Weingarten Realty Reports Third Quarter Results and Provides COVID-19 Update

Rhea-AI Summary

Weingarten Realty (NYSE: WRI) reported a net income of $25.1 million or $0.20 per share for Q3 2020, a decline from $106.7 million or $0.82 per share in Q3 2019. Cash collections improved to 90%, up from 82% in Q2. Core Funds From Operations (FFO) was $0.44 per share, down from $0.53 a year ago. The company sold properties totaling $64 million in Q3, enhancing liquidity. Occupancy rates stood at 93.0%, with essential tenants representing 63% of rents. A dividend of $0.18 per share was declared, signaling commitment to shareholder returns amidst challenges.

Positive

• Cash collections rose to 90% in Q3 from 82% in Q2.
• Dispositions totaled $64 million in Q3, improving liquidity.
• Declared a cash dividend of $0.18 per share.

Negative

• Net income decreased to $25.1 million from $106.7 million YoY.
• Core FFO dropped to $0.44 per share from $0.53 YoY.
• Bad debt expense decreased only to $1.4 million, indicating ongoing tenant issues.

HOUSTON--(BUSINESS WIRE)--Weingarten Realty (NYSE: WRI) announced today the results of its operations for the quarter ended September 30, 2020. The supplemental financial package with additional information can be found on the Company's website under the Investor Relations tab.

“Given the continued headwinds of the pandemic, we had a good quarter that showed solid improvement over the second quarter. The economy continues to gain traction in the majority of our markets with substantially all of our tenants open for business. Accordingly, we have experienced continued improvement in our cash collections and rent deferrals with a significant increase in payments from both our essential and non-essential tenants and leasing activity has been accelerating. Our balance sheet and liquidity position remain strong, bolstered by solid disposition activity in the quarter. We remain focused on the safety and well-being of our associates, tenants, stakeholders and the broader community. With a transformed portfolio of primarily grocery-anchored centers providing basic goods and services, we are optimistic our centers will continue to perform well, on a relative basis, in this crisis,” said Drew Alexander, Chairman, President and Chief Executive Officer.

Third Quarter Operating and Financial Highlights

• Net income attributable to common shareholders (“Net Income”) for the third quarter was $0.20 per diluted share (hereinafter “per share”) compared to $0.09 per share in the second quarter of 2020 and $0.82 per share in the same quarter of 2019;

• Core Funds From Operations Attributable to Common Shareholders ("Core FFO") for the quarter was $0.44 per share compared to $0.34 per share in the second quarter of 2020 and $0.53 per share a year ago;

• Cash collections of rent and rebillable expenses increased to 90% of the total for the third quarter from 82% in the second quarter; and,

• Dispositions in the quarter were $64 million bringing the year-to-date total to $152 million.

Financial Results

The Company reported Net Income of $25.1 million or $0.20 per share for the third quarter of 2020, as compared to $106.7 million or $0.82 per share for the same period in 2019 as the coronavirus pandemic continues to negatively affect the Company’s tenants. The Company recorded bad debt expense/uncollectible revenue of $1.4 million in the third quarter of 2020 compared to total bad debt expense/uncollectible expense of $19.3 million recorded in the second quarter of 2020. The decrease in bad debt expense/uncollectible revenue was primarily due to the Company designating a significant portion of the receivables related to tenants on its watch list as potentially uncollectible in the first and second quarters of 2020 at which time all of the related receivables were fully reserved and the tenants were converted to cash basis accounting for revenue recognition purposes. With no additional tenants converted to the cash basis in the third quarter, bad debt expense was primarily related to terminated tenants and the settlement of previously disputed balances that occurred during the quarter. Also contributing to the year-over-year decrease in net income was gains from the Company’s disposition program which totaled $10.3 million in the quarter compared to $74.1 million in the third quarter of 2019.

Year-to-date, Net Income was $89.1 million or $0.69 per share for 2020 compared to $240.2 million or $1.86 per share for 2019. In addition to the impact of bad debt expense/uncollectible revenue, net income in 2019 included significantly higher gains on the disposition of property than was recorded in 2020.

Funds From Operations attributable to common shareholders in accordance with the National Association of Real Estate Investment Trusts definition (“NAREIT FFO”) was $57.0 million or $0.44 per share for the third quarter of 2020 compared to $68.5 million or $0.53 per share for 2019. The decrease is primarily due to reduced revenue from tenants converted to cash basis accounting, fallouts, and abatements which together total $0.05 per share, as well as the impact of the Company’s disposition program in both 2019 and 2020 of $0.04 per share. Core FFO for the quarter ended September 30, 2020 was $57.0 million or $0.44 per share compared to $68.5 million or $0.53 per share for the same quarter of last year.

A reconciliation of Net Income to NAREIT FFO and Core FFO is included herein.

Operating Results

For the period ending September 30, 2020, the Company’s operating highlights were as follows:

		Q3 2020			YTD 2020
Occupancy (Signed Basis):
Occupancy - Total			93.0	%
Occupancy - Small Shop Spaces			87.7	%
Occupancy - Same Property Portfolio			93.7	%
Same Property Net Operating Income, with redevelopments			(8.1)	%		(9.1)	%
Rental Rate Growth - Total:			5.5	%		8.0	%
New Leases			11.1	%		12.3	%
Renewals			4.0	%		7.2	%
Leasing Transactions:
Number of New Leases			59			142
New Leases - Annualized Revenue (in millions)		$	3.8		$	10.0
Number of Renewals			99			352
Renewals - Annualized Revenue (in millions)		$	9.6		$	35.7

A reconciliation of Net Income to SPNOI is included herein.

COVID-19 Update

The coronavirus pandemic continues to impact the Company’s operations, however the transformed portfolio of quality properties posted improved collection metrics in the third quarter. Cash collections in July, August and September totaled 89%, 91% and 90%, respectively of prorata base rent and expense recoveries with the full quarter at 90% compared to 82% for the second quarter. Cash collections in October remain consistent with September with 87% collected to-date. Deferrals of rent payments to future periods executed in the quarter represent an additional 4%, down from 14% in the second quarter. Abatements of rent during the quarter were minimal.

While the reopening of the economy had a positive impact on the Company’s third quarter operations, it is especially difficult to predict the direction of the economy in the fourth quarter. Nevertheless, the Company is optimistic that collections will remain strong as rents from tenants deemed “essential” represent 63% of total rents for the quarter. Cash collections from these essential tenants were 93% for the third quarter. Additionally, cash collections from “non-essential” tenants for the quarter represent 84% of the total non-essential rents compared to 71% for the second quarter.

“We are extremely pleased with the increase in cash collections in the quarter as it reflects the strength of our transformed portfolio of quality properties. We are also encouraged by the improvement in leasing activity as we already see leasing velocity returning. With nearly all of our tenants reopened for business, we are very bullish on our ability to weather this storm,” said Johnny Hendrix, Executive Vice President and Chief Operating Officer.

Additional information can be found on page 41 of our supplemental disclosure.

Transaction and Development Activity

The Company had a very successful third quarter for dispositions, selling three shopping centers and land parcels for $64 million. The highlight of the quarter was the sale of West Jordan Town Center in Salt Lake City, which was the only remaining property owned by the Company in Utah. The Company will continue to monitor opportunities to further de-risk its portfolio through strategic dispositions going forward but will carefully consider the impact of current market conditions in assessing sales prices.

The Company’s three mixed-use new development projects continue to progress according to plan. At Centro Arlington in Washington DC, construction is complete and the residential portion of the property is 92% leased and the retail portion is 93% leased. West Alex, also located in DC, is currently 37% leased with all construction complete on the residential component of the property. The Harris Teeter supermarket is now under construction and should open in the summer of 2021.

Construction on the residential tower at the Driscoll at River Oaks is nearly complete with 25% currently leased. The Company is encouraged by the leasing progress at all three of these projects, in light of the market conditions.

Balance Sheet, Liquidity and Dividends

The benefit of the Company’s best in class balance sheet has been highlighted by this crisis. With low leverage, the absence of any material maturities until the fourth quarter of 2022 and the full availability of its revolving credit facility, the Company is comfortable with its current liquidity position. The Company will continue to carefully monitor cash flows, any new capital requirements, and overall liquidity going forward.

As announced in a previous press release, the Board of Trust Managers declared on September 14, 2020 a cash dividend of $0.18 per common share which was paid on October 13, 2020 to shareholders of record on October 8, 2020. The Company paid its quarterly cash dividend earlier due to an election made last year to shift dividend payments from 2019 to 2020. As communicated previously, the Company will likely pay a special dividend near year-end to cover additional 2020 taxable income resulting from its 2020 disposition program; however, the amount of any special dividend is uncertain at this time. The Company will continue to monitor tenant collections, evaluate its operations and financial position and will adjust future dividends as appropriate.

“With $498 million currently available under our revolver, cash collections trending at higher levels than originally projected, proceeds from additional dispositions and access to numerous other sources of capital, we remain comfortable with our ability to meet all liquidity needs going forward, including any additional dividends required by our disposition activity,” said Steve Richter, Executive Vice President and Chief Financial Officer.

Conference Call Information

The Company also announced that it will host a live webcast of its quarterly conference call on October 29, 2020 at 10:00 a.m. Central Time. The live webcast can be accessed via the Company’s website at www.weingarten.com. Alternatively, if you are not able to access the call on the web, you can listen live by phone by calling (888) 771-4371 (conference ID #49202523). A replay will be available through the Company’s website starting approximately two hours following the live call.

About Weingarten Realty Investors

Weingarten Realty Investors (NYSE: WRI) is a shopping center owner, manager and developer. At September 30, 2020, the Company owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 162 properties which are located in 15 states spanning the country from coast to coast. These properties represent approximately 31.0 million square feet of which our interests in these properties aggregated approximately 21.0 million square feet of leasable area. To learn more about the Company’s operations and growth strategies, please visit www.weingarten.com.

Forward-Looking Statements

Statements included herein that state the Company’s or Management’s intentions, hopes, beliefs, expectations or predictions of the future are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 which by their nature, involve known and unknown risks and uncertainties. The Company’s actual results, performance or achievements could differ materially from those expressed or implied by such statements. These risks and uncertainties include those related to the COVID-19 pandemic, about which there are still many unknowns, including the duration of the pandemic and the extent of its impact, as well as those discussed in the Company’s regulatory filings with the Securities and Exchange Commission, which include other information or factors that may impact the Company’s performance.

Projections involve numerous assumptions such as rental income (including assumptions on percentage rent), interest rates, tenant defaults, occupancy rates, volume and pricing of properties held for disposition, volume and pricing of acquisitions, expenses (including salaries and employee costs), insurance costs and numerous other factors. Not all of these factors are determinable at this time and actual results may vary from the projected results, and may be above or below the ranges indicated. The above ranges represents management’s estimate of results based upon these assumptions as of the date of this press release. Accordingly, there is no assurance that our projections will be realized.

Weingarten Realty Investors
(in thousands, except per share amounts)
Financial Statements
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2020			2019			2020			2019
CONDENSED CONSOLIDATED STATEMENTS OF INCOME		(Unaudited)						(Unaudited)
Revenues:
Rentals, net		$	109,430		$	117,378		$	313,293		$	356,666
Other			2,925			3,984			8,549			10,494
Total Revenues			112,355			121,362			321,842			367,160
Operating Expenses:
Depreciation and amortization			37,946			33,380			112,229			102,319
Operating			22,816			22,912			65,954			69,927
Real estate taxes, net			16,479			15,205			47,220			47,072
Impairment loss			—			—			44			74
General and administrative			10,245			8,432			25,472			26,893
Total Operating Expenses			87,486			79,929			250,919			246,285
Other Income (Expense):
Interest expense, net			(15,044)			(13,820)			(45,422)			(44,062)
Interest and other income, net			2,749			1,104			2,214			7,409
Gain on sale of property			10,268			74,115			31,742			143,963
Total Other (Expense) Income			(2,027)			61,399			(11,466)			107,310
Income Before Income Taxes and Equity in Earnings of Real Estate Joint Ventures and Partnerships			22,842			102,832			59,457			228,185
Provision for Income Taxes			(195)			(21)			(710)			(682)
Equity in Earnings of Real Estate Joint Ventures and Partnerships, net			4,814			5,698			35,339			17,780
Net Income			27,461			108,509			94,086			245,283
Less: Net Income Attributable to Noncontrolling Interests			(2,372)			(1,767)			(5,007)			(5,066)
Net Income Attributable to Common Shareholders -- Basic		$	25,089		$	106,742		$	89,079		$	240,217
Net Income Attributable to Common Shareholders -- Diluted		$	25,089		$	107,270		$	89,079		$	241,801
Earnings Per Common Share -- Basic		$	0.20		$	0.83		$	0.70		$	1.88
Earnings Per Common Share -- Diluted		$	0.20		$	0.82		$	0.69		$	1.86

Weingarten Realty Investors
(in thousands)
Financial Statements
		September 30,			December 31,
		2020			2019
		(Unaudited)			(Audited)
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
Property		$	4,200,483		$	4,145,249
Accumulated Depreciation			(1,174,347)			(1,110,675)
Investment in Real Estate Joint Ventures and Partnerships, net			404,495			427,947
Unamortized Lease Costs, net			139,084			148,479
Accrued Rent, Accrued Contract Receivables and Accounts Receivable, net			79,392			83,639
Cash and Cash Equivalents			50,215			41,481
Restricted Deposits and Escrows			14,281			13,810
Other, net			196,544			188,004
Total Assets		$	3,910,147		$	3,937,934
LIABILITIES AND EQUITY
Debt, net		$	1,730,153		$	1,732,338
Accounts Payable and Accrued Expenses			132,670			111,666
Other, net			209,495			217,770
Total Liabilities			2,072,318			2,061,774
Commitments and Contingencies			—			—
EQUITY
Common Shares of Beneficial Interest			3,891			3,905
Additional Paid-In Capital			1,769,115			1,779,986
Net Income Less Than Accumulated Dividends			(106,051)			(74,293)
Accumulated Other Comprehensive Loss			(11,154)			(11,283)
Shareholders' Equity			1,655,801			1,698,315
Noncontrolling Interests			182,028			177,845
Total Liabilities and Equity		$	3,910,147		$	3,937,934

Non-GAAP Financial Measures

Certain aspects of our key performance indicators are considered non-GAAP financial measures. Management uses these measures along with our Generally Accepted Accounting Principles ("GAAP") financial statements in order to evaluate our operating results. Management believes these additional measures provide users of our financial information additional comparable indicators of our industry, as well as, our performance.

Funds from Operations Attributable to Common Shareholders

Effective January 1, 2019, the National Association of Real Estate Investment Trusts ("NAREIT") defines NAREIT FFO as net income (loss) attributable to common shareholders computed in accordance with GAAP, excluding gains or losses from sales of certain real estate assets (including: depreciable real estate with land, land, development property and securities), changes in control of real estate equity investments, and interests in real estate equity investments and their applicable taxes, plus depreciation and amortization related to real estate and impairment of certain real estate assets and in substance real estate equity investments, including our share of unconsolidated real estate joint ventures and partnerships. The Company calculates NAREIT FFO in a manner consistent with the NAREIT definition.

Management believes NAREIT FFO is a widely recognized measure of REIT operating performance which provides our shareholders with a relevant basis for comparison among other REITs. Management uses NAREIT FFO as a supplemental internal measure to conduct and evaluate our business because there are certain limitations associated with using GAAP net income by itself as the primary measure of our operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, management believes that the presentation of operating results for real estate companies that uses historical cost accounting is insufficient by itself. There can be no assurance that NAREIT FFO presented by the Company is comparable to similarly titled measures of other REITs.

The Company also presents Core FFO as an additional supplemental measure as it is more reflective of the core operating performance of our portfolio of properties. Core FFO is defined as NAREIT FFO excluding charges and gains related to non-cash, non-operating assets and other transactions or events that hinder the comparability of operating results. Specific examples of items excluded from Core FFO include, but are not limited to, gains or losses associated with the extinguishment of debt or other liabilities and transactional costs associated with development activities. NAREIT FFO and Core FFO should not be considered as alternatives to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. NAREIT FFO and Core FFO do not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.

NAREIT FFO and Core FFO is calculated as follows (in thousands):

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2020			2019			2020			2019
		(Unaudited)						(Unaudited)
Net income attributable to common shareholders		$	25,089		$	106,742		$	89,079		$	240,217
Depreciation and amortization of real estate			37,815			33,143			111,810			101,618
Depreciation and amortization of real estate of unconsolidated real estate joint ventures and partnerships			4,235			2,933			12,354			8,674
Impairment of properties and real estate equity investments			—			—			44			74
(Gain) on sale of property, investment securities and interests in real estate equity investments			(10,255)			(74,093)			(31,732)			(144,647)
(Gain) on dispositions of unconsolidated real estate joint ventures and partnerships			(89)			—			(23,505)			(1,380)
Provision (benefit) for income taxes (1)			2			(187)			2			(143)
Noncontrolling interests and other (2)			(4)			(533)			(1,231)			(1,506)
NAREIT FFO – basic			56,793			68,005			156,821			202,907
Income attributable to operating partnership units			240			528			1,009			1,584
NAREIT FFO – diluted			57,033			68,533			157,830			204,491
Adjustments for Core FFO:
Contract terminations			—			—			340			—
Other			—			10			—			10
Core FFO – diluted		$	57,033		$	68,543		$	158,170		$	204,501
FFO weighted average shares outstanding – basic			127,270			127,870			127,457			127,828
Effect of dilutive securities:
Share options and awards			860			835			886			839
Operating partnership units			1,432			1,432			1,432			1,432
FFO weighted average shares outstanding – diluted			129,562			130,137			129,775			130,099
NAREIT FFO per common share – basic		$	0.45		$	0.53		$	1.23		$	1.59
NAREIT FFO per common share – diluted		$	0.44		$	0.53		$	1.22		$	1.57
Core FFO per common share – diluted		$	0.44		$	0.53		$	1.22		$	1.57

______________________________
(1)		The applicable taxes related to gains and impairments of operating and non-operating real estate assets.
(2)		Related to gains, impairments and depreciation on operating properties and unconsolidated real estate joint ventures, where applicable.

Same Property Net Operating Income

Management considers SPNOI an important additional financial measure because it reflects only those income and expense items that are incurred at the property level and when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates and operating costs. The Company calculates this most useful measurement by determining our proportional share of SPNOI from all owned properties, including the Company’s share of SPNOI from unconsolidated joint ventures and partnerships, which cannot be readily determined under GAAP measurements and presentation. Although SPNOI (see page 1 of the supplemental disclosure regarding this presentation and limitations thereof) is a widely used measure among REITs, there can be no assurance that SPNOI presented by the Company is comparable to similarly titled measures of other REITs. Additionally, the Company does not control these unconsolidated joint ventures and partnerships, and the assets, liabilities, revenues or expenses of these joint ventures and partnerships, as presented, do not represent its legal claim to such items.

Properties are included in the SPNOI calculation if they are owned and operated for the entirety of the most recent two fiscal year periods, except for properties for which significant redevelopment or expansion occurred during either of the periods presented, and properties that have been sold. While there is judgment surrounding changes in designations, management moves new development and redevelopment properties once they have stabilized, which is typically upon attainment of 90% occupancy. A rollforward of the properties included in the Company’s same property designation is as follows:

		Three Months Ended		Nine Months Ended
		September 30, 2020		September 30, 2020
Beginning of the period		148		155
Properties removed:
Redevelopments		-		(2)
Dispositions		(3)		(8)
End of the period		145		145

The Company calculates SPNOI using net income attributable to common shareholders excluding net income attributable to noncontrolling interests, other income (expense), income taxes and equity in earnings of real estate joint ventures and partnerships. Additionally to reconcile to SPNOI, the Company excludes the effects of property management fees, certain non-cash revenues and expenses such as straight-line rental revenue and the related reversal of such amounts upon early lease termination, depreciation and amortization, impairment losses, general and administrative expenses and other items such as lease cancellation income, environmental abatement costs, demolition expenses and lease termination fees. Consistent with the capital treatment of such costs under GAAP, tenant improvements, leasing commissions and other direct leasing costs are excluded from SPNOI. A reconciliation of net income attributable to common shareholders to SPNOI is as follows (in thousands):

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2020			2019			2020			2019
		(Unaudited)						(Unaudited)
Net income attributable to common shareholders		$	25,089		$	106,742		$	89,079		$	240,217
Add:
Net income attributable to noncontrolling interests			2,372			1,767			5,007			5,066
Provision for income taxes			195			21			710			682
Interest expense, net			15,044			13,820			45,422			44,062
Property management fees			918			657			2,825			2,213
Depreciation and amortization			37,946			33,380			112,229			102,319
Impairment loss			—			—			44			74
General and administrative			10,245			8,432			25,472			26,893
Other (1)			303			836			470			2,825
Less:
Gain on sale of property			(10,268)			(74,115)			(31,742)			(143,963)
Equity in earnings of real estate joint ventures and partnership interests, net			(4,814)			(5,698)			(35,339)			(17,780)
Interest and other income, net			(2,749)			(1,104)			(2,214)			(7,409)
Other (2)			(3,439)			(4,775)			552			(11,054)
Adjusted income			70,842			79,963			212,515			244,145
Less: Adjusted income related to consolidated entities not defined as same property and noncontrolling interests			(5,632)			(7,985)			(17,861)			(27,465)
Add: Pro rata share of unconsolidated entities defined as same property			7,787			7,436			22,190			22,001
Same Property Net Operating Income		$	72,997		$	79,414		$	216,844		$	238,681

______________________________
(1)		Other includes items such as environmental abatement costs, demolition expenses and lease termination fees.
(2)		Other consists primarily of straight-line rentals, lease cancellation income and fee income primarily from real estate joint ventures and partnerships.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate

NAREIT defines EBITDAre as net income computed in accordance with GAAP, plus interest expense, income tax expense (benefit), depreciation and amortization and impairment of depreciable real estate and in substance real estate equity investments; plus or minus gains or losses from sales of certain real estate assets and interests in real estate equity investments; and adjustments to reflect our share of unconsolidated real estate joint ventures and partnerships for these items. The Company calculates EBITDAre in a manner consistent with the NAREIT definition.

As mentioned above, NAREIT FFO is a widely recognized measure of REIT operating performance which provides our shareholders with a relevant basis for comparing earnings performance among other REITs based upon the unique capital structure of each REIT. However as a basis of comparability that is independent of a company's capital structure, management believes that since EBITDA is a widely known and understood measure of performance, EBITDAre will represent an additional supplemental non-GAAP performance measure that will provide investors with a relevant basis for comparing REITs. There can be no assurance that EBITDAre as presented by the Company is comparable to similarly titled measures of other REITs.

The Company also presents Core EBITDAre as an additional supplemental measure as it is more reflective of the core operating performance of our portfolio of properties. Core EBITDAre is defined as NAREIT EBITDAre excluding charges and gains related to non-cash and non-operating transactions and other events that hinder the comparability of operating results. Specific examples of items excluded from Core EBITDAre include, but are not limited to, gains or losses associated with the extinguishment of debt or other liabilities, and transactional costs associated with development activities. EBITDAre and Core EBITDAre should not be considered as alternatives to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. EBITDAre and Core EBITDAre do not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.

EBITDAre and Core EBITDAre is calculated as follows (in thousands):

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2020			2019			2020			2019
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre):
Net income		$	27,461		$	108,509		$	94,086		$	245,283
Interest expense, net			15,044			13,820			45,422			44,062
Provision for income taxes			195			21			710			682
Depreciation and amortization of real estate			37,946			33,380			112,229			102,319
Impairment loss on operating properties and real estate equity investments			—			—			44			74
Gain on sale of property and investment securities (1)			(10,263)			(74,114)			(31,740)			(144,703)
EBITDAre adjustments of unconsolidated real estate joint ventures and partnerships, net (2)			5,036			3,795			(8,406)			10,062
Total EBITDAre			75,419			85,411			212,345			257,779
Adjustments for Core EBITDAre:
Contract terminations			—			—			340			—
Other			—			10			—			10
Total Core EBITDAre		$	75,419		$	85,421		$	212,685		$	257,789

______________________________
(1)		Includes a gain on sale of non-operating assets of $.6 million and $.3 million for the three months ended September 30, 2020 and 2019, respectively, and $.7 million and $.5 million for the nine months ended September 30, 2020 and 2019, respectively.
(2)		Includes a $.1 million and $23.5 million gain on the sale of operating properties for the three and nine months ended September 30, 2020, respectively, and a $1.1 million gain on sale of operating properties for the nine months ended September 30, 2019. Also includes $.3 million gain on sale of non-operating assets for the nine months ended September 30, 2019.