Cover
Cover - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | May 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-53650 | |
Entity Registrant Name | Lightstone Value Plus REIT V, Inc. | |
Entity Central Index Key | 0001387061 | |
Entity Tax Identification Number | 20-8198863 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 1985 Cedar Bridge Avenue | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08701 | |
City Area Code | (888) | |
Local Phone Number | 808-7348 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,000 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investment property: | ||
Land and improvements | $ 84,609 | $ 84,439 |
Building and improvements | 325,415 | 324,335 |
Furniture, fixtures and equipment | 10,049 | 9,975 |
Gross investment property | 420,073 | 418,749 |
Less accumulated depreciation | (62,715) | (59,274) |
Net investment property | 357,358 | 359,475 |
Cash and cash equivalents | 58,805 | 59,625 |
Marketable securities, available for sale | 3,561 | 3,455 |
Restricted cash | 4,535 | 5,126 |
Note receivable, net | 4,616 | 3,771 |
Prepaid expenses and other assets | 3,223 | 3,256 |
Total Assets | 432,098 | 434,708 |
Liabilities and Stockholders’ Equity | ||
Notes payable, net | 290,404 | 290,289 |
Accounts payable and accrued and other liabilities | 7,897 | 8,515 |
Total liabilities | 298,301 | 298,804 |
Company’s stockholders’ equity: | ||
Preferred stock, $.0001 par value per share; 50.0 million shares authorized, none issued and outstanding | ||
Convertible stock, $.0001 par value per share; 1,000 shares authorized, issued and outstanding | ||
Common stock, $.0001 par value per share; 350.0 million shares authorized, 20.0 million shares issued and outstanding | 2 | 2 |
Additional paid-in-capital | 169,846 | 169,996 |
Accumulated other comprehensive loss | (190) | (220) |
Accumulated deficit | (35,861) | (33,874) |
Total Stockholders’ Equity | 133,797 | 135,904 |
Total Liabilities and Stockholders’ Equity | $ 432,098 | $ 434,708 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Convertible stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Convertible stock, shares authorized (in shares) | 1,000 | 1,000 |
Convertible Stock Shares Issued (in shares) | 1,000 | 1,000 |
Convertible stock, shares outstanding (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 350,000 | 350,000 |
Common stock, shares issued (in shares) | 20,000 | 20,000 |
Common stock, shares outstanding (in shares) | 20,000 | 20,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Rental revenues | $ 12,313 | $ 11,206 |
Expenses | ||
Property operating expenses | 3,900 | 3,247 |
Real estate taxes | 1,874 | 1,728 |
General and administrative | 1,863 | 1,818 |
Depreciation and amortization | 3,440 | 4,919 |
Total expenses | 11,077 | 11,712 |
Interest expense, net | (3,598) | (3,114) |
Interest income | 639 | 509 |
Income tax benefit | 776 | |
Mark to market adjustment on derivative financial instruments | (526) | 618 |
Other income, net | 262 | 338 |
Net loss | $ (1,987) | $ (1,379) |
Weighted average shares outstanding: | ||
Basic and diluted | 20,036 | 20,110 |
Basic and diluted loss per share | $ (0.10) | $ (0.07) |
Other comprehensive income/(loss): | ||
Holding gain/(loss) on marketable securities, available for sale | $ 28 | $ (123) |
Reclassification adjustment for loss/(gain) on sale of marketable securities included in net loss | 2 | (4) |
Total other comprehensive income/(loss) | 30 | (127) |
Comprehensive loss | $ (1,957) | $ (1,506) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Convertible Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 2 | $ 171,079 | $ 13 | $ (25,224) | $ 145,870 | |
Beginning balance, shares at Dec. 31, 2021 | 1 | 20,128 | ||||
Net loss | (1,379) | (1,379) | ||||
Redemption and cancellation of common stock | (315) | (315) | ||||
Redemption and cancellation of common stock, shares | (24) | |||||
Holding gain on marketable securities, available for sale | (123) | (123) | ||||
Reclassification adjustment for loss on sale of marketable securities included in net loss | 4 | 4 | ||||
Ending balance, value at Mar. 31, 2022 | $ 2 | 170,764 | (114) | (26,603) | 144,049 | |
Ending balance, shares at Mar. 31, 2022 | 1 | 20,104 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 2 | 169,996 | (220) | (33,874) | 135,904 | |
Beginning balance, shares at Dec. 31, 2022 | 1 | 20,044 | ||||
Net loss | (1,987) | (1,987) | ||||
Redemption and cancellation of common stock | (150) | (150) | ||||
Redemption and cancellation of common stock, shares | (10) | |||||
Holding gain on marketable securities, available for sale | 28 | 28 | ||||
Reclassification adjustment for loss on sale of marketable securities included in net loss | 2 | 2 | ||||
Ending balance, value at Mar. 31, 2023 | $ 2 | $ 169,846 | $ (190) | $ (35,861) | $ 133,797 | |
Ending balance, shares at Mar. 31, 2023 | 1 | 20,034 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,987) | $ (1,379) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 3,440 | 4,919 |
Amortization of deferred financing fees | 356 | 352 |
Mark to market adjustment on derivative financial instruments | 526 | (618) |
Non-cash interest income | (43) | (192) |
Other non-cash adjustments | (134) | (4) |
Changes in operating assets and liabilities: | ||
(Increase)/decrease in prepaid expenses and other assets | (368) | 5 |
Decrease in accounts payable and accrued and other liabilities | (553) | (671) |
Net cash provided by operating activities | 1,237 | 2,412 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (1,410) | (1,822) |
Purchases of marketable securities | (419) | (457) |
Proceeds from sale of marketable securities | 342 | 489 |
Funding of note receivable, net | (781) | |
Proceeds from repayment of note receivable | 1,552 | |
Net cash used in investing activities | (2,268) | (238) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable | 230 | 11,186 |
Payments on notes payable | (460) | (442) |
Payment of loan fees and expenses | (13) | |
Redemption and cancellation of common stock | (150) | (315) |
Net cash (used in)/provided by financing activities | (380) | 10,416 |
Change in cash, cash equivalents and restricted cash | (1,411) | 12,590 |
Cash, cash equivalents and restricted cash, beginning of year | 64,751 | 45,239 |
Cash, cash equivalents and restricted cash, end of period | 63,340 | 57,829 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 4,147 | 3,080 |
Capital expenditures for investment property in accounts payable and accrued and other liabilities | 82 | 95 |
Holding gain/loss on marketable securities, available for sale | 30 | 127 |
Cash | 58,805 | 37,775 |
Restricted cash | 4,535 | 20,054 |
Total cash and restricted cash | $ 63,340 | $ 57,829 |
Business
Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | 1. Business Lightstone Value Plus REIT V, Inc. which was formerly known as Lightstone Value Plus Real Estate Investment Trust V, Inc. before August 31, 2021 (which may be referred to as the “Company,” “we,” “us,” or “our”), was organized as a Maryland corporation on January 9, 2007 and has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. The Company was formed primarily to acquire and operate commercial real estate and real estate-related assets on an opportunistic and value-add basis. In particular, the Company has focused generally on acquiring commercial properties with significant possibilities for capital appreciation, such as those requiring development, redevelopment, or repositioning, those located in markets and submarkets with high growth potential, and those available from sellers who are distressed or face time-sensitive deadlines. The Company has acquired a wide variety of commercial properties, including office, industrial, retail, hospitality, multifamily and student housing. The Company has purchased existing, income-producing properties, and newly-constructed properties. The Company has also invested in other real estate-related investments such as mortgage and mezzanine loans. The Company intends to hold the various real properties in which it has invested until such time as its board of directors determines that a sale or other disposition appears to be advantageous to achieve the Company’s investment objectives or until it appears that the objectives will not be met. The Company currently has one operating segment. As of March 31, 2023, the Company had eight wholly owned real estate investments (multifamily properties) and one real estate-related investment (note receivable). Substantially all of the Company’s business is conducted through Lightstone REIT V OP LP, a limited partnership organized in Delaware (the “Operating Partnership”). As of March 31, 2023, the Company’s wholly-owned subsidiary, BHO II, Inc., a Delaware corporation, owned a 0.1% 99.9% The Company’s business is externally managed by LSG Development Advisor LLC (the “Advisor”), an affiliate of the Lightstone Group LLC (“Lightstone”) which provides advisory services to the Company and the Company has no employees. Lightstone is majority owned by the chairman emeritus of the Company’s board of directors, David Lichtenstein. Pursuant to the terms of an advisory agreement and subject to the oversight of the Company’s board of directors, the Advisor is responsible for managing the Company’s day-to-day affairs and for services related to the management of the Company’s assets. Organization In connection with the Company’s initial capitalization, the Company issued 22,500 1,000 1,000 20.0 The Company’s common stock is not currently listed on a national securities exchange. The timing of a liquidity event for the Company’s stockholders will depend upon then prevailing market conditions and the Company’s board of directors’ assessment of the Company’s investment objectives and liquidity options for the Company’s stockholders. Currently, the Company’s board of directors has targeted June 30, 2028 for the commencement of a liquidity event. However, the Company can provide no assurances as to the actual timing of the commencement of a liquidity event for its stockholders or the ultimate liquidation of the Company. Furthermore, the Company will seek stockholder approval prior to liquidating its entire portfolio. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Interim Unaudited Financial Information The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2023. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus REIT V, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which the Company has control. All inter-company transactions, balances, and profits have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and entities deemed to be variable interest entities (“VIE”) in which the Company is the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest or entities which we are not deemed to be the primary beneficiary, it accounts for the investment using the equity method of accounting. The consolidated balance sheet as of December 31, 2022 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing net income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2008. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. During 2015, the Company recorded an aggregate provision for income tax of $ 2.7 0.8 Recently Adopted Accounting Standards In June 2016, the issued an , “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard introduces Adverse Developments Affecting the Financial Services Industry and Concentration of Credit Risk As of March 31, 2023 and December 31, 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents or restricted cash. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations. Current Environment The Company’s operating results are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, the Company’s business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges, and developments related to the COVID-19 pandemic, and other changes in economic conditions, may adversely affect the Company’s results of operations and financial performance. |
Note Receivable
Note Receivable | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Note Receivable | 3. Note Receivable On February 28, 2019, the Company, as the lender, and an unrelated third party (the “Loan Borrower”), as the borrower, entered into a loan promissory note (the “Mezzanine Loan”), pursuant to which the Company funded an aggregate $ 12.0 The Mezzanine Loan bore interest at a rate of LIBOR plus 11.0% 13.493% 17.885% March 1, 2023 8% 8% The Loan Borrower developed and constructed Park House, which contains ten residential units and ground floor retail space. The Park House was substantially completed in July 2022, and during the year ended December 31, 2022, the Loan Borrower repaid $ 10.6 3.8 2.4 During the first quarter of 2023, the Company and Loan Borrower refinanced the Mezzanine Loan resulting in a $ 5.0 SOFR plus 5.50% 10.03% 4.6 5.0 0.4 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 4. Financial Instruments The Company determined the following disclosure of estimated fair values using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop the related estimates of fair value. The use of different market assumptions or only estimation methodologies may have a material effect on the estimated fair value amounts. As of March 31, 2023 and December 31, 2022, management estimated that the carrying value of cash and cash equivalents, restricted cash, note receivable, prepaid expenses and other assets (exclusive of interest rate cap contracts - see Note 6) and accounts payable and accrued and other liabilities were at amounts that reasonably approximated their fair value based on their highly-liquid nature and/or short-term maturities. The fair value of the notes payable is categorized as a Level 2 in the fair value hierarchy. The fair value was estimated using a discounted cash flow analysis valuation on the estimated borrowing rates currently available for loans with similar terms and maturities. The fair value of the notes payable was determined by discounting the future contractual interest and principal payments by a market rate. Disclosure about fair value of financial instruments is based on pertinent information available to management as of March 31, 2023 and December 31, 2022. Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: Schedule of notes payable and the related estimated fair value As of As of Carrying Estimated Carrying Estimated Notes payable $ 293,464 $ 291,521 $ 293,695 $ 288,222 |
Real Estate Properties
Real Estate Properties | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate Properties | |
Real Estate Properties | 5. Real Estate Properties The following table presents certain information about the Company’s wholly owned and consolidated multifamily real estate properties as of March 31, 2023: Schedule of real estate properties Property Name Location Date Acquired Arbors Harbor Town Memphis, Tennessee December 20, 2011 Parkside Apartments (“Parkside”) Sugar Land, Texas August 8, 2013 Flats at Fishers Fishers, Indiana November 30, 2017 Axis at Westmont Westmont, Illinois November 27, 2018 Valley Ranch Apartments Ann Arbor, Michigan February 14, 2019 Autumn Breeze Apartments Noblesville, Indiana March 17, 2020 BayVue Apartments Tampa, Florida July 7, 2021 Citadel Apartments Houston, Texas October 6, 2021 |
Marketable Securities, Derivati
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Marketable Securities Derivative Financial Instruments And Fair Value Measurements | |
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements | 6. Marketable Securities, Derivative Financial Instruments and Fair Value Measurements Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: Schedule of available-for-sale securities reconciliation As of March 31, 2023 Debt securities: Adjusted Gross Unrealized Gross Unrealized Fair Corporate and Government Bonds $ 3,752 $ 8 $ (199 ) $ 3,561 As of December 31, 2022 Debt securities: Adjusted Gross Unrealized Gross Unrealized Fair Corporate and Government Bonds $ 3,675 $ - $ (220 ) $ 3,455 The Company may be exposed to credit losses through its available-for-sale debt securities. Unrealized losses or impairments resulting from the amortized cost basis of any available-for-sale debt security exceeding its fair value are evaluated for identification of credit and non-credit related factors. Any difference between the fair value of the debt security and the amortized cost basis not attributable to credit related factors are reported in other comprehensive income. A credit-related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings. When evaluating the investments for impairment at each reporting period, the Company reviews factors such as the extent of the unrealized loss, current and future economic market conditions and the economic and financial condition of the issuer and any changes thereto. As of March 31, 2023, the Company has not recognized an allowance for expected credit losses related to available-for-sale debt securities as the Company has not identified any unrealized losses for these investments attributable to credit factors. The Company's unrealized loss on investments in corporate bonds was primarily caused by recent rising interest rates. The Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates As of Due in 1 year $ 504 Due in 1 year through 5 years 2,961 Due in 5 years through 10 years 96 Due after 10 years - Total $ 3,561 Derivative Financial Instruments The Company has entered into two interest rate cap contracts with unrelated financial institutions in order to reduce the effect of interest rate fluctuations or risk of certain real estate investment’s interest expense on its variable rate debt. The Company is exposed to credit risk in the event of non-performance by the counterparty to these financial instruments. Management believes the risk of loss due to non-performance to be minimal. The Company is accounting for the interest rate cap contracts as economic hedges, marking these contracts to market, taking into account present interest rates compared to the contracted fixed rate over the life of the contract and recording the unrealized gain or loss on the interest rate cap contracts in the consolidated statements of operations. For the three months ended March 31, 2023 and 2022, the Company recorded unrealized losses of $ 0.5 0.6 The interest rate cap contracts have notional amounts of $ 52.2 49.0 July 15, 2023 October 11, 2023 LIBOR at 2.50% and 2.00% 1.3 1.8 0.6 Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: ● Level 1 – Quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair values of the Company’s investments in debt securities are measured using quoted prices for these investments; however, the markets for these assets are not active. The fair values of the Company’s interest rate cap contracts are measured using other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As of March 31, 2023 and December 31, 2022, all of the Company’s debt securities and interest rate cap contracts were classified as Level 2 assets and there were no transfers between the level classifications during the three months ended March 31, 2023 and 2022. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | 7. Notes Payable Notes payable consists of the following: Schedule of information on notes payable Property Interest Rate Weighted Average Maturity Date Amount Due As of As of Arbors Harbor Town 4.53% 4.53% January 1, 2026 $ 29,000 $ 29,000 $ 29,000 Arbors Harbor Town Supplemental 3.52% 3.52% January 1, 2026 5,379 5,704 5,732 Parkside Apartments 4.45% 4.45% June 1, 2025 15,782 16,556 16,644 Axis at Westmont 4.39% 4.39% February 1, 2026 34,343 36,317 36,483 Valley Ranch Apartments 4.16% 4.16% March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78% 3.78% July 1, 2026 26,090 27,936 28,072 Flats at Fishers Supplemental 3.85% 3.85% July 1, 2026 8,366 8,944 8,987 Autumn Breeze Apartments 3.39% 3.39% April 1, 2030 25,518 29,920 29,920 BayVue Apartments LIBOR + 3.00% 7.67% July 9, 2024 46,673 46,673 46,443 Citadel Apartments Senior LIBOR + 1.50% 6.18% October 11, 2024 39,200 39,200 39,200 Citadel Apartments Junior LIBOR + 8.75% 13.53% October 11, 2024 9,800 9,800 9,800 Total notes payable 5.25% $ 283,565 293,464 293,695 Less: Deferred financing costs (3,060 ) (3,406 ) Total notes payable, net $ 290,404 $ 290,289 LIBOR as of March 31, 2023 and December 31, 2022 was 4.86% 4.39% The following table provides information with respect to the contractual maturities and scheduled principal repayments of the Company’s indebtedness as of March 31, 2023. Schedule of contractual obligations for principal payments 2023 2024 2025 2026 2027 Thereafter Total Principal maturities $ 1,730 $ 98,134 $ 18,138 $ 147,729 $ 654 $ 27,079 $ 293,464 Less: deferred financing costs (3,060 ) Total notes payable, net $ 290,404 As of March 31, 2023, the Company was in compliance with all of its financial debt covenants. Citadel Apartments On October 6, 2021, the Company entered into a non-recourse mortgage loan facility for up to $ 39.2 9.8 The Citadel Apartments Mortgages initially mature on October 11, 2024, with two one-year extension options, subject to the satisfaction of certain conditions, and are collateralized by the Citadel Apartments, while the Citadel Apartments Junior Mortgage is subordinate to the Citadel Apartments Senior Mortgage. Pursuant to the terms of the Citadel Apartments Mortgages, the Company is required to enter into one or more interest rate cap agreements in the notional amount of $ 49.0 49.0 LIBOR rate is capped at 2.00% BayVue Apartments On July 7, 2021, the Company entered into a non-recourse mortgage loan facility for up to $ 52.2 46.7 5.5 Pursuant to the terms of the BayVue Apartments Mortgage, the Company is required to enter into one or more interest rate cap agreements in the notional amount of $ 52.2 52.2 LIBOR rate is capped at 2.50% |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | 8. Stockholders’ Equity Share Redemption Program The Company’s board of directors has adopted a share redemption program (the “SRP”) that permits stockholders to sell their shares back to the Company, subject to the significant conditions and limitations of the program. The Company’s board of directors can amend the provisions of the SRP at any time without the approval of its stockholders. Effective March 25, 2021, the Company’s Board of Directors reopened the SRP, which had been suspended since December 13, 2019, solely for redemptions submitted in connection with a stockholder’s death and set the price for all such purchases to the Company’s current NAV per Share, as determined by its board of directors and reported by the Company from time to time On November 10, 2022, the Company’s board of directors adopted a Seventh Amended and Restated Share Redemption Program (the “Amended SRP”), which became effective on January 1, 2023. Under the terms of the Amended SRP, any stockholder may request redemption of their shares . Redemption requests will no longer be limited to requests upon the death of a qualifying stockholder, as had been the case under the SRP through December 31, 2022. Additionally, under the terms of the Amended SRP, the will redeem shares at 85% of the NAV per Share as of the date the request for redemption is approved. Pursuant to the terms of the Amended SRP, any shares approved for redemption are redeemed on a periodic basis as determined by the Company’s board of directors, generally expected to be at the end of each quarterly period. However, the Company will not redeem, during any calendar year, more than 5% board of directors not less often than annually (the “Funding Limitation” and, together with the 5% Limitation, the “Redemption Limitations”). The board of directors has set the amount of cash available for redemption of shares for the year ended December 31, 2023 at $ 8.0 Redemption requests will be honored pro rata among all requests received subject to the Redemption Limitations and will not be honored on a first come, first served basis. The Company’s board of directors reserves the right in its sole discretion at any time and from time to time, subject to any notice requirements described in our SRP, to (1) reject any request for redemption of shares, (2) change the purchase price for redemption of shares, (3) limit the funds to be used for redemption of shares under the SRP or otherwise change the Redemption Limitations, or (4) amend, suspend (in whole or in part) or terminate the SRP. For the three months ended March 31, 2023, the Company repurchased 10,161 14.75 24,419 12.91 Distributions The Company did not make any distributions to its stockholders during the three months ended March 31, 2023 and 2022. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions The Company has agreements with the Advisor and its affiliates to pay certain fees and reimburse certain expenses in connection with services performed and costs incurred by these entities and other related parties. The Company is dependent on the Advisor and its affiliates for certain services that are essential to it, including investment decisions, asset disposition decisions, property management and leasing services, financing services, and other general administrative responsibilities. In the event that these entities are unable to provide the Company with their respective services, the Company would be required to obtain such services from other sources. The advisory agreement has a one-year term and is renewable annually upon the mutual consent of the Advisor and the Company’s independent directors. The following table represents the fees incurred associated with the payments to the Company’s Advisor and its affiliates for the periods indicated: Schedule of related party transactions For the 2023 2022 Acquisition fees and acquisition expense reimbursement (1) $ 21 $ - Property management fees (property operating expenses) 135 117 Administrative services reimbursement (general and administrative costs) 376 347 Asset management fees (general and administrative costs) 906 868 Total $ 1,438 $ 1,332 (1) Capitalized to the corresponding asset and amortized over its estimated useful life. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Interim Unaudited Financial Information | Interim Unaudited Financial Information The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2023. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus REIT V, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which the Company has control. All inter-company transactions, balances, and profits have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and entities deemed to be variable interest entities (“VIE”) in which the Company is the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest or entities which we are not deemed to be the primary beneficiary, it accounts for the investment using the equity method of accounting. The consolidated balance sheet as of December 31, 2022 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. |
Earnings per Share | Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing net income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2008. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. During 2015, the Company recorded an aggregate provision for income tax of $ 2.7 0.8 |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the issued an , “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard introduces |
Adverse Developments Affecting the Financial Services Industry and Concentration of Credit Risk | Adverse Developments Affecting the Financial Services Industry and Concentration of Credit Risk As of March 31, 2023 and December 31, 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents or restricted cash. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations. |
Current Environment | Current Environment The Company’s operating results are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, the Company’s business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges, and developments related to the COVID-19 pandemic, and other changes in economic conditions, may adversely affect the Company’s results of operations and financial performance. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of notes payable and the related estimated fair value | Schedule of notes payable and the related estimated fair value As of As of Carrying Estimated Carrying Estimated Notes payable $ 293,464 $ 291,521 $ 293,695 $ 288,222 |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate Properties | |
Schedule of real estate properties | Schedule of real estate properties Property Name Location Date Acquired Arbors Harbor Town Memphis, Tennessee December 20, 2011 Parkside Apartments (“Parkside”) Sugar Land, Texas August 8, 2013 Flats at Fishers Fishers, Indiana November 30, 2017 Axis at Westmont Westmont, Illinois November 27, 2018 Valley Ranch Apartments Ann Arbor, Michigan February 14, 2019 Autumn Breeze Apartments Noblesville, Indiana March 17, 2020 BayVue Apartments Tampa, Florida July 7, 2021 Citadel Apartments Houston, Texas October 6, 2021 |
Marketable Securities, Deriva_2
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Marketable Securities Derivative Financial Instruments And Fair Value Measurements | |
Schedule of available-for-sale securities reconciliation | Schedule of available-for-sale securities reconciliation As of March 31, 2023 Debt securities: Adjusted Gross Unrealized Gross Unrealized Fair Corporate and Government Bonds $ 3,752 $ 8 $ (199 ) $ 3,561 |
Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates | Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates As of Due in 1 year $ 504 Due in 1 year through 5 years 2,961 Due in 5 years through 10 years 96 Due after 10 years - Total $ 3,561 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of information on notes payable | Schedule of information on notes payable Property Interest Rate Weighted Average Maturity Date Amount Due As of As of Arbors Harbor Town 4.53% 4.53% January 1, 2026 $ 29,000 $ 29,000 $ 29,000 Arbors Harbor Town Supplemental 3.52% 3.52% January 1, 2026 5,379 5,704 5,732 Parkside Apartments 4.45% 4.45% June 1, 2025 15,782 16,556 16,644 Axis at Westmont 4.39% 4.39% February 1, 2026 34,343 36,317 36,483 Valley Ranch Apartments 4.16% 4.16% March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78% 3.78% July 1, 2026 26,090 27,936 28,072 Flats at Fishers Supplemental 3.85% 3.85% July 1, 2026 8,366 8,944 8,987 Autumn Breeze Apartments 3.39% 3.39% April 1, 2030 25,518 29,920 29,920 BayVue Apartments LIBOR + 3.00% 7.67% July 9, 2024 46,673 46,673 46,443 Citadel Apartments Senior LIBOR + 1.50% 6.18% October 11, 2024 39,200 39,200 39,200 Citadel Apartments Junior LIBOR + 8.75% 13.53% October 11, 2024 9,800 9,800 9,800 Total notes payable 5.25% $ 283,565 293,464 293,695 Less: Deferred financing costs (3,060 ) (3,406 ) Total notes payable, net $ 290,404 $ 290,289 |
Schedule of contractual obligations for principal payments | Schedule of contractual obligations for principal payments 2023 2024 2025 2026 2027 Thereafter Total Principal maturities $ 1,730 $ 98,134 $ 18,138 $ 147,729 $ 654 $ 27,079 $ 293,464 Less: deferred financing costs (3,060 ) Total notes payable, net $ 290,404 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Schedule of related party transactions For the 2023 2022 Acquisition fees and acquisition expense reimbursement (1) $ 21 $ - Property management fees (property operating expenses) 135 117 Administrative services reimbursement (general and administrative costs) 376 347 Asset management fees (general and administrative costs) 906 868 Total $ 1,438 $ 1,332 (1) Capitalized to the corresponding asset and amortized over its estimated useful life. |
Business (Details Narrative)
Business (Details Narrative) - shares | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Feb. 10, 2007 | Jan. 19, 2007 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Common stock, shares issued (in shares) | 20,000,000 | 20,000,000 | ||
Convertible stock issued (in shares) | 1,000,000 | 1,000,000 | ||
Common stock, shares outstanding (in shares) | 20,000,000 | 20,000,000 | ||
Initial Capitalization [Member] | Affiliated Entity [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Common stock, shares issued (in shares) | 22,500 | |||
Convertible stock issued (in shares) | 1,000 | |||
Initial Offering [Member] | Lightstone Group [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Convertible stock issued (in shares) | 1,000 | |||
Behringer Harvard Opportunity Op IILp [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Percentage of ownership interest by BHO II, Inc | 0.10% | |||
Marylands [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Percentage of remaining ownership interest held by BHO Business Trust II | 99.90% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |
Provision for income tax | $ 2,700 |
Income tax benefit foreign income tax | $ 800 |
Note Receivable (Details Narrat
Note Receivable (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Feb. 28, 2019 | |
Short-Term Debt [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR at 2.50% and 2.00% | ||
Debt Instrument, Maturity Date | Jul. 15, 2023 | Oct. 11, 2023 | |
Note payable | $ 290,404 | $ 290,289 | |
Mezzanine Loan Promissory Note [Member] | |||
Short-Term Debt [Line Items] | |||
Debt Instrument, Face Amount | $ 12,000 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 11.0% | ||
Debt Instrument, Basis Spread on Variable Rate | 13.493% | 17.885% | |
Debt Instrument, Maturity Date | Mar. 01, 2023 | ||
Interest rate | 8% | ||
Utilization Of Interest Reserve Percentage On Interest Due | 8% | ||
Loan repaid | $ 10,600 | ||
Note payable | $ 3,800 | ||
Amount of additional interest included in the principal balance | 2,400 | ||
Mezzanine Loan Senior Loan [Member] | |||
Short-Term Debt [Line Items] | |||
Debt Instrument, Face Amount | $ 5,000 | ||
Debt Instrument, Description of Variable Rate Basis | SOFR plus 5.50% | ||
Debt Instrument, Basis Spread on Variable Rate | 10.03% | ||
Note payable | $ 5,000 | ||
Carrying amount | 4,600 | ||
Interest reserves | $ 400 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Notes payable, Carrying Amount | $ 293,464 | $ 293,695 |
Notes payable, Estimated Fair Value | $ 291,521 | $ 288,222 |
Real Estate Properties (Details
Real Estate Properties (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Arbors Harbor Town [Member] | |
Location | Memphis, Tennessee |
Variable interest entity date acquired | Dec. 20, 2011 |
Parkside Apartments Parkside [Member] | |
Location | Sugar Land, Texas |
Variable interest entity date acquired | Aug. 08, 2013 |
Flats At Fishers [Member] | |
Location | Fishers, Indiana |
Variable interest entity date acquired | Nov. 30, 2017 |
Axis At Westmont [Member] | |
Location | Westmont, Illinois |
Variable interest entity date acquired | Nov. 27, 2018 |
Valley Ranch Apartments [Member] | |
Location | Ann Arbor, Michigan |
Variable interest entity date acquired | Feb. 14, 2019 |
Autumn Breeze Apartments [Member] | |
Location | Noblesville, Indiana |
Variable interest entity date acquired | Mar. 17, 2020 |
Bay Vue Apartments [Member] | |
Location | Tampa, Florida |
Variable interest entity date acquired | Jul. 07, 2021 |
Citadel Apartments [Member] | |
Location | Houston, Texas |
Variable interest entity date acquired | Oct. 06, 2021 |
Marketable Securities, Deriva_3
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Fair Value | $ 3,561 | $ 3,455 |
Corporate And Government Bonds [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Adjusted Cost | 3,752 | 3,675 |
Gross Unrealized Gains | 8 | |
Gross Unrealized Losses | (199) | (220) |
Fair Value | $ 3,561 | $ 3,455 |
Marketable Securities, Deriva_4
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Marketable Securities Derivative Financial Instruments And Fair Value Measurements | ||
Due in 1 year | $ 504 | |
Due in 1 year through 5 years | 2,961 | |
Due in 5 years through 10 years | 96 | |
Due after 10 years | ||
Total | $ 3,561 | $ 3,455 |
Marketable Securities, Deriva_5
Marketable Securities, Derivative Financial Instruments and Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Marketable Securities Derivative Financial Instruments And Fair Value Measurements | |||
Unrealized gain (loss) | $ 500 | $ 600 | |
Notional amount | $ 52,200 | $ 49,000 | |
Debt Instrument, Maturity Date | Jul. 15, 2023 | Oct. 11, 2023 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR at 2.50% and 2.00% | ||
Aggregate fair value interest rate | $ 1,300 | $ 1,800 | |
Interest expense, net | $ 600 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Maturity Date | Jul. 15, 2023 | Oct. 11, 2023 |
Amount Due at Maturity | $ 290,404 | |
Less: deferred financing costs | $ (3,060) | |
Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 5.25% | |
Amount Due at Maturity | $ 283,565 | |
Total notes payable | 293,464 | $ 293,695 |
Less: deferred financing costs | (3,060) | (3,406) |
Total notes payable, net | $ 290,404 | 290,289 |
Arbors Harbor Town Memphis [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.53% | |
Weighted Average Interest Rate | 4.53% | |
Debt Instrument, Maturity Date | Jan. 01, 2026 | |
Amount Due at Maturity | $ 29,000 | |
Total notes payable | $ 29,000 | 29,000 |
Arbors Harbor Town Supplemental [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.52% | |
Weighted Average Interest Rate | 3.52% | |
Debt Instrument, Maturity Date | Jan. 01, 2026 | |
Amount Due at Maturity | $ 5,379 | |
Total notes payable | $ 5,704 | 5,732 |
Parkside Apartments Sugarland Texas [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.45% | |
Weighted Average Interest Rate | 4.45% | |
Debt Instrument, Maturity Date | Jun. 01, 2025 | |
Amount Due at Maturity | $ 15,782 | |
Total notes payable | $ 16,556 | 16,644 |
Axis At Westmont [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.39% | |
Weighted Average Interest Rate | 4.39% | |
Debt Instrument, Maturity Date | Feb. 01, 2026 | |
Amount Due at Maturity | $ 34,343 | |
Total notes payable | $ 36,317 | 36,483 |
Valley Ranch Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.16% | |
Weighted Average Interest Rate | 4.16% | |
Debt Instrument, Maturity Date | Mar. 01, 2026 | |
Amount Due at Maturity | $ 43,414 | |
Total notes payable | $ 43,414 | 43,414 |
Flats At Fishers [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.78% | |
Weighted Average Interest Rate | 3.78% | |
Debt Instrument, Maturity Date | Jul. 01, 2026 | |
Amount Due at Maturity | $ 26,090 | |
Total notes payable | $ 27,936 | 28,072 |
Flats At Fishers Supplemental [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.85% | |
Weighted Average Interest Rate | 3.85% | |
Debt Instrument, Maturity Date | Jul. 01, 2026 | |
Amount Due at Maturity | $ 8,366 | |
Total notes payable | $ 8,944 | 8,987 |
Autumn Breeze Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.39% | |
Weighted Average Interest Rate | 3.39% | |
Debt Instrument, Maturity Date | Apr. 01, 2030 | |
Amount Due at Maturity | $ 25,518 | |
Total notes payable | $ 29,920 | 29,920 |
Citadel Apartments Junior [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3% | |
Weighted Average Interest Rate | 13.53% | |
Debt Instrument, Maturity Date | Oct. 11, 2024 | |
Amount Due at Maturity | $ 9,800 | |
Total notes payable | $ 9,800 | 9,800 |
Bay Vue Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.75% | |
Weighted Average Interest Rate | 7.67% | |
Debt Instrument, Maturity Date | Jul. 09, 2024 | |
Amount Due at Maturity | $ 46,673 | |
Total notes payable | $ 46,673 | 46,443 |
Citadel Apartments Senior [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.50% | |
Weighted Average Interest Rate | 6.18% | |
Debt Instrument, Maturity Date | Oct. 11, 2024 | |
Amount Due at Maturity | $ 39,200 | |
Total notes payable | $ 39,200 | $ 39,200 |
Notes Payable (Details 1)
Notes Payable (Details 1) $ in Thousands | Mar. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 1,730 |
2024 | 98,134 |
2025 | 18,138 |
2026 | 147,729 |
2027 | 654 |
Thereafter | 27,079 |
Total principal maturities | 293,464 |
Less: deferred financing costs | (3,060) |
Total notes payable, net | $ 290,404 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2021 | Oct. 06, 2021 | Jul. 07, 2021 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR at 2.50% and 2.00% | |||
Citadel Apartments [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 39,200 | |||
Principal balance | $ 49,000 | |||
Notional amount | $ 49,000 | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR rate is capped at 2.00% | |||
Citadel Apartments Mortgage [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 9,800 | |||
Bay Vue Apartments [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 52,200 | |||
Principal balance | $ 46,700 | |||
Notional amount | $ 52,200 | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR rate is capped at 2.50% | |||
Remaining amount availability | $ 5,500 | |||
LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.86% | 4.39% |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Equity [Abstract] | |||
Share redemption program, annual limitation, percentage of weighted average shares outstanding | 5% | ||
Cash available for redemption of shares | $ 8,000 | ||
Repurchase of common stock | 10,161 | 24,419 | |
Repurchase price per shares | $ 14.75 | $ 12.91 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Related Party Transactions [Abstract] | |||
Acquisition fees and acquisition expense reimbursement | [1] | $ 21 | |
Property management fees (property operating expenses) | 135 | 117 | |
Administrative services reimbursement (general and administrative costs) | 376 | 347 | |
Asset management fees (general and administrative costs) | 906 | 868 | |
Total | $ 1,438 | $ 1,332 | |
[1]Capitalized to the corresponding asset and amortized over its estimated useful life. |