Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 03, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-52596 | ||
Entity Registrant Name | Ares Real Estate Income Trust 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Denver, Colorado | ||
Auditor Firm ID | 185 | ||
Entity Central Index Key | 0001327978 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class T | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class T Shares of Common Stock, $0.01 par value | ||
Entity Common Stock, Shares Outstanding | 19,026,018 | ||
Class S | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class S Shares of Common Stock, $0.01 par value | ||
Entity Common Stock, Shares Outstanding | 40,489,159 | ||
Class D | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class D Shares of Common Stock, $0.01 par value | ||
Entity Common Stock, Shares Outstanding | 7,634,065 | ||
Class I | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class I Shares of Common Stock, $0.01 par value | ||
Entity Common Stock, Shares Outstanding | 59,285,778 | ||
Class E | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class E Shares of Common Stock, $0.01 par value | ||
Entity Common Stock, Shares Outstanding | 55,451,690 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Net investment in real estate properties | $ 2,589,826 | $ 1,954,573 |
Investment in unconsolidated joint venture partnerships | 57,425 | 0 |
Debt-related investments, net | 105,752 | 49,628 |
Cash and cash equivalents | 10,605 | 11,266 |
Restricted cash | 3,747 | 10,468 |
DST Program Loans | 62,123 | 45,229 |
Other assets | 56,397 | 40,396 |
Assets held for sale | 105,096 | 0 |
Total assets | 2,990,971 | 2,111,560 |
Liabilities | ||
Accounts payable and accrued expenses | 38,182 | 35,763 |
Debt, net | 1,363,234 | 965,305 |
Intangible lease liabilities, net | 47,499 | 40,457 |
Financing obligations, net | 661,075 | 502,533 |
Other liabilities | 89,817 | 65,813 |
Liabilities related to assets held for sale | 5,744 | 0 |
Total liabilities | 2,205,551 | 1,609,871 |
Commitments and contingencies (Note 17) | ||
Redeemable noncontrolling interest | 8,994 | 3,798 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value-200,000 shares authorized, none issued and outstanding | 0 | 0 |
Additional paid-in capital | 1,457,296 | 1,269,146 |
Distributions in excess of earnings | (865,844) | (841,496) |
Accumulated other comprehensive loss | (13,418) | (27,431) |
Total stockholders' equity | 579,730 | 401,649 |
Noncontrolling interests | 196,696 | 96,242 |
Total equity | 776,426 | 497,891 |
Total liabilities and equity | 2,990,971 | 2,111,560 |
Class E | ||
Stockholders' equity: | ||
Common stock | 563 | 609 |
Class T | ||
Stockholders' equity: | ||
Common stock | 164 | 98 |
Class S | ||
Stockholders' equity: | ||
Common stock | 358 | 235 |
Class D | ||
Stockholders' equity: | ||
Common stock | 67 | 41 |
Class I | ||
Stockholders' equity: | ||
Common stock | $ 544 | $ 447 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 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) | 56,328 | 60,873 |
Common stock, shares outstanding (in shares) | 56,328 | 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) | 16,425 | 9,831 |
Common stock, shares outstanding (in shares) | 16,425 | 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) | 35,757 | 23,516 |
Common stock, shares outstanding (in shares) | 35,757 | 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) | 6,749 | 4,098 |
Common stock, shares outstanding (in shares) | 6,749 | 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) | 54,406 | 44,723 |
Common stock, shares outstanding (in shares) | 54,406 | 44,723 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Rental revenues | $ 209,176 | $ 184,245 | $ 184,441 |
Debt-related income | 9,174 | 2,347 | 227 |
Total revenues | 218,350 | 186,592 | 184,668 |
Operating expenses: | |||
Rental expenses | 69,773 | 62,378 | 61,060 |
Real estate-related depreciation and amortization | 74,415 | 62,923 | 57,342 |
General and administrative expenses | 8,797 | 7,548 | 7,894 |
Advisory fees | 21,433 | 17,211 | 13,637 |
Performance participation allocation | 15,327 | 4,608 | 3,776 |
Acquisition costs and reimbursements | 2,636 | 1,108 | 1,091 |
Litigation expense | 0 | 2,500 | 0 |
Impairment of real estate property | 758 | 0 | 113 |
Total operating expenses | 193,139 | 158,276 | 144,913 |
Other expenses (income): | |||
Equity in income from unconsolidated joint venture partnerships | (114) | 0 | 0 |
Interest expense | 70,494 | 58,747 | 48,170 |
Gain on sale of real estate property | (77,857) | (13,335) | (160,537) |
Gain on extinguishment of debt and financing commitments, net | 0 | 0 | (1,002) |
Other income | (1,852) | (1,037) | (153) |
Total other expenses (income) | (9,329) | 44,375 | (113,522) |
Net income (loss) | 34,540 | (16,059) | 153,277 |
Net (income) loss attributable to redeemable noncontrolling interests | (221) | 54 | 0 |
Net (income) loss attributable to noncontrolling interests | (3,565) | 1,091 | (10,726) |
Net income (loss) attributable to common stockholders | $ 30,754 | $ (14,914) | $ 142,551 |
Weighted average number of common shares outstanding | |||
Weighted-average shares outstanding-basic | 154,767 | 142,268 | 136,925 |
Weighted-average shares outstanding-diluted | 174,330 | 154,052 | 147,316 |
Net income (loss) attributable to common stockholders per common share - basic | $ 0.20 | $ (0.10) | $ 1.04 |
Net income (loss) attributable to common stockholders per common share - diluted | $ 0.20 | $ (0.10) | $ 1.04 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 34,540 | $ (16,059) | $ 153,277 |
Net unrealized loss from available-for-sale securities | 0 | 0 | (100) |
Change from cash flow hedging derivatives | 15,897 | (13,842) | (16,315) |
Comprehensive income (loss) | 50,437 | (29,901) | 136,862 |
Comprehensive (income) loss attributable to redeemable noncontrolling interests | (324) | 99 | 0 |
Comprehensive (income) loss attributable to noncontrolling interests | (5,346) | 2,119 | (9,495) |
Comprehensive income (loss) attributable to common stockholders | $ 44,767 | $ (27,683) | $ 127,367 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total |
Beginning Balances (in shares) at Dec. 31, 2018 | 130,852 | |||||
Beginning Balances at Dec. 31, 2018 | $ 1,309 | $ 1,199,736 | $ (867,849) | $ 522 | $ 77,295 | $ 411,013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 142,551 | 10,726 | 153,277 | |||
Net unrealized loss from available-for-sale securities | (100) | (100) | ||||
Unrealized gain (loss) from derivative instruments | (15,084) | (1,231) | (16,315) | |||
Issuance of common stock, net of offering costs (in shares) | 25,955 | |||||
Issuance of common stock, net of offering costs | $ 260 | 177,519 | 177,779 | |||
Share-based compensation, net of forfeitures (in shares) | 86 | |||||
Share-based compensation, net of forfeitures | $ 1 | 636 | 637 | |||
Redemptions of noncontrolling interests | (218) | (1,220) | $ (1,438) | |||
Redemptions of common stock (in shares) | (16,413) | (16,413) | ||||
Redemptions of common stock | $ (165) | (120,415) | $ (120,580) | |||
Amortization of share-based compensation | (111) | (111) | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees | (49,961) | (3,913) | (53,874) | |||
Ending Balances (in shares) at Dec. 31, 2019 | 140,480 | |||||
Ending 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 unrealized loss from available-for-sale securities | 0 | |||||
Unrealized gain (loss) from derivative instruments | (13,842) | |||||
Net income (loss) (excluding portion attributable to redeemable noncontrolling interest) | (14,914) | (1,091) | (16,005) | |||
Unrealized gain (loss) from derivative instruments (excluding portion attributable to redeemable noncontrolling interest) | (12,769) | (1,028) | (13,797) | |||
Issuance of common stock, net of offering costs (in shares) | 16,612 | |||||
Issuance of common stock, net of offering costs | $ 166 | 118,207 | 118,373 | |||
Share-based compensation, net of forfeitures (in shares) | 20 | |||||
Share-based compensation, net of forfeitures | 150 | 150 | ||||
Redemptions of noncontrolling interests | (711) | (7,321) | $ (8,032) | |||
Redemptions of common stock (in shares) | (14,071) | (14,071) | ||||
Redemptions of common stock | $ (141) | (105,447) | $ (105,588) | |||
Amortization of share-based compensation | 110 | 110 | ||||
Redemption value allocation adjustment to redeemable noncontrolling interest | (310) | (310) | ||||
Issuances of OP Units for DST Interests | 28,266 | 28,266 | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees (excludes attributable to redeemable noncontrolling interest) | (51,323) | (4,241) | (55,564) | |||
Ending Balances (in shares) at Dec. 31, 2020 | 143,041 | |||||
Ending 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 unrealized loss from available-for-sale securities | 0 | |||||
Unrealized gain (loss) from derivative instruments | 15,897 | |||||
Net income (loss) (excluding portion attributable to redeemable noncontrolling interest) | 30,754 | 3,565 | 34,319 | |||
Unrealized gain (loss) from derivative instruments (excluding portion attributable to redeemable noncontrolling interest) | 14,013 | 1,781 | 15,794 | |||
Issuance of common stock, net of offering costs (in shares) | 35,379 | |||||
Issuance of common stock, net of offering costs | $ 354 | 259,175 | 259,529 | |||
Share-based compensation, net of forfeitures (in shares) | 29 | |||||
Share-based compensation, net of forfeitures | 217 | 217 | ||||
Redemptions of noncontrolling interests | (506) | (5,456) | $ (5,962) | |||
Redemptions of common stock (in shares) | (8,784) | (8,784) | ||||
Redemptions of common stock | $ (88) | (67,146) | $ (67,234) | |||
Amortization of share-based compensation | (22) | (22) | ||||
Redemption value allocation adjustment to redeemable noncontrolling interest | (682) | (682) | ||||
Issuances of OP Units for DST Interests | 107,480 | 107,480 | ||||
Distributions declared on common stock and noncontrolling interests, net of distribution fees (excludes attributable to redeemable noncontrolling interest) | (2,886) | (55,102) | (6,916) | (64,904) | ||
Ending Balances (in shares) at Dec. 31, 2021 | 169,665 | |||||
Ending Balances at Dec. 31, 2021 | $ 1,696 | $ 1,457,296 | $ (865,844) | $ (13,418) | $ 196,696 | $ 776,426 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Net income (loss) attributable to redeemable noncontrolling interests | $ 221 | $ (54) | $ 0 |
Unrealized gain (loss) from derivative instruments allocated to redeemable noncontrolling interest | 103 | (45) | |
Distribution fees attributable to redeemable noncontrolling interest | $ 418 | $ 189 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | |||
Net income (loss) | $ 34,540 | $ (16,059) | $ 153,277 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Real estate-related depreciation and amortization | 74,415 | 62,923 | 57,342 |
Straight-line rent and amortization of above- and below-market leases | (8,939) | (8,703) | (11,026) |
Gain on sale of real estate property | (77,857) | (13,335) | (160,537) |
Impairment of real estate property | 758 | 0 | 113 |
Gain on extinguishment of debt and financing commitments, net | 0 | 0 | (1,002) |
Amortization of debt and financing obligation costs | 13,373 | 9,775 | 6,749 |
Other | 939 | 2,198 | 1,034 |
Changes in operating assets and liabilities | 12,161 | 4,329 | 3,398 |
Net cash provided by operating activities | 49,390 | 41,128 | 49,348 |
Investing activities: | |||
Real estate acquisitions | (774,335) | (357,815) | (396,901) |
Capital expenditures | (36,899) | (41,092) | (45,217) |
Proceeds from disposition of real estate property | 223,791 | 27,372 | 341,677 |
Principal collections on debt-related investments | 2,405 | 173 | 8,104 |
Investment in unconsolidated joint venture partnerships | (57,310) | 0 | 0 |
Investment in debt-related investments | (58,291) | (45,539) | 0 |
Other | (6,069) | (3,355) | (574) |
Net cash used in investing activities | (706,708) | (420,256) | (92,911) |
Financing activities: | |||
Proceeds from mortgage notes | 195,600 | 0 | 62,000 |
Repayments of mortgage notes | (60,653) | (3,036) | (35,075) |
Net proceeds (repayments) of line of credit | 150,000 | 106,000 | (131,000) |
Proceeds from term loan | 0 | 0 | 50,000 |
Redemptions of common stock | (67,234) | (105,588) | (120,580) |
Distributions paid to common stockholders | (31,201) | (30,010) | (29,117) |
Proceeds from issuance of common stock | 251,527 | 104,703 | 172,309 |
Proceeds from financing obligations, net | 253,959 | 251,671 | 194,778 |
Offering costs for issuance of common stock and private placements | (11,549) | (9,635) | (12,186) |
Distributions paid to noncontrolling interest holders and redeemable noncontrolling interest holders | (6,624) | (4,335) | (3,913) |
Redemption of noncontrolling interests | (5,962) | (8,032) | (1,438) |
Deferred financing costs paid | (17,927) | (8,658) | (12,676) |
Other | 0 | 0 | 1,205 |
Net cash provided by financing activities | 649,936 | 293,080 | 134,307 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (7,382) | (86,048) | 90,744 |
Cash, cash equivalents and restricted cash, at beginning of period | 21,734 | 107,782 | 17,038 |
Cash, cash equivalents and restricted cash, at end of period | $ 14,352 | $ 21,734 | $ 107,782 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS Unless the context otherwise requires, the “Company”, “we,” “our” or “us” refers to Ares Real Estate Income Trust Inc. and its consolidated subsidiaries. Ares Real Estate Income Trust Inc. is a Maryland corporation formed on April 11, 2005. 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 13” 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. We are primarily focused on investing in and operating a diverse portfolio of real property and investing in other real estate-related assets. We currently focus our investment activities primarily across the major U.S. property sectors (industrial, residential (which includes and/or may include multi-family and other types of rental housing such as manufactured, student, and single family rental housing), office (which includes and/or may include medical office and life science laboratories) and retail). To a lesser extent, we intend to strategically invest in geographies outside of the U.S., which may include Canada, the United Kingdom, Europe and other foreign jurisdictions, and in other sectors such as triple net lease, real estate debt (which may include mortgages and subordinated interests) and infrastructure, to create a diversified blend of current income and long-term value appreciation. As of December 31, 2021, our consolidated real property portfolio consisted of 67 properties. We operate four reportable segments: retail, office, residential, and industrial. As used herein, the term “commercial” refers to our office, retail and industrial properties or customers, as applicable. See “Note 18” for information regarding the financial results by segment. We believe we have operated in such a manner as to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes, and we intend to continue to operate in accordance with the requirements for qualification as a REIT. We utilize an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) organizational structure to hold all or substantially all of our assets through an operating partnership, Black Creek Diversified Operating Partnership LP (the “Operating Partnership”), of which we are the sole general partner and a limited partner. We are currently offering shares pursuant to a public offering and intend to operate as a perpetual-life REIT, which means that we intend to offer shares continuously through our ongoing primary offerings and our distribution reinvestment plan. See “Note 10” for detail regarding our public offerings. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. Basis of Consolidation The consolidated financial statements include the accounts of Ares Real Estate Income Trust Inc., the Operating Partnership, their wholly-owned subsidiaries, including a taxable REIT subsidiary, and their consolidated joint ventures, as well as amounts related to noncontrolling interests. See “Noncontrolling Interests” below for further detail concerning the accounting policies regarding noncontrolling interests. All material intercompany accounts and transactions have been eliminated. The Operating Partnership meets the criteria of a variable interest entity (“VIE”) as the Operating Partnership’s limited partners do not have the right to remove the general partner and do not have substantive participating rights in the operations of the Operating Partnership. Pursuant to the operating partnership agreement, we are the primary beneficiary of the Operating Partnership as we have the obligation to absorb losses and receive benefits, and the power to control substantially all of the activities which most significantly impact the economic performance of the Operating Partnership. As such, the Operating Partnership continues to be consolidated within our consolidated financial statements. We consolidate all entities in which we have a controlling financial interest through majority ownership or voting rights and variable interest entities whereby we are the primary beneficiary. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider whether the entity is a variable interest entity (“VIE”) and whether we are the primary beneficiary. We are the primary beneficiary of a VIE when we have (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE. Entities that do not qualify as VIEs are generally considered voting interest entities (“VOEs”) and are evaluated for consolidation under the voting interest model. VOEs are consolidated when we control the entity through a majority voting interest or other means. When the requirements for consolidation are not met and we have significant influence over the operations of the entity, the investment is accounted for under the equity method of accounting. Equity method investments are initially recorded at cost and subsequently adjusted for our pro-rata share of net income, contributions and distributions. Use of Estimates GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary. Reclassifications Certain items in our consolidated balance sheet as of December 31, 2020 and in our consolidated statements of operations for the years ended December 31, 2019 and 2020 have been reclassified to conform to the 2021 presentation. Our accrued performance participation allocation has been reclassified from accounts payable and accrued expenses to other liabilities in our consolidated balance sheets. Additionally, acquisition costs and reimbursements have been reclassified from general and administrative expenses to be shown separately on one line item on the consolidated statements of operations. Investment in Real Estate Properties We first determine whether an acquisition constitutes a business or asset acquisition. Upon either a business or asset acquisition, the purchase price of a property is allocated to land, building and intangible lease assets and liabilities. The allocation of the purchase price to building is based on management’s estimate of the property’s “as-if” vacant fair value. The “as-if” vacant fair value is determined by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the purchase price to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, tenant improvements, legal and other related costs. The allocation of the purchase price to above-market lease assets and below-market lease liabilities results from in-place leases being above or below management’s estimate of fair market rental rates at the acquisition date and are measured over a period equal to the remaining term of the lease for above-market leases and the remaining term of the lease, plus the term of any below-market fixed-rate renewal option periods, if applicable, for below-market leases. Intangible lease assets, above-market lease assets, and below-market lease liabilities are collectively referred to as “intangible lease assets and liabilities.” If any debt is assumed in an acquisition, the difference between the fair value and the face value of debt is recorded as a premium or discount and amortized to interest expense over the life of the debt assumed. See “Note 3” for additional information regarding debt assumed in connection with our 2021 and 2020 acquisitions. Transaction costs associated with the acquisition of a property are capitalized as incurred in an asset acquisition and are allocated to land, building and intangible lease assets on a relative fair value basis. Transaction costs associated with business combinations are expensed as they are incurred. Properties that are probable to be sold are to be designated as “held for sale” on the consolidated balance sheets when certain criteria are met. The results of operations for acquired businesses and properties are included in the consolidated statements of operations from their respective acquisition dates. Intangible lease assets are amortized to real estate-related depreciation and amortization over the remaining lease term. Above-market lease assets are amortized as a reduction in rental revenues over the remaining lease term and below-market lease liabilities are amortized as an increase in rental revenues over the remaining lease term, plus any applicable fixed-rate renewal option periods. We expense any unamortized intangible lease asset or record an adjustment to rental revenue for any unamortized above-market lease asset or below-market lease liability when a customer terminates a lease before the stated lease expiration date. During the years ended December 31, 2021, 2020 and 2019, we recorded $0.9 million, $2.6 million and $2.0 million, respectively, related to write-offs of unamortized intangible lease assets and liabilities due to early lease terminations. Land, building, building and land improvements, tenant improvements, lease commissions, and intangible lease assets and liabilities, which are collectively referred to as “real estate assets,” are stated at historical cost less accumulated depreciation and amortization. Costs associated with the development and improvement of our real estate assets are capitalized as incurred. These costs include capitalized interest, insurance, real estate taxes and certain general and administrative expenses if such costs are incremental and identifiable to a specific activity to prepare the real estate asset for its intended use. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as describe in the following table: Land Not depreciated Building 20-40 years Building and land improvements 10-40 years Tenant improvements Lesser of useful life or lease term Lease commissions Over lease term Intangible in-place lease assets Over lease term Above-market lease assets Over lease term Below-market lease liabilities Over lease term, including below-market fixed-rate renewal options Certain of our investments in real estate are subject to a ground lease, for which a lease liability and corresponding right of use asset were recognized. We calculate the amount of the lease liability and right of use asset by taking the present value of the remaining lease payments, and adjusting the right of use asset for any existing straight-line ground rent liability and acquired ground lease intangibles. An estimated incremental borrowing rate of a loan with a similar term as the ground lease was used as the discount rate. The lease liability is included as a component of other liabilities, and the related right of use asset is recorded as a component of net investments in real estate properties on our consolidated balance sheets. The amortization of the below-market ground lease is recorded as an adjustment to real estate-related depreciation and amortization on our consolidated statements of operations. Real estate assets that are determined to be held and used will be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, and we will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. Refer to “Note 3” for detail regarding the non-cash impairment charges recorded during the years ended December 31, 2021 and 2019. There were no impairment charges during the year ended December 31, 2020. Investment in Unconsolidated Joint Venture Partnerships We analyze our investment in an unconsolidated joint venture under GAAP to determine if the joint venture is a VIE and whether the requisite substantial participating rights described in the GAAP are held by the partners not affiliated with the us. If the joint venture is not a VIE and the partners not affiliated with us hold substantial participating rights, we account for our investment in the joint venture under the equity method. Under the equity method, the investment is initially recorded at cost (including direct acquisition costs) and subsequently adjusted to reflect our proportionate share of equity in the joint venture’s net (income) loss, distributions received, contributions made and certain other adjustments made, as appropriate, which is included in investment in unconsolidated joint venture partnerships on our consolidated balance sheets. The proportionate share of ongoing income or loss of the unconsolidated joint venture partnerships is recognized in equity in (income) loss of unconsolidated joint venture partnerships on the consolidated statements of operations. The outside basis portion of our unconsolidated joint venture partnerships (if applicable) is amortized over the anticipated useful lives of the joint ventures’ tangible and intangible assets acquired and liabilities assumed. When circumstances indicate there may have been a reduction in the value of an equity investment, we evaluate whether the loss is other than temporary. If we conclude it is other than temporary, an impairment charge is recognized to reflect the equity investment at fair value. No impairment losses were recorded related to our investment in unconsolidated joint venture partnerships for the year ended December 31, 2021. Debt-Related Investments Debt-related investments are considered to be held for investment, as we have both the intent and ability to hold these investments until maturity. Accordingly, these assets are carried at cost, net of unamortized loan origination costs and fees, discounts, repayments and unfunded commitments unless such loans or investments are deemed to be impaired. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less, such as money market mutual funds or certificates of deposit. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk. Restricted Cash Restricted cash consists primarily of lender and property-related escrow accounts. Derivative Instruments We record our derivative instruments at fair value. The accounting for changes in fair value of derivative instruments depends on whether it has been designated and qualifies as a hedge and, if so, the type of hedge. Our interest rate swap derivative instruments are designated as cash flow hedges and are used to hedge exposure to variability in expected future interest payments. The change in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets and is subsequently reclassified into earnings as interest expense for the period that the hedged forecasted transaction affects earnings, which is when the interest expense is recognized on the related debt. Our interest rate cap derivative instruments are not designated as hedges and therefore, changes in fair value must be recognized through income. We do not use derivative instruments for trading or speculative purposes. Deferred Financing Costs Deferred financing costs include fees and costs incurred to obtain long-term financing, including costs associated with financing obligations. These fees and costs are amortized to interest expense over the expected terms of the related credit facilities. Unamortized deferred financing costs are written off if debt is retired before its expected maturity date. Accumulated amortization of deferred financing costs was approximately $13.0 million and $13.9 million as of December 31, 2021 and 2020, respectively. Our interest expense for the years ended December 31, 2021, 2020 and 2019 included $13.6 million, $10.0 million and $6.9 million, respectively, of amortization of financing costs. Distribution Fees Distribution fees are paid monthly. Distribution fees are accrued upon the issuance of Class T, Class S and Class D shares. As of the balance sheet date, we accrue for: (i) the monthly amount payable, and (ii) the estimated amount of distribution fees that we may pay in future periods. The accrued distribution fees are reflected in additional paid-in capital in stockholders’ equity. See “Note 13” for additional information regarding when distribution fees become payable. Noncontrolling Interests Due to our control of the Operating Partnership through our sole general partner interest and our limited partner interest, we consolidate the Operating Partnership. The remaining limited partner interests in the Operating Partnership are owned by third-party investors and are presented as noncontrolling interests in the consolidated financial statements. The noncontrolling interests are reported on the consolidated balance sheets within permanent equity, separate from stockholders’ equity. For consolidated joint venture partnerships, the non-controlling partner’s share of the assets, liabilities and operations of the joint venture is included in noncontrolling interests as equity. The noncontrolling partner’s interest is generally computed as the joint venture partner’s ownership percentage. Redeemable Noncontrolling Interest The Former Sponsor held, directly or indirectly, partnership units in the Operating Partnership (“OP Units”), which were issued as payment of the performance participation allocation (also referred to as the performance component of the advisory fee) pursuant to the advisory agreement (the “Advisory Agreement”) by and among us, the Operating Partnership and the Advisor. Subsequent to the Transaction (as defined in “Note 13”), the Former Sponsor transferred these OP Units to its members or their affiliate. We have classified these OP Units as redeemable noncontrolling interest in mezzanine equity on the consolidated balance sheets due to the fact that, as defined in the operating partnership agreement, the limited partners who hold these OP Units have the ability to transfer or redeem its OP units at any time. The redeemable noncontrolling interest is 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. See “Note 11” for additional information regarding redeemable noncontrolling interests. Revenue Recognition When a lease is entered into, we first determine if the collectability from the customer is probable. If the collectability is not probable, we recognize revenue when the payment has been received. If the collectability is determined to be probable, we record rental revenue on a straight-line basis over the full lease term. Certain properties have leases that offer the customer a period of time where no rent is due or where rent payments change during the term of the lease. Accordingly, we record receivables from customers for rent that we expect to collect over the remaining lease term rather than currently, which are recorded as a straight-line rent receivable. We analyze accounts receivable by considering customer creditworthiness, current economic trends, including the impact of the outbreak of the current novel coronavirus (COVID-19) pandemic on customers’ businesses, and customers’ ability to make payments on time and in full when evaluating the adequacy of the allowance for doubtful accounts receivable. As of December 31, 2021, the impact of COVID-19 on customer collectability has been minimal and has not had a material impact on the consolidated financial statements. We evaluate collectability from our customers on an ongoing basis. If the assessment of collectability changes during the lease term, any difference between the revenue that would have been recognized under the straight-line method and the lease payments that have been collected will be recognized as a current period adjustment to rental revenues. When we acquire a property, the term of each existing lease is considered to commence as of the acquisition date for purposes of this calculation. As of December 31, 2021 and 2020, our allowance for doubtful accounts was approximately $0.6 million and $1.1 million, respectively. These amounts are included in our other assets on the consolidated balance sheets. In connection with property acquisitions, we may acquire leases with rental rates above or below estimated market rental rates. Above-market lease assets are amortized as a reduction to rental revenue over the remaining lease term, and below-market lease liabilities are amortized as an increase to rental revenue over the remaining lease term, plus any applicable fixed-rate renewal option periods. We expense any unamortized intangible lease asset or record an adjustment to rental revenue for any unamortized above-market lease asset or below-market lease liability by reassessing the estimated remaining useful life of such intangible lease asset or liability when it becomes probable a customer will terminate a lease before the stated lease expiration date. Upon disposition of a real estate asset, we will evaluate the transaction to determine if control of the asset, as well as other specified criteria, has been transferred to the buyer to determine proper timing of recognizing gains or losses. Income Taxes We elected under the Internal Revenue Code of 1986, as amended, to be taxed as a REIT beginning with the tax year ended December 31, 2006. As a REIT, we generally are not subject to U.S. federal income taxes on net income we distribute to our stockholders. We intend to make timely distributions sufficient to satisfy the annual distribution requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate tax rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and federal income and excise taxes on our undistributed income. Net Income (Loss) Per Share Basic net income (loss) per common share is determined by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share includes the effects of potentially issuable common stock, but only if dilutive, including the presumed exchange of OP Units. See “Note 14” for additional information regarding net income (loss) per share. Fair Value Measurements Fair value measurements are determined based on assumptions that market participants would use in pricing of assets or estimating liabilities. Fair value measurements are categorized into one of three levels of the fair value hierarchy based on the lowest level of significant input used. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Considerable judgment and a high degree of subjectivity are involved in developing these estimates. These estimates may differ from the actual amounts that we could realize upon settlement. The fair value hierarchy is as follows: Level 1—Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2—Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: ● Quoted prices for similar assets/liabilities in active markets; ● Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); ● Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and ● Inputs that are derived principally from or corroborated by other observable market data. Level 3—Unobservable inputs that cannot be corroborated by observable market data. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents. At times, balances with any one financial institution may exceed the Federal Deposit Insurance Corporation insurance limits. We believe this risk is mitigated by investing our cash with high-credit quality financial institutions. As our revenues predominately consist of rental payments, we are dependent on our customers for our source of revenues. Concentration of credit risk arises when our source of revenue is highly concentrated from certain of our customers. As of December 31, 2021, no customers represented more than 10.0% of our total annualized base rent. Recently Adopted Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 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 consolidated financial statements. |
INVESTMENTS IN REAL ESTATE PROP
INVESTMENTS IN REAL ESTATE PROPERTIES | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
INVESTMENTS IN REAL ESTATE PROPERTIES | 3. INVESTMENTS IN REAL ESTATE PROPERTIES The following table summarizes our consolidated investments in real estate properties and excludes properties classified as held for sale. Refer to “Note 4” for detail relating to our real estate properties held for sale: As of December 31, (in thousands) 2021 2020 Land $ 583,728 $ 476,442 Buildings and improvements 2,180,358 1,689,474 Intangible lease assets 284,128 289,762 Right of use asset 13,637 — Investment in real estate properties 3,061,851 2,455,678 Accumulated depreciation and amortization (472,025) (501,105) Net investment in real estate properties $ 2,589,826 $ 1,954,573 Acquisitions During the years ended December 31, 2021 ($ in thousands) Property Type Acquisition Date Total Purchase Price (1) Radar Distribution Center Industrial 3/31/2021 $ 49,168 Intermountain Space Center Industrial 6/30/2021 61,057 Airway Industrial Park Industrial 7/9/2021 24,356 Greenwood Business Center Industrial 8/2/2021 16,888 25 Linden Industrial Center Industrial 8/31/2021 17,146 Little Orchard Business Park Industrial 9/8/2021 96,559 Tustin Business Center Industrial 9/22/2021 33,285 Campus Drive IC Industrial 10/7/2021 6,652 Long Island Logistics Center Industrial 12/9/2021 20,001 Phoenix IC Industrial 12/13/2021 17,604 Tempe IC Industrial 12/13/2021 28,347 Las Vegas IC Industrial 12/13/2021 8,809 Barrow Crossing Retail 6/22/2021 50,205 oLiv Tucson (2) Residential 10/20/2021 124,219 Arabelle Clearwater Residential 11/30/2021 116,352 Arabelle Riverwalk (3) Residential 12/28/2021 234,050 Total 2021 acquisitions $ 904,698 2020 Acquisitions: Village at Lee Branch Retail 1/29/2020 $ 41,665 Railhead DC (4) Industrial 2/4/2020 19,295 Tri-County DC II B Industrial 2/14/2020 2,884 Sterling IC Industrial 3/25/2020 5,118 Clayton Commerce Center Industrial 6/26/2020 59,289 Bay Area Commerce Center Industrial 8/27/2020 48,807 Air Tech DC (5) Industrial 10/16/2020 18,709 East Columbia IC Industrial 12/2/2020 14,914 Plainfield LC Industrial 12/16/2020 19,428 395 LC Industrial 12/21/2020 68,270 The Palms Residential 11/3/2020 79,212 Total 2020 acquisitions $ 377,591 (1) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. (2) We acquired a 97.5% interest in this property. As part of the transaction, we assumed a ground lease with 97 years remaining and four 25 year extension options, which resulted in a $13.6 million right of use asset and a $4.4 million lease liability associated with the ground lease upon completion of the transaction. (3) Includes debt assumed at fair value as of the acquisition date of $125.9 million, with a principal amount of $117.1 million. (4) Includes debt assumed at fair value as of the acquisition date of $9.8 million, with a principal amount of $9.2 million. (5) Includes debt assumed at fair value as of the acquisition date of $3.6 million, with a principal amount of $3.4 million. During the years ended December 31, 2021 As of December 31, ($ in thousands) 2021 2020 Land $ 166,310 $ 64,517 Building 703,597 287,762 Intangible lease assets 39,270 26,144 Above-market lease assets 1,392 2,102 Right of use asset (1) 13,637 — Lease liability (1) (4,440) — Below-market lease liabilities (15,068) (2,934) Total purchase price (2) $ 904,698 $ 377,591 (1) Right of use asset and lease liability are related to the ground lease entered into as part of the oLiv Tucson transaction. (2) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. The weighted-average amortization period for the intangible lease assets and liabilities acquired in connection with our acquisitions during the years ended December 31, 2021 Dispositions During the year ended December 31, 2021, we sold three retail properties, one industrial property, and two office properties for net proceeds of approximately $223.8 million. We recorded a net gain on sale of approximately $77.9 million. During the year ended December 31, 2020, we sold one retail property and one retail outparcel for net proceeds of approximately $27.4 million. We recorded a net gain on sale of approximately $13.3 million. Intangible Lease Assets and Liabilities Intangible lease assets and liabilities, excluding properties classified as held for sale, as of December 31, 2021 and 2020 include the following: As of December 31, 2021 As of December 31, 2020 Accumulated Accumulated (in thousands) Gross Amortization Net Gross Amortization Net Intangible lease assets $ 261,401 $ (186,820) $ 74,581 $ 266,242 $ (214,055) $ 52,187 Above-market lease assets 22,727 (19,507) 3,220 23,520 (21,216) 2,304 Below-market lease liabilities (80,206) 32,707 (47,499) (79,891) 39,434 (40,457) The following table details the estimated net amortization of such intangible lease assets and liabilities, excluding properties classified as held for sale, as of December 31, 2021, for the next five years and thereafter: As of December 31, 2021 (in thousands) 2022 2023 2024 2025 2026 Thereafter Total Intangible lease assets $ 20,877 $ 13,465 $ 10,269 $ 8,575 $ 6,854 $ 14,541 $ 74,581 Above-market lease assets 565 553 525 415 352 810 3,220 Below-market lease liabilities (4,153) (3,982) (3,619) (3,441) (3,199) (29,105) (47,499) 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 Year Ended December 31, (in thousands) 2021 2020 2019 Increase (decrease) to rental revenue: Straight-line rent adjustments (1) $ 5,849 $ 5,539 $ 7,776 Above-market lease amortization (469) (357) (792) Below-market lease amortization 3,559 3,521 4,042 Real estate-related depreciation and amortization: Depreciation expense $ 59,766 $ 47,629 $ 40,824 Intangible lease asset amortization 14,649 15,294 16,518 (1) The straight-line rent adjustment amount for the years ended December 31, 2021 and 2019 included $ 2.5 million and $6.1 million, respectively, related to early lease termination payments that were recognized to rental revenues on a straight-line basis over the remaining term of the respective lease. There was no straight-line rent adjustments related to early lease termination fees for the year ended December 31, 2020. Future Minimum Rentals Future minimum base rental payments, which equal the cash basis of monthly contractual rent, owed to us from our commercial customers under the terms of non-cancelable operating leases in effect as of December 31, 2021, excluding rental revenues from the potential renewal or replacement of existing leases and excluding rental revenues from properties classified as held for sale, were as follows for the next five years and thereafter: As of December 31, (in thousands) 2021 Year 1 $ 128,671 Year 2 119,272 Year 3 103,502 Year 4 90,453 Year 5 74,651 Thereafter 233,682 Total $ 750,231 Leases for our residential customers are generally 12 months or less and are therefore excluded from the table above. Real Estate Property Impairment During the year ended December 31, 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. There were no impairment charges recorded during the year ended December 31, 2020. During the year ended December 31, 2019, we recorded an incremental impairment of $0.1 million due to additional costs incurred which related to the retail property located in the Holbrook, Massachusetts market that had been previously impaired during 2018. We have determined that our impairments are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. See “Note 2” for further discussion of the fair value hierarchy. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2021 | |
ASSETS HELD FOR SALE | |
ASSETS HELD FOR SALE | 4. ASSETS HELD FOR SALE We classify a property as held for sale when certain criteria are met, in accordance with GAAP. Assets classified as held for sale are expected to be sold to a third party. At such time the property meets the held for sale criteria, the respective assets and liabilities are presented separately in the consolidated balance sheets and depreciation is no longer recognized. Assets held for sale are reported at the lower of their carrying amount or their estimated fair value less the costs to sell the assets. As of December 31, 2021, we had one retail property (Bandera Road) and one office property (1 st As of (in thousands) December 31, 2021 December 31, 2020 Net investment in real estate properties $ 101,690 $ — Other Assets 3,406 — Assets held for sale $ 105,096 $ — Accounts payable and accrued expenses $ 3,172 $ — Intangible lease liabilities, net 995 Other liabilities 1,577 — Liabilities related to assets held for sale $ 5,744 $ — |
INVESTMENTS IN UNCONSOLIDATED J
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURE PARTNERSHIPS | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investment And Joint Venture [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURE PARTNERSHIPS | 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURE PARTNERSHIPS On November 30, 2021, we acquired interests in two joint venture partnerships, Pathfinder Core AREIT JV NNN Holdings, LLC (“Net Lease JV I”) and Pathfinder Core AREIT Net Lease Aggregator LLC (“Net Lease JV II”), for purposes of investing in properties across the U.S. with triple net lease agreements. On December 21, 2021, we also acquired interests in another joint venture partnership, AREIT-McDowell Vue Parent LLC (“Vue 1400 JV”), with third party investors for purposes of acquiring a 316 unit residential property in West Palm Beach, Florida. We record our investments in these joint venture partnerships under the equity method on our consolidated balance sheets as we have the ability to exercise significant influence in each partnership but do not have control of the entities. The following table summarizes our investments in unconsolidated joint venture partnerships as of December 31, 2021: Investment in Ownership Unconsolidated Joint ($ in thousands) Segment Percentage Venture Partnership Vue 1400 JV Residential 85% $ 26,117 Net Lease JV I Net Lease 50% 16,267 Net Lease JV II Net Lease 50% 15,041 Total investment in unconsolidated joint venture partnerships $ 57,425 During the year-ended December 31, 2021, we recorded approximately $0.1 million in equity income from our equity holdings in these investments. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | 6. DEBT Our consolidated indebtedness is currently comprised of borrowings under our line of credit, term loans and mortgage notes. Borrowings under our non-recourse mortgage notes are secured by mortgages or deeds of trust and related assignments and security interests in collateralized and certain cross-collateralized properties, which are generally owned by single purpose entities. Two of our mortgage notes are currently partial recourse to us, for which we provide the following limited guaranties: $16.3 million and $0.3 million that are each guaranteed until we meet certain lender-specified thresholds at the respective collateralized property. Other than these limited guarantees, the assets and credit of each of our consolidated properties pledged as collateral for our mortgage notes are not available to satisfy our debt and obligations, unless we first satisfy the mortgages note payable on the respective underlying properties. A summary of our debt is as follows: Weighted-Average Effective Interest Rate as of Balance as of December 31, December 31, December 31, December 31, ($ in thousands) 2021 2020 Current Maturity Date 2021 2020 Line of credit (1) 1.35 % 1.54 % November 2025 $ 256,000 $ 106,000 Term loan (2) 3.16 3.27 November 2026 325,000 325,000 Term loan (3) 3.19 3.29 January 2027 200,000 200,000 Fixed-rate mortgage notes 3.49 3.55 October 2022 - May 2031 381,954 210,544 Floating-rate mortgage note (4) 2.26 2.50 October 2024 - October 2026 207,600 127,000 Total principal amount / weighted-average (5) 2.78 % 3.04 % $ 1,370,554 $ 968,544 Less: unamortized debt issuance costs $ (16,762) $ (4,083) Add: mark-to-market adjustment on assumed debt 9,442 844 Total debt, net $ 1,363,234 $ 965,305 Gross book value of properties encumbered by debt $ 981,927 $ 584,637 (1) The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.25% to 2.00% , depending on our consolidated leverage ratio. As of December 31, 2021, the unused and available portions under the line of credit were approximately $444.0 million and $327.8 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 1.20% to 1.90% , depending on our consolidated leverage ratio. Total commitments for this term loan are $400.0 million. As of December 31, 2021, the unused and available portion of this term loan was $75.0 million. Any additional amount drawn on this term loan would reduce the amount available under the line of credit in the same amount. 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 1.20% to 1.90% , depending on our consolidated leverage ratio. Total commitments for this term loan are $400.0 million. As of December 31, 2021, the unused and available portion of this term loan was $200.0 million. Any additional amount drawn on this term loan would reduce the amount available under the line of credit in the same amount. The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements. (4) The effective interest rate is calculated based on LIBOR plus a margin. As of December 31, 2021, our floating-rate mortgage notes were subject to interest rate spreads ranging from 1.55% to 2.50% . As of December 31, 2020, our floating-rate mortgage note was subject to an interest rate spread of 2.25% . (5) The weighted-average remaining term of our consolidated borrowings was approximately 4.9 years as of December 31, 2021, excluding the impact of certain extension options. As of December 31, 2021, the principal payments due on our consolidated debt during each of the next five years and thereafter were as follows: (in thousands) Line of Credit (1) Term Loans Mortgage Notes Total 2022 $ — $ — $ 1,612 $ 1,612 2023 — — 1,463 1,463 2024 — — 129,265 129,265 2025 256,000 — 72,360 328,360 2026 — 325,000 84,214 409,214 Thereafter — 200,000 300,640 500,640 Total principal payments $ 256,000 $ 525,000 $ 589,554 $ 1,370,554 (1) 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. As of December 31, 2021, our line of credit, term loans and mortgage notes are our only consolidated indebtedness with initial or extended maturity dates beyond 2023 that have exposure to LIBOR. The agreements governing these 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 December 31, 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 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 $5.4 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 $0.1 million will be reclassified as an increase to interest expense related to terminated hedges where the likelihood of the originally hedged interest payments remains probable. The following table summarizes the location and fair value of our derivative instruments on our consolidated balance sheets: Number of Fair Value ($ in thousands) Contracts Notional Amount Other Assets Other Liabilities As of December 31, 2021 Interest rate swaps 13 $ 500,000 $ 164 $ 11,236 Interest rate caps 2 207,600 159 — Total derivative instruments 15 $ 707,600 $ 323 $ 11,236 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 consolidated financial statements: For the Year Ended December 31, (in thousands) 2021 2020 2019 Derivative instruments designated as cash flow hedges: Gain (loss) recognized in AOCI $ 5,616 $ (21,589) $ (13,341) Amount reclassified from AOCI into interest expense 10,281 7,747 (1,600) Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring — — (1,374) Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded 70,494 58,747 48,170 Derivative instruments not designated as cash flow hedges: Gain (loss) recognized in income $ 71 $ (13) $ (25) |
DST PROGRAM
DST PROGRAM | 12 Months Ended |
Dec. 31, 2021 | |
Delaware Statutory Trust Program [Abstract] | |
DST PROGRAM | 7. DST PROGRAM We have a program to raise capital through private placement offerings by selling beneficial interests in specific Delaware statutory trusts holding real properties (the “DST Program”). Under the DST Program, each private placement offers interests in one or more real properties placed into one or more Delaware statutory trust(s) by the Operating Partnership or its affiliates (“DST Properties”). DST Properties may be sourced from properties currently indirectly owned by the Operating Partnership or newly acquired properties. The underlying interests of real properties sold to investors pursuant to such private placements are leased-back by an indirect wholly owned subsidiary of the Operating Partnership on a long-term basis. These master lease agreements are fully guaranteed by the Operating Partnership. Additionally, the Operating Partnership retains a fair market value purchase option giving it the right, but not the obligation, to acquire the interests in the Delaware statutory trusts from the investors at a later time in exchange for OP Units. Under the master lease, we are responsible for subleasing the property to occupying customers and all underlying costs associated with operating the property, and are responsible for paying rent to the Delaware statutory trust that owns such property. As such, for financial reporting purposes (and not for income tax purposes), the DST Properties are included in our consolidated financial statements, with the master lease rent payment obligations taking the place of the cost of equity and debt capital. Accordingly, for financial reporting purposes, the rental revenues and rental expenses associated with the underlying property of each master lease are included in the respective line item on the consolidated statements of operations. Consistent with the foregoing, rental payments made to the Delaware statutory trusts pursuant to the master lease agreements are accounted for using the interest method whereby a portion is accounted for as interest expense and a portion is accounted for as an accretion or amortization of the outstanding principal balance of the financing obligations. The net amount we receive from the underlying properties subject to the master lease may be more or less than the amount we pay to the investors of the DST Program and could fluctuate over time. Consistent with the financial reporting position described herein, the proceeds from each private placement under the DST Program are accounted for as a financing obligation on the consolidated balance sheets due to the fact that we have an option (which may or may not be exercised) to purchase the interests in the Delaware statutory trusts and thereby acquire the real property owned by the Delaware statutory trusts. Consistent with the financial reporting position described herein, upfront costs incurred for services provided by the Advisor and its affiliates related to the DST Program are accounted for as deferred loan costs and are netted against the financing obligation. 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 beneficial interests (the “DST Interests”) in the trusts holding DST Properties to potential investors. As of December 31, 2021 and 2020, there were approximately $62.1 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 $292.7 million and $278.2 million, respectively, of gross interests sold during the years ended December 31, 2021 and 2020, $26.0 million and $26.5 million, respectively, were financed by DST Program Loans. DST Program Loans are evidenced by promissory notes from the investor and are secured by the investor’s DST Interests based on commercially reasonable terms. DST Program Loans bear interest at market rates that may be fixed or based on LIBOR and are non-recourse to the investor (except for certain non-recourse carve-outs). Accordingly, we include our investments in DST Program Loans separately on our consolidated balance sheets in the “DST Program loans” line item and we include income earned from DST Program Loans in “other income” on our statements of operations. We do not have a significant credit concentration with any individual purchaser as a result of DST Program Loans. During the years ended December 31, 2021, 2020 and 2019, we sold approximately $292.7 million, $278.2 million and $212.7 million, respectively, of gross interests related to the DST Program, $26.0 million, $26.5 million, and $18.7 million of which were financed by the DST Program Loans, respectively. During the years ended December 31, 2021, 2020 and 2019, we incurred rent obligations of approximately $28.4 million, $19.4 million and $7.0 million, respectively, under our master lease agreements with investors in the DST Program. Additionally, during the years ended December 31, 2021 and 2020, 15.0 million OP Units and 3.8 million OP Units, respectively, were issued in exchange for DST Interests for a net investment of $115.7 million and $28.3 million, respectively, in accordance with our UPREIT structure. Refer to “Note 13” for detail relating to the fees paid to the Advisor and its affiliates for raising capital through the DST Program. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
FAIR VALUE | 8. 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 December 31, 2021 Assets: Derivative instruments $ — $ 323 $ — $ 323 Total assets measured at fair value $ — $ 323 $ — $ 323 Liabilities: Derivative instruments $ — $ 11,236 $ — $ 11,236 Total liabilities measured at fair value $ — $ 11,236 $ — $ 11,236 As of December 31, 2020 Assets: Derivative instruments $ — $ — $ — $ — Total assets measured at fair value $ — $ — $ — $ — 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 December 31, 2021 and 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 December 31, 2021 As of December 31, 2020 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt-related investments $ 106,463 $ 106,463 $ 49,885 $ 49,584 DST Program Loans 62,123 62,123 45,229 45,229 Liabilities: Line of credit $ 256,000 $ 256,000 $ 106,000 $ 105,592 Term loans 525,000 525,000 525,000 521,945 Mortgage notes 589,554 600,467 337,544 336,336 (1) The carrying value reflects the principal amount outstanding. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES We have concluded that there was no impact related to uncertain tax positions from our results of operations for the years ended December 31, 2021, 2020 and 2019. We had a net deferred tax asset of approximately $1.2 million and $1.6 million as of December 31, 2021 and 2020, respectively, which is offset by a full valuation allowance. The U.S. is the major tax jurisdiction for us and the earliest tax year subject to examination by the taxing authority is 2018. Distributions Distributions to stockholders are characterized for U.S. federal income tax purposes as: (i) ordinary income; (ii) non-taxable return of capital; or (iii) long-term capital gain. Distributions that exceed our current and accumulated tax earnings and profits constitute a return of capital and reduce the stockholders’ basis in the common shares. To the extent that a distribution exceeds both current and accumulated earnings and profits and the stockholders’ basis in the common shares, the distributions will generally be treated as a gain from the sale or exchange of such stockholders’ common shares. Under the new tax laws effective January 1, 2018, all distributions (other than distributions designated as capital gain distributions and distributions traceable to distributions from a taxable REIT subsidiary) which are received by a pass-through entity or an individual, are eligible for a 20% deduction from gross income. This eligibility for a 20% deduction will expire as of 2025. At the beginning of each year, we notify our stockholders of the taxability of the distributions paid during the preceding year. In any given year, the overall taxability of distributions could be higher or lower than the preceding year. The following unaudited table summarizes the annual information reported to investors regarding the taxability of distributions on common stock, as a percentage of total distributions, for the years ended December 31, 2021, 2020 and 2019. This information assumes that an investor owned shares of our common stock for the full 2021 calendar year. For the Year Ended December 31, 2021 2020 2019 Ordinary income 13.62 % 3.28 % 22.78 % Non-taxable return of capital 61.37 12.34 61.01 Capital gain 25.01 84.38 16.21 Total distributions 100.00 % 100.00 % 100.00 % Our ordinary income taxability increased in 2021 as compared to 2020 primarily due to increased acquisitions of revenue generating properties. Our capital gain taxability decreased in 2021 as compared to 2020 primarily due to our utilization of 1031 tax deferred exchanges to dispose of certain properties in accordance with our business plan. The remaining distributions in 2021 were treated as non-taxable return of capital. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 10 Public Offering As a net asset value (“NAV”)-based perpetual life REIT, we intend to conduct ongoing public primary offerings of our common stock on a perpetual basis. We also intend to conduct an ongoing distribution reinvestment plan offering for our stockholders to reinvest distributions in our shares. From time to time, we intend to file new registration statements on Form S-11 with the SEC to register additional shares of common stock so that we may continuously offer shares of common stock pursuant to Rule 415 under the Securities Act of 1933, as amended. Currently, we have the following registration statements effective with the SEC: ● A public offering of up to $3.0 billion in Class T, Class S, Class D and Class I shares of common stock, consisting of up to $2.5 billion offered in our primary offering and up to $500.0 million offered under our distribution reinvestment plan. We may reallocate amounts between the primary offering and distribution reinvestment plan. As of December 31, 2021, $2.38 billion remained unsold under this registration statement. ● A public offering of Class E shares under our distribution reinvestment plan. As of December 31, 2021, $84.2 million remained unsold under this registration statement. The Class T, Class S, Class D, Class I and Class E shares, all of which are collectively referred to herein as shares of common stock, generally have identical rights and privileges, including identical voting rights, but have differing fees that are payable on a class-specific basis. While gross distributions are the same for all share classes, the payment of class-specific fees results in different amounts of net distributions being paid with respect to each class of shares. A summary of our public offerings (including shares sold through the primary offering and distribution reinvestment plan (“DRIP”)) for the year ended December 31, 2021, is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 56,107 $ 97,389 $ 21,299 $ 76,732 $ — $ 251,527 DRIP 2,050 4,736 927 8,521 6,963 23,197 Total offering $ 58,157 $ 102,125 $ 22,226 $ 85,253 $ 6,963 $ 274,724 Number of shares sold: Primary offering 6,593 12,539 2,778 10,441 — 32,351 DRIP 267 618 121 1,112 910 3,028 Total offering 6,860 13,157 2,899 11,553 910 35,379 Common Stock The following table describes the changes in each class of common shares during each of the years ended December 31, 2021, 2020 and 2019: Class T Class S Class D Class I Class E Total (in thousands) Shares Shares Shares Shares Shares Shares Balance as of December 31, 2018 2,783 10,516 2,778 37,385 77,390 130,852 Issuance of common stock: Primary shares 3,298 10,926 1,050 7,881 — 23,155 Distribution reinvestment plan 88 366 80 1,069 1,197 2,800 Share-based compensation — — — 86 — 86 Redemptions of common stock (317) (1,215) (409) (2,689) (11,783) (16,413) Balance as of December 31, 2019 5,852 20,593 3,499 43,732 66,804 140,480 Issuance of common stock: Primary shares 4,006 4,507 728 4,531 — 13,772 Distribution reinvestment plan 187 476 91 1,065 1,021 2,840 Share-based compensation — — — 20 — 20 Redemptions of common stock (214) (2,060) (220) (4,625) (6,952) (14,071) Balance as of December 31, 2020 9,831 23,516 4,098 44,723 60,873 143,041 Issuance of common stock: Primary shares 6,593 12,539 2,778 10,441 — 32,351 Distribution reinvestment plan 267 618 121 1,112 910 3,028 Share-based compensation — — — 29 — 29 Redemptions of common stock (266) (916) (248) (1,899) (5,455) (8,784) Balance as of December 31, 2021 16,425 35,757 6,749 54,406 56,328 169,665 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 (2) Distributions (3) 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 December 31 0.09375 8,265 3,331 6,361 17,957 Total $ 0.37500 $ 31,507 $ 10,220 $ 23,595 $ 65,322 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 gross quarterly distribution rate, prior to adjustment for class-specific fees. (2) Amount reflects distributions paid in cash to common stockholders, net of class-specific fees. (3) Includes other cash distributions consisting of: (i) distributions paid to holders of OP Units in the Operating Partnership; 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 13” 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 years ended December 31, 2021, 2020 and 2019. Our board of directors may modify, suspend or terminate our current share redemption programs if it deems such action to be in the best interest of our stockholders. For the Year Ended December 31, (in thousands, except for per share data) 2021 2020 2019 Number of shares requested for redemption or repurchase 8,784 14,071 16,413 Number of shares redeemed or repurchased 8,784 14,071 16,413 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.65 $ 7.50 $ 7.35 |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2021 | |
Redeemable Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | 11. REDEEMABLE NONCONTROLLING INTERESTS The Operating Partnership’s net income and loss will generally be allocated to the general partner and the limited partners in accordance with the respective percentage interest in the OP Units issued by the Operating Partnership. 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 agreement of limited partnership of the Operating Partnership (the “Partnership Agreement”). 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 consolidated balance sheets due to the fact that, as provided in 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 years ended December 31, 2021 and 2020: For the Year Ended December 31, ($ in thousands) 2021 2020 Balance at beginning of year $ 3,798 $ - Settlement of prior year performance participation allocation (1) 4,608 3,776 Distributions to redeemable noncontrolling interests (418) (189) Net income (loss) attributable to redeemable noncontrolling interests 221 (54) Change from cash flow hedging activities attributable to redeemable noncontrolling interests 103 (45) Redemption value allocation adjustment to redeemable noncontrolling interests 682 310 Balance at end of year $ 8,994 $ 3,798 (1) 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. 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. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | 12. NONCONTROLLING INTERESTS OP Units As of December 31, 2021 and 2020, the Operating Partnership had issued OP Units to third-party investors, representing 14.3% and 8.6%, respectively, of limited partnership interests. OP Units held by third-party investors are made up of Class E, Class T, Class S, and Class I OP Units. The following table summarizes the number of OP Units issued and outstanding to third-party investors: As of December 31, (in thousands) 2021 2020 Number of OP Units issued and outstanding to third-party investors 28,295 13,486 Estimated maximum redemption value (unaudited) $ 228,254 $ 101,703 Subject to certain restrictions and limitations, the holders of OP Units may redeem all or a portion of their OP Units for either: shares of the equivalent class of common stock, cash or a combination of both. If we elect to redeem OP Units for shares of our common stock, we will generally deliver one share of our common stock for each such OP Unit redeemed (subject to any redemption fees withheld), and such shares may, subsequently, only be redeemed for cash in accordance with the terms of our share redemption program. If we elect to redeem OP Units for cash, the cash delivered will equal the then-current NAV per unit of the applicable class of OP Units (subject to any redemption fees withheld), which will equal the then-current NAV per share of our corresponding class of shares. The following table summarizes the number of OP Units redeemed during the years presented below: For the Year Ended December 31, (in thousands) 2021 2020 2019 Number of OP Units redeemed 776 1,070 196 Aggregate amount of OP Units redeemed $ 5,962 $ 8,032 $ 1,438 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS We rely on the Advisor, a related party, to manage our day-to-day activities and to implement our investment strategy pursuant to the terms of the amended and restated advisory agreement, effective as of December 1, 2021, by and among us, the Operating Partnership and the Advisor (the “Advisory Agreement”). The current term of the Advisory Agreement ends April 30, 2022, subject to renewals by our board of directors for an unlimited number of successive one-year periods. The Dealer Manager, which is also a related party, provides dealer manager services in connection with our public offerings pursuant to the terms of the fourth amended and restated dealer manager agreement, effective December 1, 2021 (the “Dealer Manager Agreement”) by and among us, the Advisor and the Dealer Manager. On July 1, 2021, Ares closed on the acquisition of Black Creek Group’s U.S. real estate investment advisory and distribution business, including our Former Advisor (the “Transaction”). On the same date, our Former Advisor assigned the advisory agreement to our New Advisor. Ares did not acquire the Former Sponsor, and we now consider the Ares real estate group to be our sponsor. Prior to the Transaction, the Former Sponsor, which owned the Former Advisor, was directly or indirectly majority owned by the estate of John A. Blumberg, James R. Mulvihill and Evan H. Zucker and/or their affiliates. The Dealer Manager was also directly or indirectly majority owned, controlled and/or managed by the estate of Mr. Blumberg, Mr. Mulvihill and/or Mr. Zucker and/or their affiliates. Presently, following the Transaction, the Advisor and the Dealer Manager are directly or indirectly majority owned, controlled and/or managed by Ares. The Advisor and the Dealer Manager receive compensation from us in the form of fees and expense reimbursements for certain services relating to our public offerings and for the investment and management of our assets and our other activities and operations. Advisory Agreement, Dealer Manager Agreement and Operating Partnership Agreement The following is a description of the fees and expense reimbursements payable to the Advisor and the Dealer Manager. This summary does not purport to be a complete summary of the Advisory Agreement; the Dealer Manager Agreement; and the limited partnership agreement of the Operating Partnership (the “Operating Partnership Agreement”), and is qualified in its entirety by reference to such agreements, which are incorporated by reference as exhibits to this Annual Report on Form 10-K. Selling Commissions, Dealer Manager Fees and Distribution Fees. primary offering. The upfront selling commissions and dealer manager fees are calculated as a percentage of the transaction price (generally equal to the most recent monthly NAV per share) at the time of purchase of such shares. All or a portion of the upfront selling commissions and dealer manager fees will be retained by, or reallowed to, participating broker dealers. In addition, the Dealer Manager is entitled to receive ongoing distribution fees based on the NAV of all outstanding Class T, Class S and Class D shares, including shares issued under our distribution reinvestment plan. The distribution fees will be payable monthly in arrears and will be paid on a continuous basis from year to year. The Dealer Manager will reallow all or a portion of the distribution fees to participating broker dealers and broker dealers servicing accounts of investors who own Class T, Class S, and/or Class D shares. The following table details the selling commissions, dealer manager fees and distribution fees applicable for each share class. Class T Class S Class D Class I Selling commissions (as % of transaction price) up to 3.00 % up to 3.50 % — % — % Dealer manager fees (as % of transaction price) 0.50 % — % — % — % Distribution fees (as % of NAV per annum) 0.85 % 0.85 % 0.25 % — % We will cease paying the distribution fees with respect to individual Class T, Class S and Class D shares when they are no longer outstanding, including as a result of a conversion to Class I shares. Each Class T, Class S or Class D share held within a stockholder’s account shall automatically and without any action on the part of the holder thereof convert into a number of Class I shares at the applicable conversion rate on the earliest of: (i) a listing of any shares of our common stock on a national securities exchange; (ii) our merger or consolidation with or into another entity, or the sale or other disposition of all or substantially all of our assets; and (iii) the end of the month in which the Dealer Manager, in conjunction with our transfer agent, determines that the total upfront selling commissions, upfront dealer manager fees and ongoing distribution fees paid with respect to all shares of such class held by such stockholder within such account (including shares purchased through the distribution reinvestment plan or received as stock dividends) equals or exceeds 8.75% (or a lower limit set forth in any applicable agreement between the Dealer Manager and a participating broker dealer, provided that the Dealer Manager advises our transfer agent of the lower limit in writing) of the aggregate purchase price of all shares of such class held by such stockholder within such account and purchased in a primary offering. Additional Underwriting Compensation and Primary Dealer Fee. Organization and Offering Expense Reimbursement. Advisory Fee and Operating Expense Reimbursement. Fixed Component % of applicable monthly NAV per Fund Interest (as defined below) x the weighted-average number of Fund Interests for such month (per annum) 1.10 % % of consideration received by us or our affiliates for selling interests in DST Properties (as defined in “Note 5”) to third-party investors, net of up-front fees and expense reimbursements payable out of gross sale proceeds from the sale of such interests 1.10 % The performance participation allocation is a performance-based amount that will be paid to the Advisor. This amount is calculated on the basis of the overall investment return provided to holders of Fund Interests (i.e., our outstanding shares and OP Units held by third-party investors) in any calendar year such that the Advisor will receive the lesser of (1) 12.5% of (a) the annual total return amount less (b) any loss carryforward, and (2) the amount equal to (x) the annual total return amount, less (y) any loss carryforward, less (z) the amount needed to achieve an annual total return amount equal to 5% of the NAV per Fund Interest at the beginning of such year (the “Hurdle Amount”). The foregoing calculations are calculated on a per Fund Interest basis and multiplied by the weighted-average Fund Interests outstanding during the year. In no event will the performance participation allocation be less than zero. Accordingly, if the annual total return amount exceeds the Hurdle Amount plus the amount of any loss carryforward, then the Advisor will earn a performance participation allocation equal to 100% of such excess, but limited to 12.5% of the annual total return amount that is in excess of the loss carryforward. The “annual total return amount” referred to above means all distributions paid or accrued per Fund Interest plus any change in NAV per Fund Interest since the end of the prior calendar year, adjusted to exclude the negative impact on annual total return resulting from our payment or obligation to pay, or distribute, as applicable, the performance participation allocation as well as ongoing distribution fees (i.e., our ongoing class-specific fees). The “loss carryforward” referred to above will track any negative annual total return amounts from prior years and offset the positive annual total return amount for purposes of the calculation of the performance participation allocation. The loss carryforward is zero as of December 31, 2021. Additionally, the Advisor will provide us with a waiver of a portion of its fees generally equal to the amount of the performance participation allocation that would have been payable with respect to the Class E shares and the Series 1 Class E OP Units held by third parties until the NAV of such shares or units exceeds $10.00 a share or unit, the benefit of which will be shared among all holders of Fund Interests. As of December 31, 2021, all of the Class E OP Units issued and outstanding to third-party investors are Series 1 Class E OP Units. Refer to “Note 12” for detail regarding the Class E OP Units. On January 1, 2019, we, our Operating Partnership, and the Advisor amended the advisory agreement and limited partnership agreement of the Operating Partnership. The Operating Partnership also issued to Black Creek Diversified Property Advisors Group LLC (“BCDPAG”), for $1,000 in consideration, 100 partnership units in the Operating Partnership constituting a separate series of partnership interests with special distribution rights, or the “Special Units.” On July 1, 2021, these Special Units were transferred from BCDPAG to our New Advisor. These agreements were amended, and the Special Units were issued, so that, at the election of the holder, the performance participation allocation previously payable to the Advisor may be paid instead to the holder of the Special Units as a performance participation allocation with respect to the Special Units. If the holder does not elect on or before the first day of a calendar year to have the performance participation allocation paid as a fee to the Advisor, then it will be paid as a distribution on the performance participation interest to the holder of the Special Units. In such case, the performance participation allocation will be payable in cash or Class I OP Units, at the election of the holder. If the holder elects to receive such distributions in Class I OP Units, the number of Class I OP Units to be issued to the holder will be determined by dividing an amount equal to the value of the performance participation allocation by the net asset value per Class I OP Unit as of the date of the distribution. The holder of the Special Units may request the Operating Partnership to repurchase such OP Units from the holder at a later date. Any such repurchase requests will not be subject to any holding period, early redemption deduction, volume limitations or other restrictions that apply to other holders of OP Units under the limited partnership agreement of the Operating Partnership Agreement or to our stockholders under our share redemption program. In the event the performance participation allocation is paid in cash to the holder of the Special Units as an allocation and distribution in its capacity as holder of the Special Units, such amount will not be deductible by the Operating Partnership although it will reduce the cash available for distribution to holders of common OP Units and we believe that taxable income allocated to the holder of the Special Units should reduce the amount of taxable income allocable to the holders of common OP Units for the taxable period of the allocation. In addition, in the event the Operating Partnership commences a liquidation of its assets during any calendar year, the holder of the Special Units will be distributed the performance participation allocation as its liquidation distribution, or the Advisor will receive payment of the performance participation allocation, as applicable, prior to the distribution of the remaining liquidation proceeds to the holders of OP Units. The Special Units do not receive Operating Partnership distributions or allocations except as described above. Holders of Special Units do not share in distributions paid to holders of common OP Units and are not allocated income or losses of the Operating Partnership except to the extent of taxable income allocated to them in their capacity as holders of the Special Units. Subject to certain limitations, we reimburse the Advisor or its affiliates for all of the costs they incur in connection with the services they provide to us under the Advisory Agreement, including, without limitation, our allocable share of the Advisor’s overhead, which includes but is not limited to the Advisor’s rent paid to both third parties and affiliates of the Advisor, utilities and personnel costs; provided, that we will not reimburse the Advisor or its affiliates for services for which the Advisor or its affiliates are entitled to compensation in the form of a separate fee, and commencing as of September 1, 2017, we will not reimburse the Advisor for compensation it pays to our named executive officers, unless the named executive officer is providing stockholder services 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 consolidated statements of operations. Fees from Other Services. DST Program DST Program Dealer Manager Fees. ADREX will pay certain up-front fees and reimburse certain related expenses to the Dealer Manager with respect to capital raised through the DST Program. ADREX is obligated to pay the Dealer Manager a dealer manager fee of up to 1.5% of gross equity proceeds raised and a commission of up to 5.0% of gross equity proceeds raised through the private placements. In addition, with respect to certain classes of interests (or the corresponding classes of OP Units or shares for which they may be exchanged in certain circumstances) we, the Operating Partnership or ADREX will pay the Dealer Manager ongoing fees in amounts up to 0.85% of the equity investment or net asset value thereof per year. The Dealer Manager may re-allow such commissions, ongoing fees and a portion of such dealer manager fees to participating broker dealers. In addition, pursuant to the dealer manager agreement for the DST Program, we, or our subsidiaries, are obligated to reimburse the Dealer Manager for (a) customary travel, lodging, meals and reasonable entertainment expenses incurred in connection with the private placements; (b) costs and expenses of conducting educational conferences and seminars, attending broker-dealer sponsored conferences, or educational conferences sponsored by ADREX; (c) customary promotional items; and (d) legal fees of the Dealer Manager. Pursuant to the Advisory Agreement, DST Properties are included when calculating the fixed and performance participation allocation due to the Advisor. Furthermore, because the Advisor funds certain Dealer Manager personnel costs that are not reimbursed under the DST Program dealer manager agreement, we have also agreed to pay the Advisor a fee equal to the fee paid by DST Program investors for these costs, which is up to 1.5% of the total equity amount paid for the interests. DST Manager Fees. fee of up to 1.0% for any financing provided by us in connection with the DST Program (in which case a subsidiary of ours would provide the debt financing and earn interest thereon, as discussed further below), (iii) reimbursement of certain expenses associated with the establishment, maintenance and operation of the trust and DST Properties and the sale of any DST Property to a third party, and (iv) up to 1.0% of the gross equity proceeds as compensation for developing and maintaining the DST Program technology and intellectual property. Furthermore, to the extent that the Operating Partnership exercises its fair market value purchase option to acquire the interests from the investors at a later time in exchange for OP Units, and such investors subsequently submit such OP Units for redemption pursuant to the terms of the Operating Partnership, a redemption fee of up to 1.0% of the amount otherwise payable to a limited partner upon redemption will be paid to DST Manager (or such other amount as may be set forth in the applicable DST Program offering documents). In connection with the DST Program, ADREX maintains a loan program and may, upon request, provide DST Program Loans to certain purchasers of the interests in the Delaware statutory trusts (the “DST Interests”) to finance a portion of the purchase price payable upon their acquisition of such DST Interests (the “Purchase Price”). The DST Program Loans are made by a subsidiary of ours (the “DST Lender”). The DST Program Loans may differ in original principal amounts. The original principal amount of the DST Program Loans expressed as a percentage of the total Purchase Price for the applicable DST Interests may also vary, but no DST Program Loan to any purchaser will exceed 50% of the Purchase Price paid by such purchaser for its DST Interest in the Trust, excluding the amount of the Origination Fee, as hereinafter defined. Each purchaser that elects to obtain a DST Program Loan, will pay an origination fee to the DST Manager equal to up to 1.0% of the original principal amount of its DST Program Loan (the “Origination Fee”) upon origination of such DST Program Loan, which Origination Fee will be assigned by the DST Manager to an affiliate of the Advisor. The purchaser will be required to represent, among other things, that no portion of the Purchase Price for its DST Interest and no fee paid in connection with the acquisition of its DST Interest (including, without limitation, the Origination Fee) has been or will be funded with any nonrecourse indebtedness other than the DST Program Loan. 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 described above, and any related amounts payable: For the Year Ended December 31, Payable as of December 31, (in thousands) 2021 2020 2019 2021 2020 Selling commissions and dealer manager fees (1) $ 2,977 $ 1,498 $ 2,094 $ — $ — Ongoing distribution fees (1)(2) 2,974 2,024 1,387 394 188 Advisory fees - fixed component 21,433 17,211 13,637 2,094 1,547 Performance participation allocation 15,327 4,608 3,776 15,327 4,608 Other expense reimbursements— Advisor (3)(4) 11,070 10,002 10,601 1,443 2,112 Other expense reimbursements—Dealer Manager 376 516 1,408 — — DST Program selling commissions, dealer manager and distribution fees (1) 9,871 4,097 3,119 219 — Other DST Program related costs—Advisor (3) 6,229 4,085 2,988 87 — Total $ 70,257 $ 44,041 $ 39,010 $ 19,564 $ 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 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 $34.1 million and $15.5 million as of December 31, 2021 and 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 years ended December 31, 2021, 2020 and 2019, were approximately $9.8 million, $8.0 million and $8.5 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. 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. 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 Second 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. On December 1, 2021, we replaced our then-current advisory agreement by entering into a Third Amended and Restated Advisory Agreement (2021) with the Advisor. Other than updating our name and that of our Operating Partnership, this agreement is substantially the same as the prior version. 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 “Tenth AR Limited Partnership Agreement”). The Tenth AR Limited Partnership Agreement amended and restated 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 Tenth AR Limited Partnership Agreement were otherwise substantially the same as the terms of the Prior Limited Partnership Agreement. On December 1, 2021, the Company replaced the then-current limited partnership agreement of the Operating Partnership by entering into an Eleventh Amended and Restated Limited Partnership Agreement. The amended agreement clarifies that restrictions with respect to the Advisor’s ability to request that the Operating Partnership repurchase OP Units allocated to the Advisor as a performance allocation from any prior calendar year do not apply any OP Units awarded in the then-current year for the prior year’s performance, if any. Other than that clarification and updating our name, that of our Operating Partnership and that of our Advisor, this agreement is substantially the same as the prior version. Transactions with Affiliates We initially contributed $2,000 into the Operating Partnership in exchange for 200 OP Units, representing the sole general partner interest in the Operating Partnership. Subsequently, we contributed 100% of the gross proceeds received from our public offerings of common stock to the Operating Partnership in exchange for OP Units representing our interest as a limited partner of the Operating Partnership. As of December 31, 2021 and 2020, we held a 85.7% and 91.4%, respectively, limited partnership interest in the Operating Partnership. The remaining limited partnership interests in the Operating Partnership are held by third-party investors, which are classified as noncontrolling interests on the consolidated balance sheets. See “Note 12” for detail regarding our noncontrolling interests. |
NET INCOME (LOSS) PER COMMON SH
NET INCOME (LOSS) PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER COMMON SHARE | 14. 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 Year Ended December 31, (in thousands, except per share data) 2021 2020 2019 Net income (loss) attributable to common stockholders—basic $ 30,754 $ (14,914) $ 142,551 Net income (loss) attributable to redeemable OP Units 221 (54) — Net income (loss) attributable to OP Units 3,565 (1,091) 10,726 Net income (loss) attributable to common stockholders—diluted $ 34,540 $ (16,059) $ 153,277 Weighted-average shares outstanding—basic 154,767 142,268 136,925 Incremental weighted-average shares effect of conversion of OP Units 19,563 11,784 10,391 Weighted-average shares outstanding—diluted 174,330 154,052 147,316 Net income (loss) per share attributable to common stockholders: Basic $ 0.20 $ (0.10) $ 1.04 Diluted $ 0.20 $ (0.10) $ 1.04 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 15. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information and disclosure of non-cash investing and financing activities is as follows: For the Year Ended December 31, (in thousands) 2021 2020 2019 Cash paid for interest $ 55,069 $ 46,417 $ 39,515 Distributions reinvested in common stock 23,197 21,278 20,595 Change in accrued future ongoing distribution fees 18,576 1,019 6,540 Repayment of property-level loans upon disposition of real estate property — — 98,600 Increase in DST Program Loans receivable through DST Program capital raising 25,978 26,486 18,744 Redeemable noncontrolling interest issued as settlement of performance participation allocation 4,608 3,776 — Mortgage notes assumed on real estate acquisitions at fair value 125,887 13,472 — Issuances of OP Units for DST Interests 115,653 28,266 — 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 consolidated statements of cash flows: For the Year Ended December 31, (in thousands) 2021 2020 2019 Beginning of period: Cash and cash equivalents $ 11,266 $ 97,772 $ 10,008 Restricted cash 10,468 10,010 7,030 Cash, cash equivalents and restricted cash $ 21,734 $ 107,782 $ 17,038 End of period: Cash and cash equivalents $ 10,605 $ 11,266 $ 97,772 Restricted cash 3,747 10,468 10,010 Cash, cash equivalents and restricted cash $ 14,352 $ 21,734 $ 107,782 |
SIGNIFICANT RISKS AND UNCERTAIN
SIGNIFICANT RISKS AND UNCERTAINTIES | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT RISKS AND UNCERTAINTIES | 16. SIGNIFICANT RISKS AND UNCERTAINTIES Significant Risks and Uncertainties One of the most significant risks and uncertainties is the adverse effect of the current novel coronavirus (COVID-19) pandemic. 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. During the years ended December 31, 2021 and 2020, the COVID-19 pandemic has not had a material effect on our consolidated financial statements. While we are unable to predict the impact that the COVID-19 pandemic in the United States will have on our future financial condition, results of operations and cash flows, there have not been any indications of material future economic disruptions to us related to the COVID-19 pandemic. 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 | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Litigation We and the Operating Partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our investments. 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 December 31, 2021. |
SEGMENT FINANCIAL INFORMATION
SEGMENT FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT FINANCIAL INFORMATION | 18. 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 consolidated assets by segment as of December 31, 2021 and 2020: As of (in thousands) December 31, 2021(1) December 31, 2020 Assets: Office properties $ 335,811 $ 487,193 Retail properties 639,584 685,116 Residential properties 837,491 365,195 Industrial properties 826,353 464,391 Corporate 351,732 109,665 Total assets $ 2,990,971 $ 2,111,560 (1) As of December 31, 2021, amounts held for sale are included in the corporate grouping. Refer to “Note 4” for further detail. The following table sets forth consolidated financial results by segment for the years ended December 31, 2021, 2020 and 2019: (in thousands) Office Retail Residential Industrial Consolidated 2021 Rental revenues $ 64,290 $ 72,102 $ 31,023 $ 41,761 $ 209,176 Rental expenses (28,280) (18,693) (13,387) (9,413) (69,773) Net operating income $ 36,010 $ 53,409 $ 17,636 $ 32,348 $ 139,403 Real estate-related depreciation and amortization $ 19,875 $ 19,485 $ 11,062 $ 23,993 $ 74,415 2020 Rental revenues $ 69,110 $ 71,244 $ 20,424 $ 23,467 $ 184,245 Rental expenses (30,355) (17,568) (9,448) (5,007) (62,378) Net operating income $ 38,755 $ 53,676 $ 10,976 $ 18,460 $ 121,867 Real estate-related depreciation and amortization $ 21,130 $ 19,795 $ 9,762 $ 12,236 $ 62,923 2019 Rental revenues $ 93,826 $ 70,462 $ 6,418 $ 13,735 $ 184,441 Rental expenses (37,905) (17,357) (2,864) (2,934) (61,060) Net operating income $ 55,921 $ 53,105 $ 3,554 $ 10,801 $ 123,381 Real estate-related depreciation and amortization $ 26,194 $ 20,317 $ 4,028 $ 6,803 $ 57,342 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 years ended December 31, 2021, 2020 and 2019. For the Year Ended December 31, (in thousands) 2021 2020 2019 Net income (loss) attributable to common stockholders $ 30,754 $ (14,914) $ 142,551 Debt-related income (9,174) (2,347) (227) Real estate-related depreciation and amortization 74,415 62,923 57,342 General and administrative expenses 8,797 7,548 7,894 Advisory fees, related party 21,433 17,211 13,637 Performance participation allocation 15,327 4,608 3,776 Acquisition costs and reimbursements 2,636 1,108 1,091 Litigation expense — 2,500 — Impairment of real estate property 758 — 113 Equity in income from unconsolidated joint venture partnerships (114) — — Other income (1,852) (1,037) (153) Interest expense 70,494 58,747 48,170 Gain on sale of real estate property (77,857) (13,335) (160,537) Gain on extinguishment of debt and financing commitments, net — — (1,002) Net income (loss) attributable to redeemable noncontrolling interests 221 (54) — Net income (loss) attributable to noncontrolling interests 3,565 (1,091) 10,726 Net operating income $ 139,403 $ 121,867 $ 123,381 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS Acquisition of Properties Subsequent to December 31, 2021, we acquired (excluding properties related to our DST Program), seven industrial properties and one residential property for a combined contractual purchase price of approximately $369.5 million. Disposition of Properties Subsequent to December 31, 2021, we sold one retail property (Bandera Road) and one office property (1 st Avenue), both of which were classified as held for sale as of December 31, 2021, to unrelated third parties for a combined contractual sale price of $150.0 million. Our accounting basis (net of accumulated depreciation and amortization) for these real estate properties as of the closing dates was approximately $101.0 million. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III-REAL ESTATE AND ACCUMULATED DEPRECIATION | SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION As of December 31, 2021 Initial Cost to Company Gross Amount Carried at December 31, 2021 Cost Capitalized or Buildings and Adjustments Buildings and Accumulated No. of Improvements Subsequent to Improvements Total Costs Depreciation Depreciable Life ($ in thousands) Location Buildings Debt (1) Land (2) Total Costs Acquisition (4) Land (2) (3, 4) (4, 5) Acquisition Date (Years) Office properties: Bala Pointe Bala Cynwyd, PA 1 $ — $ 10,115 $ 27,516 $ 37,631 $ 14,536 $ 10,115 $ 42,052 $ 52,167 $ (23,527) 8/28/2006 1 - 40 1300 Connecticut Washington, DC 1 — 25,177 41,250 66,427 10,694 25,177 51,944 77,121 (30,170) 3/10/2009 2 - 40 CityView Austin, TX 4 — 4,606 65,250 69,856 8,343 4,606 73,593 78,199 (22,291) 4/24/2015 1 - 40 Eden Prairie Eden Prairie, MN 1 — 3,538 25,865 29,403 125 3,538 25,990 29,528 (12,446) 10/3/2008 5 - 40 Preston Sherry Plaza Dallas, TX 1 — 7,500 22,303 29,803 13,722 7,500 36,025 43,525 (18,101) 12/16/2009 1 - 40 3 Second Street Jersey City, NJ 1 127,000 16,800 193,742 210,542 43,556 16,800 237,298 254,098 (112,117) 6/25/2010 3 - 40 Total office properties 9 $ 127,000 $ 67,736 $ 375,926 $ 443,662 $ 90,976 $ 67,736 $ 466,902 $ 534,638 $ (218,652) Retail properties: Beaver Creek Apex, NC 1 $ — $ 12,426 $ 31,375 $ 43,801 $ (457) $ 9,955 $ 33,389 $ 43,344 $ (14,052) 5/11/2007 1 - 40 Kingston Kingston, MA 1 — 8,580 12,494 21,074 5,830 8,580 18,324 26,904 (7,390) 8/1/2007 1 - 40 Orleans Orleans, MA 1 — 8,780 23,683 32,463 1,009 8,780 24,692 33,472 (10,903) 8/1/2007 1 - 40 Sandwich Sandwich, MA 1 — 7,380 25,778 33,158 787 7,380 26,565 33,945 (11,654) 8/1/2007 1 - 40 Wareham Wareham, MA 1 — 12,972 27,030 40,002 3,796 12,972 30,826 43,798 (14,258) 8/1/2007 1 - 40 Abington Abington, MA 1 — 14,396 594 14,990 — 14,396 594 14,990 (594) 8/1/2007 - Hyannis Hyannis, MA 1 — 10,405 917 11,322 — 10,405 917 11,322 (718) 8/1/2007 18 - 68 Meriden Meriden, CT 1 — 6,560 22,014 28,574 (1) 6,560 22,013 28,573 (9,834) 8/1/2007 13 - 43 Weymouth Weymouth, MA 1 — 5,170 19,396 24,566 (12) 4,913 19,641 24,554 (8,414) 8/1/2007 4 - 40 Whitman 475 Bedford Street Whitman, MA 1 — 3,610 11,682 15,292 — 3,610 11,682 15,292 (5,341) 8/1/2007 16 - 56 New Bedford New Bedford, MA 1 5,072 3,790 11,152 14,942 — 3,790 11,152 14,942 (4,720) 10/18/2007 22 - 40 Norwell Norwell, MA 1 738 5,850 14,547 20,397 — 5,850 14,547 20,397 (6,588) 10/18/2007 15 - 65 270 Center Washington, DC 1 70,000 19,779 42,515 62,294 4,930 19,781 47,443 67,224 (20,110) 4/6/2009 1 - 40 Springdale Springfield, MA 1 — 11,866 723 12,589 8 11,866 731 12,597 (670) 2/18/2011 6 - 62 Saugus Saugus, MA 1 — 3,783 9,713 13,496 367 3,783 10,080 13,863 (5,415) 3/17/2011 3 - 40 Salt Pond Narragansett, RI 2 — 8,759 40,233 48,992 1,725 8,759 41,958 50,717 (11,981) 11/4/2014 1 - 40 South Cape Mashpee, MA 6 — 9,936 27,552 37,488 5,093 10,307 32,274 42,581 (8,230) 3/18/2015 1 - 40 Shenandoah Davie, FL 3 — 10,501 27,397 37,898 292 10,501 27,689 38,190 (6,998) 8/6/2015 1 - 40 Chester Springs Chester, NJ 4 — 7,376 51,155 58,531 7,296 7,376 58,451 65,827 (14,393) 10/8/2015 1 - 40 Yale Village Tulsa, OK 4 — 3,492 30,655 34,147 1,738 3,492 32,393 35,885 (7,179) 12/9/2015 3 - 40 Suniland Shopping Center Pinecrest, FL 4 — 34,804 33,902 68,706 1,416 34,804 35,318 70,122 (8,817) 5/27/2016 1 - 40 Village at Lee Branch Birmingham, AL 2 — 10,476 32,461 42,937 1,228 10,476 33,689 44,165 (3,848) 1/29/2020 1 - 40 Barrow Crossing Bethlehem, GA 5 — 6,107 50,208 56,315 82 6,107 50,290 56,397 (1,912) 6/22/2021 1 - 40 Total retail properties 45 $ 75,810 $ 226,798 $ 547,176 $ 773,974 $ 35,127 $ 224,443 $ 584,658 $ 809,101 $ (184,019) Initial Cost to Company Gross Amount Carried at December 31, 2021 Cost Capitalized or Buildings and Adjustments Buildings and Accumulated No. of Improvements Subsequent to Improvements Total Costs Depreciation Depreciable Life ($ in thousands) Location Buildings Debt (1) Land (2) Total Costs Acquisition (4) Land (2) (3, 4) (4, 5) Acquisition Date (Years) Residential properties: The Daley Rockville, MD 4 $ 62,000 $ 15,139 $ 80,500 $ 95,639 $ 345 $ 15,139 $ 80,845 $ 95,984 $ (7,353) 7/2/2019 1 - 40 Juno Winter Park Winter Park, FL 1 — 9,129 75,420 84,549 251 9,129 75,671 84,800 (5,888) 7/9/2019 1 - 40 Perimeter Sandy Springs, GA 1 — 17,407 99,763 117,170 376 17,407 100,139 117,546 (7,298) 12/19/2019 1 - 40 The Palms Davie, FL 15 — 18,737 60,475 79,212 1,629 18,737 62,104 80,841 (3,278) 11/3/2020 1 - 40 oLiv Tucson Tucson, AZ 1 80,600 — 128,659 128,659 6 — 128,665 128,665 (896) 10/20/2021 1 - 40 Arabelle Clearwater Clearwater, FL 10 — 11,633 104,719 116,352 — 11,633 104,719 116,352 (321) 11/30/2021 1 - 40 Arabelle Riverwalk Tampa Bay, FL 1 117,063 20,005 214,045 234,050 — 20,005 214,045 234,050 — 12/28/2021 1 - 40 Total residential properties 33 $ 259,663 $ 92,050 $ 763,581 $ 855,631 $ 2,607 $ 92,050 $ 766,188 $ 858,238 $ (25,034) Industrial properties: Vasco Road Livermore, CA 1 $ 17,435 $ 4,880 $ 12,019 $ 16,899 $ (60) $ 4,880 $ 11,959 $ 16,839 $ (2,783) 7/21/2017 3 - 40 Northgate North Las Vegas, NV 1 22,605 3,940 20,715 24,655 16 3,943 20,728 24,671 (3,506) 7/26/2017 10 - 40 Stafford Grove Stafford, TX 3 — 8,540 28,879 37,419 1,697 8,586 30,530 39,116 (5,036) 4/9/2018 4 - 40 Kaiser Business Center Folcroft, PA 2 — 6,140 12,730 18,870 235 6,140 12,965 19,105 (2,752) 12/10/2018 2 - 40 Tri-County DC Schertz, TX 1 16,819 2,346 18,400 20,746 907 2,346 19,307 21,653 (2,780) 2/13/2019 1 - 40 Florence Logistics Center Florence, KY 1 14,358 1,791 16,968 18,759 — 1,791 16,968 18,759 (2,001) 5/14/2019 1 - 40 World Connect Logistics Center Indianapolis, IN 1 32,386 4,983 39,172 44,155 — 4,983 39,172 44,155 (3,762) 9/27/2019 1 - 40 Tri-County DC II A Schertz, TX 1 9,004 1,280 8,562 9,842 89 1,280 8,651 9,931 (1,135) 10/1/2019 1 - 40 Aurora DC Aurora, IL 1 — 1,681 6,887 8,568 887 1,681 7,774 9,455 (1,346) 12/13/2019 1 - 40 Railhead DC Dallas/Fort Worth, TX 1 8,694 2,102 17,475 19,577 25 2,102 17,500 19,602 (1,470) 2/4/2020 6 - 40 Tri-County DC II B Schertz, TX 1 2,393 455 2,429 2,884 48 455 2,477 2,932 (244) 2/14/2020 4 - 40 Sterling IC Washington, DC 1 — 1,976 3,369 5,345 (18) 1,976 3,351 5,327 (277) 3/25/2020 6 - 40 Clayton Commerce Center Atlanta, GA 1 — 7,403 51,886 59,289 5,415 7,403 57,301 64,704 (4,403) 6/26/2020 7 - 40 Bay Area Commerce Center East Bay, CA 1 — 10,135 38,672 48,807 1,254 10,135 39,926 50,061 (1,902) 8/27/2020 9 - 40 Air Tech DC Louisville, KY 2 3,387 615 18,471 19,086 156 615 18,627 19,242 (1,136) 10/16/2020 1 - 40 East Columbia IC Portland, OR 2 — 3,352 11,726 15,078 54 3,352 11,780 15,132 (947) 12/2/2020 3 - 20 Plainfield LC Indianapolis, IN 1 — 2,514 17,260 19,774 17 2,514 17,277 19,791 (668) 12/16/2020 7 - 40 395 LC Reno, NV 1 — 6,752 61,784 68,536 134 6,752 61,918 68,670 (2,721) 12/21/2020 5 - 40 Radar Distribution Center Northampton, PA 1 — 7,167 42,373 49,540 631 7,167 43,004 50,171 (836) 3/31/2021 7 - 40 Intermountain Space Center Salt Lake City, UT 1 — 14,786 48,645 63,431 322 14,786 48,967 63,753 (1,726) 6/30/2021 3 - 20 Airway Industrial Park San Diego, CA 1 — 5,740 18,616 24,356 719 5,740 19,335 25,075 (198) 7/9/2021 1 - 40 Greenwood Business Center Greenwood, IN 1 — 858 16,251 17,109 (30) 858 16,221 17,079 (338) 8/2/2021 5 - 40 25 Linden Industrial Center Jersey City, NJ 1 — 7,764 9,576 17,340 — 7,764 9,576 17,340 (358) 8/31/2021 2 - 20 Little Orchard Business Park San Jose, CA 4 — 51,265 48,147 99,412 99 51,265 48,246 99,511 (1,454) 9/8/2021 1 - 20 Tustin Business Center Tustin, CA 2 — 22,734 12,233 34,967 35 22,734 12,268 35,002 (226) 9/22/2021 8 - 20 Campus Drive IC Burlington, NJ 1 — 2,364 4,288 6,652 33 2,364 4,321 6,685 (68) 10/7/2021 10 - 20 Long Island Logistics Center Islandia, NY 1 — 4,927 16,198 21,125 90 4,927 16,288 21,215 (61) 12/9/2021 9 - 20 Phoenix IC Phoenix, AZ 1 — 4,709 12,895 17,604 — 4,709 12,895 17,604 (83) 12/13/2021 1 - 20 Tempe IC Tempe, AZ 1 — 3,628 24,857 28,485 — 3,628 24,857 28,485 (85) 12/13/2021 2 - 20 Las Vegas IC Las Vegas, NV 2 — 2,623 6,186 8,809 — 2,623 6,186 8,809 (18) 12/13/2021 4 - 30 Total industrial properties 40 $ 127,081 $ 199,450 $ 647,669 $ 847,119 $ 12,755 $ 199,499 $ 660,375 $ 859,874 $ (44,320) Grand total 127 $ 589,554 $ 586,034 $ 2,334,352 $ 2,920,386 $ 141,465 $ 583,728 $ 2,478,123 $ 3,061,851 $ (472,025) (1) These properties are encumbered by mortgage notes. Amounts reflects principal amount outstanding as of December 31, 2021. See “Note 6 to the Consolidated Financial Statements” in Item 8, “Financial Statements and Supplementary Data” for more detail regarding our borrowings. (2) Includes gross intangible lease assets. (3) As of December 31, 2021, the aggregate cost for U.S. federal income tax purposes of investments in property was approximately $1.4 billion (unaudited). (4) Amount is presented net of impairments and other write-offs of tenant-related assets that were recorded at acquisition as part of our purchase price accounting. Such write-offs are the result of lease expirations and terminations. (5) Includes intangible lease asset amortization. The following table summarizes investment in real estate properties and accumulated depreciation and amortization activity for the periods presented below: For the Year Ended December 31, 2021 2020 2019 Investments in real estate properties: Balance at the beginning of period $ 2,455,678 $ 2,057,350 $ 2,008,733 Acquisitions of properties 924,206 380,525 399,428 Improvements 38,295 40,595 44,103 Property dispositions or held for sale assets (355,570) (22,792) (394,711) Impairment of real estate (758) — (113) Write-offs of intangibles and customer leasing costs — — (90) Balance at the end of period $ 3,061,851 $ 2,455,678 $ 2,057,350 Accumulated depreciation and amortization: Balance at the beginning of period $ 501,105 $ 444,718 $ 501,621 Real estate depreciation and amortization expense 74,415 62,923 57,342 Above-market lease assets amortization expenses 469 357 792 Right of use asset amortization expense 53 — — Property dispositions or held for sale assets (104,017) (6,893) (114,948) Write-offs of intangibles and customer leasing costs — — (89) Balance at the end of period $ 472,025 $ 501,105 $ 444,718 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of Ares Real Estate Income Trust Inc., the Operating Partnership, their wholly-owned subsidiaries, including a taxable REIT subsidiary, and their consolidated joint ventures, as well as amounts related to noncontrolling interests. See “Noncontrolling Interests” below for further detail concerning the accounting policies regarding noncontrolling interests. All material intercompany accounts and transactions have been eliminated. The Operating Partnership meets the criteria of a variable interest entity (“VIE”) as the Operating Partnership’s limited partners do not have the right to remove the general partner and do not have substantive participating rights in the operations of the Operating Partnership. Pursuant to the operating partnership agreement, we are the primary beneficiary of the Operating Partnership as we have the obligation to absorb losses and receive benefits, and the power to control substantially all of the activities which most significantly impact the economic performance of the Operating Partnership. As such, the Operating Partnership continues to be consolidated within our consolidated financial statements. We consolidate all entities in which we have a controlling financial interest through majority ownership or voting rights and variable interest entities whereby we are the primary beneficiary. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider whether the entity is a variable interest entity (“VIE”) and whether we are the primary beneficiary. We are the primary beneficiary of a VIE when we have (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE. Entities that do not qualify as VIEs are generally considered voting interest entities (“VOEs”) and are evaluated for consolidation under the voting interest model. VOEs are consolidated when we control the entity through a majority voting interest or other means. When the requirements for consolidation are not met and we have significant influence over the operations of the entity, the investment is accounted for under the equity method of accounting. Equity method investments are initially recorded at cost and subsequently adjusted for our pro-rata share of net income, contributions and distributions. |
Use of Estimates | Use of Estimates GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary. |
Reclassifications | Reclassifications Certain items in our consolidated balance sheet as of December 31, 2020 and in our consolidated statements of operations for the years ended December 31, 2019 and 2020 have been reclassified to conform to the 2021 presentation. Our accrued performance participation allocation has been reclassified from accounts payable and accrued expenses to other liabilities in our consolidated balance sheets. Additionally, acquisition costs and reimbursements have been reclassified from general and administrative expenses to be shown separately on one line item on the consolidated statements of operations. |
Investment In Real Estate Properties | Investment in Real Estate Properties We first determine whether an acquisition constitutes a business or asset acquisition. Upon either a business or asset acquisition, the purchase price of a property is allocated to land, building and intangible lease assets and liabilities. The allocation of the purchase price to building is based on management’s estimate of the property’s “as-if” vacant fair value. The “as-if” vacant fair value is determined by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the purchase price to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, tenant improvements, legal and other related costs. The allocation of the purchase price to above-market lease assets and below-market lease liabilities results from in-place leases being above or below management’s estimate of fair market rental rates at the acquisition date and are measured over a period equal to the remaining term of the lease for above-market leases and the remaining term of the lease, plus the term of any below-market fixed-rate renewal option periods, if applicable, for below-market leases. Intangible lease assets, above-market lease assets, and below-market lease liabilities are collectively referred to as “intangible lease assets and liabilities.” If any debt is assumed in an acquisition, the difference between the fair value and the face value of debt is recorded as a premium or discount and amortized to interest expense over the life of the debt assumed. See “Note 3” for additional information regarding debt assumed in connection with our 2021 and 2020 acquisitions. Transaction costs associated with the acquisition of a property are capitalized as incurred in an asset acquisition and are allocated to land, building and intangible lease assets on a relative fair value basis. Transaction costs associated with business combinations are expensed as they are incurred. Properties that are probable to be sold are to be designated as “held for sale” on the consolidated balance sheets when certain criteria are met. The results of operations for acquired businesses and properties are included in the consolidated statements of operations from their respective acquisition dates. Intangible lease assets are amortized to real estate-related depreciation and amortization over the remaining lease term. Above-market lease assets are amortized as a reduction in rental revenues over the remaining lease term and below-market lease liabilities are amortized as an increase in rental revenues over the remaining lease term, plus any applicable fixed-rate renewal option periods. We expense any unamortized intangible lease asset or record an adjustment to rental revenue for any unamortized above-market lease asset or below-market lease liability when a customer terminates a lease before the stated lease expiration date. During the years ended December 31, 2021, 2020 and 2019, we recorded $0.9 million, $2.6 million and $2.0 million, respectively, related to write-offs of unamortized intangible lease assets and liabilities due to early lease terminations. Land, building, building and land improvements, tenant improvements, lease commissions, and intangible lease assets and liabilities, which are collectively referred to as “real estate assets,” are stated at historical cost less accumulated depreciation and amortization. Costs associated with the development and improvement of our real estate assets are capitalized as incurred. These costs include capitalized interest, insurance, real estate taxes and certain general and administrative expenses if such costs are incremental and identifiable to a specific activity to prepare the real estate asset for its intended use. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as describe in the following table: Land Not depreciated Building 20-40 years Building and land improvements 10-40 years Tenant improvements Lesser of useful life or lease term Lease commissions Over lease term Intangible in-place lease assets Over lease term Above-market lease assets Over lease term Below-market lease liabilities Over lease term, including below-market fixed-rate renewal options Certain of our investments in real estate are subject to a ground lease, for which a lease liability and corresponding right of use asset were recognized. We calculate the amount of the lease liability and right of use asset by taking the present value of the remaining lease payments, and adjusting the right of use asset for any existing straight-line ground rent liability and acquired ground lease intangibles. An estimated incremental borrowing rate of a loan with a similar term as the ground lease was used as the discount rate. The lease liability is included as a component of other liabilities, and the related right of use asset is recorded as a component of net investments in real estate properties on our consolidated balance sheets. The amortization of the below-market ground lease is recorded as an adjustment to real estate-related depreciation and amortization on our consolidated statements of operations. Real estate assets that are determined to be held and used will be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, and we will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. Refer to “Note 3” for detail regarding the non-cash impairment charges recorded during the years ended December 31, 2021 and 2019. There were no impairment charges during the year ended December 31, 2020. |
Investment in unconsolidated joint venture partnerships | Investment in Unconsolidated Joint Venture Partnerships We analyze our investment in an unconsolidated joint venture under GAAP to determine if the joint venture is a VIE and whether the requisite substantial participating rights described in the GAAP are held by the partners not affiliated with the us. If the joint venture is not a VIE and the partners not affiliated with us hold substantial participating rights, we account for our investment in the joint venture under the equity method. Under the equity method, the investment is initially recorded at cost (including direct acquisition costs) and subsequently adjusted to reflect our proportionate share of equity in the joint venture’s net (income) loss, distributions received, contributions made and certain other adjustments made, as appropriate, which is included in investment in unconsolidated joint venture partnerships on our consolidated balance sheets. The proportionate share of ongoing income or loss of the unconsolidated joint venture partnerships is recognized in equity in (income) loss of unconsolidated joint venture partnerships on the consolidated statements of operations. The outside basis portion of our unconsolidated joint venture partnerships (if applicable) is amortized over the anticipated useful lives of the joint ventures’ tangible and intangible assets acquired and liabilities assumed. When circumstances indicate there may have been a reduction in the value of an equity investment, we evaluate whether the loss is other than temporary. If we conclude it is other than temporary, an impairment charge is recognized to reflect the equity investment at fair value. No impairment losses were recorded related to our investment in unconsolidated joint venture partnerships for the year ended December 31, 2021. |
Debt-Related Investments | Debt-Related Investments Debt-related investments are considered to be held for investment, as we have both the intent and ability to hold these investments until maturity. Accordingly, these assets are carried at cost, net of unamortized loan origination costs and fees, discounts, repayments and unfunded commitments unless such loans or investments are deemed to be impaired. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less, such as money market mutual funds or certificates of deposit. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk. |
Restricted Cash | Restricted Cash Restricted cash consists primarily of lender and property-related escrow accounts. |
Derivative Instruments | Derivative Instruments We record our derivative instruments at fair value. The accounting for changes in fair value of derivative instruments depends on whether it has been designated and qualifies as a hedge and, if so, the type of hedge. Our interest rate swap derivative instruments are designated as cash flow hedges and are used to hedge exposure to variability in expected future interest payments. The change in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets and is subsequently reclassified into earnings as interest expense for the period that the hedged forecasted transaction affects earnings, which is when the interest expense is recognized on the related debt. Our interest rate cap derivative instruments are not designated as hedges and therefore, changes in fair value must be recognized through income. We do not use derivative instruments for trading or speculative purposes. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs include fees and costs incurred to obtain long-term financing, including costs associated with financing obligations. These fees and costs are amortized to interest expense over the expected terms of the related credit facilities. Unamortized deferred financing costs are written off if debt is retired before its expected maturity date. Accumulated amortization of deferred financing costs was approximately $13.0 million and $13.9 million as of December 31, 2021 and 2020, respectively. Our interest expense for the years ended December 31, 2021, 2020 and 2019 included $13.6 million, $10.0 million and $6.9 million, respectively, of amortization of financing costs. |
Distribution Fees | Distribution Fees Distribution fees are paid monthly. Distribution fees are accrued upon the issuance of Class T, Class S and Class D shares. As of the balance sheet date, we accrue for: (i) the monthly amount payable, and (ii) the estimated amount of distribution fees that we may pay in future periods. The accrued distribution fees are reflected in additional paid-in capital in stockholders’ equity. See “Note 13” for additional information regarding when distribution fees become payable. |
Noncontrolling Interests | Noncontrolling Interests Due to our control of the Operating Partnership through our sole general partner interest and our limited partner interest, we consolidate the Operating Partnership. The remaining limited partner interests in the Operating Partnership are owned by third-party investors and are presented as noncontrolling interests in the consolidated financial statements. The noncontrolling interests are reported on the consolidated balance sheets within permanent equity, separate from stockholders’ equity. For consolidated joint venture partnerships, the non-controlling partner’s share of the assets, liabilities and operations of the joint venture is included in noncontrolling interests as equity. The noncontrolling partner’s interest is generally computed as the joint venture partner’s ownership percentage. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest The Former Sponsor held, directly or indirectly, partnership units in the Operating Partnership (“OP Units”), which were issued as payment of the performance participation allocation (also referred to as the performance component of the advisory fee) pursuant to the advisory agreement (the “Advisory Agreement”) by and among us, the Operating Partnership and the Advisor. Subsequent to the Transaction (as defined in “Note 13”), the Former Sponsor transferred these OP Units to its members or their affiliate. We have classified these OP Units as redeemable noncontrolling interest in mezzanine equity on the consolidated balance sheets due to the fact that, as defined in the operating partnership agreement, the limited partners who hold these OP Units have the ability to transfer or redeem its OP units at any time. The redeemable noncontrolling interest is 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. See “Note 11” for additional information regarding redeemable noncontrolling interests. |
Revenue Recognition | Revenue Recognition When a lease is entered into, we first determine if the collectability from the customer is probable. If the collectability is not probable, we recognize revenue when the payment has been received. If the collectability is determined to be probable, we record rental revenue on a straight-line basis over the full lease term. Certain properties have leases that offer the customer a period of time where no rent is due or where rent payments change during the term of the lease. Accordingly, we record receivables from customers for rent that we expect to collect over the remaining lease term rather than currently, which are recorded as a straight-line rent receivable. We analyze accounts receivable by considering customer creditworthiness, current economic trends, including the impact of the outbreak of the current novel coronavirus (COVID-19) pandemic on customers’ businesses, and customers’ ability to make payments on time and in full when evaluating the adequacy of the allowance for doubtful accounts receivable. As of December 31, 2021, the impact of COVID-19 on customer collectability has been minimal and has not had a material impact on the consolidated financial statements. We evaluate collectability from our customers on an ongoing basis. If the assessment of collectability changes during the lease term, any difference between the revenue that would have been recognized under the straight-line method and the lease payments that have been collected will be recognized as a current period adjustment to rental revenues. When we acquire a property, the term of each existing lease is considered to commence as of the acquisition date for purposes of this calculation. As of December 31, 2021 and 2020, our allowance for doubtful accounts was approximately $0.6 million and $1.1 million, respectively. These amounts are included in our other assets on the consolidated balance sheets. In connection with property acquisitions, we may acquire leases with rental rates above or below estimated market rental rates. Above-market lease assets are amortized as a reduction to rental revenue over the remaining lease term, and below-market lease liabilities are amortized as an increase to rental revenue over the remaining lease term, plus any applicable fixed-rate renewal option periods. We expense any unamortized intangible lease asset or record an adjustment to rental revenue for any unamortized above-market lease asset or below-market lease liability by reassessing the estimated remaining useful life of such intangible lease asset or liability when it becomes probable a customer will terminate a lease before the stated lease expiration date. Upon disposition of a real estate asset, we will evaluate the transaction to determine if control of the asset, as well as other specified criteria, has been transferred to the buyer to determine proper timing of recognizing gains or losses. |
Income Taxes | Income Taxes We elected under the Internal Revenue Code of 1986, as amended, to be taxed as a REIT beginning with the tax year ended December 31, 2006. As a REIT, we generally are not subject to U.S. federal income taxes on net income we distribute to our stockholders. We intend to make timely distributions sufficient to satisfy the annual distribution requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate tax rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and federal income and excise taxes on our undistributed income. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per common share is determined by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share includes the effects of potentially issuable common stock, but only if dilutive, including the presumed exchange of OP Units. See “Note 14” for additional information regarding net income (loss) per share. |
Fair Value Measurements | Fair Value Measurements Fair value measurements are determined based on assumptions that market participants would use in pricing of assets or estimating liabilities. Fair value measurements are categorized into one of three levels of the fair value hierarchy based on the lowest level of significant input used. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Considerable judgment and a high degree of subjectivity are involved in developing these estimates. These estimates may differ from the actual amounts that we could realize upon settlement. The fair value hierarchy is as follows: Level 1—Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2—Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: ● Quoted prices for similar assets/liabilities in active markets; ● Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); ● Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and ● Inputs that are derived principally from or corroborated by other observable market data. Level 3—Unobservable inputs that cannot be corroborated by observable market data. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents. At times, balances with any one financial institution may exceed the Federal Deposit Insurance Corporation insurance limits. We believe this risk is mitigated by investing our cash with high-credit quality financial institutions. As our revenues predominately consist of rental payments, we are dependent on our customers for our source of revenues. Concentration of credit risk arises when our source of revenue is highly concentrated from certain of our customers. As of December 31, 2021, no customers represented more than 10.0% of our total annualized base rent. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 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 consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as describe in the following table: Land Not depreciated Building 20-40 years Building and land improvements 10-40 years Tenant improvements Lesser of useful life or lease term Lease commissions Over lease term Intangible in-place lease assets Over lease term Above-market lease assets Over lease term Below-market lease liabilities Over lease term, including below-market fixed-rate renewal options |
INVESTMENTS IN REAL ESTATE PR_2
INVESTMENTS IN REAL ESTATE PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of Consolidated Investments in Real Estate Properties | The following table summarizes our consolidated investments in real estate properties and excludes properties classified as held for sale. Refer to “Note 4” for detail relating to our real estate properties held for sale: As of December 31, (in thousands) 2021 2020 Land $ 583,728 $ 476,442 Buildings and improvements 2,180,358 1,689,474 Intangible lease assets 284,128 289,762 Right of use asset 13,637 — Investment in real estate properties 3,061,851 2,455,678 Accumulated depreciation and amortization (472,025) (501,105) Net investment in real estate properties $ 2,589,826 $ 1,954,573 |
Schedule of Asset Acquisitions | During the years ended December 31, 2021 ($ in thousands) Property Type Acquisition Date Total Purchase Price (1) Radar Distribution Center Industrial 3/31/2021 $ 49,168 Intermountain Space Center Industrial 6/30/2021 61,057 Airway Industrial Park Industrial 7/9/2021 24,356 Greenwood Business Center Industrial 8/2/2021 16,888 25 Linden Industrial Center Industrial 8/31/2021 17,146 Little Orchard Business Park Industrial 9/8/2021 96,559 Tustin Business Center Industrial 9/22/2021 33,285 Campus Drive IC Industrial 10/7/2021 6,652 Long Island Logistics Center Industrial 12/9/2021 20,001 Phoenix IC Industrial 12/13/2021 17,604 Tempe IC Industrial 12/13/2021 28,347 Las Vegas IC Industrial 12/13/2021 8,809 Barrow Crossing Retail 6/22/2021 50,205 oLiv Tucson (2) Residential 10/20/2021 124,219 Arabelle Clearwater Residential 11/30/2021 116,352 Arabelle Riverwalk (3) Residential 12/28/2021 234,050 Total 2021 acquisitions $ 904,698 2020 Acquisitions: Village at Lee Branch Retail 1/29/2020 $ 41,665 Railhead DC (4) Industrial 2/4/2020 19,295 Tri-County DC II B Industrial 2/14/2020 2,884 Sterling IC Industrial 3/25/2020 5,118 Clayton Commerce Center Industrial 6/26/2020 59,289 Bay Area Commerce Center Industrial 8/27/2020 48,807 Air Tech DC (5) Industrial 10/16/2020 18,709 East Columbia IC Industrial 12/2/2020 14,914 Plainfield LC Industrial 12/16/2020 19,428 395 LC Industrial 12/21/2020 68,270 The Palms Residential 11/3/2020 79,212 Total 2020 acquisitions $ 377,591 (1) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. (2) We acquired a 97.5% interest in this property. As part of the transaction, we assumed a ground lease with 97 years remaining and four 25 year extension options, which resulted in a $13.6 million right of use asset and a $4.4 million lease liability associated with the ground lease upon completion of the transaction. (3) Includes debt assumed at fair value as of the acquisition date of $125.9 million, with a principal amount of $117.1 million. (4) Includes debt assumed at fair value as of the acquisition date of $9.8 million, with a principal amount of $9.2 million. (5) Includes debt assumed at fair value as of the acquisition date of $3.6 million, with a principal amount of $3.4 million. |
Allocation of Purchase Price Allocations | During the years ended December 31, 2021 As of December 31, ($ in thousands) 2021 2020 Land $ 166,310 $ 64,517 Building 703,597 287,762 Intangible lease assets 39,270 26,144 Above-market lease assets 1,392 2,102 Right of use asset (1) 13,637 — Lease liability (1) (4,440) — Below-market lease liabilities (15,068) (2,934) Total purchase price (2) $ 904,698 $ 377,591 (1) Right of use asset and lease liability are related to the ground lease entered into as part of the oLiv Tucson transaction. (2) Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. |
Intangible Lease Assets And Liabilities | Intangible lease assets and liabilities, excluding properties classified as held for sale, as of December 31, 2021 and 2020 include the following: As of December 31, 2021 As of December 31, 2020 Accumulated Accumulated (in thousands) Gross Amortization Net Gross Amortization Net Intangible lease assets $ 261,401 $ (186,820) $ 74,581 $ 266,242 $ (214,055) $ 52,187 Above-market lease assets 22,727 (19,507) 3,220 23,520 (21,216) 2,304 Below-market lease liabilities (80,206) 32,707 (47,499) (79,891) 39,434 (40,457) |
Estimated Net Amortization of Intangible Lease Assets and Liabilities | The following table details the estimated net amortization of such intangible lease assets and liabilities, excluding properties classified as held for sale, as of December 31, 2021, for the next five years and thereafter: As of December 31, 2021 (in thousands) 2022 2023 2024 2025 2026 Thereafter Total Intangible lease assets $ 20,877 $ 13,465 $ 10,269 $ 8,575 $ 6,854 $ 14,541 $ 74,581 Above-market lease assets 565 553 525 415 352 810 3,220 Below-market lease liabilities (4,153) (3,982) (3,619) (3,441) (3,199) (29,105) (47,499) |
Rental Revenue 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 Year Ended December 31, (in thousands) 2021 2020 2019 Increase (decrease) to rental revenue: Straight-line rent adjustments (1) $ 5,849 $ 5,539 $ 7,776 Above-market lease amortization (469) (357) (792) Below-market lease amortization 3,559 3,521 4,042 Real estate-related depreciation and amortization: Depreciation expense $ 59,766 $ 47,629 $ 40,824 Intangible lease asset amortization 14,649 15,294 16,518 (1) The straight-line rent adjustment amount for the years ended December 31, 2021 and 2019 included $ 2.5 million and $6.1 million, respectively, related to early lease termination payments that were recognized to rental revenues on a straight-line basis over the remaining term of the respective lease. There was no straight-line rent adjustments related to early lease termination fees for the year ended December 31, 2020. |
Future Minimum Rent | Future minimum base rental payments, which equal the cash basis of monthly contractual rent, owed to us from our commercial customers under the terms of non-cancelable operating leases in effect as of December 31, 2021, excluding rental revenues from the potential renewal or replacement of existing leases and excluding rental revenues from properties classified as held for sale, were as follows for the next five years and thereafter: As of December 31, (in thousands) 2021 Year 1 $ 128,671 Year 2 119,272 Year 3 103,502 Year 4 90,453 Year 5 74,651 Thereafter 233,682 Total $ 750,231 |
ASSETS HELD FOR SALE (Tables)
ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ASSETS HELD FOR SALE | |
Schedule of assets held for sale | As of (in thousands) December 31, 2021 December 31, 2020 Net investment in real estate properties $ 101,690 $ — Other Assets 3,406 — Assets held for sale $ 105,096 $ — Accounts payable and accrued expenses $ 3,172 $ — Intangible lease liabilities, net 995 Other liabilities 1,577 — Liabilities related to assets held for sale $ 5,744 $ — |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURE PARTNERSHIPS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investment And Joint Venture [Abstract] | |
Equity method investments | The following table summarizes our investments in unconsolidated joint venture partnerships as of December 31, 2021: Investment in Ownership Unconsolidated Joint ($ in thousands) Segment Percentage Venture Partnership Vue 1400 JV Residential 85% $ 26,117 Net Lease JV I Net Lease 50% 16,267 Net Lease JV II Net Lease 50% 15,041 Total investment in unconsolidated joint venture partnerships $ 57,425 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, December 31, December 31, December 31, ($ in thousands) 2021 2020 Current Maturity Date 2021 2020 Line of credit (1) 1.35 % 1.54 % November 2025 $ 256,000 $ 106,000 Term loan (2) 3.16 3.27 November 2026 325,000 325,000 Term loan (3) 3.19 3.29 January 2027 200,000 200,000 Fixed-rate mortgage notes 3.49 3.55 October 2022 - May 2031 381,954 210,544 Floating-rate mortgage note (4) 2.26 2.50 October 2024 - October 2026 207,600 127,000 Total principal amount / weighted-average (5) 2.78 % 3.04 % $ 1,370,554 $ 968,544 Less: unamortized debt issuance costs $ (16,762) $ (4,083) Add: mark-to-market adjustment on assumed debt 9,442 844 Total debt, net $ 1,363,234 $ 965,305 Gross book value of properties encumbered by debt $ 981,927 $ 584,637 (1) The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.25% to 2.00% , depending on our consolidated leverage ratio. As of December 31, 2021, the unused and available portions under the line of credit were approximately $444.0 million and $327.8 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 1.20% to 1.90% , depending on our consolidated leverage ratio. Total commitments for this term loan are $400.0 million. As of December 31, 2021, the unused and available portion of this term loan was $75.0 million. Any additional amount drawn on this term loan would reduce the amount available under the line of credit in the same amount. 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 1.20% to 1.90% , depending on our consolidated leverage ratio. Total commitments for this term loan are $400.0 million. As of December 31, 2021, the unused and available portion of this term loan was $200.0 million. Any additional amount drawn on this term loan would reduce the amount available under the line of credit in the same amount. The weighted-average interest rate is the all-in interest rate and is fixed through interest swap agreements. (4) The effective interest rate is calculated based on LIBOR plus a margin. As of December 31, 2021, our floating-rate mortgage notes were subject to interest rate spreads ranging from 1.55% to 2.50% . As of December 31, 2020, our floating-rate mortgage note was subject to an interest rate spread of 2.25% . (5) The weighted-average remaining term of our consolidated borrowings was approximately 4.9 years as of December 31, 2021, excluding the impact of certain extension options. |
Schedule of Maturities of Long-term Debt | As of December 31, 2021, the principal payments due on our consolidated debt during each of the next five years and thereafter were as follows: (in thousands) Line of Credit (1) Term Loans Mortgage Notes Total 2022 $ — $ — $ 1,612 $ 1,612 2023 — — 1,463 1,463 2024 — — 129,265 129,265 2025 256,000 — 72,360 328,360 2026 — 325,000 84,214 409,214 Thereafter — 200,000 300,640 500,640 Total principal payments $ 256,000 $ 525,000 $ 589,554 $ 1,370,554 (1) The term of the line of credit may be extended pursuant to two six-month extension options, subject to certain conditions. |
Schedule of Derivative Instruments | The following table summarizes the location and fair value of our derivative instruments on our consolidated balance sheets: Number of Fair Value ($ in thousands) Contracts Notional Amount Other Assets Other Liabilities As of December 31, 2021 Interest rate swaps 13 $ 500,000 $ 164 $ 11,236 Interest rate caps 2 207,600 159 — Total derivative instruments 15 $ 707,600 $ 323 $ 11,236 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 |
Derivative Instruments, Gain (Loss) | The following table presents the effect of our derivative instruments on our consolidated financial statements: For the Year Ended December 31, (in thousands) 2021 2020 2019 Derivative instruments designated as cash flow hedges: Gain (loss) recognized in AOCI $ 5,616 $ (21,589) $ (13,341) Amount reclassified from AOCI into interest expense 10,281 7,747 (1,600) Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring — — (1,374) Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded 70,494 58,747 48,170 Derivative instruments not designated as cash flow hedges: Gain (loss) recognized in income $ 71 $ (13) $ (25) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair value of instruments measured 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 December 31, 2021 Assets: Derivative instruments $ — $ 323 $ — $ 323 Total assets measured at fair value $ — $ 323 $ — $ 323 Liabilities: Derivative instruments $ — $ 11,236 $ — $ 11,236 Total liabilities measured at fair value $ — $ 11,236 $ — $ 11,236 As of December 31, 2020 Assets: Derivative instruments $ — $ — $ — $ — Total assets measured at fair value $ — $ — $ — $ — Liabilities: Derivative instruments $ — $ 26,916 $ — $ 26,916 Total liabilities measured at fair value $ — $ 26,916 $ — $ 26,916 |
Fair value of instruments measured on a nonrecurring basis | The carrying values and fair values of these financial instruments were as follows: As of December 31, 2021 As of December 31, 2020 Carrying Fair Carrying Fair (in thousands) Value (1) Value Value (1) Value Assets: Debt-related investments $ 106,463 $ 106,463 $ 49,885 $ 49,584 DST Program Loans 62,123 62,123 45,229 45,229 Liabilities: Line of credit $ 256,000 $ 256,000 $ 106,000 $ 105,592 Term loans 525,000 525,000 525,000 521,945 Mortgage notes 589,554 600,467 337,544 336,336 (1) The carrying value reflects the principal amount outstanding. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Preliminary Taxability of Distributions on Common Shares | The following unaudited table summarizes the annual information reported to investors regarding the taxability of distributions on common stock, as a percentage of total distributions, for the years ended December 31, 2021, 2020 and 2019. This information assumes that an investor owned shares of our common stock for the full 2021 calendar year. For the Year Ended December 31, 2021 2020 2019 Ordinary income 13.62 % 3.28 % 22.78 % Non-taxable return of capital 61.37 12.34 61.01 Capital gain 25.01 84.38 16.21 Total distributions 100.00 % 100.00 % 100.00 % |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2021, is as follows: (in thousands) Class T Class S Class D Class I Class E Total Amount of gross proceeds raised: Primary offering $ 56,107 $ 97,389 $ 21,299 $ 76,732 $ — $ 251,527 DRIP 2,050 4,736 927 8,521 6,963 23,197 Total offering $ 58,157 $ 102,125 $ 22,226 $ 85,253 $ 6,963 $ 274,724 Number of shares sold: Primary offering 6,593 12,539 2,778 10,441 — 32,351 DRIP 267 618 121 1,112 910 3,028 Total offering 6,860 13,157 2,899 11,553 910 35,379 |
Summary of Changes in Shares Outstanding and Aggregate Par Value of Outstanding Shares for Each Class of Common Stock | The following table describes the changes in each class of common shares during each of the years ended December 31, 2021, 2020 and 2019: Class T Class S Class D Class I Class E Total (in thousands) Shares Shares Shares Shares Shares Shares Balance as of December 31, 2018 2,783 10,516 2,778 37,385 77,390 130,852 Issuance of common stock: Primary shares 3,298 10,926 1,050 7,881 — 23,155 Distribution reinvestment plan 88 366 80 1,069 1,197 2,800 Share-based compensation — — — 86 — 86 Redemptions of common stock (317) (1,215) (409) (2,689) (11,783) (16,413) Balance as of December 31, 2019 5,852 20,593 3,499 43,732 66,804 140,480 Issuance of common stock: Primary shares 4,006 4,507 728 4,531 — 13,772 Distribution reinvestment plan 187 476 91 1,065 1,021 2,840 Share-based compensation — — — 20 — 20 Redemptions of common stock (214) (2,060) (220) (4,625) (6,952) (14,071) Balance as of December 31, 2020 9,831 23,516 4,098 44,723 60,873 143,041 Issuance of common stock: Primary shares 6,593 12,539 2,778 10,441 — 32,351 Distribution reinvestment plan 267 618 121 1,112 910 3,028 Share-based compensation — — — 29 — 29 Redemptions of common stock (266) (916) (248) (1,899) (5,455) (8,784) Balance as of December 31, 2021 16,425 35,757 6,749 54,406 56,328 169,665 |
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 (2) Distributions (3) 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 December 31 0.09375 8,265 3,331 6,361 17,957 Total $ 0.37500 $ 31,507 $ 10,220 $ 23,595 $ 65,322 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 gross quarterly distribution rate, prior to adjustment for class-specific fees. (2) Amount reflects distributions paid in cash to common stockholders, net of class-specific fees. (3) Includes other cash distributions consisting of: (i) distributions paid to holders of OP Units in the Operating Partnership; 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 13” 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 years ended December 31, 2021, 2020 and 2019. Our board of directors may modify, suspend or terminate our current share redemption programs if it deems such action to be in the best interest of our stockholders. For the Year Ended December 31, (in thousands, except for per share data) 2021 2020 2019 Number of shares requested for redemption or repurchase 8,784 14,071 16,413 Number of shares redeemed or repurchased 8,784 14,071 16,413 % of shares requested that were redeemed or repurchased 100.0 % 100.0 % 100.0 % Average redemption or repurchase price per share $ 7.65 $ 7.50 $ 7.35 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Redeemable Noncontrolling Interest [Abstract] | |
Schedule of redeemable noncontrolling interest activity | The following table summarizes the redeemable noncontrolling interests activity for the years ended December 31, 2021 and 2020: For the Year Ended December 31, ($ in thousands) 2021 2020 Balance at beginning of year $ 3,798 $ - Settlement of prior year performance participation allocation (1) 4,608 3,776 Distributions to redeemable noncontrolling interests (418) (189) Net income (loss) attributable to redeemable noncontrolling interests 221 (54) Change from cash flow hedging activities attributable to redeemable noncontrolling interests 103 (45) Redemption value allocation adjustment to redeemable noncontrolling interests 682 310 Balance at end of year $ 8,994 $ 3,798 (1) 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. 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. |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interest Balances | The following table summarizes the number of OP Units issued and outstanding to third-party investors: As of December 31, (in thousands) 2021 2020 Number of OP Units issued and outstanding to third-party investors 28,295 13,486 Estimated maximum redemption value (unaudited) $ 228,254 $ 101,703 For the Year Ended December 31, (in thousands) 2021 2020 2019 Number of OP Units redeemed 776 1,070 196 Aggregate amount of OP Units redeemed $ 5,962 $ 8,032 $ 1,438 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related party Manager fees | The following table details the selling commissions, dealer manager fees and distribution fees applicable for each share class. Class T Class S Class D Class I Selling commissions (as % of transaction price) up to 3.00 % up to 3.50 % — % — % Dealer manager fees (as % of transaction price) 0.50 % — % — % — % Distribution fees (as % of NAV per annum) 0.85 % 0.85 % 0.25 % — % |
Schedule Of Fixed Components of the Advisory Fee | The following table details the fixed component of the advisory fee: Fixed Component % of applicable monthly NAV per Fund Interest (as defined below) x the weighted-average number of Fund Interests for such month (per annum) 1.10 % % of consideration received by us or our affiliates for selling interests in DST Properties (as defined in “Note 5”) to third-party investors, net of up-front fees and expense reimbursements payable out of gross sale proceeds from the sale of such interests 1.10 % |
Schedule Fees and Expenses to the Advisor and Its Affiliates | For the Year Ended December 31, Payable as of December 31, (in thousands) 2021 2020 2019 2021 2020 Selling commissions and dealer manager fees (1) $ 2,977 $ 1,498 $ 2,094 $ — $ — Ongoing distribution fees (1)(2) 2,974 2,024 1,387 394 188 Advisory fees - fixed component 21,433 17,211 13,637 2,094 1,547 Performance participation allocation 15,327 4,608 3,776 15,327 4,608 Other expense reimbursements— Advisor (3)(4) 11,070 10,002 10,601 1,443 2,112 Other expense reimbursements—Dealer Manager 376 516 1,408 — — DST Program selling commissions, dealer manager and distribution fees (1) 9,871 4,097 3,119 219 — Other DST Program related costs—Advisor (3) 6,229 4,085 2,988 87 — Total $ 70,257 $ 44,041 $ 39,010 $ 19,564 $ 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 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 $34.1 million and $15.5 million as of December 31, 2021 and 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) | 12 Months Ended |
Dec. 31, 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 Year Ended December 31, (in thousands, except per share data) 2021 2020 2019 Net income (loss) attributable to common stockholders—basic $ 30,754 $ (14,914) $ 142,551 Net income (loss) attributable to redeemable OP Units 221 (54) — Net income (loss) attributable to OP Units 3,565 (1,091) 10,726 Net income (loss) attributable to common stockholders—diluted $ 34,540 $ (16,059) $ 153,277 Weighted-average shares outstanding—basic 154,767 142,268 136,925 Incremental weighted-average shares effect of conversion of OP Units 19,563 11,784 10,391 Weighted-average shares outstanding—diluted 174,330 154,052 147,316 Net income (loss) per share attributable to common stockholders: Basic $ 0.20 $ (0.10) $ 1.04 Diluted $ 0.20 $ (0.10) $ 1.04 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Cash Flow Non-Cash Investing and Financing Activities | Supplemental cash flow information and disclosure of non-cash investing and financing activities is as follows: For the Year Ended December 31, (in thousands) 2021 2020 2019 Cash paid for interest $ 55,069 $ 46,417 $ 39,515 Distributions reinvested in common stock 23,197 21,278 20,595 Change in accrued future ongoing distribution fees 18,576 1,019 6,540 Repayment of property-level loans upon disposition of real estate property — — 98,600 Increase in DST Program Loans receivable through DST Program capital raising 25,978 26,486 18,744 Redeemable noncontrolling interest issued as settlement of performance participation allocation 4,608 3,776 — Mortgage notes assumed on real estate acquisitions at fair value 125,887 13,472 — Issuances of OP Units for DST Interests 115,653 28,266 — |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table presents the components of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the consolidated statements of cash flows: For the Year Ended December 31, (in thousands) 2021 2020 2019 Beginning of period: Cash and cash equivalents $ 11,266 $ 97,772 $ 10,008 Restricted cash 10,468 10,010 7,030 Cash, cash equivalents and restricted cash $ 21,734 $ 107,782 $ 17,038 End of period: Cash and cash equivalents $ 10,605 $ 11,266 $ 97,772 Restricted cash 3,747 10,468 10,010 Cash, cash equivalents and restricted cash $ 14,352 $ 21,734 $ 107,782 |
SEGMENT FINANCIAL INFORMATION (
SEGMENT FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Total Assets by Business Segment | The following table reflects our total consolidated assets by segment as of December 31, 2021 and 2020: As of (in thousands) December 31, 2021(1) December 31, 2020 Assets: Office properties $ 335,811 $ 487,193 Retail properties 639,584 685,116 Residential properties 837,491 365,195 Industrial properties 826,353 464,391 Corporate 351,732 109,665 Total assets $ 2,990,971 $ 2,111,560 (1) As of December 31, 2021, amounts held for sale are included in the corporate grouping. Refer to “Note 4” for further detail. |
Revenue and Components of Net Operating Income | The following table sets forth consolidated financial results by segment for the years ended December 31, 2021, 2020 and 2019: (in thousands) Office Retail Residential Industrial Consolidated 2021 Rental revenues $ 64,290 $ 72,102 $ 31,023 $ 41,761 $ 209,176 Rental expenses (28,280) (18,693) (13,387) (9,413) (69,773) Net operating income $ 36,010 $ 53,409 $ 17,636 $ 32,348 $ 139,403 Real estate-related depreciation and amortization $ 19,875 $ 19,485 $ 11,062 $ 23,993 $ 74,415 2020 Rental revenues $ 69,110 $ 71,244 $ 20,424 $ 23,467 $ 184,245 Rental expenses (30,355) (17,568) (9,448) (5,007) (62,378) Net operating income $ 38,755 $ 53,676 $ 10,976 $ 18,460 $ 121,867 Real estate-related depreciation and amortization $ 21,130 $ 19,795 $ 9,762 $ 12,236 $ 62,923 2019 Rental revenues $ 93,826 $ 70,462 $ 6,418 $ 13,735 $ 184,441 Rental expenses (37,905) (17,357) (2,864) (2,934) (61,060) Net operating income $ 55,921 $ 53,105 $ 3,554 $ 10,801 $ 123,381 Real estate-related depreciation and amortization $ 26,194 $ 20,317 $ 4,028 $ 6,803 $ 57,342 |
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 years ended December 31, 2021, 2020 and 2019. For the Year Ended December 31, (in thousands) 2021 2020 2019 Net income (loss) attributable to common stockholders $ 30,754 $ (14,914) $ 142,551 Debt-related income (9,174) (2,347) (227) Real estate-related depreciation and amortization 74,415 62,923 57,342 General and administrative expenses 8,797 7,548 7,894 Advisory fees, related party 21,433 17,211 13,637 Performance participation allocation 15,327 4,608 3,776 Acquisition costs and reimbursements 2,636 1,108 1,091 Litigation expense — 2,500 — Impairment of real estate property 758 — 113 Equity in income from unconsolidated joint venture partnerships (114) — — Other income (1,852) (1,037) (153) Interest expense 70,494 58,747 48,170 Gain on sale of real estate property (77,857) (13,335) (160,537) Gain on extinguishment of debt and financing commitments, net — — (1,002) Net income (loss) attributable to redeemable noncontrolling interests 221 (54) — Net income (loss) attributable to noncontrolling interests 3,565 (1,091) 10,726 Net operating income $ 139,403 $ 121,867 $ 123,381 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) - 12 months ended Dec. 31, 2021 | segmentproperty | building |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of real estate properties | 67 | 127 |
Number of reportable segments | 4 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Write-offs of unamortized intangible leases | $ 900 | $ 2,600 | $ 2,000 |
Impairment charges | 758 | 0 | 113 |
Impairment losses recorded related to investment | 0 | ||
Accumulated amortization of deferred financing costs | 13,000 | 13,900 | |
Amortization of financing costs | 13,600 | 10,000 | $ 6,900 |
Straight-line rent and tenant receivables, allowance for doubtful accounts | $ 600 | $ 1,100 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Depreciation and Amortization Computed on Straight-Line Basis over Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (in years) | 20 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (in years) | 40 years |
Building and Land Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (in years) | 10 years |
Building and Land Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life (in years) | 40 years |
INVESTMENTS IN REAL ESTATE PR_3
INVESTMENTS IN REAL ESTATE PROPERTIES (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)property | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Dec. 31, 2021building | |
Real Estate Properties [Line Items] | ||||
Number of real estate properties | 67 | 127 | ||
Proceeds from disposition of real estate property | $ 223,791 | $ 27,372 | $ 341,677 | |
Gain on sale of real estate property | 77,857 | 13,335 | 160,537 | |
Impairment of Real Estate | $ 758 | $ 0 | 113 | |
Intangible lease assets | ||||
Real Estate Properties [Line Items] | ||||
Weighted-average amortization period of acquired finite-lived intangible assets | 7 years 8 months 12 days | 9 years 2 months 12 days | ||
Office properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | building | 9 | |||
Retail properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | building | 45 | |||
Retail properties | Retail Property, Holbrook, Massachusetts | ||||
Real Estate Properties [Line Items] | ||||
Impairment of Real Estate | $ 100 | |||
Industrial properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | building | 40 | |||
Disposed of by Sale | Office properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 2 | |||
Disposed of by Sale | Retail properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 3 | 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 | Retail outparcel | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 1 | |||
Disposed of by Sale | Industrial properties | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | property | 1 |
INVESTMENTS IN REAL ESTATE PR_4
INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Consolidated Investments in Real Estate Properties) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate [Abstract] | ||||
Land | $ 583,728 | $ 476,442 | ||
Buildings and improvements | 2,180,358 | 1,689,474 | ||
Intangible lease assets | 284,128 | 289,762 | ||
Right of use asset | $ 13,637 | |||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Net investment in real estate properties | |||
Investment in real estate properties | $ 3,061,851 | 2,455,678 | ||
Accumulated depreciation and amortization | (472,025) | (501,105) | $ (444,718) | $ (501,621) |
Net investment in real estate properties | $ 2,589,826 | $ 1,954,573 |
INVESTMENTS IN REAL ESTATE PR_5
INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Asset Acquisitions) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Asset Acquisition [Line Items] | ||
Percentage of assets acquired | 100.00% | |
Right of use asset | $ 13,637 | |
Lease liability | $ 4,440 | |
oLiv Tucson | ||
Asset Acquisition [Line Items] | ||
Percentage of voting interest | 97.50% | |
Lessee, Finance Lease, Remaining Lease Term | 97 years | |
Lessee, Finance Lease, Renewal Term | 25 years | |
Lessee, Finance Lease, Number Of Term Extensions | item | 4 | |
Right of use asset | $ 13,600 | |
Lease liability | 4,400 | |
Village at Lee Branch | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | $ 41,665 | |
Railhead DC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 19,295 | |
Debt assumed at fair value | 9,800 | |
Debt instrument, principal amount | 9,200 | |
Campus Drive IC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 6,652 | |
Long Island Logistics Center | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 20,001 | |
Phoenix IC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 17,604 | |
Tempe IC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 28,347 | |
Las Vegas IC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 8,809 | |
oLiv Tucson | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 124,219 | |
Arabelle Clearwater | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 116,352 | |
Arabelle Riverwalk | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 234,050 | |
Debt assumed at fair value | 125,900 | |
Debt instrument, principal amount | 117,100 | |
Asset Acquisition | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 904,698 | 377,591 |
Tri-County DC II B | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 2,884 | |
Sterling IC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 5,118 | |
Clayton Commerce Center | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 59,289 | |
Bay Area Commerce Center | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 48,807 | |
Air Tech DC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 18,709 | |
Debt assumed at fair value | 3,600 | |
Debt instrument, principal amount | 3,400 | |
East Columbia IC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 14,914 | |
Plainfield LC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 19,428 | |
395 LC | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 68,270 | |
The Palms | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | $ 79,212 | |
Radar Distribution Center | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 49,168 | |
Intermountain Space Center | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 61,057 | |
Airway Logistics | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 24,356 | |
Greenwood Business Center | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 16,888 | |
25 Linden Industrial Center | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 17,146 | |
Little Orchard Business Park | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 96,559 | |
Tustin Business Center | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | 33,285 | |
Barrow Crossing | ||
Asset Acquisition [Line Items] | ||
Total acquisitions | $ 50,205 |
INVESTMENTS IN REAL ESTATE PR_6
INVESTMENTS IN REAL ESTATE PROPERTIES (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Land | $ 166,310 | $ 64,517 |
Building | 703,597 | 287,762 |
Intangible lease assets | 39,270 | 26,144 |
Above-market lease assets | 1,392 | 2,102 |
Right of use asset | 13,637 | |
Lease liability | (4,440) | |
Below-market lease liabilities | (15,068) | (2,934) |
Total purchase price | 904,698 | 377,591 |
Asset Acquisition Recognized Identifiable Assets Acquired And Liabilities Assumed, Net | $ 904,698 | $ 377,591 |
INVESTMENTS IN REAL ESTATE PR_7
INVESTMENTS IN REAL ESTATE PROPERTIES (Intangible Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Assets | $ 284,128 | $ 289,762 |
Gross, Liabilities | (80,206) | (79,891) |
Accumulated Amortization, Liabilities | 32,707 | 39,434 |
Net, Liabilities | (47,499) | (40,457) |
Intangible lease assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Assets | 261,401 | 266,242 |
Accumulated Amortization, Assets | (186,820) | (214,055) |
Net, Assets | 74,581 | 52,187 |
Above-market lease assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Assets | 22,727 | 23,520 |
Accumulated Amortization, Assets | (19,507) | (21,216) |
Net, Assets | $ 3,220 | $ 2,304 |
INVESTMENTS IN REAL ESTATE PR_8
INVESTMENTS IN REAL ESTATE PROPERTIES (Estimated Net Amortization of Intangible Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Real Estate Properties [Line Items] | ||
2021 | $ (4,153) | |
2022 | (3,982) | |
2023 | (3,619) | |
2024 | (3,441) | |
2025 | (3,199) | |
Thereafter | (29,105) | |
Net, Liabilities | (47,499) | $ (40,457) |
Intangible lease assets | ||
Real Estate Properties [Line Items] | ||
2022 | 20,877 | |
2023 | 13,465 | |
2024 | 10,269 | |
2025 | 8,575 | |
2026 | 6,854 | |
Thereafter | 14,541 | |
Net, Assets | 74,581 | 52,187 |
Above-market lease assets | ||
Real Estate Properties [Line Items] | ||
2022 | 565 | |
2023 | 553 | |
2024 | 525 | |
2025 | 415 | |
2026 | 352 | |
Thereafter | 810 | |
Net, Assets | $ 3,220 | $ 2,304 |
INVESTMENTS IN REAL ESTATE PR_9
INVESTMENTS IN REAL ESTATE PROPERTIES (Schedule of Adjustments to Rental Revenue Related to Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Straight-line rent adjustments | $ (5,849) | $ (5,539) | $ (7,776) |
Depreciation expense | 59,766 | 47,629 | 40,824 |
Intangible lease asset amortization | 14,649 | 15,294 | 16,518 |
Early lease termination revenue | 2,500 | 0 | 6,100 |
Above-market lease assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above and below Market Leases | (469) | (357) | (792) |
Below-market lease | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above and below Market Leases | $ 3,559 | $ 3,521 | $ 4,042 |
INVESTMENTS IN REAL ESTATE P_10
INVESTMENTS IN REAL ESTATE PROPERTIES (Future Minimum Rental Receivable Under Non Cancelable Operating and Ground Leases) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Real Estate [Abstract] | |
Year 1 | $ 128,671 |
Year 2 | 119,272 |
Year 3 | 103,502 |
Year 4 | 90,453 |
Year 5 | 74,651 |
Thereafter | 233,682 |
Total | $ 750,231 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) $ in Thousands | Dec. 31, 2021USD ($)Officeproperty | Dec. 31, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 105,096 | $ 0 |
Liabilities related to assets held for sale | $ 5,744 | $ 0 |
Bandera Road | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of properties | property | 1 | |
1st Avenue Plaza | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of properties | Office | 1 | |
Assets Held for Sale. | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net investment in real estate properties | $ 101,690 | |
Other Assets | 3,406 | |
Assets held for sale | 105,096 | |
Accounts payable and accrued expenses | 3,172 | |
Intangible lease liabilities, net | 995 | |
Other liabilities | 1,577 | |
Liabilities related to assets held for sale | $ 5,744 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURE PARTNERSHIPS (Details) $ in Thousands | Dec. 21, 2021property | Nov. 30, 2021item | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture partnerships | item | 2 | ||||
Investment in unconsolidated joint venture partnerships | $ 57,425 | $ 0 | |||
Equity in income from unconsolidated joint venture partnerships | $ 114 | $ 0 | $ 0 | ||
Vue 1400 JV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 85.00% | ||||
Investment in unconsolidated joint venture partnerships | $ 26,117 | ||||
Vue 1400 JV | Vue 1400 JV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number Of Units | property | 316 | ||||
Net Lease JV I | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Investment in unconsolidated joint venture partnerships | $ 16,267 | ||||
Net Lease JV II | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Investment in unconsolidated joint venture partnerships | $ 15,041 |
DEBT (Schedule of Debt) (Detail
DEBT (Schedule of Debt) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Number of Partial Recourse Mortgage Notes | loan | 2 | |
Weighted-Average Effective Interest Rate as of | 2.78% | 3.04% |
Total borrowings | $ 1,370,554 | $ 968,544 |
Less: unamortized debt issuance costs | (16,762) | (4,083) |
Add: mark-to-market adjustment on assumed debt | 9,442 | 844 |
Total debt, net | 1,363,234 | 965,305 |
Gross book value of properties encumbered by debt | $ 981,927 | $ 584,637 |
Weighted Average | ||
Debt Instrument [Line Items] | ||
Remaining debt term (in years) | 4 years 10 months 24 days | |
Partial Recourse 1 | Performance Guarantee | ||
Debt Instrument [Line Items] | ||
Current guarantor obligations | $ 16,300 | |
Partial Recourse 2 | Performance Guarantee | ||
Debt Instrument [Line Items] | ||
Current guarantor obligations | $ 300 | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 1.35% | 1.54% |
Total borrowings | $ 256,000 | $ 106,000 |
Current borrowing capacity | 444,000 | |
Available portions under the line of credit | $ 327,800 | |
Line of Credit | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.25% | 1.25% |
Line of Credit | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.00% | 2.00% |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 525,000 | |
Term Loan (Maturity Date November 2026) | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.16% | 3.27% |
Total borrowings | $ 325,000 | $ 325,000 |
Maximum borrowing capacity | 400,000 | |
Current borrowing capacity | $ 75,000 | |
Term Loan (Maturity Date November 2026) | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.20% | 1.20% |
Term Loan (Maturity Date November 2026) | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.90% | 1.90% |
Term Loan (Maturity Date November 2026) | Interest rate swaps | ||
Debt Instrument [Line Items] | ||
Amount of hedged item | $ 300,000 | |
Term Loan (Maturity Date January 2027) | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.19% | 3.29% |
Total borrowings | $ 200,000 | $ 200,000 |
Maximum borrowing capacity | 400,000 | |
Current borrowing capacity | $ 200,000 | |
Term Loan (Maturity Date January 2027) | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.20% | 1.20% |
Term Loan (Maturity Date January 2027) | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 1.90% | 1.90% |
Fixed-Rate Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 3.49% | 3.55% |
Total borrowings | $ 381,954 | $ 210,544 |
Floating-Rate Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Weighted-Average Effective Interest Rate as of | 2.26% | 2.50% |
Total borrowings | $ 207,600 | $ 127,000 |
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 | 1.55% | |
Floating-Rate Mortgage Notes | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings spread over LIBOR | 2.50% | 2.50% |
Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 589,554 |
DEBT (Summary of Borrowings Ref
DEBT (Summary of Borrowings Reflects Contractual Debt Maturities) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
2022 | $ 1,612 | |
2023 | 1,463 | |
2024 | 129,265 | |
2025 | 328,360 | |
2026 | 409,214 | |
Thereafter | 500,640 | |
Total principal payments | 1,370,554 | $ 968,544 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 256,000 | |
2026 | 0 | |
Thereafter | 0 | |
Total principal payments | $ 256,000 | 106,000 |
Term of extension | 6 months | |
Number of extension options | item | 2 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
2022 | $ 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 325,000 | |
Thereafter | 200,000 | |
Total principal payments | 525,000 | |
Mortgage Notes | ||
Debt Instrument [Line Items] | ||
2022 | 1,612 | |
2023 | 1,463 | |
2024 | 129,265 | |
2025 | 72,360 | |
2026 | 84,214 | |
Thereafter | 300,640 | |
Total principal payments | 589,554 | |
Floating-Rate Mortgage Notes | ||
Debt Instrument [Line Items] | ||
Total principal payments | $ 207,600 | $ 127,000 |
DEBT (Summary of Location and F
DEBT (Summary of Location and Fair Value of Derivative Instruments) (Details) $ in Thousands | Dec. 31, 2021USD ($)contract | Dec. 31, 2020USD ($)contract |
Derivatives, Fair Value [Line Items] | ||
Number of derivative contracts | contract | 15 | 15 |
Total notional amount | $ 707,600 | $ 676,849 |
Estimated increase to interest expense related to active effective hedges of floating rate debt | (5,400) | |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 323 | |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 11,236 | $ 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 Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 164 | |
Interest rate swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 11,236 | $ 26,916 |
Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative contracts | contract | 2 | 1 |
Total notional amount | $ 207,600 | $ 127,000 |
Interest rate caps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 159 | 0 |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded | $ 70,494 | $ 58,747 | $ 48,170 |
Designated Hedges | |||
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 | 70,494 | 58,747 | 48,170 |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income | 71 | (13) | (25) |
Cash Flow Hedging | Designated Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | 5,616 | (21,589) | (13,341) |
Amount reclassified from AOCI into interest expense | $ 10,281 | $ 7,747 | (1,600) |
Gain reclassified from AOCI due to hedged transactions becoming probable of not occurring | $ (1,374) |
DST PROGRAM (Details)
DST PROGRAM (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
DST Program Loans | $ 62,123 | $ 45,229 | |
Rent Obligations | 69,773 | 62,378 | $ 61,060 |
Issuances of OP Units for DST Interests | 107,480 | 28,266 | |
DST Program | |||
Variable Interest Entity [Line Items] | |||
DST Program Loans | 62,100 | 45,200 | |
Proceeds from private placement | 292,700 | 278,200 | 212,700 |
DST interest sold that were financed during period | 26,000 | 26,500 | 18,700 |
Rent Obligations | 28,400 | 19,400 | $ 7,000 |
Issuances of OP Units for DST Interests | $ 115,700 | $ 28,300 | |
DST Program | OP Units | |||
Variable Interest Entity [Line Items] | |||
Issuance of OP Units (in shares) | 15 | 3.8 |
FAIR VALUE (Measured on Recurri
FAIR VALUE (Measured on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Derivative instruments | $ 323 | $ 0 |
Total assets measured at fair value | 323 | 0 |
Liabilities: | ||
Derivative instruments | 11,236 | 26,916 |
Total liabilities measured at fair value | 11,236 | 26,916 |
Level 1 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Derivative instruments | 323 | 0 |
Total assets measured at fair value | 323 | 0 |
Liabilities: | ||
Derivative instruments | 11,236 | 26,916 |
Total liabilities measured at fair value | 11,236 | 26,916 |
Level 3 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities measured at fair value | $ 0 | $ 0 |
FAIR VALUE (Measured on Nonrecu
FAIR VALUE (Measured on Nonrecurring Basis) (Details) - Level 3 - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Debt-related investments | $ 106,463 | $ 49,885 |
DST Program Loans | 62,123 | 45,229 |
Line of credit | 256,000 | 106,000 |
Term loans | 525,000 | 525,000 |
Mortgage notes | 589,554 | 337,544 |
Estimated Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Debt-related investments | 106,463 | 49,584 |
DST Program Loans | 62,123 | 45,229 |
Line of credit | 256,000 | 105,592 |
Term loans | 525,000 | 521,945 |
Mortgage notes | $ 600,467 | $ 336,336 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | |||
Impact on uncertain tax positions from results of operations | $ 0 | $ 0 | $ 0 |
Deferred Tax Assets, Net | $ 1,200 | $ 1,600 |
INCOME TAXES (Preliminary Taxab
INCOME TAXES (Preliminary Taxability of Distributions on Common Shares) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Ordinary income | 13.62% | 3.28% | 22.78% |
Non-taxable return of capital | 61.37% | 12.34% | 61.01% |
Capital gain | 25.01% | 84.38% | 16.21% |
Total distributions | 100.00% | 100.00% | 100.00% |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Stockholders Equity Note Disclosure [Line Items] | |
Registration offering amount | $ 3,000 |
Common Class T, Common Class S, Common Class D and Common Class I | |
Stockholders Equity Note Disclosure [Line Items] | |
Amount of registration statement remaining unsold | 2,380 |
Primary offering | |
Stockholders Equity Note Disclosure [Line Items] | |
Amount of registration statement offering | 2,500 |
DRIP Offering | |
Stockholders Equity Note Disclosure [Line Items] | |
Amount of DRIP offering | 500 |
DRIP Offering | Class E | |
Stockholders Equity Note Disclosure [Line Items] | |
Amount of registration statement remaining unsold | $ 84.2 |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Public Offerings) (Details) shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 274,724 |
Number of shares sold | shares | 35,379 |
Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 58,157 |
Number of shares sold | shares | 6,860 |
Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 102,125 |
Number of shares sold | shares | 13,157 |
Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 22,226 |
Number of shares sold | shares | 2,899 |
Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 85,253 |
Number of shares sold | shares | 11,553 |
Class E | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 6,963 |
Number of shares sold | shares | 910 |
Primary offering | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 251,527 |
Number of shares sold | shares | 32,351 |
Primary offering | Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 56,107 |
Number of shares sold | shares | 6,593 |
Primary offering | Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 97,389 |
Number of shares sold | shares | 12,539 |
Primary offering | Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 21,299 |
Number of shares sold | shares | 2,778 |
Primary offering | Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 76,732 |
Number of shares sold | shares | 10,441 |
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 | $ | $ 23,197 |
Number of shares sold | shares | 3,028 |
DRIP Offering | Class T | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 2,050 |
Number of shares sold | shares | 267 |
DRIP Offering | Class S | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 4,736 |
Number of shares sold | shares | 618 |
DRIP Offering | Class D | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 927 |
Number of shares sold | shares | 121 |
DRIP Offering | Class I | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 8,521 |
Number of shares sold | shares | 1,112 |
DRIP Offering | Class E | |
Subsidiary, Sale of Stock [Line Items] | |
Amount of gross proceeds raised | $ | $ 6,963 |
Number of shares sold | shares | 910 |
STOCKHOLDERS' EQUITY (Informati
STOCKHOLDERS' EQUITY (Information of Share Transactions) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Redemptions of common stock (in shares) | (8,784) | (14,071) | (16,413) |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 143,041 | 140,480 | 130,852 |
Primary shares (in shares) | 32,351 | 13,772 | 23,155 |
Distribution reinvestment plan (in shares) | 3,028 | 2,840 | 2,800 |
Share-based compensation (in shares) | 29 | 20 | 86 |
Redemptions of common stock (in shares) | (8,784) | (14,071) | (16,413) |
Ending Balances (in shares) | 169,665 | 143,041 | 140,480 |
Class T | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 9,831 | ||
Ending Balances (in shares) | 16,425 | 9,831 | |
Class T | Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 9,831 | 5,852 | 2,783 |
Primary shares (in shares) | 6,593 | 4,006 | 3,298 |
Distribution reinvestment plan (in shares) | 267 | 187 | 88 |
Share-based compensation (in shares) | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (266) | (214) | (317) |
Ending Balances (in shares) | 16,425 | 9,831 | 5,852 |
Class S | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 23,516 | ||
Ending Balances (in shares) | 35,757 | 23,516 | |
Class S | Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 23,516 | 20,593 | 10,516 |
Primary shares (in shares) | 12,539 | 4,507 | 10,926 |
Distribution reinvestment plan (in shares) | 618 | 476 | 366 |
Share-based compensation (in shares) | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (916) | (2,060) | (1,215) |
Ending Balances (in shares) | 35,757 | 23,516 | 20,593 |
Class D | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 4,098 | ||
Ending Balances (in shares) | 6,749 | 4,098 | |
Class D | Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 4,098 | 3,499 | 2,778 |
Primary shares (in shares) | 2,778 | 728 | 1,050 |
Distribution reinvestment plan (in shares) | 121 | 91 | 80 |
Share-based compensation (in shares) | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (248) | (220) | (409) |
Ending Balances (in shares) | 6,749 | 4,098 | 3,499 |
Class I | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 44,723 | ||
Ending Balances (in shares) | 54,406 | 44,723 | |
Class I | Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 44,723 | 43,732 | 37,385 |
Primary shares (in shares) | 10,441 | 4,531 | 7,881 |
Distribution reinvestment plan (in shares) | 1,112 | 1,065 | 1,069 |
Share-based compensation (in shares) | 29 | 20 | 86 |
Redemptions of common stock (in shares) | (1,899) | (4,625) | (2,689) |
Ending Balances (in shares) | 54,406 | 44,723 | 43,732 |
Class E | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 60,873 | ||
Ending Balances (in shares) | 56,328 | 60,873 | |
Class E | Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances (in shares) | 60,873 | 66,804 | 77,390 |
Primary shares (in shares) | 0 | 0 | 0 |
Distribution reinvestment plan (in shares) | 910 | 1,021 | 1,197 |
Share-based compensation (in shares) | 0 | 0 | 0 |
Redemptions of common stock (in shares) | (5,455) | (6,952) | (11,783) |
Ending Balances (in shares) | 56,328 | 60,873 | 66,804 |
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 | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 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 | $ 0.09375 | $ 0.37500 | $ 0.37500 |
Common Stock Distributions Paid in Cash | $ 8,265 | $ 7,984 | $ 7,696 | $ 7,562 | $ 7,464 | $ 7,482 | $ 7,539 | $ 7,533 | $ 31,507 | $ 30,018 |
Other Cash Distributions | 3,331 | 2,613 | 2,266 | 2,010 | 1,750 | 1,592 | 1,611 | 1,499 | 10,220 | 6,452 |
Reinvested in Shares | 6,361 | 5,985 | 5,723 | 5,526 | 5,347 | 5,282 | 5,316 | 5,360 | 23,595 | 21,305 |
Total Distributions | $ 17,957 | $ 16,582 | $ 15,685 | $ 15,098 | $ 14,561 | $ 14,356 | $ 14,466 | $ 14,392 | $ 65,322 | $ 57,775 |
STOCKHOLDERS' EQUITY (Redemptio
STOCKHOLDERS' EQUITY (Redemptions and Repurchases Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Number of shares requested for redemption or repurchase (in shares) | 8,784 | 14,071 | 16,413 |
Number of shares redeemed or repurchased (in shares) | 8,784 | 14,071 | 16,413 |
% of shares requested that were redeemed or repurchased | 100.00% | 100.00% | 100.00% |
Average redemption or repurchase price per share (usd per share) | $ 7.65 | $ 7.50 | $ 7.35 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS (Schedule of redeemable noncontrolling interest activity) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Redeemable Noncontrolling Interest [Line Items] | ||||
Beginning balance | $ 3,798 | $ 3,798 | ||
Settlement of prior year performance participation allocation | $ 4,600 | 4,608 | $ 3,776 | $ 3,800 |
Distributions declared on redeemable noncontrolling interests | (418) | (189) | ||
Net income (loss) attributable to redeemable noncontrolling interests | 221 | (54) | 0 | |
Change from cash flow hedging activities attributable to redeemable noncontrolling interests | 103 | (45) | ||
Redemption value allocation adjustment to redeemable noncontrolling interests | 682 | 310 | ||
Due to Related Parties | 19,564 | 8,455 | ||
Ending balance | $ 8,994 | 3,798 | ||
Black Creek Diversified Property Advisors, LLC | Performance Participation Allocation | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Due to Related Parties | $ 4,600 | $ 3,800 |
NONCONTROLLING INTERESTS (Narra
NONCONTROLLING INTERESTS (Narrative) (Details) - OP Units - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Noncontrolling Interest [Line Items] | ||
Redemption Of Operating Partnership Units, Number Of Common Stock Issued Per Operating Partnership Unit | 1 | |
Operating Partnership | Third Party Investors [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage owned by third-party investors | 14.30% | 8.60% |
NONCONTROLLING INTERESTS (Summa
NONCONTROLLING INTERESTS (Summary of Balances) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | |||
Number of OP Units redeemed | 8,784 | 14,071 | 16,413 |
Aggregate amount of OP Units redeemed | $ 67,234 | $ 105,588 | $ 120,580 |
OP Units | |||
Noncontrolling Interest [Line Items] | |||
Number of OP Units issued to third-party investors (in shares) | 28,295 | 13,486 | |
Number of OP Units outstanding to third-party investors (in shares) | 28,295 | 13,486 | |
Estimated maximum redemption value (unaudited) | $ 228,254 | $ 101,703 | |
Number of OP Units redeemed | 776 | 1,070 | 196 |
Aggregate amount of OP Units redeemed | $ 5,962 | $ 8,032 | $ 1,438 |
RELATED PARTY TRANSACTIONS - (S
RELATED PARTY TRANSACTIONS - (Selling Commissions, Dealer Manager Fees and Distribution Fees) (Details) - Advisor - Selling commissions and dealer manager fees | 12 Months Ended |
Dec. 31, 2021 | |
Class T | |
Related Party Transaction [Line Items] | |
Dealer manager fees (as % of transaction price) | 0.50% |
Distribution fees (as % of NAV per annum) | 0.85% |
Class T | Maximum | |
Related Party Transaction [Line Items] | |
Selling commissions (as % of transaction price) | 3.00% |
Class S | |
Related Party Transaction [Line Items] | |
Dealer manager fees (as % of transaction price) | 0.00% |
Distribution fees (as % of NAV per annum) | 0.85% |
Class S | Maximum | |
Related Party Transaction [Line Items] | |
Selling commissions (as % of transaction price) | 3.50% |
Class D | |
Related Party Transaction [Line Items] | |
Selling commissions (as % of transaction price) | 0.00% |
Dealer manager fees (as % of transaction price) | 0.00% |
Distribution fees (as % of NAV per annum) | 0.25% |
Class I | |
Related Party Transaction [Line Items] | |
Selling commissions (as % of transaction price) | 0.00% |
Dealer manager fees (as % of transaction price) | 0.00% |
Distribution fees (as % of NAV per annum) | 0.00% |
RELATED PARTY TRANSACTIONS - (A
RELATED PARTY TRANSACTIONS - (Advisory Fee) (Details) - USD ($) | Jan. 01, 2019 | Dec. 31, 2021 |
Affiliated Entity | AIREIT Operating Partnership LP [Member] | ||
Related Party Transaction [Line Items] | ||
Consideration received | $ 1,000 | |
Number of shares issued (in shares) | 100 | |
Affiliated Entity | Advisory Fees | ||
Related Party Transaction [Line Items] | ||
Class E Dealer Manager Fee Portion Waived Under NAV Per Share Threshold | $ 10 | |
Advisor | ||
Related Party Transaction [Line Items] | ||
Advisory Agreement Contract Renewal Term | 1 year | |
Advisor | Advisory Fees | ||
Related Party Transaction [Line Items] | ||
% of applicable monthly NAV per Fund Interest (as defined below) x the weighted-average number of Fund Interests for such month (per annum) | 1.10% | |
% of consideration received by us or our affiliates for selling interests in DST Properties (as defined in "Note 5") to third-party investors, net of up-front fees and expense reimbursements payable out of gross sale proceeds from the sale of such interests | 1.10% | |
Threshold for performance component of advisory fee | 12.50% | |
Threshold of annual total return as % of NAV | 5.00% | |
Performance component earned for excess return over the hurdle amount | 100.00% | |
Maximum performance component limited to % of total annual return | 12.50% | |
Loss carryforward | $ 0 |
RELATED PARTY TRANSACTIONS - (D
RELATED PARTY TRANSACTIONS - (DST Program & Summary of Fees and Expenses Incurred by Company) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Related party transaction expense | $ 70,257 | $ 44,041 | $ 39,010 | |
Payable as of | 19,564 | 8,455 | ||
Advisor | ||||
Related Party Transaction [Line Items] | ||||
Amount reimbursed for services | $ 9,800 | 8,000 | 8,500 | |
Dealer Manager | ||||
Related Party Transaction [Line Items] | ||||
Maximum primary dealer fee as percentage of gross proceeds from sale of class I shares | 5.00% | |||
Selling commissions and dealer manager fees | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Distribution fees threshold to cease payment | 8.75% | |||
Related party transaction expense | $ 2,977 | 1,498 | 2,094 | |
Payable as of | 0 | 0 | ||
Ongoing Distribution Fees [Member] | Dealer Manager | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expense | 2,974 | 2,024 | 1,387 | |
Payable as of | 394 | 188 | ||
Ongoing Distribution Fees [Member] | Dealer Manager | Other Liabilities | ||||
Related Party Transaction [Line Items] | ||||
Future Estimated Distribution Fees Payable | 34,100 | 15,500 | ||
Advisory Fees | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expense | 21,433 | 17,211 | 13,637 | |
Payable as of | 2,094 | 1,547 | ||
Performance Participation Allocation | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expense | 15,327 | 4,608 | 3,776 | |
Payable as of | 15,327 | 4,608 | ||
Other Expense Reimbursements [Member] | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expense | 11,070 | 10,002 | 10,601 | |
Payable as of | 1,443 | 2,112 | ||
Other Expense Reimbursements [Member] | Dealer Manager | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expense | 376 | 516 | 1,408 | |
Payable as of | $ 0 | 0 | ||
DST Program Manager Fees | ||||
Related Party Transaction [Line Items] | ||||
Percent of interests intended to be sold to third parties | 100.00% | |||
DST Program Manager Fees | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Maximum percentage of purchase price paid by investor | 50.00% | |||
Percentage of origination fee | 1.00% | |||
DST Program Manager Fees | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expense | $ 6,229 | 4,085 | 2,988 | |
Payable as of | $ 87 | 0 | ||
DST Program Manager Fees | DST Manager | DST Manager | ||||
Related Party Transaction [Line Items] | ||||
Redemption fee, payable to manager | 1.00% | |||
DST Program Manager Fees | DST Manager | DST Advisor | ||||
Related Party Transaction [Line Items] | ||||
Management Compensation Fee Receivable, Percent Of Gross Rents | 1.00% | |||
Management fee, percent of equity proceeds | 1.00% | |||
Management loan fee, percent of financing arranged | 1.00% | |||
DST Program dealer manager fees | Affiliated Entity | Dealer Manager | Ares Diversified Real Estate Exchange LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of interests placed with dealer | $ 1,000,000 | |||
DST Program dealer manager fees | Dealer Manager | ||||
Related Party Transaction [Line Items] | ||||
Private placement, dealer fee, percent of gross equity proceeds | 1.50% | |||
Related party transaction expense | $ 9,871 | 4,097 | $ 3,119 | |
Payable as of | $ 219 | $ 0 | ||
DST Program dealer manager fees | Dealer Manager | Ares Diversified Real Estate Exchange LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Private placement, dealer fee, percent of gross equity proceeds | 1.50% | |||
Percent of gross equity proceeds | 5.00% | |||
Ongoing dealer manager fees associated with private placement offering | 0.85% | |||
Organization And Offering Expenses [Member] | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Threshold criteria of organization and offering expenses | 15.00% |
RELATED PARTY TRANSACTIONS - (T
RELATED PARTY TRANSACTIONS - (Transactions with Affiliates) (Details) - Operating Partnership - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
General Partner [Member] | ||
Related Party Transaction [Line Items] | ||
General Partners' Contributed Capital | $ 2 | |
OP Units held by general partner | 200 | |
Limited Partner [Member] | ||
Related Party Transaction [Line Items] | ||
Contributed of gross proceeds of common stock to the operating partnership | 100.00% | |
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 85.70% | 91.40% |
NET INCOME (LOSS) PER COMMON _3
NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to common stockholders - basic | $ 30,754 | $ (14,914) | $ 142,551 |
Net income (loss) attributable to redeemable OP Units | 221 | (54) | 0 |
Net income (loss) attributable to OP Units | 3,565 | (1,091) | 10,726 |
Net income (loss) attributable to common stockholders - diluted | $ 34,540 | $ (16,059) | $ 153,277 |
Weighted-average shares outstanding-basic | 154,767 | 142,268 | 136,925 |
Incremental weighted-average shares effect of conversion of OP Units (in shares) | 19,563 | 11,784 | 10,391 |
Weighted-average shares outstanding - diluted (in shares) | 174,330 | 154,052 | 147,316 |
Basic | $ 0.20 | $ (0.10) | $ 1.04 |
Diluted | $ 0.20 | $ (0.10) | $ 1.04 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncash Investing and Financing Items [Abstract] | ||||
Cash paid for interest | $ 55,069 | $ 46,417 | $ 39,515 | |
Distributions reinvested in common stock | 23,197 | 21,278 | 20,595 | |
Change in accrued future ongoing distribution fees | 18,576 | 1,019 | 6,540 | |
Repayment of property-level loans upon disposition of real estate property | 0 | 0 | 98,600 | |
Increase in DST Program Loans receivable through DST Program capital raising | 25,978 | 26,486 | 18,744 | |
Redeemable noncontrolling interest issued as settlement of performance participation allocation | 4,608 | 3,776 | 0 | |
Mortgage notes assumed on real estate acquisitions at fair value | 125,887 | 13,472 | 0 | |
Issuances of OP Units for DST Interests | 115,653 | 28,266 | 0 | |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | 10,605 | 11,266 | 97,772 | $ 10,008 |
Restricted cash | 3,747 | 10,468 | 10,010 | 7,030 |
Cash, cash equivalents and restricted cash | $ 14,352 | $ 21,734 | $ 107,782 | $ 17,038 |
SEGMENT FINANCIAL INFORMATION_2
SEGMENT FINANCIAL INFORMATION (Schedule of Total Assets by Business Segment) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Number of reportable segments | segment | 4 | |
Total Assets | $ 2,990,971 | $ 2,111,560 |
Operating Segments | Office | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 335,811 | 487,193 |
Operating Segments | Retail | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 639,584 | 685,116 |
Operating Segments | Residential | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 837,491 | 365,195 |
Operating Segments | Industrial | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | 826,353 | 464,391 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 351,732 | $ 109,665 |
SEGMENT FINANCIAL INFORMATION_3
SEGMENT FINANCIAL INFORMATION (Revenue and Components of Net Operating Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Rental revenues | $ 209,176 | $ 184,245 | $ 184,441 |
Rental expenses | (69,773) | (62,378) | (61,060) |
Net operating income | 139,403 | 121,867 | 123,381 |
Real estate-related depreciation and amortization | 74,415 | 62,923 | 57,342 |
Operating Segments | Office | |||
Segment Reporting Information [Line Items] | |||
Rental revenues | 64,290 | 69,110 | 93,826 |
Rental expenses | (28,280) | (30,355) | (37,905) |
Net operating income | 36,010 | 38,755 | 55,921 |
Real estate-related depreciation and amortization | 19,875 | 21,130 | 26,194 |
Operating Segments | Retail | |||
Segment Reporting Information [Line Items] | |||
Rental revenues | 72,102 | 71,244 | 70,462 |
Rental expenses | (18,693) | (17,568) | (17,357) |
Net operating income | 53,409 | 53,676 | 53,105 |
Real estate-related depreciation and amortization | 19,485 | 19,795 | 20,317 |
Operating Segments | Residential | |||
Segment Reporting Information [Line Items] | |||
Rental revenues | 31,023 | 20,424 | 6,418 |
Rental expenses | (13,387) | (9,448) | (2,864) |
Net operating income | 17,636 | 10,976 | 3,554 |
Real estate-related depreciation and amortization | 11,062 | 9,762 | 4,028 |
Operating Segments | Industrial | |||
Segment Reporting Information [Line Items] | |||
Rental revenues | 41,761 | 23,467 | 13,735 |
Rental expenses | (9,413) | (5,007) | (2,934) |
Net operating income | 32,348 | 18,460 | 10,801 |
Real estate-related depreciation and amortization | $ 23,993 | $ 12,236 | $ 6,803 |
SEGMENT FINANCIAL INFORMATION_4
SEGMENT FINANCIAL INFORMATION (Reconciliation of Net Operating Income to Reported Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of net operating income attributable to common shareholders | |||
Net income (loss) attributable to common stockholders | $ 30,754 | $ (14,914) | $ 142,551 |
Debt-related income | (9,174) | (2,347) | (227) |
Real estate-related depreciation and amortization | 74,415 | 62,923 | 57,342 |
General and administrative expenses | 8,797 | 7,548 | 7,894 |
Advisory fees, related party | 21,433 | 17,211 | 13,637 |
Performance participation allocation | 15,327 | 4,608 | 3,776 |
Acquisition costs and reimbursements | 2,636 | 1,108 | 1,091 |
Litigation expense | 0 | 2,500 | 0 |
Impairment of real estate property | 758 | 0 | 113 |
Equity in income from unconsolidated joint venture partnerships | (114) | 0 | 0 |
Other income | (1,852) | (1,037) | (153) |
Interest expense | 70,494 | 58,747 | 48,170 |
Gain on sale of real estate property | (77,857) | (13,335) | (160,537) |
Gain on extinguishment of debt and financing commitments, net | 0 | 0 | (1,002) |
Net income (loss) attributable to redeemable noncontrolling interests | 221 | (54) | 0 |
Net income (loss) attributable to noncontrolling interests | 3,565 | (1,091) | 10,726 |
Net operating income | $ 139,403 | $ 121,867 | $ 123,381 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | 2 Months Ended | ||||
Mar. 11, 2022USD ($)property | Dec. 31, 2021USD ($) | Dec. 31, 2021property | Dec. 31, 2021building | Dec. 31, 2020USD ($)property | |
Subsequent Event [Line Items] | |||||
Number of real estate properties | 67 | 127 | |||
Accounting basis (net of accumulated depreciation and amortization) | $ | $ 2,589,826 | $ 1,954,573 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Gross proceeds | $ | $ 150,000 | ||||
Accounting basis (net of accumulated depreciation and amortization) | $ | 101,000 | ||||
Subsequent Event | Real Estate Acquired [Member] | |||||
Subsequent Event [Line Items] | |||||
Asset purchase price | $ | $ 369,500 | ||||
Industrial properties | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | building | 40 | ||||
Industrial properties | Subsequent Event | Real Estate Acquired [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | 7 | ||||
Industrial properties | Disposed of by Sale | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | 1 | ||||
Residential properties | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | building | 33 | ||||
Residential properties | Subsequent Event | Real Estate Acquired [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | 1 | ||||
Retail properties | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | building | 45 | ||||
Retail properties | Disposed of by Sale | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | 3 | 1 | |||
Retail properties | Disposed of by Sale | Bandera Road | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | 1 | ||||
Office properties | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | building | 9 | ||||
Office properties | Disposed of by Sale | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | 2 | ||||
Office properties | Disposed of by Sale | 1st Avenue Plaza | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of real estate properties | 1 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021property | Dec. 31, 2021building | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | 67 | 127 | ||||
Debt | $ 589,554 | |||||
Initial Cost to Company, Land | 586,034 | |||||
Initial Cost to Company, Building & Improvements | 2,334,352 | |||||
Initial Cost to Company, Total | 2,920,386 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 141,465 | |||||
Gross Amount Carried, Land | 583,728 | |||||
Gross Amount Carried, Building and Improvements | 2,478,123 | |||||
Real Estate, Gross, Total Cost | 3,061,851 | $ 2,455,678 | $ 2,057,350 | $ 2,008,733 | ||
Accumulated Depreciation | (472,025) | |||||
Aggregate cost of investments in real property for federal income tax purposes | 1,400,000 | |||||
Office properties | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 9 | |||||
Debt | 127,000 | |||||
Initial Cost to Company, Land | 67,736 | |||||
Initial Cost to Company, Building & Improvements | 375,926 | |||||
Initial Cost to Company, Total | 443,662 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 90,976 | |||||
Gross Amount Carried, Land | 67,736 | |||||
Gross Amount Carried, Building and Improvements | 466,902 | |||||
Real Estate, Gross, Total Cost | 534,638 | |||||
Accumulated Depreciation | (218,652) | |||||
Office properties | Bala Pointe | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 10,115 | |||||
Initial Cost to Company, Building & Improvements | 27,516 | |||||
Initial Cost to Company, Total | 37,631 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 14,536 | |||||
Gross Amount Carried, Land | 10,115 | |||||
Gross Amount Carried, Building and Improvements | 42,052 | |||||
Real Estate, Gross, Total Cost | 52,167 | |||||
Accumulated Depreciation | (23,527) | |||||
Office properties | 1300 Connecticut | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 25,177 | |||||
Initial Cost to Company, Building & Improvements | 41,250 | |||||
Initial Cost to Company, Total | 66,427 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 10,694 | |||||
Gross Amount Carried, Land | 25,177 | |||||
Gross Amount Carried, Building and Improvements | 51,944 | |||||
Real Estate, Gross, Total Cost | 77,121 | |||||
Accumulated Depreciation | (30,170) | |||||
Office properties | CityView | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 4 | |||||
Initial Cost to Company, Land | 4,606 | |||||
Initial Cost to Company, Building & Improvements | 65,250 | |||||
Initial Cost to Company, Total | 69,856 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 8,343 | |||||
Gross Amount Carried, Land | 4,606 | |||||
Gross Amount Carried, Building and Improvements | 73,593 | |||||
Real Estate, Gross, Total Cost | 78,199 | |||||
Accumulated Depreciation | (22,291) | |||||
Office properties | Eden Prairie | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 3,538 | |||||
Initial Cost to Company, Building & Improvements | 25,865 | |||||
Initial Cost to Company, Total | 29,403 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 125 | |||||
Gross Amount Carried, Land | 3,538 | |||||
Gross Amount Carried, Building and Improvements | 25,990 | |||||
Real Estate, Gross, Total Cost | 29,528 | |||||
Accumulated Depreciation | (12,446) | |||||
Office properties | Preston Sherry Plaza | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 7,500 | |||||
Initial Cost to Company, Building & Improvements | 22,303 | |||||
Initial Cost to Company, Total | 29,803 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 13,722 | |||||
Gross Amount Carried, Land | 7,500 | |||||
Gross Amount Carried, Building and Improvements | 36,025 | |||||
Real Estate, Gross, Total Cost | 43,525 | |||||
Accumulated Depreciation | (18,101) | |||||
Office properties | 3 Second Street | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 127,000 | |||||
Initial Cost to Company, Land | 16,800 | |||||
Initial Cost to Company, Building & Improvements | 193,742 | |||||
Initial Cost to Company, Total | 210,542 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 43,556 | |||||
Gross Amount Carried, Land | 16,800 | |||||
Gross Amount Carried, Building and Improvements | 237,298 | |||||
Real Estate, Gross, Total Cost | 254,098 | |||||
Accumulated Depreciation | (112,117) | |||||
Office properties | Minimum | Bala Pointe | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Office properties | Minimum | 1300 Connecticut | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 2 years | |||||
Office properties | Minimum | CityView | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Office properties | Minimum | Eden Prairie | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 5 years | |||||
Office properties | Minimum | Preston Sherry Plaza | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Office properties | Minimum | 3 Second Street | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 3 years | |||||
Office properties | Maximum | Bala Pointe | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Office properties | Maximum | 1300 Connecticut | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Office properties | Maximum | CityView | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Office properties | Maximum | Eden Prairie | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Office properties | Maximum | Preston Sherry Plaza | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Office properties | Maximum | 3 Second Street | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 45 | |||||
Debt | 75,810 | |||||
Initial Cost to Company, Land | 226,798 | |||||
Initial Cost to Company, Building & Improvements | 547,176 | |||||
Initial Cost to Company, Total | 773,974 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 35,127 | |||||
Gross Amount Carried, Land | 224,443 | |||||
Gross Amount Carried, Building and Improvements | 584,658 | |||||
Real Estate, Gross, Total Cost | 809,101 | |||||
Accumulated Depreciation | (184,019) | |||||
Retail properties | Beaver Creek | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 12,426 | |||||
Initial Cost to Company, Building & Improvements | 31,375 | |||||
Initial Cost to Company, Total | 43,801 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | (457) | |||||
Gross Amount Carried, Land | 9,955 | |||||
Gross Amount Carried, Building and Improvements | 33,389 | |||||
Real Estate, Gross, Total Cost | 43,344 | |||||
Accumulated Depreciation | (14,052) | |||||
Retail properties | Kingston | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 8,580 | |||||
Initial Cost to Company, Building & Improvements | 12,494 | |||||
Initial Cost to Company, Total | 21,074 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 5,830 | |||||
Gross Amount Carried, Land | 8,580 | |||||
Gross Amount Carried, Building and Improvements | 18,324 | |||||
Real Estate, Gross, Total Cost | 26,904 | |||||
Accumulated Depreciation | (7,390) | |||||
Retail properties | Orleans | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 8,780 | |||||
Initial Cost to Company, Building & Improvements | 23,683 | |||||
Initial Cost to Company, Total | 32,463 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 1,009 | |||||
Gross Amount Carried, Land | 8,780 | |||||
Gross Amount Carried, Building and Improvements | 24,692 | |||||
Real Estate, Gross, Total Cost | 33,472 | |||||
Accumulated Depreciation | (10,903) | |||||
Retail properties | Sandwich | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 7,380 | |||||
Initial Cost to Company, Building & Improvements | 25,778 | |||||
Initial Cost to Company, Total | 33,158 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 787 | |||||
Gross Amount Carried, Land | 7,380 | |||||
Gross Amount Carried, Building and Improvements | 26,565 | |||||
Real Estate, Gross, Total Cost | 33,945 | |||||
Accumulated Depreciation | (11,654) | |||||
Retail properties | Wareham | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 12,972 | |||||
Initial Cost to Company, Building & Improvements | 27,030 | |||||
Initial Cost to Company, Total | 40,002 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 3,796 | |||||
Gross Amount Carried, Land | 12,972 | |||||
Gross Amount Carried, Building and Improvements | 30,826 | |||||
Real Estate, Gross, Total Cost | 43,798 | |||||
Accumulated Depreciation | (14,258) | |||||
Retail properties | Abington | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 14,396 | |||||
Initial Cost to Company, Building & Improvements | 594 | |||||
Initial Cost to Company, Total | 14,990 | |||||
Gross Amount Carried, Land | 14,396 | |||||
Gross Amount Carried, Building and Improvements | 594 | |||||
Real Estate, Gross, Total Cost | 14,990 | |||||
Accumulated Depreciation | (594) | |||||
Retail properties | Hyannis | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 10,405 | |||||
Initial Cost to Company, Building & Improvements | 917 | |||||
Initial Cost to Company, Total | 11,322 | |||||
Gross Amount Carried, Land | 10,405 | |||||
Gross Amount Carried, Building and Improvements | 917 | |||||
Real Estate, Gross, Total Cost | 11,322 | |||||
Accumulated Depreciation | (718) | |||||
Retail properties | Meriden | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 6,560 | |||||
Initial Cost to Company, Building & Improvements | 22,014 | |||||
Initial Cost to Company, Total | 28,574 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | (1) | |||||
Gross Amount Carried, Land | 6,560 | |||||
Gross Amount Carried, Building and Improvements | 22,013 | |||||
Real Estate, Gross, Total Cost | 28,573 | |||||
Accumulated Depreciation | (9,834) | |||||
Retail properties | Weymouth | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 5,170 | |||||
Initial Cost to Company, Building & Improvements | 19,396 | |||||
Initial Cost to Company, Total | 24,566 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | (12) | |||||
Gross Amount Carried, Land | 4,913 | |||||
Gross Amount Carried, Building and Improvements | 19,641 | |||||
Real Estate, Gross, Total Cost | 24,554 | |||||
Accumulated Depreciation | (8,414) | |||||
Retail properties | Whitman 475 Bedford Street | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 3,610 | |||||
Initial Cost to Company, Building & Improvements | 11,682 | |||||
Initial Cost to Company, Total | 15,292 | |||||
Gross Amount Carried, Land | 3,610 | |||||
Gross Amount Carried, Building and Improvements | 11,682 | |||||
Real Estate, Gross, Total Cost | 15,292 | |||||
Accumulated Depreciation | (5,341) | |||||
Retail properties | New Bedford | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 5,072 | |||||
Initial Cost to Company, Land | 3,790 | |||||
Initial Cost to Company, Building & Improvements | 11,152 | |||||
Initial Cost to Company, Total | 14,942 | |||||
Gross Amount Carried, Land | 3,790 | |||||
Gross Amount Carried, Building and Improvements | 11,152 | |||||
Real Estate, Gross, Total Cost | 14,942 | |||||
Accumulated Depreciation | (4,720) | |||||
Retail properties | Norwell | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 738 | |||||
Initial Cost to Company, Land | 5,850 | |||||
Initial Cost to Company, Building & Improvements | 14,547 | |||||
Initial Cost to Company, Total | 20,397 | |||||
Gross Amount Carried, Land | 5,850 | |||||
Gross Amount Carried, Building and Improvements | 14,547 | |||||
Real Estate, Gross, Total Cost | 20,397 | |||||
Accumulated Depreciation | (6,588) | |||||
Retail properties | 270 Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 70,000 | |||||
Initial Cost to Company, Land | 19,779 | |||||
Initial Cost to Company, Building & Improvements | 42,515 | |||||
Initial Cost to Company, Total | 62,294 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 4,930 | |||||
Gross Amount Carried, Land | 19,781 | |||||
Gross Amount Carried, Building and Improvements | 47,443 | |||||
Real Estate, Gross, Total Cost | 67,224 | |||||
Accumulated Depreciation | (20,110) | |||||
Retail properties | Springdale | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 11,866 | |||||
Initial Cost to Company, Building & Improvements | 723 | |||||
Initial Cost to Company, Total | 12,589 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 8 | |||||
Gross Amount Carried, Land | 11,866 | |||||
Gross Amount Carried, Building and Improvements | 731 | |||||
Real Estate, Gross, Total Cost | 12,597 | |||||
Accumulated Depreciation | (670) | |||||
Retail properties | Saugus | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 3,783 | |||||
Initial Cost to Company, Building & Improvements | 9,713 | |||||
Initial Cost to Company, Total | 13,496 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 367 | |||||
Gross Amount Carried, Land | 3,783 | |||||
Gross Amount Carried, Building and Improvements | 10,080 | |||||
Real Estate, Gross, Total Cost | 13,863 | |||||
Accumulated Depreciation | (5,415) | |||||
Retail properties | Salt Pond | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 2 | |||||
Initial Cost to Company, Land | 8,759 | |||||
Initial Cost to Company, Building & Improvements | 40,233 | |||||
Initial Cost to Company, Total | 48,992 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 1,725 | |||||
Gross Amount Carried, Land | 8,759 | |||||
Gross Amount Carried, Building and Improvements | 41,958 | |||||
Real Estate, Gross, Total Cost | 50,717 | |||||
Accumulated Depreciation | (11,981) | |||||
Retail properties | South Cape | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 6 | |||||
Initial Cost to Company, Land | 9,936 | |||||
Initial Cost to Company, Building & Improvements | 27,552 | |||||
Initial Cost to Company, Total | 37,488 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 5,093 | |||||
Gross Amount Carried, Land | 10,307 | |||||
Gross Amount Carried, Building and Improvements | 32,274 | |||||
Real Estate, Gross, Total Cost | 42,581 | |||||
Accumulated Depreciation | (8,230) | |||||
Retail properties | Shenandoah | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 3 | |||||
Initial Cost to Company, Land | 10,501 | |||||
Initial Cost to Company, Building & Improvements | 27,397 | |||||
Initial Cost to Company, Total | 37,898 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 292 | |||||
Gross Amount Carried, Land | 10,501 | |||||
Gross Amount Carried, Building and Improvements | 27,689 | |||||
Real Estate, Gross, Total Cost | 38,190 | |||||
Accumulated Depreciation | (6,998) | |||||
Retail properties | Chester Springs | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 4 | |||||
Initial Cost to Company, Land | 7,376 | |||||
Initial Cost to Company, Building & Improvements | 51,155 | |||||
Initial Cost to Company, Total | 58,531 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 7,296 | |||||
Gross Amount Carried, Land | 7,376 | |||||
Gross Amount Carried, Building and Improvements | 58,451 | |||||
Real Estate, Gross, Total Cost | 65,827 | |||||
Accumulated Depreciation | (14,393) | |||||
Retail properties | Yale Village | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 4 | |||||
Initial Cost to Company, Land | 3,492 | |||||
Initial Cost to Company, Building & Improvements | 30,655 | |||||
Initial Cost to Company, Total | 34,147 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 1,738 | |||||
Gross Amount Carried, Land | 3,492 | |||||
Gross Amount Carried, Building and Improvements | 32,393 | |||||
Real Estate, Gross, Total Cost | 35,885 | |||||
Accumulated Depreciation | (7,179) | |||||
Retail properties | Suniland Shopping Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 4 | |||||
Initial Cost to Company, Land | 34,804 | |||||
Initial Cost to Company, Building & Improvements | 33,902 | |||||
Initial Cost to Company, Total | 68,706 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 1,416 | |||||
Gross Amount Carried, Land | 34,804 | |||||
Gross Amount Carried, Building and Improvements | 35,318 | |||||
Real Estate, Gross, Total Cost | 70,122 | |||||
Accumulated Depreciation | (8,817) | |||||
Retail properties | Village at Lee Branch | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 2 | |||||
Initial Cost to Company, Land | 10,476 | |||||
Initial Cost to Company, Building & Improvements | 32,461 | |||||
Initial Cost to Company, Total | 42,937 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 1,228 | |||||
Gross Amount Carried, Land | 10,476 | |||||
Gross Amount Carried, Building and Improvements | 33,689 | |||||
Real Estate, Gross, Total Cost | 44,165 | |||||
Accumulated Depreciation | (3,848) | |||||
Retail properties | Barrow Crossing | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 5 | |||||
Initial Cost to Company, Land | 6,107 | |||||
Initial Cost to Company, Building & Improvements | 50,208 | |||||
Initial Cost to Company, Total | 56,315 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 82 | |||||
Gross Amount Carried, Land | 6,107 | |||||
Gross Amount Carried, Building and Improvements | 50,290 | |||||
Real Estate, Gross, Total Cost | 56,397 | |||||
Accumulated Depreciation | (1,912) | |||||
Retail properties | Minimum | Beaver Creek | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Kingston | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Orleans | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Sandwich | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Wareham | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Hyannis | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 18 years | |||||
Retail properties | Minimum | Meriden | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 13 years | |||||
Retail properties | Minimum | Weymouth | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 4 years | |||||
Retail properties | Minimum | Whitman 475 Bedford Street | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 16 years | |||||
Retail properties | Minimum | New Bedford | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 22 years | |||||
Retail properties | Minimum | Norwell | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 15 years | |||||
Retail properties | Minimum | 270 Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Springdale | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 6 years | |||||
Retail properties | Minimum | Saugus | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 3 years | |||||
Retail properties | Minimum | Salt Pond | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | South Cape | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Shenandoah | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Chester Springs | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Yale Village | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 3 years | |||||
Retail properties | Minimum | Suniland Shopping Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Village at Lee Branch | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Minimum | Barrow Crossing | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Retail properties | Maximum | Beaver Creek | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Kingston | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Orleans | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Sandwich | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Wareham | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Hyannis | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 68 years | |||||
Retail properties | Maximum | Meriden | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 43 years | |||||
Retail properties | Maximum | Weymouth | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Whitman 475 Bedford Street | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 56 years | |||||
Retail properties | Maximum | New Bedford | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Norwell | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 65 years | |||||
Retail properties | Maximum | 270 Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Springdale | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 62 years | |||||
Retail properties | Maximum | Saugus | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Salt Pond | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | South Cape | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Shenandoah | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Chester Springs | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Yale Village | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Suniland Shopping Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Village at Lee Branch | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Retail properties | Maximum | Barrow Crossing | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Residential properties | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 33 | |||||
Debt | 259,663 | |||||
Initial Cost to Company, Land | 92,050 | |||||
Initial Cost to Company, Building & Improvements | 763,581 | |||||
Initial Cost to Company, Total | 855,631 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 2,607 | |||||
Gross Amount Carried, Land | 92,050 | |||||
Gross Amount Carried, Building and Improvements | 766,188 | |||||
Real Estate, Gross, Total Cost | 858,238 | |||||
Accumulated Depreciation | (25,034) | |||||
Residential properties | The Daley | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 4 | |||||
Debt | 62,000 | |||||
Initial Cost to Company, Land | 15,139 | |||||
Initial Cost to Company, Building & Improvements | 80,500 | |||||
Initial Cost to Company, Total | 95,639 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 345 | |||||
Gross Amount Carried, Land | 15,139 | |||||
Gross Amount Carried, Building and Improvements | 80,845 | |||||
Real Estate, Gross, Total Cost | 95,984 | |||||
Accumulated Depreciation | (7,353) | |||||
Residential properties | Juno Winter Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 9,129 | |||||
Initial Cost to Company, Building & Improvements | 75,420 | |||||
Initial Cost to Company, Total | 84,549 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 251 | |||||
Gross Amount Carried, Land | 9,129 | |||||
Gross Amount Carried, Building and Improvements | 75,671 | |||||
Real Estate, Gross, Total Cost | 84,800 | |||||
Accumulated Depreciation | (5,888) | |||||
Residential properties | Perimeter | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 17,407 | |||||
Initial Cost to Company, Building & Improvements | 99,763 | |||||
Initial Cost to Company, Total | 117,170 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 376 | |||||
Gross Amount Carried, Land | 17,407 | |||||
Gross Amount Carried, Building and Improvements | 100,139 | |||||
Real Estate, Gross, Total Cost | 117,546 | |||||
Accumulated Depreciation | (7,298) | |||||
Residential properties | The Palms | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 15 | |||||
Initial Cost to Company, Land | 18,737 | |||||
Initial Cost to Company, Building & Improvements | 60,475 | |||||
Initial Cost to Company, Total | 79,212 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 1,629 | |||||
Gross Amount Carried, Land | 18,737 | |||||
Gross Amount Carried, Building and Improvements | 62,104 | |||||
Real Estate, Gross, Total Cost | 80,841 | |||||
Accumulated Depreciation | (3,278) | |||||
Residential properties | oLiv Tucson | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 80,600 | |||||
Initial Cost to Company, Building & Improvements | 128,659 | |||||
Initial Cost to Company, Total | 128,659 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 6 | |||||
Gross Amount Carried, Building and Improvements | 128,665 | |||||
Real Estate, Gross, Total Cost | 128,665 | |||||
Accumulated Depreciation | (896) | |||||
Residential properties | Arabelle Clearwater | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 10 | |||||
Initial Cost to Company, Land | 11,633 | |||||
Initial Cost to Company, Building & Improvements | 104,719 | |||||
Initial Cost to Company, Total | 116,352 | |||||
Gross Amount Carried, Land | 11,633 | |||||
Gross Amount Carried, Building and Improvements | 104,719 | |||||
Real Estate, Gross, Total Cost | 116,352 | |||||
Accumulated Depreciation | (321) | |||||
Residential properties | Arabelle Riverwalk | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 117,063 | |||||
Initial Cost to Company, Land | 20,005 | |||||
Initial Cost to Company, Building & Improvements | 214,045 | |||||
Initial Cost to Company, Total | 234,050 | |||||
Gross Amount Carried, Land | 20,005 | |||||
Gross Amount Carried, Building and Improvements | 214,045 | |||||
Real Estate, Gross, Total Cost | 234,050 | |||||
Residential properties | Minimum | The Daley | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Residential properties | Minimum | Juno Winter Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Residential properties | Minimum | Perimeter | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Residential properties | Minimum | The Palms | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Residential properties | Minimum | oLiv Tucson | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Residential properties | Minimum | Arabelle Clearwater | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Residential properties | Minimum | Arabelle Riverwalk | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Residential properties | Maximum | The Daley | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Residential properties | Maximum | Juno Winter Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Residential properties | Maximum | Perimeter | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Residential properties | Maximum | The Palms | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Residential properties | Maximum | oLiv Tucson | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Residential properties | Maximum | Arabelle Clearwater | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Residential properties | Maximum | Arabelle Riverwalk | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 40 | |||||
Debt | 127,081 | |||||
Initial Cost to Company, Land | 199,450 | |||||
Initial Cost to Company, Building & Improvements | 647,669 | |||||
Initial Cost to Company, Total | 847,119 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 12,755 | |||||
Gross Amount Carried, Land | 199,499 | |||||
Gross Amount Carried, Building and Improvements | 660,375 | |||||
Real Estate, Gross, Total Cost | 859,874 | |||||
Accumulated Depreciation | (44,320) | |||||
Industrial properties | Vasco Road | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 17,435 | |||||
Initial Cost to Company, Land | 4,880 | |||||
Initial Cost to Company, Building & Improvements | 12,019 | |||||
Initial Cost to Company, Total | 16,899 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | (60) | |||||
Gross Amount Carried, Land | 4,880 | |||||
Gross Amount Carried, Building and Improvements | 11,959 | |||||
Real Estate, Gross, Total Cost | 16,839 | |||||
Accumulated Depreciation | (2,783) | |||||
Industrial properties | Northgate | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 22,605 | |||||
Initial Cost to Company, Land | 3,940 | |||||
Initial Cost to Company, Building & Improvements | 20,715 | |||||
Initial Cost to Company, Total | 24,655 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 16 | |||||
Gross Amount Carried, Land | 3,943 | |||||
Gross Amount Carried, Building and Improvements | 20,728 | |||||
Real Estate, Gross, Total Cost | 24,671 | |||||
Accumulated Depreciation | (3,506) | |||||
Industrial properties | Stafford Grove | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 3 | |||||
Initial Cost to Company, Land | 8,540 | |||||
Initial Cost to Company, Building & Improvements | 28,879 | |||||
Initial Cost to Company, Total | 37,419 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 1,697 | |||||
Gross Amount Carried, Land | 8,586 | |||||
Gross Amount Carried, Building and Improvements | 30,530 | |||||
Real Estate, Gross, Total Cost | 39,116 | |||||
Accumulated Depreciation | (5,036) | |||||
Industrial properties | Kaiser Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 2 | |||||
Initial Cost to Company, Land | 6,140 | |||||
Initial Cost to Company, Building & Improvements | 12,730 | |||||
Initial Cost to Company, Total | 18,870 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 235 | |||||
Gross Amount Carried, Land | 6,140 | |||||
Gross Amount Carried, Building and Improvements | 12,965 | |||||
Real Estate, Gross, Total Cost | 19,105 | |||||
Accumulated Depreciation | (2,752) | |||||
Industrial properties | Tri-County DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 16,819 | |||||
Initial Cost to Company, Land | 2,346 | |||||
Initial Cost to Company, Building & Improvements | 18,400 | |||||
Initial Cost to Company, Total | 20,746 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 907 | |||||
Gross Amount Carried, Land | 2,346 | |||||
Gross Amount Carried, Building and Improvements | 19,307 | |||||
Real Estate, Gross, Total Cost | 21,653 | |||||
Accumulated Depreciation | (2,780) | |||||
Industrial properties | Florence Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 14,358 | |||||
Initial Cost to Company, Land | 1,791 | |||||
Initial Cost to Company, Building & Improvements | 16,968 | |||||
Initial Cost to Company, Total | 18,759 | |||||
Gross Amount Carried, Land | 1,791 | |||||
Gross Amount Carried, Building and Improvements | 16,968 | |||||
Real Estate, Gross, Total Cost | 18,759 | |||||
Accumulated Depreciation | (2,001) | |||||
Industrial properties | World Connect Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 32,386 | |||||
Initial Cost to Company, Land | 4,983 | |||||
Initial Cost to Company, Building & Improvements | 39,172 | |||||
Initial Cost to Company, Total | 44,155 | |||||
Gross Amount Carried, Land | 4,983 | |||||
Gross Amount Carried, Building and Improvements | 39,172 | |||||
Real Estate, Gross, Total Cost | 44,155 | |||||
Accumulated Depreciation | (3,762) | |||||
Industrial properties | Tri-County DC II A | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 9,004 | |||||
Initial Cost to Company, Land | 1,280 | |||||
Initial Cost to Company, Building & Improvements | 8,562 | |||||
Initial Cost to Company, Total | 9,842 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 89 | |||||
Gross Amount Carried, Land | 1,280 | |||||
Gross Amount Carried, Building and Improvements | 8,651 | |||||
Real Estate, Gross, Total Cost | 9,931 | |||||
Accumulated Depreciation | (1,135) | |||||
Industrial properties | Aurora DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 1,681 | |||||
Initial Cost to Company, Building & Improvements | 6,887 | |||||
Initial Cost to Company, Total | 8,568 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 887 | |||||
Gross Amount Carried, Land | 1,681 | |||||
Gross Amount Carried, Building and Improvements | 7,774 | |||||
Real Estate, Gross, Total Cost | 9,455 | |||||
Accumulated Depreciation | (1,346) | |||||
Industrial properties | Railhead DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 8,694 | |||||
Initial Cost to Company, Land | 2,102 | |||||
Initial Cost to Company, Building & Improvements | 17,475 | |||||
Initial Cost to Company, Total | 19,577 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 25 | |||||
Gross Amount Carried, Land | 2,102 | |||||
Gross Amount Carried, Building and Improvements | 17,500 | |||||
Real Estate, Gross, Total Cost | 19,602 | |||||
Accumulated Depreciation | (1,470) | |||||
Industrial properties | Tri-County DC II B | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Debt | 2,393 | |||||
Initial Cost to Company, Land | 455 | |||||
Initial Cost to Company, Building & Improvements | 2,429 | |||||
Initial Cost to Company, Total | 2,884 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 48 | |||||
Gross Amount Carried, Land | 455 | |||||
Gross Amount Carried, Building and Improvements | 2,477 | |||||
Real Estate, Gross, Total Cost | 2,932 | |||||
Accumulated Depreciation | (244) | |||||
Industrial properties | Sterling IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 1,976 | |||||
Initial Cost to Company, Building & Improvements | 3,369 | |||||
Initial Cost to Company, Total | 5,345 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | (18) | |||||
Gross Amount Carried, Land | 1,976 | |||||
Gross Amount Carried, Building and Improvements | 3,351 | |||||
Real Estate, Gross, Total Cost | 5,327 | |||||
Accumulated Depreciation | (277) | |||||
Industrial properties | Clayton Commerce Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 7,403 | |||||
Initial Cost to Company, Building & Improvements | 51,886 | |||||
Initial Cost to Company, Total | 59,289 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 5,415 | |||||
Gross Amount Carried, Land | 7,403 | |||||
Gross Amount Carried, Building and Improvements | 57,301 | |||||
Real Estate, Gross, Total Cost | 64,704 | |||||
Accumulated Depreciation | (4,403) | |||||
Industrial properties | Bay Area Commerce Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 10,135 | |||||
Initial Cost to Company, Building & Improvements | 38,672 | |||||
Initial Cost to Company, Total | 48,807 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 1,254 | |||||
Gross Amount Carried, Land | 10,135 | |||||
Gross Amount Carried, Building and Improvements | 39,926 | |||||
Real Estate, Gross, Total Cost | 50,061 | |||||
Accumulated Depreciation | (1,902) | |||||
Industrial properties | Air Tech DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 2 | |||||
Debt | 3,387 | |||||
Initial Cost to Company, Land | 615 | |||||
Initial Cost to Company, Building & Improvements | 18,471 | |||||
Initial Cost to Company, Total | 19,086 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 156 | |||||
Gross Amount Carried, Land | 615 | |||||
Gross Amount Carried, Building and Improvements | 18,627 | |||||
Real Estate, Gross, Total Cost | 19,242 | |||||
Accumulated Depreciation | (1,136) | |||||
Industrial properties | East Columbia IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 2 | |||||
Initial Cost to Company, Land | 3,352 | |||||
Initial Cost to Company, Building & Improvements | 11,726 | |||||
Initial Cost to Company, Total | 15,078 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 54 | |||||
Gross Amount Carried, Land | 3,352 | |||||
Gross Amount Carried, Building and Improvements | 11,780 | |||||
Real Estate, Gross, Total Cost | 15,132 | |||||
Accumulated Depreciation | (947) | |||||
Industrial properties | Plainfield LC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 2,514 | |||||
Initial Cost to Company, Building & Improvements | 17,260 | |||||
Initial Cost to Company, Total | 19,774 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 17 | |||||
Gross Amount Carried, Land | 2,514 | |||||
Gross Amount Carried, Building and Improvements | 17,277 | |||||
Real Estate, Gross, Total Cost | 19,791 | |||||
Accumulated Depreciation | (668) | |||||
Industrial properties | 395 LC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 6,752 | |||||
Initial Cost to Company, Building & Improvements | 61,784 | |||||
Initial Cost to Company, Total | 68,536 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 134 | |||||
Gross Amount Carried, Land | 6,752 | |||||
Gross Amount Carried, Building and Improvements | 61,918 | |||||
Real Estate, Gross, Total Cost | 68,670 | |||||
Accumulated Depreciation | (2,721) | |||||
Industrial properties | Radar Distribution Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 7,167 | |||||
Initial Cost to Company, Building & Improvements | 42,373 | |||||
Initial Cost to Company, Total | 49,540 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 631 | |||||
Gross Amount Carried, Land | 7,167 | |||||
Gross Amount Carried, Building and Improvements | 43,004 | |||||
Real Estate, Gross, Total Cost | 50,171 | |||||
Accumulated Depreciation | (836) | |||||
Industrial properties | Intermountain Space Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 14,786 | |||||
Initial Cost to Company, Building & Improvements | 48,645 | |||||
Initial Cost to Company, Total | 63,431 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 322 | |||||
Gross Amount Carried, Land | 14,786 | |||||
Gross Amount Carried, Building and Improvements | 48,967 | |||||
Real Estate, Gross, Total Cost | 63,753 | |||||
Accumulated Depreciation | (1,726) | |||||
Industrial properties | Airway Industrial Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 5,740 | |||||
Initial Cost to Company, Building & Improvements | 18,616 | |||||
Initial Cost to Company, Total | 24,356 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 719 | |||||
Gross Amount Carried, Land | 5,740 | |||||
Gross Amount Carried, Building and Improvements | 19,335 | |||||
Real Estate, Gross, Total Cost | 25,075 | |||||
Accumulated Depreciation | (198) | |||||
Industrial properties | Greenwood Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 858 | |||||
Initial Cost to Company, Building & Improvements | 16,251 | |||||
Initial Cost to Company, Total | 17,109 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | (30) | |||||
Gross Amount Carried, Land | 858 | |||||
Gross Amount Carried, Building and Improvements | 16,221 | |||||
Real Estate, Gross, Total Cost | 17,079 | |||||
Accumulated Depreciation | (338) | |||||
Industrial properties | 25 Linden Industrial Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 7,764 | |||||
Initial Cost to Company, Building & Improvements | 9,576 | |||||
Initial Cost to Company, Total | 17,340 | |||||
Gross Amount Carried, Land | 7,764 | |||||
Gross Amount Carried, Building and Improvements | 9,576 | |||||
Real Estate, Gross, Total Cost | 17,340 | |||||
Accumulated Depreciation | (358) | |||||
Industrial properties | Little Orchard Business Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 4 | |||||
Initial Cost to Company, Land | 51,265 | |||||
Initial Cost to Company, Building & Improvements | 48,147 | |||||
Initial Cost to Company, Total | 99,412 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 99 | |||||
Gross Amount Carried, Land | 51,265 | |||||
Gross Amount Carried, Building and Improvements | 48,246 | |||||
Real Estate, Gross, Total Cost | 99,511 | |||||
Accumulated Depreciation | (1,454) | |||||
Industrial properties | Tustin Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 2 | |||||
Initial Cost to Company, Land | 22,734 | |||||
Initial Cost to Company, Building & Improvements | 12,233 | |||||
Initial Cost to Company, Total | 34,967 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 35 | |||||
Gross Amount Carried, Land | 22,734 | |||||
Gross Amount Carried, Building and Improvements | 12,268 | |||||
Real Estate, Gross, Total Cost | 35,002 | |||||
Accumulated Depreciation | (226) | |||||
Industrial properties | Campus Drive IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 2,364 | |||||
Initial Cost to Company, Building & Improvements | 4,288 | |||||
Initial Cost to Company, Total | 6,652 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 33 | |||||
Gross Amount Carried, Land | 2,364 | |||||
Gross Amount Carried, Building and Improvements | 4,321 | |||||
Real Estate, Gross, Total Cost | 6,685 | |||||
Accumulated Depreciation | (68) | |||||
Industrial properties | Long Island Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 4,927 | |||||
Initial Cost to Company, Building & Improvements | 16,198 | |||||
Initial Cost to Company, Total | 21,125 | |||||
Costs Capitalized or Adjustments Subsequent to Acquisition | 90 | |||||
Gross Amount Carried, Land | 4,927 | |||||
Gross Amount Carried, Building and Improvements | 16,288 | |||||
Real Estate, Gross, Total Cost | 21,215 | |||||
Accumulated Depreciation | (61) | |||||
Industrial properties | Phoenix IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 4,709 | |||||
Initial Cost to Company, Building & Improvements | 12,895 | |||||
Initial Cost to Company, Total | 17,604 | |||||
Gross Amount Carried, Land | 4,709 | |||||
Gross Amount Carried, Building and Improvements | 12,895 | |||||
Real Estate, Gross, Total Cost | 17,604 | |||||
Accumulated Depreciation | (83) | |||||
Industrial properties | Tempe IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 1 | |||||
Initial Cost to Company, Land | 3,628 | |||||
Initial Cost to Company, Building & Improvements | 24,857 | |||||
Initial Cost to Company, Total | 28,485 | |||||
Gross Amount Carried, Land | 3,628 | |||||
Gross Amount Carried, Building and Improvements | 24,857 | |||||
Real Estate, Gross, Total Cost | 28,485 | |||||
Accumulated Depreciation | (85) | |||||
Industrial properties | Las Vegas IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Number of Buildings | building | 2 | |||||
Initial Cost to Company, Land | 2,623 | |||||
Initial Cost to Company, Building & Improvements | 6,186 | |||||
Initial Cost to Company, Total | 8,809 | |||||
Gross Amount Carried, Land | 2,623 | |||||
Gross Amount Carried, Building and Improvements | 6,186 | |||||
Real Estate, Gross, Total Cost | 8,809 | |||||
Accumulated Depreciation | $ (18) | |||||
Industrial properties | Minimum | Vasco Road | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 3 years | |||||
Industrial properties | Minimum | Northgate | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 10 years | |||||
Industrial properties | Minimum | Stafford Grove | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 4 years | |||||
Industrial properties | Minimum | Kaiser Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 2 years | |||||
Industrial properties | Minimum | Tri-County DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | Florence Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | World Connect Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | Tri-County DC II A | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | Aurora DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | Railhead DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 6 years | |||||
Industrial properties | Minimum | Tri-County DC II B | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 4 years | |||||
Industrial properties | Minimum | Sterling IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 6 years | |||||
Industrial properties | Minimum | Clayton Commerce Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 7 years | |||||
Industrial properties | Minimum | Bay Area Commerce Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 9 years | |||||
Industrial properties | Minimum | Air Tech DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | East Columbia IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 3 years | |||||
Industrial properties | Minimum | Plainfield LC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 7 years | |||||
Industrial properties | Minimum | 395 LC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 5 years | |||||
Industrial properties | Minimum | Radar Distribution Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 7 years | |||||
Industrial properties | Minimum | Intermountain Space Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 3 years | |||||
Industrial properties | Minimum | Airway Industrial Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | Greenwood Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 5 years | |||||
Industrial properties | Minimum | 25 Linden Industrial Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 2 years | |||||
Industrial properties | Minimum | Little Orchard Business Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | Tustin Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 8 years | |||||
Industrial properties | Minimum | Campus Drive IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 10 years | |||||
Industrial properties | Minimum | Long Island Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 9 years | |||||
Industrial properties | Minimum | Phoenix IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 1 year | |||||
Industrial properties | Minimum | Tempe IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 2 years | |||||
Industrial properties | Minimum | Las Vegas IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 4 years | |||||
Industrial properties | Maximum | Vasco Road | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Northgate | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Stafford Grove | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Kaiser Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Tri-County DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Florence Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | World Connect Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Tri-County DC II A | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Aurora DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Railhead DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Tri-County DC II B | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Sterling IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Clayton Commerce Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Bay Area Commerce Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Air Tech DC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | East Columbia IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Plainfield LC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | 395 LC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Radar Distribution Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Intermountain Space Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Airway Industrial Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | Greenwood Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 40 years | |||||
Industrial properties | Maximum | 25 Linden Industrial Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Little Orchard Business Park | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Tustin Business Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Campus Drive IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Long Island Logistics Center | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Phoenix IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Tempe IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 20 years | |||||
Industrial properties | Maximum | Las Vegas IC | ||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||
Depreciable Life (years) | 30 years |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation (Activity of Real Estate and Accumulated Depreciation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments in real estate properties: | |||
Balance at the beginning of period | $ 2,455,678 | $ 2,057,350 | $ 2,008,733 |
Acquisitions of properties | 924,206 | 380,525 | 399,428 |
Improvements | 38,295 | 40,595 | 44,103 |
Property dispositions or held for sale assets | (355,570) | (22,792) | (394,711) |
Impairment of real estate | (758) | 0 | (113) |
Write-offs of intangibles and customer leasing costs | 0 | 0 | (90) |
Balance at the end of period | 3,061,851 | 2,455,678 | 2,057,350 |
Accumulated depreciation and amortization: | |||
Balance at the beginning of period | 501,105 | 444,718 | 501,621 |
Real estate depreciation and amortization expense | 74,415 | 62,923 | 57,342 |
Above-market lease assets amortization expenses | 469 | 357 | 792 |
Right of use asset amortization expense | 53 | 0 | 0 |
Property dispositions or held for sale assets | (104,017) | (6,893) | (114,948) |
Write-offs of intangibles and customer leasing costs | 0 | 0 | 89 |
Balance at the end of period | $ 472,025 | $ 501,105 | $ 444,718 |