Maryland | 001-15409 | 39-6594066 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
2600 South Gessner, Suite 555 | ||
Houston, Texas | 77063 | |
(Address of principal executive offices) | (Zip Code) |
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: | |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
• | The accompanying Unaudited Pro Forma Consolidated Balance Sheet as of September 30, 2018 has been prepared as if the Disposition had occurred as of that date. |
• | The accompanying Unaudited Pro Forma Consolidated Statements of Operations for the nine months ended September 30, 2018 and the year ended December 31, 2017 have been prepared as if the Disposition occurred as of January 1, 2017. |
Pillarstone Capital REIT and Subsidiaries | ||||||||||||
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET | ||||||||||||
As of September 30, 2018 | ||||||||||||
(in thousands, except per share data) | ||||||||||||
Pillarstone Capital REIT and Subsidiaries(a) | Pro Forma Adjustments(b) | Pro Forma Total | ||||||||||
ASSETS | ||||||||||||
Real estate assets, at cost | ||||||||||||
Property | $ | 85,309 | $ | (7,454 | ) | $ | 77,855 | |||||
Accumulated depreciation | (5,205 | ) | 590 | (4,615 | ) | |||||||
Total real estate assets | 80,104 | (6,864 | ) | 73,240 | ||||||||
Cash and cash equivalents | 988 | 7,436 | 8,424 | |||||||||
Escrows and utility deposits | 2,549 | — | 2,549 | |||||||||
Accrued rents and accounts receivable, net of allowance for doubtful accounts | 1,469 | (216 | ) | 1,253 | ||||||||
Receivable due from related party | 1,276 | — | 1,276 | |||||||||
Unamortized lease commissions and deferred legal costs, net | 1,341 | (151 | ) | 1,190 | ||||||||
Prepaid expenses and other assets | 117 | (10 | ) | 107 | ||||||||
Total assets | $ | 87,844 | $ | 195 | $ | 88,039 | ||||||
LIABILITIES AND EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Notes payable | $ | 62,412 | $ | (6,227 | ) | (c) | $ | 56,185 | ||||
Accounts payable and accrued expenses | 3,322 | (448 | ) | 2,874 | ||||||||
Payable due to related party | 297 | — | 297 | |||||||||
Convertible notes payable - related parties | 198 | — | 198 | |||||||||
Accrued interest payable | 226 | (17 | ) | 209 | ||||||||
Tenants' security deposits | 1,410 | (248 | ) | 1,162 | ||||||||
Total liabilities | 67,865 | (6,940 | ) | 60,925 | ||||||||
Commitments and contingencies | — | — | — | |||||||||
Shareholders' Equity: | ||||||||||||
Preferred A Shares - $0.01 par value, 1,518,000 authorized: 256,636 Class A cumulative convertible shares issued and outstanding at September 30, 2018 and December 31, 2017, $10.00 per share liquidation preference | 3 | — | 3 | |||||||||
Preferred C Shares - $0.01 par value, 300,000 authorized: 244,444 Class C cumulative convertible shares issued and outstanding, $10.00 per share liquidation preference at September 30, 2018 and December 31, 2017 | 2 | — | 2 | |||||||||
Common Shares - $0.01 par value, 400,000,000 authorized: 443,299 shares issued and 405,169 outstanding at September 30, 2018 and December 31, 2017 | 4 | — | 4 | |||||||||
Additional paid-in capital | 28,147 | — | 28,147 | |||||||||
Accumulated deficit | (27,574 | ) | 1,324 | (26,250 | ) | |||||||
Treasury stock, at cost, 38,130 shares | (801 | ) | — | (801 | ) | |||||||
Total Pillarstone Capital REIT shareholders' (deficit) equity | (219 | ) | 1,324 | 1,105 | ||||||||
Noncontrolling interest in subsidiary | 20,198 | 5,811 | 26,009 | |||||||||
Total equity | 19,979 | 7,135 | 27,114 | |||||||||
Total liabilities and equity | $ | 87,844 | $ | 195 | $ | 88,039 |
Pillarstone Capital REIT and Subsidiaries | ||||||||||||
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
For the Nine Months Ended September 30, 2018 | ||||||||||||
(in thousands, except share and per share data) | ||||||||||||
Pillarstone Capital REIT and Subsidiaries(a) | Pro Forma Adjustments(b) | Pro Forma Total | ||||||||||
Property revenues | ||||||||||||
Rental revenues | $ | 10,768 | $ | (1,143 | ) | $ | 9,625 | |||||
Other revenues | 2,223 | (318 | ) | 1,905 | ||||||||
Total property revenues | 12,991 | (1,461 | ) | 11,530 | ||||||||
Property expenses | ||||||||||||
Property operation and maintenance | 3,630 | (433 | ) | 3,197 | ||||||||
Real estate taxes | 2,135 | (289 | ) | 1,846 | ||||||||
Total property expenses | 5,765 | (722 | ) | 5,043 | ||||||||
Other expenses | ||||||||||||
General and administrative | 578 | — | 578 | |||||||||
Depreciation and amortization | 2,612 | (287 | ) | 2,325 | ||||||||
Interest expense | 2,051 | (176 | ) | (c) | 1,875 | |||||||
Total other expense | 5,241 | (463 | ) | 4,778 | ||||||||
Income before loss on disposal of assets and income taxes | 1,985 | (276 | ) | 1,709 | ||||||||
Loss on disposal of assets | (12 | ) | — | (12 | ) | |||||||
Provision for income taxes | (67 | ) | 9 | (58 | ) | |||||||
Net income | 1,906 | (267 | ) | 1,639 | ||||||||
Less: Non-controlling interest in subsidiary | 1,842 | (218 | ) | 1,624 | ||||||||
Net income attributable to Common Shareholders | $ | 64 | $ | (49 | ) | $ | 15 | |||||
Earnings Per Share: | ||||||||||||
Basic income per Common Share: | ||||||||||||
Net income available to Common Shareholders | $ | 0.16 | $ | 0.04 | ||||||||
Diluted income per Common Share: | ||||||||||||
Net income available to Common Shareholders | $ | 0.02 | $ | 0.01 | ||||||||
Weighted average number of Common Shares outstanding: | ||||||||||||
Basic: | 405,169 | 405,169 | ||||||||||
Diluted: | 2,903,219 | 2,903,219 |
Pillarstone Capital REIT and Subsidiaries | ||||||||||||
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
For the Year Ended December 31, 2017 | ||||||||||||
(in thousands, except share and per share data) | ||||||||||||
Pillarstone Capital REIT and Subsidiaries(a) | Pro Forma Adjustments(b) | Pro Forma Total | ||||||||||
Property revenues | ||||||||||||
Rental revenues | $ | 14,218 | $ | (1,250 | ) | $ | 12,968 | |||||
Other revenues | 2,550 | (364 | ) | 2,186 | ||||||||
Total property revenues | 16,768 | (1,614 | ) | 15,154 | ||||||||
Property expenses | ||||||||||||
Property operation and maintenance | 5,029 | (487 | ) | 4,542 | ||||||||
Real estate taxes | 2,672 | (349 | ) | 2,323 | ||||||||
Total property expenses | 7,701 | (836 | ) | 6,865 | ||||||||
Other expenses | ||||||||||||
General and administrative | 508 | — | 508 | |||||||||
Depreciation and amortization | 3,268 | (382 | ) | 2,886 | ||||||||
Interest expense | 2,725 | (234 | ) | (c) | 2,491 | |||||||
Total other expense | 6,501 | (616 | ) | 5,885 | ||||||||
Income before loss on disposal of assets and income taxes | 2,566 | (162 | ) | 2,404 | ||||||||
Loss on disposal of assets | (31 | ) | 9 | (22 | ) | |||||||
Provision for income taxes | (88 | ) | 8 | (80 | ) | |||||||
Net income | 2,447 | (145 | ) | 2,302 | ||||||||
Less: Non-controlling interest in subsidiary | 2,232 | (118 | ) | 2,114 | ||||||||
Net income attributable to Common Shareholders | $ | 215 | $ | (27 | ) | $ | 188 | |||||
Earnings Per Share: | ||||||||||||
Basic income per Common Share: | ||||||||||||
Net income available to Common Shareholders | $ | 0.53 | $ | 0.46 | ||||||||
Diluted income per Common Share: | ||||||||||||
Net income available to Common Shareholders | $ | 0.07 | $ | 0.06 | ||||||||
Weighted average number of Common Shares outstanding: | ||||||||||||
Basic: | 405,169 | 405,169 | ||||||||||
Diluted: | 2,903,219 | 2,903,219 |
PILLARSTONE CAPITAL REIT | |||
Date: | January 3, 2019 | By: /s/ John J. Dee | |
Name: John J. Dee Title: Chief Financial Officer and Senior Vice President |