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EX-23.1 - EX-23.1 - Landmark Apartment Trust, Inc.d672444dex231.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K/A

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): November 26, 2013

 

 

Landmark Apartment Trust of America, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   000-52612   20-3975609

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

3505 E Frontage Road, Suite 150

Tampa, Florida

  33607
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (813) 281-2907

Former name or former address, if changed since last report: Not Applicable

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Explanatory Note

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Landmark Apartment Trust of America, Inc. (the “Company”) hereby amends the Current Report on Form 8-K filed with the Securities and Exchange Commission on December 3, 2013, to provide the required financial information relating to the acquisition of the following two multifamily apartment communities: the Landmark at Avery Place property and the Landmark at Deerfield Glen property. While the acquisition of any one of these two properties was individually insignificant for purposes of the reporting requirements of Form 8-K and Rule 3-14, and the acquisition of one property was not conditioned upon the acquisition of the other property, these properties, along with the properties described in the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on July 29, 2013, the Company’s Current Report on Form 8-K/A filed with the SEC on September 13, 2013, the Company’s Current Report on Form 8-K/A filed with the SEC on September 26, 2013 and the Company’s Current Report on Form 8-K/A filed with the SEC on November 5, 2013, are related properties, which are significant in the aggregate.

A description of the properties is set forth below (in thousands):

 

Property Description

   Date Acquired    Purchase Price      Gross Leasable Area(1)      Year Built/
Renovated

Landmark at Avery Place

   November 26, 2013    $ 18,400         192,550       1981/2011

Landmark at Deerfield Glen

   November 26, 2013    $ 23,000         329,800       1972/2010

 

(1) Gross Leasable Area represents total rentable square feet.

After a reasonable inquiry, the Company is not aware of any other material factors relating to these properties that would cause the reported financial information not to be necessarily indicative of future operating results. The Company and its operations are, however, subject to a number of risks and uncertainties. For a discussion of such risks, see the risks identified in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 under Item 1A Risk Factors and in the other reports filed by the Company with the SEC.

Item 9.01 Financial Statements and Exhibits

 

          Page  
(a)    Financial Statements of Properties Acquired      2   
   Independent Auditor’s Report   
  

Combined Statement of Revenues and Certain Expenses for the Nine Months Ended September 30, 2013 (unaudited) and the Years Ended December 31, 2012, 2011 and 2010 (audited)

     3   
  

Notes to Combined Statement of Revenues and Certain Operating Expenses for the Nine Months Ended September 30, 2012 (unaudited) and the Years Ended December 31, 2012, 2011 and 2010 (audited)

     4   
(b)    Pro Forma Financial Information      6   
  

Pro Forma Consolidated Balance Sheet for the Nine Months Ended September 30, 2013 (unaudited)

     6   
  

Pro Forma Consolidated Statement of Comprehensive Loss for the Nine Months Ended September 30, 2013 (unaudited)

     7   
  

Pro Forma Consolidated Statement of Comprehensive Loss for the Year Ended December 31, 2012 (unaudited)

     9   
  

Pro Forma Consolidated Statement of Operations for the Year Ended December 31, 2011 (unaudited)

     11   
   Pro Forma Consolidated Statement of Operations for the Year Ended December 31, 2010 (unaudited)      12   
(c)    Shell Company Transactions   
   None.   
(d)    Exhibits   

 

Exhibit
Number

  

Name

23.1    Consent of Joel Sanders & Company, PA, Independent Registered Public Accounting Firm

 

1


JOEL SANDERS & COMPANY, P.A.

CERTIFIED PUBLIC ACCOUNTANTS

1301 SHOTGUN ROAD

WESTON, FLORIDA 33326

 

 

 

MEMBER: AMERICAN INSTITUTE OF

CERTIFIED PUBLIC ACCOUNTANTS

  

TEL: (954) 916-2000

FACSIMILE: (954) 916-2012

EMAIL: jscpal@msn.com

  

MEMBER: FLORIDA INSTITUTE OF

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Stockholders of Landmark Apartment Trust of America, Inc.

We have audited the accompanying combined statements of revenues and certain expenses of Landmark at Avery Place, LLC, and Landmark at Deerfield Glen, LLC (the “Properties”) for each of the three years in the period ended December 31, 2012.

Management’s Responsibility for the Statements of Revenue and Certain Expenses

Management is responsible for the preparation and fair presentation of the combined statements of revenue and certain expenses in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of the combined statements of revenue and certain expenses that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the combined statements of revenue and certain expenses based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined statements of revenue and certain expenses are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined statements of revenue and certain expenses. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the combined statements of revenue and certain expenses, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Properties’ preparation and fair presentation of the combined statements of revenue and certain expenses in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Properties’ internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the combined statements of revenue and certain expenses. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the combined statements of revenue and certain expenses referred to above present fairly, in all material respects, the revenue and certain expenses described in Note 1 of the Properties for each of the three years in the period ended December 31, 2012, in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As discussed in Note 1, the accompanying combined statements of revenue and certain expenses were prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission (for inclusion in the Form 8-K/A of the Company) and are not intended to be a complete presentation of the Properties’ revenue and expenses. Our opinion is not modified with respect to this matter.

CERTIFIED PUBLIC ACCOUNTANTS

February 7, 2014

Weston, Florida

 

2


CONTRIBUTED PROPERTIES

COMBINED STATEMENTS OF REVENUES AND CERTAIN OPERATING EXPENSES

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND FOR THE YEARS ENDED

DECEMBER 31, 2012, 2011 AND 2010

(In thousands)

 

     Nine Months
Ended
September 30,
2013
(Unaudited)
     Year Ended
December 31,
2012
     Year Ended
December 31,
2011
     Year Ended
December 31,
2010
 

Revenues:

           

Rental income

   $ 3,186       $ 2,801       $ 1,766       $ 259   

Other property income

     655         510         235         12   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

     3,841         3,311         2,001         271   

Certain expenses:

           

Administrative and marketing

     536         451         204         22   

Insurance

     121         138         92         15   

Personnel

     486         401         283         26   

Real estate taxes

     386         306         200         26   

Repairs and maintenance

     243         140         91         15   

Utilities

     517         403         168         13   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses

     2,289         1,839         1,038         117   
  

 

 

    

 

 

    

 

 

    

 

 

 

Revenues in excess of certain expenses

   $ 1,552       $ 1,472       $ 963       $ 154   
  

 

 

    

 

 

    

 

 

    

 

 

 

The accompanying notes are an integral part of these

combined statements of revenues and certain expenses.

 

3


CONTRIBUTED PROPERTIES

NOTES TO THE COMBINED STATEMENTS OF REVENUES AND CERTAIN EXPENSES

NOTE 1 – Basis of Presentation

Presented herein are the combined statements of revenues and certain expenses related to the operations of Landmark at Avery Place, LLC, which owns as its sole asset a 264-unit apartment community located in Tampa, Florida, and Landmark at Deerfield Glen, LLC, which owns as its sole asset a 320-unit apartment community located in Hoover, Alabama.

The accompanying combined statements of revenues and certain expenses relate to the Properties and have been prepared for the purpose of complying with Rule 3-14 of Regulation S-X promulgated under the Securities Act of 1933, as amended, and accordingly, are not representative of the actual operations of the Properties for the nine months ended September 30, 2013 and for the years ended December 31, 2012, 2011, and 2010, due to the exclusion of the following: depreciation and amortization, amortization of tangible assets and liabilities not directly related to the future operations.

Because these Properties were acquired from a related party, these statements have been prepared for the nine months ended September 30, 2013 and the years ended December 31, 2012, 2011 and 2010.

The accompanying interim combined statements of revenues and certain expenses for the nine months ended September 30, 2013 are unaudited. In the opinion of management, the combined statements of revenues reflect all adjustments necessary for a fair presentation of the results of the interim period. All such adjustments are of a normal recurring nature.

NOTE 2 – Summary of Significant Accounting Policies

Basis of Accounting

The combined statement of revenues and certain expenses are prepared on the accrual basis of accounting.

Use of Estimates

The preparation of the combined statements of revenues and certain expenses in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of revenue and certain expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

The Company’s rental revenue is obtained from tenants through rental payments as provided for under noncancelable apartment rental contracts. Rental revenues attributable to leases is recorded when due from residents and is recognized monthly as it is earned, which approximates the straight-line basis. Leases entered into between a resident and the Company for the rental of an apartment unit are generally year to year, renewable upon consent of both parties on an annual or monthly basis.

Repairs and Maintenance

Significant improvements, renovations or betterments that extend the economic useful life of the assets are capitalized. Expenditures for repairs and maintenance are expensed as incurred.

NOTE 3 – Mortgage Notes Payable

Mortgage notes payable on the Properties consisted of the following as of December 31, 2012 (in thousands):

 

5.49% mortgage note payable to bank, monthly payments of interest only, maturing August 2015

   $ 4,800   

5.49% mortgage note payable to bank, monthly payments of interest only, maturing August 2015

   $ 4,277   

 

4


3.59% mortgage note payable to bank, monthly payments of interest only, maturing July 2019

   $ 13,200   
  

 

 

 

Total mortgage notes payable

   $ 22,277   
  

 

 

 

NOTE 4 – Subsequent Events

Management has evaluated all events and transactions that occurred after December 31, 2012 through February 7, 2014, the date which the statements were available and issued, and noted no items requiring adjustments of the statements or additional disclosures.

 

5


LANDMARK APARTMENT TRUST OF AMERICA, INC.

PRO FORMA CONSOLIDATED BALANCE SHEET

For the Nine Months Ended September 30, 2013

(In thousands, except for share and per share data)

 

     Historical              
     Landmark
Apartment
Trust of
America, Inc.
    Pro Forma
Adjustments
(Unaudited)
    Pro Forma
(Unaudited)
 

Assets:

      

Real estate investments:

      

Operating properties, net

   $ 1,226,540      $ 39,087 (a)    $ 1,265,627   

Cash and cash equivalents

     18,632        (419 )(b)      18,213   

Accounts receivable

     1,382          1,382   

Other receivables due from affiliates

     5,272          5,272   

Restricted cash

     36,904        782 (c)      37,686   

Goodwill

     10,710          10,710   

Real estate and escrow deposits

     1,840          1,840   

Identified intangible assets, net

     41,162        2,472 (a)      43,634   

Other assets, net

     17,901        311 (d)      18,212   
  

 

 

   

 

 

   

 

 

 

Total assets

     1,360,343        42,233        1,402,576   

Liabilities and equity:

      

Liabilities:

      

Mortgage loan payables, net

   $ 740,113      $ 22,202 (a)(e)    $ 762,315   

Unsecured notes payable to affiliate

     10,784          10,784   

Credit facility

     130,000          130,000   

Series D cumulative non-convertible redeemable preferred stock with derivative

     189,757          189,757   

Accounts payable and accrued liabilities

     28,914        206 (c)      29,120   

Other payables due to affiliates

     5,569          5,569   

Acquisition contingent consideration

     3,823          3,823   

Security deposits, prepaid rent and other liabilities

     9,597        295 (a)(c)      9,892   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     1,118,557        22,703        1,141,260   

Equity:

      

Stockholders’ equity:

      

Common stock, $0.01 par value; 300,000,000 shares authorized; 23,898,802 and 20,655,646 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively

     239          239   

Additional paid-in capital

     213,708          213,708   

Accumulated other comprehensive loss, net

     (421       (421

Accumulated deficit

     (151,586     33 (f)      (151,553
  

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     61,940        33        61,973   

Redeemable non-controlling interests in operating partnership

     175,448        19,497 (g)      194,945   

Non-controlling interest

     4,398          4,398   
  

 

 

   

 

 

   

 

 

 

Total equity

     241,786        19,530        261,316   
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 1,360,343      $ 42,233      $ 1,402,576   
  

 

 

   

 

 

   

 

 

 

Unaudited Pro Forma Consolidated Balance Sheet Adjustments

 

(a) Reflects the total purchase price of the Properties. The total purchase price is allocated in accordance with ASC 805.
(b) Reflects cash on hand used as portion of the consideration paid for the acquisition of the Properties.
(c) Reflects lender escrows, accounts payable and accrued liabilities, and security deposits, prepaid rent and other liabilities assumed of in connection with the Properties.
(d) Reflects the deferred financing costs associated with obtaining the new debt and assumed debt on the Properties.
(e) Reflects the new debt and assumed debt obtained as a portion of the consideration for the acquisition of the Properties.
(f) Reflects acquisition-related expenses incurred and the pro rated expenses and income obtained as part of the acquisition of the Properties.
(g) Reflects common units of limited partnership interests issued as a portion of the consideration paid for the acquisition of the Properties.

 

6


LANDMARK APARTMENT TRUST OF AMERICA, INC.

PRO FORMA CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

For the Nine Months Ended September 30, 2013

(In thousands, except for share and per share data)

 

     Historical               
     Landmark
Apartment
Trust of
America, Inc.
    Contributed
Properties
     Pro Forma
Adjustments
(Unaudited)
    Pro Forma
(Unaudited)
 

Revenues:

         

Rental income

   $ 82,104      $ 3,186         (171 )(a)(b)    $ 85,119   

Other property revenues

     10,496        655           11,151   

Management fee income

     2,953           (60 )(c)      2,893   

Reimbursed income

     8,416             8,416   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     103,969        3,841         (231     107,579   

Expenses:

         

Rental expenses

     41,941        2,289         (154 )(c)      44,076   

Property lease expense

     2,217             2,217   

Reimbursed expense

     8,416             8,416   

General, administrative and other expense

     11,582             11,582   

Acquisition-related expenses

     11,967           79 (d)      12,046   

Depreciation and amortization

     43,837           3,507 (e)      47,344   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total expenses

     119,960        2,289         3,432        125,681   

Other income/(expense):

         

Interest expense, net

     (23,074        (748 )(b)(f)      (23,822

Preferred dividends classified as interest expense

     (8,324          (8,324

Disposition right income

     1,231             1,231   

Loss on debt and preferred stock extinguishment

     (10,220          (10,220
  

 

 

   

 

 

    

 

 

   

 

 

 

Loss from continuing operations before income tax

     (56,378     1,552         (4,411     (59,237

Income tax benefit

     3,078             3,078   
  

 

 

   

 

 

    

 

 

   

 

 

 

Loss from continuing operations

     (53,300     1,552         (4,411     (56,159

Less: Net loss from continuing operations attributable to redeemable non-controlling interests in operating partnership

     26,832             29,665   

Net loss attributable to non-controlling interest

     422             422   
  

 

 

        

 

 

 

Net loss from continuing operations attributable to common stockholders

   $ (26,046        $ (26,072
  

 

 

        

 

 

 

Other comprehensive income/(loss):

         

Change in cash flow hedges attributable to redeemable non-controlling interest in operating partnership

     373             373   

Change in cash flow hedges

     (534          (534
  

 

 

        

 

 

 

Comprehensive loss attributable to common stockholders

   $ (26,207        $ (26,233
  

 

 

        

 

 

 

Net loss from continuing operations per share attributable to common stockholders – basic and diluted

   $ (1.17        $ (1.17
  

 

 

        

 

 

 

Weighted average number of common shares outstanding – basic and diluted

     22,223,118             22,223,118   

Weighted average number of common units held by non-controlling interests – basic and diluted

     21,414,208           2,392,255 (g)      23,806,463   

 

7


Unaudited Pro Forma Consolidated Statement of Operations Adjustments

 

(a) Reflects the estimated rental income that would have been recorded due to amortizing the fair market adjustment to above market leases.
(b) Reflects the pro-rated income and expense items of the acquired Properties upon acquisition.
(c) Reflects the management fee income received from the Properties and the management fee expense of the Properties that would not have been recognized if the Company had acquired the Properties as of January 1, 2013.
(d) Reflects acquisition-related expenses incurred as part of the acquisition of the Properties.
(e) Reflects the estimated depreciation and amortization that would have been recorded by the Company based on the depreciable basis of the Properties, assuming asset lives ranging from five to forty years, as well as the amortization of the identified intangible values recorded with an estimated useful life of approximately six months.
(f) Reflects estimated interest expense that would have been recorded to the deferred financing costs, new debt and assumed debt, including the impact of amortizing the fair market adjustment on fixed rate debt over the term of the related debt instrument.
(g) Reflects the common units of limited partnership interest issued as a portion of the consideration paid for the acquisition of the Properties.

 

8


LANDMARK APARTMENT TRUST OF AMERICA, INC.

PRO FORMA CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

For the Year Ended December 31, 2012

(In thousands, except for share and per share data)

 

     Historical (Audited)               
     Landmark
Apartment
Trust of
America, Inc.
    Contributed
Properties
     Pro Forma
Adjustments
(Unaudited)
    Pro Forma
(Unaudited)
 

Revenues:

         

Rental income

   $ 57,196      $ 2,801         (171 )(a)(b)    $ 59,826   

Other property revenues

     7,521        510           8,031   

Management fee income

     2,645             2,645   

Reimbursed income

     10,407             10,407   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     77,769        3,311         (171     80,909   

Expenses:

         

Rental expenses

     28,854        1,839         (133 )(c)      30,560   

Property lease expense

     4,208             4,208   

Reimbursed expense

     10,407             10,407   

General, administrative and other expense

     13,029             13,029   

Acquisition-related expenses

     19,894           79 (d)      19,973   

Depreciation and amortization

     20,056           3,852 (e)      23,908   

Impairment loss

     5,397             5,397   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total expenses

     101,845        1,839         3,798        107,482   
  

 

 

   

 

 

    

 

 

   

 

 

 

Loss from operations

     (24,076     1,472         (3,969     (26,573

Other expense:

         

Interest expense, net

     (17,519        (1,021 )(b)(f)      (18,540
  

 

 

   

 

 

    

 

 

   

 

 

 

Net loss

     (41,595     1,472         (4,990     (45,113
  

 

 

        

 

 

 

Less: Net loss attributable to redeemable non-controlling interests in operating partnership

     6,735             10,711   
  

 

 

        

 

 

 

Net loss attributable to common stockholders

   $ (34,860        $ (34,402
  

 

 

        

 

 

 

Other comprehensive income/(loss):

         

Change in cash flow hedges attributable to redeemable non-controlling interests in operating partnership

     50             50   

Change in cash flow hedges

     (310          (310
  

 

 

        

 

 

 

Comprehensive loss attributable to common stockholders

   $ (35,120        $ (34,662
  

 

 

        

 

 

 

Net income loss per share attributable to common stockholders – basic and diluted

   $ (1.72        $ (1.70
  

 

 

        

 

 

 

Weighted average number of common shares outstanding – basic and diluted

     20,244,130             20,244,130   

Weighted average number of common units held by non- controlling interests – basic and diluted

     3,911,026           2,392,255 (g)      6,303,281   

 

9


Unaudited Pro Forma Consolidated Statement of Operations Adjustments

 

(a) Reflects the estimated rental income that would have been recorded due to amortizing the fair market adjustment to above market leases.
(b) Reflects the pro-rated income and expense items of the Properties upon acquisition.
(c) Reflects the property management fee expense that would not have been recognized if we had acquired the Properties as of January 1, 2012.
(d) Reflects acquisition-related expenses incurred as part of the acquisition of the Properties.
(e) Reflects the estimated depreciation and amortization that would have been recorded by the Company based on the depreciable basis of the Properties, assuming asset lives ranging from five to forty years, as well as the amortization of the identified intangible values recorded with an estimated useful life of approximately six months.
(f) Reflects estimated interest expense that would have been recorded to the deferred financing costs, new debt and assumed debt, including the impact of amortizing the fair market adjustment on fixed rate debt over the term of the related debt instrument.
(g) Reflects the common units of limited partnership interest issued as a portion of the consideration paid for the acquisition of the Properties.

 

10


LANDMARK APARTMENT TRUST OF AMERICA, INC.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended December 31, 2011

(In thousands, except for share and per share data)

 

     Historical (Audited)               
     Landmark
Apartment
Trust of
America, Inc.
    Contributed
Properties
     Pro Forma
Adjustments
(Unaudited)
    Pro Forma
(Unaudited)
 

Revenues:

         

Rental income

   $ 42,485      $ 1,766         (171 )(a)(b)    $ 44,080   

Other property revenues

     5,306        235           5,541   

Management fee income

     2,865             2,865   

Reimbursed income

     11,207             11,207   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     61,863        2,001         (171     63,693   

Expenses:

         

Rental expenses

     21,249        1,038         (80 )(c)      22,207   

Property lease expense

     2,402             2,402   

Reimbursed expense

     11,207             11,207   

General, administrative and other expense

     8,198             8,198   

Acquisition-related expenses

     1,270           79 (d)      1,349   

Loss from unconsolidated joint venture

     59             59   

Depreciation and amortization

     13,541           3,852 (e)      17,393   

Impairment loss

     390             390   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total expenses

     58,316        1,038         3,851        63,205   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income/(loss) from operations

     3,547        963         (4,022     488   

Other expense:

         

Interest expense, net

     (12,493        (1,021 )(b)(f)      (13,514
  

 

 

   

 

 

    

 

 

   

 

 

 

Net loss

     (8,946     963       $ (5,043     (13,026
  

 

 

        

 

 

 

Less: Net loss attributable to redeemable non-controlling interests in operating partnership

            1,403   
  

 

 

        

 

 

 

Net loss attributable to common stockholders

   $ (8,946        $ (11,623
  

 

 

        

 

 

 

Net income loss per share attributable to common stockholders – basic and diluted

   $ (0.45        $ (0.59
  

 

 

        

 

 

 

Weighted average number of common shares outstanding – basic and diluted

     19,812,886             19,812,886   

Weighted average number of common units held by non-controlling interests – basic and diluted

     0           2,392,255 (g)      2,392,255   

Unaudited Pro Forma Consolidated Statement of Operations Adjustments

 

(a) Reflects the estimated rental income that would have been recorded due to amortizing the fair market adjustment to above market leases.
(b) Reflects the pro-rated income and expense items of the Properties upon acquisition.
(c) Reflects the property management fee expense that would not have been recognized if the Company had acquired the Properties as of January 1, 2011.
(d) Reflects acquisition-related expenses incurred as part of the acquisition of the Properties.
(e) Reflects the estimated depreciation and amortization that would have been recorded by the Company based on the depreciable basis of the Properties, assuming asset lives ranging from five to forty years, as well as the amortization of the identified intangible values recorded with an estimated useful life of approximately six months.
(f) Reflects estimated interest expense that would have been recorded to the deferred financing costs, new debt and assumed debt, including the impact of amortizing the fair market adjustment on fixed rate debt over the term of the related debt instrument.
(g) Reflects the common units of limited partnership interest issued as a portion of the consideration paid for the acquisition of the Properties.

 

11


LANDMARK APARTMENT TRUST OF AMERICA, INC.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

(In thousands, except for share and per share data)

 

     Historical (Audited)               
     Landmark
Apartment
Trust of
America, Inc.
    Contributed
Properties
     Pro Forma
Adjustments
(Unaudited)
    Pro Forma
(Unaudited)
 

Revenues:

         

Rental income

   $ 35,568      $ 259         (171 )(a)(b)    $ 35,656   

Other property revenues

     4,006        12           4,018   

Management fee income

     465             465   

Reimbursed income

     2,082             2,082   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     42,121        271         (171     42,221   

Expenses:

         

Rental expenses

     18,871        117         (11 )(c)      18,977   

Reimbursed expense

     2,082             2,082   

General, administrative and other expense

     1,809             1,809   

Acquisition-related expenses

     5,394           79 (d)      5,473   

Depreciation and amortization

     12,861           3,852 (e)      16,713   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total expenses

     41,017        117         3,920        45,054   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income/(loss) from operations

     1,104        154         (4,091     (2,833

Other expense:

         

Interest expense, net

     (11,869        (1,021 )(b)(f)      (12,890
  

 

 

   

 

 

    

 

 

   

 

 

 

Net loss

     (10,765     154         (5,112     (15,723
  

 

 

        

 

 

 

Less: Net loss attributable to redeemable non-controlling interests in operating partnership

            1,813   
  

 

 

        

 

 

 

Net loss attributable to common stockholders

   $ (10,765        $ (13,910
  

 

 

        

 

 

 

Net income loss per share attributable to common stockholders – basic and diluted

   $ (0.59        $ (0.76
  

 

 

        

 

 

 

Weighted average number of common shares outstanding – basic and diluted

     18,356,824             18,356,824   

Weighted average number of common units held by non-controlling interests – basic and diluted

     0           2,392,255 (g)      2,392,255   

Unaudited Pro Forma Consolidated Statement of Operations Adjustments

 

(a) Reflects the estimated rental income that would have been recorded due to amortizing the fair market adjustment to above market leases.
(b) Reflects the pro-rated income and expense items of the Properties upon acquisition.
(c) Reflects the property management fee expense that would not have been recognized if the Company had acquired the Properties as of January 1, 2010.
(d) Reflects acquisition-related expenses incurred as part of the acquisition of the Properties.
(e) Reflects the estimated depreciation and amortization that would have been recorded by the Company based on the depreciable basis of the Properties, assuming asset lives ranging from five to forty years, as well as the amortization of the identified intangible values recorded with an estimated useful life of approximately six months.
(f) Reflects estimated interest expense that would have been recorded to the deferred financing costs, new debt and assumed debt, including the impact of amortizing the fair market adjustment on fixed rate debt over the term of the related debt instrument.
(g) Reflects the common units of limited partnership interest issued as a portion of the consideration paid for the acquisition of the Properties.

 

12


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

February 7, 2014     Landmark Apartment Trust of America, Inc.
    By:  

/s/ B. Mechelle Lafon

    Name:   B. Mechelle Lafon
    Title:   Assistant Chief Financial Officer, Treasurer and Secretary


Exhibit Index

 

Exhibit

Number

  

Name

23.1    Consent of Joel Sanders & Company, PA, Independent Registered Public Accounting Firm