Inland Real Estate Corporation (NYSE: IRC) today announced
financial and operational results for the three and six months
ended June 30, 2011.
Key Points
- Funds From Operations (FFO) per common
share was $0.06 for the second quarter of 2011, compared to $0.07
per share for the second quarter of 2010. Adjusted for non-cash
impairment charges, net of taxes, FFO per common share was $0.20
for the quarter ended June 30, 2011, compared to $0.22 per share
for the prior year quarter.
- Total portfolio leased occupancy was
94.4 percent and consolidated same store financial occupancy was
89.1 percent at June 30, 2011, representing increases of 200 basis
points and 150 basis points, respectively, over occupancy rates one
year ago.
- Consolidated same store net operating
income (NOI) increased 5.7 percent and 3.8 percent for the quarter
and six months ended June 30, 2011, respectively, over the same
periods last year.
- Average base rent for new and renewal
leases signed in the total portfolio increased 8.2 percent and 11.0
percent, respectively, over expiring rates for the quarter.
- IRC-PGGM venture acquired a
grocery-anchored center in a Chicago suburb for $19.8 million;
IRC’s joint venture with Inland Private Capital Corporation (IPCC)
acquired a retail portfolio of 16 single-tenant properties for
$46.9 million and a portfolio of six Walgreens net-leased
properties for $32.0 million during the quarter.
Financial Results for the Quarter
For the quarter ended June 30, 2011, Funds from Operations (FFO)
available to common stockholders was $5.7 million, compared to $6.1
million for the second quarter of 2010. On a per share basis, FFO
was $0.06 (basic and diluted) for the quarter, compared to $0.07
for the second quarter of 2010.
For the second quarter of 2011, the Company recorded aggregate
non-cash impairment charges, net of taxes, of $11.7 million related
to its unconsolidated development joint venture project, North
Aurora Towne Centre Phases I, II and III. The impairment adjustment
was necessary to reflect the property at its reduced fair value. In
addition, as a result of the reduced fair value of the property,
the Company determined its investment in the joint venture was not
recoverable and wrote down to zero its remaining investment
balance. By comparison, the Company recorded aggregate non-cash
impairment charges of $12.5 million related to development joint
venture projects for the second quarter of 2010.
FFO adjusted for impairment charges and other non-cash
adjustments, net of taxes, was $17.5 million, compared to $18.7
million for the prior year quarter. On a per share basis, FFO
adjusted for those items was $0.20 (basic and diluted), compared to
$0.22 for the second quarter of 2010. The decrease in adjusted FFO
for the quarter was primarily due to higher interest expense and
decreased gains from sales of interests in properties through the
IPCC joint venture, partially offset by increased rental
income.
Net loss available to common stockholders for the second quarter
of 2011 was $10.3 million, compared to $6.9 million for the second
quarter of 2010. On a per share basis, net loss available to common
stockholders was $0.12 (basic and diluted), compared to a net loss
of $0.08 for the prior year quarter. Net loss for the quarter
increased due to the same items that impacted adjusted FFO, as well
as the aforementioned non-cash impairment charges and higher
depreciation and amortization expense recorded in the quarter.
Financial Results for the Six Months Ended June 30,
2011
For the six months ended June 30, 2011, FFO available to common
stockholders was $21.2 million, compared to $17.2 million for the
same period in 2010. On a per share basis, FFO for the six-month
period was $0.24 (basis and diluted), compared to $0.20 for the six
months ended June 30, 2010.
For the six months ended June 30, 2011, the Company recorded
aggregate non-cash impairment charges, net of taxes, of $11.7
million, related to the North Aurora Towne Center development joint
venture project. By comparison, the Company recorded aggregate
non-cash impairment charges, net of taxes, of $20.6 million related
to unconsolidated development joint venture projects to reflect the
investments at fair value for the same six-month period of
2010.
FFO, adjusted for impairment charges and other non-cash
adjustments, net of taxes, was $33.4 million for the six months
ended June 30, 2011, compared to $37.8 million for the same period
of 2010. On a per share basis, FFO adjusted for those items was
$0.38 (basic and diluted), compared to $0.44 for the prior year
period.
The decrease in adjusted FFO for the six-months ended June 30,
2011, was primarily due to higher interest expense, lower other
income and decreased gains from sales of interests in properties
through the IPCC joint venture, partially offset by increased
rental revenue and joint venture fee income.
Net loss available to common stockholders for the six months
ended June 30, 2011, was $11.7 million, compared to a net loss of
$9.7 million for the same period of 2010. On a per share basis, net
loss available to common stockholders was $0.13 (basic and
diluted), compared to $0.11 for the six months ended June 30, 2010.
Net loss increased due to the same items that impacted adjusted
FFO, as well as the aforementioned non-cash impairment charges,
higher depreciation and amortization expense, and the loss from
change in control of Orchard Crossing.
Reconciliations of FFO and adjusted FFO to net loss available to
common stockholders, calculated in accordance with U.S. GAAP, as
well as FFO per share and FFO, adjusted per share to net loss
available to common stockholders per share, are provided at the end
of this press release. The Company adjusts FFO for the impact of
non-cash impairment charges, net of taxes recorded in comparable
periods, in order to present the performance of its core portfolio
operations.
“We continue to move forward on restoring portfolio performance
and operations,” said Mark Zalatoris, Inland Real Estate
Corporation’s president and chief executive officer. “Through
aggressive leasing and asset management strategies we produced
healthy rent increases on new and renewal leases again this
quarter, as well as gains in year-over-year occupancy and same
store net operating income.
“We have also made material progress on our joint ventures. At
June 30th, our IRC-IPCC joint venture met the high end of its
annual objective of $100 million in acquisitions. As well, our
joint venture with PGGM has completed nearly $85 million in new
property purchases since inception. Through these aligned business
enterprises we have generated over $1.9 million in fee income for
the first half of this year as well as grown our operating
platform.”
Portfolio Performance
The Company evaluates its overall portfolio by analyzing the
operating performance of properties that have been owned and
operated for the same three and six-month periods during each year.
A total of 111 of the Company’s investment properties within the
consolidated portfolio satisfied this criterion during these
periods and are referred to as “same store” properties. Same store
net operating income (NOI) is a supplemental non-GAAP measure used
to monitor the performance of the Company’s investment properties.
A reconciliation of same store NOI to net loss available to common
stockholders, calculated in accordance with U.S. GAAP is provided
in the Company’s supplemental information.
Consolidated portfolio same store NOI was $25.0 million for the
quarter and $48.6 million for the six months ended June 30, 2011,
representing increases of 5.7 percent and 3.8 percent,
respectively, over the prior year periods. The increases were
primarily due to income from new leases signed, the expiration of
abatement periods for certain new tenants, and the recovery of a
higher percentage of property operating expense from tenants within
the same store portfolio.
As of June 30, 2011, same store financial occupancy for the
consolidated portfolio was 89.1 percent, compared to 87.6 percent
as of June 30, 2010, and 88.8 percent as of March 31, 2011.
Leasing
For the quarter ended June 30, 2011, the Company executed 87
leases within the total portfolio aggregating 478,686 square feet
of gross leasable area (GLA). This included 53 renewal leases
comprising 375,391 square feet of GLA with an average rental rate
of $11.67 per square foot and representing an increase of 11.0
percent over the average expiring rent. Twelve new leases and 22
non-comparable leases aggregating 103,295 square feet of GLA were
signed during the quarter. New leases executed during the quarter
had an average rental rate of $12.51 per square foot, an increase
of 8.2 percent over the expiring rent; the non-comparable leases
were signed with an average rental rate of $13.59 per square foot.
Non-comparable leases represent leases signed for expansion square
footage or for space in which there was no former tenant in place
for one year or more. On a blended basis, the 65 new and renewal
leases signed during the quarter had an average rental rate of
$11.75 per square foot, representing an increase of 10.7 percent
over the average expiring rent. The calculations of former and new
average base rents are adjusted for rent abatements on the included
leases.
Leased occupancy for the total portfolio was 94.4 percent as of
June 30, 2011 and as of March 31, 2011, compared to 92.4 percent as
of June 30, 2010. Financial occupancy for the total portfolio was
89.3 percent as of June 30, 2011 and as of March 31, 2011, compared
to 88.4 percent as of June 30, 2010. Financial occupancy is defined
as the percentage of total gross leasable area for which a tenant
is obligated to pay rent under the terms of the lease agreement,
regardless of the actual use or occupation by that tenant of the
area being leased, and excludes tenants in abatement periods.
EBITDA, Balance Sheet, Liquidity and Market Value
Earnings before interest, taxes, depreciation and amortization
available to common stockholders (EBITDA), adjusted for non-cash
impairments, was $31.2 million for the quarter, compared to $29.3
million for the second quarter of 2010. For the six months ended
June 30, 2011, EBITDA, adjusted for non-cash impairments was $60.3
million, compared to $59.1 million for the prior year period. A
definition and reconciliation of EBITDA and adjusted EBITDA to
income (loss) from continuing operations is provided at the end of
this news release.
EBITDA coverage of interest expense, adjusted, was 2.4 times for
the quarter ended June 30, 2011, compared to 2.2 times for the
prior quarter and 3.0 times for the second quarter of 2010. The
Company has provided EBITDA and related non-GAAP coverage ratios
because it believes EBITDA and the related ratios provide useful
supplemental measures in evaluating the Company’s operating
performance in that expenses that may not be indicative of
operating performance are excluded.
During the quarter the Company worked with its bank lending
group to amend and improve the terms of its existing credit
agreements. The Company entered into amendments which, among other
things: (1) extend the maturity date of the Credit Agreements by
one year to June 21, 2014, (2) reduce the spread between the
interest rate on Company borrowings and the base rate applicable to
a particular borrowing (for example, LIBOR) and (3) improve certain
inputs related to the covenant compliance calculations.
As of June 30, 2011, the Company had an equity market
capitalization of $784.4 million and total debt outstanding of $1.0
billion (including the pro-rata share of debt in unconsolidated
joint ventures and full face value of convertible notes) for a
total market capitalization of approximately $1.8 billion and a
debt-to-total market capitalization of 56.2 percent. Including the
convertible notes, 66.4 percent of consolidated debt bears interest
at fixed rates. As of June 30, 2011, the weighted average interest
rate on the fixed rate debt was 5.3 percent and the overall
weighted average interest rate, including variable rate debt, was
4.6 percent. The Company had $75.0 million outstanding on its $150
million unsecured line of credit facility at the end of the
quarter.
Joint Venture Activity
On June 2, 2011, the IRC-PGGM joint venture closed its
acquisition of Red Top Plaza, a 151,840-square-foot neighborhood
shopping center located in Libertyville, a northern suburb of
Chicago. The center is anchored by SUPERVALU Inc.’s Jewel-Osco, the
market-leading grocer in the Chicago area, and features a strong
mix of national, regional and local retailers. The venture
purchased the center in an all-cash transaction for $19.8 million,
excluding closing costs and adjustments. The venture anticipates
placing financing on the asset in the future. Subsequent to the
acquisition and according to the terms of the joint venture
agreement, in June the Company contributed the Village Ten Center
in Coon Rapids, MN to the venture with PGGM.
In April the Company contributed $22.2 million to its joint
venture with IPCC to acquire, for $46.9 million, a retail portfolio
of 16 single-tenant properties in nine states aggregating 107,962
square feet of gross leasable area (GLA) plus two ground leases.
The properties are net-leased to national retailers operating in
the fast food, pharmacy, casual dining, banking, telecommunications
and general discount merchandise segments. Simultaneous with the
closing, the venture placed two, 5.4 percent fixed-rate, interest
only, first mortgage loans totaling $24.7 million on the portfolio.
In addition, in June, the Company contributed $10.4 million to the
IRC-IPCC venture to acquire, for $32.0 million, a portfolio of six
free-standing retail properties, which are net-leased to Walgreens.
The stores range in size from 13,650 to 14,820 square feet of GLA
and are located in six states across the United States. In
conjunction with the closing, the venture placed a 10-year,
interest only loan with a fixed rate of approximately 5.5 percent
in the amount of $21.6 million on the portfolio. For the six months
ended June 30, 2011, the IRC-IPCC joint venture has acquired retail
assets with a purchase price aggregating $99.7 million.
The Company regularly reviews its investments in unconsolidated
entities. When circumstances indicate that there may have been a
loss in value of an equity method investment, the Company evaluates
the investment for impairment by assessing its ability to recover
the investment from future expected cash flows. With regard to its
investment in the North Aurora Towne Centre development joint
venture project, the Company has determined that there was a loss
in value of the investment that is “other than temporary” as
defined by the accounting literature. Accordingly, in the second
quarter the Company recorded aggregate non-cash impairment charges,
net of taxes, of $11.7 million, an amount equal to its remaining
investment in the North Aurora Towne Centre project, to reflect its
investment at fair value. The decrease in fair value was due to the
recent economic down turn and the loss in value of vacant land.
Distributions
In May, June and July 2011, the Company paid monthly cash
distributions to stockholders of $0.0475 per common share. The
Company also declared a cash distribution of $0.0475 per common
share, payable on August 17, 2011, to common shareholders of record
at the close of business on August 1, 2011. The Company expects to
continue to pay monthly cash distributions at the existing rate
throughout 2011.
Guidance
For fiscal year 2011, the Company continues to expect FFO,
adjusted per common share (basic and diluted) to range from $0.78
to $0.84, consolidated same store net operating income to range
from flat to up 3 percent, and average total portfolio financial
occupancy to range from 90 percent to 92 percent.
Conference Call/Webcast
Management will host a conference call to discuss the Company’s
financial and operational results on Wednesday, August 3, 2011 at
2:00 p.m. CT (3:00 p.m. ET). Hosting the conference call will be
Mark Zalatoris, President and Chief Executive Officer, Brett Brown,
Chief Financial Officer, and Scott Carr, President of Property
Management. The live conference call can be accessed by dialing
1-877-317-6789 (toll free) for callers within the United States,
1-866-605-3852 (toll free) for callers dialing from Canada, or
1-412-317-6789 for other international callers. The conference call
also will be available via live webcast on the Company’s website at
www.inlandrealestate.com. The conference call will be recorded and
available for replay one hour after the end of the live event
through 8:00 a.m. CT (9:00 a.m. ET) on August 18, 2011. Interested
parties can access the replay of the conference call by dialing
1-877-344-7529 or 1-412-317-0088 for international callers, and
entering the replay pass code 10002052#. An online playback of the
webcast will be archived for approximately one year in the investor
relations section of the Company’s website.
About Inland Real Estate Corporation
Inland Real Estate Corporation is a self-administered and
self-managed publicly traded real estate investment trust (REIT)
that as of the end of the quarter owned interests in 163 open-air
neighborhood, community, power, and lifestyle shopping centers and
single tenant properties located primarily in the Midwestern United
States, with aggregate leasable space of approximately 14 million
square feet. Additional information on Inland Real Estate
Corporation, including a copy of the Company’s supplemental
financial information for the three and six months ended June 30,
2011, is available at www.inlandrealestate.com.
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are not historical facts but are the
intent, belief or current expectations of our management based on
their knowledge and understanding of the business and industry, the
economy and other future conditions. These statements are not
guarantees of future performance, and investors should not place
undue reliance on forward-looking statements. Actual results may
differ materially from those expressed or forecasted in the
forward-looking statements due to a variety of risks, uncertainties
and other factors, including but not limited to the factors listed
and described under “Risk Factors” in our Annual Report on Form
10-K for the year ended December 31, 2010, as may be updated or
supplemented by our Form 10-Q filings. These factors include, but
are not limited to: market and economic challenges experienced by
the U.S. economy or real estate industry as a whole, including
dislocations and liquidity disruptions in the credit markets; the
inability of tenants to continue paying their rent obligations due
to bankruptcy, insolvency or a general downturn in their business;
competition for real estate assets and tenants; impairment charges;
the availability of cash flow from operating activities for
distributions and capital expenditures; our ability to refinance
maturing debt or to obtain new financing on attractive terms;
future increases in interest rates; actions or failures by our
joint venture partners, including development partners; and other
factors that could affect our ability to qualify as a real estate
investment trust. We undertake no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results.
INLAND REAL ESTATE CORPORATION Consolidated
Balance Sheets June 30, 2011 and December 31, 2010
(In thousands except per share data) June 30,
2011 (unaudited) December 31, 2010 Assets: Investment
properties: Land $ 358,822 345,637 Construction in progress 1,964
142 Building and improvements 1,029,170 999,723 1,389,956
1,345,502 Less accumulated depreciation 338,240 326,546 Net
investment properties 1,051,716 1,018,956 Cash and cash
equivalents 7,867 13,566 Investment in securities 13,291 10,053
Accounts receivable, net 39,836 37,755 Investment in and advances
to unconsolidated joint ventures 86,204 103,616 Acquired lease
intangibles, net 41,894 38,721 Deferred costs, net 19,311 17,041
Other assets 13,275 15,133 Total assets $ 1,273,394
1,254,841 Liabilities: Accounts payable and accrued
expenses $ 38,824 34,768 Acquired below market lease intangibles,
net 13,512 10,492 Distributions payable 4,218 4,139 Mortgages
payable 498,142 483,186 Unsecured credit facilities 225,000 195,000
Convertible notes 111,091 110,365 Other liabilities 15,480 18,898
Total liabilities 906,267 856,848 Commitments and
contingencies Stockholders' Equity: Preferred stock,
$0.01 par value, 6,000 Shares authorized; none issued and
outstanding at June 30, 2011 and December 31, 2010, respectively -
- Common stock, $0.01 par value, 500,000 Shares authorized; 88,834
and 87,838 Shares issued and outstanding at June 30, 2011 and
December 31, 2010, respectively 888 878 Additional paid-in capital
(net of offering costs of $65,662 and $65,322 at June 30, 2011 and
December 31, 2010, respectively) 783,956 775,348 Accumulated
distributions in excess of net income (416,417) (379,485)
Accumulated other comprehensive income (453) 1,148 Total
stockholders' equity 367,974 397,889 Noncontrolling interest
(847) 104 Total equity 367,127 397,993 Total
liabilities and stockholders' equity $ 1,273,394 1,254,841
INLAND REAL ESTATE CORPORATION Consolidated Balance
Sheets (continued) June 30, 2011 and December 31, 2010
(In thousands except per share data)
The following table presents certain
assets and liabilities of consolidated variable interest entities
(VIEs), which are included in the Consolidated Balance Sheet above
as of June 30, 2011. The assets in the table below include only
those assets that can be used to settle obligations of consolidated
VIEs. The liabilities in the table below include third-party
liabilities of consolidated VIEs only, and exclude intercompany
balances that eliminate in consolidation.
June 30, 2011 (unaudited) December 31, 2010
Assets of consolidated VIEs that can only be used to settle
obligations of consolidated VIEs: Investment properties:
Land $ 23,413 7,292 Building and improvements 47,551 22,283
70,964 29,575 Less accumulated depreciation 311 237 Net
investment properties 70,653 29,338 Acquired lease
intangibles, net 10,421 5,450 Other assets 135 403 Total
assets of consolidated VIEs that can only be used to settle
obligations of consolidated VIEs $ 81,209 35,191
Liabilities of consolidated VIEs for which creditors or beneficial
interest holders do not have recourse to the general credit of the
Company: Acquired below market lease intangibles, net $
2,477 - Mortgages payable 46,351 19,353 Other liabilities 428 615
Total liabilities of consolidated VIEs for which creditors
or beneficial interest holders do not have recourse to the general
credit of the Company $ 49,256 19,968
INLAND REAL ESTATE
CORPORATION Consolidated Statements of Operations For
the three and six months ended June 30, 2011 and 2010
(unaudited) (In thousands except per share data)
Three months Three months Six months
Six months ended ended ended ended June 30, 2011 June 30, 2010 June
30, 2011 June 30, 2010 Revenues: Rental income $ 30,981 28,711
61,009 56,911 Tenant recoveries 9,915 9,436 23,944 22,103 Other
property income 503 588 967 968 Fee income from unconsolidated
joint ventures 1,338 876 2,500 1,507 Total revenues 42,737 39,611
88,420 81,489 Expenses: Property operating expenses 6,407
6,116 16,672 16,228 Real estate tax expense 7,989 8,538 16,984
16,937 Depreciation and amortization 12,963 10,151 25,398 20,201
Provision for asset impairment 5,223 12,540 5,223 17,991 General
and administrative expenses 3,757 3,597 7,480 6,827 Total expenses
36,339 40,942 71,757 78,184 Operating income (loss) 6,398
(1,331) 16,663 3,305 Other income 1,055 962 1,761 3,432 Loss
on change in control of investment property - - (1,400) - Gain on
sale of joint venture interest 240 1,536 553 2,010 Interest expense
(11,078) (6,997) (22,034) (14,784) Loss before income tax benefit
(expense) of taxable REIT subsidiaries, equity in loss of
unconsolidated joint ventures and discontinued operations (3,385)
(5,830) (4,457) (6,037) Income tax benefit (expense) of
taxable REIT subsidiaries 1,067 (655) 946 (621) Equity in loss of
unconsolidated joint ventures (7,975) (1,023) (8,334) (3,599) Loss
from continuing operations (10,293) (7,508) (11,845) (10,257)
Income from discontinued operations 5 661 222 751 Net loss (10,288)
(6,847) (11,623) (9,506) Less: Net income attributable to
the noncontrolling interest (30) (89) (66) (162) Net loss available
to common stockholders (10,318) (6,936) (11,689) (9,668)
Other comprehensive expense: Unrealized gain (loss) on investment
securities (178) (185) 216 793 Reversal of unrealized gain to
realized gain on investment securities (779) (713) (1,162) (1,543)
Unrealized gain (loss) on derivative instruments (1,592) - (655) 61
Comprehensive loss $ (12,867) (7,834) (13,290) (10,357)
Basic and diluted earnings available to common shares per
weighted average common share: Loss from continuing
operations $ (0.12) (0.09) (0.13) (0.12) Income from discontinued
operations - 0.01 - 0.01 Net loss available to common stockholders
per weighted average common share – basic and diluted $ (0.12)
(0.08) (0.13) (0.11) Weighted average number of common
shares outstanding – basic and diluted 88,656 85,419 88,259 85,383
Non-GAAP Financial Measures
We consider FFO a widely accepted and
appropriate measure of performance for a REIT. FFO provides a
supplemental measure to compare our performance and operations to
other REITs. Due to certain unique operating characteristics of
real estate companies, NAREIT has promulgated a standard known as
FFO, which it believes more accurately reflects the operating
performance of a REIT such as ours. As defined by NAREIT, FFO means
net income computed in accordance with U.S. GAAP, excluding gains
(or losses) from sales of operating property, plus depreciation and
amortization and after adjustments for unconsolidated entities in
which the REIT holds an interest. We have adopted the NAREIT
definition for computing FFO. Management uses the calculation of
FFO for several reasons. We use FFO in conjunction with our
acquisition policy to determine investment capitalization strategy
and we also use FFO to compare our performance to that of other
REITs in our peer group. Additionally, FFO is used in certain
employment agreements to determine incentives payable by us to
certain executives, based on our performance. The calculation of
FFO may vary from entity to entity since capitalization and expense
policies tend to vary from entity to entity. Items that are
capitalized do not impact FFO whereas items that are expensed
reduce FFO. Consequently, our presentation of FFO may not be
comparable to other similarly titled measures presented by other
REITs. FFO does not represent cash flows from operations as defined
by U.S. GAAP, it is not indicative of cash available to fund all
cash flow needs and liquidity, including our ability to pay
distributions and should not be considered as an alternative to net
income, as determined in accordance with U.S. GAAP, for purposes of
evaluating our operating performance. The following table reflects
our FFO and adjusted FFO for the periods presented, reconciled to
net loss available to common stockholders for these periods. The
Company adjusts FFO for the impact of non-cash impairment charges,
net of taxes and gains on extinguishment of debt recorded in
comparable periods in order to present the performance of its core
portfolio operations.
Three months Three months Six months
Six months ended ended ended ended June 30, 2011 June 30,
2010 June 30, 2011 June 30, 2010 Net loss available to
common stockholders $ (10,318) (6,936) (11,689) (9,668) Gain on
sale of investment properties - (521) (197) (521) Loss from change
in control of investment property - - 1,400 - Equity in
depreciation and amortization of unconsolidated joint ventures
3,417 3,339 6,680 6,939 Amortization on in-place lease intangibles
1,926 568 3,378 1,134 Amortization on leasing commissions 381 252
718 526 Depreciation, net of noncontrolling interest 10,298 9,438
20,895 18,758 Funds From Operations available to common
stockholders 5,704 6,140 21,185 17,168 Impairment loss, net
of taxes: Provision for asset impairment 5,223 12,540 5,223 17,991
Provision for asset impairment included in equity in loss of
unconsolidated joint ventures 7,824 - 7,824 2,498 Other non-cash
adjustments 88 - 511 - Provision for income taxes: Tax (benefit)
expense related to current impairment charges, net of valuation
allowance (1,368) - (1,368) 147 Funds From Operations
available to common stockholders, adjusted $ 17,471 18,680 33,375
37,804 Net loss available to common stockholders per
weighted average common share – basic and diluted $ (0.12) (0.08)
(0.13) (0.11) Funds From Operations available to common
stockholders, per weighted average common share – basic and diluted
$ 0.06 0.07 0.24 0.20 Funds From Operations available to
common stockholders, adjusted, per weighted average common share –
basic and diluted $ 0.20 0.22 0.38 0.44 Weighted average
number of common shares outstanding, basic 88,656 85,419 88,259
85,383 Weighted average number of common shares outstanding,
diluted 88,746 85,500 88,349 85,463
EBITDA is defined as earnings (losses)
from operations excluding: (1) interest expense; (2) income tax
benefit or expenses; (3) depreciation and amortization expense; and
(4) gains (loss) on non-operating property. We believe EBITDA is
useful to us and to an investor as a supplemental measure in
evaluating our financial performance because it excludes expenses
that we believe may not be indicative of our operating performance.
By excluding interest expense, EBITDA measures our financial
performance regardless of how we finance our operations and capital
structure. By excluding depreciation and amortization expense, we
believe we can more accurately assess the performance of our
portfolio. Because EBITDA is calculated before recurring cash
charges such as interest expense and taxes and is not adjusted for
capital expenditures or other recurring cash requirements, it does
not reflect the amount of capital needed to maintain our properties
nor does it reflect trends in interest costs due to changes in
interest rates or increases in borrowing. EBITDA should be
considered only as a supplement to net earnings and may be
calculated differently by other equity REITs.
Three months Three months Six months
Six months ended ended ended ended June 30, 2011 June 30,
2010 June 30, 2011 June 30, 2010 Loss from continuing
operations $ (10,293) (7,508) (11,845) (10,257) Loss from change in
control of investment property - - 1,400 - Net income attributable
to noncontrolling interest (30) (89) (66) (162) Income tax
(benefit) expense of taxable REIT subsidiaries (1,067) 655 (946)
621 Income from discontinued operations, excluding gains 5 140 25
230 Interest expense 11,078 6,997 22,034 14,784 Interest expense
associated with discontinued operations - 148 - 300 Interest
expense associated with unconsolidated joint ventures 2,035 2,678
4,060 5,584 Depreciation and amortization 12,963 10,151 25,398
20,201 Depreciation and amortization associated with discontinued
operations - 199 4 400 Depreciation and amortization associated
with unconsolidated joint ventures 3,417 3,339 6,680 6,939
EBITDA available to common stockholders 18,108 16,710 46,744 38,640
Provision for asset impairment 5,223 12,540 5,223 17,991
Provision for asset impairment included in equity in loss of
unconsolidated joint ventures 7,824 - 7,824 2,498 Other non-cash
adjustments 88 - 511 - EBITDA available to common
stockholders, adjusted $ 31,243 29,250 60,302 59,129 Total
Interest Expense $ 13,113 9,823 26,094 20,668 EBITDA:
Interest Expense Coverage Ratio 1.4 x 1.7 x 1.8 x 1.9 x
EBITDA: Interest Expense Coverage Ratio, adjusted 2.4 x 3.0 x 2.3 x
2.9 x
Inland Real Estate (NYSE:IRC)
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From Sep 2024 to Oct 2024
Inland Real Estate (NYSE:IRC)
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From Oct 2023 to Oct 2024