other assets | 93 | 1,295 |
Accounts payable, accrued expenses and other liabilities | 254 | (4,392) |
Net cash provided by operating activities | 29,427 | 34,001 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Real estate development and capital improvements | (26,696) | (29,272) |
Acquisition of real estate | 0 | (3,965) |
Proceeds from sale of operating properties | 18,202 | 0 |
Insurance proceeds | 0 | 1,000 |
Net cash used in investing activities | (8,494) | (32,237) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt repayments | (1,144) | (844) |
Dividends to common shareholders | (26,390) | (24,997) |
Distributions to redeemable noncontrolling interests | (1,576) | (2,786) |
Taxes withheld for vested restricted shares | (592) | (363) |
Proceeds (payments) related to the issuance of common shares | 35 | (24) |
Net cash used in financing activities | (29,667) | (29,014) |
Net decrease in cash and cash equivalents and restricted cash | (8,734) | (27,250) |
Cash and cash equivalents and restricted cash at beginning of period | 457,522 | 500,841 |
Cash and cash equivalents and restricted cash at end of period | 448,788 | 473,591 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash payment for interest net of amounts capitalized of $565 and $1,154, respectively | 16,122 | 17,253 |
Cash payments for income taxes | 7 | 618 |
Cash payments for lease liabilities | 2,740 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures included in accounts payable and accrued expenses | 15,559 | 23,074 |
Write-off of fully depreciated assets | 7,106 | 689 |
Operating lease liabilities arising from obtaining right-of-use assets | 93,613 | 0 |
Mortgage debt forgiven in foreclosure | 0 | 11,537 |
Cash and cash equivalents and restricted cash at end of period | 457,522 | 500,841 |
Urban Edge Properties LP | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 27,892 | 23,039 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,747 | 21,430 |
Casualty and impairment loss | 3,958 | 0 |
Gain on sale of real estate | (16,953) | 0 |
Gain on extinguishment of debt | 0 | (2,524) |
Amortization of deferred financing costs | 720 | 722 |
Amortization of below market leases, net | (2,360) | (2,633) |
Amortization of right-of-use assets | 2,014 | 0 |
Straight-lining of rent | (22) | 66 |
Share-based compensation expense | 3,664 | 2,020 |
Provision for doubtful accounts | 0 | 1,236 |
Change in operating assets and liabilities: | ||
Tenant and other receivables | (10,379) | (5,320) |
Deferred leasing costs | (1,201) | (938) |
Prepaid and other assets | 93 | 1,295 |
Accounts payable, accrued expenses and other liabilities | 254 | (4,392) |
Net cash provided by operating activities | 29,427 | 34,001 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Real estate development and capital improvements | (26,696) | (29,272) |
Acquisition of real estate | 0 | (3,965) |
Proceeds from sale of operating properties | 18,202 | 0 |
Insurance proceeds | 0 | 1,000 |
Net cash used in investing activities | (8,494) | (32,237) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt repayments | (1,144) | (844) |
Distributions to partners | (27,966) | (27,783) |
Taxes withheld for vested restricted shares | (592) | (363) |
Proceeds (payments) related to the issuance of common shares | 35 | (24) |
Net cash used in financing activities | (29,667) | (29,014) |
Net decrease in cash and cash equivalents and restricted cash | (8,734) | (27,250) |
Cash and cash equivalents and restricted cash at beginning of period | 457,522 | 500,841 |
Cash and cash equivalents and restricted cash at end of period | 448,788 | 473,591 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash payment for interest net of amounts capitalized of $565 and $1,154, respectively | 16,122 | 17,253 |
Cash payments for income taxes | 7 | 618 |
Cash payments for lease liabilities | 2,740 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures included in accounts payable and accrued expenses | 15,559 | 23,074 |
Write-off of fully depreciated assets | 7,106 | 689 |
Operating lease liabilities arising from obtaining right-of-use assets | 93,613 | 0 |
Mortgage debt forgiven in foreclosure | 0 | 11,537 |
Cash and cash equivalents and restricted cash at end of period | $ 457,522 | $ 500,841 |
Consolidated and Combined Sta_5
Consolidated and Combined Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Capitalized interest | $ 565 | $ 1,154 |
Urban Edge Properties LP | ||
Capitalized interest | $ 565 | $ 1,154 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Urban Edge Properties (“UE”, “Urban Edge” or the “Company”) (NYSE: UE) is a Maryland real estate investment trust focused on managing, developing, redeveloping, and acquiring retail real estate in urban communities, primarily in the New York metropolitan area. Urban Edge Properties LP (“UELP” or the “Operating Partnership”) is a Delaware limited partnership formed to serve as UE’s majority-owned partnership subsidiary and to own, through affiliates, all of our real estate properties and other assets. Unless the context otherwise requires, references to “we”, “us” and “our” refer to Urban Edge Properties and UELP and their consolidated entities/subsidiaries. The Operating Partnership’s capital includes general and common limited partnership interests in the operating partnership (“OP Units”). As of March 31, 2019 , Urban Edge owned approximately 94.4% of the outstanding common OP Units with the remaining limited OP Units held by members of management, our Board of Trustees and contributors of property interests acquired. Urban Edge serves as the sole general partner of the Operating Partnership. The third-party unitholders have limited rights over the Operating Partnership such that they do not have characteristics of a controlling financial interest. As such, the Operating Partnership is considered a variable interest entity (“VIE”), and the Company is the primary beneficiary which consolidates it. The Company’s only investment is the Operating Partnership. The VIE’s assets can be used for purposes other than the settlement of the VIE’s obligations and the Company’s partnership interest is considered a majority voting interest. As of March 31, 2019 , our portfolio consisted of 82 shopping centers, four malls and a warehouse park, totaling approximately 16.1 million square feet (sf). |
BASIS OF PRESENTATION AND PRINC
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION | BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the Securities Exchange Commission (“SEC”). The consolidated balance sheets as of March 31, 2019 and December 31, 2018 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. The consolidated statements of income for the three months ended March 31, 2019 and 2018 include the consolidated accounts of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation. In accordance with ASC 205 Presentation of Financial Statements, the Company reclassified Property rentals and Tenant reimbursement income to Rental revenue on its consolidated statements of income for the three months ended March 31, 2019 and 2018, respectively, as reflected in our Form 10-K. Additionally, the Company includes credit losses related to operating lease receivables as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income for the quarter ended March 31, 2019 due to the adoption of (“ASU 2016-02”) ASC 842 Leases. P rovision for doubtful accounts are included in "Property operating expenses" for the quarter ended March 31, 2018. Our primary business is the ownership, management, redevelopment, development and operation of retail shopping centers and malls. We do not distinguish our primary business or group our operations on a geographical basis for purposes of measuring performance. The Company’s chief operating decision maker reviews operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. None of our tenants accounted for more than 10% of our revenue or property operating income. We aggregate all of our properties into one reportable segment due to their similarities with regard to the nature and economics of the properties, tenants and operations, as well as long-term average financial performance. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Literature — Effective for the fiscal period beginning January 1, 2019, we adopted (“ASU 2016-02”) ASC 842 Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). In connection with the adoption of ASU 2016-02, we also adopted (i) ASU 2019-01 Leases (ASC 842): Codification Improvements , (ii) ASU 2018-20 Leases (ASC 842): Narrow-Scope Improvements for Lessors , (iii) ASU 2018-11 Leases (ASC 842): Targeted Improvements , (iv) ASU 2018-10 Codification Improvements to ASC 842, Leases and (v) ASU 2018-01 Leases (ASC 842): Land Easement Practical Expedient for Transition to Topic 842. We initially applied the standard at the beginning of the period of adoption through the transition method issued by ASU 2018-11 and have presented comparative periods under ASC 840 Leases . Due to the effects of applying ASC 842, the Company recognized a $2.9 million cumulative-effect adjustment to its accumulated deficit to adjust r eserves on receivables from straight-line rents . The new standard requires lessees to apply a two-model approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use ("ROU") asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The Company has elected the short-term lease recognition exemption, and therefore, leases with a term of 12 months or less are not recognized on the balance sheet. The new standard requires lessors to account for leases using an approach that is substantially equivalent to guidance for sales-type leases, direct financing leases and operating leases under ASC 840. For purposes of transition, we did not elect the hindsight practical expedient but did elect the land easement practical expedient to not reassess whether existing land easements contain leases and the practical expedient package, which has been applied consistently to all of our leases. As a result of electing the practical expedient package, we did not (i) reassess whether any expired or existing contracts are or contain leases, (ii) reassess the lease classification for any expired or existing leases or (iii) reassess initial direct costs for any existing leases. From a lessee perspective, the initial adoption on January 1, 2019 resulted in the recognition of operating lease ROU assets and lease liabilities for 24 operating leases with an aggregate balance of $98.5 million and $93.6 million , respectively. On January 1, 2019, we also reclassified $11.9 million of acquired below-market lease intangibles and $7.1 million of accrued rent and adjusted the carrying values of our ROU assets by the corresponding amounts. If a finance lease is commenced in the future, a finance lease ROU asset and finance lease liability will be recognized on the balance sheet. The Company will recognize amortization of the finance lease ROU asset and interest expense on the lease liability. As of March 31, 2019 , our operating lease ROU assets and lease liabilities were $96.5 million and $91.9 million , respectively, as presented on our consolidated balance sheet. The standard's adoption has also impacted the presentation of our consolidated income statement beginning with the period ending March 31, 2019, due to accounting for the lease and non-lease components as a single lease component for all classes of underlying assets, presented as lease expense on the consolidated statement of income. Prior to the adoption of ASC 842, related lease and non-lease expense amounts were recognized within lease expense, real estate taxes, property operating expenses and general administrative expenses on the consolidated statement of income. From a lessor perspective, the adoption resulted in additional general and administrative expenses, attributable to internal leasing department costs not meeting the definition of initial direct costs under ASC 842. Capitalized internal leasing costs were $0.5 million for the three months ended March 31, 2018 . The standard's adoption has also impacted the presentation of our consolidated income statement due to accounting for lease and non-lease components as a single lease component, presented as rental revenue on the consolidated statement of income, however there has been no change in the timing of revenue recognition since adoption. Additionally, under the amendments issued in ASU 2018-20, the Company has accounted for common area maintenance expenses paid directly by tenants to third-parties as variable rental revenue and has reported the corresponding expense within property operating expenses, however real estate taxes and insurance expenses paid directly by tenants have not been accounted for by the Company. The adoption of this standard has also resulted in additional quantitative and qualitative footnote disclosures beginning with this Quarterly Report on Form 10-Q for the period ending March 31, 2019 (refer to Note 8 Leases). ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses will become effective for the fiscal period beginning January 1, 2020. ASU 2016-13 introduces a new model for estimating credit losses for certain types of financial instruments and also modifies the impairment model with new methodology for estimating credits losses. In November 2018, the FASB issued ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which included amendments to clarify receivables arising from operating leases are within the scope ASC 842. Due to the adoption of ASC 842, the Company includes credit losses related to operating lease receivables as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income . The Company is currently evaluating the impact of this new standard. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions During the three months ended March 31, 2019 , no acquisitions were completed by the Company. As of March 31, 2019 , we were under contract to purchase an office building in Maywood, NJ, adjacent to our existing property, Bergen Town Center. The building is subject to a ground lease, which the Company will acquire the lessee position of for a purchase price of $7.1 million . The transaction is scheduled to close by the end of 2019. Dispositions On March 15, 2019 , we completed the sale of our property in Chicopee, MA for $18.2 million , net of selling costs, resulting in a $17.0 million gain on sale of real estate recognized during the three months ended March 31, 2019 . Subsequent to March 31, 2019 , the Company executed a contract to sell its property in Glen Burnie, MD for $16.2 million . The sale is anticipated to close by the end of the second quarter of 2019. |
IDENTIFIED INTANGIBLE ASSETS AN
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES | IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES Our identified intangible assets (acquired in-place and above-market leases) and liabilities (acquired below-market leases), net of accumulated amortization were $54.0 million and $141.5 million as of March 31, 2019 , respectively, and $68.4 million and $144.3 million as of December 31, 2018 , respectively. Amortization of acquired below-market leases, net of acquired above-market leases resulted in additional rental income of $2.4 million and $2.6 million for the three months ended March 31, 2019 and 2018 , respectively. Amortization of acquired in-place leases and customer relationships resulted in additional depreciation and amortization expense of $2.1 million and $2.8 million for the three months ended March 31, 2019 and 2018 , respectively. The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2019 and the five succeeding years: (Amounts in thousands) Below-Market Above-Market Year Operating Lease Amortization Operating Lease Amortization In-Place Leases 2019 (1) $ 7,442 $ (917 ) $ 5,420 2020 9,810 (1,014 ) 6,177 2021 9,672 (807 ) 4,965 2022 9,596 (433 ) 4,032 2023 9,548 (327 ) 3,702 2024 9,301 (266 ) 3,264 (1) Remainder of 2019. |
MORTGAGES PAYABLE
MORTGAGES PAYABLE | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
MORTGAGES PAYABLE | MORTGAGES PAYABLE The following is a summary of mortgages payable as of March 31, 2019 and December 31, 2018 . Interest Rate at March 31, December 31, (Amounts in thousands) Maturity March 31, 2019 2019 2018 First mortgages secured by: Variable rate Cherry Hill (Plaza at Cherry Hill) (1) 5/24/2022 4.09% $ 28,930 $ 28,930 Westfield (One Lincoln Plaza) (1) 5/24/2022 4.09% 4,730 4,730 Woodbridge (Plaza at Woodbridge) (1) 5/25/2022 4.09% 55,340 55,340 Jersey City (Hudson Commons) (2) 11/15/2024 4.39% 29,000 29,000 Watchung (2) 11/15/2024 4.39% 27,000 27,000 Bronx (1750-1780 Gun Hill Road) (2) 12/1/2024 4.39% 24,500 24,500 Total variable rate debt 169,500 169,500 Fixed rate Montehiedra (senior loan) 7/6/2021 5.33% 84,476 84,860 Montehiedra (junior loan) 7/6/2021 3.00% 30,000 30,000 Bergen Town Center - West, Paramus 4/8/2023 3.56% 300,000 300,000 Bronx (Shops at Bruckner) 5/1/2023 3.90% 11,432 11,582 Jersey City (Hudson Mall) (4) 12/1/2023 5.07% 24,149 24,326 Yonkers Gateway Center (5) 4/6/2024 4.16% 31,310 31,704 Las Catalinas 8/6/2024 4.43% 130,000 130,000 Brick 12/10/2024 3.87% 50,000 50,000 North Plainfield 12/10/2025 3.99% 25,100 25,100 Middletown 12/1/2026 3.78% 31,400 31,400 Rockaway 12/1/2026 3.78% 27,800 27,800 East Hanover (200 - 240 Route 10 West) 12/10/2026 4.03% 63,000 63,000 North Bergen (Tonnelle Ave) 4/1/2027 4.18% 100,000 100,000 Manchester 6/1/2027 4.32% 12,500 12,500 Millburn 6/1/2027 3.97% 24,000 24,000 Totowa 12/1/2027 4.33% 50,800 50,800 Woodbridge (Woodbridge Commons) 12/1/2027 4.36% 22,100 22,100 East Brunswick 12/6/2027 4.38% 63,000 63,000 East Rutherford 1/6/2028 4.49% 23,000 23,000 Hackensack 3/1/2028 4.36% 66,400 66,400 Marlton 12/1/2028 3.86% 37,400 37,400 East Hanover Warehouses 12/1/2028 4.09% 40,700 40,700 Union (2445 Springfield Ave) 12/10/2028 4.01% 45,600 45,600 Freeport (Freeport Commons) 12/10/2029 4.07% 43,100 43,100 Garfield 12/1/2030 4.14% 40,300 40,300 Mt Kisco (3) 11/15/2034 6.40% 13,865 13,987 Total fixed rate debt 1,391,432 1,392,659 Total mortgages payable 1,560,932 1,562,159 Unamortized debt issuance costs (11,453 ) (11,917 ) Total mortgages payable, net of unamortized debt issuance costs $ 1,549,479 $ 1,550,242 (1) Bears interest at one month LIBOR plus 160 bps. (2) Bears interest at one month LIBOR plus 190 bps. (3) The mortgage payable balance on the loan secured by Mt Kisco includes $1.0 million of unamortized debt discount as of both March 31, 2019 and December 31, 2018 , respectively. The effective interest rate including amortization of the debt discount is 7.27% as of March 31, 2019 . (4) The mortgage payable balance on the loan secured by Hudson Mall includes $1.2 million of unamortized debt premium as of both March 31, 2019 and December 31, 2018 , respectively. The effective interest rate including amortization of the debt premium is 3.78% as of March 31, 2019 . (5) The mortgage payable balance on the loan secured by Yonkers Gateway Center includes $0.7 million of unamortized debt premium as of both March 31, 2019 and December 31, 2018 , respectively. The effective interest rate including amortization of the debt premium is 3.67% as of March 31, 2019 . The net carrying amount of real estate collateralizing the above indebtedness amounted to approximately $1.3 billion as of March 31, 2019 . Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and in certain circumstances require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. As of March 31, 2019 , we were in compliance with all debt covenants. During 2017, our property in Englewood, NJ was transferred to a receiver. On January 31, 2018 , our property in Englewood, NJ was sold at a foreclosure sale and on February 23, 2018 , the court order was received approving the sale and discharging the receiver of all assets and liabilities related to the property. We recognized a gain on extinguishment of debt of $2.5 million as a result of the forgiveness of outstanding mortgage debt of $11.5 million , which is included in gain on extinguishment of debt in the consolidated statement of income for the three months ended March 31, 2018 . As of March 31, 2019 , the principal repayments for the next five years and thereafter are as follows: (Amounts in thousands) Year Ending December 31, 2019 (1) $ 3,396 2020 7,567 2021 122,827 2022 100,896 2023 344,423 2024 274,370 Thereafter 707,453 (1) Remainder of 2019. On January 15, 2015, we entered into a $500 million Revolving Credit Agreement (the “Agreement”) with certain financial institutions. On March 7, 2017 , we amended and extended the Agreement. The amendment increased the credit facility size by $100 million to $600 million and extended the maturity date to March 7, 2021 with two six -month extension options. Borrowings under the Agreement are subject to interest at LIBOR plus 1.10% to 1.55% and an annual facility fee of 15 to 35 basis points. Both the spread over LIBOR and the facility fee are based on our current leverage ratio and are subject to increase if our leverage ratio increases above predefined thresholds. The Agreement contains customary financial covenants including a maximum leverage ratio of 60% and a minimum fixed charge coverage ratio of 1.5x . No amounts have been drawn to date under the Agreement. Financing fees associated with the Agreement of $2.0 million and $2.2 million as of March 31, 2019 and December 31, 2018, respectively, are included in deferred financing fees, net in the consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the filing of its 2015 tax return for its tax year ended December 31, 2015. With exception to the Company’s taxable REIT subsidiary (“TRS”), to the extent the Company meets certain requirements under the Code, the Company will not be taxed on its federal taxable income. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income taxes at regular corporate rates (including any alternative minimum tax, which, for corporations, was repealed under the TCJA (defined below) for tax years beginning after December 31, 2017) and may not be able to qualify as a REIT for the four subsequent taxable years. In addition to its TRS, the Company is subject to certain foreign and state and local income taxes, including a 29% non-resident withholding tax on its two Puerto Rico malls, which are included in income tax expense in the consolidated statements of income. The Company is also subject to certain other taxes, including state and local franchise taxes which are included in general and administrative expenses in the consolidated statements of income. On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into law. The Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Effective January 1, 2018, for businesses, the Act reduces the corporate tax rate from a maximum of 35% to a flat 21% rate. Since UE has elected to qualify as a REIT under sections 856-860 of the Internal Revenue Code with intent to distribute 100% of its taxable income and did not have any activities in a Taxable REIT Subsidiary (“TRS”) prior to January 1, 2018, there was no impact to the Company’s financial statements. On December 31, 2017, the Company elected, for tax purposes, to treat the wholly-owned limited partnership that held its Allentown property as a taxable REIT subsidiary (“TRS”). A TRS is a corporation, other than a REIT, in which we directly or indirectly hold stock, which has made a joint election with us to be treated as a TRS under Section 856(l) of the Code. A TRS is required to pay regular U.S. federal income tax, and state and local income tax where applicable, as a non-REIT “C” corporation. The Allentown legal entity restructuring resulted in a capital gain recognized for tax purposes in 2017 and a step up in tax basis to the Allentown property resulting in no capital gains recognized for tax purposes in 2018 upon the property’s sale on April 26, 2018 . The Company’s consolidated financial statements for the three months ended March 31, 2018 reflect the TRS’ federal and state corporate income taxes associated with the operating activities at the TRS. The tax expense recorded in association with the operating activities of the TRS was $0.2 million for the three months ended March 31, 2018 . As of December 31, 2018, the Allentown TRS has been dissolved and as such, the Company’s consolidated financial statements for the three months ended March 31, 2019 do not reflect any corporate income taxes associated with such TRS. Our two Puerto Rico malls are subject to a 29% non-resident withholding tax which is included in income tax expense in the consolidated statements of income. The Puerto Rico tax expense recorded was $0.2 million for the three months ended March 31, 2019 and 2018 , respectively. Both properties are held in a special partnership for Puerto Rico tax reporting (the general partner being a qualified REIT subsidiary or “QRS”). The REIT and the other minority members are partners in the Operating Partnership. As such, the partners are required to report their share of taxable income on their tax returns. We are also subject to certain other taxes, including state and local taxes and franchise taxes which are included in general and administrative expenses in the consolidated statements of income. |
LEASES (Notes)
LEASES (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Leases — We have approximately 1,200 operating leases at our retail shopping centers and malls, which generate rental income from tenants and operating cash flows for the Company. Our tenant leases are dependent on the Company, as lessor, agreeing to provide our tenants with the right to control the use of our real estate assets, as lessees. Our real estate assets are comprised of retail shopping centers and malls. Tenants agree to use and control their agreed upon space for their business purposes. Thus, our tenants obtain substantially all of the economic benefits from the use of our shopping center space and have the right to direct how and for what purpose the real estate space is used throughout the period of use. Given these contractual terms, the Company has determined that all tenant contracts of this nature contain a lease. The Company assesses lease classification for each new and modified lease. All new and modified leases commenced in the three months ended March 31, 2019 have been assessed and classified as operating leases. Contractual rent increases of renewal options are often fixed at the time of the initial lease agreement which may result in tenants being able to exercise their renewal options at amounts that are less than the fair value of the rent at the date of renewal. In addition to fixed base rents, certain rental income derived from our tenant leases is variable and may be dependent on percentage rent or the Consumer Price Index ("CPI"). Variable lease payments from percentage rents are earned by the Company in the event the tenant's gross sales exceed certain amounts. Terms of percentage rent are agreed upon in the tenant's lease and will vary based on the tenant's sales. Variable lease payments dependent on the CPI, will change in accordance with the corresponding increase or decrease in CPI if negotiated and agreed upon in the tenant's lease. Variable lease payments dependent on percentage rent and the CPI were $0.6 million for the three months ended March 31, 2019 . Variable lease payments also arise from tenant expense reimbursements, which provide for the recovery of all or a portion of the operating expenses, common area maintenance expenses, real estate taxes, insurance and capital improvements of the respective property and amounted to $28.3 million in the three months ended March 31, 2019 . The Company accounts for variable lease payments as "Rental revenue" on the consolidated statement of income in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. The Company also has 21 properties in its portfolio either completely or partially on land or a building that are owned by third parties. These properties are leased or subleased to us pursuant to ground or building leases, with remaining terms ranging from less than one year to over 80 years and provide us the right to operate each such property. We also lease or sublease real estate for our three corporate offices with remaining terms ranging from one to two years. ROU assets are recorded for these leases, which represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from these leases. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The initial measurement of a ROU asset may differ from the initial measurement of the lease liability due to initial direct costs, prepaid lease payments and lease incentives. As of March 31, 2019, no other contracts have been identified as leases . Our leases often offer renewal options, which we assess against relevant economic factors to determine whether the Company is reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods, for which the Company has determined are reasonably certain of being exercised, are included in the measurement of the corresponding lease liability and ROU asset. The discount rate applied to measure each ROU asset and lease liability is based on the incremental borrowing rate of the lease due to the rate implicit in the lease not being readily determinable. The Company initially considers the general economic environment and factors in various financing and asset specific secured borrowings so that the overall incremental borrowing rate is appropriate to the intended use of the lease. Certain expenses derived from these leases are variable and are not included in the measurement of the corresponding lease liability and ROU asset, but are recognized in the period in which the obligation for those payments is incurred. These variable lease payments consist of payments for real estate taxes and common area maintenance, which is dependent on projects and activities at each individual property under ground or building lease. Accounts Receivable and Changes in Collectibility Assessment — Accounts receivable includes unpaid amounts billed to tenants and accrued revenues for future billings to tenants for property expenses. We periodically evaluate the collectibility of amounts due from tenants, resulting from the inability of tenants to make required payments under the lease agreements. We recognize changes in the collectibility assessment of these operating leases as adjustments to rental revenue. We also assess changes in the collectibility of receivables arising from the straight-lining of rents and record these changes as adjustments to rental revenue. These receivables arise from earnings recognized in excess of amounts currently due under the lease agreements. Management exercises judgment in assessing collectibility and considers payment history and current credit status. Accounts receivable are written-off directly when they are deemed to be uncollectible. Leases as lessor We have approximately 1,200 operating leases at our retail shopping centers and malls, which generate rental income from tenants and operating cash flows for the Company. Our tenant base comprises a diverse group of merchants including department stores, supermarkets, discounters, entertainment offerings, health clubs, DIY stores, in-line specialty shops, restaurants and other food and beverage vendors and service providers. Tenant leases for under 10,000 sf generally have lease terms of five years or less. Tenant leases for 10,000 sf or more generally have lease terms of 10 to 25 years, and are considered anchor leases with one or more renewal options available upon expiration of the initial lease term. Contractual rent increases for the renewal options are often fixed at the time of the initial lease agreement which may result in tenants being able to exercise their renewal options at amounts that are less than the fair value of the rent at the date of renewal. The components of rental revenue for the three months ended March 31, 2019 were as follows: (Amounts in thousands) Three Months Ended March 31, 2019 Rental Revenue Fixed lease revenue $ 68,484 Variable lease revenue 28,824 Total rental revenue $ 97,308 Maturity analysis of lease payments as lessor The Company’s operating leases are disclosed in the aggregate due to their consistent nature as real estate leases. As of March 31, 2019, the undiscounted cash flows to be received from lease payments of our operating leases on an annual basis for the next five years and thereafter are as follows: (Amounts in thousands) Year Ending December 31, 2019 (1) $ 218,367 2020 246,431 2021 226,006 2022 206,988 2023 184,699 2024 152,018 Thereafter 895,260 Total undiscounted cash flows $ 2,129,769 (1) Remainder of 2019. As of December 31, 2018, future base rental revenue under non-cancelable operating leases, under ASC 840 as lessor, was as follows: (Amounts in thousands) Year Ending December 31, 2019 $ 256,598 2020 235,652 2021 216,247 2022 198,449 2023 176,282 Thereafter 986,865 These future minimum amounts do not include additional rents based on a percentage of tenants’ sales and tenant expense reimbursements. For the year ended December 31, 2018 , rental revenue from percentage rent was $2.0 million . For the year ended December 31, 2018 , rental revenue from tenant expense reimbursements was $108.7 million . Property. plant and equipment under operating leases as lessor As of March 31, 2019, substantially all of the Company’s real estate assets are subject to operating leases. Leases as lessee As of March 31, 2019, the Company had 21 properties in its portfolio either completely or partially on land or a building that was owned by third parties. These properties are leased or subleased to us pursuant to ground or building leases, with remaining terms ranging from less than one year to over 80 years and provide us the right to operate the property. We also lease or sublease real estate for our three corporate offices with remaining terms ranging from one to two years. The components of lease expense for the three months ended March 31, 2019 were as follows: (Amounts in thousands) Three Months Ended March 31, 2019 Lease expense Operating lease cost (1) $ 2,981 Variable lease cost 674 Total lease expense $ 3,655 (1) The Company is an intermediate lessor and recognized sublease income of $5.1 million included within rental revenue on the consolidated statement of income in relation to certain ground and building lease arrangements. Operating lease cost includes amortization of below-market ground lease intangibles and straight-line lease expense. Supplemental balance sheet information related to leases was as follows: March 31, 2019 Supplemental noncash information Weighted-average remaining lease term - operating leases 15.9 years Weighted-average discount rates - operating leases 4.01 % Maturity analysis of lease payments as lessee The undiscounted cash flows to be paid on an annual basis for the next five years and thereafter are presented in the table below. The total amount of lease payments, on an undiscounted basis, are reconciled to the lease liability on the consolidated balance sheet by considering the present value discount. (Amounts in thousands) Year Ending December 31, 2019 (1) $ 8,040 2020 9,708 2021 9,051 2022 9,077 2023 8,875 2024 8,881 Thereafter 76,856 Total undiscounted cash flows 130,488 Present value discount (38,582 ) Discounted cash flows $ 91,906 (1) Remainder of 2019. As of December 31, 2018, future lease payments under operating lease agreements, including extension options if reasonably assured of being exercised, under ASC 840 as lessee, were as follows: (Amounts in thousands) Year Ending December 31, 2019 $ 10,640 2020 9,614 2021 8,957 2022 8,982 2023 8,850 Thereafter 85,535 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial Assets and Liabilities Measured at Fair Value on a Recurring or Non-Recurring Basis There were no financial assets or liabilities measured at fair value on a recurring or non-recurring basis as of March 31, 2019 and December 31, 2018 . Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on the consolidated balance sheets include cash and cash equivalents and mortgages payable. Cash and cash equivalents are carried at cost, which approximates fair value. The fair value of mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist. The fair value of cash and cash equivalents is classified as Level 1 and the fair value of mortgages payable is classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments as of March 31, 2019 and December 31, 2018 . As of March 31, 2019 As of December 31, 2018 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 416,668 $ 416,668 $ 440,430 $ 440,430 Liabilities: Mortgages payable (1) $ 1,560,932 $ 1,565,563 $ 1,562,159 $ 1,543,963 (1) Carrying amounts exclude unamortized debt issuance costs of $11.5 million and $11.9 million as of March 31, 2019 and December 31, 2018 , respectively. The following market spreads were used by the Company to estimate the fair value of mortgages payable: March 31, 2019 December 31, 2018 Low High Low High Mortgages payable 1.7% 1.9% 1.7% 1.9% Nonfinancial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We assess the carrying value of our properties for impairment, when events or changes in circumstances indicate that the carrying value may not be recoverable. During the three months ended March 31, 2019 , we recognized a $4.0 million impairment charge on our property in Westfield, NJ as a result of the loss of a significant tenant at the property. The valuation of our property in Westfield, NJ was based on comparable property transactions in the property’s surrounding area. The Company believes the inputs utilized to measure the fair value was reasonable in the context of applicable market conditions, however due to the significance of the unobservable inputs in the overall fair value measures, including market conditions and expectations for growth, the Company determined that such fair value measurement is classified as Level 3. The impairment charge is included as an expense under casualty and impairment loss (gain), net on our consolidated statement of income for the three months ended March 31, 2019 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES There are various legal actions against us in the ordinary course of business. After consultation with legal counsel, the outcome of such matters will not have a material adverse effect on our financial condition, results of operations or cash flows. Redevelopment As of March 31, 2019 , we had approximately $121.2 million of active development, redevelopment and anchor repositioning projects underway, of which $34.8 million remains to be funded. Based on current plans and estimates, we anticipate the remaining amounts will be expended over the next two years. Insurance The Company maintains (i) general liability insurance with limits of $200 million for properties in the U.S. and Puerto Rico and (ii) all-risk property insurance with limits of $500 million per occurrence and in the aggregate for properties in the U.S. and $139 million for properties in Puerto Rico, subject to the terms, conditions, exclusions, deductibles and sub-limits when applicable for certain perils such as floods and earthquakes and (iii) numerous other insurance policies including trustees’ and officers’ insurance, workers’ compensation and automobile-related liabilities insurance. The Company’s insurance includes coverage for acts of terrorism but excludes coverage for nuclear, biological, chemical or radiological terrorism events as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020. In addition, the Company maintains coverage for certain cybersecurity losses with limits of $5 million per occurrence and in the aggregate providing first and third-party coverage including network interruption, event management, cyber extortion and claims for media content, security and privacy liability. Insurance premiums are typically charged directly to each of the retail properties and warehouses but not all of the cost of such premiums are recovered. The Company is responsible for deductibles, losses in excess of insurance coverage, and the portion of premiums not reimbursable by tenants at our properties, which could be material. We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future and expect premiums across most property coverage lines to increase in light of recent events. The incurrence of uninsured losses, costs or uncovered premiums could materially and adversely affect our business, results of operations and financial condition. Certain of our loans and other agreements contain customary covenants requiring the maintenance of insurance coverage. Although we believe that we currently have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. If lenders or other counterparties insist on greater coverage than we are able to obtain, such requirement could materially and adversely affect our ability to finance our properties and expand our portfolio. Hurricane-Related Charges On September 20, 2017, Hurricane Maria made landfall, damaging our two properties in Puerto Rico. During the three months ended March 31, 2018 , the Company received $1.5 million in casualty insurance proceeds, which were partially offset by $0.2 million of hurricane related costs, resulting in net casualty gains of $1.3 million included in casualty and impairment loss (gain), net on the accompanying consolidated statements of income. During the three months ended March 31, 2018 , the Company recognized $0.8 million of business interruption losses. Losses of $0.6 million pertained to rent abatements due to tenants that had not reopened since the hurricane, recorded as a reduction of rental revenue and $0.2 million was recorded as a provision for doubtful accounts, within property operating expenses, for unpaid rents. The Company is in active dialogue with its carrier regarding the insurance claim related to Hurricane Maria, which is still open, and no determination has been made as to the amount or timing of additional insurance proceeds, if any, that may be received. Environmental Matters Each of our properties has been subjected to varying degrees of environmental assessment at various times. Based on these assessments, we have accrued costs of $1.7 million on our consolidated balance sheets as of March 31, 2019 and December 31, 2018 , respectively, for remediation costs for environmental contamination at certain properties. While this accrual reflects our best estimates of the potential costs of remediation at these properties, there can be no assurance that the actual costs will not exceed these amounts. During the three months ended March 31, 2018 , the Company recognized $0.3 million of environmental remediation costs within property operating expenses on the consolidated statements of income. Although we are not aware of any other material environmental contamination, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us. Bankruptcies Although our rental revenue is supported by long-term leases, leases may be rejected in a bankruptcy proceeding and the related tenant stores may permanently vacate prior to lease expiration. In the event a tenant with a significant number of leases in our shopping centers files for bankruptcy and rejects its leases with us, we could experience a reduction in our revenues. We monitor the operating performance and rent collections of all tenants in our shopping centers, especially those tenants in arrears or operating retail formats that are experiencing significant changes in competition, business practice, or store closings in other locations. Sears Holdings Corporation (“Sears”) filed for Chapter 11 bankruptcy protection on October 15, 2018. The Company has four Kmart leases with Sears comprising approximately 547,000 sf, which generate $8.5 million in annual rental revenue. In January 2019, Sears announced the acquisition of its assets by ESL Investments (“ESL”) for approximately $5.2 billion . Kmart closed its stores at Las Catalinas in Puerto Rico and in Huntington, NY at the end of January 2019; however, property rents have been paid on all four Kmart locations through April 2019. As of April 30, 2019, our Kmart lease at Las Catalinas was rejected. It is not clear whether ESL will attempt to assume or reject the remaining leases. The Company is monitoring the proceedings and considering its alternatives. |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | PREPAID EXPENSES AND OTHER ASSETS The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets: Balance at (Amounts in thousands) March 31, 2019 December 31, 2018 Other assets $ 2,914 $ 2,765 Prepaid expenses: Real estate taxes 5,168 6,911 Insurance 3,787 2,509 Licenses/fees 985 783 Total Prepaid expenses and other assets $ 12,854 $ 12,968 |
ACCOUNTS PAYABLE, ACCRUED EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES The following is a summary of the composition of accounts payable, accrued expenses other liabilities in the consolidated balance sheets: Balance at (Amounts in thousands) March 31, 2019 December 31, 2018 Deferred tenant revenue $ 28,384 $ 28,697 Accrued capital expenditures and leasing costs 22,943 29,754 Accrued interest payable 9,292 8,950 Deferred tax liability, net 4,685 5,532 Security deposits 5,458 5,396 Accrued payroll expenses 2,453 5,747 Other liabilities and accrued expenses 12,209 7,371 Accrued rent (1) — 7,070 Total accounts payable, accrued expenses and other liabilities $ 85,424 $ 98,517 (1) In connection with the adoption of ASC 842 on January 1, 2019, we reclassified $7.1 million of accrued rent and adjusted the carrying values of our ROU assets by the corresponding amount. |
INTEREST AND DEBT EXPENSE
INTEREST AND DEBT EXPENSE | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
INTEREST AND DEBT EXPENSE | 13. INTEREST AND DEBT EXPENSE The following table sets forth the details of interest and debt expense in the consolidated statements of income: Three Months Ended March 31, (Amounts in thousands) 2019 2018 Interest expense $ 15,816 $ 14,922 Amortization of deferred financing costs 720 722 Total Interest and debt expense $ 16,536 $ 15,644 |
EQUITY AND NONCONTROLLING INTER
EQUITY AND NONCONTROLLING INTEREST | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
EQUITY AND NONCONTROLLING INTEREST | EQUITY AND NONCONTROLLING INTEREST At-The-Market Program In 2016, the Company established an at-the-market (“ATM”) equity program, pursuant to which the Company may offer and sell from time to time its common shares, par value $0.01 per share, with an aggregate gross sales price of up to $250.0 million through a consortium of broker dealers acting as sales agents. As of March 31, 2019 , $241.3 million of common shares remained available for issuance under this ATM equity program and there were no common shares issued under the ATM equity program during the three months ended March 31, 2019 and 2018 , respectively. Actual future sales will depend on a variety of factors including, but not limited to, market conditions, the trading price of our common shares and our capital needs. We have no obligation to sell the remaining shares available under the active ATM equity program. Dividends and Distributions During the three months ended March 31, 2019 and 2018 , respectively, the Company declared dividends on our common shares and OP unit distributions of $0.22 per share/unit. Noncontrolling Interests in Operating Partnership Redeemable noncontrolling interests reflected on the consolidated balance sheets of the Company are comprised of OP units and limited partnership interests in the Operating Partnership in the form of LTIP unit awards. In connection with the separation from Vornado Realty L.P. (“VRLP”), the Company issued 5.7 million OP units, which represented a 5.4% interest in the Operating Partnership, to VRLP in exchange for interests in VRLP properties contributed by VRLP. On February 28, 2019, the Company issued 5.7 million common shares to VLRP, in exchange for an equal number of LTIP units after receiving a notice of redemption from VLRP. The issuance is exempt from registration in reliance upon Section 4(a)(2) of the Securities Act of 1933, as amended, on the basis that no public offering was made. LTIP unit awards were granted to certain executives pursuant to our 2015 Omnibus Share Plan (the “Omnibus Share Plan”) and our 2018 Inducement Equity Plan (the “Inducement Plan”). OP units were issued to contributors in exchange for their property interests in connection with the Company’s property acquisitions in 2017. The total of the OP units and LTIP units represent an 8.4% weighted-average interest in the Operating Partnership for the three months ended March 31, 2019 . Holders of outstanding vested LTIP units may, from and after two years from the date of issuance, redeem their LTIP units for cash, or for the Company’s common shares on a one -for-one basis, solely at our election. Holders of outstanding OP units may, at a determinable date, redeem their units for cash or the Company’s common shares on a one -for-one basis, solely at our election. Noncontrolling Interest in Consolidated Subsidiaries The noncontrolling interest relates to the 5% interest held by others in our property in Walnut Creek, CA (Mount Diablo). The net income attributable to noncontrolling interest is presented separately in our consolidated statements of income. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-Based Compensation Expense Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows: Three Months Ended March 31, (Amounts in thousands) 2019 2018 Share-based compensation expense components: Restricted share expense $ 751 $ 587 Stock option expense 1,071 585 LTIP expense 1,208 166 Outperformance Plan (“OPP”) expense 564 682 Deferred share unit (“DSU”) expense 70 — Total Share-based compensation expense $ 3,664 $ 2,020 Equity award activity during the three months ended March 31, 2019 included: (i) 180,213 stock options granted, (ii) 22,186 restricted shares granted, (iii) 135,532 LTIP units granted, (iv) 661,551 stock options vested, (v) 88,813 restricted shares vested, and (vi) 31,617 LTIP units vested. Subsequent to March 31, 2019 , the Compensation Committee of the Board of Trustees of the Company approved the Company’s 2019 Long-Term Incentive Plan (“2019 LTI Plan”). The Plan is a multi-year, equity compensation program under which participants, including our Chairman and Chief Executive Officer, have the opportunity to earn awards in the form of LTIP units that vest based on the passage of time (1/3rd of the program) and performance goals tied to our relative and absolute total shareholder return (“TSR”) during the three -year performance period following their grant (2/3rds of the program). The fair value of the performance-based award portion of the 2019 LTI Plan on the date of grant was $4.3 million . |
EARNINGS PER SHARE AND UNIT
EARNINGS PER SHARE AND UNIT | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE AND UNIT | EARNINGS PER SHARE AND UNIT Urban Edge Earnings per Share We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of Urban Edge common shares and participating securities is calculated according to dividends declared and participating rights in undistributed earnings. Restricted shares issued pursuant to our share-based compensation program are considered participating securities, and as such have non-forfeitable rights to receive dividends. The following table sets forth the computation of our basic and diluted earnings per share: Three Months Ended March 31, (Amounts in thousands, except per share amounts) 2019 2018 Numerator: Net income attributable to common shareholders $ 25,537 $ 20,700 Less: Earnings allocated to unvested participating securities (23 ) (48 ) Net income available for common shareholders - basic $ 25,514 $ 20,652 Impact of assumed conversions: OP and LTIP units 2,245 — Net income available for common shareholders - dilutive $ 27,759 $ 20,652 Denominator: Weighted average common shares outstanding - basic 116,274 113,677 Effect of dilutive securities (1) : Stock options using the treasury stock method — — Restricted share awards 114 187 Assumed conversion of OP and LTIP units 10,116 — Weighted average common shares outstanding - diluted 126,504 113,864 Earnings per share available to common shareholders: Earnings per common share - Basic $ 0.22 $ 0.18 Earnings per common share - Diluted $ 0.22 $ 0.18 (1) For the quarter ended March 31, 2018 , the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for this period. Operating Partnership Earnings per Unit The following table sets forth the computation of basic and diluted earnings per unit: Three Months Ended March 31, (Amounts in thousands, except per unit amounts) 2019 2018 Numerator: Net income attributable to unitholders $ 27,892 $ 23,028 Less: net income attributable to participating securities (25 ) (48 ) Net income available for unitholders $ 27,867 $ 22,980 Denominator: Weighted average units outstanding - basic 126,391 126,123 Effect of dilutive securities issued by Urban Edge 114 187 Unvested LTIP units — 272 Weighted average units outstanding - diluted 126,505 126,582 Earnings per unit available to unitholders: Earnings per unit - Basic $ 0.22 $ 0.18 Earnings per unit - Diluted $ 0.22 $ 0.18 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions of Form 10-Q. Certain information and footnote disclosures included in our annual financial statements have been condensed or omitted. In the opinion of management, the consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position of the Company and the Operating Partnership and the results of operations and cash flows for the interim periods presented. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . Accordingly, these consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the Securities Exchange Commission (“SEC”). |
Consolidation and Noncontrolling Interests | The consolidated balance sheets as of March 31, 2019 and December 31, 2018 reflect the consolidation of wholly-owned subsidiaries and those entities in which we have a controlling financial interest. The consolidated statements of income for the three months ended March 31, 2019 and 2018 include the consolidated accounts of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation. In accordance with ASC 205 Presentation of Financial Statements, the Company reclassified Property rentals and Tenant reimbursement income to Rental revenue on its consolidated statements of income for the three months ended March 31, 2019 and 2018, respectively, as reflected in our Form 10-K. Additionally, the Company includes credit losses related to operating lease receivables as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income for the quarter ended March 31, 2019 due to the adoption of (“ASU 2016-02”) ASC 842 Leases. P rovision for doubtful accounts are included in "Property operating expenses" for the quarter ended March 31, 2018. |
Recently Issued Accounting Literature | Recently Issued Accounting Literature — Effective for the fiscal period beginning January 1, 2019, we adopted (“ASU 2016-02”) ASC 842 Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). In connection with the adoption of ASU 2016-02, we also adopted (i) ASU 2019-01 Leases (ASC 842): Codification Improvements , (ii) ASU 2018-20 Leases (ASC 842): Narrow-Scope Improvements for Lessors , (iii) ASU 2018-11 Leases (ASC 842): Targeted Improvements , (iv) ASU 2018-10 Codification Improvements to ASC 842, Leases and (v) ASU 2018-01 Leases (ASC 842): Land Easement Practical Expedient for Transition to Topic 842. We initially applied the standard at the beginning of the period of adoption through the transition method issued by ASU 2018-11 and have presented comparative periods under ASC 840 Leases . Due to the effects of applying ASC 842, the Company recognized a $2.9 million cumulative-effect adjustment to its accumulated deficit to adjust r eserves on receivables from straight-line rents . The new standard requires lessees to apply a two-model approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use ("ROU") asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The Company has elected the short-term lease recognition exemption, and therefore, leases with a term of 12 months or less are not recognized on the balance sheet. The new standard requires lessors to account for leases using an approach that is substantially equivalent to guidance for sales-type leases, direct financing leases and operating leases under ASC 840. For purposes of transition, we did not elect the hindsight practical expedient but did elect the land easement practical expedient to not reassess whether existing land easements contain leases and the practical expedient package, which has been applied consistently to all of our leases. As a result of electing the practical expedient package, we did not (i) reassess whether any expired or existing contracts are or contain leases, (ii) reassess the lease classification for any expired or existing leases or (iii) reassess initial direct costs for any existing leases. From a lessee perspective, the initial adoption on January 1, 2019 resulted in the recognition of operating lease ROU assets and lease liabilities for 24 operating leases with an aggregate balance of $98.5 million and $93.6 million , respectively. On January 1, 2019, we also reclassified $11.9 million of acquired below-market lease intangibles and $7.1 million of accrued rent and adjusted the carrying values of our ROU assets by the corresponding amounts. If a finance lease is commenced in the future, a finance lease ROU asset and finance lease liability will be recognized on the balance sheet. The Company will recognize amortization of the finance lease ROU asset and interest expense on the lease liability. As of March 31, 2019 , our operating lease ROU assets and lease liabilities were $96.5 million and $91.9 million , respectively, as presented on our consolidated balance sheet. The standard's adoption has also impacted the presentation of our consolidated income statement beginning with the period ending March 31, 2019, due to accounting for the lease and non-lease components as a single lease component for all classes of underlying assets, presented as lease expense on the consolidated statement of income. Prior to the adoption of ASC 842, related lease and non-lease expense amounts were recognized within lease expense, real estate taxes, property operating expenses and general administrative expenses on the consolidated statement of income. From a lessor perspective, the adoption resulted in additional general and administrative expenses, attributable to internal leasing department costs not meeting the definition of initial direct costs under ASC 842. Capitalized internal leasing costs were $0.5 million for the three months ended March 31, 2018 . The standard's adoption has also impacted the presentation of our consolidated income statement due to accounting for lease and non-lease components as a single lease component, presented as rental revenue on the consolidated statement of income, however there has been no change in the timing of revenue recognition since adoption. Additionally, under the amendments issued in ASU 2018-20, the Company has accounted for common area maintenance expenses paid directly by tenants to third-parties as variable rental revenue and has reported the corresponding expense within property operating expenses, however real estate taxes and insurance expenses paid directly by tenants have not been accounted for by the Company. The adoption of this standard has also resulted in additional quantitative and qualitative footnote disclosures beginning with this Quarterly Report on Form 10-Q for the period ending March 31, 2019 (refer to Note 8 Leases). ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses will become effective for the fiscal period beginning January 1, 2020. ASU 2016-13 introduces a new model for estimating credit losses for certain types of financial instruments and also modifies the impairment model with new methodology for estimating credits losses. In November 2018, the FASB issued ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which included amendments to clarify receivables arising from operating leases are within the scope ASC 842. Due to the adoption of ASC 842, the Company includes credit losses related to operating lease receivables as a reduction to rental revenue in "Rental revenue" in the consolidated statements of income . The Company is currently evaluating the impact of this new standard. Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company or the Operating Partnership, or they are not expected to have a material impact on our consolidated financial statements. |
Accounts Receivable and Changes in Collectibility Assessment |
IDENTIFIED INTANGIBLE ASSETS _2
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Estimated Annual Amortization Expense | The following table sets forth the estimated annual amortization income and expense related to intangible assets and liabilities for the remainder of 2019 and the five succeeding years: (Amounts in thousands) Below-Market Above-Market Year Operating Lease Amortization Operating Lease Amortization In-Place Leases 2019 (1) $ 7,442 $ (917 ) $ 5,420 2020 9,810 (1,014 ) 6,177 2021 9,672 (807 ) 4,965 2022 9,596 (433 ) 4,032 2023 9,548 (327 ) 3,702 2024 9,301 (266 ) 3,264 (1) Remainder of 2019. |
MORTGAGES PAYABLE (Tables)
MORTGAGES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages Payable | The following is a summary of mortgages payable as of March 31, 2019 and December 31, 2018 . Interest Rate at March 31, December 31, (Amounts in thousands) Maturity March 31, 2019 2019 2018 First mortgages secured by: Variable rate Cherry Hill (Plaza at Cherry Hill) (1) 5/24/2022 4.09% $ 28,930 $ 28,930 Westfield (One Lincoln Plaza) (1) 5/24/2022 4.09% 4,730 4,730 Woodbridge (Plaza at Woodbridge) (1) 5/25/2022 4.09% 55,340 55,340 Jersey City (Hudson Commons) (2) 11/15/2024 4.39% 29,000 29,000 Watchung (2) 11/15/2024 4.39% 27,000 27,000 Bronx (1750-1780 Gun Hill Road) (2) 12/1/2024 4.39% 24,500 24,500 Total variable rate debt 169,500 169,500 Fixed rate Montehiedra (senior loan) 7/6/2021 5.33% 84,476 84,860 Montehiedra (junior loan) 7/6/2021 3.00% 30,000 30,000 Bergen Town Center - West, Paramus 4/8/2023 3.56% 300,000 300,000 Bronx (Shops at Bruckner) 5/1/2023 3.90% 11,432 11,582 Jersey City (Hudson Mall) (4) 12/1/2023 5.07% 24,149 24,326 Yonkers Gateway Center (5) 4/6/2024 4.16% 31,310 31,704 Las Catalinas 8/6/2024 4.43% 130,000 130,000 Brick 12/10/2024 3.87% 50,000 50,000 North Plainfield 12/10/2025 3.99% 25,100 25,100 Middletown 12/1/2026 3.78% 31,400 31,400 Rockaway 12/1/2026 3.78% 27,800 27,800 East Hanover (200 - 240 Route 10 West) 12/10/2026 4.03% 63,000 63,000 North Bergen (Tonnelle Ave) 4/1/2027 4.18% 100,000 100,000 Manchester 6/1/2027 4.32% 12,500 12,500 Millburn 6/1/2027 3.97% 24,000 24,000 Totowa 12/1/2027 4.33% 50,800 50,800 Woodbridge (Woodbridge Commons) 12/1/2027 4.36% 22,100 22,100 East Brunswick 12/6/2027 4.38% 63,000 63,000 East Rutherford 1/6/2028 4.49% 23,000 23,000 Hackensack 3/1/2028 4.36% 66,400 66,400 Marlton 12/1/2028 3.86% 37,400 37,400 East Hanover Warehouses 12/1/2028 4.09% 40,700 40,700 Union (2445 Springfield Ave) 12/10/2028 4.01% 45,600 45,600 Freeport (Freeport Commons) 12/10/2029 4.07% 43,100 43,100 Garfield 12/1/2030 4.14% 40,300 40,300 Mt Kisco (3) 11/15/2034 6.40% 13,865 13,987 Total fixed rate debt 1,391,432 1,392,659 Total mortgages payable 1,560,932 1,562,159 Unamortized debt issuance costs (11,453 ) (11,917 ) Total mortgages payable, net of unamortized debt issuance costs $ 1,549,479 $ 1,550,242 (1) Bears interest at one month LIBOR plus 160 bps. (2) Bears interest at one month LIBOR plus 190 bps. (3) The mortgage payable balance on the loan secured by Mt Kisco includes $1.0 million of unamortized debt discount as of both March 31, 2019 and December 31, 2018 , respectively. The effective interest rate including amortization of the debt discount is 7.27% as of March 31, 2019 . (4) The mortgage payable balance on the loan secured by Hudson Mall includes $1.2 million of unamortized debt premium as of both March 31, 2019 and December 31, 2018 , respectively. The effective interest rate including amortization of the debt premium is 3.78% as of March 31, 2019 . (5) The mortgage payable balance on the loan secured by Yonkers Gateway Center includes $0.7 million of unamortized debt premium as of both March 31, 2019 and December 31, 2018 , respectively. The effective interest rate including amortization of the debt premium is 3.67% as of March 31, 2019 . |
Schedule of Principal Repayments | As of March 31, 2019 , the principal repayments for the next five years and thereafter are as follows: (Amounts in thousands) Year Ending December 31, 2019 (1) $ 3,396 2020 7,567 2021 122,827 2022 100,896 2023 344,423 2024 274,370 Thereafter 707,453 (1) Remainder of 2019. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Components of Rental Revenue | The components of rental revenue for the three months ended March 31, 2019 were as follows: (Amounts in thousands) Three Months Ended March 31, 2019 Rental Revenue Fixed lease revenue $ 68,484 Variable lease revenue 28,824 Total rental revenue $ 97,308 |
Schedule of Maturity Analysis of Operating Lease Payments to be Received as Lessor | The Company’s operating leases are disclosed in the aggregate due to their consistent nature as real estate leases. As of March 31, 2019, the undiscounted cash flows to be received from lease payments of our operating leases on an annual basis for the next five years and thereafter are as follows: (Amounts in thousands) Year Ending December 31, 2019 (1) $ 218,367 2020 246,431 2021 226,006 2022 206,988 2023 184,699 2024 152,018 Thereafter 895,260 Total undiscounted cash flows $ 2,129,769 (1) Remainder of 2019. |
Schedule of Future Minimum Rental Receivable for Operating Leases Under ASC 840 as Lessor | As of December 31, 2018, future base rental revenue under non-cancelable operating leases, under ASC 840 as lessor, was as follows: (Amounts in thousands) Year Ending December 31, 2019 $ 256,598 2020 235,652 2021 216,247 2022 198,449 2023 176,282 Thereafter 986,865 |
Schedule of Components of Lease Expense | The components of lease expense for the three months ended March 31, 2019 were as follows: (Amounts in thousands) Three Months Ended March 31, 2019 Lease expense Operating lease cost (1) $ 2,981 Variable lease cost 674 Total lease expense $ 3,655 (1) The Company is an intermediate lessor and recognized sublease income of $5.1 million included within rental revenue on the consolidated statement of income in relation to certain ground and building lease arrangements. Operating lease cost includes amortization of below-market ground lease intangibles and straight-line lease expense. |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: March 31, 2019 Supplemental noncash information Weighted-average remaining lease term - operating leases 15.9 years Weighted-average discount rates - operating leases 4.01 % |
Schedule of Maturity Analysis of Operating Lease Payments as Lessee | The undiscounted cash flows to be paid on an annual basis for the next five years and thereafter are presented in the table below. The total amount of lease payments, on an undiscounted basis, are reconciled to the lease liability on the consolidated balance sheet by considering the present value discount. (Amounts in thousands) Year Ending December 31, 2019 (1) $ 8,040 2020 9,708 2021 9,051 2022 9,077 2023 8,875 2024 8,881 Thereafter 76,856 Total undiscounted cash flows 130,488 Present value discount (38,582 ) Discounted cash flows $ 91,906 (1) Remainder of 2019. |
Schedule of Future Minimum Operating Lease Payments Under ASC 840 as Lessee | As of December 31, 2018, future lease payments under operating lease agreements, including extension options if reasonably assured of being exercised, under ASC 840 as lessee, were as follows: (Amounts in thousands) Year Ending December 31, 2019 $ 10,640 2020 9,614 2021 8,957 2022 8,982 2023 8,850 Thereafter 85,535 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instrument Carrying Amounts and Fair Values | The table below summarizes the carrying amounts and fair value of these financial instruments as of March 31, 2019 and December 31, 2018 . As of March 31, 2019 As of December 31, 2018 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 416,668 $ 416,668 $ 440,430 $ 440,430 Liabilities: Mortgages payable (1) $ 1,560,932 $ 1,565,563 $ 1,562,159 $ 1,543,963 (1) Carrying amounts exclude unamortized debt issuance costs of $11.5 million and $11.9 million as of March 31, 2019 and December 31, 2018 , respectively. |
Schedule of Interest Rates Used for Fair Value of Mortgages Payable | The following market spreads were used by the Company to estimate the fair value of mortgages payable: March 31, 2019 December 31, 2018 Low High Low High Mortgages payable 1.7% 1.9% 1.7% 1.9% |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Composition of Prepaid Expenses and Other Assets | The following is a summary of the composition of the prepaid expenses and other assets in the consolidated balance sheets: Balance at (Amounts in thousands) March 31, 2019 December 31, 2018 Other assets $ 2,914 $ 2,765 Prepaid expenses: Real estate taxes 5,168 6,911 Insurance 3,787 2,509 Licenses/fees 985 783 Total Prepaid expenses and other assets $ 12,854 $ 12,968 |
ACCOUNTS PAYABLE, ACCRUED EXP_2
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Composition of Accounts Payable, Accrued Expenses and Other Liabilites | The following is a summary of the composition of accounts payable, accrued expenses other liabilities in the consolidated balance sheets: Balance at (Amounts in thousands) March 31, 2019 December 31, 2018 Deferred tenant revenue $ 28,384 $ 28,697 Accrued capital expenditures and leasing costs 22,943 29,754 Accrued interest payable 9,292 8,950 Deferred tax liability, net 4,685 5,532 Security deposits 5,458 5,396 Accrued payroll expenses 2,453 5,747 Other liabilities and accrued expenses 12,209 7,371 Accrued rent (1) — 7,070 Total accounts payable, accrued expenses and other liabilities $ 85,424 $ 98,517 (1) In connection with the adoption of ASC 842 on January 1, 2019, we reclassified $7.1 million of accrued rent and adjusted the carrying values of our ROU assets by the corresponding amount. |
INTEREST AND DEBT EXPENSE (Tabl
INTEREST AND DEBT EXPENSE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Interest and Debt Expense | The following table sets forth the details of interest and debt expense in the consolidated statements of income: Three Months Ended March 31, (Amounts in thousands) 2019 2018 Interest expense $ 15,816 $ 14,922 Amortization of deferred financing costs 720 722 Total Interest and debt expense $ 16,536 $ 15,644 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Share-based Compensation Expense | Share-based compensation expense, which is included in general and administrative expenses in our consolidated statements of income, is summarized as follows: Three Months Ended March 31, (Amounts in thousands) 2019 2018 Share-based compensation expense components: Restricted share expense $ 751 $ 587 Stock option expense 1,071 585 LTIP expense 1,208 166 Outperformance Plan (“OPP”) expense 564 682 Deferred share unit (“DSU”) expense 70 — Total Share-based compensation expense $ 3,664 $ 2,020 |
EARNINGS PER SHARE AND UNIT (Ta
EARNINGS PER SHARE AND UNIT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings per Share and Unit | The following table sets forth the computation of our basic and diluted earnings per share: Three Months Ended March 31, (Amounts in thousands, except per share amounts) 2019 2018 Numerator: Net income attributable to common shareholders $ 25,537 $ 20,700 Less: Earnings allocated to unvested participating securities (23 ) (48 ) Net income available for common shareholders - basic $ 25,514 $ 20,652 Impact of assumed conversions: OP and LTIP units 2,245 — Net income available for common shareholders - dilutive $ 27,759 $ 20,652 Denominator: Weighted average common shares outstanding - basic 116,274 113,677 Effect of dilutive securities (1) : Stock options using the treasury stock method — — Restricted share awards 114 187 Assumed conversion of OP and LTIP units 10,116 — Weighted average common shares outstanding - diluted 126,504 113,864 Earnings per share available to common shareholders: Earnings per common share - Basic $ 0.22 $ 0.18 Earnings per common share - Diluted $ 0.22 $ 0.18 (1) For the quarter ended March 31, 2018 , the effect of the redemption of OP and LTIP units for Urban Edge common shares would have an anti-dilutive effect on the calculation of diluted EPS. Accordingly, the impact of such redemption has not been included in the determination of diluted EPS for this period. Operating Partnership Earnings per Unit The following table sets forth the computation of basic and diluted earnings per unit: Three Months Ended March 31, (Amounts in thousands, except per unit amounts) 2019 2018 Numerator: Net income attributable to unitholders $ 27,892 $ 23,028 Less: net income attributable to participating securities (25 ) (48 ) Net income available for unitholders $ 27,867 $ 22,980 Denominator: Weighted average units outstanding - basic 126,391 126,123 Effect of dilutive securities issued by Urban Edge 114 187 Unvested LTIP units — 272 Weighted average units outstanding - diluted 126,505 126,582 Earnings per unit available to unitholders: Earnings per unit - Basic $ 0.22 $ 0.18 Earnings per unit - Diluted $ 0.22 $ 0.18 |
ORGANIZATION (Details)
ORGANIZATION (Details) ft² in Millions | Jan. 15, 2015 | Mar. 31, 2019ft²property |
Real Estate Properties [Line Items] | ||
Noncontrolling interest percentage | 8.40% | |
Area of real estate property (in sq ft) | ft² | 16.1 | |
Warehouses | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 1 | |
Wholly owned properties | Shopping Center | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 82 | |
Wholly owned properties | Mall | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 4 | |
Parent | Vornado Realty L.P. | ||
Real Estate Properties [Line Items] | ||
Noncontrolling interest percentage | 5.40% | 94.40% |
BASIS OF PRESENTATION AND PRI_2
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION AND COMBINATION (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Jan. 01, 2019USD ($)property | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting pronouncement in period of adoption | $ (2,918) | ||
Number of properties in operating lease portfolio | property | 24 | ||
ROU assets | $ 96,466 | $ 0 | |
Lease liabilities | 91,906 | 0 | |
Below-market lease intangible derecognized | (141,526) | (144,258) | |
Deferred lease expense derecognized | 0 | $ (7,070) | |
Capitalized internal leasing overhead | $ 500 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU assets | $ 98,500 | ||
Lease liabilities | 94,000 | ||
Below-market lease intangible derecognized | 11,900 | ||
Deferred lease expense derecognized | 7,100 | ||
Retained Earnings | ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting pronouncement in period of adoption | $ 2,900 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Details) $ in Thousands | Mar. 15, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | |||||
Number of acquisitions completed by the Company | 0 | ||||
Gain on sale of real estate | $ 16,953 | $ 0 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Chicopee, MA | |||||
Business Acquisition [Line Items] | |||||
Consideration received on sale of real estate property | $ 18,200 | ||||
Gain on sale of real estate | $ 17,000 | ||||
Scenario, Forecast | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Glen Burnie, MD | |||||
Business Acquisition [Line Items] | |||||
Consideration received on sale of real estate property | $ 16,200 | ||||
Office Building in Maywood, NJ | Scenario, Forecast | |||||
Business Acquisition [Line Items] | |||||
Purchase price of real estate property acquired | $ 7,100 |
IDENTIFIED INTANGIBLE ASSETS _3
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Identified intangible assets, net of accumulated amortization | $ 53,994 | $ 68,422 | |
Identified intangible liabilities, net of accumulated amortization | 141,526 | $ 144,258 | |
Amortization of acquired below-market leases, net of above-market leases | 2,400 | $ 2,600 | |
Amortization expense of intangible assets | $ 2,100 | $ 2,800 |
IDENTIFIED INTANGIBLE ASSETS _4
IDENTIFIED INTANGIBLE ASSETS AND LIABILITIES - Schedule of Estimated Annual Amortization Expense (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Below-Market Operating Lease Amortization | |
Reminder of 2019 | $ 7,442 |
2019 | 9,810 |
2020 | 9,672 |
2021 | 9,596 |
2022 | 9,548 |
2024 | 9,301 |
Above-Market | |
Above-Market Operating Lease Amortization | |
Remainder of 2019 | (917) |
2020 | (1,014) |
2021 | (807) |
2022 | (433) |
2023 | (327) |
2024 | (266) |
In-Place Leases | |
Remainder of 2019 | 917 |
2020 | 1,014 |
2021 | 807 |
2022 | 433 |
2023 | 327 |
2024 | 266 |
In-Place Leases | |
Above-Market Operating Lease Amortization | |
Remainder of 2019 | (5,420) |
2020 | (6,177) |
2021 | (4,965) |
2022 | (4,032) |
2023 | (3,702) |
2024 | (3,264) |
In-Place Leases | |
Remainder of 2019 | 5,420 |
2020 | 6,177 |
2021 | 4,965 |
2022 | 4,032 |
2023 | 3,702 |
2024 | $ 3,264 |
MORTGAGES PAYABLE - Summary of
MORTGAGES PAYABLE - Summary of Mortgages Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Feb. 23, 2018 | |
Debt Instrument [Line Items] | ||||
Total mortgages payable, net of unamortized debt issuance costs | $ 1,549,479 | $ 1,550,242 | ||
Gain on extinguishment of debt | 0 | $ 2,524 | ||
Mortgages | First Mortgage | ||||
Debt Instrument [Line Items] | ||||
Total mortgages payable | 1,560,932 | 1,562,159 | ||
Unamortized debt issuance costs | (11,453) | (11,917) | ||
Total mortgages payable, net of unamortized debt issuance costs | 1,549,479 | 1,550,242 | ||
Mortgages | First Mortgage | Variable rate | ||||
Debt Instrument [Line Items] | ||||
Total mortgages payable | $ 169,500 | 169,500 | ||
Mortgages | First Mortgage | Variable rate | The Plaza at Cherry Hill | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.09% | |||
Total mortgages payable | $ 28,930 | 28,930 | ||
Mortgages | First Mortgage | Variable rate | The Plaza at Cherry Hill | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread on variable rate | 160.00% | 160.00% | ||
Mortgages | First Mortgage | Variable rate | Westfield - One Lincoln Plaza | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.09% | |||
Total mortgages payable | $ 4,730 | 4,730 | ||
Mortgages | First Mortgage | Variable rate | Westfield - One Lincoln Plaza | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread on variable rate | 160.00% | 160.00% | ||
Mortgages | First Mortgage | Variable rate | The Plaza at Woodbridge | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.09% | |||
Total mortgages payable | $ 55,340 | 55,340 | ||
Mortgages | First Mortgage | Variable rate | The Plaza at Woodbridge | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread on variable rate | 160.00% | 160.00% | ||
Mortgages | First Mortgage | Variable rate | Hudson Commons | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.39% | |||
Total mortgages payable | $ 29,000 | 29,000 | ||
Mortgages | First Mortgage | Variable rate | Hudson Commons | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread on variable rate | 190.00% | |||
Mortgages | First Mortgage | Variable rate | Watchung, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.39% | |||
Total mortgages payable | $ 27,000 | 27,000 | ||
Mortgages | First Mortgage | Variable rate | Watchung, NJ | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread on variable rate | 190.00% | |||
Mortgages | First Mortgage | Variable rate | Bronx (1750-1780 Gun Hill Road), NY | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.39% | |||
Total mortgages payable | $ 24,500 | 24,500 | ||
Mortgages | First Mortgage | Variable rate | Bronx (1750-1780 Gun Hill Road), NY | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread on variable rate | 190.00% | |||
Mortgages | First Mortgage | Fixed rate | ||||
Debt Instrument [Line Items] | ||||
Total mortgages payable | $ 1,391,432 | 1,392,659 | ||
Mortgages | First Mortgage | Fixed rate | Montehiedra Town Center | Senior Loan | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.33% | |||
Total mortgages payable | $ 84,476 | 84,860 | ||
Mortgages | First Mortgage | Fixed rate | Montehiedra Town Center | Junior Loan | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.00% | |||
Total mortgages payable | $ 30,000 | 30,000 | ||
Mortgages | First Mortgage | Fixed rate | Bergen Town Center | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.56% | |||
Total mortgages payable | $ 300,000 | 300,000 | ||
Mortgages | First Mortgage | Fixed rate | Shops at Bruckner | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.90% | |||
Total mortgages payable | $ 11,432 | 11,582 | ||
Mortgages | First Mortgage | Fixed rate | Hudson Mall | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.07% | |||
Total mortgages payable | $ 24,149 | 24,326 | ||
Effective interest rate | 3.78% | |||
Unamortized debt premium | $ 1,200 | |||
Mortgages | First Mortgage | Fixed rate | Yonkers Gateway Center | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.16% | |||
Total mortgages payable | $ 31,310 | 31,704 | ||
Effective interest rate | 3.67% | |||
Unamortized debt premium | $ 700 | |||
Mortgages | First Mortgage | Fixed rate | Las Catalinas | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.43% | |||
Total mortgages payable | $ 130,000 | 130,000 | ||
Mortgages | First Mortgage | Fixed rate | Brick, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.87% | |||
Total mortgages payable | $ 50,000 | 50,000 | ||
Mortgages | First Mortgage | Fixed rate | North Plainfield | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.99% | |||
Total mortgages payable | $ 25,100 | 25,100 | ||
Mortgages | First Mortgage | Fixed rate | Middletown, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.78% | |||
Total mortgages payable | $ 31,400 | 31,400 | ||
Mortgages | First Mortgage | Fixed rate | Rockaway | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.78% | |||
Total mortgages payable | $ 27,800 | 27,800 | ||
Mortgages | First Mortgage | Fixed rate | East Hanover (200 - 240 Route 10 West), NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.03% | |||
Total mortgages payable | $ 63,000 | 63,000 | ||
Mortgages | First Mortgage | Fixed rate | North Bergen (Tonnelle Avenue), NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.18% | |||
Total mortgages payable | $ 100,000 | 100,000 | ||
Mortgages | First Mortgage | Fixed rate | Manchester Plaza | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.32% | |||
Total mortgages payable | $ 12,500 | 12,500 | ||
Mortgages | First Mortgage | Fixed rate | Millburn | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.97% | |||
Total mortgages payable | $ 24,000 | 24,000 | ||
Mortgages | First Mortgage | Fixed rate | Totowa, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.33% | |||
Total mortgages payable | $ 50,800 | 50,800 | ||
Mortgages | First Mortgage | Fixed rate | Woodbridge Commons | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.36% | |||
Total mortgages payable | $ 22,100 | 22,100 | ||
Mortgages | First Mortgage | Fixed rate | East Brunswick, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.38% | |||
Total mortgages payable | $ 63,000 | 63,000 | ||
Mortgages | First Mortgage | Fixed rate | East Rutherford, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.49% | |||
Total mortgages payable | $ 23,000 | 23,000 | ||
Mortgages | First Mortgage | Fixed rate | Hackensack, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.36% | |||
Total mortgages payable | $ 66,400 | 66,400 | ||
Mortgages | First Mortgage | Fixed rate | Marlton, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.86% | |||
Total mortgages payable | $ 37,400 | 37,400 | ||
Mortgages | First Mortgage | Fixed rate | East Hanover Warehouses | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.09% | |||
Total mortgages payable | $ 40,700 | 40,700 | ||
Mortgages | First Mortgage | Fixed rate | Union (2445 Springfield Avenue), NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.01% | |||
Total mortgages payable | $ 45,600 | 45,600 | ||
Mortgages | First Mortgage | Fixed rate | Freeport (437 East Sunrise Highway), NY | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.07% | |||
Total mortgages payable | $ 43,100 | 43,100 | ||
Mortgages | First Mortgage | Fixed rate | Garfield, NJ | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.14% | |||
Total mortgages payable | $ 40,300 | 40,300 | ||
Mortgages | First Mortgage | Fixed rate | Mount Kisco (Target) | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.40% | |||
Total mortgages payable | $ 13,865 | 13,987 | ||
Unamortized debt discount | $ (1,000) | $ (1,000) | ||
Effective interest rate | 7.27% | |||
Mortgages | First Mortgage | Fixed rate | Englewood | ||||
Debt Instrument [Line Items] | ||||
Total mortgages payable | $ 11,500 | |||
Gain on extinguishment of debt | $ 2,500 |
MORTGAGES PAYABLE - Additional
MORTGAGES PAYABLE - Additional Information (Details) | Mar. 07, 2017USD ($)extension_option | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Feb. 23, 2018USD ($) | Jan. 15, 2015USD ($) |
Debt Instrument [Line Items] | ||||||
Net carrying amount of real estate collateralizing indebtedness | $ 1,300,000,000 | |||||
Gain on extinguishment of debt | 0 | $ 2,524,000 | ||||
Increase in credit facility | $ 100,000,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 600,000,000 | |||||
Revolving Credit Facility | Revolving Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 500,000,000 | |||||
Number of extension options | extension_option | 2 | |||||
Term of each extension option | 6 months | |||||
Amounts drawn under the credit agreement | 0 | |||||
Gross debt issuance costs | 2,000,000 | $ 2,200,000 | ||||
Revolving Credit Facility | Revolving Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Financial covenants, maximum leverage ratio | 0.6 | |||||
Facility fee | 35.00% | |||||
Revolving Credit Facility | Revolving Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Financial covenants, minimum fixed charge coverage ratio | 1.5 | |||||
Facility fee | 15.00% | |||||
Revolving Credit Facility | Revolving Credit Agreement | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread on variable rate | 1.55% | |||||
Revolving Credit Facility | Revolving Credit Agreement | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread on variable rate | 1.10% | |||||
First Mortgage | Mortgages | ||||||
Debt Instrument [Line Items] | ||||||
Total mortgages payable | 1,560,932,000 | 1,562,159,000 | ||||
First Mortgage | Mortgages | Fixed rate | ||||||
Debt Instrument [Line Items] | ||||||
Total mortgages payable | 1,391,432,000 | $ 1,392,659,000 | ||||
First Mortgage | Mortgages | Englewood, NJ | Fixed rate | ||||||
Debt Instrument [Line Items] | ||||||
Gain on extinguishment of debt | $ 2,500,000 | |||||
Total mortgages payable | $ 11,500,000 |
MORTGAGES PAYABLE - Schedule of
MORTGAGES PAYABLE - Schedule of Maturities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2018 | $ 3,396 |
2019 | 7,567 |
2020 | 122,827 |
2021 | 100,896 |
2022 | 344,423 |
2023 | 274,370 |
Thereafter | $ 707,453 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)mall | Mar. 31, 2018USD ($) | Dec. 31, 2018mall | |
Income Tax Contingency [Line Items] | |||
Income tax expense | $ 202 | $ 434 | |
Puerto Rico | |||
Income Tax Contingency [Line Items] | |||
Number of malls | mall | 2 | 2 | |
Commonwealth of Puerto Rico | |||
Income Tax Contingency [Line Items] | |||
Income tax expense | $ 200 | ||
Non-resident withholding tax percentage | 29.00% | 29.00% | |
Allentown, PA | |||
Income Tax Contingency [Line Items] | |||
Income tax expense | $ 200 | ||
Vornado | |||
Income Tax Contingency [Line Items] | |||
Percentage of taxable income distributed as dividends to stockholders | 100.00% |
LEASES - Additional Information
LEASES - Additional Information (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)ft²propertylease | Dec. 31, 2018USD ($) | Jan. 01, 2019property | |
Operating Leased Assets [Line Items] | |||
Variable lease payments dependent of CPI percentage | $ 600 | ||
Variable lease recoveries from tenant expense reimbursements | $ 28,300 | ||
Number of properties in operating lease portfolio | property | 24 | ||
Area of leased real estate property (in sq ft) | ft² | 16,100 | ||
Value of real estate assets subject to operating lease | $ 2,118,954 | $ 2,123,120 | |
Additional rent based on percentage of tenants' sales or reimbursements | 2,000 | ||
Tenant expense reimbursements | |||
Operating Leased Assets [Line Items] | |||
Rental revenue from tenant expense reimbursements | $ 108,700 | ||
Ground and Building | |||
Operating Leased Assets [Line Items] | |||
Number of properties in operating lease portfolio | property | 21 | ||
Ground and Building | Minimum | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease term of contract | 1 year | ||
Ground and Building | Maximum | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease term of contract | 80 years | ||
Corporate Offices | |||
Operating Leased Assets [Line Items] | |||
Number of properties in operating lease portfolio | property | 3 | ||
Corporate Offices | Minimum | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease term of contract | 1 year | ||
Corporate Offices | Maximum | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease term of contract | 2 years | ||
Retail Shopping Centers and Malls | |||
Operating Leased Assets [Line Items] | |||
Number of operating leases | lease | 1,200 | ||
Under 10,000 sq ft | |||
Operating Leased Assets [Line Items] | |||
Area of leased real estate property (in sq ft) | ft² | 10 | ||
Lessor, operating lease term of contract | 5 years | ||
10,000 sq ft or more | |||
Operating Leased Assets [Line Items] | |||
Area of leased real estate property (in sq ft) | ft² | 10 | ||
10,000 sq ft or more | Minimum | |||
Operating Leased Assets [Line Items] | |||
Lessor, operating lease term of contract | 10 years | ||
10,000 sq ft or more | Maximum | |||
Operating Leased Assets [Line Items] | |||
Lessor, operating lease term of contract | 25 years |
LEASES - Components of Rental R
LEASES - Components of Rental Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Fixed lease revenue | $ 68,484 | |
Variable lease revenue | 28,824 | |
Total rental revenue | $ 97,308 | $ 98,394 |
LEASES - Maturity Analysis of O
LEASES - Maturity Analysis of Operating Lease Payments to be Received as Lessor (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 218,367 |
2020 | 246,431 |
2021 | 226,006 |
2022 | 206,988 |
2023 | 184,699 |
2024 | 152,018 |
Thereafter | 895,260 |
Total undiscounted cash flows | $ 2,129,769 |
LEASES - Future Base Rental Rev
LEASES - Future Base Rental Revenue Under ASC 840 as Lessor (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 256,598 |
2020 | 235,652 |
2021 | 216,247 |
2022 | 198,449 |
2023 | 176,282 |
Thereafter | $ 986,865 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 2,981 |
Variable lease cost | 674 |
Total lease expense | 3,655 |
Sublease income | $ 5,100 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information Related to Leases (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term - operating leases | 15 years 10 months 12 days |
Weighted-average discount rates - operating leases | 4.01% |
LEASES - Maturity Analysis of_2
LEASES - Maturity Analysis of Operating Lease Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Year Ended December 31, | ||
Remainder of 2019 | $ 8,040 | |
2020 | 9,708 | |
2021 | 9,051 | |
2022 | 9,077 | |
2023 | 8,875 | |
2024 | 8,881 | |
Thereafter | 76,856 | |
Total | 130,488 | |
Present value discount | (38,582) | |
Discounted cash flows | $ 91,906 | $ 0 |
LEASES - Future Operating Lease
LEASES - Future Operating Lease Payments Under Under ASC 840 as Lessee (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 10,640 |
2020 | 9,614 |
2021 | 8,957 |
2022 | 8,982 |
2023 | 8,850 |
Thereafter | $ 85,535 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of real estate | $ 3,958 | $ 0 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Westfield, NJ | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of real estate | 4,000 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets measured at fair value | 0 | $ 0 | |
Financial liabilities measured at fair value | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets measured at fair value | 0 | 0 | |
Financial liabilities measured at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Balan
FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 416,668 | $ 440,430 | $ 462,774 | $ 490,279 |
Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 416,668 | 440,430 | ||
Carrying Amount | Mortgages | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgages payable | 1,560,932 | 1,562,159 | ||
Unamortized debt issuance costs | (11,500) | |||
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 416,668 | 440,430 | ||
Fair Value | Mortgages | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgages payable | $ 1,565,563 | $ 1,543,963 |
FAIR VALUE MEASUREMENTS - Inter
FAIR VALUE MEASUREMENTS - Interest Rates Used for Fair Value of Mortgages Payable (Details) - Mortgages | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Low | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value input, interest rate | 1.70% | 1.70% |
High | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value input, interest rate | 1.90% | 1.90% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ft² in Thousands | Oct. 15, 2018USD ($)ft²property | Jan. 31, 2019USD ($)property | Mar. 31, 2019USD ($)ft²mall | Mar. 31, 2018USD ($) | Dec. 31, 2018mall | Sep. 20, 2017mall |
Loss Contingencies [Line Items] | ||||||
Real estate redevelopment in process | $ 121,200,000 | |||||
Estimated cost to complete development and redevelopment projects | $ 34,800,000 | |||||
Development in process, estimated duration to complete | 2 years | |||||
Insurance coverage, general liability insurance, limit per occurrence | $ 200,000,000 | |||||
Insurance coverage, rental value insurance, limit per occurrence | 500,000,000 | |||||
Insurance coverage, terrorism acts insurance, limit per occurrence | 5,000,000 | |||||
Reversal of provision for doubtful accounts | 0 | $ (1,236,000) | ||||
Deferred lease expense | $ 1,700,000 | |||||
Area of real estate property (in sq ft) | ft² | 16,100 | |||||
Sears (Kmart) | Property Subject to Operating Lease | ||||||
Loss Contingencies [Line Items] | ||||||
Number of properties subject to lease | property | 4 | 4 | ||||
Area of real estate property (in sq ft) | ft² | 547 | |||||
Annual rental revenue | $ 8,500,000 | |||||
Consideration to be received from third party on sale of stores under bankruptcy proceedings | $ 5,200,000,000 | |||||
Environmental Remediation | ||||||
Loss Contingencies [Line Items] | ||||||
Cost of services, environmental remediation | $ 300,000 | |||||
Puerto Rico | ||||||
Loss Contingencies [Line Items] | ||||||
Number of malls | mall | 2 | 2 | ||||
Puerto Rico | Montehiedra Town Center and Las Catalinas Mall | Hurricane | ||||||
Loss Contingencies [Line Items] | ||||||
Number of malls | mall | 2 | |||||
Puerto Rico | Montehiedra Town Center and Las Catalinas Mall | Hurricane Maria | ||||||
Loss Contingencies [Line Items] | ||||||
Insurance coverage, rental value insurance, limit per occurrence | $ 139,000,000 | |||||
Puerto Rico | Montehiedra Town Center and Las Catalinas Mall | Hurricane Maria | Hurricane | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, insurance proceeds received | 1,500,000 | |||||
Rent abatements and tenant expense reimbursements | 600,000 | |||||
Reversal of provision for doubtful accounts | (200,000) | |||||
Puerto Rico | Montehiedra Town Center and Las Catalinas Mall | Hurricane Maria | Hurricane | Business Interruption | ||||||
Loss Contingencies [Line Items] | ||||||
Hurricane-related costs | 200,000 | |||||
Net casualty gains | 1,300,000 | |||||
Gains (losses) on business interruption | $ (800,000) |
PREPAID EXPENSES AND OTHER AS_3
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 2,914 | $ 2,765 |
Prepaid expenses: | ||
Real estate taxes | 5,168 | 6,911 |
Insurance | 3,787 | 2,509 |
Licenses/fees | 985 | 783 |
Total Prepaid expenses and other assets | $ 12,854 | $ 12,968 |
ACCOUNTS PAYABLE, ACCRUED EXP_3
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | |||
Deferred tenant revenue | $ 28,384 | $ 28,697 | |
Accrued capital expenditures and leasing costs | 22,943 | 29,754 | |
Accrued interest payable | 9,292 | 8,950 | |
Deferred tax liability, net | 4,685 | 5,532 | |
Security deposits | 5,458 | 5,396 | |
Accrued payroll expenses | 2,453 | 5,747 | |
Other liabilities and accrued expenses | 12,209 | 7,371 | |
Deferred lease expense derecognized | 0 | (7,070) | |
Total accounts payable, accrued expenses and other liabilities | 85,424 | 98,517 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU assets | $ (96,466) | $ 0 | |
ASU 2016-02 | |||
Other Liabilities Disclosure [Abstract] | |||
Deferred lease expense derecognized | $ 7,100 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU assets | $ (98,500) |
INTEREST AND DEBT EXPENSE (Deta
INTEREST AND DEBT EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | ||
Interest expense | $ 15,816 | $ 14,922 |
Amortization of deferred financing costs | 720 | 722 |
Total Interest and debt expense | $ 16,536 | $ 15,644 |
EQUITY AND NONCONTROLLING INT_2
EQUITY AND NONCONTROLLING INTEREST (Details) | Jan. 15, 2015 | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018$ / sharesshares | Dec. 31, 2018$ / shares | Aug. 08, 2016USD ($)$ / shares |
Noncontrolling Interest [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Distributions to redeemable NCI (in dollars per unit) | $ 0.22 | $ 0.22 | |||
Common limited partnership units issued (in shares) | shares | 5,700,000 | ||||
Noncontrolling interest percentage | 8.40% | ||||
Conversion rate to common shares | 1 | ||||
LTIP expense | |||||
Noncontrolling Interest [Line Items] | |||||
Award vesting period | 2 years | ||||
Noncontrolling Interest | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest percentage | 5.00% | ||||
ATM | |||||
Noncontrolling Interest [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Aggregate shares subscription price | $ | $ 250,000,000 | ||||
Common stock remaining amount available for issuance | $ | $ 241,300,000 | ||||
Common shares issued during period (in shares) | shares | 0 | 0 | |||
Vornado Realty L.P. | Parent | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest percentage | 5.40% | 94.40% |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - General and Administrative Expense - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | $ 3,664 | $ 2,020 |
Restricted share expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | 751 | 587 |
Stock option expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | 1,071 | 585 |
LTIP expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | 1,208 | 166 |
Outperformance Plan (“OPP”) expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | 564 | 682 |
Deferred share unit (“DSU”) expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total Share-based compensation expense | $ 70 | $ 0 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) | Apr. 01, 2019 | Mar. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options grated (in shares) | 180,213 | |
Number of options vested (in shares) | 661,551 | |
Restricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number or equity awards granted (in shares) | 22,186 | |
Number of awards vested (in shares) | 88,813 | |
LTIP Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number or equity awards granted (in shares) | 135,532 | |
Number of awards vested (in shares) | 31,617 | |
LTIP Units | 2019 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance measurement period of equity awards | 3 years | |
LTIP Units | Subsequent Event | 2019 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate notional amount of grant | $ 4,300,000 | |
Time-based LTIP Shares | Subsequent Event | 2019 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted percentage of equity awards | 0.3333 | |
Performance-based LTIP Shares | Subsequent Event | 2019 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted percentage of equity awards | $ 0.6666 |
EARNINGS PER SHARE AND UNIT (De
EARNINGS PER SHARE AND UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income attributable to common shareholders | $ 25,537 | $ 20,700 |
Less: Earnings allocated to unvested participating securities | (23) | (48) |
Net income available for common shareholders - basic | 25,514 | 20,652 |
OP and LTIP units | 2,245 | 0 |
Net income available for common shareholders - dilutive | $ 27,759 | $ 20,652 |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 116,274 | 113,677 |
Effect of dilutive securities: | ||
Assumed conversion of OP and LTIP units (in shares) | 10,116 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 126,504 | 113,864 |
Earnings per share available to common shareholders: | ||
Earnings per common share - Basic (in dollars per share) | $ 0.22 | $ 0.18 |
Earnings per common share - Diluted (in dollars per share) | $ 0.22 | $ 0.18 |
Urban Edge Properties LP | ||
Numerator: | ||
Net income attributable to common shareholders | $ 27,892 | $ 23,028 |
Less: Earnings allocated to unvested participating securities | (25) | (48) |
Net income available for common shareholders - basic | $ 27,867 | $ 22,980 |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 126,391 | 126,123 |
Effect of dilutive securities: | ||
Stock options using treasure stock method and restricted stock awards (in shares) | 114 | 187 |
Assumed conversion of OP and LTIP units (in shares) | 0 | 272 |
Weighted average common shares outstanding - diluted (in shares) | 126,505 | 126,582 |
Earnings per share available to common shareholders: | ||
Earnings per common share - Basic (in dollars per share) | $ 0.22 | $ 0.18 |
Earnings per common share - Diluted (in dollars per share) | $ 0.22 | $ 0.18 |
Stock option expense | ||
Effect of dilutive securities: | ||
Stock options using treasure stock method and restricted stock awards (in shares) | 0 | 0 |
Restricted share expense | ||
Effect of dilutive securities: | ||
Stock options using treasure stock method and restricted stock awards (in shares) | 114 | 187 |
Uncategorized Items - ue-201903
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,918,000) |
Subsidiaries [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,918,000) |
Subsidiaries [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,918,000) |