MINNEAPOLIS, Feb. 19, 2020 /PRNewswire/ -- IRET (NYSE:
IRET) announced today its financial and operating results for the
year ended December 31, 2019.
Net income and Funds from Operations ("FFO") per share for the
transition period ended December 31, 2019, are detailed
below. Core FFO adjusts FFO for certain non-routine items,
and both FFO and Core FFO are reconciled to net income in the
tables accompanying this earnings release.
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
Per
Share
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Earnings (loss) per
share - diluted
|
|
$
|
3.89
|
|
|
$
|
(0.49)
|
|
|
$
|
6.00
|
|
|
$
|
(1.83)
|
|
FFO -
diluted
|
|
0.90
|
|
|
0.92
|
|
|
4.05
|
|
|
3.29
|
|
Core FFO -
diluted
|
|
0.96
|
|
|
0.92
|
|
|
3.72
|
|
|
3.41
|
|
|
|
Year-Over-Year
Comparison
|
|
Sequential
Comparison
|
|
YTD
Comparison
|
Same-Store
Results
|
|
4Q19 vs
4Q18
|
|
4Q19 vs.
3Q19
|
|
CY19 vs.
CY18
|
Revenues
|
|
2.8
|
%
|
|
0.4
|
%
|
|
3.7
|
%
|
Expenses
|
|
6.4
|
%
|
|
1.6
|
%
|
|
3.8
|
%
|
Net Operating Income
("NOI")
|
|
0.2
|
%
|
|
(0.4)
|
%
|
|
3.6
|
%
|
|
|
Three months
ended
|
|
Twelve months
ended
|
Same-Store
Results
|
|
December 31,
2019
|
|
September 30,
2019
|
|
December 31,
2018
|
|
December 31,
2019
|
|
December 31,
2018
|
Weighted Average
Occupancy
|
|
94.0
|
%
|
|
93.3
|
%
|
|
94.2
|
%
|
|
94.3
|
%
|
|
93.6
|
%
|
Net operating income ("NOI"), funds from operations ("FFO"), and
Core FFO are non-GAAP financial measures. For more
information on their usage and presentation, and a reconciliation
to the most directly comparable GAAP measures, refer to "Non-GAAP
Financial Measures and Reconciliations" below.
Financial Highlights for the Year Ended December 31,
2019
- Grew earnings per share to $6.00
per diluted share for the year ended December 31, 2019, compared to a net loss of
$1.83 per diluted share for the year
ended December 31, 2018.
- Increased FFO year-over-year from $3.29 per diluted share to $4.05 per diluted share and increased Core FFO
from $3.41 per diluted share to
$3.72 per diluted share.
- Increased same-store revenue year-over-year by 3.7% driven by
3.0% growth in rental revenue and 0.7% growth in occupancy, while
same-store operating expenses grew 3.8% year-over-year, primarily
due to real estate taxes and insurance. The combination of 3.7%
same-store revenue growth and expense control initiatives that
limited same-store controllable expenses growth to approximately
1.8% over the same period in 2018, led to same-store NOI growth of
3.6% for the year ended December 31,
2019.
- Acquired three new apartment communities in the key growth
markets of Minneapolis, Minnesota
and Denver, Colorado, consisting
of 696 homes, for an aggregate purchase price of $169.3 million.
- Exited slower-growth, less efficient markets in Topeka, Kansas, Sioux City, Iowa, and Sioux Falls, South Dakota, and sold five
apartment communities in Bismarck, North
Dakota, consisting of a total of 21 apartment communities,
two commercial properties, and three parcels of land for an
aggregate sale price of $203.1
million.
- Originated a $29.9 million
construction loan and a $15.3 million
mezzanine loan, in December 2019, for
the development of a multifamily community located in Minneapolis, Minnesota. The loans are secured
by mortgages and mature on December 31,
2023. We have an option to purchase the development.
- Registered an ongoing at-the-market ("ATM") offering and sale
of up to $150.0 million in common
shares under our 2019 ATM program, from which we issued 308,444
common shares at an average price of $72.29 per share, net of commissions. Total
consideration, net of commissions and issuance costs, were
approximately $22.0 million in the
year ended December 31, 2019.
- Repurchased and retired approximately 465,000 common shares and
Units for an aggregate cost of $26.2
million, including commissions, at an average price per
share of $56.24, in the year ended
December 31, 2019.
- Entered into a $150.0 million
private shelf agreement. Of the $150.0
million available under the private shelf agreement, we
funded $75.0 million of Series A
unsecured senior notes and $50.0
million of Series B unsecured senior notes. Proceeds from
this private placement facility were used to repay outstanding
amounts on IRET's credit facility and retire mortgage debt.
Following the funding of the Series B Notes, our average debt
maturity duration increased to 6.0 years from 4.6 years while our
weighted average interest rate of debt decreased from 4.3% at
December 31, 2018 to 4.0% at
December 31, 2019. The Company's debt
has decreased from 69% secured at December
31, 2018 to 51% secured at December
31, 2019.
Balance Sheet
At December 31, 2019, we had
$226.5 million of total liquidity on
our balance sheet, including $199.9
million available on our line of credit.
2020 Financial Overview
We are providing the following guidance for our 2020 calendar
year performance.
2020 Calendar Year
Financial Outlook
|
|
|
|
Range for
2020
|
|
2019
Actual
|
|
Low
|
|
High
|
Earnings Per Share -
diluted
|
$
|
6.00
|
|
|
$
|
(1.35)
|
|
|
$
|
(1.07)
|
|
FFO per Share -
diluted
|
$
|
4.05
|
|
|
$
|
3.52
|
|
|
$
|
3.80
|
|
Core FFO per Share -
diluted
|
$
|
3.72
|
|
|
$
|
3.52
|
|
|
$
|
3.80
|
|
Additional assumptions:
- Same-store capital expenditures of $825 per home to $900 per home
- Value-add expenditures of $10.0
million to $15.0 million
- Investments of $66.0 million to
$72.0 million
FFO and Core FFO are non-GAAP measures. For more information on
their usage and presentation, and a reconciliation to the most
directly comparable GAAP measures, please refer to "2020 Financial
Outlook" in the Supplemental Information below.
Quarterly Distributions
On December 5, 2019, our Board of
Trustees declared a regular quarterly distribution of $0.70 per share/unit (NYSE: IRET), payable on
January 15, 2020 to common shareholders and unitholders of
record on January 2, 2020. IRET has
paid cash dividends to common shareholders and unitholders every
quarter since its initial dividend payment in 1971. It represents
an annualized rate of $2.80 per
share/unit.
On December 5, 2019, our Board of
Trustees also declared a dividend of $0.4140625 per share on the 6.625% Series C
Cumulative Redeemable Preferred Shares (NYSE: IRET-PC), payable on
December 31, 2019, to holders of
record on December 16, 2019.
Series C preferred share distributions are cumulative and payable
quarterly in arrears at an annual rate of $1.65625 per share.
Earnings Call
Live webcast and
replay: http://ir.iretapartments.com
|
|
|
|
Live Conference
Call
|
|
Conference Call
Replay
|
Thursday, February
20, 2020 at 10:00 AM ET
|
|
Replay available
until March 5, 2020
|
USA Toll Free
Number
|
1-877-509-9785
|
|
USA Toll Free
Number
|
1-877-344-7529
|
International Toll
Free Number
|
1-412-902-4132
|
|
International Toll
Free Number
|
1-412-317-0088
|
Canada Toll Free
Number
|
1-855-669-9657
|
|
Canada Toll Free
Number
|
1-855-669-9658
|
|
|
|
Conference
Number
|
10137963
|
Supplemental Information
Supplemental Operating and Financial Data for the year ended
December 31, 2019 ("Supplemental Information"), is available
in the Investors section on IRET's website at
www.iretapartments.com or by calling Investor Relations at
701-837-7104. Non-GAAP financial measures and other capitalized
terms, as used in this earnings release, are defined and reconciled
in the Supplemental Information, which accompanies this earnings
release.
About IRET
IRET is a real estate company focused on the ownership,
management, acquisition, redevelopment, and development of
apartment communities. As of December 31, 2019, IRET owned
interests in 69 apartment communities consisting of 11,953
homes. IRET's common shares and Series C preferred shares are
publicly traded on the New York Stock Exchange (NYSE symbols: IRET
and IRET-PC, respectively).
Forward-Looking Statements
Certain statements in this press release are based on our
current expectations and assumptions, and are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements do not discuss
historical fact, but instead include statements related to
expectations, projections, intentions or other items related to the
future. Forward-looking statements are typically identified by the
use of terms such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," and variations of those words and
similar expressions. These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
the actual results, performance, or achievements to be materially
different from the results of operations, financial conditions, or
plans expressed or implied by the forward-looking statements.
Although we believe the expectations reflected in our
forward-looking statements are based upon reasonable assumptions,
we can give no assurance that our expectations will be achieved.
Any statements contained herein that are not statements of
historical fact should be deemed forward-looking statements. As a
result, reliance should not be placed on these forward-looking
statements, as these statements are subject to known and unknown
risks, uncertainties, and other factors beyond our control and
could differ materially from our actual results and performance.
Such risks and uncertainties are detailed from time to time in our
filings with the SEC, including the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and
"Risk Factors" contained in our Annual Report on Form 10-K for the
year ended December 31, 2019, in subsequent quarterly reports
on Form 10-Q, and in other public reports. We assume no obligation
to update or supplement forward-looking statements that become
untrue due to subsequent events.
Investor Relations Contact Information
Jonathan Bishop
Vice President - Finance
Phone: 701-837-7104
E-mail: IR@iret.com
Common Share Data
(NYSE: IRET)
|
|
|
|
Three Months
Ended
|
|
Two Months
Ended
|
|
|
December 31,
2019
|
|
September 30,
2019
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
High Closing
Price
|
|
$
|
78.91
|
|
|
$
|
74.67
|
|
|
$
|
61.28
|
|
|
$
|
61.50
|
|
|
$
|
54.70
|
|
Low Closing
Price
|
|
$
|
71.74
|
|
|
$
|
59.22
|
|
|
$
|
57.19
|
|
|
$
|
49.92
|
|
|
$
|
47.00
|
|
Average Closing
Price
|
|
$
|
74.67
|
|
|
$
|
66.83
|
|
|
$
|
59.54
|
|
|
$
|
58.11
|
|
|
$
|
52.45
|
|
Closing Price at end
of quarter
|
|
$
|
72.50
|
|
|
$
|
74.67
|
|
|
$
|
58.67
|
|
|
$
|
59.91
|
|
|
$
|
49.07
|
|
Common Share
Distributions—annualized
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
Closing Dividend
Yield - annualized
|
|
3.9
|
%
|
|
3.8
|
%
|
|
4.8
|
%
|
|
4.7
|
%
|
|
5.7
|
%
|
Closing common shares
outstanding (thousands)
|
|
12,099
|
|
|
11,625
|
|
|
11,656
|
|
|
11,768
|
|
|
11,942
|
|
Closing limited
partnership units outstanding (thousands)
|
|
1,058
|
|
|
1,223
|
|
|
1,224
|
|
|
1,365
|
|
|
1,368
|
|
Closing market value
of outstanding common shares, plus imputed closing market value of
outstanding limited partnership units (thousands)
|
|
$
|
953,883
|
|
|
$
|
959,360
|
|
|
$
|
755,670
|
|
|
$
|
786,798
|
|
|
$
|
653,122
|
|
IRET
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
(in thousands,
except per share amounts)
|
|
|
|
Three Months Ended
|
|
|
Twelve months
ended
|
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
|
|
12/31/2019
|
|
12/31/2018
|
REVENUE
|
|
$
|
45,777
|
|
|
$
|
47,436
|
|
|
$
|
46,934
|
|
|
$
|
45,608
|
|
|
$
|
45,730
|
|
|
|
$
|
185,755
|
|
|
$
|
180,368
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses, excluding real estate taxes
|
|
14,018
|
|
|
14,485
|
|
|
13,942
|
|
|
14,804
|
|
|
13,292
|
|
|
|
57,249
|
|
|
55,910
|
|
Real estate
taxes
|
|
4,835
|
|
|
5,425
|
|
|
5,574
|
|
|
5,232
|
|
|
5,098
|
|
|
|
21,066
|
|
|
20,171
|
|
Property management
expenses
|
|
1,634
|
|
|
1,553
|
|
|
1,445
|
|
|
1,554
|
|
|
1,447
|
|
|
|
6,186
|
|
|
5,537
|
|
Casualty
loss
|
|
205
|
|
|
178
|
|
|
92
|
|
|
641
|
|
|
540
|
|
|
|
1,116
|
|
|
815
|
|
Depreciation/amortization
|
|
18,972
|
|
|
18,751
|
|
|
18,437
|
|
|
18,111
|
|
|
18,812
|
|
|
|
74,271
|
|
|
77,624
|
|
Impairment of real
estate investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,221
|
|
|
|
—
|
|
|
19,030
|
|
General and
administrative expenses
|
|
3,647
|
|
|
3,448
|
|
|
3,549
|
|
|
3,806
|
|
|
3,769
|
|
|
|
14,450
|
|
|
14,883
|
|
TOTAL
EXPENSES
|
|
$
|
43,311
|
|
|
$
|
43,840
|
|
|
$
|
43,039
|
|
|
$
|
44,148
|
|
|
$
|
44,179
|
|
|
|
$
|
174,338
|
|
|
$
|
193,970
|
|
Operating income
(loss)
|
|
2,466
|
|
|
3,596
|
|
|
3,895
|
|
|
1,460
|
|
|
1,551
|
|
|
|
11,417
|
|
|
(13,602)
|
|
Interest
expense
|
|
(7,357)
|
|
|
(7,694)
|
|
|
(7,590)
|
|
|
(7,896)
|
|
|
(7,682)
|
|
|
|
(30,537)
|
|
|
(32,733)
|
|
Loss on
extinguishment of debt
|
|
(864)
|
|
|
(1,087)
|
|
|
(407)
|
|
|
(2)
|
|
|
(5)
|
|
|
|
(2,360)
|
|
|
(678)
|
|
Interest and other
income
|
|
702
|
|
|
498
|
|
|
468
|
|
|
424
|
|
|
483
|
|
|
|
2,092
|
|
|
2,027
|
|
Income (loss) before
gain (loss) on sale of real estate and other investments, gain
(loss) on litigation settlement, and income (loss) from
discontinued operations
|
|
(5,053)
|
|
|
(4,687)
|
|
|
(3,634)
|
|
|
(6,014)
|
|
|
(5,653)
|
|
|
|
(19,388)
|
|
|
(44,986)
|
|
Gain (loss) on sale
of real estate and other investments
|
|
57,850
|
|
|
39,105
|
|
|
615
|
|
|
54
|
|
|
612
|
|
|
|
97,624
|
|
|
12,011
|
|
Gain (loss) on
litigation settlement
|
|
—
|
|
|
300
|
|
|
6,286
|
|
|
—
|
|
|
—
|
|
|
|
6,586
|
|
|
—
|
|
Income (loss) from
continuing operations
|
|
52,797
|
|
|
34,718
|
|
|
3,267
|
|
|
(5,960)
|
|
|
(5,041)
|
|
|
|
84,822
|
|
|
(32,975)
|
|
Income (loss) from
discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
14,690
|
|
Net income
(loss)
|
|
$
|
52,797
|
|
|
$
|
34,718
|
|
|
$
|
3,267
|
|
|
$
|
(5,960)
|
|
|
$
|
(5,041)
|
|
|
|
$
|
84,822
|
|
|
$
|
(18,285)
|
|
Dividends to
preferred unitholders
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
(57)
|
|
|
—
|
|
|
|
(537)
|
|
|
—
|
|
Net (income) loss
attributable to noncontrolling interest – Operating
Partnership
|
|
(4,202)
|
|
|
(3,145)
|
|
|
(148)
|
|
|
743
|
|
|
665
|
|
|
|
(6,752)
|
|
|
2,553
|
|
Net (income) loss
attributable to noncontrolling interests – consolidated real estate
entities
|
|
223
|
|
|
183
|
|
|
154
|
|
|
576
|
|
|
270
|
|
|
|
1,136
|
|
|
709
|
|
Net income (loss)
attributable to controlling interests
|
|
48,658
|
|
|
31,596
|
|
|
3,113
|
|
|
(4,698)
|
|
|
(4,106)
|
|
|
|
78,669
|
|
|
(15,023)
|
|
Dividends to
preferred shareholders
|
|
(1,705)
|
|
|
(1,705)
|
|
|
(1,706)
|
|
|
(1,705)
|
|
|
(1,705)
|
|
|
|
(6,821)
|
|
|
(6,821)
|
|
NET INCOME (LOSS)
AVAILABLE TO COMMON SHAREHOLDERS
|
|
$
|
46,953
|
|
|
$
|
29,891
|
|
|
$
|
1,407
|
|
|
$
|
(6,403)
|
|
|
$
|
(5,811)
|
|
|
|
$
|
71,848
|
|
|
$
|
(21,844)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data -
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share from continuing operations – basic
|
|
$
|
3.95
|
|
|
$
|
2.57
|
|
|
$
|
0.11
|
|
|
$
|
(0.54)
|
|
|
$
|
(0.49)
|
|
|
|
$
|
6.06
|
|
|
$
|
(2.93)
|
|
Earnings (loss) per
common share from discontinued operations – basic
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
1.10
|
|
Net earnings (loss)
per common share – basic
|
|
$
|
3.95
|
|
|
$
|
2.57
|
|
|
$
|
0.11
|
|
|
$
|
(0.54)
|
|
|
$
|
(0.49)
|
|
|
|
$
|
6.06
|
|
|
$
|
(1.83)
|
|
Per Share Data -
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share from continuing operations – diluted
|
|
$
|
3.89
|
|
|
$
|
2.54
|
|
|
$
|
0.11
|
|
|
$
|
(0.54)
|
|
|
$
|
(0.49)
|
|
|
|
$
|
6.00
|
|
|
$
|
(2.93)
|
|
Earnings (loss) per
common share from discontinued operations – diluted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
$
|
1.10
|
|
Net earnings (loss)
per common share – diluted
|
|
$
|
3.89
|
|
|
$
|
2.54
|
|
|
$
|
0.11
|
|
|
$
|
(0.54)
|
|
|
$
|
(0.49)
|
|
|
|
$
|
6.00
|
|
|
$
|
(1.83)
|
|
IRET
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
|
(in
thousands)
|
|
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Real estate
investments
|
|
|
|
|
|
|
|
|
|
|
Property
owned
|
|
$
|
1,643,078
|
|
|
$
|
1,720,352
|
|
|
$
|
1,663,539
|
|
|
$
|
1,673,158
|
|
|
$
|
1,627,636
|
|
Less accumulated
depreciation
|
|
(349,122)
|
|
|
(370,492)
|
|
|
(380,321)
|
|
|
(371,672)
|
|
|
(353,871)
|
|
|
|
1,293,956
|
|
|
1,349,860
|
|
|
1,283,218
|
|
|
1,301,486
|
|
|
1,273,765
|
|
Unimproved
land
|
|
1,376
|
|
|
1,376
|
|
|
1,746
|
|
|
2,252
|
|
|
5,301
|
|
Mortgage loans
receivable
|
|
16,140
|
|
|
10,140
|
|
|
10,140
|
|
|
10,260
|
|
|
10,410
|
|
Total real estate
investments
|
|
1,311,472
|
|
|
1,361,376
|
|
|
1,295,104
|
|
|
1,313,998
|
|
|
1,289,476
|
|
Cash and cash
equivalents
|
|
26,579
|
|
|
8,500
|
|
|
17,406
|
|
|
23,329
|
|
|
13,792
|
|
Restricted
cash
|
|
19,538
|
|
|
3,339
|
|
|
4,672
|
|
|
4,819
|
|
|
5,464
|
|
Other
assets
|
|
34,829
|
|
|
30,589
|
|
|
30,626
|
|
|
29,166
|
|
|
27,265
|
|
TOTAL
ASSETS
|
|
$
|
1,392,418
|
|
|
$
|
1,403,804
|
|
|
$
|
1,347,808
|
|
|
$
|
1,371,312
|
|
|
$
|
1,335,997
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY, AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
47,155
|
|
|
$
|
40,546
|
|
|
$
|
44,766
|
|
|
$
|
40,697
|
|
|
$
|
40,892
|
|
Revolving line of
credit
|
|
50,079
|
|
|
103,143
|
|
|
177,939
|
|
|
118,677
|
|
|
57,500
|
|
Notes payable, net of
loan costs
|
|
269,058
|
|
|
269,006
|
|
|
144,082
|
|
|
144,036
|
|
|
143,991
|
|
Mortgages payable,
net of loan costs
|
|
329,664
|
|
|
360,886
|
|
|
370,461
|
|
|
430,950
|
|
|
444,197
|
|
TOTAL
LIABILITIES
|
|
$
|
695,956
|
|
|
$
|
773,581
|
|
|
$
|
737,248
|
|
|
$
|
734,360
|
|
|
$
|
686,580
|
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE
NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE
ENTITIES
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,968
|
|
SERIES D PREFERRED
UNITS
|
|
16,560
|
|
|
16,560
|
|
|
16,560
|
|
|
16,560
|
|
|
—
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Series C Preferred
Shares of Beneficial Interest
|
|
99,456
|
|
|
99,456
|
|
|
99,456
|
|
|
99,456
|
|
|
99,456
|
|
Common Shares of
Beneficial Interest
|
|
917,400
|
|
|
886,598
|
|
|
888,541
|
|
|
895,381
|
|
|
899,234
|
|
Accumulated
distributions in excess of net income
|
|
(390,196)
|
|
|
(428,680)
|
|
|
(450,433)
|
|
|
(443,661)
|
|
|
(429,048)
|
|
Accumulated other
comprehensive income (loss)
|
|
(7,607)
|
|
|
(9,793)
|
|
|
(7,598)
|
|
|
(3,139)
|
|
|
(856)
|
|
Total shareholders'
equity
|
|
$
|
619,053
|
|
|
$
|
547,581
|
|
|
$
|
529,966
|
|
|
$
|
548,037
|
|
|
$
|
568,786
|
|
Noncontrolling
interests – Operating Partnership
|
|
55,284
|
|
|
60,169
|
|
|
57,902
|
|
|
66,060
|
|
|
67,916
|
|
Noncontrolling
interests – consolidated real estate entities
|
|
5,565
|
|
|
5,913
|
|
|
6,132
|
|
|
6,295
|
|
|
6,747
|
|
Total
equity
|
|
$
|
679,902
|
|
|
$
|
613,663
|
|
|
$
|
594,000
|
|
|
$
|
620,392
|
|
|
$
|
643,449
|
|
TOTAL LIABILITIES,
REDEEMABLE NONCONTROLLING INTERESTS, AND EQUITY
|
|
$
|
1,392,418
|
|
|
$
|
1,403,804
|
|
|
$
|
1,347,808
|
|
|
$
|
1,371,312
|
|
|
$
|
1,335,997
|
|
IRET
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(unaudited)
This release contains certain non-GAAP financial measures. The
non-GAAP measures should not be considered a substitute for
operating results determined in accordance with accounting
principles generally accepted in the
United States of America ("GAAP"). The definitions and
calculations of these non-GAAP measures, as calculated by us, may
not be comparable to non-GAAP measures reported by other REITs that
do not define each of the non-GAAP measures exactly as we do.
We provide certain information on a same-store and
non-same-store basis. Same-store apartment communities are
owned or in service for the entirety of the periods being compared,
and, in the case of development properties, have achieved a target
level of physical occupancy of 90%. On the first day of each
calendar year, we determine the composition of our same-store pool
for that year as well as adjust the previous year, which allows us
to evaluate full period-over-period operating comparisons for
existing apartment communities and their contribution to net
income. We believe that measuring performance on a same-store basis
is useful to investors because it enables evaluation of how a fixed
pool of our communities are performing year-over-year. We use this
measure to assess whether or not we have been successful in
increasing NOI, renewing the leases on existing residents,
controlling operating costs, and making prudent capital
improvements.
Reconciliation of Operating Income (Loss) to Net Operating
Income
Net operating income, or NOI, is a non-GAAP measure which we
define as total real estate revenues less property operating
expenses, including real estate taxes. We believe that NOI is
an important supplemental measure of operating performance for real
estate because it provides a measure of operations that is
unaffected by depreciation, amortization, financing, property
management overhead, casualty losses, and general and
administrative expenses. NOI does not represent cash
generated by operating activities in accordance with GAAP and
should not be considered an alternative to net income, net income
available for common shareholders, or cash flow from operating
activities as a measure of financial performance.
|
(in thousands, except percentages)
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months
Ended December 31,
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
2,466
|
|
|
$
|
1,551
|
|
|
$
|
915
|
|
|
59.0
|
%
|
|
|
$
|
11,417
|
|
|
$
|
(13,602)
|
|
|
$
|
25,019
|
|
|
(183.9)
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management
expenses
|
1,634
|
|
|
1,447
|
|
|
187
|
|
|
12.9
|
%
|
|
|
6,186
|
|
|
5,537
|
|
|
649
|
|
|
11.7
|
%
|
Casualty
loss
|
205
|
|
|
540
|
|
|
(335)
|
|
|
(62.0)
|
%
|
|
|
1,116
|
|
|
815
|
|
|
301
|
|
|
36.9
|
%
|
Depreciation and
amortization
|
18,972
|
|
|
18,812
|
|
|
160
|
|
|
0.9
|
%
|
|
|
74,271
|
|
|
77,624
|
|
|
(3,353)
|
|
|
(4.3)
|
%
|
Impairment
|
—
|
|
|
1,221
|
|
|
(1,221)
|
|
|
(100.0)
|
%
|
|
|
—
|
|
|
19,030
|
|
|
(19,030)
|
|
|
(100.0)
|
%
|
General and
administrative expenses
|
3,647
|
|
|
3,769
|
|
|
(122)
|
|
|
(3.2)
|
%
|
|
|
14,450
|
|
|
14,883
|
|
|
(433)
|
|
|
(2.9)
|
%
|
Net operating
income
|
$
|
26,924
|
|
|
$
|
27,340
|
|
|
$
|
(416)
|
|
|
(1.5)
|
%
|
|
|
$
|
107,440
|
|
|
$
|
104,287
|
|
|
$
|
3,153
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
$
|
34,303
|
|
|
$
|
33,374
|
|
|
$
|
929
|
|
|
2.8
|
%
|
|
|
$
|
135,939
|
|
|
$
|
131,149
|
|
|
$
|
4,790
|
|
|
3.7
|
%
|
Non-same-store
|
8,089
|
|
|
4,608
|
|
|
3,481
|
|
|
75.5
|
%
|
|
|
25,495
|
|
|
15,646
|
|
|
9,849
|
|
|
62.9
|
%
|
Other properties and
dispositions
|
3,385
|
|
|
7,748
|
|
|
(4,363)
|
|
|
(56.3)
|
%
|
|
|
24,321
|
|
|
33,573
|
|
|
(9,252)
|
|
|
(27.6)
|
%
|
Total
|
45,777
|
|
|
45,730
|
|
|
47
|
|
|
0.1
|
%
|
|
|
185,755
|
|
|
180,368
|
|
|
5,387
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses, including real estate taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
14,715
|
|
|
13,832
|
|
|
883
|
|
|
6.4
|
%
|
|
|
58,155
|
|
|
56,047
|
|
|
2,108
|
|
|
3.8
|
%
|
Non-same-store
|
2,704
|
|
|
1,404
|
|
|
1,300
|
|
|
92.6
|
%
|
|
|
9,031
|
|
|
5,518
|
|
|
3,513
|
|
|
63.7
|
%
|
Other properties and
dispositions
|
1,434
|
|
|
3,154
|
|
|
(1,720)
|
|
|
(54.5)
|
%
|
|
|
11,129
|
|
|
14,516
|
|
|
(3,387)
|
|
|
(23.3)
|
%
|
Total
|
18,853
|
|
|
18,390
|
|
|
463
|
|
|
2.5
|
%
|
|
|
78,315
|
|
|
76,081
|
|
|
2,234
|
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
19,588
|
|
|
19,542
|
|
|
46
|
|
|
0.2
|
%
|
|
|
77,784
|
|
|
75,102
|
|
|
2,682
|
|
|
3.6
|
%
|
Non-same-store
|
5,385
|
|
|
3,204
|
|
|
2,181
|
|
|
68.1
|
%
|
|
|
16,464
|
|
|
10,128
|
|
|
6,336
|
|
|
62.6
|
%
|
Other properties and
dispositions
|
1,951
|
|
|
4,594
|
|
|
(2,643)
|
|
|
(57.5)
|
%
|
|
|
13,192
|
|
|
19,057
|
|
|
(5,865)
|
|
|
(30.8)
|
%
|
Total
|
$
|
26,924
|
|
|
$
|
27,340
|
|
|
$
|
(416)
|
|
|
(1.5)
|
%
|
|
|
$
|
107,440
|
|
|
$
|
104,287
|
|
|
$
|
3,153
|
|
|
3.0
|
%
|
Same-Store Expense Comparison
|
(in thousands, except percentages)
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months
Ended December 31,
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Controllable
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation
|
$
|
3,921
|
|
|
$
|
3,731
|
|
|
$
|
190
|
|
|
5.1
|
%
|
|
|
$
|
15,267
|
|
|
$
|
15,555
|
|
|
$
|
(288)
|
|
|
(1.9)
|
%
|
Repairs and
maintenance
|
2,904
|
|
|
2,429
|
|
|
475
|
|
|
19.6
|
%
|
|
|
11,137
|
|
|
10,452
|
|
|
685
|
|
|
6.6
|
%
|
Utilities
|
2,411
|
|
|
2,364
|
|
|
47
|
|
|
2.0
|
%
|
|
|
9,923
|
|
|
9,756
|
|
|
167
|
|
|
1.7
|
%
|
Administrative and
marketing
|
771
|
|
|
743
|
|
|
28
|
|
|
3.8
|
%
|
|
|
3,024
|
|
|
2,891
|
|
|
133
|
|
|
4.6
|
%
|
Total
|
$
|
10,007
|
|
|
$
|
9,267
|
|
|
$
|
740
|
|
|
8.0
|
%
|
|
|
$
|
39,351
|
|
|
$
|
38,654
|
|
|
$
|
697
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controllable
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
$
|
3,639
|
|
|
$
|
3,766
|
|
|
$
|
(127)
|
|
|
(3.4)
|
%
|
|
|
$
|
15,116
|
|
|
$
|
14,853
|
|
|
$
|
263
|
|
|
1.8
|
%
|
Insurance
|
1,069
|
|
|
799
|
|
|
270
|
|
|
33.8
|
%
|
|
|
3,688
|
|
|
2,540
|
|
|
1,148
|
|
|
45.2
|
%
|
Total
|
4,708
|
|
|
4,565
|
|
|
143
|
|
|
3.1
|
%
|
|
|
18,804
|
|
|
17,393
|
|
|
1,411
|
|
|
8.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
14,715
|
|
|
$
|
13,832
|
|
|
$
|
883
|
|
|
6.4
|
%
|
|
|
$
|
58,155
|
|
|
$
|
56,047
|
|
|
$
|
2,108
|
|
|
3.8
|
%
|
Reconciliation of Net Income (Loss) Available to Common
Shareholders to Funds From Operations, Core Funds From Operations,
and Adjusted Funds From Operations
We use the definition of FFO adopted by the National Association
of Real Estate Investment Trusts, Inc. ("Nareit"). Nareit defines
FFO as net income or loss calculated in accordance with GAAP,
excluding:
- depreciation and amortization related to real estate;
- gains and losses from the sale of certain real estate assets;
and
- impairment write-downs of certain real estate assets and
investments in entities when the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity.
Due to the limitations of the FFO definition adopted by Nareit,
we have made certain interpretations in applying the definition. We
believe that all such interpretations not specifically provided for
in the Nareit definition are consistent with the definition.
Nareit's FFO White Paper 2018 Restatement clarified that impairment
write-downs of land related to a REIT's main business are excluded
from FFO, and a REIT has the option to exclude impairment
write-downs of assets that are incidental to the main business.
We believe that FFO, which is a standard supplemental measure
for equity real estate investment trusts, is helpful to investors
in understanding our operating performance, primarily because its
calculation excludes depreciation and amortization expense on real
estate assets, thereby providing an additional perspective on our
operating results. We believe that GAAP historical cost
depreciation of real estate assets is not correlated with changes
in the value of those assets, whose value does not diminish
predictably over time, as historical cost depreciation implies. The
exclusion in Nareit's definition of FFO of impairment write-downs
and gains and losses from the sale of real estate assets helps to
identify the operating results of the long-term assets that form
the base of our investments, and assists management and investors
in comparing those operating results between periods.
While FFO is widely used by us as a primary performance metric,
not all real estate companies use the same definition of FFO or
calculate FFO in the same way. Accordingly, FFO presented here is
not necessarily comparable to FFO presented by other real estate
companies. FFO should not be considered as an alternative to net
income or any other GAAP measurement of performance, but rather
should be considered as an additional, supplemental measure. FFO
also does not represent cash generated from operating activities in
accordance with GAAP, and is not necessarily indicative of
sufficient cash flow to fund all of our needs or our ability to
service indebtedness or make distributions.
Core Funds from Operations ("Core FFO") is FFO as adjusted for
non-routine items or items not considered core to our business
operations. By further adjusting for items that are not considered
part of our core business operations, we believe that Core FFO
provides investors with additional information to compare our core
operating and financial performance between periods. Core FFO
should not be considered as an alternative to net income as an
indication of financial performance, or as an alternative to cash
flows from operations as a measure of liquidity, nor is it
indicative of funds available to fund our cash needs, including our
ability to make distributions to shareholders. Core FFO is a
non-GAAP and non-standardized measure that may be calculated
differently by other REITs and that should not be considered a
substitute for operating results determined in accordance with
GAAP.
|
|
(in thousands,
except per share amounts)
|
|
|
Three Months Ended
|
|
|
Twelve Months
Ended
|
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/19
|
|
12/31/2018
|
|
|
12/31/2019
|
|
12/31/2018
|
Net (loss) income
available to common shareholders
|
|
$
|
46,953
|
|
|
$
|
29,891
|
|
|
$
|
1,407
|
|
|
$
|
(6,403)
|
|
|
$
|
(5,811)
|
|
|
|
$
|
71,848
|
|
|
$
|
(21,844)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests - Operating Partnership
|
|
4,202
|
|
|
3,145
|
|
|
148
|
|
|
(743)
|
|
|
(665)
|
|
|
|
6,752
|
|
|
(2,553)
|
|
Depreciation and
amortization
|
|
18,972
|
|
|
18,751
|
|
|
18,437
|
|
|
18,111
|
|
|
18,812
|
|
|
|
74,271
|
|
|
77,624
|
|
Less depreciation -
non real estate
|
|
(88)
|
|
|
(71)
|
|
|
(79)
|
|
|
(85)
|
|
|
(76)
|
|
|
|
(322)
|
|
|
(305)
|
|
Less depreciation -
partially owned entities
|
|
(454)
|
|
|
(452)
|
|
|
(474)
|
|
|
(678)
|
|
|
(680)
|
|
|
|
(2,059)
|
|
|
(2,795)
|
|
Impairment of real
estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,221
|
|
|
|
—
|
|
|
19,030
|
|
Gain on sale of real
estate
|
|
(57,850)
|
|
|
(39,105)
|
|
|
(615)
|
|
|
(54)
|
|
|
(612)
|
|
|
|
(97,624)
|
|
|
(25,245)
|
|
FFO applicable to
common shares and Units
|
|
$
|
11,735
|
|
|
$
|
12,159
|
|
|
$
|
18,824
|
|
|
$
|
10,148
|
|
|
$
|
12,189
|
|
|
|
$
|
52,866
|
|
|
$
|
43,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Core
FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casualty loss write
off
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
|
—
|
|
|
43
|
|
Loss on
extinguishment of debt
|
|
864
|
|
|
1,087
|
|
|
407
|
|
|
2
|
|
|
5
|
|
|
|
2,360
|
|
|
678
|
|
Gain on litigation
settlement
|
|
—
|
|
|
(300)
|
|
|
(6,286)
|
|
|
—
|
|
|
—
|
|
|
|
(6,586)
|
|
|
—
|
|
Severance and
transitions costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
811
|
|
Other miscellaneous
items
|
|
(113)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(113)
|
|
|
—
|
|
Core FFO
applicable to common shares and Units
|
|
$
|
12,486
|
|
|
$
|
12,946
|
|
|
$
|
12,945
|
|
|
$
|
10,150
|
|
|
$
|
12,237
|
|
|
|
$
|
48,527
|
|
|
$
|
45,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO applicable to
common shares and Units
|
|
$
|
11,735
|
|
|
$
|
12,159
|
|
|
$
|
18,824
|
|
|
$
|
10,148
|
|
|
$
|
12,189
|
|
|
|
$
|
52,866
|
|
|
$
|
43,912
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
57
|
|
|
—
|
|
|
|
537
|
|
|
—
|
|
FFO applicable to
common shares and Units - diluted
|
|
$
|
11,895
|
|
|
$
|
12,319
|
|
|
$
|
18,984
|
|
|
$
|
10,205
|
|
|
$
|
12,189
|
|
|
|
$
|
53,403
|
|
|
$
|
43,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO applicable
to common shares and Units
|
|
$
|
12,486
|
|
|
$
|
12,946
|
|
|
$
|
12,945
|
|
|
$
|
10,150
|
|
|
$
|
12,237
|
|
|
|
$
|
48,527
|
|
|
$
|
45,444
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
57
|
|
|
—
|
|
|
|
537
|
|
|
—
|
|
Core FFO
applicable to common shares and Units - diluted
|
|
$
|
12,646
|
|
|
$
|
13,106
|
|
|
$
|
13,105
|
|
|
$
|
10,207
|
|
|
$
|
12,237
|
|
|
|
$
|
49,064
|
|
|
$
|
45,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share and unit - diluted
|
|
$
|
3.89
|
|
|
$
|
2.54
|
|
|
$
|
0.12
|
|
|
$
|
(0.54)
|
|
|
$
|
(0.49)
|
|
|
|
$
|
6.00
|
|
|
$
|
(1.83)
|
|
FFO per share and
unit - diluted
|
|
$
|
0.90
|
|
|
$
|
0.93
|
|
|
$
|
1.45
|
|
|
$
|
0.77
|
|
|
$
|
0.92
|
|
|
|
$
|
4.05
|
|
|
$
|
3.29
|
|
Core FFO per share
and unit - diluted
|
|
$
|
0.96
|
|
|
$
|
0.99
|
|
|
$
|
1.00
|
|
|
$
|
0.77
|
|
|
$
|
0.92
|
|
|
|
$
|
3.72
|
|
|
$
|
3.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares and units - diluted
|
|
13,188
|
|
|
13,087
|
|
|
13,197
|
|
|
13,230
|
|
|
13,317
|
|
|
|
13,182
|
|
|
13,344
|
|
Reconciliation of Net Income (Loss) Available to Common
Shareholders to Adjusted EBITDA
Adjusted EBITDA is earnings before interest, taxes,
depreciation, amortization, gain/loss on sale of real estate and
other investments, impairment of real estate investments, gain/loss
on extinguishment of debt, gain on litigation settlement, and
gain/loss from involuntary conversion. We consider Adjusted EBITDA
to be an appropriate supplemental performance measure because it
permits investors to view income from operations without the effect
of depreciation, the cost of debt, or non-operating gains and
losses.
|
|
(in thousands)
|
|
|
Three Months Ended
|
|
|
Twelve
Months Ended
|
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
|
|
12/31/2019
|
|
12/31/2018
|
Net income (loss)
attributable to controlling interests
|
|
$
|
48,658
|
|
|
$
|
31,596
|
|
|
$
|
3,113
|
|
|
$
|
(4,698)
|
|
|
$
|
(4,106)
|
|
|
|
$
|
78,669
|
|
|
$
|
(15,023)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
57
|
|
|
—
|
|
|
|
537
|
|
|
—
|
|
Noncontrolling
interests – Operating Partnership
|
|
4,202
|
|
|
3,145
|
|
|
148
|
|
|
(743)
|
|
|
(665)
|
|
|
|
6,752
|
|
|
(2,553)
|
|
Income (loss) before
noncontrolling interests – Operating Partnership
|
|
53,020
|
|
|
34,901
|
|
|
3,421
|
|
|
(5,384)
|
|
|
(4,771)
|
|
|
|
85,958
|
|
|
(17,576)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
7,112
|
|
|
7,448
|
|
|
7,343
|
|
|
7,558
|
|
|
7,336
|
|
|
|
29,461
|
|
|
31,193
|
|
Loss on
extinguishment of debt
|
|
864
|
|
|
1,087
|
|
|
407
|
|
|
2
|
|
|
4
|
|
|
|
2,360
|
|
|
677
|
|
Depreciation/amortization related to real estate
investments
|
|
18,518
|
|
|
18,299
|
|
|
17,963
|
|
|
17,433
|
|
|
18,133
|
|
|
|
72,213
|
|
|
74,832
|
|
Impairment of real
estate investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,221
|
|
|
|
—
|
|
|
19,030
|
|
Interest
income
|
|
(415)
|
|
|
(402)
|
|
|
(402)
|
|
|
(407)
|
|
|
(465)
|
|
|
|
(1,626)
|
|
|
(1,933)
|
|
Gain (loss) on sale
of real estate and other investments
|
|
(57,850)
|
|
|
(39,105)
|
|
|
(615)
|
|
|
(54)
|
|
|
(611)
|
|
|
|
(97,624)
|
|
|
(25,244)
|
|
Gain on litigation
settlement
|
|
—
|
|
|
(300)
|
|
|
(6,286)
|
|
|
—
|
|
|
—
|
|
|
|
(6,586)
|
|
|
—
|
|
Other miscellaneous
items
|
|
(113)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(113)
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
21,136
|
|
|
$
|
21,928
|
|
|
$
|
21,831
|
|
|
$
|
19,148
|
|
|
$
|
20,847
|
|
|
|
$
|
84,043
|
|
|
$
|
80,979
|
|
IRET
|
DEBT
ANALYSIS
|
(in
thousands)
|
|
Debt Maturity
Schedule
|
Annual
Expirations
|
|
|
|
Future Maturities of Debt
|
|
|
Secured
Fixed
Debt
|
|
Unsecured
Fixed
Debt(1)
|
|
Unsecured
Variable
Debt
|
|
Total
Debt
|
|
% of
Total Debt
|
|
Weighted
Average
Interest Rate(2)
|
2020
|
|
$
|
9,533
|
|
|
$
|
—
|
|
|
$
|
79
|
|
|
$
|
9,612
|
|
|
1.5
|
%
|
|
4.84
|
%
|
2021
|
|
36,097
|
|
|
—
|
|
|
—
|
|
|
36,097
|
|
|
5.5
|
%
|
|
5.36
|
%
|
2022
|
|
34,449
|
|
|
50,000
|
|
|
—
|
|
|
84,449
|
|
|
13.0
|
%
|
|
3.80
|
%
|
2023
|
|
48,226
|
|
|
—
|
|
|
—
|
|
|
48,226
|
|
|
7.4
|
%
|
|
4.02
|
%
|
2024
|
|
—
|
|
|
70,000
|
|
|
—
|
|
|
70,000
|
|
|
10.7
|
%
|
|
3.68
|
%
|
Thereafter
|
|
203,071
|
|
|
200,000
|
|
|
—
|
|
|
403,071
|
|
|
61.9
|
%
|
|
3.90
|
%
|
Total debt
|
|
$
|
331,376
|
|
|
$
|
320,000
|
|
|
$
|
79
|
|
|
$
|
651,455
|
|
|
100.0
|
%
|
|
3.97
|
%
|
|
|
|
|
|
|
(1)
|
Term loans have
variable interest rates that are fixed with interest rate swaps and
$50.0 million of our variable interest, primary line of credit is
fixed with an interest rate swap.
|
(2)
|
Weighted average
interest rate of debt that matures during the year, including the
effect of interest rate swaps on the term loans and line of
credit.
|
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
Debt Balances
Outstanding(1)
|
|
|
|
|
|
|
|
|
|
|
Secured fixed
rate
|
|
$
|
331,376
|
|
|
$
|
362,731
|
|
|
$
|
371,951
|
|
|
$
|
432,588
|
|
|
$
|
445,974
|
|
Unsecured fixed rate
line of credit(2)
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
|
—
|
|
|
—
|
|
Secured line of
credit(3)
|
|
—
|
|
|
—
|
|
|
15,000
|
|
|
15,000
|
|
|
—
|
|
Unsecured variable
rate line of credit
|
|
79
|
|
|
53,143
|
|
|
112,939
|
|
|
103,677
|
|
|
57,500
|
|
Unsecured term
loans
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
Unsecured senior
notes
|
|
125,000
|
|
|
125,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Debt total
|
|
$
|
651,455
|
|
|
$
|
735,874
|
|
|
$
|
694,890
|
|
|
$
|
696,265
|
|
|
$
|
648,474
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Weighted
Average Interest Rates
|
|
|
|
|
|
|
|
|
|
|
Mortgage
debt
|
|
4.02
|
%
|
|
4.15
|
%
|
|
4.37
|
%
|
|
4.54
|
%
|
|
4.58
|
%
|
Lines of credit (rate
with swap)
|
|
3.52
|
%
|
|
3.73
|
%
|
|
3.91
|
%
|
|
3.89
|
%
|
|
3.72
|
%
|
Term loan (rate with
swap)
|
|
4.19
|
%
|
|
4.14
|
%
|
|
4.14
|
%
|
|
3.99
|
%
|
|
4.01
|
%
|
Senior
notes
|
|
3.78
|
%
|
|
3.78
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
(1)
|
Includes mortgages on
properties held for sale.
|
(2)
|
A portion of our
primary line of credit is fixed through an interest rate
swap.
|
(3)
|
Our revolving line of
credit consists primarily of unsecured borrowings. A portion of the
line was secured in connection with our acquisition of
SouthFork Townhomes, under an agreement which allowed us to
offer the seller tax protection upon purchase.
|
Debt Maturity by
Quarter for the Next Two Years
|
|
Year
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
2020
|
|
$
|
—
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
$
|
9,533
|
|
|
$
|
9,612
|
|
2021
|
|
15,078
|
|
|
2,043
|
|
|
18,976
|
|
|
—
|
|
|
36,097
|
|
|
|
|
|
|
|
|
|
|
|
$
|
45,709
|
|
IRET
|
CAPITAL
ANALYSIS
|
(in thousands,
except per share and unit amounts)
|
|
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
Equity
Capitalization
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
12,099
|
|
|
11,625
|
|
|
11,656
|
|
|
11,768
|
|
|
11,942
|
|
Operating partnership
units outstanding
|
|
1,058
|
|
|
1,223
|
|
|
1,224
|
|
|
1,365
|
|
|
1,368
|
|
Total common shares
and Units outstanding
|
|
13,157
|
|
|
12,848
|
|
|
12,880
|
|
|
13,133
|
|
|
13,310
|
|
Market price per
common share (closing price at end of period)
|
|
$
|
72.50
|
|
|
$
|
74.67
|
|
|
$
|
58.67
|
|
|
$
|
59.91
|
|
|
$
|
49.07
|
|
Equity
capitalization-common shares and Units
|
|
$
|
953,883
|
|
|
$
|
959,360
|
|
|
$
|
755,670
|
|
|
$
|
786,798
|
|
|
$
|
653,122
|
|
Recorded book value
of preferred shares
|
|
$
|
99,456
|
|
|
$
|
99,456
|
|
|
$
|
99,456
|
|
|
$
|
99,456
|
|
|
$
|
99,456
|
|
Total equity
capitalization
|
|
$
|
1,053,339
|
|
|
$
|
1,058,816
|
|
|
$
|
855,126
|
|
|
$
|
886,254
|
|
|
$
|
752,578
|
|
|
|
|
|
|
|
|
|
|
|
|
Series D Preferred
Units
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Capitalization
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
651,455
|
|
|
735,874
|
|
|
694,889
|
|
|
696,265
|
|
|
648,474
|
|
Total
capitalization
|
|
$
|
1,721,354
|
|
|
$
|
1,811,250
|
|
|
$
|
1,566,575
|
|
|
$
|
1,599,079
|
|
|
$
|
1,401,052
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt to total
capitalization(1)
|
|
37.8%
|
|
|
40.6%
|
|
|
44.4%
|
|
|
43.5%
|
|
|
46.3%
|
|
|
|
|
|
|
|
(1)
|
Debt to total market
capitalization is total debt from the balance sheet divided by the
sum of total debt from the balance sheet plus the market value of
common shares, operating partnership units, Series C preferred
shares, and Series D preferred units outstanding at the end of the
period.
|
|
|
Three Months Ended
|
|
|
Twelve Months
Ended
|
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
|
|
12/31/2019
|
|
12/31/2018
|
Debt service coverage
ratio(1)
|
|
2.39
|
x
|
|
2.26
|
x
|
|
2.24
|
x
|
|
1.86
|
x
|
|
2.07
|
x
|
|
|
2.18
|
x
|
|
1.77
|
x
|
Adjusted
EBITDA/Interest expense plus preferred distributions and principal
amortization
|
|
1.98
|
x
|
|
1.90
|
x
|
|
1.88
|
x
|
|
1.58
|
x
|
|
1.77
|
x
|
|
|
1.83
|
x
|
|
1.64
|
x
|
Net debt/Adjusted
EBITDA(4)
|
|
7.19
|
x
|
|
8.29
|
x
|
|
7.76
|
x
|
|
8.79
|
x
|
|
7.61
|
x
|
|
|
7.23
|
x
|
|
7.84
|
x
|
Net debt and
preferred equity/Adjusted EBITDA(4)
|
|
8.56
|
x
|
|
9.62
|
x
|
|
9.09
|
x
|
|
10.30
|
x
|
|
8.80
|
x
|
|
|
8.61
|
x
|
|
9.07
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares and
units outstanding at record date
|
|
13,157
|
|
|
12,848
|
|
|
12,914
|
|
|
13,135
|
|
|
13,276
|
|
|
|
13,157
|
|
|
13,276
|
|
Total common
distribution declared
|
|
$
|
9,210
|
|
|
$
|
8,994
|
|
|
$
|
9,039
|
|
|
$
|
9,195
|
|
|
$
|
9,293
|
|
|
|
$
|
36,438
|
|
|
$
|
37,372
|
|
Common distribution
per share and unit
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
Payout ratio (FFO per
diluted share and unit basis)(2)
|
|
77.8
|
%
|
|
75.3
|
%
|
|
48.3
|
%
|
|
90.9
|
%
|
|
76.1
|
%
|
|
|
69.1
|
%
|
|
85.1
|
%
|
Payout ratio (Core
FFO per diluted share and unit basis)(3)
|
|
72.9
|
%
|
|
70.7
|
%
|
|
70.0
|
%
|
|
90.9
|
%
|
|
76.1
|
%
|
|
|
75.3
|
%
|
|
82.1
|
%
|
|
|
|
|
|
|
(1)
|
Debt service coverage
ratio is computed by dividing Adjusted EBITDA by interest expense
and principal amortization.
|
(2)
|
Payout ratio (FFO per
diluted share and unit basis) is the ratio of the current quarterly
or annual distribution rate per common share and unit divided by
quarterly or annual FFO per diluted share and unit. This term is a
non-GAAP measure and should not be considered a substitute for
operating results determined in accordance with GAAP.
|
(3)
|
Payout ratio (Core
FFO per diluted share and unit basis) is the ratio of the current
quarterly or annual distribution rate per common share and unit
divided by quarterly or annual Core FFO per diluted share and unit.
This term is a non-GAAP measure and should not be considered a
substitute for operating results determined in accordance with
GAAP.
|
(4)
|
Net debt is the total
debt balance less cash and cash equivalents and net tax deferred
exchange proceeds (included within restricted cash). For the
quarterly period presented, adjusted EBITDA is annualized. Net debt
and adjusted EBITDA are non-GAAP measures and should not be
considered a substitute for operating results determined in
accordance with GAAP. Refer to the Adjusted EBITDA definition
included within the Non-GAAP Financial Measures and Reconciliations
section.
|
IRET
|
SAME-STORE FOURTH
QUARTER COMPARISONS
|
($ in
thousands)
|
|
|
|
Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
CY19Q4
|
|
CY18Q4
|
|
%
Change
|
|
CY19Q4
|
|
CY18Q4
|
|
%
Change
|
|
CY19Q4
|
|
CY18Q4
|
|
%
Change
|
Minneapolis,
MN
|
|
1,796
|
|
|
$
|
7,788
|
|
|
$
|
7,542
|
|
|
3.3
|
%
|
|
$
|
3,428
|
|
|
$
|
3,026
|
|
|
13.3
|
%
|
|
$
|
4,360
|
|
|
$
|
4,516
|
|
|
(3.5)
|
%
|
Rochester,
MN
|
|
1,711
|
|
|
6,385
|
|
|
6,227
|
|
|
2.5
|
%
|
|
2,571
|
|
|
2,367
|
|
|
8.6
|
%
|
|
3,814
|
|
|
3,860
|
|
|
(1.2)
|
%
|
Grand Forks,
ND
|
|
1,555
|
|
|
4,329
|
|
|
4,125
|
|
|
4.9
|
%
|
|
1,980
|
|
|
1,906
|
|
|
3.9
|
%
|
|
2,349
|
|
|
2,219
|
|
|
5.9
|
%
|
Omaha, NE
|
|
1,370
|
|
|
3,751
|
|
|
3,771
|
|
|
(0.5)
|
%
|
|
1,721
|
|
|
1,535
|
|
|
12.1
|
%
|
|
2,030
|
|
|
2,236
|
|
|
(9.2)
|
%
|
St. Cloud,
MN
|
|
1,190
|
|
|
3,550
|
|
|
3,473
|
|
|
2.2
|
%
|
|
1,719
|
|
|
1,484
|
|
|
15.8
|
%
|
|
1,831
|
|
|
1,989
|
|
|
(7.9)
|
%
|
Bismarck,
ND
|
|
845
|
|
|
2,755
|
|
|
2,595
|
|
|
6.2
|
%
|
|
982
|
|
|
1,128
|
|
|
(12.9)
|
%
|
|
1,773
|
|
|
1,467
|
|
|
20.9
|
%
|
Billings,
MT
|
|
749
|
|
|
2,182
|
|
|
2,115
|
|
|
3.2
|
%
|
|
816
|
|
|
822
|
|
|
(0.7)
|
%
|
|
1,366
|
|
|
1,293
|
|
|
5.6
|
%
|
Minot, ND
|
|
712
|
|
|
2,123
|
|
|
2,155
|
|
|
(1.5)
|
%
|
|
921
|
|
|
1,037
|
|
|
(11.2)
|
%
|
|
1,202
|
|
|
1,118
|
|
|
7.5
|
%
|
Rapid City,
SD
|
|
474
|
|
|
1,440
|
|
|
1,371
|
|
|
5.0
|
%
|
|
577
|
|
|
527
|
|
|
9.5
|
%
|
|
863
|
|
|
844
|
|
|
2.3
|
%
|
Same-Store
Total
|
|
10,402
|
|
|
$
|
34,303
|
|
|
$
|
33,374
|
|
|
2.8
|
%
|
|
$
|
14,715
|
|
|
$
|
13,832
|
|
|
6.4
|
%
|
|
$
|
19,588
|
|
|
$
|
19,542
|
|
|
0.2
|
%
|
|
|
% of NOI
|
|
Weighted Average
Occupancy (1)
|
|
Weighted Average
Monthly
Rental Rate (2)
|
|
Weighted Average
Monthly
Revenue per Occupied Home (3)
|
Regions
|
|
CY19Q4
|
|
CY18Q4
|
|
Growth
|
|
CY19Q4
|
|
CY18Q4
|
|
%
Change
|
|
CY19Q4
|
|
CY18Q4
|
|
%
Change
|
Minneapolis,
MN
|
|
22.3
|
%
|
|
91.9
|
%
|
|
92.7
|
%
|
|
(0.8)
|
%
|
|
$
|
1,467
|
|
|
$
|
1,418
|
|
|
3.5
|
%
|
|
$
|
1,573
|
|
|
$
|
1,511
|
|
|
4.1
|
%
|
Rochester,
MN
|
|
19.5
|
%
|
|
94.5
|
%
|
|
95.1
|
%
|
|
(0.6)
|
%
|
|
1,251
|
|
|
1,212
|
|
|
3.2
|
%
|
|
1,316
|
|
|
1,276
|
|
|
3.1
|
%
|
Grand Forks,
ND
|
|
12.0
|
%
|
|
94.8
|
%
|
|
91.8
|
%
|
|
3.0
|
%
|
|
903
|
|
|
913
|
|
|
(1.1)
|
%
|
|
978
|
|
|
964
|
|
|
1.9
|
%
|
Omaha, NE
|
|
10.4
|
%
|
|
93.5
|
%
|
|
95.8
|
%
|
|
(2.3)
|
%
|
|
897
|
|
|
876
|
|
|
2.4
|
%
|
|
977
|
|
|
958
|
|
|
1.8
|
%
|
St. Cloud,
MN
|
|
9.3
|
%
|
|
94.0
|
%
|
|
95.2
|
%
|
|
(1.2)
|
%
|
|
950
|
|
|
945
|
|
|
0.5
|
%
|
|
1,058
|
|
|
1,021
|
|
|
3.4
|
%
|
Bismarck,
ND
|
|
9.0
|
%
|
|
96.4
|
%
|
|
94.0
|
%
|
|
2.4
|
%
|
|
1,045
|
|
|
1,035
|
|
|
1.0
|
%
|
|
1,127
|
|
|
1,090
|
|
|
3.8
|
%
|
Billings,
MT
|
|
7.0
|
%
|
|
95.4
|
%
|
|
96.5
|
%
|
|
(1.1)
|
%
|
|
935
|
|
|
906
|
|
|
3.2
|
%
|
|
1,017
|
|
|
976
|
|
|
4.3
|
%
|
Minot, ND
|
|
6.1
|
%
|
|
94.3
|
%
|
|
96.4
|
%
|
|
(2.1)
|
%
|
|
997
|
|
|
1,001
|
|
|
(0.4)
|
%
|
|
1,054
|
|
|
1,046
|
|
|
0.6
|
%
|
Rapid City,
SD
|
|
4.4
|
%
|
|
96.2
|
%
|
|
96.7
|
%
|
|
(0.5)
|
%
|
|
961
|
|
|
933
|
|
|
3.0
|
%
|
|
1,052
|
|
|
996
|
|
|
5.5
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.0
|
%
|
|
94.3
|
%
|
|
(0.3)
|
%
|
|
$
|
1,085
|
|
|
$
|
1,064
|
|
|
2.0
|
%
|
|
$
|
1,169
|
|
|
$
|
1,134
|
|
|
3.1
|
%
|
|
|
|
|
|
|
(1)
|
Weighted average
occupancy is defined as the percentage resulting from dividing
actual rental revenue by scheduled rent.
|
(2)
|
Weighted average
monthly rental rate is scheduled rental revenue divided by the
total number of homes. Scheduled rental revenue represents the
value of all homes, with occupied homes valued at contractual rates
pursuant to leases and vacant homes valued at estimated market
rents. When calculating actual rents for occupied homes and market
rents for vacant homes, delinquencies and concessions are not taken
into account. The currently offered effective rates on new
leases at the community are used as the starting point in
determination of the market rates of vacant homes.
|
(3)
|
Weighted average
monthly revenue per occupied home is defined as total rental
revenues divided by the weighted average occupied apartment units
for the period.
|
IRET
|
SAME-STORE SEQUENTIAL
QUARTER COMPARISONS
|
($ in
thousands)
|
|
|
|
Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
CY19Q4
|
|
CY19Q3
|
|
%
Change
|
|
CY19Q4
|
|
CY19Q3
|
|
%
Change
|
|
CY19Q4
|
|
CY19Q3
|
|
%
Change
|
Minneapolis,
MN
|
|
1,796
|
|
|
$
|
7,788
|
|
|
$
|
7,773
|
|
|
0.2
|
%
|
|
$
|
3,428
|
|
|
$
|
3,360
|
|
|
2.0
|
%
|
|
$
|
4,360
|
|
|
$
|
4,413
|
|
|
(1.2)
|
%
|
Rochester,
MN
|
|
1,711
|
|
|
6,385
|
|
|
6,446
|
|
|
(0.9)
|
%
|
|
2,571
|
|
|
2,386
|
|
|
7.8
|
%
|
|
3,814
|
|
|
4,060
|
|
|
(6.1)
|
%
|
Grand Forks,
ND
|
|
1,555
|
|
|
4,329
|
|
|
4,287
|
|
|
1.0
|
%
|
|
1,980
|
|
|
1,882
|
|
|
5.2
|
%
|
|
2,349
|
|
|
2,405
|
|
|
(2.3)
|
%
|
Omaha, NE
|
|
1,370
|
|
|
3,751
|
|
|
3,738
|
|
|
0.3
|
%
|
|
1,721
|
|
|
1,740
|
|
|
(1.1)
|
%
|
|
2,030
|
|
|
1,998
|
|
|
1.6
|
%
|
St. Cloud,
MN
|
|
1,190
|
|
|
3,550
|
|
|
3,517
|
|
|
0.9
|
%
|
|
1,719
|
|
|
1,557
|
|
|
10.4
|
%
|
|
1,831
|
|
|
1,960
|
|
|
(6.6)
|
%
|
Bismarck,
ND
|
|
845
|
|
|
2,755
|
|
|
2,707
|
|
|
1.8
|
%
|
|
982
|
|
|
1,069
|
|
|
(8.1)
|
%
|
|
1,773
|
|
|
1,638
|
|
|
8.2
|
%
|
Billings,
MT
|
|
749
|
|
|
2,182
|
|
|
2,144
|
|
|
1.8
|
%
|
|
816
|
|
|
882
|
|
|
(7.5)
|
%
|
|
1,366
|
|
|
1,262
|
|
|
8.2
|
%
|
Minot, ND
|
|
712
|
|
|
2,123
|
|
|
2,117
|
|
|
0.3
|
%
|
|
921
|
|
|
1,035
|
|
|
(11.0)
|
%
|
|
1,202
|
|
|
1,082
|
|
|
11.1
|
%
|
Rapid City,
SD
|
|
474
|
|
|
1,440
|
|
|
1,424
|
|
|
1.1
|
%
|
|
577
|
|
|
574
|
|
|
0.5
|
%
|
|
863
|
|
|
850
|
|
|
1.5
|
%
|
Same-Store
Total
|
|
10,402
|
|
|
$
|
34,303
|
|
|
$
|
34,153
|
|
|
0.4
|
%
|
|
$
|
14,715
|
|
|
$
|
14,485
|
|
|
1.6
|
%
|
|
$
|
19,588
|
|
|
$
|
19,668
|
|
|
(0.4)
|
%
|
|
|
% of NOI
|
|
Weighted Average
Occupancy
|
|
Weighted Average
Monthly
Rental Rate
|
|
Weighted Average
Monthly
Revenue per Occupied Home
|
Regions
|
|
CY19Q4
|
|
CY19Q3
|
|
Growth
|
|
CY19Q4
|
|
CY19Q3
|
|
%
Change
|
|
CY19Q4
|
|
CY19Q3
|
|
%
Change
|
Minneapolis,
MN
|
|
22.3
|
%
|
|
91.9
|
%
|
|
90.8
|
%
|
|
1.1
|
%
|
|
$
|
1,467
|
|
|
$
|
1,478
|
|
|
(0.7)
|
%
|
|
$
|
1,573
|
|
|
$
|
1,590
|
|
|
(0.9)
|
%
|
Rochester,
MN
|
|
19.5
|
%
|
|
94.5
|
%
|
|
94.6
|
%
|
|
(0.1)
|
%
|
|
1,251
|
|
|
1,257
|
|
|
(0.5)
|
%
|
|
1,316
|
|
|
1,327
|
|
|
(0.8)
|
%
|
Grand Forks,
ND
|
|
12.0
|
%
|
|
94.8
|
%
|
|
94.1
|
%
|
|
0.7
|
%
|
|
903
|
|
|
908
|
|
|
(0.6)
|
%
|
|
978
|
|
|
977
|
|
|
0.3
|
%
|
Omaha, NE
|
|
10.4
|
%
|
|
93.5
|
%
|
|
93.0
|
%
|
|
0.5
|
%
|
|
897
|
|
|
900
|
|
|
(0.3)
|
%
|
|
977
|
|
|
977
|
|
|
(0.2)
|
%
|
St. Cloud,
MN
|
|
9.3
|
%
|
|
94.0
|
%
|
|
93.8
|
%
|
|
0.2
|
%
|
|
950
|
|
|
959
|
|
|
(0.9)
|
%
|
|
1,058
|
|
|
1,050
|
|
|
0.7
|
%
|
Bismarck,
ND
|
|
9.0
|
%
|
|
96.4
|
%
|
|
93.8
|
%
|
|
2.6
|
%
|
|
1,045
|
|
|
1,055
|
|
|
(0.9)
|
%
|
|
1,127
|
|
|
1,138
|
|
|
(0.8)
|
%
|
Billings,
MT
|
|
7.0
|
%
|
|
95.4
|
%
|
|
95.0
|
%
|
|
0.4
|
%
|
|
935
|
|
|
941
|
|
|
(0.6)
|
%
|
|
1,017
|
|
|
1,004
|
|
|
1.4
|
%
|
Minot, ND
|
|
6.1
|
%
|
|
94.3
|
%
|
|
93.9
|
%
|
|
0.4
|
%
|
|
997
|
|
|
999
|
|
|
(0.2)
|
%
|
|
1,054
|
|
|
1,055
|
|
|
(0.1)
|
%
|
Rapid City,
SD
|
|
4.4
|
%
|
|
96.2
|
%
|
|
96.1
|
%
|
|
0.1
|
%
|
|
961
|
|
|
963
|
|
|
(0.2)
|
%
|
|
1,052
|
|
|
1,042
|
|
|
1.0
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.0
|
%
|
|
93.4
|
%
|
|
0.6
|
%
|
|
$
|
1,085
|
|
|
$
|
1,092
|
|
|
(0.6)
|
%
|
|
$
|
1,169
|
|
|
$
|
1,172
|
|
|
(0.2)
|
%
|
IRET
|
SAME-STORE
YEAR-TO-DATE COMPARISONS
|
($ in
thousands)
|
|
|
|
Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
CY19
|
|
CY18
|
|
%
Change
|
|
CY19
|
|
CY18
|
|
%
Change
|
|
CY19
|
|
CY18
|
|
%
Change
|
Minneapolis,
MN
|
|
1,796
|
|
|
$
|
31,086
|
|
|
$
|
29,428
|
|
|
5.6
|
%
|
|
$
|
13,108
|
|
|
$
|
12,010
|
|
|
9.1
|
%
|
|
$
|
17,978
|
|
|
$
|
17,418
|
|
|
3.2
|
%
|
Rochester,
MN
|
|
1,711
|
|
|
25,345
|
|
|
24,382
|
|
|
3.9
|
%
|
|
9,861
|
|
|
9,686
|
|
|
1.8
|
%
|
|
15,484
|
|
|
14,696
|
|
|
5.4
|
%
|
Grand Forks,
ND
|
|
1,555
|
|
|
16,975
|
|
|
16,691
|
|
|
1.7
|
%
|
|
7,937
|
|
|
7,749
|
|
|
2.4
|
%
|
|
9,038
|
|
|
8,942
|
|
|
1.1
|
%
|
Omaha, NE
|
|
1,370
|
|
|
14,949
|
|
|
14,799
|
|
|
1.0
|
%
|
|
6,870
|
|
|
6,452
|
|
|
6.5
|
%
|
|
8,079
|
|
|
8,347
|
|
|
(3.2)
|
%
|
St. Cloud,
MN
|
|
1,190
|
|
|
14,127
|
|
|
13,563
|
|
|
4.2
|
%
|
|
6,609
|
|
|
6,320
|
|
|
4.6
|
%
|
|
7,518
|
|
|
7,243
|
|
|
3.8
|
%
|
Bismarck,
ND
|
|
845
|
|
|
10,797
|
|
|
10,418
|
|
|
3.6
|
%
|
|
4,214
|
|
|
4,301
|
|
|
(2.0)
|
%
|
|
6,583
|
|
|
6,117
|
|
|
7.6
|
%
|
Billings,
MT
|
|
749
|
|
|
8,555
|
|
|
8,125
|
|
|
5.3
|
%
|
|
3,273
|
|
|
3,063
|
|
|
6.9
|
%
|
|
5,282
|
|
|
5,062
|
|
|
4.3
|
%
|
Minot, ND
|
|
712
|
|
|
8,503
|
|
|
8,367
|
|
|
1.6
|
%
|
|
3,999
|
|
|
4,215
|
|
|
(5.1)
|
%
|
|
4,504
|
|
|
4,152
|
|
|
8.5
|
%
|
Rapid City,
SD
|
|
474
|
|
|
5,602
|
|
|
5,376
|
|
|
4.2
|
%
|
|
2,284
|
|
|
2,251
|
|
|
1.5
|
%
|
|
3,318
|
|
|
3,125
|
|
|
6.2
|
%
|
Same-Store
Total
|
|
10,402
|
|
|
$
|
135,939
|
|
|
$
|
131,149
|
|
|
3.7
|
%
|
|
$
|
58,155
|
|
|
$
|
56,047
|
|
|
3.8
|
%
|
|
$
|
77,784
|
|
|
$
|
75,102
|
|
|
3.6
|
%
|
|
|
% of NOI
|
|
Weighted Average
Occupancy
|
|
Weighted Average
Monthly
Rental Rate
|
|
Weighted Average
Monthly
Revenue per Occupied Home
|
Regions
|
|
CY19
|
|
CY18
|
|
Growth
|
|
CY19
|
|
CY18
|
|
%
Change
|
|
CY19
|
|
CY18
|
|
%
Change
|
Minneapolis,
MN
|
|
23.1
|
%
|
|
92.7
|
%
|
|
91.8
|
%
|
|
0.9
|
%
|
|
$
|
1,448
|
|
|
$
|
1,401
|
|
|
3.4
|
%
|
|
$
|
1,556
|
|
|
$
|
1,488
|
|
|
4.7
|
%
|
Rochester,
MN
|
|
19.9
|
%
|
|
95.2
|
%
|
|
93.9
|
%
|
|
1.3
|
%
|
|
1,237
|
|
|
1,217
|
|
|
1.6
|
%
|
|
1,296
|
|
|
1,265
|
|
|
2.7
|
%
|
Grand Forks,
ND
|
|
11.6
|
%
|
|
94.1
|
%
|
|
93.0
|
%
|
|
1.1
|
%
|
|
906
|
|
|
915
|
|
|
(1.0)
|
%
|
|
967
|
|
|
962
|
|
|
0.6
|
%
|
Omaha, NE
|
|
10.4
|
%
|
|
93.8
|
%
|
|
95.0
|
%
|
|
(1.2)
|
%
|
|
889
|
|
|
870
|
|
|
2.2
|
%
|
|
970
|
|
|
947
|
|
|
2.2
|
%
|
St. Cloud,
MN
|
|
9.7
|
%
|
|
94.7
|
%
|
|
94.5
|
%
|
|
0.2
|
%
|
|
950
|
|
|
929
|
|
|
2.3
|
%
|
|
1,044
|
|
|
1,005
|
|
|
4.0
|
%
|
Bismarck,
ND
|
|
8.5
|
%
|
|
95.2
|
%
|
|
93.9
|
%
|
|
1.3
|
%
|
|
1,043
|
|
|
1,044
|
|
|
(0.1)
|
%
|
|
1,118
|
|
|
1,094
|
|
|
2.3
|
%
|
Billings,
MT
|
|
6.8
|
%
|
|
95.6
|
%
|
|
93.2
|
%
|
|
2.4
|
%
|
|
926
|
|
|
911
|
|
|
1.6
|
%
|
|
996
|
|
|
970
|
|
|
2.9
|
%
|
Minot, ND
|
|
5.8
|
%
|
|
94.8
|
%
|
|
94.9
|
%
|
|
(0.1)
|
%
|
|
997
|
|
|
1,002
|
|
|
(0.5)
|
%
|
|
1,050
|
|
|
1,032
|
|
|
1.7
|
%
|
Rapid City,
SD
|
|
4.2
|
%
|
|
96.1
|
%
|
|
95.6
|
%
|
|
0.5
|
%
|
|
950
|
|
|
922
|
|
|
3.0
|
%
|
|
1,025
|
|
|
988
|
|
|
3.7
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.3
|
%
|
|
93.6
|
%
|
|
0.7
|
%
|
|
$
|
1,078
|
|
|
$
|
1,061
|
|
|
1.6
|
%
|
|
$
|
1,155
|
|
|
$
|
1,123
|
|
|
3.0
|
%
|
IRET
|
PORTFOLIO SUMMARY
(1)
|
|
|
|
Three Months
Ended
|
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
Number of
Units
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
10,402
|
|
|
11,785
|
|
|
12,848
|
|
|
12,848
|
|
|
12,847
|
|
Non-Same-Store
|
|
1,551
|
|
|
1,551
|
|
|
1,127
|
|
|
1,127
|
|
|
855
|
|
All
Properties
|
|
11,953
|
|
|
13,336
|
|
|
13,975
|
|
|
13,975
|
|
|
13,702
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Scheduled
Rent(2) per Unit
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
1,085
|
|
|
$
|
1,062
|
|
|
$
|
1,028
|
|
|
$
|
1,013
|
|
|
$
|
1,018
|
|
Non-Same-Store
|
|
1,722
|
|
|
1,742
|
|
|
1,692
|
|
|
1,772
|
|
|
1,797
|
|
All
Properties
|
|
$
|
1,168
|
|
|
$
|
1,123
|
|
|
$
|
1,081
|
|
|
$
|
1,064
|
|
|
$
|
1,066
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue per
Occupied Home(3)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
1,169
|
|
|
$
|
1,141
|
|
|
$
|
1,101
|
|
|
$
|
1,075
|
|
|
$
|
1,082
|
|
Non-Same-Store
|
|
1,869
|
|
|
1,887
|
|
|
1,848
|
|
|
1,943
|
|
|
1,939
|
|
All
Properties
|
|
$
|
1,260
|
|
|
$
|
1,210
|
|
|
$
|
1,161
|
|
|
$
|
1,134
|
|
|
$
|
1,136
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Occupancy(4)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
94.0
|
%
|
|
93.3
|
%
|
|
94.3
|
%
|
|
95.6
|
%
|
|
94.4
|
%
|
Non-Same-Store
|
|
93.0
|
%
|
|
94.2
|
%
|
|
94.8
|
%
|
|
94.9
|
%
|
|
92.7
|
%
|
All
Properties
|
|
93.8
|
%
|
|
93.4
|
%
|
|
94.4
|
%
|
|
95.5
|
%
|
|
94.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses as
a % of Scheduled Rent
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
43.5
|
%
|
|
43.0
|
%
|
|
42.8
|
%
|
|
45.6
|
%
|
|
42.4
|
%
|
Non-Same-Store
|
|
33.8
|
%
|
|
38.1
|
%
|
|
37.4
|
%
|
|
37.6
|
%
|
|
30.5
|
%
|
All
Properties
|
|
41.6
|
%
|
|
42.3
|
%
|
|
42.2
|
%
|
|
44.7
|
%
|
|
41.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Expenditures per Home – Same-Store
|
|
$
|
427
|
|
|
$
|
178
|
|
|
$
|
192
|
|
|
$
|
80
|
|
|
$
|
254
|
|
|
|
|
|
|
|
(1)
|
Previously reported
amounts are not revised for changes in the composition of the
same-store properties pool.
|
(2)
|
Scheduled rent
represents the value of all homes, with occupied homes valued at
contractual rates pursuant to leases and vacant homes valued at
estimated market rents. When calculating actual rents for occupied
homes and market rents for vacant homes, delinquencies and
concessions are not taken into account. Market rates are determined
using the currently offered effective rates on new leases at the
community and are used as the starting point in determination of
the market rates of vacant homes. Average scheduled rent is
scheduled rent divided by the total number of homes.
|
(3)
|
Total revenues
divided by the weighted average occupied homes for the
period.
|
(4)
|
Weighted average
occupancy is the percentage resulting from dividing actual rental
revenue by scheduled rent. We believe that weighted average
occupancy is a meaningful measure of occupancy because it considers
the value of each vacant unit at its estimated market rate.
Weighted average occupancy may not completely reflect short-term
trends in physical occupancy, and our calculation of weighted
average occupancy may not be comparable to that disclosed by other
real estate companies.
|
IRET
|
CAPITAL
EXPENDITURES
|
($ in thousands,
except per home amounts)
|
|
|
|
Three Months
Ended
|
|
|
12/31/2019
|
|
12/31/2018
|
Total Multifamily
Same-Store Homes
|
|
10,402
|
|
|
10,402
|
|
|
|
|
|
|
Turnover
|
|
$
|
852
|
|
|
$
|
859
|
|
Furniture &
Equipment
|
|
110
|
|
|
142
|
|
Building -
Interior
|
|
138
|
|
|
249
|
|
Building -
Exterior
|
|
2,370
|
|
|
1,220
|
|
Landscaping &
Grounds
|
|
973
|
|
|
303
|
|
Capital
Expenditures
|
|
$
|
4,443
|
|
|
$
|
2,773
|
|
CapEx per
Home
|
|
$
|
427
|
|
|
$
|
267
|
|
|
|
|
|
|
Value Add
|
|
$
|
1,713
|
|
|
$
|
305
|
|
Total Capital
Spend
|
|
$
|
6,156
|
|
|
$
|
3,078
|
|
Total Capital
Spend per Home
|
|
$
|
592
|
|
|
$
|
296
|
|
|
|
|
|
|
All Properties -
Weighted Average Homes
|
|
12,599
|
|
|
13,702
|
|
|
|
|
|
|
Capital
Expenditures
|
|
$
|
4,939
|
|
|
$
|
3,810
|
|
CapEx per
Home
|
|
392
|
|
|
278
|
|
|
|
|
|
|
Value Add
|
|
2,014
|
|
|
316
|
|
Acquisition
Capital
|
|
1,814
|
|
|
$
|
62
|
|
Total Capital
Spend
|
|
$
|
8,767
|
|
|
$
|
4,188
|
|
Total Capital Spend
per Home
|
|
$
|
696
|
|
|
$
|
306
|
|
|
|
|
Twelve Months
Ended
|
|
|
12/31/2019
|
|
12/31/2018
|
Total Multifamily
Same-Store Homes
|
|
10,402
|
|
|
10,402
|
|
|
|
|
|
|
Turnover
|
|
$
|
3,140
|
|
|
$
|
3,558
|
|
Furniture &
Equipment
|
|
294
|
|
|
324
|
|
Building -
Interior
|
|
306
|
|
|
515
|
|
Building -
Exterior
|
|
3,466
|
|
|
3,073
|
|
Landscaping &
Grounds
|
|
1,854
|
|
|
1,109
|
|
Capital
Expenditures
|
|
$
|
9,060
|
|
|
$
|
8,579
|
|
CapEx per
Home
|
|
$
|
871
|
|
|
$
|
825
|
|
|
|
|
|
|
Value Add
|
|
$
|
4,375
|
|
|
$
|
1,836
|
|
Total Capital
Spend
|
|
$
|
13,435
|
|
|
$
|
10,415
|
|
Total Capital
Spend per Home
|
|
$
|
1,292
|
|
|
$
|
1,001
|
|
|
|
|
|
|
All Properties -
Weighted Average Homes
|
|
13,552
|
|
|
13,875
|
|
|
|
|
|
|
Capital
Expenditures
|
|
$
|
11,128
|
|
|
$
|
11,554
|
|
CapEx per
Home
|
|
821
|
|
|
833
|
|
|
|
|
|
|
Value Add
|
|
5,011
|
|
|
1,882
|
|
Acquisition
Capital
|
|
3,713
|
|
|
1,749
|
|
Total Capital
Spend
|
|
$
|
19,852
|
|
|
$
|
15,185
|
|
Total Capital Spend
per Home
|
|
$
|
1,465
|
|
|
$
|
1,094
|
|
IRET
|
2020 Financial
Outlook
|
($ in thousands,
except per share amounts)
|
|
We are providing
guidance for 2020.
|
|
|
12 Months
Ended
|
|
2020 Full-Year
Guidance Range
|
|
December 31,
2019
|
|
Low
|
|
High
|
|
Actuals
|
|
Amount
|
|
Amount
|
Same-store growth
(1)
|
|
|
|
|
|
Revenue
|
$
|
155,414
|
|
|
2.50
|
%
|
|
4.00
|
%
|
|
|
|
|
|
|
Controllable
expenses
|
$
|
43,670
|
|
|
1.50
|
%
|
|
3.00
|
%
|
Non-controllable
expenses
|
$
|
21,229
|
|
|
10.50
|
%
|
|
12.50
|
%
|
Total
Expenses
|
$
|
64,899
|
|
|
4.50
|
%
|
|
6.00
|
%
|
Same-store NOI
(1)
|
$
|
90,515
|
|
|
1.00
|
%
|
|
3.00
|
%
|
|
|
|
|
|
|
Components of
NOI
|
|
|
|
|
|
Same-store NOI
(1)
|
$
|
90,515
|
|
|
$
|
91,420
|
|
|
$
|
93,230
|
|
Non-same-store NOI
(1)
|
$
|
3,733
|
|
|
$
|
8,375
|
|
|
$
|
8,670
|
|
Other Commercial NOI
(1)
|
$
|
2,357
|
|
|
$
|
2,605
|
|
|
$
|
2,800
|
|
Other Sold NOI
(1)
|
$
|
10,835
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
Total NOI
|
$
|
107,440
|
|
|
$
|
102,400
|
|
|
$
|
104,700
|
|
|
|
|
|
|
|
Accretion from
investments
|
—
|
|
|
1,450
|
|
|
1,550
|
|
|
|
|
|
|
|
Interest
expense
|
$
|
(30,537)
|
|
|
(27,700)
|
|
|
(27,300)
|
|
Preferred
dividends
|
(6,821)
|
|
|
(6,800)
|
|
|
(6,800)
|
|
|
|
|
|
|
|
Recurring income
and expenses
|
|
|
|
|
|
Interest and other
income
|
$
|
1,914
|
|
|
2,050
|
|
|
2,150
|
|
General and
administrative
|
(14,384)
|
|
|
(14,650)
|
|
|
(14,350)
|
|
Property management
expenses
|
(6,186)
|
|
|
(6,725)
|
|
|
(6,475)
|
|
Casualty
losses
|
(1,116)
|
|
|
(1,400)
|
|
|
(1,150)
|
|
Non-real estate
depreciation and amortization
|
(322)
|
|
|
(300)
|
|
|
(300)
|
|
Non-controlling
interest
|
(924)
|
|
|
(1,125)
|
|
|
(1,075)
|
|
Total recurring
income and expenses
|
$
|
(21,018)
|
|
|
(22,150)
|
|
|
$
|
(21,200)
|
|
|
|
|
|
|
|
FFO
|
$
|
53,403
|
|
|
$
|
47,200
|
|
|
$
|
50,950
|
|
FFO per diluted
share
|
$
|
4.05
|
|
|
$
|
3.52
|
|
|
$
|
3.80
|
|
|
|
|
|
|
|
Non-core income
and expenses
|
|
|
|
|
|
Gain (loss) on early
retirement of debt, net
|
$
|
(2,360)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Gain (loss) on
litigation settlement
|
6,586
|
|
|
—
|
|
|
—
|
|
Other miscellaneous
items
|
113
|
|
|
—
|
|
|
—
|
|
Total non-core income
and expenses
|
$
|
4,339
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
Core
FFO
|
$
|
49,064
|
|
|
$
|
47,200
|
|
|
$
|
50,950
|
|
Core FFO per
diluted share
|
$
|
3.72
|
|
|
$
|
3.52
|
|
|
$
|
3.80
|
|
|
|
|
|
|
|
EPS -
Diluted
|
$
|
6.00
|
|
|
$
|
(1.35)
|
|
|
$
|
(1.07)
|
|
Weighted average
shares outstanding - diluted
|
13,182
|
|
|
13,410
|
|
|
13,410
|
|
|
|
|
(1)
|
Amounts for the year
ended December 31, 2019 reflect the 2020 same-store
pool.
|
|
|
|
Additional
assumptions:
|
|
• Same-store
capital expenditures of $825 per home to $900 per home
|
|
• Value-add
expenditures of $10.0 million to $15.0 million
|
|
• Investments
of $66.0 million to $72.0 million
|
Reconciliation of Net Income (Loss) Available to Common
Shareholders to FFO and Core FFO
The following table presents reconciliations of Net income
(loss) available to common shareholders to FFO and Core FFO, which
are non-GAAP measures described in greater detail under "Non-GAAP
Financial Measures and Reconciliations." They should not be
considered as alternatives to net income or any other GAAP
measurement of performance, but rather should be considered as an
additional, supplemental measure. FFO also does not represent cash
generated from operating activities in accordance with GAAP, and is
not necessarily indicative of sufficient cash flow to fund all of
our needs or our ability to service indebtedness or make
distributions. The outlook and projections provided below are based
on current expectations and are forward-looking.
|
|
|
Outlook
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
December 31,
2019
|
|
December 31,
2020
|
|
Amount
|
|
|
Low
|
|
High
|
Net income (loss)
available to common shareholders
|
$
|
71,848
|
|
|
|
$
|
(17,340)
|
|
|
$
|
(13,590)
|
|
Noncontrolling
interests - Operating Partnership
|
6,752
|
|
|
|
(1,380)
|
|
|
(1,380)
|
|
Depreciation and
amortization
|
71,890
|
|
|
|
65,280
|
|
|
65,280
|
|
Gain on sale of real
estate attributable to controlling interests
|
(97,624)
|
|
|
|
—
|
|
|
—
|
|
Dividends to
preferred unitholders
|
$
|
537
|
|
|
|
$
|
640
|
|
|
$
|
640
|
|
FFO applicable to
common shares and Units
|
$
|
53,403
|
|
|
|
$
|
47,200
|
|
|
$
|
50,950
|
|
|
|
|
|
|
|
|
Adjustments to Core
FFO:
|
|
|
|
|
|
|
Casualty loss write
off
|
—
|
|
|
|
—
|
|
|
—
|
|
Loss on
extinguishment of debt
|
2,360
|
|
|
|
—
|
|
|
—
|
|
Gain on litigation
settlement
|
(6,586)
|
|
|
|
—
|
|
|
—
|
|
Other miscellaneous
items
|
(113)
|
|
|
|
—
|
|
|
—
|
|
Core FFO applicable
to common shares and Units
|
$
|
49,064
|
|
|
|
$
|
47,200
|
|
|
$
|
50,950
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
$
|
6.00
|
|
|
|
$
|
(1.35)
|
|
|
$
|
(1.07)
|
|
FFO per share -
diluted
|
$
|
4.05
|
|
|
|
$
|
3.52
|
|
|
$
|
3.80
|
|
Core FFO per share -
diluted
|
$
|
3.72
|
|
|
|
$
|
3.52
|
|
|
$
|
3.80
|
|
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multimedia:http://www.prnewswire.com/news-releases/iret-announces-financial-and-operating-results-for-the-year-ended-december-31-2019-and-provides-2020-financial-outlook-301007903.html
SOURCE IRET