plus real estate-related depreciation and amortization, (iv) net gains or losses from sales of real estate, and (v) similar adjustments for unconsolidated joint ventures. We also believe that adjusted FFO (“AFFO”) is a meaningful supplemental non-GAAP disclosure of our operating results. AFFO further adjusts FFO in order for our operating results to reflect the specific characteristics of our business by adjusting for items we believe are not related to our core operations. Our adjustments to FFO to arrive at AFFO include removing the impact of (i) straight-line rental income and expense, (ii) deferred income amortization, (iii) amortization of above- and below-market lease intangibles, (iv) amortization of mortgage premium / discount, (v) unrealized gains or losses from changes in the fair value of real estate debt and other financial instruments, (vi) gains and losses resulting from foreign currency translations, (vii) amortization of restricted stock awards, (viii) non-cash performance participation allocation, even if repurchased by us, (ix) amortization of deferred financing costs, (x) gains or losses on extinguishment of debt, and (xi) similar adjustments for unconsolidated joint ventures. AFFO is not defined by NAREIT and our calculation of AFFO may not be comparable to disclosures made by other REITs. The following table presents a reconciliation of FFO and AFFO to GAAP net loss attributable to stockholders ($ in thousands):
For the Year Ended December 31,
2024
2023
2022
Net loss attributable to stockholders Adjustments to arrive at FFO: Real estate depreciation and amortization Impairment of investments in real estate
$ (684,883) $ (649,703) $
(65,708)
742,220 150,392 55,496 (87,108)
811,788 188,804
848,943
—
Investment in unconsolidated real estate ventures – depreciation, amortization, and impairment Amount attributable to non-controlling interests for above adjustments Net gain on dispositions of real estate
54,542
17,920
(289,818)
—
(4,220)
(4,570)
(5,229)
FFO attributable to stockholders Adjustments to arrive at AFFO: Straight-line rental income and expense Deferred income amortization
171,897
111,043
795,926
(10,213) (20,108) (2,464) 153,827 41,062
(13,181) (15,957) (3,839) 349,941 (14,786)
(12,098) (9,720) (3,575)
Amortization of above- and below-market lease intangibles, net Unrealized losses (gains) from changes in the fair value of investments in real estate debt and other financial instruments
(505,658)
Foreign currency loss (gain) Amortization of restricted stock awards Non-cash performance participation allocation Amortization of deferred financing costs (1)
49,536
840
840
894
—
— 102,348
22,252
35,111
37,573
Loss on extinguishment of debt
—
93
313
Amount attributable to non-controlling interests for above adjustments
(1,166)
(2,268)
3,607
AFFO attributable to stockholders
$
355,927 $ 446,997 $ 459,146
(1) Includes the amortization of mortgage premium / discount. FFO and AFFO should not be considered to be more relevant or accurate than the GAAP methodology in calculating net income (loss) or in evaluating our operating performance. In addition, FFO and AFFO should not be considered as alternatives to net income (loss) as indications of our performance or as alternatives to cash flows from operating activities as indications of our liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO and AFFO are not intended to be used as liquidity measures indicative of cash flow available to fund our cash needs, including our ability to
make distributions to our stockholders. Unregistered Sales of Equity Securities
As described in Note 12 — “Related Party Transactions” to our consolidated financial statements in this Annual Report on Form 10-K, the Advisor is entitled to an annual management fee equal to (i) 1.25% of our NAV per annum payable monthly, before giving effect to any accruals for the management fee, the stockholder servicing fee, the performance participation interest or any distributions, plus (ii) 1.25% per annum of the aggregate DST Property consideration for all DST Properties subject to the FMV Option held by the Operating Partnership as compensation for the services it provides to us. For avoidance of doubt, the Advisor does not receive a duplicative management fee with respect to any DST Property. In addition, the Operating Partnership will pay the Advisor a management fee equal to 1.25% of the NAV of the Operating Partnership attributable to Operating Partnership units held by unitholders other than us. The management fee can be paid, at the Advisor’s election, in cash, shares of common stock, or Operating Partnership units. The Advisor waived its management fee through March 31, 2019. In connection with the share
68
Made with FlippingBook flipbook maker