Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 04, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-52596 | |
Entity Registrant Name | BLACK CREEK DIVERSIFIED PROPERTY FUND INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 30-0309068 | |
Entity Address, Address Line One | 518 Seventeenth Street, 17th Floor | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 228-2200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001327978 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class T | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15,452,925 | |
Class S | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,065,634 | |
Class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,384,703 | |
Class I | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 52,893,075 | |
Class E | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 56,629,226 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Net investment in real estate properties | $ 2,196,663 | $ 1,954,573 |
Debt-related investments, net | 47,804 | 49,628 |
Cash and cash equivalents | 12,463 | 11,266 |
Restricted cash | 10,533 | 10,468 |
DST Program Loans | 58,276 | 45,229 |
Other assets | 52,404 | 40,396 |
Total assets | 2,378,143 | 2,111,560 |
Liabilities | ||
Accounts payable and accrued expenses | 51,060 | 40,371 |
Debt, net | 919,185 | 965,305 |
Intangible lease liabilities, net | 51,536 | 40,457 |
Financing obligations, net | 623,050 | 502,533 |
Other liabilities | 66,370 | 61,205 |
Total liabilities | 1,711,201 | 1,609,871 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interest | 8,624 | 3,798 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value - 200,000 shares authorized, none issued and outstanding | ||
Additional paid-in capital | 1,389,823 | 1,269,146 |
Distributions in excess of earnings | (859,050) | (841,496) |
Accumulated other comprehensive loss | (18,289) | (27,431) |
Total stockholders' equity | 514,088 | 401,649 |
Noncontrolling interests | 144,230 | 96,242 |
Total equity | 658,318 | 497,891 |
Total liabilities and equity | 2,378,143 | 2,111,560 |
Class E | ||
Stockholders' equity: | ||
Common stock | 573 | 609 |
Class T | ||
Stockholders' equity: | ||
Common stock | 137 | 98 |
Class S | ||
Stockholders' equity: | ||
Common stock | 321 | 235 |
Class D | ||
Stockholders' equity: | ||
Common stock | 60 | 41 |
Class I | ||
Stockholders' equity: | ||
Common stock | $ 513 | $ 447 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
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) | 57,259 | 60,873 |
Common stock, shares outstanding (in shares) | 57,259 | 60,873 |
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) | 13,682 | 9,831 |
Common stock, shares outstanding (in shares) | 13,682 | 9,831 |
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) | 32,148 | 23,516 |
Common stock, shares outstanding (in shares) | 32,148 | 23,516 |
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) | 5,990 | 4,098 |
Common stock, shares outstanding (in shares) | 5,990 | 4,098 |
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) | 51,306 | 44,723 |
Common stock, shares outstanding (in shares) | 51,306 | 44,723 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Rental revenues | $ 53,596 | $ 44,129 | $ 152,657 | $ 132,995 |
Debt-related income | 2,298 | 981 | 6,741 | 1,181 |
Total revenues | 55,894 | 45,110 | 159,398 | 134,176 |
Operating expenses: | ||||
Rental expenses | 17,842 | 15,881 | 52,318 | 45,792 |
Real estate-related depreciation and amortization | 18,821 | 15,649 | 52,728 | 44,558 |
General and administrative expenses | 2,183 | 1,977 | 6,582 | 5,769 |
Advisory fees, related party | 5,480 | 4,210 | 15,389 | 12,666 |
Performance participation allocation | 3,774 | 1,333 | 7,769 | 3,343 |
Acquisition costs and reimbursements | 738 | 240 | 1,451 | 842 |
Litigation expense | 0 | 2,500 | 0 | 2,500 |
Impairment of real estate property | 0 | 0 | 758 | 0 |
Total operating expenses | 48,838 | 41,790 | 136,995 | 115,470 |
Other expenses (income): | ||||
Interest expense | 17,866 | 15,290 | 51,477 | 42,930 |
Gain on sale of real estate property | (25,979) | 0 | (53,321) | (2,192) |
Other income | (524) | (262) | (1,274) | (619) |
Total other expenses (income) | (8,637) | 15,028 | (3,118) | 40,119 |
Net income (loss) | 15,693 | (11,708) | 25,521 | (21,413) |
Net (income) loss attributable to redeemable noncontrolling interests | (99) | 39 | (169) | 71 |
Net (income) loss attributable to noncontrolling interests | (1,654) | 839 | (2,430) | 1,515 |
Net income (loss) attributable to common stockholders | $ 13,940 | $ (10,830) | $ 22,922 | $ (19,827) |
Weighted average number of common shares outstanding | ||||
Weighted-average shares outstanding - basic | 157,025 | 141,682 | 151,045 | 142,216 |
Weighted-average shares outstanding - diluted | 176,777 | 153,166 | 168,475 | 153,665 |
Net income (loss) attributable to common stockholders per common share - basic | $ 0.09 | $ (0.08) | $ 0.15 | $ (0.14) |
Net income (loss) attributable to common stockholders per common share - diluted | $ 0.09 | $ (0.08) | $ 0.15 | $ (0.14) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 15,693 | $ (11,708) | $ 25,521 | $ (21,413) |
Change from cash flow hedging derivatives | 2,313 | 2,278 | 10,259 | (16,874) |
Comprehensive income (loss) | 18,006 | (9,430) | 35,780 | (38,287) |
Comprehensive (income) loss attributable to redeemable noncontrolling interests | (114) | 31 | (239) | 126 |
Comprehensive (income) loss attributable to noncontrolling interests | (1,940) | 678 | (3,477) | 2,769 |
Comprehensive income (loss) attributable to common stockholders | $ 15,952 | $ (8,721) | $ 32,064 | $ (35,392) |
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, 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 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 (in shares) | 20 | |||||
Share-based compensation, net of forfeitures | 150 | $ 150 | ||||
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 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 (in shares) | 4 | |||||
Share-based compensation, net of forfeitures | 32 | 32 | ||||
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) | (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 |
Beginning Balances (in shares) at Dec. 31, 2020 | 143,041 | |||||
Beginning Balances at Dec. 31, 2020 | $ 1,430 | 1,269,146 | (841,496) | (27,431) | 96,242 | 497,891 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) (excluding portion attributable to redeemable noncontrolling interest) | 22,922 | 2,430 | 25,352 | |||
Unrealized gain (loss) from derivative instruments (excluding portion attributable to redeemable noncontrolling interest) | 9,142 | 1,047 | 10,189 | |||
Issuance of common stock, net of offering costs (in shares) | 23,916 | |||||
Issuance of common stock, net of offering costs | $ 239 | 173,196 | 173,435 | |||
Share-based compensation, net of forfeitures (in shares) | 29 | |||||
Share-based compensation, net of forfeitures | 217 | $ 217 | ||||
Redemptions of common stock (in shares) | (6,601) | (6,601) | ||||
Redemptions of common stock | $ (65) | (50,065) | $ (50,130) | |||
Amortization of share-based compensation | (72) | (72) | ||||
Issuances of OP Units for DST Interests | 57,729 | 57,729 | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees (excludes attributable to redeemable noncontrolling interest) | (2,001) | (40,476) | (9,231) | (51,708) | ||
Redemption value allocation adjustment to redeemable noncontrolling interest | (293) | (293) | ||||
Redemptions of noncontrolling interests | (305) | (3,987) | (4,292) | |||
Ending Balances (in shares) at Sep. 30, 2021 | 160,385 | |||||
Ending Balances at Sep. 30, 2021 | $ 1,604 | 1,389,823 | (859,050) | (18,289) | 144,230 | 658,318 |
Beginning Balances (in shares) at Jun. 30, 2021 | 152,021 | |||||
Beginning Balances at Jun. 30, 2021 | $ 1,520 | 1,330,413 | (859,021) | (20,301) | 116,306 | 568,917 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) (excluding portion attributable to redeemable noncontrolling interest) | 13,940 | 1,654 | 15,594 | |||
Unrealized gain (loss) from derivative instruments (excluding portion attributable to redeemable noncontrolling interest) | 2,012 | 286 | 2,298 | |||
Issuance of common stock, net of offering costs (in shares) | 10,268 | |||||
Issuance of common stock, net of offering costs | $ 103 | 75,114 | 75,217 | |||
Share-based compensation, net of forfeitures (in shares) | 21 | |||||
Share-based compensation, net of forfeitures | 160 | 160 | ||||
Redemptions of common stock (in shares) | (1,925) | |||||
Redemptions of common stock | $ (19) | (14,731) | (14,750) | |||
Amortization of share-based compensation | (100) | (100) | ||||
Issuances of OP Units for DST Interests | 31,788 | 31,788 | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees (excludes attributable to redeemable noncontrolling interest) | (759) | (13,969) | (4,000) | (18,728) | ||
Redemption value allocation adjustment to redeemable noncontrolling interest | (108) | (108) | ||||
Redemptions of noncontrolling interests | (166) | (1,804) | (1,970) | |||
Ending Balances (in shares) at Sep. 30, 2021 | 160,385 | |||||
Ending Balances at Sep. 30, 2021 | $ 1,604 | $ 1,389,823 | $ (859,050) | $ (18,289) | $ 144,230 | $ 658,318 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Net income (loss) attributable to redeemable noncontrolling interests | $ 99 | $ (39) | $ 169 | $ (71) |
Unrealized gain (loss) from derivative instruments allocated to redeemable noncontrolling interest | 15 | 8 | 70 | (55) |
Distribution fees attributable to redeemable noncontrolling interest | $ 106 | $ 47 | $ 314 | $ 141 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net income (loss) | $ 25,521 | $ (21,413) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Real estate-related depreciation and amortization | 52,728 | 44,558 |
Straight-line rent and amortization of above- and below-market leases | (6,759) | (6,177) |
Gain on sale of real estate property | (53,321) | (2,192) |
Impairment of real estate property | 758 | 0 |
Other | 10,991 | 9,220 |
Changes in operating assets and liabilities | 8,832 | 4,851 |
Net cash provided by operating activities | 38,750 | 28,847 |
Investing activities: | ||
Real estate acquisitions | (346,480) | (162,114) |
Capital expenditures | (22,725) | (28,659) |
Proceeds from disposition of real estate property | 141,360 | 2,752 |
Principal collections on debt-related investments | 2,405 | 129 |
Investment in debt-related investments | (402) | (45,539) |
Other | (333) | (3,355) |
Net cash used in investing activities | (226,175) | (236,786) |
Financing activities: | ||
Repayments of mortgage notes | (26,241) | (2,223) |
Net repayments of line of credit | (21,000) | 0 |
Redemptions of common stock | (50,130) | (87,065) |
Distributions paid to common stockholders | (23,002) | (22,527) |
Proceeds from issuance of common stock | 166,750 | 81,932 |
Proceeds from financing obligations, net | 163,018 | 179,592 |
Offering costs for issuance of common stock and private placements | (8,689) | (7,331) |
Distributions paid to noncontrolling interest holders and redeemable noncontrolling interest holders | (4,550) | (3,189) |
Redemption of OP Unit holder interests | (4,292) | (6,059) |
Other | (3,177) | (6,533) |
Net cash provided by financing activities | 188,687 | 126,597 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,262 | (81,342) |
Cash, cash equivalents and restricted cash, at beginning of period | 21,734 | 107,782 |
Cash, cash equivalents and restricted cash, at end of period | $ 22,996 | $ 26,440 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
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 Company is externally managed by its advisor. On July 1, 2021, Ares Management Corporation (“Ares”) closed on the acquisition of the U.S. real estate investment advisory and distribution business of Black Creek Group, including the Company’s former advisor, Black Creek Diversified Property Advisors LLC (the “Former Advisor”). As a result of the closing of this transaction, Ares Commercial Real Estate Management LLC became the Company’s new advisor (the “New Advisor”). Ares did not acquire the Company’s former sponsor, Black Creek Diversified Property Advisors Group LLC (the “Former Sponsor”), and the Company now considers the Ares real estate group (“AREG”) to be its Sponsor. See Note 8 for additional information regarding this transaction. References to the “Advisor” throughout this report mean Black Creek Diversified Property Advisors LLC for periods prior to July 1, 2021 and Ares Commercial Real Estate Management LLC for periods thereafter. 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, 2020, filed with the SEC on March 5, 2021 (“2020 Form 10-K”). As used herein, the term “commercial” refers to our office, retail and industrial properties or customers, as applicable. Reclassifications Certain items in our condensed consolidated statements of operations for the three and nine months ended September 30, 2020 have been reclassified to conform to the 2021 presentation. Acquisition costs and reimbursements have been reclassified from general and administrative expenses to be shown separately on one line item on the condensed consolidated statements of operations. Recently Adopted 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 adopted this standard as of the reporting period beginning January 1, 2021. The adoption did not have a material effect on our condensed consolidated financial statements. In January 2021, the FASB issued ASU 2021-01 “Reference Rate Reform (Topic 848)” (“ASU 2021-01”) to refine the scope of ASU 2020-04 and clarify the guidance as part of FASB’s ongoing monitoring of global reference rate reform activities. The ASU extends the guidance to provide optional expedients and exceptions for applying GAAP to derivative contracts if certain criteria are met. The amendments only apply to derivative contracts that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2021-01 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 derivative contracts entered into after December 31, 2022. We adopted this standard immediately upon its issuance. The adoption did not have a material effect on our condensed consolidated financial statements. |
INVESTMENTS IN REAL ESTATE PROP
INVESTMENTS IN REAL ESTATE PROPERTIES | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
INVESTMENTS IN REAL ESTATE PROPERTIES | 2. INVESTMENTS IN REAL ESTATE PROPERTIES The following table summarizes our consolidated investments in real estate properties: As of (in thousands) September 30, 2021 December 31, 2020 Land $ 574,254 $ 476,442 Buildings and improvements 1,840,097 1,689,474 Intangible lease assets 293,075 289,762 Investment in real estate properties 2,707,426 2,455,678 Accumulated depreciation and amortization (510,763) (501,105) Net investment in real estate properties $ 2,196,663 $ 1,954,573 Acquisitions During the nine months ended September 30, 2021, 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) Radar Distribution Center LLC Industrial 3/31/2021 $ 49,168 Intermountain SC Industrial 6/30/2021 61,057 Airway Logistics Industrial 7/9/2021 24,238 Greenwood Business Center Industrial 8/2/2021 16,803 25 Linden Industrial Center Industrial 8/31/2021 17,061 Little Orchard Business Park Industrial 9/8/2021 96,559 Tustin Business Center Industrial 9/22/2021 33,285 Barrow Crossing Retail 6/22/2021 50,205 Total acquisitions $ 348,376 (1) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. There was no debt assumed in connection with the 2021 acquisitions. During the nine months ended September 30, 2021, 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, 2021 Land $ 116,421 Building 217,341 Intangible lease assets 27,103 Above-market lease assets 1,317 Below-market lease liabilities (13,806) Total purchase price (1) $ 348,376 (1) There was no debt assumed in connection with the 2021 acquisitions. 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, 2021, as of the respective date of each acquisition, was 8.9 years. Dispositions During the nine months ended September 30, 2021, we sold one retail property, one industrial property, and two office properties for net proceeds of approximately $141.4 million. We recorded a net gain on sale of approximately $53.3 million. 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. Intangible Lease Assets and Liabilities Intangible lease assets and liabilities as of September 30, 2021 and December 31, 2020 include the following: As of September 30, 2021 As of December 31, 2020 Accumulated Accumulated (in thousands) Gross Amortization Net Gross Amortization Net Intangible lease assets $ 269,956 $ (202,569) $ 67,387 $ 266,242 $ (214,055) $ 52,187 Above-market lease assets 23,119 (19,825) 3,294 23,520 (21,216) 2,304 Below-market lease liabilities (92,475) 40,939 (51,536) (79,891) 39,434 (40,457) 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) 2021 2020 2021 2020 Increase (decrease) to rental revenue: Straight-line rent adjustments $ 2,798 $ 1,322 $ 4,667 $ 3,947 Above-market lease amortization (138) (157) (327) (275) Below-market lease amortization 922 781 2,419 2,505 Real estate-related depreciation and amortization: Depreciation expense $ 15,332 $ 12,406 $ 42,740 $ 34,660 Intangible lease asset amortization 3,489 3,243 9,988 9,898 Real Estate Property Impairment During the nine months ended September 30, 2021, we recorded non-cash impairment charges of $0.8 million related to a retail property located in the Manomet, Massachusetts market, which was disposed of in March 2021. Prior to the disposition, we reevaluated the fair value of the property and determined that the net book value of the property exceeded the respective contract sales price less costs to sell the property, resulting in the impairment. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | 3. DEBT A summary of our debt is as follows: Weighted-Average Effective Interest Rate as of Balance as of September 30, December 31, September 30, December 31, ($ in thousands) 2021 2020 Current Maturity Date 2021 2020 Line of credit (1) 1.48 % 1.54 % January 2023 $ 85,000 $ 106,000 Term loan (2) 3.26 3.27 January 2024 325,000 325,000 Term loan (3) 3.29 3.29 February 2022 200,000 200,000 Fixed-rate mortgage notes (4) 3.68 3.55 October 2022 - December 2029 150,346 210,544 Floating-rate mortgage note (5) 2.34 2.50 November 2021 - January 2022 160,957 127,000 Total principal amount / weighted-average (6) 3.01 % 3.04 % $ 921,303 $ 968,544 Less: unamortized debt issuance costs $ (2,769) $ (4,083) Add: mark-to-market adjustment on assumed debt 651 844 Total debt, net $ 919,185 $ 965,305 Gross book value of properties encumbered by debt $ 557,103 $ 584,637 (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, 2021, the unused and available portions under the line of credit were approximately $365.0 million and $252.6 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, 2021. 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, 2021. The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements. (4) The amount outstanding as of December 31, 2020 includes a $49.8 million floating-rate mortgage note that is subject to an interest rate spread of 1.65% over one-month LIBOR, which we had effectively fixed using an interest rate swap at 2.85% until the designated cash flow hedge expired in July 2021. (5) The effective interest rate is calculated based on LIBOR plus a margin. As of September 30, 2021, our floating-rate mortgage notes were subject to interest rate spreads ranging from 1.65% to 2.25% . As of December 31, 2020, our floating-rate mortgage note was subject to an interest rate spread of 2.25% . (6) The weighted-average remaining term of our borrowings was approximately 1.9 years as of September 30, 2021, excluding the impact of certain extension options. As of September 30, 2021, 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 2021 $ — $ — $ 33,957 $ 33,957 2022 (1) — 200,000 127,951 327,951 2023 (2) 85,000 — — 85,000 2024 — 325,000 — 325,000 2025 — — 70,000 70,000 Thereafter — — 79,395 79,395 Total principal payments $ 85,000 $ 525,000 $ 311,303 $ 921,303 (1) The term of this term loan may be extended pursuant to two one-year extension options, subject to certain conditions. (2) 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. LIBOR is expected to be phased out or modified by June 2023, and the writing of contracts using LIBOR is expected to stop by the end of 2021. As of September 30, 2021, our line of credit and our term loans are our only indebtedness with initial or extended maturity dates beyond 2023 that have exposure to LIBOR. The agreements governing the line of credit and term loans 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 2023 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, 2021. 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 $7.4 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 Liabilities As of September 30, 2021 Interest rate swaps 13 $ 500,000 $ 16,696 Interest rate caps 1 127,000 — Total derivative instruments 14 $ 627,000 $ 16,696 As of December 31, 2020 Interest rate swaps 14 $ 549,849 $ 26,916 Interest rate caps 1 127,000 — Total derivative instruments 15 $ 676,849 $ 26,916 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) 2021 2020 2021 2020 Derivative instruments designated as cash flow hedges: (Loss) gain recognized in AOCI $ (224) $ (292) $ 2,519 $ (22,022) Amount reclassified from AOCI into interest expense 2,537 2,570 7,740 5,148 Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 17,866 15,290 51,477 42,930 Derivative instruments not designated as cash flow hedges: Loss recognized in income $ — $ (1) $ (13) $ (13) |
DST PROGRAM
DST PROGRAM | 9 Months Ended |
Sep. 30, 2021 | |
Delaware Statutory Trust Program [Abstract] | |
DST PROGRAM | 4. 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, 2021 and 2020, we sold approximately $188.0 million and $202.3 million, respectively, in gross interests related to the DST Program, including interests financed by the DST Program Loans (as defined below), and incurred rent obligations of approximately $20.7 million and $13.7 million, respectively, under our master lease agreements with investors who are participating in the DST Program. Additionally, during the nine months ended September 30, 2021 and 2020, 7.6 million partnership units (“OP Units”) in our operating partnership, Black Creek Diversified Property Operating Partnership LP (the “Operating Partnership”) and 1.5 million OP Units, respectively were issued in exchange for DST Interests, for a net investment of $57.7 million and $11.3 million, respectively, in accordance with our Umbrella Partnership Real Estate Investment Trust (“UPREIT”) structure. In order to facilitate additional capital raise through the DST Program, we have made and may continue to offer loans (“DST Program Loans”) to finance a portion of the sale of DST Interests to potential investors. As of September 30, 2021 and December 31, 2020, there were approximately $58.3 million and $45.2 million, respectively, of outstanding DST Program Loans that we have made to partially finance the sale of DST Interests. Of the $188.0 million and $202.3 million, respectively, of gross interests sold during the nine months ended September 30, 2021 and 2020, $17.1 million and $22.7 million, respectively, were financed by DST Program Loans. We include our investments in DST Program Loans separately on our condensed consolidated balance sheets in the “DST Program Loans” line item and we include income earned from DST Program Loans in “other income” on our condensed consolidated 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, 2021 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
FAIR VALUE | 5. 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, 2021 Liabilities: Derivative instruments $ — $ 16,696 $ — $ 16,696 Total liabilities measured at fair value $ — $ 16,696 $ — $ 16,696 As of December 31, 2020 Liabilities: Derivative instruments $ — $ 26,916 $ — $ 26,916 Total liabilities measured at fair value $ — $ 26,916 $ — $ 26,916 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Derivative Instruments. Nonrecurring Fair Value Measurements As of September 30, 2021 and December 31, 2020, the fair values of cash and cash equivalents, restricted cash, tenant receivables, accounts payable and accrued expenses, 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, 2021 As of December 31, 2020 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt-related investments $ 47,883 $ 47,883 $ 49,885 $ 49,584 DST Program Loans 58,276 58,276 45,229 45,229 Liabilities: Line of credit $ 85,000 $ 85,000 $ 106,000 $ 105,592 Term loans 525,000 525,000 525,000 521,945 Mortgage notes 311,303 313,614 337,544 336,336 (1) The carrying value reflects the principal amount outstanding. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 6. 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, 2021, is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 31,724 $ 68,283 $ 15,367 $ 51,376 $ — $ 166,750 DRIP 1,430 3,377 655 6,266 5,274 17,002 Total offering $ 33,154 $ 71,660 $ 16,022 $ 57,642 $ 5,274 $ 183,752 Number of shares sold: Primary offering 3,826 8,873 2,024 6,956 — 21,679 DRIP 188 444 86 824 695 2,237 Total offering 4,014 9,317 2,110 7,780 695 23,916 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, 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 THREE MONTHS ENDED SEPTEMBER 30, 2021 Balance as of June 30, 2021 11,692 28,958 5,509 47,745 58,117 152,021 Issuance of common stock: Primary shares 1,985 3,245 568 3,700 — 9,498 Distribution reinvestment plan 69 162 32 282 225 770 Share-based compensation — — — 21 — 21 Redemptions of common stock (64) (217) (119) (442) (1,083) (1,925) Balance as of September 30, 2021 13,682 32,148 5,990 51,306 57,259 160,385 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 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 Balance as of December 31, 2020 9,831 23,516 4,098 44,723 60,873 143,041 Issuance of common stock: Primary shares 3,826 8,873 2,024 6,956 — 21,679 Distribution reinvestment plan 188 444 86 824 695 2,237 Share-based compensation — — — 29 — 29 Redemptions of common stock (163) (685) (218) (1,226) (4,309) (6,601) Balance as of September 30, 2021 13,682 32,148 5,990 51,306 57,259 160,385 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 2021 March 31 $ 0.09375 $ 7,562 $ 2,010 $ 5,526 $ 15,098 June 30 0.09375 7,696 2,266 5,723 15,685 September 30 0.09375 7,984 2,613 5,985 16,582 Total $ 0.28125 $ 23,242 $ 6,889 $ 17,234 $ 47,365 2020 March 31 $ 0.09375 $ 7,533 $ 1,499 $ 5,360 $ 14,392 June 30 0.09375 7,539 1,611 5,316 14,466 September 30 0.09375 7,482 1,592 5,282 14,356 December 31 0.09375 7,464 1,750 5,347 14,561 Total $ 0.37500 $ 30,018 $ 6,452 $ 21,305 $ 57,775 (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 OP Units; and (ii) ongoing distribution fees paid to the dealer manager for our public offerings, Ares Wealth Management Solutions, LLC (formerly known as 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, 2021 and 2020. 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) 2021 2020 Number of shares requested for redemption or repurchase 6,601 11,608 Number of shares redeemed or repurchased 6,601 11,608 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.59 $ 7.50 |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 9 Months Ended |
Sep. 30, 2021 | |
Redeemable Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | 7. REDEEMABLE NONCONTROLLING INTERESTS The Operating Partnership issued OP Units to the Former Sponsor as payment of the performance participation allocation (also referred to as the performance component of the advisory fee) pursuant to the amended and restated advisory agreement, by and among the Company, the Operating Partnership and our Advisor. The Former Sponsor subsequently transferred these OP Units to its members or their affiliates. We have classified these OP Units as redeemable noncontrolling interests in mezzanine equity on the condensed consolidated balance sheets due to the fact that, as provided in the agreement of limited partnership of the Operating Partnership (the “Partnership Agreement”), the limited partners who hold these OP Units have the ability to tender the OP Units at any time irrespective of the period that they have held such OP Units, and the Operating Partnership is required to satisfy such redemption for cash unless such cash redemption would be prohibited by applicable law or the Partnership Agreement, in which case such OP Units will be redeemed for shares of the Company’s common stock of the class corresponding to the class of such OP Units. The redeemable noncontrolling interests are recorded at the greater of the carrying amount, adjusted for its share of the allocation of income or loss and dividends, or the redemption value, which is equivalent to fair value, of such OP Units at the end of each measurement period. The following table summarizes the redeemable noncontrolling interests activity for the nine months ended September 30, 2021 and 2020: ($ in thousands) As of December 31, 2019 $ - Settlement of 2019 performance participation allocation (1) 3,776 Distributions declared on redeemable noncontrolling interests (141) Net loss attributable to redeemable noncontrolling interests (71) Change from cash flow hedging activities attributable to redeemable noncontrolling interests (55) Redemption value allocation adjustment to redeemable noncontrolling interests 281 As of September 30, 2020 $ 3,790 As of December 31, 2020 $ 3,798 Settlement of 2020 performance participation allocation (2) 4,608 Distributions declared on redeemable noncontrolling interests (314) Net income attributable to redeemable noncontrolling interests 169 Change from cash flow hedging activities attributable to redeemable noncontrolling interests 70 Redemption value allocation adjustment to redeemable noncontrolling interests 293 As of September 30, 2021 $ 8,624 (1) The 2019 performance participation allocation in the amount of $3.8 million became payable to the Former Sponsor on December 31, 2019. At the Advisor’s election, it was paid in the form of Class I OP Units valued at $3.8 million (based on the NAV per unit as of December 31, 2019), which were issued to the Former Sponsor in January 2020 and subsequently transferred to its members or their affiliates. (2) The 2020 performance participation allocation in the amount of $4.6 million became payable to the Former Sponsor on December 31, 2020. At the Advisor’s election, it was paid in the form of Class I OP Units valued at $4.6 million (based on the NAV per unit as of December 31, 2020), which were issued to the Former Sponsor in January 2021 and subsequently transferred to its members or their affiliates. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 8. RELATED PARTY TRANSACTIONS Summary of Fees and Expenses The table below summarizes the fees and expenses incurred by us for services provided by the Advisor and its affiliates, and by the Dealer Manager related to the services the Dealer Manager provided in connection with our public offerings and any related amounts payable: For the Three Months Ended September 30, For the Nine Months Ended September 30, Payable as of (in thousands) 2021 2020 2021 2020 September 30, 2021 December 31, 2020 Selling commissions and dealer manager fees (1) $ 845 $ 226 $ 1,866 $ 1,216 $ — $ — Ongoing distribution fees (1)(2) 788 515 2,064 1,482 291 188 Advisory fees - fixed component 5,480 4,210 15,389 12,666 1,893 1,547 Performance participation allocation 3,774 1,333 7,769 3,343 7,769 4,608 Other expense reimbursements— Advisor (3)(4) 2,950 2,691 8,783 7,271 3,804 2,112 Other expense reimbursements—Dealer Manager 107 45 249 431 — — DST Program selling commissions, dealer manager and distribution fees (1) 3,106 547 6,422 3,044 236 — Other DST Program related costs—Advisor (3) 1,710 515 3,978 3,084 82 — Total $ 18,760 $ 10,082 $ 46,520 $ 32,537 $ 14,075 $ 8,455 (1) All or a portion of these amounts will be retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers. (2) The distribution fees accrue daily and are payable monthly in arrears. Additionally, we accrue for future estimated amounts payable related to ongoing distribution fees. The future estimated amounts payable of approximately $26.4 million and $15.5 million as of September 30, 2021 and December 31, 2020, respectively, are included in other liabilities on the consolidated balance sheets. (3) Includes costs reimbursed to the Advisor related to the DST Program. (4) Other expense reimbursements include certain expenses incurred for organization and offering, acquisition and general administrative services provided to us under the advisory agreement, including, but not limited to, certain expenses described after this footnote, allocated rent paid to both third parties and affiliates of our Advisor, equipment, utilities, insurance, travel and entertainment. Certain of the expense reimbursements described in the table above include a portion of the compensation expenses of officers and employees of the Advisor or its affiliates related to activities for which the Advisor did not otherwise receive a separate fee. Amounts incurred related to these compensation expenses for the three months ended September 30, 2021, and 2020 were approximately $2.6 million and $2.1 million, respectively. Amounts incurred related to these compensation expenses for the nine months ended September 30, 2021, and 2020 were approximately $7.3 million and $5.8 million, respectively. No reimbursement is made for compensation of our named executive officers unless the named executive officer is providing stockholder services, as outlined in the advisory agreement. Acquisition Expense Reimbursements. Pursuant to the Advisory Agreement, subject to certain limitations, we agreed to reimburse the Advisor for all acquisition expenses incurred on our behalf in connection with the selection and acquisition of properties, real estate-related assets, and other investments, whether or not such investments are acquired. As these expense reimbursements were not directly attributable to a specified property, they were expensed as incurred on the condensed consolidated statements of operations. Completion of the Transaction with Ares On July 1, 2021, Ares Management Corporation (“Ares”) closed on the acquisition of Black Creek Group’s U.S. real estate investment advisory and distribution business, including Black Creek Diversified Property Advisors LLC, the Company’s Former Advisor (the “Transaction”). On the same date, the Company’s Former Advisor assigned the advisory agreement to the Company’s New Advisor. Ares did not acquire the Former Sponsor, and the Company now considers the Ares real estate group to be the Company’s sponsor. Ares intends to continue to operate the business of Black Creek Group consistent with past practice. The principals of Black Creek Group, the rest of the management team and the Company’s current officers are expected to continue to serve in their roles with respect to the Company for the foreseeable future, although a member of Ares’ personnel has joined the Company’s board of directors and members of Ares’ personnel have joined the Advisor’s investment committee. Any changes to the Company’s management team or investment policies will require approval of the Company’s board of directors. Although such changes may be made in the future, no such changes have been approved at this time. Advisory Agreement On July 1, 2021, in connection with the Transaction, the Company and the Operating Partnership entered into the Second Amended and Restated Advisory Agreement (2021) (the “Advisory Agreement”) with the New Advisor. The Advisory Agreement amends and restates the Amended and Restated Advisory Agreement (2021) (the “Prior Advisory Agreement”) to, among other things, reflect the assignment of the Advisor’s rights and obligations under the Prior Advisory Agreement to the New Advisor. The term of the Advisory Agreement ends on April 30, 2022, subject to renewals by mutual consent of the parties for an unlimited number of successive one-year periods. The terms of the Advisory Agreement are otherwise substantially the same as the terms of the Prior Advisory Agreement. Limited Partnership Agreement On July 1, 2021, in connection with the Transaction, the Company, on behalf of itself as general partner and on behalf of the limited partners thereto other than the special limited partner, entered into the Tenth Amended and Restated Limited Partnership Agreement of the Operating Partnership (the “Limited Partnership Agreement”). The Limited Partnership Agreement amends and restates the Ninth Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated as of December 20, 2019, as amended by Amendment No. 1 dated as of December 8, 2020 (the “Prior Limited Partnership Agreement”) in order to reflect the assignment and transfer of all of the special partnership units to the New Advisor. The terms of the Limited Partnership Agreement are otherwise substantially the same as the terms of the Prior Limited Partnership Agreement. |
NET INCOME (LOSS) PER COMMON SH
NET INCOME (LOSS) PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2021 | |
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) 2021 2020 2021 2020 Net income (loss) attributable to common stockholders—basic $ 13,940 $ (10,830) $ 22,922 $ (19,827) Net income (loss) attributable to redeemable OP Units 99 (39) 169 (71) Net income (loss) attributable to OP Units 1,654 (839) 2,430 (1,515) Net income (loss) attributable to common stockholders—diluted $ 15,693 $ (11,708) $ 25,521 $ (21,413) Weighted-average shares outstanding—basic 157,025 141,682 151,045 142,216 Incremental weighted-average shares effect of conversion of OP Units 19,752 11,484 17,430 11,449 Weighted-average shares outstanding—diluted 176,777 153,166 168,475 153,665 Net income (loss) per share attributable to common stockholders: Basic $ 0.09 $ (0.08) $ 0.15 $ (0.14) Diluted $ 0.09 $ (0.08) $ 0.15 $ (0.14) |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
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) 2021 2020 Distributions reinvested in common stock $ 17,001 $ 15,972 Change in accrued future ongoing distribution fees 10,864 335 Increase in DST Program Loans receivable through DST Program capital raising 17,105 22,700 Redeemable noncontrolling interest issued as settlement of performance participation allocation 4,608 3,776 Redemption value allocation adjustment to redeemable noncontrolling interest 293 281 Mortgage notes assumed on real estate acquisitions at fair value — 9,834 Issuances of OP Units for DST Interests 57,729 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) 2021 2020 Beginning of period: Cash and cash equivalents $ 11,266 $ 97,772 Restricted cash 10,468 10,010 Cash, cash equivalents and restricted cash $ 21,734 $ 107,782 End of period: Cash and cash equivalents $ 12,463 $ 16,124 Restricted cash 10,533 10,316 Cash, cash equivalents and restricted cash $ 22,996 $ 26,440 |
SIGNIFICANT RISKS AND UNCERTAIN
SIGNIFICANT RISKS AND UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2021 | |
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 the pandemic, particularly in early 2020. 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 could severely impact our customers’ businesses, financial condition and liquidity and could 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 has not had a material effect on our condensed consolidated financial statements during the year ended December 31, 2020 and the nine months ended September 30, 2021 and the vaccination rates in the United States are encouraging, we are unable to predict the impact that the COVID-19 pandemic and the vaccination rates in the United States 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 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, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Litigation From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of September 30, 2021, we were not involved in any material legal proceedings. 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, 2021. |
SEGMENT FINANCIAL INFORMATION
SEGMENT FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT FINANCIAL INFORMATION | 13. SEGMENT FINANCIAL INFORMATION Our four reportable segments are office, retail, residential 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, 2021 and December 31, 2020: As of (in thousands) September 30, 2021 December 31, 2020 Assets: Office properties $ 387,423 $ 459,646 Retail properties 712,769 670,455 Residential properties 356,234 363,322 Industrial properties 740,237 461,150 Corporate 181,480 156,987 Total assets $ 2,378,143 $ 2,111,560 The following table sets forth the financial results by segment for the three and nine months ended September 30, 2021 and 2020: (in thousands) Office Retail Residential Industrial Consolidated For the Three Months Ended September 30, 2021 Rental revenues $ 16,887 $ 18,679 $ 7,237 $ 10,793 $ 53,596 Rental expenses (7,111) (4,660) (3,257) (2,814) (17,842) Net operating income $ 9,776 $ 14,019 $ 3,980 $ 7,979 $ 35,754 Real estate-related depreciation and amortization $ 4,945 $ 5,336 $ 2,283 $ 6,257 $ 18,821 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 Nine Months Ended September 30, 2021 Rental revenues $ 49,663 $ 53,600 $ 20,885 $ 28,509 $ 152,657 Rental expenses (22,116) (13,854) (9,666) (6,682) (52,318) Net operating income $ 27,547 $ 39,746 $ 11,219 $ 21,827 $ 100,339 Real estate-related depreciation and amortization $ 14,814 $ 14,445 $ 7,612 $ 15,857 $ 52,728 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 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, 2021 and 2020: For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Net income (loss) attributable to common stockholders $ 13,940 $ (10,830) $ 22,922 $ (19,827) Debt-related income (2,298) (981) (6,741) (1,181) Real estate-related depreciation and amortization 18,821 15,649 52,728 44,558 General and administrative expenses 2,183 1,977 6,582 5,769 Advisory fees, related party 5,480 4,210 15,389 12,666 Performance participation allocation 3,774 1,333 7,769 3,343 Acquisition costs and reimbursements 738 240 1,451 842 Litigation expense — 2,500 — 2,500 Impairment of real estate property — — 758 — Other income (524) (262) (1,274) (619) Interest expense 17,866 15,290 51,477 42,930 Gain on sale of real estate property (25,979) — (53,321) (2,192) Net income (loss) attributable to redeemable noncontrolling interests 99 (39) 169 (71) Net income (loss) attributable to noncontrolling interests 1,654 (839) 2,430 (1,515) Net operating income $ 35,754 $ 28,248 $ 100,339 $ 87,203 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14 . SUBSEQUENT EVENTS Purchase of Membership Interests On October 20, 2021, we acquired a majority interest in an entity that owns a residential property in Tucson, Arizona, which is a student housing property, for a total contractual purchase price of approximately $124.0 million. Acquisition of Property Subsequent to September 30, 2021, we acquired (excluding properties related to our DST Program) one industrial property located in Burlington, New Jersey for a purchase price of approximately $6.4 million. Acquisition Under Contract On November 3, 2021, we entered into a contract to acquire an Agreement to Sell Property On October 29, 2021, we entered into an agreement to sell a |
INVESTMENTS IN REAL ESTATE PR_2
INVESTMENTS IN REAL ESTATE PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of Consolidated Investments in Real Estate Properties | The following table summarizes our consolidated investments in real estate properties: As of (in thousands) September 30, 2021 December 31, 2020 Land $ 574,254 $ 476,442 Buildings and improvements 1,840,097 1,689,474 Intangible lease assets 293,075 289,762 Investment in real estate properties 2,707,426 2,455,678 Accumulated depreciation and amortization (510,763) (501,105) Net investment in real estate properties $ 2,196,663 $ 1,954,573 |
Schedule of Asset Acquisitions | During the nine months ended September 30, 2021, 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) Radar Distribution Center LLC Industrial 3/31/2021 $ 49,168 Intermountain SC Industrial 6/30/2021 61,057 Airway Logistics Industrial 7/9/2021 24,238 Greenwood Business Center Industrial 8/2/2021 16,803 25 Linden Industrial Center Industrial 8/31/2021 17,061 Little Orchard Business Park Industrial 9/8/2021 96,559 Tustin Business Center Industrial 9/22/2021 33,285 Barrow Crossing Retail 6/22/2021 50,205 Total acquisitions $ 348,376 (1) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. There was no debt assumed in connection with the 2021 acquisitions. |
Allocation of Purchase Price Allocations | During the nine months ended September 30, 2021, 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, 2021 Land $ 116,421 Building 217,341 Intangible lease assets 27,103 Above-market lease assets 1,317 Below-market lease liabilities (13,806) Total purchase price (1) $ 348,376 (1) There was no debt assumed in connection with the 2021 acquisitions. |
Schedule of Intangible Lease Assets and Liabilities | Intangible lease assets and liabilities as of September 30, 2021 and December 31, 2020 include the following: As of September 30, 2021 As of December 31, 2020 Accumulated Accumulated (in thousands) Gross Amortization Net Gross Amortization Net Intangible lease assets $ 269,956 $ (202,569) $ 67,387 $ 266,242 $ (214,055) $ 52,187 Above-market lease assets 23,119 (19,825) 3,294 23,520 (21,216) 2,304 Below-market lease liabilities (92,475) 40,939 (51,536) (79,891) 39,434 (40,457) |
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) 2021 2020 2021 2020 Increase (decrease) to rental revenue: Straight-line rent adjustments $ 2,798 $ 1,322 $ 4,667 $ 3,947 Above-market lease amortization (138) (157) (327) (275) Below-market lease amortization 922 781 2,419 2,505 Real estate-related depreciation and amortization: Depreciation expense $ 15,332 $ 12,406 $ 42,740 $ 34,660 Intangible lease asset amortization 3,489 3,243 9,988 9,898 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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) 2021 2020 Current Maturity Date 2021 2020 Line of credit (1) 1.48 % 1.54 % January 2023 $ 85,000 $ 106,000 Term loan (2) 3.26 3.27 January 2024 325,000 325,000 Term loan (3) 3.29 3.29 February 2022 200,000 200,000 Fixed-rate mortgage notes (4) 3.68 3.55 October 2022 - December 2029 150,346 210,544 Floating-rate mortgage note (5) 2.34 2.50 November 2021 - January 2022 160,957 127,000 Total principal amount / weighted-average (6) 3.01 % 3.04 % $ 921,303 $ 968,544 Less: unamortized debt issuance costs $ (2,769) $ (4,083) Add: mark-to-market adjustment on assumed debt 651 844 Total debt, net $ 919,185 $ 965,305 Gross book value of properties encumbered by debt $ 557,103 $ 584,637 (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, 2021, the unused and available portions under the line of credit were approximately $365.0 million and $252.6 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, 2021. 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, 2021. The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements. (4) The amount outstanding as of December 31, 2020 includes a $49.8 million floating-rate mortgage note that is subject to an interest rate spread of 1.65% over one-month LIBOR, which we had effectively fixed using an interest rate swap at 2.85% until the designated cash flow hedge expired in July 2021. (5) The effective interest rate is calculated based on LIBOR plus a margin. As of September 30, 2021, our floating-rate mortgage notes were subject to interest rate spreads ranging from 1.65% to 2.25% . As of December 31, 2020, our floating-rate mortgage note was subject to an interest rate spread of 2.25% . (6) The weighted-average remaining term of our borrowings was approximately 1.9 years as of September 30, 2021, excluding the impact of certain extension options. |
Schedule of Borrowings Reflects Contractual Debt Maturities | As of September 30, 2021, 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 2021 $ — $ — $ 33,957 $ 33,957 2022 (1) — 200,000 127,951 327,951 2023 (2) 85,000 — — 85,000 2024 — 325,000 — 325,000 2025 — — 70,000 70,000 Thereafter — — 79,395 79,395 Total principal payments $ 85,000 $ 525,000 $ 311,303 $ 921,303 (1) The term of this term loan may be extended pursuant to two one-year extension options, subject to certain conditions. (2) 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 Liabilities As of September 30, 2021 Interest rate swaps 13 $ 500,000 $ 16,696 Interest rate caps 1 127,000 — Total derivative instruments 14 $ 627,000 $ 16,696 As of December 31, 2020 Interest rate swaps 14 $ 549,849 $ 26,916 Interest rate caps 1 127,000 — Total derivative instruments 15 $ 676,849 $ 26,916 |
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) 2021 2020 2021 2020 Derivative instruments designated as cash flow hedges: (Loss) gain recognized in AOCI $ (224) $ (292) $ 2,519 $ (22,022) Amount reclassified from AOCI into interest expense 2,537 2,570 7,740 5,148 Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded 17,866 15,290 51,477 42,930 Derivative instruments not designated as cash flow hedges: Loss recognized in income $ — $ (1) $ (13) $ (13) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 Liabilities: Derivative instruments $ — $ 16,696 $ — $ 16,696 Total liabilities measured at fair value $ — $ 16,696 $ — $ 16,696 As of December 31, 2020 Liabilities: Derivative instruments $ — $ 26,916 $ — $ 26,916 Total liabilities measured at fair value $ — $ 26,916 $ — $ 26,916 |
Nonrecurring Fair Value Measurements | As of September 30, 2021 As of December 31, 2020 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt-related investments $ 47,883 $ 47,883 $ 49,885 $ 49,584 DST Program Loans 58,276 58,276 45,229 45,229 Liabilities: Line of credit $ 85,000 $ 85,000 $ 106,000 $ 105,592 Term loans 525,000 525,000 525,000 521,945 Mortgage notes 311,303 313,614 337,544 336,336 (1) The carrying value reflects the principal amount outstanding. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021, is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 31,724 $ 68,283 $ 15,367 $ 51,376 $ — $ 166,750 DRIP 1,430 3,377 655 6,266 5,274 17,002 Total offering $ 33,154 $ 71,660 $ 16,022 $ 57,642 $ 5,274 $ 183,752 Number of shares sold: Primary offering 3,826 8,873 2,024 6,956 — 21,679 DRIP 188 444 86 824 695 2,237 Total offering 4,014 9,317 2,110 7,780 695 23,916 |
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, 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 THREE MONTHS ENDED SEPTEMBER 30, 2021 Balance as of June 30, 2021 11,692 28,958 5,509 47,745 58,117 152,021 Issuance of common stock: Primary shares 1,985 3,245 568 3,700 — 9,498 Distribution reinvestment plan 69 162 32 282 225 770 Share-based compensation — — — 21 — 21 Redemptions of common stock (64) (217) (119) (442) (1,083) (1,925) Balance as of September 30, 2021 13,682 32,148 5,990 51,306 57,259 160,385 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 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 Balance as of December 31, 2020 9,831 23,516 4,098 44,723 60,873 143,041 Issuance of common stock: Primary shares 3,826 8,873 2,024 6,956 — 21,679 Distribution reinvestment plan 188 444 86 824 695 2,237 Share-based compensation — — — 29 — 29 Redemptions of common stock (163) (685) (218) (1,226) (4,309) (6,601) Balance as of September 30, 2021 13,682 32,148 5,990 51,306 57,259 160,385 |
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 2021 March 31 $ 0.09375 $ 7,562 $ 2,010 $ 5,526 $ 15,098 June 30 0.09375 7,696 2,266 5,723 15,685 September 30 0.09375 7,984 2,613 5,985 16,582 Total $ 0.28125 $ 23,242 $ 6,889 $ 17,234 $ 47,365 2020 March 31 $ 0.09375 $ 7,533 $ 1,499 $ 5,360 $ 14,392 June 30 0.09375 7,539 1,611 5,316 14,466 September 30 0.09375 7,482 1,592 5,282 14,356 December 31 0.09375 7,464 1,750 5,347 14,561 Total $ 0.37500 $ 30,018 $ 6,452 $ 21,305 $ 57,775 (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 OP Units; and (ii) ongoing distribution fees paid to the dealer manager for our public offerings, Ares Wealth Management Solutions, LLC (formerly known as 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 | Below is a summary of redemptions and repurchases pursuant to our share redemption program for the nine months ended September 30, 2021 and 2020. 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) 2021 2020 Number of shares requested for redemption or repurchase 6,601 11,608 Number of shares redeemed or repurchased 6,601 11,608 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.59 $ 7.50 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Redeemable Noncontrolling Interest [Abstract] | |
Schedule of redeemable noncontrolling interest activity | The following table summarizes the redeemable noncontrolling interests activity for the nine months ended September 30, 2021 and 2020: ($ in thousands) As of December 31, 2019 $ - Settlement of 2019 performance participation allocation (1) 3,776 Distributions declared on redeemable noncontrolling interests (141) Net loss attributable to redeemable noncontrolling interests (71) Change from cash flow hedging activities attributable to redeemable noncontrolling interests (55) Redemption value allocation adjustment to redeemable noncontrolling interests 281 As of September 30, 2020 $ 3,790 As of December 31, 2020 $ 3,798 Settlement of 2020 performance participation allocation (2) 4,608 Distributions declared on redeemable noncontrolling interests (314) Net income attributable to redeemable noncontrolling interests 169 Change from cash flow hedging activities attributable to redeemable noncontrolling interests 70 Redemption value allocation adjustment to redeemable noncontrolling interests 293 As of September 30, 2021 $ 8,624 (1) The 2019 performance participation allocation in the amount of $3.8 million became payable to the Former Sponsor on December 31, 2019. At the Advisor’s election, it was paid in the form of Class I OP Units valued at $3.8 million (based on the NAV per unit as of December 31, 2019), which were issued to the Former Sponsor in January 2020 and subsequently transferred to its members or their affiliates. (2) The 2020 performance participation allocation in the amount of $4.6 million became payable to the Former Sponsor on December 31, 2020. At the Advisor’s election, it was paid in the form of Class I OP Units valued at $4.6 million (based on the NAV per unit as of December 31, 2020), which were issued to the Former Sponsor in January 2021 and subsequently transferred to its members or their affiliates. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Fees and Other Amounts Earned by Advisor | The table below summarizes the fees and expenses incurred by us for services provided by the Advisor and its affiliates, and by the Dealer Manager related to the services the Dealer Manager provided in connection with our public offerings and any related amounts payable: For the Three Months Ended September 30, For the Nine Months Ended September 30, Payable as of (in thousands) 2021 2020 2021 2020 September 30, 2021 December 31, 2020 Selling commissions and dealer manager fees (1) $ 845 $ 226 $ 1,866 $ 1,216 $ — $ — Ongoing distribution fees (1)(2) 788 515 2,064 1,482 291 188 Advisory fees - fixed component 5,480 4,210 15,389 12,666 1,893 1,547 Performance participation allocation 3,774 1,333 7,769 3,343 7,769 4,608 Other expense reimbursements— Advisor (3)(4) 2,950 2,691 8,783 7,271 3,804 2,112 Other expense reimbursements—Dealer Manager 107 45 249 431 — — DST Program selling commissions, dealer manager and distribution fees (1) 3,106 547 6,422 3,044 236 — Other DST Program related costs—Advisor (3) 1,710 515 3,978 3,084 82 — Total $ 18,760 $ 10,082 $ 46,520 $ 32,537 $ 14,075 $ 8,455 (1) All or a portion of these amounts will be retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers. (2) The distribution fees accrue daily and are payable monthly in arrears. Additionally, we accrue for future estimated amounts payable related to ongoing distribution fees. The future estimated amounts payable of approximately $26.4 million and $15.5 million as of September 30, 2021 and December 31, 2020, respectively, are included in other liabilities on the consolidated balance sheets. (3) Includes costs reimbursed to the Advisor related to the DST Program. (4) Other expense reimbursements include certain expenses incurred for organization and offering, acquisition and general administrative services provided to us under the advisory agreement, including, but not limited to, certain expenses described after this footnote, allocated rent paid to both third parties and affiliates of our Advisor, equipment, utilities, insurance, travel and entertainment. |
NET INCOME (LOSS) PER COMMON _2
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Details of Numerator and Denominator Used to Calculate Basic and Diluted 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) 2021 2020 2021 2020 Net income (loss) attributable to common stockholders—basic $ 13,940 $ (10,830) $ 22,922 $ (19,827) Net income (loss) attributable to redeemable OP Units 99 (39) 169 (71) Net income (loss) attributable to OP Units 1,654 (839) 2,430 (1,515) Net income (loss) attributable to common stockholders—diluted $ 15,693 $ (11,708) $ 25,521 $ (21,413) Weighted-average shares outstanding—basic 157,025 141,682 151,045 142,216 Incremental weighted-average shares effect of conversion of OP Units 19,752 11,484 17,430 11,449 Weighted-average shares outstanding—diluted 176,777 153,166 168,475 153,665 Net income (loss) per share attributable to common stockholders: Basic $ 0.09 $ (0.08) $ 0.15 $ (0.14) Diluted $ 0.09 $ (0.08) $ 0.15 $ (0.14) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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) 2021 2020 Distributions reinvested in common stock $ 17,001 $ 15,972 Change in accrued future ongoing distribution fees 10,864 335 Increase in DST Program Loans receivable through DST Program capital raising 17,105 22,700 Redeemable noncontrolling interest issued as settlement of performance participation allocation 4,608 3,776 Redemption value allocation adjustment to redeemable noncontrolling interest 293 281 Mortgage notes assumed on real estate acquisitions at fair value — 9,834 Issuances of OP Units for DST Interests 57,729 11,240 |
Schedule of Restricted Cash and Cash Equivalents | 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) 2021 2020 Beginning of period: Cash and cash equivalents $ 11,266 $ 97,772 Restricted cash 10,468 10,010 Cash, cash equivalents and restricted cash $ 21,734 $ 107,782 End of period: Cash and cash equivalents $ 12,463 $ 16,124 Restricted cash 10,533 10,316 Cash, cash equivalents and restricted cash $ 22,996 $ 26,440 |
SEGMENT FINANCIAL INFORMATION (
SEGMENT FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Total Assets by Business Segment | The following table reflects our total assets by business segment as of September 30, 2021 and December 31, 2020: As of (in thousands) September 30, 2021 December 31, 2020 Assets: Office properties $ 387,423 $ 459,646 Retail properties 712,769 670,455 Residential properties 356,234 363,322 Industrial properties 740,237 461,150 Corporate 181,480 156,987 Total assets $ 2,378,143 $ 2,111,560 |
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, 2021 and 2020: (in thousands) Office Retail Residential Industrial Consolidated For the Three Months Ended September 30, 2021 Rental revenues $ 16,887 $ 18,679 $ 7,237 $ 10,793 $ 53,596 Rental expenses (7,111) (4,660) (3,257) (2,814) (17,842) Net operating income $ 9,776 $ 14,019 $ 3,980 $ 7,979 $ 35,754 Real estate-related depreciation and amortization $ 4,945 $ 5,336 $ 2,283 $ 6,257 $ 18,821 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 Nine Months Ended September 30, 2021 Rental revenues $ 49,663 $ 53,600 $ 20,885 $ 28,509 $ 152,657 Rental expenses (22,116) (13,854) (9,666) (6,682) (52,318) Net operating income $ 27,547 $ 39,746 $ 11,219 $ 21,827 $ 100,339 Real estate-related depreciation and amortization $ 14,814 $ 14,445 $ 7,612 $ 15,857 $ 52,728 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 |
Reconciliation of Net Operating Income to Reported Net Income (Loss) | 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, 2021 and 2020: For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2021 2020 2021 2020 Net income (loss) attributable to common stockholders $ 13,940 $ (10,830) $ 22,922 $ (19,827) Debt-related income (2,298) (981) (6,741) (1,181) Real estate-related depreciation and amortization 18,821 15,649 52,728 44,558 General and administrative expenses 2,183 1,977 6,582 5,769 Advisory fees, related party 5,480 4,210 15,389 12,666 Performance participation allocation 3,774 1,333 7,769 3,343 Acquisition costs and reimbursements 738 240 1,451 842 Litigation expense — 2,500 — 2,500 Impairment of real estate property — — 758 — Other income (524) (262) (1,274) (619) Interest expense 17,866 15,290 51,477 42,930 Gain on sale of real estate property (25,979) — (53,321) (2,192) Net income (loss) attributable to redeemable noncontrolling interests 99 (39) 169 (71) Net income (loss) attributable to noncontrolling interests 1,654 (839) 2,430 (1,515) Net operating income $ 35,754 $ 28,248 $ 100,339 $ 87,203 |
INVESTMENTS IN REAL ESTATE PR_3
INVESTMENTS IN REAL ESTATE PROPERTIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)property | Sep. 30, 2020USD ($)property | Sep. 30, 2021USD ($)property | Sep. 30, 2020USD ($)property | |
Real Estate Properties [Line Items] | ||||
Intangible lease assets and liabilities acquired | 8 years 10 months 24 days | |||
Proceeds from disposition of real estate property | $ | $ 141,360 | $ 2,752 | ||
Gain on sale of real estate property | $ | $ 25,979 | $ 0 | 53,321 | 2,192 |
Impairment of Real Estate | $ | $ 0 | $ 0 | $ 758 | $ 0 |
Disposed of by Sale | Office Property | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 2 | 2 | ||
Disposed of by Sale | Retail properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 1 | 1 | ||
Disposed of by Sale | Retail properties | Retail Property, Manomet, Massachusetts Market | ||||
Real Estate Properties [Line Items] | ||||
Impairment of Real Estate | $ | $ 800 | |||
Disposed of by Sale | Outparcel | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 1 | 1 | ||
Disposed of by Sale | Industrial | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 1 | 1 |
INVESTMENTS IN REAL ESTATE PR_4
INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Consolidated Investments in Real Estate Properties) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Land | $ 574,254 | $ 476,442 |
Buildings and improvements | 1,840,097 | 1,689,474 |
Intangible lease assets | 293,075 | 289,762 |
Investment in real estate properties | 2,707,426 | 2,455,678 |
Accumulated depreciation and amortization | (510,763) | (501,105) |
Net investment in real estate properties | $ 2,196,663 | $ 1,954,573 |
INVESTMENTS IN REAL ESTATE PR_5
INVESTMENTS IN REAL ESTATE PROPERTIES (Property Acquisitions) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Real Estate [Line Items] | |
Percentage of assets acquired | 100.00% |
Real Estate Acquired [Member] | |
Real Estate [Line Items] | |
Total acquisitions | $ 348,376 |
Debt assumed at fair value | 0 |
Radar Distribution Center LLC | |
Real Estate [Line Items] | |
Total acquisitions | 49,168 |
Intermountain SC | |
Real Estate [Line Items] | |
Total acquisitions | 61,057 |
Airway Logistics | |
Real Estate [Line Items] | |
Total acquisitions | 24,238 |
Greenwood Business Center | |
Real Estate [Line Items] | |
Total acquisitions | 16,803 |
25 Linden Industrial Center | |
Real Estate [Line Items] | |
Total acquisitions | 17,061 |
Little Orchard Business Park | |
Real Estate [Line Items] | |
Total acquisitions | 96,559 |
Tustin Business Center | |
Real Estate [Line Items] | |
Total acquisitions | 33,285 |
Barrow Crossing | |
Real Estate [Line Items] | |
Total acquisitions | $ 50,205 |
INVESTMENTS IN REAL ESTATE PR_6
INVESTMENTS IN REAL ESTATE PROPERTIES (Purchase Price Allocation) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Real Estate [Line Items] | |
Land | $ 116,421 |
Building | 217,341 |
Intangible lease assets | 27,103 |
Above-market lease assets | 1,317 |
Below-market lease liabilities | (13,806) |
Total purchase price | 348,376 |
Real Estate Acquired [Member] | |
Real Estate [Line Items] | |
Debt assumed at fair value | $ 0 |
INVESTMENTS IN REAL ESTATE PR_7
INVESTMENTS IN REAL ESTATE PROPERTIES (Intangible Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Assets | $ 293,075 | $ 289,762 |
Gross, Liabilities | (92,475) | (79,891) |
Accumulated Amortization, Liabilities | 40,939 | 39,434 |
Net, Liabilities | (51,536) | (40,457) |
Intangible lease assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Assets | 269,956 | 266,242 |
Accumulated Amortization, Assets | (202,569) | (214,055) |
Net, Assets | 67,387 | 52,187 |
Above-market lease assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Assets | 23,119 | 23,520 |
Accumulated Amortization, Assets | (19,825) | (21,216) |
Net, Assets | $ 3,294 | $ 2,304 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Straight-line rent adjustments | $ 2,798 | $ 1,322 | $ 4,667 | $ 3,947 |
Depreciation expense | 15,332 | 12,406 | 42,740 | 34,660 |
Intangible lease asset amortization | 3,489 | 3,243 | 9,988 | 9,898 |
Above-market lease assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of above and below Market Leases | (138) | (157) | (327) | (275) |
Below-market lease | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of above and below Market Leases | $ 922 | $ 781 | $ 2,419 | $ 2,505 |
DEBT (Schedule of Debt) (Detail
DEBT (Schedule of Debt) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.01% | 3.04% |
Total borrowings | $ 921,303,000 | $ 968,544,000 |
Less: unamortized debt issuance costs | (2,769,000) | (4,083,000) |
Add: mark-to-market adjustment on assumed debt | 651,000 | 844,000 |
Total debt, net | 919,185,000 | 965,305,000 |
Gross book value of properties encumbered by debt | $ 557,103,000 | $ 584,637,000 |
Weighted average maturity of debt investments | 1 year 10 months 24 days | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 1.48% | 1.54% |
Total borrowings | $ 85,000,000 | $ 106,000,000 |
Current borrowing capacity | 365,000,000 | |
Available portions under the line of credit | $ 252,600,000 | |
Line of Credit | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.30% | 1.30% |
Line of Credit | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.10% | 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 | 3.26% | 3.27% |
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% | 1.25% |
Term Loan | Term Loan Due January 2024 | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.05% | 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% | 1.25% |
Term Loan | Term Loan Due February 2022 | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.05% | 2.05% |
Fixed-Rate Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.68% | 3.55% |
Total borrowings | $ 150,346,000 | $ 210,544,000 |
Fixed-Rate Mortgage Notes | Preston Sherry Plaza | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 49,800,000 | |
Effective interest rate on debt | 2.85% | |
Fixed-Rate Mortgage Notes | Preston Sherry Plaza | LIBOR | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.65% | |
Floating-Rate Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 2.34% | 2.50% |
Total borrowings | $ 160,957,000 | $ 127,000,000 |
Floating-Rate Mortgage Notes | LIBOR | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.25% | |
Floating-Rate Mortgage Notes | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.65% | |
Floating-Rate Mortgage Notes | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.25% | |
Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 311,303,000 |
DEBT (Summary of Borrowings Ref
DEBT (Summary of Borrowings Reflects Contractual Debt Maturities) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Remainder of 2021 | $ 33,957 | |
2022 | 327,951 | |
2023 | 85,000 | |
2024 | 325,000 | |
2025 | 70,000 | |
Thereafter | 79,395 | |
Total principal payments | 921,303 | $ 968,544 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Remainder of 2021 | 0 | |
2022 | 0 | |
2023 | 85,000 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total principal payments | $ 85,000 | 106,000 |
Line of Credit | Floating-Rate Mortgage Note Expiring in January 2023 | ||
Debt Instrument [Line Items] | ||
Term of extension | 6 months | |
Number of line of credit extensions | item | 2 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Remainder of 2021 | $ 0 | |
2022 | 200,000 | |
2023 | 0 | |
2024 | 325,000 | |
2025 | 0 | |
Thereafter | 0 | |
Total principal payments | $ 525,000 | |
Term Loan | $200 Million Term | ||
Debt Instrument [Line Items] | ||
Term of extension | 1 year | |
Number of extension options | item | 2 | |
Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Remainder of 2021 | $ 33,957 | |
2022 | 127,951 | |
2023 | 0 | |
2024 | 0 | |
2025 | 70,000 | |
Thereafter | 79,395 | |
Total principal payments | 311,303 | |
Floating-Rate Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Total principal payments | $ 160,957 | $ 127,000 |
DEBT (Summary of Location and F
DEBT (Summary of Location and Fair Value of Derivative Instruments) (Details) $ in Thousands | Sep. 30, 2021USD ($)contract | Dec. 31, 2020USD ($)contract |
Derivatives, Fair Value [Line Items] | ||
Number of derivative contracts | contract | 14 | 15 |
Total notional amount | $ 627,000 | $ 676,849 |
Estimated increase to interest expense related to active effective hedges of floating rate debt | (7,400) | |
Other Liabilities. | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 16,696 | $ 26,916 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative contracts | contract | 13 | 14 |
Total notional amount | $ 500,000 | $ 549,849 |
Estimated increase to interest expense related to termination of hedging instrument | (100) | |
Interest rate swaps | Other Liabilities. | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 16,696 | $ 26,916 |
Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative contracts | contract | 1 | 1 |
Total notional amount | $ 127,000 | $ 127,000 |
Interest rate caps | Other Liabilities. | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 0 | $ 0 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
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 | $ 17,866 | $ 15,290 | $ 51,477 | $ 42,930 |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss recognized in income | 0 | (1) | (13) | (13) |
Cash Flow Hedging | Designated Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) gain recognized in AOCI | (224) | (292) | 2,519 | (22,022) |
Amount reclassified from AOCI into interest expense | $ 2,537 | $ 2,570 | $ 7,740 | $ 5,148 |
DST PROGRAM (Details)
DST PROGRAM (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||||
DST Program Loans | $ 58,276 | $ 58,276 | $ 45,229 | ||
Rent Obligations | 17,842 | $ 15,881 | 52,318 | $ 45,792 | |
Issuances of OP Units for DST Interests | 31,788 | 57,729 | 11,233 | ||
DST Program | |||||
Variable Interest Entity [Line Items] | |||||
DST Program Loans | $ 58,300 | 58,300 | $ 45,200 | ||
Proceeds from private placement | 188,000 | 202,300 | |||
DST interest sold that were financed during period | 17,100 | 22,700 | |||
Rent Obligations | 20,700 | 13,700 | |||
Issuances of OP Units for DST Interests | $ 57,700 | $ 11,300 | |||
DST Program | OP Units | |||||
Variable Interest Entity [Line Items] | |||||
Issuance of OP Units (in shares) | 7.6 | 1.5 |
FAIR VALUE (Measured on Recurri
FAIR VALUE (Measured on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Liabilities: | ||
Derivative instruments | $ 16,696 | $ 26,916 |
Total liabilities measured at fair value | 16,696 | 26,916 |
Level 1 | ||
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Derivative instruments | 16,696 | 26,916 |
Total liabilities measured at fair value | 16,696 | 26,916 |
Level 3 | ||
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, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Debt-related investments | $ 47,883 | $ 49,885 |
DST Program Loans | 58,276 | 45,229 |
Line of credit | 85,000 | 106,000 |
Term loans | 525,000 | 525,000 |
Mortgage notes | 311,303 | 337,544 |
Estimated Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Debt-related investments | 47,883 | 49,584 |
DST Program Loans | 58,276 | 45,229 |
Line of credit | 85,000 | 105,592 |
Term loans | 525,000 | 521,945 |
Mortgage notes | $ 313,614 | $ 336,336 |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Public Offerings) (Details) shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)shares | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 183,752 |
Number of shares sold | shares | 23,916 |
Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 33,154 |
Number of shares sold | shares | 4,014 |
Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 71,660 |
Number of shares sold | shares | 9,317 |
Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 16,022 |
Number of shares sold | shares | 2,110 |
Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 57,642 |
Number of shares sold | shares | 7,780 |
Class E | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 5,274 |
Number of shares sold | shares | 695 |
Primary offering | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 166,750 |
Number of shares sold | shares | 21,679 |
Primary offering | Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 31,724 |
Number of shares sold | shares | 3,826 |
Primary offering | Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 68,283 |
Number of shares sold | shares | 8,873 |
Primary offering | Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 15,367 |
Number of shares sold | shares | 2,024 |
Primary offering | Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 51,376 |
Number of shares sold | shares | 6,956 |
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 | $ | $ 17,002 |
Number of shares sold | shares | 2,237 |
DRIP Offering | Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 1,430 |
Number of shares sold | shares | 188 |
DRIP Offering | Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 3,377 |
Number of shares sold | shares | 444 |
DRIP Offering | Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 655 |
Number of shares sold | shares | 86 |
DRIP Offering | Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 6,266 |
Number of shares sold | shares | 824 |
DRIP Offering | Class E | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 5,274 |
Number of shares sold | shares | 695 |
STOCKHOLDERS' EQUITY (Informati
STOCKHOLDERS' EQUITY (Information of Share Transactions) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Redemptions of common stock (in shares) | (6,601) | (11,608) | ||
Class T | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 9,831 | |||
Ending Balances (in shares) | 13,682 | 13,682 | ||
Class S | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 23,516 | |||
Ending Balances (in shares) | 32,148 | 32,148 | ||
Class D | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 4,098 | |||
Ending Balances (in shares) | 5,990 | 5,990 | ||
Class I | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 44,723 | |||
Ending Balances (in shares) | 51,306 | 51,306 | ||
Class E | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 60,873 | |||
Ending Balances (in shares) | 57,259 | 57,259 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 152,021 | 141,775 | 143,041 | 140,480 |
Primary shares (in shares) | 9,498 | 2,130 | 21,679 | 10,782 |
Distribution reinvestment plan (in shares) | 770 | 705 | 2,237 | 2,134 |
Share-based compensation (in shares) | 21 | 4 | 29 | 20 |
Redemptions of common stock (in shares) | (1,925) | (2,806) | (6,601) | (11,608) |
Ending Balances (in shares) | 160,385 | 141,808 | 160,385 | 141,808 |
Common Stock | Class T | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 11,692 | 8,510 | 9,831 | 5,852 |
Primary shares (in shares) | 1,985 | 602 | 3,826 | 3,322 |
Distribution reinvestment plan (in shares) | 69 | 51 | 188 | 132 |
Share-based compensation (in shares) | 0 | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (64) | (22) | (163) | (165) |
Ending Balances (in shares) | 13,682 | 9,141 | 13,682 | 9,141 |
Common Stock | Class S | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 28,958 | 21,870 | 23,516 | 20,593 |
Primary shares (in shares) | 3,245 | 668 | 8,873 | 3,083 |
Distribution reinvestment plan (in shares) | 162 | 119 | 444 | 353 |
Share-based compensation (in shares) | 0 | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (217) | (419) | (685) | (1,791) |
Ending Balances (in shares) | 32,148 | 22,238 | 32,148 | 22,238 |
Common Stock | Class D | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 5,509 | 3,783 | 4,098 | 3,499 |
Primary shares (in shares) | 568 | 151 | 2,024 | 508 |
Distribution reinvestment plan (in shares) | 32 | 23 | 86 | 69 |
Share-based compensation (in shares) | 0 | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (119) | (38) | (218) | (157) |
Ending Balances (in shares) | 5,990 | 3,919 | 5,990 | 3,919 |
Common Stock | Class I | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 47,745 | 44,311 | 44,723 | 43,732 |
Primary shares (in shares) | 3,700 | 709 | 6,956 | 3,869 |
Distribution reinvestment plan (in shares) | 282 | 262 | 824 | 804 |
Share-based compensation (in shares) | 21 | 4 | 29 | 20 |
Redemptions of common stock (in shares) | (442) | (856) | (1,226) | (3,995) |
Ending Balances (in shares) | 51,306 | 44,430 | 51,306 | 44,430 |
Common Stock | Class E | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balances (in shares) | 58,117 | 63,301 | 60,873 | 66,804 |
Primary shares (in shares) | 0 | 0 | 0 | 0 |
Distribution reinvestment plan (in shares) | 225 | 250 | 695 | 776 |
Share-based compensation (in shares) | 0 | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (1,083) | (1,471) | (4,309) | (5,500) |
Ending Balances (in shares) | 57,259 | 62,080 | 57,259 | 62,080 |
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, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
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 | $ 7,984 | $ 7,696 | $ 7,562 | $ 7,464 | $ 7,482 | $ 7,539 | $ 7,533 | $ 23,242 | $ 30,018 |
Other Cash Distributions | 2,613 | 2,266 | 2,010 | 1,750 | 1,592 | 1,611 | 1,499 | 6,889 | 6,452 |
Reinvested in Shares | 5,985 | 5,723 | 5,526 | 5,347 | 5,282 | 5,316 | 5,360 | 17,234 | 21,305 |
Total Distributions | $ 16,582 | $ 15,685 | $ 15,098 | $ 14,561 | $ 14,356 | $ 14,466 | $ 14,392 | $ 47,365 | $ 57,775 |
STOCKHOLDERS' EQUITY (Redemptio
STOCKHOLDERS' EQUITY (Redemptions and Repurchases Activity) (Details) - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||
Number of shares requested for redemption or repurchase (in shares) | 6,601 | 11,608 |
Number of shares redeemed or repurchased (in shares) | 6,601 | 11,608 |
% of shares requested that were redeemed or repurchased | 100.00% | 100.00% |
Average redemption or repurchase price per share (usd per share) | $ 7.59 | $ 7.50 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS (Schedule of redeemable noncontrolling interest activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Redeemable Noncontrolling Interest [Line Items] | ||||||
Beginning balance | $ 3,798 | $ 0 | $ 0 | |||
Settlement of performance participation allocation | 4,608 | 3,776 | 4,600 | $ 3,800 | ||
Distributions declared on redeemable noncontrolling interests | $ (106) | $ (47) | (314) | (141) | ||
Net income (loss) attributable to redeemable noncontrolling interests | 99 | (39) | 169 | (71) | ||
Change from cash flow hedging activities attributable to redeemable noncontrolling interests | 15 | 8 | 70 | (55) | ||
Redemption value allocation adjustment to redeemable noncontrolling interests | 293 | 281 | ||||
Ending balance | 8,624 | $ 3,790 | 8,624 | $ 3,790 | 3,798 | 0 |
Due to Related Parties | 14,075 | 14,075 | 8,455 | |||
Black Creek Diversified Property Advisors, LLC | Performance Participation Allocation | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Due to Related Parties | $ 7,769 | $ 7,769 | $ 4,608 | $ 3,800 |
RELATED PARTY TRANSACTIONS - (S
RELATED PARTY TRANSACTIONS - (Summary of Fees and Other Amounts Earned by Advisor and Its Related Parties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | $ 18,760 | $ 10,082 | $ 46,520 | $ 32,537 | ||
Payable as of | 14,075 | 14,075 | $ 8,455 | |||
Black Creek Diversified Property Advisors, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Amount reimbursed for services | 2,600 | 2,100 | 7,300 | 5,800 | ||
Black Creek Diversified Property Advisors, LLC | Other Liabilities. | ||||||
Related Party Transaction [Line Items] | ||||||
Payable as of | 26,400 | 26,400 | 15,500 | |||
Black Creek Diversified Property Advisors, LLC | Ongoing Distribution Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | 788 | 515 | 2,064 | 1,482 | ||
Payable as of | 291 | 291 | 188 | |||
Black Creek Diversified Property Advisors, LLC | Advisory Fee, Fixed Component [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | 5,480 | 4,210 | 15,389 | 12,666 | ||
Payable as of | 1,893 | 1,893 | 1,547 | |||
Black Creek Diversified Property Advisors, LLC | Performance Participation Allocation | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | 3,774 | 1,333 | 7,769 | 3,343 | ||
Payable as of | 7,769 | 7,769 | 4,608 | $ 3,800 | ||
Black Creek Diversified Property Advisors, LLC | Other Expense Reimbursements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | 2,950 | 2,691 | 8,783 | 7,271 | ||
Payable as of | 3,804 | 3,804 | 2,112 | |||
Black Creek Diversified Property Advisors, LLC | Other DST Program Related Costs [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | 1,710 | 515 | 3,978 | 3,084 | ||
Payable as of | 82 | 82 | 0 | |||
Black Creek Capital Markets, LLC [Member] | Selling commissions and dealer manager fees | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | 845 | 226 | 1,866 | 1,216 | ||
Payable as of | 0 | 0 | 0 | |||
Black Creek Capital Markets, LLC [Member] | Other Expense Reimbursements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | 107 | 45 | 249 | 431 | ||
Payable as of | 0 | 0 | 0 | |||
Black Creek Capital Markets, LLC [Member] | DST Program selling commissions, dealer manager and distribution fees | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expense | 3,106 | $ 547 | 6,422 | $ 3,044 | ||
Payable as of | $ 236 | $ 236 | $ 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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to common stockholders - basic | $ 13,940 | $ (10,830) | $ 22,922 | $ (19,827) |
Net income (loss) attributable to redeemable OP Units | 99 | (39) | 169 | (71) |
Net income (loss) attributable to OP Units | 1,654 | (839) | 2,430 | (1,515) |
Net income (loss) attributable to common stockholders - diluted | $ 15,693 | $ (11,708) | $ 25,521 | $ (21,413) |
Weighted-average shares outstanding - basic | 157,025 | 141,682 | 151,045 | 142,216 |
Incremental weighted-average shares effect of conversion of OP Units (in shares) | 19,752 | 11,484 | 17,430 | 11,449 |
Weighted-average shares outstanding - diluted (in shares) | 176,777 | 153,166 | 168,475 | 153,665 |
Basic | $ 0.09 | $ (0.08) | $ 0.15 | $ (0.14) |
Diluted | $ 0.09 | $ (0.08) | $ 0.15 | $ (0.14) |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncash Investing and Financing Items [Abstract] | ||||
Distributions reinvested in common stock | $ 17,001 | $ 15,972 | ||
Change in accrued future ongoing distribution fees | 10,864 | 335 | ||
Increase in DST Program Loans receivable through DST Program capital raising | 17,105 | 22,700 | ||
Redeemable noncontrolling interest issued as settlement of performance participation allocation | 4,608 | 3,776 | ||
Redemption value allocation adjustment to redeemable noncontrolling interest | 293 | 281 | ||
Mortgage notes assumed on real estate acquisitions at fair value | 0 | 9,834 | ||
Issuances of OP Units for DST Interests | 57,729 | 11,240 | ||
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | 12,463 | 16,124 | $ 11,266 | $ 97,772 |
Restricted cash | 10,533 | 10,316 | 10,468 | 10,010 |
Cash, cash equivalents and restricted cash | $ 22,996 | $ 26,440 | $ 21,734 | $ 107,782 |
SEGMENT FINANCIAL INFORMATION_2
SEGMENT FINANCIAL INFORMATION (Schedule of Total Assets by Business Segment) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Number of reportable segments | segment | 4 | |
Total assets | $ 2,378,143 | $ 2,111,560 |
Operating Segments | Office properties | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 387,423 | 459,646 |
Operating Segments | Retail properties | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 712,769 | 670,455 |
Operating Segments | Residential properties | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 356,234 | 363,322 |
Operating Segments | Industrial properties | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 740,237 | 461,150 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 181,480 | $ 156,987 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Rental revenues | $ 53,596 | $ 44,129 | $ 152,657 | $ 132,995 |
Rental expenses | (17,842) | (15,881) | (52,318) | (45,792) |
Net operating income | 35,754 | 28,248 | 100,339 | 87,203 |
Real estate-related depreciation and amortization | 18,821 | 15,649 | 52,728 | 44,558 |
Office properties | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 16,887 | 16,237 | 49,663 | 48,988 |
Rental expenses | (7,111) | (7,748) | (22,116) | (23,061) |
Net operating income | 9,776 | 8,489 | 27,547 | 25,927 |
Real estate-related depreciation and amortization | 4,945 | 4,851 | 14,814 | 14,676 |
Retail properties | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 18,679 | 17,310 | 53,600 | 53,053 |
Rental expenses | (4,660) | (4,535) | (13,854) | (12,561) |
Net operating income | 14,019 | 12,775 | 39,746 | 40,492 |
Real estate-related depreciation and amortization | 5,336 | 5,309 | 14,445 | 14,867 |
Residential properties | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 7,237 | 4,351 | 20,885 | 14,591 |
Rental expenses | (3,257) | (2,282) | (9,666) | (6,638) |
Net operating income | 3,980 | 2,069 | 11,219 | 7,953 |
Real estate-related depreciation and amortization | 2,283 | 2,234 | 7,612 | 6,560 |
Industrial properties | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 10,793 | 6,231 | 28,509 | 16,363 |
Rental expenses | (2,814) | (1,316) | (6,682) | (3,532) |
Net operating income | 7,979 | 4,915 | 21,827 | 12,831 |
Real estate-related depreciation and amortization | $ 6,257 | $ 3,255 | $ 15,857 | $ 8,455 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of net operating income attributable to common shareholders | ||||
Net income (loss) attributable to common stockholders | $ 13,940 | $ (10,830) | $ 22,922 | $ (19,827) |
Debt-related income | (2,298) | (981) | (6,741) | (1,181) |
Real estate-related depreciation and amortization | 18,821 | 15,649 | 52,728 | 44,558 |
General and administrative expenses | 2,183 | 1,977 | 6,582 | 5,769 |
Advisory fees, related party | 5,480 | 4,210 | 15,389 | 12,666 |
Performance participation allocation | 3,774 | 1,333 | 7,769 | 3,343 |
Acquisition costs and reimbursements | 738 | 240 | 1,451 | 842 |
Litigation expense | 0 | 2,500 | 0 | 2,500 |
Impairment of real estate property | 0 | 0 | 758 | 0 |
Other income | (524) | (262) | (1,274) | (619) |
Interest expense | 17,866 | 15,290 | 51,477 | 42,930 |
Gain on sale of real estate property | (25,979) | 0 | (53,321) | (2,192) |
Net income (loss) attributable to redeemable noncontrolling interests | 99 | (39) | 169 | (71) |
Net income (loss) attributable to noncontrolling interests | 1,654 | (839) | 2,430 | (1,515) |
Net operating income | $ 35,754 | $ 28,248 | $ 100,339 | $ 87,203 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Oct. 29, 2021USD ($)property | Oct. 20, 2021USD ($) | Nov. 03, 2021USD ($)property | Oct. 01, 2021USD ($)property | Sep. 30, 2021USD ($)property | Dec. 31, 2020USD ($) |
Subsequent Event [Line Items] | ||||||
Accounting basis (net of accumulated depreciation and amortization) | $ 2,196,663 | $ 1,954,573 | ||||
Industrial | Subsequent Event | Campus Drive | ||||||
Subsequent Event [Line Items] | ||||||
Asset purchase price | $ 6,400 | |||||
Number of real estate properties | property | 1 | |||||
Industrial | Subsequent Event | VM 8 Logistics Center | Scenario, Plan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Asset purchase price | $ 17,400 | |||||
Number of real estate properties | property | 1 | |||||
Industrial | Disposed of by Sale | ||||||
Subsequent Event [Line Items] | ||||||
Number of real estate properties | property | 1 | |||||
Retail properties | Durgin Square | ||||||
Subsequent Event [Line Items] | ||||||
Accounting basis (net of accumulated depreciation and amortization) | $ 21,700 | |||||
Retail properties | Disposed of by Sale | ||||||
Subsequent Event [Line Items] | ||||||
Number of real estate properties | property | 1 | |||||
Retail properties | Disposed of by Sale | Durgin Square | Subsequent Event | Scenario, Plan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Gross proceeds | $ 40,500 | |||||
Number of real estate properties | property | 1 | |||||
Core Tucson Main Gate | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Membership interest contract purchase price | $ 124,000 |