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To thrive in real estate investing, you don’t need to work hard – you need to work smarter. Getting access to real estate data is the ultimate way to start…
Real estate investing and buying an investment property can be done with the intention of making money in a few years after the value of the asset has appreciated. However,…
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Editor’s Note: INtown receives dozens of press releases daily concerning COVID-19 related news and events. We’ve rounded up those of interest to our coverage area.
The YMCA of Metro Atlanta has begun a phased approach to opening its metro Atlanta. locations. There will be temperature checks, social distancing, and masks will be required. All activities will be limited to individual workouts with trained staff positioned to monitor and enforce social distancing. Starting May 18, lap swim, group exercise and select tennis facilities will be available by online reservation. As operations normalize, the Y will pivot to phase two in mid-June, which includes re-opening additional areas within Y facilities for broader use. Already open: Carl E. Sanders YMCA and East Lake Family YMCA Opening May 25: The Villages at Carver Family YMCA and Arthur M. Blank Youth YMCA. Opening June 1: South DeKalb Family YMCA and Decatur Family YMCA. For more information, visit https://ymcaatlanta.org/.
Hopkins and Company is providing complimentary meals to hospitality and food industry workers impacted by COVID-19 through its newly launched nonprofit arm, Good Food Works Foundation, The restaurant group will have a pop-up at Colony Square over the next two Sundays (May 17 and 24) from 4 to 6 p.m. Individuals in need can stop by The Front Loop along Peachtree Street to pick up food.
Global biopharma company UCB, with U.S. headquarters in Atlanta, and local restaurant Lazy Betty, are helping to deliver healthy, gourmet meals to Grady Memorial Hospital healthcare workers throughout the month of May. In addition to supporting meals for healthcare workers, UCB has also donated to community efforts in Atlanta, as well as encouraged employees to take advantage of up to 32 hours paid-time-off to volunteer in support of COVID response.
Atlanta-based accounting firm Terminus is holding an employee fundraiser for ATLFAMILYMEAL, the nonprofit initiative to support hospitality workers in need. The company will match up to $5,000 in contributions. Since debuting in March, ATLFAMILYMEAL has delivered more than 25,000 meals to hospitality workers from over 200 metro Atlanta restaurants, breweries, and hospitality businesses.
SK Innovation has made a $400,000 donation to support Augusta University and Augusta University Health’s response and associated expenses pertaining to the COVID-19 pandemic. Specifically, the SK innovation gift will be used to support expenses associated with physicians at the Medical College of Georgia, the state’s only public medical school, and health care providers at AU Health providing free virtual telehealth COVID-19 screening visits through the AU Health ExpressCare app and testing through eleven drive-thru specimen collection locations statewide.
The East Lake Foundation has announced a $30,000 donation from the Greater Atlanta COVID-19 Response and Recovery Fund, a joint effort from the Community Foundation for Greater Atlanta and United Way of Greater Atlanta. These funds will benefit the East Lake COVID-19 Relief Fund and the Drew Charter School Opportunity Fund for COVID-19 relief. This donation will provide $22,500 for immediate support for families at The Villages of East Lake Apartments experiencing economic hardship as a result of COVID-19 and $7,500 to support Drew Charter School families who are struggling during this trying time.
Nonprofit Frontline Foods Atlanta, which is paying local restaurants to make and deliver meals to healthcare workers on the frontline of the COVID-19 pandemic, announced that the cast of Georgia-filmed Netflix series “Ozark” sponsored lunch for frontline workers on May 15 at Grady Hospital, Emory Johns Creek and Greater Atlanta Women’s Healthcare at Emory Midtown. Their donated funds went directly to Sweet Auburn BBQ, Corporate Caterers and Supreme Burger. The cast of CBS series “All Rise” donated for lunch from Sweet Auburn BBQ and dinner from Salaryman on May 16 for the healthcare workers at University Hospital Emory Main Campus.
The Chattahoochee River National Recreation Area is increasing recreational access starting Saturday, May 16. All parking areas are open except for Columns Drive and Gold Branch, which will reopen on May 18. Entry fees have been waived. For public health safety, comfort stations, picnic areas, and Hewlett Lodge Visitors Center remain closed.
Explore Georgia has created family-friendly activities on its website to help parents explore, engage, educate and stimulate their kids without leaving the house. You’ll find coloring pages, puzzles, photo challenges and chef demonstrations. Find out more at the Explore Georgia from Home interactive site.
The post Coronavirus Briefs: YMCA reopens, feeding healthcare workers, community donations, and more appeared first on Atlanta INtown Paper.
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The Advisory Council for the Reopening of the City of Atlanta has submitted a 119-page report with final recommendations for a gradual reopening to Mayor Keisha Lance Bottoms.
The mayor will review the advisory council’s recommendations and the current state of COVID-19 cases in the city and will provide additional guidance in the coming weeks to ensure a safe and data-driven reopening of the city.
Informed by economic indicators and medical science, the report contains evidence-based short, mid, and long-range recommendations for the safe and data-driven reopening of the city.
The report reflects the insights and guidance of the advisory council, which was established by Bottoms through an administrative order on April 20 in response to the COVID-19 pandemic. The 60-person council is comprised of experts from across Atlanta’s business, nonprofit, healthcare, and government sectors.
The report outlined three core focus areas for Atlanta’s reopening strategy, recommending:
“After extensive research and review of global best practices, we believe the findings and recommendations in this report will help provide the city with safe and practical guidelines to help Atlanta residents and businesses through the COVID-19 crisis,” said Advisory Council Co-chair Ingrid Saunders Jones.
In addition to the insights from members of the advisory council and other leading health experts, the report also drew from the findings of a resident survey asking Atlantans how they were approaching and interacting with various businesses and venues during the COVID-19 pandemic. Conducted between April 28 and May 4 with over 15,700 respondents, the survey showed:
“The advisory council’s recommendations are based on the current available science on the virus, which we know is rapidly evolving,” said Advisory Council Co-chair Robert Ashe, III. “The council stressed that as the city establishes metrics and guidelines for reopening, the guidance should be reevaluated and amended as the science and facts are updated and made available to the public.”
The advisory council also recognized that there are federal guidelines, as well as state executive orders, that have been issued pertaining to reopening. The advisory council’s voluntary recommendations are put forth as benchmarks for proceeding in a safe and deliberative manner within the context of the state’s reopening orders.
The number of COVID-19 cases and deaths in Georgia continue to rise. As of the release of the Advisory Council’s report today, the Georgia Department of Public Health has reported 36,544 COVID-19 cases in the state of Georgia and 1,548 deaths. Fulton County is reported to have 3,632 COVID-19 cases and 159 of deaths.
View the entire Advisory Council Report for Reopening Atlanta and the results of the resident survey here.
The post Advisory council submits final report for reopening City of Atlanta as COVID-19 outbreak continues appeared first on Atlanta INtown Paper.
After Gov. Brian Kemp further eased restrictions on the number of people who can be inside a restaurant dining room, more Intown eateries have announced plans to reopen.
All restaurants must follow state-mandated guidelines, including staff wearing masks, more sanitation, disposable menus, contactless payments, and social distancing. The state will now allow 10 people per table, but restaurants still must maintain 6 feet space between parties.
California Pizza Kitchen at Atlantic Station will reopen for dinner service starting today, May 15, at 5 p.m. inside the restaurants and on the patio. Takeout, curbside and delivery are still available.
Tamarind Restaurant Group, which includes Nan Thai Fine Dining, Tuk Tuk Thai Food Loft, Tamarind Seed and Chai Yo Modern Thai, will begin to offer “limited outdoor patio dining and minimal dine-in services” starting today. The restaurant group continues to recommend and emphasize its contactless curbside pickup and delivery services.
Park Tavern in Midtown has reopened its patio Wednesdays through Sundays from noon to 9 p.m. with a special menu – wings, tacos, shrimp – along with beer, wine and cocktails.
Cafe Posh in Buckhead will have limited seating in its dining room this weekend and is still offering curbside and takeaway.
U Restaurants has reopened dining rooms and patios at Sotto Sotto and Fritti in Inman Park, Escorpion in Midtown and Novo in Dunwoody. Tables will be limited due to social distancing rules, so make a reservation.
Wood’s Chapel BBQ has reopen its doors (and walk-up window) for takeout in Summerhill after being closed for six weeks. May 16 is National Barbecue Day, so good timing.
Salata Salad Kitchen has begun opening up its dining rooms, including locations at Madison Yards and Midtown Place.
Ford Fry’s Marcel steakhouse on the Westside and Inman Park seafood restaurant BeetleCat reopen for dine-in service on May 18.
Check out a much longer list of restaurants reopening for dine-in service at Eater Atlanta.
The post Restaurant dining rooms reopen as state further eases restrictions appeared first on Atlanta INtown Paper.
Preferred Apartment Communities, Inc. reported results for the quarter ended March 31, 2020. Unless otherwise indicated, all per share results are reported based on the basic weighted average shares of Common Stock and Class A Units of the Company’s operating partnership (“Class A Units”) outstanding. See Definitions of Non-GAAP Measures.
Financial HighlightsOur operating results are presented below.
|
Three months ended March 31, |
||||||||||||
|
2020 |
2019 |
% change |
||||||||||
|
Revenues (in thousands) |
$ |
131,102 |
$ |
111,506 |
17.6 |
% |
||||||
|
Per share data: |
||||||||||||
|
Net income (loss) (1) |
$ |
(4.44) |
$ |
(0.66) |
– |
|||||||
|
FFO (2) |
$ |
(3.42) |
$ |
0.39 |
– |
|||||||
|
FFO excluding Internalization costs (2) |
$ |
0.31 |
$ |
0.39 |
(20.5) |
% |
||||||
|
Core FFO (2) |
$ |
0.38 |
$ |
0.41 |
(7.3) |
% |
||||||
|
AFFO (2) |
$ |
0.47 |
$ |
0.32 |
46.9 |
% |
||||||
|
Dividends (3) |
$ |
0.2625 |
$ |
0.26 |
1.0 |
% |
||||||
|
(1)Per weighted average share of Common Stock outstanding for the periods indicated. |
|
|
(2)FFO, Core FFO and AFFO results are presented per basic weighted average share of Common Stock and Class A Unit in our Operating Partnership outstanding for the periods indicated. See Reconciliations of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO to Net Income (Loss) Attributable to Common Stockholders and Definitions of Non-GAAP Measures. |
|
|
(3)Per share of Common Stock and Class A Unit outstanding. |
“Our first quarter reflects continued and consistently solid operating performance across all of our operating platforms, including multifamily same store NOI growth of 4.3% quarter over quarter in a same store pool that represents over 80% of our multifamily units,” stated Joel Murphy, Preferred Apartment Communities’ President and Chief Executive Officer. “As we moved into the second quarter, the events related to and resulting from the COVID-19 pandemic have disrupted our economy and our markets and we have taken several measures to preserve liquidity. Among them, the Board making the difficult but prudent decision to reduce our common dividend given the uncertainty of the current circumstances and environment. I am extremely proud of our leadership team and operating teams across all of our platforms that have worked collaboratively and effectively alongside our residents and our tenants in a challenging environment for all concerned. We believe our diversified portfolio, with high quality assets in strong Sunbelt markets, positions us well to create shareholder value over the long term.”
The following chart details cash collections of rental revenues across all our verticals for the month April.
|
2020 Cash Collections of Certain Rental Revenues (1) |
||||||||||||
|
January |
February |
March |
April |
|||||||||
|
Multifamily |
99.4 |
% |
99.4 |
% |
99.1 |
% |
97.7 |
% |
||||
|
Student housing |
99.8 |
% |
99.9 |
% |
99.5 |
% |
97.3 |
% |
||||
|
Office |
99.7 |
% |
99.5 |
% |
98.7 |
% |
96.3 |
% |
||||
|
Grocery-anchored retail: |
||||||||||||
|
Grocery anchors |
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
||||
|
In-line tenants |
98.7 |
% |
98.9 |
% |
95.8 |
% |
66.7 |
% |
||||
|
Occupancy: |
||||||||||||
|
Multifamily |
95.1 |
% |
95.5 |
% |
95.7 |
% |
94.3 |
% |
||||
|
Student housing |
96.1 |
% |
96.3 |
% |
96.2 |
% |
96.2 |
% |
||||
|
Percent leased: |
||||||||||||
|
Office |
96.3 |
% |
96.3 |
% |
96.7 |
% |
95.9 |
% |
||||
|
Grocery-anchored retail |
92.9 |
% |
92.6 |
% |
92.6 |
% |
92.5 |
% |
||||
|
(1) Percent of revenue billed includes base rent, operating expense escalations, pet, garage, parking and storage rent. Figures are before any effect of rent deferrals. |
Our net loss per share was $(4.44) and $(0.66) for the three-month periods ended March 31, 2020 and 2019, respectively. Funds From Operations, or FFO, for the three months ended March 31, 2020 was $(3.42) per weighted average share and unit outstanding and includes costs associated with the acquisition of Preferred Apartment Advisors, LLC (our “Former Manager”) of approximately $178.8 million. Excluding these costs, our FFO per share was $0.31 for the three months ended March 31, 2020. Core FFO was $0.38 for the three months ended March 31, 2020, as compared to $0.41 for the three months ended March 31, 2019.
For the first quarter 2020, our declared dividends to preferred and Common Stockholders and distributions to Unitholders exceeded our NAREIT-defined FFO result for the period, which was negative. Our Core FFO payout ratio to Common Stockholders and Unitholders was approximately 69.4% and our Core FFO payout ratio (before the deduction of preferred dividends) to our preferred stockholders was approximately 64.4%(B)
Our AFFO payout ratio to Common Stockholders and Unitholders was approximately 55.9% for the first quarter 2020. Our AFFO payout ratio (before the deduction of preferred dividends) to our preferred stockholders was approximately 59.3% for the first quarter 2020. (B) We have approximately $20.2 million of accrued but not yet received interest revenue on our real estate loan investment portfolio.
For the quarter ended March 31, 2020, our same-store multifamily rental and other property revenues increased approximately 3.4% and our operating expenses increased 2.1%, resulting in an increase in same-store net operating income of approximately 4.3% as compared to the quarter ended March 31, 2019.(C) For the first quarter 2020, our average same-store multifamily communities’ physical occupancy was 95.5%. Our 2020 same-store multifamily portfolio represents approximately 81.7% of our aggregate multifamily units.
On January 1, 2020, Joel T. Murphy became Chief Executive Officer of the Company. Mr. Murphy will continue as a member of the board, where he has served since May 2019 and as Chairman of the Company’s Investment Committee, a role he has had since June 2018. Mr. Murphy was the CEO of our New Market Properties subsidiary for the last five years until his appointment as our CEO. Mr. Murphy succeeded Daniel M. DuPree as CEO. Mr. DuPree will remain with us as Executive Chairman of the Board.
On January 31, 2020, we internalized the functions performed by Preferred Apartment Advisors, LLC (the “Manager”) and NMP Advisors, LLC (the “Sub-Manager”) by acquiring the entities that own the Manager and the Sub-Manager (such transactions, collectively, the “Internalization”) for an aggregate purchase price of $154.0 million, plus up to $25.0 million of additional consideration to be paid within 36 months. Additionally, up to $15.0 million of the $154.0 million purchase price was to be held back and is payable to the sellers less certain losses following final resolution of certain specified matters. Pursuant to the Stock Purchase Agreement entered into on January 31, 2020 the sellers sold all of the outstanding shares of NELL Partners, Inc. (“NELL”) and NMA Holdings, Inc., parent companies of the Manager and Sub-Manager, respectively, to us, in exchange for an aggregate of approximately $111.1 million in cash paid at the closing which reflects the satisfaction of certain indebtedness of NELL, the estimated net working capital adjustment, and a hold back of $15.0 million for certain specified matters.
During the first quarter 2020, the borrowers of the Dawson Marketplace, Falls at Forsyth, and (in conjunction with our acquisition of the underlying property) Altis Wiregrass real estate loans repaid all amounts due under the loans, including aggregate principal amounts of approximately $53.9 million and interest accrued in periods prior to the first quarter 2020 of approximately $8.9 million, the latter of which was additive to our first quarter 2020 AFFO result. The three mezzanine loan investments that matured this quarter yielded a weighted average 17% internal rate of return.
As of March 31, 2020, the average age of our multifamily communities was approximately 5.8 years, which is the youngest in the public multifamily REIT industry.
As of March 31, 2020, approximately 94.5% of our permanent property-level mortgage debt has fixed interest rates and approximately 3.7% has variable interest rates which are capped. We believe we are well protected against potential increases in market interest rates.
As of March 31, 2020, our total assets were approximately $4.8 billion. Our total assets at March 31, 2019, also approximately $4.8 billion, included approximately $545 million of VIE mortgage pool assets attributable to other mortgage pool participants that were consolidated due to our investments in the Freddie Mac K Program. During the fourth quarter 2019, we sold our K Program investments, realizing an internal rate of return of approximately 18%. Excluding the consolidated VIE mortgage pool assets from the March 31, 2019 total, our total assets grew approximately $570.4 million, or 13.4%.
At March 31, 2020, our leverage, as measured by the ratio of our debt to the undepreciated book value of our total assets, was approximately 53.7%.
On March 20, 2020, we delivered a written termination notice to the prospective purchaser of six of our student housing properties for their failure to consummate the purchase. Accordingly, we received an additional $2.75 million of forfeited earnest money as liquidated damages.
|
(A) We calculate the FFO payout ratio to Common Stockholders as the ratio of Common Stock dividends and distributions to FFO Attributable to Common Stockholders and Unitholders. We calculate the FFO payout ratio to preferred stockholders as the ratio of Preferred Stock dividends to the sum of Preferred Stock dividends and FFO. Since our operations resulted in a net loss from continuing operations for the periods presented, a payout ratio based on net loss is not calculable. See Definitions of Non-GAAP Measures. |
|
(B) We calculate the Core FFO and AFFO payout ratios to Common Stockholders as the ratio of Common Stock dividends and distributions to Core FFO and AFFO. We calculate the Core FFO and AFFO payout ratios to preferred stockholders as the ratio of Preferred Stock dividends to the sum of Preferred Stock dividends and Core FFO and AFFO. |
|
(C) Same store net operating income is a non-GAAP measure. See Definitions of Non-GAAP Measures. |