Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Black Creek Diversified Property Fund Inc. | |
Entity Central Index Key | 0001327978 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Class T | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,493,373 | |
Class S | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,874,214 | |
Class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,019,769 | |
Class I | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 44,622,052 | |
Class E | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 61,235,175 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Net investment in real estate properties | $ 1,777,347 | $ 1,612,632 |
Debt-related investments, net | 49,007 | 2,575 |
Cash and cash equivalents | 16,124 | 97,772 |
Restricted cash | 10,316 | 10,010 |
DST Program Loans | 42,104 | 19,404 |
Other assets | 41,848 | 35,872 |
Total assets | 1,936,746 | 1,778,265 |
Liabilities | ||
Accounts payable and accrued expenses | 46,341 | 35,226 |
Debt, net | 855,784 | 846,567 |
Intangible lease liabilities, net | 42,573 | 43,503 |
Financing obligations, net | 446,048 | 258,814 |
Other liabilities | 61,287 | 43,867 |
Total liabilities | 1,452,033 | 1,227,977 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interest | 3,791 | |
Stockholders' equity: | ||
Preferred stock, $0.01 par value-200,000 shares authorized, none issued and outstanding | ||
Additional paid-in capital | 1,261,886 | 1,257,147 |
Distributions in excess of earnings | (833,598) | (775,259) |
Accumulated other comprehensive loss | (30,227) | (14,662) |
Total stockholders' equity | 399,478 | 468,631 |
Noncontrolling interests | 81,444 | 81,657 |
Total equity | 480,922 | 550,288 |
Total liabilities and equity | 1,936,746 | 1,778,265 |
Class E | ||
Stockholders' equity: | ||
Common stock | 621 | 668 |
Class T | ||
Stockholders' equity: | ||
Common stock | 91 | 59 |
Class S | ||
Stockholders' equity: | ||
Common stock | 222 | 206 |
Class D | ||
Stockholders' equity: | ||
Common stock | 39 | 35 |
Class I | ||
Stockholders' equity: | ||
Common stock | $ 444 | $ 437 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class E | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, shares issued (in shares) | 62,080 | 66,804 |
Common stock, shares outstanding (in shares) | 62,080 | 66,804 |
Class T | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, shares issued (in shares) | 9,141 | 5,852 |
Common stock, shares outstanding (in shares) | 9,141 | 5,852 |
Class S | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, shares issued (in shares) | 22,238 | 20,593 |
Common stock, shares outstanding (in shares) | 22,238 | 20,593 |
Class D | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, shares issued (in shares) | 3,919 | 3,499 |
Common stock, shares outstanding (in shares) | 3,919 | 3,499 |
Class I | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000 | 500,000 |
Common stock, shares issued (in shares) | 44,430 | 43,732 |
Common stock, shares outstanding (in shares) | 44,430 | 43,732 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Rental revenues | $ 44,129 | $ 44,195 | $ 132,995 | $ 139,651 |
Debt-related income | 981 | 35 | 1,181 | 193 |
Total revenues | 45,110 | 44,230 | 134,176 | 139,844 |
Operating expenses: | ||||
Rental expenses | 15,881 | 15,360 | 45,792 | 45,645 |
Real estate-related depreciation and amortization | 15,649 | 14,473 | 44,558 | 43,461 |
General and administrative expenses | 2,217 | 2,181 | 6,611 | 6,325 |
Advisory fees, related party | 5,543 | 3,523 | 16,009 | 9,887 |
Litigation expense | 2,500 | 0 | 2,500 | 0 |
Impairment of real estate property | 113 | 113 | ||
Total operating expenses | 41,790 | 35,650 | 115,470 | 105,431 |
Other expenses (income): | ||||
Interest expense | 15,290 | 11,764 | 42,930 | 37,074 |
Gain on sale of real estate property | (10,890) | (2,192) | (96,530) | |
Gain on extinguishment of debt and financing commitments, net | 0 | (1,002) | ||
Other income | (262) | (131) | (619) | (156) |
Total other expenses (income) | 15,028 | 743 | 40,119 | (60,614) |
Net (loss) income | (11,708) | 7,837 | (21,413) | 95,027 |
Net loss attributable to redeemable noncontrolling interests | 39 | 0 | 71 | 0 |
Net loss (income) attributable to noncontrolling interests | 839 | (546) | 1,515 | (6,735) |
Net (loss) income attributable to common stockholders | $ (10,830) | $ 7,291 | $ (19,827) | $ 88,292 |
Weighted average number of common shares outstanding | ||||
Weighted-average shares outstanding-basic (in shares) | 141,682 | 138,063 | 142,216 | 135,877 |
Weighted-average shares outstanding-diluted (in shares) | 153,166 | 148,423 | 153,665 | 146,299 |
Net (loss) income attributable to common stockholders per common share-basic and diluted (usd per share) | $ (0.08) | $ 0.05 | $ (0.14) | $ 0.65 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (11,708) | $ 7,837 | $ (21,413) | $ 95,027 |
Net unrealized loss from available-for-sale securities | (100) | (100) | ||
Change from cash flow hedging derivatives | 2,278 | (3,900) | (16,874) | (19,388) |
Comprehensive (loss) income | (9,430) | 3,837 | (38,287) | 75,539 |
Comprehensive loss attributable to redeemable noncontrolling interests | 31 | 0 | 126 | 0 |
Comprehensive loss (income) attributable to noncontrolling interests | 678 | (222) | 2,769 | (5,294) |
Comprehensive (loss) income attributable to common stockholders | $ (8,721) | $ 3,615 | $ (35,392) | $ 70,245 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total |
Beginning Balances (in shares) at Dec. 31, 2018 | 130,852 | |||||
Beginning Balances at Dec. 31, 2018 | $ 1,309 | $ 1,199,736 | $ (867,849) | $ 522 | $ 77,295 | $ 411,013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income loss (excluding portion attributable to redeemable noncontrolling interest) | 88,292 | 6,735 | 95,027 | |||
Net unrealized loss from available-for-sale securities | (100) | (100) | ||||
Unrealized loss from derivative instruments | (17,947) | (1,441) | (19,388) | |||
Issuance of common stock, net of offering costs (in shares) | 18,920 | |||||
Issuance of common stock, net of offering costs | $ 189 | 128,810 | 128,999 | |||
Share-based compensation, net of forfeitures | $ 1 | 636 | $ 637 | |||
Share-based compensation, net of forfeitures (in shares) | 86 | |||||
Redemptions of common stock (in shares) | (11,263) | (11,263) | ||||
Redemptions of common stock | $ (113) | (82,653) | $ (82,766) | |||
Amortization of share-based compensation | (248) | (248) | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees | (37,254) | (2,938) | (40,192) | |||
Redemptions of noncontrolling interests | (218) | (1,026) | (1,244) | |||
Ending Balances (in shares) at Sep. 30, 2019 | 138,595 | |||||
Ending Balances at Sep. 30, 2019 | $ 1,386 | 1,246,063 | (816,811) | (17,525) | 78,625 | 491,738 |
Beginning Balances (in shares) at Jun. 30, 2019 | 136,993 | |||||
Beginning Balances at Jun. 30, 2019 | $ 1,370 | 1,237,758 | (811,530) | (13,849) | 79,582 | 493,331 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income loss (excluding portion attributable to redeemable noncontrolling interest) | 7,291 | 546 | 7,837 | |||
Net unrealized loss from available-for-sale securities | (100) | (100) | ||||
Unrealized loss from derivative instruments | (3,576) | (324) | (3,900) | |||
Issuance of common stock, net of offering costs (in shares) | 5,268 | |||||
Issuance of common stock, net of offering costs | $ 53 | 35,306 | 35,359 | |||
Share-based compensation, net of forfeitures | 32 | 32 | ||||
Share-based compensation, net of forfeitures (in shares) | 4 | |||||
Redemptions of common stock (in shares) | (3,670) | |||||
Redemptions of common stock | $ (37) | (26,779) | (26,816) | |||
Amortization of share-based compensation | 116 | 116 | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees | (12,572) | (971) | (13,543) | |||
Redemptions of noncontrolling interests | (370) | (208) | (578) | |||
Ending Balances (in shares) at Sep. 30, 2019 | 138,595 | |||||
Ending Balances at Sep. 30, 2019 | $ 1,386 | 1,246,063 | (816,811) | (17,525) | 78,625 | 491,738 |
Beginning Balances (in shares) at Dec. 31, 2019 | 140,480 | |||||
Beginning Balances at Dec. 31, 2019 | $ 1,405 | 1,257,147 | (775,259) | (14,662) | 81,657 | 550,288 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income loss (excluding portion attributable to redeemable noncontrolling interest) | (19,827) | (1,515) | (21,342) | |||
Unrealized loss from derivative instruments | (16,874) | |||||
Unrealized gain (loss) from derivative instruments (excluding portion attributable to redeemable noncontrolling interest) | (15,565) | (1,254) | (16,819) | |||
Issuance of common stock, net of offering costs (in shares) | 12,916 | |||||
Issuance of common stock, net of offering costs | $ 128 | 92,222 | 92,350 | |||
Share-based compensation, net of forfeitures | 150 | $ 150 | ||||
Share-based compensation, net of forfeitures (in shares) | 20 | |||||
Redemptions of common stock (in shares) | (11,608) | (11,608) | ||||
Redemptions of common stock | $ (116) | (86,949) | $ (87,065) | |||
Amortization of share-based compensation | 58 | 58 | ||||
Issuances of OP Units for DST Interests | 11,233 | 11,233 | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees | (38,512) | (3,079) | (41,591) | |||
Redemption value allocation adjustment to redeemable noncontrolling interest | (281) | (281) | ||||
Redemptions of noncontrolling interests | (461) | (5,598) | (6,059) | |||
Ending Balances (in shares) at Sep. 30, 2020 | 141,808 | |||||
Ending Balances at Sep. 30, 2020 | $ 1,417 | 1,261,886 | (833,598) | (30,227) | 81,444 | 480,922 |
Beginning Balances (in shares) at Jun. 30, 2020 | 141,775 | |||||
Beginning Balances at Jun. 30, 2020 | $ 1,418 | 1,263,091 | (809,999) | (32,336) | 83,166 | 505,340 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income loss (excluding portion attributable to redeemable noncontrolling interest) | (10,830) | (839) | (11,669) | |||
Unrealized loss from derivative instruments | 2,278 | |||||
Unrealized gain (loss) from derivative instruments (excluding portion attributable to redeemable noncontrolling interest) | 2,109 | 161 | 2,270 | |||
Issuance of common stock, net of offering costs (in shares) | 2,835 | |||||
Issuance of common stock, net of offering costs | $ 27 | 19,862 | 19,889 | |||
Share-based compensation, net of forfeitures | 32 | 32 | ||||
Share-based compensation, net of forfeitures (in shares) | 4 | |||||
Redemptions of common stock (in shares) | (2,806) | |||||
Redemptions of common stock | $ (28) | (21,025) | (21,053) | |||
Amortization of share-based compensation | 21 | 21 | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees | (12,769) | (1,029) | (13,798) | |||
Redemption value allocation adjustment to redeemable noncontrolling interest | (88) | 0 | (88) | |||
Redemptions of noncontrolling interests | (7) | (15) | (22) | |||
Ending Balances (in shares) at Sep. 30, 2020 | 141,808 | |||||
Ending Balances at Sep. 30, 2020 | $ 1,417 | $ 1,261,886 | $ (833,598) | $ (30,227) | $ 81,444 | $ 480,922 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Net loss attributable to redeemable noncontrolling interests | $ (39) | $ (71) |
Unrealized (loss) gain from derivative instruments allocated to redeemable noncontrolling interest | $ (8) | $ (55) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities: | ||
Net (loss) income | $ (21,413) | $ 95,027 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Real estate-related depreciation and amortization | 44,558 | 43,461 |
Straight-line rent and amortization of above- and below-market leases | (6,177) | (10,252) |
Gain on sale of real estate property | (2,192) | (96,530) |
Impairment of real estate property | 113 | |
Gain on extinguishment of debt and financing commitments, net | (1,002) | |
Other | 9,220 | 6,321 |
Changes in operating assets and liabilities | 4,851 | (1,485) |
Net cash provided by operating activities | 28,847 | 35,653 |
Investing activities: | ||
Real estate acquisitions | (162,114) | (257,506) |
Capital expenditures | (28,659) | (34,963) |
Proceeds from disposition of real estate property | 2,752 | 177,997 |
Principal collections on debt-related investments | 129 | 8,062 |
Investment in debt related investments | (45,539) | 0 |
Other | (3,355) | (4,624) |
Net cash used in investing activities | (236,786) | (111,034) |
Financing activities: | ||
Repayments of mortgage notes | (2,223) | (34,401) |
Net repayments of line of credit | (58,000) | |
Proceeds from term loan | 50,000 | |
Redemptions of common stock | (87,065) | (82,766) |
Distributions on common stock | (22,527) | (21,737) |
Proceeds from issuance of common stock | 81,932 | 125,375 |
Proceeds from financing obligations | 179,592 | 139,109 |
Offering costs for issuance of common stock and private placements | (7,331) | (8,524) |
Distributions to noncontrolling interest holders | (3,189) | (2,938) |
Redemption of OP Unit holder interests | (6,059) | (1,244) |
Other | (6,533) | (9,434) |
Net cash provided by financing activities | 126,597 | 95,440 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (81,342) | 20,059 |
Cash, cash equivalents and restricted cash, at beginning of period | 107,782 | 17,038 |
Cash, cash equivalents and restricted cash, at end of period | $ 26,440 | $ 37,097 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Unless the context otherwise requires, the “Company,” “we,” “our,” or “us” refers to Black Creek Diversified Property Fund Inc. and its consolidated subsidiaries. The accompanying unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain disclosures normally included in the annual audited financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) have been omitted. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10‑K for the year ended December 31, 2019, filed with the SEC on March 5, 2020 (“2019 Form 10‑K”). As used herein, the term “commercial” refers to our office, retail and industrial properties or customers, as applicable. Recently Issued Accounting Standards In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2020-06”), which updates various codification topics to simplify the accounting guidance for certain financial instruments with characteristics of liabilities and equity, with a specific focus on convertible instruments and the derivative scope exception for contracts in an entity’s own equity. ASU 2020-06 is effective for annual and interim reporting periods beginning after December 15, 2021, with early adoption permitted for annual and interim reporting periods beginning after December 15, 2020. We plan to adopt ASU 2020-06 when it becomes effective for the Company, as of the reporting period beginning January 1, 2021. Our initial analysis indicates that the adoption of this standard will not have a material effect on our condensed consolidated financial statements. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016‑13, “Financial Instruments—Credit Losses (Topic 326)” (“ASU 2016‑13”), which introduces a new model for recognizing credit losses for certain financial instruments, including loans, accounts receivable and debt securities. The new model requires an estimate of expected credit losses over the life of exposure to be recorded through the establishment of an allowance account, which is presented as an offset to the related financial asset. The expected credit loss is recorded upon the initial recognition of the financial asset. We adopted this standard when it became effective for us, as of the reporting period beginning January 1, 2020. The adoption did not have a material effect on our condensed consolidated financial statements. In November 2018, the FASB issued ASU No. 2018‑19, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses” (“ASU 2018‑19”), which clarifies the scope of the guidance in the amendments in ASU 2016‑13. We adopted this standard when it became effective for us, as of the reporting period beginning January 1, 2020. The adoption did not have a material effect on our condensed consolidated financial statements. In March 2020, the FASB issued ASU No. 2020‑03, “Codification Improvements to Financial Instruments” (“ASU 2020‑03”), which updates various codification topics related to financial instruments by clarifying or improving the disclosure requirements to align with the SEC’s regulations. We adopted this standard immediately upon its issuance. The adoption did not have a material effect on our condensed consolidated financial statements. In March 2020, the FASB issued ASU No. 2020‑04, “Reference Rate Reform (Topic 848)” (“ASU 2020‑04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments only apply to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020‑04 is effective for annual and interim reporting periods beginning after March 12, 2020, with early adoption permitted, through December 31, 2022. The expedients and exceptions do not apply to contract modifications made and hedging relationships entered into after December 31, 2022. We adopted this standard immediately upon its issuance. The adoption did not have a material effect on the Company’s condensed consolidated financial statements. In April 2020, the FASB issued a Staff Question-and-Answer to clarify whether lease concessions related to the effects of COVID-19 require the application of lease modification guidance under the new lease standard, which we adopted on January 1, 2019. The guidance did not have a material effect on the Company’s condensed consolidated financial statements. However, its future impact to the Company is dependent upon the extent of lease concessions granted to customers as a result of the COVID-19 pandemic in future periods and the elections made by the Company at the time of entering such concessions. It is not possible at this time to accurately project the nature or extent of any such possible future concessions. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements” (“ASU 2020-10”), which updates various codification topics by clarifying or improving disclosure requirements to align with the SEC’s regulations. We adopted this standard immediately upon its issuance. The adoption did not have a material effect on our condensed consolidated financial statements . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition We must make estimates as to collectability of our accounts receivable related to rental income and straight-line rent. Management analyzes accounts receivable by considering customer creditworthiness, current economic trends, including the impact of the outbreak of COVID-19 on customers’ businesses, and customers’ ability to make payments on time and in full when evaluating the adequacy of the allowance for doubtful accounts receivable. As of September 30, 2020, the impact of COVID-19 on customer collectability has been minimal and has not had a material impact on the condensed consolidated financial statements. The allowance for doubtful accounts as of September 30, 2020 and December 31, 2019 was approximately $1.0 million and $0.8 million, respectively. |
INVESTMENTS IN REAL ESTATE PROP
INVESTMENTS IN REAL ESTATE PROPERTIES | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
INVESTMENTS IN REAL ESTATE PROPERTIES | 3. INVESTMENTS IN REAL ESTATE PROPERTIES The following table summarizes our consolidated investments in real estate properties. As of (in thousands) September 30, 2020 December 31, 2019 Land $ 449,812 $ 418,037 Buildings and improvements 1,535,621 1,375,192 Intangible lease assets 281,275 264,121 Investment in real estate properties 2,266,708 2,057,350 Accumulated depreciation and amortization (489,361) (444,718) Net investment in real estate properties $ 1,777,347 $ 1,612,632 Acquisitions During the nine months ended September 30, 2020, we acquired 100% of the following properties, all of which were determined to be asset acquisitions: ($ in thousands) Property Type Acquisition Date Total Purchase Price (1) Village at Lee Branch Retail 1/29/2020 $ 41,665 Railhead DC (2) Industrial 2/4/2020 19,295 Tri-County DC II B Industrial 2/14/2020 2,884 Sterling IC Industrial 3/25/2020 5,118 Clayton Commerce Center Industrial 6/26/2020 59,289 Bay Area Commerce Center Industrial 8/27/2020 48,807 Total acquisitions $ 177,058 (1) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. (2) Includes debt assumed at fair value as of the acquisition date of $9.8 million, with a principal amount of $9.2 million. During the nine months ended September 30, 2020, we allocated the purchase price of our acquisitions to land, building and intangible lease assets and liabilities as follows: For the Nine Months Ended ($ in thousands) September 30, 2020 Land $ 32,547 Building 128,946 Intangible lease assets 15,510 Above-market lease assets 1,835 Below-market lease liabilities (1,780) Total purchase price (1) $ 177,058 (1) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. The weighted-average amortization period for the intangible lease assets and liabilities acquired in connection with our acquisitions during the nine months ended September 30, 2020, as of the respective date of each acquisition, was 10.2 years. Dispositions During the nine months ended September 30, 2020, we sold one retail outparcel for net proceeds of approximately $2.8 million. We recorded a net gain on sale of approximately $2.2 million. During the nine months ended September 30, 2019, we sold three office properties, one retail property and two retail outparcels for net proceeds of approximately $178.0 million, which is net of the property-related debt repayment described in Note 4. We recorded a net gain on sale of approximately $96.5 million. Intangible Lease Assets and Liabilities Intangible lease assets and liabilities as of September 30, 2020 and December 31, 2019 include the following: As of September 30, 2020 As of December 31, 2019 Accumulated Accumulated (in thousands) Gross Amortization Net Gross Amortization Net Intangible lease assets $ 258,021 $ (210,595) $ 47,426 $ 242,704 $ (200,623) $ 42,081 Above-market lease assets 23,254 (21,134) 2,120 21,417 (20,859) 558 Below-market lease liabilities (81,403) 38,830 (42,573) (80,002) 36,499 (43,503) Rental Revenue Adjustments and Depreciation and Amortization Expense The following table summarizes straight-line rent adjustments, amortization recognized as an increase (decrease) to rental revenues from above- and below-market lease assets and liabilities, and real estate-related depreciation and amortization expense: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Increase (decrease) to rental revenue: Straight-line rent adjustments $ 1,322 $ 855 $ 3,947 $ 7,763 Above-market lease amortization (157) (125) (275) (657) Below-market lease amortization 781 986 2,505 3,146 Real estate-related depreciation and amortization: Depreciation expense $ 12,406 $ 10,416 $ 34,660 $ 31,036 Intangible lease asset amortization 3,243 4,057 9,898 12,425 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | 4. DEBT A summary of our debt is as follows: Weighted-Average Effective Interest Rate as of Balance as of September 30, December 31, September 30, December 31, ($ in thousands) 2020 2019 Current Maturity Date 2020 2019 Line of credit (1) 1.55 % 3.16 % January 2023 $ — $ — Term loan (2) 3.27 3.04 January 2024 325,000 325,000 Term loan (3) 3.29 3.29 February 2022 200,000 200,000 Fixed-rate mortgage notes (4) 3.53 3.52 September 2021 - December 2029 207,877 200,857 Floating-rate mortgage note (5) 2.40 4.01 January 2021 127,000 127,000 Total principal amount / weighted-average (6) 3.21 % 3.36 % $ 859,877 $ 852,857 Less: unamortized debt issuance costs $ (4,768) $ (6,535) Add: mark-to-market adjustment on assumed debt 675 245 Total debt, net $ 855,784 $ 846,567 Gross book value of properties encumbered by debt $ 563,755 $ 535,196 (1) The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.30% to 2.10%, depending on our consolidated leverage ratio. As of September 30, 2020, the unused and available portions under the line of credit were approximately $450.0 million and $219.5 million, respectively. The line of credit is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. (2) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.25% to 2.05%, depending on our consolidated leverage ratio. Total commitments for this term loan are $325.0 million. There are no amounts unused or available under this term loan as of September 30, 2020. The weighted-average interest rate is the all-in interest rate, including the effects of interest rate swap agreements relating to approximately $300.0 million in borrowings under this term loan. (3) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.25% to 2.05%, depending on our consolidated leverage ratio. Total commitments for this term loan are $200.0 million. There are no amounts unused or available under this term loan as of September 30, 2020. The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements. (4) The amount outstanding as of September 30, 2020 includes a $50.1 million floating-rate mortgage note that is subject to an interest rate spread of 1.65% over one-month LIBOR, which we have effectively fixed using an interest rate swap at 2.85% until the designated cash flow hedge expires in July 2021. This mortgage note matures in August 2023. (5) The effective interest rate is calculated based on LIBOR plus a margin of 2.25%. As of September 30, 2020, and December 31, 2019, our floating-rate mortgage note was subject to a weighted-average interest rate spread of 2.25% and 2.25%, respectively. (6) The weighted-average remaining term of our borrowings was approximately 2.8 years as of September 30, 2020, excluding the impact of certain extension options. As of September 30, 2020, the principal payments due on our outstanding debt during each of the next five years and thereafter were as follows: (in thousands) Line of Credit Term Loans Mortgage Notes Total Remainder of 2020 $ — $ — $ 776 $ 776 2021 (1) — — 138,917 138,917 2022 (2) — 200,000 2,780 202,780 2023 (3) — — 48,799 48,799 2024 — 325,000 2,172 327,172 Thereafter — — 141,433 141,433 Total principal payments $ — $ 525,000 $ 334,877 $ 859,877 (1) Includes a $127.0 million floating-rate mortgage note with a maturity date of January 2021. The mortgage note may still be extended an additional one year, subject to certain conditions. (2) The term of this term loan may be extended pursuant to two one-year extension options, subject to certain conditions. (3) The term of the line of credit may be extended pursuant to two six-month extension options, subject to certain conditions. In July 2017, the Financial Conduct Authority (“FCA”) that regulates LIBOR announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. As a result, the Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee ("ARRC"), which identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative rate for LIBOR in derivatives and other financial contracts. We are not able to predict when LIBOR will cease to be available or when there will be sufficient liquidity in the SOFR markets. Any changes adopted by the FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR. If that were to occur, our interest payments could change. In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form. As of September 30 2020, our line of credit, term loans and a $50.1 million mortgage note are our only indebtedness with initial maturity dates beyond 2021 that have exposure to LIBOR. The agreements governing the line of credit, term loans and mortgage note provide procedures for determining a replacement or alternative base rate in the event that LIBOR is discontinued. However, there can be no assurances as to whether such replacement or alternative base rate will be more or less favorable than LIBOR. We intend to monitor the developments with respect to the potential phasing out of LIBOR after 2021 and work with our lenders to seek to ensure any transition away from LIBOR will have minimal impact on our financial condition, but can provide no assurances regarding the impact of the discontinuation of LIBOR. Debt Covenants Our line of credit, term loans and mortgage note agreements contain various property-level covenants, including customary affirmative and negative covenants. In addition, the line of credit and term loan agreements contain certain corporate-level financial covenants, including leverage ratio, fixed charge coverage ratio, and tangible net worth thresholds. We were in compliance with our debt covenants as of September 30, 2020. Derivative Instruments To manage interest rate risk for certain of our variable-rate debt, we use interest rate derivative instruments as part of our risk management strategy. These derivatives are designed to mitigate the risk of future interest rate increases by either providing a fixed interest rate or capping the variable interest rate for a limited, pre-determined period of time. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the interest rate swap agreements without exchange of the underlying notional amount. Interest rate caps involve the receipt of variable amounts from a counterparty at the end of each period in which the interest rate exceeds the agreed fixed price. Interest rate caps are not designated as hedges. Certain of our variable-rate borrowings are not hedged, and therefore, to an extent, we have ongoing exposure to interest rate movements. For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss is recorded as a component of accumulated other comprehensive income (loss) (“AOCI”) on the condensed consolidated balance sheets and is reclassified into earnings as interest expense for the same period that the hedged transaction affects earnings, which is when the interest expense is recognized on the related debt. During the next 12 months, we estimate that approximately $10.1 million will be reclassified as an increase to interest expense related to active effective hedges of existing floating-rate debt, and we estimate that approximately $0.1 million will be reclassified as an increase to interest expense related to terminated hedges where the likelihood of the originally hedged interest payments remains probable. The following table summarizes the location and fair value of our derivative instruments on our condensed consolidated balance sheets: Number of Fair Value ($ in thousands) Contracts Notional Amount Other Assets Other Liabilities As of September 30, 2020 Interest rate swaps 14 $ 550,143 $ — $ 29,934 Interest rate caps 1 127,000 — — Total derivative instruments 15 $ 677,143 $ — $ 29,934 As of December 31, 2019 Interest rate swaps (1) 14 $ 601,005 $ 288 $ 13,308 Interest rate caps 1 146,600 — — Total derivative instruments 15 $ 747,605 $ 288 $ 13,308 (1) Includes four interest rate swaps with a combined notional amount of $200.0 million that became effective in January 2020 and three interest rate swaps with a combined notional of $150.0 million that expired in January 2020. The following table presents the effect of our derivative instruments on our condensed consolidated financial statements: For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Derivative instruments designated as cash flow hedges: Loss recognized in AOCI $ (292) $ (3,438) $ (22,022) $ (16,461) Amount reclassified from AOCI into interest expense 2,570 (462) 5,148 (1,553) Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring — — — (1,374) Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 15,290 11,764 42,930 37,074 Derivative instruments not designated as cash flow hedges: Loss recognized in income $ (1) $ — $ (13) $ (25) |
DST PROGRAM
DST PROGRAM | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DST Program | 5. DST PROGRAM We have a program to raise capital through private placement offerings by selling beneficial interests (the “DST Interests”) in specific Delaware statutory trusts holding real properties (the “DST Program”). During the nine months ended September 30, 2020, we sold approximately $202.3 million in gross interests related to the DST Program and incurred rent obligations of approximately $13.7 million under our master lease agreements with investors who are participating in the DST Program. Additionally, during 2020, 1.5 million OP Units were issued for beneficial interests for a net investment of $11.3 million in accordance with our UPREIT structure. In order to facilitate additional capital raise through the DST Program, we may offer loans (“DST Program Loans”) to finance a portion of the sale of DST Interests to potential investors. As of September 30, 2020, we have made approximately $42.1 million in DST Program Loans to partially finance the sale of DST Interests in the DST Program. Of the $202.3 million of gross interests sold during the nine months ended September 30, 2020, $22.7 million were financed by DST Program Loans. We include our investments in DST Program Loans separately on our consolidated balance sheets in the “DST Program Loans” line item and we include income earned from DST Program Loans in “other income” on our statements of operations. We do not have a significant credit concentration with any individual purchaser as a result of DST Program Loans. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
FAIR VALUE | 6. FAIR VALUE We estimate the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of the amounts that we would realize upon disposition. Fair Value Measurements on a Recurring Basis The following table presents our financial instruments measured at fair value on a recurring basis: Total (in thousands) Level 1 Level 2 Level 3 Fair Value As of September 30, 2020 Assets: Derivative instruments $ — $ — $ — $ — Total assets measured at fair value $ — $ — $ — $ — Liabilities: Derivative instruments $ — $ 29,934 $ — $ 29,934 Total liabilities measured at fair value $ — $ 29,934 $ — $ 29,934 As of December 31, 2019 Assets: Derivative instruments $ — $ 288 $ — $ 288 Total assets measured at fair value $ — $ 288 $ — $ 288 Liabilities: Derivative instruments $ — $ 13,308 $ — $ 13,308 Total liabilities measured at fair value $ — $ 13,308 $ — $ 13,308 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Derivative Instruments. The derivative instruments are interest rate swaps and an interest rate cap whose fair value is estimated using market-standard valuation models. Such models involve using market-based observable inputs, including interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our nonperformance risk and respective counterparty’s nonperformance risk in the fair value measurements, which we have concluded are not material to the valuation. Due to these derivative instruments being unique and not actively traded, the fair value is classified as Level 2. See “Note 4” above for further discussion of our derivative instruments. Nonrecurring Fair Value Measurements As of September 30, 2020 and December 31, 2019, the fair values of cash and cash equivalents, restricted cash, tenant receivables, due from/to affiliates, accounts payable and accrued liabilities, and distributions payable approximate their carrying values because of the short-term nature of these instruments. The table below includes fair values for certain of our financial instruments for which it is practicable to estimate fair value. The carrying values and fair values of these financial instruments were as follows: As of September 30, 2020 As of December 31, 2019 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt-related investments $ 49,329 $ 48,969 $ 2,578 $ 2,604 DST Program Loans 42,104 42,104 19,404 19,404 Liabilities: Line of credit $ — $ — $ — $ — Term loans 525,000 518,942 525,000 525,000 Mortgage notes 334,877 333,124 327,857 326,447 (1) The carrying value reflects the principal amount outstanding. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 7. STOCKHOLDERS’ EQUITY Public Offering A summary of our public offerings (including shares sold through the primary offering and distribution reinvestment plan (“DRIP”)) for the nine months ended September 30, 2020, is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 25,769 $ 23,400 $ 3,800 $ 28,963 $ — $ 81,932 DRIP 991 2,650 512 6,030 5,789 15,972 Total offering $ 26,760 $ 26,050 $ 4,312 $ 34,993 $ 5,789 $ 97,904 Number of shares sold: Primary offering 3,322 3,083 508 3,869 — 10,782 DRIP 132 353 69 804 776 2,134 Total offering 3,454 3,436 577 4,673 776 12,916 Common Stock The following table describes the changes in each class of common shares during the periods presented below: Class T Class S Class D Class I Class E Total (in thousands) Shares Shares Shares Shares Shares Shares FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 Balance as of June 30, 2019 3,902 17,590 3,080 40,498 71,923 136,993 Issuance of common stock: Primary shares 668 1,932 292 1,658 — 4,550 Distribution reinvestment plan 19 104 20 280 295 718 Share-based compensation — — - 4 — 4 Redemptions of common stock (25) (108) (62) (351) (3,124) (3,670) Balance as September 30, 2019 4,564 19,518 3,330 42,089 69,094 138,595 FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 Balance as of June 30, 2020 8,510 21,870 3,783 44,311 63,301 141,775 Issuance of common stock: Primary shares 602 668 151 709 — 2,130 Distribution reinvestment plan 51 119 23 262 250 705 Share-based compensation — — — 4 — 4 Redemptions of common stock (22) (419) (38) (856) (1,471) (2,806) Balance as of September 30, 2020 9,141 22,238 3,919 44,430 62,080 141,808 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 Balance as of December 31, 2018 2,783 10,516 2,778 37,385 77,390 130,852 Issuance of common stock: Primary shares 2,032 8,870 806 5,132 — 16,840 Distribution reinvestment plan 59 255 59 792 915 2,080 Share-based compensation — — — 86 — 86 Redemptions of common stock (310) (123) (313) (1,306) (9,211) (11,263) Balance as of September 30, 2019 4,564 19,518 3,330 42,089 69,094 138,595 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 Balance as of December 31, 2019 5,852 20,593 3,499 43,732 66,804 140,480 Issuance of common stock: Primary shares 3,322 3,083 508 3,869 — 10,782 Distribution reinvestment plan 132 353 69 804 776 2,134 Share-based compensation — — — 20 — 20 Redemptions of common stock (165) (1,791) (157) (3,995) (5,500) (11,608) Balance as of September 30, 2020 9,141 22,238 3,919 44,430 62,080 141,808 Distributions The following table summarizes our distribution activity (including distributions to noncontrolling interests and distributions reinvested in shares of our common stock) for the periods below: Amount Common Stock Declared per Distributions Other Cash Reinvested in Total (in thousands, except per share data) Common Share (1) Paid in Cash Distributions (2) Shares Distributions 2020 March 31 $ 0.09375 $ 7,533 $ 1,721 $ 5,360 $ 14,614 June 30 0.09375 7,539 1,611 5,316 14,466 September 30 0.09375 7,482 1,592 5,282 14,356 Total $ 0.28125 $ 22,554 $ 4,924 $ 15,958 $ 43,436 2019 March 31 $ 0.09375 $ 7,198 $ 1,244 $ 4,997 $ 13,439 June 30 0.09375 7,303 1,312 5,180 13,795 September 30 0.09375 7,302 1,351 5,270 13,923 December 31 0.09375 7,412 1,396 5,294 14,102 Total $ 0.37500 $ 29,215 $ 5,303 $ 20,741 $ 55,259 (1) Amount reflects the total quarterly distribution rate, subject to adjustment for class-specific fees. (2) Includes other cash distributions consisting of (i) distributions paid to holders of partnership units (“OP Units”) in Black Creek Diversified Property Operating Partnership LP (the “Operating Partnership”); and (ii) ongoing distribution fees paid to Black Creek Capital Markets, LLC (the “Dealer Manager”) with respect to certain classes of our shares. See “Note 8” for further detail regarding the current and historical ongoing distribution fees. Redemptions and Repurchases Below is a summary of redemptions and repurchases pursuant to our share redemption program for the nine months ended September 30, 2020 and 2019. Our board of directors may modify, suspend or terminate our current share redemption programs if it deems such action to be in the best interest of our stockholders. For the Nine Months Ended September 30, (in thousands, except for per share data) 2020 2019 Number of shares requested for redemption or repurchase 11,608 11,263 Number of shares redeemed or repurchased 11,608 11,263 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.50 $ 7.35 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 8. RELATED PARTY TRANSACTIONS Summary of Fees and Expenses The following table summarizes the fees and expenses incurred by us in connection with offering and operation services provided by Black Creek Diversified Property Advisors LLC (the “Advisor”) and its affiliates, and by the Dealer Manager, and any related amounts payable: For the Three Months Ended September 30, For the Nine Months Ended September 30, Payable as of (in thousands) 2020 2019 2020 2019 September 30, 2020 December 31, 2019 Upfront selling commissions (1) $ 226 $ 449 $ 1,216 $ 1,556 $ — $ — Ongoing distribution fees (1) 515 379 1,482 964 171 147 Advisory fees - fixed component 3,181 3,008 9,597 8,808 891 998 Advisory fees—performance component 1,333 — 3,343 — 3,343 3,776 Other expense reimbursements—Advisor 2,691 2,636 7,271 7,399 1,590 2,240 Other expense reimbursements—Dealer Manager 3 135 213 496 — — DST Program advisory fees 1,029 515 3,069 1,079 407 247 DST Program selling commissions (1) 425 588 2,300 1,969 — — DST Program dealer manager fees (1) 122 78 744 311 — — DST Program other reimbursements—Dealer Manager 42 237 218 609 — — DST Program facilitation and loan origination fees 515 815 3,084 2,122 — — Total $ 10,082 $ 8,840 $ 32,537 $ 25,313 $ 6,402 $ 7,408 (1) All or a portion of these amounts will be retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers. |
NET INCOME (LOSS) PER COMMON SH
NET INCOME (LOSS) PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER COMMON SHARE | 9. NET INCOME (LOSS) PER COMMON SHARE The computation of our basic and diluted net income (loss) per share attributable to common stockholders is as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands, except per share data) 2020 2019 2020 2019 Net (loss) income attributable to common stockholders—basic $ (10,830) $ 7,291 $ (19,827) $ 88,292 Net loss attributable to redeemable OP Units (39) — (71) — Net (loss) income attributable to OP Units (839) 546 (1,515) 6,735 Net (loss) income attributable to common stockholders—diluted $ (11,708) $ 7,837 $ (21,413) $ 95,027 Weighted-average shares outstanding—basic 141,682 138,063 142,216 135,877 Incremental weighted-average shares effect of conversion of OP Units 11,484 10,360 11,449 10,422 Weighted-average shares outstanding—diluted 153,166 148,423 153,665 146,299 Net (loss) income per share attributable to common stockholders: Basic $ (0.08) $ 0.05 $ (0.14) $ 0.65 Diluted $ (0.08) $ 0.05 $ (0.14) $ 0.65 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 10. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information and disclosure of non-cash investing and financing activities is as follows: For the Nine Months Ended September 30, (in thousands) 2020 2019 Distributions reinvested in common stock $ 15,972 $ 15,310 Change in accrued future ongoing distribution fees 335 5,415 Repayment of property-level loans upon disposition of real estate property — 83,140 Increase in DST Program Loans receivable through DST Program capital raising 22,700 12,358 Redeemable noncontrolling interest issued as settlement of performance component of the Advisory fee 3,776 — Redemption value allocation adjustment to redeemable noncontrolling interest 281 — Mortgage notes assumed on real estate acquisitions at fair value 9,834 — Issuances of OP Units for DST Interests 11,240 — Restricted Cash Restricted cash consists of lender and property-related escrow accounts. The following table presents the components of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated statements of cash flows: For the Nine Months Ended September 30, (in thousands) 2020 2019 Beginning of period: Cash and cash equivalents $ 97,772 $ 10,008 Restricted cash 10,010 7,030 Cash, cash equivalents and restricted cash $ 107,782 $ 17,038 End of period: Cash and cash equivalents $ 16,124 $ 26,372 Restricted cash 10,316 10,725 Cash, cash equivalents and restricted cash $ 26,440 $ 37,097 |
SIGNIFICANT RISKS AND UNCERTAIN
SIGNIFICANT RISKS AND UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT RISKS AND UNCERTAINTIES | 11. SIGNIFICANT RISKS AND UNCERTAINTIES Significant Risks and Uncertainties Currently, one of the most significant risks and uncertainties is the adverse effect of the current novel coronavirus (COVID-19) pandemic. A number of our customers previously announced temporary closures of their stores and requested rent deferral or rent abatement during this pandemic. The outbreak has triggered a period of global economic slowdown. The COVID-19 pandemic could have material and adverse effects on our financial condition, results of operations and cash flows in the near term due to, but not limited to, the following: · reduced economic activity severely impacts our customers’ businesses, financial condition and liquidity and may cause customers to be unable to fully meet their obligations to us or to otherwise seek modifications of such obligations, resulting in increases in uncollectible receivables and reductions in rental income; · the negative financial impact of the pandemic could impact our future compliance with financial covenants of our credit facility and other debt agreements; and · weaker economic conditions could cause us to recognize impairment in value of our tangible or intangible assets. We are closely monitoring the impact of the COVID-19 pandemic on all aspects of our business, including how it will impact our customers and business partners. While COVID-19 did not have a material effect on our condensed consolidated financial statements, we are unable to predict the impact that the COVID-19 pandemic will have on our future financial condition, results of operations and cash flows due to numerous uncertainties and the impact could be material. The extent to which the COVID-19 pandemic impacts our operations and those of our customers will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES During the third quarter of 2020, we recorded an expense of $2.5 million associated with litigation on our condensed consolidated statements of operations and an accrued liability equal to the same amount within the other liabilities section of the condensed consolidated balance sheet as of September 30, 2020. Environmental Matters A majority of the properties we acquire are subject to environmental reviews either by us or the previous owners. In addition, we may incur environmental remediation costs associated with certain land parcels we may acquire in connection with the development of the land. We have acquired certain properties in urban and industrial areas that may have been leased to or previously owned by commercial and industrial companies that discharged hazardous materials. We may purchase various environmental insurance policies to mitigate our exposure to environmental liabilities. We are not aware of any environmental liabilities that we believe would have a material adverse effect on our business, financial condition, or results of operations as of September 30, 2020. |
SEGMENT FINANCIAL INFORMATION
SEGMENT FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT FINANCIAL INFORMATION | 13. SEGMENT FINANCIAL INFORMATION Our four reportable segments are office, retail, multi-family and industrial. Factors used to determine our reportable segments include the physical and economic characteristics of our properties and the related operating activities. Our chief operating decision makers rely on net operating income, among other factors, to make decisions about allocating resources and assessing segment performance. Net operating income is the key performance metric that captures the unique operating characteristics of each segment. Items that are not directly assignable to a segment, such as certain corporate items, are not allocated but reflected as reconciling items. The following table reflects our total assets by business segment as of September 30, 2020 and December 31, 2019: As of (in thousands) September 30, 2020 December 31, 2019 Assets: Office properties $ 461,993 $ 458,583 Retail properties 689,395 652,707 Multi-family properties 287,035 293,498 Industrial properties 338,924 207,844 Corporate 159,399 165,633 Total assets $ 1,936,746 $ 1,778,265 The following table sets forth the financial results by segment for the three and nine months ended September 30, 2020 and 2019: (in thousands) Office Retail Multi-family Industrial Consolidated For the Three Months Ended September 30, 2020 Rental revenues $ 16,237 $ 17,310 $ 4,351 $ 6,231 $ 44,129 Rental expenses (7,748) (4,535) (2,282) (1,316) (15,881) Net operating income $ 8,489 $ 12,775 $ 2,069 $ 4,915 $ 28,248 Real estate-related depreciation and amortization $ 4,851 $ 5,309 $ 2,234 $ 3,255 $ 15,649 For the Three Months Ended September 30, 2019 Rental revenues $ 20,470 $ 17,422 $ 2,945 $ 3,358 $ 44,195 Rental expenses (8,916) (4,323) (1,441) (680) (15,360) Net operating income $ 11,554 $ 13,099 $ 1,504 $ 2,678 $ 28,835 Real estate-related depreciation and amortization $ 6,281 $ 4,547 $ 2,008 $ 1,637 $ 14,473 For the Nine Months Ended September 30, 2020 Rental revenues $ 48,988 $ 53,053 $ 14,591 $ 16,363 $ 132,995 Rental expenses (23,061) (12,561) (6,638) (3,532) (45,792) Net operating income $ 25,927 $ 40,492 $ 7,953 $ 12,831 $ 87,203 Real estate-related depreciation and amortization $ 14,676 $ 14,867 $ 6,560 $ 8,455 $ 44,558 For the Nine Months Ended September 30, 2019 Rental revenues $ 74,383 $ 52,938 $ 2,945 $ 9,385 $ 139,651 Rental expenses (29,174) (12,986) (1,441) (2,044) (45,645) Net operating income $ 45,209 $ 39,952 $ 1,504 $ 7,341 $ 94,006 Real estate-related depreciation and amortization $ 21,268 $ 15,606 $ 2,008 $ 4,579 $ 43,461 We consider net operating income to be an appropriate supplemental performance measure and believe net operating income provides useful information to our investors regarding our financial condition and results of operations because net operating income reflects the operating performance of our properties and excludes certain items that are not considered to be controllable in connection with the management of the properties, such as real estate-related depreciation and amortization, general and administrative expenses, advisory fees, impairment charges, interest expense, gains on sale of properties, other income and expense, gains and losses on the extinguishment of debt and noncontrolling interests. However, net operating income should not be viewed as an alternative measure of our financial performance since it excludes such items, which could materially impact our results of operations. Further, our net operating income may not be comparable to that of other real estate companies, as they may use different methodologies for calculating net operating income. Therefore, we believe net income, as defined by GAAP, to be the most appropriate measure to evaluate our overall financial performance. The following table is a reconciliation of our reported net income (loss) attributable to common stockholders to our net operating income for the three and nine months ended September 30, 2020 and 2019: For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Net (loss) income attributable to common stockholders $ (10,830) $ 7,291 $ (19,827) $ 88,292 Debt-related income (981) (35) (1,181) (193) Real estate-related depreciation and amortization 15,649 14,473 44,558 43,461 General and administrative expenses 2,217 2,181 6,611 6,325 Advisory fees, related party 5,543 3,523 16,009 9,887 Litigation expense 2,500 — 2,500 — Impairment of real estate property — 113 — 113 Other income (262) (131) (619) (156) Interest expense 15,290 11,764 42,930 37,074 Gain on sale of real estate property — (10,890) (2,192) (96,530) Gain on extinguishment of debt and financing commitments, net — — — (1,002) Net loss attributable to redeemable noncontrolling interests (39) — (71) — Net (loss) income attributable to noncontrolling interests (839) 546 (1,515) 6,735 Net operating income $ 28,248 $ 28,835 $ 87,203 $ 94,006 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS Acquisitions of Real Property Subsequent to September 30, 2020 we acquired (excluding properties related to our DST Program) one industrial property located in Louisville, Kentucky, and one multi-family property located in Davie, Florida for a total aggregate purchase price of approximately $97.7 million. Disposition of Real Property On October 20, 2020, we s old to an unrelated third party a retail property located in Mansfield, Massachusetts (“Mansfield”) for a gross sale price of approximately $25.0 million. Our accounting basis (net of accumulated depreciation and amortization) for this real estate property as of the closing date was approximately $15.2 million . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition We must make estimates as to collectability of our accounts receivable related to rental income and straight-line rent. Management analyzes accounts receivable by considering customer creditworthiness, current economic trends, including the impact of the outbreak of COVID-19 on customers’ businesses, and customers’ ability to make payments on time and in full when evaluating the adequacy of the allowance for doubtful accounts receivable. As of September 30, 2020, the impact of COVID-19 on customer collectability has been minimal and has not had a material impact on the condensed consolidated financial statements. The allowance for doubtful accounts as of September 30, 2020 and December 31, 2019 was approximately $1.0 million and $0.8 million, respectively. |
INVESTMENTS IN REAL ESTATE PR_2
INVESTMENTS IN REAL ESTATE PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Schedule of Consolidated Investments in Real Estate Properties Excluding Properties Held for Sale | The following table summarizes our consolidated investments in real estate properties. As of (in thousands) September 30, 2020 December 31, 2019 Land $ 449,812 $ 418,037 Buildings and improvements 1,535,621 1,375,192 Intangible lease assets 281,275 264,121 Investment in real estate properties 2,266,708 2,057,350 Accumulated depreciation and amortization (489,361) (444,718) Net investment in real estate properties $ 1,777,347 $ 1,612,632 |
Schedule of Asset Acquisitions | During the nine months ended September 30, 2020, we acquired 100% of the following properties, all of which were determined to be asset acquisitions: ($ in thousands) Property Type Acquisition Date Total Purchase Price (1) Village at Lee Branch Retail 1/29/2020 $ 41,665 Railhead DC (2) Industrial 2/4/2020 19,295 Tri-County DC II B Industrial 2/14/2020 2,884 Sterling IC Industrial 3/25/2020 5,118 Clayton Commerce Center Industrial 6/26/2020 59,289 Bay Area Commerce Center Industrial 8/27/2020 48,807 Total acquisitions $ 177,058 (1) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. (2) Includes debt assumed at fair value as of the acquisition date of $9.8 million, with a principal amount of $9.2 million. |
Allocation of Purchase Price Allocations | During the nine months ended September 30, 2020, we allocated the purchase price of our acquisitions to land, building and intangible lease assets and liabilities as follows: For the Nine Months Ended ($ in thousands) September 30, 2020 Land $ 32,547 Building 128,946 Intangible lease assets 15,510 Above-market lease assets 1,835 Below-market lease liabilities (1,780) Total purchase price (1) $ 177,058 (1) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. |
Schedule of Intangible Lease Assets and Liabilities Excluding Properties Held for Sale | Intangible lease assets and liabilities as of September 30, 2020 and December 31, 2019 include the following: As of September 30, 2020 As of December 31, 2019 Accumulated Accumulated (in thousands) Gross Amortization Net Gross Amortization Net Intangible lease assets $ 258,021 $ (210,595) $ 47,426 $ 242,704 $ (200,623) $ 42,081 Above-market lease assets 23,254 (21,134) 2,120 21,417 (20,859) 558 Below-market lease liabilities (81,403) 38,830 (42,573) (80,002) 36,499 (43,503) |
Schedule of Adjustments to Rental Revenue Related to Amortization of Above-Market Lease Assets, Below-Market Lease Liabilities, and for Straight-Line Rental Adjustments | The following table summarizes straight-line rent adjustments, amortization recognized as an increase (decrease) to rental revenues from above- and below-market lease assets and liabilities, and real estate-related depreciation and amortization expense: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Increase (decrease) to rental revenue: Straight-line rent adjustments $ 1,322 $ 855 $ 3,947 $ 7,763 Above-market lease amortization (157) (125) (275) (657) Below-market lease amortization 781 986 2,505 3,146 Real estate-related depreciation and amortization: Depreciation expense $ 12,406 $ 10,416 $ 34,660 $ 31,036 Intangible lease asset amortization 3,243 4,057 9,898 12,425 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of our debt is as follows: Weighted-Average Effective Interest Rate as of Balance as of September 30, December 31, September 30, December 31, ($ in thousands) 2020 2019 Current Maturity Date 2020 2019 Line of credit (1) 1.55 % 3.16 % January 2023 $ — $ — Term loan (2) 3.27 3.04 January 2024 325,000 325,000 Term loan (3) 3.29 3.29 February 2022 200,000 200,000 Fixed-rate mortgage notes (4) 3.53 3.52 September 2021 - December 2029 207,877 200,857 Floating-rate mortgage note (5) 2.40 4.01 January 2021 127,000 127,000 Total principal amount / weighted-average (6) 3.21 % 3.36 % $ 859,877 $ 852,857 Less: unamortized debt issuance costs $ (4,768) $ (6,535) Add: mark-to-market adjustment on assumed debt 675 245 Total debt, net $ 855,784 $ 846,567 Gross book value of properties encumbered by debt $ 563,755 $ 535,196 (1) The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.30% to 2.10%, depending on our consolidated leverage ratio. As of September 30, 2020, the unused and available portions under the line of credit were approximately $450.0 million and $219.5 million, respectively. The line of credit is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. (2) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.25% to 2.05%, depending on our consolidated leverage ratio. Total commitments for this term loan are $325.0 million. There are no amounts unused or available under this term loan as of September 30, 2020. The weighted-average interest rate is the all-in interest rate, including the effects of interest rate swap agreements relating to approximately $300.0 million in borrowings under this term loan. (3) The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.25% to 2.05%, depending on our consolidated leverage ratio. Total commitments for this term loan are $200.0 million. There are no amounts unused or available under this term loan as of September 30, 2020. The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements. (4) The amount outstanding as of September 30, 2020 includes a $50.1 million floating-rate mortgage note that is subject to an interest rate spread of 1.65% over one-month LIBOR, which we have effectively fixed using an interest rate swap at 2.85% until the designated cash flow hedge expires in July 2021. This mortgage note matures in August 2023. (5) The effective interest rate is calculated based on LIBOR plus a margin of 2.25%. As of September 30, 2020, and December 31, 2019, our floating-rate mortgage note was subject to a weighted-average interest rate spread of 2.25% and 2.25%, respectively. (6) The weighted-average remaining term of our borrowings was approximately 2.8 years as of September 30, 2020, excluding the impact of certain extension options. |
Schedule of Borrowings Reflects Contractual Debt Maturities | As of September 30, 2020, the principal payments due on our outstanding debt during each of the next five years and thereafter were as follows: (in thousands) Line of Credit Term Loans Mortgage Notes Total Remainder of 2020 $ — $ — $ 776 $ 776 2021 (1) — — 138,917 138,917 2022 (2) — 200,000 2,780 202,780 2023 (3) — — 48,799 48,799 2024 — 325,000 2,172 327,172 Thereafter — — 141,433 141,433 Total principal payments $ — $ 525,000 $ 334,877 $ 859,877 (1) Includes a $127.0 million floating-rate mortgage note with a maturity date of January 2021. The mortgage note may still be extended an additional one year, subject to certain conditions. (2) The term of this term loan may be extended pursuant to two one-year extension options, subject to certain conditions. (3) The term of the line of credit may be extended pursuant to two six-month extension options, subject to certain conditions. |
Summary of Location and Fair Value of Derivative Instruments | The following table summarizes the location and fair value of our derivative instruments on our condensed consolidated balance sheets: Number of Fair Value ($ in thousands) Contracts Notional Amount Other Assets Other Liabilities As of September 30, 2020 Interest rate swaps 14 $ 550,143 $ — $ 29,934 Interest rate caps 1 127,000 — — Total derivative instruments 15 $ 677,143 $ — $ 29,934 As of December 31, 2019 Interest rate swaps (1) 14 $ 601,005 $ 288 $ 13,308 Interest rate caps 1 146,600 — — Total derivative instruments 15 $ 747,605 $ 288 $ 13,308 (1) Includes four interest rate swaps with a combined notional amount of $200.0 million that became effective in January 2020 and three interest rate swaps with a combined notional of $150.0 million that expired in January 2020. |
Effect of Derivative Financial Instruments on Financial Statements | The following table presents the effect of our derivative instruments on our condensed consolidated financial statements: For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Derivative instruments designated as cash flow hedges: Loss recognized in AOCI $ (292) $ (3,438) $ (22,022) $ (16,461) Amount reclassified from AOCI into interest expense 2,570 (462) 5,148 (1,553) Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring — — — (1,374) Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 15,290 11,764 42,930 37,074 Derivative instruments not designated as cash flow hedges: Loss recognized in income $ (1) $ — $ (13) $ (25) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents our financial instruments measured at fair value on a recurring basis: Total (in thousands) Level 1 Level 2 Level 3 Fair Value As of September 30, 2020 Assets: Derivative instruments $ — $ — $ — $ — Total assets measured at fair value $ — $ — $ — $ — Liabilities: Derivative instruments $ — $ 29,934 $ — $ 29,934 Total liabilities measured at fair value $ — $ 29,934 $ — $ 29,934 As of December 31, 2019 Assets: Derivative instruments $ — $ 288 $ — $ 288 Total assets measured at fair value $ — $ 288 $ — $ 288 Liabilities: Derivative instruments $ — $ 13,308 $ — $ 13,308 Total liabilities measured at fair value $ — $ 13,308 $ — $ 13,308 |
Nonrecurring Fair Value Measurements | Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt-related investments $ 49,329 $ 48,969 $ 2,578 $ 2,604 DST Program Loans 42,104 42,104 19,404 19,404 Liabilities: Line of credit $ — $ — $ — $ — Term loans 525,000 518,942 525,000 525,000 Mortgage notes 334,877 333,124 327,857 326,447 (1) The carrying value reflects the principal amount outstanding. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of Public Offerings | A summary of our public offerings (including shares sold through the primary offering and distribution reinvestment plan (“DRIP”)) for the nine months ended September 30, 2020, is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 25,769 $ 23,400 $ 3,800 $ 28,963 $ — $ 81,932 DRIP 991 2,650 512 6,030 5,789 15,972 Total offering $ 26,760 $ 26,050 $ 4,312 $ 34,993 $ 5,789 $ 97,904 Number of shares sold: Primary offering 3,322 3,083 508 3,869 — 10,782 DRIP 132 353 69 804 776 2,134 Total offering 3,454 3,436 577 4,673 776 12,916 |
Information of Share Transactions | The following table describes the changes in each class of common shares during the periods presented below: Class T Class S Class D Class I Class E Total (in thousands) Shares Shares Shares Shares Shares Shares FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 Balance as of June 30, 2019 3,902 17,590 3,080 40,498 71,923 136,993 Issuance of common stock: Primary shares 668 1,932 292 1,658 — 4,550 Distribution reinvestment plan 19 104 20 280 295 718 Share-based compensation — — - 4 — 4 Redemptions of common stock (25) (108) (62) (351) (3,124) (3,670) Balance as September 30, 2019 4,564 19,518 3,330 42,089 69,094 138,595 FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 Balance as of June 30, 2020 8,510 21,870 3,783 44,311 63,301 141,775 Issuance of common stock: Primary shares 602 668 151 709 — 2,130 Distribution reinvestment plan 51 119 23 262 250 705 Share-based compensation — — — 4 — 4 Redemptions of common stock (22) (419) (38) (856) (1,471) (2,806) Balance as of September 30, 2020 9,141 22,238 3,919 44,430 62,080 141,808 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 Balance as of December 31, 2018 2,783 10,516 2,778 37,385 77,390 130,852 Issuance of common stock: Primary shares 2,032 8,870 806 5,132 — 16,840 Distribution reinvestment plan 59 255 59 792 915 2,080 Share-based compensation — — — 86 — 86 Redemptions of common stock (310) (123) (313) (1,306) (9,211) (11,263) Balance as of September 30, 2019 4,564 19,518 3,330 42,089 69,094 138,595 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 Balance as of December 31, 2019 5,852 20,593 3,499 43,732 66,804 140,480 Issuance of common stock: Primary shares 3,322 3,083 508 3,869 — 10,782 Distribution reinvestment plan 132 353 69 804 776 2,134 Share-based compensation — — — 20 — 20 Redemptions of common stock (165) (1,791) (157) (3,995) (5,500) (11,608) Balance as of September 30, 2020 9,141 22,238 3,919 44,430 62,080 141,808 |
Summary of Distribution Activity | The following table summarizes our distribution activity (including distributions to noncontrolling interests and distributions reinvested in shares of our common stock) for the periods below: Amount Common Stock Declared per Distributions Other Cash Reinvested in Total (in thousands, except per share data) Common Share (1) Paid in Cash Distributions (2) Shares Distributions 2020 March 31 $ 0.09375 $ 7,533 $ 1,721 $ 5,360 $ 14,614 June 30 0.09375 7,539 1,611 5,316 14,466 September 30 0.09375 7,482 1,592 5,282 14,356 Total $ 0.28125 $ 22,554 $ 4,924 $ 15,958 $ 43,436 2019 March 31 $ 0.09375 $ 7,198 $ 1,244 $ 4,997 $ 13,439 June 30 0.09375 7,303 1,312 5,180 13,795 September 30 0.09375 7,302 1,351 5,270 13,923 December 31 0.09375 7,412 1,396 5,294 14,102 Total $ 0.37500 $ 29,215 $ 5,303 $ 20,741 $ 55,259 (1) Amount reflects the total quarterly distribution rate, subject to adjustment for class-specific fees. (2) Includes other cash distributions consisting of (i) distributions paid to holders of partnership units (“OP Units”) in Black Creek Diversified Property Operating Partnership LP (the “Operating Partnership”); and (ii) ongoing distribution fees paid to Black Creek Capital Markets, LLC (the “Dealer Manager”) with respect to certain classes of our shares. See “Note 8” for further detail regarding the current and historical ongoing distribution fees. |
Redemptions and Repurchases Activity | Our board of directors may modify, suspend or terminate our current share redemption programs if it deems such action to be in the best interest of our stockholders. For the Nine Months Ended September 30, (in thousands, except for per share data) 2020 2019 Number of shares requested for redemption or repurchase 11,608 11,263 Number of shares redeemed or repurchased 11,608 11,263 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.50 $ 7.35 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Fees and Other Amounts Earned by Advisor | The following table summarizes the fees and expenses incurred by us in connection with offering and operation services provided by Black Creek Diversified Property Advisors LLC (the “Advisor”) and its affiliates, and by the Dealer Manager, and any related amounts payable: For the Three Months Ended September 30, For the Nine Months Ended September 30, Payable as of (in thousands) 2020 2019 2020 2019 September 30, 2020 December 31, 2019 Upfront selling commissions (1) $ 226 $ 449 $ 1,216 $ 1,556 $ — $ — Ongoing distribution fees (1) 515 379 1,482 964 171 147 Advisory fees - fixed component 3,181 3,008 9,597 8,808 891 998 Advisory fees—performance component 1,333 — 3,343 — 3,343 3,776 Other expense reimbursements—Advisor 2,691 2,636 7,271 7,399 1,590 2,240 Other expense reimbursements—Dealer Manager 3 135 213 496 — — DST Program advisory fees 1,029 515 3,069 1,079 407 247 DST Program selling commissions (1) 425 588 2,300 1,969 — — DST Program dealer manager fees (1) 122 78 744 311 — — DST Program other reimbursements—Dealer Manager 42 237 218 609 — — DST Program facilitation and loan origination fees 515 815 3,084 2,122 — — Total $ 10,082 $ 8,840 $ 32,537 $ 25,313 $ 6,402 $ 7,408 (1) All or a portion of these amounts will be retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers. |
NET INCOME (LOSS) PER COMMON _2
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Details of Numerator and Denominator Used to Calculate Basic and Diluted Net Income Per Common Share | The computation of our basic and diluted net income (loss) per share attributable to common stockholders is as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands, except per share data) 2020 2019 2020 2019 Net (loss) income attributable to common stockholders—basic $ (10,830) $ 7,291 $ (19,827) $ 88,292 Net loss attributable to redeemable OP Units (39) — (71) — Net (loss) income attributable to OP Units (839) 546 (1,515) 6,735 Net (loss) income attributable to common stockholders—diluted $ (11,708) $ 7,837 $ (21,413) $ 95,027 Weighted-average shares outstanding—basic 141,682 138,063 142,216 135,877 Incremental weighted-average shares effect of conversion of OP Units 11,484 10,360 11,449 10,422 Weighted-average shares outstanding—diluted 153,166 148,423 153,665 146,299 Net (loss) income per share attributable to common stockholders: Basic $ (0.08) $ 0.05 $ (0.14) $ 0.65 Diluted $ (0.08) $ 0.05 $ (0.14) $ 0.65 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Cash Flow Information | Supplemental cash flow information and disclosure of non-cash investing and financing activities is as follows: For the Nine Months Ended September 30, (in thousands) 2020 2019 Distributions reinvested in common stock $ 15,972 $ 15,310 Change in accrued future ongoing distribution fees 335 5,415 Repayment of property-level loans upon disposition of real estate property — 83,140 Increase in DST Program Loans receivable through DST Program capital raising 22,700 12,358 Redeemable noncontrolling interest issued as settlement of performance component of the Advisory fee 3,776 — Redemption value allocation adjustment to redeemable noncontrolling interest 281 — Mortgage notes assumed on real estate acquisitions at fair value 9,834 — Issuances of OP Units for DST Interests 11,240 — |
Schedule of Restricted Cash and Cash Equivalents | The following table presents the components of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated statements of cash flows: For the Nine Months Ended September 30, (in thousands) 2020 2019 Beginning of period: Cash and cash equivalents $ 97,772 $ 10,008 Restricted cash 10,010 7,030 Cash, cash equivalents and restricted cash $ 107,782 $ 17,038 End of period: Cash and cash equivalents $ 16,124 $ 26,372 Restricted cash 10,316 10,725 Cash, cash equivalents and restricted cash $ 26,440 $ 37,097 |
SEGMENT FINANCIAL INFORMATION (
SEGMENT FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Total Assets by Business Segment | The following table reflects our total assets by business segment as of September 30, 2020 and December 31, 2019: As of (in thousands) September 30, 2020 December 31, 2019 Assets: Office properties $ 461,993 $ 458,583 Retail properties 689,395 652,707 Multi-family properties 287,035 293,498 Industrial properties 338,924 207,844 Corporate 159,399 165,633 Total assets $ 1,936,746 $ 1,778,265 |
Revenue and Components of Net Operating Income | The following table sets forth the financial results by segment for the three and nine months ended September 30, 2020 and 2019: (in thousands) Office Retail Multi-family Industrial Consolidated For the Three Months Ended September 30, 2020 Rental revenues $ 16,237 $ 17,310 $ 4,351 $ 6,231 $ 44,129 Rental expenses (7,748) (4,535) (2,282) (1,316) (15,881) Net operating income $ 8,489 $ 12,775 $ 2,069 $ 4,915 $ 28,248 Real estate-related depreciation and amortization $ 4,851 $ 5,309 $ 2,234 $ 3,255 $ 15,649 For the Three Months Ended September 30, 2019 Rental revenues $ 20,470 $ 17,422 $ 2,945 $ 3,358 $ 44,195 Rental expenses (8,916) (4,323) (1,441) (680) (15,360) Net operating income $ 11,554 $ 13,099 $ 1,504 $ 2,678 $ 28,835 Real estate-related depreciation and amortization $ 6,281 $ 4,547 $ 2,008 $ 1,637 $ 14,473 For the Nine Months Ended September 30, 2020 Rental revenues $ 48,988 $ 53,053 $ 14,591 $ 16,363 $ 132,995 Rental expenses (23,061) (12,561) (6,638) (3,532) (45,792) Net operating income $ 25,927 $ 40,492 $ 7,953 $ 12,831 $ 87,203 Real estate-related depreciation and amortization $ 14,676 $ 14,867 $ 6,560 $ 8,455 $ 44,558 For the Nine Months Ended September 30, 2019 Rental revenues $ 74,383 $ 52,938 $ 2,945 $ 9,385 $ 139,651 Rental expenses (29,174) (12,986) (1,441) (2,044) (45,645) Net operating income $ 45,209 $ 39,952 $ 1,504 $ 7,341 $ 94,006 Real estate-related depreciation and amortization $ 21,268 $ 15,606 $ 2,008 $ 4,579 $ 43,461 |
Reconciliation of Net Operating Income to Reported Net Income | The following table is a reconciliation of our reported net income (loss) attributable to common stockholders to our net operating income for the three and nine months ended September 30, 2020 and 2019: For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2020 2019 2020 2019 Net (loss) income attributable to common stockholders $ (10,830) $ 7,291 $ (19,827) $ 88,292 Debt-related income (981) (35) (1,181) (193) Real estate-related depreciation and amortization 15,649 14,473 44,558 43,461 General and administrative expenses 2,217 2,181 6,611 6,325 Advisory fees, related party 5,543 3,523 16,009 9,887 Litigation expense 2,500 — 2,500 — Impairment of real estate property — 113 — 113 Other income (262) (131) (619) (156) Interest expense 15,290 11,764 42,930 37,074 Gain on sale of real estate property — (10,890) (2,192) (96,530) Gain on extinguishment of debt and financing commitments, net — — — (1,002) Net loss attributable to redeemable noncontrolling interests (39) — (71) — Net (loss) income attributable to noncontrolling interests (839) 546 (1,515) 6,735 Net operating income $ 28,248 $ 28,835 $ 87,203 $ 94,006 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Allowances for doubtful accounts | $ 1 | $ 0.8 |
INVESTMENTS IN REAL ESTATE PR_3
INVESTMENTS IN REAL ESTATE PROPERTIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019USD ($)property | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($)property | |
Real Estate Properties [Line Items] | |||
Intangible lease assets and liabilities acquired | 10 years 2 months 12 days | ||
Proceeds from disposition of real estate property | $ | $ 2,752 | $ 177,997 | |
Gain on sale of real estate property | $ | $ 10,890 | $ 2,192 | $ 96,530 |
Disposed of by Sale | Office | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | 3 | 3 | |
Disposed of by Sale | Retail | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | 1 | 1 | 1 |
Disposed of by Sale | Outparcel [Member] | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | 2 | 2 |
INVESTMENTS IN REAL ESTATE PR_4
INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Consolidated Investments in Real Estate Properties Excluding Properties Held for Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Real Estate [Abstract] | ||
Land | $ 449,812 | $ 418,037 |
Buildings and improvements | 1,535,621 | 1,375,192 |
Intangible lease assets | 281,275 | 264,121 |
Investment in real estate properties | 2,266,708 | 2,057,350 |
Accumulated depreciation and amortization | 489,361 | 444,718 |
Net investment in real estate properties | $ 1,777,347 | $ 1,612,632 |
INVESTMENTS IN REAL ESTATE PR_5
INVESTMENTS IN REAL ESTATE PROPERTIES (Property Acquisitions) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Business Acquisition [Line Items] | |
Total acquisitions | $ 177,058 |
Debt assumed at fair value | 9,800 |
Principal amount of debt | 9,200 |
Village at Lee Branch | |
Business Acquisition [Line Items] | |
Total acquisitions | 41,665 |
Railhead DC (2) | |
Business Acquisition [Line Items] | |
Total acquisitions | 19,295 |
Tri-County DC II B | |
Business Acquisition [Line Items] | |
Total acquisitions | 2,884 |
Sterling IC | |
Business Acquisition [Line Items] | |
Total acquisitions | 5,118 |
Clayton Commerce Center | |
Business Acquisition [Line Items] | |
Total acquisitions | 59,289 |
Bay Area Commerce Center | |
Business Acquisition [Line Items] | |
Total acquisitions | $ 48,807 |
INVESTMENTS IN REAL ESTATE PR_6
INVESTMENTS IN REAL ESTATE PROPERTIES (Purchase Price Allocation) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Real Estate [Abstract] | |
Land | $ 32,547 |
Building | 128,946 |
Intangible lease assets | 15,510 |
Above-market lease assets | 1,835 |
Below-market lease liabilities | (1,780) |
Total purchase price (1) | $ 177,058 |
INVESTMENTS IN REAL ESTATE PR_7
INVESTMENTS IN REAL ESTATE PROPERTIES (Intangible Leased Assets and Liabilities Excluding Properties Held for Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Intangible lease assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Assets | $ 258,021 | $ 242,704 |
Accumulated Amortization, Assets | (210,595) | (200,623) |
Net, Assets | 47,426 | 42,081 |
Above-market lease assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Assets | 23,254 | 21,417 |
Accumulated Amortization, Assets | (21,134) | (20,859) |
Net, Assets | 2,120 | 558 |
Below-market lease liabilities | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Liabilities | (81,403) | (80,002) |
Accumulated Amortization, Liabilities | 38,830 | 36,499 |
Net, Liabilities | $ (42,573) | $ (43,503) |
INVESTMENTS IN REAL ESTATE PR_8
INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Adjustments to Rental Revenue Related to Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Straight-line rent adjustments | $ 1,322 | $ 855 | $ 3,947 | $ 7,763 |
Depreciation expense | 12,406 | 10,416 | 34,660 | 31,036 |
Intangible lease asset amortization | 3,243 | 4,057 | 9,898 | 12,425 |
Above-market lease assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of above and below Market Leases | (157) | (125) | (275) | (657) |
Below-market lease | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of above and below Market Leases | $ 781 | $ 986 | $ 2,505 | $ 3,146 |
DEBT (Schedule of Debt) (Detail
DEBT (Schedule of Debt) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.21% | 3.36% |
Total borrowings | $ 859,877,000 | $ 852,857,000 |
Less: unamortized debt issuance costs | (4,768,000) | (6,535,000) |
Add: mark-to-market adjustment on assumed debt | 675,000 | 245,000 |
Total debt, net | 855,784,000 | 846,567,000 |
Gross book value of properties encumbered by debt | $ 563,755,000 | $ 535,196,000 |
Assets Held for Sale | ||
Debt Instrument [Line Items] | ||
Weighted average maturity of debt investments | 2 years 9 months 18 days | |
LIBOR | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.25% | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 1.55% | 3.16% |
Total borrowings | $ 0 | $ 0 |
Current borrowing capacity | 450,000,000 | |
Available portions under the line of credit | $ 219,500,000 | |
Line of Credit | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.30% | |
Line of Credit | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.10% | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 525,000,000 | |
Term Loan | Term Loan Due January 2024 | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.27% | 3.04% |
Total borrowings | $ 325,000,000 | $ 325,000,000 |
Maximum borrowing capacity | 325,000,000 | |
Current borrowing capacity | 0 | |
Long-term line of credit | $ 300,000,000 | |
Term Loan | Term Loan Due January 2024 | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.25% | |
Term Loan | Term Loan Due January 2024 | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.05% | |
Term Loan | Term Loan Due February 2022 | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.29% | 3.29% |
Total borrowings | $ 200,000,000 | $ 200,000,000 |
Maximum borrowing capacity | 200,000,000 | |
Current borrowing capacity | $ 0 | |
Term Loan | Term Loan Due February 2022 | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.25% | |
Term Loan | Term Loan Due February 2022 | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.05% | |
Fixed-Rate Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.53% | 3.52% |
Total borrowings | $ 207,877,000 | $ 200,857,000 |
Fixed-Rate Mortgage Notes | Preston Sherry Plaza | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 50,100,000 | |
Outstanding borrowings spread over LIBOR | 1.65% | |
Effective interest rate on debt | 2.85% | |
Floating-Rate Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 2.40% | 4.01% |
Total borrowings | $ 127,000,000 | $ 127,000,000 |
Floating-Rate Mortgage Notes | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.25% | 2.25% |
Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 334,877,000 |
DEBT (Summary of Borrowings Ref
DEBT (Summary of Borrowings Reflects Contractual Debt Maturities) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Remainder of 2020 | $ 776 | |
2021 | 138,917 | |
2022 | 202,780 | |
2023 | 48,799 | |
2024 | 327,172 | |
Thereafter | 141,433 | |
Total principal payments | 859,877 | $ 852,857 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Remainder of 2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total principal payments | $ 0 | $ 0 |
Line of Credit | $200 Million Term | ||
Debt Instrument [Line Items] | ||
Term of extension | 1 year | |
Number of extension options | item | 2 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Remainder of 2020 | $ 0 | |
2021 | 0 | |
2022 | 200,000 | |
2023 | 0 | |
2024 | 325,000 | |
Thereafter | 0 | |
Total principal payments | $ 525,000 | |
Term Loan | Floating-Rate Mortgage Note Expiring in January 2021 | ||
Debt Instrument [Line Items] | ||
Term of extension | 6 months | |
Number of line of credit extensions | item | 2 | |
Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Remainder of 2020 | $ 776 | |
2021 | 138,917 | |
2022 | 2,780 | |
2023 | 48,799 | |
2024 | 2,172 | |
Thereafter | 141,433 | |
Total principal payments | $ 334,877 | |
Term of extension | 1 year | |
Mortgage Notes | Floating-Rate Mortgage Note Expiring in January 2021 | ||
Debt Instrument [Line Items] | ||
Amount of debt instrument | $ 127,000 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) $ in Millions | Sep. 30, 2020USD ($) |
Derivative [Line Items] | |
Estimated increase to interest expense related to active effective hedges of floating rate debt | $ 10.1 |
Interest rate swaps | |
Derivative [Line Items] | |
Estimated increase to interest expense related to termination of hedging instrument | $ 0.1 |
DEBT (Summary of Location and F
DEBT (Summary of Location and Fair Value of Derivative Instruments) (Details) $ in Thousands | Sep. 30, 2020USD ($)contract | Jan. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract |
Derivatives, Fair Value [Line Items] | |||
Number of derivative contracts | contract | 15 | 15 | |
Total notional amount | $ 677,143 | $ 747,605 | |
Other Assets. | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0 | 288 | |
Other Liabilities. | |||
Derivatives, Fair Value [Line Items] | |||
Derivative instruments | $ 29,934 | $ 13,308 | |
Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Number of derivative contracts | contract | 14 | 4 | 14 |
Total notional amount | $ 550,143 | $ 200,000 | $ 601,005 |
Interest rate swaps | Other Assets. | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0 | 288 | |
Interest rate swaps | Other Liabilities. | |||
Derivatives, Fair Value [Line Items] | |||
Derivative instruments | $ 29,934 | $ 13,308 | |
Interest rate caps | |||
Derivatives, Fair Value [Line Items] | |||
Number of derivative contracts | contract | 1 | 1 | |
Total notional amount | $ 127,000 | $ 146,600 | |
Interest rate caps | Other Assets. | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0 | 0 | |
Interest rate caps | Other Liabilities. | |||
Derivatives, Fair Value [Line Items] | |||
Derivative instruments | $ 0 | $ 0 | |
Interest rate swaps expiring Jan 2020 | |||
Derivatives, Fair Value [Line Items] | |||
Number of expiring interest rate derivatives | contract | 3 | ||
Notional amount expiring | $ 150,000 |
DEBT (Effect of Derivative Fina
DEBT (Effect of Derivative Financial Instruments on Financial Statements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded | $ 15,290 | $ 11,764 | $ 42,930 | $ 37,074 |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss recognized in income | (1) | 0 | (13) | (25) |
Cash Flow Hedging | Designated Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss recognized in AOCI | (292) | (3,438) | (22,022) | (16,461) |
Amount reclassified from AOCI into interest expense | 2,570 | (462) | 5,148 | (1,553) |
Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring | $ 0 | $ 0 | $ 0 | $ (1,374) |
DST PROGRAM (Details)
DST PROGRAM (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||||
Rent obligations | $ 15,290 | $ 11,764 | $ 42,930 | $ 37,074 | |
DST Program Loans | 42,104 | 42,104 | $ 19,404 | ||
DST Program | |||||
Variable Interest Entity [Line Items] | |||||
Proceeds from private placement | 202,300 | ||||
Rent obligations | 13,700 | ||||
Issuances of OP Units for DST Interests | 11,300 | ||||
DST Program Loans | $ 42,100 | 42,100 | |||
DST interests sold during period | $ 22,700 | ||||
DST Program | OP Units | |||||
Variable Interest Entity [Line Items] | |||||
Issuance of stock (in shares) | 1.5 |
FAIR VALUE (Measured on Recurri
FAIR VALUE (Measured on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Derivative instruments | $ 0 | $ 288 |
Total assets measured at fair value | 0 | 288 |
Liabilities: | ||
Derivative instruments | 29,934 | 13,308 |
Total liabilities measured at fair value | 29,934 | 13,308 |
Level 1 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Derivative instruments | 0 | 288 |
Total assets measured at fair value | 0 | 288 |
Liabilities: | ||
Derivative instruments | 29,934 | 13,308 |
Total liabilities measured at fair value | 29,934 | 13,308 |
Level 3 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities measured at fair value | $ 0 | $ 0 |
FAIR VALUE (Measured on Nonrecu
FAIR VALUE (Measured on Nonrecurring Basis) (Details) - Level 3 - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Debt-related investments | $ 49,329 | $ 2,578 |
DST Program Loans | 42,104 | 19,404 |
Line of credit | 0 | 0 |
Term loans | 525,000 | 525,000 |
Mortgage notes | 334,877 | 327,857 |
Estimated Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Debt-related investments | 48,969 | 2,604 |
DST Program Loans | 42,104 | 19,404 |
Line of credit | 0 | 0 |
Term loans | 518,942 | 525,000 |
Mortgage notes | $ 333,124 | $ 326,447 |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Public Offerings) (Details) shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)shares | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 97,904 |
Number of shares sold | shares | 12,916 |
Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 26,760 |
Number of shares sold | shares | 3,454 |
Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 26,050 |
Number of shares sold | shares | 3,436 |
Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 4,312 |
Number of shares sold | shares | 577 |
Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 34,993 |
Number of shares sold | shares | 4,673 |
Class E | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 5,789 |
Number of shares sold | shares | 776 |
Primary offering | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 81,932 |
Number of shares sold | shares | 10,782 |
Primary offering | Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 25,769 |
Number of shares sold | shares | 3,322 |
Primary offering | Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 23,400 |
Number of shares sold | shares | 3,083 |
Primary offering | Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 3,800 |
Number of shares sold | shares | 508 |
Primary offering | Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 28,963 |
Number of shares sold | shares | 3,869 |
Primary offering | Class E | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 0 |
Number of shares sold | shares | 0 |
DRIP Offering | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 15,972 |
Number of shares sold | shares | 2,134 |
DRIP Offering | Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 991 |
Number of shares sold | shares | 132 |
DRIP Offering | Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 2,650 |
Number of shares sold | shares | 353 |
DRIP Offering | Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 512 |
Number of shares sold | shares | 69 |
DRIP Offering | Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 6,030 |
Number of shares sold | shares | 804 |
DRIP Offering | Class E | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 5,789 |
Number of shares sold | shares | 776 |
STOCKHOLDERS' EQUITY (Informati
STOCKHOLDERS' EQUITY (Information of Share Transactions) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Redemptions of common stock (in shares) | (11,608) | (11,263) | ||
Class T | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 8,510 | 3,902 | 5,852 | 2,783 |
Primary shares (in shares) | 602 | 668 | 3,322 | 2,032 |
Distribution reinvestment plan (in shares) | 51 | 19 | 132 | 59 |
Stock-based compensation (in shares) | 0 | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (22) | (25) | (165) | (310) |
Ending balance (in shares) | 9,141 | 4,564 | 9,141 | 4,564 |
Class S | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 21,870 | 17,590 | 20,593 | 10,516 |
Primary shares (in shares) | 668 | 1,932 | 3,083 | 8,870 |
Distribution reinvestment plan (in shares) | 119 | 104 | 353 | 255 |
Stock-based compensation (in shares) | 0 | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (419) | (108) | (1,791) | (123) |
Ending balance (in shares) | 22,238 | 19,518 | 22,238 | 19,518 |
Class D | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 3,783 | 3,080 | 3,499 | 2,778 |
Primary shares (in shares) | 151 | 292 | 508 | 806 |
Distribution reinvestment plan (in shares) | 23 | 20 | 69 | 59 |
Stock-based compensation (in shares) | 0 | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (38) | (62) | (157) | (313) |
Ending balance (in shares) | 3,919 | 3,330 | 3,919 | 3,330 |
Class I | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 44,311 | 40,498 | 43,732 | 37,385 |
Primary shares (in shares) | 709 | 1,658 | 3,869 | 5,132 |
Distribution reinvestment plan (in shares) | 262 | 280 | 804 | 792 |
Stock-based compensation (in shares) | 4 | 4 | 20 | 86 |
Redemptions of common stock (in shares) | (856) | (351) | (3,995) | (1,306) |
Ending balance (in shares) | 44,430 | 42,089 | 44,430 | 42,089 |
Class E | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 63,301 | 71,923 | 66,804 | 77,390 |
Primary shares (in shares) | 0 | 0 | 0 | 0 |
Distribution reinvestment plan (in shares) | 250 | 295 | 776 | 915 |
Stock-based compensation (in shares) | 0 | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (1,471) | (3,124) | (5,500) | (9,211) |
Ending balance (in shares) | 62,080 | 69,094 | 62,080 | 69,094 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 141,775 | 136,993 | 140,480 | 130,852 |
Primary shares (in shares) | 2,130 | 4,550 | 10,782 | 16,840 |
Distribution reinvestment plan (in shares) | 705 | 718 | 2,134 | 2,080 |
Stock-based compensation (in shares) | 4 | 4 | 20 | 86 |
Redemptions of common stock (in shares) | (2,806) | (3,670) | (11,608) | (11,263) |
Ending balance (in shares) | 141,808 | 138,595 | 141,808 | 138,595 |
STOCKHOLDERS' EQUITY (Total Dis
STOCKHOLDERS' EQUITY (Total Distributions Declared and Portion of Each Contribution Paid in Cash and Reinvested) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||||||||
Declared per Common Share (usd per share) | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.28125 | $ 0.37500 |
Common Stock Distributions Paid in Cash | $ 7,482 | $ 7,539 | $ 7,533 | $ 7,412 | $ 7,302 | $ 7,303 | $ 7,198 | $ 22,554 | $ 29,215 |
Other Cash Distributions | 1,592 | 1,611 | 1,721 | 1,396 | 1,351 | 1,312 | 1,244 | 4,924 | 5,303 |
Reinvested in Shares | 5,282 | 5,316 | 5,360 | 5,294 | 5,270 | 5,180 | 4,997 | 15,958 | 20,741 |
Total Distributions | $ 14,356 | $ 14,466 | $ 14,614 | $ 14,102 | $ 13,923 | $ 13,795 | $ 13,439 | $ 43,436 | $ 55,259 |
STOCKHOLDERS' EQUITY (Redemptio
STOCKHOLDERS' EQUITY (Redemptions and Repurchases Activity) (Details) - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||
Number of shares requested for redemption or repurchase (in shares) | 11,608 | 11,263 |
Number of shares redeemed or repurchased (in shares) | 11,608 | 11,263 |
% of shares requested that were redeemed or repurchased | 100.00% | 100.00% |
Average redemption or repurchase price per share (usd per share) | $ 7.50 | $ 7.35 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Related party transaction expense | $ 10,082 | $ 8,840 | $ 32,537 | $ 25,313 | |
Payable as of | 6,402 | 6,402 | $ 7,408 | ||
Upfront selling commissions | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 226 | 449 | 1,216 | 1,556 | |
Payable as of | 0 | 0 | 0 | ||
Ongoing distribution fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 515 | 379 | 1,482 | 964 | |
Payable as of | 171 | 171 | 147 | ||
Advisory fees - fixed component | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 3,181 | 3,008 | 9,597 | 8,808 | |
Payable as of | 891 | 891 | 998 | ||
Advisory fees - performance component | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 1,333 | 0 | 3,343 | 0 | |
Payable as of | 3,343 | 3,343 | 3,776 | ||
Other expense reimbursements - Advisor | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 2,691 | 2,636 | 7,271 | 7,399 | |
Payable as of | 1,590 | 1,590 | 2,240 | ||
Other expense reimbursements - Dealer Manager | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 3 | 135 | 213 | 496 | |
Payable as of | 0 | 0 | 0 | ||
DST Program advisory fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 1,029 | 515 | 3,069 | 1,079 | |
Payable as of | 407 | 407 | 247 | ||
DST Program selling commissions | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 425 | 588 | 2,300 | 1,969 | |
Payable as of | 0 | 0 | 0 | ||
DST Program dealer manager fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 122 | 78 | 744 | 311 | |
Payable as of | 0 | 0 | 0 | ||
DST Program other reimbursements - Dealer Manager | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 42 | 237 | 218 | 609 | |
Payable as of | 0 | 0 | 0 | ||
DST Program facilitation and loan origination fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 515 | $ 815 | 3,084 | $ 2,122 | |
Payable as of | $ 0 | $ 0 | $ 0 |
NET INCOME (LOSS) PER COMMON _3
NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to common stockholders-basic | $ (10,830) | $ 7,291 | $ (19,827) | $ 88,292 |
Net loss attributable to redeemable OP Units | (39) | 0 | (71) | 0 |
Net (loss) income attributable to OP Units | (839) | 546 | (1,515) | 6,735 |
Net (loss) income attributable to common stockholders-diluted | $ (11,708) | $ 7,837 | $ (21,413) | $ 95,027 |
Weighted-average shares outstanding-basic (in shares) | 141,682 | 138,063 | 142,216 | 135,877 |
Incremental weighted-average shares effect of conversion of OP Units (in shares) | 11,484 | 10,360 | 11,449 | 10,422 |
Weighted-average shares outstanding-diluted (in shares) | 153,166 | 148,423 | 153,665 | 146,299 |
Basic (usd per share) | $ (0.08) | $ 0.05 | $ (0.14) | $ 0.65 |
Diluted (usd per share) | $ (0.08) | $ 0.05 | $ (0.14) | $ 0.65 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncash Investing and Financing Items [Abstract] | ||||
Distributions reinvested in common stock | $ 15,972 | $ 15,310 | ||
Change in accrued future ongoing distribution fees | 335 | 5,415 | ||
Repayment of property-level loans upon disposition of real estate property | 0 | 83,140 | ||
Increase in DST Program Loans receivable through DST Program capital raising | 22,700 | 12,358 | ||
Redeemable noncontrolling interest issued as settlement of performance component of the Advisory fee | 3,776 | 0 | ||
Redemption value allocation adjustment to redeemable noncontrolling interest | 281 | 0 | ||
Mortgage notes assumed on real estate acquisitions at fair value | 9,834 | 0 | ||
Issuances of OP Units for DST Interests | 11,240 | 0 | ||
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | 16,124 | 26,372 | $ 97,772 | $ 10,008 |
Restricted cash | 10,316 | 10,725 | 10,010 | 7,030 |
Cash, cash equivalents and restricted cash | $ 26,440 | $ 37,097 | $ 107,782 | $ 17,038 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Litigation expense | $ 2,500 | $ 0 | $ 2,500 | $ 0 |
SEGMENT FINANCIAL INFORMATION_2
SEGMENT FINANCIAL INFORMATION (Schedule of Total Assets by Business Segment) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Number of reportable segments | segment | 4 | |
Total assets | $ 1,936,746 | $ 1,778,265 |
Operating Segments | Office | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 461,993 | 458,583 |
Operating Segments | Retail properties | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 689,395 | 652,707 |
Operating Segments | Multi-family properties | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 287,035 | 293,498 |
Operating Segments | Industrial properties | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 338,924 | 207,844 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 159,399 | $ 165,633 |
SEGMENT FINANCIAL INFORMATION_3
SEGMENT FINANCIAL INFORMATION (Revenue and Components of Net Operating Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Rental revenues | $ 44,129 | $ 44,195 | $ 132,995 | $ 139,651 |
Rental expenses | (15,881) | (15,360) | (45,792) | (45,645) |
Net operating income | 28,248 | 28,835 | 87,203 | 94,006 |
Real estate-related depreciation and amortization | 15,649 | 14,473 | 44,558 | 43,461 |
Office | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 16,237 | 20,470 | 48,988 | 74,383 |
Rental expenses | (7,748) | (8,916) | (23,061) | (29,174) |
Net operating income | 8,489 | 11,554 | 25,927 | 45,209 |
Real estate-related depreciation and amortization | 4,851 | 6,281 | 14,676 | 21,268 |
Retail properties | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 17,310 | 17,422 | 53,053 | 52,938 |
Rental expenses | (4,535) | (4,323) | (12,561) | (12,986) |
Net operating income | 12,775 | 13,099 | 40,492 | 39,952 |
Real estate-related depreciation and amortization | 5,309 | 4,547 | 14,867 | 15,606 |
Multi-family properties | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 4,351 | 2,945 | 14,591 | 2,945 |
Rental expenses | (2,282) | (1,441) | (6,638) | (1,441) |
Net operating income | 2,069 | 1,504 | 7,953 | 1,504 |
Real estate-related depreciation and amortization | 2,234 | 2,008 | 6,560 | 2,008 |
Industrial properties | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 6,231 | 3,358 | 16,363 | 9,385 |
Rental expenses | (1,316) | (680) | (3,532) | (2,044) |
Net operating income | 4,915 | 2,678 | 12,831 | 7,341 |
Real estate-related depreciation and amortization | $ 3,255 | $ 1,637 | $ 8,455 | $ 4,579 |
SEGMENT FINANCIAL INFORMATION_4
SEGMENT FINANCIAL INFORMATION (Reconciliation of Net Operating Income to Reported Net Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of net operating income attributable to common shareholders | ||||
Net (loss) income attributable to common stockholders | $ (10,830) | $ 7,291 | $ (19,827) | $ 88,292 |
Debt-related income | (981) | (35) | (1,181) | (193) |
Real estate-related depreciation and amortization | 15,649 | 14,473 | 44,558 | 43,461 |
General and administrative expenses | 2,217 | 2,181 | 6,611 | 6,325 |
Advisory fees, related party | 5,543 | 3,523 | 16,009 | 9,887 |
Litigation expense | 2,500 | 0 | 2,500 | 0 |
Impairment of real estate property | 113 | 113 | ||
Other income | (262) | (131) | (619) | (156) |
Interest expense | 15,290 | 11,764 | 42,930 | 37,074 |
Gain on sale of real estate property | (10,890) | (2,192) | (96,530) | |
Gain on extinguishment of debt and financing commitments, net | 0 | (1,002) | ||
Net loss attributable to redeemable noncontrolling interests | (39) | 0 | (71) | 0 |
Net (loss) income attributable to noncontrolling interests | (839) | 546 | (1,515) | 6,735 |
Net operating income | $ 28,248 | $ 28,835 | $ 87,203 | $ 94,006 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Oct. 20, 2020USD ($) | Nov. 10, 2020USD ($)property | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($)property |
Subsequent Event [Line Items] | ||||
Real estate acquisitions | $ 162,114 | $ 257,506 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Real estate acquisitions | $ 97,700 | |||
Proceeds from Sale of Real Estate | $ 25,000 | |||
Real Estate Acquired [Member] | Industrial | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of real estate properties | property | 1 | |||
Real Estate Acquired [Member] | Multifamily [Member] | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of real estate properties | property | 1 | |||
Disposed of by Sale | Retail | ||||
Subsequent Event [Line Items] | ||||
Number of real estate properties | property | 1 | 1 | ||
Disposed of by Sale | Retail | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Carrying value of real estate property at closing date | $ 15,200 |