☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
2020
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland (State or other jurisdiction of incorporation or organization) | 82-1419222 (I.R.S. Employer Identification No.) | |||||||
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730 Third Avenue, 3rd Floor New York, NY | ||||||||
(Address of principal executive offices) | 10017 (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: None.
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | ||||||||||
Emerging growth company | ☒ |
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YES ☐ NO ☐
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APPLICABLE ONLY TO CORPORATE ISSUERS:
The aggregate market value of the voting andnon-voting common equity held bynon-affiliates of the Registrant: No established market exists for the registrant’s common stock.
As of May 14, 2019, there were 98,483 outstanding shares of Class D common stock, 395,001 outstanding shares of Class I common stock, 153,402 outstanding shares of Class T common stock and 29,730,608 outstanding shares of Class N common stock. There were no outstanding shares of Class S common stock.
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||
None | N/A | N/A |
Page | ||||||||||||
Consolidated Statements of Operations for the | ||||||||||||
Consolidated Statements of Comprehensive | ||||||||||||
Consolidated Statement of Changes in Equity for the | ||||||||||||
Consolidated Statements of Cash Flows for the | ||||||||||||
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March 31, 2019 (unaudited) | December 31, 2018 | |||||||
Assets | ||||||||
Investments in real estate, net | $ | 292,295 | $ | 294,374 | ||||
Investment in commercial mortgage loan, at fair value | 45,133 | — | ||||||
Investments in real estate-related securities, at fair value | 33,952 | 29,228 | ||||||
Investments in international affiliated funds | 28,004 | 28,594 | ||||||
Cash and cash equivalents | 5,485 | 5,643 | ||||||
Restricted cash | 3,562 | 56 | ||||||
Intangible assets, net | 15,130 | 16,367 | ||||||
Other assets | 3,316 | 2,584 | ||||||
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Total assets | $ | 426,877 | $ | 376,846 | ||||
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Liabilities and Equity | ||||||||
Credit Facility | $ | 115,000 | 70,000 | |||||
Accounts payable, accrued expenses, and other liabilities | 5,862 | 5,070 | ||||||
Intangible liabilities, net | 5,673 | 5,759 | ||||||
Due to affiliates | 4,722 | 4,602 | ||||||
Distribution Payable | 2,666 | 2,484 | ||||||
Subscriptions received in advance | 2,467 | 55 | ||||||
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Total liabilities | $ | 136,390 | $ | 87,970 | ||||
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Equity | ||||||||
Series A Preferred Stock | 129 | — | ||||||
Common stock—Class D Shares, $0.01 par value per share, 500,000,000 shares authorized, 48,606 and 25,839 issued and outstanding at March 31, 2019 and December 31, 2018, respectively | — | (a) | — | |||||
Common stock—Class T Shares, $0.01 par value per share, 500,000,000 shares authorized, 49,624 and no shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | — | (b) | — | |||||
Common stock—Class I Shares, $0.01 par value per share, 500,000,000 shares authorized, 207,822 and 186,474 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 2 | 2 | ||||||
Common stock—Class N Shares, $0.01 par value per share, 100,000,000 shares authorized, 29,730,608 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 297 | 297 | ||||||
Additionalpaid-in capital | 299,215 | 298,419 | ||||||
Accumulated deficit and cumulative distributions | (8,805 | ) | (9,884 | ) | ||||
Accumulated other comprehensive (loss) income | (350 | ) | 42 | |||||
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Total stockholders’ equity | 290,487 | 288,876 | ||||||
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Total Equity | 290,487 | 288,876 | ||||||
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Total liabilties and equity | $ | 426,877 | $ | 376,846 | ||||
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March 31, 2020 (unaudited) | December 31, 2019 | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investments in real estate, net | $ | 370,540 | $ | 373,088 | |||||||||||||||||||
Investments in international affiliated funds | 45,047 | 37,734 | |||||||||||||||||||||
Investments in real estate-related securities, at fair value | 30,047 | 35,240 | |||||||||||||||||||||
Investment in commercial mortgage loan, at fair value | 12,831 | 12,733 | |||||||||||||||||||||
Intangible assets, net | 27,883 | 28,769 | |||||||||||||||||||||
Cash and cash equivalents | 10,044 | 5,584 | |||||||||||||||||||||
Restricted cash | 2,781 | 10,087 | |||||||||||||||||||||
Other assets | 5,347 | 4,262 | |||||||||||||||||||||
Total assets | $ | 504,520 | $ | 507,497 | |||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Credit facility | $ | 85,277 | $ | 107,777 | |||||||||||||||||||
Mortgage payable, net | 47,520 | 47,502 | |||||||||||||||||||||
Intangible liabilities, net | 8,709 | 8,907 | |||||||||||||||||||||
Due to affiliates | 7,895 | 6,059 | |||||||||||||||||||||
Accounts payable, accrued expenses, and other liabilities | 6,509 | 5,798 | |||||||||||||||||||||
Subscriptions received in advance | 2,781 | 10,087 | |||||||||||||||||||||
Distributions payable | 1,924 | 5,102 | |||||||||||||||||||||
Total liabilities | 160,615 | 191,232 | |||||||||||||||||||||
Equity | |||||||||||||||||||||||
Series A Preferred Stock | 129 | 125 | |||||||||||||||||||||
Common stock - Class T shares, $0.01 par value per share, 500,000,000 shares authorized, 2,358,700 and 1,377,256 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 24 | 14 | |||||||||||||||||||||
Common stock - Class S shares, $0.01 par value per share, 500,000,000 shares authorized, 1,255,756 and 70,151 issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 13 | 1 | |||||||||||||||||||||
Common stock - Class D shares, $0.01 par value per share, 500,000,000 shares authorized, 1,115,645 and 572,675 issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 10 | 5 | |||||||||||||||||||||
Common stock - Class I shares, $0.01 par value per share, 500,000,000 shares authorized, 3,200,941 and 1,965,962 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 32 | 20 | |||||||||||||||||||||
Common stock - Class N shares, $0.01 par value per share, 100,000,000 shares authorized, 29,730,608 shares issued and outstanding at March 31, 2020 and December 31, 2019 | 297 | 297 | |||||||||||||||||||||
Additional paid-in capital | 376,382 | 336,147 | |||||||||||||||||||||
Accumulated deficit and cumulative distributions | (32,140) | (19,974) | |||||||||||||||||||||
Accumulated other comprehensive loss | (842) | (370) | |||||||||||||||||||||
Total equity | 343,905 | 316,265 | |||||||||||||||||||||
Total liabilities and equity | $ | 504,520 | $ | 507,497 | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Rental revenue | $ | 9,458 | $ | 6,745 | |||||||||||||||||||||||||
Income from commercial mortgage loan | 245 | 21 | |||||||||||||||||||||||||||
Total revenues | 9,703 | 6,766 | |||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Rental property operating | 2,962 | 2,286 | |||||||||||||||||||||||||||
General and administrative | 1,034 | 958 | |||||||||||||||||||||||||||
Advisory fee due to affiliate | 727 | 467 | |||||||||||||||||||||||||||
Depreciation and amortization | 4,144 | 3,387 | |||||||||||||||||||||||||||
Total expenses | 8,867 | 7,098 | |||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Realized and unrealized (loss) income from real estate-related securities | (7,667) | 4,986 | |||||||||||||||||||||||||||
Income (loss) from equity investment in unconsolidated international affiliated funds | 1,690 | (165) | |||||||||||||||||||||||||||
Unrealized loss on commercial mortgage loan | (331) | — | |||||||||||||||||||||||||||
Interest income | 35 | 11 | |||||||||||||||||||||||||||
Interest expense | (1,189) | (752) | |||||||||||||||||||||||||||
Total other (expense) income | (7,462) | 4,080 | |||||||||||||||||||||||||||
Net (loss) income | (6,626) | 3,748 | |||||||||||||||||||||||||||
Net income attributable to Series A preferred stock | 4 | 4 | |||||||||||||||||||||||||||
Net (loss) income attributable to common stockholders | $ | (6,630) | $ | 3,744 | |||||||||||||||||||||||||
Net (loss) income per share of common stock - basic and diluted | $ | (0.18) | $ | 0.12 | |||||||||||||||||||||||||
Weighted-average shares of common stock outstanding, basic and diluted | 36,062,045 | 29,994,015 |
Comprehensive Income (Loss) (Unaudited)
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Revenues | ||||||||
Rental revenue | $ | 6,745 | $ | 2,822 | ||||
Interest income from commercial mortgage loan | 21 | — | ||||||
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Total revenues | 6,766 | 2,822 | ||||||
Expenses | ||||||||
Property operating | 2,286 | 966 | ||||||
General and administrative | 958 | 1,691 | ||||||
Advisory fee due to affiliate | 467 | 295 | ||||||
Depreciation and amortization | 3,387 | 1,773 | ||||||
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Total expenses | 7,098 | 4,725 | ||||||
Other income (expense) | ||||||||
Realized and unrealized income from real estate-related securities | 4,986 | 388 | ||||||
Income (loss) from equity investment in unconsolidated international affiliated funds | (165 | ) | — | |||||
Interest income | 11 | — | ||||||
Interest expense | (752 | ) | — | |||||
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Total other income (expense) | 4,080 | 388 | ||||||
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Net income (loss) | 3,748 | (1,515 | ) | |||||
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Net income attributable to series A preferred stock | 4 | — | ||||||
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Net income (loss) attributable to NREIT stockholders | $ | 3,744 | $ | (1,515 | ) | |||
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Net income (loss) per share of common stock—basic and diluted | $ | 0.12 | $ | (0.08 | ) | |||
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Weighted-average shares of common stock outstanding, basic and diluted | 29,994,015 | 18,148,333 | ||||||
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thousands)
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Net (loss) income | $ | (6,626) | $ | 3,748 | |||||||||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | (472) | (392) | |||||||||||||||||||||||||||
Comprehensive (loss) income | (7,098) | 3,356 | |||||||||||||||||||||||||||
Comprehensive income attributable to Series A preferred stock | 4 | 4 | |||||||||||||||||||||||||||
Comprehensive (loss) income attributable to common stockholders | $ | (7,102) | $ | 3,352 |
(Changes in thousands)
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Net income (loss) | $ | 3,748 | $ | (1,515 | ) | |||
Other comprehensive income (loss): | ||||||||
Unrealized loss from currency translation | (392 | ) | — | |||||
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Comprehensive income (loss) | 3,356 | (1,515 | ) | |||||
Comprehensive income attributable to series A preferred stock | 4 | — | ||||||
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Comprehensive income attributable to NREIT stockholders | $ | 3,352 | $ | (1,515 | ) | |||
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Equity
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock | Par Value | Additional Paid-in Capital | Accumulated Deficit and Cumulative Distributions | Accumulated Other Comprehensive Loss | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Class T | Common Stock Class S | Common Stock Class D | Common Stock Class I | Common Stock Class N | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 125 | 14 | 1 | 5 | 20 | 297 | $ | 336,147 | $ | (19,974) | $ | (370) | $ | 316,265 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of 2,123,497 shares of common stock (net of $166 of offering costs) | — | 10 | 12 | 5 | 12 | — | 39,929 | — | — | 39,968 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution reinvestments | — | — | (a) | — | (a) | — | (a) | — | (a) | — | 295 | — | — | 295 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of restricted stock grants | — | — | — | — | — | — | 11 | — | — | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 4 | — | — | — | — | — | — | (6,630) | — | (6,626) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on common stock | — | — | — | — | — | — | — | (5,536) | — | (5,536) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | (472) | (472) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | 129 | $ | 24 | $ | 13 | $ | 10 | $ | 32 | $ | 297 | $ | 376,382 | $ | (32,140) | $ | (842) | $ | 343,905 |
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock | Par Value | Additional Paid-in Capital | Accumulated Deficit and Cumulative Distributions | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Class T | Common Stock Class D | Common Stock Class I | Common Stock Class N | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | — | $ | — | $ | — | $ | 2 | $ | 297 | $ | 298,419 | $ | (9,884) | $ | 42 | $ | 288,876 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of 93,740 shares of common stock (net of $69 of offering costs) | — | — | (a) | — | (a) | — | (a) | — | 775 | — | — | 775 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution reinvestments | — | — | — | (b) | — | (b) | — | 10 | — | — | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of restricted stock grants | — | — | — | — | — | 11 | — | — | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 4 | — | — | — | — | — | 3,744 | — | 3,748 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions on common stock | — | (2) | (3) | (15) | (2,646) | — | — | — | (2,666) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of 125 shares of Series A preferred stock | 125 | — | — | — | — | — | — | — | 125 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | (392) | (392) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 129 | $ | (2) | $ | (3) | $ | (13) | $ | (2,349) | $ | 299,215 | $ | (6,140) | $ | (350) | $ | 290,487 |
Cash Flows (Unaudited)
Par Value | Additional Paid-in Capital | Accumulated Deficit and Cumulative Distributions | Accumulated Other Comprehensive Income | Total Equity | ||||||||||||||||||||||||||||||||
Series A Preferred Stock | Common Stock Class D | Common Stock Class T | Common Stock Class I | Common Stock Class N | ||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | $ | — | $ | — | $ | — | $ | — | $ | 124 | $ | 124,126 | $ | (328 | ) | $ | — | $ | 123,922 | |||||||||||||||||
Issuance of 7,575,000 shares of Common Stock (net of $2,510 of offering costs) | — | — | — | — | 76 | 73,164 | — | — | $ | 73,240 | ||||||||||||||||||||||||||
Amortization of restricted stock grants | — | — | — | — | — | 11 | — | — | $ | 11 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (1,515 | ) | — | $ | (1,515 | ) | ||||||||||||||||||||||||
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Balance at March 31, 2018 | $ | — | $ | — | $ | — | $ | 2 | $ | 200 | $ | 197,301 | $ | (1,843 | ) | $ | — | $ | 195,658 | |||||||||||||||||
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Balance at December 31, 2018 | $ | — | $ | — | $ | — | $ | 2 | $ | 297 | $ | 298,419 | $ | (9,884 | ) | $ | 42 | $ | 288,876 | |||||||||||||||||
Issuance of 93,740 shares of Common Stock (net of $69 of offering costs) | — | — | (a) | — | (a) | — | (a) | — | 775 | — | — | — 775 | ||||||||||||||||||||||||
Distribution reinvestment | — | — | (b) | — | — | (b) | — | 10 | — | — | 10 | |||||||||||||||||||||||||
Amortization of restricted stock grants | — | — | — | — | — | 11 | — | — | 11 | |||||||||||||||||||||||||||
Net income | 4 | — | — | — | — | — | 3,744 | — | 3,748 | |||||||||||||||||||||||||||
Distributions declared on common stock | — | (3 | ) | (2 | ) | (15 | ) | (2,646 | ) | — | — | — | (2,666 | ) | ||||||||||||||||||||||
Issuance of 125 shares of series A preferred stock | 125 | — | — | — | — | — | — | — | 125 | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | (392 | ) | (392 | ) | |||||||||||||||||||||||||
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Balance at March 31, 2019 | $ | 129 | $ | (3 | ) | $ | (2 | ) | $ | (13 | ) | $ | (2,349 | ) | $ | 299,215 | $ | (6,140 | ) | $ | (350 | ) | $ | 290,487 | ||||||||||||
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Three Months Ended March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net (loss) income | $ | (6,626) | $ | 3,748 | |||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 4,144 | 3,387 | |||||||||||||||
Unrealized loss (gain) on changes in fair value of real estate-related securities | 6,498 | (4,769) | |||||||||||||||
Realized loss on sale of real estate-related securities | 1,459 | 76 | |||||||||||||||
(Income) loss from equity investment in unconsolidated international affiliated funds | (1,690) | 165 | |||||||||||||||
Income distribution from equity investment in unconsolidated international affiliated funds | 282 | — | |||||||||||||||
Unrealized loss on changes in fair value of commercial mortgage loan | 331 | — | |||||||||||||||
Straight line rent adjustment | (665) | (410) | |||||||||||||||
Amortization of below-market lease intangibles | (184) | (87) | |||||||||||||||
Amortization of above-market lease intangibles | 4 | — | |||||||||||||||
Amortization of loan closing costs | 127 | 99 | |||||||||||||||
Amortization of restricted stock grants | 11 | 11 | |||||||||||||||
Change in assets and liabilities: | |||||||||||||||||
Escrow for commercial mortgage loan | — | 1,096 | |||||||||||||||
Increase in other assets | (522) | (421) | |||||||||||||||
Increase in due to affiliates | — | 120 | |||||||||||||||
Increase (decrease) in accounts payable, accrued expenses, and other liabilities | 853 | (434) | |||||||||||||||
Net cash provided by operating activities | 4,022 | 2,581 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Origination and fundings of commercial mortgage loan | (429) | (45,202) | |||||||||||||||
Funding for investment in international affiliated funds | (6,377) | — | |||||||||||||||
Capital improvements to real estate | (876) | (62) | |||||||||||||||
Purchase of real estate-related securities | (11,783) | (2,907) | |||||||||||||||
Proceeds from sale of real estate-related securities | 9,019 | 2,876 | |||||||||||||||
Net cash used in investing activities | (10,446) | (45,295) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from issuance of common stock | 42,242 | 969 | |||||||||||||||
Offering costs paid | (144) | — | |||||||||||||||
Borrowings from credit facility | 20,000 | 45,000 | |||||||||||||||
Repayments on credit facility | (42,500) | — | |||||||||||||||
Proceeds from issuance of Series A preferred stock | — | 110 | |||||||||||||||
Subscriptions received in advance | (7,306) | 2,467 | |||||||||||||||
Distributions to common stockholders | (8,714) | (2,484) | |||||||||||||||
Net cash provided by financing activities | 3,578 | 46,062 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash during the period | (2,846) | 3,348 | |||||||||||||||
Cash and cash equivalents and restricted cash, beginning of period | 15,671 | 5,699 | |||||||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 12,825 | $ | 9,047 | |||||||||||||
Reconciliation of cash and cash equivalents and restricted cash to the Consolidated Balance Sheets, end of period: | |||||||||||
Cash and cash equivalents | $ | 10,044 | $ | 5,485 | |||||||
Restricted cash | 2,781 | 3,562 | |||||||||
Total cash and cash equivalents and restricted cash | $ | 12,825 | $ | 9,047 | |||||||
Supplemental disclosures: | |||||||||||
Interest paid | $ | 1,233 | $ | 534 | |||||||
Series A preferred stock costs | $ | — | $ | 15 | |||||||
Non-cash investing activities: | |||||||||||
Accrued capital expenditures | $ | (149) | $ | 10 | |||||||
Non-cash financing activities: | |||||||||||
Accrued distributions | $ | 3,178 | $ | 2,666 | |||||||
Accrued stockholder servicing fees | $ | 1,836 | $ | 74 | |||||||
Distribution reinvestments | $ | 285 | $ | 10 | |||||||
Accrued offering costs | $ | 19 | $ | — | |||||||
Accrued offering costs due to affiliate | $ | — | $ | 3,557 | |||||||
Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 3,748 | $ | (1,515 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 3,387 | 1,773 | ||||||
Unrealized gain on changes in fair value of real estate-related securities | (4,769 | ) | (274 | ) | ||||
Realized loss on sale of real estate-related securities | 76 | — | ||||||
Loss from equity investment in unconsolidated international affiliated funds | 165 | — | ||||||
Straight line rent adjustment | (410 | ) | (45 | ) | ||||
Amortization of below-market lease intangibles | (87 | ) | (16 | ) | ||||
Amortization of loan closing costs | 99 | — | ||||||
Amortization of restricted stock grants | 11 | 11 | ||||||
Change in assets and liabilities: | ||||||||
(Increase) in other assets | (421 | ) | (441 | ) | ||||
Increase in due to affiliates | 120 | 873 | ||||||
(Decrease)/Increase in accounts payable, accrued expenses, and other liabilities | (434 | ) | 1,034 | |||||
|
|
|
| |||||
Net cash provided by operating activites | 1,485 | 1,400 | ||||||
|
|
|
| |||||
Cash flows from investing activities: | ||||||||
Origination and fundings of commercial mortgage loan | (45,202 | ) | — | |||||
Escrow for commercial mortgage loan | 1,096 | |||||||
Capital improvements to real estate | (62 | ) | (26 | ) | ||||
Purchase of real estate-related securities | (2,907 | ) | (19,944 | ) | ||||
Proceeds from sale of real estate-related securities | 2,876 | — | ||||||
|
|
|
| |||||
Net cash (used in) investing activities | (44,199 | ) | (19,970 | ) | ||||
|
|
|
| |||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock | 969 | 75,750 | ||||||
Borrowings from credit facility | 45,000 | — | ||||||
Proceeds from issuance of series A preferred stock, net of costs | 110 | — | ||||||
Subscriptions received in advance | 2,467 | — | ||||||
Distributions | (2,484 | ) | — | |||||
|
|
|
| |||||
Net cash provided by financing activities | 46,062 | 75,750 | ||||||
|
|
|
| |||||
Net increase in cash and cash equivalents and restricted cash during the period | 3,348 | 57,180 | ||||||
Cash and cash equivalents and restricted cash, beginning of period | $ | 5,699 | $ | 3,681 | ||||
|
|
|
| |||||
Cash and cash equivalents and restricted cash, end of period | $ | 9,047 | $ | 60,861 | ||||
|
|
|
| |||||
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets, end of period: | ||||||||
Cash and cash equivalents | $ | 5,485 | $ | 60,861 | ||||
Restricted cash | 3,562 | — | ||||||
|
|
|
| |||||
Total cash and cash equivalents and restricted cash | $ | 9,047 | $ | 60,861 | ||||
|
|
|
| |||||
Supplemental disclosures: | ||||||||
Interest paid | $ | 534 | $ | — | ||||
|
|
|
| |||||
Series A preferred stock costs | $ | 15 | $ | — | ||||
|
|
|
| |||||
Non-cash investing activities: | ||||||||
Accrued capital expenditures | $ | 10 | $ | — | ||||
|
|
|
| |||||
Non-cash financing activities: | ||||||||
Accrued distributions | $ | 2,666 | $ | — | ||||
|
|
|
| |||||
Accrued stockholder servicing fees | $ | 74 | $ | — | ||||
|
|
|
| |||||
Distribution reinvestments | $ | 10 | $ | — | ||||
|
|
|
| |||||
Accrued offering costs due to affiliate | $ | 3,557 | $ | 2,510 | ||||
|
|
|
|
The accompanying notes are an integral part of these
Sponsor and an investment advisory affiliate of Nuveen Real Estate ("NRE").
All property acquisitions to date have been accounted for as asset acquisitions.
acquisitions.
Description | Depreciable Life | |||||||
Building | 40 years | |||||||
| ||||||||
Furniture, fixtures and equipment | 3-7 years | |||||||
Lease intangibles | Over lease term |
Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation or amortization are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period.
Investment
Thisor loss, which includes the Company’s allocable share of the International Affiliated Fund’s income and expense, realized gains and losses, and unrealized appreciation or depreciation as determined from the financial statements of ECF and APCF (which carry investments at fair value in accordance with the applicable GAAP) when received byand is reported as Income (Loss) from Equity Investment in Unconsolidated International Affiliated Funds on the Company. Company’s Consolidated Statement of Operations.
Avalue and was initially valued at the face amount of the loan funding. Subsequently, the commercial mortgage loan is valued at least quarterly by an independent third-party independent valuation firm appointedwith additional oversight being performed by the Company oversees and administers the appraisal process quarterly in accordance with the Company’sAdvisor’s internal valuation policy.department. The values arevalue is based on market factors, such as market interest rates and spreads for comparable loans, the performance of the underlying collateral (such as the loan-to-value ratio and the cash flow of the underlying collateral), and the credit quality of the borrower.
The income from commercial mortgage loan represents interest income and origination fee income, which is reported as income from commercial mortgage loan on the Company’s Consolidated Statements of Operations.
Deferred financing costs related to the Company’s mortgage payable are recorded as an offset to the related liability and amortized over the term of the financing instrument. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage and legal fees, are recorded as a component of Investments in Real Estate, Net on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease.
Investment in Commercial Mortgage Loan | ||||||||
Balance as of December 31, 2019 | $ | 12,733 | ||||||
Additional Fundings | 429 | |||||||
Net Unrealized Loss | (331) | |||||||
Balance as of March 31, 2020 | $ | 12,831 |
Type | Asset Class | Valuation Technique(s) | Unobservable Inputs | Market Equivalent Rate | ||||||||||||||||||||||
Commercial Mortgage Loan | Industrial | Cash Equivalency Method | Discount Rate | LIBOR(1) + 7.05% |
consist of amounts due from tenants for costs related to common area maintenance, real estate taxes and other recoverable costs includes in lease agreements.
Interest
loan, which has since been sold.
Organization costs are expensed as incurred and recorded as a component of General and Administrative Expenses on the Company’s Consolidated Statements of Operations and offering costs are charged to equity as such amounts are incurred.
2023.
2019.
Recent Accounting Pronouncements
on its consolidated financial statements.
Recently Adopted:
In addition, the Company has elected the practical expedient that allows lessors to avoid separating lease and non-lease components within a contract if certain criteria are met. The lessor’s practical expedient election is limited to circumstances in which (i) the timing and pattern of revenue recognition are the same for the non-lease component and the related lease component and (ii) the combined single lease component would be classified as an operating lease. This practical expedient allows the Company the ability to combine the lease and non-lease components if the underlying asset meets the two criteria above.
In May 2014, the FASB issued ASU2014-09 “Revenue from Contracts with Customers (Topic 606)”(“ASU 2014-09”). Beginning January 1, 2018, the Company was required to recognize revenue to depict the
transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and has included additional disclosure requirements. The majority of the Company’s revenue is derived from tenant leases at multifamily, office, retail, and industrial properties and the Company has concluded that the adoption of ASU2014-09 did not have an impact on both the rental revenue and tenant reimbursement income revenue streams.
March 31, 2019 | December 31, 2018 | |||||||
Building and building improvements | $ | 249,522 | $ | 249,552 | ||||
Land and land improvements | 46,609 | 46,609 | ||||||
Furniture, fixtures and equipment | 3,345 | 3,249 | ||||||
|
|
|
| |||||
Total | 299,476 | 299,410 | ||||||
Accumulated depreciation | (7,181 | ) | (5,036 | ) | ||||
|
|
|
| |||||
Investments in real estate, net | $ | 292,295 | $ | 294,374 | ||||
|
|
|
|
March 31, 2020 | December 31, 2019 | ||||||||||
Building and building improvements | $ | 323,486 | $ | 323,162 | |||||||
Land and land improvements | 61,098 | 61,098 | |||||||||
Furniture, fixtures and equipment | 3,548 | 3,474 | |||||||||
Total | 388,132 | 387,734 | |||||||||
Accumulated depreciation | (17,592) | (14,646) | |||||||||
Investments in real estate, net | $ | 370,540 | $ | 373,088 |
2020.
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Unrealized gains | $ | 4,769 | $ | 274 | ||||
Realized (losses) | (76 | ) | — | |||||
Dividend income | 293 | 114 | ||||||
|
|
|
| |||||
Total | $ | 4,986 | $ | 388 | ||||
|
|
|
|
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Unrealized (losses) gains | $ | (6,498) | $ | 4,769 | |||||||||||||||||||||||||
Realized losses | (1,459) | (76) | |||||||||||||||||||||||||||
Dividend income | 290 | 293 | |||||||||||||||||||||||||||
Total | $ | (7,667) | $ | 4,986 |
On December 22, 2017, the Company entered into a subscription agreement to invest approximately $30 million (€25 million) into ECF. As of March 31, 2019, the Company had funded $18.6 million (€16.2 million) and has a remaining unfunded commitment of approximately $11.4 million (€8.8 million). As described in Note 2, the Company records its investment in ECF using the equity method on its Consolidated Balance Sheets. While the
Company has strategies to manage the foreign exchange risk associated with its investment made in Euros, there can be no assurance that these strategies will be successful or that foreign exchange fluctuations will not negatively impact the Company’s financial performance and results of operations in a material manner.
ECF was formed in March 2016 as anopen-end, Euro-denominated fund whichthat seeks to build a diversified portfolio of high quality and stabilized commercial real estate with good fundamentals (i.e., core real estate) located in or around certain investment cities in Europe selected for their resilience, potential for long-term structural performance and ability to deliver an attractive and stable distribution yield.
For the three months ended March 31, 2019, the Company recorded approximately $163,000 in income and unrealized loss based on its allocable share from ECF that is reflected on the Consolidated Statements of Operations.
Investment in APCF:
While the Company has strategies to manage the foreign exchange risk associated with its investment made in Euros, there can be no assurance that these strategies will be successful or that foreign exchange fluctuations will not negatively impact the Company’s financial performance and results of operations in a material manner.
Three Months Ended March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating income | $ | 428 | $ | 185 | |||||||||||||
Unrealized gains (losses) | 738 | (22) | |||||||||||||||
Net income | $ | 1,166 | $ | 163 |
Forthe Asia-Pacific region.
Three Months Ended March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating income (loss) | $ | 249 | $ | (25) | |||||||||||||
Unrealized gains (losses) | 275 | (302) | |||||||||||||||
Net income (loss) | $ | 524 | $ | (327) |
As of
Investment Name | Asset Type | Location | Interest Rate | Maturity Date | Periodic Payment Terms | Commitment Amount | Unfunded Amount | Principal Receivable | Fair Value | |||||||||||||||||||||||||
55 Grand Avenue | Senior Loan | Masbeth, NY | Libor + 285 bps | March 29, 2024 | Interest only | 34,173 | — | 34,173 | 34,173 | |||||||||||||||||||||||||
55 Grand Avenue | Mezzanine Loan | Masbeth, NY | Libor + 285 bps | March 29, 2024 | Interest only | 14,375 | 2,984 | 11,391 | 11,391 |
below ($ in thousands):
Investment Name | Asset Type | Location | Interest Rate | Origination Date | Maturity Date | Periodic Payment Terms | Commitment Amount | Unfunded Amount | Principal Receivable | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
55 Grand Ave | Mezzanine Loan | Masbeth, NY | Libor + 570 bps | March 28, 2019 | March 29, 2022 | Interest Only | $14,375 | $1,213 | $13,162 | $12,831 |
For the three months ended March 31, 2020 and March 31, 2019, the Company recognized an unrealized loss on its commercial mortgage loan of $0.3 million and $0 million, respectively.
March 31, 2019 | December 31, 2018 | |||||||
Intangible assets: | ||||||||
In-place lease intangibles | $ | 14,679 | $ | 14,679 | ||||
Above-market lease intangibles | 154 | 154 | ||||||
Other intangibles | 6,563 | 6,557 | ||||||
|
|
|
| |||||
Total intangible assets | $ | 21,396 | $ | 21,390 | ||||
Accumulated amortization: | ||||||||
In-place lease intangibles | (5,385 | ) | (4,396 | ) | ||||
Above-market lease intangibles | (8 | ) | (3 | ) | ||||
Other intangibles | (873 | ) | (624 | ) | ||||
|
|
|
| |||||
Total accumulated amortization | $ | (6,266 | ) | $ | (5,023 | ) | ||
|
|
|
| |||||
Intangible assets, net | $ | 15,130 | $ | 16,367 | ||||
|
|
|
| |||||
Intangible liabilities: | ||||||||
Below-market lease intangibles | $ | (5,876 | ) | $ | (5,876 | ) | ||
Accumulated amortization | 203 | 117 | ||||||
|
|
|
| |||||
Intangible liabilities, net | $ | (5,673 | ) | $ | (5,759 | ) | ||
|
|
|
|
March 31, 2020 | December 31, 2019 | ||||||||||
Intangible assets: | |||||||||||
In-place lease intangibles | $ | 26,359 | $ | 26,408 | |||||||
Above-market lease intangibles | 154 | 154 | |||||||||
Other intangibles | 11,964 | 11,677 | |||||||||
Total Intangible assets | 38,477 | 38,239 | |||||||||
Accumulated amortization: | |||||||||||
In-place lease intangibles | (8,354) | (7,623) | |||||||||
Above-market lease intangibles | (25) | (21) | |||||||||
Other intangibles | (2,215) | (1,826) | |||||||||
Total accumulated amortization | (10,594) | (9,470) | |||||||||
Intangible assets, net | $ | 27,883 | $ | 28,769 | |||||||
Intangible liabilities: | |||||||||||
Below-market lease intangibles | $ | (9,414) | $ | (9,414) | |||||||
Accumulated amortization | 705 | 507 | |||||||||
Intangible liabilities, net | $ | (8,709) | $ | (8,907) |
2020.
In-place Lease Intangibles | Other Intangibles | Below-market Lease Intangibles | ||||||||||
Remaining 2019 | $ | 1,676 | $ | 728 | $ | (257 | ) | |||||
2020 | 1,467 | 891 | (338 | ) | ||||||||
2021 | 1,227 | 717 | (328 | ) | ||||||||
2022 | 981 | 641 | (313 | ) | ||||||||
2023 | 652 | 497 | (312 | ) | ||||||||
Thereafter | 3,291 | 2,362 | (4,125 | ) | ||||||||
|
|
|
|
|
| |||||||
$ | 9,294 | $ | 5,836 | $ | (5,673 | ) | ||||||
|
|
|
|
|
|
In-place Lease Intangibles | Above-market Lease Intangibles | Other Intangibles | Below-market Lease Intangibles | ||||||||||||||||||||
2020 (remaining) | $ | 2,100 | $ | 13 | $ | 1,152 | $ | (550) | |||||||||||||||
2021 | 2,596 | 17 | 1,395 | (724) | |||||||||||||||||||
2022 | 2,316 | 17 | 1,303 | (695) | |||||||||||||||||||
2023 | 2,016 | 17 | 1,168 | (681) | |||||||||||||||||||
2024 | 1,893 | 17 | 1,093 | (677) | |||||||||||||||||||
Thereafter | 7,084 | 48 | 3,638 | (5,382) | |||||||||||||||||||
$ | 18,005 | $ | 129 | $ | 9,749 | $ | (8,709) |
and Mortgage Payable
facilityCredit Facility bear interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted 30 day LIBOR30-day London Interbank Offered Rate (“LIBOR”) rate, in each case, plus an applicable margin. The applicable margin ranges from 1.30% to 1.90% for borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of Nuveen OP’sOP and its subsidiaries. Loans under the credit facilityCredit Agreement will mature three years from October 24, 2018, with an option to extend twice for an additional year pursuant to the terms of the Credit Agreement. On December 17, 2018 and June 11, 2019, the Company amended the Credit Agreement to
Principal Balance Outstanding | ||||||||||||||||||||||||||||||||||||||
Indebtedness | Interest Rate | Maturity Date | Maximum Facility Size | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
Credit facility | L+applicable margin(1) | October 24, 2021 | $ | 210,000 | $ | 85,277 | $ | 107,777 |
Principal Balance Outstanding | ||||||||||||||||||||||||||||||||||||||
Indebtedness | Interest Rate | Maturity Date | Maximum Facility Size | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
Mortgage payable | 3.15% | December 1, 2026 | $ | 48,000 | $ | 48,000 | $ | — | $ | 48,000 | ||||||||||||||||||||||||||||
Deferred financing costs, net | (480) | (499) | ||||||||||||||||||||||||||||||||||||
Mortgage payable, net | $ | 47,520 | $ | 47,501 |
Amount | ||||||||||||||||||||
Year | Credit Facility | Mortgage Payable | ||||||||||||||||||
2020 (remaining) | $ | — | $ | — | ||||||||||||||||
2021 | 85,277 | — | ||||||||||||||||||
2022 | — | — | ||||||||||||||||||
2023 | — | — | ||||||||||||||||||
2024 | — | — | ||||||||||||||||||
Thereafter | — | 48,000 | ||||||||||||||||||
Total | $ | 85,277 | $ | 48,000 |
March 31, 2019 | December 31, 2018 | |||||||
Straight-line rent receivable | $ | 1,529 | $ | 1,119 | ||||
Deferred financing costs, net | 703 | 771 | ||||||
Receivables | 645 | 353 | ||||||
Prepaid expenses | 397 | 288 | ||||||
Other | 42 | 53 | ||||||
|
|
|
| |||||
Total | $ | 3,316 | $ | 2,584 | ||||
|
|
|
|
March 31, 2020 | December 31, 2019 | ||||||||||
Straight-line rent receivable | $ | 3,000 | $ | 2,336 | |||||||
Receivables | 1,062 | 736 | |||||||||
Deferred financing costs on credit facility, net | 671 | 779 | |||||||||
Prepaid expenses | 521 | 329 | |||||||||
Other | 93 | 82 | |||||||||
Total | $ | 5,347 | $ | 4,262 |
March 31, 2019 | December 31, 2018 | |||||||
Real estate taxes payable | $ | 1,611 | $ | 2,099 | ||||
Accounts payable and accrued expenses | 1,391 | 1,420 | ||||||
Escrow funds for commercial mortgage loan | 1,095 | — | ||||||
Prepaid rental income | 652 | 386 | ||||||
Tenant security deposits | 569 | 587 | ||||||
Other | 544 | 578 | ||||||
|
|
|
| |||||
Total | $ | 5,862 | $ | 5,070 | ||||
|
|
|
|
As of December 31, 2018, “Other” included a deposit received on a commercial mortgage loan that the Company has received and was applied against the funds when the commercial mortgage loan was originated in March 2019.
March 31, 2020 | December 31, 2019 | ||||||||||
Real estate taxes payable | $ | 2,177 | $ | 1,742 | |||||||
Accounts payable and accrued expenses | 1,720 | 1,700 | |||||||||
Tenant security deposits | 1,053 | 1,044 | |||||||||
Prepaid rental income | 909 | 608 | |||||||||
Accrued interest expense | 290 | 334 | |||||||||
Other | 360 | 370 | |||||||||
Total | $ | 6,509 | $ | 5,798 |
The Advisor, will receive fees and compensation, payable monthly in arrears, in connection with the offering and ongoing management of the assets of the Company, as follows:
Class T Shares | Class S Shares | Class D Shares | Class I Shares | Class N Shares | ||||||||||||||||
Advisory Fee as a % of NAV | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 0.65 | % |
As
Class T Shares | Class S Shares | Class D Shares | Class I Shares | Class N Shares | |||||||||||||||||||||||||
Advisory Fee (% of NAV) | 1.25% | 1.25% | 1.25% | 1.25% | 0.65% |
$0.5 million, respectively.
| ||||||
| ||||||
| ||||||
|
|
Class T Shares | Class S Shares | Class D Shares | Class I Shares | ||||||||||||||||||||
Maximum Upfront Selling Commissions (% of Transaction Price) | up to 3.0% | up to 3.5% | — | — | |||||||||||||||||||
Maximum Upfront Dealer Manager Fees (% of Transaction Price) | 0.50% | — | — | — | |||||||||||||||||||
Stockholder Servicing Fee (% of NAV) | 0.85%(1) | 0.85% | 0.25% | — |
If not already converted into Class I shares upon a determination that total upfront selling commissions, dealer manager fees and stockholder servicing fees paid with respect to such shares would exceed the applicable limit as described above, each Class T share, Class S share, Class D share and Class N share held in a stockholder’s account will automatically and without any action on the part of the holder thereof convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share on the earliest of (i) a listing of Class I shares, (ii) the Company’s merger or consolidation with or into another entity or the sale or other disposition of all or substantially all of the Company’s assets, in each case in a transaction in which stockholders receive cash and/or listed securities or (iii) after termination of the primary portion of the offering in which such Class T shares, Class S shares and Class D shares were sold, the end of the month in which the Company, with the assistance of the dealer manager, determines that all underwriting compensation from all sources in connection with the Offering, including upfront selling commissions, the stockholder servicing fee and other underwriting compensation, is equal to 10% of the gross proceeds of the primary portion of the Offering. In addition, immediately before any liquidation, dissolution or winding up, each Class T share, Class S share, Class D share and Class N shares will automatically convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share.
March 31, 2020 | December 31, 2019 | ||||||||||
Accrued stockholder servicing fees(1) | $ | 3,247 | $ | 1,411 | |||||||
Advanced organization and offering | 4,648 | 4,648 | |||||||||
Total | $ | 7,895 | $ | 6,059 |
Due to Affiliates
March 31, 2019 | December 31, 2018 | |||||||
Accrued stockholder servicing fees(a) | $ | 74 | $ | 23 | ||||
Advanced organization and offering costs | 4,648 | 4,579 | ||||||
|
|
|
| |||||
Total | $ | 4,722 | $ | 4,602 | ||||
|
|
|
|
|
course of business the Advisor, on behalf of the Company, enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Advisor expects the risk of loss to be remote.
Year | Future Minimum Rent | |||
Remaining 2019 | $ | 11,992 | ||
2020 | 15,871 | |||
2021 | 15,128 | |||
2022 | 14,272 | |||
2023 | 12,778 | |||
Thereafter | 65,087 | |||
|
| |||
Total | $ | 135,128 | ||
|
|
Year | March 31, 2020 | |||||||
2020 (remaining) | $ | 15,186 | ||||||
2021 | 19,716 | |||||||
2022 | 19,386 | |||||||
2023 | 18,019 | |||||||
2024 | 16,932 | |||||||
Thereafter | 79,006 | |||||||
Total | $ | 168,245 |
Series A Preferred Stock (defined below).
Stock”). On January 4, 2019, the Company sold 125 shares of its Series A Preferred Stock at a purchase price of $1,000 per share in a private placement exempt from registration. The offering of Series A Preferred Stock was effected for the purpose of the Company having at least 100 stockholders to satisfy one of the qualifications we must meetrequired in order to qualify as a REIT under the code.
Code.
Class T | Class S | Class D | Class I | Class N | Total | ||||||||||||||||||||||||||||||
December 31, 2019 | 1,377 | 70 | 573 | 1,966 | 29,731 | 33,717 | |||||||||||||||||||||||||||||
Common Stock Issued | 970 | 1,185 | 536 | 1,220 | — | 3,911 | |||||||||||||||||||||||||||||
Distribution Reinvestment | 12 | 1 | 7 | 9 | — | 29 | |||||||||||||||||||||||||||||
Vested Stock | — | — | — | 6 | — | 6 | |||||||||||||||||||||||||||||
March 31, 2020 | 2,359 | 1,256 | 1,116 | 3,201 | 29,731 | 37,663 |
Three months ended March 31, 2019 | ||||||||||||||||||||||||||||||||||||
Class I | Class D | Class T | ||||||||||||||||||||||||||||||||||
Amounts | Shares | Share Price | Amounts | Shares | Share Price | Amounts | Shares | Share Price | ||||||||||||||||||||||||||||
January 2019 | $ | 30,000 | 2,913 | $ | 10.30 | $ | — | — | $ | — | $ | 24,272 | 2,359 | $ | 10.29 | |||||||||||||||||||||
February 2019(1) | $ | 115,574 | 11,232 | $ | 10.29 | $ | 1,755 | 171 | $ | 10.28 | $ | 390,007 | 37,939 | $ | 10.28 | |||||||||||||||||||||
March 2019 | $ | 75,000 | 7,205 | $ | 10.41 | $ | 235,000 | 22,596 | $ | 10.40 | $ | 97,087 | 9,327 | $ | 10.41 |
|
TheCompany’s Class N shares of common stock through its wholly owned subsidiary. Per the terms of the agreement between the Company and TIAA, all shares held by TIAA (excludingare not eligible to be repurchased until January 31, 2023; provided that TIAA must continue to maintain ownership of the $200,000 initial capitalization which must be heldinvestment in the Company’s shares for so long as the Advisor or its affiliate remains the advisor) shall be subject to the following limitations on repurchase:
(i) TIAA may submit up to 4,980,000 Class N shares for repurchase upon the earlier of (1) the date thatserves as the Company’s NAV reaches $1 billion, and (2) two years from the commencement of the Offering; and (ii) TIAA may submit all of its remaining Class N shares for repurchase beginning on the fifth anniversary of the commencement of the Offering.
The total amount of repurchases of Class N shares eligible for repurchase will be limited to no more than 0.67% of aggregate NAV per month and no more than 1.67% of the Company’s aggregate NAV per calendar quarter; provided that , if in any month or quarter the total amount of aggregate repurchases of all classes of common stock do not reach the overall share repurchase plan limits of 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter, the above repurchase limits on the Class N shares shall not apply to that month or quarter and TIAA shall be entitled to submit shares for repurchase up to the overall share repurchase plan limits.
Restricted Stock Grants
not permit automatic
The Company’s board of directors declared distributions on all outstanding shares of common stock as of the close of business on the record dates of October 31, 2018, November 30, 2018 and December 31, 2018. These distributions were paid on January 29, 2019. The following table details these distributions:
Class I | Class D | Class N | ||||||||||
Net Distribution | $ | 0.07 | $ | 0.07 | $ | 0.08 | ||||||
Total Distributions Declared | 13,640 | 1,760 | 2,468,230 |
Based on the monthly record dates established byaggregate distribution declared for each of our share classes for the board of directors, the Company accrues for distribution on a monthly basis. The Company accrued $2.7 million for January, February andthree months ended March 2019 in Distribution payable on the Consolidated Balance Sheets.
31, 2020:
Class T Common Stock | Class S Common Stock | Class D Common Stock | Class I Common Stock | Class N Common Stock | |||||||||||||||||||||||||
Gross distribution per share of common stock | $ | 0.1737 | $ | 0.1737 | $ | 0.1737 | $ | 0.1737 | $ | 0.1737 | |||||||||||||||||||
Advisory fee per share of common stock | (0.0296) | (0.0296) | (0.0298) | (0.0299) | (0.0158) | ||||||||||||||||||||||||
Stockholder servicing fee per share of common stock | (0.0226) | (0.0225) | (0.0067) | — | — | ||||||||||||||||||||||||
Net distribution per share of common stock | $ | 0.1215 | $ | 0.1216 | $ | 0.1372 | $ | 0.1438 | $ | 0.1579 |
March 31, 2019 | December 31, 2018 | |||||||
Multifamily | $ | 96,268 | $ | 97,448 | ||||
Industrial | 89,076 | 89,963 | ||||||
Office | 34,170 | 34,134 | ||||||
Retail | 90,319 | 90,881 | ||||||
Real Estate-Related Securities | 33,952 | 29,228 | ||||||
International Affiliated Fund | 28,051 | 28,594 | ||||||
Commercial Mortgage Loans | 45,134 | — | ||||||
Other (Corporate) | 9,908 | 6,598 | ||||||
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|
| |||||
Total assets | $ | 426,878 | $ | 376,846 | ||||
|
|
|
|
March 31,
2020December 31,
2019Industrial $ 106,225 $ 106,417 Multifamily 93,402 $ 94,039 Retail 87,480 $ 88,217 Office 75,862 $ 76,603 Other 39,601 $ 39,634 International Affiliated Funds 45,047 $ 37,734 Real Estate-Related Securities 30,047 $ 35,240 Commercial Mortgage Loan 12,886 $ 12,733 Other (Corporate) 13,970 $ 16,880 Total assets $ 504,520 $ 507,497
Multifamily | Office | Industrial | Retail | Real Estate- Related Securities | International Affiliated Funds | Commercial Mortgage Loan | Total | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Rental Revenue | $ | 2,360 | $ | 810 | $ | 1,931 | $ | 1,644 | $ | — | $ | — | $ | — | $ | 6,745 | ||||||||||||||||
Interest income from commercial mortgage loan | — | — | — | — | — | — | 21 | 21 | ||||||||||||||||||||||||
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Total revenues | 2,360 | 810 | 1,931 | 1,644 | — | — | 21 | 6,766 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Rental property operating | 1,085 | 255 | 575 | 371 | — | — | — | 2,286 | ||||||||||||||||||||||||
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Total expenses | 1,085 | 255 | 575 | 371 | — | — | — | 2,286 | ||||||||||||||||||||||||
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Realized and unrealized income from real estate-related securities | — | — | — | — | 4,986 | — | — | 4,986 | ||||||||||||||||||||||||
Income (loss) from equity investment in unconsolidated international affiliated funds | — | — | — | — | — | (165 | ) | — | (165 | ) | ||||||||||||||||||||||
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Segment net operating income | $ | 1,275 | $ | 555 | $ | 1,356 | $ | 1,273 | $ | 4,986 | $ | (165 | ) | $ | 42 | $ | 9,301 | |||||||||||||||
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Depreciation and amortization | (1,201 | ) | (280 | ) | (1,117 | ) | (789 | ) | — | — | — | (3,387 | ) | |||||||||||||||||||
General and administrative expenses | (958 | ) | ||||||||||||||||||||||||||||||
Advisory fee due to affiliate | (467 | ) | ||||||||||||||||||||||||||||||
Interest Income | 11 | |||||||||||||||||||||||||||||||
Interest Expense | (752 | ) | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Net income | 3,748 | |||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Net income attributable to series A preferred stock | 4 | |||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Net income attributable to NREIT stockholders | $ | 3,744 | ||||||||||||||||||||||||||||||
|
|
The following table sets forth the financial results by segment for the three months ended March 31, 2018 (in thousands):
Multifamily | Industrial | Real Estate-Related Securities | Total | |||||||||||||
Revenues: | ||||||||||||||||
Rental revenue | $ | 1,295 | $ | 1,527 | $ | — | $ | 2,822 | ||||||||
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| |||||||||
Total revenues | $ | 1,295 | $ | 1,527 | $ | — | $ | 2,822 | ||||||||
Expenses: | ||||||||||||||||
Rental property operating expenses | $ | 580 | $ | 386 | $ | — | $ | 966 | ||||||||
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|
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Total expenses | $ | 580 | $ | 368 | $ | — | $ | 966 | ||||||||
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| |||||||||
Realized and unrealized income from real estate-related securities | — | — | 388 | 388 | ||||||||||||
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Segment net operating income | $ | 715 | $ | 1,141 | $ | 388 | $ | 2,244 | ||||||||
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Depreciation and amortization | $ | 851 | $ | 922 | $ | — | $ | 1,773 | ||||||||
General and administrative expenses | 1,691 | |||||||||||||||
Advisory fee due to affiliate | 295 | |||||||||||||||
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Net loss | $ | (1,515 | ) | |||||||||||||
|
|
Three Months Ended March 31, | 2020 v 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | $ | 2,357 | $ | 1,931 | $ | 426 | 22 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Office | 2,342 | 2,360 | (18) | (1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 1,654 | 1,644 | 10 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | 1,979 | 810 | 1,169 | 144 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 1,126 | — | 1,126 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total rental revenues | 9,458 | 6,745 | 2,713 | 40 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental property operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | 695 | 575 | 120 | 21 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office | 1,145 | 1,085 | 60 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 319 | 371 | (52) | (14) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | 516 | 255 | 261 | 102 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 287 | — | 287 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total rental property operating expenses | 2,962 | 2,286 | 676 | 30 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | (1,194) | (1,117) | (77) | 7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office | (761) | (1,201) | 440 | (37) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | (845) | (789) | (56) | 7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | (867) | (280) | (587) | 210 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (477) | — | (477) | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total depreciation and amortization | (4,144) | (3,387) | (757) | 22 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from commercial mortgage loan | 245 | 21 | 224 | 1,067 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss from commercial mortgage loan | (331) | — | (331) | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized (loss) income from real estate-related securities | (7,667) | 4,986 | (12,653) | (254) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from equity investment in unconsolidated international affiliated funds | 1,690 | (165) | 1,855 | (1,124) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | (1,034) | (958) | (76) | 8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advisory fee due to affiliate | (727) | (467) | (260) | 56 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 35 | 11 | 24 | 218 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (1,189) | (752) | (437) | 58 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | (6,626) | 3,748 | (10,374) | (277) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Series A preferred | 4 | 4 | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income attributable to common stockholders | $ | (6,630) | $ | 3,744 | $ | (10,374) | (277) | % |
The Company’s
28, 2020.
I.
I.
2019 and elsewhere in this Quarterly Report on Form 10-Q.“Risk“Item 1A. Risk Factors” in our Registration Statement filed pursuant to Rule 424(b)(3) as filedAnnual Report on JanuaryForm 10-K for the year ended December 31, 2018.ourAnnual Report on Form10-K for the year ended December 31, 2018,2019, and elsewhere in this Quarterly Report on Form10-Q. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans, which we consider to be reasonable, will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this Quarterly Report on Form10-Q is filed with the SEC.Securities and Exchange Commission (the “SEC”). Except as required by law, we do not undertake to update or revise any forward-looking statements contained in this Quarterly Report on Form10-Q.2017.2017 and qualifies as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2018. We were formed to invest in properties in or around certain global cities selected for their resilience, long-term structural performance and ability to deliver an attractive and stable distribution yield. We expect that a majority of our real estate investments will be located in the United States and that a substantial but lesser portion of our portfolio will include real properties located in Canada, Europe and the Asia-Pacific region. We will seek to complement our real property investments by investing a smaller portion of our portfolio in real estate-related assets. We are externally managed by our advisor, Nuveen Real Estate Global We intend to elect to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.
Initial Public Offering
•provide regular, stable cash distributions;
•target institutional quality, stabilized commercial real estate to achieve an attractive distribution yield;
•preserve and protect stockholders’ invested capital;
•realize appreciation from proactive investment management and asset management; and
•seek diversification by investing across leading global cities and across real estate sectors including office, industrial, multifamily, retail and retail.
Summary
Sector and Property/Portfolio Name | Number of Properties | Location | Acquisition Date | Ownership Interest | Acquisition Price (in thousands) | Sq Feet (in thousands)/ # of units | Occupancy | |||||||||||||||||||||
Multifamily: | ||||||||||||||||||||||||||||
Kirkland Crossing | 1 | Aurora, IL | Dec, 2017 | 100 | % | $ | 54,218 | 246 | units | 95 | % | |||||||||||||||||
Tacara Steiner Ranch | 1 | Austin, TX | June, 2018 | 100 | % | 47,909 | 266 | units | 89 | % | ||||||||||||||||||
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Total Multifamily | 2 | $ | 102,127 | 512 | units | 92 | % | |||||||||||||||||||||
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Industrial: | ||||||||||||||||||||||||||||
West Phoenix Industrial | 1 | Phoenix, AZ | Dec, 2017 | 100 | % | $ | 16,785 | 265 | sq ft. | 100 | % | |||||||||||||||||
Denver Industrial | 3 | | Golden & Denver, CO | | Dec, 2017 | 100 | % | 51,135 | 486 | sq ft. | 96 | % | ||||||||||||||||
Henderson Interchange | 1 | Henderson, NV | Dec, 2018 | 100 | % | 25,074 | 197 | sq ft. | 100 | % | ||||||||||||||||||
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Total Industrial | 5 | $ | 92,994 | 948 | sq ft. | 98 | % | |||||||||||||||||||||
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Retail: | ||||||||||||||||||||||||||||
Main Street at Kingwood | 1 | Houston, TX | Oct, 2018 | 100 | % | $ | 85,696 | 199 | sq ft. | 98 | % | |||||||||||||||||
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Total Retail | 1 | $ | 85,696 | 199 | sq ft. | 98 | % | |||||||||||||||||||||
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Office: | ||||||||||||||||||||||||||||
Defoor Hills | 1 | Atlanta, GA | June, 2018 | 100 | % | $ | 33,808 | 91 | sq ft. | 100 | % | |||||||||||||||||
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Total Office | 1 | $ | 33,808 | 91 | sq ft. | 100 | % | |||||||||||||||||||||
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Total Investment Properties | 9 | $ | 314,626 | | ||||||||||||||||||||||||
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(*) Based upon the market value of the properties.
Kirkland Crossing
On December 8, 2017, we acquired the Kirkland Crossing Apartments (“Kirkland Crossing”), a multifamily property from an unaffiliated third party for approximately $54.1 million, exclusive of closing costs. Constructed in 2003, Kirkland Crossing consists of 266 units with a mix ofone-,two- and three-bedroom units, and is located in Aurora, Illinois, a suburb of Chicago. As of March 31, 2019,in-place rents at Kirkland Crossing were approximately $1,628 per unit. Consistent with most multifamily apartment properties, Kirkland Crossing has lease terms that are generally one year.
West Phoenix Industrial
On December 21, 2017, we acquired West Phoenix Industrial (“West Phoenix Industrial”) from an unaffiliated third party for a gross purchase price of approximately $16.9 million, exclusive of closing costs. Constructed in 1998, West Phoenix Industrial is an industrial warehouse/distribution building totaling 264,981 square feet, and is located in Phoenix’s Southwest submarket. As of March 31, 2019, West Phoenix Industrial was 100% leased to two tenants with a weighted average remaining lease term of 2.2 years at a weighted average rent of $3.94 per square foot per year.
Denver Industrial Portfolio
On December 28, 2017, we acquired a fee simple interest in an approximately 486,000 square foot three-property industrial portfolio located in the Central and West submarkets of Denver, Colorado (the “Denver Industrial Portfolio”). The portfolio was acquired from an unaffiliated third party for approximately $51.0 million, excluding closing costs. The Denver Industrial Portfolio is 96% leased to 20 tenants as of March 31, 2019. The portfolio is comprised of oneClass-A, 261,825 square foot bulk distribution warehouse (“16600 Table Mountain”) that is leased to two tenants, one 71,193 square foot urbansmall-bay warehouse that is leased to four tenants (“6400 Broadway”), and one 152,966 square foot urban infill property that is comprised of three buildings and leased to 14 tenants (“Bryant Street Quad”). The remaining weighted average lease term across the portfolio is 3.2 years.
Defoor Hills
On June 15, 2018, we acquired 2282 and 2300 Defoor Hills (“Defoor Hills”) from an unaffiliated third party for approximately $33.8 million, including purchase price credits and transaction costs. Built in 1970 and redeveloped in 2017, Defoor Hills is a 90,820 square foot adaptive reuse/creative office property located in the West Midtown submarket of Atlanta, Georgia. As of March 31, 2019, Defoor Hills was 100% leased to three tenants with a weighted average remaining lease term of 11 years at a weighted average rent of $21.52 per square foot per year.
Tacara at Steiner Ranch
On June 25, 2018, we acquired Tacara at Steiner Ranch (“Tacara”), a multifamily property located in Austin, Texas, from an unaffiliated third party for approximately $47.9 million, including transaction costs. Constructed in 2017, Tacara consists of 246 units with a mix ofone-,two- and three-bedroom units. As of March 31, 2019, weighted averagein-place rents at Tacara were approximately $1,425 per unit. Consistent with most multifamily apartment properties, Tacara has lease terms that are generally one year.
Main Street at Kingwood
On October 25, 2018, we acquired Main Street at Kingwood from an unaffiliated third party for approximately $86 million, inclusive of acquisition adjustments. Built in 2016, Main Street at Kingwood is a 185,751 square foot grocery-anchored retail shopping center. At the time of acquisition, Main Street at Kingwood was 98% leased to 36 tenants with a weighted average remaining lease term of 13.9 years at a weighted average rent of $23.52 per square foot per year.
Henderson Interchange
In December 2018, we acquired Henderson Interchange from an unaffiliated third party for approximately $25.1 million. Built in 2017, Henderson Interchange is a 197,210 square foot industrial property. As of March 31, 2019, Henderson Interchange was 100% leased to three tenants with a weighted average remaining lease term of
Sector and Property/Portfolio Name | Number of Properties | Location | Acquisition Date | Ownership Interest | Acquisition Price (in thousands) | Sq Feet (in thousands) / # of units | Occupancy | ||||||||||||||||||||||||||||||||||||||||
Multifamily: | |||||||||||||||||||||||||||||||||||||||||||||||
Kirkland Crossing | 1 | Aurora, IL | Dec, 2017 | 100% | $ | 54,218 | 266 | units | 93 | % | |||||||||||||||||||||||||||||||||||||
Tacara Steiner Ranch | 1 | Austin, TX | June, 2018 | 100% | 47,909 | 246 | units | 95 | % | ||||||||||||||||||||||||||||||||||||||
Total Multifamily | 2 | 102,127 | 512 | units | 94 | % | |||||||||||||||||||||||||||||||||||||||||
Industrial: | |||||||||||||||||||||||||||||||||||||||||||||||
West Phoenix Industrial | 1 | Phoenix, AZ | Dec, 2017 | 100% | 16,785 | 265 | sq ft. | 100 | % | ||||||||||||||||||||||||||||||||||||||
Denver Industrial | 3 | Golden & Denver, CO | Dec, 2017 | 100% | 51,135 | 486 | sq ft. | 100 | % | ||||||||||||||||||||||||||||||||||||||
Henderson Interchange | 1 | Henderson, NV | Dec, 2018 | 100% | 25,074 | 197 | sq ft. | 100 | % | ||||||||||||||||||||||||||||||||||||||
Globe Street Industrial | 1 | Moreno Valley, CA | Oct, 2019 | 100% | 19,445 | 252 | sq ft. | 100 | % | ||||||||||||||||||||||||||||||||||||||
Total Industrial | 6 | 112,439 | 1200 | sq ft. | 100 | % | |||||||||||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||||||||||||||
Main Street at Kingwood | 1 | Houston, TX | Oct, 2018 | 100% | 85,696 | 199 | sq ft. | 98 | % | ||||||||||||||||||||||||||||||||||||||
Total Retail | 1 | 85,696 | 199 | sq ft. | 98 | % | |||||||||||||||||||||||||||||||||||||||||
Office: | |||||||||||||||||||||||||||||||||||||||||||||||
Defoor Hills | 1 | Atlanta, GA | June, 2018 | 100% | 33,808 | 91 | sq ft. | 100 | % | ||||||||||||||||||||||||||||||||||||||
East Sego Lily | 1 | Salt Lake City, UT | May, 2019 | 100% | 44,422 | 149 | sq ft. | 100 | % | ||||||||||||||||||||||||||||||||||||||
Total Office | 2 | 78,230 | 240 | sq ft. | 100 | % | |||||||||||||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||||||||||||||
9725 Datapoint | 1 | San Antonio, TX | Dec, 2019 | 100% | 36,526 | 205 | sq ft. | 100 | % | ||||||||||||||||||||||||||||||||||||||
Total Other | 1 | 36,526 | 205 | sq ft. | 100 | % | |||||||||||||||||||||||||||||||||||||||||
Total Investment Properties | 12 | $ | 415,018 |
approximately 7 years. Henderson Interchange is located within the key industrial market in the Henderson submarket in southwest Las Vegas, Nevada.
The following schedule details the expiring leases at our industrial, retail, office and officeother properties by annualized base rent and square footage as of March 31, 20192020 ($ and square feet data in thousands). The table below excludes our multifamily properties as substantially all leases at such properties expire within 12 months.
Year | Number of Expiring Leases | Annualized Base Rent(1) | % of Total Annualized Base Rent Expiring | Square Feet | % of Total Square Feet Expiring | |||||||||||||||
Remaining 2019 | 2 | 528 | 5 | % | 89 | 7 | % | |||||||||||||
2020 | 3 | 998 | 9 | % | 232 | 19 | % | |||||||||||||
2021 | 7 | 597 | 5 | % | 110 | 9 | % | |||||||||||||
2022 | 15 | 2,052 | 18 | % | 270 | 22 | % | |||||||||||||
2023 | 6 | 641 | 5 | % | 56 | 5 | % | |||||||||||||
2024 | 3 | 417 | 4 | % | 40 | 3 | % | |||||||||||||
2025 | 3 | 262 | 2 | % | 17 | 1 | % | |||||||||||||
2026 | 2 | 146 | 1 | % | 105 | 9 | % | |||||||||||||
2027 | 11 | 1,271 | 11 | % | 32 | 3 | % | |||||||||||||
2028 | 5 | 810 | 7 | % | 64 | 5 | % | |||||||||||||
Thereafter | 8 | 3,942 | 34 | % | 199 | 16 | % | |||||||||||||
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Total | 65 | 11,666 | 100 | % | 1,214 | 100 | % | |||||||||||||
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Year | Number of Expiring Leases | Annualized Base Rent(1) | % of Total Annualized Base Rent Expiring | Square Feet | % of Total Square Feet Expiring | |||||||||||||||||||||||||||
2020 (Remaining) | 2 | 944 | 5 | % | 220 | 12 | % | |||||||||||||||||||||||||
2021 | 8 | 747 | 4 | % | 114 | 6 | % | |||||||||||||||||||||||||
2022 | 15 | 2,103 | 11 | % | 275 | 15 | % | |||||||||||||||||||||||||
2023 | 6 | 652 | 3 | % | 56 | 3 | % | |||||||||||||||||||||||||
2024 | 9 | 1,868 | 10 | % | 170 | 9 | % | |||||||||||||||||||||||||
2025 | 11 | 3,052 | 16 | % | 342 | 19 | % | |||||||||||||||||||||||||
2026 | 2 | 819 | 4 | % | 105 | 6 | % | |||||||||||||||||||||||||
2027 | 11 | 2,969 | 15 | % | 90 | 5 | % | |||||||||||||||||||||||||
2028 | 5 | 825 | 4 | % | 64 | 3 | % | |||||||||||||||||||||||||
Thereafter | 12 | 5,571 | 28 | % | 406 | 22 | % | |||||||||||||||||||||||||
Total | 81 | $ | 19,550 | 100 | % | 1,842 | 100 | % |
The Company has elected the fair market value option for accounting for
During the three months ended March 31, 2019, we acquired $2.9 millionincluding shares of common stock of publicly-traded REITs. The fair value of our real estate-related investments was approximately $34.0 million asestate investment trusts. As of March 31, 2019.
Investment2020, we have 87 holdings and have invested $34.4 million in securities that are valued at $30.0 million on the balance sheet. The losses can be attributed to the adverse market conditions related to the COVID-19 pandemic.
We report our
This includes our allocable share of2020, the International Affiliated Funds income and expense, realized gains and losses and unrealized appreciation or depreciation as determined from the financial statements of ECF and APCF (which carry investments at fair value in accordance with the applicable GAAP) when received by us. All contributions to or distributions from the investment in the International Affiliated Funds is accrued when notice is received and recorded as a receivable from or payable to the International Affiliated Funds on the Consolidated Balance Sheets.
For the three months ended March 31, 2020 and March 31, 2019, the Company recorded approximately $163,000 inthe following components of net income and unrealized loss based on its allocable share from ECF ($ in thousands):
Three Months Ended March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating income | $ | 428 | $ | 185 | |||||||||||||
Unrealized gains (losses) | 738 | (22) | |||||||||||||||
Net income | $ | 1,166 | $ | 163 |
March 31, 2020, the Company has funded $16.4 million of its total $30.0 million commitment.
Three Months Ended March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Operating income (loss) | $ | 249 | $ | (25) | |||||||||||||
Unrealized gains (losses) | 275 | (302) | |||||||||||||||
Net income (loss) | $ | 524 | $ | (327) |
Investment Name | Asset Type | Location | Interest Rate | Origination Date | Maturity Date | Periodic Payment Terms | Commitment Amount | Unfunded Amount | Principal Receivable | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
55 Grand Ave | Mezzanine Loan | Masbeth, NY | Libor + 570 bps | March 28, 2019 | March 29, 2022 | Interest Only | $14,375 | $1,213 | $13,162 | $12,831 |
performance
.purposes, to assist us in qualifying and maintaining our qualification as a REIT. In order for us to qualify as a REIT under the Internal Revenue Code (the “Code”), we are required to, among other things, distribute as dividends at least 90% of our REIT taxable income, determined without regard to the dividends-paid deduction and excluding net capital gains, to our stockholders and meet certain tests regarding the nature of our income and assets. In order to satisfy a requirement that no five or fewer individuals own (or be treated as owning) more than 50% of our stock, subject to certain exceptions, no person or entity may own, or be deemed to own, by virtue of the applicable constructive ownership provisions of the Code, more than 9.8% (in value or number of shares, whichever is more restrictive) of the aggregate of our outstanding shares of stock or more than 9.8% (in value or number of shares, whichever is more restrictive) of our outstanding common stock.
Federal legislation intended to ameliorate the economic impact of the
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 vs 2019 | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||
Rental revenue | $ | 9,458 | $ | 6,745 | $ | 2,713 | |||||||||||||||||||||||||||||||||||
Income from commercial mortgage loan | 245 | 21 | 224 | ||||||||||||||||||||||||||||||||||||||
Total revenues | 9,703 | 6,766 | 2,937 | ||||||||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||
Rental property operating | 2,962 | 2,286 | 676 | ||||||||||||||||||||||||||||||||||||||
General and administrative | 1,034 | 958 | 76 | ||||||||||||||||||||||||||||||||||||||
Advisory fee due to affiliate | 727 | 467 | 260 | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,144 | 3,387 | 757 | ||||||||||||||||||||||||||||||||||||||
Total Expenses | 8,867 | 7,098 | 1,769 | ||||||||||||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||||||||
Realized and unrealized (loss) income from real estate-related securities | (7,667) | 4,986 | (12,653) | ||||||||||||||||||||||||||||||||||||||
Income (loss) from equity investment in unconsolidated international affiliated funds | 1,690 | (165) | 1,881 | ||||||||||||||||||||||||||||||||||||||
Unrealized loss on commercial mortgage loan | (331) | — | (331) | ||||||||||||||||||||||||||||||||||||||
Interest income | 35 | 11 | (2) | ||||||||||||||||||||||||||||||||||||||
Interest expense | (1,189) | (752) | (437) | ||||||||||||||||||||||||||||||||||||||
Net (loss) income | (6,626) | 3,748 | 10,374 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Series A preferred stock | 4 | 4 | — | ||||||||||||||||||||||||||||||||||||||
Net (loss) income attributable to common stockholders | $ | (6,630) | $ | (3,740) | $ | 10,374 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Revenues | ||||||||
Rental revenue | $ | 6,745 | $ | 2,822 | ||||
Interest income from commercial mortgage loan | 21 | — | ||||||
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Total Revenues | 6,766 | 2,822 | ||||||
Expenses | ||||||||
Rental property operating expenses | 2,286 | 966 | ||||||
General and administrative expenses | 958 | 1,691 | ||||||
Advisory fee due to affiliate | 467 | 295 | ||||||
Depreciation and amortization | 3,387 | 1,773 | ||||||
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Total Expenses | 7,098 | 4,725 | ||||||
Other Income | ||||||||
Realized and unrealized income from real estate-related securities | 4,986 | 388 | ||||||
Income (loss) from equity investment in unconsolidated international affiliated funds | (165 | ) | — | |||||
Interest income | 11 | — | ||||||
Interest expense | (752 | ) | — | |||||
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Net income | 3,748 | (1,515 | ) | |||||
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Net income attributable to non-controlling interests | 4 | — | ||||||
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Net income attributable to NREIT stockholders | $ | 3,744 | $ | (1,515 | ) | |||
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Amortization
related indebtedness along with a mortgage payable on our retail property.
one retail property.
revenue and expenses items such as (a) general and administrative expenses, (b) management fee, (c) performance participation allocation, (d) interest income, and (e)(d) income from Real Estate-Related Securities.
real estate-related securities.
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Net income (loss) attributable to NREIT stockholders | $ | 3,744 | $ | (1,515) | ||||
Adjustments to reconcile to same property NOI | ||||||||
General and administrative | 958 | 1,691 | ||||||
Advisory fee due to affiliate | 467 | 295 | ||||||
Depreciation and amortization | 3,387 | 1,773 | ||||||
Income from investment in International Affiliated Funds | (159 | ) | ||||||
Income from real-estate related securities | (4,986 | ) | (388 | ) | ||||
Interest income from Commercial Mortgage Loan | (21 | ) | — | |||||
Unrealized (loss) from investment in international affiliated funds | 324 | — | ||||||
Interest income | (11 | ) | — | |||||
Interest expense | 752 | — | ||||||
Series A Preferred Stock | 4 | — | ||||||
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NOI | $ | 4,459 | $ | 1,856 | ||||
Non-same property NOI | 2,741 | 14 | ||||||
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Same property NOI | $ | 1,718 | $ | 1,842 | ||||
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Three Months Ended March 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Net (loss) income attributable to common stockholders | $ | (6,630) | $ | 3,744 | |||||||||||||||||||||||||
Adjustments to reconcile to same property NOI | |||||||||||||||||||||||||||||
General and administrative | 1,034 | 958 | |||||||||||||||||||||||||||
Advisory fee due to affiliate | 727 | 467 | |||||||||||||||||||||||||||
Depreciation and amortization | 4,144 | 3,387 | |||||||||||||||||||||||||||
Income (loss) from real estate-related securities | 7,667 | (4,986) | |||||||||||||||||||||||||||
Income from commercial mortgage loan | (245) | (21) | |||||||||||||||||||||||||||
(Income) loss from equity investment in unconsolidated international affiliated funds | (1,690) | 165 | |||||||||||||||||||||||||||
Interest income | (35) | (11) | |||||||||||||||||||||||||||
Interest expense | 1,189 | 752 | |||||||||||||||||||||||||||
Series A preferred stock | 4 | 4 | |||||||||||||||||||||||||||
NOI | 6,165 | 4,459 | |||||||||||||||||||||||||||
Non-same property NOI | 1,692 | — | |||||||||||||||||||||||||||
Same property NOI | $ | 4,473 | $ | 4,459 |
Same Property NOI | Three months Ended March 31, | 2019 vs. 2018 | ||||||||||
2019 | 2018 | |||||||||||
Rental revenue | $ | 2,774 | $ | 2,806 | $ | (32 | ) | |||||
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Total revenues | 2,774 | 2,806 | (32 | ) | ||||||||
Property operating | 1,056 | 964 | 92 | |||||||||
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Total expenses | 1,056 | 964 | 92 | |||||||||
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Same property NOI | $ | 1,718 | $ | 1,842 | ($ | 124 | ) | |||||
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Same Property—Revenue
Rental Revenue—Our rental revenue includes contracted rental income from our tenants based on the leases and tenant reimbursement income for costs related to common area maintenance, real estate taxes and other recoverable costs. We include tenant reimbursement income in our rental revenue that amounted to $0.5 million for the three months ended March 31, 2019 and March 31, 2018.
Same Property—Expenses
Rental property operating expenses—Property operating expenses for the three months ended March 31, 2019 and March 31, 2018 primarily includes real estate taxes, utilities and other maintenance expenses associated with our real properties.
General and administrative expenses—General and administrative expenses for the three months ended March 31, 2019 and March 31, 2018 primarily includes audit and other professional fees.
Advisory fee due to affiliate—The advisory fee for the three months ended March 31, 2019 and March 31, 2018 related to amounts owed to the Advisor.
Depreciation and amortization—Depreciation and amortization for the three months ended March 31, 2019 and March 31, 2018 relates to property, furniture and fixtures, equipment and intangible assets in connection with our real properties.
Net income (loss)—Our net income (loss) for the three ended March 31, 2019 and March 31, 2018 amounted to $1.7 million and $1.8 million, respectively.
March 31 2020 vs 2019 2020 2019 $ % Rental revenue $ 6,719 $ 6,741 $ (22) 1 % Total revenues 6,719 6,741 (22) 1 % Rental property operating 2,246 2,282 (36) (1) % Total expenses 2,246 2,282 (36) (1) % Same property NOI $ 4,473 $ 4,459 $ 14 — %
properties. The stockholder servicing fees we pay to the Dealer Manager are accrued up to a maximum amount of 8.75% of the sum of the gross proceeds at the time of the sale of common shares. We do not have any office or personnel expenses as we do not have any employees. We may reimburse the Advisor for certainout-of-pocket expenses in connection with our operations.operations and we did not have any cost to reimburse for three months ended March 31, 2020. The Advisor has agreed to advance all of our organization and offering expenses on our behalf (other than upfront selling commissions, dealer manager fees and stockholder servicing fees) through the first anniversary of our first acquisition.the commencement of the Offering. These expenses include legal, accounting, printing, mailing and filing fees and expenses, due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design and website expenses, fees and expenses of our transfer agent, fees to attend retail seminars sponsored by participating broker-dealers and reimbursements for customary travel, lodging, and meals, but exclude selling commissions, dealer manager fees and stockholder servicing fees. We will reimburse the Advisor for all such advanced expenses ratably overit incurred in 60 equal monthly installments commencing on the 60 months followingearlier of the first anniversary of our first investment acquisition.date the Company's NAV reaches $1.0 billion or January 31, 2023. For purposes of calculating our NAV, the organization and offering expenses paid by the Advisor through the first anniversary of our first investment acquisition are not recognized as expenses or as a component of equity and will not be reflected in our NAV until we reimburse the Advisor for these costs.
rate of 3.15% per annum.
Three Months Ended March 31, 2019 | ||||
Cash flows provided by operating activities | $ | 1,485 | ||
Cash flows used in investing activities | (44,199 | ) | ||
Cash flows provided by financing activities | 46,062 | |||
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Net increase in cash and cash equivalents and restricted cash | $ | 3,348 | ||
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Operating activities—
Three Months Ended March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash flows provided by operating activities | $ | 4,022 | $ | 2,581 | |||||||||||||
Cash flows used in investing activities | (10,446) | (45,295) | |||||||||||||||
Cash flows provided by financing activities | 3,578 | 46,062 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (2,846) | $ | 3,348 |
Investing activities—corresponding period in the 2019 due to increased cash flows from the operations of our investments in real estate as a result of growth in the size of our portfolio and positive leasing activity.
Financing activities—
Non-GAAP Metrics
Funds from Operations and Adjusted Funds from Operations
The following table presents a reconciliation of FFO to net loss ($ in thousands):
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Net income (loss) | $ | 3,748 | $ | (1,515 | ) | |||
Adjustments: | ||||||||
Real estate depreciation and amortization | 3,387 | 1,773 | ||||||
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Funds From Operations | $ | 7,135 | $ | 258 | ||||
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Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | |||||||
Funds From Operations | $ | 7,135 | $ | 258 | ||||
Adjustments: | ||||||||
Straight-line rental income | (410 | ) | (45 | ) | ||||
Amortization of below market lease intangibles | (87 | ) | (16 | ) | ||||
Organization costs | — | 873 | ||||||
Unrealized (gain) from changes in fair value of real estate-related securities | (4,769 | ) | (274 | ) | ||||
Loss from equity investment in unconsolidated international affiliated funds | 324 | |||||||
Amortization of restricted stock awards | 11 | 11 | ||||||
Unamortized origination fee related to commercial mortgage loan | 430 | — | ||||||
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Adjusted Funds from Operations attributable to stockholders | $ | 2,634 | $ | 807 | ||||
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Three Months Ended March 31, 2020 2019 Net (loss) income $ (6,626) $ 3,748 Adjustments: Real estate depreciation and amortization 4,270 3,387 Funds from Operations (2,356) 7,135 Adjustments: — — Straight-line rental income (665) (410) Amortization of above and below market lease intangibles (180) (87) Unrealized loss (gain) from changes in fair value of real estate related securities 6,498 (4,769) Unrealized loss on commercial mortgage loan 331 — Amortization of restricted stock awards 11 11 Unrealized (income) loss from investment in international affiliated funds (1,408) 324 Unamortized origination fee related to commercial mortgage loan — 430 Adjusted Funds from Operations attributable to stockholders $ 2,231 $ 2,634
For the Three Months | ||||||||
Ended March 31, 2019 | ||||||||
Amount | Percentage | |||||||
Distributions | ||||||||
Payable in cash | $ | 2,474 | 99.60 | % | ||||
Reinvested in shares | 10 | 0.40 | % | |||||
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Total distributions | $ | 2,484 | 100.00 | % | ||||
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Sources of Distributions | ||||||||
Cash flows from operating activities | $ | 2,484 | 100.00 | % | ||||
Offering proceeds | — | — | % | |||||
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Total sources of distributions | $ | 2,484 | 100.00 | % | ||||
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Cash flows from operating activities | $ | 1,485 | ||||||
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Funds from Operations | $ | 7,131 | ||||||
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For the Three Months Ended March 31, 2020 | For the Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||||||||||||||||||||
Distributions | |||||||||||||||||||||||||||||||||||
Paid in cash | $ | 8,419 | 96.61 | % | $ | 2,474 | 99.60 | % | |||||||||||||||||||||||||||
Reinvested in shares | 295 | 3.39 | % | 10 | 0.40 | % | |||||||||||||||||||||||||||||
Total distributions | $ | 8,714 | 100.00 | % | $ | 2,484 | 100.00 | % | |||||||||||||||||||||||||||
Sources of distributions | |||||||||||||||||||||||||||||||||||
Cash flows from operating activities | $ | 4,022 | 47.77 | % | $ | 2,474 | 100.00 | % | |||||||||||||||||||||||||||
Debt proceeds | 4,397 | 52.23 | % | — | 0.00 | % | |||||||||||||||||||||||||||||
Total sources of distributions | $ | 8,419 | 100.00 | % | $ | 2,474 | 100.00 | % | |||||||||||||||||||||||||||
Cash flows from operating activities | $ | 4,022 | $ | 2,581 | |||||||||||||||||||||||||||||||
Components of NAV | March 31, 2019 | |||
Investments in real property | $ | 326,042 | ||
Investments in real estate-related securities | 33,952 | |||
Investment in international affiliated funds | 28,004 | |||
Investment in mortgage loan | 45,564 | |||
Cash and cash equivalents | 5,485 | |||
Restricted cash | 3,562 | |||
Other assets | 1,787 | |||
Debt obligations | (115,000 | ) | ||
Subscriptions received in advance | (2,467 | ) | ||
Other liabilities | (8,766 | ) | ||
Stockholder servicing fees payable the following month(1) | — | |||
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Net Asset Value | $ | 318,163 | ||
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Number of Outstanding Shares | 30,037 | |||
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Components of NAV | March 31, 2020 | |||||||
Investments in real property | $ | 445,032 | ||||||
Investments in international affiliated funds | 45,047 | |||||||
Investments in real estate-related securities | 30,047 | |||||||
Investments in commercial mortgage loan | 12,831 | |||||||
Cash and cash equivalents | 10,044 | |||||||
Restricted cash | 2,781 | |||||||
Other assets | 2,829 | |||||||
Debt obligations | (132,277) | |||||||
Other liabilities | (8,433) | |||||||
Subscriptions received in advance | (2,781) | |||||||
Stockholder servicing fees | (30) | |||||||
Net Asset Value | $ | 405,090 | ||||||
Net Assets Value attributable to | $ | 129 | ||||||
Net Asset Value attributable to common stockholders | $ | 404,961 | ||||||
Number of | 37,662 |
NAV Per Share | Class N Shares | Class I Shares | Class D Shares | Class T Shares | Total | |||||||||||||||
Net asset value | $ | 314,939 | $ | 2,188 | $ | 515 | $ | 521 | $ | 318,163 | ||||||||||
Number of outstanding shares | 29,730 | 208 | 49 | 50 | 30,037 | |||||||||||||||
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NAV per share as of March 31, 2019 | $ | 10.59 | $ | 10.52 | �� | $ | 10.50 | $ | 10.42 |
As
NAV Per Share | Class T Shares | Class S Shares | Class D Shares | Class I Shares | Class N Shares | Total | ||||||||||||||||||||||||||||||||
Net asset value | $ | 24,833 | $ | 13,202 | $ | 11,849 | $ | 34,067 | $ | 321,010 | $ | 404,961 | ||||||||||||||||||||||||||
Number of outstanding shares | 2,358 | 1,256 | 1,116 | 3,201 | 29,731 | 37,662 | ||||||||||||||||||||||||||||||||
NAV per shares as of March 31, 2020 | $ | 10.53 | $ | 10.51 | $ | 10.62 | $ | 10.64 | $ | 10.80 |
Property Type | Discount Rate | Exit Capitalization Rate | ||
Industrial | 7.04% | 6.20% | ||
Multifamily | 7.00% | 5.40% |
types.
Property Type | Discount Rate | Exit Capitalization Rate | ||||||||||||
Industrial | 6.81% | 6.01% | ||||||||||||
Multifamily | 6.88 | 5.40 | ||||||||||||
Office | 7.17 | 6.42 |
Input | Hypothetical Change | Industrial Investment Values | Multifamily Investment Values | |||||
Discount rate | 0.25% decrease | +1.8% | +2.0% | |||||
(weighted average) | 0.25% increase | (2.0%) | (1.8%) | |||||
Exit capitalization rate | 0.25% decrease | +2.5% | +3.1% | |||||
(weighted average) | 0.25% increase | (2.5%) | (2.7%) |
Input | Hypothetical Change | Industrial Investment Values | Multifamily Investment Values | Office Investment Values | ||||||||||||||||||||||
Discount Rate | 0.25% decrease | +3.0% | +1.8% | +2.1% | ||||||||||||||||||||||
(weighted average) | 0.25% increase | (1.0)% | (2.0)% | (1.5)% | ||||||||||||||||||||||
Exit Capitalization Rate | 0.25% decrease | +3.8% | +2.9% | +2.7% | ||||||||||||||||||||||
(weighted average) | 0.25% increase | (1.5)% | (2.9)% | 2.0% |
Reconciliation of Stockholders’ Equity to NAV | March 31, 2019 | |||
Stockholders’ equity under GAAP | $ | 290,487 | ||
Adjustments: | ||||
Organization and offering costs(1) | 4,414 | |||
Accrued stockholder servicing fees(2) | 74 | |||
Unrealized real estate appreciation(3) | 11,043 | |||
Accumulated depreciation and amortization(4) | 13,244 | |||
Origination fee income(5) | 430 | |||
Straight-line rent receivable | (1,529 | ) | ||
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Net Asset Value | $ | 318,163 | ||
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March 31, 2020 | ||||||||
Reconciliation of Stockholders’ Equity to | ||||||||
Stockholders’ equity under US GAAP | $ | 343,905 | ||||||
Adjustments: | ||||||||
Organization and offering costs | 4,648 |
Accrued stockholder servicing | 3,247 |
Unrealized real estate | 27,718 |
Unrealized mortgage payable appreciation(4) |
| 1,000 | ||||||
Accumulated depreciation and amortization | 27,572 | |||||||
Straight-line rent receivable | (3,000) | |||||||
Net Asset Value | $ | 405,090 | ||||||
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Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Organization and offering expenses | $ | 4,648 | $ | 1,162 | $ | 1,859 | $ | 1,627 | $ | — | ||||||||||
Indebtedness | 115,000 | — | 115,000 | — | — | |||||||||||||||
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Total | $ | 119,648 | $ | 1,162 | $ | 116,859 | $ | 1,627 | $ | — | ||||||||||
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Obligations | Total | Less than 1 year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||||||||||||||
Indebtedness | $ | 133,277 | $ | — | $ | 85,277 | $ | — | $ | 48,000 | ||||||||||||||||||||||
APCF unfunded commitment | 13,623 | 13,623 | — | — | — | |||||||||||||||||||||||||||
Organization and offering costs | 4,648 | — | — | 1,472 | 3,176 | |||||||||||||||||||||||||||
Interest expense(1) | 13,703 | 2,871 | 6,422 | 3,024 | 1,386 | |||||||||||||||||||||||||||
Total | $ | 165,251 | $ | 16,494 | $ | 91,699 | $ | 4,496 | $ | 52,562 |
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As of March 31, 2019 our investments in real estate-related securities consisted of $34.0 million in shares of common stock of publicly-traded REITs.
As of March 31, 2019, our investment in the International Affiliated Fundsvariable rate indebtedness was $85.3 million and consisted of $18.4 million in shares of European Cities Partnership SCSp, a Euro-denominated fund. We may be exposedour Credit Facility, which is indexed to foreign currency risk with respect to our investment in the International Affiliated Fund due to changes in the foreign currency exchange rates. Foreign currencies may fluctuate, thus the amount we will realize upon any sale of our investmentone month U.S. Dollar-denominated LIBOR.
Certain of our mortgage loans, term loans, revolving credit facilities, affiliate line of credit and repurchase agreements are variable rate and indexed to one-month U.S. Dollar denominated LIBOR. For the three months ended March 31, 2019,2020, a 10% increase in one-month U.S. DollarU.S denominated LIBOR would have resulted in increased interest expense of $0.1 million.
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SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
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There
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Offering proceeds: Shares sold Gross offering proceeds Selling commissions and other dealer manager fees Accrued stockholder servicing fees Net offering proceeds As compensation for their service, our independent directors received 6,560 Class I shares and Use of restricted stock at $10.29 per share on February 1, 2019 pursuant to our Independent Director Restricted Share Plan. These transactions claimed to be exempt from the registration provisionsProceeds.theEquity Securities Act of 1933, as amended, by virtue of Section 4(a)(2) thereof, as these transactions did not involve any public offering.2019,2020, we received netgross proceeds of $3.1$385.1 million from the Offering. The following table summarizes certain information about the Offering proceeds therefrom ($ in thousands except for share data): Class S Shares Class T Shares Class D Shares Class I Shares Total — 49,624 48,606 207,822 306,052 $ — $ 511,344 $ 498,785 $ 2,125,294 $ 3,135,423 — — — — — — — (74 ) — (74 ) $ — $ 511,344 $ 498,711 $ 2,125,294 $ 3,135,349 Class T
SharesClass S
SharesClass D
SharesClass I
SharesClass N
SharesTotal Offering proceeds: Shares sold 2,358,700 1,255,756 1,115,645 3,201,009 29,730,608 37,661,718 Gross offering proceeds $ 300,499 $ 12,072 $ 34,081 $ 25,012 $ 13,390 $ 385,054 Selling commissions and other dealer manager fees (499) (164) — — — $ (663) Accrued stockholder servicing fees (1,488) (797) (1,062) — — $ (3,347) Net offering proceeds $ 298,512 $ 11,111 $ 33,019 $ 25,012 $ 13,390 $ 381,044 Offering andunregistered sales along with the unregistered salesOffering toward the acquisition of $315$411 million of real estate, investments in International Affiliated Fundsinternational affiliated funds of $28$45 million, investment in a commercial mortgage loan of $46$13 million and $30$34 million in real estate-related securities. In addition to the net proceeds from the Offering, we financed our investments with $115$85 million of financing from the credit facility.facility and $48 million from mortgage payable. In addition, we may from time to time use proceeds from the Offering to pay down our credit facility if there are no acquisitions at the time proceeds are received. See Item 2—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” for additional details on our borrowings.
limitations in the share repurchase plan. The total amount of aggregate repurchases of Class T, Class S, Class D, and Class I shares will be limited to 2% of the aggregate NAV per month and and 5% of the aggregate NAV per calendar quarter. Shares would be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any early repurchase deduction. Shares that have not been outstanding for at least one year would be repurchased at 95% of the transaction price. Due to the illiquid nature of investments in real estate, we may not have sufficient liquid resources to fund repurchase requests and has established limitations on the amount of funds we may use for repurchases during any calendar month and quarter. Further, we may modify, suspend or terminate the share repurchase plan. During
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Exhibit No. | Description | |||||
3.1 |
| Articles of Amendment and Restatement (filed as Exhibit 3.1 to the Registrant’s Registration Statement on Form S-11/A filed on January 24, 2018 and incorporated herein by reference). | ||||
3.2 | Articles Supplementary (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on January 8, 2019 and incorporated herein by reference). | |||||
3.3 | Bylaws (filed as Exhibit 3.2 to the Registrant’s Registration Statement on Form S-11 filed on December 21, 2017 and incorporated herein by reference). | |||||
10.1 | Amendment No. 1 to First Amended and Restated Advisory Agreement dated October 14, 2019 by and between Nuveen Global Cities REIT, Inc., Nuveen Global Cities REIT OP, LP and Nuveen Real Estate Global Cities Advisors, LLC (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on October 17, 2019 and incorporated herein by reference). | |||||
10.2 | Selected Dealer Agreement dated July 9, 2019 by and among Nuveen Global Cities REIT, Inc., Nuveen Securities, LLC and Ameriprise Financial Services, Inc. (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on July 10, 2019 and incorporated herein by reference). | |||||
10.3 | Cost Reimbursement Agreement dated July 9, 2019 by and among Nuveen Global Cities REIT, Inc., Nuveen Securities, LLC and American Enterprise Investment Services Inc. (filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on July 10, 2019 and incorporated herein by reference). | |||||
31.1* | ||||||
31.2* | ||||||
32.1* | ||||||
101.INS | XBRL Instance Document | |||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
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Nuveen Global Cities REIT, Inc. | |||||||||||
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By: | /s/ Michael J.L. Sales | ||||||||||
Michael J.L. Sales | |||||||||||
Chief Executive Officer and Chairman of the Board |
By: | /s/ James E. Sinople | |||||||
James E. Sinople | ||||||||
Chief Financial Officer and Treasurer |
Date:
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