MINNEAPOLIS, Nov. 2, 2020 /PRNewswire/ -- IRET (NYSE: IRET)
announced today its financial and operating results for the quarter
ended September 30, 2020. The tables below show Net Income,
Funds from Operations ("FFO"), and Core FFO, all on a per share
basis, for the three and nine months ended September 30, 2020;
Same-Store Revenues, Expenses, and Net Operating Income ("NOI")
over comparable periods; and Same-Store Weighted-Average Occupancy
for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019.
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
Per
Share
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net Income -
diluted
|
|
$
|
1.38
|
|
|
$
|
2.54
|
|
|
$
|
0.33
|
|
|
$
|
2.11
|
|
FFO -
diluted
|
|
$
|
0.90
|
|
|
$
|
0.93
|
|
|
$
|
2.49
|
|
|
$
|
3.15
|
|
Core FFO -
diluted
|
|
$
|
0.94
|
|
|
$
|
0.99
|
|
|
$
|
2.76
|
|
|
$
|
2.76
|
|
|
|
Year-Over-Year
Comparison
|
|
Sequential
Comparison
|
|
YTD
Comparison
|
Same-Store
Results
|
|
Q3 2020 vs. Q3
2019
|
|
Q3 2020 vs. Q2
2020
|
|
2020 vs.
2019
|
Revenues
|
|
1.1
|
%
|
|
0.6
|
%
|
|
2.1
|
%
|
Expenses
|
|
4.6
|
%
|
|
5.7
|
%
|
|
3.6
|
%
|
NOI
|
|
(1.3)
|
%
|
|
(3.0)
|
%
|
|
1.0
|
%
|
|
|
Three months
ended
|
Same-Store
Results
|
|
September 30,
2020
|
|
June 30,
2020
|
|
September 30,
2019
|
Weighted Average
Occupancy
|
|
94.4
|
%
|
|
94.6
|
%
|
|
93.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Highlights
- Net Income was $1.38 per diluted
share for the third quarter of 2020, compared to Net Income of
$2.54 per diluted share for the same
period of 2019;
- Core FFO increased 3.3% to $0.94
per diluted share for the three months ended September 30, 2020, compared to $0.91 for the three months ended June, 30, 2020.
Core FFO for the nine months ended September, 30, 2020 remains
unchanged compared to the same period of 2019;
- Total collections were 98.8% of expected residential revenue
for the third quarter of 2020, compared to 99.6% for the same
period of 2019 and 99.1% for second quarter 2020;
- Physical occupancy for same-store communities was 95.3% for the
three months ended September 30,
2020, compared to 94.3% for the same period of 2019 and
94.8% for second quarter 2020;
- Same-store controllable expenses (which exclude taxes and
insurance) decreased 2.0% for the nine months ended September 30, 2020 as compared to the same period
of 2019, contributing to NOI growth of 1.0%;
- Same-store new lease rates remained flat for the third quarter
of 2020, compared to a decline of (1.2%) in Q2 2020;
- Continued to strengthen our balance sheet by issuing 144,822
common shares under our 2019 ATM program for net proceeds of
$10.2 million; and
- Continued to grow our portfolio in our core market of
Denver through the acquisition of
Parkhouse Apartment Homes, a 465-home apartment community in
Thornton, Colorado.
NOI, FFO, Core FFO, and same-store controllable expenses 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.
Acquisitions and Dispositions
During the quarter, we acquired Parkhouse Apartment Homes, a
465-home apartment community in Thornton,
Colorado for a total purchase price of $144.8 million. During the quarter we disposed of
four apartment communities in Grand
Forks, North Dakota and a commercial property for an
aggregate sale price of $43.0
million.
Balance Sheet
At the end of the third quarter, we had $131.8 million of total liquidity on our balance
sheet, consisting of $115.0 million
available under our line of credit and cash and cash equivalents of
$16.8 million. At the end of the
second quarter, we had $239.7 million
of total liquidity on our balance sheet, consisting of $187.0 million available on our line of credit
and cash and cash equivalents of $52.7
million. The decline in total liquidity since the end of the
second quarter is primarily a result of funding our acquisition of
Parkhouse Apartment Homes.
As of September 30, 2020, we had 45 unencumbered apartment
communities, representing 64.6% of third quarter multifamily NOI,
of which 4 apartment communities, representing 5.4% of third
quarter NOI, are not pledged under the Unencumbered Asset Pool
("UAP").
2020 Financial Outlook
On March 27, 2020 we issued a
press release indicating that in light of the impact of COVID-19 on
our business and results of operations, we were withdrawing our
2020 Financial Outlook. Given the ongoing impact of COVID-19, we
are not providing an updated 2020 Financial Outlook at this
time.
COVID-19 Developments
The COVID-19 pandemic, including the associated economic
disruptions, has continued to impact our business and operations
since March 2020.
IRET's first priority amid the COVID-19 pandemic has been the
health and well-being of our residents, team members, and the
communities we serve. In response, IRET has enhanced cleaning
protocols at our communities and offices, implemented physical
distancing in communities common spaces, and instituted remote work
guidelines for our team members, all in accordance with state and
local guidelines. We are utilizing technology to allow our property
teams to interact remotely with prospective residents through
virtual leasing. We have provided rent deferrals to residents and
rent abatement to commercial tenants who were financially impacted
by the COVID-19 pandemic. To support our team members working
on-site, IRET has provided additional COVID-19 paid time off and
enhanced flextime arrangements.
A discussion of the ongoing and potential effects of the
COVID-19 pandemic on our financial condition, results of
operations, and cash flows can be found in the Management's
Discussion and Analysis of Financial Conditions and Results of
Operations presented in our Quarterly Report on Form 10-Q for the
quarter ended September, 30, 2020.
For a more detailed description of the risks and uncertainties
affecting our business, see the risk factors presented in our
Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated under Item 1A of
our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2020, and in our
subsequent current and periodic reports filed with the Securities
and Exchange Commission at www.sec.gov.
Upcoming Events
IRET is scheduled to participate in the upcoming National
Association of Real Estate Investment Trusts ("Nareit") REITworld
2020 Annual Conference, which will be held virtually November 17-19.
Quarterly Distributions
Effective September 4, 2020,
IRET's Board of Trustees declared a regular quarterly distribution
of $0.70 per share/unit, which was
paid on October 9, 2020, to common
shareholders and unitholders of record on September 30, 2020. IRET has paid cash dividends
to common shareholders and unitholders every quarter since its
initial dividend payment in 1971.
Effective September 4, 2020,
IRET's Board of Trustees also declared a distribution of
$0.4140625 per share on the 6.625%
Series C Cumulative Redeemable Preferred Shares (NYSE: IRET-PC),
which was paid on September 30, 2020,
to holders of record at the close of business on September 15, 2020. 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
|
Tuesday, November 3,
2020, at 10:00 AM ET
|
|
Replay available
until November 17, 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
|
10147829
|
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended
September 30, 2020 included herein ("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.
About IRET
IRET is a real estate company focused on the ownership,
management, acquisition, redevelopment, and development of
apartment communities. As of September 30, 2020, we owned
interests in 67 apartment communities consisting of
11,910 apartment 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 and the accompanying
Supplemental Operating and Financial Data are based on our current
expectations and assumptions, and are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. 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. Such risks,
uncertainties, and other factors that might cause such differences
include, but are not limited to those risks and uncertainties
detailed from time to time in our filings with the Securities and
Exchange Commission, 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 our subsequent quarterly
reports on Form 10-Q, including the COVID-19 risk factors set
forth in our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2020, 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
Emily Miller
Investor Relations
Phone: 701-837-7104
E-mail: IR@iret.com
Common Share Data
(NYSE: IRET)
|
|
|
|
3rd
Quarter
|
|
2nd
Quarter
|
|
1st
Quarter
|
|
4th
Quarter
|
|
3rd
Quarter
|
|
|
2020
|
|
2020
|
|
2020
|
|
2019
|
|
2019
|
High closing
price
|
|
$
|
73.53
|
|
|
$
|
76.82
|
|
|
$
|
84.68
|
|
|
$
|
78.91
|
|
|
$
|
74.67
|
|
Low closing
price
|
|
$
|
61.87
|
|
|
$
|
44.36
|
|
|
$
|
52.55
|
|
|
$
|
71.74
|
|
|
$
|
59.22
|
|
Average closing
price
|
|
$
|
70.15
|
|
|
$
|
63.91
|
|
|
$
|
71.62
|
|
|
$
|
74.67
|
|
|
$
|
66.83
|
|
Closing price at end
of quarter
|
|
$
|
65.17
|
|
|
$
|
70.49
|
|
|
$
|
55.00
|
|
|
$
|
72.50
|
|
|
$
|
74.67
|
|
Common share
distributions – annualized
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
Closing dividend
yield – annualized
|
|
4.3
|
%
|
|
4.0
|
%
|
|
5.1
|
%
|
|
3.9
|
%
|
|
3.8
|
%
|
Closing common shares
outstanding (thousands)
|
|
12,976
|
|
|
12,827
|
|
|
12,164
|
|
|
12,099
|
|
|
11,625
|
|
Closing limited
partnership units outstanding (thousands)
|
|
1,018
|
|
|
1,022
|
|
|
1,044
|
|
|
1,058
|
|
|
1,223
|
|
Closing market value
of outstanding common shares,
plus imputed closing
market value of outstanding limited
partnership units
(thousands)
|
|
$
|
911,989
|
|
|
$
|
976,216
|
|
|
$
|
726,440
|
|
|
$
|
953,883
|
|
|
$
|
959,360
|
|
IRET
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
(in
thousands)
|
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
|
9/30/2020
|
|
9/30/2019
|
REVENUE
|
|
$
|
44,138
|
|
|
$
|
43,910
|
|
|
$
|
44,406
|
|
|
$
|
45,777
|
|
|
$
|
47,436
|
|
|
|
$
|
132,454
|
|
|
$
|
139,978
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses, excluding
real estate taxes
|
|
13,129
|
|
|
12,360
|
|
|
13,468
|
|
|
14,018
|
|
|
14,485
|
|
|
|
38,957
|
|
|
43,231
|
|
Real estate
taxes
|
|
5,402
|
|
|
5,410
|
|
|
5,465
|
|
|
4,835
|
|
|
5,425
|
|
|
|
16,277
|
|
|
16,231
|
|
Property management
expense
|
|
1,442
|
|
|
1,345
|
|
|
1,554
|
|
|
1,634
|
|
|
1,553
|
|
|
|
4,341
|
|
|
4,552
|
|
Casualty
loss
|
|
91
|
|
|
913
|
|
|
327
|
|
|
205
|
|
|
178
|
|
|
|
1,331
|
|
|
911
|
|
Depreciation/amortization
|
|
18,995
|
|
|
18,156
|
|
|
18,160
|
|
|
18,972
|
|
|
18,751
|
|
|
|
55,311
|
|
|
55,299
|
|
General and
administrative expenses
|
|
3,077
|
|
|
3,202
|
|
|
3,428
|
|
|
3,647
|
|
|
3,448
|
|
|
|
9,707
|
|
|
10,803
|
|
TOTAL
EXPENSES
|
|
$
|
42,136
|
|
|
$
|
41,386
|
|
|
$
|
42,402
|
|
|
$
|
43,311
|
|
|
$
|
43,840
|
|
|
|
$
|
125,924
|
|
|
$
|
131,027
|
|
Operating
income
|
|
2,002
|
|
|
2,524
|
|
|
2,004
|
|
|
2,466
|
|
|
3,596
|
|
|
|
6,530
|
|
|
8,951
|
|
Interest
expense
|
|
(6,771)
|
|
|
(6,940)
|
|
|
(6,911)
|
|
|
(7,357)
|
|
|
(7,694)
|
|
|
|
(20,622)
|
|
|
(23,180)
|
|
Loss on
extinguishment of debt
|
|
(4)
|
|
|
(17)
|
|
|
—
|
|
|
(864)
|
|
|
(1,087)
|
|
|
|
(21)
|
|
|
(1,496)
|
|
Interest and other
income (loss)
|
|
281
|
|
|
538
|
|
|
(2,777)
|
|
|
702
|
|
|
498
|
|
|
|
(1,958)
|
|
|
1,390
|
|
Income (loss) before
gain (loss) on sale of
real estate and other
investments, and
gain (loss) on
litigation settlement
|
|
(4,492)
|
|
|
(3,895)
|
|
|
(7,684)
|
|
|
(5,053)
|
|
|
(4,687)
|
|
|
|
(16,071)
|
|
|
(14,335)
|
|
Gain (loss) on sale
of real estate and other
investments
|
|
25,676
|
|
|
(190)
|
|
|
—
|
|
|
57,850
|
|
|
39,105
|
|
|
|
25,486
|
|
|
39,774
|
|
Gain (loss) on
litigation settlement
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
300
|
|
|
|
—
|
|
|
6,586
|
|
Net income
(loss)
|
|
$
|
21,184
|
|
|
$
|
(4,085)
|
|
|
$
|
(7,684)
|
|
|
$
|
52,797
|
|
|
$
|
34,718
|
|
|
|
$
|
9,415
|
|
|
$
|
32,025
|
|
Dividends to
preferred unitholders
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
|
(480)
|
|
|
(377)
|
|
Net (income) loss
attributable to
noncontrolling
interest – Operating
Partnership
|
|
(1,387)
|
|
|
447
|
|
|
692
|
|
|
(4,202)
|
|
|
(3,145)
|
|
|
|
(248)
|
|
|
(2,550)
|
|
Net (income) loss
attributable to
noncontrolling
interests – consolidated
real estate
entities
|
|
(8)
|
|
|
(5)
|
|
|
145
|
|
|
223
|
|
|
183
|
|
|
|
132
|
|
|
913
|
|
Net income (loss)
attributable to
controlling
interests
|
|
19,629
|
|
|
(3,803)
|
|
|
(7,007)
|
|
|
48,658
|
|
|
31,596
|
|
|
|
8,819
|
|
|
30,011
|
|
Dividends to
preferred shareholders
|
|
(1,607)
|
|
|
(1,609)
|
|
|
(1,705)
|
|
|
(1,705)
|
|
|
(1,705)
|
|
|
|
(4,921)
|
|
|
(5,116)
|
|
Discount (premium) on
redemption of
preferred
shares
|
|
(1)
|
|
|
25
|
|
|
273
|
|
|
—
|
|
|
—
|
|
|
|
297
|
|
|
—
|
|
NET INCOME (LOSS)
AVAILABLE
TO COMMON
SHAREHOLDERS
|
|
$
|
18,021
|
|
|
$
|
(5,387)
|
|
|
$
|
(8,439)
|
|
|
$
|
46,953
|
|
|
$
|
29,891
|
|
|
|
$
|
4,195
|
|
|
$
|
24,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data -
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per common share –
basic
|
|
$
|
1.40
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.69)
|
|
|
$
|
3.95
|
|
|
$
|
2.57
|
|
|
|
$
|
0.33
|
|
|
$
|
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data -
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per common share –
diluted
|
|
$
|
1.38
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.67)
|
|
|
$
|
3.89
|
|
|
$
|
2.54
|
|
|
|
$
|
0.33
|
|
|
$
|
2.11
|
|
IRET
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
|
(in
thousands)
|
|
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Real estate
investments
|
|
|
|
|
|
|
|
|
|
|
Property
owned
|
|
$
|
1,805,390
|
|
|
$
|
1,694,033
|
|
|
$
|
1,687,436
|
|
|
$
|
1,643,078
|
|
|
$
|
1,720,352
|
|
Less accumulated
depreciation
|
|
(380,392)
|
|
|
(383,917)
|
|
|
(366,307)
|
|
|
(349,122)
|
|
|
(370,492)
|
|
|
|
1,424,998
|
|
|
1,310,116
|
|
|
1,321,129
|
|
|
1,293,956
|
|
|
1,349,860
|
|
Unimproved
land
|
|
—
|
|
|
—
|
|
|
1,376
|
|
|
1,376
|
|
|
1,376
|
|
Mortgage loans
receivable
|
|
17,986
|
|
|
10,961
|
|
|
16,775
|
|
|
16,140
|
|
|
10,140
|
|
Total real estate
investments
|
|
1,442,984
|
|
|
1,321,077
|
|
|
1,339,280
|
|
|
1,311,472
|
|
|
1,361,376
|
|
Cash and cash
equivalents
|
|
16,804
|
|
|
52,714
|
|
|
26,338
|
|
|
26,579
|
|
|
8,500
|
|
Restricted
cash
|
|
2,199
|
|
|
2,535
|
|
|
2,344
|
|
|
19,538
|
|
|
3,339
|
|
Other
assets
|
|
16,947
|
|
|
16,484
|
|
|
21,124
|
|
|
34,829
|
|
|
30,589
|
|
TOTAL
ASSETS
|
|
$
|
1,478,934
|
|
|
$
|
1,392,810
|
|
|
$
|
1,389,086
|
|
|
$
|
1,392,418
|
|
|
$
|
1,403,804
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY, AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
58,596
|
|
|
$
|
54,883
|
|
|
$
|
52,337
|
|
|
$
|
47,155
|
|
|
$
|
40,546
|
|
Revolving line of
credit
|
|
135,000
|
|
|
63,000
|
|
|
83,000
|
|
|
50,079
|
|
|
103,143
|
|
Notes payable, net of
loan costs
|
|
269,202
|
|
|
269,155
|
|
|
269,106
|
|
|
269,058
|
|
|
269,006
|
|
Mortgages payable, net
of loan costs
|
|
313,065
|
|
|
323,705
|
|
|
328,367
|
|
|
329,664
|
|
|
360,886
|
|
TOTAL
LIABILITIES
|
|
$
|
775,863
|
|
|
$
|
710,743
|
|
|
$
|
732,810
|
|
|
$
|
695,956
|
|
|
$
|
773,581
|
|
|
|
|
|
|
|
|
|
|
|
|
SERIES D PREFERRED
UNITS
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Series C Preferred
Shares of Beneficial Interest
|
|
93,530
|
|
|
93,579
|
|
|
96,046
|
|
|
99,456
|
|
|
99,456
|
|
Common Shares of
Beneficial Interest
|
|
968,436
|
|
|
958,292
|
|
|
912,653
|
|
|
917,400
|
|
|
886,598
|
|
Accumulated
distributions in excess of net income
|
|
(412,577)
|
|
|
(421,515)
|
|
|
(407,150)
|
|
|
(390,196)
|
|
|
(428,680)
|
|
Accumulated other
comprehensive income (loss)
|
|
(17,256)
|
|
|
(18,139)
|
|
|
(17,360)
|
|
|
(7,607)
|
|
|
(9,793)
|
|
Total shareholders'
equity
|
|
$
|
632,133
|
|
|
$
|
612,217
|
|
|
$
|
584,189
|
|
|
$
|
619,053
|
|
|
$
|
547,581
|
|
Noncontrolling
interests – Operating Partnership
|
|
53,669
|
|
|
52,558
|
|
|
54,777
|
|
|
55,284
|
|
|
60,169
|
|
Noncontrolling
interests – consolidated real estate entities
|
|
709
|
|
|
732
|
|
|
750
|
|
|
5,565
|
|
|
5,913
|
|
Total
equity
|
|
$
|
686,511
|
|
|
$
|
665,507
|
|
|
$
|
639,716
|
|
|
$
|
679,902
|
|
|
$
|
613,663
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY, AND EQUITY
|
|
$
|
1,478,934
|
|
|
$
|
1,392,810
|
|
|
$
|
1,389,086
|
|
|
$
|
1,392,418
|
|
|
$
|
1,403,804
|
|
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 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
|
|
|
Sequential
|
|
Year-Over-Year
|
|
9/30/2020
|
|
6/30/2020
|
|
9/30/2019
|
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
2,002
|
|
|
$
|
2,524
|
|
|
$
|
3,596
|
|
|
|
$
|
(522)
|
|
|
(20.7)
|
%
|
|
$
|
(1,594)
|
|
|
(44.3)
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management
expenses
|
1,442
|
|
|
1,345
|
|
|
1,553
|
|
|
|
97
|
|
|
7.2
|
%
|
|
(111)
|
|
|
(7.1)
|
%
|
Casualty
loss
|
91
|
|
|
913
|
|
|
178
|
|
|
|
(822)
|
|
|
(90.0)
|
%
|
|
(87)
|
|
|
(48.9)
|
%
|
Depreciation and
amortization
|
18,995
|
|
|
18,156
|
|
|
18,751
|
|
|
|
839
|
|
|
4.6
|
%
|
|
244
|
|
|
1.3
|
%
|
General and
administrative expenses
|
3,077
|
|
|
3,202
|
|
|
3,448
|
|
|
|
(125)
|
|
|
(3.9)
|
%
|
|
(371)
|
|
|
(10.8)
|
%
|
Net operating
income
|
$
|
25,607
|
|
|
$
|
26,140
|
|
|
$
|
27,526
|
|
|
|
$
|
(533)
|
|
|
(2.0)
|
%
|
|
$
|
(1,919)
|
|
|
(7.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
$
|
38,043
|
|
|
$
|
37,831
|
|
|
$
|
37,627
|
|
|
|
$
|
212
|
|
|
0.6
|
%
|
|
$
|
416
|
|
|
1.1
|
%
|
Non-same-store
|
4,420
|
|
|
4,157
|
|
|
1,344
|
|
|
|
263
|
|
|
6.3
|
%
|
|
3,076
|
|
|
228.9
|
%
|
Other properties and
dispositions
|
1,675
|
|
|
1,922
|
|
|
8,465
|
|
|
|
(247)
|
|
|
(12.9)
|
%
|
|
(6,790)
|
|
|
(80.2)
|
%
|
Total
|
44,138
|
|
|
43,910
|
|
|
47,436
|
|
|
|
228
|
|
|
0.5
|
%
|
|
(3,298)
|
|
|
(7.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses, including real estate taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
16,198
|
|
|
15,319
|
|
|
15,493
|
|
|
|
879
|
|
|
5.7
|
%
|
|
705
|
|
|
4.6
|
%
|
Non-same-store
|
1,712
|
|
|
1,514
|
|
|
550
|
|
|
|
198
|
|
|
13.1
|
%
|
|
1,162
|
|
|
211.3
|
%
|
Other properties and
dispositions
|
621
|
|
|
937
|
|
|
3,867
|
|
|
|
(316)
|
|
|
(33.7)
|
%
|
|
(3,246)
|
|
|
(83.9)
|
%
|
Total
|
18,531
|
|
|
17,770
|
|
|
19,910
|
|
|
|
761
|
|
|
4.3
|
%
|
|
(1,379)
|
|
|
(6.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
21,845
|
|
|
22,512
|
|
|
22,134
|
|
|
|
(667)
|
|
|
(3.0)
|
%
|
|
(289)
|
|
|
(1.3)
|
%
|
Non-same-store
|
2,708
|
|
|
2,643
|
|
|
794
|
|
|
|
65
|
|
|
2.5
|
%
|
|
1,914
|
|
|
241.1
|
%
|
Other properties and
dispositions
|
1,054
|
|
|
985
|
|
|
4,598
|
|
|
|
69
|
|
|
7.0
|
%
|
|
(3,544)
|
|
|
(77.1)
|
%
|
Total
|
$
|
25,607
|
|
|
$
|
26,140
|
|
|
$
|
27,526
|
|
|
|
$
|
(533)
|
|
|
(2.0)
|
%
|
|
$
|
(1,919)
|
|
|
(7.0)
|
%
|
|
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
6,530
|
|
|
$
|
8,951
|
|
|
$
|
(2,421)
|
|
|
(27.0)
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
Property management
expenses
|
4,341
|
|
|
4,552
|
|
|
(211)
|
|
|
(4.6)
|
%
|
Casualty
loss
|
1,331
|
|
|
911
|
|
|
420
|
|
|
46.1
|
%
|
Depreciation and
amortization
|
55,311
|
|
|
55,299
|
|
|
12
|
|
|
—
|
|
General and
administrative expenses
|
9,707
|
|
|
10,803
|
|
|
(1,096)
|
|
|
(10.1)
|
%
|
Net operating
income
|
$
|
77,220
|
|
|
$
|
80,516
|
|
|
$
|
(3,296)
|
|
|
(4.1)
|
%
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Same-store
|
$
|
114,208
|
|
|
$
|
111,897
|
|
|
$
|
2,311
|
|
|
2.1
|
%
|
Non-same-store
|
12,088
|
|
|
2,829
|
|
|
9,259
|
|
|
327.3
|
%
|
Other properties and
dispositions
|
6,158
|
|
|
25,252
|
|
|
(19,094)
|
|
|
(75.6)
|
%
|
Total
|
132,454
|
|
|
139,978
|
|
|
(7,524)
|
|
|
(5.4)
|
%
|
|
|
|
|
|
|
|
|
Property operating
expenses, including real estate taxes
|
|
|
|
|
|
|
|
Same-store
|
47,857
|
|
|
46,190
|
|
|
1,667
|
|
|
3.6
|
%
|
Non-same-store
|
4,546
|
|
|
1,197
|
|
|
3,349
|
|
|
279.8
|
%
|
Other properties and
dispositions
|
2,831
|
|
|
12,075
|
|
|
(9,244)
|
|
|
(76.6)
|
%
|
Total
|
55,234
|
|
|
59,462
|
|
|
(4,228)
|
|
|
(7.1)
|
%
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
|
|
|
|
|
|
Same-store
|
66,351
|
|
|
65,707
|
|
|
644
|
|
|
1.0
|
%
|
Non-same-store
|
7,542
|
|
|
1,632
|
|
|
5,910
|
|
|
362.1
|
%
|
Other properties and
dispositions
|
3,327
|
|
|
13,177
|
|
|
(9,850)
|
|
|
(74.8)
|
%
|
Total
|
$
|
77,220
|
|
|
$
|
80,516
|
|
|
$
|
(3,296)
|
|
|
(4.1)
|
%
|
Reconciliation of Same-Store Controllable Expenses to Total
Property Operating Expenses, Including Real Estate Taxes
Same-store controllable expenses exclude real estate taxes and
insurance, in order to provide a measure of expenses that are
within management's control, and is used for the purposes of
budgeting, business planning, and performance evaluation. This is a
non-GAAP measure and should not be considered an alternative to
total expenses or total property operating expenses.
|
(in thousands, except percentages)
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Controllable
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On-site
compensation(1)
|
$
|
4,290
|
|
|
$
|
3,978
|
|
|
$
|
312
|
|
|
7.8
|
%
|
|
|
$
|
12,705
|
|
|
$
|
11,779
|
|
|
$
|
926
|
|
|
7.9
|
%
|
Repairs and
maintenance
|
2,764
|
|
|
2,805
|
|
|
(41)
|
|
|
(1.5)
|
%
|
|
|
7,431
|
|
|
8,413
|
|
|
(982)
|
|
|
(11.7)
|
%
|
Utilities
|
2,532
|
|
|
2,508
|
|
|
24
|
|
|
1.0
|
%
|
|
|
7,517
|
|
|
7,884
|
|
|
(367)
|
|
|
(4.7)
|
%
|
Administrative and
marketing
|
820
|
|
|
882
|
|
|
(62)
|
|
|
(7.0)
|
%
|
|
|
2,501
|
|
|
2,702
|
|
|
(201)
|
|
|
(7.4)
|
%
|
Total
|
$
|
10,406
|
|
|
$
|
10,173
|
|
|
$
|
233
|
|
|
2.3
|
%
|
|
|
$
|
30,154
|
|
|
$
|
30,778
|
|
|
$
|
(624)
|
|
|
(2.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controllable
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
$
|
4,632
|
|
|
$
|
4,265
|
|
|
$
|
367
|
|
|
8.6
|
%
|
|
|
$
|
14,028
|
|
|
$
|
12,738
|
|
|
$
|
1,290
|
|
|
10.1
|
%
|
Insurance
|
1,160
|
|
|
1,055
|
|
|
105
|
|
|
10.0
|
%
|
|
|
3,675
|
|
|
2,674
|
|
|
1,001
|
|
|
37.4
|
%
|
Total
|
$
|
5,792
|
|
|
$
|
5,320
|
|
|
$
|
472
|
|
|
8.9
|
%
|
|
|
$
|
17,703
|
|
|
$
|
15,412
|
|
|
$
|
2,291
|
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses, including
real estate taxes
- non-same-store
|
$
|
1,712
|
|
|
$
|
550
|
|
|
$
|
1,162
|
|
|
211.3
|
%
|
|
|
$
|
4,546
|
|
|
$
|
1,197
|
|
|
$
|
3,349
|
|
|
279.8
|
%
|
Property operating
expenses, including
real estate taxes
- other properties and
dispositions
|
621
|
|
|
3,867
|
|
|
(3,246)
|
|
|
(83.9)
|
%
|
|
|
2,831
|
|
|
12,075
|
|
|
(9,244)
|
|
|
(76.6)
|
%
|
Total property
operating expenses,
including real
estate taxes
|
$
|
18,531
|
|
|
$
|
19,910
|
|
|
$
|
(1,379)
|
|
|
(6.9)
|
%
|
|
|
$
|
55,234
|
|
|
$
|
59,462
|
|
|
$
|
(4,228)
|
|
|
(7.1)
|
%
|
(1)
|
On-site compensation
for administration, leasing, and maintenance personnel.
|
Reconciliation of Net Income (Loss) Available to Common
Shareholders to Funds From Operations and Core Funds From
Operations
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 does not assume that the value of real estate assets
diminishes predictably over time, as implied by the historical cost
convention of GAAP and the recording of depreciation.
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.
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.
Due to the limitations of the Nareit FFO definition, we have
made certain interpretations in applying this definition. We
believe that all such interpretations not specifically identified
in the Nareit definition are consistent with this 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 its main business.
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 should not be considered a
substitute for operating results determined in accordance with
GAAP.
|
|
(in thousands, except per share
amounts)
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
|
9/30/2020
|
|
9/30/2019
|
Funds From
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
|
$
|
18,021
|
|
|
$
|
(5,387)
|
|
|
$
|
(8,439)
|
|
|
$
|
46,953
|
|
|
$
|
29,891
|
|
|
|
$
|
4,195
|
|
|
$
|
24,895
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests – Operating Partnership
|
|
1,387
|
|
|
(447)
|
|
|
(692)
|
|
|
4,202
|
|
|
3,145
|
|
|
|
248
|
|
|
2,550
|
|
Depreciation and
amortization
|
|
18,995
|
|
|
18,156
|
|
|
18,160
|
|
|
18,972
|
|
|
18,751
|
|
|
|
55,311
|
|
|
55,299
|
|
Less depreciation –
non real estate
|
|
(85)
|
|
|
(88)
|
|
|
(93)
|
|
|
(88)
|
|
|
(71)
|
|
|
|
(266)
|
|
|
(235)
|
|
Less depreciation –
partially owned entities
|
|
(31)
|
|
|
(33)
|
|
|
(282)
|
|
|
(454)
|
|
|
(452)
|
|
|
|
(346)
|
|
|
(1,604)
|
|
(Gain) loss on sale of
real estate
|
|
(25,676)
|
|
|
190
|
|
|
—
|
|
|
(57,850)
|
|
|
(39,105)
|
|
|
|
(25,486)
|
|
|
(39,774)
|
|
FFO applicable to
common shares and Units
|
|
$
|
12,611
|
|
|
$
|
12,391
|
|
|
$
|
8,654
|
|
|
$
|
11,735
|
|
|
$
|
12,159
|
|
|
|
$
|
33,656
|
|
|
$
|
41,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Core
FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casualty loss
(recovery)
|
|
545
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
|
545
|
|
|
—
|
|
Loss on extinguishment
of debt
|
|
4
|
|
|
17
|
|
|
—
|
|
|
864
|
|
|
1,087
|
|
|
|
21
|
|
|
1,496
|
|
Gain on litigation
settlement
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(300)
|
|
|
|
—
|
|
|
(6,586)
|
|
(Gain) loss on
marketable securities
|
|
—
|
|
|
(175)
|
|
|
3,553
|
|
|
(113)
|
|
|
—
|
|
|
|
3,378
|
|
|
—
|
|
(Discount) premium on
redemption of preferred
shares
|
|
1
|
|
|
(25)
|
|
|
(273)
|
|
|
—
|
|
—
|
|
|
|
(297)
|
|
|
—
|
|
Core FFO applicable
to common shares and Units
|
|
$
|
13,161
|
|
|
$
|
12,208
|
|
|
$
|
11,934
|
|
|
$
|
12,486
|
|
|
$
|
12,946
|
|
|
|
$
|
37,303
|
|
|
$
|
36,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
applicable to common shares and
Units
|
|
$
|
12,611
|
|
|
$
|
12,391
|
|
|
$
|
8,654
|
|
|
$
|
11,735
|
|
|
$
|
12,159
|
|
|
|
$
|
33,656
|
|
|
$
|
41,131
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
|
480
|
|
|
377
|
|
Funds from operations
applicable to common shares and
Units -
diluted
|
|
$
|
12,771
|
|
|
$
|
12,551
|
|
|
$
|
8,814
|
|
|
$
|
11,895
|
|
|
$
|
12,319
|
|
|
|
$
|
34,136
|
|
|
$
|
41,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core funds from
operations applicable to common shares and
Units
|
|
$
|
13,161
|
|
|
$
|
12,208
|
|
|
$
|
11,934
|
|
|
$
|
12,486
|
|
|
$
|
12,946
|
|
|
|
$
|
37,303
|
|
|
$
|
36,041
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
|
480
|
|
|
377
|
|
Core funds from
operations applicable to common shares and
Units -
diluted
|
|
$
|
13,321
|
|
|
$
|
12,368
|
|
|
$
|
12,094
|
|
|
$
|
12,646
|
|
|
$
|
13,106
|
|
|
|
$
|
37,783
|
|
|
$
|
36,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share and Unit - diluted
|
|
$
|
1.38
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.67)
|
|
|
$
|
3.89
|
|
|
$
|
2.54
|
|
|
|
$
|
0.33
|
|
|
$
|
2.11
|
|
FFO per share and
Unit - diluted
|
|
$
|
0.90
|
|
|
$
|
0.93
|
|
|
$
|
0.66
|
|
|
$
|
0.90
|
|
|
$
|
0.93
|
|
|
|
$
|
2.49
|
|
|
$
|
3.15
|
|
Core FFO per share
and Unit - diluted
|
|
$
|
0.94
|
|
|
$
|
0.91
|
|
|
$
|
0.90
|
|
|
$
|
0.96
|
|
|
$
|
0.99
|
|
|
|
$
|
2.76
|
|
|
$
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares and Units - diluted
|
|
14,143
|
|
|
13,558
|
|
|
13,401
|
|
|
13,188
|
|
|
13,087
|
|
|
|
13,704
|
|
|
13,174
|
|
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. Adjusted EBITDA is a non-GAAP measure and should not be
considered a substitute for operating results determined in
accordance with GAAP.
|
|
(in thousands)
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
|
9/30/2020
|
|
9/30/2019
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
|
$
|
19,629
|
|
|
$
|
(3,803)
|
|
|
$
|
(7,007)
|
|
|
$
|
48,658
|
|
|
$
|
31,596
|
|
|
|
$
|
8,819
|
|
|
$
|
30,011
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to preferred
unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
|
480
|
|
|
377
|
|
Noncontrolling
interests – Operating Partnership
|
|
1,387
|
|
|
(447)
|
|
|
(692)
|
|
|
4,202
|
|
|
3,145
|
|
|
|
248
|
|
|
2,550
|
|
Income (loss) before
noncontrolling interests –
Operating
Partnership
|
|
$
|
21,176
|
|
|
$
|
(4,090)
|
|
|
$
|
(7,539)
|
|
|
$
|
53,020
|
|
|
$
|
34,901
|
|
|
|
$
|
9,547
|
|
|
$
|
32,938
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
6,756
|
|
|
6,926
|
|
|
6,764
|
|
|
7,112
|
|
|
7,448
|
|
|
|
20,446
|
|
|
22,349
|
|
Loss on extinguishment
of debt
|
|
4
|
|
|
17
|
|
|
—
|
|
|
864
|
|
|
1,087
|
|
|
|
21
|
|
|
1,496
|
|
Depreciation/amortization related to real
estate
investments
|
|
18,964
|
|
|
18,123
|
|
|
17,878
|
|
|
18,518
|
|
|
18,299
|
|
|
|
54,965
|
|
|
53,695
|
|
Casualty loss
(recovery)
|
|
545
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
545
|
|
|
—
|
|
Interest
income
|
|
(256)
|
|
|
(331)
|
|
|
(597)
|
|
|
(415)
|
|
|
(402)
|
|
|
|
(1,184)
|
|
|
(1,211)
|
|
(Gain) loss on sale of
real estate and other
investments
|
|
(25,676)
|
|
|
190
|
|
|
—
|
|
|
(57,850)
|
|
|
(39,105)
|
|
|
|
(25,486)
|
|
|
(39,774)
|
|
Gain on litigation
settlement
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(300)
|
|
|
|
—
|
|
|
(6,586)
|
|
(Gain) loss on
marketable securities
|
|
—
|
|
|
(175)
|
|
|
3,553
|
|
|
(113)
|
|
|
—
|
|
|
|
3,378
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
21,513
|
|
|
$
|
20,660
|
|
|
$
|
20,059
|
|
|
$
|
21,136
|
|
|
$
|
21,928
|
|
|
|
$
|
62,232
|
|
|
$
|
62,907
|
|
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
(remainder)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
2021
|
|
$
|
35,281
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,281
|
|
|
4.9
|
%
|
|
5.36
|
%
|
2022
|
|
33,754
|
|
|
50,000
|
|
|
85,000
|
|
|
168,754
|
|
|
23.5
|
%
|
|
2.71
|
%
|
2023
|
|
43,996
|
|
|
—
|
|
|
—
|
|
|
43,996
|
|
|
6.1
|
%
|
|
4.02
|
%
|
2024
|
|
—
|
|
|
70,000
|
|
|
—
|
|
|
70,000
|
|
|
9.8
|
%
|
|
3.67
|
%
|
Thereafter
|
|
201,480
|
|
|
200,000
|
|
|
—
|
|
|
401,480
|
|
|
55.7
|
%
|
|
3.90
|
%
|
Total debt
|
|
$
|
314,511
|
|
|
$
|
320,000
|
|
|
$
|
85,000
|
|
|
$
|
719,511
|
|
|
100.0
|
%
|
|
3.68
|
%
|
(1)
|
Term loans have
variable interest rates that are fixed with interest rate swaps and
$50.0 million of our variable interest, 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.
|
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
Debt Balances
Outstanding
|
|
|
|
|
|
|
|
|
|
|
Secured fixed
rate
|
|
$
|
314,511
|
|
|
$
|
325,230
|
|
|
$
|
329,988
|
|
|
$
|
331,376
|
|
|
$
|
362,731
|
|
Unsecured fixed rate
line of credit(1)
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
Unsecured variable
rate line of credit
|
|
85,000
|
|
|
13,000
|
|
|
33,000
|
|
|
79
|
|
|
53,143
|
|
Unsecured term
loans
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
Unsecured senior
notes
|
|
125,000
|
|
|
125,000
|
|
|
125,000
|
|
|
125,000
|
|
|
125,000
|
|
Debt total
|
|
$
|
719,511
|
|
|
$
|
658,230
|
|
|
$
|
682,988
|
|
|
$
|
651,455
|
|
|
$
|
735,874
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage debt
weighted average interest rate
|
|
3.99
|
%
|
|
4.01
|
%
|
|
4.01
|
%
|
|
4.02
|
%
|
|
4.15
|
%
|
Lines of credit rate
(rate with swap)
|
|
3.35
|
%
|
|
2.97
|
%
|
|
3.18
|
%
|
|
3.52
|
%
|
|
3.73
|
%
|
Term loan rate (rate
with swap)
|
|
4.18
|
%
|
|
4.12
|
%
|
|
4.13
|
%
|
|
4.19
|
%
|
|
4.14
|
%
|
Senior notes
rate
|
|
3.78
|
%
|
|
3.78
|
%
|
|
3.78
|
%
|
|
3.78
|
%
|
|
3.78
|
%
|
|
|
(1)
|
A portion of our
primary line of credit is fixed through an interest rate
swap.
|
IRET
|
CAPITAL
ANALYSIS
|
(in thousands,
except per share and unit amounts)
|
|
|
|
Three Months Ended
|
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
Equity
Capitalization
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
12,976
|
|
|
12,827
|
|
|
12,164
|
|
|
12,099
|
|
|
11,625
|
|
Operating partnership
units outstanding
|
|
1,018
|
|
|
1,022
|
|
|
1,044
|
|
|
1,058
|
|
|
1,223
|
|
Total common shares
and units outstanding
|
|
13,994
|
|
|
13,849
|
|
|
13,208
|
|
|
13,157
|
|
|
12,848
|
|
Market price per
common share (closing price at end of period)
|
|
$
|
65.17
|
|
|
$
|
70.49
|
|
|
$
|
55.00
|
|
|
$
|
72.50
|
|
|
$
|
74.67
|
|
Equity
capitalization-common shares and units
|
|
$
|
911,989
|
|
|
$
|
976,216
|
|
|
$
|
726,440
|
|
|
$
|
953,883
|
|
|
$
|
959,360
|
|
Recorded book value of
preferred shares
|
|
$
|
93,530
|
|
|
$
|
93,579
|
|
|
$
|
96,046
|
|
|
$
|
99,456
|
|
|
$
|
99,456
|
|
Total equity
capitalization
|
|
$
|
1,005,519
|
|
|
$
|
1,069,795
|
|
|
$
|
822,486
|
|
|
$
|
1,053,339
|
|
|
$
|
1,058,816
|
|
|
|
|
|
|
|
|
|
|
|
|
Series D Preferred
Units
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Capitalization
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
719,511
|
|
|
$
|
658,230
|
|
|
$
|
682,988
|
|
|
$
|
651,455
|
|
|
$
|
735,874
|
|
Total
capitalization
|
|
$
|
1,741,590
|
|
|
$
|
1,744,585
|
|
|
$
|
1,522,034
|
|
|
$
|
1,721,354
|
|
|
$
|
1,811,250
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt to total
capitalization(1)
|
|
41.3
|
%
|
|
37.7
|
%
|
|
44.9
|
%
|
|
37.8
|
%
|
|
40.6
|
%
|
(1)
|
Total debt to total
market capitalization is total debt from the balance sheet divided
by the sum of total debt from the balance sheet, market value of
common shares and operating partnership units, and book value of
Series C preferred shares and Series D preferred units outstanding
at the end of the period.
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
|
9/30/2020
|
|
9/30/2019
|
Debt service coverage
ratio(1)
|
|
2.65
|
x
|
|
2.48
|
x
|
|
2.42
|
x
|
|
2.39
|
x
|
|
2.26
|
x
|
|
|
2.52
|
x
|
|
2.11
|
x
|
Adjusted
EBITDA/Interest expense plus preferred
distributions
and principal amortization
|
|
2.21
|
x
|
|
2.05
|
x
|
|
1.97
|
x
|
|
1.98
|
x
|
|
1.90
|
x
|
|
|
2.08
|
x
|
|
1.78
|
x
|
Net debt/Adjusted
EBITDA(2)
|
|
8.17
|
x
|
|
7.33
|
x
|
|
8.18
|
x
|
|
7.19
|
x
|
|
8.29
|
x
|
|
|
8.47
|
x
|
|
8.67
|
x
|
Net debt and
preferred equity/Adjusted EBITDA(2)
|
|
9.45
|
x
|
|
8.66
|
x
|
|
9.59
|
x
|
|
8.56
|
x
|
|
9.62
|
x
|
|
|
9.80
|
x
|
|
10.06
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares and
Units outstanding at record date
|
|
13,994
|
|
|
13,849
|
|
|
13,208
|
|
|
13,157
|
|
|
12,848
|
|
|
|
13,994
|
|
|
12,848
|
|
Total common
distribution declared
|
|
$
|
9,796
|
|
|
$
|
9,694
|
|
|
$
|
9,245
|
|
|
$
|
9,210
|
|
|
$
|
8,994
|
|
|
|
$
|
28,735
|
|
|
$
|
27,228
|
|
Common distribution
per share and Unit
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
|
$
|
2.10
|
|
|
$
|
2.10
|
|
Payout ratio (Core
FFO per diluted share and unit basis)(3)
|
|
74.5
|
%
|
|
76.9
|
%
|
|
77.8
|
%
|
|
72.9
|
%
|
|
70.7
|
%
|
|
|
76.1
|
%
|
|
76.1
|
%
|
|
|
(1)
|
Debt service coverage
ratio is computed by dividing Adjusted EBITDA by interest expense
and principal amortization. This term is a non-GAAP measure 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.
|
(2)
|
Net debt is the total
debt balance less cash and cash equivalents and net tax deferred
exchange proceeds (included within restricted cash). Adjusted
EBITDA is annualized for periods less than one year. 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.
|
(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.
|
IRET
|
COVID-19
UPDATE
|
(in thousands,
except property data amounts and percentages)
|
Collections by
State
|
|
|
|
|
Three Months Ended
September 30, 2020
|
State
|
Number
of
Communities
|
Number
of
Homes
|
% of Total
Revenue
|
Bad
Debt(1) as % of
Expected
Residential Revenue
|
Minnesota
|
32
|
|
5,438
|
|
50.5
|
%
|
1.9
|
%
|
Colorado
|
4
|
|
1,457
|
|
13.0
|
%
|
1.1
|
%
|
Nebraska
|
6
|
|
1,370
|
|
9.1
|
%
|
0.1
|
%
|
North
Dakota
|
15
|
|
2,422
|
|
18.5
|
%
|
—
|
|
South
Dakota
|
5
|
|
474
|
|
3.5
|
%
|
0.3
|
%
|
Montana
|
5
|
|
749
|
|
5.4
|
%
|
1.1
|
%
|
Total
|
67
|
|
11,910
|
|
100.0
|
%
|
1.2
|
%
|
|
|
(1)
|
Bad debt is reported
as a reduction of revenue.
|
Operating Statistics
|
|
Three Months
Ended
|
|
|
September 30,
2020
|
June 30,
2020
|
September 30,
2019
|
Bad debt as a % of
expected residential revenue
|
|
1.2
|
%
|
0.9
|
%
|
0.4
|
%
|
Percent of rent
deferrals to total residential revenue
|
|
0.1
|
%
|
0.5%
|
|
N/A
|
|
|
|
|
|
|
Same-Store
Communities
|
|
|
|
|
New lease
rates
|
|
0.0
|
%
|
(1.2)
|
%
|
(1.4)
|
%
|
Renewal
rates
|
|
0.6
|
%
|
3.3
|
%
|
5.2
|
%
|
|
|
|
|
|
Weighted average
occupancy
|
|
94.4
|
%
|
94.6
|
%
|
93.5
|
%
|
Physical occupancy, at
end of period
|
|
95.3
|
%
|
94.8
|
%
|
94.3
|
%
|
Liquidity and Near-Term Funding Obligations
Liquidity
Profile
|
September 30,
2020
|
June 30,
2020
|
Unsecured credit
facility - committed
|
$
|
250,000
|
|
$
|
250,000
|
|
Balance
outstanding
|
|
135,000
|
|
|
63,000
|
|
Amount available on
line of credit
|
$
|
115,000
|
|
$
|
187,000
|
|
Cash and cash
equivalents
|
|
16,804
|
|
|
52,714
|
|
Total
liquidity
|
$
|
131,804
|
|
$
|
239,714
|
|
|
|
|
Near-Term Funding
Obligations
|
|
|
Unfunded construction
loan and mezzanine loan commitments - 2020 and 2021
|
$
|
27,248
|
|
$
|
34,272
|
|
2020 and 2021
Debt maturities
|
|
35,281
|
|
|
44,962
|
|
Total
|
$
|
62,529
|
|
$
|
79,234
|
|
Ratio of liquidity
to near-term funding obligations
|
|
2.1
|
|
|
3.0
|
|
IRET
|
SAME-STORE THIRD
QUARTER COMPARISONS
|
(in thousands,
except property data amounts and percentages)
|
|
|
|
Apartment Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
|
Q3
2020
|
|
Q3
2019
|
|
%
Change
|
|
Q3
2020
|
|
Q3
2019
|
|
%
Change
|
|
Q3
2020
|
|
Q3
2019
|
|
%
Change
|
Minneapolis,
MN
|
|
1,987
|
|
|
$
|
8,892
|
|
|
$
|
8,857
|
|
|
0.4
|
%
|
|
$
|
3,858
|
|
|
$
|
3,920
|
|
|
(1.6)
|
%
|
|
$
|
5,034
|
|
|
$
|
4,937
|
|
|
2.0
|
%
|
Rochester,
MN
|
|
1,711
|
|
|
6,351
|
|
|
6,446
|
|
|
(1.5)
|
%
|
|
3,074
|
|
|
2,386
|
|
|
28.8
|
%
|
|
3,277
|
|
|
4,060
|
|
|
(19.3)
|
%
|
Denver, CO
|
|
664
|
|
|
3,724
|
|
|
3,855
|
|
|
(3.4)
|
%
|
|
1,298
|
|
|
1,197
|
|
|
8.4
|
%
|
|
2,426
|
|
|
2,658
|
|
|
(8.7)
|
%
|
Grand Forks,
ND
|
|
865
|
|
|
2,887
|
|
|
2,822
|
|
|
2.3
|
%
|
|
1,072
|
|
|
1,133
|
|
|
(5.4)
|
%
|
|
1,815
|
|
|
1,689
|
|
|
7.5
|
%
|
Omaha, NE
|
|
1,370
|
|
|
3,884
|
|
|
3,738
|
|
|
3.9
|
%
|
|
1,790
|
|
|
1,740
|
|
|
2.9
|
%
|
|
2,094
|
|
|
1,998
|
|
|
4.8
|
%
|
St. Cloud,
MN
|
|
1,190
|
|
|
3,548
|
|
|
3,517
|
|
|
0.9
|
%
|
|
1,603
|
|
|
1,557
|
|
|
3.0
|
%
|
|
1,945
|
|
|
1,960
|
|
|
(0.8)
|
%
|
Bismarck,
ND
|
|
845
|
|
|
2,796
|
|
|
2,707
|
|
|
3.3
|
%
|
|
1,071
|
|
|
1,069
|
|
|
0.2
|
%
|
|
1,725
|
|
|
1,638
|
|
|
5.3
|
%
|
Billings,
MT
|
|
749
|
|
|
2,305
|
|
|
2,144
|
|
|
7.5
|
%
|
|
800
|
|
|
882
|
|
|
(9.3)
|
%
|
|
1,505
|
|
|
1,262
|
|
|
19.3
|
%
|
Minot, ND
|
|
712
|
|
|
2,170
|
|
|
2,117
|
|
|
2.5
|
%
|
|
1,003
|
|
|
1,035
|
|
|
(3.1)
|
%
|
|
1,167
|
|
|
1,082
|
|
|
7.9
|
%
|
Rapid City,
SD
|
|
474
|
|
|
1,486
|
|
|
1,424
|
|
|
4.4
|
%
|
|
629
|
|
|
574
|
|
|
9.6
|
%
|
|
857
|
|
|
850
|
|
|
0.8
|
%
|
Same-Store
Total
|
|
10,567
|
|
|
$
|
38,043
|
|
|
$
|
37,627
|
|
|
1.1
|
%
|
|
$
|
16,198
|
|
|
$
|
15,493
|
|
|
4.6
|
%
|
|
$
|
21,845
|
|
|
$
|
22,134
|
|
|
(1.3)
|
%
|
|
|
% of NOI
Contribution
|
|
Weighted Average
Occupancy (1)
|
|
Average
Monthly
Rental Rate
(2)
|
|
Average
Monthly
Revenue per
Occupied Home (3)
|
Regions
|
|
|
Q3
2020
|
|
Q3
2019
|
|
Growth
|
|
Q3
2020
|
|
Q3
2019
|
|
%
Change
|
|
Q3
2020
|
|
Q3
2019
|
|
%
Change
|
Minneapolis,
MN
|
|
23.1
|
%
|
|
93.4
|
%
|
|
90.9
|
%
|
|
2.5
|
%
|
|
$
|
1,496
|
|
|
$
|
1,509
|
|
|
(0.9)
|
%
|
|
$
|
1,596
|
|
|
$
|
1,635
|
|
|
(2.4)
|
%
|
Rochester,
MN
|
|
15.0
|
%
|
|
94.1
|
%
|
|
94.6
|
%
|
|
(0.5)
|
%
|
|
1,249
|
|
|
1,257
|
|
|
(0.6)
|
%
|
|
1,315
|
|
|
1,327
|
|
|
(0.9)
|
%
|
Denver, CO
|
|
11.1
|
%
|
|
92.8
|
%
|
|
94.2
|
%
|
|
(1.4)
|
%
|
|
1,801
|
|
|
1,855
|
|
|
(2.9)
|
%
|
|
2,014
|
|
|
2,055
|
|
|
(2.0)
|
%
|
Grand Forks,
ND
|
|
8.3
|
%
|
|
95.5
|
%
|
|
95.9
|
%
|
|
(0.4)
|
%
|
|
1,089
|
|
|
1,073
|
|
|
1.5
|
%
|
|
1,165
|
|
|
1,134
|
|
|
2.7
|
%
|
Omaha, NE
|
|
9.6
|
%
|
|
93.8
|
%
|
|
93.0
|
%
|
|
0.8
|
%
|
|
913
|
|
|
900
|
|
|
1.4
|
%
|
|
1,008
|
|
|
977
|
|
|
3.2
|
%
|
St. Cloud,
MN
|
|
8.9
|
%
|
|
94.4
|
%
|
|
93.8
|
%
|
|
0.6
|
%
|
|
965
|
|
|
959
|
|
|
0.6
|
%
|
|
1,053
|
|
|
1,050
|
|
|
0.3
|
%
|
Bismarck,
ND
|
|
7.9
|
%
|
|
96.1
|
%
|
|
93.8
|
%
|
|
2.3
|
%
|
|
1,062
|
|
|
1,055
|
|
|
0.7
|
%
|
|
1,148
|
|
|
1,138
|
|
|
0.9
|
%
|
Billings,
MT
|
|
6.9
|
%
|
|
97.4
|
%
|
|
95.0
|
%
|
|
2.4
|
%
|
|
960
|
|
|
941
|
|
|
2.0
|
%
|
|
1,053
|
|
|
1,004
|
|
|
4.9
|
%
|
Minot, ND
|
|
5.3
|
%
|
|
94.9
|
%
|
|
93.9
|
%
|
|
1.0
|
%
|
|
1,002
|
|
|
999
|
|
|
0.3
|
%
|
|
1,070
|
|
|
1,055
|
|
|
1.4
|
%
|
Rapid City,
SD
|
|
3.9
|
%
|
|
96.5
|
%
|
|
96.1
|
%
|
|
0.4
|
%
|
|
986
|
|
|
963
|
|
|
2.4
|
%
|
|
1,082
|
|
|
1,042
|
|
|
3.8
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.4
|
%
|
|
93.5
|
%
|
|
0.9
|
%
|
|
$
|
1,178
|
|
|
$
|
1,178
|
|
|
—
|
|
|
$
|
1,271
|
|
|
$
|
1,269
|
|
|
0.2
|
%
|
|
|
(1)
|
Weighted average
occupancy is defined as the percentage resulting from dividing
actual rental revenue by scheduled rent. Scheduled rental revenue
represents the value of all apartment homes, with occupied
apartment homes valued at contractual rates pursuant to leases and
vacant apartment homes valued at estimated market rents. When
calculating actual rents for occupied apartment 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 apartment homes.
|
(2)
|
Average monthly
rental rate is scheduled rent divided by the total number of
apartment homes.
|
(3)
|
Average monthly
revenue per occupied home is defined as total rental revenues
divided by the weighted average occupied apartment homes for the
period.
|
IRET
|
SAME-STORE SEQUENTIAL
QUARTER COMPARISONS
|
(in thousands,
except property data amounts and percentages)
|
|
|
|
Apartment Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
|
Q3
2020
|
|
Q2
2020
|
|
%
Change
|
|
Q3
2020
|
|
Q2
2020
|
|
%
Change
|
|
Q3
2020
|
|
Q2
2020
|
|
%
Change
|
Minneapolis,
MN
|
|
1,987
|
|
|
$
|
8,892
|
|
|
$
|
9,068
|
|
|
(1.9)
|
%
|
|
$
|
3,858
|
|
|
$
|
3,485
|
|
|
10.8
|
%
|
|
$
|
5,034
|
|
|
$
|
5,583
|
|
|
(9.9)
|
%
|
Rochester,
MN
|
|
1,711
|
|
|
6,351
|
|
|
6,370
|
|
|
(0.3)
|
%
|
|
3,074
|
|
|
2,802
|
|
|
9.7
|
%
|
|
3,277
|
|
|
3,568
|
|
|
(8.2)
|
%
|
Denver, CO
|
|
664
|
|
|
3,724
|
|
|
3,701
|
|
|
0.6
|
%
|
|
1,298
|
|
|
1,095
|
|
|
18.5
|
%
|
|
2,426
|
|
|
2,606
|
|
|
(6.9)
|
%
|
Grand Forks,
ND
|
|
865
|
|
|
2,887
|
|
|
2,840
|
|
|
1.7
|
%
|
|
1,072
|
|
|
1,136
|
|
|
(5.6)
|
%
|
|
1,815
|
|
|
1,704
|
|
|
6.5
|
%
|
Omaha, NE
|
|
1,370
|
|
|
3,884
|
|
|
3,838
|
|
|
1.2
|
%
|
|
1,790
|
|
|
1,783
|
|
|
0.4
|
%
|
|
2,094
|
|
|
2,055
|
|
|
1.9
|
%
|
St. Cloud,
MN
|
|
1,190
|
|
|
3,548
|
|
|
3,546
|
|
|
0.1
|
%
|
|
1,603
|
|
|
1,524
|
|
|
5.2
|
%
|
|
1,945
|
|
|
2,022
|
|
|
(3.8)
|
%
|
Bismarck,
ND
|
|
845
|
|
|
2,796
|
|
|
2,766
|
|
|
1.1
|
%
|
|
1,071
|
|
|
1,053
|
|
|
1.7
|
%
|
|
1,725
|
|
|
1,713
|
|
|
0.7
|
%
|
Billings,
MT
|
|
749
|
|
|
2,305
|
|
|
2,139
|
|
|
7.8
|
%
|
|
800
|
|
|
838
|
|
|
(4.5)
|
%
|
|
1,505
|
|
|
1,301
|
|
|
15.7
|
%
|
Minot, ND
|
|
712
|
|
|
2,170
|
|
|
2,161
|
|
|
0.4
|
%
|
|
1,003
|
|
|
969
|
|
|
3.5
|
%
|
|
1,167
|
|
|
1,192
|
|
|
(2.1)
|
%
|
Rapid City,
SD
|
|
474
|
|
|
1,486
|
|
|
1,402
|
|
|
6.0
|
%
|
|
629
|
|
|
634
|
|
|
(0.8)
|
%
|
|
857
|
|
|
768
|
|
|
11.6
|
%
|
Same-Store
Total
|
|
10,567
|
|
|
$
|
38,043
|
|
|
$
|
37,831
|
|
|
0.6
|
%
|
|
$
|
16,198
|
|
|
$
|
15,319
|
|
|
5.7
|
%
|
|
$
|
21,845
|
|
|
$
|
22,512
|
|
|
(3.0)
|
%
|
|
|
% of NOI
Contribution
|
|
Weighted Average
Occupancy
|
|
Average
Monthly
Rental Rate
|
|
Average
Monthly
Revenue per Occupied Home
|
Regions
|
|
|
Q3
2020
|
|
Q2
2020
|
|
Growth
|
|
Q3
2020
|
|
Q2
2020
|
|
%
Change
|
|
Q3
2020
|
|
Q2
2020
|
|
%
Change
|
Minneapolis,
MN
|
|
23.1
|
%
|
|
93.4
|
%
|
|
94.0
|
%
|
|
(0.6)
|
%
|
|
$
|
1,496
|
|
|
$
|
1,494
|
|
|
0.1
|
%
|
|
$
|
1,596
|
|
|
$
|
1,619
|
|
|
(1.3)
|
%
|
Rochester,
MN
|
|
15.0
|
%
|
|
94.1
|
%
|
|
95.3
|
%
|
|
(1.2)
|
%
|
|
1,249
|
|
|
1,248
|
|
|
0.1
|
%
|
|
1,315
|
|
|
1,303
|
|
|
0.9
|
%
|
Denver, CO
|
|
11.1
|
%
|
|
92.8
|
%
|
|
92.9
|
%
|
|
(0.1)
|
%
|
|
1,801
|
|
|
1,827
|
|
|
(1.4)
|
%
|
|
2,014
|
|
|
2,001
|
|
|
0.7
|
%
|
Grand Forks,
ND
|
|
8.3
|
%
|
|
95.5
|
%
|
|
94.8
|
%
|
|
0.7
|
%
|
|
1,089
|
|
|
1,079
|
|
|
0.9
|
%
|
|
1,165
|
|
|
1,154
|
|
|
1.0
|
%
|
Omaha, NE
|
|
9.6
|
%
|
|
93.8
|
%
|
|
94.9
|
%
|
|
(1.1)
|
%
|
|
913
|
|
|
904
|
|
|
1.0
|
%
|
|
1,008
|
|
|
984
|
|
|
2.3
|
%
|
St. Cloud,
MN
|
|
8.9
|
%
|
|
94.4
|
%
|
|
93.7
|
%
|
|
0.7
|
%
|
|
965
|
|
|
955
|
|
|
1.0
|
%
|
|
1,053
|
|
|
1,060
|
|
|
(0.6)
|
%
|
Bismarck,
ND
|
|
7.9
|
%
|
|
96.1
|
%
|
|
96.2
|
%
|
|
(0.1)
|
%
|
|
1,062
|
|
|
1,053
|
|
|
0.9
|
%
|
|
1,148
|
|
|
1,134
|
|
|
1.2
|
%
|
Billings,
MT
|
|
6.9
|
%
|
|
97.4
|
%
|
|
94.4
|
%
|
|
3.0
|
%
|
|
960
|
|
|
944
|
|
|
1.7
|
%
|
|
1,053
|
|
|
1,008
|
|
|
4.8
|
%
|
Minot, ND
|
|
5.3
|
%
|
|
94.9
|
%
|
|
97.0
|
%
|
|
(2.1)
|
%
|
|
1,002
|
|
|
992
|
|
|
1.0
|
%
|
|
1,070
|
|
|
1,043
|
|
|
2.5
|
%
|
Rapid City,
SD
|
|
3.9
|
%
|
|
96.5
|
%
|
|
94.3
|
%
|
|
2.2
|
%
|
|
986
|
|
|
966
|
|
|
2.1
|
%
|
|
1,082
|
|
|
1,046
|
|
|
3.8
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.4
|
%
|
|
94.6
|
%
|
|
(0.2)
|
%
|
|
$
|
1,178
|
|
|
$
|
1,172
|
|
|
0.5
|
%
|
|
$
|
1,271
|
|
|
$
|
1,262
|
|
|
0.8
|
%
|
IRET
|
SAME-STORE
YEAR-TO-DATE COMPARISONS
|
(in thousands,
except property data amounts and percentages)
|
|
|
|
Apartment Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
|
2020
|
|
2019
|
|
%
Change
|
|
2020
|
|
2019
|
|
%
Change
|
|
2020
|
|
2019
|
|
%
Change
|
Minneapolis,
MN
|
|
1,987
|
|
|
$
|
27,072
|
|
|
$
|
26,541
|
|
|
2.0
|
%
|
|
$
|
11,254
|
|
|
$
|
11,194
|
|
|
0.5
|
%
|
|
$
|
15,818
|
|
|
$
|
15,347
|
|
|
3.1
|
%
|
Rochester,
MN
|
|
1,711
|
|
|
19,260
|
|
|
18,962
|
|
|
1.6
|
%
|
|
8,699
|
|
|
7,290
|
|
|
19.3
|
%
|
|
10,561
|
|
|
11,672
|
|
|
(9.5)
|
%
|
Denver, CO
|
|
664
|
|
|
11,352
|
|
|
11,333
|
|
|
0.2
|
%
|
|
3,652
|
|
|
3,615
|
|
|
1.0
|
%
|
|
7,700
|
|
|
7,718
|
|
|
(0.2)
|
%
|
Grand Forks,
ND
|
|
865
|
|
|
8,578
|
|
|
8,330
|
|
|
3.0
|
%
|
|
3,515
|
|
|
3,578
|
|
|
(1.8)
|
%
|
|
5,063
|
|
|
4,752
|
|
|
6.5
|
%
|
Omaha, NE
|
|
1,370
|
|
|
11,536
|
|
|
11,197
|
|
|
3.0
|
%
|
|
5,199
|
|
|
5,149
|
|
|
1.0
|
%
|
|
6,337
|
|
|
6,048
|
|
|
4.8
|
%
|
St. Cloud,
MN
|
|
1,190
|
|
|
10,705
|
|
|
10,577
|
|
|
1.2
|
%
|
|
4,883
|
|
|
4,890
|
|
|
(0.1)
|
%
|
|
5,822
|
|
|
5,687
|
|
|
2.4
|
%
|
Bismarck,
ND
|
|
845
|
|
|
8,297
|
|
|
8,042
|
|
|
3.2
|
%
|
|
3,293
|
|
|
3,232
|
|
|
1.9
|
%
|
|
5,004
|
|
|
4,810
|
|
|
4.0
|
%
|
Billings,
MT
|
|
749
|
|
|
6,622
|
|
|
6,373
|
|
|
3.9
|
%
|
|
2,464
|
|
|
2,457
|
|
|
0.3
|
%
|
|
4,158
|
|
|
3,916
|
|
|
6.2
|
%
|
Minot, ND
|
|
712
|
|
|
6,457
|
|
|
6,380
|
|
|
1.2
|
%
|
|
2,983
|
|
|
3,078
|
|
|
(3.1)
|
%
|
|
3,474
|
|
|
3,302
|
|
|
5.2
|
%
|
Rapid City,
SD
|
|
474
|
|
|
4,329
|
|
|
4,162
|
|
|
4.0
|
%
|
|
1,915
|
|
|
1,707
|
|
|
12.2
|
%
|
|
2,414
|
|
|
2,455
|
|
|
(1.7)
|
%
|
Same-Store
Total
|
|
10,567
|
|
|
$
|
114,208
|
|
|
$
|
111,897
|
|
|
2.1
|
%
|
|
$
|
47,857
|
|
|
$
|
46,190
|
|
|
3.6
|
%
|
|
$
|
66,351
|
|
|
$
|
65,707
|
|
|
1.0
|
%
|
|
|
% of NOI
Contribution
|
|
Weighted Average
Occupancy
|
|
Average
Monthly
Rental Rate
|
|
Average
Monthly
Revenue per Occupied Home
|
Regions
|
|
|
2020
|
|
2019
|
|
Growth
|
|
2020
|
|
2019
|
|
%
Change
|
|
2020
|
|
2019
|
|
%
Change
|
Minneapolis,
MN
|
|
23.9
|
%
|
|
93.9
|
%
|
|
93.0
|
%
|
|
0.9
|
%
|
|
$
|
1,492
|
|
|
$
|
1,475
|
|
|
1.2
|
%
|
|
$
|
1,613
|
|
|
$
|
1,596
|
|
|
1.1
|
%
|
Rochester,
MN
|
|
15.9
|
%
|
|
95.5
|
%
|
|
95.5
|
%
|
|
—
|
|
|
1,245
|
|
|
1,232
|
|
|
1.1
|
%
|
|
1,310
|
|
|
1,289
|
|
|
1.6
|
%
|
Denver, CO
|
|
11.6
|
%
|
|
93.6
|
%
|
|
94.3
|
%
|
|
(0.7)
|
%
|
|
1,824
|
|
|
1,830
|
|
|
(0.3)
|
%
|
|
2,029
|
|
|
2,010
|
|
|
0.9
|
%
|
Grand Forks,
ND
|
|
7.6
|
%
|
|
95.6
|
%
|
|
95.4
|
%
|
|
0.2
|
%
|
|
1,078
|
|
|
1,072
|
|
|
0.6
|
%
|
|
1,152
|
|
|
1,121
|
|
|
2.8
|
%
|
Omaha, NE
|
|
9.6
|
%
|
|
94.3
|
%
|
|
93.9
|
%
|
|
0.4
|
%
|
|
903
|
|
|
886
|
|
|
1.9
|
%
|
|
992
|
|
|
968
|
|
|
2.6
|
%
|
St. Cloud,
MN
|
|
8.8
|
%
|
|
94.3
|
%
|
|
95.0
|
%
|
|
(0.7)
|
%
|
|
955
|
|
|
950
|
|
|
0.5
|
%
|
|
1,060
|
|
|
1,040
|
|
|
1.9
|
%
|
Bismarck,
ND
|
|
7.5
|
%
|
|
96.2
|
%
|
|
94.8
|
%
|
|
1.4
|
%
|
|
1,053
|
|
|
1,043
|
|
|
1.0
|
%
|
|
1,133
|
|
|
1,115
|
|
|
1.8
|
%
|
Billings,
MT
|
|
6.3
|
%
|
|
95.9
|
%
|
|
95.7
|
%
|
|
0.2
|
%
|
|
946
|
|
|
923
|
|
|
2.5
|
%
|
|
1,025
|
|
|
988
|
|
|
3.7
|
%
|
Minot, ND
|
|
5.2
|
%
|
|
95.7
|
%
|
|
94.9
|
%
|
|
0.8
|
%
|
|
995
|
|
|
997
|
|
|
(0.2)
|
%
|
|
1,053
|
|
|
1,049
|
|
|
0.4
|
%
|
Rapid City,
SD
|
|
3.6
|
%
|
|
95.9
|
%
|
|
96.0
|
%
|
|
(0.1)
|
%
|
|
968
|
|
|
946
|
|
|
2.3
|
%
|
|
1,058
|
|
|
1,016
|
|
|
4.1
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.8
|
%
|
|
94.5
|
%
|
|
0.3
|
%
|
|
$
|
1,171
|
|
|
$
|
1,160
|
|
|
0.9
|
%
|
|
$
|
1,267
|
|
|
$
|
1,245
|
|
|
1.8
|
%
|
IRET
|
PORTFOLIO
SUMMARY(1)
|
|
|
|
Three Months
Ended
|
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
Number of Apartment
Homes at Period End
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
10,567
|
|
|
11,257
|
|
|
11,257
|
|
|
10,402
|
|
|
11,785
|
|
Non-Same-Store
|
|
1,343
|
|
|
878
|
|
|
878
|
|
|
1,551
|
|
|
1,551
|
|
All
Communities
|
|
11,910
|
|
|
12,135
|
|
|
12,135
|
|
|
11,953
|
|
|
13,336
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Monthly
Rental Rate(2)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
1,178
|
|
|
$
|
1,142
|
|
|
$
|
1,135
|
|
|
$
|
1,085
|
|
|
$
|
1,062
|
|
Non-Same-Store
|
|
1,597
|
|
|
1,594
|
|
|
1,572
|
|
|
1,722
|
|
|
1,742
|
|
All
Communities
|
|
$
|
1,210
|
|
|
$
|
1,175
|
|
|
$
|
1,163
|
|
|
$
|
1,168
|
|
|
$
|
1,123
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Monthly
Revenue per Occupied Apartment Home(3)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
1,271
|
|
|
$
|
1,232
|
|
|
$
|
1,237
|
|
|
$
|
1,169
|
|
|
$
|
1,141
|
|
Non-Same-Store
|
|
1,729
|
|
|
1,681
|
|
|
1,658
|
|
|
1,869
|
|
|
1,887
|
|
All
Communities
|
|
$
|
1,307
|
|
|
$
|
1,264
|
|
|
$
|
1,263
|
|
|
$
|
1,260
|
|
|
$
|
1,210
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Occupancy(4)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
94.4
|
%
|
|
94.6
|
%
|
|
95.4
|
%
|
|
94.0
|
%
|
|
93.3
|
%
|
Non-Same-Store
|
|
93.9
|
%
|
|
93.9
|
%
|
|
93.3
|
%
|
|
93.0
|
%
|
|
94.2
|
%
|
All
Communities
|
|
94.3
|
%
|
|
94.5
|
%
|
|
95.2
|
%
|
|
93.8
|
%
|
|
93.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses as
a % of Scheduled Rent
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
43.4
|
%
|
|
41.5
|
%
|
|
45.0
|
%
|
|
43.5
|
%
|
|
43.0
|
%
|
Non-Same-Store
|
|
39.7
|
%
|
|
36.1
|
%
|
|
37.0
|
%
|
|
33.8
|
%
|
|
38.1
|
%
|
All
Communities
|
|
43.0
|
%
|
|
41.0
|
%
|
|
44.3
|
%
|
|
41.6
|
%
|
|
42.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Expenditures per Apartment Home – Same-Store
|
|
$
|
293
|
|
|
$
|
262
|
|
|
$
|
151
|
|
|
$
|
427
|
|
|
$
|
178
|
|
(1)
|
Previously reported
amounts are not revised for changes in the composition of the
same-store properties pool.
|
(2)
|
Average monthly
rental rate is scheduled rent divided by the total number of
apartment homes. Scheduled rental revenue represents the value of
all apartment homes, with occupied apartment homes valued at
contractual rates pursuant to leases and vacant apartment homes
valued at estimated market rents. When calculating actual rents for
occupied apartment 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 apartment
homes.
|
(3)
|
Average monthly
revenue per occupied home is defined as total rental revenues
divided by the weighted average occupied apartment 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
REITs.
|
IRET
|
CAPITAL
EXPENDITURES
|
($ in thousands,
except per home amounts)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2020
|
|
9/30/2019
|
|
|
9/30/2020
|
|
9/30/2019
|
Total Same-Store
Apartment Homes
|
|
10,567
|
|
|
10,567
|
|
|
|
10,567
|
|
|
10,567
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
$
|
1,079
|
|
|
$
|
855
|
|
|
|
$
|
2,553
|
|
|
$
|
2,155
|
|
Furniture &
Equipment
|
|
8
|
|
|
83
|
|
|
|
243
|
|
|
219
|
|
Building –
Interior
|
|
62
|
|
|
6
|
|
|
|
275
|
|
|
180
|
|
Building –
Exterior
|
|
1,157
|
|
|
545
|
|
|
|
2,975
|
|
|
1,130
|
|
Landscaping &
Grounds
|
|
790
|
|
|
313
|
|
|
|
1,165
|
|
|
833
|
|
Capital
Expenditures - Same-Store
|
|
$
|
3,096
|
|
|
$
|
1,802
|
|
|
|
$
|
7,211
|
|
|
$
|
4,517
|
|
Capital
Expenditures per Apartment Home - Same-Store
|
|
$
|
293
|
|
|
$
|
171
|
|
|
|
$
|
682
|
|
|
$
|
427
|
|
|
|
|
|
|
|
|
|
|
|
Value Add
|
|
$
|
3,139
|
|
|
$
|
1,673
|
|
|
|
$
|
7,305
|
|
|
$
|
2,379
|
|
Total Capital Spend
- Same-Store
|
|
$
|
6,235
|
|
|
$
|
3,475
|
|
|
|
$
|
14,516
|
|
|
$
|
6,896
|
|
Total Capital Spend
per Apartment Home - Same-Store
|
|
$
|
590
|
|
|
$
|
329
|
|
|
|
$
|
1,374
|
|
|
$
|
653
|
|
|
|
|
|
|
|
|
|
|
|
All Properties -
Weighted Average Apartment Homes
|
|
11,600
|
|
|
13,058
|
|
|
|
11,456
|
|
|
13,058
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
$
|
3,007
|
|
|
$
|
2,462
|
|
|
|
$
|
8,191
|
|
|
$
|
6,189
|
|
Capital
Expenditures per Apartment Home
|
|
$
|
259
|
|
|
$
|
189
|
|
|
|
$
|
715
|
|
|
$
|
474
|
|
|
|
|
|
|
|
|
|
|
|
Value Add
|
|
4,209
|
|
|
1,878
|
|
|
|
10,405
|
|
|
2,997
|
|
Acquisition
Capital
|
|
730
|
|
|
1,645
|
|
|
|
1,265
|
|
|
1,899
|
|
Total Capital
Spend
|
|
7,946
|
|
|
5,985
|
|
|
|
19,861
|
|
|
11,085
|
|
Total Capital Spend
per Apartment Home
|
|
$
|
685
|
|
|
$
|
458
|
|
|
|
$
|
1,734
|
|
|
$
|
849
|
|
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SOURCE IRET